Optimise your oil and gas operations from design to decommissioning

Optimise your oil and gas operations from design to decommissioning.

Ensuring the highest level of safety and performance across upstream, midstream and downstream.

Helping you maximise potential at every stage of your operation.

Lloyd’s Register applies its unique technical and engineering expertise to help operators and regulators across the oil and gas, chemical and petrochemical industries design, construct, operate and decommission their critical assets, helping ensure projects deliver to their highest levels of safety and performance.

We apply our expert solutions and independence, from reservoir to refinery and beyond, to assure the integrity, reliability and success of every aspect of a client’s operations.

Helping maximise productivity and recovery, reduce operating costs, mitigate risk and demonstrate compliance with government

regulations, industry codes and standards.

We draw on over 250 years of solutions-led thinking and technical innovation to respond to new challenges, while retaining our commitment to independence, integrity and doing the right thing.

We help our clients in the areas of: Consulting

Asset Inspection

On Target Project Delivery Ensure successful management and delivery of projects and activities: safely, on time and on target.

Consulting

Risk and Safety Improve safety and reduce environmental incidents or near misses: protecting lives, assets, environment, investments and reputations.

Asset

Inspection

Drilling

Optimise Asset and Operational Performance Maximise asset (reservoir, platform, plant) productivity, reliability and increase uptime of critical equipment.

Drilling

Technology

Compliance

Consulting

Drilling

0 $80 million $3m 100 30% 30% $12 billion 95% Hydrocarbon leaks in a three month period, reduced from 900 per year.

We inspect 80% of the world’s offshore oil rigs. In fact, we’re the leading provider of independent risk management services to the drilling industry.

Developed a business transformation strategy, supported by key performance management tools, to deliver a 40% reduction in well costs over a two year cycle – equivalent to a saving of over $80m.

a gainst drilling industry average of 80-90%.

Inspection

0

Innovation Support adoption and application of innovation and new technology, and extend skills base.

Technology

Our approach to performance drilling saved an Operator in excess of $3 million by driving operational improvement throughout a three well campaign.

Outsourced well management projects.

Achieved 30% reservoir production improvement.

First year availability

Asset

Op2: Performance Management

N1 80%

We are the no.1 provider of verification services to offshore operators in the UK by market share.

reduction

Compliance Ensure design, critical equipment and projects comply to all specifications and standards.

Compliance

Op1: Performance Management

Life Extension Extend asset life and create a smooth transition from late life operation to decommissioning.

Technology

200 wells

o

Appointed Wells Duty Holder (well operator) for multi-asset portfolio which included a well stock of over 200 wells acquired by new entrant to UKCS.

Compliance

Shareholders

Our maintenance optimisation methodology and software solution, RTAMO™, typically yields a 30% reduction in planned maintenance costs.

We advised on over $12billion worth of assets evaluations over the past 12 months.

40%

We are financially and politically independent and our services are truly impartial. Lloyd’s Register is wholly owned by the Lloyd’s Register Foundation, a UK charity dedicated to research and education in science and engineering.

Our drilling audit and planning process identified cost savings of 40% for our middle east client.

Lloyd’s Register Group - Over 250 years of innovation - a snapshot of success 1760 Making a difference from the beginning Lloyd’s Register is established and becomes the world’s first ship classification society. By the early 1880s, almost half of the world’s shipping is classed by Lloyd’s Register.

2 | Lloyds Register

1930s Applying our expertise to energy We diversify into the oil and gas industry, leveraging our expertise and experience in high risk capital intensive marine assets into critical energy infrastructure.

1940s Supporting the tranformation of the global energy infrastructure We continue to work on complex and large-scale energy projects around the world, including a power station in Turkey and a hydroelectric scheme in Tasmania.

1950s Helping to establish safe nuclear power generation In 1953, we inspect Windscale nuclear power plant at Calder Hill, UK. At the opening ceremony in 1956, Lord Privy Seal described the project as “epochmaking”.

1960s Improving outcomes in the Oil & Gas sector We work with BP on their first Canadian refinery at Ville d’Anjou and we publish the first classification notes for offshore platforms.

1970s Delivering a diverse energy mix We support the emergence of renewable energy projects whilst also collaborating on the pioneering work to extract North Sea oil and gas.

We gain accreditation to deliver ASME certification services to manufacturers worldwide.

1980s Driving innovation We work on the Thames Barrier in London, a tidal surge barrier in Rotterdam and a 70-metre diameter wind generator.

1990s Enhancing safety and productivity across the industry Lloyd’s Register is now the leading classification society for LNG carriers.

We are appointed the certifying authority for Hibernia, the world’s first iceberg resistant platform, help deliver the Sizewell B nuclear power plant and support the Hellenic Natural Gas Project.

2000s Driving improvements We make a series of strategic acquisitions: Capstone (2005), ODS (2005), Human Engineering (2008), Celerity3 (2008), ModuSpec (2008), Scandpower (2010), WEST Engineering (2012).

2010s Making a real difference to modern communities From 2012, all shares in Lloyd’s Register Group are owned by Lloyd’s Register Foundation, a registered charity with a mission to protect life and property and advance transport and engineering education and research.

We enhance our reservoir and subsea capability following acquisition of Senergy (2013). We deliver the first exploration well drilled in the Baltic Sea for more than 25 years.

In 2015 we become the first foreign organisation to perform regulatory analyses for the Chinese offshore industry. In 2016, following the lifting of sanctions, we move back into Iran.

Now Shaping current and future industry Lloyd’s Register continues to support innovative projects, such as Shell Prelude, the world’s first floating liquefied natural gas (FLNG) unit, providing classification and validation services.

We continue to be a valued trusted advisor to industry and Government bodies, with agreements in place with the UK’s Oil and Gas Authority (OGA), State owned, Cyprus Hydrocarbons Company (CHC) and more.

Services for upstream, midstream and downstream operations | 3

Well Engineering and Operations

Lloyd’s Register’s services to the Oil & Gas sector From reservoir to refinery and beyond Our world-class expertise across the Energy industry allows us to resolve and share solutions to the most complex situations, providing the confidence demanded by engineering principles, government regulations and industry codes and standards.

Refinery Fixed and floating MODU

Fixed unit

Power grid Land rig

FPS Survey vessel

Tankers & OSV

Pipeline

We manage well project delivery with a full life cycle approach covering all aspects of well design, construction, intervention, integrity, life extension and abandonment. We help you develop cost-effective wells and realise your strategic commitments, by assisting in meeting your responsibilities to investors/partners and the government. You can outsource your entire well operations and rig management needs to us. In addition, we are also a recognised well operator by the UK authorities.

reduce Wells management

Subsea

Field development

We offer an unrivalled portfolio of services to the oil and gas, chemical and petrochemical industries, from reservoirs and pipelines to refineries, power stations and manufacturing.

Reservoir Services

Survey & GeoEngineering

We apply our expertise in geology, geophysics, petrophysics, and reservoir engineering to optimise your exploration and field development projects.

• Development of subsurface reservoir models, field development plans, subsurface well location selection, and well design and engineering.

• A sset evaluation services for acquisition and divestment support including hydrocarbon potential, risk, estimation of reserves and economic evaluations.

We provide technical assurance, engineering assessments and design, and geohazard assessments as well as project management services for exploration and development well sites, pipeline routes pipe-lay, subsea construction, inspection and rock placement. We help you optimise engineered solutions and the operational efficiency of offshore operations at every lifecycle stage through maximising the knowledge and value of seabed and subsurface survey, geophysical and geotechnical data.

reduce

Production cost per barrel

increase

Production and recovery

Delivering value: A field in the UKCS was a small discovery which appeared to be uneconomic. We worked closely with our client, to develop and accelerate an economic field development option. The development was a huge success and the field production has grossed more than $1.5billion from an investment of $75million.

reduce

Geohazard risk and survey costs

increase

On time project delivery

Delivering value: We project managed a site survey and geotechnical site investigation for a HD jackup rig site and then designed and managed a rock pad placement operation to enable use of the rig in otherwise unsuitable seabed soils.

Asset Integrity

Costs, risk, project and delays

increase

Our risk-based approach helps you optimise maintenance schedules and prioritise inspection activities based on the potential for failure versus traditional time-based inspection planning. We help determine the probability and consequences of critical equipment and structural failure whilst safely extending the life of your assets, helping you minimise risk Drilling performance and reduce costs. and project success

Delivering value: At the time of the project start up, our client had no well delivery process or procedure in place. They required the development of a bespoke set of procedures and policies that would meet their requirements and its obligations with the Vietnamese governing body legislations. We developed a bespoke well delivery process for the drilling of two deepwater (>1,500m) wells. Under one team, both wells were safely and successfully drilled, evaluated and abandoned under budget and ahead of schedule. There was < 6 % non-productive time (NPT) over the whole campaign duration with no delays over logistics, materials or personnel. Total time saving over both Wells was 50 days, total cost saving over both Wells was $39million.

Drilling Integrity

4 | Lloyds Register

RESERVES/ EXPLORATION

DESIGN

BUILD

reduce

Risk, failure, downtime, inspection and maintenance costs, and time

increase

Performance, reliability, uptime

Delivering value: Our client, an international refinery operator, was losing thousands of dollars in downtime carrying out essential maintenance for coke drums which had developed cracks and required repair. We developed a new procedure that reduced their shutdown time by 13 days and saved them over $10million.

Performance and Production Optimisation

We apply our multi-disciplinary expertise in facilities, development, processes and subsea engineering and asset management to deliver solutions that optimise the performance We help you optimise your drilling operations, delivering of your operations in a safe and cost-effective manner. integrity and competency assessments to project management • Increase proven reserves and production rates through and commissioning of new-built and refurbished rigs. Helping Enhanced Oil Recovery (EOR) techniques. you reduce downtime by improving the reliability, safety and • Ensure physical assets are designed and operated to avoid competitiveness of your drilling operation from individual rigs, unnecessary downtime due to equipment or system failure, contractors or the entire fleet. using condition monitoring, predictive forecasting and increase Drilling performance, reliability-centred maintenance to improve reliability and Costs, risk availability of assets. safety, reliability and NPT

reduce

and uptime

Delivering value: The operational efficiency of assets were under scrutiny, so our client engaged us to perform Operational Integrity Assessments on 110 land rigs and 35 jack-up drilling units in Saudi Arabia.

The results and recommendations which followed a thorough People, Systems and Equipment (PSE) assessment resulted in improved drilling operations. We identified 120+ improvement opportunities with a focus on 12 initiatives to yield $220million savings per year.

Optimising your operations at every stage.

LICENSING

We apply our expertise in asset integrity to help you manage and improve the integrity, reliability, and performance of your operations and field, covering all asset types from wells, drill packages and platforms to FPSOs, pipelines, land rigs, production plants and pressurised fixed equipment.

OPERATING AND MAINTENANCE

LIFE EXTENSION

reduce

Production cost and NPT

increase

Production rate

Delivering value: We developed coupled geomechanical and sand failure models to determine the conditions of perforation failure for our client in a HPHT and sour gas environment in Pakistan. We advised on a safe, sand free perforating strategy. This process replaced the previous sand control solution (gravel packs) which suffered from massive skin due to reactive clays in the reservoir. All of the gravel packed wells failed, whilst sand production from the selectively perforated wells is non-existent to minimal. Our client estimated savings of over $10million.

LATE LIFE

MANAGEMENT

DECOMMISSIONING

Services for upstream, midstream and downstream operations | 5

Risk Management

Transaction Advisory

Our risk management assessments and studies help you to achieve safe design and operation of assets through major hazard and risk control. We do this by identifying and analysing regulatory requirements, safety and environmental conditions, evaluating possible accidental events and major risks, including their causes and consequences. We help you to develop risk prevention and mitigation strategies and ensure optimum return from investments, by combining assessments with costbenefit analysis.

We provide owners, operators and financial institutions with integrated technical and commercial advice for investment, divestment, borrowing and lending decision making. We offer reservoir valuation and reserves estimation, technical and operational due-diligence assessments and asset evaluations. We help to you minimise investment risk, avoid toxic investments, and increase knowledge and understanding of asset condition and reservoir potential, improving capital expenditure (CAPEX) and operating expense (OPEX) estimations.

reduce

Risk, incidents and downtime

increase

Safety and risk control

reduce

Non-beneficial deals and risk

increase

Informed decision making and accuracy

Delivering value: Our client was facing complaints from employees being affected by high noise exposure while on duty. We applied our engineering dynamics expertise and assessed the noise scenario in the asset and identified control measures at sources, propagation path and receiver which would help to mitigate the impact. A manning plan was assessed and recommendations made for reducing the exposure. This resulted in a list of actions to mitigate noise and the impact on hearing, thereby reducing the risk of people becoming deaf after long exposure time.

Delivering value: We provided a valuation for a client in its purchase of the remaining stakes in two Drillships, which it already partially owned but were still under construction at different locations around the world. We combined our technical and commercial expertise to provide a valuation based upon the difference between market values for completed assets and our assessment of the remaining costs to completion – this approach overcame the lack of any comparable market data for the valuation of partially completed assets.

Compliance & Verification

Software

We help you navigate government and industry standards, regulations and guidelines to ensure compliance. Our services include design appraisal, site survey, technology qualification and supply chain audit assurance and verification. To safe guard your operations we provide ongoing operational verification of safety critical elements.

Our leading software solutions help you manage and optimise your operations. From determining the amount of hydrocarbons in your reservoir, improving well construction and operational decision making to optimising the management of asset integrity and reliability.

Our classification services and offshore rules will ensure your equipment meets international and national standards and is correctly classed.

In situations where the standards are not clearly defined, we work with you to apply the appropriate regulatory standards, your company policies and industry best practices.

reduce

Risk, failure and reputational damage

increase

Regulatory compliance and safety

Delivering value: Our global client had assets in the Gulf of Mexico and needed to achieve and demonstrate regulatory compliance in accordance with U.S. Code of Federal Regulations 30 CFR 250. We provided drill pipe shear verification and well compatibility verification that the (BOP) was designed, tested, and maintained to perform under the maximum environmental and operational conditions.

reduce

Failure risk by 80% and maintenance costs by 30%

increase

At Lloyd’s Register, we understand the challenges you face operating in increasingly difficult conditions and unfamiliar environments which can present unprecedented technical challenges. That’s why, as an expert organisation with the skill to solve complex problems, we remain at the very forefront of technological innovation.

To meet those challenges, we continue to build on our worldwide research and development network.

We have made major investments in two global technology centres (GTCs): one at the University of Southampton, a world-leading centre for maritime research. The other, at Singapore’s Nanyang Technological University, tackles the technical and systemic challenges that face the global energy sector, on and offshore.

Through industry collaboration we will continue to drive the advanced knowledge, technologies, systems and solutions needed to promote safety and security in an increasingly complex world.

Lloyd’s Register Group

We provide regular, dedicated public courses in a wide range of disciplines including risk management, engineering and technical subjects, on a global basis as well as internal, tailored courses to match your company’s specific requirements.

reduce

Technological innovation drives economies forward, creates jobs and enhances lives.

Equipment reliability by 20% and accuracy

Training

Risk and human error

Advancing economies and enhancing lives

increase

Competence, safety and productivity

8,000+

Employees worldwide

60,000+ Clients

250+ Year heritage

2

Global Technology Centres

6 | Lloyds Register

Services for upstream, midstream and downstream operations | 7

Get in touch

T +44 (0)20 7709 9166 E oilandgas@lr.org www.lr.org/oilandgas

Europe Lloyd’s Register Group Limited 71 Fenchurch Street London EC3M 4BS United Kingdom T +44 (0)20 7709 9166 F +44 (0)20 7423 2258 Lloyd’s Register Kingswells Causeway Prime Four Business Park Kingswell, Aberdeen United Kingdom AB15 8PU T +44 (0)1224 398398 Lloyd’s Register KP van der Mandelelaan 41a Rotterdam 3062 MB Netherlands T +31 (0)10 2014200 F +31 (0)10 4117580

Lloyd’s Register is a trading name of Lloyd’s Register Group Limited and its subsidiaries. For further details please see www.lr.org/entities © Lloyd’s Register Group Limited 2018

Middle East Lloyd’s Register Festival Office Tower, Suite 2001 Dubai Festival City Al Rebat Street Dubai United Arab Emirates T +971 4 701 4160 / 4100 F +971 4 701 4139 Americas Lloyd’s Register North America, Inc. 1330 Enclave Parkway, Suite 200 Houston TX 77077 United States of America T +1 (1)281 675 3100 F +1 (1)281 675 3199 Asia Lloyd’s Register Level 28, Naza Tower, Platinum Park No. 10, Persiaran KLCC Kuala Lumpur 50088 Malaysia T +60 3 2633 3001