Asset Portfolio

Schiehallion

The Schiehallion Field

FIELD CHARACTERISTICS Location Block Numbers Water Depth Size of Field FPSO Development Discovered Development consent Start-up Peak production Participants Development cost Subsea and Wells Drilling Centres Wells Water Injection Gas Disposal FPSO Length Breadth Depth Dead Weight Operating Depth Turret Risers Mooring Topsides payload Accommodation Production and Storage Oil Gas Produced water Oil Storage Cargo tanks

175km West of Shetland 204/20, 204/25 400m average 350-500 million barrels of oil

1993 April 1995 July 1998 190,000 bpd BP, Shell, Amerada Hess, Statoil, Murphy and OMV 1,000 million

5 with 42 wells Production 22 24 1

246m 45m 27m 154,000 tonnes 395m 14m diameter with 360 rotation 15 (24 maximum) 14 anchor chain legs in groups 12,000 tonnes 99 persons (maximum)

220,000 bpd 140 million scfd (peak) - including gas export via pipeline to SUT/Magnus 225,000 bpd (peak) 950,000 barrels 14

The Schiehallion Field

Exploration in the UK sector of the Faroes/Shetland Trough began in 1972. However, it took twenty years of effort and over 100 exploration and appraisal wells, before the first commercially viable discovery was made- the BP operated Foinaven field.
The field was discovered in 1992 and following intensive appraisal and pre-project work, the UK Government, gave approval to the development of 230 million barrels of oil from the central area of the field in 1994. Following the discovery of Foinaven, BPs geoscientists switched their attention to a structure some 15 kilometres to the east, where almost twelve months later, the Schiehallion field was discovered with estimated recoverable reserves of some 350-500 million barrels. The nearby Loyal accumulation was discovered by well 204/20-3 in late 1994. During 1994 and 1995 an appraisal of Schiehallion and Loyal was carried out, culminating in a successful Extended Well Test (EWT), which demonstrated well rates of up to 20,000 barrels of oil per day. In April 1996, the UK government gave approval for a combined Schiehallion/Loyal development plan. The Schiehallion partnership consists of: BP, Shell, Amerada Hess, Murphy Oil, Statoil and OMV.

Location In addition to the Schiehallion Field the development plan includes the Loyal accumulation which is jointly owned by BP and Shell. Total recoverable reserves are currently estimated at 350-500 million barrels. The Schiehallion and adjacent Loyal fields lie predominantly in blocks 204/20 and 204/25, 175 km west of Shetland in a water depth of between 350 to 450 metres. The Foinaven and Schiehallion fields lie within 15 kilometres of each other. This close proximity allows maximum use to be made of opportunities to share helicopters and supply vessels. Reserves Foinaven, Schiehallion and Loyal are estimated to contain around 600 million barrels of recoverable oil. Development and technology Due to the water depth Schiehallion is heavily reliant on subsea technology for unmanned intervention, as it is too deep for divers. The depth also meant that a floating production system was needed rather than a fixed platform. A number of conceptual solutions for the Schiehallion development were considered, but eventually it was decided that a steel FPSO system - the Schiehallion- provided the best solution.

Subsea technology plays a major part in the development of Schiehallion. To date 42 wells, in five clusters, have been drilled into the reservoir. Oil and gas flow along steel pipelines and then into flexible risers to the FPSO for processing. Once on board the FPSO reservoir liquids are separated into oil, gas and water. The oil is stored in the vessels storage tanks prior to export, while the gas is used for fuel or is re-injected and the water is re-injected into the reservoir. The production wells harness the very latest horizontal drilling technology with some wells having horizontal sections of up to 1500m. The Schiehallion Vessel is a Purpose Built FPSO (Floating Production, Storage and Offloading system) Both the Petrojarl Foinaven and the Schiehallion FPSOs have been specially designed to withstand the harsh climates of areas like the Atlantic Margin. Extreme conditions have been encountered over the past few years of operating experience, which have contributed to improving our knowledge and procedures for operating safely. The Schiehallion Vessel, a Purpose Built FPSO, is part crude oil and gas processing plant, part storage unit and is capable of processing around 200,000 barrels of oil a day and storing 900,000 barrels of oil. The key to an FPSOs ability to remain on station is the high technology turret. The turret is anchored to the seabed and the vessel weathervanes around it under the influence of wind, waves and currents with thruster assistance to aid station keeping. The anchor wires, flexible risers and control umbilicals all reach the surface inside the turret.

The Export System - Loch Rannoch Due to a combination of relatively limited reserves and specific technical problems related to connecting floating production systems to large diameter and high pressure export pipelines, shuttle tankers was the chosen option for oil export from Schiehallion. The dedicated shuttle tanker, the Loch Rannoch, takes the oil to the Sullom Voe terminal in Shetland. The Loch Rannoch is purpose built and operated by BP Shipping. Its state of the art specification includes special equipment to reduce gaseous emissions during loading. Offloading of oil from the Schiehallion to the Loch Rannoch takes place every three to six days. The business generated by the shuttle tanker movements has been welcomed in Shetland as oil from the Atlantic Margin will help offset the decline in production from the North Sea fields which currently supply the Sullom Voe terminals.

Asset Portfolio

Production Schiehallion began production in July 1998 and has achieved peak production rates of around 190 mbd. The oil arrives onboard from a series of Subsea flowlines and risers where it is separated into oil, gas and water. The oil is sorted in the vessels storage tanks prior to offloading into a dedicated shuttle tanker, the Loch Rannoch. Gas is used to power the vessel with any surplus being piped via the Sullom Voe Terminal to the Magnus oil field where it is re-injected into the Magnus reservoir for enhanced oil recovery. Produced water is cleaned to below 40ppm oil before being re-injected back into the reservoir along with sea water injection.

Environment BP recognises that the Schiehallion field activities are conducted in an environmentally sensitive area. BP is committed to identifying measures to minimise environmental impacts from its operational activities. During the development phase both fields were subject to a detailed Environmental Assessment (EA). The purpose of the EA is to ensure that the major environmental risks are identified and understood, and that steps are taken to eliminate or reduce these risks. Both fields are also certified to the international standard for environmental management, ISO 14001, and publish independently verified Environmental Statements annually. In addition, Schiehallion is registered to the ECs Eco-management and Audit Scheme (EMAS). Detailed environmental management systems have been developed to meet the requirements of ISO 14001 and EMAS. A key element of these systems is our commitment to the prevention of pollution and continual improvement in environmental performance. The annual Environmental Statements contain details of Foinaven and Schiehallions environmental performance, including quantification of emissions and discharges. Throughout the development phase of the Schiehallion and Foinaven projects, BP consulted widely with interested parties. The result of this consultation has been a more robust Oil Spill Contingency Plan and the deployment of powerful and versatile field support vessels.

The Schiehallion Field

Schiehallion, Loyal, and Foinaven are estimated to contain around 600 million barrels of recoverable reserves. Subsea technology has played a major part in the development of Schiehallion.

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