QUE$TOR

Premier Oil
James Blanchard November 18th and 19th 2009

James.blanchard@ihs.com energy.ihs.com support_questor@ihs.com

Contents
1. Introductions 1 I t d ti 2. Cost estimation methodology and setting up a QUE$TOR gy g p $

project
3. 3 Capital cost component overviews the operating and capital overviews,

cost reports
4. Modifying QUE$TOR projects using the project editor and

viewer
5. Accessing, reviewing and modifying cost and technical

databases
6. QUE$TOR future developments and wrap-up
Copyright 2009 IHS Inc. All Rights Reserved. 2

IHS Asia Pacific ENERGY team

Marina Marroncelli Regional Director, Business Development marina.marroncelli@ihs.com Cahir ONeill O Neill Account Manager, Korea and Indonesia cahir.oneill@ihs.com Eileen Ng, May Saint Kang and Flora Lim Eil N M S i tK d Fl Li Sales & Marketing Administration Eileen.ng@ihs.com, may.kang@ihs.com, flora.lim@ihs.com S kh t Singh Randhawa Sukhwant Si h R dh Customer Support Specialist, Malaysia Sukhwant.SinghRandhawa@ihs.com Yaxing Wang Technical Support Special, China yaxing.wang@ihs.com James Blanchard Regional Support Manager james.blanchard@ihs.com
Copyright 2009 IHS Inc. All Rights Reserved.

support_questor@ihs.com support_international@ihs.com
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Breaking the Ice

Wh are W ? Who We?
Name and Area of Interest/Work

What do we expect to achieve?

Ideas/process learning and/or confirmation

How current work/interest could benefit from this Workshop?

Issues/Decisions that could be facilitated

Copyright 2009 IHS Inc. All Rights Reserved.

IHS Introduction
The source for critical information and insight

Who are we?

Th leading provider of critical t h i l i f The l di id f iti l technical information, d i i ti decision

support tools and related services

Supporting 6 core industries, with expertise in many others pp g , p y Provide services to governments, multi national corporations, small

companies and technical professionals In over 100 countries Over 75,000 customers worldwide

Maintain comprehensive set of databases, with both proprietary

and gathered information, obtained through relationships with content providers worldwide Helps to facilitate decision making support key processes and making, processes, improve productivity History of serving customers for over 75 years
Copyright 2009 IHS Inc. All Rights Reserved. 6

IHS information domains

PRODUCT LIFECYCLE

ENVIRONMENT

SECURITY

ENERGY

Provides technical standards, codes, government/military specifications &related documentation: Specifications and Standards information Parts Databases
Copyright 2009 IHS Inc. All Rights Reserved.

Addresses concerns related to environmental & sustainability issues: Hazardous & material waste management Supply chain greening, MSDS & chemical management (dolphin)

Specialist in the field of defense, security, transport & law enforcement: p Security Editorial Security Research Security Consulting Lloyds Register Fairplay (50%)

Provides information, decision support tools & gy related services to energy industry: Research & Consulting Energy Editorial Geologic & Exploration Data Services
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Energy overview: Generic O&G company investment workflow

CORPORATE OBJECTIVES SMART DATA COLLECTION FIND OPPORTUNITIES Leading g g global p provider of critical information, decision support tools and related services in the energy industry Worlds most comprehensive global exploration, development and production database Largest scouting network of Oil and Gas professionals - daily exploration and production is it d i ti monitored in over 180 countries Industry standard for upstream g and downstream intelligence Information covers political, fiscal, contractual, geology, production and facilities

M&A Activity

$$

EXPLORE, DEVELOP AND OPERATE

EVALUATE OPTIONS

Copyright 2009 IHS Inc. All Rights Reserved.

QUE$TOR Introduction

Overview
QUE$TOR is a front end cost estimation tool
CAPEX / OPEX / Production Forecast

QUE$TOR is used b engineers and cost estimators f i d by i d t ti t for

Prospect evaluation / Feasibility studies Screening studies / Conceptual studies Optimisation studies / Asset evaluations

Designed to handle green field developments

Offshore / Onshore / LNG

Reliable, consistent approach to cost estimation

Developed and modified over +20 years

Regional cost databases g

Global coverage
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Benefits of using QUE$TOR

R Repeatable methodology t bl th d l
Confirm / enter prospect data Generates production p p profiles ( , g and water) (oil, gas ) Generates field development plans Calculates complete project capital and operating costs Calculates decommissioning costs for all capital cost items Generates project schedules Calculates an Investment and Production Profiles report for economic

analysis

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Cost Estimation Methodology

Project economics

Production Forecast Net Cash Flow Price Forecast

OPEX Forecast

Fiscal Model M d l

Time

CAPEX Forecast Time

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Estimation basis
T Targeting Middle of th R d EPC contract cost ti Middl f the Road t t t
Pre-sanction costs excluded (FEED study, Environmental studies etc.) Owners project management costs excluded p j g

All costs in Real Terms

Pre-tax costs No cost inflation / discounting

Copyright 2009 IHS Inc. All Rights Reserved.

14

Project Cost Estimation

The only sure way to calculate the capital and operating costs of a project is to add up all the money spent at the completion of the project

Copyright 2009 IHS Inc. All Rights Reserved.

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QUE$TOR workflow

Create a project

Schedule S h d l CAPEX

Select / confirm prime input data

Field development schematic

Generate investment profile Run OPEX algorithms

Create Field Development D l t Schematic

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QUE$TOR cost estimation

B tt Bottom up estimation using Q ti ti i Quantity x U it rate tit Unit t
Equipment Materials Fabrication Installation / Construction Hook Up and Commissioning (Offshore) Hook-Up Design and Project Management Insurance and Certification Contingency (Up to P50 level)

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Cost Databases

Cost databases
R i Regional cost and t h i l d t b l t d technical databases
17 offshore 11 onshore Separate databases for each component, bulk factors and operating costs

Costs updated twice a year

M release Q1 costs May l t November release Q3 costs

Dedicated cost analysts ensure accuracy and consistency

Vendors / Suppliers Contractors / Fabricators Publications Users

Copyright 2009 IHS Inc. All Rights Reserved.

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Cost and product update cycle

6 Monthly releases
May / November release cycle

Database update
May release Q1 costs November release Q3 costs

Software update
Bug fixes g Enhancements New features / components

Release process

CD di t ib t d t users distributed to Release notes Benchmarking study Licence update

Software Hot fixes

Released for critical issues Downloaded from FTP site

Copyright 2009 IHS Inc. All Rights Reserved.

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Main QUE$TOR support contact points

As part of the continuing licensing agreement for QUE$TOR, IHS offers a full technical support service via our London, Houston and Si H t d Singapore offices. B th computing and engineering support relating t th operation and understanding of th ffi Both ti d i i t l ti to the ti d d t di f the program are available. Support e-mail address: support_questor@ihs.com E rope CIS, Africa Middle East (London) Europe, CIS Africa, Tel: (+44) 208 6023800 Fax: (+44) 208 6023805 John Helliwell (Europe, Russia, Africa, Middle East) e-mail: j h h lli ll@ih il john.helliwell@ihs.com
The Americas (Houston)

Tel: (+1) 713 995 1764 Fax: (+1) 713 995 8593 Jonathan Stephens (North, Central & South America) e-mail: jonathan.stephens@ihs.com
Asia Pacific (Singapore)

Tel: (+65) 6225 4166 Fax: (+65) 6225 9694 James Blanchard (Asia, Australia) e-mail: james.blanchard@ihs.com

Copyright 2009 IHS Inc. All Rights Reserved.

21

QUE$TOR
Premier Oil
James Blanchard November 18th and 19th 2009

James.blanchard@ihs.com energy.ihs.com support_questor@ihs.com

QUE$TOR Methodology
Prime Input Data

Development tollgates
Exploration Tollgates

Exploration & Discovery Regional Assessment

Appraisal
Pre-FEED FEED Design, Construct & Commission Operate O t Asset Project Delivery Exit E it Asset

Strategic Screening
Country Entry Opportunity Identification

Pre PreConcept Feasibility

Opportunity Definition

Feasibility
Opportunity Capture, Finance & Market

Strategic Screening Tollgate

Concept Tollgate

Pre PreFeasibility Tollgate

Feasibility Tollgate

Access

Appraisal

Select

Define/ Operate Execute Carryout Plan

Many Fields/Prospects

Many Optimise Scenarios Plan

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Cost estimate classification

Source: AACE International Recommended Practice No. 18R-97

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Generic Process Flow

Re-injection

Processing
Gas

Compression & Metering

Export Flare?

Wells

Wellhead / Manifolding

Separation
Oil Water Export

Processing Treatment

Storage

Pumps & Metering

Re-injection

Disposal

Control Systems

Utilities

Power

Quarters

Drilling

Copyright 2009 IHS Inc. All Rights Reserved.

Define project
Select units set, Imperial, Metric, Oilfield or users own

Select main product Select field location to obtain default typical field data extracted from the extensive IHS IRIS21 E&P database Create procurement strategy or select from list of p previously defined ones y Select technical database, default is set by the field location

Copyright 2009 IHS Inc. All Rights Reserved.

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Cost databases procurement strategy

Can optionally specify the currency to be used for all costs and the exchange rate to the US$ Select cost database to be used for equipment, material, fabrication etc.

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Field level details

Default field data read from IHS Energy database can be overwritten if required Input units for any p y selected input value can be changed on the fly

Copyright 2009 IHS Inc. All Rights Reserved.

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QUE$TOR Profile Generation

Associated gas profile

calculated automatically
All values can be edited l b dit d Automatically generates

p production p profile parameters

Field life affects operating

costs
Plateau rate used to size

facilities
Production rates can be

edited

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Concept selector
14 predefined concepts Suggests concept based

on analysis of l i f Water Depth Reserves Number of wells Distance to Infrastructure

Alternative export options Development concepts

can revised at the Field development schematic by adding or removing components and links

Copyright 2009 IHS Inc. All Rights Reserved.

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QUE$TOR Methodology
Field Development Schematic - FDS

QUE$TOR Cost Summary & Field Development Schematic

Automatically calculates all component costs and p p y p populates the cost tree using QUE$TOR defaults in seconds
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Component Listing - Offshore

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Component Listing Offshore ctd.

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QUE$TOR Methodology
Detailed Costing

Capital cost estimation

QUE$TOR calculates capital costs for each component in terms l l t it l t f h ti t

of:
Equipment q p Materials Fabrication Installation Hook-Up and Commissioning (Offshore) Insurance Design and Project Management Contingency

Copyright 2009 IHS Inc. All Rights Reserved.

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Example - topsides cost estimation

QUE$TOR calculates a weight for each item of equipment or

system This is multiplied by a unit cost to g p y give a cost QUE$TOR then applies bulk material factors (te/te) to calculate weights for piping, electrical etc Steel weights calculated using algorithms specific to substructure type Steel and bulk material costs multiplied by fabrication unit rates Installation durations multiplied by vessel day rates Atshore, Inshore, Offshore HUC calculated D i Design, PM, Certification and C ti PM C tifi ti d Contingency applied t complete li d to l t cost estimate

Copyright 2009 IHS Inc. All Rights Reserved.

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Detailed component cost

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CAPEX Methodology
Capital Cost Scheduling

Capital cost scheduling

Built in schedules developed

from project analysis Start date and duration of each activity can b adjusted h ti it be dj t d and locked Uniform, triangular, down payment & delivery and user t d li d defined cost distribution profiles available User can adjust the duration and start date of each activity via the Gantt chart Shows 1st oil date Option to show schedule in project or calendar months

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OPEX Methodology
Operating Expenses

OPEX methodology
QUE$TOR does not simply generate OPEX as % age of CAPEX d t i l t f

per year as this is not field specific or accurate QUE$TOR splits OPEX into the following categories
Operating Personnel (incorporates regional shift patterns) Inspection and Maintenance (labour/spares/surveys/pigging) Logistics and Consumables (helicopters/boats/chemicals) Well Costs (routine/non-routine) Field and Project OPEX ( j (onshore admin/supply base/support) pp y pp ) Tariffs (paid and received)

Details of personnel, wells, rates, weights, distances are carried

forward from CAPEX for use in OPEX f df f i

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OPEX cost summary

Yearly operating costs Details for each cost centre OPEX easily optimised

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QUE$TOR Methodology
Investment and Production Profile

Investment and Production Profile

Consolidates

CAPEX, OPEX and production for economic analysis

Allows preliminary p y

screening based on cost/boe

Can be exported

directly into AS$ET for economic analysis

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