#1exploration & production. PERFURASAUN ESPLORASAUN TIMOR-LESTE Konsulta Maksoin-lisuk (stakeholder) 24 Agostu 2010 eni#2introduction/introdusaun Exploration drilling in permit area S06-03, Timor Leste Exclusive Area ■ One well: Cova Drilling ship: Saipem 10000 Drilling starts early October 2010 ■ Perfurasaun esplorasaun iha área lisensa S06-03, Área Eskluzivu Timor-Leste ■ Posu ida: Cova Ró perfurasaun: Saipem 10000 ■ Perfurasaun sei hahú iha inísiu Outubru 2010 eni exploration & production 2#3introduction/introdusaun Production Sharing Contract ■ Between Timor Leste Government and Eni Signed 3 November 2006, under the Petroleum Act Commitment to drill at least two wells in the S06-03 permit area, during "second period" (2010-2011) Expires 2013 Kontratu Fahe Produsaun ■ Entre Governu Timor-Leste no Eni Asinadu 3 Novembru 2006, iha Ata Petróleu nia okos Kompromisu atu fura pelumenus posu rua iha área lisensa S06-03, durante "períodu daruak" (2010-2011) ■ Hotu iha 2013 eni exploration & production 3#4introduction/introdusaun Environmental assessment: ■ 21 December 2009-Terms of reference accepted by DNMA ■ 23 February 2010-Environmental screening workshop ■ 12 April 2010-Environmental Impact Statement (EIS) and Environmental Management Plan and Monitoring Program (EMP) submitted to DNMA. ■ 7 July 2010-EIS and EMP distributed to stakeholders ■ 24 August 2010-Stakeholder review meeting Avaliasaun ambientál ■ 21 Dezembru 2009 - Termu referénsia ne'ebé aseita hosi DNMA ■ 23 Fevereiru 2010 - Kolókiu ezaminasaun ambientál ■ 12 Abril 2010 - Deklarasaun Impkatu Ambientál (EIS) no Planu Jestaun no Programa Monitorizasaun Ambientál (EMP) ne'ebé submete ba DNMA ■ 7 Jullu 2010 - EIS no EIS ne'e distribui ba maksoin-lisuk (stakeholder) sira ■ 24 Agostu 2010 - Soru-mutu revizaun maksoin-lisuk (stakeholder) eni exploration & production 4#5introduction/introdusaun Purpose of today's meeting is to present: ■ An update of the drilling program The environmental impact assessment completed in the EIS ■ Eni's management controls for environmental risks ■ An opportunity for stakeholders to ask questions Objetivu hosi soru-mutu ohin-loron nian mak atu aprezenta: Atualizasaun ida hosi programa perfurasaun nian ■ Avaliasaun impaktu ambientál ne'e kompleta tiha iha EIS ■ Eni nia kontrolu jestaun ba risku ambientál Oportunidade ba maksoin-lisuk (stakeholder) sira atu husu pergunta eni exploration & production 5#6introduction/introdusaun Agenda: 1. Description of the drilling program 2. Environmental studies completed by Eni (Lunch 12.30) 3. Environmental risks and management 4. Finalising the EIS 5. Questions Ajenda 1. Deskrisaun programa perfurasaun nian 2. Estudu ambientál ne'ebé kompleta hosi Eni (Han-meiudia 12.30) 3. Risku no jestaun ambientál 4. Finalizasaun EIS 5. Pergunta sira eni exploration & production 6#7PART ONE: Description of the drilling program PARTE IDA: Deskrisaun programa perfurasaun nian eni exploration & production 7#8drilling/perfurasaun eni LOCALITY MAP SNOW-LESTE Derwin TROR LESTE WEST TIMOR TIMOR LESTE S06-03 PERMIT LOCATION MAP 125°00 TIMOR SEA LEGEND Gas field Oil field INDONESIA AUTHOR: C. Doncon eni Dili TIMOR-LESTE ARAFURA SEA 900 S06-02 S06-01 S06-04 S06-03 S06-05 TIMOR-LESTE EXCLUSIVE AREA INDONESIA AUSTRALIA SUNRISE S06-04 S06-03 KELP DEEP TROUBADOUR * 迦 TERRITORY OF ASHMORE AND CARTIER ISLANDS AUSTRALIA DATE: July 2010 Joint Petroleum Development Area JPDA06-105 JPDA03-13 BAYU/UNDAN 1100- 50km 475388 FILE No: Timor-Leste a4s14753.dgn exploration & production 80#9drilling/perfurasaun Cova was identified as a potential "prospect" for oil and gas during seismic surveys in 2007-08 To learn more about the prospect, the next step is to drill an exploration well Drilling will provide information on the reservoir geology, and whether there are commercial quantities of oil and gas. ■ Cova ne'e identifika nu'udar "prospetu" potensiál ba petróleu no gás durante levantamentu sizmiku iha 2007-08 ■ Atu aprende liután kona-ba prospetu, pasu tuirmai mak atu fura posu esplorasaun ida Perfurasaun sei fornese informasaun kona-ba jeolojia rezervatóriu, no se iha kuantidade petróleu no gás komersiál eni exploration & production 9#10drilling/perfurasaun ■Duration of drilling campaign: 45 days Water depth: 1930 m Depth of the well: 4200 m Vertical well ■Durasaun kampaña perfurasaun: loron 45 Bee nia lale'an: 1930m Posu nia lale'an: 4200m Posu vertikál eni exploration & production 10#11drilling/perfurasaun Well Schematic: Cova - 1 Exploration Well Preliminary Hole Sizes, Casing, Mut, Cement All depths in mRT MO RT-LAT 24m Water Depth 1935 m55 RT-Seabed-1954 m85 Ditum in LAT Leni eni PSC 506.83 00A 14, AMS Zone 5S 26" pilot hole and open to 42" Hole Mud: SW+Sweeps MW: 1.03-1.05 SG Returns to seabed 1.89 SG Tail Cement to Seabed 1954m 36" Conductor 2014m Surface Casing WT 1.5" RL4 20 133 ppf RL4S 2238m 12-114 Hole to-3710m Length 1472m DRILLING WITHOUT BOP & RISER Mud: SW+Sweeps MW: 1.03-1.05 SG 1.89 SG Tail Cement to 3200m 8-1/2" Hole to-4204m Length 494m DRILLING WITH BOP & RISER Mud: HP Water Based Mud MW-1.15 SG (9.6ppg) Notes TD=4204mRT/4180mSS VERTICAL WELL Intermediate Casing 9-5/8" 53.5 ppf Q125 Tenaris Blue NF 3,700m Estimated LOT: 1.28 SG Laminaria/Plover - Firm Coring in Reservoir 1) In the success case (presence of HC), a second 27m core maybe cut and a full wireline formation evaluation performed. The well will then be abandoned ation & production 11#12drilling/perfurasaun Top part of well hole drilled without riser (pipe) ■ Riser added after drilling 1750 m, drill cuttings brought to surface on Saipem 10000 for treatment Drilling mud removed from cuttings in processing equipment ■ Clean cuttings discharged from Saipem 10000 near the ocean surface. ■ Kuak posu parte leten nian ne'e fura lahó kanu ■ Kanu ne'e sei aumenta liutiha perfurasaun 1750, perfurasaun nia eskavasaun ne'e sei lori ba Saipem 10000 nia leten hodi halo tratamentu ■ Tahu perfurasaun ne'e hasai hosi eskavasaun ba iha ekipamentu prosesamentu nian Eskavasaun ne'ebé moos ne'e hasai hosi Saipem 10000 besik ba superfísie tasi nian eni exploration & production 12#13drilling/perfurasaun eni exploration & production 13#14drilling/perfurasaun Exploration well ■ No oil or gas to be brought to surface (no well testing) Well hole closed by filling with cement at end of drilling ■ If oil or gas is found, production drilling would be done at a later time, either at the same location or a different location. Posu esplorasaun ■ Sei la lori petróleu ka gás ba superfísie (la iha ezaminasaun ba posu) ■ Kuak posu nian ne'e taka hodi enxe ho simente iha fín perfurasaun nian ■ Se hetan petróleu no gás karik, produsaun perfurasaun mak sei halo iha tempu tuirmai, tantu iha fatin hanesan ka iha fatin diferente eni exploration & production 14#15drilling/perfurasaun Saipem 10000: ■ Designed to drill in very deep water Built in 2000 ■ 220 m long, 40 m wide, 20 m tall Accommodation for 142 people ■ Two drilling rigs Uses propellers (thrusters) for stability Saipem 10000: Dezena atu fura iha bee ne'ebé kle'an tebes ■ Harii iha 2000 ■ Ninia naruk 220m, luan 40m, aas 20m Alojamentu ba ema 142 ■ Torre-perfurasaun iha rua ■ Uza propulsór sira (thrusters) ba estabilidade nian SAIPEM 10000 eni exploration & production 15#16drilling/perfurasaun ALB eni Sai10 k Beginning of drilling Rig A: Starts to drill hole Rig B: Places beacons on seabed, to help keep vessel in place ■ Remote operated vehicle (ROV) with video camera Hahú perfurasaun Torre-perfurasaun A: hahú fura kuak Torre-perfurasaun B: hatuur Ahi-sinál iha tasi-okos, hodi ajuda hatudu ró iha fatin Veíkulu ne'ebé opera hosi dook de'it ho kámara-vídeo exploration & production 16#17drilling/perfurasaun Ацв eni Sai10 k Top of well hole Rig A: Placing cement in sides of well hole Rig B: Bringing down bottom-hole-assembly equipment Kuak posu nia leten Torre-perfurasaun: Tau simente iha kuak posu nia sorin ■ Torre-perfurasaun B: hatún ba okos ekipamentu montajen kuak nian exploration & production 17#18drilling/perfurasaun Am B eni XXX Sai10 k Top of well hole Rig A: Bringing down blowout-preventer (BOP) equipment Rig B: Continuing to drill hole Kuak posu nia leten Torre-perfurasaun A: hatún ekipamentu ne'ebé prevene rebenta (BOP) Torre-perfurasaun B: Kontinua fura kuak exploration & production 18#19drilling/perfurasaun eni Sai10 k Top of well hole Rig A: Bringing down blowout-preventer (BOP) equipment Rig B: Placing cement in sides of well hole Kuak posu nia leten Torre-perfurasaun A: hatún ekipamentu ne'ebé prevene rebenta (BOP) ■ Torre-perfurasaun B: Tau simente iha kuak posu nia sorin exploration & production 19#20drilling/perfurasaun AMB eni Sai10 k Preparing to drill deeper Rig A: Attaches BOP to well head Rig B: Not required after the BOP is in place. Can be used if Rig A is damaged. Prepara atu fura kle'an liután Torre-perfurasaun A: Taul BOP ba posu nia ulun Torre-perfurasaun B: La presiza liutiha BOP ne'e iha fatin. Bele uza karik Torre- perfurasaun A ne'e estraga exploration & production 20#21drilling/perfurasaun Konvés kanu prinsipál FWD nian eni Konvés kanu sekundáriu parte kotuk nian Konvés kanu parte kotuk nian oration & production 21#22drilling/perfurasaun eni Eni Saipem Saipem Enl Dual Derrick Front View exploration & production 22#23eni Racks with piping / Prateleira ho kanalizasaun exploration & production 23#24HYDRALIFT eni exploration & production 24#25E Blow-out preventer (BOP) Ekipamentu ne'ebé prevene rebenta eni exploration & production 25#26drilling/perfurasaun ROV nia estibordu parte kotuk nia Inn OR Sonsub INNOVATOR ROV nia portu parte kotu nian Remote Operated Vehicles (ROV) with cameras, used for viewing activities underwater Veíkulu ne'ebé Opera hosi Dook de'it (ROV) ho kámara, uza hodi haree atividade bee-okos nian eni exploration & production 26#27drilling/perfurasaun A support vessel will be used for: Transporting goods, fuel and drilling tools • Emergency support if required Ró apoiu ne'e sei uza ba: Transporta sasán, kombustivel no ekipamentu perfurasaun nian Apoiu emerjénsia karik presiza eni " UT 755L exploration & production 27