Contribution_to_presentation_Singhe

Project Options : 

Project Options Explore the three blocks Plan pipeline and gravel islands‘ construction to replace FSPO and tankers and continue devloping blocks 1, 2 and 3 Appraise the most promissing block Option 2 Option 1 Option 3 Option 1, 2 & 3 Develop most promissing block with 20 wells, FSPO and tankers After Payback time ontinue develop block 1 and second block with FSPO and tankers Appraise the three blocks Develop the three blocks with 60 wells, FSPO and tankers Appraise the three blocks Develop the three blocks with 60 wells, gravel island and Pipelines After Payback time Continue develop block 1 and 2 and last block with FSPO and tankers After Payback time Continue developing block 1 and 2 and 3

SWOT Table: 

SWOT Table Strengths Weaknesses Opportunities Threats Technical Capabilities Differences in arctic environment which needs to be understood Clinch new deals in Russia Risks to treat all arctic's environment the same Decades of experience in arctic exploration, production and transportation Efficient technologies for damage mitigation, like spill response still in their research phases learn more in arctic's operations Risks of political changes in Russia that could lead to nationalization of foreign interests Financial strength and state of art technologies Create new paradigm that could favor further arctic developments in Alaska Risks of oil price collapses Rising interest in alternative energies Project and program Management excellence Reinforce position as world n°1 in oil and gas business Risks that resources have been overestimated Management excellence Double our reserves Prices’ inflation and escalation Impressive industry network and good relations with service companies and contractors Enable to break new frontiers in exploration and production in hostile environments Risks that costs exceed and renders project uneconomical Impressive safety records Environmental concerns Good local content and collaboration with host communities Lack of acceptance from American politicians and decision makers Good integration of environmental management in processes and operations Risk of unfavorable new taxation regime

PESTEL Table: 

PESTEL Table Political Stability/ instability in the region Threats of returning to communism and nationalization of oil businesses after Putin's era Uncertainties related to the after Putin's era Reluctance of American politicians to deals with Russia Economical Oil price stability, inflation and price escalation Growth/shrinkage of world oil & gas demand High initial investment required Social The areas are not specially populated, however there is need to care for the scanty native populations in terms of access to educational, health and social services and facilities Technological Fast technological development in oilfields ' exploitation like intelligent oil field, More efficient and cheaper platform, concrete island and pipelines laying and transportation technologies Fast technological development in communication and transportation, especially in arctic environment Environmental Risks of environmental damages related to interfering with the ecosystem through activities and spills Legal Oil and gas regulations in Russia Taxation system in Russia is still in revision Arbitration possibilities in case of conflicts Integrity of the Russian judiciary system

Cost Benefits Analysis: 

Cost Benefits Analysis Option 1 Costs Benefits Monetary Non Monetary Monetary & Non Monetary CAPEX Environmental damage Doubling reserves PBP $6.7 billion $2 billion $5 billion 3 years OPEX Negative influence on our reputation Positive reputation and enable further Alaska development Start production $0.67 billion $5billion $2billion 9 years later Potential risks & losses Double reserves Payback year $1billion $10 billion 12 th year Uncertainties on oil price and political stability $5 billon More data and experience to develop next blocks with less risks $1 billion Option 2 Costs Benefits Monetary Non Monetary Monetary & Non Monetary CAPEX Environmental damage Doubling reserves PBP $11.4 billion $2 billion $5 billion 2 years OPEX Negative influence on our reputation Positive reputation and enable further Alaska development Start production $1.14 billion $5billion $2billion 11 years later Potential risks & losses Double reserves Payback year $1billion $10 billion 13 th year Uncertainties on oil price and political stability $5 billon

Cost Benefits Analysis: 

Option 3 Costs Benefits Monetary Non Monetary Monetary & Non Monetary CAPEX Environmental damage Doubling reserves PBP $13.6 billion $2 billion $5 billion 2 years OPEX Negative influence on our reputation Positive reputation and enable further Alaska development Start production $1.36 billion $5billion $2billion 17 years later Potential risks & losses Double reserves Payback year $1billion $10 billion 19 th year Uncertainties on oil price and political stability $5 billon Cost Benefits Analysis

Work Breakdown Structure- Option 1: 

1 KARA PHASE 1- Option 1 1.1 Exploration 1.2 Initiatiation & specfication of design works 1.3 Appraisal 1.4 Development 1.1.1 3D seismic survey 1.1.2 Seismic data interpretation 1.1.3 Geological mapping 1.1.4 Exploration wells drilling 1.1.5 Cores and cuttings analysis 1.1.6 Geological modeling 1.2.1 Basic FSPO design and construction 1.2.2 Basic CIDS specification 1.3.1 2D &3D seismic survey 1.3.2 Seismic data interpretation 1.3.3 Geological map update 1.3.4 Appraisal wells drilling & testing 1.3.5 Cores, logs & tests analysis 1.3.6 Geological model update 1.3.7 Dynamic reservoir modeling 1.3.8 Field development planning 1.4.1 Development wells drilling 1.4.2 FSPO customization 1.4.3 Getting field ready for production 1.3.4 Commissioning and start production Work Breakdown Structure- Option 1

Gantt Chart- Option 1: 

Gantt Chart- Option 1

PERT CHART- Option 1: 

Geological maps updating Start: 9/10/18 Finish:6/12/20 Res: E ,S,R Dur: 460 days ID: 29 Geological models updating Start: 6/15/20 Finish: 7/22/22 Res: E ,S,R, Dur: 550 days ID: 34 Dynamic models construction Start: 7/25/23 Finish: 11/24/23 Res: S, R ,E,P Dur: 150 days ID: 37 Reservoir Management scenarios investigation Start: 5/1/23 Finish: 11/24/23 Res: R ,S,E,P,F Dur: 150 days ID: 40 Reserves estimation Start: 11/27/23 Finish: 1/5/24 Res: S, R ,E,P Dur: 30 days ID: 44 Devlopment wells drilling Start: 1/8/24 Finish: 2/28/25 Res: C, W ,P, S,R Dur: 300 days ID: 48 Readiness works Start: 3/3/25 Finish: 4/11/25 Res: S,R, F ,C Dur: 30 days ID:52 Commissioning & production start Start: 4/14/25 Finish: 4/14/25 Res: SM Dur: 1 day ID:54 PERT CHART- Option 1 Resources‘ Nomenclature E- Exploration department W- Well engineering department R-Reservoir technology department P- Production technology deparment F- Surface facilities depatment S- Service companies C- Contractors SM- Senior management