Economic Report 2013

Factors for Success • Innovative geological thinking combined with leading edge geophysics • A long-term perspective on E&A activity • Subsurface knowledge sharing between GDF SUEZ E&P affiliates in the UK, the Netherlands and Germany • Application of high-tech 3D seismic technology to capture previously unseen images • Application of drilling techniques for fine grained reservoirs • Revitalisation of existing transport infrastructure Key Facts • Cygnus is located in the southern North Sea, 150 kilometres off the coast of Lincolnshire • £1.4 billion will be invested by the partners, more than 80 per cent of which will be spent in the UK, creating around 4,000 jobs • First gas is due in fourth quarter of 2015 • Gas will be landed at the terminal at Bacton on the coast in north-east Norfolk • It has reserves (with at least a 50 per cent probability of recovery) of approximately 18 billion standard cubic metres of natural gas • It is the UK’s sixth largest gas field by remaining reserves • At plateau production in 2016, it will be the second largest source of gas on the UKCS • The partnership is led by operator GDF SUEZ E&P UK (38.75 per cent), with Centrica (48.75 per cent) and Bayerngas UK (12.5 per cent)

Major contracts awarded in the UK

Companies that are already benefiting from contracts awarded for the Cygnus project include: • Heerema Fabrication Group’s Hartlepool yard – for the fabrication and commissioning of the Alpha WHP and PU platform topsides • Burntisland Fabrication (BiFab) – for the engineering, procurement and construction of the Cygnus jackets and piles, as well as construction of the QU platform. This work will be undertaken at their facilities in Methil and Burntisland in Fife on the Scottish mainland and Arnish on the Isle of Lewis in the Outer Hebrides • AMEC Group in London – for the detailed engineering design contract • Saipem in London – for the diving works and the installation of the main 55 kilometre export pipeline from the platform to the Esmond pipeline and the seven kilometre infield line from the Bravo WHP to the Alpha Complex. • Ensco in London – for the Ensco 80 rig to drill the ten horizontal wells. • Isleburn in Invergordon – for the fabrication of the structures for the subsea ‘Y’ manifold and subsea isolation valves (SSIVs) • Genesis in Aberdeen – which completed the subsea detailed design and remains involved in follow-up engineering

Figure 28: Cygnus Project – Locations of Principal Contractors

38

ECONOMIC REPORT 2013