Economic Report 2013

The project will create new infrastructure in the Montrose field and comprises the following: • The development of about 100 million boe of reserves, with 40 per cent coming from the Shaw oil field, 30 per cent from the Cayley gas-condensate field and the balance from infill drilling on and life extension of the Montrose field • Life extension of theMAR infrastructure from 2017 to beyond 2030 • Subsea tie-back of 17 to 18 kilometres of the Shawfield to theBLP via rigid subsea pipelines • Subseatie-backoftenkilometresoftheCayley field to the BLP via two pipeline bundles • A modular rig to be installed on Montrose to allow drilling of infill wells starting in 2016 • Modifications on the existing Montrose platform requiring over 200,000 direct hours of offshore construction work. Additional living quarters for 30 personnel are being installed on Montrose, together with a new central control room with associated integrated control and safety systemand new office spaces. Various modifications are also required to support the new BLP interfaces, along with life extension upgrades

Major Contracts Awarded in the UK • Subsea 7 Ltd in Aberdeen – provision of engineering, procurement and installation of two five- kilometre pipeline bundles complete with towing heads; procurement, installation, trenching and pre-commissioning of 17.5 kilometre production and gas lift pipelines and an 18.5 kilometrewater Injection pipeline; and installation of four subsea umbilical lines, production manifold and gas export SSIV structure. Offshore installation will take place during 2014 and 2015 seasons. Contract value: £178 million. • AMEC Group in Aberdeen – engineering, procurement, construction and commissioning services on the Montrose platform. Contract value: £67 million • CB&I UK in London – engineering design of jacket and topsides. Contract value: £62 million • OGN North Sea in Newcastle – engineering, procurement and construction of the Montrose BLP jacket and piles. Contract value: £55 million • Saipem in London – transportation and installation services. Contract value: €37 million • Proserv Controls in Great Yarmouth – engineering, procurement, manufacture and testing of the subsea control system. Contract value: £10 million • Duco Ltd in Newcastle – engineering, procurement, manufacture and testing of six subsea umbilical lines. Contract value: £10 million • Invensys Systems (UK) in London – new integrated control and safety systems for Arbroath, Montrose and the new BLP. Contract value: £5 million • Hertel in Middlesbrough – engineering and construction of additional living quarters for 30 personnel on Montrose. Contract value: £6 million

Figure 30: MAR Project – Locations of Principal Contractors in the UK Amec Group Ltd Brownfield EPCC £67m MEC

Subsea 7 Ltd Subsea Construction £178m

OGN North Sea Ltd Jacket Fabrication (EPC) £55m

Duco Ltd Subsea Umbilicals £10m

Hertel Technical Services Ltd Additional Living Quarters £6m

Proserv Controls Ltd Subsea Controls £10m

CB&I UK Ltd Jacket Topside Engineering £62m

Source: Talisman Sinopec

Saipem Ltd Transportation and Installation Euro 37m

InvensysSystems (UK)Ltd Integrated Control and Safety Systems £5m

10-45m 45-100m 101-200m

2-10m

40

ECONOMIC REPORT 2013

Source: Talisman Sinopec