GOLDENEYE MONTHLY REPORT

JUNE 2004

Progress Photo 1 St Fergus – Final Valve Installation work on main rack top platform.
Progress Photo 2 St Fergus - Main Rack from N/E Testing, Punchlisting, Insulation and Painting Activities ongoing.
Progress Photo 3 St Fergus – Commissioning Works progress through Glycol Systems.
Progress Photo 4 St Fergus – Fulmar Car Park Re-instatement commences.

Distribution: Project Asset Other Parties

Team Esso: C. Worthington
and S.Hewitt
Centrica: R. Lamb
Paladin: K. Hosgood
Note: Project Monthly reports to be available over the Web in the EPE web site
• HS&E
• ATEX regulations compliance review of Goldeneye onshore facilities (by Bureau
Veritas) undertaken at FWEL Glasgow offices and St Fergus site
• Independent Critical Review of the Goldeneye Onshore and Offshore POPM’s
carried out.
• Final Safety Review of Goldeneye Onshore Facilities held.
• Final Goldeneye/St Fergus HSE Stakeholders Meeting held.
• HAZID for the Goldeneye 20” pipeline dewatering activities undertaken.
• Nitrogen/Helium leak testing safety review held.
• 6 first aid cases at St Fergus, investigations have been undertaken.
• Goldeneye Project Pre Start-up Audit follow-up review held.

Look ahead:
• Complete offshore DCR verification scope
• Preparation for Introduction of hydrocarbons
• MONTHS HIGHLIGHTS
• HSE - the project team at St Fergus completed two years work without an LTI
• Venture Techcom and Opcom’s were held during the month
• Subsurface – continuing assistance to process engineering on potential higher GCR
and optimized start up procedures
• Pipeline - MEG shipments completed, 4 “ dewatering completed mid June
• Pipeline – Dewatering of 20” planned for mid July.
• Offshore Platform – N2/He Leak testing completed
• Offshore (Honeywell) Mod pack work on NUI F&G / ESD / DCS system completed in
June, resultant changes to clear fault logs will require retest early July followed by
site wiring mods mid July.
• Onshore (General) Construction is nearing completion although progress continues
behind plan due to poor productivity. Efforts are focused on process systems
completion and nitrogen/helium leak testing of main module commencing mid July.
• Onshore (General) June saw the successful completion of N2/He leak testing of the
inlet, slugcatcher and pig receiver facilities.
• Onshore FWEL) Over 1,180,000 manhours have been worked at site by FW. There
was 6 FAC and 1 near miss in June.
• Onshore (FWEL) Interserve mechanical progress focus remained on
mechanical/piping hydrotesting and reinstatement. Productivity continues to be poor.
• Onshore (FWEL) E&I cable glanding and termination work continues at available
workfaces. The first 24 of 71 motor test runs have been completed and loop
checking is now 40% complete.
• Onshore (FWEL) Replacement of the main inlet valve seals was completed and
successfully tested during the month.
• Onshore (FWEL) N2/He testing of the inlet facilities, slugcatcher and pig receiver
were completed during the month.
• Onshore (Honeywell) GE ESD and F&G systems mod pack work and testing is
complete and systems are in use supporting site loop checking activities, minor
outstanding items to be cleared during commissioning activities.
• Onshore (Honeywell) Design work on outstanding TPS system control schemes is
complete. FAT completed, site application load and SAT complete by mid July.
• Onshore (Wood Group) Pre-Commissioning support on-going with FWEL
• Onshore (Wood Group) Mechanical piping, E&I remedial work support to FWEL
• Onshore (Wood Group) Loop testing in progress.
• Onshore (Wood group) HVAC, lighting and internal corridor modifications in planning
phase
• Operator training ongoing using dynamic simulator
• Operator guidance tool delivery delayed to August to allow training.
• Glycol drains and glycol offshore export systems in service.
• MEG delivery completed, lean MEG tank T7702 at 97% level.
• 2nd commissioning operator joined team in June.
• Slugcatcher vent system in service.
• Rich MEG tank T-7701 skimmer modification completed.
• Safety reviews of Operating procedures carried out.

• EXTERNAL LIAISON AND REPUTATION

• NTR
Look ahead:
• NTR
• COMMERCIAL

Pipeline Crossing and Proximity Agreements

• Sage/Miller proximity agreements for the operational phase; awaiting feedback Miller
owners
• AC/Goldeneye proximity agreement; has been executed
• Buzzard / Goldeneye crossing agreement; being progressed.
• Frigg/Goldeneye proximity agreement not required anymore

The AC Operational Services agreement is being progressed. Timeline slipped due to staff
changes within BG.

• SUBSURFACE
Subsurface Modelling

Shell, as a Goldeneye coventurer, has decided that it sees no need for additional PDSM
processing on the seismic dataset at this time. Consequently the subsurface modeling is
proceeding on the basis of an updated 10-layer depth conversion. Sensitivities on Top Unit C
are also being incorporated. A geological workshop is being planned for early August with all
coventurers to review the updated static model.

Continuing assistance has been given to the surface process engineers on both the potential
impact of a higher CGR and optimized Field startup procedures and process modeling of the
whole Goldeneye facilities with a higher CGR product is ongoing.

Look ahead:
• Geological workshop in August

• PIPELINE
• Dewatering of 4” pipeline was completed mid June
• Dewatering of 20’’ now planned for mid July following successful N2/He testing of
inlet facilities at Site and N2/He testing of offshore platform.

• OFFSHORE PLATFORM
• Flowline hook-up 90% (complete by 10th July)
• 4" Dewatering Complete
• Separator Level Instruments checked
• Installation of E and I hook up to trees 50% complete.

Look Ahead:
• Leak test topsides process pipework (in progress)
• Dewatering of 20" pipeline & Gas-up
• Complete flowline hook-up (done)
• Cellar-deck steelwork modification
• Complete E&I hook-up to trees
• ONSHORE
• Construction is nearing completion although progress continues behind plan due to
poor productivity. Efforts are focused on process systems completion and
nitrogen/helium leak testing of main module commencing mid July.
• June saw the successful completion of N2/He leak testing of the inlet, slugcatcher
and pig receiver facilities.
• Project team completed 2 years at St Fergus without an LTI.
• Commissioning of utility systems is in progress.
• Pre-start up audit part 2 held 20/21June.

Foster Wheeler
• Progress

Actual Planned*
Construction 96.4% 99.5 %
Overall (cumulative) 98.9% 100%
Month 0.9% 0%
*Rev A09 plan

• Over 1,180,000 manhours have been worked at site by FW. There was 6 FAC and 1
near miss in June.
• Interserve mechanical progress focus remained on mechanical/piping hydrotesting
and reinstatement, at the cut off date only 39 tests remained, work on completeing
these and reinstatements continues. Nightshift work continues to help progress.
Vessel inspections ongoing with 34 completed out of 47. Productivity continues to be
poor.
• E&I cable glanding and termination work continues at available workfaces. Loop
testing in progress. The first 24 of 71 motor test runs have been completed and loop
checking is now 40% complete.
• Pre-commissioning group is supervising line drying and reinstatement.
• Replacement of the main inlet valve seals was completed and successfully tested
during the month.
• The turnover group continues with punchlist work and Wood Group are mobilising to
assist in completing these punchlist items.
• N2/He testing of the inlet facilities, slugcatcher and pig receiver were completed
during the month.

Honeywell
• Work on fault logs and modpacks (FSC & TPS) on-going.
• GE ESD and F&G systems mod pack work and testing is complete and systems are
in use supporting site loop checking activities, minor outstanding items to be cleared
during commissioning activities.
• Design work on outstanding TPS system control schemes is complete. FAT
completed, site application load and SAT complete by mid July.
• Mod pack work on NUI F&G / ESD / DCS system completed in June, resultant
changes to clear fault logs will require retest early July followed by site wiring mods
mid July.

Wood Group
• Commencing E-W piperack scaffolding removal
• Pre-Commissioning support on-going with Foster
• Mechanical piping, E&I remedial work support requested from FW
• Loop testing in progress.
• HVAC , lighting and internal corridor modifications in planning phase

Operator Training Simulator and Guidance Tools

• Operator training ongoing using dynamic simulator
• Operator guidance tool delivery delayed to August to allow training.
 Commissioning
• Glycol drains and glycol offshore export systems in service.
• 4” line dewatering completed.
• MEG delivery completed, lean MEG tank T7702 at 97% level.
• 2nd commissioning operator joined team in June.
• Slugcatcher vent system in service.
• Nitrogen / Helium tightness test completed on Slugcatcher and Pig Receiver
envelopes.
• Rich MEG tank T-7701 skimmer modification completed.
• Safety reviews of Operating procedures carried out.
• System walkdowns ongoing

Look ahead:
• Handover of hot oil system
• Delivery of Thermia B heating transfer fluid due mid July
• Safety review of commissioning procedures.
• Commence N2/He leak on Greenfield site by 16th July
• Painting remedial work and piping insulation
• Complete loop checking
• Progress commissioning
• 20” pipeline dewatering
• 3.3Kv systems will be energised

• CONTRACT STATUS
• Van Oord – Only one milestone for final reinstatement work (grass re-seeding)
remaining to be achieved.
• M-I Production Chemicals – Completion of MEG deliveries achieved on 19th June.
• Foster Wheeler- Increase to the commitment value of the EPC Onshore Facilities
Contract endorsed by the Tender Board on 24th June. The revised commitment
value is £100MM.
• Contract for Site Reinstatement Work awarded to John Gibbins, the Site Preparation
Contractor, on 28th June, with an estimated value of £600k
• Honeywell – Increase to the commitment value of the Integrated Control & Safety
System Contract endorsed by the Project Engineering Supply Chain Council on 29th
June. The revised commitment value is £5.97MM.

Look ahead:
• Fantoft – Contract for the provision of a licence for the Goldeneye engineering
simulator model and for the maintenance and support of the Operator Training
Simulator Model, the Operator Guidance Tool and the Engineering Simulator
expected to be signed on 1st July
• VERIFICATION
Auditing
• Pre Start-up and ATEX Verification Audits conducted.

Look Ahead:
• Joint Handover (with Gas Plants) and As Building Audits scheduled for July.

Verification
• Completion of Design/Construction/Commissioning Verification scheduled for July
with an offshore visit by the Verifier to complete outstanding activities.

Look Ahead:
• Draft Operational Verification Scheme has been issued and will be brought up to
approved status.

Permits and Consents

• Activities, both onshore and offshore continue on schedule.

• PLANNING
• MILESTONES

Mil tVAR2
Feasibility Value Assurance Review GBPMarch
27-31 S h d2000
l 27-31AMarch
t l 2000

Shell/Exxon-Mobil Integrated Offer to Co-Owners Q1 2001 09 March 2001

Pre-Conceptual Value Assurance Review VAR3 Q1 2001 12-16 February 2001
Interim Project Funding (Onshore) Q1 2001 18 June 2001
Commence Onshore FEED/Conceptual Design Start Q2 2001 18 June 2001
Pre-Sanction Value Assurance Review VAR4 24 to 28 Sep 01 24 to 28 September 2001
Full Project Funding End 2001 17 December 2001
Condensate Evacuation Decision Mid Feb 2002 14 February 2002
Fully Termed Unit Agreement End Q1 2002 15 March 2002
Field Development Consent (Sec. of State) End Q1 2002 13 March 2002
Award Major EPC Contracts 1st. May 2002 17 April 2002
Successful Module 1 Shutdown Q2 2002 22 June 2002
Planning Approvals – Technical & Landfall End Q2 2002 16 April 2002
Successful Engagement of Major Stake Holders End Q2 2002 13 May 2002
Demolition of Unit 9000 and Complete Work Access Road at St.Fergus Q3 2002 04 September 2002
Well Objectives & Optimisation Q3 2002 16 October 2002
Award Drilling Rig Contract Q3 2002 18 September 2002
Detailed Well Completion Designs (Generic) Q4 2002 12 November 2002
Install Jacket Template & Docking Piles End Q4 2002 04 October 2002
Complete Offshore Detailed Design AFC’s Drgs. End Q4 2002 30 December 2002
Award Onshore PAU Subcontracts End Q4 2002 04 September 2002
Finalise Well Eng./ Petroleum Eng Proposals (WEPEP) Q1 2003 12 March 2003
Topsides – Vent Boom Fabricated & Helideck Erected Q1 2003 18 February 2003
Well AFE’s Issued Q2 2003 26 June 2003
Detailed Drilling and Completion Programmes Finalised Q2 2003 03 November 2003
Pipeline Beach Pull Q2 2003 15 May 2003
Jacket & Topsides Ready for Sailaway Q2 2003 20 June 2003
Satellite Communications Test Onshore Q2 2003 26 May 2003
Onshore WHRU’s Installed and Ready for Tie-in. Q3 2003 31 July 2003
Platform Installed Offshore Q3 2003 28 June 2003
Commence Rig Operations Q3 2003 14 September 2003
Onshore – Modules Installed at St. Fergus Q3 2003 13 October 2003
Shutdown Scopes Completed at St. Fergus + Mossmorran Q3 2003 24 August 2003
Hydrotest of 20 and 4 inch Pipelines Q3 2003 03 October 2003
Onshore Simulator Delivered Q4 2003 30 November 2003
Complete ESD control systems change over Q1 2004 31-January 2004
Commence Filling Meg Tanks Q2 2004 30th April 2004
Onshore EPC Mechanical Completion Q2 2004
Introduce Dry Commissioning Gas to Process Systems Q2 2004
Deliver the Operating Guidance Tool (OGT) Q2 2004
Shutdown Tie-ins completed onshore Q2 2004 24th May 2004
Mossmorran scope completed Q2 2004
5 Wells completed safely Q2 2004 4th April 2004
Complete Dewatering 4” pipeline Q3 2004 15th June 2004
Complete Dewatering 20” pipeline Q3 2004
Complete all operator training prior to start-up Q3 2004
Commence Goldeneye production Q4 2004
Stable Operations Q4 2004
Project hand-over to operations Q4 2004
Updated Static model Q4 2004
• PROGRESS S-CURVES
• COST – Report

• RECHARGE OF ATLANTIC/CROMARTY MODIFICATIONS

• COST – HISTOGRAM

Goldeneye Unit Spend vs Approvals

(incl Contingency)

120,000

100,000

80,000

GBP
£k 60,000 AFE
AFC
Commitments
Spend to Date
40,000

20,000

0
CD PM Onshore Jacket Topsides TT&I Pipeline Drilling
BSI

• CHANGES (Washing Line)

• PROJECT OPPORTUNITY & RISKS