BPTT Activity Update Technology – Transforming the Energy Industry Good afternoon. All protocols observed. Slide 2: BP in T&T It is always good to talk about our current and future activities and tie them back to the one plan that we have been executing against. -the Area Development Plan. Our acreage is managed through what we call our Area Development Plan. I appreciate that you are interested in BPTT’s short-term and long-term future activities and plans, however before I discuss those I will briefly talk about activities we have already delivered (including technology enablers) in the Area Development Plan. These activities underpin the future and give us confidence that we have a solid plan. So, I will simply do two things this afternoon • Talk about a what we have delivered to date to enable the future which includes Modernising and transforming how we work and the technology required to drive BPTT forward and • Give details about our short-term activities. So, what are some of the key things we have delivered to date: Let’s start with Technology: You would have heard about the need for technology and to transform the business from Claire and Ahmed yesterday. So I will dig a bit deeper to share what we have done and the impact technology is having in our operations. We continue to look for ways to become more effective and ultimately more efficient . Our approach to Modernisation and Transformation is not only about adding new technology because some of the technology we’re using was introduced two, three years ago. M&T is about changing the look and feel of the organization. We have introduced and continue to embed agile methods of working across the organization. It is a journey and teams really enjoy the different ways of working which make them more effective and efficient without losing the focus on safety and sacrificing technical quality. Slide 3: SCRUM quotes - here is a slide showing teams working agile – doing Scrum and some of the quotes of how it feels --- and this is said by all who particiapate M&T It is about applying focus to our implementation of technology on a global scale and there is also the digital aspect and our ability to manage large streams of data and make well informed decisions quickly. On Monday BP Chief Digital and Technology Officer, Upstream Ahmed Hashmi talked about the companys M&T agenda, technology, tools, digital and how we are changing the culture and the way we work – here in Trinidad we are part of that M&T wave and it feels different and exciting. I will now give more details about how we’re employing and using technology in Trinidad and Tobago. Slide 4: ADP achievements To date: Seismic – you will remember we acquired Ocean Bottom Seismic in 2011-3013 and we continued with Ocean Bottom Nodes in 2017. These surveys have opened up the basin for us under our existing facilities, adjacent to the facilities and in areas not already developed. We continue to de-risk our current portfolio, identify new opportunities while some others in the portfolio have become smaller. We have used DrawDown controllers on a few of our wells in a 2018 trial : Simply, Drawdown controller is software that automatically controls the drawdown rate of a well – controlling a well’s production rate based on several data points – allow for quick response to opportunities and threats. We plan to do more wells in 2019. This has been very important for wells riding on system pressure, with potential sanding tendencies or those that load up with water. How we manage those wells and bring them on is critical to overall recovery of the hydrocarbons. Operator workbench : Operator Workbench uses mobile technology to digitise processes to improve safety and efficiency for our front line operations/operators. It involves supplying hand-held devices to the frontline to become part of the daily site routine. Mahogany B became the first team to go live with Operator Workbench (OWB) in August 2018 Return to Scene – Both Claire and Ahmed yesterday briefly talked about Return to Scene ( R2S – technology based on use in police investigtaions). R2S uses augmented reality to remotely inspect facilities. The result has been a reduction in site visits, flights and ultimately a reduction of risk to people visiting the platforms to work. So far on 4 offshore platforms, over 3000 hi res images have been captured and we are working towards a target of 30% reduction in visits to sites….allows us to essentially walkdown the facility while in the office. Argus and APEX : Argus harnesses the power of big data to improve production management. APEX creates a digital twin of production systems. This technology allows us to simulate and optimize production by modelling physical constraints and adjusting operating parameters accordingly. Our Apex model in TT is the largest within BP, containing almost 100 wells (active / inactive), 14 platforms, 3 production hubs and our network of pipelines. As Ceramic Screens : Trinidad is the first region in BP to have production from both oil and gas wells using ceramic sand screens in the completions. Ceramic screens are a cost effective solution for deploying sand control in RCP wells, by providing high erosional capacity (100 to 330ft/s) and lower execution complexity when compared to conventional sand control methods. It can be implemented without a rig, making it cheaper. There have been early successes achieved in wells with failed gravel pack, high fines content, unconsolidated virgin reservoirs. To date we have : • As of today we installed Ceramic screens in 4 wells in 2018: three (3) wells are on “sand free” production today, one well was not POP due to GLV issues. This has been possible through collaboration with We have collaborated with Key contractors during the implementation - - 3M (manufacturer), Interwell and Tucker Energy Services. • Future possibilities: the huge prize here and future potential of ceramic screens lies in efficiently unlocking more of our Small Pool opportunities and developments. Moving on from Technology we have also delivered key major projects in our Area Plan TROC and Juniper major projects were delivered in 2017 and both are performing well. Both of these were important to our ability to meet gas supply commitments. These two projects helped BPTT to increase its supply of gas to the NGC by 18% and also had a positive impact on national supply. Our next project Angelin, is on track to have first gas delivery in 1Q 2019. Looking out further, and as part of our M&T agenda, we are exploring a new concept for delivering platforms. What we refer to as “minimal NUI” ( normally unmanned installation) concept focuses on delivering installations that are simpler, safer, greener and more competitive. Some of the highlights are: • Reduced complexity • Repeatable design for future developments which shortens project cycle time • Using Power supplied remotely from existing facility which will limit both maintenance requirements and our carbon foot print • Remote sensors which provide predictive campaign-based maintenance and • Use of CCTV which will limit the need to visit platform while digital twinning allows for detailed campaign planning from shore On the Commercial side we have delivered an extension to our NGC contract and are currently in negotiations regarding Train 1 contract extension. Finally Exploration in our ADP – In 2018 we announced success at Macadamia (now Cyre) and Savannah (now Matapal) I will talk more later about the status of these discoveries and what more is to come in exploration. As we fully explore and develop resources in the basin we will continue to test new plays/cocepts and interpretations and we do recognize the increased associated risk. We had a couple wells in our Cannonball drilling program fail late 2018 and early 2019. We knew these were riskier opportunities with significant upsides and will now take the learnings forward into our future exploration and in field development programs. Moving in to our 2019 activities : Short term activities Slide 5: Operations On the operations side it is very important that we continue to keep the integrity of our infrastructure in good shape especially with the future in mind. In 2019 we have • Turnarounds planned at Amherstia and Cassia: o Amherstia TAR – which will be executed in Q4 Involves Significant Isolation Valves replacement o Cassia TAR – is planned for Q3 Cassia Offline only, Immortelle, NUIs on bypass for the duration Integrity Management work will be carried out as well as tie in scope of work for the up coming cassia compression facility ( aka Cassia C). o Other major operation work includes 40-inch valve replacement at Mahogany B in Q2 . This valve replacement will allow 40 inch pipeline pigging without having to take a full Mahogany hub outage and thereby reducing any planned deferrals. (significant to note that Mahogany Hub is currently doing over 1 bscfd) o • We will plan to shelter all our TAR and other shutdown activities as far as we can – for example under the large Train 1 TAR. Slide 6: Drilling Drilling: We have a fairly significant well intervention and wellwork program in 2019. We continue to do infill drilling in our existing fields and in our new field developments • We will continue with our 2-rig programme. • In addition to drilling at Angelin, our 2019 development drilling programme includes: • 1 well on Cannonball (actually finished in 2018), and • A 4-well programme on Cashima • And we continue to do significant Well intervention and wellwork in our fields. ( we will do over 17 jobs including 9 wellwork , 1 rig recomplete, 1 workover) Slide 7: Major projects Major projects: Angelin • Angelin is BPTT’s 15th offshore platform. The facility is located 60 kilometres off the south east coast of Trinidad in water-depth of approximately 65 metres. Angelin was originally discovered by the El Diablo well in 1995 and appraised by La Novia in 2006. The OBC seismic unlocked and derisked Angelin and this was the first project to be positively impacted by the OBS. The development includes four wells and gas from Angelin will flow to the Serrette platform via a new 21 kilometre pipeline. • The Angelin facility has been successfully installed and first gas is on track for Q1. • Drilling is ongoing and to date we have drilled 2 wells already – results largely on plan, not on production yet). Our next major projects Cassia C and Matapal were both sanctioned in December. Let me take this opportunity to clarify 2 things : As we have moved the discoveries we made last year into projects we have renamed them after trees ( as we normally do with all our all our fields). So the Savannah discovery is now known as Matapal and the Macademia discovery as Cypre. • Cassia C will be located 57 kilometres off the south-east coast of Trinidad. The platform will have a throughput capacity of 1.2 billion standard cubic feet of gas a day (bscfd). • The jacket will be fabricated in La Brea, Trinidad and the topside structure in Altamira, Mexico. First gas from the facility is expected in 3Q 2021. • The Matapal project (formerly Savannah) will develop the gas resources discovered by BPTT in 2017 with the Savannah exploration well. The project will be a three-well subsea tie-back to the existing Juniper platform. Proposed first gas from Matapal is expected in 2022. The Cypre development – based on the successful Macadamia exploration well – is moving through the project sanction process and is currently in the optimize stage evaluating a concept for development.We will share more on tshi project next year. We are currently executing a significant project in Galeota – The Galeota Expansion Project – know as GEP Our terminal facility receives all of the water and condensate from our offshore fields and process these liquids into market quality crude/condensate and environmentally compliant produced water. Activity at the project site began in 4Q 2016. The GEP project comprises a new Produced Water Treatment plant, new Condensate Processing facilities, a new Control Room, and a new Compressor and Flare system. We see this project as a vital part of our long-term sustainability and will provide significant benefits for the company and country. Completion of the project is scheduled for 4Q 2019 • Facilities progress to date - 73% - Concrete installation - 96% - Structural Steel installation - 80% - Piping installation - 72% Exploration: Slide 8: Exploration And, now for exploration. As you remember, our infrastructure-led exploration programme (ILX) started off in 2017 with good success The remaining wells in our proposed drill out schedule are the Ginger, Jasmine/Frangipani ( new) and Coconut Deep wells in the 2019+ time frame. We have added another well to fully evaluate the Jasmine play/structure. This well is called Frangipani. We are actively carrying out subsurface and well planning for the exploration program and look forward to the showing results from these at a future date. . We also continue to work with our partners in two further non-operated areas of exploration where wells will be drilled in 2019 : results from the Phase 2 OBN programme in the northern area of our shelf acreage with EOG and the deepwater Barbados Trough area with BHP. Slide 9: Conclusion Conclusion In conclusion, my intention this afternoon was to give an “energy outlook” of our current and future plans. Although I am sure that many of you would have been interested in our activity set for 2019, it was essential to place our activities within the context of BP Trinidad and Tobago’s Area development Plan and how we use technology to help modernize and transform the business. That plan as I have discussed is robust and is the result of focused, cross-functional work that has integrated inputs from many disciplines and functions across our business. Importantly, we have delivered key milestones on the plan and I’ve outlined today the activities and approaches that will enable us to continue delivering. As I noted, in 2019 we will have first gas from Angelin and we will continue our exploration efforts. Hopefully we will have good news on these in our 2020 presentation at this conference. Further out in time, we’re beginning to look at what we will be doing in Trinidad to advance the transition to a lower carbon future. As our CEO Bob Dudley has said: “To deliver significantly lower emissions, every type of energy needs to be cleaner and better. A race to renewables will not be enough. That’s why we are making bold changes across our entire business.” BP is approaching the lower carbon transition this through the framework of reduce, improve and create opportunities. In T&T we are currently reviewing options for activities that will reduce the carbon footprint of our business. These include changes to operations activities, modifications to existing infrastructure and options for design of new facilities. If you haven’t already, please visit our booth which highlights how BPTT is utilizing technology to deliver on our plan. You would have found the technology theme very significant in our messages yesterday by Claire and Ahmed . We clearly believe that technology is an essential enabler for the future development of all our basins in Trinidad. To further emphasize what the Honourable Prime Minister said yesterday, there is an opportunity here for more collaboration on technology issues that are common for all of us– between oil/gas producers and service providers, organizations like SPE and GSTT, and the Ministry of Energy and Energy industries – all while respecting and preserving any proprietary data and technology of individual companies. An example of good common collaboration was last year’s workshop organized by the GSTT on thin bedded reservoirs/pay : we all shared cores and our current and future challenges and work – a common issue that is very important for us all to further unlock smaller pools of gas in Trinidad and Tobago – it was a start that should continue with urgency. These are quick wins for all of us including the country and maybe we can use the SPE and GSTT to lead through addressing some of these challenges. I think this is a hugely exciting time for all of us – especially the new generations of industry people. We need to keep pace with transformations occurring globally as we quickly move through the “ongoing digital revolution”. The key sits with our people and the new generations need to keep pushing and driving the change required, again quite exciting and challenging. Slide 10. Thank you very much.