An interview with Arild Selvig, Director Sales and Marketing of the FMC Kongsberg Subsea.

AT: Where was FMC Kongsberg Subsea of Norway established? Please, give broad information on its multi-rami fled activities lo our readers A.S.iPMC Kongsberg Subsea AS – a part of FMC Ttdinologfa (PMC)

– began IU activities back in 1974, then as a division within the Norwegian company Kongsberg Vapenfabrikk AS. Now, we are part of the Subsea Systems division of Now York Stock Exchange-listed FMC Technologies (ticker symbol PTT). Today, PMC Kongsberg Subsea AS employs mom than 3000 people in Norway. FMC Is liter world leader in Subsea Systems, and our activities encompasses a wide range of equipment and technologies that are required to explore, drill and develop offshore oil and gas fields.

We have a strong global presence in all of the world’s major basins. Our activities are supported through four main hubs – In Kongsberg, Norway, Houston, USA, Rio de Janeiro, Brazil and Singapore. The scale of our global operations enables us to leverage our global manufacturing and supply chains in order to control coat and maintain price competitive- ness. We have a market leadership position in cutting edge subsea production systems, processing systems, advanced Intervention and aftermarket services. Our aim Is to always add value to our customers throughout the total life of the field.

Our subsea systems business continues to capitalize on the growing demand for deep-water oil and gas production with our subsea separation, boosting and processing systems. We provide the technology to Increase hydrocarbon recovery for mature assets and develop new projects dial may otherwise be considered uneconomical or challenging in access – the arctic being one example.

AT: The Caspian Sea is rich mead ad md natural gas reserves and therefore, many western companies are interested in it. Today, there is a great demand for high technologies to explore and produce underwater energy resources. FMC Kongsberg Subsea is considered one of the leading companies in the world in this field. What bad kind of work is being undertaken in order the level of the services which it provides to be competitive?

FMC Is the leading company with in Subsea Systems, holding a majority market sham for such systems worldwide. Throughout our history we have set a number of deep water records for subsea oil and gas production and developed a number of breakthrough technologies including subsea separation, light well intervention and through tithing rotary drilling. This technology leadership position allows us to maintain the market leadership position.

Our strong focus on safety, quality and reliability has given us an industry leading safety record and acknowledged by our customers and peers. Our excellent customer relationships have led to a number of frame agreements and partnerships with leading oil and gas companies around the world. Such long-term partnership allows us to deeply understand customer needs, be fit for purpose and lower the cost of ownership of these relationships.

AT: On what projects does FMC Kongsberg Subsea plan to work in the near future and are there any specific talks with the government authorities on this purpose

FMC have been tracking opportunities in the Caspian for many years. Until now. all of the offshore hydro carbon developments have used production platforms due to the relatively shallow water depths.

Subsea developments start to become advantageous at water depths greater than about 200m which restricts the locations in the Caspian where we expect equipment on the seabed to be deployed. The Shah Deniz 2 development is one such project where water depths will extend to 550m. Other deeper water opportunities currently being explored are the Absheron Nakhchivan Shafag and Asiman prospects all in the Azerbaijan section of the Caspian. If significant amounts of hydrocarbons are confirmed at any of these prospects it will likely be several years before any of them become production developments due to the time required to perform concept and front end engineering studies and then manufacture and install all the equipment and infrastructure. FMC Technologies have had some preliminary dialogue with relevant departments within SOCAR (but no agreements are in place).

AT: An agreement on mutual cooperation on Sachalin-3 project was signed between Russia’s Gasprom and your Company last year. Please, give our readers some information on this project.

In July last year, FMC signed a contract with Gazprom Dobycha Shelf LLC for the manufacture and supply of subsea production equipment to support the Kirinskoye field. The award had a value of approximately $190 million in revenue to FMC. Kirinskoye is a subsea-to-beach gas and condensate field off Russia’s Pacific coast. It is located in water depths of approximately 90 meters within the Kirinsky Block of the Sakhalin 111 area, 28 km off the island of Sakhalin. FMC a scope of supply includes the manufacture of subsea production trees, a manifold, wellheads, multiphase meters, choke modules and subsea control modules. The equipment will be manufactured and assembled at FMCs facilities in Dunfermline, Scotland and Kongsberg, Norway and at FMCs Multi Phase Meters AS (MPM) operation in Stavanger. Norway. The majority the equipment is being delivered and installed from Norway and Scotland between 2011 and 2013.

AT: The “Phase 2” project of the ShahDeniz reserve falls within the interest spot of several western countries. Work to be completed within this project is estimated to be around USD 20 billion. 7b our knowledge. a sophisticated engineering technological systems mill be used which has not been applied in the Caspian Sea till now. Does FMC Kongsberg Subsea intend to work in these projects?

FMC have been supporting BP and its partners on the front end engineering work of the Shah Deniz project. Such a project, with its technical challenges, is typical of the subsea activities FMC Technologies are involved in around the world. Shah Deniz is currently expected to be the first subsea production system in the Caspian Sea and FMC hope to be able to continue our involvement in this project as it evolves.

AT: Thank you for the interview Mr. Selvig.