Operational Safety and Integrity Management Services (OSIMS™)

1. Operational Safety and Integrity Management Services (OSIMS™)

2. Current landscape Key Challenges Operational Excellence The OSIMS™ Model Introduction

3. Current Landscape Smoke pours from a fire at the Chevron Richmond Refinery, seen behind Alcatraz in San Francisco, on August 6. Chemical safety Board officials say their response to that incident delayed work on reports about other accidents.

4. Current Landscape 2010 Gulf of Mexico Deepwater Horizon disaster where 11 rig workers died and 17 were injured. Millions of gallons of oil have spilled into the Gulf since the April 20 explosion on the drilling platform with devastating environmental impact.

5. Current landscape

6. Overall risk profile of the O&G sector is on an upward trajectory. At the same time, the industry is under tremendous pressure to reduce risk Growing trend for contractors to push risk back onto operators Rising expectations of regulators, shareholders and communities demanding more from O&G companies No template for value chain participation that fits every company; each must determine its risk profile and create alignment between that profile and the company’s participation model Key Challenges

7. An industry under pressure to increasingly focus on improving its operations. Operational excellence creates value through systematic and repeatable actions that are clear and addressable for everyone in the company. The opportunity – Operational Excellence Examples of leading companies already embracing the concept: • ExxonMobil: Operations Integrity Management System (OIMS) • Chevron: Operational Excellence Management System (OEMS)

8. Operational Excellence and OSIMS™ Operational Safety and Integrity Management Services (OSIMS™) Safety and Integrity Elements Contributing to OE

9. . The Goal–Operational Excellence Operational Excellence • Operational Excellence allows oil and gas leaders to confidently say and prove that they are running their assets safely, reliably, sustainably and cost effectively. That requires success in four areas: • World-class HSE performance • Comprehensive Asset Integrity program • Best-in-class standards and systems, • A high-performance culture • It is our commitment that in addressing the safety, health and asset integrity aspects of Operational Excellence that OSIMS™ provides with its systematic approach, proven methodologies and undeniable global capabilities, our client’s business will reach the highest level of Operational Excellence (OE).

10. The 4 pillars of OSIMS™ Operational Excellence Operations Excellence Other Elements Other Elements Community Awareness & Emergency Management HSE Risk Management System Asset Integrity & Operations Assurance Safety Advisory & Safety Process Improvement Community Awareness & Emergency Management HSE Risk Management Systems Asset Integrity & Operations Assurance Safety Advisory & Safety Process Improvement Project Management and Implementation Training and Knowledge transfer • Community Awareness and Emergency Management • HSE Risk Management Systems • Asset Integrity & Operations Assurance • Safety Advisory & Process Improvement Management of Change

11. Pillar 1 Community Awareness and Emergency Management Emergency planning and preparedness are essential to ensure that, in the event of an incident, all necessary actions are taken for the protection of the public, the environment and company personnel and assets. We provide these services: • Emergency Response Plan (ERP) • Blowout Contingency Plan (BCP) • Spill Plans • Dispersion Modeling Community Awareness & Emergency Management HSE Risk Management Systems Asset Integrity & Operations Assurance Safety Advisory & Safety Process Improvement

12. Example: Case history - Dispersion Modeling Key Client Benefits: • A strong understanding of the dispersion characteristics of H2S and SO2 and the impact it could have on the atmosphere and neighboring communities. • Tolerability criteria for H2S and CO2 were established in accordance to leading governing bodies. • Clients can make more informed decisions regarding associated risk based on the results of the dispersion model. Results: A clear understanding of the dispersion characteristics of the released gas and its potential impact. Challenge: Determine the dispersion characteristics and tolerability criteria for gas released from a well control event. Solution: Developed a dispersion model simulating effects under ‘worst case’ atmospheric conditions.

13. Example: Case History - ERP Challenge: Maintain and monitor EPZ areas while managing sensitive public relations with the affected communities. Solution: Helped develop ERP/EPZ plan and deployed personnel to monitor EPZ areas and communicate with public about impending drilling activity and safety plan. Key Client Benefits: • Effectively monitored and ensured safety of residents within the EPZ • Handled crucial public relations sensitively yet professionally by communicating regularly and updating the affected communities about impending drilling operations Results: United Safety managed both the integrity of the EPZ while managing sensitive public relations for the producer, all with superlative feedback.

14. Pillar 2 HSE Risk Management System Comprehensive risk assessments can reduce safety, health environmental and security risks and mitigate the consequences of incidents by providing essential information for decision-making and the foundation of an established comprehensive safety program. We provide: • Bowtie Analysis • HSE Case • HAZOP • HAZID Community Awareness & Emergency Management HSE Risk Management Systems Asset Integrity & Operations Assurance Safety Advisory & Safety Process Improvement

15. Example: Case History - HAZID Challenge: Conduct a HAZID/Risk Analysis of Sand Master equipment to ensure safe operating procedures are established. Solution: A clear yet comprehensive process that covered all aspects of the HAZID/ Risk Analysis. Key Client Benefits: • Clear, comprehensive process that set a benchmark and protocol for future equipment audits • The HAZID delivered clear actionable improvement points to limit & mitigate hazards • The Risk Assessment ensured all governing standards were met Results: Set a benchmark and methodology for future analyses, engineering designs and equipment audits.

16. Example: Case History – Root Cause Analysis Key Client Benefits: • A clear understanding of the root cause of the incident • Appropriate corrective measures were recommended to eliminate and mitigate future incidents. • Independent, objective investigation that provided unbiased solutions that improved the HSE system. • Established recommended practices to meet and exceed regulatory guidelines and insurance recommendations Result: Qualified, objective investigation which contributed to improved HSE system. Challenge: Investigate and identify root causes of well control incident. Solution: An in-depth root cause analysis that identified gaps and suggested appropriate preventive actions.

17. Pillar 3 Asset Integrity & Operations Assurance Operation of facilities within established parameters and according to regulations is essential. Doing so requires effective procedures, structured inspection and maintenance programs, reliable operations, integrity-critical equipment and qualified personnel who consistently execute these procedures and practices. We provide: • Asset Integrity Programs • Wellhead Inspections • Measuring & Reviewing Performance • Development of Best Practices Community Awareness & Emergency Management HSE Risk Management Systems Asset Integrity & Operations Assurance Safety Advisory & Safety Process Improvement

18. Example: Case History – Establish Well integrity Program Challenge: Insure proper well head integrity program in place in mature fields with potential social and environmental impact Solution: United Safety developed well integrity program that included numerical risk score for wells based off mechanical integrity, well pressure and potential consequence based off worst case. Established Asset data base of over 3000 wells. Key Client Benefits: • Standardized method for evaluating mechanical integrity • Consistent risk assessment methodology Easy access to well history data • Prioritize problem wells • Established well integrity program to include proven risk ranking. Results: Well head data base to include dashboard on relevant well conditions and defined process to manage and maintain wells

19. Pillar 4 Safety Advisory & Safety Process Improvement Safety Advisory and Process Improvement is the way to deal with the most serious and challenging business risks to achieve operational excellence. It provides a structured and systematic managing processes and systems, high standards of performance, tracking results of key metrics and audit will help sustain operational Excellence We provide: • Assessments and benchmarking • Corporate PSM strategy development • Asset PSM improvement plan • Organizational design and support • PSM design • Facilitation of PSM standards, procedures and processes Community Awareness & Emergency Management HSE Risk Management Systems Asset Integrity & Operations Assurance Safety Advisory & Safety Process Improvement

20. Example: Case History – Safe Work Practice Development Challenge: Develop 16 Safe Work Practices and create a corporate portal site for Solution: Develop SWP tools utilizing client’s existing practices and NAO standards as resource and share information with client through a Sharepoint portal. Key Client Benefits: • Developed a comprehensive dossier for 16 pre-selected SWPs that greatly increased productivity and safety when implemented. • Created a Sharepoint portal to share all information between • client and United Safety. • Provided a project lessons learned document Results: Better understanding and established new base for SWP document sharing and project progress communication.

21. The Foundation The model consists of three enablers that form the basis and support structure for the entire system. They are: Project Management and Implementation Training and Knowledge transfer Management of Change

22. Foundation 1 – Project Management and Implementation Project management and Implementation • Sound project management techniques play a key role in the success of OSIMS™. • Planned operations that enhance safety and integrity should be implemented along with other normal business plan activities while best practices and processes need to be developed, adopted and shared. • We provide: • Overall project management services • Specific implementation oversight and coordination

23. Foundation 2 - Training Training and Knowledge transfer • Operational Safety and Integrity can only be achieved when personnel believe and behave in accordance with the system. • This requires meticulous screening, selection and placement of the right candidates in the right roles while constantly ensuring that they undergo regular assessments and proper training to perform and meet expected job requirements. • We Provide: • Organizational development • Expert skills augmentation • Delivery execution partnering (pairing United Safety resources with your staff to deliver results) • Operating competency tools • Learning and development programs

24. Foundation 3 – Management of Change Management of Change • Changes in operations, procedures, facilities or organizations must be evaluated and managed to ensure that Operational Integrity is not compromised at any time and that risks and gaps arising from such changes are effectively managed. • We provide: • Communications Strategy and implementation • Change management program and assessments

25. Continuous Cycle of Improvement OSIMS™ is set within the dynamic ‘Plan, Do, Check, Act’ framework. This ensures that all actions are well planned, properly implemented, constantly monitored, and progressively improved

26. Translating the OSIMS™ model into action • Every solution is tailor made to the client’s precise requirements. • A Needs Assessment is carried out to determine key challenges, identify gaps and clarify scope. • Next, the focus is on high-quality, on-time delivery. • Our Service Excellence vision ensures customers of reliable personnel and equipment that will always get the job done well. • Our Service Assurance philosophy ensures that your project and assets are in very safe hands.

27. Thank you