Oil & Gas Infrastructure Security

1. 2017 SUMMARY PRESENTATION Oil & Gas Infrastructure Security

2. Oil & GasInfrastructure Attacks

3. Mexico : Veracruz State – IED Attack – Sept 2007. Cost Mexican economy over US$200 million Saudi Arabia : Abqaiq Oil Refinery, 300km west of Riyadh - small arms attack – February 2006. Oil prices immediately jumped by over $2 a Barrel. Yemen : Marib Province - SVBIED attacks on two oil infrastructure targets – Sept 2006 Attacks bore a close resemblance to the Abqaiq Saudi Arabia attacks. Iraq : Al-Faw Peninsula, Basra Province - suicide small-boat attack – Oct 2002. Pushed crude oil prices above $40 a barrel. Yemen : Southeastern Hadramaut coast - suicide small-boat attack – Oct 2002. Insurers underwriting traffic in the region Immediately trebled their rates. Columbia: Rebels Pipeline some 950 times since 1986. $2.5 billion in lost revenues & Killed/injured over a 100 people. Scotia World Experience Oil & Gas Infrastructure Attacks

4. Oil & Gas Key Threats / Risks

5. Global terrorism –Al Queda, Jameza Islam Activists / pressure groups Single issue zealots / disgruntled employees Nuclear ambitions and political tension Environmental effects Potential Threats • Cyber attacks (e.g. on the process controls of oil application systems) • Disruptions to the supply chain • Theft / hijacking • Sabotage • Maritime piracy

6. Specific Challenges – Pipeline Security • Vulnerable to vandalism and terrorist attack • Computer control systems used to monitor and manage pipelines may be “cyber-attacked” • Pipelines may be indirectly disrupted by other types of terror strikes • Pipelines supply fuel for all types of services and applications • Disruption of a pipeline network poses additional “downstream” risks and consequences

7. Oil & Gas Threat & Risk Assessment

8. Throughout the Risk Assessment process, there are two further critical elements of the risk management process: Communication and consultation with all relevant internal stakeholders to ensure the support of senior management and participation of relevant personnel Monitor and review the process to ensure assessments and recommendations remain relevant in light of any changes in the context or risks Olive Group Risk Management Methodology Source: ASNZ 4360 ISO 27001

9. Risk Analysis • Likelihood A function of the probability of a defined threat being attracted to, and then exploiting security vulnerabilities of an asset. • Consequence is a function of the relationship between the criticality of the asset and the impacts should a the event occur. Impacts are both tangible and intangible and include but are not limited to impacts on: • People • Infrastructure • Function/ Operations • Reputation • Environment Risk Analysis

10. Risk Assessment to ensure any security recommendations are fit for purpose and the associated mitigation measures reduce the real risks and represent cost effective and future proof solutions and are not merely "technology fixes". Security Gap Analysis against a current risk assessment to either: Identify any gaps against an existing security plan based on current and perceived risks. Identify any gaps in the existing security measures based on current and perceived risks – the difference being the presence or lack of a "current" master security plan for the O&G facilities. Security Recommendations: Close the identified gaps in the existing security plan with outline mitigation measures, that will lead to detailed design if required; or Form the basis of a facility Master Security Plan to ensure all security risks are reduced to as low as reasonably possible level - based on the NNPC risk appetite and risk framework; which again will lead to detail design of these measures if required. Olive Group Risk Assessment Capabilities

11. Oil & Gas Integrated Security Solution

12. Comprehensive solution addressing both commercial interests and national security needs Commercially viable solution based on industry and government financing Physical security of all pipelines from the point of origin to final destination Able to integrate seamlessly with existing pipeline security measures More complete knowledge of pipeline assets to assess risk, provide actionable intelligence and forensic capability Provides real-time information to the authorized people who can act on it Requirements of Security Solution

13. Achieving Long Term Security Objective and Vision • Any security solution must be achievable and sustainable; it will involve: • A review of the existing security situation; including: • An update of the threat and risks assessment, • Gap analysis of existing and recommended security measures. • Implementation of agreed security mitigation measures; including: • Physical, Technical, and Procedural Measures. • Regular review and maintenance of the security plans. Olive Group can assist with all these processes. Any security plan should be based upon a documented and approved security policy; which should include a long term security vision statement. Challenges to achieving the long term objectives should be reviewed and confirmed on a regular basis – i.e. during an annual review of the Security Threat and Risk Assessment. Olive Group can assist with this process.

14. Long Term Security Vision Need to identify short to long term goals and Key Performance Indicators to achieving them as part of a strategic plan. Olive Group can help develop security goals and objectives in conjunction with NNPC Management to support the Security Management Plan Planning time frames could be: 0 - 2 years, 5 – 10 years, 2 – 5 years, 10+ years.

15. Physical Protection Land and Underwater fences Electrified barriers Automatic gates, doors and barriers Access Control Biometrics – vascular scanning Sensors and smart card technology Intrusion Detection CCTV Surveillance, VMD, Analytics Microwave movement detectors Active/Passive infrared detection units Integrated SCADA based detection system Electrostatic field disturbance sensors Seismic/Point vibration sensors Microphonic cable fence disturbance systems Sonar and radar People and Asset Monitoring RFID, Sensors Communications Wireless, Fibre, Cable Convergent Technology

16. Oil & Gas Security Technology

17. DAY CONOPS Day/Night Camera C2 Ground Surveillance Vehicle 15KM Keep Out Zone 15KM Ground Surveillance Radar 500M Red Alert Zone Self-Powered Surveillance Tower

18. Airborne Surveillance Options All Assets Can Be Patrolled Irrespective of Terrain

19. Vulnerable Platforms at Sea Strategic Threats Unmonitored Workers/pipes Vulnerable Towers

20. Local Accidental Hazards Land – Digging or construction work Maritime – Ships may founder onto undersea cables

21. Police MD 902 Airborne Deterrent in Use Elsewhere Helicopter Gunships

22. Patrol/Surveillance Types • VISUAL • THERMAL • DAYLIGHT VIDEO

23. Visual Observation Pilot/Co Pilot Real Time Observation

24. Thermal ImageryIncluding dense forest areas and overgrown waterways

25. Daylight VideoNight Time Surveillance is possible if required

26. MARITIME/AIR ASSET INTEGRATIONOnshore and Offshore Assets can be Covered

27. Surveillance Operations - India

28. Insulator Washing - India

29. Surveillance Operations - Africa

30. Technology Made Simple Unmanned Aerial Vehicles The Unmanned Helicopter Shared information/Imagery

31. Airborne Surveillance: The Immediate Future UAV APPLICATIONS

32. The Challenge: Detect and identifying all threats to buried pipes Pipeline protection solution must have: • High Probability-of-Detection • All threats must be detected • Low Nuisance-Alarm-Rate • System must not alarm on detected events which aren’t a threat

33. The Requirement: Distributed and persistent monitoring along the entire length of a pipeline Continuous sensor, close to pipeline Detect potential threats at sufficient lateral offset for action to be taken Independent information from every location • No blurring of information • Multiple noise sources should not reduce sensitivity at other locations • Sufficient range to span existing facilities

34. The Solution: Fibre-Optic Distribute Acoustic Sensing Existing fibre cable (installed for control and telemetry) can be used as a microphonic cable • Sound can be ‘heard’ along the entire fibre length • No additional infrastructure required • The sense fibre is its own communications medium • No power distribution requirements • Very high sensitivity achievable • Additional acoustic processing provides a unique Detection, Classification and Localisation (DCL) capability • Threats can be identified from regular activity

35. The OptaSense Solution

36. OptaSense converts standard optical fibre cable into a uniquely capable distributed acoustic detection system An Interrogator Unit generates a special signal in a standard optical fibre – this signal is influenced by sound or ground borne vibrations and the IU “hears” these vibrations. The theory OptaSense is typically deployed on cables up to 40km* long and is able to DETECT a disturbance to within 10m along the length of the cable – effectively turning a standard telecoms fibre into an individual microphone every 10m for its full 40km length What can it do? Once programmed with the Acoustic FingerPrint™ data base, it can CLASSIFY and LOCATE the likely cause of the sound / vibrations and automatically send an alarm of a threat How is this useful? The OptaSense units are connected to one end of an existing fibre making it very cost effective to retrofit to existing linear asset environments. Information is displayed on a friendly graphical interface which also incorporates a “listen-in” mode to enable the user to actually hear what is going on at a particular location How is it used?

37. OptaSense is a cost effective solution to linear asset security and monitoring issues

38. OptaSense can use the optical fibre within an EXISTING cable deployed adjacent to the pipeline In a typical situation OptaSense will use an optical fibre from within an existing telecoms or SCADA fibre-optic standard cable buried directly, or deployed in a duct adjacent to the pipeline

39. At the operator workstations all the information is easily accessible under a windows environment

40. Alert information is shown on a simple to operate display

41. Also available are tools to visualise the activity along the fibre …

42. … and some specialist tools to analyse the signals detected

43. OptaSense provides a sophisticated automatic processing and analysis capability An array of independent simultaneously sampled acoustic sensors enable advanced processing techniques to be applied High sensitivity and Signal to Noise Ratio • Provides a high probability of detection Signature categorization (finger printing) • Minimises nuisance alarms Data logging of all alarm events • Forensic analysis of activity leading up to an event Ability to correlate alarm co-ordinates with database information • Intelligent responses based on geographic information such as KP markers or Land ID numbers

44. System implementation

45. Schematic of a typical OptaSense installation along a long pipeline

46. Alert information can also be made available on handheld devices Alert information can be transmitted to handheld devices over wireless infrastructure Security personnel can automatically receive the following information: • Location of detected alert • Route from current position to location of the detected alert • Audio stream of the activity at the location of the detected event

47. Using a fibre-optic cable deployed alongside a pipeline, with OptaSense it is also possible to: Detect high pressure pipeline leaks Monitor, in real time, the progress of a PIG though the pipeline Provide Perimeter Intruder Detection (PID) at in-line facilities Provide remote condition monitoring of rotating machinery at in-line facilities In addition to detecting Third party Interference we are exploring additional functionality of OptaSense

48. Acoustic sensitivity of the OptaSense solution enables the immediate identification of leaks Lab test of leak detection capability In lab tests OptaSense has demonstrated the ability to instantly detect a 10Bar leaking through a 1mm nozzle This technique can be used to compliment existing Distributed Temperature Sensing (DTS) leak detection techniques

49. Real time monitoring of PIG position By monitoring the fibre adjacent to the pipe, OptaSense is able to provide real time monitoring of the PIGs progress through a pipe. This shows the track of a cleaning PIG through a HP buried gas pipeline. This was detected on a ducted telecoms cable laying adjacent to the pipe

50. Frequency response <1Hz to >1kHz Performs signature (finger print) recognition Requires only one fibre can use existing ‘dark’ fibre Can also be used for: leak detection; condition monitoring; PIG tracking Range – Single System: 40km range Positional Accuracy: 10m resolution Independent data from all 4,000 locations simultaneously Each independently configurable Extremely sensitive: High Signal to Noise Ratio (SNR) Detects multiple disturbances, with… No degradation of sensitivity No degradation of locate accuracy Real-time audio output: listen to threats Fibre Optic Solution Summary