SUB SEA SYSTEMS INTERNATIONAL NIGERIA LIMITED CLOCKSPRING

1. SUB SEA SYSTEMS INTERNATIONAL • NIGERIA LIMITED • CLOCKSPRING

2. AGENDA Clock Spring® • Introduction • Progress To-Date • Cost Comparison: Clock Spring vs Conventional Repairs • Highlights of Selected Riser Repairs • Value Added to Operation • NNPC and its JV partners completed to date in Nigeria waters

3. SUB SEA SYSTEMS INTERNATIONAL NIGERIA LIMITED • Nigerian Company • Pipe and Pipeline Repairs • Sole Agent for Clock Spring® in Nigeria • Subject matter experts for composite • repair technology

4. CLOCK SPRING ® Clock Spring is a composite repair system used to reinforce corrosion or other blunt defects in both high and low pressure pipelines, restoring the integrity of the pipe, enabling the pipe to return to full service.

5. Highlights of Progress To-Date Clock Spring® • Over 84 Clock Spring® riser & topsides piping repairs completed during 2006 to 2009. • Over 70,000 man hours completed without any recordable injuries. • Several major emergency repair jobs completed using Clock Spring®: • Meji PP topsides piping • Okan Valve Platform • IBP 26” riser repair

6. Clock Spring® Cost Savings Realized Using Clock Spring® vs. Conventional Riser Repair Methods

7. Value Added to Operation Clock Spring® • Conventional Welded Repairs • vs. Clock Spring® Repairs: • SEWOP with crew working 25 days can typically repair 2 risers by conventional means (i.e., welded repairs). Cost for this work ~ $500,000. • For the same cost, a four man Clock Spring® crew can repair eighteen (18) 6” risers (i.e., conventional welded riser repairs are 9 times more expensive than equivalent Clock Spring® riser repairs). Typical SEWOP used for conventional welded riser repairs

8. Clock Spring® Highlights of Riser Repairs

9. 26” Riser Repair Clock Spring® • Riser handles production of (~ 70,000 BOPD). • Riser condition before repair (riser was previously coated and wrapped with fabric for corrosion protection, but was not successful in arresting further corrosion).

10. 26” Riser Repair Clock Spring® • During Repair: • Corrosion removed from riser revealing heavy pitting of riser pipe.

11. 26” Riser Repair Clock Spring® • During Repair: • Clock Spring® Repair Kits are applied to riser.

12. 26” Riser Repair Clock Spring® • Results of Completed Project: • Zero Recordable Incidents • Permanent Repair • 3 week repair program • In Service repair • $84,000 labor Cost • Production not impacted • (~ 70,000 BOPD)

13. BOP 26” Departing Riser to SBM Clock Spring® • Condition Before Repair: • Riser handles all export production at BOP • (~ 300,000 BOPD average production). • Temporary repair clamp installed to contain prior leak on riser.

14. BOP 26” Departing Riser to SBM-3 Clock Spring® • During Repair: • A welded repair sleeve placed over the leak point.

15. BOP 26” Departing Riser to SBM-3 Clock Spring® • During Repair: • Clock Spring® applied to remainder of riser.

16. BOP 26” Departing Riser to SBM-3 Clock Spring® • Results of Completed Project: • Zero Recordable Incidents • Permanent Repair • 4 week Program • $120,000 labor cost • Tanker Loading not impacted during repairs

17. Valve Platform Emergency Repairs Clock Spring® Platform Prior to 5 July 2009 Militant Attack

18. Valve Platform Emergency Repairs Clock Spring® Platform After 5 July 2009 Militant Attack

19. Valve Platform Emergency Repairs Clock Spring® Platform After 5 July 2009 Militant Attack

20. Valve Platform Emergency Repairs Clock Spring® Platform During 6-week Repair Period

21. Valve Platform Emergency Repairs Clock Spring® Platform Nearing Completion of 6-week Repair Period

22. Valve Platform Emergency Repairs Clock Spring® Platform After Emergency Repairs Completed

23. Valve Platform Emergency Repairs Clock Spring®

24. PP Emergency Piping Repairs Clock Spring® Leak in PP 10” Oil Outlet to Chemelectric – 27 Nov 2008

25. PP Emergency Piping Repairs Clock Spring® Wet Wrap Repairs In Progress Clock Spring®

26. PP Emergency Piping Repairs Clock Spring® Completed Clock Spring® Wet Wrap Repairs

27. 10” Departing Jkt #2 to PP Clock Spring® • Condition Before Repair: • Monopod Well Jacket. • Heavy corrosion above Splashtron riser coating.

28. 10” Departing Jkt #2 to PP Clock Spring® • During Repair: • Heavy corrosion removed. • Significant riser wall loss.

29. 10” Departing Jkt #2 to PP Clock Spring® • During Repair: • Clock Spring® repair kits applied to riser.

30. 10” Departing Jkt #2 to PP Clock Spring® • Results of Completed Project: • Zero Recordable Incidents • Permanent repair • 9 day repair program • In service repair • $36,000 labor cost • Production not impacted (8,000 BOPD)

31. 10” Incoming from PP Clock Spring® • Condition Before Repair: • Severe Corrosion. • Corroded flange bolts and nuts. • Corroded riser clamp.

32. 10” Incoming from M PP Clock Spring® • During Repair: • Riser cleaned down to bare metal in preparation for application of Clock Spring® repair kits.

33. 10” Incoming from PP Clock Spring® • During Repair: • New Teflon-coated blots installed.

34. 10” Incoming from PP Clock Spring® • During Repair: • New riser clamp installed on jacket after application of Clock Spring® repair kits.

35. 10” Incoming from PP Clock Spring® • During Repair: • Clock Spring® repair in progress.

36. 10” Incoming from PP Clock Spring® • Results of Completed Project: • Zero Recordable Incident • 12 day program • In service repair • $48,000 labor cost • Production not impacted (8,000 BOPD)

37. Riser Integrity Documentation Clock Spring® Detailed Inspections & Close out reports generated for each repair.

38. NNPC and its JV partners completed to date in Nigerian waters • SSSI has completed over 84 topsides piping and riser repairs during 2006 to 2009, safeguarding a significant portion of NNPC and it’s JV partners daily production in Nigerian waters (i.e., ~ 300,000 BOPD). One major riser repair project ( 1 PP 26” riser repair) was carried out while the riser remained “in service” at 70,000 BOPD, with zero impact on production. • Several emergency topsides piping and riser repairs completed during the previous 3.5 years that SSSI has been installing for NNPC and its JV partners • In addition to the main oil risers that make-up oil shipping networks, One of NNPC and it’s JV partners has over 1,100 well and gas lift flowline risers in its Offshore operations, with approx. 50% of them reaching the point of potential failure. Clock Spring® offers advantages in both the cost and scheduling of these riser repairs. Clock Spring®

39. NNPC and its JV partners completed to date in Nigerian waters Clock Spring® • SSSI has compiled an excellent safety track record during the previous 3.5 years of Clock Spring® repair work they’ve done in Escravos; at the end of 2009, SSSI has worked over 70,000 manhours with zero recordable incidents • Clock Spring® riser repairs offer a significant cost advantage compared to conventional welded riser repair methods. Conventional welded riser repairs are typically 9 times more expensive than equivalent Clock Spring® repairs. • Clock Spring® riser repairs can typically be done while the riser remains “in service,” minimizing the lost production that is associated with performing conventional welded riser repairs • SSSI is the sole agent for Clock Spring® products and installation services in Nigeria and the recognized expert in its application

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