National Offshore Safety Advisory Committee Meeting

1. National Offshore Safety AdvisoryCommittee Meeting Towing OF Mobile Offshore drilling unitsA Marine Surveyor’s Perspective While Representing Underwriters’ Interests April 18, 2013S. Douglas Devoy Executive Vice President / Director

2. Marine Warranty Surveyor Role for Tow Approval Represent Underwriters/Comply with Marine Warranty in Policy Review Rig Move / Towage Plan/ Make recommendations to reduce risk Review Route / Time of Year/ Met Ocean Conditions Review Inspect Towage Vessels / Make recommendations Review Contingency Plans Issue Towage Recommendations /Certificate

3. Drilling Contractor Rig Move Responsibility Determine that rig is suitable to be placed under wet towage on this particular route, time of year and weather to be expected Verify that rig will be operating in compliance with approved Rig’s Operations Manual / Contractors Rig Move Procedures Determination of Towage Type Field Move Extended Field Move Ocean Towage

4. Classes of Mobile Offshore Drilling Units Drill Ships Semi-Submersible Drilling Units Jack-Up Drilling Units TYPES OF MODU’S

5. Drillship Drill ship is self-propelled with full marine crew Normally not towed or subject to any MWS approval Types OF MODU’S

6. Semi-Submersible Drilling Unit Either self-propelled, propulsion assist or non self-propelled Subject to Marine Warranty in policy Subject to Marine Warranty Surveyor recommendations and approval Extremely robust MODU with ballast down capability in event of heavy weather TYPES OF MODU’S

7. Jack-Up Drilling Unit Independent Leg Jack-Up Drilling Unit Subject to Marine Warranty in policy Subject to Marine Warranty Surveyor recommendations and approval TYPES OF MODU’S

8. Approval ProcessforExtended Field Moves /Specialized Towages

9. For this presentation we will concentrate on the Risk of Wet Towage of Independent Leg Jack-Up Drilling Unit, specifically a Marathon Letourneau 116-C from Yangon, Myanmar to Singapore in the month of March. ANALYSIS OF A WET TOWAGE APPROVAL

10. Physical Damage Risks During Wet Tow Weather Tug Failure Rig Impact from Tugs Tow Line Failure / Rigging Poor Condition Loss of Stability Flooding and Capsize ANALYSIS OF A WET TOWAGE APPROVAL

11. Wet Towage/ Field Move/ Extended Field Move Standard question that is asked prior to the wet tow: WHAT ARE THE OPERATIONS MANUAL MAXIMUM DESIGN MET-OCEAN WEATHER CONDITIONS FOR THE WET TOW OF THE MODU? ANALYSIS OF A WET TOWAGE APPROVAL Answer: 70 knot winds or 100 Knot Winds

12. Operations Manual – Afloat Mode ANALYSIS OF A WET TOWAGE APPROVAL

13. Operations Manual – Afloat Mode ANALYSIS OF A WET TOWAGE APPROVAL

14. ANALYSIS OF A WET TOWAGE APPROVAL

15. Wet Towage/ Field Move/ Extended Field Move What question should be asked prior to the wet tow: WHAT ARE THE ACCEPTABLE WEATHER/RIG LIMITSFOR THE WET TOW OF THE MODU? ANALYSIS OF A WET TOWAGE APPROVAL • Answer: • Max. Allowable Roll Angle – does not exceed 6 degrees • Max. Allowed Pitch Angle – does not exceed 6 degrees • Max. Significant Wave Height – does not exceed 4.0m

16. Seasonal Events Aerospace & Marine International – METEVENT Calendar – Chart of Marine Meteorological Events was referenced to asses any seasonal events that could impact transit of the MODU when departing in March. ANALYSIS OF A WET TOWAGE APPROVAL

17. Seasonal eventsAMI Metevent calendar

18. Wet Towage/ Field Move/ Extended Field Move HOW CAN acceptable weather conditions FOR tow BE DETERMINED? ANALYSIS OF A WET TOWAGE APPROVAL SAFETRANS A tool used to determine likely environment that could occur during the towage.

19. SafeTrans An integrated PC tool used to design / analyze marine transports and installations of major facilities. Used to determine risk for dry transportations and wet tows using vessels of virtually any shape and size. Incorporating all of these variables allows MatthewsDaniel to accurately calculate the performance of the vessel under the influence of weather, taking into account captain's decisions to alter course, avoid storms or proceed to safe haven. ANALYSIS OF A WET TOWAGE APPROVAL

20. SafeTrans Worldwide weather database, tropical revolving-storm database and a forecast database. Up to 7 days of forecasting is available in the program for the Captain's Decision Mimic (CDM). CDM is an expert system which simulates the captain's decisions on a tow, given the present conditions and the forecast, in an effort to avoid bad weather. ANALYSIS OF A WET TOWAGE APPROVAL

21. SafeTrans – Methodology Using two separate modules, tows can be modeled within SafeTrans to evaluate the true nature of the risk of proceeding with the towage Voyage Motion Climate (VMC) Monte Carlo Simulator (MCS) ANALYSIS OF A WET TOWAGE APPROVAL

22. SafeTrans Methodology Voyage Motion Climate (VMC) Compute long-term statistical data on the basis of wave scatter diagrams Statistical computation of motion, acceleration, load, tow force and many other conditions within the database used to compute voyage statistics and present it on Weibull graphics. ANALYSIS OF A WET TOWAGE APPROVAL

23. SafeTrans Methodology Monte Carlo Simulator (MCS) When given a historic starting date, computes the voyage statistics on the basis of motion, acceleration, load, tow force and many other conditions within the database. Allows SafeTrans to apply weather routing while still accurately modeling the tow. ANALYSIS OF A WET TOWAGE APPROVAL

24. Safetrans routeMyanmar to Singapore

25. Voyage motion climate (VMC)summary of voyage – March

26. Monte carlo simulations (mcs)Significant wave height, histogram plot

27. Monte carlo simulations (mcs)Significant wave height, total

28. Results A number of factors were reviewed to determine the approvability of a Wet Towage including: Maximum Allowable Roll Angle - 6 degrees Maximum Allowed Pitch Angle - 6 degrees Maximum Significant Wave Height - 4.0 meters ANALYSIS OF A WET TOWAGE APPROVAL

29. Conclusion Based on these results the wet tow of the MODU from Yangon, Myanmar to Singapore in the month of March is feasible. ANALYSIS OF A WET TOWAGE APPROVAL

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