Subsea Well Incident Intervention Service

1. Subsea Well Incident Intervention Service www.subseawellresponse.com | www.oilspillresponse.com

2. Summary • SWRP planned an integrated intervention system for international use • System includes capping stacks and subsea dispersant hardware • SWRP and Oil Spill Response Ltd are collaborating to make the equipment available to industry • Industry can access equipment via membership of OSRL and a supplementary agreement • First equipment ready for response from the end of 2012 • Equipment stored in four international locations from 2013

3. The challenge in 2010 • Industry must be prepared to respond in the event of a future serious subsea well control incident • Industry must demonstrate its ability to operate safely and responsibly • International response capabilities are needed • State-of-the-art response tools must be available

4. The industry working together PREVENTION Better capabilities and practice in well engineering design and well operations management INTERVENTION Improved capping response in the event of an incident and to study further the need for – and feasibility of – global containment solutions RESPONSE Effective and fit-for-purpose oil spill response preparedness and capability OIL SPILL RESPONSE Joint Industry Project PREVENTION OGP’s Wells Expert Committee 30 members Governments, regulators, NOIA, OSROs and industry initiatives *GIRG = Global Industry Response Group INTERVENTION Subsea Well Response Project

5. Subsea Well Response Project • Started April 2011 • Nine leading oil and gas companies • Not-for-profit joint initiative • Working to enhance the industry’s capabilities to respond to an international subsea well control incident • Formed on the recommendation of OGP’s Global Industry Response Group (GIRG) SWRP’s guiding principles: Prevention is paramount Working with regulators Enhancing industry response capabilities Rapid reaction on an international scale

6. SWRP’s objectives International response Faster reaction Reduced environmental impact • Design a capping toolbox with a range of equipment to allow wells to be shut in • Design additional hardware for the subsea injection of dispersant • Assess and implement deployment option • Further assess the need for and feasibility of global containment solutions

7. Set to deliver an Integrated subsea intervention system • Available for the majority of international subsea oil wells • Designed for subsea use up to 3000m water depth • Transportable by sea and/or air • Ready for use from end of 2012 • Stored in four international locations from 2013: Norway, Brazil, South Africa, Singapore • Manufactured by Trendsetter Engineering and Oceaneering • Integrated Intervention system includes: • Four capping stack toolboxes • Two subsea dispersant hardware kits

8. Delivery Timing • Norway • 18 ¾ x 15K Ram BOP style • SIT January 2013 • Dispersant Toolbox • December 2012 Singapore 7 1/16 x 10K Dual Gate Valve SIT February 2013 (Potential for secondary BOP Oct 2013) • Brazil • 18 ¾ x 15K Ram BOP style • SIT October 2013 • Dispersant Toolbox • December 2012 South Africa 7 1/16 x 10K Dual Gate Valve SIT April 2013

9. Industry can access equipment via OSRL • Collaborating with OSRL to make a new integrated intervention system available to the industry • OSRL will own, store and maintain the equipment • Industry can access equipment through OSRL membership and a supplementary agreement • Oil Spill Response Ltd (OSRL) • Largest global provider of oil spill response and preparedness services • Attended nearly all the major oil spill incidents for the past 25 years • Not-for-profit, industry-owned co-operative

10. Organisational Overview E&P Industry IOC/NOC • Technical Support and Project Execution • Funding for initial capital Capping Toolbox(s) • Participation Subsea Dispersant Toolbox(s) Co A Co B Co C Co D • Scope: • Storage • Maintenance • Readiness • Training • Contracts w/ certain vendors • Mobilisation to storage country port / airport Co E Co F Co G Co H Co I Co … Global Dispersant Stockpile

11. Operational / Deployment Boundaries • OSRL Subsea Well Intervention System program provides • Access to Capping and Subsea Dispersant and Debris Clearance Equipment • Operating guidelines / procedures / information on aircraft and ship requirements • Access to personnel to advise from Trendsetter and Oceaneering • Participant Provides • Marine transportation, deployment and support vessels • Aircraft for air freight • ROV’s and support vessel • Well control specialists

12. Capping stacks

13. Standardised capping platform Connection kit

14. Standardised capping systems • The integrated intervention system includes four capping stack toolboxes: • 2 x full bore 15k capping stacks • 2 x reduced bore 10k capping stacks Common 15k System Dual 71/16’’ 10k Gate Valves on Main Bore Dual 18 ¾’’ 15k Rams on Main Bore

15. Independently verified quality QA/QC audit evaluations ongoing DNV engagement in progress: • Technical Verification of the Capping Toolbox at component and system level, following DNV OSS 300 for Risk-Based Verification • Qualification of the Capping Toolbox at component and system level, according to DNV RP A203 for Qualification of New Technology (no existing international standards or specifications for Capping Stacks) • To result in DNV Certificate of Fitness for Service of the Capping Toolbox

16. Subsea Dispersant Toolkit

17. DEBRIS CLEARANCE Subsea dispersant equipment • Subsea application of dispersant at a wellhead is an integral part of capping operations: • Creates safer surface working conditions for response personnel • Enhances the degradation of the oil • Subsea dispersant hardware kits include: • Tools for site surveys • Debris clearing equipment • Flying leads, distribution manifold and dispersant wands • High, high volume accumulators • OSRL holds strategically located stocks of dispersant (NB not included with system subscription) BOP INTERVENTION DISPERSANT SYSTEM

18. Dispersant Chemical

19. Subsea dispersant chemical • OSRL will hold strategically located global dispersant stockpiles, access to which is subject to separate and additional arrangements (NB! not included within the intervention system subscription) • OSRL Dispersant Stockpile provides • Access to 5000 tonnes (1.3 million gallons or 31500 barrels) of Chemical Dispersant

20. Containment capability Containment concept identified and deemed technically feasible based on available vessels (Vessels of Opportunity) Further work to define current regional containment capability

21. Regulator activities • Stakeholder Engagement Briefings : • Department of Energy and Climate Change (DECC), UK – Aug 4, 2011 DG-ENER, European Commission – Aug 3, 2011 IOPRO Summit, Australia – Aug 10-11, 2011 Petroleum Safety Authority (PSA), Norway – Aug 24, 2011 US GAO, UK – Sep 7, 2011 Offshore Europe, UK – Sep 7, 2011 OGP, UK – Sep 8, 2011 Norwegian Oil Industry Association (OLF), Norway – Sep 14, 2011 Ministry of Petroleum and Energy (MPE), Norway – Sep 20, 2011 OLF & PSA DwH Seminar, Stavanger – Sep 23, 2011 International Regulators Forum (IRF) Summit 2011, Norway – Oct 4-5, 2011 Department of Energy and Climate Change(DECC), UK – Nov 2, 2011 CAPP, C-NLOPB and CNSOPB, Canada – Nov 4, 2011 Petrobras, IBP, Ministry, IBAMA and ANP, Brazil – Nov 9-11, 2011 Petroleum Safety Authority (PSA), Norway – Nov 15, 2011 APPEA, Minister, Shadow Minister and DRET, Australia – Nov 29-30, 2011 Norwegian Petroleum Directorate (NPD), Norway – Jan 31, 2012 Highlights: Launch: pre-engagement with key stakeholders and Press Release May 16, 2011 International Offshore Petroleum Regulators and Operators Summit (IOPRO): Speech by Keith Lewis, Aug 11, 2011 SWRP Newsletter #1, Aug 30, 2011 Phase 2 recommendation sensing with key stakeholders, Nov 2011 SWRP Newsletter #2, Dec, 2011 SWRP Newsletter #3, April 17, 2011

22. How to join

23. Well Intervention Subscription Agreement • Participant or Associate membership in OSRL • Associate only covers specific and identified area. • Supplementary Agreement • Annual fee • Nomination of Wells

24. Subscription terms • Entry Fee: • $1 mln before or on 30th November 2012 • $2 mln from 1st December 2012 Entry criteria (any of): Credit rating (A-) Net worth test of $5 bln Letter of Credit for $100 mln Guarantee for $100 mln • Annual Per Well Fee: • Calculated annually based on total no. of wells nominated • Max $500,000 per well • Forecast to be approx. $200,000 per well

25. Well Nomination Process (annual)

26. Conclusion • Industry Shared Solution • International solution which eliminates bespoke country solutions • Locations and numbers of toolboxes based on logistics and response times • Access is to 4 capping toolboxes and 2 dispersant toolboxes • Access is open all operators that meet criteria

27. Thank you and Questions