Mars TLP Recovery Project

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1 Mars TLP Recovery Project HSE & Technical Challenges 11/9/2006 File Title Copyright: Shell Exploration & Production Ltd.

2 W. A. " Dup" Duplantis, HSE Advisor W. A. " Dup" Duplantis, HSE Advisor Dave Knoll, Civil Engineering Advisor Dave Knoll, Civil Engineering Advisor Shell International Exploration and Production Shell International Exploration and Production Acknowledge: EPW-SEPCO(Operator) BP (28.5% working interest) Worldwide Contractors

3 Summary The Storm and Assessment HSE Challenges Technical Challenges Project Management Challenges The Reward

4 Katrina - Storm Katrina s Path / Wind Speed /Sea Surface Elevation Katrina s Airborne Doppler radar-derived wind speed cross sections 2000 UTC 28 August 2005

5 Platform Motions Response 220 Aug 29, 0 AM - Aug 29, 1 AM swa y (ft) surge (ft)

6 Damage Platform Survived Toppled Rig Substructure Vapor Recovery Compressor Field Gas #1 & Field Gas #2 Glycol Recovery Skid Wave Run up Damage Lower Deck Not Habitable / Treacherous Environment

7 Platform & Production Wells Survived

8 Damaged by Rig Overturning Drilling Rig Major Damage Glycol Gas Dehydration Regeneration System Vapor Recovery Unit # 2 (Upper Decks) Field Gas Compressor # 1 (Top Deck Coolers) Field Gas Compressor #2 (Exhaust, ICP & Gear Box) Structure Steel below Compressor #2 ICP Piping connecting these systems Power & Control Cabling running through these areas Crane #2 Boom Flare boom

9 Toppled Rig Substructure

10 Damaged Compressor- VRU #1

11 Damaged Glycol System

12 Damaged by Wind, Waves & Water Numerous Utilities Support Systems Survival Capsules, Qtrs utilities (sewage, water, etc.) Significant grading damage Structural damage to lower deck skid panels Crane # 1 boom Subsea Umbilical Control Panels on Tops of Columns Subsea Below Deck Flowline Piping Bend Most below lower deck piping systems significantly damaged Drains, Firewater, etc. Status of field mounted local control panels unknown Misc. water damage into most buildings

13 Wave Run Up Structural Lower Deck

14 Wave Run Up Survival Capsules

15 Wave Damage Top of Columns

16 HSE Challenges High Risk Environment Diverse Staff HSE-MS Offshore Tools Results

17 Treacherous

18 Not Habitable

19 Diverse Staff

20 HSE-MS SEPCO Brown Field Projects Operating Platform Systems Damaged Assignment and Completion of HSE Critical Activities Incident Response

21 Offshore Tools Basic Training HSE Orientations Over 1,300 personnel attended orientations covering HSE expectations, roles and responsibilities of each individual concerning the work processes and HSE resources available on site. Fatigue Awareness Nearly 900 personnel attended training sessions on fatigue awareness, recognition, and preventative measures. Fall Protection & Fall Rescue Over 300 personnel attended training on fall protection/prevention with 134 of these receiving additional training in fall rescue techniques.

22 Offshore Tools Process BBSM Process Nearly 2,600 BBSM observations were conducted by the workforce and project management. These were tracked, trended and discussed during safety meetings and toolbox talks to communicate at risk behaviors and areas for improvement. Additionally, the BBSM cards identified 365 unsafe conditions. Permit to Work System The SEPCO Permit to Work System was used to manage work tasks and help ensure compliance with guidelines adopted for simultaneous operations. Over 2,600 permits were developed in the course of the repair work on the TLP.

23 Offshore Tools Continuing Education Daily Safety Meetings - Safety meetings were conducted twice daily to recap workplace HSE issues, best practices and discuss hazards associated with upcoming tasks. Formal Weekly Safety Meetings Formal structured safety meetings were conducted weekly for both day and night crews. These meetings discussed HSE trends, HSE milestones and targets, recent incidents, workplace audit results and work scope. These forums were also used to formally recognize proactive HSE intervention.

24 Offshore Tools Audits Management Walkthroughs Over 75 Management Walkthrough audits were conducted and documented. This provided line management an opportunity to observe hazards and worksite conditions first hand. It also was a good demonstration of Management s commitment to the HSE effort. JSEA & Formal Job Site Audits Nearly 550 JSEA and Job site audits were conducted to identify gaps in the hazard analysis processes. Results were documented, tracked, trended and used as a coaching tool for area Foremen to promote continuous improvement.

25 Offshore Results Incident History MONTHLY TRENDS Number of Incidents OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY MONTH FIRST AID NEAR MISS ASSET DAMAGE Log. (FIRST AID) TOTAL Log. (NEAR MISS) Log. (ASSET DAMAGE) Log. (TOTAL)

26 Offshore Results Incident Stats Crane Operator 9% Pipefitter Riggers Scaffolder Inst Tech Elect Tech Welder Crane Operator Steward Fire Watch Steward 9% Fire Watch 6% Pipefitter 18% Leg 8% Feet 10% Body Part Head 10% Eye 27% Welder 9% Riggers 18% Elect Tech 9% Inst Tech 6% Scaffolder 16% Finger/Hand 27% Arm 3% Torso 15% Nightshift 34% Dayshift 66%

27 Technical Challenges Quick & Reliable Engineering Rig Removal Flotel Mooring

28 Rig Removal - Plan

29 Rig Removal - Preparations

30 Rig Removal - Executed

31 Flotel

32 Project Management Challenges Securing Critical Resources Monthly POB Avg Jan Feb March April Safe Scandinavia Mars TLP Overall POB Avg POB Management

33 The Reward Mars Recovery Project HSE Statistics Thru May 15 th Fatalities Lost Time Injuries Restricted Work Cases Medical Treatment Cases First Aid Cases BBSM: 2600 Near Miss: 21 BBSM- Observations Near Misses 1,028,795 Man-Hours 67,273 0 Significant Environmental Goals: TRIR: 1.88 Significant Environmental : 0 TRCF: 0 TRIR: 0

34 Significant Repair Effort to Date Key Drivers of Success: Management of HSE Technology Application Project Management