DRILLSAFE APPEA DRILLING STEERING COMMITTEE UPDATE BRETT DARLEY 6 MARCH 2014

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1 DRILLSAFE APPEA DRILLING STEERING COMMITTEE UPDATE BRETT DARLEY 6 MARCH 2014

2 SUBSEA FIRST RESPONSE TOOLKIT STATUS 2 Equipment delivered Familiarisation Training for Member Companies commencing late this month APPEA Exhibition

3 DRILLSAFE OPERATIONAL EXCELLENCE BRETT DARLEY 6 MARCH 2014

4 APACHE CORPORATION Apache Corporation is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. Founded in 1954 Based in Houston, Texas Operating in 6 countries 2012 in summary: Proved Reserves 2.9 billion barrels of oil equivalent Production: 779,000 boepd Revenue: $17 billion Total Assets: $60 billion Total Acreage (gross): 42 million Employees: 6,000 4

5 THE APACHE BUSINESS Diverse operations 5

6 6 APACHE AUSTRALIA & JV FACILITIES SCHEMATIC

7 INJURY RATES AUSTRALIAN REGION 8 Total Apache Lost Time Incidents 7 Medical Treatments (Work related) 6 5 LTI Frequency Rate (moving avg) 4 3 MTI Frequency Rate (moving avg) 2 Reportable Injury Frequency Rate 1 0 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 FIRST TIME EVER ALL FOUR OPERATING FACILITIES ARE SIMULTANEOUSLY ONE YEAR NO APPEA LOST - TRIFR TIME 2012 INJURIES = 4.9 (LTI S); PROJECTS: NO LTI S IN 2013; DRILLING: ONE YEAR NO LTI S AS OF FEB

8 8 THE APACHE WAY

9 HOW APACHE OPERATES Fiercely decentralised Locally empowered - ownership! Strong corporate culture & values

10 HOW APACHE OPERATES WHAT S MISSING? Corporate Values mis-interpreted Behaviours not consistent New employees take time to feel part of the Company Best practice not identified and implemented Performance not consistently measured, unable to know if efforts are bringing improvement Learnings not shared

11 OPERATIONAL EXCELLENCE - THE APACHE WAY Formal integrated framework a holistic approach - HSE not a bolt-on part of the performance model Driven from the CEO Links values & behaviours to daily work Describes in details the characteristics and behaviours of those in leadership position Disciplined approach to measurable performance improvement (focussing on leading indicators) in all areas of operations Drives high value initiatives those that deliver results are implemented across the Company

12 IMPROVING THE PERFORMANCE OF APACHE OPERATIONS Focus efforts on improving performance in each of the areas that are critical to Apache s ongoing success. Optimized Operations Cost Efficiency Adapting to Change Asset Integrity Safe Workplace Environmental Responsibility Aligned Workforce The goal is to achieve measurable performance improvement in each of these seven areas of operation.

13 CULTURE AND PERFORMANCE IMPROVEMENT A framework that: reinforces the Apache corporate culture - and - initiates a disciplined pursuit of performance improvement in seven key areas of operation

14 THE APACHE CULTURE Culture is best described as the shared ideas, behaviors and practices that define the organization. Core Values describe the motives as well as the behaviors Apache expects all of its employees and contractors to exhibit on the job. Additionally the Leadership Key Attributes describe what Apache expect of our leaders. Together, Apache Core Values and Leadership Key Attributes serve as the foundation of the company culture and the heart of The Apache Way. CORE VALUES LEADERSHIP KEY ATTRIBUTES

15 CULTURE AND PERFORMANCE IMPROVEMENT THE LINK BETWEEN CULTURE & PERFORMANCE A strong and consistent culture is fundamental to Apache s ongoing success. Behaviors on the job have a big impact on our individual and collective performance Focusing on both culture (how we do things) and performance (what we do well) can improve the consistency, reliability and outcomes in every area of the business

16 = PERFORMANCE IMPROVEMENT

17 CULTURE AND PERFORMANCE IMPROVEMENT PERFORMANCE IMPROVEMENT An obligation to improve in each of our core areas of business including: Optimized Operations Cost Efficiency Adapting to Change Asset Integrity Safe Workplace Environmental Responsibility Aligned Workforce

18 OPERATIONAL EXCELLENCE THE APACHE WAY WHO WILL BE INVOLVED? Apache employees and contractors worldwide Regions Corporate ONE COMPANY, ONE OUTCOME? Alignment Sharing Consistent behaviors and expectations Clear Leadership attributes the right people get promoted Measurable improvement

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