Subsea Well Incident Intervention Service

www.subseawellresponse.com | www.oilspillresponse.com

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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

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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

The industry working together

*GIRG = Global Industry Response Group

PREVENTIONBetter capabilities and practice in well engineering design and well operations management

INTERVENTIONImproved capping response in the event of an incident and to study further the need for – and feasibility of – global containment solutions

RESPONSEEffective and fit-for-purpose oil spill response preparedness and capability

Governments, regulators, NOIA, OSROs and industry initiatives

PREVENTION

OGP’s Wells Expert Committee

30 members

OIL SPILL RESPONSE

Joint Industry Project

INTERVENTION

Subsea Well Response Project

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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:

1. Prevention is paramount2. Working with regulators3. Enhancing industry

response capabilities4. Rapid reaction on an

international scale

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SWRP’s objectives

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

International response

Faster reaction

Reduced environmental

impactFurther assess the need for and feasibility of global containment solutions

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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

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Delivery Timing

Norway•18 ¾ x 15K Ram BOP style

• SIT January 2013•Dispersant Toolbox

• December 2012

Brazil•18 ¾ x 15K Ram BOP style

• SIT October 2013•Dispersant Toolbox

• December 2012

South Africa7 1/16 x 10K Dual Gate ValveSIT April 2013

Singapore7 1/16 x 10K Dual Gate ValveSIT February 2013(Potential for secondary BOP Oct 2013)

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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

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Organisational Overview

• Technical Support and Project Execution

• Funding for initial capital

E&P IndustryIOC/NOC

Global Dispersant Stockpile

Capping Toolbox(s)

Subsea Dispersant Toolbox(s)

Scope:StorageMaintenanceReadinessTrainingContracts w/ certain

vendorsMobilisation to storage country port / airport

Co A Co B

Co E Co F

Co G Co H

Co I Co …

Co C Co D

• Participation

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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

Capping stacks

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Standardised capping platform

Connection kit

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Standardised capping systems

Dual 18 ¾’’ 15k Rams on Main Bore

Dual 71/16’’ 10k Gate Valves on Main Bore

Common 15k System

The integrated intervention system includes four capping stack toolboxes:

2 x full bore 15k capping stacks2 x reduced bore 10k capping stacks

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

Subsea Dispersant Toolkit

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)

DEBRIS CLEARANCE

BOP INTERVENTION

DISPERSANT SYSTEM

Dispersant Chemical

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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

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Containment capability

Containment concept identified and deemed technically feasible based on available vessels (Vessels of Opportunity)

Further work to define current regional containment capability

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Regulator activities

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

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

How to join

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Well Intervention Subscription Agreement

• Participant or Associate membership in OSRL• Associate only covers specific and

identified area.• Supplementary Agreement

• Annual fee• Nomination of Wells

Dispersant Stockpile Supplementary

Agreement

Well Intervention Program

Supplementary Agreement

OSRL Membership

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Entry criteria (any of):1.Credit rating (A-)2.Net worth test of $5 bln3.Letter of Credit for $100 mln4.Guarantee for $100 mln

Subscription terms

Entry Fee:•$1 mln before or on 30th November 2012•$2 mln from 1st December 2012

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

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Well Nomination Process (annual)

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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

Thank you and Questions

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