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Abu Dhabi, 21 st April 2015 Ali Rashed Al Jarwan Chief Executive Officer Abu Dhabi Marine Operating Company

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Abu Dhabi, 21st April 2015

Ali Rashed Al Jarwan Chief Executive Officer Abu Dhabi Marine Operating Company

NO ORGANIZATION CAN AFFORD FAILURES

1974

FLIXBOROUGH UK

27 fatalities

1988

PIPER ALPHA

167 fatalities

1984

PEMEX gas explosion

452 fatalities

1989

EXXON VALDEZ

258,000 barrels

1989

PHILIPS PASADENA

23 fatalities

5000+ families

BHOPAL Gas

1984

15 fatalities

Texas City Refinery

2005

Turkey

BTC Pipeline

2005

Listed 21 degrees

Thunder Horse PDQ

2005

Alaska Spills

2006

IPLOCA Regional Meeting – April 2015 3

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Zakum Oil Lines Replacement Project - INITIATION

3 IPLOCA Regional Meeting – 21st April 2015

Subsea Pipe Lines Inspection, in number of lines

In 2011, following a number of Pin-hole leaks, we decided to replace 25 oil

lines based on QUALITATIVE ASSESSMENT ( Physical inspection program

was not complete).

This was major and complex brownfield project which was solely driven by

“Zero Hydrocarbon Leak Policy”. Hence, ‘Time was of the essence to

minimize Business Impacts‘.

Major challenges were :-

Executing in an operating brown field which is congested, shallow

water and soft soil;

Firm commitment of marine spread and timely availability;

Management of multiple shutdowns (WHTs, Complexes);

Availability of competent / qualified personnel;

Large number of interfaces.

IPLOCA Regional Meeting – April 2015 4

Zakum Oil Lines Replacement Project - Scope

4 IPLOCA Regional Meeting – 21st April 2015

Description Quantity

New Pipelines to be Laid 26 Lines (90 km)

Subsea Cable Installation 57 WHTs (202 km)

Permanent Pigging Facilities, Corrosion Inhibitor, Electrical

Equipment, Structural Extension, Piping modification,

Safety Shutdown System.

26 WHTs Topside Modification Works

New Riser Platforms with new Bridges. 2 Nos.

Existing Pipelines to be Demolished. 27 Nos.

IPLOCA Regional Meeting – April 2015 5

Zakum Oil Lines Replacement Project - Schedule

5 IPLOCA Regional Meeting – 21st April 2015

ACTIVITIES 2011 2012 2013 2014 2015 2016 2017

Inspection ( By 2 Contractors)

Pipe line FFS / Assessment (qualitative & quantitative)/ Passport

Pipe line Catalog

Pressure protection System

Spares Inventory

FEED (By Technip)

Procurement (By ADMA)

EPC ( Pipeline Replacement

Engineering

EPC Execute ( Subsea Cable)

Deoiling & Demolition

Apr Jun

May Sep

Nov Sep

May Jun

Oct Sep

Oct Feb

Feb Sep

Oct Dec

Nov Nov

Feb Feb

Jan ,Dec

IPLOCA Regional Meeting – April 2015 6

Zakum Oil Lines Replacement Project - OUTCOME

6 IPLOCA Regional Meeting – 21st April 2015

1. Development of Execution Strategy for Pipe Lines Replacement

2. Development of Pipeline PASSPORT

3. Development of Integrity Management Database System

4. Development of Integrity Management Planning

5. Development of Safe Operation Process until Replacement

6. Introduction of various New Technologies

IPLOCA Regional Meeting – April 2015 7

Execution Strategy – Pipe Lines Replacement

7 IPLOCA Regional Meeting – 21st April 2015

Internal Inspection / Integrity Assessments / Risk Ranking

Engineering started with a list of pipelines to be replaced based on Qualitative Assessment.

In Parallel the Intelligent Pigging (IP) / Quantitative Assessment was in progress.

Number of pipelines were added or removed from the scope as the results of the IP/Quantitative

Assessment (Deterministic and actual condition based) / Risk Ranking.

Parallel Engineering

Early Surveys : Pipeline route surveys and Geo-Technical survey for new structures were carried

out prior to commencement of Engineering.

Laser scanning (WHTs 3D PDMS) : Laser scanning reduced time required for site visit for obtaining

‘As-Built’ information of WHTs.

Standardization : Pipeline sizes & Equipment were standardized to optimize the delivery.

Optimization of Topside Modifications : In parallel, an independent study has been completed by

an In-house Task Force and study outcome findings were incorporated in Engineering.

Structural Integrity of Existing WHTs : In parallel, the adequacy of existing Structure of WHTs

were thoroughly checked and confirmed by a specialist Consultant.

Early procurement of Long Lead Items (LLIs)

Line pipes, bends, Composite Subsea Cables & Accessories and ESDVs were identified as the long

lead items. This eliminates a major risk from the project schedule.

IPLOCA Regional Meeting – April 2015 8

Execution Strategy – Pipe Lines Replacement

8 IPLOCA Regional Meeting – 21st April 2015

Leadership

Senior Management : Provide Directives, Timely Approvals, Extensive Supports and Mitigation in

Dynamic Way.

Shareholders : Early approvals on EPC Bidders List / Project Execution Strategy.

Early Engagement of EPC Contractors

Pipeline Early ITT issue while engineering is in progress : ITT was issued early as soon as

majority of the documents were issued as final. Remaining documents and additional scope was

issued as Tender Bulletins. This resulted in reduction in duration of bidding phase.

Alignment Meetings with EPC Bidders : Technical alignment meetings were conducted with

potential EPC Contractors before submission of Technical and Commercial proposal. The objectives

of the meetings were to clarify all technical issues , explain the project objectives, complexity of the

field and to establish a workable base schedule.

Outage Optimization at all Phases

Outage optimization workshops are conducted in order to minimize the production losses during

offshore installation.

Early tie-in packages : Early tie-ins implementation during planned shut down (opportunity)

windows to minimize the loss of production during EPC phase.

Jumper Lines : Installation of temporary bypass lines to continue producing upstream towers.

SIMOP : Topside modification works while wells are producing in order to minimize shutdown

duration.

.

IPLOCA Regional Meeting – April 2015 9

Integrity Management Planning

9 IPLOCA Regional Meeting – 21st April 2015

IPLOCA Regional Meeting – April 2015 10

Safe Operation until Replacement

10 IPLOCA Regional Meeting – 21st April 2015

Pressure Protection System

Replacement Inhibition

Pipeline Repair

Inspection & Monitoring

Pipeline Catalog

IPLOCA Regional Meeting – April 2015 11

New Technology – Inspection

IPLOCA Regional Meeting – 21st April 2015 11

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IPLOCA Regional Meeting – April 2015 12

New Technology – Laser Scanning

12 IPLOCA Regional Meeting – 21st April 2015

Abu Dhabi, 21st April 2015

Ali Rashed Al Jarwan Chief Executive Officer Abu Dhabi Marine Operating Company

IPLOCA Regional Meeting – April 2015 14

Zakum Oil Lines Replacement Project - Scope

14 IPLOCA Regional Meeting – 21st April 2015

26 Nos. new Pipelines (90 Km)

Subsea Cable inspection (202 Km)

26 WHTs topside Modification

2 Nos. of New Riser Platforms & New bridges

27 Pipelines demolishing