POST MACONDO The Norwegian Oil and Gas Industry Approach Task Force ZERO, 23 March Bodil Sophia Krohn - OLF 23 March 201

2. POST MACONDOThe Norwegian Oil and Gas Industry ApproachTask Force ZERO, 23 MarchBodil Sophia Krohn - OLF23 March 2011

3. OLF -The Norwegian Oil Industry Association OLF The Norwegian Oil Industry Association is a professional body and employer’s association for oil and supplier companies engaged in the field of exploration and production of oil and gas on the Norwegian Continental Shelf OLF represents: 48 oil companies The oil companies are either the owners of or participants in production licenses for petroleum on the Norwegian Continental Shelf 53 supplier companies The supplier companies include well service companies, oil drilling companies, subsea contractors, catering companies, supply bases and companies within inspection, safety and security services and other services OLF’s member companies represent about 29 000 employees

4. Presentation contents Post Macondo initiatives The organisation structure DWH project scope and status Lesson learned Activities started prior to the DWH accident International initiatives Status and the way ahead 2

5. Post Macondo initiatives A quick response Following the DWH disaster 20 April 2010 the Norwegian oil industry immediately started to gather available facts about the incident A regulatory review To be in a best possible position with respect to understanding the upcoming incident reports, OLF contracted DNV to prepare a report comparing the rules and regulations in the USA and in Norway Establish a project A company driven project was established in OLF for the Norwegian oil and gas industry to prevent similar accidents from happening on the Norwegian continental shelf ../2 3

6. The organisation structure of the DWH project-on the follow up of the prevention, intervention and response issues 6 6

7. Scope and project status The industry’s joint project Statoil, Shell, ConocoPhillips, Det Norske, BP, ExxonMobil, Halliburton, OLF and NOFO (Norwegian Clean Seas Association for Operating Companies) Project scope To collect the available information based on official investigation reports from the accident, and to evaluate their relevance to the Norwegian petroleum industry, to serve as a basis for necessary actions to prevent major accidents. Process and approach The project group has worked on the various focus areas. Recommendations and findings from the BP report were turned into questionnaires and issued to selected companies. The results have been processed into proposed actions. 5

8. Scope and project status LESSON LEARNED Recommendations initiated so far The first recommendations are mainly drilling and well related and calls for improvements of procedures and revision of standards. Some of the recommendations will follow international initiatives being led by globally recognized entities such as API and ISO, and other will be reflected locally in revisions to current Norwegian standards, such as NORSOK D010 and D001.  Information letter to operators for revise of internal governing documentation for well activities, define rig systems which shall be subject to MoC processes and requirement for development of well control bridging documents. 5

9. Scope and project status Current activities: Proposing standardized reporting and investigation methodology for well incidents. Gap analysis on improved oil spill response, including expanded cooperation around the North Sea, burning of oil and use of dispersants subsea. Continued cooperation with OGP/JIP on Capping & Containment Preparing report on effects on environment. Management Systems, Roles and Responsibility and HSE Culture/Leadership being discussed in work group. Planning workshop on working environment and chemical exposure.

10. Scope and project status Further activities: Progress on MODU design improvements Progress on Unified Command

11. Activities started prior to the DWH accidentOperations Committee organisation Operations Committee Executive Committee Networks Framework Conditons Networks Drilling Networks Integrated Operations Networks Operations Networks HSE Networks Health and workingenvironment Air transport Regulations KR Drilling Managers Forum (DMF) Industrial hygiene Maritime Standardisation Well Integrity Forum (WIF) Safety training Supply bases Security Plug and Abandonment Forum (PAF) Forum Crane & Lifting Technical Safety Earthquake recordings Small Operators and Licensees (SOL) Operators Technical Forum (Drilling) (OTF) FPSO Hydrocarbon leaks Sub sea installations 4 sub groups (valves, flanges, fittings and process) Sub sea operations 11

12. Activities started prior to the DWH accident Major accident risk: Three main focus areas Gas leaks A project has been completed developed curriculums for training courses related to work on flanges, valves, fittings & small tubes and process A task force in OLF established Well control incidents The attention devoted to such incidents through Norway’s Well Integrity Forum has resulted in guidelines on training, handover documentation and standardised barrier drawings. A reporting basis has also been established for well integrity through a common template for categorising wells. Ships on a collision course Guidelines on safe interaction between installation, base and offshore service ships established The Working Together for Safety collaboration has developed a draft checklist for offshore service vessels entering the 500-metre safety zone around an installation. The industry has a system to monitor the sea areas in which it operates. 9

13. Activities started prior to the DWH accident Drilling Manager Forum - DMF Focus areaReducing well control incidents and a focus on well integrity are significant for reducing the risk of major accidents, lost production and higher costs on the NCS. DMF shall: Be advocates of HSE operational excellence and well control by actively promoting continuous improvement across Norwegian drilling, completion and testing operations Be updated on current operational and technological developments Be an environment for exchange of experience and learning Be updated on regulatory developments and be involved in OLF’s commenting on new regulations Propose work to be carried out within the annual budget or otherwise to support OLF strategy Assist in manning ad-hoc groups and projects 9

14. Activities started prior to the DWH accident Well control incidents Well Integrity Forum WIF is a forum for discussion of regulatory requirements and guidelines, share experiences, identify common goals and cooperate to solve common challenges within Well Integrity during the wells lifecycle (main focus on Operating phase). Reducing well control incidents and a focus on well integrity are significant for reducing the risk of major accidents, lost production and higher costs on the NCS. The attention devoted to such incidents through Norway’s Well Integrity Forum has resulted in guidelines on training, handover documentation and standardised barrier drawings. A reporting basis has also been established for well integrity through a common template for categorising wells. 10

15. Activities started prior to the DWH accident Well control incidents Well Incident Task Force Under the direction of OLF, a joint industry task force of Operator and Drilling Contractor personnel has been formed to recommend ways to reduce the number and potential severity of well control events on the NCS. Team recommendations are communicating actual well control incidents that have recently occurred on the NCS, so lessons are shared and understood. “Sharing to be better” Lesson learned are shared in safety meetings, by reviewing case histories followed by discuss raised at the end of each presentation. Valuable comments are feed back to the task force group. Lessons are also made available on OLF open web site and the task force was guided through to the information which can be found on the following link: (www.olf.no/wellcontrol) The OLF’s various forums for drilling and well technology are also participating actively in experience transfer following the Deepwater Horizon accident in the Gulf of Mexico. 11

16. International initiatives Monitoring and engagements The project group work closely follows up international work for optimum experience transfer OGP – GIRG Oil and gas UK - OSPRAG API and The Marine Well Containment Company NOIA EU Initiatives from IRF (The International Regulators’ Forum) Initiatives from NSOAF (North Sea Offshore Authorities Forum) 12

17. March 2011 status and the way ahead Summarise the review of the BP report and share the recommendations with the industry Finalize the review of the National Commission report to identify recommendations for the Norwegian oil and gas industry Continued participation in international projects for capping and containment General follow up for experience transfer 20

18. Lesson learned and lessons to learn Major incidents affects the whole industry, and the experience gained from project should support developing and fostering an environment which: Creates arenas for sharing and enhancing learning Promotes active participation in joint industry organizations and projects, including international initiatives Actively upgrades industry standards