SUB SEA SYSTEMS INTERNATIONAL NIGERIA LIMITED CLOCKSPRING

SUB SEA SYSTEMS INTERNATIONAL NIGERIA LIMITED CLOCKSPRING

AGENDA Introduction Progress To-Date Cost Comparison: Clock Spring vs Conventional Repairs Highlights of Selected Riser Repairs Value Added to Operation NNPC and its JV partners completed to date in Nigeria waters

SUB SEA SYSTEMS INTERNATIONAL NIGERIA LIMITED Nigerian Company Pipe and Pipeline Repairs Sole Agent for in Nigeria Subject matter experts for composite repair technology

CLOCK SPRING Clock Spring is a composite repair system used to reinforce corrosion or other blunt defects in both high and low pressure pipelines, restoring the integrity of the pipe, enabling the pipe to return to full service.

Highlights of Progress To-Date Over 84 riser & topsides piping repairs completed during 2006 to 2009. Over 70,000 man hours completed without any recordable injuries. Several major emergency repair jobs completed using : Meji PP topsides piping Okan Valve Platform IBP 26 riser repair

Cost Savings Realized Using vs. Conventional Riser Repair Methods

Value Added to Operation Conventional Welded Repairs vs. Repairs: SEWOP with crew working 25 days can typically repair 2 risers by conventional means (i.e., welded repairs). Cost for this work ~ $500,000. For the same cost, a four man Clock Spring crew can repair eighteen (18) 6 risers (i.e., conventional welded riser repairs are 9 times more expensive than equivalent Clock Spring riser repairs). Typical SEWOP used for conventional welded riser repairs

Highlights of Riser Repairs

26 Riser Repair Riser handles production of (~ 70,000 BOPD). Riser condition before repair (riser was previously coated and wrapped with fabric for corrosion protection, but was not successful in arresting further corrosion).

26 Riser Repair During Repair: Corrosion removed from riser revealing heavy pitting of riser pipe.

26 Riser Repair During Repair: Repair Kits are applied to riser.

Results of Completed Project: 26 Riser Repair Zero Recordable Incidents Permanent Repair 3 week repair program In Service repair $84,000 labor Cost Production not impacted (~ 70,000 BOPD)

BOP 26 Departing Riser to SBM Condition Before Repair: Riser handles all export production at BOP (~ 300,000 BOPD average production). Temporary repair clamp installed to contain prior leak on riser.

BOP 26 Departing Riser to SBM-3 During Repair: A welded repair sleeve placed over the leak point.

BOP 26 Departing Riser to SBM-3 During Repair: applied to remainder of riser.

BOP 26 Departing Riser to SBM-3 Results of Completed Project: Zero Recordable Incidents Permanent Repair 4 week Program $120,000 labor cost Tanker Loading not impacted during repairs

Valve Platform Emergency Repairs Platform Prior to 5 July 2009 Militant Attack

Valve Platform Emergency Repairs Platform After 5 July 2009 Militant Attack

Valve Platform Emergency Repairs Platform After 5 July 2009 Militant Attack

Valve Platform Emergency Repairs Platform During 6-week Repair Period

Valve Platform Emergency Repairs Platform Nearing Completion of 6-week Repair Period

Valve Platform Emergency Repairs Platform After Emergency Repairs Completed

Valve Platform Emergency Repairs

PP Emergency Piping Repairs Leak in PP 10 Oil Outlet to Chemelectric 27 Nov 2008

PP Emergency Piping Repairs Wet Wrap Repairs In Progress

PP Emergency Piping Repairs Completed Wet Wrap Repairs

10 Departing Jkt #2 to PP Condition Before Repair: Monopod Well Jacket. Heavy corrosion above Splashtron riser coating.

During Repair: 10 Departing Jkt #2 to PP Heavy corrosion removed. Significant riser wall loss.

10 Departing Jkt #2 to PP During Repair: repair kits applied to riser.

10 Departing Jkt #2 to PP Results of Completed Project: Zero Recordable Incidents Permanent repair 9 day repair program In service repair $36,000 labor cost Production not impacted (8,000 BOPD)

10 Incoming from PP Condition Before Repair: Severe Corrosion. Corroded flange bolts and nuts. Corroded riser clamp.

10 Incoming from M PP During Repair: Riser cleaned down to bare metal in preparation for application of Clock Spring repair kits.

10 Incoming from PP During Repair: New Teflon-coated blots installed.

10 Incoming from PP During Repair: New riser clamp installed on jacket after application of repair kits.

10 Incoming from PP During Repair: repair in progress.

10 Incoming from PP Results of Completed Project: Zero Recordable Incident 12 day program In service repair $48,000 labor cost Production not impacted (8,000 BOPD)

Riser Integrity Documentation SUB SEA SERVICES LIMITED Detailed Inspections & Close out reports generated for each repair. Clock Spring installation (weld bridges) These photographs show the stages of the weld bridge technique, after installing the Clock Spring wraps either side of the weld the void is filled and molded, once cured the filler is roughened with sand paper to achieve a surface profile to which the an additional Clock Spring is installed this strengthens the joint and retains the hoop stresses of the repaired pipe. The Clock Spring will then be cleaned and coated with the Clients preferred coating system. CLOCKSPRING Stage 1 Stage 2 PRODUCTION PLATFORM 10 RISER FROM CLOSE OUT REPORT Stage 3 This procedure remains the same regardless of pipe size and Location On this project 2 weld bridges were applied Stage 4

NNPC and its JV partners completed to date in Nigerian waters SSSI has completed over 84 topsides piping and riser repairs during 2006 to 2009, safeguarding a significant portion of NNPC and it s JV partners daily production in Nigerian waters (i.e., ~ 300,000 BOPD). One major riser repair project ( 1 PP 26 riser repair) was carried out while the riser remained in service at 70,000 BOPD, with zero impact on production. Several emergency topsides piping and riser repairs completed during the previous 3.5 years that SSSI has been installing for NNPC and its JV partners In addition to the main oil risers that make-up oil shipping networks, One of NNPC and it s JV partners has over 1,100 well and gas lift flowline risers in its Offshore operations, with approx. 50% of them reaching the point of potential failure. offers advantages in both the cost and scheduling of these riser repairs.

NNPC and its JV partners completed to date in Nigerian waters SSSI has compiled an excellent safety track record during the previous 3.5 years of repair work they ve done in Escravos; at the end of 2009, SSSI has worked over 70,000 manhours with zero recordable incidents riser repairs offer a significant cost advantage compared to conventional welded riser repair methods. Conventional welded riser repairs are typically 9 times more expensive than equivalent repairs. riser repairs can typically be done while the riser remains in service, minimizing the lost production that is associated with performing conventional welded riser repairs SSSI is the sole agent for products and installation services in Nigeria and the recognized expert in its application