1. Title of Powerpoint Subhead Name of Presenter Title of Presenter, Company Date of Event Location of Event ©2015 American Bureau of Shipping. All rights reserved. Operational Safety: Tools for Incident Prevention

2. 2 Operational Safety Operational safety involves effort and expense Trend these days among ABS clients: Getting tools for incident prevention is –“The Right Thing To Do” –“Simply Good Business”

3. 3 Examples of Tools to Reduce Incidents Jackup rig moves –Methodology to define operational limits –Systems to monitor motions and seastates DP systems and operations –ABS DP Guide MODU hull condition management –Process for systematic inspection and maintenance

4. 4 Present Practice: Jackup Rig Moves Jackups are prone to damage during rig moves Overly-conservative approach –Waiting on weather –Non-productive time (NPT), lost revenue – CERTAIN Overly-aggressive approach –Rolling the dice, downside is incident with unplanned repair project –Costly repairs –NPT, lost revenue

5. 5 Present Practice: Operational Limits Documented in rig’s Marine Operating Manual Limits are based on seastate Largely experience-based Typically don’t account for: –Wave period –Wave direction –Swell –Other effects

6. 6 Updated Practice: Methodology & Monitoring Moving off location: –Get allowable limits. Analyze potential for damaging legs and pinions during leg extraction. –Monitor seastates while elevated, get statistics –Use statistics vs limits for go/no-go decision Moving on location: –Get allowable limits. Analyze potential for damaging legs and pinions during touchdown on seabed. –Monitor hull motions during approach, get statistics –Use statistics versus limits for go/no-go decision ABS Guide / Guidance Notes under development

7. 7 DP Drillships: Challenges of Expanding Fleet Pre–1995: 23 drillships exist – a few experts dealing with a few rigs 2015 and beyond: 170 drillships – not enough experts to go around

8. 8 DP Drillships: Risk Management Challenge Loss of station with emergency disconnect of riser: –Safety –Environmental event –Costly downtime Who is controlling the risk? –Operator A –Contractor B Who owns the risk? All industry stakeholders.

9. 9 DP Drillships: Results of Standardization DP knowledge now resides in industry standards (e.g., ABS Guide for Dynamic Positioning Systems) Best practices for DP operations are available to all stakeholders (ISO 13624-1, ISO 13624-2, API 16Q) –Drift-off analysis techniques –Watch circles in DP operations –Emergency disconnect sequences –Riser recoil –Drilling riser management This approach is: –“The right thing to do” –“Simply good business”

10. 10 MODU Hull Condition Management: Ageing Fleet 50% of MODUs are over 30 years old (dominated by SEDUs)

11. 11 MODU Hull Condition Management: Issues Safety and operational efficiency challenges: –Safety issues (e.g., watertight integrity, structural failures) –Cost of repairs; NPT; Time in repair yards –Remaining life Inspection and maintenance –Vital to the safe operation and longevity –Time-consuming, difficult and expensive Preparation for periodic surveys –Conducted on location – avoids lost revenue; avoids cost of moving vessel to dry dock

12. 12 MODU Hull Condition Management: Solution Systematic hull inspection and maintenance Employs the following tools: –Survey planning document –Computerized planning and inspection tools –Acceptance criteria –An eye toward repair and dry dock planning Minimizes chance of hull failures and reduces costly repairs and NPT over the life of the vessel Inspection software used by on-board personnel

13. 13 Operational Safety: Summary Operational safety involves effort and expense Tools for incident prevention are available Putting them to work is: –“The Right Thing To Do” –“Simply Good Business”

14. 14 ©2015 American Bureau of Shipping. All rights reserved.