1. THE VULNERABILITY OF GULF OF MEXICO SHIPYARDS TO COASTAL FLOODING AS A RESULT OF STORM SURGE By Capt. Christopher Bowman

2.  Increasing Number of Deepwater Projects Increasing complexity and size enhances exposure and costs.  Flooding Risk Has Always Been There The value of the assets has changed, subsequently changing the risk.  Storms Appear More Intense and Unpredictable The need for more thorough contingency planning to improve risk identification and risk mitigation.

3.  Who Benefits From Contingency Procedures? Underwriters – Reduced Risk Exposure Brokers – Representation of Competent Assureds Assureds – Minimize Damages to Assets / Project Delays Shipyards – Minimize Damages to Assets / Equipment Government – Reduce Risk to Infrastructure Civilian Population – Reduced Risk to Personal Properties  Three Cases Different Unique Risks in the Gulf of Mexico Pascagoula, MS / Mobile, AL Ingleside, TX Brownsville, TX

4. Pascagoula/Mobile Mississippi and Alabama Coastline without Coastal Flooding Pascagoula Mobile

5. Pascagoula/Mobile  Deepwater Commercial Seaport: Break-Bulk Cargoes Containerized Cargoes Petroleum Cargoes Heavy-Lift Cargoes Terminal Facilities

6. Pascagoula/Mobile  Potential Risks To: Vessel Fabrication / Repair Shipyards  Semi-Submersible Rigs  Large Dry-Docks  Shipyard Facilities

7. Pascagoula/Mobile Pascagoula and Mobile with Coastal Flooding Due to a Category 5 Hurricane Pascagoula Mobile Pascagoula Mobile

8. Pascagoula/Mobile  Mitigating The Risks: Timely and Reliable Weather Forecasting Open Communication Between Port Authorities / USCG / Terminals Contingency Procedures with Time-line Triggers Engineered Mooring Plans  Adequate Mooring Appurtenances  Mooring Bollard / Bitt Capacities  Accurate Water Depths  Overburden

9. Ingleside Texas Coastline Surrounding Ingleside without Coastal Flooding Ingleside

10.  Potential Risks To: Major Offshore Oil & Gas Projects  Production Decks / Components  Jacket Structures  Floating Production Units

11. Ingleside  Major Offshore Projects:

12. Ingleside Ingleside with Coastal Flooding Due to a Category 5 Hurricane Ingleside

13.  Mitigating The Risks: Shipyard Project Bridging Document Engineered Mooring Plans  Adequate Mooring Appurtenances  Accurate Water Depths  Overburden

14. Ingleside Engineered Mooring Plan For Storm Surge / High Winds

15. Brownsville Texas Coastline Surrounding Brownsville without Coastal Flooding Brownsville

16.  Potential Risks To: Jack–Up Drilling Rig Fabrication / Repair Shipyards  Jack-Up Drilling Rigs

17. Brownsville Brownsville with Coastal Flooding Due to a Category 5 Hurricane Brownsville

18.  Mitigating The Risks: Location Approvals / Site Assessments for Jack-Up Rigs  Site Specific Soils Analysis  Hull / Leg Wind-Load Calculations  Preload Requirements

19. Summary and Conclusions  Gulf Coast Shipyards will always be exposed to the threat of severe coastal flooding arising from any given tropical event.  The risks and exposures to these facilities is always changing, driven by season and current scopes of work.  Assessing the risks and exposures frequently is essential to insure that Contingency Plans and Hurricane Preparedness Plans are up to date for the current scopes of work.  Contingency Plans and Hurricane Preparedness Plans have a significant financial impact on these facilities as they often require volumes of resources, advance planning time and adequate time for full implementation.  Shipyards carry the burden to protect their assets, the assets of their Clients, the financial impacts to insurance markets and to reduce the potential for interruptions to the global offshore oil and gas industry.

20. QUESTIONS?