1. API-OGP Joint Task Force Update 2013 Exploration and Production Standards Conference on Oilfield Equipment and Materials Dan Mueller ConocoPhillips Vice-Chairman API CSOEM June, 2013

2. API - OGP Joint Task Force Purpose:  Determine a process for the continued development of globally accepted international standards for the oil and gas industry, given the current US and EU trade sanctions Scope of Effort:  Initiation, drafting, balloting/comment resolution, publication and revision of standards pertaining to equipment, materials and management systems, for the oil and gas industry Deliverables:  Recommended process for standards, including roles of API/OGP/Others within the framework of the defined terms of reference

3. API - OGP Joint Task Force Terms of Reference established by the API Executive Committee and OGP Management Committee:  Need for a single set of industry standards to avoid duplication, with the potential for more than one brand;  Need for the standards to be globally acceptable and widely used;  Need for the standards to be accepted by the regulatory community;  A standards setting process as the foundation for the single set of industry standards that builds on the existing API/OGP infrastructure and allows for increased international participation, and  Need to ensure a legally compliant process

4. Current Situation: Response from US Department of Treasury - Office of Foreign Asset Control (OFAC) to API query is still pending  API sent follow-up letter April 22, 2013  Letter developed with input from API member company attorneys  Letter reiterates importance of issue to industry and requests timely response  API follow-up on a scheduled basis  API negotiations with ISO linked to the timing of the OFAC response 4

5. Current Situation: European Commission (EC ) Response of April 26, 2013 to the OGP Clarification Request  EC response caused concerns with regards to participation in standards development activities where persons from sanctioned countries might be present  OGP Legal Committee to provide specific interpretations to the API-OGP Joint Task Force  OGP Member companies are discussing to align on interpretation(s). 5

6. Current Situation: OGP Interim Solution expired June 8, 2013  18 Draft standards delivered under the program  14 New work items approved OGP letter to ISO Secretary General of June 14, 2013 requesting a temporary reinstatement of the Interim Solution  ISO did not wish to extend the Interim Solution  ISO is open to high-level discussions on how OGP and ISO can work together on a go-forward basis to develop standards  OGP continues to offer an interim platform for international standards development 6

7. Way Forward: High Level Meeting of OGP Senior management and ISO Secretary General OGP Legal Committee clarification on EC response Engage OGP Brussels for further clarification discussions with EU API-OGP Joint Task Force continues design of standards development processes in light of the EC response and in anticipation of the OFAC response Ongoing updates of Task Force activities through the API and OGP committee governance 7