Advancing Global Deepwater Capabilities

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1 Advancing Global Deepwater Capabilities

2 BP s commitments Determined to accelerate and further deploy the capabilities and practices that enhance safety in our company and the deepwater industry 200+ meetings in over 30 countries Committed to sharing our learnings globally so an accident of this magnitude does not happen again Other regional industry associations are engaged as well 1

3 Investigation summary Well integrity was not established or failed 1 Annulus cement barrier did not isolate hydrocarbons 2 Shoe track barriers did not isolate hydrocarbons Hydrocarbons entered the well undetected and well control was lost 3 Negative pressure test was accepted although well integrity had not been established 4 Influx was not recognized until hydrocarbons were in riser 5 Well control response actions failed to regain control of well Hydrocarbons ignited on the Deepwater Horizon 6 Diversion to mud gas separator resulted in gas venting onto rig 7 Fire and gas system did not prevent hydrocarbon ignition Blowout preventer did not seal the well 8 Blowout preventer (BOP) emergency mode did not seal well 2

4 Unprecedented scale of response in challenging conditions 5-state response area ~ 48,000 Responders ~ 6,500 vessels, 125 planes 6 rigs 5 Crisis Management 4 Spill Response 3 Relief Well Largest deployment of boom (~13.5 million ft.) High pressure and low temperatures at source 1 Prevention Drilling 2 Containment 3

5 Prevention / Drilling Safety Robust and systematic capability across the Global Wells Organization Advancing equipment standards and procedures Single, centralized Wells Organization Functional excellence Standardization Consistent implementation Enhancing well control capabilities Hiring Training Assessment Global Wells Institute Enhance and embed technical, managerial, leadership capabilities Well simulator (Houston) Equipment Blowout Preventers Procedures Role of Technical Authorities Pre-spud well operations checklist Technology Real-time BOP health monitoring Remote BOP pressure testing Project 20K 24/7 Houston Monitoring Center 4

6 Capping and Containment BP Global Deepwater Well Cap and Tooling Package Contributing unique experience and capability Capping stacks Collection devices Free standing risers and collection systems Operations and logistics Working with industry to build capability BP Containment Response System Marine Well Containment Company UK North Sea well cap project Subsea Well Response Project / Oil Spill Response Limited Pemex Technology License Agreement 5

7 Relief Wells Rapid intersect and bottom well kill Deepwater Horizon experience Advances in Ranging Technology Relief well was final confirmation that well had been killed Going forward BP Pre-Spud Relief Well Planning Requirements: Two surface locations identified Suitable rig, equipment and materials identified Conceptual relief well design - deep and shallow intersection points - dynamic kill plan 6

8 Spill Response Applying largest effort in history to advanced capabilities Open-water Surface and subsea dispersant application Controlled in-situ burning Marine environment monitoring capabilities Near-shore Vessels of Opportunity - Engaging local knowledge Onshore Systematic Shoreline Cleanup and Assessment Technique assessment and cultural/archaeological data Waste Management 7

9 Crisis Management Applying Incident Command Structure at scale Unified Area Command (New Orleans) Houma Mobile Miami Galveston Incident Response Post Branch offices Central organization Incident Command Structure that scales up as required Structured interaction with government agencies Local organization Branch networks to engage local stakeholders Technology Communications and data to provide responders a Common Operating Picture Community Town halls, community outreach, claim centers Jefferson parish, LA Jackson and Harrison, MS Orange Beach, AL Okaloosa/ Walton, FL Galveston, TX Selected branch offices 8

10 Crisis Management Managing large-scale simultaneous marine and subsurface operations in a response Large-scale response Complex, competing vessel operations near the source Plan, prioritize and communicate vessel and ROV operations Systematically apply existing marine standards to assure safe operations Trust, engage vessel captains, crews Unique experience, capability gained Applied experience and learning to daily operations Transferring lessons into crisis planning globally 9

11 Determined to enhance deepwater safety Systematic Approach to Risk Management Documented Accountable Competent Assured Systematic and in control 10

12 Determined to enhance deepwater safety Continuing to enhance capabilities across critical capability areas Further standardizing the way we identify, quantify and review risks and execute risk action plans Further enhancing well control and other drilling safety standards, practices and capabilities Continuing to ensure availability of response equipment and consumables in deepwater basins where BP operates Sharing learnings and technology innovations to build global capabilities 11

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