Go strong. Services Description. DNV serving the energy industry THIS IS DNV

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1 DNV ENERGY main offices: THIS IS DNV Aberdeen Cromarty House Regent Quay Aberdeen AB11 5AR United Kingdom Tel: Antwerp Duboisstraat 39 b Antwerp Belgium Tel: Abu Dhabi The Towers Abu Dhabi Trade Centre Near Beach Rotana Hotel East Wing E 108 Abu Dhabi United Arab Emirates Tel: Bergen Johan Berentsensvei NO-5020 Laksevåg, Bergen Norway Tel: Calgary Bay Pegasus Way NE Calgary AB Canada T2E 8M5 Tel: Columbus 5777 Frantz Road Dublin, Ohio USA Tel: Copenhagen Tuborg Parkvej 8, 2nd Floor DK2900 Hellerup Copenhagen Denmark Tel: Houston Park Ten Place Suite 100 Houston, TX 77084, USA Tel: Kuala Lumpur 24th Floor, Menara Weld 76, Jalan Raja Chulan Kuala Lumpur Malaysia Tel: London Palace House 3 Cathedral Street London SE1 9DE United Kingdom Tel: Luanda Edificio Monumental Rua Major Kanhangulo, nº 290 2º Andar Luanda Angola Tel: Oslo Veritasveien 1 NO-1322 Høvik Norway Tel: Paris Centre BFI, Tour AREVA, Paris La Defense Cedex Paris France Tel: Moscow Business-Center Country Park 3rd Floor, Panfilova Moscow Region Khimki, Moscow Russian Federation Tel: Mumbai Emgeen Chambers, 10, C.S.T. Road, Vidyanagari, Kalina Santacruz East Mumbai India Tel: Rio de Janeiro Rua Sete de Setembro, o andar CEP Rio de Janeiro, R.J Brazil Tel: Shanghai House No. 9, 1591 Hong Qiao Road Shanghai China Tel: Singapore DNV Technology Centre 10 Science Park Drive Singapore Singapore Tel: Stavanger Bjergstedveien 1 NO-4007 Stavanger Norway Tel: DNV is a global provider of services for managing risk. Established in 1864, DNV is an independent foundation with the purpose of safeguarding life, property and the environment. DNV comprises 300 offices in 100 countries, with employees. DNV Energy is one of four business areas in DNV, alongside DNV Maritime, DNV Industry and DNV IT Global Services. Our vision is global impact for a safe and sustainable future. DNV Veritasveien 1 NO-1322 Høvik, Norway Tel: Fax: Services Description Go strong. DNV provides world-class expertise in technology, operations, management and risk. We combine our know-how into a professional service concept designed to safely improve the performance of your business. So you can go strong on all dimensions. Concept and design: COBRA Images: Front cover DNV and Getty Images, p1 DNV, p5 DNV and StatoilHydro, p14 Getty Images, p22 Getty Images, p32 DNV, p40 DNV, p50 Getty Images, p58 DNV. Production: Ressurs DNV serving the energy industry Contents Services Overview 4 Services summary 6 ENTERPRISE RISK MANAGEMENT u Safeguarding your business 13 SHE Risk u Addressing the new risk agenda 21 technology qualification u Securing confidence from all stakeholders 31 Verification u Striking the balance through a risk-based approach 39 offshore classification u Ensuring safe and reliable operation throughout the life cycle 49 asset risk management u Getting ahead of the game 57

2 DNV Energy SERVICES DESCRIPTION PAGE 1 DNV SERVICES TO THE ENERGY INDUSTRY u Enterprise Risk u SHE Risk u Technology Qualification u Verification u Offshore Classification u Asset Risk u Training u IT Risk u Certification The new risk agenda entails new challenges and opportunities for all players across the energy value chain. The demand for energy is increasing faster than ever before. At the same time the access to energy sources is getting increasingly difficult. With unprecedented concerns for energy supplies energy companies must venture into unchartered territories. Mounting local and global environmental challenges add to this already complex picture. All this spurs an unparalleled need for new technologies, work processes and business practices. This new risk reality belongs only to those who can master risk in all dimensions. services description Safeguarding and improving business performance target segments Through these services, our teams of highly qualified professionals deliver cutting-edge solutions to customers across the industry: u Deep and ultra deepwater field development u MOUs and FPSOs u Offshore and onshore pipelines u Natural Gas/LNG u Refining & petrochemicals u Power sector u Cleaner energy and renewables u Arctic operations & technology u Operations Excellence DNV offers the whole range of energy and process-related services. We provide world-class expertise in technology, operations, management and risk. But even more importantly, we combine our know-how into a professional service concept designed to safeguard and improve the performance of your business. Through our worldwide organisation we provide global impact, supporting you all the way from strategic considerations to decommissioning.

3 PAGE 2 DNV Energy SERVICES DESCRIPTION DNV Energy SERVICES DESCRIPTION PAGE 3 DNV assisting companies in the energy industry along the entire life cycle to safeguard and improve business performance Project phases: Strategy Feasibility & concept selection design construction installation & commissioning operation & life extension DECOMMISSIONING DNV energy deliveries: Enterprise Risk We provide a complete understanding of your organisation s total risk exposure and suggest how to manage these risks in an integrated way. SHE Risk We help you develop, implement, maintain and continually improve best practices in SHE management. Technology Qualification We help you ensure that new technology will function within specified limits and with an acceptable level of confidence. Verification Through a transparent, global and fully independent approach to verification, certification, quality surveillance and marine warranty, we help you reduce and manage risk, thereby increasing the likelihood of success. Offshore Classification We assure owners, authorities and other stakeholders that the facility complies with classification rules and requirements, enabling an optimum approach for both harsh and benign units. Asset risk management We support you in responsibly obtaining maximum value from your facilities, equipment and people without compromising safety or the environment.

4 PAGE 4 DNV Energy SERVICES DESCRIPTION services overview services overview DNV Energy SERVICES DESCRIPTION PAGE 5 The importance of a complete picture based on in-depth knowledge We offer our know-how through a complete service concept. Complexity, uncertainty and change are prevalent within all business functions. As a consequence, the risk profile of every enterprise is constantly changing and evolving. DNV can help you identify, understand and manage each of the component risks, in order to maximise opportunities and avoid or mitigate losses. Business strength in the energy industry has many dimensions. It s how you identify and capture opportunities. It s how you balance risk and returns. It s how you manage these risks in the face of growing complexity. It s how you push technology boundaries safely and cost-efficiently. It s how you step up to increasing environmental requirements and stakeholder expectations. It s how you operate in a highly competitive and truly global arena. DNV provides world-class methodology and expertise in technology, operations, management and risk. But even more importantly, the know-how is converted into a professional service concept designed to safeguard and improve the operator s and supplier s business performance. This is our service portfolio to the energy industry: u Enterprise Risk u SHE Risk u Technology Qualification u Verification u Offshore Classification u Asset Risk Our teams of highly qualified professionals deliver cutting-edge solutions with focus on the following industry sectors: u Deep and ultra deepwater development u MOUs and FPSOs u Offshore and onshore pipelines u Natural Gas/LNG u Refining and petrochemicals u Power sector u Cleaner energy and renewables u Arctic operations and technology u Operations Excellence The service portfolio is regularly reviewed and developed to determine its value to the market and fit with our strategic direction. Enterprise Risk Complexity, uncertainty and change are prevalent within all business functions. Consequently, every enterprise has a continually evolving and fluctuating risk profile. Successful management of risk can be boiled down to one key principle: the application of robust systems by competent people. DNV assists enterprises to identify, understand and manage each of the component risks, in order to maximise opportunities and avoid or mitigate losses. In doing so, we apply a range of qualitative and quantitative methods and techniques, in combination with advanced software tools. We strive to understand the specific issues impacting an enterprise, and then design a bespoke solution to address the hierarchy of risks. Safety, Health and Environmental Risk Mere compliance with legal requirements for SHE performance is no longer sufficient for forward thinking organisations. DNV s approach tightly links SHE requirements to asset performance. It seeks to achieve significant real improvements in SHE performance through enhanced design, asset reliability and focused operational controls. In this manner, emerging societal requirements and shareholder value are seen as convergent, not conflicting, demands. Major opportunities exist for step change in safety performance. Technology Qualification Services A fast-growing energy market spurs a demand for new technologies. However, you need to prove that your innovation actually works as intended. To develop new solutions and bring them efficiently, safely and credibly to the market, DNV offers a recognised Technology Qualification process. The process can be purely technical or related to the execution of a project. Verification Today, operators of oil, gas and energy installations face ever increasing demands for transparency and accountability, with respect to personnel safety, environmental protection and security of business critical processes. DNV s verification services assure, through independent and objective appraisals, that an activity, product or service is in compliance with specified requirements. This includes satisfying the expectations or requirements of owners, authorities and other stakeholders concerning safety, environmental protection and functionality of plants, products and operations. The approach DNV employs is risk based and transparent. We provide independent assurance throughout an asset s entire life-cycle from concept to commissioning, operations and decommissioning. Offshore Classification The aim of our classification services is to assure owners, authorities and other stakeholders that the facility complies with classification rules and requirements. We increase the project s value though an earlyphase involvement, ensuring that relevant rules and requirements are considered and hence avoiding costly changes later in the project. DNV has developed a unique set of technical standards and a flexible regime for classification. The process fits in well with relevant shelf-state verification regimes. DNV offers classification for building and operation of MOUs (Mobile Offshore Units), FPSOs (Floating Production, Storage and Offloading) as well as for the process of converting a tanker into an FPSO. Asset risk management Business unit managers and asset managers constantly look for new opportunities to improve operational results and control the risks associated with their operation. Further, Security of Supply is of increasing concern, forcing companies and governments worldwide to redefine the management of critical infrastructure. Owners that succeed in making good capital investment decisions and operate their assets more safely, reliably and efficiently than their competitors will be successful in the long run. DNV s solutions help operators look forward and manage these opportunities. By applying a range of qualitative and quantitative methods and techniques combined with advanced software tools, operators obtain maximum value from their facilities, equipment and organisation. Global reach We believe that the opportunities in the global energy market belong to those who approach them with a comprehensive understanding of risk. Equally important is the ability to implement solutions and uniform standards across geographies. Which is why DNV s global presence comprising 300 offices worldwide is so highly valued by the international energy sector. DNV s global presence is highly valued by our customers.

5 PAGE 6 DNV Energy SERVICES DESCRIPTION services summary services summary DNV Energy SERVICES DESCRIPTION PAGE 7 Enterprise Risk SHE Risk Company-Wide Risk In a challenging business environment, effective risk management is a fundamental prerequisite for success. The best managers view their business from an overall perspective and govern their risks across functional and organisational borders. DNV has developed a CwRM system where technology, activities, systems and business environments are seen as a whole and the risk pictures of relevance are established at all organisational levels. Risk-based Decision Support DNV offers a full range of services to support clients, ranging from early stage hazard identification, consequence assessment, likelihood estimation, through to advanced riskbased decision support, and all the steps in between. These services meet compliance needs and go beyond when necessary to assure appropriate investment and management of hazards protecting staff, the public, the environment, the asset, and the corporate reputation. Integrated Risk Investments involve significant uncertainties from a wide range of sources which make impact at different points in time, and often are very different in nature (e.g. technically, economically, market, credit, performance, etc). Quantifying and assessing the total risk of the investment is the objective of DNV s integrated risk management approach. Systems and performance Measures Every company has a management system. The challenge is to develop, implement, review and improve systems to enhance business performance. DNV has over 25 years experience helping organisations realise the benefits of an effective management system. We set the standard in helping clients achieve their business objectives. Project Risk Effective project management demands rapid decisions about uncertain future events, often based on inadequate information. Failure to manage the right variables at the right time during the project may result in overspend, delays and poor delivery. Project risk management seeks to anticipate the development of projects and to implement suitable controls early enough to positively influence the outcome. DNV helps clients manage project risks through the delivery of advanced project risk management services. Environmental Models and Emergency Planning and Accident Investigation Pressure is growing on all organisations to effectively manage the environmental and social impact of their operations. Environmentally responsible conduct is now recognised as an essential part of good business. DNV manages today s environmental issues and helps deliver experience-based solutions to solve the challenges facing all environmental stakeholders. Effective planning for emergencies and other undesired events is an essential part of good business management. Companies need to prepare for situations that could cause potential losses to people, assets, income, company reputation or harm to the environment and society at large. DNV, as an integral part of its risk management services, assists companies in developing and maintaining effective response plans, in order to control their risk exposure. Change and Process Improvement In today s dynamic and demanding business environment, a company s ability to align its organisation and processes to the demands of its customers is essential to achieve business success. Recognising and managing change while improving the business delivery processes is not only critical to business survival but also a catalyst for growth. Through our services for change management and process improvement, we assist organisations in achieving their business objectives through process alignment within a controlled change environment. advanced simulation and modelling The energy industry is expanding into new frontiers, often in extreme environments or scale of operations (arctic areas, LNG, deep water). Standard analysis methods do not demonstrate the effects of these changes with sufficient resolution and there is a need for accurate simulation able to represent higher complexity and greater detail. This is achieved for fluid flow, fire and explosion analysis by applying Computational Fluid Dynamics integrated with advanced risk models. Dynamic structural response issues are addressed with Finite Element Methods. Due Diligence Due diligence is an investigation or audit prior to an investment transaction. It confirms that all material facts are correct and therefore reduces the probability of unnecessary harm to either party or entity involved in the transaction. Companies considering acquiring, investing or providing project finance often commission independent expert consultants to provide due diligence services. At DNV, we provide an improved understanding of the risks and risk mitigation measures, thereby contributing to improved investment decisions. Human Factors and safety culture For controlling risks, preventing accidents, incidents and ill health, important efforts are taken to develop sophisticated management systems and technical solutions. But without addressing the human element and obtaining staff buy-in, the best systems will fail to deliver improvement. DNV works closely with clients helping to design processes and work systems that accommodate people issues carefully and systematically, both through development of positive cultures and through minimization of human error. Operational Safety The key current issue in HSE is one that has been persistent for over 20 years reducing the number of major accident events. Highly publicized major accidents both onshore and offshore demonstrate that industry successes in improving occupational safety have not been mirrored in major accident performance. Most of these accidents did not result primarily from deficient design, rather it was inadequate operational safety not sufficiently addressing specific threats inherent in the operation. DNV applies the latest techniques to ensure that facilities are aware of all key operational and mechanical integrity requirements and that risks are rigorously controlled.

6 PAGE 8 DNV Energy SERVICES DESCRIPTION services summary services summary DNV Energy SERVICES DESCRIPTION PAGE 9 Technology Qualification Verification Technology Qualification New technology should either enable a project to be realized or enhance its value. In either case the operator needs to be confident that the technology will perform as intended. The technology developer needs to build the operators confidence in the technology, who again needs to build the confidence of the other stakeholders in the project before a decision to implement it can be taken. Building this confidence requires a systematic risk-based qualification process which clearly documents the performance of the technology. Risk-based VErification of field developments Verification provides the required assurance towards stakeholders and regulatory authorities that projects are implemented right the first time. We provide you with the ability to focus your verification effort where the contribution is cost effective by employing a risk based verification approach. Our independent and competent appraisals of your field developments provide the required assurance that they are designed, constructed and installed in accordance with project objectives. Technical Analyses and Simulations In complex projects, it is essential to simulate how a structure or a system responds to certain conditions. To support this, DNV provides a wide range of analyses and simulation tools. Risk-based verification of pipelines, risers and subsea facilities DNV s transparent and fully independent approach to verification on pipeline, riser and subsea facilities will help to reduce and manage risk, thereby ensuring successful subsea projects. Technical Risk and Reliability Analysis Today, systems are becoming increasingly complex, followed by a progressive impact on project risk and production availability. It is therefore imperative that the technology s risks and implementation are handled appropriately. To deal with this, DNV offers a wide range of risk and reliability services to manage both technical and project risk. Risk-based verification of process systems Systems critical to process and safety may also require special attention during the in-service phase. These systems may need to be independently verified to ensure that integrity and/or compliance is continuously maintained. Materials Technology Many component or system failures experienced in the energy industry are related to material selection or quality issues. DNV therefore offers a broad range of services within materials technology and laboratory testing worldwide. Product and equipment verification/certification With process systems or equipment delivered from around the world, it is necessary to verify them against project and regulatory requirements before they arrive at site for subsequent integration or use. Ensuring that equipment and systems arrive on site with the correct specifications and certificates is key to ensuring that unnecessary delays are avoided and that the items are used safely. Laboratory Testing DNV supports the global energy and shipping sectors with state of the art laboratory services, offering a wide range of testing capabilities, combined with strong multidisciplinary knowledge and experience. Marine Operations and warranty Accidents or unexpected occurrences during temporary phases involving offshore marine operations can have devastating financial and safety consequences. This fact alone emphasises the importance of a well-defined marine operations verification scope, a recognised technical reference, competence and experience, and quality of service.

7 PAGE 10 DNV Energy SERVICES DESCRIPTION services summary services summary DNV Energy SERVICES DESCRIPTION PAGE 11 Offshore Classification Asset Risk Pre-contract services Getting things right the first time is key in today s hectic business environment. Designing and building offshore drilling or production units is no exception. The earlier errors are detected, the lower the cost of change. DNV s pre-contract services offers valuable insights into key challenges up-front, thus significantly reducing the downside risk in the projects. Assessment and benchmarking of asset operations If you want to know your assets strengths and weaknesses, you have to ask tough questions. We in DNV live by our corporate values, which stress integrity and objectivity. We can help you ask the right questions to discover real performance, compare it with industry best practices and identify improvement opportunities. Design Approval Operating MOUs and FPSOs requires zero tolerance to failure. At the same time one must not over-specify requirements. DNV s classification services assure owners, authorities and other stakeholders that the facility complies with classification rules and requirements, independent of location. A flexible regime ensures that appropriate rules and criteria are used and that an optimum design verification approach is applied. Asset Operations Today s demanding business environment requires better and faster decisions to meet business goals and stakeholder expectations. Cross-disciplinary work processes and extensive cooperation with partners must be managed through common asset operation strategies and management systems supporting efficient collaboration and decision processes. In supporting the management of asset operations, we recognise the need for continuous improvement and change management while at the same time improving the business delivery processes. Fabrication SUrvey and commissioning DNV will assess the set-up and control at the yard and major sub-contractors prior to start of fabrication. We will carry out frequent surveys and audits to ensure that approved drawings and plans are being followed. The aim of the activities is to confirm that the unit is built in accordance with DNV class rules. Production optimisation The world is changing at an ever-increasing pace, and more and more of the changes are driven by technology. The benefits of new technology are often higher revenues, lower CAPEX, reduced OPEX and/or improved SHE performance. DNV helps clients analyse the potential of new technology before significant investments are made. We design processes to manage key uncertainties during the implementation. DNV also works closely with clients to improve production capacities and system regularity in the operations phase. Certification of Material and Components (CMC) Systems or equipment delivered from around the world require certification to meet class and regulatory requirements before they arrive at the yard or site for subsequent installation and integration. Ensuring that equipment and systems comply with correct specifications and have the right certificates is key to ensuring that unnecessary delays are avoided. Maintenance and inspection management In a challenging business environment, the assets must generate higher return on investments. DNV helps build customised solutions to optimise maintenance and inspection activities to maintain and improve the safety integrity of the assets. In-service surveys Confirming that an offshore unit meets applicable requirements at all times is key to ensuring safety of lives at sea. DNV develops a tailor made In-service Inspection Program (IIP) for each mobile offshore unit, and carries out regular surveys to ensure that the unit is properly maintained. Reported damages such as cracks, serious corrosion, indentations etc. are logged in a central damage database. The data are used for continuous improvement of our services to owners and operators of offshore units. development of solutions to failures Materials technology, combined with the understanding of degradation processes in different operating conditions, enables us to design durable constructions and components. Still failures may occur, leading to production loss and threats to life and the environment. DNV is a credible partner with highly technical expertise that can reveal root causes and create innovative solutions to reduce risk of material damages with subsequent consequences to business interruptions and economical loss.

8 Enterprise Risk Company-wide Risk p 16 Integrated Risk p 17 Project Risk p 18 Change and Process Improvement p 19 Due Diligence p 20

9 enterprise risk management DNV Energy SERVICES DESCRIPTION PAGE 15 Enterprise Risk Safeguarding your business Complexity, uncertainty and change are prevalent within all business functions. As a consequence, the risk profile of every enterprise is constantly changing and evolving. DNV can help you identify, understand and manage each of the component risks, in order to maximise opportunities and avoid or mitigate losses. The techniques used to manage risks will vary depending upon the nature of the risks and the level at which they are being addressed. As a result, generic solutions can rarely be applied. is to understand the specific issues impacting an enterprise, then to design a bespoke solution to address the hierarchy of risks, both in terms of people and systems. With our competent personnel and global pan-industry experience, we can design customized solutions without having to reinvent the wheel. We believe that the successful management of risk can be summed up in one key principle: the application of robust systems by competent people. OUR EXPERTISE Enterprise risk management enables you to systematically identify, balance and control your portfolio of business risks, aligning your risk profile with your risk appetite. Our solutions u Company-wide risk management u Integrated risk management u Project risk management u Change management and process improvement u Due diligence leads to the robust management of risks throughout all phases of an enterprise s activities. This results in benefits such as: u A clear understanding of the risks which could impact the enterprise and how these may be manifested u Robust and well implemented systems for managing the risks u Employees who integrate risk management into their normal activities u Demonstration of risk management performance to stakeholders u Confidence that the risk profile is understood and being monitored in accordance with the enterprise s risk management plan DNV understands risk at all levels from the detailed technical through to long-term business strategy. Our skilled facilitators work with your entire organisation to provide the desired systematic overview. Strategy Feasibility & concept selection design construc tion instal lation & commis sioning operation & life extension DECOM MISSIONING Combining technical and business understanding we focus on delivering valueadding solutions. Our cross-disciplinary teams of highly qualified personnel serve clients around the world using state-of-the-art risk technology. Enterprise Risk Company-wide Risk Integrated Risk Due Dilligence Project Risk Change

10 PAGE 16 DNV Energy SERVICES DESCRIPTION enterprise risk management Company-wide Risk Integrated Risk Project Risk Change and Process Improvement Due Diligence enterprise risk management DNV Energy SERVICES DESCRIPTION PAGE 17 Company-wide Risk Integrated Risk Project Risk Change and Process Improvement Due Diligence Company-wide Risk In a challenging business environment, effective risk management is fundamental to success. The best leaders look at their business as a whole and then manage their risks across functional and organisational borders. Overall risk management involves identifying all aspects of importance for the business risk exposure. This is a prerequisite for effectively managing limited resources according to the risk appetite of the business. DNV has developed a Company-wide Risk system (CwRM) in which technology, activities, systems and business environments are seen as a whole, and a picture of the relevant risks is established at all organisational levels. In this way, we ensure both that decisions are based on a solid foundation and at the right level, and that the solution secures and develops value. The risk management policy, the risk management process and the risk management structure are central elements in our CwRM system. The policy gives us the principles and is the organisational units guide for carrying out risk management. The process is the clockwork in the system. It ensures that the mapping of risk exposure, preparation of plans for treating and controlling risk and tracking it are carried out periodically and systematically. The structure defines the organisational layout for risk management, including arenas, roles, responsibilities and authority. The structure ensures a living process where the risk is filtered, adjusted, communicated and agreed upon. Typical services include: u Risk management aspects of corporate governance u Assessment of risk picture u systems design, implementation and measurement Overall and effective risk management helps companies to take advantage of business opportunities. It increases their competitive strength and reduces the time management spends on fire fighting. The expected reduction in risk and the increased ability to achieve business goals will strengthen stakeholder trust in business results, management and processes. Over time this will: u Safeguard life, property and the environment u Enhance value-creation u Strengthen the reputation of the company Integrated Risk Investments involve significant uncertainties from a wide range of sources. These uncertainties appear at different points in time, and often differ in nature, involving technical or economical elements, the market, credit, performance and more. Assessing the total risk of the investment is the objective of DNV s integrated risk management approach (IRM). Assessing the total uncertainty and thus the total risk of an investment is the objective of DNV s Integrated Risk Approach (IRM). Our IRM approach is different from the traditional discounted cash flow approach, which integrates all risks into the discount rate. Instead, we model the uncertainties into cash flow elements, such as costs, availability, schedule, etc. This adds to understanding of the impact of risk drivers, and offers a better starting point for managing those risks in the investment project that typically follow the investment. This approach does not replace detailed analyses. Rather, it provides a way to aggregate data with the uncertainty that arises from the disciplines. In this way the approach handles different levels of detail. IRM is a work process and methodology for analysing investments with respect to total uncertainty. IRM describes how one should develop integrated models to support relevant investment decision indicators, such as Net Present Value (NPV), Internal Rate-of-Return (IRR), Break-even periods, etc. The integrated models cover all phases of the investment in a life-cycle perspective. Typical services include: u Integrated value chain studies u Concept selection u Flexibility and robustness of different concepts or investment alternatives u Cost-benefit assessment of new technology u Value of new information and real options The integrated approach allows for a full probability distribution for the decision indicators, and covers both downside and upside risk. The integrated model allows all relevant uncertainties and their subordinate effects to be included. Thus it provides a more accurate description of the total risk. Furthermore, the major risk drivers and their underlying causes and knock-on effects can be analysed. IRM is specifically designed for studies of: u Entirety approach (total uncertainty upside and downside) u Integrated technical-economic studies u Concept selection u Flexibility and robustness of different concepts or investment alternatives u Cost-benefit assessment of new technology u Value of new information u Valuations of real options fpso operator: Implementing a company-wide risk and opportunity framework Our client operates FPSO vessels, both shuttle tankers and storage tankers. DNV was asked to help it raise the awareness level and the processes in risk and opportunity management. This request followed a number of successful business risk projects for the company. The project was based on a thorough survey in which employees from six departments of the client organisation answered 50 questions on important enterprise risk management aspects. Everything from methods and reporting lines to risk mitigation and cultural aspects was evaluated. The assessment was done according to the DNV Framework for Enterprise Risk, which provided an overview of missing processes, methods and tools that needed to be implemented. Based on this a tailorde risk management framework was developed and implemented. Gaz de France: Concept selection on Gjøa Gjøa is a combined gas and oil field on the Norwegian Continental Shelf. The development is under great scrutiny for two reasons. Firstly, it is a very large investment. Secondly, it will be the first production unit operated by Gaz de France in Norway. On its own, Gjøa would struggle to turn a profit. However, the development also includes a tie-in from the neighbouring Vega field. As the gas from Vega has a high CO 2 content, Gjøa will need to produce enough gas to dilute it to an acceptable level. As the field is developed with a depletion strategy, this need for early gas may lead to lower oil recovery. The exact phasing of the oil and gas wells is therefore critical to the field s economic success. DNV helped Gaz de France during both the initial concept screening phase, and concept selection and project sanctioning phase. An integrated risk assessment model to support the concept selection was developed. This model included all main contributors to the project s cash flows, such as reservoir and production, Capex, OPEX, capacity constraints, tax models, depreciation models, and more. The integrated model calculated important indicators for the concept selection, such as net present value and break-even oil price, among others.

11 PAGE 18 DNV Energy SERVICES DESCRIPTION enterprise risk management Company-wide Risk Integrated Risk Project Risk Change and Process Improvement Due Diligence enterprise risk management DNV Energy SERVICES DESCRIPTION PAGE 19 Company-wide Risk Integrated Risk Project Risk Change and Process Improvement Due Diligence Project Risk Effective project management demands rapid decisions about uncertain future events based on often inadequate information. Failure to manage the right variables at the right time during the project may result in project overruns, delays and poor delivery. Project risk management seeks to anticipate the development of projects and implement suitable responses early enough to positively influence the outcome. DNV helps clients manage project risks through the delivery of advanced project risk management services. When working with client teams to manage project risks, activities typically include: u Gaining a working knowledge of the project, its participants and the challenges it faces. We work with the client to determine the key variables that drive project risks. u Leading the project team through a process to identify and characterise the project risks, and to establish suitable measures to manage them. u Analysing the project and the risk contributors to determine key threats to the project and how to manage these threats. u Formally defining the performance expectations of the risk management measures and assigning actions to maintain standards throughout the project. u Actively monitoring how the parties involved in the project manage risks by tracking the action plans. This hastens actions to correct errors and ensures that the project responds appropriately to changing circumstances. u Collecting data on the risk management activities and rapidly informing the project manager of any major concerns. We also advise the project manager on any opportunities for improvement that have been identified. Typical services include: u Cost and schedule risk assessments u Project risk management implementation u Project risk management tools u Project risk management training PRM proactively identifies issues that may influence your projects success. This greater risk awareness creates confidence for all stakeholders. Using our global industry experience, DNV works with you to assess project issues, select and apply appropriate PRM solutions to improve project performance, and provide stakeholder confidence. We will provide: u Solutions designed to meet the specific concerns of clients and stakeholders u Increased confidence in ability to deliver the project according to the plan u Increased availability of information required for the development of contingencies if necessary Change and Process improvement In today s dynamic and demanding business environment, a company s ability to align its organisation and processes to the demands of its customers is essential to achieve business success. Recognising and managing change, while at the same time improving the business delivery processes, is not only critical to business survival, but also a catalyst for growth. Leaders frequently face tough demands from stakeholders for improved business performance. Stakeholders demand: u Reduced operating costs, whilst increasing output and without compromising safety or quality u Strategic changes based on external influences u An organisation aligned with its strategic goals u A more customer-focused and responsive organisation u Continual improvement of the delivery processes In most organisations, a change of structure, operations or even location is inevitable and often desirable, in order to meet ever increasing customer demands and expectations. In addition, performance strongly depends on the design and application of the delivery processes. Process improvement initiatives are undertaken to ensure their effectiveness. Therefore, Change and Process Improvement (CMPI) are inevitably linked; many process improvement projects result in change. Some improvements are larger than others. The methods needed to achieve them will vary according to the results required, the organisation, its culture and the type of process. Our risk-based methodologies take into account the company s risk appetite and maximise the benefits of these initiatives. DNV provides critical input to change management and process improvement initiatives, including: u Business process evaluation, alignment and improvement u The creation of a change vision u Leadership coaching u Employee communication strategies and methods u Organisational development, including resource management, asset management and cultural issues u Balanced Scorecard and Business Excellence systems to achieve strategic objectives and link enablers and results u Assessment of existing systems and their effectiveness u Design of new processes and support systems u Assistance with implementation of agreed and planned solutions Effective Change and Process Improvement bring about real benefits: u Greater focus on areas important to the customers and the organisation u Improved delivery times and cost efficiency u Focus on and improvement of customer perceived quality u A motivated workforce u Increased sales to existing customers u Improved profitability and stakeholder satisfaction petoro as: Investment under uncertainty Snøhvit is Europe s first facility to export liquefied natural gas (LNG). The Snøhvit project faces two major risks. It demands substantial capital expense before it ever generates revenue, and it involves significant uncertainties. DNV developed an integrated investment-at-risk model that gives a quantitative assessment of the economical and time related consequences associated with the uncertainties in the value chain. Economical indicators were calculated before and after tax, when this was relevant This model increased our client s understanding of schedule, cost, reservoir and technology uncertainties and their influence on net present value (NPV), internal rate of return (IRR), payback period, break-even product price and time-of-first-gas (TOFG). As a result, our clients could put extra focus on their critical factors throughout the project execution phase. DUTCH POWER COMPANY: BEHAVIOURAL CHANGE PROGRAMme TO STIMULATE RISK BASED BEHAVIOUR INSTEAD OF RULE BASED BEHAVIOUR BY IMPROVING EMPLOYEES RISK COMPETENCE Based on experiences from the past, the client identified behaviour as one of the major direct causes for incidents and accidents as well as an important restrainers for continuous improvement In stead of giving in to the urge to create more regulations and procedures they realised a cultural change with respect to individual behaviour is needed. In order to improve the level of risk competence (consisting of risk perception, acceptance, commitment to norms and rules and knowledge & skills) DNV developed in close cooperation with the client easy to use material like a booklet with theme material, posters and roll-out presentations. Coaches were trained and feedback is generated which is used in the further development of the program. In order to create and maintain a sense of urgency, programme ownership and program responsibility is held within the client. DNV acted as facilitator. The programme has resulted in improved at risk behaviour resulting in less incidents, better risk communication and improved awareness. The programme started in 2004 and is still running.

12 PAGE 20 DNV Energy SERVICES DESCRIPTION enterprise risk management Company-wide Risk Integrated Risk Project Risk Change and Process Improvement Due Diligence SHE Risk services summary DNV Energy SERVICES DESCRIPTION PAGE 21 Due Diligence Companies that plan to acquire, invest or provide project finance often commission independent expert consultants to provide due diligence services. At DNV, we provide an improved understanding of the risks and risk mitigation measures, which leads to improved investment decisions. With teams that combine business and technical expertise, we help the client build a comprehensive understanding of business challenges, and provide independent reports, monitoring and advisory services. Key areas of competence include: u Environment u Health u Safety u Facility Design u Site Assessment u Permits u Licenses u Reserves u Asset Valuation u Project Execution and Scheduling u Capital and Operating Cost Assessment u Operating and Maintenance Philosophy u Project Performance u Contracts and Purchase Orders u Economic Analysis DNV regularly acts as an independent consultant, independent engineer or technical advisor on behalf of its clients. Typical services include: u Independent expert advise on technical or commercial matters u Improved understanding of the risks as well as risk mitigating actions u Monitor the condition, progress or performance of an entity involved in the transaction Our experience DNV is recognised as one of the world s leading international providers of due diligence services to the oil, gas and petrochemical industries. Clients include energy companies, petrochemical companies, investment companies and finance institutions. We have experience with drilling units, light well intervention vessels, fixed or floating oil/gas production platforms and terminals, LNG export or import terminals, pipelines, subsea developments, a number of different oil and product tankers and LNG carriers, as well as petrochemical plants. We also work with clients in other sectors, particularly within retail, leisure, food, transport, support services, health, bio-tech, public and utilities. DNV provides clients with: u Independent expert advice on technical or commercial matters u Improved understanding of the risks, as well as risk mitigating actions u In-house technical and business expertise u A number of consultancy services from a single source Risk-based Decision Support p 24 Systems and Performance Measures p 25 Environmental Models and p 26 Emergency Planning and Accident Investigation p 27 Advanced Simulation and Modelling p 28 Human Factors and Safety Culture p 29 Operational Safety p 30 Lead Arrangers: Due Diligence DNV is renowned among Lead Arrangers that provide construction or project finance for oil and gas projects. They know us as a leading independent Technical Consultant, performing technical, project management and commercial due diligence on projects, and thereby protecting the interests of the finance consortiums. Applying our extensive experience, we identify existing or potential technical, economic and associated issues that may pose a risk to the project s technical and economic viability, and therefore represent a risk to the Lead Arrangers. DNV regularly advises Lead Arrangers on risk-mitigating actions. These increase the chances that a borrower will be able to meet its contractual requirements. Prior to signing the Facility Agreement, DNV will primarily advise on the design parameters, specifications and scope, execution plan, budget, schedule, etc., and provide the Lead Arrangers with documentation to support their financing decisions. During the execution of the project DNV will report to the Lead Arrangers on various aspects of the project at various major milestones. These are milestones that trigger additional funding as long as satisfactory performance is confirmed by DNV. DNV s experience includes drilling units, production units, LNG terminals, decommissioning vessels, and more.

13 SHE Risk DNV Energy SERVICES DESCRIPTION PAGE 23 Strategy Feasibility & concept selection design construc tion instal lation & commis sioning operation & life extension DECOM MISSIONING SHE Risk Risk-based Decision Support Environmental Models and Systems Emergency Planning and Accident Investigations SHE Risk Addressing the new risk agenda Advanced Modelling and Simulation Human Factors and Safety Culture Operational Safety A new risk agenda is emerging, bringing with it new demands on your business and how it is managed. Stakeholders undoubtedly expect clear management of safety, health and the environment. But mere compliance with legal requirements for SHE performance is no longer sufficient for forward-thinking organisations. At DNV, we can help you safely and responsibly improve your business performance. balances economical, social and environmental objectives. The traditional idea of value creation, is redefined from purely maximising economic return to the shareholders, to the wider agenda of honouring the interests of society at large. By applying risk based methods, in-depth industry insight and advanced software tools, we ensure that threats are identified and risks are managed in a cost-effective manner. DNV works with you to develop, implement, maintain and continually improve best practices in managing safety, health and environmental (SHE) risks. We do our utmost to fully understand the specific issues of each project. We design our approach in a manner totally governed by these issues, applying the full range of DNV capabilities and experience. Our preferred approach is to be an integral part of your organisation during engagement. Our expertise DNV combines technical expertise and advanced risk methodologies with management consulting skills to form a new and different type of consulting service provider. Our cross-disciplinary team of highly qualified engineers, economists, psychologists and human factors experts, supported by an excellent portfolio of risk assessment software, provides a unique ability to offer risk management services to cover your needs. We serve international clients from offices around the world. We invest heavily in research and development, working closely with industry and safety, health and environmental authorities. Our solutions u Risk-based Decision Support u Systems and Performance Measures u Environmental Models and u Emergency Planning and Accident Investigation u Advanced Simulation and Modelling u Human Factors and Safety Culture u Operational Safety Our SHEQ management consultants apply their experience to help you identify, understand and manage the sources of risk within your organisation. Their advice ensures that you make the appropriate strategic and operational decisions related to SHEQ issues. Our strong modelling capability helps us develop solution options toether with you and select the optimal management response. We assist clients to manage their SHE risks throughout the life cycle of their projects and operations. From idea conception through option screening, development, operation, change and culmination, we deliver tactical business support. Our customised and integrated solutions can help you: u Increase safety and environmental performance u Ensure sustainable development u Improve financial performance u Enhance reputation Working with us, you share in DNV s reputation for independence and integrity, and our worldwide network provides you with up-to-date, best-practice advice.

14 PAGE 24 DNV Energy SERVICES DESCRIPTION SHE Risk Risk-based Decision Support Systems and Performance Measures Environmental Models and Emergency Planning and Accident Investigation Advancecd Simulation and Modelling Human Factors and Safety Culture Operational Safety SHE Risk DNV Energy SERVICES DESCRIPTION PAGE 25 Risk-based Decision Support Systems and Performance Measures Environmental Models and Emergency Planning and Accident Investigation Advancecd Simulation and Modelling Human Factors and Safety Culture Operational Safety Risk-based Decision Support DNV has been a global leader in the development of robust riskbased assessment and decision support methods. These address Hazard Identification, Consequence Assessment, Likelihood Estimation and Risk-based Decision Support. Risk based processes deliver well beyond compliance requirements, and often at less overall life-cycle cost through innovative solutions. Our Approach Our specialists include globally recognized experts. They use suitable methods and a mixture of in-house and industry-standard modelling tools to analyze problems to a depth that matches their potential risk and complexity. The main elements of our services relate to all of the parts in a traditional risk diagram, and they can be applied at any stage in a project lifecycle: u Conceptual Design u Detailed Design u Approvals and Public Meetings u Operations Phase u Facility Modifications and Improvements u Abandonment Typical services include: u Identification of all credible hazards or threats to operations, along with a list of critical control measures and development of a risk register u Layers of Protection Analysis and Safety Integrity Levels u Consequence assessments, in order to evaluate the impact of potential undesirable events including fire and explosion assessments, toxic gas dispersion and business interruption u Likelihood estimation for potential events based on historical data and frequency modelling u Risk assessments at different levels of detail (qualitative, semi-quantitative and quantitative) u Development of risk-based and costeffective solutions and decision support together with our customers u Training in risk assessment approaches for industry representatives DNV uses in-house developed tools, several of which have become industry standards, such as PHAST, SAFETI, LEAK, SOQRATES, WOAD and Orbit SIL. Together with DNV Software, we are deeply involved in the development of new computer tools for risk analysis the next-generation risk framework which will step beyond the design and safety engineer s desk and out into the real workplace. DNV brings together competence and a wide range of disciplines to assist in critical decision processes. Throughout all stages of an investment, from idea conception and concept selection, design and operation to decommissioning and recycling, stakeholders demand that risks are understood and effectively managed. While primarily focused on the assessment of risk to personnel, studies can normally be extended to assess financial risks associated with asset damage and loss of production. We recognise the need for cost-effective risk management and draw on previous experience and our integrated services to deliver value to our clients. By providing a range of tailored consequence assessment principles and techniques, we enable our clients to understand their threats and opportunities. These include: u Identification of hazards u An understanding of business performance from the perspective of risk exposures u Quantification of consequences and risks u Increased understanding of risk drivers u Engineering decision support to determine optimum solutions for modifications u Identification of cost-effective risk reduction measures u The transfer of lessons learned from other industries and companies systems and performance Measures Every company has a management system. The challenge is to develop, implement, review and improve systems to enhance business performance and align to developing industry norms. DNV has over 25 years of experience helping organisations realise the benefits of an effective integrated management system. Our systems incorporate current best practices and align safety, environment and quality objectives. We also modify systems to accommodate emerging industry initiatives such as integrating performance metrics for process safety. Atofina: SHE improvement DNV develops and implements management systems and performance standards to help you improve your business performance. A management system is a framework of controls for managing occupational health, safety, environmental impact, quality and other business risks. It focuses upon continual improvement and involves a series of interconnected control activities. To be effective, a management system must incorporate clear performance standards that specify what has to be done, when, how often and by whom. The management system should implement best practice performance standards run by committed personnel striving for excellence in all areas. Using proven risk methodologies, we work together with you to identify and evaluate opportunities and threats. Prioritised risk profiles are used to identify key processes in the existing management system, so that resources can be refocused on critical processes and control activities. Responsibilities are defined and communicated through policies, expectations, procedures, practices, rules and training programmes, self assessment and audit tools. DNV s management system portfolio includes services based on isrs7, a world-leading system for measuring, improving and demonstrating safety, environmental and business performance. isrs7 helps you manage your risks. It ensures and improves the health of your business processes, provides management with advanced decision support and builds your reputation. It also places a focus on business results and helps you establish a competitive advantage. Performance standards should be risk-based in order to focus management s efforts on the features of your operations where the hazard potential is greatest. We help you develop these standards and prepare systems both to maintain them and demonstrate this performance. At the very least, all organisations must follow applicable legislative and industrial SHE standards. We can help you identify these requirements, and demonstrate compliance with specific national and international requirements in every part of the world where you operate. Your business performance can improve year-on-year by enhancing your management system and exploiting your experience. All management systems should contain sound strategic and tactical planning functions, accompanied by appropriate reviews that measure progress and adjust to continual improvement. We strive for excellence in company culture and behaviour, as these are vital to optimise management performance. We use behavioural programmes to facilitate this process. We have a track record of strengthening organisations by applying a range of integrated techniques, which include strategic planning, goal-setting, training, coaching, workshops, benchmarking and auditing. Atofina is the global chemicals subsidiary of TOTAL and has extensive production facilities in Europe, the USA and Asia. DNV, in conjunction with Atofina, is delivering a five-year programme of audits and training to improve SHE performance. The initiative is based on the International Safety Rating System (ISRS). ISRS is a globally recognised benchmarking tool for assessing SHE performance that has a proven record of delivering SHE performance improvement. In conjunction with the programme of baseline audits, DNV is delivering Modern Safety (MSM) and ISRS auditor training sessions to Atofina personnel. This enables them to drive the ISRS programme forward. To address Atofina s requirement for a strong focus on major accident prevention, DNV and Atofina have developed a bespoke version of ISRS known as the Atofina Integrated System (AIMS), which contains an enhanced Process Safety content. The extensive audit and training programme is delivering valuable SHE assurance for Atofina senior management, and provides a tool that improves future SHE performance based upon a proven approach.

15 PAGE 26 DNV Energy SERVICES DESCRIPTION SHE Risk Risk-based Decision Support Systems and Performance Measures Environmental Models and Emergency Planning and Accident Investigation Advancecd Simulation and Modelling Human Factors and Safety Culture Operational Safety SHE Risk DNV Energy SERVICES DESCRIPTION PAGE 27 Risk-based Decision Support Systems and Performance Measures Environmental Models and Emergency Planning and Accident Investigation Advancecd Simulation and Modelling Human Factors and Safety Culture Operational Safety Environmental Models and Pressure is growing on all organizations to manage the environmental impact of their operations effectively. Environmental responsibility is now recognized as an essential part of good and sustainable business. DNV assists companies in environmental issues and helps deliver experience-based solutions to solve the challenges facing all environmental stakeholders. DNV provides an integrated risk management service to all environmental stakeholders, whether they be businesses, governmental bodies or the public. By understanding the issues from all perspectives and leveraging our considerable industry experience, we help develop effective and sustainable solutions. Our independent position ensures that our guidance and recommendations accurately reflect the true status of an activity or operation. We provide many interrelated services in the area of environmental risk management including: Environmental Assessment u Environmental impact assessment u Environmental risk analysis u Dispersion and fate modelling u Impact and risk management planning u Environmental status, impact and monitoring u Sediment and soil remediation. Biodiversity u Ecological impact assessments u Biodiversity and community studies u Resource and sensitivity mapping u General advisory support. Emergency Preparedness and Response u Oil spill contingency analysis u Spill preparedness and response planning u Oil spill incident decision support systems Life Cycle Assessment u An interdisciplinary approach to providing quality decision support from concept selection and operations to decommissioning and recycling DNV has a global presence and a reputation for integrity, independence and client satisfaction. We provide a multi-disciplinary approach to environmental management that integrates our environmental and business focus to deliver sustainable, effective and practical solutions. DNV offers an unparalleled understanding of environmental issues, both at a local and global level. We focus on providing risk-based decision support that targets the major risk drivers. We can not only deliver best practice assessment-based results, but also convey and communicate them to specific audiences. Environmental issues generate strong emotions and managing risk perceptions is an integral and important part of our service. Our recognised independence and competence in the area of environmental management equate to credibility and integrity, thereby adding to our clients reputations and environmental performance. Emergency Planning and Accident Investigation Effective planning for emergencies and other undesired events is an essential part of good business management. Companies need to prepare for situations that could cause potential losses to people, assets, income or the company s reputation or harm to the environment and society at large. As an integral part of its risk management services, DNV helps companies to develop and maintain effective response plans to control their risk exposure. DNV works together with you to gain a thorough understanding of your operations, threats and risk management needs. We help you to improve the effectiveness of your emergency planning, response and investigation capabilities. The service covers all aspects from plan generation, communication and drills to follow-up of major incident investigations. Key services include: Scenario Identification We help identify the most appropriate scenarios for emergency planning and areas where the level of emergency preparedness is not satisfactory. The analysis is normally based on a risk assessment; this ensures that emergency planning matches the range of possible events, with increased focus on high risk events. Planning and Resources We work with you to develop effective emergency plans and response strategies, using tools such as pre-fire planning and consequence modelling. This includes fitting the emergency response resources to suit the intent of the plans. Environmental Emergencies DNV develops oil spill and other environmental emergency response plans using numerical tools. We model source terms, transport and fate of accidental releases and environmental effects. Our expertise in technology and management methods prepares you to respond effectively to such emergencies. Major Accident Investigation and Crisis We provide support in major accident investigation by deploying teams with the full range of skills necessary to address technical, management system and accident root cause investigations. Training, Exercise and Reviews Emergency plans are only as effective as the teams that deliver them. DNV has experience developing and reviewing training materials, desktop exercises and more intensive full-scale emergency drills. A provider of a full range of risk management services, DNV delivers focused, experiencebased and effective response plans. Working closely with the client, we develop an understanding of undesired events and facilitate the development of client-owned response plans. We then train staff and exercise and test plans, so that if an accident occurs the response will effectively minimise consequential impacts and losses. By undertaking incident investigations and incorporating experience into new response plans, we try to ensure that history does not repeat itself. Corporate Solutions u Integrated environmental management systems development and implementation u Corporate reporting and independent third-party review/verification u Environmental due diligence (pre-sale, acquisition or lease) u Risk-based decision support u Public consultation, risk communication and conflict resolution Regulatory and Community Interactions Major hazard regulations in many countries specify Emergency Response Planning. We can help you to develop compliant plans tailored to specific needs. Our independent status helps you to communicate emergency plans and risks to local communities and regulators.

16 PAGE 28 DNV Energy SERVICES DESCRIPTION SHE Risk Risk-based Decision Support Systems and Performance Measures Environmental Models and Emergency Planning and Accident Investigation Advancecd Simulation and Modelling Human Factors and Safety Culture Operational Safety SHE Risk DNV Energy SERVICES DESCRIPTION PAGE 29 Risk-based Decision Support Systems and Performance Measures Environmental Models and Emergency Planning and Accident Investigation Advancecd Simulation and Modelling Human Factors and Safety Culture Operational Safety Advanced Simulation and Modelling The energy industry is expanding into new frontiers, often in extreme environments or scale of operations (arctic areas, LNG, deep water). Standard analysis methods do not demonstrate the effects of these changes with sufficient resolution and there is a need for accurate simulation able to represent higher complexity and greater detail. This is achieved for fluid flow, fire and explosion analysis by applying Computational Fluid Dynamics integrated with advanced risk models. Dynamic structural response issues are addressed with Finite Element Methods. We support our customers with the following analysis, either as stand-alone services or in an integrated service package. u Explosion loads on fire walls and control rooms (Design Accident Load, DAL Overpressure). Deterministic maximum pressures and explosion risk assessment using FLACS and EXPRESS. u Fire DAL for an area (using KFX); Optimal shutdown and blowdown philosophies, and technical safety. u Structural response analysis (using FAHTS/USFOS, GENIE and PFPro) for Passive Fire Protection (PFP) optimisation on structure and pipes. u Integrated probabilistic fire and explosion analysis; optimal protection against both fires and explosions. u Gas leak dispersion; optimal gas detector location. u Event gas dispersion; safe air intake locations. u Fire radiation and smoke dispersion; escape away impairment. u Exhaust gas dispersion; problem-free exhaust pipe height/location. u Helideck turbulence analysis; Helicopter operation procedures. u LNG dispersion and dispersion from gas pipelines in terrain and complex geometries; safe distances. u Windchill analysis, optimisation of wind walls, and workers comfort and safety. u Flare radiation, cold vent dispersion and optimal stack heights. u A QRA setting that gives optimal total safety. u Finite Element Methods address dynamic response of structures, such as for collision analysis for LNG carriers, showing the degree of damage and potential inner tank hole sizes for a range of feasible events. This is used in a risk analysis to develop operational strategies avoiding any release of LNG cargo. Cutting edge analysis tools are used and developed for high risk installations. Business values obtained from the most important services include: u Explosion design accidental loads on firewalls. Accurate predictions of explosion overpressure and explosion risks are provided. The need for excessive strength of firewalls may be omitted, and the effects of mitigating measures such as segmentation and blowdown, deluge, etc., are quantified, providing the right conclusions to make critical decisions. u Fire protection in process areas. Transient critical fire loads and fire risks will be calculated and combined with structural response analyses. We weigh risks associated with different protection systems (flare, PFP) giving decision makers the lowest risk solution in co-operation with the design team. u Integrated fire and explosion analysis, providing optimal solutions for protection from both fires and explosions. These accidents often have contradictory mitigating measures (a firewall, for example, provides fire protection, but causes increased pressures). By weighing the different risks from using the same tool, we can help you make the right decisions about the configuration of decks and walls. Analyses of this kind are recommended in early design or re-buildings, when arrangement decisions are made. u Integrated windchill and ventilation analysis to find optimal wind protection arrangements that give acceptable comfort for workers and the lowest possible fire and explosion risk. This is also performed with the same risk tools, providing the same degree of accuracy. u A high degree of accuracy for installations with high risk avoids excessive conservatism of simplified models. CFD tools are the most accurate tools for predicting fires and explosions and, integrated with DNV s risk analysis tools, they uncover risks in an objective way, also complying with regulative acceptance criteria and ALARP principles. u Risk communication through graphics/ visualisation. Complex 3D fire and explosion phenomena are shown in order to communicate and explain the need for the recommended solutions. For example, a new bridge can be located where fire and explosion loads are the lowest. Fire impact is best shown using 3D plots of the flames. Human Factors and Safety Culture To control risks and prevent accidents, incidents and ill-health, companies develop sophisticated management systems and technical solutions. We cannot rely solely on systems and technology to achieve our objectives, though. Without enabling and enhancing adequate behaviour of management and staff, efforts to improve systems and technology could be in vain. As a result, human factors should be considered systematically. DNV works closely with companies to help them design processes and work systems through a sociotechnical perspective. This means that people issues are considered carefully and systematically. Human behaviour and decision-making is always part of the picture not only within labourintensive production, but also in highly automated systems. Thus, we focus closely on the possible interfaces (human-machine-organisation) within a work system: u Accident and incident causes. The human factor is the main cause in approximately 80 per cent of accidents. u Organisational change. Companies regularly undergo change, for example, due to expansion, reorganisation, merger or takeover, downsizing or changes in staff. Such system changes have a strong impact on motivation and behaviour. People could often be better prepared for new organisational models. u New challenges. Tasks get more complex and more individual flexibility is required. Due to global competition, human performance and efficiency has to be optimised. Individual well-being and health is an important factor of productivity. These demands cannot be fulfilled if the human factor is not adequately taken into account. DNV can analyse and help improve work systems considering human factors throughout the whole system life cycle. This begins with feasibility studies and analysis, implementation support or continuous improvement and change of running systems. As a client, you will benefit from DNV s ability to combine its proven technological and management solutions, together with appropriate human factor approaches. For example, rating tools like DNV s ISRS (International Safety Rating System) can be used to gather information about where human factor issues need to be improved. Possible improvement processes include the following: u Leadership and management style. This comprises, for example, the design of communication processes, goal-setting, or the development of a culture of trust. u Human resource management. In this field, we can help to define personnel selection criteria, or to develop preventive personnel development planning that reduces personnel risks. u Organisation/Workplace design. Here we can help you improve conditions of work, comprising issues such as task design, stress management or ergonomics. u Group processes. The design and realisation of effective group processes is a challenge associated with many modern reorganisation measures. We can help with team-building or elaborate on your organisational concepts. u Personality and individual factors. Processes of learning, self-management or individual risk-competent behaviour should be reinforced in every employee. Considering the complexity of your challenges, we may combine several of the above. Subsequently, we design measures and programmes according to your specific requirements. Your organisation s performance depends on your people. DNV helps you develop personnel, design processes and workplaces in a way that increases performance safely and responsibly.

17 PAGE 30 DNV Energy SERVICES DESCRIPTION SHE Risk Risk-based Decision Support Systems and Performance Measures Environmental Models and Emergency Planning and Accident Investigation Advancecd Simulation and Modelling Human Factors and Safety Culture Operational Safety Technology Qualification services summary DNV Energy SERVICES DESCRIPTION PAGE 31 Operational Safety The key current issue in HSE is one that has been persistent for over 20 years reducing the number of major accident events. Highly publicized major accidents both onshore and offshore demonstrate that industry successes in improving occupational safety have not been mirrored in major accident performance. Most of these accidents did not result primarily from deficient design, rather it was inadequate operational safety not sufficiently addressing specific threats inherent in the operation. DNV applies the latest techniques to ensure that facilities are aware of all key operational and mechanical integrity requirements and that risks are rigorously controlled. Our Approach DNV can develop an integrated program combining SHE Risk, Asset Integrity, Reliability Services and global best practices to achieve major improvements in process safety. DNV s novel process will be equally applicable for customers with established safety management systems, as those with less sophisticated solutions. We recommend that companies: u Increase their top management s commitment to, and awareness and leadership of, process safety, to match that for personnel safety. u Increase focus on process safety issues through tools such as risk assessment and risk registers. u Identify key controls and control accountability. u Put in place evergreen processes to control both hardware and procedures. u Develop suitable leading and lagging process safety metrics that are easily understood and link to industry initiatives to standardize such measures. u Build a strong safety culture to complement management commitment and technical safety programs. u Initiate a fuller use of accident investigation, to verify a control s effectiveness. u Establish priorities of concrete actions, management follow-up and close-out tracking systems. Our services are underpinned by a Risk Information Centre. The Centre collates current data and information on risk, accidents and trends. The information is sorted and packaged to ensure that our engineers and consultants have the latest available information when working on assignments for our key customers. Major accidents have been very hard to reduce, compared to occupational safety. Signals from the North Sea show that a barrier approach, combined with Safety Systems and culture programs will be successful if they are applied fully and in combination with relibaility/integrity services. DNV has in-depth knowledge and experience within all these areas, and we are able to combine the knowledge in an integrated way. Technology Qualification p 34 Technical Analysis and Simultations p 35 Technical Risk and Reliability Analysis p 36 Materials Technology p 37 Laboratory Testing p 38 Floating production facilities in GoM: Quantitative Risk Assessment DNV has performed several Quantitative Risk Assessments (QRAs) to evaluate the risks associated with floating production facilities in the deepwater Gulf of Mexico. The studies main objectives were to estimate and assess the risk, compare the estimated risk level with risk acceptance criteria outlined by the client, and propose risk-reducing measures when relevant. In this project, we delivered the following: u a comparison of the facility s risk level against acceptance criteria and/or industry standards u development of relevant recommendations to reduce risk and quantification of the risk effect u assessment of cost versus benefit, based on estimated risk reduction and cost of implementation u an as low as reasonably practicable (ALARP) demonstration

18 Technology Qualification DNV Energy SERVICES DESCRIPTION PAGE 33 Technology Qualification Securing confidence from all stakeholders Strategy Feasibility & concept selection design construc tion instal lation & commis sioning operation & life extension DECOM MISSIONING Technology Qualification Technology Qualification Technical Analysis & Simulations Technical Risk and Reliability Analysis Materials Technology Laboratory Testing A fast-growing energy market spurs the need to develop new technologies. However, you need to prove that your innovation actually works as intended. To develop new solutions and bring the efficiently, safely and credibly to the market, DNV offers a recognised Technology Qualification process. The process could either be purely technical or related to the execution of a project. Our Approach DNV s Technology Qualification differs from typical third-party services such as classification, certification, and verification, which basically confirm that the technology is in compliance with specified codes and procedures. Qualification, however, is defined as the process of providing the evidence that the technology will function within specific limits with an acceptable level of confidence. Usually, a new or improved technology can either enable a project to be realized or it can enhance its value. Either way the developer has to build the operator s confidence in the technology. Further, the operator needs to ensure that the other stakeholders in the project also are confident before a decision to implement the technology can be taken. This requires a systematic risk-based qualification process that clearly documents the performance of the technology. Unfortunately, qualification of new technology developments is often done as an afterthought and does not provide the evidence that the technology will function as intended. Failure modes and mechanisms may not have been systematically identified by multi-disciplinary teams and appropriately risk ranked. Large expensive tests are performed without a clear understanding of what failure modes the technology simulates and how close it is to the failure envelope. Neither is the simulated operating condition representative of the actual operating condition. The use of analytical models is rarely used to predict many of the failure mechanisms. These are some of the issues that prevent the end user from gaining the required confidence in a technology. To assist the developers building the confidence in their technologies, DNV offers the following services, either individually or as integrated services: u Technology Qualification u Technical Analysis and Simulations u Technical Risk and Reliability Analysis u Materials Technology u Laboratory Testing Our technology qualification process and associated services aim at assisting in building and operating new technologies in a financially sound, safe, reliable and environmentally friendly way. The portfolio of services range from managing the technology qualification process, to advanced material consulting and state-of-the-art testing. They all push in the same direction providing evidence that the technology will function within specific limits with an acceptable level of confidence.

19 PAGE 34 DNV Energy SERVICES DESCRIPTION Technology Qualification Technology Qualification Technical Analysis and Simultations Technical Risk and Reliability Analysis Materials Technology Laboratory Testing Technology Qualification DNV Energy SERVICES DESCRIPTION PAGE 35 Technology Qualification Technical Analysis and Simultations Technical Risk and Reliability Analysis Materials Technology Laboratory Testing Technology Qualification New technology can either make a project possible or enhance its value. In either case the operator needs to feel confident that the technology will perform as intended. The technology developer needs to build up the operator s confidence in the technology, as the operator bears the burden of convincing other stakeholders in the project to implement the new technology. DNV helps technology developers build this confidence by performing a systematic risk-based qualification process that clearly documents the performance of the technology. DNV developed the first, industryrecommended practice for qualifying new technology the DNV-RP-A203 Qualification Procedure for New Technology. Obviously, DNV has extensive experience in qualifying technologies according to this procedure. We combine risk management expertise with extensive knowledge of the energy industry s technologies. Since DNV is an independent company working with both operators and technology vendors, we have accumulated great insight into most of the industry s failure modes and mechanisms. This knowledge base makes DNV a unique partner for qualifying technology and improving its reliability and performance. The basic steps in the qualification procedure are shown in the figure. This is a risk-based systematic process, which ensures that the technology will function reliably within specific limits. One of the main principles of this process is that the effort level required to qualify a technology increases with the risk level. DNV provides services to manage both the technical risk associated with technology qualification and the project schedule and commercial risks. Then we strike a balance between the qualification efforts for the various failure modes and the risks they represent. In a fast-growing energy market where technical expertise is growing scarce, offshore experience is becoming more valuable. Hence, the safety, reliability and functionality of new technology become more important. The new technology qualification process and services aim to help build and operate new technologies in a financially sound, safe, reliable and environmentally friendly way. DNV has qualified more than 60 new technologies using the RP-A203 approach. Different applications range from downhole safety valves to tidal energy systems. The RP-A203 approach has also been adopted by many oil majors and independents across the world. QUALIFICATION BASIS TECHNOLOGY ASSESSMENT THREAT IDENTIFICATION DEVELOP QUALIFICATION PLAN ANALYSIS AND TESTING PERFORMANCE ASSESSMENT TECHNOLOGY DEVELOPMENT CONCEPT IMPROVEMENT Our qualification follows a systematic risk-based process to document the performance of the technology. The main benefits of this procedure: u Improves confidence in the system u Allows more efficient use of resources u Systematically identifies failure modes u Identifies necessary design changes at an early stage u Reveals opportunities to improve system design u Optimizes qualification testing and analysis efforts u Uncovers interface issues between manufacturer and sub-vendors u Increases the likelihood of qualifying the technology on time, thus minimising the schedule risk u Reduces the risk cost during operation by reducing uncertainties and increasing reliability u Provides traceability of the qualification efforts u Allows faster re-qualification for new operating conditions or after modifications Technical Analyses and Simulations Simulating how a structure or system responds to certain conditions is vital to complex projects. To deliver this, DNV provides a wide range of analyses and simulation tools. The ability to simulate complex systems, structures and components with purposemade software is considered a real strength in any project. Analysis and simulations are part of the core competence in DNV. We execute a large number of analyses on a regular basis, both with in-house developed software and commercially available software. One example is in ultra-deep water simulations, where model basins reach their limit with respect to scaling and truncation. Here, the ability to perform advanced coupled analyses of floating production systems is considered a must. DNV not only performs global and local analyses of multiple systems, but we have also established an efficient production line to analyse the actual extreme and fatigue capacities of structures. Likewise, an evolution in computing has made Computational Fluid Dynamics (CFD) codes or flow simulation more efficient. This allows advanced erosion, flow assurance, vortex induced vibration studies and more to be performed in a cost effective manner. In DNV we can combine multiple analysis techniques to solve complex problems, such as the impact to the global response of a vessel based on weather and wave loading, and the effect this has on the fatigue life of the well head when connected to a riser. Some of the analyses that we perform are: u Hydrodynamic and hydrostatic analyses of floating objects with and without forward speed, as well as hydrodynamic interaction effects (coupled analysis) u Wind, wave and current loads and static/ dynamic analyses of fixed structures u Simulation of higher order wave effects (e.g. ringing and springing) u Simulation of floating objects connected by offloading and transfer lines u Riser (flexible, SCRs, TTRs, C/WO, towers) mooring and umbilical time domain analyses u Interaction/collision analyses (e.g. risers, umbilicals and moorings) u Thermal analysis u Vortex Induced Vibrations u Vortex Induced Motions (model test input usually required) u Simulation of complex marine operations u Simulations in connection with wave action on deck loading, sloshing etc. u Non-linear analysis (e.g. material properties, geometry, thermal, contact, etc.) u Structural response to fire and explosion loads u Dynamic analysis (impact, transients, resonance, response, etc.) u Dynamic simulation of multi-phase flow u Slugging, thermo hydraulic, water hammer analysis u Sand Acceptable Sand Rate Strategy (DNV RP-O501) u Sand transportation/accumulation and erosion u Hydrate and wax prediction and management DNV provides access to a broad range of advanced simulation tools. Your project will benefit greatly from DNV s system knowledge and experience; our analytical experience allows us to use the best available analysis tools to solve your large and small challenges effectively. The benefits of these analyses depend on the actual project but can include: u Accurate prediction of the performance of your structure or system u Prediction of the margin to failure for multiple load conditions u Prediction of complex operational loads u Verification of analytical models with test results u Extrapolation of test conditions based on calibrated analytical models

20 PAGE 36 DNV Energy SERVICES DESCRIPTION Technology Qualification Technology Qualification Technical Analysis and Simultations Technical Risk and Reliability Analysis Materials Technology Laboratory Testing Technology Qualification DNV Energy SERVICES DESCRIPTION PAGE 37 Technology Qualification Technical Analysis and Simultations Technical Risk and Reliability Analysis Materials Technology Laboratory Testing Technical Risk and Reliability Analysis Today s systems are growing increasingly complex, with a progressive impact on project risk and production availability. It is therefore imperative to handle the technology s risks and implementation appropriately. DNV offers a wide range of risk and reliability services to manage both technical and project risk. Risk and reliability analyses are a core competency in DNV. We possess a strong modelling capability to help you understand the technical uncertainties and potential consequence of your operations. The result: You make better decisions. DNV assesses the problem at hand and determines the risk or reliability method that will yield the required result with minimal use of resources. To ensure that all the relevant risks are appropriately evaluated, we typically use a multi-disciplinary team. This combines in-depth knowledge of the technology with the best risk and reliability techniques. Subsequently, we propose appropriate actions to mitigate the identified risks, based on their priority. Some of the techniques that we utilise: u FMECA s, HAZOP, HAZID u Structured What-If Technique (SWIFT) u Bow-Tie analysis u Fault tree, and event analysis u RAM analysis u Structural reliability analysis u Fire and explosion simulation (probabilistic) u Simulations (process, operational, logistical and more) u Probabilistic life cycle cost = NPV (Revenue CAPEX OPEX RISKEX) u Reliability-based design u SIL analysis (IEC & and OLF guideline 070) There are many risk assessment techniques available to the industry today, but a risk assessment is only as good as the experience of those who make it. DNV s knowledge of the technologies in the oil and gas industry, combined with first-class risk and reliability methods, ensures that the project s risks can be managed appropriately. Key benefits: u Wide range of competencies and disciplines that combine system knowledge and stateof-the-art risk and reliability techniques, which results in better quality assessments u Lessons learned from other parts of the industry u Identifies the project s key risk drivers u Predicts failure data even when little historical data is available, or for newly developed technologies Materials Technology Many of the component or system failures that take place in the oil and gas industry are related to materials selection or quality issues. DNV offers a broad range of services within materials technology and laboratory testing world-wide. DNV provides one of the most powerful materials groups world-wide, with materials technology laboratory services, in addition to qualification of components and systems. DNV s 250+ employees working in Materials Technology and Structural Integrity, in addition to large laboratory facilities at 6 locations, support the energy industry world-wide. Our Approach DNV has extensive experience in laboratory testing, and our laboratories are an important part of the technology base in DNV. Testing expertise is combined with theoretical knowledge of materials, failure modes/ mechanisms and object competence; hence, the laboratories are well integrated with other DNV services. Our services and strengths: u Multi-disciplinary teams u Integration with our laboratory services u Materials knowledge & system knowledge within the oil and gas industry u Failure investigation u Fitness for service assessment u Development of specifications and materials selection reports u Advisory services, trouble shooting and studies u Corrosion assessment, design and verification of corrosion protection systems u Composite and plastic materials (testing and consulting) u Fracture mechanics and fatigue assessments u Materials verification and examination (in lab and in the field) u Quality surveillance and fabrication follow-up (e.g. during fabrication of plates, pipes, components and at coating yards) u Qualification of suppliers (e.g. technical audits) u Third-party verification of specifications and procedures u Testing (see Laboratory Testing section for further details): u Standardised and non-standard testing of metallic materials, thermoplastic materials, elastomeric materials and fibre-reinforced plastics u Full-scale and tailor-made testing of components and equipment u Environmental testing u Corrosion and erosion testing u Testing of coating The right material properties often make the difference between success and failure. DNV s team of 250 materials experts around the world can help ensure that your project does not suffer materials-related failures. Alternatively, if a failure has already occurred, our team can help identify the root cause and suggest the best course of action. Some key advantages: u Extensive knowledge of the challenges and conditions seen in the energy industry u Combination of materials knowledge and system knowledge u Identification of optimal solutions within short timeframes through use of multidisciplinary teams u Hands-on experience through failure investigations and laboratory testing u Material laboratory facilities located in Norway, Singapore, Malaysia, USA and UK

21 PAGE 38 DNV Energy SERVICES DESCRIPTION Technology Qualification Technology Qualification Technical Analysis and Simultations Technical Risk and Reliability Analysis Materials Technology Laboratory Testing enterprise risk management DNV Energy SERVICES DESCRIPTION PAGE 39 Company-wide Risk Integrated Risk Project Risk Change and Process Improvement Due Diligence Verification Laboratory Testing In order to support the global energy and shipping sectors with state-of-the-art laboratory services, DNV offers a wide range of testing capabilities, combined with strong multi-disciplinary knowledge and experience. DNV offers laboratory services within the area of materials technology and qualification of components and systems. Our experience in laboratory testing is extensive, and the laboratories are an important part of the technology base in DNV. We put an emphasis on combining the testing expertise with theoretical knowledge of materials, object competence, failure modes and mechanisms. DNV s laboratories are located in Oslo and Bergen in Norway, Singapore, Kuala Lumpur in Malaysia, Aberdeen in the UK and Dublin, Ohio in the USA. All are seamlessly integrated with other DNV services. ANALYSIS SIMULATION FAILURE ANALYSIS TESTING In our approach, we combine testing with analysis to determine the operating limits for the technology Risk-based Verification of Field Developments p 42 Risk-based Verification of Pipelines, Risers and Subsea Facilities p 43 Risk-based Verification of Process Systems p 44 Verification and Certification of Products and Equipment p 45 Marine Operations and Warranty p 47 The laboratories focus areas and locations: u Materials and component testing laboratories (Oslo, Bergen, Singapore, Kuala Lumpur, Ohio) u Structural and large-scale testing laboratories (Oslo, Bergen, Singapore, Ohio) u Metallurgical Laboratories (Oslo, Bergen, Singapore, Kuala Lumpur, Ohio) u Corrosion and coating testing laboratory (Oslo, Bergen, Singapore, Aberdeen, Ohio) u Process laboratory (Oslo) DNV provides not only tests, but also answers and solutions. We exploit hazard identification techniques together with our knowledge of the object and process to determine the most critical failure mechanisms, in addition to environmental and load conditions. A combination of testing and analysis is often used to determine the operating limits for the technology. With our processes and experience, we can reduce the cost of testing and optimise the performance of the technology. Some of the services we provide: u Fitness for Service u Re-qualification for extended operating conditions u Failure investigation or Failure analysis before failure occurs u Qualification testing u Large-scale structural tests (dynamic loads, pressure, temperature, etc.) u Flow assurance testing The laboratories have several standard test facilities. However, in many situations tailormade test facilities are designed for a specific project or investigation, or for qualification tests. Results from the laboratory testing are used as a basis for developing models, which we implement in our prediction tools, model verification and updates. The laboratories are also well suited to offer component qualification services. DNV s laboratory services provide a unique and broad portfolio of testing capabilities, combined with strong multi-disciplinary knowledge and experience from the global shipping and energy sectors. In order to better determine all of the parameters affecting the technology s performance, we give your company access to a combination of failure investigation and analysis with laboratory tests. This allows us to model actual operating conditions in the most realistic way. We utilise advanced reliability techniques to extract as much information as possible from tests. In addition, we can determine the technology s operating envelope, thus increasing the value of a test. DNV s global network and laboratories in Europe, Asia and the USA serve the shipping and energy markets in an efficient manner.

22 verification DNV Energy SERVICES DESCRIPTION PAGE 41 Strategy Feasibility & concept selection design Verification construc tion Risk-based Offshore Production Facilities Verification Risk-based Pipeline Verification instal lation & commis sioning operation & life extension DECOM MISSIONING Verification Striking the balance through a risk-based approach Risk-based Process Systems and Equipment Verification Product Verification Marine Operations and Warranty Regulatory authorities across the world have moved or are moving from a traditional prescriptive regime to a goalsetting regime with functional requirements where safety must be demonstrated based on risk considerations. DNV s transparent and fully independent approach to verification, certification, quality surveillance and marine operations will help reduce and manage risks, thereby ensuring a successful project and safe operations in-service. A RISK-BASED APPROACH DNV s Risk-Based Verification (RBV) method is a structured, systematic process, using risk and cost-benefit analysis to strike a balance between technical and operational issues and between safety and costs. It ensures that an appropriate focus is directed at high-risk elements, making verification less subjective and arbitrary. DNV was the first organisation to introduce a risk-based approach. This method is documented and completely transparent. The details of the review are described in the DNV Service Specification DNV-OSS300, Risk-Based Verification. A number of more detailed verification specifications for specific assets such as structures, pipelines topside equipment, lifting appliances, etc are available, each containing specific verification/certification work scope and recommended detailed checklists. OSS-201: Verification for Compliance with Norwegian Shelf Legislation OSS-202: Verification for Compliance with UK Shelf Regulations OSS-301: Certification and Verification of Pipelines OSS-302: Offshore Riser Systems OSS-304: Risk-Based Verification of Offshore Structures OSS-305: Rules for Certification and Verification of Diving Systems OSS-306: Verification of Subsea Facilities OSS-307: Verification of Process Facilities OSS-308: Verification of Lifting Appliances for the Oil and Gas Industry OSS-309: Verification, Certification and classification of gas Export and Receiving terminals OSS-312 Verification, Certification and Classification of Tidal and Wave energy Converters Some of our services are based on specific national requirements, while others are project-specific and based on the customer s requirements. Our services cover offshore oil and gas facilities, onshore plants and terminals, manufactured components and equipment, as well as offshore wind and wave energy generating facilities and equipment. Our offering is organised along the following service lines: u Risk-based verification of field developments u Risk-based verification of pipelines, risers and subsea facilities u Risk-based verification of process systems u Product and equipment verification and certification u Marine Operations and Warranty world wide support Designing and building oil and gas facilities involves a number of different sites, subcontractors and suppliers. Being at the right place at the right time is crucial. That is why our international organisation comprises a network of more than 300 offices spanning Europe, Africa, Middle-East, Asia and the Americas is key to project success. BENEFITS Our risk-based verification approach ensures a clear and transparent way of working, prioritizing the verification effort based on assessed risks. You are assured of: u A clear and transparent verification plan u Technically sound assessments u Cost effective and more efficient execution u Acceptance by authorities and stakeholders u Worldwide support

23 PAGE 42 DNV Energy SERVICES DESCRIPTION verification Risk-based Verification of Field Developments Risk-based Verification of Pipelines, Risers and Subsea Facilities Risk-based Verification of Process Systems Verification and Certification of Products and Equipment Marine Operations and Warranty verification DNV Energy SERVICES DESCRIPTION PAGE 43 Risk-based Verification of Field Developments Risk-based Verification of Pipelines, Risers and Subsea Facilities Risk-based Verification of Process Systems Verification and Certification of Products and Equipment Marine Operations and Warranty Risk-based Verification of Field Developments Risk-Based Verification (RBV) is a structured, systematic process using risk and cost-benefit analysis to strike a balance both between technical and operational issues and between safety and costs. OUR APPROACH RBV methodology enables the project designer/operator to focus on the more critical aspects of the project, and hence reduce risk. The verification is normally carried out by a combination of document review(s), simplified or advanced independent analysis, audits, inspections and quality control, and witnessing of tests. RBV methodology involves the following steps: u Hazard identification u Risk assessment u Evaluation of risk-control options u Recommendations for decision-making u Development of a verification plan u Performing verification according to plan For standard designs and products with known failure modes and hazards, the verification s level of involvement and sophistication is predefined according to the probability and consequence of failure. These verification levels are categorized as low, medium or high, as schematically illustrated in the figure on the right. RBV methodology provides recommendations for selecting a suitable level of verification and/or certification commensurate with the complexity of the project and its associated risk of failure. For the appropriate level of verification, required checks and inspections are defined for the following activities: u Structural design review u Flow assurance design review u Independent calculations u Fabrication u Installation u Commissioning To administer and facilitate the RBV process, DNV has developed a database that keeps track of all critical elements in the plant system and the verification tasks related to each element, including the status and progress of verification activities. BENEFITS Risk-Based Verification has a higher impact and added value when implemented at the outset of the project. However, benefits can be gained from utilisation of RBV at any stage of an asset s life cycle. Advantages of implementing DNV s approach to RBV include: u Incorporating owner s specifications and performance criteria at an early stage u Substantial risk reduction by identifying failures in the design process u Correct decision making and minimal rework u Less attention on activities and areas of low risk u Improvement of the asset s availability and reliability throughout its life cycle u Contribute to optimising expenditures in high risk areas We strongly believe that an open approach to the thoroughness and level of involvement in certification and verification tasks will enable you as operator or stakeholder to reduce your risks at an optimal cost. Risk-based Verification of Pipelines, Risers and Subsea Facilities DNV s transparent and fully independent approach to verification on pipeline, riser and subsea facilities will help reduce and manage risk, thereby ensuring successful subsea projects. OUR APPROACH DNV has identified a need for a more accurate and transparent approach to verification and certification of submarine pipelines and subsea systems. We have therefore issued the following Offshore Service Specifications: u DNV OSS-301 for Certification and Verification of Pipelines u DNV OSS-302 for Riser Systems, and u DNV OSS-306 for Subsea Facilities The methodology described in the DNV OSS complements the technical requirements given in the DNV Offshore Standards, OS-F101 for Submarine Pipeline Systems, OS-F201 for Dynamic Risers and various other DNV Offshore Standards for structures, process facilities, electrical and instrumentation systems. The methodology will enable the designer/owner of the pipeline project to focus on the most critical aspects of a pipeline project, and hence reduce risk at optimum cost. Verification will normally be carried out by a combination of document review(s), simplified or advanced independent analysis, audits, inspections and quality control, and witnessing of tests. The verification s sophistication will be commensurate with the project s risk level. The document contains guidance on how to select a suitable level of verification and/or certification, and detailed tables describing the verification scope for: u Structural and pressure containment design reviews u Flow assurance design review u Process safety and control system design review u Type of Independent calculations required u Fabrication requirements u Installation requirements u Commissioning requirements BENEFITS We strongly believe that an open approach to the thoroughness and level of involvement in certification and verification tasks will enable the owner and/or contractor to reduce risk at an optimum cost. We recommend that verification activities are started as early as possible, i.e. during the feasibility and conceptual design phase. In the early phases, changes can be made with minimum cost and schedule impact. Buzzard Field one of UK s largest discoveries The Buzzard field is one of the largest discoveries made in recent years in the UK sector of the North Sea, with an estimated 550 mbbls of recoverable reserves. It is located in the Outer Moray Firth, 100 km northeast of Aberdeen and 55 km from the nearest landfall at Peterhead. It is operated by Nexen Petroleum U.K. Limited. The field has been developed by a bridge-linked complex made up of three piled steel jackets supporting a Quarters-Utilities (QU) deck, production deck and wellhead deck. It was discovered in May 2001, with development leading to first-oil in early January Nexen awarded DNV a contract to provide verification services according to UK offshore regulations and notified body services according to the Pressure Equipment Directive. An extension to this contract has also been awarded to cover in-service verification, carrying DNV s involvement into the operations phase. KG-D6 INDIA S FIRST DEEPWATER PROJECT Block KG-DWN-98/3 in the Krishna Godavari Basin of the Bay of Bengal off the east coast of India is the first deepwater development in India. Covering an area of 7500 km 2, this gas field is located 40 km and 60 km south-east of Kakinda at water depths of between 400 and 2700 meters. Phase 1 of the project comprises subsea production systems, flowlines, pipelines, a shallow water control and riser fixed platform and an onshore gas processing plant. It is developed by Reliance Industries Ltd, India s largest private sector energy and materials enterprise. DNV has supported Reliance Industries in all phases of the project from front-end engineering design to installation and commissioning. DNV was involved in design verification, quality surveillance of procured equipment, survey and inspection during construction and installation and verification of pre-commissioning activities. The work was based on DNV s Risk-Based Verification approach and relevant OSS. DNV used resources from its worldwide network.

24 PAGE 44 DNV Energy SERVICES DESCRIPTION verification Risk-based Verification of Field Developments Risk-based Verification of Pipelines, Risers and Subsea Facilities Risk-based Verification of Process Systems Verification and Certification of Products and Equipment Marine Operations and Warranty verification DNV Energy SERVICES DESCRIPTION PAGE 45 Risk-based Verification of Field Developments Risk-based Verification of Pipelines, Risers and Subsea Facilities Risk-based Verification of Process Systems Verification and Certification of Products and Equipment Marine Operations and Warranty Risk-based Verification of Process Systems Process and safety critical systems may require special attention during the newbuild or in-service phase. They may need independent verification to ensure that integrity and/or compliance is achieved on specific types of installation or continuously maintained on existing ones. In-service Verification: ensuring integrity continously DNV has extensive experience in topside design verification, fabrication and installation surveys world-wide. Backed by an international organisation with resource centres strategically located across the world, we can provide a range of services. These include design verification of selected safety critical systems and stretch to a full verification package, involving all disciplines and all phases from early conceptual phase to detailed engineering, construction, installation, pre-commissioning and operations. OUR APPROACH Verification may be according to internationally recognised standards, national regulations and/or DNV standards. Certification and/or verification services may be offered for equipment packages. The services may be provided in a contractual relationship with the operator or owner, following up the yards or contractors, or as a service to the contractors. DNV has identified demand for a more accurate and transparent approach to verification and certification of process systems. We have therefore issued the Offshore Service Specifications DNV OSS-307 for Verification of Process Systems. The scope of work for topside and process systems typically includes: u Document and drawing review for issues regarded to be of safety critical nature, to verify compliance with relevant internationally recognised standards forming the design basis. This service is provided for conceptual, basic and detail engineering phases. u Design appraisal of a multidiscipline approach, involving all topside systems disciplines such as electrical, process, safety, materials, instrument, noise and vibration and working environment. u Participation in or management of HAZOP sessions u Witnessing tests of safety systems OBJECTS AND SYSTEMS COVERED Typical areas that may be addressed involving multidisciplinary interfaces: u Unit arrangement u Escape routes and lifesaving equipment u Structural fire proofing u Fire and blast retarding divisions u Emergency shutdown systems u Process shutdown systems u Fire & gas detection systems u Active fire protection systems u Process plant safety u Drilling plant safety u Area classification and ventilation u Flare and relief systems u Power generation and distribution u Material selection u Noise and vibration BENEFITS Our Risk-Based Verification approach ensures a clear and transparent way of working that is risk-based, prioritizing verification efforts by assessed risks. You are assured of: u A clear and transparent verification plan u Technically sound assessments u Cost-effective and more efficient execution u Acceptance by authorities and stakeholders worldwide u World-wide support wherever your source of supply is from In Denmark, DNV is performing in-service verification on a number of offshore installations for Maersk and DONG E&P. This is performed to satisfy requirements under Danish law, including the Danish Energy Agency s guidelines and Norsok standards. DNV s involvement covers verification of repairs, modifications and replacements, topsides, structures and pipeline and riser surveys on an annual basis. In the UK, DNV is providing Independent Verification Services during in-service operations for Chevron (Captain and Erskine Fields) and ExxonMobil (Beryl Field), in accordance with UK Offshore Regulations. Verification and Certification of Products and Equipment Process systems or equipment delivered from around the world require verification to meet project and regulatory requirements before they arrive at site for subsequent integration or use. By ensuring that equipment and systems arrives at site with the correct specifications and certificates, we help you avoid unnecessary delays and reinforce safety. RE POWER SYSTEMS Verification of Turbine Blade Manufacture for REpower. DNV provides a full range of services for all types of systems and equipment, either custom-made or of standard supply. DNV provides technical support, design reviews and surveys and supplies the relevant certificates and reports necessary for use of the equipment. OUR APPROACH We offer independent verification that personnel, procedures, equipment and products meet specifications. We do this by applying risk-based methodology contained in a number of service specifications for various objects, covering some or all of the following activities: Design Reviews DNV perform design review to DNV Standards, recognised codes and standards, project specifications and operator performance standards. This includes EC directives on all types of equipment intended for use offshore. Design review is produced for specific jobs (case approval), or if the intention is to manufacture several over a period of time (type approval, valid for 4 years). Fabrication Surveys Fabrication surveys are based upon criticality (e.g. energy content, hazardous nature of fluids, structural importance) of equipment, statutory, class or flag requirements to thirdparty and operator or vendor preference. Manufacturing Survey Arrangements Manufacturing survey arrangements are available to clients with type approved products. An MSA reduces the level of DNV involvement in the production processes. This may be established for companies with ISO 9000 systems and after a successful Manufacturer product quality assessment. Manufacturer Product Quality Assessment Manufacturer product quality assessments are a new Quality Rating system that audits manufacturing process from the shop floor. The assessment can also be used on behalf of a client on new or existing vendors. Survey Schemes Survey schemes are used for all types of equipment intended for offshore use, whether owned by an operator or service company. The equipment may be surveyed to a survey scheme agreed with DNV and the equipment owner. Welding Procedures, Welder Qualification DNV performs expert witnessing and approval of welding procedures and can assess welders to recognized standards. The interest in the wind industry is increasing and stakeholders are starting to seek deep insight into reliability, safety and, not least, the financial and environmental risks involved before business ideas turn into reality. The German wind turbine manufacturer REpower Systems AG delivered over 1,000 wind turbine blades in 2007 to their projects, and has entrusted DNV with the manufacturing verification surveys of their blades during production for all of their turbine types including the world s largest 5MW turbine. These blades were produced by the world s largest blade manufacturer, LM Glasfiber, at production facilities in Denmark and Spain. This contract decision coincides with REpowers first ever US turbine delivery contract in 2007, with DNV selected as a partner to manage the risk of the turbine blade delivery. These services will continue into 2008, with production expected to expand into India and China as well. In Australia, DNV is involved with independent validation of safety systems after modifications were made to Woodside Energy s Goodwyn A platform topsides to accommodate additional gas from the Perseus subsea wells. Validation was performed on the production equipment, personnel emergency facilities and production safety systems, in accordance with company performance standards and regulatory requirements. The wind energy market is a dynamic place to be, and has grown in the past few years at rates exceeding 20% per year. Turbine manufacturers are now expanding into new countries like never before, and DNV is with them to help manage their risk. DNV has well-established verification services for the wind industry. This ranges from the verification of wind turbine blade production through manufacturing surveys, to verification of complete wind turbine farms.

25 PAGE 46 DNV Energy SERVICES DESCRIPTION verification Risk-based Verification of Field Developments Risk-based Verification of Pipelines, Risers and Subsea Facilities Risk-based Verification of Process Systems Verification and Certification of Products and Equipment Marine Operations and Warranty verification DNV Energy SERVICES DESCRIPTION PAGE 47 Risk-based Verification of Field Developments Risk-based Verification of Pipelines, Risers and Subsea Facilities Risk-based Verification of Process Systems Verification and Certification of Products and Equipment Marine Operations and Warranty PRODUCTS COVERED We provide our services for the following products/objects: Offshore Containers The certification of offshore containers can be assessed to comply with the following: u DNV Standard 2.7-1, and 2,7-3 u DNV Rules for Planning and Execution of Marine Operations u BS EN12079 u IMO Circ 860 u NORSOK Z015 Hazardous Area Equipment Equipment can be certified to the following: u Zone 2 Diesel engines to EEMUA 107, OCMAMEC 1 & BS EN : 2000 u Zone 1 & 2 Electrical Equipment u ATEX Lifting Appliances DNV rules for certification of lifting appliances can be used for cranes, lifting beams, A Frames, winches, reels, etc. Well Control Equipment DNV has wide knowledge and experience regarding well control equipment such as: u Christmas trees/valves/manifolds u Blow Out Preventers u Drilling Riser systems u Wireline Equipment u Coiled Tubing Equipment u Well Test Equipment Linepipes and Bends Fabrication surveys can be performed at steel plate, pipe mills and bend manufacturers based on DNV OS-F101, API 5L or other internationally recognised linepipe specifications. Pressure Vessels, Piping and Accessories The Pressure Equipment Directive is applicable to pressure vessels, piping and accessories. DNV has local resources for gap analysis and formal quality system assessment to 97/23/EC Pressure Equipment Directive and SI 2001(1999) Pressure Equipment Regulations. DNV can advise on the relevant codes and standards such as ASME VIII, PD5500 and ASME B31.3. DNV also advises on categorisation and choice assessment module. We also provide Provision & Verification of Written Schemes of Examination (WSE) and Inspection to a WSE Risk Analysis (extension of inspection intervals) according to Pressure System Safety Regulations (PSSR). Wind Energy (Onshore & Offshore) DNV has published standards and specifications for wind turbine structures and components and for certification of tidal and wave energy converters. We can perform verification covering: u Structural design analysis u Power system analysis u Fabrication and component manufacture u Installation and testing BENEFITS DNV provides technical support, design reviews and surveys and supplies the relevant certificates and reports necessary for use offshore. By ensuring that equipment and systems arrives offshore with correct specifications and certificates, we help you avoid unnecessary delays and meet production schedules. Marine Operations and Warranty The financial and technical consequences of an accident, or an unexpected occurrence during temporary phases involving offshore marine operations, can be devastating. This fact alone emphasises the importance of having a well-defined marine operations verification scope, a recognised technical reference, competence and experience, and quality of service. DNV Marine Operations stand up to these requirements through: u Our integrity and independence u Availability of in-house specialists in relevant fields, and u Our more than thirty years of experience as an internationally recognized warranty surveyor and marine verifier OUR APPROACH DNV offers warranty survey services for all structures, objects, vessels and equipment, systems and procedures involved in marine operations. The service covers simple coastal transportations to complex offshore installations. Our acceptance reference is the DNV Rules for Planning and Execution of Marine Operations. These rules are recognised world-wide by both the marine and offshore industries, and are commonly quoted as an industry reference for marine operations. These rules give general as well as specific requirements for planning and executing marine operations, such as: u Load transfer operations u Towing u Special sea transports u Offshore installation u Lifting u Sub sea operations u Transit and positioning of mobile offshore units u Removal of offshore structures Upon acceptance of design calculations, equipment procedures and plans, a marine operation declaration is issued that is widely accepted by insurers, regulatory authorities and stakeholders. In addition, our services are supported by the following recommended practices: u DNV RP-H101 Risk management in Marine and Subsea Operations; u DNV RP-H102 Marine Operations during Removal of Offshore Installations Our staff are experienced master mariners, naval architects and structural engineers who are well-qualified and experienced to help you manage your offshore risks. The combination of site and office work is considered a key element in the quality of our service. All surveyors within DNV performing marine operations work have valid offshore certificates and are qualified through the DNV Qualification and Service Competence Scheme. These are qualified for design reviews and/or field surveys. Other specialists within related areas such as hydrodynamics, structures, foundations, pipelines, risers and moorings are available within DNV to support this activity. Our goal is to provide you with quality verification services of marine operations that, contribute to safe and cost-effective execution. BENEFITS By applying a well-defined scope for marine operations verification, a recognised technical reference, competence and experience, we reduce the risk of something going drastically wrong significantly. Given the value of the oil and gas equipment transported and installed at sea, marine operations verification is money well spent. Neptune CERTIFICATION OF A NOVEL LNG Offshore Terminal The Neptune facility consists of a Submerged Turret Loading (STL) buoy system where LNG vessels will moor and discharge revaporized LNG, or natural gas, using onboard vaporization equipment. The natural gas will be transported via risers and subsea pipelines and deliver natural gas to customers throughout Massachusetts and on to the rest of New England. DNV s scope covers comprehensive verification and certification of the LNG terminal. This work covers design, fabrication and installation phases, as per the NVIC requirements of US Coast Guard. DNV was nominated by Suez Energy as the certifying entity for US Coast Guard. Snøhvit development: Europe s First LNG production facility Snøhvit is the first major development on the Norwegian continental shelf with no offshore surface installations. No fixed or floating units are positioned in the Barents Sea. Instead, the subsea production facilities stand on the seabed, in water depths of metres. A total of 20 wells are due to produce gas from the Snøhvit, Askeladd and Albatross fields. This output is transported to land through a 145-kilometre pipeline to an LNG process plant in Hammerfest, Norway. Due to the remoteness of the site, the process plant was built on a barge elsewhere, transported to location, floated in and set down. Other facilities were also constructed in modules around the world and transported to site for integration. DNV was involved with over 100 transports to ensure safe delivery to site.

26 PAGE 48 DNV Energy SERVICES DESCRIPTION verification Risk-based verification of field developments Risk-based verification of pipelines, risers and subsea facilities Risk-based verification of process systems Verification and certification of products and equipment Marine operations and warranty Offshore Classification services summary DNV Energy SERVICES DESCRIPTION PAGE 49 Pre-contract Services p 52 Design Approval p 53 Fabrication Survey and Commissioning p 54 Certification of Material and Components (CMC) p 55 In-serivce Survey p 56

27 Offshore Classification DNV Energy SERVICES DESCRIPTION PAGE 51 Offshore Classification Ensuring safe and reliable operation throughout the life cycle Strategy Feasibility & concept selection design Offshore Classification Pre-contract Services Design Approval construc tion instal lation & commis sioning operation & life extension DECOM MISSIONING The operation of Mobile Offshore Units (MOUs) for the exploration and production of offshore oil and gas reserves poses tough challenges with regard to documentation of acceptable safety standards. MOUs include semisubmersibles, Jack-ups, drill ships, FPSOs, TLPs, SPARs and other types of deep draft floaters. Requirements are set both by shelf state authorities based on local rules and regulations as well as flag state authorities based on common requirements from the International Maritime Organisation (IMO). Other stakeholders such as financial institutions, shareholders, insurers and society at large have similar focus on safety and reliability of such units. Accidents are not tolerated in the modern society. DNV helps clients to ensure an adequate safety and reliability through offshore classification, thus providing assurance that requirements laid down in applicable rules and regulations are met during all phases of the asset s design, construction and operation. Basis for classification is DNV s own rules, which have been developed over decades. These rules combine the most advanced theoretical evaluations with our longstanding experience with ships and offshore units operating in the marine environment. They also incorporate relevant internationally recognised industry standards for specific safety issues. DNV Offshore Classification establishes basic rule requirements based on theory and experience for Mobile Offshore Units, and later verifies that the required safety standards are designed and built in, observed and maintained through the offshore unit s life cycle. Activities typically include: u Setting rules based on the latest development in technology, societal trends and deliberations with relevant statutory bodies worldwide u Early engagement with designer, yard and owner to ensure that safety standards can be met u Identification of safety-critical aspects and full review of how these are met through comprehensive review of proposed design u Certification of safety-critical components and systems, both for marine and industrial use onboard u Construction survey through the complete fabrication period including review and close follow-up of the yards internal control and management system u Inspections and tests during commissioning u Regular surveys during operation at prescribed intervals meeting internationally agreed standards By choosing DNV Offshore Classification the client is ensured: u Availability to DNV s acknowledged peak competence on marine structures u Application of modern safety principles and latest advances in design and dimensioning principles u Acknowledged and recognised third party review of plans and drawings u Adequate certification of safety critical components and systems meeting international and regional standards u Construction survey and close follow-up throughout construction and commissioning phases u Availability to DNV s worldwide net of surveyors and surveys meeting all regulatory requirements in-service u All the above forming accepted basis for approval by shelf and flag state authorities; u Technical and operational feedback through dedicated experience feedback channels Fabrication Survey and Commissioning CMC In-service surveys

28 PAGE 52 DNV Energy SERVICES DESCRIPTION Offshore Classification Pre-contract Services Design Approval Fabrication Survey and Commissioning Certification of Material and Components (CMC) In-serivce Survey Offshore Classification DNV Energy SERVICES DESCRIPTION PAGE 53 Pre-contract Services Design Approval Fabrication Survey and Commissioning Certification of Material and Components (CMC) In-serivce Survey Pre-contract Services Getting things right the first time is key in today s hectic business environment. Designing and building offshore drilling or production units is no exception. The earlier errors are identified, the lower is the cost of fixing them. This is precisely the thinking behind DNV s pre-contract services. We offer valuable insights into key challenges and significantly reduce the downside risk in projects. We have structured our pre-contract services in the following groups: u Design Brief Review u Approval in Principle u Concept evaluation u Main Scantling Approval Design Brief Review The design brief is vital to the development of new projects. Based on extensive experience from other projects, DNV can help ensure that the project is developed correctly and consistently, and that it complies with all relevant rules and standards. In our pre-contract service, the design brief will be reviewed for consistency and compliance with applicable class notations and relevant project-specific requirements. Based on the general arrangement drawings and simplified structural strength calculations, we evaluate the design with respect to overall structural strength. An approval in principle is normally carried out at an early stage in the project development. The quality of the review depends on the amount of design documentation available from the designer. Actual scantlings should, to a great degree, be used as basis for the evaluation. Typical studies will vary for different objects. Main Scantling Approval The main scantling drawings are approved with respect to nominal plate thickness, stiffener and girder dimensions, and grade of material in a main scantling approval. Local scantlings of buckling stiffeners, brackets, lugs and welds are normally not considered. Independent analyses of global and local strength are carried out to verify the design calculations submitted to DNV as part of the design documentation package. These analyses are normally made with a level of detailing sufficient for full classification at a later stage. However, local FE models of hot-spots may have to be added in the detail design. Drawings approved with respect to main scantlings are normally considered sufficient for ordering material, provided comments given to the main scantling approval are sufficiently accounted for in the design. Early detection of critical aspects or errors is key to getting the project completed on time and within budget. The earlier errors are identified, the lower the cost of change. DNV will help you get things right the first time, through a portfolio of pre-contract services tailor-made for the different early phases and decision gates of offshore drilling or production units. Design Approval Operating MOUs and FPSOs requires zero tolerance of failure. At the same time, one must not overspecify requirements. DNV s classification services assure owners, authorities and other stakeholders that the facility complies with classification rules and requirements independent of location. A flexible regime enables that appropriate rules and criteria are used and an optimum design verification approach is applied. Documents for approval are specified for all common types of mobile offshore units, including column-stabilised units, selfelevating units and ship-shaped units. These form the basis for the design approval process. Design approval is based on a combination of document reviews and spot check calculations, independent analyses and technical workshops. Knowledge of the design and the designer, as well as the extent of novel features and the complexity of structure and systems will decide the actual approach, and whether independent structural or system analyses are considered necessary for full design approval. Design approval includes initial review, issue of comments and review of next document revision to confirm the incorporation of DNV comments. The aim of the design approval process is to confirm that the design of the object to be classified complies with DNV class rules. This is the first of many steps to ensure that the final object satisfies the society s requirements and can be entered into class upon completion of fabrication, testing and commissioning. Design approval generates approved drawings with approval letters containing approval comments. Design approval activities ensure yards and owners that the design of the object to be classified complies with DNV class rules. A flexible regime ensures that correct rules and criteria are used and an optimum design verification approach is applied for both harsh environment and benign units. Design approval is the first of many steps to make sure that the final object satisfies the society s requirements and can be entered into class upon completion of fabrication, testing and commissioning. Concept Evaluation The main scantling drawings are reviewed with respect to nominal plate thickness, stiffener and girder dimensions, and the grade of material. Local scantlings of buckling stiffeners, brackets, lugs and welds are normally not considered. Verification is based on the design documentation submitted to DNV as part of the design documentation package. Independent analyses are not part of the concept evaluation. The level of analysis is normally similar to the design analysis carried out for a main scantling approval.

29 PAGE 54 DNV Energy SERVICES DESCRIPTION Offshore Classification Pre-contract Services Design Approval Fabrication Survey and Commissioning Certification of Material and Components (CMC) In-serivce Survey Offshore Classification DNV Energy SERVICES DESCRIPTION PAGE 55 Pre-contract Services Design Approval Fabrication Survey and Commissioning Certification of Material and Components (CMC) In-serivce Survey Fabrication Survey and Commissioning DNV will assess the set-up and control at the yard and major sub-contractors prior to the start of fabrication. We will carry out frequent surveys and audits to ensure that approved drawings and plans are being followed. The aim of the activities is to confirm that the unit is built in accordance with DNV class rules. Prior to commencement of construction work, DNV will evaluate the builder s materials control, NDT program, job instructions, specifications and procedures for welding, fabrication, workmanship, installation and testing, among other processes. The DNV surveyor will approach quality monitoring by combining: u Quality System evaluation (audit the performance of the builder s QA/QC system) u Product surveys (inspections, test-survey of the product itself) The two categories complement each other and both are considered necessary to ensure sufficient evidence of compliance with project requirements. During the initial stage of the construction work, DNV will conduct audits to verify correct implementation of the yard s quality system. Surveys at the main yard and subcontractors facilities during the fabrication phase will typically consist of: u Frequent spot checks of the quality system s performance, with emphasis on verifying the yard s fabrication processes and quality control u Inspection of fit-up/edge preparation, preheating and welding procedures for important connections u Final structural inspections u NDT verification of structures and systems u Pressure/leakage testing of structures and systems u Survey of machinery and machinery systems, including certificates, installation onboard (tolerances, alignment, supports, etc.) u Survey of pipes and piping systems (in shop and installation onboard) u Survey of electrical installations including cable routing and testing onboard u Installation inspections u Functional/operational tests u Evaluation of fabrication deviations and minor design modifications u Incoming inspection of non-conforming materials and components The surveyors will keep a record of all scheduled and unscheduled inspections. The fabrication survey and commissioning activities will ensure yards and owners that the unit is built in accordance with DNV class rules and relevant statutory requirements. A flexible regime applies the correct rules and criteria for either harsh environment or benign units. The fabrication survey and commissioning activities are the final steps to ensure that the structure satisfies the society s requirements and can be entered into class. Certification of Material and components (CMC) Systems or equipment delivered from around the world must be certified to class and regulatory requirements before they arrive at the yard or site for subsequent installation and integration. By ensuring that equipment and systems comply with correct specifications and have the right certificates, we help you to avoid unnecessary delays. Our Approach The scope of classification includes certification of safety critical materials, components and systems intended for the unit. The rules define the extent of the certification that is needed for classification. The objective of product certification is to verify that a finished product conforms with specified requirements at the time of certification. The product certification process will vary according to the type of product involved and the manufacturing techniques available to the producer. Other factors include the specific needs of the purchaser and legislative requirements in the jurisdiction where the unit will operate. The manufacturer will normally be given a choice of procedures for the certification process depending on a range of characteristics: the type of products, the nature of the risks involved when the products are used, the production process applied, the qualification of the manufacturer with regard to certified quality system, personnel, among others. The main procedure for product certification has 5 steps: u Planning of project in co-operation with vendor u Assessment of qualification of firms and personnel u Assessment of design quality u Assessment of manufactured quality u Completion of certification project issuing Product Certificate At each step, various certification services may be applied to support the certification body s assessment of the product s conformity with requirements. The manufacturer will normally have to document his qualifications, by procuring certificates testifying to certain skills in the overall organisation, or in an individual employee. All of these certificates do not need to be issued by DNV in order to be found acceptable in the product certification process. The certification is a conformity assessment that normally includes both design and production assessment. The production assessment includes inspection and testing during production and/or of the final product. Certification of materials and components is usually covered by separate agreements between each vendor and the local DNV office. DNV provides technical support, design reviews and surveys to ensure compliance with relevant rules and requirements. By ensuring that equipment and systems arrive at the yard or site with correct specifications and certificates, we help you avoid unnecessary delays and meet your production schedule.

30 PAGE 56 DNV Energy SERVICES DESCRIPTION Offshore Classification Pre-contract Services Design Approval Fabrication Survey and Commissioning Certification of Material and Components (CMC) In-serivce Survey Asset Risk services summary DNV Energy SERVICES DESCRIPTION PAGE 57 In-service Surveys Confirming that an offshore unit meets applicable requirements at all times is key to ensuring safety at sea. DNV develops a tailor-made In-service Inspection Program (IIP) for each mobile offshore unit, and carries out regular surveys to ensure that the unit is maintained at a satisfactory level. Reported damages, such as cracks, serious corrosion, indentations, etc., are logged in a central damage database. The results from the database are used to provide owners and operators of offshore units continuous improvement of our services. Our Approach Classification in the operation phase implies independent surveys to verify that the governing technical requirements associated with the actual class of the unit are maintained at a satisfactory level. The scope of a periodical survey is aligned with the level of significance for the systems and objects surveyed, based on risk and consequence assessments combined with relevant experience. DNV develops a tailor-made In-service Inspection Program (IIP) for the hull structure of each mobile offshore unit. This highlights areas and details to be surveyed by visual and close visual inspection, as well as NDT, and addresses: u Frequency of the various types of inspection u Relevant data from previous surveys u Experience from similar structures The IIPs are based on design calculations as well as relevant information from the fabrication phase. In addition, we apply qualitative consequence considerations in relation to possible failure modes to determine the extent and frequency of inspection. Reported damages, such as cracks, serious corrosion, indentations, etc., are logged in a central damage database, which currently holds more than 4,000 entries. The data is then balanced against other sources of information and can contribute to: u Trend analysis u Highlighting typical defects u Initiation of safety alerts and corrective actions u Modification of survey frequency and extent, as defined in the IIP u Improvement of classification rules Survey information, inspection program and relevant check-lists are made available through the database in the Nauticus Production System, which is available to DNV surveyors world-wide and facilitates reporting and follow-up. Survey information is readily available to owners via the web-based DNV Exchange system, which is a client-operated Class tool that provides secure access to class status, survey, certificates and DNV reference information through the World Wide Web. DNV has survey stations in more than 100 countries and may perform surveys at owners request on short notice anywhere. A formal qualification scheme applies to all DNV technical personnel and ensures that a surveyor has appropriate competence and experience for the survey to be performed. DNV has adapted to modern maintenance techniques by allowing for alternative survey arrangements. Examples of the most common alternatives to traditional open-up inspection techniques : u Continuous surveys on a rotational basis according to an agreed and accepted sequence u Survey arrangements based on owner s approved planned inspection and/or maintenance systems (PMS). Such arrangements may be accepted for mechanical, electrical and instrumentation systems and components. When implemented, the unit s own PMS will be taken as basis for class surveys, provided that the owner s PMS is satisfactorily implemented. The combination of DNV s tailor-made In-service Inspection Program (IIP) and regular surveys ensures that units are maintained at a satisfactory level, thereby safeguarding life at seas. Reported damages, such as cracks, serious corrosion, indentations, etc., are logged in a central damage database. Results from the database provide owners and operators of offshore units continuous improvement of our services. Assessment and Benchmarking of Asset Operation p 60 Asset Operations p 61 Production Optimization p 62 Maintenance and Inspection p 63 Development of Solutions to Failures p 65

31 Asset risk DNV Energy SERVICES DESCRIPTION PAGE 59 Asset Risk Getting ahead of the game Strategy Feasibility & concept selection Asset Operations Performance Production Optimization design Maintenance and Inspection Benchmarking Asset Operations Production Optimization Maintenance and Inspection operation & life extension Fitness for Purpose DECOM MISSIONING Business unit and asset managers have to constantly identify new opportunities to improve operational results and control the risks associated with their operation. The assets that operate more efficiently, reliably and safely than their competitors will be more successful in the long run. DNV has developed a range of solutions to help anticipate and manage these challenges. We work closely with you to understand the unique characteristics of your operation and develop the best solutions for your assets. DNV apply a wide range of methodologies, tools and techniques to consistently build solutions that ensure that you meet your production goals at lowest possible cost without compromising safety and environmental requirements. Our services range from assessment and benchmarking, through management and implementation to advanced materials technology investigations. Our solutions Assessment and Benchmarking of Asset Operations u Identify the strengths, weaknesses and opportunities of your assets through the evaluation of their performance u Benchmark and rate according to industry standards and best practices u Tailored benchmarking and gap assessments according to your requirements and procedures u Develop a road map for implementation of solutions Asset Operations u Develop management strategies for your asset operations activities u Develop efficient and effective work processes for asset management and implement change management programs u Develop lifetime extension programs based on technical and economical decision criteria u Implement asset operation management processes with focus on continuous improvement towards operational excellence Production Optimisation u Provide accurate forecasts of future cash flows and associated risks u Analyse the life-cycle profitability and uncertainty of investing in new technology before significant investments are made u Systematically review and analyse key technological risks for a specific concept, set priorities for further technology development, qualification and testing to reduce and manage these key risks u Combine models from flow assurance and production forecasting to visualize how design, operating and maintenance strategies impact production or transportation availability u Develop improvement solutions based on cost and benefits of achieving high availability Maintenance and Inspection u Develop corporate asset operations philosophies u Optimise maintenance, spare part and logistic support functions u Develop and manage asset inspection program for load-bearing structures, hulls, topside and pipelines u Increase safety performance through SIL analysis and solutions for follow-up of the integrity of safety barriers Development of Solutions to Failures u Structured Root Cause Failure Analysis as a component in proactive maintenance and continuous improvement u Technical and operational failure investigation to develop cost-efficient solutions u Reduce risk of undesirable events by inspection and condition assessments Our clients from various industries have benefited from our customised and integrated solutions. Our work has resulted in increased revenue due to higher production rates, and improved safety performance through systematic focus and follow-up. This has resulted in improved reputation and better stakeholder relationships.

32 PAGE 60 DNV Energy SERVICES DESCRIPTION Asset risk Assessment and Benchmarking of Asset Operation Asset Operations Production Optimization Maintenance and Inspection Development of Solutions to Failures Asset risk DNV Energy SERVICES DESCRIPTION PAGE 61 Assessment and Benchmarking of Asset Operation Asset Operations Production Optimization Maintenance and Inspection Development of Solutions to Failures Assessment and Benchmarking of Asset Operation You want to know your assets strengths and weaknesses, so you ask tough questions. DNV s corporate values stress integrity and objectivity. Living by these values, we can help you ask the right questions to disclose real performance, best practices and improvement opportunities. DNV can help you realise the potential of your assets, enabling class-leading performance. focuses on maximising revenue at optimal cost without compromising your SHE commitment. We recognise the increasing importance of corporate governance and stakeholder demands. Typically, we carry out: u Interviews with your personnel u Evaluations of current work processes u Document and data assessment u Assessment of physical asset condition Our findings help you better understand how key issues impact your asset s revenue, cost and risk management and recognise areas of exceptional or poor performance. Based on this, we identify and prioritise improvement measures on a cost-benefit basis. The results are benchmarked against industry best practice, and can also be compared with a portfolio of assets. Benchmarking will indicate strengths and weaknesses, identify best practices and deploy them across your portfolio to improve assets with lagging performance. Our protocols are consistent with recognised industry standards like PAS 55-Asset. Our expertise Asset Performance Evaluation u Evaluates the overall business performance of your assets, i.e. revenue, cost, work processes, management leadership, safety, etc. u Identifies opportunities for improvement through a combination of protocols and hypothesis generation Maintenance and Operational Performance Evaluation u Investigates how well your maintenance function integrates with other organisational functions, in terms of its contribution to profitability and risk u Determines your asset s capability to prevent mechanical integrity failure u Focuses on key elements that impact your maintenance and operation strategy u Enables benchmarking with similar assets Our customised approach helps you: u Understand better how your assets perform across business, organisational, safety and environmental dimensions u Develop performance improvement strategies u Develop implementation plans based on risk and cost-benefits u Increase confidence in your asset s integrity and improve risk management u Gain significant technology and knowledge transfer Asset Operations Today s demanding business environment requires better and faster decisions to meet business goals and stakeholder expectations. Cross-disciplinary work processes and extensive co-operation with partners must be managed through common asset operation strategies and management systems supporting continuous improvement processes. Recognising and managing change while improving business delivery processes is critical to your business s success and sustainability. Better asset operations implies reducing operating costs and increasing output without compromising safety or quality. Ambitious goals, external influences and new technology are often driving forces for change and work process improvement, and thus put stress on the organisation and management support systems. Our services are designed to create an organisation that is able to maximise production output, and, at the same time, ensure that health, safety and environmental risk are managed within acceptable levels. DNV s services provide assistance in areas critical to the success of process improvement initiatives, including: u Business process evaluation, assessment of existing systems and their effectiveness u Business case development and road maps for improvement u Alignment of asset operation strategies and plans with overall business goals and strategies u Design of new work processes and support systems u Organisational development, including position descriptions, resource management, leadership principles, chart of responsibilities and cultural issues u Decision models based on risk and cost/ benefit principles, enabling consistent and optimised prioritisation of daily work tasks u Balanced scorecard and KPI systems to achieve strategic objectives and link enablers and results u Preparation of company requirement and operational procedures u Assistance with implementation of agreed and planned solutions DNV provides clients with tools and methods to handle an effective change management process that ensures: u Efficient work processes focusing on maximising production throughput and safety u A management system that supports daily work processes and improvement initiatives u Clear organisational roles and work descriptions u Greater focus on areas that are important to the operation and the organisation u Improved delivery times and cost efficiency u A dedicated and motivated workforce u Increased profitability and stakeholder satisfaction Statoil: Towards world class operation and maintenance Statoil hired DNV in 2005 to benchmark the operation and maintenance of its Norwegian offshore installations. The analysis revealed a number of critical issues: reduced production availability, a need for better prioritisation of safety- and production-critical failures, inefficient operation and maintenance management practices across 19 operating assets, and poor utilisation of availability and maintenance opportunities. Based on these findings, the R&V-T project (Availability and Maintenance Initiative) was established in the spring of 2006, with joint Statoil and DNV team. Tasked with implementing new management principles, the team initially analysed maintenance and unplanned production losses on all 19 platforms. Next it developed and implemented a customised coaching programme for each operational unit. Alongside the implementation of the coaching programme, an improved operation and maintenance management system was developed. The revised system for Statoil has also been developed based on regulatory requirements governing maintenance management, as well as general industry best practices. The training of operation and maintenance personnel in the improved system started in mid-november 2006, with approximately 4,000 Statoil employees taking part in e-learning, classroom sessions and workshops. The implementation of the system is expected to result in: Continuous improvement, enhanced production availability, improved management of safety and production-critical equipment, a contribution towards Statoil s objective of world-class performance in the fields of operation and maintenance. US Oil Major: Asset & Operating Integrity DNV helped change the culture for managing equipment integrity at one oil major. A global practice for upstream Asset and Operating Integrity (A&OI) was prepared, and subsequently adopted for use world-wide in all upstream assets. DNV provided assistance to ensure that operations in the United States met these corporate requirements. Existing operations in the continental US were assessed against the global practice, and opportunities for improvement were recorded. In collaboration with management, DNV helped form a long-term strategic plan to sustain A&OI performance, while also assuring that shorter-term tactical actions made a difference in the integrity of assets. This plan balanced the requirements of A&OI with the need for positive effects on business performance. After implementing the solution at several levels, the company saw tangible payback in the first six months of implementation. Safeguards are in place to assure sustained focus, as the organisation sets its sights on industry leadership.

33 PAGE 62 DNV Energy SERVICES DESCRIPTION Asset risk Assessment and Benchmarking of Asset Operation Asset Operations Production Optimization Maintenance and Inspection Development of Solutions to Failures Asset risk DNV Energy SERVICES DESCRIPTION PAGE 63 Assessment and Benchmarking of Asset Operation Asset Operations Production Optimization Maintenance and Inspection Development of Solutions to Failures Production Optimization The world is changing at an everincreasing pace, and more and more of the changes are driven by technology. from new technology can include higher revenues, lower CAPEX, reduced OPEX and/or improved SHE performance. DNV helps its clients analyse the potential associated with implementing new technology before making significant investments. We design processes to manage key uncertainties costeffectively during the implementation. We also work closely with clients to improve production capacities and system regularity in the operations phase. Starting a project will influence the company s overall cash flow today, and in the future. DNV analyses how a proposed investment will affect cash flow and decide whether the project adds value to the company. builds on traditional discounted cash flow (DCF) analysis. Until recently, it was common practice to focus on optimising the balance between potential revenue, capital expenditures (CAPEX) and operational expenditures (OPEX) without including unplanned downtime a risk that can limit revenues for a long time. This third element of the economical balance is denoted RISKEX, for RISK EXpenditures. DNV offers strong modelling capabilities. Flow Assurance modelling and Monte Carlo simulation is combined to optimise throughput and production regularity. Models are used to develop solutions and identify the best investment decisions for operating assets. Combined with failure data analysis and root cause analysis, we can develop improvement programs to increase production uptime and revenues. Important parameters include: u Production capacity profiles u Demand profiles and product prices u Physical asset layout and design u Equipment reliability performance u Maintenance and repair activities including spare part strategies u Operation and mobilisation activities Large capital investments for new technology ventures are typically offset by high future revenue streams. We help our clients select optimal solutions and make appropriate decisions regarding the application and qualification of new technology for their projects. Through our advanced product optimisation support, we provide our clients with: u An accurate forecast of future cash flows and associated risks u Cost savings by avoiding unnecessary attention to areas that are non-critical, and improved focus on areas of higher value u Discovery of enhancement opportunities during the conceptual and design phase, rather than later in the project s life-cycle, when the cost of change is considerably higher u Systematic identification of key technological risks for a specific concept, and setting of priorities for further technology development, qualification and testing (to reduce and manage these risks) u Improved insight into technical and managerial issues that may cause critical failures and production losses u A road map on how to improve production capacities and production availability based on risk and cost-benefit assessments Maintenance and Inspection As the business environment grows more challenging, assets must generate a higher return on investment. DNV develops customised solutions to optimise maintenance and inspection activities, which ensure the safety and integrity of your assets. DNV develops a customised solution, designed specifically to optimise production through effective maintenance and inspection. A risk-based approach ensures that resources are focused where they are most effective, without compromising the asset s safety and environmental performance. Working together with our customers, we transfer the necessary expertise to your organisation, to achieve the best results sooner, smoothly and safely. Our expertise Maintenance, Spare Parts and Logistic Optimisation u Optimises your maintenance programme using our Risk-Based Maintenance (RBM) concept and DNV s own tool: ORBIT RCM u Helps you understand the impact of various maintenance strategies to production and SHE u Improves overall asset availability u Introduces spare part optimisation and specification of spare part strategies and requirements, based on RBM and production forecast modelling Inspection Optimisation u Develops inspection strategies and programmes to achieve high technical integrity for process equipment, pipelines and load-bearing structures u Establishes reporting, monitoring and failure analysis practices to improve quality of inspections u Uses risk-based methods (RBI) to allocate, prioritise and manage inspection resources, using the DNV software tool ORBIT RBI Condition u Establishes risk-based condition management systems to control and manage risks associated with specific damage mechanisms. This maintains and improves technical integrity of plant equipment u Starts automated monitoring of the selected damage mechanism through available process instrumentation, condition monitoring sensors and manual sampling u Introduces right time assessment of condition data utilising risk-based inspection (RBI) models and extensive expertise on materials degradation mechanisms u Provides prognostic assessments by visualising the integrity windows and the technical asset integrity status, using KPIs and traffic light symbolism at equipment, system and installation level u Gives advice on cost-efficient solutions for improved operation and follow-up of compensating measures u Provides stakeholders with technical integrity status reports on assets Ormen Lange deepwater field development: Concept Selection The Ormen Lange field, which is the first deepwater discovery to be developed offshore Norway, is located 130 km off the west coast of Norway, at a depth of about 1,000 metres. Ormen Lange presents a major challenge because of the water depth, the extremely rough seabed, the long tie-back distance and the demanding weather. Together with its partners, Norsk Hydro wanted to evaluate a full range of innovative solutions from a relatively novel subsea-to-land concept (subsea wells tied back to an onshore terminal) to a more traditional deepwater concept, with an offshore processing facility of wet and dry wells. DNV developed a production availability and intervention model to give a quantitative assessment of the financial consequences associated with equipment failures. This provided Norsk Hydro and its partners with valuable insight into the opportunities and threats associated with the various field development concepts. Through quantification and factual understanding of these opportunities and threats, Norsk Hydro could make sound economic decisions. Zueitina Oil Company: Plant Operability Review Zueitina Oil Company (ZOC) requested DNV to conduct a Plant Operability Review of its aging facilities at desert and coastal locations in Libya. DNV was asked to review the current status of two plants and an oil terminal LPG plant, with respect to safety and economic performance, including pressure integrity and plant availability. By using our Maintenance Audit and Asset Performance Appraisal protocols, DNV developed a performance standard. These protocols described some of the best practices currently adopted by major oil organisations such as Statoil, Norsk Hydro and ConocoPhillips. The review helped ZOC understand the performance of its assets, increase its confidence in managing integrity issues, develop better improvement strategies and transfer knowledge and industry best practice.

34 PAGE 64 DNV Energy SERVICES DESCRIPTION Asset risk Assessment and Benchmarking of Asset Operation Asset Operations Production Optimization Maintenance and Inspection Development of Solutions to Failures Asset risk DNV Energy SERVICES DESCRIPTION PAGE 65 Assessment and Benchmarking of Asset Operation Asset Operations Production Optimization Maintenance and Inspection Development of Solutions to Failures Asset Safety System Reliability Managing safety system performance is one of the most important maintenance objectives. Planning tests includes finding the balance between the benefit of improved safety and the cost of testing, including production loss. DNV s approach to implementation of the IEC and IEC standards for safety systems covers both the design and operational phases. During the project design phase, our efforts include: u Hazard identification and areas where risk should be reduced u Risk assessment a dedicated risk assessment to set reliability requirements for the safety functions, or SIL (Safety Integrity Level) u LOPA analysis (Layer of Protection), which takes into account all risk reduction measures available u Reliability analysis to analyse the actual reliability u Development of the Safety Requirements Specification (SRS) for vendor contracts u Documentation requirements u Development of Safety Analysis Reports (SAR) for equipment suppliers u Integration and design of the safety system, definition of requirements to the architectural constraints, hardware reliability and avoidance/control of systematic failures During the operational phase, our efforts include: u Development and implementation of routines for testing and maintenance as an integrated part of the CMMS u Specification of KPI and reporting system for follow-up compliance with SIL requirements u Analysis of the failure history and updating of the testing regime u Study of how unintended testing during operations can be used as part of the reliability estimation Your asset s performance will perform better: u Increased revenue due to higher uptime, a pro-active maintenance and inspection strategy and execution plans u Increased operating results as operation, maintenance and inspection costs shrink u Longer asset life and lower costs for fixed asset replacement u Less working capital needed due to better planning and cash-flow management u Assessment of the initiatives effect on safety and asset integrity Development of Solutions to Failures Materials technology enables us to design durable constructions and components because we better understand ageing processes under different operating conditions. Failures that lead to production losses and threaten life and environment may still occur. By applying our technical expertise, DNV can reveal root causes and create innovative solutions that reduce the risk of material damages. This then improves performance with respect to business interruptions and economical losses. We have proven ourselves as a credible partner. Our Approach DNV offers unique expertise within materials technology. This forms the basis for a large set of services related to materials selection, design verification, qualification of new technology and manufacturing of critical components in the design and construction phase. For plants in operation, we employ the same technology base. Thus we can identify possible damage, study its extent, identify the cause of failure and establish programs to mitigate ill effects and improve performance. We aim to ensure that your equipment is fit for purpose and performs its intended function in a cost-efficient and safe manner. By combining fitness for purpose services with other technical services and business consulting skills, DNV is uniquely positioned to help our clients understand technical challenges, while developing the best solution to meet business goals and requirements. u Evaluation of compliance with specifications and operational design conditions u Evaluation of unintentional incidents and failure causes u Failure investigations, including field inspections and damage analyses u Non-destructive testing and measurements u Laboratory testing u Fracture mechanics calculation and testing, and fatigue assessments u Fitness for purpose assessments u Development of programs to mitigate damages Through our fitness for purpose services, DNV provides clients with: u Advice on how to avoid major production breakdowns, critical safety failures and accidents u A better understanding of the root causes of failures, enabling appropriate corrective action u Cost savings by avoiding unnecessary and repeated breakdowns and operational interruptions u Cost-efficient and safe solutions to technical and operational problems ConocoPhillips Indonesia: Belanak Offshore Field Risk-Based Maintenance Planning and Implementation in SAP work order system ConocoPhillips Indonesia (COPI) asked DNV to conduct integrated Risk-Based Inspection and Maintenance planning of their Belanak Offshore Field facilities. These include one of the world s most complex FPSO topside process facilities, two wellhead platforms and an offshore oil offloading buoy (OOB). DNV carried out risk-based screening analysis and inspection based on DNV-RP-G101. It also ran streamlined reliability-centred maintenance (RCM) in compliance with SAEJA1011, using the DNV ORBIT software package. Optimised inspection and maintenance plans were developed for the FPSO hull, WHP structures and the FPSO and WHP process systems. We also prepared detailed procedures for RBI/RCM-generated preventive and pro-active maintenance tasks, according to the resource requirements. Subsequently, all of the tasks were reviewed and bundled, and a maintenance plan was developed and uploaded to the COPI SAP ERP system. COPI claims that this is the first complete implementation in SAP of a Risk-Based Maintenance Approach. Following the success og the Belanak project, COPI engaged DNV Singapore to implement RCM for two further facilities in Singapore and Indonesia. COPI s head office in Houston is keen to drive the implementation of RCM for all of its eastern hub facilities in Indonesia. UNIPETROL: Improving maintenance UNIPETROL, a newly privatised company, operates a number of petrochemical plants in the Czech republic. UNIPETROL contracted DNV to benchmark the performance of their maintenance function against world class maintenance in order to improve plant realiability. DNV reviewed the maintenance processes, organisations and performance indicators at four different UNIPETROL plants. The analysis revealed a number of improvement areas at each location. Based on the results from the assessment, DNV and UNIPETROL agreed to carry out a pilot project to optimise the maintenance plan at one of their plants by scrutinising and improving the current maintenance tasks. The pilot project revealed that significant improvements could be achieved. UNIPETROL, with support of DNV, now intends to continue optimising the maintenance based on the principles established in the pilot project. The pilot project also revealed new areas of improvement regarding monitoring of equipment condition. This has caused UNIPETROL s maintenance management to review the way maintenance is carried out and reported to regain control of maintenance costs.

35 PAGE 66 DNV Energy SERVICES DESCRIPTION DNV Energy SERVICES DESCRIPTION PAGE 67 DNV locations DNV serves the energy industry from more than 40 primary locations worldwide. In addition, we draw on DNV s entire worldwide network of 300 offices in 100 countries. Trondheim Bergen Stavanger Oslo Aberdeen Sandefjord Esbjerg Copenhagen Manchester Moscow London Antwerp Paris Essen Astana Tanggu Calgary Halifax St. John s Tripoli Kuwait Shanghai Columbus Doha Abu Dhabi Muscat Houston Mumbai Lagos Ho Chi Minh City Kuala Lumpur Singapore Vung Tau Trinidad Luanda Jakarta Salvador Rio de Janeiro Macaé São Paulo Porto Alegre Buenos Aires