Marty Massey, Chief Executive Officer Marine Well Containment Company

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Marty Massey, Chief Executive Officer Marine Well Containment Company Phil Smith, General Manager Emergency Management and Deepwater Regulatory, Shell Energy Resources Company

About MWCC Leading deepwater well containment system and technology provider for U.S. Gulf of Mexico Expertise in subsea containment and incident response training Independent company, not for the purpose of making a profit 10 members, representing 70% of the deepwater wells drilled from 2007-2009 Each member has an equal share and an equal vote Investment of over $1 billion into system System available to all operators in the U.S. Gulf of Mexico as a member or as a non-member (per well basis) 103 permits citing MWCC s containment system approved by BSEE 2

Demonstration Purpose Regulations require, as part of each permit application, an Operator to demonstrate that it has access to and can deploy containment resources to promptly respond to a blowout or other loss of well control BSEE requested that MWCC: Safely demonstrate the mobilization, deployment, and operational functionality of MWCC s Interim Containment System (ICS) Safely execute the tactical plans associated with the mobilization, installation and operation of the SRCS Shell volunteered to act as the Responsible Party for the purposes of the Demonstration

Designing the Demonstration Conduct unannounced drill Mobilize capping stack and support equipment Complete pre-deployment testing Deploy capping stack at Walker Ridge 536 at 6,950 ft water depth on wire Function capping stack system components subsea Conduct shut-in process simulating a real event using well control screening tool inputs Pressure test capping stack to 10,000 PSI for 20 minutes Recover capping stack and parking pile 4

Getting the Call: Shell Mobilization Received call from BSEE Mobilized Shell Response Team at Command Center Activated MWCC to commence mobilization activities Loaded Heave Compensated Landing System (HCLS), ROV tooling and communications equipment at Port Fourchon on Laney Chouest Directed Laney Chouest to Greensport to pick up MWCC capping stack Progressed Day-1 activities for full response effort Surface and Subsea 5

Calling out the Containment System Received activation call from Shell Mustered MWCC Response Team at MWCC HQ Conducted situation status briefing Deployed MWCC liaisons to Shell Command Coordinated ETAs of real and simulated response equipment called-out MWCC coordinated with Shell on equipment mobilization requirements and delivery

Equipment Pre-Mobilization Loaded and transported ancillary equipment to Port Fourchon for transport by second vessel offshore Loaded SRCS onto trailer & transported to Greensport Conducted SRCS pre-deployment testing Loaded SRCS onto Laney Chouest Sea-fastened and tied-down SRCS in preparation for transport offshore MWCC worked closely with BSEE to ensure adequate testing of equipment prior to transport offshore 7

Working Closely with the Regulator BSEE fully integrated with all Shell and MWCC mobilization activities SRCS pre-deployment testing Equipment load-out operations at Port Fourchon and Greensport Maintained communications link with Department of Interior leadership in Washington D.C. MWCC and Shell ensured the regulator was informed during operations

Equipment Deployment Vessels arrived onsite Deployed hydraulic accumulator skid (OI-IV) Capping stack landed and latched on simulated wellhead using Heave Compensated Landing System Closed ram on SRCS Installed vector connectors & secondary containment cap BSEE and MWCC were part of the Incident Command Team during all operations

Monitoring Operations Developed and utilized Common Operating Picture (COP) to maintain a view of all operations Utilized Incident Command System (ICS) organizational structure to manage operations Provided daily briefings to BSEE leadership Maintained communications with the Department of Interior BSEE, MWCC and Shell used this information to aid decision-making 10

Deciding to Shut-In the Well Utilized flow modeling and the well containment screening tool (WCST) to aid simulated well shut-in decision-making The WCST, developed by a joint industry task force analyzes the well s mechanical and geologic integrity to determine whether the well can be shut-in Shell assembled a team to complete the modeling, run scenarios and respond to BSEE injects

The Shut-In Process Followed prescribed shut-in process Held operations at certain points for pressure injects Utilized WCST outputs to determine well integrity information Continued to shut-in the well based on Unified Command decision-making

The Pressure Test The Capping Stack held to more than 10,000 PSI for 20 minutes as it had during previous onshore testing 13

Demonstration Conclusion Retrieved the capping stack and ancillary equipment Delivered equipment to MWCC shore base for refurbishment and preservation Deployment executed with no recordable incidents Collaboration and pre-planning was key to the successful completion of the MWCC Capping Stack Demonstration 14

Key Observations Cooperation among key parties (BSEE/USCG/MWCC/Shell) was effective in managing response Unified Command decision-making during simulated shut-in worked well Hazard Identification (HAZID) and contingency planning provided alternatives to potential operational exposures Equipment enhancements were identified resulting improvements will improve capability 15

What s next for MWCC? Modular Capture Vessel (MCV) 16

Questions?