© 2013 Chevron D EEP S TAR ® Global Deepwater Technology Development Phase XII CTR Project Proposal Time-line, Guidance and Instruction for completing The CTR Project Proposal 1

© 2013 Chevron DeepStar Timeline 2 Phase XI 2013 Phase XI 2013 Phase XII 2014 Phase XII 2015 Phase XII Planning Phase XI Close Out Phase XII Close Out Phase XIII 2016 Phase XIII 2017 Phase XIII 2017 Phase XIII Planning Phase XI 2012 Where we are now Develop FRPs Bid Contract Execute Projects Projects’ Close Out Identify Needs Collaborative Prioritize Needs Develop CTRs Prioritize CTRs at TCs Management Committee Vote Develop FRPs Bid Contract Execute Projects Projects’ Close Out

© 2013 Chevron Phase XII Call for Project Ideas  NOW: Projects ideas - preparation of a CTR (Cost, Time & Resources) at the Technical Committee Level. CTRs are generated by: –Operator SMEs who see a business need within their operations or future field developments. –Vendors / Service companies who see opportunities for improvements –Academics who see potential applications for their work  JUNE: CTRs are presented and discussed at TC meetings  JUNE – SEPT: CTRs are vetted and consolidated (as needed) into distinct Projects  SEPT:CTRs are ranked and prioritized by the Technical Committees  OCT: Management Committee votes on portfolio of R&D projects  JAN (14): Approved projects are bid, negotiated, contracted and managed utilizing industries’ best practices 3

© 2013 Chevron DeepStar Phase XII CTR Project Proposal Who should provide the CTR Project details? 1.Technical Manager a)Background and business case incentive to invest b)Project (Overall) framing and objective c)Project (CTR) abstract 2.Subject Matter Expert (SME) a)Project (CTR) Scope of Work b)Deliverables (CTR) c)Project (CTR) estimated cost and schedule rationale 4

© 2013 Chevron Background and Business Case Incentive to Invest  A compelling and, to the extent possible, quantifiable description of the Business need and why DeepStar should invest in the technology/effort/activity. a)A single paragraph summary of overall opportunity / need b)REFERENCE Case: What will happen (or won’t happen) if the proposed work is not done. c)INVESTMENT Case: What will happen (or won’t happen) if the proposed work is done. d)PROJECT Value: Difference between the above 2 cases e)List of assumptions for the above and discussion on any alternate solutions. 5

© 2013 Chevron Project (Overall) Framing & Objective Technical Manager Input  Time-line summary of all the activities / actions / major decisions and funding necessary to meet / achieve the Business Case. –Time-line should be overlaid with TRL progression with appropriate stage- gates from current state of technology maturity to ultimate end point (MCP ready / Commercialization / Standard / etc.) –Superimposed and highlighted along the time-line should be the subject CTR, start to finish. 6

© 2013 Chevron Project (Overall) Framing & Objective – cont’d. Time-line 7

© 2013 Chevron Project (Overall) Framing & Objective – cont’d.  Along with the time-line please provide: 1.Clear statement of where the technology stands today (TRL?) and summary of any related work on the topic 2.Clear statement of what the subject CTR will do to progress the need from current state (TRL) through to commercial solution – or the next identified stage-gate. Show clear linkage to a DeepStar operator identified challenge / need 3.Some detail on next step / stage-gate and general summary of remaing activities after successful execution of subject CTR. 8

© 2013 Chevron Project (CTR) Abstract  Single paragraph description of subject CTR work –This is a subset of the overall opportunity summary required in the “Background and Business Case” section of the CTR form. 9

© 2013 Chevron Project (CTR) Scope of Work SME Input  Define the extent of the work under subject CTR as well as the limits / boundaries.  Define the work required to be done under subject CTR to achieve the Deliverables. –Include all sub tasks. 10

© 2013 Chevron Deliverables (CTR) SME Input  List of specific and tangible Deliverables and metrics of the project.  How will you know when the project is complete?  How will work quality / success be evaluated? 11

© 2013 Chevron Project (CTR) Estimated Cost and Schedule Rationale SME Input  Estimate the cost and schedule required to complete the work proposed in subject CTR. This is an expanded subset of the overall time-line. –Sufficient detail should be provided to justify the estimate. –Can be based upon manpower, equipment and/or expense requirements. –Indicate if in-kind funds will be leveraged to match DeepStar funding. 12