Smarter Infrastructure For Oil and Gas SCADA - The Value and Existing Systems Phil Goulet, Vice President, Schneider Electric December 3, 2013

Schneider Electric 2 SCADA Smart Infrastructure Objectives ●From a SCADA Supplier Perspective, The Benefits of Internet Protocols Everywhere and Publish & Subscription of Data ●Ease Of Implementation ●Long Term Cost of Ownership Benefits, for Suppliers & Clients

Schneider Electric 3 Schneider Electric – the global specialist in energy management billion € sales (last twelve months) of sales in new economies (last twelve months) people in 100+ countries of sales devoted to R&D Residential 9% Utilities & Infrastructure 24% Industrial & machines 22% Data centres 16% Non-residential buildings 29% Balanced geographies Diversified end markets North America 23% Asia Pacific 27% Rest of World 18% Western Europe 32%

Schneider Electric 4 Crude Oil and Refined Products Approximately 124,000 miles or 50% of the crude oil and refined product pipelines in North America have a Schneider Electric SCADA System installed Gas Transmission Over 140,000 miles or 40% of gas transmission pipe in North America has a Schneider Electric SCADA System installed LDC (Local Natural Gas Distribution Companies) Approximately 1/3 of all North American natural gas customers receive natural gas from a gas distribution system monitored and controlled by a Schneider Electric SCADA System Oil & Gas Production Over 100,000 wells in North America have a Schneider Electric SCADA System installed Schneider Electric's SCADA Presence

Schneider Electric 5 Pipeline Scheduling & Power Optimization We Control, manage and optimize Oil & Gas Pipelines Control Pipeline Monitor & Control Security Monitoring “I control our facilities processes" Enterprise "I conserve our enterprise resources" Operations Simulation Suite Liquid Suite "I optimize our operations and assets" Software suite StruxureWare for O&G Gas Suite KPI - Dashboard Reporting Asset Mngt (GIS, Field Maintenace Work Flow Logistics, Billing & Transactions Pumping / Compress Stations Block Valve Station Metering Station R/IO Local SCADA Local HMI Instruments field networks Analog Instruments PLC / RTU Field Local HMI SIL 3 PLC- SIL3 Wireless Wired RTU MV Protection Quality Motor Controllers HV Protection Gateway Energy PACIS Access Controller Security Local HMI Analyzers Gas Quality Flow Meter Pig / Interface SCADASecurity SCADA Main Control Center Backup C.C. WS EFM (Flow) Validation & Verification Enterprise Network Control Network Field Networks MiddleWare (ESB, API’s) Local DCS / SCADA Terminal Station Accutech Access Control Tanks Mngt Pumping Control Fuel Loading SIL Optional Energy Mngt & Control Logistics, Billing & Transactions Shift Hand over, Doc & Audit Trail

Schneider Electric 6 SCADA Topologies Hierarchical

Schneider Electric 7 Server request response Client request response Client NETWORK Client-Server Architecture

Schneider Electric 8 Business Trends ●SCADA Trends ● Situational Awareness FASTER ● Plug & Play ● Highly Regulated ●Environmental Trends ● More Data to Further Enable the Business ● Empowering Decision Makers to Optimize the Business ●Computer Technology ●Virtualization ● Cloud Computing ● SaaS Model & Hosted ● N-1 Software Support Mindset ● Data Integration

Schneider Electric 9 Implementation Of Pub/Sub in the Field ●Parallel Operation ● Previous Generation & MQTT /IP Protocols can Co-Exist ●Testing and Quality Assurance ● All Field Communications, Data, Screens, Reports, etc. Can be Validated prior to Actual In Production ● Test, Development & Quality Assurance Systems can now be Run Against Actual Field Data, Real Time, Operational Environment

Schneider Electric 10 SCADA Facts: ● Custom Proprietary Protocols are of No Value Any More ● The Oil & Gas Industry has Changed Substantially just in the last 5 Years, SCADA Solutions need to Keep Up ● Just Implementing an IP Enabled Device Every Where Helps But Doesn’t Get you All the Business Value

Schneider Electric 11 Smarter SCADA Infrastructure Transformation Benefits: From the SCADA Supplier Perspective Project Development Only ONE Industry Standard Protocol is Required Reduced Project Schedule Reduced Project Budget Reduced Project Risk Customer Support prior to Shipment All Field Communications can be tested in the Factory The SCADA Database is 100% verified in the Factory All Applications Can be More Thoroughly Tested in the Factory Customer Support In the Field Point to Point PHMSA Requirement now becomes Manageable & Cost Efficient Support is Very Manageable & Complete due to Virtualization & Pub/Sub Broker System Cutover Costs are Reduced for Both Companies Continuous Microsoft Updates & Patches Can now be Implement Efficiently

Schneider Electric 12 Smarter SCADA Infrastructure New Opportunities: From the SCADA Supplier Perspective SaaS, Hosted Applications Cloud Based SCADA Solutions Cloud Based Applications Like Leak Detection, Gas Measurement Energy & Business Optimization Energy & Business Optimization Applications are now decoupled from Data Source Applications now Access a Virtually Integrated Corporation, Not Constrained by Communications or Proprietary Legacy Databases Business Applications Cloud Based Business Optimization Applications Ease of Adding & Deleting Assets Productivity Applications

Thank You Phil Goulet, Vice President, Schneider Electric

Schneider Electric 14 Customer pain points Increased environmental regulatory & public pressure Need to drive efficiency with less skilled resources Increased physical and cyber security threats Manage CAPEX & OPEX costs Customer pain points Increased environmental regulatory & public pressure Need to drive efficiency with less skilled resources Increased physical and cyber security threats Manage CAPEX & OPEX costs Customer benefits Enhanced safety and reliability Mitigated risks Regulatory compliance Response to abnormal events Leak detection Cyber & physical security Reduced project implementation risk & cost thru Integrated Solution Optimized Energy usage Customer benefits Enhanced safety and reliability Mitigated risks Regulatory compliance Response to abnormal events Leak detection Cyber & physical security Reduced project implementation risk & cost thru Integrated Solution Optimized Energy usage Key successes TransCanada (Keystone) Pembina Pipeline Caspian Pipeline Consortium Pertamina - Indonesia ADNOC – ADMA GDF – GRT gaz TOTAL /PDVSA CNPC – Petrochina Chevron Pipeline USA Conoco Pipelines Key successes TransCanada (Keystone) Pembina Pipeline Caspian Pipeline Consortium Pertamina - Indonesia ADNOC – ADMA GDF – GRT gaz TOTAL /PDVSA CNPC – Petrochina Chevron Pipeline USA Conoco Pipelines