1. 1 Spars for Deepwater Developments Don Vardeman VP, Worldwide Projects Anadarko Petroleum Corp September 9, 2009

2. 2 Pompano Conger Northwestern Red Hawk Gunnison Boomvang Baldpate Neptune Nansen Net Daily Production (MBOE) Constitution Independence Hub Marco Polo 20 40 60 80 100 120 140 160 0 1995 1997 1999 2007 2001 20032005 2009 1993 Blind Faith Anadarko Deepwater Experience Nearly 15 year history of production growth

3. 3 History Of The Spar Flip - Spar Vessel

4. 4 Ed Horton – Spar Inventor Started Deep Oil Technology in mid 1980’s Identified Spar technology as a candidate for use as a production facility Received citation from OTC in 1997 for his contributions to the offshore industry, Member of National Academy of Engineering, and National Academy of Science

5. 5 What is a Spar? Patented in 1986 by Ed Horton for deepwater development  Deep draft (450’ to 650’) provides excellent storm performance and stability for operations  Riser system enables direct wellbore access 3 Generations of Spar technology pioneered by APC/Ed Horton/Technip/McDermott supply chain  Classic spar (1997) – 705’ cylinder  Truss spar (2002) – truss reduces length, weight, fabrication and transportation cost, improves performance  Cell spar (2004) – multiple smaller cylinders reduce fabrication cost 17 Spars in operation  6 are APC operated  12 Fabricated in Technip’s Pori, Finland yard  Deepest is Shell’s Perdido in 7816’ in GOM  Production capacity from 250 MMCFD (APC’s Red Hawk cell spar) to 125,000 BOPD (Chevron’s Tahiti truss spar) CLASSIC SPAR 72’ TO 122’ diameter APC – Neptune - 1997 TRUSS SPAR 90’ TO 149’ diameter APC – Nansen - 2002 CELL SPAR 64’ diameter APC- Red Hawk - 2004

6. 6 Typical Truss Spar Performance Characteristics

7. 7 Upper 220 ft of the hull Subdivided into smaller watertight compartments  Four lower contain seawater ballast  Remainder are dry, void spaces Double-wall hull around the waterline Neptune Hull – Hard Tank

8. 8 Middle Section  Protects risers Lowest Section  “Keel” Tank  Temporary ballast for wet tow Neptune Lower Hull

9. 9 Neptune Mooring System

10. 10 Neptune Offset Drilling With MODU

11. 11 Neptune Offset Drilling with MODU

12. 12 Neptune Riser Structure

13. 13 Riser Systems

14. 14 Spar Fabrication

15. 15 Spar Fabrication

16. 16 Spar Transportation

17. 17 Spar Installation

18. 18 Spar Development – Nansen and Boomvang Spars

19. 19 Hub and Spoke Developments Enables multiple fields to be gathered on one floating host platform for processing  Record gas well tieback is 89 miles  Record oil well tieback is 43 miles  Subsea pumping technology expands recovery radius Presence of floater is an enabler for economic recovery of reserves as additional discoveries are made in a region. Cumulative efficiency synergies enable marginal tiebacks. APC operates spars, tension leg platforms, deep draft semi- submersibles and FPSOs as host facilities. Constitution Spar Hub

20. 20 Spar Motions Superior Vessel Motion Characteristics  Dry tree applications  SCR fatigue resistant designs even in sour service  Lateral offset for side-by-side drilling Robust configuration promotes good stability performance Flexibility to increase or re-allocate payload

21. 21 Weather Conditions Influence Cost and Schedule Hurricane Ivan in 2004 in Gulf of Mexico – Direct hit on Anadarko’s Neptune Spar

22. 22 How APC Facilities Responded IH (Gustav)MP (Ike)CT (Ike)RH (Ike) Distance from Centerline 63 miles69 miles47 miles18 miles Wind Vw116 mph127 mph136 mph125 mph Wave Hs21 ‘45’51.7’44’ Wave Hmax37’78’90’76’ Offset Feet151’280’180’201’ Pitch/Roll3.3N/A