1. Erling Sæbø 24.08.2010 Barents 2020: start-up phase 4 Meeting in Moscow 24 – 25 August 2010

2. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 2 Barents 2020 project history  2007: The project was initially financed by the Norwegian Government to safeguard offshore petroleum activity in the High North  2008: Cooperation was established with Russian Industry and TK 23, bacause safe petroleum activity in the Barents Sea is a shared responsibility between Russia and Norway  2009: Barents 2020 phase 3 was a Russian – Norwegian cooperation project Intention: Harmonisation of HSE standards between Russia and Norway to contribute to a uniform safety level across the national border and to support international industrial cooperation in the Barents Sea 130 International standards were assessed for application in the Barents Sea  2010:Barents 2020 Phase 4 has become an international joint industry project, in order to draw on a wider source of competence to address the arctic challenges of the Barents Sea.

3. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 3 Barents 2020 – has become an international joint industry project

4. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 4 Barents 2020 project – more relevant than ever

5. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 5 Arctic Challenges  Low temperatures - Working Environment - Cold Flow - Selection of materials  Ice - Sea ice and ice loads - Icebergs and Ice management - Icing  Darkness - Working environment - Rescue  Remoteness - Emergency preparedness - Transportation of personnel and equipment  Vulnerable Environment

6. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 6 Barents Sea is not uniform with respect to ice and metocean conditions Barents Sea = Coastline Tromsø – Ostrov Island (Kara Gate), West coast of Novaya Zemlya, northern tip of NZ to north ofFranz Josef Land, shelf break to NW of Spitsbergen, shelf break toTromsø Coastal areas are included due to terminals, harbors, yards and future onshore related plants, e.g. for LNG Main Findings -Ice and Metocean conditions vary in the Barents Sea, but are uniform within each numbered sub-area -Waves and winds are lower than in North Sea -Main difference from North Sea is ice and icing, and current standards do not cover these loads -New standard ISO 19906 is a good basis for ice loads on arctic structures – however further guidance is required I II III IV V VI VII VIII

7. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 7 Platforms are different in the Arctic  Explosion and fire risk management: Cold and harsh climate require protection of personnel and process equipment by enclosing the process areas. Explosion and fire risk management is considered to an important area with respect to safe design of arctic offshore installations.  Ignition source control: Cold climate will require increased sheltering of hazardous areas. This reduces the ventilation rate compared to naturally ventilated areas, and may cause even a relatively small release of hydrocarbons to build up an ignitable gas cloud of sufficient size to expose an ignition source. Sevan Hummingbird, North SeaSevan Goliat, Barents Sea

8. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 8 EER - Changes from North Sea Practice EER: Escape, Evacuation and Rescue - Survival suits adapted to Arctic conditions; - Built-in or covered escape ways; - Temporary safe refuge for personnel providing protection for days, rather than hours; - Alternatives to free fall lifeboats in case of ice conditions; - Hospital/medical capability on installations; - Better equipped standby vessels, adapted to take on board new types of life crafts, and to suit man overboard rescues; - Helicopters adapted to actual distances and climate conditions;

9. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 9 Higher risk for Arctic Oil and Gas (Risk = Probability * Consequence) Probability of failure Risk Categories Very high Medium Very Low 5 4 3 2 1 ConsequenceInsignificant Bad Catastrophic Arctic; severity of consequences drives risks Risk Reduction must take place through prevention

10. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 10 Project Scope: Agree common standards for the Barents Sea

11. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 11 Practical use of phase 3 Recommendations Final report - phase 3 - has been sent to:  National (Russian and Norwegian) and international standardisation organisations (e.g. ISO) for consideration at next standard update  national regulators in Russia and Norway for information  operators and designers as input to project specifications until updated standards are available (may take several years)  research organisations and consultants as input for further work  Goal: Harmonisation of Health, Safety and Environmental Protection Standards for the Barents Sea – as basis for better cooperation

12. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 12 Barents 2020 phase 4 – purpose and deliverables  Phase 4 projects address recommendations from the phase 3 report  Phase 4 Working Groups shall produce concrete deliverables, e.g. guidance documents to support existing functional standards, especially ISO 19906  Focus is on the Barents Sea, but the work is pan arctic in scope, e.g. ice loads on floaters, risk assessment in cold climate, EER in cold climate, working environment and human factors, ice management, and emissions and discharges from ships and offshore units.  The aim is to fill a need in an interim period until industry standards are developed and or updated  International operators and OGP participate in phase 4, so we can involve the best arctic competence  Phase 4 project results may be freely used by operators, regulators, standardisation organisations, a. o.

13. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 13 Приложение 1 Наименование тем для дальнейшей работы NoTask / Project/НаименованиеSchedule/ Время RN02Prepare Guidance to ISO 19906 for design of installations against ice-loads / Разработка проекта Технического отчета ISO в части проектирования стационарных плавучих установок в Баренцевом море с учетом ледовых нагрузок 2010 - 2011 RN03Conduct workshops on practical use of risk assessment, based for Barents Sea Installations/ Проведение семинаров по практическому применению методов для оценки риска установок в Баренцевом море 2010 - 2011 RN04Prepare guidance document to ISO 19906 on Escape, Evacuation and Rescue for the Barents Sea Разработка проекта Технического отчета ISO в части эвакуации и спасения персонала в Баренцевом море 2010 - 2011 RN05Prepare Guidance to ISO 19906 for safe working environment for offshore activities in the Barents Sea Разработка проекта Технического отчета ISO в части безопасной рабочей среды для персонала находящегося на борту судов и морских установок в Баренцевом море 2010 - 2011 RN06Prepare Guidance for Ice management based on ISO 19906 for Barents Sea operations Разработка проекта Технического отчета ISO в части управления ледовой обстановкой в Баренцевом море 2010 - 2011 RN07Develop a regional environmental standard for the Barents Sea to reflect MARPOL Special Area (SA) requirements for discharges and emissions from oil and gas related ship traffic and offshore units Разработка проекта практического руководства для нефтегазовых компаний по операционным выбросам в атмосферу и в море для условий Баренцева моря, включая применение требований MARPOL для особых зон 2010 - 2011

14. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 14 Barents 2020 phase 4 – committed funding from sponsors Sponsor (contributions in million NOK) 1 Mill NOK = 5 Mill Roubles In kind Mill NOK Financial Mill NOK Total Mill NOK SC membership 1 Gazprom3.5* Shtokman Development Company AG1.350.652.0* Statoil1.52.03.5* Norwegian Ministry of Foreign Affairs2.0 DNV1.0 * TOTAL1.62.03.6* ENI Norge AS2.0 * The International Association of oil and gas producers – OGP. 1.0 2.0* Phase 3 sponsors continuing to support, e.g. Transocean, MossMaritime 1.00 Total funding20.6 1: Other SC members will be Russian Rostekregulirovanie and Standards Norway

15. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 15 Organisation of project work – phase 4  Steering Committee: - Gazprom, Statoil, SDAG, ENI, TOTAL, OGP, DNV, Standard Norway, Rostekregulirovanie  Project Management: Gazprom /TK 23 and DNV.  7 expert groups (Russian and International experts)  Each group will have a DNV coordinator, and a Russian coordinator appointed by TK 23, - as in phase 3.  First progress report for each group will be at the Barents 2020 conference in Moscow December 7-10, 2010, at VNIIGAZ  Final Results / Documents should be presented in December 2011.

16. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 16 Barents 2020 phase 4 – coordinators / Баренц 2020, 4 фаза проекта - Координаторы RN/ ГруппаRussian coordinator/ с российской стороны Norwegian coordinator/ с норвежской стороны Task Force; Status & Formatting of documents produced in phase 4/ Спец.группа по определению формата, содержания и статуса будущих документов V.Vernikovsky/ В.Верниковский T. Sildnes/ Т.Силднес RN 02/ Группа 02M.Mansurov/ М.Мансуров L.I. Eide/ Л.Эйде RN 03/ Группа 03V.Lesnykh/ В.ЛесныхB.Paaske/ Б.Пааске RN 04/ Группа 04S.Kovalev/ С.КовалевG. Cammaert/ Г.Каммаерт RN 05/ Группа 05A.Terekhov/ А.ТереховS.Sawhill/ С. Сохилл RN 06/ Группа 06D.Onishenko/ Д.Онищенко M. Mejlaender-Larsen/ М.Меландер-Ларсен RN 07/ Группа 07E.Bukhgalter/ Э.Бухгалтер S. Nesse/ С.Нэссе

17. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 17 More than 100 Russian and Norwegian Experts participated in phase 3 2.Workshops in Norway in June 2009

18. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 18 Program for 1. Expert meeting – Barents 2020 phase 4 Monday 23.8Tuesday 24.8Wednesday 25.8 Travel to Moscow 08.30 Bus to VNIIGAZ 10.00 Plenum meeting for all groups to review plans for phase 4. Project manager and all coordinators present scope of work for all tasks. (10 minutes each plus Q & A) Check out of hotel 8.30 Bus to VNIIGAZ 10.00 Continue group meetings. Agree work plan until next workshop in December 2010 13.00 Lunch 14.00 Bus departure for airport (Sheremetievo) Minibus for Baltschug Taxi for Domodedovo 12.00 Lunch Bus transport to hotel 13.00 7 Group meetings in 7 separate rooms Discuss and agree group objectives and, how to use workshops to review progress, and the time in between for homework according to agreed plans Stay at Baltschug Hotel17.15 Bus transport to restaurant 18.30 Dinner for all participants Depart from Moscow

19. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 19 Working program for expert groups RN02 – RN07 24-25 August 2010 December 7-10, 2010 May 2011September 2011December 2011 Moscow Oslo??Moscow Discuss and Agree group objectives and work plan Present agreed list of content of recommended practice Get format for report from RN01. Progress Report to Barents 2020 conference at Vniigaz, - get feedback /correct direction Draft report 50% ready, Main problems identified and discussed Draft report 95% ready Discuss final, cosmetic changes only (1%?) Present final report at VNIIGAZ conference

20. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 20 Barents 2020 Final Conference in Moscow 17.12.2009

21. © Det Norske Veritas AS. All rights reserved. Barents 2020 project 30 June 2010 21 Safeguarding life, property and the environment www.dnv.com