1. PlusAlpha Risk Management Solutions, LLC www.PlusAlphaRisk.com randalls@plusalpharisk.com +832.298.4380 Barrier and Project Interface Management The Keys to Making New Offshore Regulations, Standards and Practices Effective Barrier and Project Interface Management The Keys to Making New Offshore Regulations, Standards and Practices Effective Scott W. Randall Managing Director, PlusAlpha Risk/BMC,LLC September 12, 2012

2. Regulations and Standards Post-Macondo Include:

3. PlusAlpha Risk Management Solutions, LLC www.PlusAlphaRisk.com randalls@plusalpharisk.com +832.298.4380 THE BOW-TIE SYSTEM INTEGRATES THE COMMON ELEMENTS Effective Implementation of Post- Macondo Barrier Standards Faces the following risk management challenges: 1.Lack of a Unifying Link between RP75, RP96 and BUL97 2.Poor Communication of Risk Information at the Interfaces

4. PlusAlpha Risk Management Solutions, LLC www.PlusAlphaRisk.com randalls@plusalpharisk.com +832.298.4380 HOW DO THESE WORK TOGETHER TO MAKE A DIFFERENCE?

5. PlusAlpha Risk Management Solutions, LLC www.PlusAlphaRisk.com randalls@plusalpharisk.com +832.298.4380 Well Control Problem Areas Across the Project Life Cycle RISK MANAGEMENT ACTIVITIES

6. PlusAlpha Risk Management Solutions, LLC www.PlusAlphaRisk.com randalls@plusalpharisk.com +832.298.4380 The Barrier Approach –Accepted Internationally (ISO 17776) –Highlighted throughout the Macondo Investigation –Important Part of the proposed Deepwater well design and construction standard (API RP96) Annex A –Facilitated through the Bow-Tie Diagram Making It Effective: One Idea

7. BOW-TIE SYSTEM PROVIDES A COMMON LANGUAGE Pre Concept

8. PlusAlpha Risk Management Solutions, LLC www.PlusAlphaRisk.com randalls@plusalpharisk.com +832.298.4380 SIMPLIFIED WELL CONTROL BOW-TIE

9. PlusAlpha Risk Management Solutions, LLC www.PlusAlphaRisk.com randalls@plusalpharisk.com +832.298.4380 ONE EXAMPLE OF INTEGRATION

10. PlusAlpha Risk Management Solutions, LLC www.PlusAlphaRisk.com randalls@plusalpharisk.com +832.298.4380 EXAMPLE OF JSA SEMS IMPLEMENTATION

11. PlusAlpha Risk Management Solutions, LLC www.PlusAlphaRisk.com randalls@plusalpharisk.com +832.298.4380 ONE EXAMPLE OF INTEGRATION

12. CONCLUSION Interface Management toolkit, including the Interface Management Plan Responsibility Matrix, Interface Register.

13. PMI Process Industry SIG; Houston, Texas USA Scott Randall, PlusAlpha Risk Management Solutions, LLC randalls@plusalpharisk.com QUESTIONS? for more information contact: Scott Randall randalls@plusalpharisk.com randalls@plusalpharisk.com +832-298-4380