Page 7: of Marine Technology Magazine (July 2010)

Welcome to the 5th Annual MTR 100, and a unique presentation of the first five companies honored: oil majors Chevron, ConocoPhillips,

ExxonMobil and Shell, as well as the newly formed Marine Well

Containment Company.

Simply put, the recent explosion and oil spill in the Gulf of Mexico will impact the offshore oil & gas and subsea industries for a generation to come, as in the wake of the tragedy and clean-up, there are certain to be a complex new set of rules and regulations governing the offshore market around the United States, and new procedure for the plan of action when a spill inevitably happens again. Last month the four oil majors announced a progressive plan to build and deploy a rapid response system that will be available to capture and contain oil in the event of a potential future underwater well blowout in the deepwater Gulf of Mexico. Putting their money where their proverbial mouth is, the companies report that they have already committed $1 bil- lion to fund the initial costs of the system, forming the non-profit

Marine Well Containment Company, to operate and maintain this system.

This development will have far- reaching implications for the subsea technology industry as a whole, as the oil companies are actively seeking partners to provide the technology and service that will ultimately make this system run ... if ever needed.

Such developments in the wake of the Gulf of Mexico oil spill appear to be coming to fruition, as companies scramble to ensure that their opera- tions are ahead of any legislative curve likely to evolve from the recent blowout in the GOM. The new sys- tem will be designed to be flexible, adaptable and able to begin mobiliza- tion within 24 hours and can be used on a wide range of well designs and equipment, oil and natural gas flow rates and weather conditions. The new system will be engineered to be used in deepwater depths up to 10,000 feet and have initial capacity to contain 100,000 barrels per day with potential for expansion.

Additional operational and mainte- nance costs for the subsea and modu- lar processing equipment, contracts with existing operating vessels in the

Gulf of Mexico and any potential new vessels that may be constructed will increase this cost commitment.

This system offers key advantages to the current response equipment in that it will be pre-engineered, con- structed, tested and ready for rapid deployment in the deepwater Gulf of

Mexico. It is being devel- oped by a team of marine, subsea and con- struction engineers from the four companies. The system will include spe- cially designed subsea containment equipment connected by manifolds, jumpers and risers to cap- ture vessels that will store and offload the oil.

Dedicated crews will ensure regular mainte- nance, inspection and readiness of the facilities and subsea equipment. Work on this new con- tainment system is being accelerated to enhance deepwater safety and envi- ronmental protection in the Gulf of

Mexico, which accounts for 30 per- cent of U.S. O&G production.

The sponsor companies will pro- ceed immediately with the engineer- ing, procurement and construction of equipment and vessels for the system.

ExxonMobil will lead this effort on behalf of the four sponsor companies. www.seadiscovery.com Marine Technology Reporter 7

MTR 100

Chevron • ConocoPhillips • ExxonMobil • Shell

The Marine Well Containment Company