SUB SEA SYSTEMS INTERNATIONAL NIGERIA LIMITED

CLOCKSPRING

AGENDAIntroductionProgress To-DateCost Comparison: Clock Spring vs Conventional RepairsHighlights of Selected Riser RepairsValue Added to OperationNNPC and its JV partners completed to date in Nigeria waters

Clock Spring®

SUB SEA SYSTEMS INTERNATIONAL

NIGERIA LIMITEDNigerian CompanyPipe and Pipeline RepairsSole Agent for Clock Spring® in

NigeriaSubject matter experts for

composite repair technology

CLOCK SPRING ®

Clock Spring is a composite repair system used to reinforce corrosion or other blunt defects in both high and low pressure pipelines, restoring the integrity of the pipe, enabling the pipe to return to full service.

Highlights of Progress To-Date

Clock Spring®

Over 84 Clock Spring® riser & topsides piping repairs completed during 2006 to 2009.

Over 70,000 man hours completed without any recordable injuries.

Several major emergency repair jobs completed using Clock Spring®:Meji PP topsides pipingOkan Valve PlatformIBP 26” riser repair

Cost Savings Realized Cost Savings Realized Using Clock Spring®Using Clock Spring®

vs. vs. Conventional Conventional

Riser Repair MethodsRiser Repair Methods

Clock Spring®

Clock Spring®

Value Added to Operation

Conventional Welded Repairs vs. Clock Spring® Repairs:

SEWOP with crew working 25 days can typically repair 2 risers by conventional means (i.e., welded repairs). Cost for this work ~ $500,000.For the same cost, a four man Clock Spring® crew can repair eighteen (18) 6” risers (i.e., conventional welded riser repairs are 9 times more expensive than equivalent Clock Spring® riser repairs). Typical SEWOP used for

conventional welded riser repairs

Clock Spring®

Highlights of Riser Highlights of Riser RepairsRepairs

Clock Spring®

26” Riser Repair

Riser handles production of (~ 70,000 BOPD).

Riser condition before repair (riser was previously coated and wrapped with fabric for corrosion protection, but was not successful in arresting further corrosion).

Clock Spring®

26” Riser Repair

During Repair:

Corrosion removed from riser revealing heavy pitting of riser pipe.

Clock Spring®26” Riser Repair

During Repair:

Clock Spring® Repair Kits are applied to riser.

Clock Spring® 26” Riser Repair

Results of Completed Project:

Zero Recordable IncidentsPermanent Repair3 week repair programIn Service repair$84,000 labor CostProduction not impacted

(~ 70,000 BOPD)

Clock Spring®

BOP 26” Departing Riser to SBM

Condition Before Repair:

Riser handles all export production at BOP

(~ 300,000 BOPD average production).

Temporary repair clamp installed to contain prior leak on riser.

Clock Spring®

BOP 26” Departing Riser to SBM-3

During Repair:

A welded repair sleeve placed over the leak point.

Clock Spring®

BOP 26” Departing Riser to SBM-3

During Repair:

Clock Spring® applied to remainder of riser.

Clock Spring®

BOP 26” Departing Riser to SBM-3

Results of Completed Project:

Zero Recordable IncidentsPermanent Repair4 week Program$120,000 labor costTanker Loading not impacted during repairs

Clock Spring®

Valve Platform Emergency Repairs

Platform Prior to 5 July 2009 Militant Attack

Clock Spring®

Valve Platform Emergency Repairs

Platform After5 July 2009 Militant Attack

Clock Spring®

Valve Platform Emergency Repairs

Platform After5 July 2009 Militant Attack

Clock Spring®

Valve Platform Emergency Repairs

Platform During 6-week Repair Period

Clock Spring®

Valve Platform Emergency Repairs

Platform Nearing Completion of 6-week Repair Period

Clock Spring®

Valve Platform Emergency Repairs

Platform After Emergency Repairs Completed

Clock Spring®

Valve Platform Emergency Repairs

Clock Spring®

PP Emergency Piping Repairs

Leak in PP 10” Oil Outlet to Chemelectric – 27 Nov 2008

Clock Spring®

PP Emergency Piping Repairs

Clock Spring® Wet Wrap Repairs In Progress

Clock Spring®

PP Emergency Piping Repairs

Completed Clock Spring®Wet Wrap Repairs

Clock Spring®

10” Departing Jkt #2 to PP

Condition Before Repair:

Monopod Well Jacket.Heavy corrosion above Splashtron riser coating.

Clock Spring®

10” Departing Jkt #2 to PP

During Repair:Heavy corrosion removed.Significant riser wall loss.

Clock Spring®

10” Departing Jkt #2 to PP

During Repair:

Clock Spring® repair kits applied to riser.

Clock Spring®

10” Departing Jkt #2 to PP

Results of Completed Project:

Zero Recordable IncidentsPermanent repair9 day repair programIn service repair$36,000 labor costProduction not impacted (8,000 BOPD)

Clock Spring®

10” Incoming from PP

Condition Before Repair:

Severe Corrosion.Corroded flange bolts and nuts.Corroded riser clamp.

Clock Spring®

10” Incoming from M PP

During Repair:

Riser cleaned down to bare metal in preparation for application of Clock Spring® repair kits.

Clock Spring®

10” Incoming from PP

During Repair:

New Teflon-coated blots installed.

Clock Spring®

10” Incoming from PP

During Repair:

New riser clamp installed on jacket after application of Clock Spring® repair kits.

Clock Spring®

10” Incoming from PP

During Repair:

Clock Spring® repair in progress.

Clock Spring®

10” Incoming from PP

Results of Completed Project:

Zero Recordable Incident12 day programIn service repair$48,000 labor costProduction not impacted (8,000 BOPD)

Clock Spring®

Riser Integrity Documentation

Detailed Inspections & Close out reports generated for each repair.

SUB SEA SERVICES LIMITED

CLOCKSPRING

PRODUCTION PLATFORM

10” RISER FROM

CLOSE OUT REPORT

TAPA PRODUCTION Report no: 0022 PLATFORM Date 17-07-07

10” RISER REPAIR

Clock Spring installation (weld bridges)

These photographs show the stages of the weld bridge technique, after installing the Clock Spring wraps either side of the weld the void is filled and molded, once cured the filler is roughened with sand paper to achieve a surface profile to which the an additional Clock Spring is installed this strengthens the joint and retains the “hoop

stresses” of the repaired pipe. The Clock Spring will then be cleaned and coated with the Clients preferred coating system.

Stage 1

Stage 2 Stage 3 This procedure remains the same regardless of pipe size and Location On this project 2 weld bridges were applied

Stage 4

Clock Spring®

NNPC and its JV partners completed to date in Nigerian

watersSSSI has completed over 84 topsides piping and riser repairs during 2006 to 2009, safeguarding a significant portion of NNPC and it’s JV partners daily production in Nigerian waters (i.e., ~ 300,000 BOPD). One major riser repair project ( 1 PP 26” riser repair) was carried out while the riser remained “in service” at 70,000 BOPD, with zero impact on production.Several emergency topsides piping and riser repairs completed during the previous 3.5 years that SSSI has been installing for NNPC and its JV partnersIn addition to the main oil risers that make-up oil shipping networks, One of NNPC and it’s JV partners has over 1,100 well and gas lift flowline risers in its Offshore operations, with approx. 50% of them reaching the point of potential failure. Clock Spring® offers advantages in both the cost and scheduling of these riser repairs.

Clock Spring®

SSSI has compiled an excellent safety track record during the previous 3.5 years of Clock Spring® repair work they’ve done in Escravos; at the end of 2009, SSSI has worked over 70,000 manhours with zero recordable incidentsClock Spring® riser repairs offer a significant cost advantage compared to conventional welded riser repair methods. Conventional welded riser repairs are typically 9 times more expensive than equivalent Clock Spring® repairs. Clock Spring® riser repairs can typically be done while the riser remains “in service,” minimizing the lost production that is associated with performing conventional welded riser repairsSSSI is the sole agent for Clock Spring® products and installation services in Nigeria and the recognized expert in its application

NNPC and its JV partners completed to date in Nigerian

waters

Clock Spring®

Clock Spring®

Clock Spring®

Clock Spring®