Keynote Speaker

Dynamic Positioning in Offshore Drilling

Increased Importance – Enhancing Performance

Steven L. Newman
Chief Operating Officer
Transocean Inc.

October 9-10, 2007

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Your Next Generation Driller

Dynamic Positioning in Offshore Drilling: Steven L. Newman

Increasing Importance, Optimizing Performance EVP – COO
Transocean

October 9, 2007

2007 DP Conference
Houston, TX
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Discussion Topics

‹ Factors Driving DP Today

‹ Historical DP Performance

‹ Optimizing DP Performance

2007 DP Conference 2
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Factors Driving DP Today

‹ More Complex Field Developments

2007 DP Conference 3
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Factors Driving DP Today

‹ More Complex Field Developments

‹ Increasing Subsea Architecture / Infrastructure

2007 DP Conference 4
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Factors Driving DP Today

500

450
Subsea development wells

400

350
Africa
Asia
300
Australasia
Wells

Latin America
250
North America

200 Western Europe

Others
150

100

50

0
2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Douglas-Westwood / Energyfiles

2007 DP Conference 5
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Factors Driving DP Today

‹ More Complex Field Developments

‹ Increasing Subsea Architecture / Infrastructure

‹ Improved Economics
Advantage: Marianas Advantage:
• lower fuel costs • timeline savings

Disadvantage:
• timeline impact of mooring
• increased workboat expense
• potential preset expense Sedco Express

2007 DP Conference 6
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Factors Driving DP Today

X + =

2007 DP Conference 7
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Factors Driving DP Today

2007 DP Conference 8
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Factors Driving DP Today

2007 DP Conference 9
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Factors Driving DP Today

Equivalent rig rate for the same program cost – not our bid rate!

2007 DP Conference 10
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Factors Driving DP Today

‹ More Complex Field Developments

‹ Increasing Subsea Architecture / Infrastructure Driving the Need

‹ Improved Economics

‹ Industry Meeting the Need

¾ Vendors
¾ DP Control Systems
¾ Position Reference Systems
¾ Power Systems
¾ Thruster Systems
¾ People
¾ Maritime Academies
¾ Industry Standards
¾ Training and Development

2007 DP Conference 11
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Historical DP Performance

‹ Recent DP Events - 2003 through 2006

¾ 29,200 DP Operating Days

‹ 30 Red or Yellow DP events

¾ Powerplant primary cause 14 of 30 (46%) 99.9%
¾ Human error primary cause 9 of 30 (30%) Reliability
¾ Weather (4) … Thruster (2) … Position Ref (1)

‹ Clear Improvement Trend over Last 10 Years

¾ 2006 Significantly Better Than 2003

2007 DP Conference 12
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Driving Towards 100% Reliability

‹ Enhanced FMEA Emphasized Need for Improving Power and

Propulsion Plant Robustness

‹ Elements Include:
¾ EliminatingPotential Faults
¾ Improving Fault Detection
¾ Improving Generator Performance
¾ Improving Thruster Performance

‹ Improved Casualty Response

¾ Improve Generator Availability
¾ Improve Thruster Recovery Time (Autonomy)

2007 DP Conference 13
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6th Generation Power and Propulsion Plant

‹ Difference:
¾ Lower Fault Probability
Advanced Generator Protection
¾ Better Fault Tolerance
(AGP)
‹ Reliability Improved In: Improved Power Distribution
¾ Power Generation Plant
Advanced Thruster Control and
¾ Power Distribution System
Protection (ATCAP)
¾ Propulsion Power and Control System
(It’s not about the mathematics or
the processors…
…and it’s not about “DP-3”)

2007 DP Conference 14
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Improvements in Practice

‹ Traditional Transformer Closing

¾ Substantial Inrush Currents Peaking at 2000 amps
¾ DC Circulating Currents for 20 Seconds
¾ No Verification of Health before Closing

‹ 6th Generation Transformer Closing

¾ No Inrush Current or Mechanical Shock
¾ Full Verification of Transformer Health before Closing

2007 DP Conference 15
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Improvements in Practice

‹ Traditional Transformer Closing

¾ Substantial Inrush Currents Peaking at 2000 amps
¾ DC Circulating Currents for 20 Seconds
¾ No Verification of Health before Closing

‹ 6th Generation Transformer Closing

¾ No Inrush Current or Mechanical Shock
¾ Full Verification of Transformer Health before Closing

2007 DP Conference 16
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Improvements in Practice

‹ Traditional Transformer Closing

¾ Substantial Inrush Currents Peaking at 2000 amps
¾ DC Circulating Currents for 20 Seconds
¾ No Verification of Health before Closing

‹ 6th Generation Transformer Closing

¾ No Inrush Current or Mechanical Shock
¾ Full Verification of Transformer Health before Closing

2007 DP Conference 17
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Recovery Time Line – Existing Power Plant

2 of 3 Gens
On-Line
Normal 1 of 3 Gens
Operation On-Line
Black 1 Thruster 1 Thruster
Out On-Line Available to
DP System

0 14 18 60
1 Vessel Service
Time in Seconds Bus On-Line 3 More Thrusters
On-Line over 8 Seconds

Recovery in 65 seconds with many dependencies.

2007 DP Conference 18
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Recovery Time Line – 6th Gen Power Plant

Probability of Recovery Much Higher

Normal 1 Gen
Operation On-Line
Black Thrusters Thrusters
Out On-Line Available to
DP System

0 14 16 18

Time in Seconds

Recovery in 18 seconds with few dependencies.

2007 DP Conference 19
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Summary

‹ Industry is Driving Increasingly Towards DP

¾ ALL 66 Newbuild Floaters Under Construction are DP

‹ Transocean is Committed to Safe and Reliable DP Operations

¾ Enhancing Robustness and Performance
¾ Leveraging Operating Experience to Improve Training

‹ Initiatives Currently Underway Delivering Results

¾ State-of-the-Art Technology Deployed Offshore

2007 DP Conference 20
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Your Next Generation Driller

Dynamic Positioning in Offshore Drilling: Steven L. Newman

Increasing Importance, Optimizing Performance EVP – COO
Transocean

October 9, 2007

2007 DP Conference
Houston, TX