The Macondo blow out incident in the Gulf of Mexico has brought into sharp focus the need of the oil and gas industry to effectively identify and manage the risk from major accidents. This incident is by no means unique. Over the last 30 years there has been a large fatality accident on average every 2 to 3 years associated with oil and gas offshore operations including: 2001 - P36, sinking of semi-submersible, 11 fatalities 2005 - Bombay High, ship collision with platform and riser fire, 22 fatalities 2007 - Usumacinta, jack up collision with platform, 22 fatalities Similar events have also occurred on onshore facilities. Recent examples include: 2003 - Chongqing, sour gas blow out, 243 fatalities 2004 - Skikda, explosion on LNG plant, 27 fatalities 2005 - Texas City, explosion on refinery isomerisation unit, 15 fatalities 2009 - Nigeria, pipeline explosion, 100 fatalities 2009 - Jaipur, explosion in gasoline storage area, 12 fatalities 2010 Congo, gasoline road tanker overturned, 230 fatalities

Gulf of Mexico Region 1. Date: 06-Jan-1998 Activity: Exploration Lease: G12886 Event(s): Blowout Area: South Marsh Island Operation: Drilling Cause: Poor cement job on casing Rig/Platform: Marine XV 2. Date: 16-Jan-1998 Water Depth: 80 Operator: Hall-Houston Oil Company

Operator: Chevron U.S.A. Inc. Activity: Development Event(s): Blowout Area: Eugene Island Operation: Production Cause: Equipment failure Rig/Platform: Diamond Ocean Crusader Water Depth: 150

3. Date: 30-Apr-1998 Operator: Vastar Resources, Inc. Activity: Development Event(s): Blowout Area: Mississippi Canyon Operation: Drilling Cause: Human Error Rig/Platform: Nabors 78 Water Depth: 659

4. Date: 08-Jul-1998 Operator: Newfield Exploration Company Activity: Development Event(s): Blowout, Pollution and Injury Area: East Cameron Operation: Abandonment Cause: Equipment failure, leak Rig/Platform: B Water Depth: 51

5. Date: 22-Nov-1998 Operator: Ocean Energy, Inc Activity: Development Event(s): Blowout Area: South Marsh Island Operation: Workover Cause: Human error Rig/Platform: A Water Depth: 23 6. Date: 06-Feb-1998 Operator: Chevron U.S.A. Inc. Activity: Exploration Event(s): Fatality (1) Area: Vermilion Operation: Drilling Cause: Equipment Failure Rig/Platform: Noble Tom Jobe Water Depth: 130 7. Date: 22-Apr-1998 Operator: Texaco Exploration and Production Inc. Activity: Development Event(s): Fatality (1) Area: East Cameron Operation: Completion Cause: Human Error/Slip/Trip/Fall Rig/Platform: Ensco 29 / A Water Depth: 446 8. Date: 10-May-1998 Operator: Ocean Energy, Inc

Investigation: Complete Activity: Development Event(s): Fatality (2) / Falling Object Area: Main Pass Operation: Production/Construction Cause: Equipment Failure / Human Error Rig/Platform: C Water Depth: 275 9. Date: 02-Jun-1998 Operator: Amoco Production Company Activity: Development Event(s): Injury (3), Fatality (1) Area: South Marsh Island Operation: Production / Completion Cause: Human Error Rig/Platform: Sundowner XVI / D Water Depth: 92 10.Date: 17-Jul-1998 Operator: Ocean Energy, Inc Activity: Development Event(s): Injury (11), fatality (3) Area: Main Pass Operation: Construction of rig Cause: Equipment failure Rig/Platform: B Water Depth: 290 11.Date: 16-Feb-1998 Operator: Walter Oil & Gas Corporation Activity: Development Event(s): Collision, Fire Area: West Delta Operation: Production, Motor Vessel

Cause: Weather Related / Human Error Water Depth: 252 12.Date: 23-May-1998 Operator: Pennzoil Exploration and Production Activity: Development Event(s): Collision Area: South Marsh Island Operation: Production, motor vessel Cause: Human Error Water Depth: 210 13.Date: 22-Jul-1998 Operator: Chevron U.S.A. Inc. Activity: Development Event(s): Explosion Area: South Pass Operation: Production Cause: Human Error, Welding on top deck Water Depth: 410 14.Date: 09-Jan-1998 Operator: SOCO Offshore, Inc. Activity: Development Event(s): Fire Area: Eugene Island Operation: Production Cause: Weather Related Water Depth: 287 15.Date: 17-Jan-1998 Operator: Vastar Resources, Inc. Activity: Development Event(s): Fire Area: Mississippi Canyon Operation: Production / Drilling o.p

Cause: Leak Water Depth: 651

General: The spill of 95,000 tons of oil caused heavy pollution of the French and British shores with serious ecological and fisheries consequences. This accident was followed by a number of other tanker accidents, including Amoco Cadiz(1978, 220,000 tons of oil spilled), Exxon Valdez (1989, 40,000 tons of oil spilled), and Braer (1993, 85,000 tons of oil spilled). Each of these episodes developed in accordance with its unique scenario. In all the situations, though, the levels of oil pollution reached lethal limits for marine fauna, mainly for birds and mammals. The consequences included much more damage than just ecological disturbances in the sea and on the shore. One of the most dramatic situations developed in 1989 in the shallow waters of Prince William Sound near the Alaskan southern shore. The oil tankerExxon Valdez ran aground and spilled over 40,000 tons of crude oil. As the oil spread along the coastline, it covered sea animals, birds, and plants. It turned hundreds of miles of this area (unique for its cleanness and biological resources) into an area of ecological disaster

KEY COMPONENTS IN MAJOR ACCIDENT RISK MANAGEMENT The steps required for assessing and managing major accident risks are illustrated below: