Weather Impacts on the Offshore Industry A Brief Overview

January 2008

Ron Hughes, Global Industries Agenda

1. Offshore Construction 2. Importance of Gulf Of 3. Impact of Significant Weather a) Hurricanes b) Loop 4. Questions

2 Company Overview: Summary

• Leading provider to the worldwide oil and gas industry of offshore construction, , project management and support services including pipeline construction, SURF installations, platform installation and removal and diving • Operations in the , West , Pacific, Middle East, India, and Mexico's Bay of • Founded in 1973; public since 1993 • Nasdaq Global Select: GLBL • Headquarters in Carlyss, Louisiana; worldwide administrative offices in Houston, Texas • Approx. 5,000 employees worldwide • Marine Fleet: 30 Vessels 3 Offshore Field Development

4 Platform Size Comparison

Deep Water Jacket shown weighs approximately 20,000 tons – Eiffel Tower weighs 7,100 tons 5

Proceedings: Decommissioning Workshop, September 1997 Typical Project ƒ Heavy lifts ƒ Expensive equipment ƒ Complex engineering ƒ Challenging Environment ƒ Highly weather dependent Robert Kramek – OTC May 2006

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Robert Kramek OTC May 2006 U. S. Gulf of Mexico

ƒ 4000 Structures - 2175 Active ƒ 6,400 Producing Wells ƒ 29,000 Miles of Pipelines ƒ 27% of US Crude Oil Production ƒ 29% of US Natural Gas Production ƒ 3 Million BOE produced daily ƒ 12.5% of Revenue to U.S. Treasury

7 Hurricane Tracks vs Production

Offshore Fields

“80/20 Line”

8 2005 Season

9 Post Hurricane Model of Downed Platform

10 Decision Flow….

Phase 1: Phase 2: Phase 3: Phase 4: Phase 4: 1 June XX Tropical Storm Alert Issued Storm Watch Storm Warning Depression (Crosses 20N/80W) (Impact to Ops) (Impact to Vessel) Identified

Planning Dispatcher Awareness Cease Dispatch tugs to Bouys Dispatch Addt’l tugs as nec. Preparation Collect Data Identify Storm Watch/ Cease Operations. Arrange crew Transportation Supply Inventory Monitor Wx Buoys Warning Radii Secure Equipment Hurricane Awareness Notification Procedures Formulate Courses of Action Return Mat’l Barges to safe Advise Tugs/utility vessels Anchorage Remove Non Essential Personnel Anchor tugs remain with Notify Clients barges

A. Secure from Operations B. Recover all anchors C. Tow to Safe Harbor D. Tow to Designated Anchorage E. Tow away to Fair Weather

11Storm Watch Radius: [A+B+(C or D or E)] x (Storm Speed) = Storm Watch Radius Storm Warning Radius: [B+(C or D or E)]x (Storm Speed) = Storm Warning Radius Loop Current Activity

12 Loop Current

Gulf of Mexico Current Monitoring In response to reports of high currents, both at the surface and at depth, the MMS has issued a Notice to Lessee’s (NTL) requiring that currents be monitored from mobile units (MODU’s) and floating production platforms in the Gulf of Mexico. A requirement of the NTL is that industry must send current data to the National Buoy Data Center (NDBC) for posting on a website. The public may view the data in an almost real-time mode. NTL 2007-G17, Deepwater Monitoring on Floating Facilities National Data Buoy Center

13 Global Industries, Ltd.