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Shallow-water Arctic Drill Platform Concept Study Underway

Maritime Activity Reports, Inc.

September 6, 2012

Rosneft and ExxonMobil select Vostochniy Offshore Structures Construction Yard for concept evaluation and feasibility study.

The platform is needed for the safe exploration of the Kara Sea's shallow waters, with key attributes of safe operation, environmental protection measures for operating in Arctic conditions, and having the ability to withstand extreme ice, wind, wave and temperature conditions.

The study will evaluate the feasibility of utilizing a gravity base structure that could extend the drilling season by several months. Designed to operate in up to 60 meters (200 feet) of water, the structure with drilling equipment would be installed on the seabed to drill a well and then would be refloated and moved to other drilling sites.

The platform concept will be evaluated for use in the shallow waters of East Prinovozemelsky License Blocks 1, 2 and 3. The blocks contain a total area of 126,000 square kilometers (48,600 square miles) in waters 20 meters (65 feet) to 200 meters (650 feet) deep. Semi-submersible rigs would be used in water deeper than 60 meters (200 feet).

Vostochniy Offshore Structures Construction Yard also known as VOSTCO Yard has extensive experience in offshore projects. The yard has the production capacity to construct foundations, including Russia's largest dry dock, and can be engaged to build concrete foundations or other similar class construction projects. Kvaerner, a design bureau with experience of this kind of work, will provide design services for the project in collaboration with VOSTCO Yard.