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SPU Risk Register - 1Q, 2009

Entity: GoM Owner: Malcolm Kraus

Group Risk Raised


1) Analysis of shifts in external environments (macroeconomic, socio-political and regulatory) and local industry structure. 2) Strategic relationship management and lobbying. 2Q 08 In progress DR/LM

Group Risk Description

Specific Entity Risk

Agreed Response Actions

Current Status of Response Actions

Target Closure SPA

Windfall Profits Tax, increased royalties, fees on NP leases, royalty relief and severance taxes - risk that increases in the government take in the GoM will alter the company's view of GoM projects. (Finance)

Inadequate response to external changes, societys expectations and other events

1 1Q 09

Inadequate response to external changes, societys expectations and other events New Risk 1Q 09

Sustained low price environment - supplier costs in the overall market are higher than the business can maintain causing reduced economics, uneconomic investments, and high operating costs in low oil price environment. (PSCM) PSCM to focus on GoM SPU Program Contracting Strategy. Implement subsea standardization and global EPMS agreements. Rigorous pursuit of standardization opportunities via the GoM SPU Program Contracting Strategy has kicked off. Use of EPMS, Global and Local Frame Agreements and early commitment recommendations will aid in cost lock in.

2009

PZ

Inadequate response to external changes, societys expectations and other events New Risk 1Q 09 1Q 09 Define the technology scope in the 2008 plan within each business in GoM on technology, understand what technology resources are available and where these are located. New Risk

Supplier Health - risk that key suppliers will lose the ability to deliver materials and services, or even survive in the current economic environment, causing major project delays or reduced supplier organizational capability. (PSCM)

2009

WL

Environmental / Climate Change legislation in N. America -

2009

CJ DR/FA

Inadequate response to external changes, societys expectations and other events Failure to access & profitably progress resources effectively

SPU Renewal Post 2020 -

Technology progression - Failure by BP and/or industry to timely develop sufficient multiple technologies to unlock the Paleogene and remaining Miocene resources causes a delay in project developments. (Tech)

3 1Q 08

Failure to access & profitably progress resources effectively

Develop a medium/long term (2009+) strategy for GoM technology development & an implementation plan to ensure this is delivered, with defined objectives tied to real business goals Agree a technology governance & performance management process to ensure implementation is in accordance with strategy, correct resources are deployed, and with the flexibility to react to key events.

In progress

FA/MC

New Risk 1Q '09 Ops VP's

License to Operate - Non compliance with internal and/or external guidelines, high number of INC's Legal or regulatory non-compliance (incidents of non compliance), or excess spills, could result in BP's loss of a license to operate in the GoM.

8 1Q 08

Safety or environmental incident

Export flexjoint failure - Flex Joint failure on the export risers requiring extended facility shut-in to repair. Reputational Impact. (S&OI)

Holstein and Nakika have approved mitigation plans in place for this risk through the OMS process. The other assets will address mitigation plans in 2009.

a) Completed inspection of export flexjoints. No anomalies found. b) Oil Export FJ inspected Jun 08 - no anomolies observed.

4Q09

Ops VP's

SPU Risk Register - 1Q, 2009

Entity: GoM Owner: Malcolm Kraus

Group Risk Raised Agreed Response Actions Current Status of Response Actions SPA

Group Risk Description

Specific Entity Risk

Target Closure

8 1Q 08 4Q09

Safety or environmental incident

Subsea Leak Flowlines - Risk of failure of infield riser or flowline due to internal corrosion results in hydrocarbon release and shutdown of facility. Potential consequence of environmental impact, and loss of production, and associated reputation impact. (S&OI) Pompano and Nakika have approved mitigation plans in a) South Oil Loop Pigging program developed and place for this risk through the OMS process. waiting on opportunity to coordinate w/ other flow The other assets will address mitigation plans in 2009. assurance DT (hurrican evac) - drop dead date by YE08. b) 3" TFL flowlines are pigged roughly on a monthly cycle. Appraise stage for development of cleaning pigging regime in 8" lines; 350K$ gross budgeted for '09 Ops VP's In progress and on track as detailed in risk mitigation plans. 2010+ Ops VP's

8 1Q 08

Safety or environmental incident

Topside Hydrocarbon Release - Risk of an uncontrolled topsides release of hydrocarbons resulting in prolonged production shut-in. (S&OI) Holstein, Mad Dog, Pompano and Nakika have approved mitigation plans in place for this risk through the OMS process. The other assets will address mitigation plans in 2009. In progress and on track as detailed in risk mitigation p plans.

8 2Q 08

Safety or environmental incident

Pig Launcher Door Failures - Failure of export riser pg pig launcher closure ( (door locking system failure), g y ), leading to a hydrocarbon release, forming an explosive mixture that ignites. (S&OI) Holstein and Mad Dog have approved mitigation plans in place for this risk through the OMS process. The other assets will address mitigation plans in 2009. 1Q 08

Holstein, Mad Dog and Pompano have approved mitigation p g plans in p place for this risk through the OMS g process. The other assets will address mitigation plans in 2009.

2009/2010

Ops VP's

Loss of Well Control - results in loss of containment of hydrocarbons. Causes could be BOP failure, equipment failure, competency. (S&OI)

Safety or environmental incident

Well Control Training is kept current for both BP personnel and contractors. BP verification resides within VTA. Contractors maintain their own records. Bowties are complete, and are to be rolled out to rig teams in 3Q. A process to evaluate the effectiveness of barriers is underway, led by Kal Jassal, who is now a fulltime BP employee.

4Q09

Ops VP's

8 1Q 08

Safety or environmental incident

Dropped Object - Object is dropped or swings into equipment while being lifted over dry trees with nylon sling, resulting in a release of hydrocarbons. (S&OI)

3Q08

Ops VP's

8 1Q 08

Safety or environmental incident

In Air Transport - Helicopter crash due to flight in proximity to flare (hot or flammable gases) due to unreliable flare ignition system. (S&OI)

Horn Mountain has an approved mitigation plan in place Work package and MOC for this modification is for this risk through the OMS process. complete and ready to be installed by offshore. The other assets will address mitigation plans in 2009. Modifications currently scheduled for October, as per IFP schedule. Marlin has an approved mitigation plan in place for this Has been risk assessed. Policy in place to not allow heli risk through the OMS process. landing if flare is not lit, and alarm exists to notify CRO The other assets will address mitigation plans in 2009. of unlit flare. Flare ignition system being evaluated (attempting repair in 8/08 TAR, may replace in '09)

3Q08

Ops VP's

Safety or environmental incident

Living quarters not able to withstand a blast - Major Accident Risk Assessments were completed on facilities and in some cases, issues were identified where living quarters do not meet blast criteria. (S&OI) 1Q 08

1. Determine the appropriate mitigation measures for platform quarters. 2. The Segment Engineering Technical Practice (ETP) is being expanded to specifically address overall risk to offshore personnel (GP 04-32) and is expected to be issued sometime in 1H 2008. (Need update for 2009 status) New Risk

In Progress: Pilot program continues, utilizing latest GP 04-32 which addresses a wider range of risks actually presented on the offshore platforms. Multi-year work plan to review all BP GoM facilities is still in progress.

4Q '08

Ops VP's

Hurricanes and other natural disasters 1Q 09

Disaster shuts down business

TBD

CJ

SPU Risk Register - 1Q, 2009

Entity: GoM Owner: Malcolm Kraus

Group Risk Raised Agreed Response Actions Current Status of Response Actions SPA

Group Risk Description

Specific Entity Risk

Target Closure

10 2Q 08 2010

Not having the right people with the right skills and in the right place

Contractor capabilities - inability to fully procure appropriate contractor skills and resource causes poor quality work leading to development delays. Delays in schedule due to vendors' inabilities to process the demand. (PSCM & Devs) Floating Systems and Subsea PSCM teams co-located with projects providing ongoing market assessment leading to early contractor selection to lock in quality resources/capacity. Examples include use of EPMS contractors, Global and Local Frame Agreements (REI, Cumitomo, Cameron Subsea Hardware), and early commitment recommendations in process related to Bold Moves. PM

a) TB: Remain linked with Sector Strategy Teams to assess market conditions and identification of possible accelerated contractor selection or asset commitment. Provide note/e-mail on quarterly basis to project team. b) Subsea (Standardization): Cameron agreement in place to hold a place in the development of trees and subsea equipment.

Inadequate staff levels - risk that current staff levels across disciplines are inadequate, causing lack of focus, inability to evaluate emerging technologies, and ultimately SPU under-delivering on PC & long-term targets. Existing or new (through EOI, expiration of p g , poaching) critical skills g p ( g) gaps (Drilling, g, retention package, p PEST, PP, Data Loading, Tech, Lease Sale geoscientists) places risk on organizational capability results in failure to meet PC. 1Q 08 In progress

10

Not having the right people with the right skills and in the right place

1) Prioritization of work by BU ELT to ensure efficient use of current resource. 2) Rigorous evaluation of need for additional resources through internal / external recruiting. 3) Explain mechanism for phased-retirment to allow senior staff to coach / mentor with a view to accelerated learning and skills development of new staff. (4) Wells Staffing into Execute Stage for projcet are in place. D&C Manager of Projects working within newly centralized D&C Organization. Develop a detailed resourcing plan with a long term view. Working to bring on needed resources 6 months in advance of when they are needed. (5) Retention and recruitment of staff. (6) Develop organizational strategy for Appraise/Select Stages. Work with Functional Tags to obtain staff. (7) Engage DoC's on Paleogene needs. Actively use SDDN networks.

PM

11 1Q 08

Financial framework, controls or reporting failure

PSCM Guidelines and Accounts Payable - During critical activities, urgent actions bypass local PSCM guidelines which exposes BP to higher costs and delays in invoice processing resulting in BP failing to meet contractual obligations. (Finance) a) E&P Backbone project b) Embed the new Procurement Delegations Operating Standard c) Establish and implement "Asset Integrator Role" d) Establish A/P remediator role for Kasi impact e) Work on invoice processes within the assets a) Participate in all "Deep Dives" b) Raise issues and concerns with Segment CFO and other senior management

11 3Q '08

Financial framework, controls or reporting failure

a) E&P backbone currently projected implementation starting in 4Q '09 thru 2Q '10 b) Currently being finalized by Finance/PSCM c) Requisition posted d) Remediator roles underway on March 1 e) Work underway to assist with and standardize process in DWP assets. Accounts payable support for the GoM operations teams has been completed. Remediators have been established. Functions moving to BA are in progress.

2009

PZ

2009

PK

13 1Q 08

Operational milestones or targets missed

Kasi Offshoring - Offshoring of critical revenue and other accounting activity could cause a breakdown in the internal control system and due diligence review process causing a major financial statement error. (Finance) Overall Reservoir and well performance lower than plan due to reservoir energy and complex Compartmentalization - Lower reservoir energy is resulting in lower rates per well and connectivity across the oil leg indicates that a revised depletion/development plan is necessary to efficiently develop the field. (TH & Atl)

a) A revised development strategy has been proposed and is endorsed. b) Work to more fully develop the execution plan taking into account additional rigs, organization capability, vendor capability to deliver, etc is underway (Atlantis Phase II). c) Approved a 4D seismic to better assess depletion across the field and identify future well locations.

In progress

2009

DR/ST

SPU Risk Register - 1Q, 2009

Entity: GoM Owner: Malcolm Kraus

Group Risk Raised Agreed Response Actions Current Status of Response Actions SPA

Group Risk Description

Specific Entity Risk

Target Closure

Completion Delivery - Completion fails early in well life and requires rig related intervention. Failed well not available for ~60 days (to plan workover and then to implement plan) results in 4-12 mboed nri production loss compared to plan. (D&C)

13 2Q 08 In progress TBD

Operational milestones or targets missed

1) Implement quality assurance program for all critical completion equipment, including stack up testing, equipment functioning while running, and strict adherence to procedures. 2) Implement lessons learned from early well interventions regarding control line fluid filtering, chemical injection, etc to improve performance 3) Extend the Atlantis rapid response plan to cover wells down time. Have identified completion intervention team and base management team in subsurface as key players for wells rapid response plans. 4) Complete DC 113 RCFA on SCSSV failure to determine if failure is more one off versus systemic & share with TH team. KL

13 1Q 08

Operational milestones or targets missed

Manifold delays - DC41E/W component delivery and/or fabrication delays causes installation window to be missed resulting in increased installation costs.(TH)

DR

13 2Q 08

Operational milestones or targets missed

Extended field shut in due to SS1 to SS2 Manifold Change out - Extended system flushing, weather and sea states and extensive number of lifts over existing producing infrastrucure represent the early assessment of risks to mitigate related to the manifold change out. (TH)

(1) Rebaseline of KOS schedule due to late components for THN and DC41. (2) Evaluate incentivizing key focus area and critical path schedule. Detailed TAR plans are being developed for a 2011/2012 execution. The team is canvassing the industry for installation vessel options and will utilize learnigns from the well tie-in TAR's and the TH manifold change before finalizing the procedures. Considering a two season implementation to manage production related impacts and to utilize learnings. In progress

DR/ST

SPU Risks Controls Contingencies External Internal Audit Scope (200x testing in bold)

Management Activities

Objective Assurance

Enduring and Delivery Risks

Management Monitoring Line / Function

Inadequate response to external (1) Increased Government's take changes, society's expectations (2) Sustained low price environment (3) Supplier health and other events - 1

(SPA in brackets) Strategic relationship management and lobbying (NS) Support BP America's GP&A in their agenda (NS) Analysis of shifts in external environments (macroeconomic, socio-political and regulatory) and local industry structure (NS) Utilize BP/SPU's size in procurement contracts; develop longer term strategies to either develop new sources of supply or enter into longer term agreements (NS)

(SPA in brackets) Regular review of SPU strategy vs. performance and external environment to ensure alignment of strategy with reality (NS) Utilize PSCM extensive market knowledge to forecast inflation to be used by SPU in building price escalation contingency into plan (NS)

(SPA in brackets) SPU Context & strategy review tied to frequency of GOM's discussion at OpCo. Monthly SPU TL meetings GFO/LTP process Perform periodic review (3x/year) of inflation forecast accuracy by sector (NS)

Financial framework ineffective 2 Failure to access and profitably (4) Sub-surface uncertainty; progress resources effectively (5) Technology progression;
SEC enquiry review Resources and Reserves Operating Standard TVP Compliance Reviews Major Projects Engineering Discipline Review Process

Depletion Planning (NS) Strategy review and LTP Process to ensure a balanced allocation of resources for Appraise activities (NS) SPU Technology strategy (NS) Strategic relationship management (MMS, co-owners) (NS)

Strategic

Strategy review & LTP process Depletion Planning Quality Assurance Tool Exploration Forum review and assurance process HoD reviews, discipline reviews and Functional review of new investments Major Projects cp Due Diligence (RROS), RAM approval by TVP and Reserves Compliance Reviews Technology Advisory Council review & E&P Technology Functional Advisory Meeting

Wrong position in value chain or markets Outsmarted by the competition (6) Management of BP's proprietary knowledge and
Strategy review by SPU LT Plan Fest Monitoring long term year plan by GOM Rigs Scheduling Team on a monthly basis (NS)

Strategy wrong or not implemented

confidential information

Utilize co-owners' rigs (NS) Aggregation of demand globally through a global strategy will enable greater leveraging with the limited supply market (NS) Bringing Pride into market to create more competition (NS) Manage DW rigs on a global basis (NS) Competition and Market intelligence on supply market (NS) Increased focus on long term planning on supply chain (NS) Procurement guidelines & E&P PSCM cp (NS) Clear boundaries with both exiting and incoming staff on BP's confidential info and proprietary knowledge (NS) Retention plan (NS)

Legal or regulatory noncompliance

(7) License to Operate - internal or external noncompliance, excess spills.

Group compliance framework (NS) Regulatory experts assess and interpret changes to laws and regulations (NS) Regulator relationship management (NS)

Litigation management (NS) Investor and press & media relations (NS) Relationship management (NS)

OpenTalk Monitoring of legal risks & exposures by Legal GC&E oversight & monitoring S&O audit

MMS's review and approvals on permits and plans for operations; inspections of offshore production and drilling facilities and audit safety training for contractors and staff

BP America Legal Entities, BP America Oversight of Compliance Group Compliance & Ethics activities

Compliance and ethics

Trading error or rogue trader

Safety or environmental incident (8) Operational integrity risks (producing assets)

(9) Safety risks to people, production/facilities and environment

MMS's review and approvals of permits and plans/inspections of offshore production and drilling facilities/audit safety training for contractors and staff/review procedures.

Loss of license to operate

Risk Management - Segment level risk identification and action plans

Disaster shuts down business

(10) Hurricanes & other natural disasters

Way BP Works - Structure, Governance, Leadership Framework, Decision Rights

Operating Management System (Integrity Management, Control of Work, Marine, Group Security, Driving Safety Group Standards) (NS) E&P Site Operating Procedures, Continuous Risk Reduction and Maintenance Management Systems (NS)

Crisis management plans (NS) Business continuity plans (NS) Disaster recovery plans (NS) Litigation management (NS) Investor and press & media relations (NS) Relationship management (NS)

OMS Framework Integrity Management Standard implementation Management of security risk Safety & Operations control environment Safety & Operations audit process HSE&O function

S&O audit HSE&O integrity report (Orange Book) Shipping audit Group Security monitoring Head of Engineering review Review of operational risk action plans by TVP Operations & HSSE Group Defined Practice Reporting HSSE & Operational Incidents Review of crisis management issues by SPU LT Crisis management testing IT&S monitoring BCP Implementation Review

Government monitoring of Group crisis management

Business Continuity Planning Digital Security Standard operations Disaster Recovery Follow-up BP America Crisis Management

Operations - enduring

Not having the right people with (11) Inadequate organizational capability (both staff and contractors levels and skills) to carry planned the right skills and in the right activities place

Annual Organizational Capability Review People Assurance Survey Review of people issues by Functions annually OpenTalk

E&Y sustainability report attestation

10

Code of Conduct

Crisis management (NS) Relationship management (NS) Business Continuity Planning (NS) Disaster recovery planning (NS) Digital Security Group Standard (NS) IT&S Operating Standards (NS) Pandemic Response Plan (NS) Closely monitor attrition and aggressive retention program Seeking Segment's support to prioritize people to GOM and expatriate staff target relief (NS) in key functions (NS) Competitive recruitment; split between Contractors and Staff recruitment (NS) Retain TH contract workforce (NS) Increase efficiency by re-org efforts (NS) Employee Engagement with TLs accountable for energizing their teams (NS) HR People Basics (NS) Relationship management (NS) Currently implement P2P Process in Ops and Drilling (without system) (NS)

Business breakdown

11

What We Stand For - Brand, Goals, Values, Priorities

Financial control

Financial controls or reporting failure

(12) PSCM guidelines bypassed in critical activities (13) KASI offshoring

PSCM Process to ensure timely payment to suppliers as well as ensure appropriate reporting of commitments to suppliers (NS) Continually monitor and educate staff of procurement guidelines (NS) Group Reporting Manual (NS) Group Internal Control over Financial Reporting Manual, control processes & CETs (NS) E&P backbone project (NS) Participation in Kasi Deep Dive (NS) Retention plan (NS)

Review of financial risks by GFRC Due diligence review Monitoring of financial control risks by Finance Verification of non-financial data by Finance Head of Control representative on governance board Steering Committee in place to monitor backbone project for GOM (NS)

E&Y audit Tax audits by US IRS SEC enquiry review

Monitoring processes for SOX JV vendor audits CAR reviews

Failure to deliver Forward Agenda change programmes

Review of restructuring issues by SPU LT E&P Operating Performance Review

12

LTP Process (NS) IPC Process (NS) Employee communications (NS) People Assurance Survey (NS)

Forward Agenda/OPR review Review of the system of internal control description that replaces the management framework Management of change MMS's review and approvals on permits and plans for operations/review annual performance/ inspections of offshore production and drilling facilities/audit safety training for contractors and staff/review procedures. Monthly SPU LT meetings GFO process Independent Project Analysis (IPA) benchmarking Exploration Excellence and Drilling Excellence TVP and Head of Discipline reviews Project Execute Health checks, Start-up reviews and first year performance reviews HSE&O integrity report (Orange Book) Contractor performance reviews Inspect and test programs in place with critical suppliers (NS) Major Projects Cost & Schedule review Drilling and Completions performance review

Operational milestones or targets missed

(14) Major projects delivery (cost and schedule) (15) Completions Delivery (16) Production forecasting & managing declines (Atlantis) (17) Delays in manifolds replacement (Atlantis and Thunder Horse)

Operations - delivery

Failure to improve performance

13

Major Projects cp (NS) Drilling & Completions cp (NS) OMS to identify areas of non-standardization and inefficiency (NS) Prioritize resources to manage manifold replacement schedule and production forecast (NS) Base Management cp, Integrated Field Planning cp and Production Efficiency Improvement cp (NS) Market intelligence & cost management (NS) Equipment Integrity Assurance Guidelines focus with Global Quality Control Plans in place (NS) 63 top suppliers in GOM are in Supplier Performance Management system (NS)

SPU Risks Controls External


SPU Risks - Hang's version

Enduring and Delivery Risks Contingencies


(SPA in brackets)

ERM Risk Category


(SPA in brackets)

Management Activities
(SPA in brackets)

Management Monitoring Line / Function Internal Audit Scope (200x testing in bold)

Objective Assurance

Inadequate response to external changes, society's expectations and other events - 1

* Market inflation and project costs (NS)

* Market inflation and project costs (NS) * Risks of increased taxes and/or royalties

Financial framework ineffective 2

Failure to access and profitably progress resources effectively

* Suspension of Production (SOP) (NS) * Subsurface Uncertainty (NS) * Enabling technology breakthroughs (NS)

Strategic

* Suspension of Production (SOP) (NS) * Subsurface Uncertainty (NS) * Enabling technology breakthroughs (NS) * Partners alignment

Strategy wrong or not implemented

Wrong position in value chain or markets


Outsmarted by the competition

* Lease sales * Rig Access * BP's Intellectual Property and Knowledge shared to competition intentionally and unintentionally by Exiting and existing staff

Legal or regulatory noncompliance

Trading error or rogue trader

Compliance and ethics

Safety or environmental incident

* Flow Assurance (flexjoint failure,

SPU Top major accident risk mitigation plans developed by asset and function Crisis Management - IMT, BCP, BST (NS) teams and signed by Asset Managers & Vice Presidents. Plan progress monitored by VP's. (NS)

S&O audits 6 Point Plan Reporting (Orange Book) Mitigation plan progress reported at quarterly SPU HSSE QPR

OMS framework S&O audit process

Loss of licence to operate

* Export flexjoint failure * Subsea leak * Topsides Hydrocarbon release * Pig door failures * Loss of well control * Helicopter accident at or near facility * Dropped Object

Way BP Works - Structure, Governance, Leadership Framework, Decision Rights (xx)

Disaster shuts down business

* Hurricanes * failure of morred rig mooring lines during a hurricane (???)

Risk Management - Segment level risk identification and action plans (xx)

Operations - enduring

* Contractor capabilities (NS) * Inadequate staff levels (NS)

10

Not having the right people with the right skills and in the right place

* Contractor capabilities (NS) * Inadequate staff levels to carry out planned activities * Exiting staff resulted in loss of some key skills

Business breakdown

11

Financial control

* PSCM guidelines by passed in critical activities and urgent actions + Accounts payable - risks that BP is failing to meet its contractual obligations in a timely manner.

Code of Conduct (xx)

Financial controls or reporting failure

* PSCM guidelines and accounts payable (NS)

12

Failure to deliver Forward Agenda change programmes

* Poorer drilling performance as a result of re-org * Increased uncertainty in business interfaces resulted in inadequate communication or interaction which could lead to suboptimal delivery or HSSE incident

What We Stand For - Brand, Goals, Values, Priorities (xx)

Operational milestones or targets missed

13

Operations - delivery

Failure to improve performance

* Overall reservoir & well performance lower than plan due to * Poor reservoir performance in Atlantis (declining pressures, complex compartmentalization at Atl & TH. (NS) complex compartmentalization and other complexities) leads to * OOIP, THN wells reserves uncertainty (NS) lower rate per well and fastly declining well rate * TH aquifer strength & well rate restriction limits production (NS) * OOIP, THN wells reserves uncertainty (NS) * GoMP well failure causes potential loss of reserves and * GoMP well failure causes potential loss of reserves and production (NS) production (NS) * Poor Drilling and Completion performance results in lower * Poor Drilling and Completion performance results in lower production. (NS) * Rig / Production equipment failures causes delay to wells program production. (NS) * Rig / Production equipment failures causes delay to wells and production. (NS) * Manifold delays due to project priorities cause delay in THN first program and production. (NS) production. (NS) * Manifold delays due to project priorities cause delay in THN * Extended field shut-in due to Atlantis SS1 and SS2 manifold first production. (NS) change out. (NS) * Extended field shut-in due to Atlantis SS1 and SS2 manifold

change out. (NS) * Suppiers performance and high cost of supplies (NS)

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