Exon-Mobile Drilling Guide

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Drilling

STANDARD OPERATIONS MANUAL

for

JACK-UP / PLATFORM / BARGE DRILLING

First Edition

May 2003

FOR COMPANY USE ONLY

Houston, Texas U.S.A.

Development

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Development

Ex x onM obil De ve lopm e nt Com pa ny P.O. Box 4876 Houston, TX 77210-4876

An Ex x onM obil Subsidiary

May 2003 EMDC Drilling Standard Operations Manual for Jack-Up/Platform/Barge Drilling

To: ExxonMobil Drilling Employees

The enclosed manual is the First Edition of our EMDC Drilling Standard Operations Manual for Jack-Up/Platform/Barge Drilling. This manual replaces the Transition Version 1 manual dated October 1999. Many changes and upgrades have been made to this manual based on comments from the Drill Teams and Drilling Support Groups. The preface of the manual describes how the manual will be used in our operations. In short, the manual:

1) provides guidelines for conducting drilling operations using jack-up, platform and barge rigs,

2) is used in conjunction with specific well programs and other procedural manuals, including OIMS and SMP, to provide the basic framework and principles required for planning and conducting drilling operations, and

3) shall be reviewed and understood by all drilling personnel.

Important to note is that significant changes (any change that increases health, safety, public, environmental or financial risk) from the manual need the consent of the Operations Superintendent and/or Field Drilling Manager. Also, the guidelines in the manual must be appropriately interfaced with those established by the Drilling Contractor and conflicts addressed by the Operations Superintendent.

Special appendices are included in each section of the manual for drill teams to customize the manual for their operating area. The tabs for these appendices are labeled “G” for general information and forms/documents that are used company wide and “S” for specific information and forms/documents that are unique to individual drill teams.

We appreciate the time and effort by the Drill Teams and Drilling Support Groups in reviewing and commenting on the draft manual. Over 150 comments were received with about 90% adopted in the new manual. The remaining comments referred to requests to include local practices, sections in the draft manual that were removed, general comments with no suggested changes, items not applicable to this manual, and a very few number of items not agreed to. In order to close the loop, Drill Teams that suggested changes not agreed to will receive feedback.

This manual will be revised and upgraded in accordance with the revision process in the OIMS manual. In general, this process will involve review of comments received from the Drill Teams, annual review of MOCs, and reviews at periodic intervals.

Please take the time to review this manual and understand the guidelines contained within.

Signature on file Signature on file Signature on file____

D. R. Anglin J. W. Kiker C. W. Sandlin Operations Manager Operations Manager Operations Manager

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PREFACE

DRILLING OPERATIONS MANUAL – JACK-UP/PLATFORM/BARGE RIG DRILLING 1 of 1

First Edition - May, 2003

The ExxonMobil Development Company, Standard Operations Manual for Jack-Up/Platform/Barge Drilling has been prepared to provide guidelines for conducting drilling operations using jack-up, platform and barge rigs in ExxonMobil Drilling's realm of activities.

This manual, used in conjunction with well-specific Drilling and Completion Programs and other procedural manuals, including the Drilling OIMS Manual and the Safety Management Program Manual, will provide the basic framework and principles required for the Operations Supervisors and Drilling Engineers for planning and conducting drilling operations. Because of the numerous possible variables and conditions which can occur, this manual cannot replace the knowledge and good judgment of key drilling personnel on the drilling rig or in the office. The guidelines contained within this manual are the logical sequence of steps necessary to efficiently conduct drilling operations in a safe and environmentally sound manner on a global scale while complying with applicable regulatory requirements. Although many of the references to U.S. laws and regulations were removed from the previous version due to the global intent of this manual, some remain as examples and may be valuable for international operations.

The guidelines contained herein shall be reviewed and understood by all involved drilling personnel. In accordance with the OIMS "Management of Change" element, significant changes (any change that increases health, safety, public, environmental or financial risk) from these guidelines are not to be undertaken without the express consent of the Operations Superintendent and/or Field Drilling Manager. The guidelines contained in this manual shall also be appropriately interfaced with those established by the Drilling Contractor and contained in the Drilling Contractor's operations manuals. Identified procedural conflicts shall be addressed by the Operations Superintendent and any resulting resolutions shall be provided to the Operations Supervisors.

Special appendices are included in each section of the manual for drill teams to customize the manual for their operating area. The tabs for these appendices are labeled “G” for general information and forms/documents that are used company wide and “S” for specific information and forms/documents that are unique to individual drill teams.

The manual shall be kept current by including recommended improvements/changes in accordance with the change process described in the EMDC Drilling OIMS Manual. In general, this process will involve review of comments received from the Drill Teams, annual review of MOCs, and reviews at periodic intervals. This process is critical in keeping Drilling abreast of new ideas, advancing technology and regulatory changes.

This manual was prepared in an attempt to combine the best practices of our drill teams into one manual. Although it does contain a good bit of information from multiple sources, it does not contain all the information needed to drill and complete drill wells in all situations. Good sound judgement should always be exercised in any task and should never be discarded just to follow an outlined step in any process or procedure

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We, the Management and Employees of

ExxonMobil

Development Company:

• Will relentlessly pursue our ultimate objective of an injury and illness free

work place

• Will not compromise our focus on safety in order to achieve any other business

objective

And We Believe:

• Our safety actions are most effective when we genuinely care about each other

• Each of us has a personal responsibility for our own safety and the safety of

others -- both on and off the job

• All injuries and illnesses can be avoided when we practice safe behaviors

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STANDARD OPERATIONS MANUAL JACK-UP/PLATFORM/BARGE RIG DRILLING

TABLE OF CONTENTS

DRILLING OPERATIONS MANUAL - JACK-UP/PLATFORM/BARGE RIG DRILLING 1 of 5

1.0 GENERAL INFORMATION

1.1 Drilling Operations Manual 1

1.2 Organization 2

1.3 EMDC Reports 3

1.4 Drilling Contractor Reports 6

1.5 Third Party Service Contractor Reports 9

2.0 GENERAL OPERATIONS

2.1 Contracts Administration 1

2.2 Prespud Meeting 2

2.3 Security 3

2.4 EMDC Drilling Operations Personnel Responsibilities 3

2.5 Drilling Contractor Personnel Responsibilities 8

2.6 Third Party Service Contractor Personnel Responsibilities 9

2.7 Special Operations Precautions 14

2.7.1 Helicopter Operations 14

2.7.2 Mooring Vessel Operations 14

2.7.3 Casing pressure Monitoring 14

2.7.4 Back Pressure Valves 14

2.7.5 Rotary Table Insert Bushing Locks 14

2.7.6 Christmas Tree Equipment 14

2.7.7 Mud Logging Units 15

Appendix G-I EMDC-DO Risk Assessment Form

Appendix G-II Risk Assessment Package (example)

Appendix G-III EMDC-DO BOPE Exception Form

Appendix G-IV Drilling Environmental Performance Indicators Report Form

3.0 MARINE OPERATIONS

3.1 Site Survey / Bottom Sweep / SIMOPs review 1

3.2 Moving 2

3.2.1 Moving Jack-up Rigs 2

3.2.2 Moving Platform Rigs 4

3.2.3 Moving Barge Rigs 5

3.3 Moving And Positioning 6

3.4 Pre-Loading (Jack-up Only) 7

3.5 Cargo Transfers 8

3.5.1 Precautions 9

3.5.2 Weather Limits 9

3.5.3 Heavy Lifts (Jack-Up Lifts in Excess of 10 MT) 9

3.5.4 Lifting Operations 10

3.5.5 Rigging Guidelines 11

3.5.6 Equipment Maintenance 15

3.6 Transportation & Personnel Transfers 20

3.6.1 Cargo Transport 20

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3.6.4 Personnel Transport-Supply or Stand-By Boat 24

3.7 Marine Training 24

3.7.1 General 24

3.7.2 Reporting & Drill Frequency 25

3.7.3 Marine Drill Process 26

3.7.4 Fire Drills 27

3.7.5 Fire Drill-Example 29

3.7.6 Abandon Rig Drills 30

3.7.7 Abandon Rig Drill-Example 33

3.7.8 Man Overboard Drill 34

3.7.9 Specialized Drills 35

3.7.10 Principal Aspects of Drills 37

3.8 Ship Collision Avoidance 37

3.8.1 Detection 38

3.8.2 Radar Watch Procedures 38

Appendix G-I SIMOPs Checklist Memo

Appendix G-II SIMOPs Deviation Form

Appendix G-III Study of Pile Interaction with Jack-Up Rig Operations

Appendix G-IV Pre-Startup Inspections for New to Fleet Jackup Drilling Rigs

4.0 DRILLING OPERATION

4.1 Introduction 1

4.2 General Operations Guidelines 1

4.3 Pre-Spud Operations 3

4.4 Structural Drive Pipe 4

4.5 Conductor and Surface Casing Interval 5

4.6 Diverter Operations 6

4.7 Intermediate / Protective Casing Interval 6

4.8 Production Casing / Liner Interval 7

4.9 Slot Recovery / Whipstock / Section Mill / Cutt & Pull 7

4.10 Wellbore Anti-Collision Guidelines 9

4.10.1 Requirements for "Collision Risk" Wells 9

4.10.2 Requirements for All Directional Wells 10

4.11 Directional Surveying and Deviation Control 11

4.12 Drill String Design 12

4.13 Bottom Hole Assemblies 14

4.14 Hydrogen Sulfide Considerations 17

4.15 Hydrogen Sulfide Contingency Plan 19

5.0 BIT CLASSIFICATION AND HYDRAULICS

5.1 General 1

5.2 Drill Bits 1

5.3 IADC Bit Classification System 3

5.4 IADC Bit Grading System 6

5.5 Running Procedures for Fixed Cutters 8

5.6 Hydraulics Program 10

5.7 Guidelines for Hydraulics Optimization 12

5.8 Hydraulics Optimization 17

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6.0 DRILLING FLUID SYS TEM

6.1 General 1

6.2 Solids Control 1

6.3 Drilling Fluid Treatments 3

6.4 Drilling Fluid Checks 5

6.5 High Temperature Drilling 6

6.6 Stuck Pipe Pills 6

6.7 Lost Circulation 7

6.8 Non-Aqueous Fluid Operations 15

6.9 Rig-Site Dielectric Constant Measurement 33

6.10 Drilling Fluid System Guidelines 34

Appendix G-I Fluid Transfer Checklists

Appendix G-II NAF/Oil Base Mud Readiness Checklist

7.0 ABNORMAL PRESSURE DETECTION IN CLASTICS

7.1 Background 1

7.2 Pressure Indicators While Drilling 2

7.3 Abnormal Pressure Detection Team Responsibilities 10

7.4 Mud Logging 11

7.5 Operational Guidelines 15

8.0 FORMATION EVALUATION

8.1 General 1

8.2 Conventional Coring 1

8.3 Wireline Logging Program 8

8.4 Sidewall Coring Operations 11

8.5 Wireline Radioactive Sources 12

8.6 MWD/LWD Logging 12

8.7 Mud Logging and Cuttings Samples 14

9.0 CASING OPERATIONS

9.1 Casing Running 1

9.2 Casing Connection Make-Up 5

9.3 Casing Checklist 5 10.0 CEMENTING 10.1 General 1 10.2 Cementing Guidelines 1 10.3 Primary Cementing 3 10.4 Remedial Cementing 5 10.5 Cementing Checklist 6 10.6 Reference 7

Appendix G-I Exxonmobil Cement Testing Guidelines

11.0 PRESSURE INTEGRITY TESTS

11.1 General 1

11.2 Casing Test 2

11.3 Leak-Off Test 3 11.4 Jug Test (Limited PIT) 4

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12.0 PRODUCTION TESTING

12.1 Production Testing Objectives 1

12.2 Well Test Design 1

12.3 Test String 3

12.4 Surface Equipment 4

12.5 Measurement Equipment 4

12.6 Safety 5

12.7 Personnel Responsibilities 6

12.8 Pre-test Planning and Preparation 9

12.9 Information Retrieval 10

12.10 Well Killing and Zone Abandonment 11

12.11 Emergency Procedures 11

12.12 Hydrogen Sulfide 11

12.13 Hydrates 12

13.0 PLUG AND ABANDONMENT

13.1 General 1

13.2 Permanent Plug and Abandonment 1

13.3 Temporary Plug and Abandonment 4

13.4 Site Clearance Verificationa 4

14.0 WELL CONTROL

14.1 Well Control – General 1

14.2 Hole Monitoring 5

14.3 Equipment Testing 8

14.4 Equipment Specifications 10

14.5 Well Control Drills 16

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1.1 Drilling Operations Manual 1

1.2 Organization 2

1.3 EMDC Reports 3

1.4 Drilling Contractor Reports 6

1.5 Third Party Service Contractor Reports 9

2.0 GENERAL OPERATIONS

2.1 Contracts Administration 1

2.2 Prespud Meeting 2

2.3 Security 3

2.4 EMDC Drilling Operations Personnel Responsibilities 3

2.5 Drilling Contractor Personnel Responsibilities 8

2.6 Third Party Service Contractor Personnel Responsibilities 9

2.7 Special Operations Precautions 14

2.7.2 Mooring Vessel Operations 14

2.7.3 Casing pressure Monitoring 14

2.7.4 Back Pressure Valves 14

2.7.5 Rotary Table Insert Bushing Locks 14

2.7.6 Christmas Tree Equipment 14

2.7.7 Mud Logging Units 15

Appendix G-I EMDC-DO Risk Assessment Form

Appendix G-II Risk Assessment Package (example)

Appendix G-III EMDC-DO BOPE Exception Form

Appendix G-IV Drilling Environmental Performance Indicators Report Form

3.0 MARINE OPERATIONS

3.1 Site Survey / Bottom Sweep / SIMOPs review 1

3.2 Moving 2

3.2.1 Moving Jack-up Rigs 2

3.2.2 Moving Platform Rigs 4

3.2.3 Moving Barge Rigs 5

3.3 Moving And Positioning 6

3.4 Pre-Loading (Jack-up Only) 7

3.5 Cargo Transfers 8

3.5.1 Precautions 9

3.5.2 Weather Limits 9

3.5.3 Heavy Lifts (Jack-Up Lifts in Excess of 10 MT) 9

3.5.4 Lifting Operations 10

3.5.5 Rigging Guidelines 11

3.5.6 Equipment Maintenance 15

3.6 Transportation & Personnel Transfers 20

3.6.1 Cargo Transport 20

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3.6.4 Personnel Transport-Supply or Stand-By Boat 24

3.7 Marine Training 24

3.7.1 General 24

3.7.2 Reporting & Drill Frequency 25

3.7.3 Marine Drill Process 26

3.7.4 Fire Drills 27

3.7.5 Fire Drill-Example 29

3.7.6 Abandon Rig Drills 30

3.7.7 Abandon Rig Drill-Example 33

3.7.8 Man Overboard Drill 34

3.7.9 Specialized Drills 35

3.7.10 Principal Aspects of Drills 37

3.8 Ship Collision Avoidance 37

3.8.1 Detection 38

3.8.2 Radar Watch Procedures 38

Appendix G-I SIMOPs Checklist Memo

Appendix G-II SIMOPs Deviation Form

Appendix G-III Study of Pile Interaction with Jack-Up Rig Operations

Appendix G-IV Pre-Startup Inspections for New to Fleet Jackup Drilling Rigs

4.0 DRILLING OPERATION

4.1 Introduction 1

4.2 General Operations Guidelines 1

4.3 Pre-Spud Operations 3

4.4 Structural Drive Pipe 4

4.5 Conductor and Surface Casing Interval 5

4.6 Diverter Operations 6

4.7 Intermediate / Protective Casing Interval 6

4.8 Production Casing / Liner Interval 7

4.9 Slot Recovery / Whipstock / Section Mill / Cutt & Pull 7

4.10 Wellbore Anti-Collision Guidelines 9

4.10.1 Requirements for "Collision Risk" Wells 9

4.10.2 Requirements for All Directional Wells 10

4.11 Directional Surveying and Deviation Control 11

4.12 Drill String Design 12

4.13 Bottom Hole Assemblies 14

4.14 Hydrogen Sulfide Considerations 17

4.15 Hydrogen Sulfide Contingency Plan 19

5.0 BIT CLASSIFICATION AND HYDRAULICS

5.1 General 1

5.2 Drill Bits 1

5.3 IADC Bit Classification System 3

5.4 IADC Bit Grading System 6

5.5 Running Procedures for Fixed Cutters 8

5.6 Hydraulics Program 10

5.7 Guidelines for Hydraulics Optimization 12

5.8 Hydraulics Optimization 17

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6.0 DRILLING FLUID SYS TEM

6.1 General 1

6.2 Solids Control 1

6.3 Drilling Fluid Treatments 3

6.4 Drilling Fluid Checks 5

6.5 High Temperature Drilling 6

6.6 Stuck Pipe Pills 6

6.7 Lost Circulation 7

6.8 Non-Aqueous Fluid Operations 15

6.9 Rig-Site Dielectric Constant Measurement 33

6.10 Drilling Fluid System Guidelines 34

Appendix G-I Fluid Transfer Checklists

Appendix G-II NAF/Oil Base Mud Readiness Checklist

7.0 ABNORMAL PRESSURE DETECTION IN CLASTICS

7.1 Background 1

7.2 Pressure Indicators While Drilling 2

7.3 Abnormal Pressure Detection Team Responsibilities 10

7.4 Mud Logging 11

7.5 Operational Guidelines 15

8.0 FORMATION EVALUATION

8.1 General 1

8.2 Conventional Coring 1

8.3 Wireline Logging Program 8

8.4 Sidewall Coring Operations 11

8.5 Wireline Radioactive Sources 12

8.6 MWD/LWD Logging 12

8.7 Mud Logging and Cuttings Samples 14

9.0 CASING OPERATIONS

9.1 Casing Running 1

9.2 Casing Connection Make-Up 5

9.3 Casing Checklist 5 10.0 CEMENTING 10.1 General 1 10.2 Cementing Guidelines 1 10.3 Primary Cementing 3 10.4 Remedial Cementing 5 10.5 Cementing Checklist 6 10.6 Reference 7

Appendix G-I Exxonmobil Cement Testing Guidelines

11.0 PRESSURE INTEGRITY TESTS

11.1 General 1

11.2 Casing Test 2

11.3 Leak-Off Test 3 11.4 Jug Test (Limited PIT) 4

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12.0 PRODUCTION TESTING

12.1 Production Testing Objectives 1

12.2 Well Test Design 1

12.3 Test String 3

12.4 Surface Equipment 4

12.5 Measurement Equipment 4

12.6 Safety 5

12.7 Personnel Responsibilities 6

12.8 Pre-test Planning and Preparation 9

12.9 Information Retrieval 10

12.10 Well Killing and Zone Abandonment 11

12.11 Emergency Procedures 11

12.12 Hydrogen Sulfide 11

12.13 Hydrates 12

13.0 PLUG AND ABANDONMENT

13.1 General 1

13.2 Permanent Plug and Abandonment 1

13.3 Temporary Plug and Abandonment 4

13.4 Site Clearance Verificationa 4

14.0 WELL CONTROL

14.1 Well Control – General 1

14.2 Hole Monitoring 5

14.3 Equipment Testing 8

14.4 Equipment Specifications 10

14.5 Well Control Drills 16

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GENERAL INFORMATION

______________________________________________________________________________

DRILLING OPERATIONS MANUAL-JACK-UP/PLATFORM/BARAGE RIG DRILLING FIRST EDITION-MAY 2003

1.1 Drilling Operations Manual 1

1.2 Organization 2

1.3 EMDC Reports 3

1.4 Drilling Contractor Reports 6

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1.1 DRILLING OPERATIONS MANUAL

The EMDC Jack-Up/Platform/Barge Rig Drilling Standard Operations Manual is applicable to production and exploration wells. The drilling guidelines, principles, and procedures contained in this manual represent drilling practices that ensure the Company's highest commitment to safety, health, and the environment.

Manual Organization

This manual is organized into sections covering critical aspects of Jack-Up/Platform/Barge Rig drilling. Each section is divided into subsections, which address the relevant aspects of each section topic. In each

section, one subsection is devoted to operations specific Drill Team operations. Appendices that apply to general drilling operations regardless of area of operation are denoted by a "G" before the appendix number. Appendices relating to a specific drill team are denoted by an "S" prefix before the appendix number.

Where applicable, this manual will reference other company and industry documents that contain additional information to supplement the guidelines contained here-in.

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1.2 ORGANIZATION EMDC - Drilling Organization

EMDC Drilling is responsible for ExxonMobil's world-wide production and exploration drilling activities.

The Drilling Organization is responsible for the contracting of services and materials suppliers, the planning and preparation of drilling engineering work, and the direct supervision of drilling operations. The Drilling Organization shall prepare guidelines and procedures, as necessary, so that operations are conducted in a safe and environmentally sound manner. These responsibilities will be met by the following personnel:

• _{Manager, Drilling}

• _{Drilling Operations Manager}

• _{Procurement Manager}

• Drilling Technology Manager

• _{Field Drilling Manager}

• _{Operations Superintendent}

• _{Engineering Manager}

• _{Operations Supervisor}

• _{Supervising Engineer}

• _{Drilling Engineer}

• _{Drilling Materials & Services Supervisor}

• _{Procurement Services Advisor}

• _{SHE Manager, Drilling}

• _{Environmental Coordinator, Drilling}

Drilling Contractor and Other Critical Third Party Service Contractors

The Drilling Contractor is an independent contractor who will execute the drilling program to the satisfaction of the Operations Supervisor on location. The drilling contractor is also responsible for operating and maintaining the drilling rig in safe working condition and in full compliance with EMDC technical specifications and local regulatory requirements, including those requirements as specified in the drilling contract.

Other critical third party service contractors are independent contractors that will assist in executing the drilling program. These contractors are responsible for operating and maintaining their equipment in full compliance with EMDC technical specifications and/or contract requirements, and local regulatory requirements.

The drilling contractor and other critical third party service contractors provide services where inadequate performance could result in a Level 1, 2, or 3 incident (OIMS Element 9). These contractors must meet or exceed EMDC requirements in the area for which the contract is issued. This includes the following:

• _{Safety, Health, and Environmental Policy Statement}

• _{Drug and Alcohol Policy}

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• _{Technical Equipment Documentation}

• Work Permit System

• _{Hazardous Material Handling/Storage Procedures}

• _{Procedure to Control Equipment/Safety Policy Changes}

Service Companies/Third Party Services

Service companies/third party service contractors are independent contractors who will assist in executing the drilling program to the satisfaction of the Operations Supervisor on the drilling rig. These contractors are also responsible for operating and maintaining their equipment in full compliance with EMDC technical specifications and local regulatory requirements, including those as specified in the various contracts.

1.3 EMDC- DRILLING REPORTS

Critical drilling operations information and relevant aspects of the daily drilling activities will be documented in the standard reports developed by EMDC and its contractors. This manual describes the preparation and distribution of these reports.

Daily Drilling Report

The Operations Supervisor will record drilling activities on the DRS and transmit it, usually via the LAN or telephone line (modem), to the Drilling Information Management Center (DIMC) each morning.

The Daily Drilling Report will cover a 24 hour period with the current day's drilling activities.

Minimizing drilling cost per foot and achieving an overall increase in the efficiency of a drilling operation requires that Management, the Operations Superintendent, and Engineering receive accurate, factual, complete reports from the rig Operations Supervisor on a daily basis. Effective management control of the drilling operation cannot be effected without input from the entire drilling organization, and the daily drilling report is the base document from which most information is drawn. The following are guidelines on some aspects of the Daily Drilling Report:

• _{Drilling operation events should be time separated to correspond with EMDC rig-time distribution codes}

(not IADC). The DRS manual contains a guide on the coding of operations.

• _{Depth of the well is determined by steel line measurement of the drill string.}

• There should be reasonable agreement between the DDR and the IADC report.

• _{A better report will result if each Operations Supervisor writes the operations summary for his/her tour.}

• _{Do not report opinions or guesses unless they are so identified. If an opinion is reported as fact, the rig}

supervisor will know this, but the office staff may not.

• Use only standard abbreviations. Do not make up abbreviations.

• _{Electric logging: specify logs run, depth interval logged, bottom hole temperature, and tight hole depth.}

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Daily Cost Report

The Operations Supervisor should complete the DRS Daily Cost Report and transmit it to the DIMC each morning.

The Daily Cost Report should capture all substantial drilling costs including services utilized, rental equipment, and consumed materials. Where exact costs are not known, reasonable estimates should be made and included in the Daily Cost Report. Some contractor costs will not be known exactly until the end of a month. The rig should not attempt to estimate what the discounted charge will be; the rig is to enter the ticket charge on the cost screen. The Drilling Engineer is responsible for monitoring discounted materials and services costs and communicating any adjustments to the Operations Supervisor for modification of cost sheets.

It is the Drilling Engineer's responsibility to include the cost of all materials and services in appropriate procedures for Operations Supervisor use in completing the Daily Cost Report. The Drilling Engineer is also to provide initial fixed costs to Operations Supervisor and to check the entries for errors or omissions.

ATF Bomb Threat Checklist

Operations Supervisors need to be prepared to respond effectively should they receive a bomb threat over the telephone. It is very important to take the caller seriously. Ask the person to repeat the message. Record every word spoken by the person. Complete the bomb threat checklist and transmit to the Operations Superintendent. Reference OIMS manual (10-5) for further information.

Casing Tally Report

The Casing Tally Report should be prepared for every casing string run. A copy of the report will be kept on the drilling vessel for reference during logging, production testing, completion, plug and abandonment operations, etc.

The Operations Supervisor is responsible for completing the casing run tally report and forwarding it to the Drilling Engineer after each casing string is run. While it is not necessary to transmit the off-load tally from the rig, it is necessary to create a DRS off-load tally to be able to complete the casing description part of the DRS "as run" tally. OIMS requires a DRS casing tally report where possible.

Environmental Performance Indicators (EPI) Report

At the end of every well, the Drilling Engineer and EMDC Domestic Regulatory Technician will complete the Environmental Performance Indicators (EPI) Report for inclusion in the Final Well Report. This form contains four sections; Well Information, Emissions Data, Environmental Regulatory Compliance Data, and Waste Data.

Drilling Reporting System (DRS)

When the DRS system is in place, the following DRS reports will be maintained and transmitted from the rig daily or when pertinent, 1) Daily Drilling Report, 2) Casing Report, 3) Cementing Report, 4) Lithology,

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5) Logging Run, 6) Milestones, 7) Mud, 8) Mud Product Usage, 9) Perfs, 10) RFT, 11) Drillstring, 12) Weather, 13) Well Test, 14) Stratigrophy.

Equipment Failure Report

An equipment failure report will be prepared to document equipment failures which result in significant economic impact or failures which could have safety implications. The equipment failure report should adequately describe the nature of the failure, identify the cause of the failure, document the associated downtime due to the failure, and recommend ways to prevent the failure from occurring in the future. The Operations Supervisor is responsible for preparing the report and forwarding it to the Operations Superintendent. Engineering will review the report to determine if further analysis or action is required.

Hand-Over Notes

Hand-over notes will be prepared by the Operations Superintendents (when working on a rotational schedule) and Operations Supervisors prior to their respective crew changes. The purpose of these notes is to document all situations and/or activities that will require follow-up by the relieving personnel, as well as to address significant operational events that took place during the hitch.

Material Transfer/Cargo Manifest

A material transfer/cargo manifest should be prepared for all material shipments to and from the drilling rig. Manifests should be prepared by the Base Manager/Materials Coordinator for all to-rig shipments and by the drilling rig's storekeeper (if on contract) for all from-rig shipments.

The cargo manifest should list all materials transferred, giving quantity, description, weight, and the container number in which it is stored.

Material transfers are prepared for EMDC material and will usually list the commodity number. Hazardous material should be identified on the manifest. Under no circumstances should used casing thread protectors be sent to the United States in a container unless all thread compound is removed. There will be venture specific materials procedures.

Once completed, the manifest should be signed by the originator and forwarded to the receiver of the goods by the most expedient means (usually via fax). A copy of the manifest should be given to the captain of the transferring vessel. The Operations Supervisor should sign the manifest for the goods received at the rig. Rental tools should be tracked, preferably in a rental tool log book or in a clipboard maintained on the rig.

Pressure Integrity Test Record

Pressure Integrity Tests are covered in Section 11 of this manual. The pressure integrity test (PIT) form will be prepared for all tests conducted. Additional information regarding PIT procedures and analysis is contained in the EPRCo publication "Pressure Integrity Test - Field Guide".

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The Operations Supervisor is responsible for completing the PIT form and forwarding it to the Operations Superintendent and Drilling Engineer as soon as practical after completing the test.

Safety Incident and Spill Reports

Refer to the Drilling Safety Management Program (SMP) and OIMS Manual for guidelines on incident reporting.

A Reportable Safety Incident is defined by OIMS as being a Lost Time Incident, Restricted Work Incident, or a Medical Treatment Incident.

An oil spill is any liquid hydrocarbon release greater than 1 barrel (or affiliate/regulatory required minimum) which falls onto water or onto the ground that could enter the ground water.

A copy of the report will be provided to the Operations Supervisor for forwarding to the Operations Superintendent.

Safety Meeting Record

The Operations Supervisor should record the issues addressed/discussed at the general safety meeting, as well as the topics of the drill crew pre-tour safety meeting and any critical operations safety meeting in DIMS and the IADC report. The minutes of the general safety meeting can be hand written and do not have to be duplicated on the DIMS report. Forward copies of the contractor's safety meeting minutes to the Operation Superintendent.

Well Killing Worksheet

After the BOP stack is installed, the Well Killing Worksheet will be prepared in accordance with the guidelines specified in Section 14 of this manual. The worksheet will be maintained for the current wellbore configuration and updated at least daily (or as well conditions change) while drilling is in progress or maintain the KIK PC program data up to date.

The Operations Supervisor is responsible for completing the worksheet. There are multiple acceptable formats including the traditional EPRCo form, Randy Smith form, EUSA form, and KIK PC program.

Other Reports

Additional reporting requirements should be followed/completed as detailed in the Drilling OIMS Manual and the Safety Management Program.

1.4 DRILLING CONTRACTOR REPORTS BOP Test Record

The results of all BOP tests and any deficiencies should be recorded on the Daily Drilling Report and IADC Report. Detailed test data will also be recorded by the Drilling Contractor on a BOP test form designed specifically for the drilling rig. This report should include the information specified in Section 14 of this manual.

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The completed BOP test form, signed by the test pump operator, tool pusher/OIM, and Operation Supervisor, will be provided to the Operation Supervisor. All pressure test charts will be dated, and properly labeled as to each component tested in accordance with applicable EMDC and regulatory requirements. All records pertaining to the BOP tests should be retained on the drilling rig until completion of the well. The records should then be forwarded to the nearest production facility or host platform for retention in accordance with applicable regulatory requirements or forwarded to Operations Superintendent for inclusion in the well file (international exploration drilling operations).

Current Status Board

A current status board should be maintained at the driller's station. It should include the BOP ram elevation and other helpful information and regulatory mandated postings or documentation.

Daily Personnel Record

A listing of all personnel on the rig (POB list) and their positions will be scrupulously maintained by a designated representative of the Drilling Contractor. The POB list will be updated and distributed daily. A copy of the POB list will be provided to the Operations Supervisor at midnight. This list will be available to be faxed to the Operations Superintendent when needed. A copy of the current POB list will be maintained on the drilling rig.

Drilling Recorder Chart

The Drilling Contractor should annotate all major drilling activities (drilling, tripping, circulating, running casing, cementing, etc.) on the continuous recording strip chart which records depth, time, hookload, pump pressure, rotary torque, and weight-on-bit, as a minimum. The strip chart should also be annotated by the Drilling Contractor to note significant activities such as filling hole, flow check, connection, tight hole, mechanical problems, stuck pipe, etc.

A copy of the chart will be provided to the Operations Supervisor for forwarding to the Operations Superintendent when requested.

IADC Reports

The IADC Report will be prepared daily by the Drilling Contractor and signed by both the drilling contractor's senior drilling representative and the Operations Supervisor. The IADC Report will detail the events of each day's drilling activities, giving a time breakdown for each major event.

Events which are subject to different rig cost rates, as specified in the drilling contract, should be clearly separated. Significant events such as safety incidents, safety meetings, BOP tests, major equipment failures, etc. will be documented on the IADC Report. Drilling Contractor personnel should be identified by name, position and hours worked (including any overtime).

The Operations Supervisor will send the original (white) and pink copies to the Operations Superintendent weekly. The blue copy should be kept in the Operations Supervisors office onboard the drilling vessel. The green and white (last) copy will be left for the Drilling Contractor.

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The Operation Superintendent will forward the original to the accounting department and retain the pink copy in the drilling office files.

Safety Incident Reports

Refer to the Drilling Safety Management Program for a description of reports required from the contractors.

The Drilling Contractor will prepare an incident report for all lost time incidents, fatalities, restricted work incidents, medical treatment incidents, first aid treatments, regional illness events, near misses, and significant near misses onboard the drilling rig. The incident report will, as a minimum, describe the nature of the incident, list the names of all persons involved (both witnesses and victims), describe the contributing circumstances, and identify remedial steps and recommendations to prevent further occurrences.

Safety Meeting Reports

The Drilling Contractor will prepare a report summarizing discussions held in the general safety meeting. The safety meeting report should, as a minimum, describe safety topics discussed, identify the status of any outstanding safety items and provide a list of all meeting attendees. A handwritten report is acceptable. A copy of the report will be provided to the Operations Supervisor for forwarding to the Operations Superintendent.

Trip Book

The primary monitoring of the volume of mud added to the hole to replace the drill string displacement on trips is the responsibility of the drilling crew. When full service mud logging is available, the mud loggers shall provide a backup trip book log. The trip tank will be used for all trips unless otherwise addressed by the field drilling manager. The trip book must compare measured volume with theoretical volume as well as previous trip volume. Refer to Section 14.

Well Control Readiness Checklist

At the Operations Supervisor's option, this checklist can be used as an aid in establishing rig floor crew well control competency. This checklist is in Section 6 of the OIMS Manual and guidelines are in Section 14 of this manual.

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1.5 THIRD PARTY SERVICE CONTRACTOR REPORTS Cementing Chart

A cementing recorder chart (pressure vs. time) will be prepared for all operations, such as casing cementing, equipment pressure testing, PITs, etc. The chart will be annotated with all significant events

such as pumping spacers, pumping lead and tail cements, bumping the plug, etc. (as required by local

affiliate and regulatory agencies).

The chart will be provided to the Operations Supervisor for forwarding to the Operations Superintendent and Drilling Engineer when requested or retained as required by local regulations.

Daily Drilling Fluids Report

The Drilling Fluids Engineer will prepare a Daily Drilling Fluids Report in accordance with the guidelines specified in Section 6 of this manual. Unless otherwise specified by the Operations Supervisor, a minimum of two complete "In" and "Out" checks of the drilling fluid should be made daily during drilling operations. The report will be provided to the Operations Supervisor for forwarding to the Drilling Engineer each morning.

Directional Data

For directional wells, the Directional Drillers will prepare a bottom hole assembly sheet and BHA checklist for all BHAs run in the well in accordance with the guidelines specified in Section 4 of this manual. The directional driller will also maintain a wellbore trajectory record and current wellbore plot in the Operations Supervisor's office.

The Directional Driller and Operations Supervisor should collaborate to complete and sign the directional drilling pre-job survey data sheet (PJSDS) and forward to the directional drillers coordinator as well as to the Drilling Engineer. A pre-job checklist for directional wells should be used to verify that all operational concerns have been addressed. Both the above items are OIMS required documents. Anticollision/well

interference calculation should be updated at each survey point and a minimum of two directional contractor representatives should be onboard when wellbore interference issues exist. The minimum curvature calculation technique should be used.

A copy of the wellbore trajectory record will be provided to the Operations Supervisor for forwarding to the Drilling Engineer each morning.

Mud Logger's Reports

The Mud Loggers will prepare a Mud Log and Daily Mud Logging Report in accordance with the abnormal pressure detection guidelines specified in Section 7 of this manual.

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A copy of the log/report will be provided to the Operations Supervisor and wellsite geologist for forwarding to the Operations Superintendent and operations geologist each morning.

Pit Volume Totalizer Chart

A properly labeled and dated Pit Volume Totalizer (PVT) chart should be maintained by the company contracted to provide same.

Radiation Safety Checklist, Well Site

Periodic assessment will be made of the adequacy of the safety programs of rig site contractors who use radioactive sources. Refer to the Drilling Safety Management Program and the OIMS checklists.

Vessel Daily Log

A Daily Log will be completed by all supply/standby vessels on contract and forwarded to the Base Manager/Materials Coordinator on a weekly (or other timely) basis.

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GENERAL OPERATIONS

____________________________________________________________________________________________________________ DRILLING OPERATIONS MANUAL - JACKUP/PLATFORM/BARAGE RIG DRILLING

FIRST EDITION - MAY 2003

2.0 GENERAL OPERATIONS

2.1 Contracts Administration 1

2.2 Prespud Meeting 2

2.3 Security 3

2.4 EMDC Drilling Operations Personnel Responsibilities 3

2.5 Drilling Contractor Personnel Responsibilities 8

2.6 Third Party Service Contractor Personnel Responsibilities 9

2.7 Special Operations Precautions 14

2.7.1 Helicopter Operations 14

2.7.2 Mooring Vessel Operations 14

2.7.3 Casing pressure Monitoring 14

2.7.4 Back Pressure Valves 14

2.7.5 Rotary Table Insert Bushing Locks 14

2.7.6 Christmas Tree Equipment 14

2.7.7 Mud Logging Units 15

Appendix G-I EMDC-DO Risk Assessment Form

Appendix G-II Risk Assessment Package (example)

Appendix G-III EMDC-DO BOPE Exception Form

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2.1 CONTRACTS ADMINISTRATION

After the execution of the various contracts between EMDC-Drilling and the individual contractors, the Operations Superintendent and Operations Supervisor will administer the contracts based on the following responsibilities:

Operations Superintendent

1. Administer the contract terms and provisions between EMDC-Drilling and the Drilling Contractor and

other critical and non-critical third party service contractor.

2. Copies of applicable contracts are maintained by the EMGSC procurement group for various drilling

operations.

3. Address questions from the Operations Supervisors regarding contract terms or exceptions.

Operations Supervisor

1. Become familiar with each contract as necessary to conduct drilling operations and abide by the terms

of the contracts.

2. Ensure that all equipment on the Drilling Rig is in accordance with contract terms.

3. Ensure that a representative of each service company completes service tickets in accordance with

the contract terms.

4. Conduct a safety/operational ("prespud") meeting prior to the start-up of drilling operations with the appropriate management of the Drilling Contractor and other critical third party service contractors. Refer to Drilling Safety Management Program for meeting guidelines

5. Document safety meetings in the DRS and keep attendance list and presentation materials in the field

well file. Note any special problems addressed and/or discussed at these meetings in a memo to the Operations Superintendent.

Critical Service Contractor's Responsibilities

1. Have in place a safety and environmental program and discuss this with EMDC-Drilling Management

when requested.

2. Identify the disposal method/sites used for contractor waste. This is a contractual requirement of third party contractors for US East Development Drilling Operations.

3. Provide personnel with adequate qualifications consistent with the qualifications in the Responsibility

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4. Have in place maintenance programs, inspection programs, internal control programs, etc., and

review these with EMDC-Drilling Management as requested.

5. It is desirable to have acceptance inspection checklist for the following third party services: mud

logging, production testing equipment, waste transportation, storage, disposal, self-contained breathing equipment, cementing unit, wireline logging, perforating, and LWD with radioactive source.

2.2 PRE-SPUD MEETING

A pre-spud meeting will be held prior to the start of drilling operations on each drilling campaign. Key personnel (Operations, Engineering, Geology, Drilling Contractor, Third Party Contractors, etc.) should attend this meeting. During the meeting, the following points should be addressed:

1. Safety, health, and environmental policies.

2. Expectations in the following areas:

•_Safety

•_{Job Planning}

•_{Communications}

•_{Regulatory Compliance}

•_{Emergency Procedures and Contingency Plans}

•_{Security of well data}

3. Ensure that contractors clearly understand their responsibility for transportation and disposal of

contractor waste.

4. Ensure that both EMDC-Drilling and contractor's personnel clearly understand the chain of command

and the personnel responsible for various decisions.

5. Discuss well drilling plans including relevant geology and drilling hazards.

6. Communicate results of the risk assessment.

7. Copies of the Drilling Program should be furnished to the Drilling Contractor and third party

contractor personnel at the pre-spud meeting, as required.

8. Operations Integrity Management Systems, especially Management of Change.

9. Drilling Safety Management Program

10. Non proprietary pre-spud meeting materials can be circulated to all personnel for their reference.

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All personnel (EMDC-Drilling and contractors) must obtain, maintain, and retain well data, especially information relating to depths, operational problems, and formation evaluation according to their job requirements and release such information to others on a strictly "need-to-know" basis. All personnel will be reminded of the proprietary nature of the geological and critical well data.

2.4 EMDC DRILLING OPERATIONS PERSONNEL RESPONSIBILITIES Operations Superintendent Responsibilities

1. Communications:

•_{Provide communications, as necessary, between the Operations Supervisor on the Drilling Rig}

and EMDC-Drilling Management.

•_{Keep Field Drilling Manager and other off-site personnel informed of all aspects of the operation.}

•_{Interface daily with Production Management to ensure operational continuity.}

•_{Attend daily coordination meeting with Production Supervisor on manned platforms}

2. Supervise Operation:

•_{Ensure that all operations are in compliance with OIMS, Drilling Safety Management Program,}

Drilling Operations Manual, and approved Drilling, Completion, and Production Testing Programs and Procedures.

•_{Confer with Geological Personnel to ensure maximum data acquisition at minimum time and cost.}

•_{Communicate with accounting group and EMDC-DFS group to ensure proper documentation and}

validity of charges.

•_{Work with Engineering staff to compile manuals, programs, and procedures.}

•_{Assist the Operations Supervisors with daily decisions necessary to help the Drilling Contractor}

implement the approved Drilling, Completion, and Production Testing Programs and Procedures.

•_{Conduct audits, inspections, and safety programs in accordance with OIMS and the Drilling Safety}

Management Program.

•_{Coordinate materials requests and logistics with Materials Group and/or Production Organization}

to facilitate timely arrival of required supplies.

•_{Advise Field Drilling Manager when to initiate rotation of Operations Supervisor to ensure sufficient} lead time for full implementation of OIMS.

•_{Attend rig site safety meetings and pre-tour safety meetings.}

•_{Attend daily coordination meeting with Production Supervisor on manned platforms.}

3. Local Coordination of Manuals, Programs and Procedures:

•_{Communicate requests from the Operations Supervisor to make exception(s) to certain guidelines}

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•_{Request verbal approval from the Field Drilling Manager for exception(s) to certain guidelines or}

procedures in accordance with the Management of Change Process described in OIMS.

Note: Using good judgement, Operations Superintendent may take exception to a guideline or procedure worded with "should" and "ought" without prior approval.

•_{Solicit change(s) to the Drilling Operations Manual from the Operations Supervisors according to}

the change process described in this manual.

•_{Review and approve procedures as necessary to implement the approved Drilling, Completion,}

and Production Testing Programs and Procedures.

•_{Ensure that Operations Supervisors receive drilling procedures in a timely manner.}

•_{Notify the Field Drilling Manager, as soon as practical, of exception(s) made to guidelines or}

procedures of the Drilling Program or Drilling Operations Manual.

Note: All requirements worded with "will", "shall", or "must", will be approved by the Field Drilling Manager prior to the exception.

•_{Ensure that all safety and operating manuals are available at the rig site.}

•_{Review and approve operations safety plan.}

4. Compliance with ExxonMobil and Government Regulations:

•_{Become familiar with applicable laws and regulations, and ensure compliance.}

•_{Ensure that all applicable regulatory permits are on the Drilling Rig to conduct operations.}

•_{Ensure that required reports (as identified in approved Drilling, Completion, and Production}

Testing Programs and Procedures) and/or operations permits are sent to applicable regulatory bodies.

•_{Request any regulatory exceptions either from the necessary regulatory agency or the appropriate}

regulatory contact within ExxonMobil.

•_{Report incidents of non-compliance.}

•_{Maintain current knowledge of authority guides.}

5. Contractor Supervision:

•_{Steward contractors and suppliers to maximize cost-effectiveness and safety.}

•_{Coordinate contractors and suppliers to ensure timely arrival of equipment, supplies and}

personnel.

•_{Ensure contractor compliance with all contract terms.}

•_{Monitor contractor compliance with safety, environmental, and drug and alcohol policies stated in}

contract.

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1. Supervise Operations at Drill Site:

•_{Ensure the Drilling Program is executed by contract personnel in a safe and efficient manner.}

•_{Work with Engineering Staff to ensure technical goals are operationally feasible. Make}

recommendations for changes to Drilling, Completion, and Production Testing Programs and Procedures to increase safety and/or efficiency.

•_{Work with Drilling Contractor to develop procedures and plans to implement Drilling Program.}

•_{Review daily plans of the Drilling Contractor and coordinate the activities of Third Party Contract} Personnel (i.e. Service Companies) to implement approved Drilling, Completion, and Production Testing Programs and Procedures.

•_{Ensure compliance of Drilling Contractor and Third Party Contractors with terms of appropriate}

contracts. Ensure that all parties understand their responsibilities per this Manual.

•_{Communicate materials requirements to Operations Superintendent and follow up on delivery;}

assist in logistics as necessary. Coordinate transportation of equipment and personnel to and from the drilling rig as necessary.

•_{Ensure Contractors are maintaining the required equipment and conducting efficient operations in a}

safe and environmentally sound manner.

2. Ensure Compliance with OIMS and the Drilling Safety Management Program

•_{Communicate ExxonMobil requirements and expectations regarding safety and performance to all}

rig site personnel.

•_{Assist Drilling Contractor with implementing the Safety Program in accordance with the Drilling}

Safety Management Program.

•_{Ensure that equipment and procedures meet OIMS guidelines.}

•_{Recommend change(s) to OIMS or the Drilling Operations Manual as necessary to improve or}

correct certain operations.

•_{Notify the Operations Superintendent, of exception(s) that need to be made to certain guidelines}

or procedures of the Drilling Operations Manual. Once proper approval is granted, document the exceptions on DIMS and maintain a record of all significant changes on the rig.

•_{Monitor daily operations to ensure Regulatory compliance. Report any incidents of}

non-compliance.

•_{Ensure that all required reports and records are accurate and complete and issued in a timely}

manner.

Drilling Engineer Responsibilities

1. Ensure the Application of the Best Available Technology in Drilling Operations:

•_{Prepare the Site Construction Plan considering surface constraints such as local population,}

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•_{Prepare the Drilling, Completion, and Production Testing Programs and Procedures based on all}

available geologic and drilling information from nearby offset wells in the area. This Drilling and Evaluation Program shall include the best available technology for drilling operations.

•_{Be knowledgeable of the operating and construction characteristics of all components in the}

drilling system to be used and be knowledgeable about alternative systems and procedures that might be implemented to improve operational efficiency. Ensure operations staff understands the fundamentals behind successfully implementing the new technology.

2. Prepare Standards and Procedures:

• _{Prepare a site specific Emergency Response/SIMOPS (if applicable) attachment for the}

Operations Manual

• _{Prepare the Drill Well Data Package to meet Regulatory requirements.}

• _{Ensure that all Standards and Procedures are in compliance with OIMS.}

• _{Prepare Operations Safety Plan in accordance with Safety Management Program}

3. Coordinate a Risk Assessment for all drillwells:

•_{Organize meetings with the Operations Supervisor, Operations Superintendent, Field Drilling}

Manager, Production personnel, Third Party Contractors, and others (as required) to assess and mitigate the particular hazards associated with the planned operations.

•_{During the course of the Risk Assessment process, the Drilling Engineer is to ensure that the Risk}

Assessment Form /Action Status Report (Section 2 – G-I) is completed and routed for endorsement.

•_{EMDC-DO has compiled a list of base case failure event scenarios that are common to most of}

our activities. This list should be reviewed during the Risk Assessment and if any additional risk scenarios are identified, these should be documented using the format supplied and routed for endorsement with the RAF. A cover memo is used to concisely communicate the results of the Risk Assessment. An example Risk Assessment package has been included in Section 2 – Appendix G-II. The base case risk scenarios can be referenced in the OIMS manual.

•_{An additional requirement is the assessment of the rig's BOPs to determine compliance with the}

Surface Blowout Prevention And Well Control Equipment Manual. The Blowout Preventer Equipment Exception form (Section 2 – Appendix G-III) is to be completed and routed with the RAF. Any requested exceptions regarding the rig's BOP configuration will be approved through endorsement of this form.

•_{All follow-up items will be documented in the Risk Assessment package.}

4. Provide Engineering Support:

•_{Provide surveillance of day-to-day drilling progress to ensure that the Drilling and Evaluation}

program is conducted to apply the best available technology and propose modifications, as necessary.

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•_{Evaluate and recommend materials and equipment.}

•_{Analyze drilling performance at intermediate well depths and work with the Operations}

Superintendent and Operations Supervisor to implement changes in procedures and equipment based on the results of this analysis.

•_{Develop and write supplemental procedures for all major drilling and completion operations. If}

applicable use the Standard or Core Procedure templates found in this Operations Manual.

•_{Prepare cost estimates for the selection of optimum procedural alternatives and equipment}

modifications.

•_{Counsel the Operations Superintendent and Operations Supervisor on critical activities and}

problems such as equipment failures, mud and hole problems (including tectonics and wellbore stability), etc.

•_{Provide rig site technical assistance in abnormal pressure detection, running and cementing critical} casing strings/liners, production testing operations, and well control.

•_{Monitor well costs and ensure that all costs are kept up to date and accurate (including DRS).}

•_{Review DRS Report and ensure that input data are accurate and complete (coding, etc.).}

•_{Participate in wellsite incident investigations, as required in SMP.}

•_{Perform bid preparations and analysis in conjunction with the EMDC Procurement Group.}

•_{Keep the Supervising Engineer / Engineering Manager informed of all activities.}

•_{Prepare AFEs and Supplements.}

•_{Complete a Final Well Report package at the conclusion of each well. Generally, this will include:}

•_{Final well cost summary sheet}

•_{EPI form}

•_{Final Well Report form}

•_{Production Casing and Tubing Tallies}

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2.5 DRILLING CONTRACTOR PERSONNEL RESPONSIBILITIES Drilling Contractor Responsibilities:

Refer to the Safety Management Program for a listing of additional responsibilities

1. Operate as an independent contractor and execute the Drilling Program to the satisfaction of the

Operations Supervisor on the Drilling Rig.

2. Operate and maintain the Drilling Rig in a safe working condition and in full compliance with

EMDC-Drilling technical specifications and local regulatory requirements, including those requirements as specified in the drilling contract.

3. Develop and use safe working procedures. Ensure that the following programs and/or systems are in

place and functioning properly (Drilling OIMS Manual Element 8, Section E and Safety Management Program):

•_{Safety Program}

•_{Quality Assurance/Quality Control Program}

•_{Emergency Preparedness Program}

•_{Preventative Maintenance Program}

•_{Risk Assessment Program}

•_{Work Permit System}

•_{Appropriate Affiliate Simultaneous Operations (SIMOPs) program for development drilling}

operations adjacent to production facilities.

•_{SSE program if applicable}

4. Provide qualified personnel that can efficiently operate the Drilling Rig in a safe and environmentally

sound manner.

Offshore Installation Manager (OIM) Representative

1. Represent the Drilling Contractor as the person in charge and responsible for the overall operation

and safety of the Drilling Unit and personnel.

2. Ensure that the rig operation meets all applicable regulatory requirements.

3. Implement the Drilling Contractor Safety Program

4. Ensure that all safety equipment is in proper working condition.

5. Secure necessary training for Drilling Contractor personnel.