c150197 - Section 4a - Scope O...

Brunei Shell Petroleum Company Provision
of CTU & STIMULATION Services
Tender No.C150197 Section 4 A – Scope of Work
SECTION 4 A
SCOPE OF WORK
C150197
Provision Of CTU & Stimulation Services
SECTION 4A –SCOPE OF WORK

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Brunei Shell Petroleum Company Provision of
CTU & STIMULATION Services
Tender No. C150197 Section 4 A – Scope of Work
TABLE OF CONTENTS
PART 1 – GENERAL SCOPE REQUIREMENTS
ARTICLE 1 – DEFINITIONS
ARTICLE 2 – GENERAL SCOPE OF WORK

ARTICLE 3 – MANAGEMENT AND COORDINATION OF THE WORK
ARTICLE 4 – ABNORMAL DAMAGE, CONDITIONS AND REPAIR
ARTICLE 5 – RECORDS AND REPORTS
PART 2 – SPECIFIC SCOPE REQUIREMENTS
ARTICLE 6 – SERVICES INCLUDED IN THE WORK
PART 3 – TECHNICAL SPECIFICATIONS
ARTICLE 7 – GENERAL
ARTICLE 8 – APPLICATION OF STANDARDS AND SPECIFICATIONS
ARTICLE 9 – QUALITY MANAGEMENT
ARTICLE 10 – EQUIPMENT REQUIREMENTS
ARTICLE 11 – EQUIPMENT MAINTENANCE, INSPECTION, TEST, CERTIFICATION,
DOCUMENT and RECORD REQUIREMENTS
ARTICLE 12 – PERSONNEL REQUIREMENTS
ARTICLE 13 – PERSONEL SAFETY AND SAFETY EQUIPMENT

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PART 1 – GENERAL SCOPE REQUIREMENTS

ARTICLE 1 – DEFINITIONS
1.1 The following words and expressions shall have the following meanings assigned to
them in this Section 4 – Scope of Work, and elsewhere in the CONTRACT, unless
inconsistent with the context in which it is intended or unless otherwise provided:
COMPANY AVIATION means COMPANY’S offices and/or facilities primarily at Anduki.
BASE
COMPANY OFFICE means COMPANY offices and/or facilities at Seria.
BASE
COMPANY SUPPLY means COMPANY offices and/or facilities at Muara, Kuala Belait.
BASE
CONTRACTOR AREA means CONTRACTOR offices and/or facilities at
BASE
CONTRACTOR LOCAL means CONTRACTOR offices and/or facilities at
BASE _
OPERATING AREA means all of COMPANY onshore and offshore concession areas
in the COUNTRY OF OPERATION.
OPERATING means the detailed specifications provided by CONTRACTOR for
ENVELOPE each of CONTRACTOR ITEMS, which details the minimum and
maximum operating criteria and parameters for each item. As a
minimum, subject to their applicability to the WORK to be
performed by CONTRACTOR, the OPERATING ENVELOPE shall
specify minimum and maximum flow rates, maximum
temperatures and pressures, maximum dogleg severity (rotating
and sliding), maximum torque, maximum vibration, stick/slip
tolerance and maximum sand content.

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PORT OF LOADING means COMPANY SUPPLY BASE, and/or COMPANY AVIATION

BASE from which vessels or aircraft will transport COMPANY
ITEMS, CONTRACTOR ITEMS and CONTRACTOR
PERSONNEL to and from the DRILLING UNIT.
ARTICLE 2 – GENERAL SCOPE OF WORK

2.1 General Requirements of the Work
The WORK to be performed by CONTRACTOR is described in this Section 4 –
Scope of Work and shall be performed in accordance with the CONTRACT
with includes Coiled Tubing Equipment and Services, Pumping Equipment and
Services, Nitrogen Pumping Equipment and Services, Post Treatment Flowback
services, Work Vessel, Consumables and Personnel. Inspection, operation, service,
calibration, maintenance and repair of all the CONTRACTOR
In consideration for the performance of the WORK described herein, CONTRACTOR
shall be compensated primarily on a lump sum, unit rate or unit price basis as
specified in Section 3 – Schedule of Prices. COMPANY shall have the right, however,
to instruct CONTRACTOR to vary the WORK through a VARIATION to CONTRACT.
2.1.2 CONTRACTOR shall provide all CONTRACTOR ITEMS, CONTRACTOR
PERSONNEL and services to perform the WORK for COMPANY, as and when
required by COMPANY, through the issuance of a CALL-OFF FORM.
2.1.3 As and when required by COMPANY, the WORK shall be continuously provided
seven (7) days per week and twenty-four (24) hours per day for the CONTRACT
DURATION and any extensions thereto.
2.1.4 The descriptions contained in this Section 4 – Scope of Work and in Section 3 –
Schedule of Prices are intended only as brief descriptions, sufficient for identification
purposes only. They are not exhaustive and do not detail every provision required to
perform the WORK. They have been prepared on the basis that CONTRACTOR is
experienced in the requirements of the type of WORK to be provided. Notwithstanding
the exclusion of one or more specific operations from any description, any operation,
which may be ascribed to the WORK priced within Section 3 – Schedule of Prices,
shall be deemed to be included within that item. No claim shall be considered on the
grounds of defective description if such additional operations are necessary to
complete the WORK.
2.2 General Performance of the Work
2.2.1 CONTRACTOR shall be solely responsible for the operation of CONTRACTOR
ITEMS. CONTRACTOR shall perform the WORK subject to and with the assistance
of any services including but not limited to equipment, materials, personnel, services
and/or facilities that may be provided by COMPANY or its OTHER CONTRACTORS.
2.2.2 COMPANY reserves the right to instruct CONTRACTOR to operate COMPANY’s or
OTHER CONTRACTORS equipment and/or machinery where the equipment and/or
machinery is considered to be part of normal operations.
2.2.3 CONTRACTOR shall manage, direct, supervise and control the WORK and shall
perform all associated obligations, activities and operations including the provision of
adequate competent CONTRACTOR PERSONNEL and the provision, operation,
maintenance and repair of CONTRACTOR ITEMS with all ancillary and associated
items and shall assume the obligations, liabilities, and rights specified in the
CONTRACT. Consequently, except where explicitly stated as being provided by
COMPANY in Section 7 – Provisions by Company, CONTRACTOR shall perform all
WORK in connection with the CONTRACT including but not limited to:
(a) Performance of the WORK described herein and any and all associated
operations and other WORK including but not limited to all operations and
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activities necessary to co-ordinate, organise, control and monitor the WORK with
all CONTRACTOR ITEMS, CONTRACTOR PERSONNEL and facilities
described herein;
(b) Co-ordination and performance of all preparation, handling and transportation of
CONTRACTOR ITEMS and CONTRACTOR PERSONNEL including those of its
SUBCONTRACTORS;
(c) All actions required to effect mobilisation on the CONTRACT EFFECTIVE DATE
or the CALL-OFF COMMENCEMENT DATE, and demobilisation following
CONTRACT or CALL-OFF completion;
(d) Active participation in well planning, execution and review with the aim of working
towards optimum quality wells with minimal well cost in accordance with
COMPANY’s well delivery process;
(e) Transportation, storage, warehousing, rigging-up, rigging-down, operation,
maintenance, inspection, calibration and repair of all CONTRACTOR ITEMS,
land and facilities that are utilised by CONTRACTOR in the performance of the
WORK;
(f) Quality assurance and quality control testing on CONTRACTOR provided
materials and the reporting of results as required by COMPANY;
(g) Management, co-ordination and operational support of SUBCONTRACTORS,
including but not limited to all operations and activities necessary to co-ordinate,
organise, control, monitor and support the WORK provided by
SUBCONTRACTORS and the provision of CONTRACTOR's support and
administration facilities and services that SUBCONTRACTORS require to
perform their respective WORK in accordance with the CONTRACT; and
(h) Performance of any additional work upon request of COMPANY. Such additional
work, however, shall only be related to such work as is usual practice in drilling
operations and shall include, but not be limited to, the provision of additional
CONTRACTOR ITEMS, CONTRACTOR PERSONNEL and/or the performance
of additional work with the items listed in CONTRACTOR's catalogue of services
and regional price list referred to in Section 3 – Schedule of Prices. COMPANY
shall instruct such additional work by issuance of a CALL-OFF FORM.
2.3 Contract and Call-Off Mobilisation
2.3.1 CONTRACTOR shall fulfil its obligations on the CONTRACT EFFECTIVE DATE
and/or the CALL-OFF COMMENCEMENT DATE, which shall include all necessary
actions including mobilisation of CONTRACTOR ITEMS and CONTRACTOR
PERSONNEL required to perform the WORK.
2.3.2 CONTRACTOR shall notify COMPANY when it considers that CONTRACT
mobilisation is substantially complete. COMPANY shall promptly perform an audit of
CONTRACTOR ITEMS, CONTRACTOR PERSONNEL, and facilities including but
not limited to verification of the quantity, type and operational status of
CONTRACTOR ITEMS, verification of the availability of sufficient quantities and
types of materials; availability and operational status of any base facilities; approval
status of KEY PERSONNEL, implementation of safety standards, procedures and
availability of safety equipment. CONTRACTOR shall ensure that all approvals,
certifications and the like have been obtained for CONTRACTOR ITEMS and all
documentation necessary to confirm compliance is available for verification by
COMPANY.
2.3.3 CONTRACTOR shall prepare and submit an audit plan to COMPANY not less than
seven (7) days prior to the date requested by COMPANY for the performance of the
audit. If practicable, the CONTRACT mobilisation audit shall be performed within
seven (7) days of the CONTRACT EFFECTIVE DATE. COMPANY shall evaluate
and verify the extent to which CONTRACTOR has fulfilled its obligations under the
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CONTRACT and is ready, willing and able to commence operations.

CONTRACTOR's audit plan shall include but not be limited to the items detailed in
Article 2.3.2 and CONTRACTOR's requirements in accordance with Section 5 –
Health, Safety, Security and Environment.
2.3.4 The CALL-OFF mobilisation period shall be that period specified in the CALL-OFF
FORM. The period specified shall be deemed sufficient to allow CONTRACTOR to
mobilise CONTRACTOR ITEMS and CONTRACTOR PERSONNEL in order to fulfil
its obligations on the CALL-OFF COMMENCEMENT DATE.
2.3.5 Upon receipt of a CALL-OFF FORM, CONTRACTOR shall mobilise CONTRACTOR
ITEMS and/or CONTRACTOR PERSONNEL to the WORKSITE or PORT OF
LOADING in sufficient time to ensure that the CALL-OFF COMMENCEMENT DATE
can be achieved. In the event CONTRACTOR cannot meet the COMPANY specified
mobilisation period then CONTRACTOR must inform COMPANY immediately, in
writing stating its reasons, and provided COMPANY agrees with CONTRACTOR’s
reasoning, an alternate CALL-OFF mobilisation period shall be mutually agreed
between COMPANY and CONTRACTOR.
• Initial mobilization within 90 days upon CONTRACT is awarded.
• Additional call off within 30 days upon received CALL-OFF FORM.
2.3.6 In the event CONTRACTOR fails to comply with the requirements of Article 2.3.5,
which results in CONTRACTOR’s failure to achieve the required mobilisation period
resulting in a delay, then such delay shall be dealt with in accordance with Section 3
– Schedule of Prices, Article 11. COMPANY shall reimburse CONTRACTOR for any
supported additional costs incurred to mobilise CONTRACTOR ITEMS, only insofar
as COMPANY has failed to provide twenty-four (24) hours notice for the CALL-OFF.
2.3.7 Notwithstanding the provisions of Article 2.3.5, COMPANY shall not reimburse
CONTRACTOR in the event CONTRACTOR provides CONTRACTOR PERSONNEL
and/or CONTRACTOR ITEMS to the WORKSITE in advance of COMPANY’s
required mobilisation period as specified in the CALL-OFF FORM. In all such
instances CONTRACTOR shall be fully responsible for all additional costs incurred.
2.4 Contract and Call-Off Demobilisation
2.4.1 Upon completion of the CONTRACT or a CALL-OFF, CONTRACTOR shall
demobilise CONTRACTOR ITEMS and CONTRACTOR PERSONNEL from the
WORKSITE and any land and/or facilities temporarily allocated to the
CONTRACTOR by COMPANY for the provision of its bases in the most expeditious
manner and in accordance with the CONTRACT.
2.4.2 In accordance with Section 2A – General Conditions of Contract, unless COMPANY
specifically informs CONTRACTOR to the contrary, the CONTRACT shall not
terminate and CONTRACTOR shall not commence demobilisation on what would
otherwise be the termination date of the CONTRACT, until CONTRACTOR has
completed all of the WORK at the WORKSITE where drilling and/or related
operations are being performed.
2.5 Support Facilities and Services
2.5.1 CONTRACTOR shall provide, operate, maintain and repair the facilities as generally
described in this Article 2.5, except as explicitly specified as being provided by
COMPANY in Section 7 – Provisions by Company.
2.5.2 CONTRACTOR shall provide adequate management, administrative and support
services and facilities, including but not limited to office space and equipment,
management support, administration and accountancy services, logistics and
supervisory services, workshops, stores and warehouses, potable and industrial
water supplies, sewage disposal, telephone, facsimile, and electronic mail services
as are required to adequately and efficiently support the WORK.
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2.5.3 CONTRACTOR shall provide adequate operational facilities and services as may be
used for storing, maintaining, inspecting, repairing and overhauling CONTRACTOR
ITEMS, including necessary covered and open storage and work areas.
CONTRACTOR shall be liable for all costs arising from CONTRACTOR’s failure to
provide adequate protection for CONTRACTOR ITEMS.
2.6 Transportation of Contractor Items, Materials and Contractor Personnel
2.6.1 Except as explicitly specified to the contrary, CONTRACTOR shall perform the
preparation, handling and transportation of all CONTRACTOR ITEMS and
CONTRACTOR PERSONNEL detailed in this Section 4 – Scope of Work and
Section 3 – Schedule of Prices between CONTRACTOR BASES and the
WORKSITE, or between CONTRACTOR BASES and the PORT OF LOADING in the
case of offshore operations.
2.6.2 CONTRACTOR shall manage the preparation, handling and transportation of all
CONTRACTOR’s ITEMS and CONTRACTOR PERSONNEL in accordance with the
CONTRACT and in particular the journey management procedures specified in
Section 5 – Health, Safety, Security and Environment. CONTRACTOR shall maintain
written records of the actual route, travel time and distance for each instant that
CONTRACTOR transports CONTRACTOR ITEMS and CONTRACTOR
PERSONNEL between CONTRACTOR BASES and the WORKSITE or PORT OF
LOADING. CONTRACTOR shall provide COMPANY with a complete record of same
upon request.
2.6.3 CONTRACTOR shall ensure that all CONTRACTOR ITEMS are sufficiently protected
to prevent loss or damage during delivery to COMPANY’S WORKSITE.
CONTRACTOR shall ensure that pre-transport checks have been carried out on all
CONTRACTOR ITEMS in accordance with CONTRACTOR’s quality assurance
procedures and with due reference to the standards and inspection requirements
specified in Part 3 below. CONTRACTOR shall provide lift certification checklists and
certificates of conformity for each delivery and shall ensure, where applicable, that all
portable skid mounted CONTRACTOR ITEMS are supplied with earthing straps.
COMPANY shall have the option to inspect CONTRACTOR ITEMS selected by
CONTRACTOR to service a CALL-OFF prior to mobilization of such equipment from
CONTRACTOR’S BASE.
2.6.4 CONTRACTOR shall be responsible for providing any lifting and handling equipment
and accessories including, but not limited to, sheaves, pulleys, safety chains, hoisting
beams, lifting eyes, pad eyes, wire rope slings, skids, spreader bars, handling subs
and tools, as well as any special storage racks, containers, baskets, radioactive
stores, explosives magazines, platforms and all dunnage. All such lifting and handling
equipment shall meet the inspection and certification requirements described in Part
3 below.
2.6.5 CONTRACTOR shall ensure packaging of dangerous GOODS shall comply to all
recognised international standards, or any other current statutory regulations which
may pertain to CONTRACTOR ITEMS being transported. CONTRACTOR shall
complete and forward a dangerous GOODS declaration form with such
CONTRACTOR ITEMS.
2.6.6 Where CONTRACTOR PERSONNEL are at the WORKSITE they shall verify receipt
of CONTRACTOR ITEMS in accordance with a packing list and confirm
CONTRACTOR ITEMS have been received in operational condition and in
accordance with the requirements of the mobilisation plan, and for the preparation of
despatch notes for CONTRACTOR ITEMS returned from the WORKSITE. Current
certification, field operating instructions, drilling unit manuals, assembly drawings and
procedure manuals shall accompany all mechanical equipment transported to the
WORKSITE and be available at all times to COMPANY REPRESENTATIVE.
2.6.7 Any vehicle, which may be provided by CONTRACTOR, shall comply with
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COMPANY’s stated requirements described in Part 3 below.

2.7 Day Rate Performance Incentives
2.7.1 COMPANY may request that CONTRACTOR perform the WORK at the prices and
rates specified in Section 3 – Schedule of Prices, with the addition of a performance
incentive that would be generally based on CONTRACTOR being provided with an
additional incremental monetary incentive to perform its WORK more efficiently. The
incentive would require mutual agreement regarding the specific operations that
would be included in the incentive; benchmarks that would be used to establish
performance norms; and a method and means of measuring actual performance
against the predetermined benchmarks. CONTRACTOR's agreement, participation
and co-operation in executing performance incentive WORK is neither
CONTRACTOR’s right nor obligation and would be subject to mutual agreement
between COMPANY and CONTRACTOR.
2.8 Standards and Specifications
2.8.1 Without limitation to CONTRACTOR's obligations under the CONTRACT, the WORK
generally described in this Section 4 – Scope of Work and more specifically
CONTRACTOR ITEMS, CONTRACTOR PERSONNEL, and facilities detailed in
those articles contained in the Specific Scope of Work Part 2 below, and Section 3 –
Schedule of Prices shall be provided in accordance with Technical Specifications
Part 3 below.
2.8.2 CONTRACTOR shall adhere to the hazardous area classification specified in Part 3
below. CONTRACTOR shall be responsible for the layout of CONTRACTOR ITEMS
within the space provided by OTHER CONTRACTORS and shall at all times keep
the area clean and free from unnecessary obstructions.
2.8.3 CONTRACTOR shall adhere to COMPANY’s emergency procedures while
performing the WORK. CONTRACTOR shall have emergency procedures for the
medical evacuation of CONTRACTOR PERSONNEL from the COUNTRY OF
OPERATION. CONTRACTOR shall have procedures for the treatment of any
ailments that can occur through the use or misuse of hazardous chemicals or
radioactive sources utilised in the performance of the WORK.
2.8.4 CONTRACTOR shall ensure that all chemicals and chemical containers are handled
and disposed of according to COMPANY’s and or regulatory requirements imposed
in the C O U N T R Y OF OPERATION. CONTRACTOR shall make available to
COMPANY REPRESENTATIVE, copies of all chemical data sheets for all chemicals
in use at the WORKSITE.
2.8.5 CONTRACTOR shall ensure compliance at all times with COMPANY’s HSE
requirements as specified in Section 5 – Health, Safety, Security and Environment.
2.9 Customs and Immigration Services
2.9.1 CONTRACTOR shall be responsible for obtaining visas and work permits for
CONTRACTOR PERSONNEL and for importing and exporting CONTRACTOR
ITEMS and materials in accordance with the obligations stipulated in Section 2A –
General Conditions of Contract, and Section 8 – Administration Instructions.
2.10 Certification and Testing
2.10.1 All CONTRACTOR ITEMS, and in particular pressure retaining equipment, shall be
certified and tested in accordance with Part 3 below. Pressure and function testing
shall demonstrate the fitness for purpose of CONTRACTOR ITEMS. All PCE
equipment must be complied with PRESSURE CONTROL MANUAL FOR DRILLING,
COMPLETION AND WELL INETERVENTIONAL OPERATION Revision 1.06.
2.10.2 CONTRACTOR shall be responsible for the retention of certification in relation to the
repair or re-manufacture of CONTRACTOR ITEMS. Such documentation shall be
kept for a minimum period of five (5) years.
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ARTICLE 3 – MANAGEMENT AND COORDINATION OF THE WORK

3.1 General Provisions
3.1.1 CONTRACTOR shall perform the WORK in accordance with the well designs
provided in COMPANY’s drilling programmes. For each well design provided by
COMPANY, CONTRACTOR shall prepare and submit a drilling programme
execution plan in accordance with Article 3.2 which shall include all of the WORK
CONTRACTOR is obliged to provide under the CONTRACT that is specific to each
particular well.
3.1.2 COMPANY shall, within a reasonable time prior to the commencement of the WORK
at each WORKSITE, provide CONTRACTOR with well design parameters, in
accordance with Section 7 – Provisions by Company, together with any supporting
information that COMPANY considers relevant to the design of CONTRACTOR’s
execution plans, for the performance of its WORK, or for the performance and safety
of drilling and related operations.
3.1.3 CONTRACTOR shall be ready, willing and able to commence operations at the
WORKSITE when instructed by COMPANY. CONTRACTOR ITEMS that are
required to perform the WORK shall be fully operational when required. All
CONTRACTOR ITEMS shall have been assembled and tested, all materials tested
and prepared, and all required CONTRACTOR PERSONNEL shall be available at
the WORKSITE when required to commence operations.
3.1.4 CONTRACTOR shall provide typical surface CONTRACTOR ITEMS layouts
including a scale drawing showing the actual layout of the major components of
CONTRACTOR ITEMS at the WORKSITE and their overall dimensions, in both
elevation and plan views. Typical surface CONTRACTOR ITEMS layouts shall be
provided for:
(i) CONTRACTOR supplied cabins.
(ii) Control units, e.g. CT Unit, Jacking Frame, Solid Separator, Choke manifold
(iii) Special stores e.g. chemicals and tools.
(iv) Workshop containers and stores.
(v) Fluid pump (as applicable).
3.1.5 Contractor shall provide specifications and drawings for all CONTRACTOR ITEMS
which are run down hole. Such specifications and drawings shall be provided at the
WORKSITE and CONTRACTOR’S BASES, and shall include all necessary drawings
and other pertinent information and data such as individual drawings with all internal
and external physical dimensions provided to scale, as well as graphic cross
sectional and isometric illustrations. All drawings must be of sufficient detail to allow
fishing equipment to be selected.
3.1.6 CONTRACTOR shall be responsible for ensuring that all CONTRACTOR
PERSONNEL comply with all applicable permits to work systems, relevant to
the WORK, in effect at any WORKSITE.
3.2 Execution Plans
3.2.1 General Requirements
3.2.1.1 CONTRACTOR shall provide detailed execution plans for all stages of the WORK.
The execution plan shall include the reports, data and information specified in
Section 4 – Scope of Work and as otherwise specified in the CONTRACT.
CONTRACTOR’s execution plans shall be managed, coordinated and executed in
conjunction with the obligations of CONTRACTOR specified in Section 4 – Scope of
Work.
3.2.1.2 COMPANY shall regularly provide CONTRACTOR with an overall planning document
in the form of a short term drilling sequence, showing the sequence of wells to be
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coordinates, water depths, seabed conditions and other pertinent information that
COMPANY deems relevant.
3.2.1.3 Within thirty (30) days from the CONTRACT A W A R D DATE, CONTRACTOR
shall c o n f i r m curriculum vitas (CV’s) of CONTRACTOR’S KEY PERSONNEL
for COMPANY’S review and approval.
3.2.2 Mobilisation Plan
3.2.2.1 CONTRACTOR’s detailed mobilisation plan shall be provided at the CONTRACT
EFFECTIVE DATE and shall include the delivery dates of all CONTRACTOR ITEMS
specified in Section 4 – Scope of Work, for the performance of the WORK.
CONTRACTOR’s mobilisation plan shall include the start and end dates of significant
activities, critical milestone events, and shall highlight critical path activities that are
planned and must be executed prior to the CALL-OFF COMMENCEMENT DATE.
The mobilisation plan provided by CONTRACTOR shall clearly show the number of
calendar days required between the CONTRACT EFFECTIVE DATE and the CALL-
OFF COMMENCEMENT DATE to ensure that CONTRACTOR is ready, willing and
able to commence and continue uninterrupted performance of the WORK on the
CALL-OFF COMMENCEMENT DATE specified in the CALL-OFF FORM.
3.2.2.2 CONTRACTOR’S mobilisation plan shall include a plan diagram, in the form of a bar
chart, showing available float time for each activity and the critical path. The
g a n t chart shall be complemented, as necessary, with a written description of
CONTRACTOR’s mobilisation plan. The mobilisation plan shall be updated weekly
or more frequently if required by COMPANY.
3.2.2.3 In accordance with the requirements of Section 4 – Scope of Work, CONTRACTOR
shall submit a mobilisation audit plan to COMPANY and thereafter perform a
mobilisation audit with COMPANY prior to the CALL-OFF COMMENCEMENT DATE.
CONTRACTOR’s mobilisation audit plan shall include a detailed commissioning plan
for CONTRACTOR ITEMS. This shall show the timing and duration of all
testing/inspection, commissioning and acceptance activities, including but not limited
to all major items of CONTRACTOR ITEMS, which CONTRACTOR proposes to
undertake and complete during mobilisation.
3.2.3 Execution Plans
3.2.3.1 CONTRACTOR’s detailed execution plans shall identify the minimum notice required
to be provided to CONTRACTOR for each well planned on the short term drilling
Well Interventional sequence to allow, if necessary, sufficient time for
CONTRACTOR to prepare for moves between WORKSITE(S) and to ensure that
stocks of CONTRACTOR ITEMS and materials are available at the subsequent
WORKSITE.
3.2.3.2 COMPANY shall provide CONTRACTOR with a Coiled Tubing/ Pumping
stimulation proposal not later than twenty-eight (28) days prior to the planned
execution date of each well on COMPANY’S short term work sequence. On receipt
of the stimulation proposal, CONTRACTOR shall prepare a services WORK
programme which shall be submitted to COMPANY for review and approval not less
than t w e n t y - o n e (21) days prior to the planned execution date of each well.
3.2.4 Planning and Scheduling
CONTRACTOR’s execution plans for each well shall include, as a minimum:
(a) A schedule of all activities and the phasing between activities;
(b) A complete list of all principal CONTRACTOR ITEMS and the types and numbers
of CONTRACTOR PERSONNEL required to perform all WORK activities;
(c) An optimum transportation sequencing schedule for all CONTRACTOR ITEMS,
and CONTRACTOR PERSONNEL that are required at the WORKSITE, which
takes account of the minimum net cost to COMPANY, optimising space,
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providing systematic access to CONTRACTOR ITEMS, and minimising handling

and transportation;
(d) The scheduling requirements or constraints of COMPANY and its OTHER
CONTRACTORS;
(e) Sufficient detail to permit COMPANY to evaluate CONTRACTOR's plans and
thereafter monitor and verify progress of the WORK towards the targets
specified; and
(f) A comprehensive and effective daily progress reporting system.
3.2.5 Progress Reporting
3.2.5.1 In accordance with the requirements of Section 4 – Scope of Work, CONTRACTOR
shall designate specific CONTRACTOR PERSONNEL who shall be responsible for
updating the execution plans and reporting progress to COMPANY. Each principal
WORK component contained in CONTRACTOR’s execution plans shall be utilised as
the method and means to benchmark progress achieved with that planned.
CONTRACTOR shall provide a daily progress exception report highlighting any
deviations from planned progress during the previous days WORK. CONTRACTOR
shall provide a forecast of WORK planned for the following seven (7) days with
predictions of the impact of previously unachieved progress and anticipated future
problems. CONTRACTOR shall provide a range of alternative actions to be taken to
mitigate the effects of anticipated problems and to achieve initially forecast
completion dates.
3.3 Operating Procedures
3.3.1 CONTRACTOR shall submit to COMPANY within seven (7) days from the
CONTRACT EFFECTIVE DATE, written operating procedures for the WORK. Such
operating procedures shall be updated and maintained as per operational practise,
throughout the CONTRACT DURATION, and shall include but not be limited to the
following operations related to CONTRACTOR ITEMS and CONTRACTOR
PERSONNEL:
(a) Transportation, handling, rigging up and testing procedures.
(b) Health, safety and environmental procedures in accordance with Section 5 –
Health, Safety, Security and Environment.
(c) Quality assurance and quality control procedures in accordance with Part 3
below.
(d) Routine preventative maintenance programme and procedures for all
CONTRACTOR ITEMS, including but not limited to, tools, equipment and all
downhole equipment.
(e) Operating and running procedures for all CONTRACTOR ITEMS, including but
not limited to, tools, equipment and all downhole equipment.
(f) Calibration procedures.
(g) Stress calculations for all CONTRACTOR ITEMS.
3.3.2 As a result of operations or performance, CONTRACTOR shall maintain and update

all relevant CONTRACTOR documentation and shall advise COMPANY of any need
to update COMPANY documentation including but not limited to:
(a) Coil Tubing Operating procedure and manuals.
(b) COMPANY electronic data management system.
(c) CONTRACTOR ITEMS maintenance history files detailing manufacturing date,
maintenance history files, inspection dates, repair dates and dates relating to the
historic use of such CONTRACTOR ITEMS.
(d) CONTRACTOR shall document all failures and failure frequencies of critical components
and interfaces to facilitate the development of an equipment performance matrix.
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(e) Factory Acceptance Test (FAT) manuals.

(f) CONTRACTOR management procedures.
(g) CONTRACTOR ITEMS test procedures.
(h) Well status diagrams and well files.
(i) CONTRACTOR ITEMS specifications.
3.4 Contractor Items and Contractor Personnel
3.4.1 CONTRACTOR shall provide CONTRACTOR ITEMS and CONTRACTOR
PERSONNEL specified in this Section 4 – Scope of Work and Section 3 – Schedule
of Prices on the CONTRACT EFFECTIVE DATE or the CALL-OFF
COMMENCEMENT DATE for the performance of the WORK. CONTRACTOR
ITEMS and CONTRACTOR PERSONNEL shall be ready, willing and able to perform
the WORK as and when required.
3.4.2 No distinction shall be made between CONTRACTOR ITEMS belonging to
CONTRACTOR and those belonging to its SUBCONTRACTORS in respect of
responsibility for the WORK. In all instances responsibility for performing the WORK
shall remain with CONTRACTOR.
3.4.3 For CALL-OFF WORK, COMPANY shall not be responsible for the payment for any
of CONTRACTOR ITEMS and CONTRACTOR PERSONNEL that have not been
approved in advance by COMPANY through the issuance of a CALL-OFF FORM.
COMPANY shall not be responsible for the payment for any of CONTRACTOR
ITEMS that cannot be verified as being at the WORKSITE through the use of the
daily CONTRACTOR ITEMS stock report specified in Article 5.
3.4.4 Subject to Article 3.4.1, CONTRACTOR shall determine, provide and maintain
sufficient quantities of CONTRACTOR ITEMS, back-up equipment and
CONTRACTOR PERSONNEL to efficiently perform the WORK and shall be
responsible to reassess and adjust the quantities of CONTRACTOR ITEMS, back-up
equipment and CONTRACTOR PERSONNEL to ensure sufficient quantities are
continuously available to perform the WORK on an uninterrupted basis, throughout
the CONTRACT DURATION. CONTRACTOR shall provide additional
CONTRACTOR PERSONNEL at no extra charge to cover periods of absence of
assigned staff due to illness, leave or training.
3.4.5 It is CONTRACTOR’s responsibility to provide sufficient CONTRACTOR
PERSONNEL to accomplish the WORK within the constraints imposed by the
working-hours laws in effect in the COUNTRY OF OPERATION. COMPANY
reserves the right, but not the obligation, to inspect CONTRACTOR’s administration
required under such working-hours laws.
3.4.6 Any and all ancillary or associated items required to perform the WORK and any
ancillary or associated items forming an integral component of any of CONTRACTOR
ITEMS specified in this Section 4 – Scope of Work and/or Section 3 – Schedule of
Prices, which would normally be required to proficiently perform the WORK shall be
provided at the WORKSITE by CONTRACTOR at no additional cost to COMPANY
and shall not be subject to a CALL-OFF FORM.
3.5 Downhole Contractor Items
3.5.1 If applicable to the WORK, CONTRACTOR shall provide, operate, maintain and
repair down hole CONTRACTOR ITEMS specified in this Section 4 – Scope of Work
and Section 3 – Schedule of Prices, together with all associated and ancillary running
equipment, including where necessary drill pipe, tubing, and/or wire line crossovers
or adapter kits. CONTRACTOR shall provide COMPANY with all information with
respect to said downhole CONTRACTOR ITEMS including proposed operating
procedures, physical dimensions and pre-job calculations required to facilitate any
pressure tests, function tests or fishing operations.
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3.6 Worksite Requirements

3.6.1 CONTRACTOR shall be responsible for regularly reviewing, estimating and
recommending to COMPANY the quantities of CONTRACTOR ITEMS and numbers
of its WORKSITE CONTRACTOR PERSONNEL required to efficiently perform the
WORK without disruption to drilling and related operations.
3.7 Coordination of the Work
3.7.1 CONTRACTOR shall designate specific KEY PERSONNEL who are primarily
responsible for the coordination of all of the ongoing services and activities
associated with the WORK. Said KEY PERSONNEL shall coordinate, organise and
dispatch all CONTRACTOR ITEMS, materials and CONTRACTOR PERSONNEL
required to perform the WORK. Said personnel shall be considered to be KEY
PERSONNEL, in accordance with this Section 4 – Scope of Work, and shall possess
the qualifications and relevant experience essential to competently and efficiently
perform the obligations and duties with requisite care, skill and diligence.
3.7.2 CONTRACTOR shall be responsible for requesting the issuance of a CALL-OFF
FORM. Provided COMPANY agrees with CONTRACTOR’s request, COMPANY shall
issue a CALL-OFF FORM in accordance with Article 3.8 to approve and initiate the
CALL-OFF of CONTRACTOR ITEMS and CONTRACTOR PERSONNEL to the
WORKSITE for the performance of the WORK. Without limitation to
CONTRACTOR’s obligations specified in this Article 3.7, such written request to
COMPANY for a CALL-OFF FORM shall include all the information necessary to
permit COMPANY to efficiently respond to the CALL-OFF request and shall include
the date and time CONTRACTOR ITEMS and/or CONTRACTOR PERSONNEL must
be at the WORKSITE to commence operations.
3.7.3 The nature and criticality of certain operations may require COMPANY to instruct
CONTRACTOR to immediately reorganise its resources and respond to unforeseen
priorities. CONTRACTOR shall have ongoing communications with COMPANY to
ensure that it can and will take all possible measures to accommodate all operational
requirements of COMPANY and prevent disruptions to drilling and related operations.
3.8 Performance of the Work
3.8.1 CONTRACTOR's obligations for performance of the WORK shall include but not be
limited to the following:
(a) Obtain from COMPANY the operating requirements and parameters for the
specific WORK that is required to be performed at the WORKSITE.
(b) Request a CALL-OFF FORM from COMPANY for all and any additional
CONTRACTOR ITEMS and CONTRACTOR PERSONNEL that are required at
the WORKSITE to perform the WORK.
(c) Organise the expediting and transportation of CONTRACTOR ITEMS and
CONTRACTOR PERSONNEL to the WORKSITE or PORT OF LOADING.
(d) Perform any pressure testing, function testing, pre-assembly, maintenance,
refurbishment and repairs of the CONTRACTOR ITEMS and their associated
and ancillary items.
(e) Obtain approval from COMPANY to rig-up, assemble and test CONTRACTOR
ITEMS.
(f) Run, operate, test, install and/or retrieve CONTRACTOR ITEMS.
(g) Upon completion of the WORK, disassemble CONTRACTOR ITEMS and
perform maintenance, refurbishment, repairs, re-testing and storage or, if
required, organise the expediting and transportation of CONTRACTOR ITEMS to
CONTRACTOR’S BASE.
(h) Prepare and submit to COMPANY at the WORKSITE, all of the information, data
and reports required under the CONTRACT.
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3.9 Call-Off Procedures

3.9.1 COMPANY shall instruct CONTRACTOR, through issuance of a CALL-OFF FORM
(all CALL-OFF FORMS will be issued via SAP – see Section 8 – Administration
Instructions), to adjust the quantity of CONTRACTOR ITEMS and/or the numbers of
CONTRACTOR PERSONNEL or to instruct CONTRACTOR to provide CALL-OFF
CONTRACTOR ITEMS and/or CONTRACTOR PERSONNEL detailed in the
CONTRACT or in CONTRACTOR's catalogue of services and its corresponding
regional price list referred to in Section 3 – Schedule of Prices.
3.9.2 When instructed by COMPANY through a written CALL-OFF FORM to increase the
quantity of CONTRACTOR ITEMS and/or the numbers of CONTRACTOR
PERSONNEL, CONTRACTOR shall make said CONTRACTOR ITEMS and/or
CONTRACTOR PERSONNEL continuously available for the performance of the
WORK not later than the CONTRACT EFFECTIVE DATE and/or the CALL-OFF
COMMENCEMENT DATE. For the CALL-OFF of items listed in CONTRACTOR's
catalogue of services, the CALL-OFF COMMENCEMENT DATE shall not be later
than that specified in the CALL-OFF FORM, which date shall be mutually agreed
between CONTRACTOR and COMPANY. COMPANY shall not be responsible for
the payment of the prices and rates for CONTRACTOR ITEMS and CONTRACTOR
PERSONNEL specified in a CALL-OFF FORM prior to the CALL-OFF
COMMENCEMENT DATE specified in the CALL-OFF FORM.
3.9.3 When instructed by COMPANY through a written CALL-OFF FORM to decrease the
quantity of CONTRACTOR ITEMS and/or the numbers of CONTRACTOR
PERSONNEL, or decrease the quantity or number of any item called-off from the
items listed in CONTRACTOR's catalogue of services, COMPANY shall have the
right to terminate the CALL-OFF of said items at any time provided that COMPANY
gives CONTRACTOR not less than forty-eight (48) hours prior written notice through
the issuance of a CALL-OFF FORM that terminates the requirement for said items.
3.10 Deliver the Limit Process
3.10.1 CONTRACTOR shall participate in and apply COMPANY’s “Deliver the Limit”
process to operations unless otherwise agreed by COMPANY. This process guides
the breaking down of the WORK programme into discrete operational steps to
facilitate analysis and subsequent improvement to the programme on a “best for well”
basis. Each step is tested by asking, for example:
(a) What is the relative importance of this step and likelihood of improvement?
(b) What previous experience is available in relation to this step?
(c) What benchmarking information is available in relation to this step?
(d) Do we need to carry out this step?
(e) Can this step be carried out off the critical path?
(f) Can this step be carried out, faster, cheaper, to a higher quality or with less risk
to operations?
3.10.2 CONTRACTOR is responsible for ensuring knowledge and lateral learning is
obtained and subsequently applied to this process. COMPANY is responsible for
guiding and monitoring the application of the process.
3.10.3 CONTRACTOR shall ensure that key knowledge and experience relating to the
WORK, particularly where it impacts on performance, is retained through actions
including, but not necessarily limited to, the provision of dedicated personnel, and
participation at WORKSITE or after action reviews (AAR).
ARTICLE 4 – ABNORMAL DAMAGE, CONDITIONS AND REPAIR

4.1 Abnormal Damage
4.1.1 In the event of abnormal damage to CONTRACTOR ITEMS, CONTRACTOR shall
notify COMPANY REPRESENTATIVE, in writing, within seven (7) days, of the
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collection of the CONTRACTOR ITEMS concerned. Such notification shall contain all
relevant available details of the claim being made in accordance with Section 3 –
Schedule of Prices, Article 5. CONTRACTOR shall allow COMPANY the opportunity
to physically inspect such damaged CONTRACTOR ITEMS prior to their repair.
4.1.2 CONTRACTOR must demonstrate that abnormal damage occurred as a result of
CONTRACTOR ITEMS being operated outside of their OPERATING ENVELOPE. In
the event CONTRACTOR elects to operate CONTRACTOR ITEMS outside of their
OPERATING ENVELOPE, e.g. to meet incentive target(s), then no charges for
abnormal damage shall be payable.
4.2 Abnormal or Hazardous Conditions
4.2.1 CONTRACTOR shall immediately notify COMPANY if any abnormal or hazardous
condition is encountered, while exerting every reasonable effort to overcome such
circumstances in accordance with agreed operations procedures and, in the absence
of agreed written procedures, in accordance with good oilfield practice.
4.2.2 In the event of well control problems, including but not limited to lost circulation, well
bore influx or unexpected high pressure at surface, CONTRACTOR and OTHER
CONTRACTORS shall take immediate precautionary action in accordance with
COMPANY’s well control procedures and perform remedial operations as instructed
by COMPANY.
4.3 Repair of Contractor Items
4.3.1 CONTRACTOR shall manage all CONTRACTOR ITEMS refurbishment and repair
process in accordance with Article 12 hereunder, and shall ensure that all
CONTRACTOR ITEMS delivered for inspection, repair, refurbishment or replacement
are returned to the WORKSITE fit for their intended purpose, in good working
condition and in accordance with the agreed programme and design specifications.
ARTICLE 5 – RECORDS AND REPORTS

5.1 General Requirements
5.1.1 CONTRACTOR shall plan, monitor, control and report the operational data and
progress of the WORK with suitable schedule diagrams and reporting formats at a
frequency determined by COMPANY. CONTRACTOR shall keep COMPANY fully
informed of the progress of and changes to the WORK at all times and shall comply
with the reporting requirements detailed in this Article 5.
5.1.2 CONTRACTOR shall provide standard report formats for reporting the information
required in this Article. Reporting units shall be in accordance with the units in Part 3
below. CONTRACTOR shall modify its reports as required to facilitate the information
and frequency of reporting required by COMPANY. The specific layout and format of
the reports listed in this Article 5 shall be agreed by CONTRACTOR and COMPANY,
and shall be fully implemented at the CONTRACT EFFECTIVE DATE.
5.1.3 The reports named and generally described in this Article 5 shall be utilised by
CONTRACTOR to report the progress of the WORK. Reports shall be accurate and
comprehensive and shall, unless stated to the contrary, be submitted by
CONTRACTOR to COMPANY at the WORKSITE. As a minimum, at the end of each
well, CONTRACTOR shall provide COMPANY with all reports and data on a
computer disk and in the software and format specified by COMPANY.
5.1.4 All daily reports shall be recorded in writing and shall be updated for submission at
06.00 hours each day and/or at any other time if instructed by COMPANY. All
reports, which shall be in English, shall be typed where possible or otherwise clearly
and neatly hand-written. All data recorded on charts shall contain all relevant testing
operations with flowing periods, choke size, time, and date, etc.
5.2 Calibration Reports
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5.2.1 On a monthly basis, CONTRACTOR shall provide a report of the calibration that has
been performed on all instruments, including gauges, meters and recorders, provided
by CONTRACTOR under the CONTRACT. Instruments shall be recalibrated in
accordance with CONTRACTOR's inspection, preventative maintenance and
calibration programme as detailed in Part 3 below. The calibration tests shall be
verified by COMPANY and all details of the recalibration tests shall be recorded and
formally reported to COMPANY. All instruments shall be calibrated prior to delivery to
the WORKSITE.
5.3 Performance Report
5.3.1 On request by COMPANY, CONTRACTOR shall provide a performance report to
COMPANY detailing performance monitoring for the WORK in general and each
principal item of CONTRACTOR ITEMS. CONTRACTOR's performance monitoring
shall include meaningful performance indicators, performance benchmarks that
specify minimum acceptable standards of performance, specific data measured,
methodology for gathering and analysing data, and corrective actions taken in the
event of non-conformance to benchmarks.
5.3.2 CONTRACTOR shall establish, with the assistance of COMPANY, additional
performance indicators or modify existing performance indicators and reports as
required in order to facilitate the information and frequency of reporting required by
COMPANY.
5.3.3 CONTRACTOR shall submit a report to COMPANY on each occasion that any
CONTRACTOR ITEMS fail to operate in the manner for which it is intended and
which results in CONTRACTOR being unable to commence or continue normal
operations, and results in a disruption of normal operations at the WORKSITE.
CONTRACTOR shall report such failure within twenty-four (24) hours of the failure
occurrence. The report shall detail cause of failure, consequence on performance of
the operations in terms of non-productive time, action taken to remedy failure and to
prevent recurrence, and the duration of failure. CONTRACTOR shall cooperate and
provide assistance on any investigation or audit of such failure required by
COMPANY.
5.4 Field Tickets/Job Report
5.4.1 Upon completion of each job, field tickets shall be immediately issued by
CONTRACTOR, which must be agreed to and signed by COMPANY and
CONTRACTOR. The field ticket shall contain the specific details of the actual
CONTRACTOR ITEMS, materials and CONTRACTOR PERSONNEL for which
payment is due to CONTRACTOR in accordance with Section 3 – Schedule of Prices
and include a performance and quality improvement assessment.
5.4.2 Upon completion of each job, CONTRACTOR shall immediately provide COMPANY
at the WORKSITE with a job report which shall include but not be limited to the well
name and number; details of the job type and specific operations performed; actual
CONTRACTOR ITEMS, materials and CONTRACTOR PERSONNEL utilised and/or
consumed to perform the job versus the programme; programmed operating
practices, parameters and values versus achieved results; and all other job specific
information and data requested by COMPANY.
5.5 Contractor Items Stock Reports
5.5.1 On a daily basis, CONTRACTOR shall provide a stock report which shall include a
complete inventory of all CONTRACTOR ITEMS provided at the WORKSITE for
each service for which CONTRACTOR is to be reimbursed in accordance with
Section 3 – Schedule of Prices.
5.5.2 All CONTRACTOR ITEMS listed in the report shall be identified by a brief description
of the item, date of arrival at the WORKSITE, arrival manifest number, date of
scheduled/actual departure from the WORKSITE, departure manifest number, the
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item’s unique asset or serial number, and the purpose for which the item is at the
WORKSITE.
5.5.3 CONTRACTOR shall provide at the WORKSITE for all CONTRACTOR ITEMS, all
necessary operations manuals and other pertinent information and data including but
not limited to the manufacturer, date and location of manufacture, drawings with
physical dimensions, design and operating specifications, pre-job procedures, make-
up and running procedures and all other data and information required for the
successful performance of the WORK with CONTRACTOR ITEMS.
5.5.4 CONTRACTOR ITEMS stock reports must be verified, agreed, and signed by
COMPANY and CONTRACTOR on a daily basis. Said daily report shall form the
basis for verification of the actual CONTRACTOR ITEMS for which CONTRACTOR
is entitled to payment in accordance with Section 3 – Schedule of Prices.
CONTRACTOR shall not be compensated for any CONTRACTOR ITEMS not
included on the daily stock report.
5.6 Weekly Operations Report
5.6.1 At the beginning of each week, CONTRACTOR shall provide COMPANY with a
summary of all of the jobs performed under the CONTRACT for the previous week.
5.6.2 The weekly operations report shall include but not be limited to the well number, type
of job, date performed, drilling unit name/number; jobs costs and total cost for the
period; LTIs - total time lost as a result of all lost time injury incidents over the period;
operating time required for a job; and all unproductive operating time that resulted
from conditions or circumstances which are under the direct control or influence of
CONTRACTOR including time spent by CONTRACTOR to remedy the problems
such as repeat runs, tool failures and the like.
5.7 Monthly Performance Reports and Service Meetings
5.7.1 CONTRACTOR shall provide a monthly performance report as specified in Article 5.3
and other reports as requested by COMPANY including, but not limited to, failure
reports, and monthly service reports including reasons for downtime and corrective
action taken. CONTRACTOR shall present CONTRACTOR’s performance at monthly
service meetings or at such other intervals as determined by COMPANY.
5.8 Quality Assurance/Quality Control Report

5.8.1 Where applicable to the WORK being provided by CONTRACTOR in this Section 4 –
Scope of Work, CONTRACTOR shall submit a pre-job report on the material testing
of all chemicals and additives and the slurry testing of all cement or stimulation fluid
recipes together with its job proposal.
5.9 End of Well Report
5.9.1 Within one (14) d a y s f o l l o w i n g the completion of each well, CONTRACTOR
shall provide a comprehensive end of well report consisting of a compilation of all data
collected under this Article 5 and the CONTRACT including, but not limited to, a
summary of all daily reports, non-conformance reports, experience reports, volume
summaries, job evaluation reports, specific service data relative to the WORK being
provided by CONTRACTOR in this Section 4 – Scope of Work (e.g. B H A data,
f l u i d data, summary of operation and lesson learnt), and where applicable, a
summary outline of all operational aspects which may have affected or influenced
the Coiled Tubing operation (e.g. drag/ friction, well behaviour and response).
5.9.2 A section of the end of well report shall be devoted to CONTRACTOR and
SUBCONTRACTOR HSE performance during the CONTRACT period.
PART 2 – SPECIFIC SCOPE REQUIREMENTS

ARTICLE 6 – SERVICES INCLUDED IN THE WORK
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6.1 Utilisation of the Services

6.1.1 This Article 6 provides a general description of the services that shall be provided by
CONTRACTOR for the performance of the WORK. COMPANY gives no guarantee
either explicit or implicit in the CONTRACT of the actual utilisation of the services
including the quantities of CONTRACTOR ITEMS and/or CONTRACTOR
PERSONNEL that will be utilised to perform the WORK.
6.2 General Description of the Services
6.2.1 Subject to CONTRACTOR's general obligations detailed in Section 4 – Scope of
Work, Part 1, CONTRACTOR shall perform the services described in this Part 2 and
as further specified and detailed in the CONTRACT. The services shall be performed
with CONTRACTOR ITEMS, CONTRACTOR PERSONNEL and facilities described in
this Section 4 – Scope of Work and Section 3 – Schedule of Prices including all
associated and ancillary equipment which shall be provided to a standard and
specification that shall meet or exceed that specified in Part 3 – Technical
Specifications. Except as otherwise explicitly specified as being provided by
COMPANY in Section 7 – Provisions by Company, the services to be provided by
CONTRACTOR shall include but not be limited to:
(a) Provision of management, administrative and operational support facilities which
shall include but not be limited to warehouse, office, yard, workshop, laboratory,
camp and all other necessary support facilities.
(b) Storage, handling, maintenance, refurbishing, inspection, re-testing and repair of
all CONTRACTOR ITEMS.
(c) Transportation and delivery of CONTRACTOR ITEMS and/or CONTRACTOR
PERSONNEL to the WORKSITE or PORT OF LOADING.
(d) Verification of delivery of CONTRACTOR ITEMS to the WORKSITE to confirm
that shipments are complete and undamaged; taking immediate remedial action
in the event of any critical shortfall in the quantity or type of CONTRACTOR
ITEMS delivered; preparing despatch requisitions and lists for CONTRACTOR
ITEMS being returned from the WORKSITE; and maintaining current inventories
of all CONTRACTOR ITEMS at the WORKSITE.
6.3 Specific Description of the Services
The Service to be provided shall comprise, but not necessarily be limited to, direction,
supervision and controlling the mixing and pumping of acid, nitrogen, brine and other
miscellaneous fluids and associated operations as described herein. This will include
the provision, operation, maintenance and repair of appropriately equipped and
certified pumping units, coiled tubing units, coiled tubing reels, nitrogen units and
filtration facilities with all ancillary and associated items. Contractor shall provide
suitably qualified and experienced Personnel, together with all required management
and supervision, Facilities, Materials, tools and support services required to fulfil the
Services as described below and elsewhere in the Contract except for such
provisions as explicitly stated to be provided by Company in Article 4.0 below.
The Service to be provided under this Contract is the provision of equipment and
services to execute activities 365 days per year, as grouped below. These services
are merely to indicate the past and future requirements and in no way complete.
Equipment listed below reflects existing operations. Any equivalent product with
similar capabilities and specifications or more shall be acceptable to Company.
Typical well parameters crucial for carrying out the activities will be provided
separately during the tendering process. Data on the well parameters and current
operations shall be provided to Contractor upon request.
a) Stimulation services
This includes mixing and pumping (bull heading) or spotting through work string
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• Acid stimulation
• Crude oil pumping depending on fluid flammability rating Solvent pumping
• Spotting acid Chemical pumping
• Specialty Services e.g. water shut-off/gas shut-off using polymer or any other
chemical/ technique; SurgiFrac or equivalent; selective stimulation etc.
b) Nitrogen services
Nitrogen or nitrified fluids pumping. Pumping nitrogen gas or nitrogen gas mixed
with fluids in order to aid well flow, Nitrogen will either be provided from liquid
nitrogen equipment OR self-generated unit.
c) Coiled Tubing services

Coiled Tubing Catenary Operation includes
• Pumping fluids or running tools through endless reeled tubing in order to perform
Cleaning out Sand, Scale, mud and other impediments in production tubing and
/or casing with jetting tools – water, acid, solvent or nitrified wash.
• Crude/gel pumping
• Perforation washes Water shut-off
• Set and pull/open and close down-hole tools Acid stimulation
• Fishing/Milling Tractor operations Chemical injection Fluid sampling Under-

reaming Nitrogen lift
• Manipulation or placement of wireline accessories.
• Gravel packing
• CT Conveys perforations
• CT and/or ESP Completions
• Hydraulic fracturing
• Logging
• CT drilling
• Real-Time Downhole monitoring (Pressure/ Temp/ Force)
• Pipe Recover (Chemical Cutter/ RCT for the provided CT Sizes)
• Supply Coiled Tubing Tower - Optional

d) Well Killing Services
Blending and pumping fluids to inject into the well in order to reduce the wellhead
pressure to zero and allow remedial work.
e) Supply and use of Special Tools (Optional).
Mechanically set retrievable packers (RTTS)

Retrievable Bridge Plugs (Model 3L, N-quick)
Pin Point Injection Packers
Circulating valves
Safety joints
Drillable mechanical plugs (FAS Drill)
Nippless plug – can be set by slickline or CT
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f) Well testing Multiphase-meter & Flow back package

The purpose of a well test multiphase meter is to obtain definitive data to confirm
reservoir productivity. The objectives are, but not limited to, demonstrating
hydrocarbon mobility, establishing productivity, determining inflow performance,
obtaining build-up data and down-hole PVT samples.
Equipment: All mobile equipment shall be of an integrated design. Skid mounted
equipment shall be suitable for transport by trailer or on boat/vessel or road and
capable of being unloaded at the well site. All mobile equipment shall be
designed and certified according to BSP standard.
Post Stimulation Flow-Back package: Post stimulation clean-up operations are to
displace stimulated fluids from the wellbore and formation and to remove acid
spent and wellbore skin by production of reservoir fluids. The clean- up will
produce back any unstable and establish flow parameters to be used during the
testing phase of the operation. This service is also included ability of injecting
required chemical into the flowback during flowback.
Solid Separation Flow-Back package: Provide the ability of separate the solid
content from the flow back at surface while performing sand/ solid
cleanout operation.
Deliverables High Quality Data recorded during the Well Testing Period and
presented to Company within due time after the completion of the test period is
essential. In order to ensure focus on the deliverables from the Contract,
Company shall prior to initiation of each Well Test Period establish as part of the
Well Program a list of deliverables required from Contractor. For wells or series
of wells for which an incentive is agreed, Company shall establish the relative
importance of the deliverables/quality indicators.
Contractor is responsible for coordinating and mobilising equipment, resources
and associated third parties, ordering, storage, loading and transporting
Equipment and Materials from the designated yard(s) to the Site(s), receiving
and unloading Equipment on Site for the execution of operations. Equipment –
operation, maintenance, inspection, calibration and repair of all equipment
itemised.
The Services shall be executed in accordance with Section 4b. (Technical
Specifications), Company Standing Instructions, job programmes/instructions
and Operating Procedures and Practices, including all revisions thereto as
issued by the Company during the Operational Period and shall comprise the
provision and operation of Equipment and Personnel to execute activities as
described in Article 3.1 above.
The Contractor shall be deemed to have allowed in the Rates and prices set
down in the Schedules hereto, for any degree of utilisation of Services, and
accordingly of the Equipment and Personnel.
Company gives no guarantee either explicit or implicit in this Contract of the
actual utilisation of the Services including the quantities of Contractor's
Equipment, Materials or Personnel that will be utilised to perform the Services.
g) Slickline Services (Optional)

CONTRACTOR shall provide a Slickline services which is to accommodate/
complete slickline activities pre/ post Coiled Tubing work scope. The services
shall include equipment, personnel and services. All equipment shall be designed
and certified according to BSP standard and comply to Pressure Control Manual
For Drilling, Completion and Well Interventional Operation Rev 1.06.
COMAPANY encourages of utilizing mutli-skills on existing crews for performing
slickline activities which is part of Coiled Tubing Operation.
h) Wellhead Maintenance Services (Optional)

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CONTRACTOR shall provide a Wellhead Maintenance services which is to

perform preventive maintenance of Wellhead Equipment pre/ post Coiled Tubing
Operation.
COMAPANY encourages of utilizing mutli-skills on existing crews for performing
preventive maintenance of the wellhead valves pre/post Coiled Tubing Operation.
i) CO/ H2S Monitoring system

CONTRACTOR shall provide a CO/ H2S monitoring system for personnel, well
site and vessel. This service also includes providing Breathing Apparatus to
personnel for continuous monitoring and working at the well site and vessel.
j) Work Vessel (Optional).
CONTRACTOR shall provide a Support Vessel equipped with Compensate

gangway on CALL-OFF basis in accordance with Section 4 B - Standards And
Specifications to support Well Intervention activities that include but not limited to,
the following:
• Rigless Coiled Tubing operations
• Stimulation jobs or multi-well stimulation campaigns
• Water/Gas Shutoff jobs
• Cement jobs (cement squeezes, grouting, etc.)
• Nitrogen pumping
• Well Clean-up
The CONTRACTOR shall be able to mobilise Support Vessel to COMPANY Local

Base as stated in Article 2.3 within 90 days at initial call off and 30 days for every
call off.
In order to optimise the Support Vessel usage, COMPANY may Call-Off the
Vessel as a Support Vessel for other Well Services operations not within the
Scope of WORK such as wireline operations, grouting, etc.
k) Security Fence (For Land Operation ONLY)

CONTRACTOR shall provide the security fencing when works in land operation.
This fencing shall be constructed as part of the location preparation where
operations take place in urban and public areas. The specifications of the fence
shall be as follow,
All equipment, labour and materials including the provision of no entry sign
boards
Transportation of materials
Supervision of BSP approved personnel
Compliance with PPE standards
All lifting and hoisting operations shall be conducted in accordance with the Shell
Group Standard EP2005-0264 – Lifting and Hoisting HSE Land Transport
standards and EP 2005-0261 – Road Transportation HSE whilst conducting road
transportation operations in connection with the WORK
l) Accommodation, Messing and Site Office (For Land Operation ONLY).
CONTRACTOR shall suitable accommodation, messing and catering a the well

site for its personnel and for the personnel of COMPANY and COMPANY Other
CONTRACTORS in accordance with the provisions of the CONTRACT and with
such regulations and requirements made by the Government of Brunei and/or
local authorities.
CONTRACTOR shall provide one trailer mounted air conditioned meeting training
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room equipped with computer connection to a beamer and overhead projection

facilities. The room should be large enough to accommodate two crews and shall
have fixed benches/ tables.
Contract shall provide mobile camp designed and constructed in accordance with
the specification section. CONTRACTOR shall ensure that a provision is made,
as below, to accommodate the COMPANY’s representatives.
Designation Accommodation
COMPANY Site Representative 1 x Single Room en-suite at the
well Site
m) Waste Management
CONTARCTOR shall manage all waste materials including provision of material

and equipment, product at the sit by processing the waste material to COMPAMY
designed disposal site. .
6.3.1 Measurement and Functionality check
Contractor shall measure and record all lengths and dimensions of Equipment,
tools and Materials in the hole at all times, whether provided by Contractor,
Company or Company’s other Contractors. Contractor shall clean and visually
inspect threads at Site. The above conditions shall apply to all subsurface
Equipment including fishing equipment used in the provision of the Services.
Gas Detection
Contractor shall, especially on rigless operations, continuously and automatically
detect for hydrogen sulphide and hydrocarbon gases.
Stimulation and other fluids

Contractor shall carry out the storage, blending, mixing, conditioning, monitoring
and controlling of acid and all other fluids as per the approved job program and in
accordance with the specifications in Section 4b.
Sampling
Contractor shall, as and when required by Company, collect samples of acid and
other fluids, record the depth of origin of well bore solid samples, keep them free
from contamination and place them in containers provided by Company to be
despatched to laboratories for analysis, or as instructed by the Company.
Other Operations
Contractor shall, as and when required by Company, permit and assist
Company’s other Contractors to carry out logging, surveying, downhole motor
operations, fracturing, acidizing or any other specialised operation such as
providing assistance to Company’s other Contractors in conducting a an onsite
teardown analysis of their downhole equipment and reporting the findings in the
daily operations report. The Contractor is also responsible for providing
photographs of all anomalies observed with any in-hole Equipment during the
provision of the Services. Upon request by Company, Contractor shall allow for
utilisation of any identified resource mobilised under this Contract for the
pumping of Company chemicals procured from other Contractors.
On an adhoc basis and upon request from the Company, Contractor shall make
necessary arrangements for operations to continue beyond 12 hours, so as to
complete the job on the same day. Criteria for such requests shall be identified
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and agreed with the Company prior to the Commencement Date.
Safety Training Observation Programme (STOP)

Contractor shall implement and maintain the Dupont Safety Training Observation
Programme or an equivalent system approved by Company. Subject to
availability, Company shall provide the training material for STOP at cost to the
Contractor, which is procured from Dupont, normally at a discount.
HSE Manual and Permit to Work

Contractor shall submit its HSE manual and permit to work system to Company
one (1) month prior to the Commencement Date for evaluation and approval.
Bridging document for HSE management

Contractor shall produce a Contract specific "Bridging Document" to Company’s
well engineering HSE management system. The contents of the Bridging
Document shall be a specific description of Contractor's HSE management
system, Facilities and procedures.
The format of the Bridging Document shall follow that of Company’s well
engineering HSE management system and shall consist of the following sections:
a) Management Summary and Introduction.
b) Description of the Contractor’s Operations and Facilities.
c) Contractor's HSE-MS
d) HEMP.
e) HSE Critical Tasks,
f) Remedial Action Plan.
g) Conclusion and Statement of Justification for Operation.
Contractor is free to make use of guidance material available with the Company
including job sheets and hazard sheets developed from Company’s well
engineering HSE case. Contractor shall develop the Bridging Document and
submit it to the Company for approval at least 14 days before Commencement
Date.
6.3.2 OPTIONAL ADDITIONAL SCOPE OF WORK
Contractor will, upon written notice from Company, implement the additional work so
requested. Company’s request however will only be related to such work a specified
in Contractor’s current catalogue, including but not limited to provision of the following
equipment: Other services listed in Contractor’s price list specified in the Schedule of
Prices and Rates.
6.3.3 AVAILABILITY
Call off Notices and Call Off Completion Notices
Where Services are to be provided on a call off basis, the Company will endeavour to
give the Contractor notice of its requirements in line with the notice periods defined in
the Schedule of Prices and Rates [Section 3]. Services shall be carried out in
accordance with the priorities, schedules and instructions given by the Company. The
Contract Manager shall keep himself appraised of Company’s firm and tentative plans
for the Work, the likely timing and Equipment and Personnel requirements.
Contractor Equipment and Personnel shall be provided in line with the Call off notice
periods specified in Schedule of Prices and Rates [Part 9] and on a best endeavours
basis to meet shorter notice where required.
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Once the Contract Holder or Company Representative has identified a particular

work package, he will advise Contractor and provide a detailed description of the
work package, the anticipated resources required to be provided by the Contractor,
and the tentative start and completion dates for the work package.
The Contractor shall respond within seven (7) days either requesting additional
information, or agreeing to the Company’s proposals or providing measured counter
proposals. The Contractor shall provide CV’s for each Personnel proposed for the
Services where such Personnel are not Continuously available. If appropriate, the
Contractor shall submit a Lump sum proposal supported by indicative timings and
quantities for the Services.
The Contractor shall submit additional CVs if requested by the Contract Holder or
Company Representative.
Once agreement is reached upon all relevant aspects of the work package, the
Contract Holder or Company Representative shall issue a Call Off Notice – Part A. A
specimen Call Off Notice – Part A is set out in Appendix IV of Administration
Procedures [Part 8].
The Call Off Notice will specify in detail the particular Service including the
Personnel, Equipment and materials to be provided, the place where and the
approximate dates between which Services are required, and the agreed method of
pricing for the Call Off Notice.
Following the formal issue of a Call Off Notice, the Contract Manager will inform
himself from time to time, of the following key dates and whether the dates are firm or
tentative
a) “Mobilisation to Brunei”
The date when Contractor’s Personnel, Equipment and materials are required to be
in Negara Brunei Darussalam ready to commence work under the Call Off Notice.
b) “Mobilisation to worksite”
The date when the Contractor’s resources are required to be at the worksite for
operations to commence.
c) “Demobilisation from worksite”
The date when Contractor’s resources are no longer required for operations and may
be removed from the worksite.
d) “Demobilisation from Brunei”
The date when the Contractor’s resources are no longer required to fulfill the
Contractor’s obligations under the Call Off Notice and may be demobilized from
Negara Brunei Darussalam.
Upon completion of each job for which the Services are called out on a Call-Off
Notice – Part A, Contractor’s and Company’s representatives shall each sign a Call
Off Completion Notice – Part B to confirm that the Services have been completed to
the satisfaction of Company.
A copy of the Call Off Notice shall be submitted by the Contractor in support of its
invoice.
Continuously Available
Equipment and Personnel required by Company on a Continuously Available basis
shall be Continuously Available to the Company and shall not be committed or used
to support other operations without the prior express permission of the Contract
Holder.
6.3.4 PROCESS FLOW, INTERFACES AND DELIVERABLES

Following table provides the process followed, responsibilities and deliverables
required while executing the services referred to Article 3.1.
*Both implies Company and Contractor
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Ref.No. Process Responsibility Deliverables

A Developing Solutions
1 Identify Company needs Company FINAL AGREED JOB
PROGRAM
2 Gather information from Company Contractor
3 Establish agreed design criteria Both*
4 Initiate job design and proposal Contractor
5 Internal review and approval of proposal Contractor
6 Company review and approval of proposal (note Company
Company approval processes)
7 Finalize design of job program Both*
8 Writing detailed operations programme Both*
B Prepare and Mobilise Resources
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1 Keep track of activity plan and forecast resource Contractor SAFE & TIMELY
requirements MOBILISATION AS
PER CALL-OFF AND
APPLICABLE
PROCEDURES
2 Purchase Order from Company prior to allocation Contractor
of resources
3 Allocate appropriate resources (equipment and Contractor
personnel)
4 Distribute job information to assigned personnel Contractor
5 Establish data to be collected during job Contractor
6 Obtain call-off from Company Both*
7 Initiate loading of equipment and materials Contractor
8 Notification to appropriate personnel Contractor
9 Mobilize in a Safe and timely manner to location Contractor
under Company journey management standards
Performance of Services
Arrive on location Contractor Execute and
Complete job as per
programme and
provide job tickets and
charts to COMPANY
Representative
2 Perform site-assessment with Company Both*
Representative
3 Pre rig-up meeting Both*
4 Perform job rig-up Contractor
5 Perform job calculations Contractor
6 Review job plan, program and calculations with Both*
Company Representative
7 Establish all critical points of job and Both*
Appropriate job contingency plans
8 Conduct pre-job operational and safety meeting Contractor
9 Establish job communication, job roles and Contractor
responsibilities with all individuals
10 Set up data acquisition and controls and ensure Contractor
calibration
11 Pressure test system Contractor
12 Ensure actual mix water quality on site meets the Contractor
recipe/design requirements.
13 Execute and complete job Contractor
14 Provide Company Representative required Contractor
samples of mix water and acid
15 Discuss rig-down with Company Representative Contractor
16 Provide Company Representative with all Contractor
appropriate job tickets and charts
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D Demobilise Resources
1 Prepare equipment and location for departure Contractor Complete satisfactory
demobilisation as per
HSE STANDARDS
2 Obtain completed Evaluation Sheet from Contractor

Company Representative
3 Demobilize to Contractor base safely under Contractor
Company journey management standards
4 Service equipment for next job Contractor
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E Complete Reports
1 Complete standard job reports Contractor SAP service entry with
supporting documentation
2 Complete failure reports if required Contractor
3 Complete field tickets Contractor
4 Check field ticket accuracy Contractor
5 Submit to admin and complete SAP service Contractor
entry
F Review Performance
1 Review job with Contractor personnel Contractor PERFORMANCE
REVIEW
2 Review overall performance in Contractually Both*
agreed format (preferably Contract Holder
Club format, presently Global Category
Management Format) with Company
6.3.5 KEY PERFORMANCE INDICATORS

Following Key Performance Indicators shall be used to evaluate Contractor’s
performance.
Chemical Pumping:
• All acid samples titrated to within 5% of design specification.
• Pumping rate performed as per program specification.
• Acid/chemical and materials delivered as per program specification.
• All job tickets, data and charts submitted to Company Representative.
• All fluid samples (acid, water etc.) collected, retained or handed over as per
Company instructions.
Non-productive time:
• Health, safety and environment performance indicators as mutually agreed
after Effective Date.
• Cost related performance indicators as per Contract Holder Club format,
presently Global Category Management Format.
• Any other performance indicators as mutually agreed between the
Company and Contractor after Effective Date.
6.3.6 CONTRACTOR’S PERSONNEL

General Requirements
Contractor shall provide all Personnel required to perform its obligations under the
Contract. Personnel shall be dedicated to the Services and be continuously available
as and when required from the Commencement Date of the Contract or Purchase
Order.
Contractor shall provide a Curriculum Vitae (CV) including proof of competency and
other relevant certificates especially those showing compliance with HSE regulations to
Company for approval 30 days prior to the Commencement Date of Contract for all Key
Personnel. The CV's shall, as a minimum, show each person's qualifications, previous
certification obtained, work history, areas of specific competence, previous work
initiatives, language capabilities, availability, etc. Based on the submitted documents,
Company reserves the right to either approve or reject such Personnel, regardless of
SECTION 4A

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their years of experience or seniority.
SECTION 4A

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Any proposed change in Key Personnel shall be effected only after submission of CV,
proof of competency and other relevant certificates especially those showing
compliance with HSE regulations by Contractor to Company and after approval of such
documents by Company.
Company reserves the right to interview Key Personnel and Company approval of Key
Personnel shall not be unreasonably withheld. Company may suspend the Services in
the event that any Personnel provided are not approved, and all costs associated
with such suspension shall be borne by Contractor.
Contractor shall submit and regularly update an organigram of all Contractor Personnel
detailing seniority, reporting lines, safety and Equipment management, and
operational supervision responsibility. Job descriptions shall be submitted with the
organigram for approval by Company, prior to mobilisation of Personnel. Contractor
shall also provide each member of their crew with a copy of their job description.
Contractor shall maintain an auditable system to demonstrate the competence of its
Personnel based on documented individual assessments.
Where Contractor is not able to provide the aforementioned services, Company
reserves the right to call out third party specialist engineers from Company’s other
Contracts or from the open market and re-charge the Contractor for actual cost paid
for such call outs.
6.3.6.1 Qualifications and Experience of Key Personnel

a) General
Contractors Key Personnel are as specified herein and shall have the specified
qualifications and/or relevant experience. All costs associated with such key and
support personnel as described below are deemed to be part of the Rates.
CONTRACTOR shall provide sufficient competence personnel at the work location for
safe manner operation. In the event of additional personnel is requested by the opinion
of CONTRACT HOLDER to allow the continuous operation with the safe manner, the
additional personnel will be provided by CONTRACT without additional cost to
COMPANY.
b) Contract Manager
The Contract Manager shall have a minimum of ten (10) years relevant experience with
a minimum of three (3) years experience in a similar position and shall be dedicated to
Contractors operations in the Country of Operation. A bachelor’s degree in an
engineering science or an equivalent engineering technology qualification and the
relevant experience is preferred.
c) Operations Manager
The Operations Manager shall have a minimum of ten (10) years relevant
experience with a minimum of three (3) years experience in a similar position. A
bachelor’s degree in an engineering science or an equivalent engineering technology
qualification and the relevant experience is preferred. The primary responsibility shall
be to provide Services required to successfully complete job design.
d) Base Manager
The base manager at the field shall have a minimum of five (5) years experience with a
minimum of two (2) years experience in a similar position and shall be dedicated to
Contractor's operations in the Negara Brunei Darussalam. A degree in an engineering
or equivalent technical qualification is recommended.
e) Technical Supervisor
A technical supervisor shall have a minimum of ten (10) years in the oil/gas industry of
which a minimum of two (2) years experience in Coiled Tubing Catenary Operation
shall be directly supervising the particular service being performed as per work scope.
Recommended that to comply with BSP standards. His duties shall include but not be
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limited to the following:
(i) Provide technical advice and support on all aspects of the appropriate
service. He shall be responsible for on site supervision and job planning,
reporting to the company representative.
(ii) Provide contingency solutions in the event of a required programme
change due to operational requirements including but not limited to those
resulting from tool failures and formation response to chemicals.
(iii) Ensure that all equipment is checked and serviced before it is used. He
shall inform the company representative in good time of any necessary
company supplied items. He shall ensure that all equipment is kept good
order and cleaned after use.
(iv) Ensure that all company and contractor safety regulations are compiled
with. Special attention shall be given with respect to pressure testing and
chemical handling and storage.
(v) Prior to any operation, discuss the planned operation with company
representatives, check all materials or chemicals and check all
calculations. Any discrepancies found shall be brought to the immediate
attention of the company representative.
(vi) Ensure that treatment fluids are of the correct formulation and quality
according to company requirements.
f) Equipment Operator
Shall have a minimum of three (3) years relevant experience operating the particular
equipment (e.g Blender, pump, Coiled tubing unit etc ) and will be thoroughly
conversant with emergency procedures and shall be fluent in spoken English. The
equipment operator shall be capable of running the particular equipment for routine
operations without guidance from the Technical supervisor. Written proof of this
experience in similar operations will be required together with letters of refernce and
valid competency certificates.
g) Operator assistant
Shall have a minimum of one (1) year experience assisting in relevant oilfield
services.
h) HSE Advsior
The HSE Advisor shall as a minimum comply with the requirements, experience,
competence and qualifications required for HSE advisors in Company’s Health,
Safety and Environment Procedure). A competence based training programme
equivalent to the above requirements shall also be acceptable.
Contractor shall employ one (1) full time HSE Advisor who shall advise service
engineers responsible for the HSE management of each unit operated by Contractor
for Company. The HSE Advisor shall be provided with an independent personal
computer with internet facilities and access to independent transport at all times.
i) Field Engineers
Contractor shall provide qualified, experienced and competent field or service
engineers to perform, including but not limited to, the assembly, testing, operation,
installation, retrieval, maintenance, repair and refurbishment of down hole Equipment
required to perform the Services. The primary responsibility shall be to provide
technical support required to successfully complete designed job.
For coiled tubing operations, such engineers shall have experience with the type of
motors and equipment required for milling and clean up operations.
Field or service engineers shall have five (5) years relevant operations experience
with a minimum of three (3) years experience of the Services and shall be dedicated
to Contractors operations in the Country of Operation. An engineering technology
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qualification and relevant experience is preferred.

Contractor’s service engineer shall supervise and direct the Services. Such
supervision shall include but not be limited to:
• direct the make-up and break-out of Contractor’s Equipment;
• direct the surface testing of tools;
• direct the application of parameters for each assembly;
• evaluate the performance of the assemblies; and
• make on site reports on operational progress and performance.
6.3.6.2 Support Personnel
Design and Evaluation Services for Client (DESC) Engineer.
Contractor shall also provide DESC engineer at the company Seria (Head Quarter or
NIA) offices to provide technical support and ensure successful design, planning and
execution of services. The DESC engineer shall have an engineering degree and at
least 8 year experience in designing all types of stimulation and allied jobs. This
DESC engineer shall be provided by contractor to be sitting & located at company
office or where the contract holder needs
.
6.3.6.3 Scheduling Engineer
Contractor shall provide a scheduling engineer who shall be responsible for scheduling
and optimising the use of stimulation equipment and personnel. The scheduling
engineer shall have as a minimum, an engineering degree with at least three (3) years
of experience in such activities.
6.3.6.4 Laboratory Technicians

Contractor shall provide adequate laboratory technical support in the field to perform
tests such as but not limited to compressive strength, rheology, thickening time, free
water and other tests as specified in API Spec 10 to cover the quality control
requirements of the Contract. The laboratory technician shall be able to perform all
stimulation related laboratory testing and provide support on site for stimulation jobs
when required.
6.3.6.5 Occupational Health Advisor

Contractor shall employ an occupational health (OH) adviser with appropriate expertise
and training to advise Contractor, its senior management and line supervisors on a
regular basis. Medical records of Personnel shall be kept in a clinic or OH department
under the responsibility of a medical professional.
6.3.6.7 First Aiders

Contractor shall nominate at least two (2) persons in each shift who, in addition to their
other duties, shall be available to act as first aiders. The nominated persons shall have
completed Company’s course for first aiders or equivalent.
6.3.6.8 Gas Tester

Contractor shall nominate at least one (1) person in each crew who, in addition to his
other duties, shall be available to act as the gas tester. The nominated person shall
have completed Company’s course for gas testers.
6.3.6.9 Other support personnel

Contractor shall provide all the necessary support Personnel, including but not limited to
drivers, helpers, mechanics, electrician, equipment operators including
crane/forklift/hiab, office and administration Personnel, catering staff, public/ministry
relations staff and casual labour, all in sufficient number to perform the Services
efficiently and safely. Contractor shall also provide additional technical support for the
field to ensure successful completion of the designed job.
6.3.6.10 LIFTING PIC
Contractor shall provide qualified PIC as per lifting and hoisting standard at the worksite
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and maintains 24 hrs coverage throughout the operation period.
6.3.6.11 Location of Personnel

a) Personnel located at Seria/Kuala Belait office shall not be on an on-off work
schedule. Such personnel shall include senior management, technical,
administrative, financial and advisory staff. Company its own discretion may require,
some of the Contractor Personnel based in Company’s Seria/Kuala Belait offices to
provide Services in the offshore & onshore locations at times. The cost of all such
services shall be deemed as part of the Rates and no other payment of any form
shall be applicable.
b) Personnel permanently located either at the field base or at the well site and
in the accommodation, commensurate with the operational requirements.
6.3.6.12 Operational requirements
Contractor shall be responsible to provide a competent crew at all times
as per standard industry practice. Supervisory personnel shall be in
attendance in the field at all times during performance of the Services. Under
no circumstances, during any operation, shall the well Site be left
unsupervised.
For the duration of the Contract or Purchase Order, Personnel shall attend seven
(7) days a week twenty-four (24) hours a day, and during such
periods no allowance shall be made for absences, lunch breaks, Hari
Raya celebrations, or Ramadan etc. Personnel required for Call Off via
a Purchase Order shall be available at all times to meet the stipulated
notice requirements. The Contractor shall provide adequate and relevant
Personnel to maintain such requirements. Contractor shall submit
proposed work and leave schedules for all Personnel employed under
the Contract, which shall comply with Bruneian labour law. Contractor
shall submit a detailed induction programme and handover schedule for its
Personnel during Contract mobilisation, crew change and change out
of personnel to the approval of Company. The programme shall take into
consideration all HSE and operational requirements under the Contract.
Safety training of Contractor Personnel shall be according to the
requirements outlined in Company's HSE Specifications. All costs of the
training requirements, including the cost of possible temporary replacement
Personnel to cover regular Personnel that are attending safety courses, shall
be borne by Contractor.
Contractor shall specify Personnel to be provided along with the Equipment
(refer Article 3.5) and all costs related to the provision of such personnel as
described in this Article 3.4 shall be deemed to be part of the Rates and no
additional payment shall be applicable for such personnel.
6.4 EQUIPMENT
6.4.1 General specifications
With reference to the general requirements for Equipment as described herein
in the table below Contractor shall, when providing the Services, have
available the quantity of certified Equipment as mentioned in the table below
and required for the timely and efficient performance of the Services to
minimise waiting time resulting out of insufficient Equipment.
Contractor shall submit to the Company before award list of all Equipment and
tools including all accessories, ancillary or associated items required to
perform the Services and any ancillary or associated items forming an
integral component of any item of Equipment specified in the Contract and
which would normally be required to proficiently perform the Service but are
not specifically detailed in the Contract.
Contractor shall also provide detailed specifications, dimensions, technical
drawings, ratings, quantities and any other such details for all Equipment and
tools being proposed for the provision of Services under this Contract,
to allow the Company to evaluate that the quantity, quality and types of
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equipment are suitable for the execution of Services. Company may seek
additional or missing information for complete evaluation and reserves the
right to suggest alternatives on the Equipment requirements, which shall be
mutually agreed with the Contractor before implementation.
Ref. No. Equipment Functionality

1 Pump package for stimulation Twin Pump High pressure pumping capability with a working pressure
/miscellaneous pumping rating of 69,000kPa and with a Horsepower output rating of 225 HHP
each pump or sufficient pumping rate capability to meet job
requirements.
2 Pump (HP) package for High pressure pumping capability with a working pressure rating of
miscellaneous pumping 103,500kPa and with a Horsepower output rating of 500 HHP or
sufficient pumping rate capability to meet job requirements.
3 Coiled tubing unit (Pull capacity Working pressure rating of 69,000 kPa. Track stack and crane
of 15 to 48 tons Support as required.
and 48 to 50 tons)
4 Coiled tubing reels Sizes of 1.5”, 1.75” and 2” with working pressure of 69000 kPa and
103,500 kPa, length between 3500 –6000 metres and tensile
load of 20,500 kg to 33,400 kg.
Possibility of provided above CT size up to 7000 meters and 2-7/8” CT
under CALL-OFF.
5 Well control equipment Sufficient Blow Out Preventer equipment to meet the new PCM
requirement.
6 Nitrogen Pumping unit Nitrogen pumping capability up to a pumping rate of 180 SCF/hour (5
3
m /min) and high pressure pumping capability up to a working
pressure of 69,000kPa.
7 Nitrogen Storage Storage capacity as required by job specification up to maximum in-
3
country capacity of at least 40 m (10500 gallon).
8 Surface manifolding Sufficient high-pressure surface manifolding to allow successful
completion of job including but not limited to: quick latch double wiper
plug container, assorted casing and drillpipe connections, Lo-torque
valves, low pressure suction hoses and chicksans.
9 Data acquisition Sufficient electronic and analog equipment necessary to provide
customer with complete and continuous record of job. Recording shall
cover as a minimum: Rate, volume, pressures and slurry
density.
10 Bulk equipment Sufficient bulk acid pressure vessels, fluid tanks, truck or skid mounted,
to accommodate job requirements.
11 Other equipment Any other required equipment in order to obtain the successful
completion of the designed job, including but not limited to:
3
100BBL (12m ) batch mixer, filtration unit, foam equipment,
crane, centrifugal pump, steady flow separator, data monitoring van,
chemical injection pump, proper water sample containers, Tru-Water
balance, wiper plugs, centralizers, float equipment, laboratory testing
equipment, fishing, milling and cutting equipment, crossovers, wellhead
connections and transport for
Contractor equipment and materials.
6.4.2 Other services

Contractor shall provide Equipment, Materials, Personnel or other Services
from the items listed in Contractor’s most recently published Price Lists of
related services if instructed by Company.
In the event of such an occurrence, Company shall notify Contractor of the
requirement for such items by issuance of a Call-out notice. Contractor shall
provide such items and be compensated for it in accordance with Schedule of
Prices and Rates.
Contractor shall detail, any associated services that are included and shall be
provided as a part of the Services or are extensions of the Contractor’s
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operations that add direct or indirect value to the Services at no additional

cost to Company but are not otherwise specified in the Contract. Contractor
shall include such items as engineering design facilities and services, computer
simulations, modelling, testing, monitoring and evaluation services, research
and development, related new technology that is soon to be introduced, etc.
Contractor shall specify the precise deliverables that will be provided at no
additional cost, because of the provision of these other Services
.
6.4.3 Lifting Equipment
All lifting Equipment shall be fully inspected, tested and certified in accordance
with the specifications in Section 4B. Lifting equipment shall be tested in
accordance with SP- 1239 Specification for Lifting Equipment and Lifting
Operations.
Each item of lifting Equipment shall have its own inspection and test certificates, which
Contractor shall retain with the concerned unit, including records of any subsequent
inspections, certificates and repair Work, and shall make such records available for
inspection by Company at all times.
In the event that any item of lifting Equipment does not have full records as previously
mentioned, or should fail to comply with the specifications in Section C-6, Contractor
shall, if so requested by Company, replace such item with Equipment which meets the
specification and which does have full records.
6.4.4 Equipment Maintenance

Contractor shall, during the course of the Contract, maintain, repair and replace, in
accordance with its planned preventive maintenance programme, the Equipment to
ensure that its performance meets the specifications quoted by the Manufacturers and
that the quantities required are maintained. Contractor shall submit copies of proposed
maintenance schedules to the Company Site representative. All associated costs
resulting from maintenance, repair and replacement of Equipment shall be borne by the
Contractor unless otherwise specifically provided for in the Contract.
If so requested by Company, Contractor shall produce a certificate from the
Manufacturer stating that any repairs have been carried out in accordance with
Manufacturer's specifications.
Contractor shall be responsible for the routine maintenance of Equipment provided by
the Company for carrying out the Services. This includes but is not limited to Company
provided IT and communication Equipment.
6.4.5 Inspection of Equipment

Contractor shall whenever so requested by Company permit and provide assistance for
an inspection of the Equipment to be carried out by Company or its nominated
Contractor. Company shall have the right to reject all or any part of the Equipment so
inspected which does not comply with the specifications in Section C-6 or with
Manufacturer's specification or for considerations of safety or hygiene and Contractor
shall forthwith replace such rejected Equipment with other Equipment to the satisfaction
of Company.
Contractor shall ensure that all records of inspection and certification along with backup
documents for all Equipment are maintained throughout the duration of the Contract
and are clearly marked on the Equipment by means of a unique code or any other
suitable method approved by the Company before Commencement Date.
All certification, backup and inspection documentation, including Manufacturer’s
certification, design and material specification certification, shall be made available to
the Company at Contract/Purchase Order mobilisation. Subsequent re-certification
documentation and inspection reports shall be made available as per Manufacturer’s
recommendations.
Under no circumstances shall Equipment be provided, or be used in the performance of
the Services for which the Manufacturer’s certification, design and material
specification and testing certification are absent or expired.
The following minimum requirements for inspection and certification shall be complied
with for all Equipment used in the Services, including Equipment supplied by the
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Company, and shall be a necessary condition for such Equipment to be considered

satisfactorily mobilised.
Regular visual inspections.

All load bearing and pressure containing Equipment, or Equipment exposed to hostile
environments shall be inspected and certified in accordance with Section C-6 or with
Manufacturer’s recommendations whichever is higher in specification. All costs for such
inspections and certification shall be borne by the Contractor.
Prior to any Equipment being sent to Site, Contractor shall take all appropriate
measures to ensure that all Equipment is fit for immediate service. Such measures,
where necessary, may be performed at Site if they do not interfere with the efficiency of
well servicing or other operations.
Air receivers shall be internally inspected in accordance with API 510 every four years.
6.4.6 Testing of Equipment

All pressure containing components, such as high pressure manifolds, pressure
vessels, flanged shooting nipples, circulating heads and chiksans, shall be tested in
accordance with Company approved regulations, procedures and standards
established by Contractor. Tests shall include hydraulic pressure testing and ultrasonic
wall thickness examination.
For mobile flow lines and accessory Equipment, the requirements of Company’s
procedure shall apply (see Section C-6).
The Contractor shall maintain documentary evidence of all such tests, which together
with the regulations, procedures and standards of the tests shall be subject to audit by
Company.
6.4.7 Shared Equipment

Equipment, quantities of which shall be determined by Contractor, may be shared
between units at the sole discretion of Contractor. Any such decision to share
Equipment must not interfere with the operational availability of such Equipment, nor
may such sharing be the cause of a unit standing by awaiting the arrival of such
Equipment. Any time spent by a unit standing by, awaiting such Equipment, shall be
considered as not payable by Company.
6.4.8 Safety Equipment

Contractor shall provide personal protective equipment for Contractor Personnel, which
shall include safety clothing (fire retardant) and safety equipment as specified by the
company. Contractor Personnel shall wear, adequate protective clothing and shall be
instructed by Contractor in the use and availability of antidotes, first aid treatment and
chemical data sheets relating to toxic or hazardous substances utilised in the
performance of the Services.
Contractor shall provide safety with its principal items of Equipment which guard to
cover all exposed moving equipment or parts; shade netting over operating consoles;
safety equipment which as a minimum shall include fire extinguishers, gratings, first aid
kit, eye bath, goggles, acid resistant rubber gloves, acid resistant apron, portable gas
detector as specified by the company.
At hydrogen sulphide sites for rigless jobs, Contractor shall provide to its Personnel, all
necessary safety Equipment for detection and protection as specified by the company.
In addition to Health, Safety and Environment the Contractor shall comply with the
Company requirements for:
• Milestone Zone
• Health, Safety and Environment Standards
• Health, Safety and Environment Training
• Motor Vehicle Specifications Requirements
• Emergency Response
• Occupational Health
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• Accident and Incident Reports

• Work Related Injuries
• Man-Hours Reporting
The detailed requirements for each item are contained in the HSE Standards.
The specific revision documents references of the HSE Standards Master Index, the
Health, Safety and Environment Training Prospectus, and the Company Standard Land
Transport Vehicle Specification TMS0439 (or any revision thereof), are detailed in an
Appendix 1 to Standards.
6.4.9 Management of replacement components & sub-assemblies (spares/consumables)

This article shall apply equally to preventive and breakdown maintenance. Contractor
shall provide all consumables and spare parts and in sufficient quantities required to
maintain Contractor’s Equipment in good working condition. Consumables required for
performance of the Services shall include but not be limited to, grease and thread
compounds, preservatives, cleaning agents, paints, brushes, rags, tools and lubricants.
6.4.10 MATERIALS
With reference to the general requirements for Materials as described herein,
Contractor shall, when providing the Services, have available the quantity of Materials
as required for the timely performance of the Services. These shall include but not be
limited to details mentioned below:
• Stimulation materials
• Water control materials
• Completion fluid filtration materials
• Adhoc materials e.g. bridge plugs, straddle packers etc.
Contractor shall submit to Company a complete list of the quantity and quality of
Materials to be supplied for the performance of Services, prior to award to enable
Company to evaluate the suitability of the proposed materials for the Services.
6.5.1 PLANNING AND SCHEDULING

Contractor shall provide Services according to the Company’s Integrated Asset Plan
(IAP), 90 (ninety) day plan, 30 (thirty) day plan and 7 (seven) day plan. The
responsibilities involved in the planning process are defined as follows:
The Company is responsible for a 90 day plan with the first 30 days clearly defined
which shall be issued to Contractor on a regular basis. This plan shall be updated on a
monthly basis. Activities in the 30-day plan, which are not executed, may be carried
over to the next month.
The Contractor is expected to provide input into the Company planning process to
ensure that resources are available according to the work program whilst maximizing
uptime of Contractor’s equipment.
The key criteria involved in the Company planning process are as outlined below.
• IAP (1-year plan): 80% of the activities are identified and proposals for long
lead-time resources prepared with adequate budget cover for all activities.
• 90-day plan: Activities for which resources are available in the 90-day cycle are
included in this plan.
• 30-day plan: Activities for which proposals are approved and resources are
available, are included in this plan.
• 7 day Schedule: Updated on a daily basis, activities for which program is
agreed and issued, all materials and resources are ready, are included in this
plan.
• 48 hour frozen sequence: This can be changed only in case of a well
integrity issue or a deferment.
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• 24 hour frozen sequence: This can only be changed for well integrity reasons to
allow for safe and non-disruptive work execution.
The Contractor has the responsibility to ensure, that optimum resource levels are
maintained based on the above planning process updates and it is the Company’s
responsibility to prioritise jobs according to the criteria listed below to ensure that the
Contractor’s assets are shared optimally between the Asset teams. These criteria shall
be used for prioritising both, unscheduled and planned activities without distinction.
Deferment, gain or loss of revenue attached to the job including waiting on third party
or risk of loss of integrity.
• Time required for executing the activity. Logistics and associated cost.
• Planned execution date.
• Some of the activities will be unplanned and some may be aborted with a
requirement to reschedule activities within the 48 hour frozen sequence.
6.5.2 NOTICE TIMES FOR CALL-OFF

Contractor shall mobilise its Equipment, Materials and Personnel to the Site in
accordance with the requirements of the SAP Purchase Order and the planning and
scheduling process described above. However if mobilisation requirements are not
specified in the Purchase Order, Contractor shall mobilise according to the following
table or as mutually agreed with the Company after Effective Date. The nature and
criticality of certain operations may require Company to instruct Contractor to
immediately organise its resources and respond to unforeseen priorities and Contractor
shall use its best endeavours to respond to said instructions.
Item Notice Times required
Equipment and/or Materials Two (2) Calendar Days (48 hours)
Personnel One (1) Calendar Day (24 hours)
6.6.1 WASTE STORAGE AND SEGREGATION

Contractor shall be responsible for the storage and segregation of all waste materials
and products originating at the well Site. Company shall provide refuse containers for
storage of non-hazardous waste that is of domestic and/or industrial nature such as
waste metal, lubricating oil etc. and shall provide for all necessary inspection and
certification of such refuse containers.
Hazardous chemicals waste that have to be disposed off due to expiry of validity
and/or contamination shall be stored safely by the Contractor at the Site ready for
collection by Company.
In case of unused chemicals left over at the well site and not suitable for storage,
Contractor shall seek approval from Company to dispose off the same and shall be
responsible to transport the same to Company’s designated area for disposal. or any
other disposal point such as another well, a mud pit etc. as decided by the Company
depending on the properties of the chemicals to be disposed.
6.7.1 TRAINING
Training of Company employees
The Contractor shall train Company employees (trainees), as and when instructed by
the Company, in the performance of the Services. Company employees either shall be
a university graduate or shall have, as a minimum, a BTec Diploma or equivalent
certificate and a good command of English; however, they may have only minimal
experience.
The Contractor shall prepare and submit a detailed training programme to the
Company for approval based on the expertise and experience of the trainee,
attendance of formal training courses, classroom and field lessons, regular
assessments, setting of targets and the required level of training. The programme shall
be prepared in conjunction with the Company. All training shall preferably be carried
out in the Negara Brunei Darussalam.
Once the training programme has been approved, the Company will only pay for an
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extension of this programme if (a) the trainee has failed to achieve the required training
level and the Contractor can demonstrate that the training programme has been
diligently followed, or (b) if the Company shall instruct additional training. Any extension
required for reasons other than those detailed above shall be at the cost of the
Contractor.
The Company must approve any extension of the programme, for whatsoever reason,
prior to implementation. The Contractor shall prepare and submit for approval a
supplementary training programme for the extension in the same level of detail as the
main training programme.
The Company shall conduct a test, at regular intervals and on completion of training, to
verify acquired knowledge and expertise.
The Contractor shall be responsible for the satisfactory implementation of the training
programme, including any supplementary programme, and shall monitor the progress
of training and the tailoring of the individual training sessions to match the ability of the
trainee. The Contractor shall, as and when required by the Company, but at least once
a month, prepare and submit a report on each trainee detailing the progress of training,
areas of concern, evidence of competence gained and any proposed adjustment to the
programme.
The Contractor shall note that during training, the Company shall be responsible for the
salary and other benefits of the trainee, safety courses and personal safety equipment.
The Contractor shall provide all messing, accommodation, training materials and
transportation of the trainee during the training programme and all related costs shall
be deemed included in the training charges. Messing and accommodation shall be of a
similar standard to that of the Contractor's own supervisory staff.
During the training programme, and in particular during any field visits and hands-on
experience, and not withstanding anything to the contrary herein, the Contractor shall
remain fully responsible for the performance of the Services, the safety of the
operations and the trainee.
6.8 REPORTING
Contractor shall note that a fundamental requirement of this Contract is the correct and
accurate reporting of data and all activities on the well Site and shall be considered a
fundamental condition for satisfactory completion of the Services.
Contractor shall be required to adopt the highest possible standards of reporting.
Contractor shall prepare and submit the following reports, at such times and in such a
manner and form acceptable to the Company. The preparation and submission of
these reports shall include collection and formatting of data, event logs, calculation of
performance indicators and analysis work.
All reports shall require specific approval of the Company and should be provided in
paper and electronic format compatible with Company software as and when requested
by the Company.
Formats for all reports shall be proposed by Contractor and approved by Company
before award.
6.8.1 Daily Report (DR) and Job Report (JR)

Contractor service engineer should communicate with the Company Site
Representative on a daily basis, prepare and submit daily reports containing summary
of operations with time breakdown of all activities of the past twenty-four (24) hours in a
format and timing acceptable to Company. The DR shall be submitted before 07.00
Hours every morning covering the report of the last twenty-four (24) hours calculated
from 00.00 hours to 24.00 hours. Contractor shall submit the DR to the Company Site
representative for approval and then distribute it to other staff as nominated by the
Company Site representative. The process of daily reporting may be finalised through
mutual agreement prior to Commencement Date.
In addition, the charts of all pressure tests and all other critical tests conducted during
the operations shall be witnessed by the Company Site representative and validated by
the Company operations engineer.
Contractor is expected to attend daily operations meetings at the coast and offshore &
Onshore, as agreed with Company prior to the Commencement Date.
Upon completion of each job, Contractor shall provide Company with a job report/ticket
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(JR) along with job evaluation form, at the field. Such report shall include details
concerning volumes of fluids pumped, pressures recorded, fluid/slurry density, losses
during pumping, coiled tubing report, nitrogen pumping report, stimulation report,
amount of brine pumped, injectivity test, CBL data, invisible and non productive time
and shall be submitted to Company Site Representative as a hard copy and on
computer diskette as a electronic document not later than 24 hours after job
completion. The JR shall be signed by Company and Contractor and shall include the
Purchase Order number and the specific details of the actual items payable to
Contractor in accordance with Section C-5, Schedule of Rates and shall include
observations on performance and quality improvement. The contents, timing of
submission and other details of the JR shall be proposed by Contractor to Company for
approval prior to Commencement Date.
Financial and job reporting shall be done through job tickets submitted at the end of
each job and/or SAP service entries or any other database as determined by the
Company within the Operational Period of the Contract including any extensions.
Contractor shall install and learn to operate the database prior to Commencement
Date. Where personal computers are provided by Contractor, they must be able to
handle Company’s database system
6.8.2 Monthly Service Performance Report (MSPR)

Contractor shall prepare and submit a monthly service performance report (MSPR)
within the first ten (10) days of the following month, which shall be used for discussion
at a monthly Contract Review Meeting with the Company and minuted by the
Contractor to the approval of the Company.
The Contractor shall obtain Company approval to structure, data formatting, analysis
methodology and presentation detail which needs to be in line with Global Supply
Chain Management Format or Big Lever Club Format; the Contractor shall modify the
MSPR as and when directed by the Company. To minimise amendments and delays,
the Contractor shall obtain Company approval as to the structure of reports, data
formatting, analysis methods and presentation details at least 30 days prior to any
submission of the first report.
All reporting shall be in SI units and shall be submitted in both paper and electronic
formats (all electronic data shall be written in Company approved software, such as MS
Word and MS Excel). In addition to the above reports, the Contractor shall prepare
such other reports and calculations on the Services as may be required by the
Company.
The preparation and submission of all reports and calculations, whether in paper or
electronic format, shall be deemed included in the Rates.
The MSPR shall be submitted to the Company no later than 3 days prior monthly
service meeting.
The report shall include as a minimum a review of jobs performed, a summary of
progress on Bruniesation and local community Contractors, training, a summary of non
productive time, failures and lost time together with remedial action taken, or proposed
to be taken, standby and lost time together with reasons and remedies identified,
statistics on any aspect of the Services as directed by the Company, Contractual
issues, equipment certification schedule, financial details for the month, list of
inventory/resources and Personnel with their location, proposed changes in personnel
and any other items as required by the Company. This shall include graphical
representations of key performance indicators to be agreed with the Company prior to
the Commencement Date.
The MSPR shall also contain a summary report on safety consisting of: HSE statistics
including all incidents and accidents, minutes of all safety meetings, details of all
safety training, details of exercises and drills held and all other relevant safety
matters involved under the Contract.
6.8.3 Quarterly and Annual Review Report

A quarterly review of Contract performance and annual review of Contract expenditure
and benchmark performances shall be conducted for which Contractor shall make all
the data available, as and when requested by Company. The key data as mentioned
below shall be formatted as directed by the Company.
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• financial expenditure
• Bruniesation.
• technical review (failure modes, etc.)
• HSE
• analysis and recommendations
6.8.4 Failure and Non Performance report
Contractor shall submit a report to Company on each and every item of Equipment that
fails to perform or function during performance of the Services for whatever reason,
within twenty-four (24) hours of such failure or non-performance. The report shall detail,
as a minimum, cause of failure, consequence on performance of the Services in terms
of non-productive operations time for Company’s other resources e.g. drilling rigs, action
taken to remedy failure and to prevent reoccurrence, the duration of failure, and the cost
of failure. Contractor shall cooperate and provide assistance on any investigation or
audit of such failure called for by Company. A summary of this report will have to be
entered in the Company database. Contractor is also obliged to maintain his own
Database to be used for preventing recurrence of such failures and produce trends per
category of failure for analysis and improvement.
Contractor shall be responsible for maintaining a database system, which records all
activities associated with this Contract. This data shall comprise of all operations
performed by the Contractor and Company’s other Contractors during the execution of
the Services. A gross time shall be recorded for each activity and shall be defined as a
combination of net time, non-productive time (controllable and uncontrollable) and
invisible lost time, each category captured explicitly with proper explanations. In
addition, Contractor shall also record the field specific best time or technical limit, which
shall be used to produce an accurate planned time for executing an activity.
Observations on the quality of the job done are of high importance and should be
recorded.
The summary of all deficiencies for each job and/or activity, which prevented normal
execution of a job and/or caused delay, shall be reported in MSPR
.
6.8.5 Financial Report
Contractor shall make necessary inputs for and entries into, Company’s financial
reporting system, SAP. Primarily, Contractor shall provide the list of Materials to the
Company operations engineer for generating a Purchase Order and Contractor shall
make the necessary Service entries in SAP after completion of the job.
The data entry and reporting process in SAP shall be agreed with the Company prior to
the Commencement Date.
6.8.6 Calibration Reports

All instruments, including gauges, meters and recorders, provided by Contractors under
the Contract shall be recalibrated in accordance with Contractor’s inspection, preventive
maintenance and calibration programme. The calibration tests will be verified by the
Company and details of the test recorded and formally reported to Company. All
instruments shall be calibrated prior to delivery to the Site and calibration data reports
shall be routinely submitted to Company.
6.8.7 SITE FACILITIES

Contractor shall provide suitable office and workshop for its base Facilities to support
the Services. The facility shall not be within BSP concession Land.
The office Facilities would support Contractor’s activities such as reporting, data
management and liaison with Company, its own staff and sub Contractors and for the
performance of Services.
The workshop would comprise of offices, wash bay, test bay, warehouse, lay down area
etc. for storage of machinery, Equipment and components and carrying out inspection,
testing and maintenance.
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Contractor shall also provide a laboratory capable of conducting stimulation and allied
analysis.
6.8.8 RADIO LICENSES AND SATELLITE PHONES

Contractor shall provide licenses and frequency allocation, issued by the appropriate
Ministry of the Government of the Negara Brunei Darussalam, for all communications
Equipment used for the Services including hand held radios. Where radio
communication is not possible (black spots), Contractor shall provide satellite phones or
mobiles, to ensure constant communication with their crew
6.9.1 PROVISIONS BY COMPANY

GENERAL
Company shall provide diesel at its cost, portable water ( if required) and other services
such as Logistic support required to perform its obligations specified below as and when
required by Contractor from the Commencement Date of the Contract unless specified
otherwise.
6.9.2 HANDLING SERVICES

When the Services are being performed while a drilling rig or hoist is operating at the
Site, Company shall provide Contractor with the use of Company's other Contractor's
lifting and handling equipment for the purpose of assisting Contractor to handle its
Equipment and Materials, If is it available.
6.9.3 WATER
Drill/Mix Water
Company shall provide and deliver drill/mix water to the Sites for industrial use excluding
connections to any of Contractor's Equipment. Company does not guarantee the quality
or fitness of any drill/mix water provided by Company. Contractor shall handle the
drill/mix water and verify quantities delivered.
6.9.4 WASTE COLLECTION AND DISPOSAL
Company shall provide a disposal area for domestic and hazardous/toxic wastes.
Contractor shall be responsible for its on-Site handling and temporary storage.
Company shall collect all waste materials and products originating at the Site and shall
be responsible for its transportation and disposal in accordance the Company's Waste
Management Manual as outlined in Section 8. All costs associated with such collection,
transportation and disposal shall be for Company’s account except where the waste
material is the property of the Contractor in which case all such costs as referred above
shall be for Contractor’s account.
6.9.5 AIR TRANSPORTATION

Contractor shall be responsible, at Contractor’s cost for transporting its Personnel
to/from KB wharf, Anduki and Muara port. However, Contractor may for transport of
Personnel and subject to availability and Company approval for ad hoc travel to
company offshore site, utilise Company’s air passenger services. Transport provided by
Contractor shall meet the requirements of Road Transport Specification, as from the
company aviation department.
Names and details of all Contractor Personnel requiring the use of Company's air
passenger service must be forwarded to Company. Company shall confirm reservations.
All reserved flights shall be chargeable at the Rates shown below unless cancelled in
accordance with Company’s procedures.
6.9.6 Offshore Flight “No-Show” Charges
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Offshore Flight No-Show shall mean a person who has reserved a seat on a flight but
does not report for that flight or cancel the reserved seat in accordance with cancellation
procedures. All Offshore Flight No-Shows will be charged at the standard flight charges.
In the event of any disputes in the number of Offshore flight no-shows or special
chartered flights to be back charged in any one month, the monthly statement as issued
by Company’s air transport booking department shall be considered adequate
substantiation for Contractor.
6.9.7 MEDICAL SERVICES
Company shall provide medical services in the Offshore at the main living quarters of
BSP (Champion 7, fairly 4, and within CSS) in accordance with Company's Medical
Conditions of Contract.
6.9.8 TELECOMMUNICATIONS AND MAIL SERVICE

Company shall provide telephone and fax services to contractor at the company office
base offshore(CSS). Company shall, if available and needed, provide the use of
company's phone line.
For Company provided telephone services, Contractor may request telephone lines to
have access to calls within the Brunei, within the Country of Operation, and/or
international direct dialling. Contractor shall reimburse Company for all costs associated
with the provision by Company of telephone or telecommunication services. Telephone
toll charges shall be reimbursed to Company at prevailing rates.
Use of Company databases such as SAP and DIMS, as deemed fit by Company. If
required by Contractor, Company shall provide an induction training course to familiarise
Contractor personnel in using Company’s email system and Contractor’s nominated
staff in using Company’s computerised reporting (DIMS), financial (SAP) and well
planning systems including any other systems as deemed necessary for the
performance of Services.
6.9.9 DATA AND INFORMATION
Company shall provide Contractor with all of the information required to fulfil its
obligations under the Contract including:
operating parameters together with any supporting design information that Company
considers relevant to ensure the safe, efficient and satisfactory performance of the
Services;
relevant data and information required to provide the estimates and recommendations to
Company including access to computer systems that form part of Company's Materials
management process;
written instructions to initiate the Services and all the information necessary to permit
Contractor to efficiently respond to Company's requirements and perform the Services;
regular provision of the "Short Term Drilling Sequence" and the "Well Services Field
Activity Plan", Daily Well Engineering Services Reports, Well Type Descriptions and
other pertinent data and information that is available to use as a guide for estimating the
volume of Contractor’s Service requirements.
6.9.10 E-WCAT FOCAL POINT – OFFICE BASE / NORMAL HOURS

Contractor to provide all data, scope of WORK includes but not limited to the following;
Maintain and support the equipment records are correct and up to date. Assist and
informed relevant party of equipment are due for inspection and work done in timely
manner.
Publish monthly equipment compliance status and report to EWCAT engineer.

Act as a front end help desk for the end user on data entry, system issue, training etc
Ensure noncompliance equipment are correctly deviated in FSR to show compliance
status.

Page 40 of 63
Any other duties as directed by the project / CONTRACT MANAGER and CONTRACT
HOLDER.
6.9.11 SUPERVISORY PERSONNEL

Where deemed necessary, Company shall provide a representative at the Site while
well intervention Services are being performed. At Company's discretion, the Site
representative may be responsible for more than one Site at a time.
PART 3 – TECHNICAL SPECIFICATIONS

ARTICLE 7 – GENERAL
7.1 Contractor's Obligations
7.1.1 CONTRACTOR shall perform the WORK in accordance with COMPANY or its
AFFILIATES, American Petroleum Institute (API), and other international regulations,
standards, specifications, procedures or operations manuals referenced herein.
7.1.2 This Part 3 - Technical Specifications is a generic document covering all services
provided in support of drilling operations and CONTRACTOR should note that only
those technical standards necessary for CONTRACTOR to perform the WORK as
specified in Section 4 – Scope of Work shall be deemed applicable under this Part 3
– Technical Specifications, however, this requirement shall not in any way be applied
to any statutory, regulatory, HSE and/or QA/QC requirement stated herein or
included by reference thereto.
7.1.3 Reference to any COMPANY or its AFFILIATES, API and any other international
regulations, standards, specifications, procedures or operations manuals shall always
be considered as referring to the most recent edition of the publication as of the
CONTRACT EFFECTIVE DATE.
7.2 Quality Requirements
CONTRACTOR shall prepare and submit to COMPANY for approval within seven (7)
days of the CONTRACT EFFECTIVE DATE, a comprehensive quality manual,
programme and plan. CONTRACTOR’S quality system, including its quality manual,
programme and plan, shall be in accordance with the requirements detailed in Article
12. CONTRACTOR shall review and revise its programmes and plans annually.
7.3 Retention and Access
As a minimum, CONTRACTOR shall retain and make available at CONTRACTOR
office(s), workshops and/or working units, copies of all relevant documents
referenced in this Part 3 – Technical Specifications necessary to ensure that all
CONTRACTOR PERSONNEL have access to such standards, specifications and
other information required to ensure that the WORK is performed in accordance with
the CONTRACT.
ARTICLE 8 – APPLICATION OF STANDARDS AND SPECIFICATIONS

8.1 Order of Precedence
8.1.1 CONTRACTOR shall perform the WORK in accordance with the standards,
specifications, and reference documents of COMPANY or its AFFILIATES, API, and
other international standards and specifications and their respective regulations,
procedures and operations manuals. Where appropriate standards and specifications
are not defined, CONTRACTOR shall otherwise use internationally recognised
standards and specifications. Where any ambiguity or contradiction exists between
the standards and specifications, unless explicitly stated otherwise, the following
order of precedence shall prevail:
(i) COMPANY or its AFFILIATES standards, specifications and reference

Page 41 of 63
documents;
(ii) API standards, specifications and reference documents; and
(iii) Other international standards and specifications.
8.2 Company/Affiliates Standards, Specifications and Reference Documents

CONTRACTOR shall perform the WORK in accordance with the CONTRACT and
provide CONTRACTOR ITEMS, CONTRACTOR PERSONNEL, materials, facilities
and other services specified therein as being provided by CONTRACTOR at least in
accordance with the standards of the most recent revisions of the following
documents issued by COMPANY or its AFFILIATES together with such other
manuals as COMPANY may advise CONTRACTOR in writing from time to time:
Reference Title/Description Rev. No. Rev. Date
BSP Guidelines, Standards and Procedures
BSP-ASS-Guideline-006 Lifting Equipment Management Manual Rev. 2.0 Apr-07
BSP-ACT-Guideline-1653 Chemical Management Guidelines Rev 4.0 Sep-06
BSP-TSW-Guideline- Radioactive Fish Abandonment Flowchart Oct-04
2004-10-21
BSP-09-Guideline-014 Offshore Drilling Waste Disposal Principles & Rev. 2.0 Aug-12
Management Guidelines
BSP-12-Guideline-101 Guide to Pipeline Engineering Rev. 4.0 Oct-07
BSP-12-Guideline-103 Pump Selection and Requisitioning Manual Rev. 3.0 Jun-07
BSP-12-Guideline-104 Bolt Torquing Rev. 4.0 Feb-12
BSP-12-Guideline-115 BSP-12-Standard-103 Pressure Testing of Rev. 3.0 Sep-08
Pipework to ASME B31.3
BSP-12-Guideline-116 Manual Pipe Supports (Old Number: BSP-12- Rev. 2.0 Feb-00
Standard-117) [DEP 31.38.01.11-BSP, Aug 1996]
BSP-12-Guideline-406 Local Guideline for Electrical Engineering Rev. 5.1 Feb-12
BSP-12-Guideline-409 Lightning Protection (Old Number: BSP-12- Rev. 4.0 Aug-10
Standards-406)
BSP-14.02-Guideline-001 Secondary Land Transport Management Rev. 2.0 Dec-07
(Execution by Contract Holders)
BSP-14.02-Guideline- Land Transport Guidelines (Generic Process) Rev. 2.0 Dec-07
001.1
BSP-72–Guideline-004 Periodic Inspection and Testing of BSP Owned Rev. 1.0 Dec-98
Equipment
BSP-26-Guidelines-001 Production Chemistry Division Laboratory Quality Rev. 4.8 Aug-11
Manual
BSP-26-Guidelines-1657 Production Chemistry Laboratory Safety (HSE) - Rev. 3.0 Jun-05
Mod. 24
BSP-12-Standard-601 The Welding of Metals Rev. 3.0 Feb-09
BSP-12-Standard-603 Standard for Wire Rope Slings Rev. 2.0 Sep-05
BSP-14.02-Standard-001 Land Transport Vehicle Standard Rev. 7.0 Jun-15
BSP-SAV-Procedure-004 Dangerous Goods Rev. 1.0 Jan-06
BSP-09-Procedure-024 QA/QC in Design, Construct, Modify and Rev. 1.0 Mar-09
Abandon Wells
BSP-13.03-Procedure- Materials Handlings Rev. 3.1 Sep-08
012
BSP-72-Procedure-012 Procedure for Lifting Equipment Examination and Rev. 4.0 Apr-07
Certification (PLIC)
Shell Well Standards and Guidelines
HSSE & SP Control Framework Rev. 1.0 Nov-12
ABC Guide for Braided Line Operations Aug-02
Wellbore Surveying Technical Standard Rev. 1.5 Aug-09
Well Standards Rev. 2.1 Aug-09
Radiation Safety Manual for Well Logging Sep-91
Operation
EP 2002-1500 Pressure Control Manual for Drilling and Rev. 1.0 Mar-11
Workover Operations (Rev. 1.0)
(To be replaced with: WS 38.80.00.18 Pressure
Control for Drilling, Completion and Well
Intervention Operations)

Page 42 of 63
EP 2006-5283 Surface and Subsea Wellhead and Christmas Apr-09

Tree Equipment Global Functional Specification
EP 2006-5393 Temporary Pipework Rev. 5.0 Feb-12
EP 2009-9039 Prevention of Dropped Objects Manual Jul-09
EP 90-3765 Completion / Work-Over Fluid Manual Dec-90
EP 94-0208 Completion Design Perforating Jun-94
EP 94-1300 Guideline for HPHT Well Operations Feb-95
EP 95-0319 Safe Handling of Chemicals Rev. 0 Sep-95

Page 43 of 63
Reference Title/Description Rev. No. Rev. Date

EP 95-1814 Coiled Tubing Operations Nov-95
EP 95-1815 Wireline Operations Nov-95
EP 95-1816 Hydraulic Workover/Snubbing Operations Oct-95
EP 95-1817 Pumping Operations Nov-95
EP 95-1818 Hoisting Operations Nov-95
SR.11.12472 ABC Guide to Wells Management of Change 2011
SR.11.10923 Guideline on the Qualification and Use of GRE Sep-11
Lined Tubing
UP.63.ST.04 Borehole Surveying Manual (EP 2009-1328) Oct-12
Reference Title/Description Rev. Date

DEP 30.10.02.15 Materials for use in H2S-containing environments in oil and gas Feb-12
production (amendments and supplements to ISO 15156:2009)
DEP 30.10.60.18 Welding of metals (amendments/supplements to API RP 582) Feb-12
DEP 31.22.05.11 Gas/liquid separators - Type selection and design rules Feb-12
DEP 31.22.05.12 Liquid/liquid and gas/liquid/liquid separators - Type selection and design Feb-12
rules
DEP 31.22.10.32 Pressure vessels; amendments/supplements to PD 5500 Feb-12
DEP 31.22.20.31 Pressure vessels (based on ASME Section VIII) Feb-12
DEP 31.29.02.11 Pumps - Selection, testing and installation Sep-12
DEP 31.29.02.30 Centrifugal pumps (amendments/supplements to ISO 13709) Feb-11
DEP 31.29.12.30 Reciprocating positive displacement pumps and metering pumps Dec-99
(amendments/supplements to API 674 and API 675)
DEP 31.29.22.11 Positive displacement pumps - Rotary (amendments/supplements to Feb-12
API 676)
DEP 31.29.80.30 Diesel engines Dec-00
DEP 31.38.60.10 Hot-tapping on pipelines, piping and equipment Feb-11
DEP 31.40.10.10 Riser design Feb-11
DEP 32.01.23.17 Process control domain - Security requirements for suppliers Feb-11
DEP 32.29.20.10 Safeguarding and instrumented protective functions for rotating Feb-11
equipment
DEP 32.30.20.11 Fire, gas and smoke detection systems Sep-11
DEP 33.64.10.10 Electrical engineering design Feb-11
DEP 33.64.10.12 Electrical supply and generation - Design and operation Sep-11
DEP 33.64.10.17 Application of protective functions for electrical systems Sep-11
DEP 33.64.10.32 Electrical network monitoring and control system for industrial networks Sep-11
DEP 33.64.10.33 Electromagnetic compatibility (EMC) Sep-12
DEP 33.65.11.31 Synchronous AC machines (amendments/supplements to IEC 60034-1 Feb-12
and IEC 60034-14)
DEP 33.65.11.32 Packaged unit AC generator sets Apr-03
DEP 33.65.40.31 Power transformers (amendments/supplements to IEC 60076-1 and IEC Sep-11
60076-11)
DEP 33.65.50.31 Static DC uninterruptible power supply (DC UPS) units Feb-11
DEP 33.65.50.32 Static A.C. uninterruptible power supply unit (static A.C. UPS unit) Feb-11
DEP 33.66.05.31 Electrical machines - Cage-induction types (amendments/supplements Feb-12
to IEC 60034-1 and IEC 60034-14)
DEP 33.66.05.33 A.C. electrical variable speed drive systems Feb-12
DEP 33.67.01.31 Low voltage switchgear and control gear assemblies Feb-11
(amendments/supplements to IEC 61439)
DEP 33.67.51.31 High-voltage switchgear and control gear assemblies for rated voltages Feb-12
between 1 kV and 52 kV (amendments/supplements to IEC 62271-200)
DEP 33.68.30.32 Electrical trace heating Sep-10
DEP 33.68.30.33 Electrical process heaters Nov-06
DEP 34.17.10.31 Laboratories Sep-12
DEP 37.81.40.31 Welding of deepwater pipelines, flow lines and steel catenary risers Feb-11
(amendments and supplements to API 1104)
DEP 37.81.40.41 Hyperbaric welding of pipelines (amendments/supplements to ISO Feb-11

Page 44 of 63
Reference Title/Description Rev. Date

13847)
DEP 61.40.20.30 Welding of pipelines and related facilities (amendments/supplements to Feb-11
ISO 13847:2000)
DEP 61.40.20.31 Field welding of duplex and super duplex stainless steel pipelines Feb-11
(amendments/supplements to API 1104)
DEP 61.40.20.36 Welding of CRA-clad or CRA-lined pipe materials Feb-12
(amendments/supplements to API 1104:20th edition)
DEP 63.10.08.11 Field commissioning and maintenance of electrical installations and Sep-11
equipment
DEP 70.08.10.11 Mechanical maintenance equipment and tools Sep-11
DEP 70.08.10.13 Electrical workshop - Test equipment and tools Aug-05
DEP 70.10.70.11 Preservation of new and old equipment standing idle Feb-11
DEP 70.10.90.11 Spare parts Feb-12
DEP 74.00.10.10 Shop and field pressure testing of piping systems Feb-12
DEP 80.00.10.10 Area Classification (DEM 1) Recommended for Jack-ups / Platform rigs Feb-11
/ Tender Assist rigs:
(applicability of Energy Institute Code EI IP-MCSP-P15 previous IP-15
Model Code of Safe Practice in the Petroleum Industry)
DEP 80.00.10.13 Area classification and electrical equipment spacing for North American Feb-11
application (DEM 1) Recommended for Floaters / Land rigs
(applicability of API Recommended Practice 500, Recommended
Practice for Classification of Locations for Electrical Installations at
Petroleum Facilities Classified as Class I, Division 1 and Division 2,2nd
Edition, November 1997)
(applicability of API Recommended Practice 505, Recommended
Practice for Classification of Locations for Electrical Installations at
Petroleum Facilities Classified as Class I, Zone O, Zone 1, and Zone 2,
1st Edition, November 1997)
DEP 80.36.00.30 Relief devices - Selection, sizing and specification Feb-12
DEP 80.45.10.10 Design of pressure relief, flare and vent systems Feb-12
DEP 80.46.30.11 Interlocking systems for pressure relief valves Feb-11
DEP 80.47.10.32 Fire-fighting agents and portable/mobile fire fighting equipment for Sep-11
onshore applications
DEP 80.64.10.10 Electrical safety rules Feb-11
Project / Area Contract Holder shall insert here all other relevant Shell Standards and
Specifications as per specific work area / situation.
8.3 American Petroleum Institute (API) Standards

8.3.1 CONTRACTOR shall perform the WORK in accordance with the CONTRACT and
provide CONTRACTOR ITEMS, CONTRACTOR PERSONNEL, materials, facilities and
other services specified therein as being provided by CONTRACTOR, in accordance
with the most recent revisions of the minimum standards, specifications, codes,
regulations and practices detailed in the following API standards, specifications and
reference documents.
Reference Specification/Description
API Specification
API Spec 2C Offshore Pedestal-mounted Cranes
API Spec 4F Specification for Drilling and Well Servicing Structures
API Spec 4G Recommended Practice for Use and Procedures for Inspection, Maintenance, and
Repair of Drilling and Well Servicing Structures
API Spec 5CT Specification for Casing and Tubing
API Spec 5ST Specification for Coiled Tubing - U.S. Customary and SI Units
API Spec 5L Specification for Line Pipe - Incorporating Errata: January 2009, Addendum 1:
February 2009, Addendum 2: April 2010; Addendum 3: July 2011 Effective Date:
January 1, 2012; ISO 3183:2007 Adoption
API Spec 6A Specification for Wellhead and Christmas Tree Equipment - Twentieth Edition;
Incorporating ERRATA 1: JANUARY 2011, ERRATA 2: NOVEMBER 2011,
ADDENDUM 1: NOVEMBER 2011, ADDENDUM 2: November 2012; ISO

Page 45 of 63
10423:2009 Adoption- ADDENDUM 1: November 2011 is Annex O replacement
API Spec 7-1 Specification for Rotary Drill Stem Elements
API Spec 7-2 ADD Specification for Rotary Drill Stem Elements
3
API Spec 7F Specification for Oilfield Chain and Sprockets
API Spec 7K Specification for Drilling & Well Servicing Equipment
API Spec 7B-11C Specification For Internal-Combustion Reciprocating Engines For Oil Field Service
API Spec 8A ADD Specification for Drilling and Production Hoisting Equipment
1
API Spec 8C Specification for Drilling and Production Hoisting Equipment (PSL 1 and PSL 2)-ISO
13535:2000/ ISO 13535 Adoption; Addendum 1: 5/2004; Addendum 2: 04/15/2005;
API Spec 9A Specification for Wire Rope- ANSI/API SPEC 9A/ISO 10425:2003/ISO 10425
Adoption
API Spec 10A Specification for Cements and Materials for Well Cementing
API Spec 11V1 Specification for Gas Lift Equipment
API Spec 11B Specification for Sucker Rods, Polished Rods and Liners, Couplings, Sinker Bars,
Polished Rod Clamps, Stuffing Boxes, and Pumping Tees - Incorporating Errata 1:
October 2010; Errata 2: February 2011
API Spec 11E Specification for Pumping Units - Incorporates Errata 1: March, 2009; Errata 2: July
2009
API Spec 16A Specification for Drill-Through Equipment-ISO 13533:2001/ISO 13533 Adoption;
Errata: 11/2004
API Spec 16C Specification for Choke and Kill Systems
API Spec 16D Specification for Control Systems for Drilling Well Control Equipment and Control
Systems for Diverter Equipment
API Spec 16RCD Specification for Drill Through Equipment Rotating Control Devices
API Spec 17D Design and Operation of Subsea Production Systems-Subsea Wellhead and Tree
Equipment - Second Edition; Incorporating Errata: September 2011; ISO 13628-4
Adoption; Effective February 1, 2013 [for Valve and Actuator Design Validation
(Test Requirements) Only]
API Recommended Practices
API RP 5C7 Recommended Practice for Coiled Tubing Operations in Oil and Gas Well Services
API RP 7C-11F Recommended Practice for Installation, Maintenance, and Operation of Internal-
Combustion Engines
API RP 7C Recommended Practice for Installation, Maintenance, and Operation of Internal-
Combustion Engines
API RP7 G-2 Recommended Practice for Inspection and Classification of Used Drill Stem
Elements - Incorporating Errata 1: October 2009
API RP 7G Recommended Practice for Drill Stem Design and Operating Limits-Errata May
2000; Addendum 1: November 2003; Addendum 2: September 2009
API RP 7L Procedures for Inspection, Maintenance, Repair, and Remanufacture of Drilling
Equipment - Includes Addendum 1: 02/2006; Addendum 2: 3/2006
API RP 8B Recommended Practice for Procedures for Inspections Maintenance Repair and
Remanufacture of Hoisting Equipment- ISO 13534 Adoption; Addendum: 11/2003;
Addendum 2: 4/2005
API RP 9B Recommended Practice on Application Care and Use of Wire Rope for Oil Field
Service
API RP 10B-3 Recommended Practice on Testing of Deepwater Well Cement Formulations
API RP 10B-4 Recommended Practice on Preparation and Testing of Foamed Cement Slurries at
Atmospheric Pressure
API RP 10B-5 Recommended Practice on Determination of Shrinkage and Expansion of Well
Cement Formulations at Atmospheric Pressure
API RP 10D-2 Recommended Practice for Centralizer Placement and Stop Collar Testing - ISO
10427-2:2004 Adoption
API RP 10F Recommended Practice for Performance Testing of Cementing Float Equipment -
ISO 10427-3: 2003 Adoption
API RP 11 V2 Gas-lift Valve Performance Testing
API RP 11 V6 Recommended Practice for Design of Continuous Flow Gas Lift Installations Using

Page 46 of 63
Injection Pressure Operated Valves
API RP 11 V7 Recommended Practice for Repair, Testing, and Setting Gas Lift Valves
API RP 11 V8 Recommended Practice for Gas Lift System Design and Performance Prediction
API RP 13C Recommended Practice on Drilling Fluids Processing Systems Evaluation - ISO
13501 Adoption
API RP 14F Design, Installation, and Maintenance of Electrical Systems for Fixed and Floating
Offshore Petroleum Facilities for Unclassified and Class 1, Division 1 and Division 2
Locations
API RP 16Q Recommended Practice for Design Selection Operation and Maintenance of Marine
Drilling Riser Systems-Formerly RP 2Q and RP 2K
API RP 16ST Coiled Tubing Well Control Equipment Systems
API RP 31A Standard Form for Hardcopy Presentation of Downhole Well Log Data
API RP 49 Recommended Practice for Drilling and Well Servicing Operations Involving
Hydrogen Sulfide
API RP 54 Recommended Practice for Occupational Safety for Oil and Gas Well Drilling and
Servicing Operations
API RP 59 Recommended Practices For Well Control Operations
API RP 64 Recommended Practices for Diverter Systems Equipment and Operations
API RP 67 Recommended Practices for Oilfield Explosives Safety
API RP 500 Recommended Practice for Classification of Locations for Electrical Installations at
Petroleum Facilities Classified as Class I, Division 1 and Division 2 - Errata
10/17/1998
API RP 505 Recommended Practice for Classification of Locations for Electrical Installations at
Petroleum Facilities Classified as Class I, Zone 0, Zone 1, and Zone 2 - Errata
8/17/98
API RP 572 Inspection Practices for Pressure Vessels
API RP 576 Inspection of Pressure-Relieving Devices
API Standards
API STD 53 Blowout Prevention Equipment Systems for Drilling Wells
API Codes
API 510 Pressure Vessel Inspection Code: In-Service Inspection, Rating, Repair, and
Alteration
API 570 Piping Inspection Code: In-service Inspection, Rating, Repair, and Alteration of
Piping Systems
API Bulletin
API BULL E2 Bulletin on Management of Naturally Occurring Radioactive Materials (NORM) in Oil
& Gas Production
Project / Area Contract Holder shall insert here all other relevant API’s as per specific work area /
Specific Specs situation.
8.4 Other International Standards and Specifications

8.4.1 CONTRACTOR shall perform the WORK in accordance with the CONTRACT and
provide CONTRACTOR ITEMS, CONTRACTOR PERSONNEL, materials, facilities
and other services specified as being provided by CONTRACTOR therein in
accordance with the most recent revisions of minimum standards, specifications,
codes, regulations and practices detailed in the following standards:
Reference Specification Description
ISO 6385 Ergonomic principles in the design of work systems
ISO 9001:2008 CORR Quality Management Systems - Requirements, Technical Corrigendum 1
1
ISO 9001:2008 Quality Management Systems - Requirements
ISO 9004 Managing for the sustained success of an organization — A quality
management approach
ISO 10417 Petroleum and Natural Gas Industries - Subsurface Safety Petroleum and
natural gas industries Subsurface safety valve systems Design, installation,
operation and redress
ISO 10418 Petroleum and natural gas industries Offshore production installations Basic
surface process safety systems
ISO 10423 Petroleum and Natural Gas Industries - Drilling and Production Equipment -

Page 47 of 63
Reference Specification Description

Wellhead and Christmas Tree Equipment
ISO 10432 Petroleum and Natural Gas Industries - Downhole Equipment - Subsurface
Safety Valve Equipment
ISO 11960 Petroleum and natural gas industries — Steel pipes for use as casing or tubing
for wells
ISO 13500 Petroleum and natural gas industries — Drilling fluid materials — Specifications
and tests
Inspection, Maintenance, Repair and Remanufacture of Hoisting Equipment -
First Edition /Cobranded with API RP 8B
Hoisting Equipment - First Edition/ Cobranded with API SPEC 8C
ISO 13880 Petroleum and Natural Gas Industries - Content and Drafting of a Technical
Specification
ISO 13625 Petroleum and natural gas industries Drilling and production equipment Marine
drilling riser couplings - First Edition; Corrected Version: 06/15/2003
ISO 13626 Petroleum and natural gas industries Drilling and production equipment Drilling
and well-servicing structures
ISO 14310 Petroleum and natural gas industries — Downhole equipment — Packers and
bridge plugs
ISO 14693 Petroleum and natural gas industries Drilling and well-servicing equipment
ISO/IEC 17000 Conformity Assessment Vocabulary and General Principles
ISO/TR 10400 Petroleum and natural gas industries — Equations and calculations for the
properties of casing, tubing, drill pipe and line pipe used as casing or tubing.
ISO/TR 14685 Hydrometric determinations — Geophysical logging of boreholes for
hydrogeological purposes — Considerations and guidelines for making
measurements
ISO/TS 29001 Petroleum, petrochemical and natural gas industries — Sector-specific quality
management systems — Requirements for product and service supply
organizations
NACE MR0175 Petroleum and natural gas industries — Materials for use in
H2S-containing environments in oil and gas production —Part 3: Cracking-
resistant CRAs (corrosion-resistant alloys) and other
OGP Report No. 376 Lifting & hoisting safety recommended practice.
IP Model Code of Safe Area Classification Code for Installations Handling Flammable Fluids
Practice Part 15
NS-1 NS-1 Standard Inspection and Quality Requirements
NS-2 NS-2 Drillstring Inspection Standard Edition 1
Project / Area Specific Contract Holder shall insert here all other relevant Shell DEP’s, International
Specs Standards (ISO’s), Local Standards and Specifications, etc. as per specific work
area / situation.
:
ARTICLE 9 – QUALITY MANAGEMENT

9.1 Quality System
9.1.1 CONTRACTOR warrants that a quality system has been established, documented,
and implemented as provided for herein. The quality system shall include a quality
manual, programme and plan as generally detailed in Articles 9.2 through 9.6.
9.1.2 The quality system shall detail the organisation structure, responsibilities,
accountability, activities, processes, and resources which together provide organised
procedures and methods of implementing a quality system that ensures that the
WORK conforms to the requirements of the CONTRACT. The system shall be
structured to be able to establish meaningful performance indicators, measure
performance, identify areas of non-conformance, provide feedback on non-
conformance and initiate action necessary to avoid subsequent repetition.
9.1.3 COMPANY’s preferred standard is ISO 9001 – 2008 Quality Management Systems –
Requirements (for this application the word 'product' is replaced by 'service') and
preferably to ISO/TS 29001 Petroleum, Petrochemical and Natural Gas Industries –
Sector-Specific Quality Management Systems – Requirements for Product and

Page 48 of 63
Service Supply Organisations, however, the implementation of ISO 9001 – 2008 is

not mandatory and alternative quality systems are permissible.
9.1.4 CONTRACTOR’s quality system shall be accessible at the WORKSITE, either
electronically or as controlled hard copies.
9.2 Quality System Elements
9.2.1 As a minimum, the elements which are to be addressed in CONTRACTOR’S quality
system are as follows:
(a) Management and organisation structure and the process that ensures sufficient
CONTRACTOR PERSONNEL to efficiently perform the WORK.
(b) Process that ensures CONTRACTOR PERSONNEL have the qualifications and
training essential to ensure compliance with CONTRACT requirements.
(c) Procedures that ensure the identification of CONTRACTOR ITEMS and materials
requirements that ensure efficient utilisation of the resources required to respond
to COMPANY’s requirements.
(d) Process for operations planning. Particularly in the areas of mobilisation,
demobilisation, logistics, transportation of CONTRACTOR ITEMS and materials
and adherence to COMPANY provided programmes.
(e) Process to plan and monitor adherence to COMPANY and CONTRACTOR
procedures, instructions and drawings.
(f) Procedures for control of documentation related to and required by the
CONTRACT.
(g) Process for implementing design and change control with respect to COMPANY
specifications.
(h) Procurement control and materials management procedures with respect to
CONTRACTOR ITEMS and materials required for the performance of the
CONTRACT.
(i) Processes that ensure that SUBCONTRACTORS are aware of, and comply with,
COMPANY directives, standards and specifications.
(j) Procedures for handling, storage and shipping of CONTRACTOR ITEMS and
materials.
(k) Process for managing COMPANY’S inspection, testing and calibration
requirements.
(l) Process for ensuring the compilation and provision of reports, documents, test
charts, procedures, etc. as required in the CONTRACT.
(m) Process for the identification of areas of high operational risk inclusive of HSE
related issues and the development of procedures for management of such risk.
(n) Process for identifying operational non-conformance and implementing and
corrective action.
(o) Process for ensuring the continued quality of CONTRACTOR ITEMS and
materials through a preventative maintenance, testing and calibration system.
(p) Performance indicators utilised and the methodology employed to manage the
quality system including a list of the quality records and audits that are
maintained to produce pertinent performance data.
9.3 Quality Manual
CONTRACTOR shall provide a quality manual which shall specify CONTRACTOR’s
general quality policies, procedures and practices including CONTRACTOR’s quality
mission, vision and objectives. CONTRACTOR’s quality manual shall demonstrate
the process by which CONTRACTOR ensures that this mission, vision and objectives
is understood, implemented and maintained at all levels in the organisation.
9.4 Quality Programme

Page 49 of 63
CONTRACTOR shall provide a quality programme, within seven (7) days of the
CONTRACT EFFECTIVE DATE, which shall be a documented set of activities,
resources and events serving to implement CONTRACTOR’s quality system.
9.5 Quality Plan
9.5.1 CONTRACTOR shall provide a quality plan that is derived from the quality
programme, detailing the specific quality practices, resources and activities relevant
to the CONTRACT. In addition to the minimum requirements specified in Article 6.2
herein, CONTRACTOR’s quality plan shall include specific plans for each of
CONTRACTOR ITEMS specified in Section 4 – Scope of Work that shall include
comprehensive details of the following:
(a) Quality requirements including details of testing, inspection and calibration
required for CONTRACTOR ITEMS prior to being utilised in the performance of
the WORK.
(b) Quality requirements for ongoing testing, inspection and calibration for
CONTRACTOR ITEMS required to fulfil CONTRACTOR’S obligations with
respect to COMPANY’s drilling equipment inspection manual.
(c) Inspection, preventative maintenance and calibration programme that includes all
relevant CONTRACTOR ITEMS.
(d) Performance monitoring for each of CONTRACTOR ITEMS including
performance indicators for quality performance, data measured, method of
gathering and analysing data, and corrective actions taken in the event of non-
conformance to benchmarks.
9.5.2 Quality Plan Revisions
(a) CONTRACTOR shall review their quality management plan annually to ensure it
remains fit for purpose. The management review shall include information on:
− Results of audits
− Customer feedback
− Process performance and product conformity
− Status of preventive and corrective actions
− Follow up actions from previous management reviews
− Changes that could affect the quality management system
− Recommendations for improvement
(b) All revisions to the quality plan(s) shall be accepted by COMPANY and
CONTRACTOR prior to implementation. All quality plan(s) revisions shall be
incorporated into the CONTRACT via VARIATION TO CONTRACT.
9.5.3 Pre-Well/Post-Well Meetings

(a) A “Pre-Well Meeting” shall be scheduled and held between COMPANY and
CONTRACTOR to review the service provision plans, quality plan(s), and to
review any outstanding issues and acceptance prior to commencement of each
service job. A “Post-Well Meeting” shall be scheduled and held to review the
results of post-well service analysis and any reports requested by COMPANY.
9.6 STANDARD OPERATING PROCEDURES (SOPS)
9.6.1 As an integral part of the QMS, CONTRACTOR shall maintain and implement
standard operating procedures (i.e., quality system procedures, service provision
procedures, work instructions, etc.) in accordance with ISO TS 29001 requirements
to execute the requirements of the CONTRACT. In addition to addressing any drilling
and well intervention services procedures and operations, SOPs shall be developed
and maintained that include provisions for the activities listed below.

Page 50 of 63
9.6.2 CONTRACTOR’s SUBCONTRACTOR (vendor) control requirements shall be

addressed in SOPs that require all SUBCONTRACTORs to have been approved per
the CONTRACTOR’s quality system requirements. If SUBCONTRACTORs are
assessed/audited, a copy of the latest quality system assessment report for each
SUBCONTRACTOR with a list of all findings, corrective action(s), and supporting
closure documentation shall be available for COMPANY’s review at any time prior to
and/or during the term of the CONTRACT.
9.6.3 Special Processes: Special processes such as non-destructive examination (NDE),
etc shall be supported by qualified procedures and identified in the quality plan with
reference to the applicable supporting procedure(s). Records of the qualification of
special processes, procedures, equipment, and personnel shall be documented,
maintained and available for COMPANY's review upon request.
9.6.4 Handling, storage, packing, preservation, transportation and delivery requirements
shall be addressed in appropriate SOPs.
9.6.5 Calibration: Equipment calibration/verification testing operations requirements shall
be addressed in SOPs that require each piece of inspection, measuring and test
equipment (IMTE) to undergo regularly scheduled calibration and/or validation
testing. CONTRACTOR shall provide a schedule of IMTE calibration/verification to
COMPANY upon request.
9.6.6 Document and Data Control: CONTRACTOR shall maintain and implement
"document control" procedures to control all documents and data that relate to the
requirements of the CONTRACT. All documents and data shall be available for
review and/or assessment by the COMPANY.
9.6.7 Training: CONTRACTOR shall maintain and implement "training" procedures to
identify training needs and to provide training and competency requirements for
personnel who perform activities addressed in the quality management system. The
training requirements shall provide for quality management system training and for
job training of personnel.
9.7 Preventative Maintenance, Inspection, Testing and Calibration Programme
9.7.1 CONTRACTOR shall develop, maintain/implement and submit for COMPANY
acceptance a "Preventive Maintenance, Inspection, Testing and Calibration Program"
(PMITCP) for all CONTRACTOR ITEMS provided in conjunction with providing the
required service to COMPANY. The program shall be documented in SOPs that
address the inspection, maintenance, repair, make-up, and testing of all service tools
and equipment to be used.
9.7.2 The SOPs shall address the process for performing each of these activities, the
acceptance criteria for each inspection and test, and shall include checklists
completed by CONTRACTOR and endorsed by COMPANY REPRESENTATIVE
(when required), attesting all required activities were performed.
9.7.3 The minimum requirements for the PMITCP shall include:
(a) Documented periodic maintenance, inspection, and testing requirements for all
equipment/service tools (including SUBCONTRACTOR's equipment) based on
risk, system reliability, experience, regulatory requirements, industry
recommended practices, relevant industry codes and standards (API, ISO, IADC,
ASME, ASNT, etc.), and OEM guidelines/recommendations.
(b) Records and checklists generated that document the equipment's full history
including each maintenance, inspection and test activity.
(c) Elastomer/gasket replacement/redress procedures that contain requirements for
the destruction and disposal of used elastomers and gaskets.
(d) Equipment PMITCP maintenance, inspection and test records are required for
CONTRACTOR ITEMS as well as any CONTRACTOR's SUBCONTRACTOR's
equipment that is to be used for service(s) provided to COMPANY.

Page 51 of 63
(e) An inventory list of all required spare components required for periodic
equipment maintenance (including backup tools) and repair that includes redress
kits, etc., shall be made available to COMPANY by CONTRACTOR upon request
by COMPANY
9.74 Pursuant to Article 9.6, CONTRACTOR shall have preventative maintenance,
inspection, testing and calibration programme which ensures that all relevant
CONTRACTOR ITEMS provided are inspected, maintained and calibrated in
accordance with the requirements for each CONTRACTOR ITEM. CONTRACTOR
programme shall incorporate the requirements of Articles 9.6.5 and 9.6.7.
CONTRACTOR shall demonstrate that Vendor based maintenance and remote
monitoring support is in place for critical CONTRACTOR ITEMS.
9.7.5 CONTRACTOR shall ensure that all down hole CONTRACTOR ITEMS and its
associated handling equipment used in performance of the WORK including but not
limited to swivels, kellies, kelly cocks, saver subs, drill pipe, substitutes, drill collars,
stabilisers and tools are inspected as provided for in Article 0.6.
9.7.6 CONTRACTOR shall ensure that all OF CONTRACTOR’s down hole tools and
handling tools in use shall be inspected twice a year. If frequent failure occurs,
inspection shall be carried out more often, at CONTRACTOR’s expense, by
COMPANY recognised inspection company. Such inspection shall include
electromagnetic inspection, including end area, plastic lining inspection and thread
visual, profile gauge and magnetic particle inspection. CONTRACTOR shall have
certificates of inspections ready for auditing by COMPANY REPRESENTATIVE at
the WORKSITE.
9.7.7 All certification and inspection documentation, including manufacturer's certification,
design and material specification certification, shall be made available to COMPANY
at the CONTRACT EFFECTIVE DATE. Subsequent re-certification documentation
and inspection reports shall be made available within two (2) weeks of such
documents being issued.
9.7.8 All relevant manufacture and inspections certificates shall be provided by
CONTRACTOR as and when requested by COMPANY. All certificates and records
shall be assessed by CONTRACTOR for correctness and completeness before
submitting to COMPANY, (conformity assessment according to ISO/IEC-17000
Conformity Assessment Vocabulary and General Principles). CONTRACTOR shall
keep and maintain full history files of all items supplied to COMPANY.
9.7.9 Under no circumstances shall CONTRACTOR ITEMS be provided or used in the
performance of the WORK for which the manufacturer's certification, design and
material specification certification are absent or expired.
9.7.10 Only CONTRACTOR ITEMS with valid test and/or inspection certificates may be
used for the execution of the WORK.
9.7.11 All instruments, including gauges, meters and recorders, provided by CONTRACTOR
under the CONTRACT shall be recalibrated in accordance with CONTRACTOR
inspection, preventative maintenance and calibration programme. The calibration
tests will be verified by COMPANY and details of the test recorded. All instruments
shall be calibrated prior to delivery to the WORKSITE whenever practicable.
9.7.12 COMPANY reserves the right to audit CONTRACTOR quality system (quality
manual, programme and plan) at the CONTRACT EFFECTIVE DATE and regularly
thereafter to confirm that CONTRACTOR obligations regarding quality are being
implemented and continuously improved.
9.7.13 All CONTRACTOR ITEMS that experience stress in service (e.g. winches, chains,
pulleys etc) shall be included in the test and inspection programme.
9.7.14 All air operated CONTRACTOR ITEMS shall be supplied complete with air hose,
rated to a minimum working pressure of one-hundred-and-fifty (150) psi and
incorporates safety restraining devices on each connection.

Page 52 of 63
9.7.15 CONTRACTOR agrees that the tests and inspections referred to are to be carried out
with no additional expense to COMPANY.
9.7.16 All data from the tests and inspections shall be recorded by CONTRACTOR and
countersigned by COMPANY or COMPANY’s designated representative.
9.7.17 All tests and inspections may be witnessed by COMPANY REPRESENTATIVE.
Adequate notice of all tests and inspections must be given in writing to COMPANY.
9.7.18 All electrical CONTRACTOR ITEMS shall have valid certificates from a COMPANY
approved THIRD PARTY certifying authority to demonstrate that such
CONTRACTOR ITEMS can be used in the area of application (Zone 1 or 2).
9.7.19 Lifting equipment and air receivers and steam vessels or boilers provided by the
CONTRACTOR shall be certified by a COMPANY approved THIRD PARTY
surveyor. CONTRACTOR shall produce the current original certificate of
examination for verification by COMPANY.
9.7.20 COMPANY shall only accept certification of lifting equipment and air receivers and
steam vessels or boilers from COMPANY approved THIRD PARTY certification
authorities based in the COUNTRY OF OPERATION.
9.7.21 Inspection and certification of air receivers and steam vessels or boilers shall comply
with the relevant COMPANY inspection and certification procedures.
9.7.22 Inspection and certification of lifting equipment shall comply with COMPANY’s
“Procedures for In-service Inspection and Certification of Lifting Equipment Owned
and Operated by COMPANY and its CONTRACTORS” (the PLI).
9.7.23 All drilling tools and equipment provided by the CONTRACTOR to COMPANY shall
be manufactured at NS-1 Standards and inspected and maintained at NS-2
Standards.
9.7.24 Pressure gauges will be tested against a calibrated master gauge. In the case of the
continuous readout density meter a calibration test utilising either fresh or salt water
will be run prior to every operation.
9.8 INSPECTIONS/ASSESSMENTS
9.8.1 COMPANY reserves the right to witness pre-job/pre-well preparations, maintenance,
and quality inspections of CONTRACTOR’s service equipment and systems
throughout the term of the CONTRACT. Inspections may be performed or witnessed
to verify service equipment/tools and systems are suitable to perform the required
services and to verify continued satisfactory implementation of periodic equipment
maintenance and certification procedures (as applicable).
9.8.2 COMPANY reserves the right to perform quality management system assessments
of CONTRACTOR’s quality management system at any and all CONTRACTOR's
locations performing work in support of the CONTRACT prior to and throughout the
term of the CONTRACT. Assessments may be performed to verify continued
satisfactory implementation of CONTRACTOR’s quality management system,
compliance with the CONTRACT and compliance with the quality plan(s).
COMPANY will provide reasonable notice (minimum of forty-eight (48) hours), to
CONTRACTOR prior to such assessments and/or inspections noted above.
COMPANY REPRESENTATIVE shall be provided reasonable unrestricted access to
all personnel, facilities, materials, equipment, and documentation relating to the
CONTRACT. CONTRACTOR's proprietary information will be protected via
confidentiality agreements with COMPANY and COMPANY REPRESENTATIVEs, if
required.
9.8.3 COMPANY shall have the right to carry out audits or appoint an independent third
party auditor to carry out audits on CONTRACTOR’s quality management system
and its procedures.

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9.8.4 CONTRACTOR shall develop and execute an internal audit plan for the verification of
the quality compliance of services, work and/or services, work and/or equipment,
material supply under the contract .
9.9 IDENTIFICATION AND TRACEABILITY
CONTRACTOR shall ensure that traceability is maintained on all equipment and
material during OEM manufacturing of all "new" equipment and tools used to produce
equipment that becomes either a load bearing or stressed member of the tool.
Traceability shall be maintained to the original "heat" of steel used to produce the
tools/equipment and the associated certified material test report(s) (CMTR) providing
acceptable test results for mechanical and chemical testing performed on the
material. CONTRACTOR shall also ensure traceability is maintained for all
equipment components, housings, subs, etc., during strip down and rebuilding and at
all stages while in service during the entire duration of the CONTRACT.
9.10 TOOLS/EQUIPMENT IDENTIFICATION AND SERIALIZATION
All tools and equipment shall be uniquely identified/serialized via permanent metal
stamping or vibro-etched to provide traceability to the OEM-supplied
CMTRs/equipment data book and/or to CONTRACTOR's repair, maintenance,
inspection and calibration records, as required. Identification/serialization shall be
placed in an area to minimize degradation, wear and/or obliteration of the serial
number due to use down hole.
ARTICLE 10 – EQUIPMENT REQUIREMENTS

10.1 GENERAL
CONTRACTOR shall be solely responsible for the coordination, procurement,
performance, maintenance and quality (QA/QC) of all equipment. CONTRACTOR
shall ensure all materials, equipment and consumables meet the anticipated down
hole conditions specified by COMPANY, including but not limited to pressure,
temperature, axial loads, mud type, solids content, base oil type, etc.
10.2 EQUIPMENT COMPATIBILITY/QUALIFICATION
10.2.1 CONTRACTOR shall ensure all equipment is compatible with the drilling
CONTRACTOR's drill string sizes and connections to minimize crossovers.
CONTRACTOR shall provide, at CONTRACOR’s cost, all required crossovers as and
when necessary. COMPANY will provide drill string specifications and connection
sizes as soon as practical.
10.2.2 CONTRACTOR shall demonstrate the fitness for purpose of all equipment and/or
materials proposed to be used for all service operations through appropriate
certification and/or testing. Appropriate documentation of the required certification
and/or testing shall be supplied to the COMPANY in the "Pre-job Preparation and
Inspection Data Book" (see Section 14.5).
10.2.3 CONTRACTOR shall conduct all performance qualification tests for specialized
services at the CONTRACTOR’s location prior to the first service operation and
following any modifications to the specifications agreed to by COMPANY and
CONTRACTOR.
10.3 Equipment Readiness
10.3.1 Service equipment shall be capable of functioning to full capacity at all times based
on regular periodic maintenance, inspection and prompt correction of equipment
problems. CONTRACTOR shall provide (at CONTRACTOR’s expense), sufficient
spare parts, backup equipment, materials and consumables that are 100%
operational at all times at the Work Site (Rig).
10.3.2 All CONTRACTOR ITEMS allocated or designated for the WORK to be performed for
COMPANY shall be maintained in a fully functioning condition at all times. When any
tool or piece of equipment that has been designated as "primary" or "backup" and/or

Page 54 of 63
assigned to perform the WORK within one week, is less than one-hundred-percent
(100%) operational or out of calibration, bringing the equipment to fully
operational/calibrated status shall be a priority. If equipment designated to perform
the WORK within seven (7) days is expected to be less than one-hundred-percent
(100%) operational/calibrated for greater than a twenty-four (24) hour period,
CONTRACTOR shall notify COMPANY in writing and submit a written repair plan to
COMPANY for notification and acceptance. The plan shall include information such
as the estimate of time and date for repairs/calibrations to be completed, availability
of necessary replacement parts, location, transportation arrangements and estimated
time of arrival of any offsite repair parts.
ARTICLE 11 – EQUIPMENT MAINTENANCE, INSPECTION, TEST, CERTIFICATION,

DOCUMENT AND RECORD REQUIREMENTS
11.1 GENERAL
(a) All CONTRACTOR equipment and/or software shall be subject to COMPANY
acceptance, if required.
(b) CONTRACTOR shall ensure all materials, equipment, and related systems
necessary to perform the WORK under the CONTRACT (whether provided by
CONTRACTOR or otherwise) have been adequately certified, commissioned,
calibrated, and/or otherwise made ready for use prior to the first operation and
each operation thereafter.
(c) All CONTRACTOR's electrical equipment for use offshore shall be suitable and
certified for use in Class 1, Zone 1 or the appropriate Class/Zone hazard areas.
(d) All load bearing and/or lifting appliances shall be inspected and certified as a
minimum, on an annual basis by an internationally recognized certification
authority (e.g., DnV, ABS, Lloyds, BV, etc.). "Valid certificates" for lifting
appliance inspections and certification shall be available for COMPANY review
upon request and included in the pre-job equipment preparation and inspection
data book.
(e) The threads of all equipment shall be supplied with COMPANY approved thread
protectors and shall be adequately covered with thread compound or thread
storage compound.
(f) Cold working/rolling bottom hole assembly (BHA) rotary connection thread roots
and stress relief surfaces increase fatigue life by placing a residual compressive
stress in the thread roots. All BHA rotary connections shall be cold worked/rolled.
(g) Threads on non-magnetic tools and BHAs may be bead blasted or subjected to
an alternative cold working operation to minimize galling provided the operation
is COMPANY accepted.
All new service tools/equipment shall be certified by the OEM to meet the intended
service conditions and requirements as specified by CONTRACTOR.
CONTRACTOR shall maintain on-hand a copy of the OEM original equipment data
book with a certificate of conformity for the tool/equipment, copies of all OEM
performed tests, inspections and calibrations, etc., as well as copies of the certified
material test reports for the raw materials/tubulars/elastomers used to produce the
tools/equipment.
11.2 Pre-Job Preparation
11.2.1 Prior to each service job on behalf of COMPANY (i.e., well, hole section, or service
job "campaign" as applicable), CONTRACTOR shall conduct a thorough preventive
maintenance, inspection, calibration, and documentation review exercise, on all
materials/consumables, equipment, software and systems to be used in the
performance of the WORK. CONTRACTOR shall develop and submit for COMPANY
acceptance a comprehensive "pre-job equipment preparation/inspection checklist" to
document the pre-job equipment preparation and inspection exercises. Once
accepted, CONTRACTOR shall document each pre-job preparation/inspection
exercise on a COMPANY accepted "pre-job equipment preparation/inspection

Page 55 of 63
checklist." At COMPANY's option, COMPANY may require each pre-job equipment

preparation and inspection exercise to be witnessed by a COMPANY
REPRESENTATIVE.
11.2.2 COMPANY shall be notified prior to each equipment preparation/inspection exercise
of equipment to be used for COMPANY’s jobs with sufficient notice/lead time to
provide the opportunity for a COMPANY REPRESENTATIVE to witness the activity
of the exercise.
11.3 Inspection
11.3.1 All downhole tools and equipment shall be inspected within thirty (30) days prior to
load out to COMPANY's WORKSITE or logistics base, and/or just prior to each
service job or service job "campaign," and after the equipment has been subjected to
the specified number of rotating hours.
11.3.2 CONTRACTOR's inspection subcontractors and inspection methods shall be
COMPANY accepted prior to performing inspections. COMPANY reserves the right
to require CONTRACTOR to change inspection subcontractor/company if the service
provider fails to perform inspections to COMPANY's satisfaction.
11.4 Calibration
11.4.1 CONTRACTOR shall calibrate/verify all inspection, measuring and testing equipment
(IMTE) provided to and/or utilized in the performance of service(s) for COMPANY in
accordance with CONTRACTOR's procedures and schedules (i.e., frequencies). As
a minimum, calibrations shall be performed prior to performing each service job (well)
or "job campaign" in addition to performing calibrations as per CONTRACTOR's
standard calibration frequency. COMPANY may require the opportunity to review and
approve CONTRACTOR's IMTE procedures and calibration frequency requirements.
Appropriate calibration reports and records shall be maintained to provide objective
evidence of satisfactory calibration. Calibration records shall include information as
to:
(a) Equipment description
(b) Equipment unique identification/serial number(s)
(c) Calibration reference standard(s) used
(d) Date of calibration
(e) Initial "as-found" and final calibration results, (i.e., in or out of calibration and by
how much)
(f) Adjustments made
(g) Final calibration (accuracy/inaccuracy) results
(h) CONTRACTOR's final acceptance of calibrations
11.4.2 Calibration records/reports shall be signed and dated by the person performing the
calibration.
As a minimum, all surveying instruments shall receive a calibration check in a
suitable survey instrument check stand prior to and after each survey run.
COMPANY may elect to accept offshore calibration checks for specialized surveying
services, e.g., batch operations.
11.4.3 Documentation of last master calibration and last calibration check for any survey
instruments used in COMPANY’s operations shall be furnished by CONTRACTOR
with the pre-job preparation and inspection data book (see 14.5 below).
11.5 PRE-JOB EQUIPMENT PREPARATION AND INSPECTION DATA BOOKS
11.5.1 Equipment calibration, certification, maintenance, and pre-job preparation record
books (i.e., "pre-job equipment preparation and inspection data books") shall be
assembled and maintained to provide objective evidence that all equipment and
instruments meet specified requirements. Two (2) copies are required prior to each
service job. One copy shall be sent to the WORKSITE and one shall be retained by
the CONTRACTOR's office. Once the pre-job data book is compiled, it may be used

Page 56 of 63
for each job performed on behalf of COMPANY, provided all relevant sheets are
updated or replaced as required. Pre-job equipment preparation and inspection data
books may be provided in either hardcopy or electronically to COMPANY.
11.5.2 Pre-job equipment preparation and inspection data books" shall contain the following
documents as a minimum:
(a) Table of Contents: The data book shall contain a table of contents that lists a
section for each major piece or set of equipment.
(b) Equipment Certification/Certificates of Conformity (COC): Equipment certification
records/reports and/or COCs as provided by the OEM for critical
equipment/systems (as required by COMPANY) showing results of all required
calibration and testing. Certificates of Conformity shall list the
equipment/instrument description, serial or identification number, and the
internationally recognized codes and standards the equipment/instrument meets.
Additionally, for all electrical equipment going to an offshore WORKSITE, the
Class 1, Zone 1 or appropriate Class/Zone hazard area certifications shall be
included.
Only an equipment COC provided by the OEM is required in the pre-job data
book from the OEM supplied equipment data book. CONTRACTOR shall
maintain the OEM equipment data book with all original CMTRs and other OEM
manufacturing and inspection data on file for review by COMPANY when
required.
(c) NDT/QC Inspection Reports: Copies of all CONTRACTOR performed non-
destructive testing and/or QC inspection reports including THIRD PARTY
inspection reports covering all rotary connection inspections to the appropriate
DS-1 service category requirements.
(d) Equipment History File: A detailed record of the service history, as well as
records of periodic maintenance, inspections, calibrations and pre-job
preparations. All details of all equipment repairs and replacements, as well as a
copy of the periodic maintenance/calibration schedule, listing the required
frequency and the historical usage of each piece of critical and/or pressure
containing equipment.
(e) Hydrostatic Pressure Test Records: Records of required hydrostatic pressure
testing for all pressure retaining equipment and systems, if required.
(f) Lifting Equipment Certifications: "Valid" lifting equipment certifications for all load
bearing equipment and lifting appliances (e.g., pad eyes, slings, shackles, etc.)
issued by an internationally recognized certification authority (e.g., DnV, ABS,
Lloyds, BV, etc.).
(g) Pre-Job Equipment Preparation and Inspection Checklist: A copy of the
completed pre-job equipment preparation and inspection checklist signed and
dated by CONTRACTOR REPRESENTATIVE. If COMPANY requires
COMPANY REPRESENTATIVE to witness the pre-job preparation activities, the
checklist shall be accepted and signed off by COMPANY REPRESENTATIVE.
All records shall be traceable to the equipment/instruments via equipment unique
serial number(s) and shall be identified by equipment serial number, part number,
and description.
11.6 JOB QUALITY ASSURANCE ANALYSIS
Prior to each job, CONTRACTOR's site supervisor at the WORKSITE shall perform a
"job quality assurance analysis" (JQAA) review to ensure all PMITP activities have
been satisfactorily completed. The JQAA shall consist of a review of the pre-job
equipment preparation and inspection data book to verify all required documents
have been completed and included, including COMPANY accepted "pre-job
equipment preparation and inspection checklist." The JQAA shall be conducted as
soon as practical after the site supervisor receives the pre-job equipment preparation
and inspection data book and all required service equipment/tools at the WORKSITE.

Page 57 of 63
All problems noted shall be documented and immediately brought to the attention of
COMPANY's WORKSITE supervisor.
11.7 RECORDS
CONTRACTOR shall maintain the following documentation records (current at the
time of service), on behalf of COMPANY, relative to the design and WORK for a
minimum of thirty-six (36) months after the termination of the CONTRACT.
COMPANY may request certain documents for review and/or retention.
(a) All reports submitted to COMPANY, including end-of-well reports (both hardcopy
and electronic copy) with COMPANY acceptance.
(b) Copies of all equipment certification and maintenance books
(c) Quality plan(s)
(d) Quality manual
(e) Quality system procedures/standard operating procedures
(f) Pre-job equipment preparation books and checklists

Page 58 of 63
ARTICLE 12 – PERSONNEL REQUIREMENTS.

12.1 GENERAL
12.1.1 CONTRACTOR shall provide at all times the required number of trained, qualified,
and competent personnel to satisfactorily perform the WORK. Personnel shall be fully
trained, qualified, competent, and capable of performing all required duties.
12.1.2 CONTRACTOR shall ensure the named and COMPANY accepted KEY
PERSONNEL are assigned and dedicated to COMPANY's project and/or
WORKSITE and made available to COMPANY throughout the term of the
CONTRACT unless otherwise authorized by COMPANY in writing. All other
CONTRACTOR support personnel shall be provided from the pool of COMPANY
accepted resumes/CVs.
12.1.3 CONTRACTOR's personnel at WORKSITE shall be provided with the "current"
revision of the accepted quality plan, as well as current copies of all required
procedures, work instructions, forms and manuals. CONTRACTOR shall provide its
personnel all necessary and required service equipment/tools, calibrated gauges,
etc., to adequately perform the WORK to COMPANY’s satisfaction.
12.1.4 CONTRACTOR shall provide competent personnel to perform QA/QC activities of the
WORK.
12.1.5 CONTRACTOR shall appoint a quality control focal point who shall be responsible to
ensure that the requirement for WORK and/or services, and/or equipment and
material supply under the CONTRACT is met.
12.2 QUALIFIED AND COMPETENT PERSONNEL
12.2.1 In accordance with CONTRACTOR’s quality management system, CONTRACTOR
shall identify and document all training needs and provide for the training of all
CONTRACTOR PERSONNEL to ensure all CONTRACTOR PERSONNEL are
“qualified” and competent in accordance with pre-established
qualification/competency requirements acceptable to COMPANY. The training
requirements shall include safety, quality systems indoctrination and familiarization,
as well as unique job skills/requirements training. Documented evidence of the
required training shall be maintained on file by CONTRACTOR and shall be available
for review by COMPANY at any time prior to signing the CONTRACT and during the
period of the CONTRACT.
12.2.2 CONTRACTOR shall ensure any SUBCONTRACTOR personnel (versus full-time
employees) proposed to perform the WORK meet all CONTRACTOR's in-house
training, qualification and competency requirements. CONTRACTOR's determination
of qualification and competency equivalence to CONTRACTOR's in-house
requirements shall be COMPANY accepted.
12.3 SATISFACTORY PERFORMANCE
CONTRACTOR PERSONNEL shall satisfactorily perform their duties in a safe,
professional and competent manner to the satisfaction of COMPANY.
CONTRACTOR PERSONNEL unable to perform the duties to COMPANY’s
satisfaction or failing to possess the proper credentials (i.e., competency
documentation) and/or work-related procedural documentation or equipment, shall be
replaced or the situation shall be remedied to COMPANY’s satisfaction, consistent
with the CONTRACT requirements at the sole expense of CONTRACTOR.
12.4 PERSONAL SAFETY AND SAFETY EQUIPMENT
12.4.1 CONTRACTOR PERSONNEL at the WORKSITE shall comply with all
CONTRACTOR and COMPANY stipulated safety rules, procedures and regulations.
CONTRACTOR shall provide each employee at the WORKSITE with all required
personal safety equipment needed to perform the required service operations. All
safety equipment shall meet all COMPANY HSSE requirements. Such equipment
shall include, but not be limited to, COMPANY accepted:

Page 59 of 63
(a) Hard hats

(b) Safety glasses/goggles
(c) Coveralls
(d) Gloves
(e) Steel-toed boots
(f) Hearing protection
12.4.2 If required by COMPANY, CONTRACTOR PERSONNEL working at all COMPANY
WORKSITES (i.e., DRILLING UNIT, production platforms, logistics base, wharf, work
boats, etc.) shall wear Nomex IIIA long-sleeve coveralls (no substitute).
12.4.3 All CONTRACTOR PERSONNEL present at a COMPANY WORkSITE where H2S
hazards are applicable shall be trained in H2S hazards and shall possess a "valid"
and current H2S/BA certificate (i.e., less than one (1) year old).
12.4.4 If required by COMPANY, all CONTRACTOR PERSONNEL working at any
COMPANY offshore WORKSITE shall have undergone “helicopter underwater
survival training” (HUET) and “sea survival training,” or equivalent courses as
accepted by COMPANY, within three (3) years of performing service(s). Training
certificates shall be available for COMPANY review upon request.
ARTICLE 13 – CONTINUOUS IMPROVEMENT REQUIREMENTS.

13.1 CONTRACTOR shall actively pursue all opportunities for continuous improvement in
the performance of the WORK and/or supply of the GOODS as required by ISO TS
29001 and in accordance with the CONTRACT. As one method to measure
continuous improvement, CONTRACTOR shall report on the all the agreed key
performance indicators (KPIs) at a frequency specified by COMPANY
13.2 As noted above, CONTRACTOR shall monitor and measure the KPIs for all phases
of the CONTRACT and be prepared to report the results on a quarterly basis or as
directed by COMPANY. Results of performance reviews and performance review
meetings shall be communicated to COMPANY in writing when requested and/or on
a quarterly basis.
13.3 CONTRACTOR shall meet with COMPANY quarterly or as required to conduct
performance review meetings to review KPI measurements and determine if process
improvements need to be implemented to improve performance of the WORK. If
process improvements are required, they shall be implemented prior to the next
similar process/operation.
13.4 If process improvements are required, appropriate revision(s) shall be made to the
appropriate SOPs and/or the accepted quality plan, as applicable.
Page 60 of 63
APPENDIX 3 – CALL OFF ORDER FORM
Page 61 of 63
Brunei Shell Petroleum Company
Provision of CTU-STIMULATION (CSS)
Services Section 4 A – Scope of Work
Tender No. C150197/TWC
APPENDIX 4 – QUALITY PLAN TEMPLATE
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Brunei Shell Petroleum Company Provision

of CTU & STIMULATION Services

Tender No.C150197 Section 4 A – Scope of Work

Provision Of CTU & Stimulation Services

SECTION 4A –SCOPE OF WORK

PART 1 – GENERAL SCOPE REQUIREMENTS

ARTICLE 2 – GENERAL SCOPE OF WORK

PART 2 – SPECIFIC SCOPE REQUIREMENTS

ARTICLE 6 – SERVICES INCLUDED IN THE WORK

PART 3 – TECHNICAL SPECIFICATIONS

SECTION 4A –SCOPE OF WORK

PART 1 – GENERAL SCOPE REQUIREMENTS

SECTION 4A –SCOPE OF WORK

PORT OF LOADING means COMPANY SUPPLY BASE, and/or COMPANY AVIATION

ARTICLE 2 – GENERAL SCOPE OF WORK

SECTION 4A – SCOPE OF WORK

2.3 Contract and Call-Off Mobilisation

SECTION 4A – SCOPE OF WORK

CONTRACT and is ready, willing and able to commence operations.

SECTION 4A – SCOPE OF WORK

SECTION 4A – SCOPE OF WORK

COMPANY’s stated requirements described in Part 3 below.

SECTION 4A – SCOPE OF WORK

ARTICLE 3 – MANAGEMENT AND COORDINATION OF THE WORK

SECTION 4A – SCOPE OF WORK

SECTION 4A – SCOPE OF WORK

providing systematic access to CONTRACTOR ITEMS, and minimising handling

3.3.2 As a result of operations or performance, CONTRACTOR shall maintain and update

SECTION 4A – SCOPE OF WORK

(e) Factory Acceptance Test (FAT) manuals.

SECTION 4A – SCOPE OF WORK

3.6 Worksite Requirements

SECTION 4A – SCOPE OF WORK

3.9 Call-Off Procedures

ARTICLE 4 – ABNORMAL DAMAGE, CONDITIONS AND REPAIR

SECTION 4A – SCOPE OF WORK

ARTICLE 5 – RECORDS AND REPORTS

SECTION 4A – SCOPE OF WORK

SECTION 4A – SCOPE OF WORK

5.8 Quality Assurance/Quality Control Report

PART 2 – SPECIFIC SCOPE REQUIREMENTS

SECTION 4A – SCOPE OF WORK

6.1 Utilisation of the Services

SECTION 4A – SCOPE OF WORK

• Crude oil pumping depending on fluid flammability rating Solvent pumping

• Spotting acid Chemical pumping

c) Coiled Tubing services

• Perforation washes Water shut-off

• Set and pull/open and close down-hole tools Acid stimulation

• Fishing/Milling Tractor operations Chemical injection Fluid sampling Under-

• Manipulation or placement of wireline accessories.

• CT and/or ESP Completions

• Real-Time Downhole monitoring (Pressure/ Temp/ Force)

• Pipe Recover (Chemical Cutter/ RCT for the provided CT Sizes)

• Supply Coiled Tubing Tower - Optional

Mechanically set retrievable packers (RTTS)

SECTION 4A – SCOPE OF WORK