SPDC STANDARD DRILLING PROCEDURES MANUAL CHAPTER 05

PROGRAM PREPARATION Page 1 of 14

CHAPTER INDEX

BULLETIN ITEM PAGE

05.1 INTRODUCTION 2
05.2 WELL PROPOSAL AND APPROVAL 2
05.2.1 ORIGINATORS OF WELL PROPOSALS 2
05.2.2 LATEST FINALISATION DATES OF PROPOSALS 2
05.2.3 MINIMUM CONTENTS OF WELL PROPOSALS (INCLUDING ALTERNATIVES) 3
05.2.4 DPR APPROVAL 4
05.3 PRESENTATION OF WELL PROPOSAL TO MANAGEMENT 5
05.4 PROGRAMME PREPARATION 6
05.4.1 DRAFT PROGRAMME 6
05.4.2 DTL-DWOP 6
05.4.3 FINAL PUBLICATION 6
05.4.4 MINIMUM CONTENTS OF A DRILLING PROGRAMME 6
05.5 PROGRAMME VALIDATION 10
05.5.1 APPROVAL AND SIGNATORIES 10
05.5.2 PROGRAM ME AMENDMENTS 11
05.6 PROGRAMME DISTRIBUTION 11
05.7 APPENDIX 13
05.7.1 FORMAT OF A WELL PROGRAMME 13

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05.1 INTRODUCTION

This chapter contains the requirements to prepare a drilling programme. Minimum contents of
both well programmes and proposals are specified. Deadlines for all necessary actions, which
may affect the preparation and publication of a drilling programme to the required well
specifications, as contained in the well proposal are also specified.

A drilling programme is the final authoritative plan for drilling a well. The programme
complements the Drilling Engineering Procedures Manual. It contains such information that
are not normally carried in the manual. It is also intended to contain amendments to the
Standard Drilling Engineering Procedures as are applicable to the well. Consequently, in case
of a conflict between a drilling programme and the Drilling Engineering Procedures Manual,
the basis for the deviation should be fully explained in the programme and such conflict
should, however, be fully discussed with the base before the operation is carried out.

With the complexity of drilling techniques and the inherent potential problems in drilling, the
programme may not address all potential drilling problems that may be encountered while
implementing the programme. Therefore, the drilling programme should be followed as closely
as possible while the skill, expertise, and professional judgement of wellsite personnel is
applied as necessary. If wellsite ideas conflict with programme requirements, the differences
must be resolved with the base before any action contrary to the programme is undertaken.

05.2 WELL PROPOSAL AND APPROVAL

05.2.1 ORIGINATORS OF WELL PROPOSALS

Well Type Originator

Exploration Wells EPX-G-XNEx (Oil/Gas/Frontier Exploration Teams)

Exploration Appraisal Wells EPX-G-XNEx (Oil/Gas/Frontier Exploration Teams)
Appraisal Wells EPG-PN-VAxx ( Divisional Asset Team A/B/C)
Development Wells EPG-PN-VAxx ( Divisional Asset Team A/B/C)

The respective originators of proposals must liase with Well Engineering Operations to
optimise the planning of wells. Specific reference should be made to the LAR. Necessary
reviews may be made at this stage.

05.2.2 LATEST FINALISATION DATES OF PROPOSALS

The QWDP document will provide the basis for planning towards the drilling of wells. To
ensure that Wells will be drilled as per the QWDP, Well proposals shall be finalised as
follows:

Well Type Deadline (prior to spud date)

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Exploration/Exploratory Appraisal 9 months

Appraisal/Development 4 months
05.2.3 MINIMUM CONTENTS OF WELL PROPOSALS (INCLUDING
ALTERNATIVES)

All proposals must contain at least the following:

Name

Location and field names

Well type

Exploration or appraisal or Development.

Area

The OML/OPL offtake area and field code.

Co-ordinates

Proposed "blue peg" co-ordinates of the surface location and all important subsurface targets
and their relevant tolerances.

Deviation

Details of the proposed trajectory and target tolerances. If a sidetrack is anticipated for a well,
some information on the extent of such a sidetrack should be given to enable optimum
planning.

Correlating Wells

The expected correlating wells, if the correlating wells belong to a competitor, the required
information should be made available and included in the proposal.

Well Objectives

These will be clearly stated.

Well Prognosis

This includes stratigraphy, hydrocarbon distribution (especially shallow gas pockets or shallow
hydrocarbon depth), expected faults and boundaries, their significance and other relevant

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geological data including cross-sectional horizon maps. A lithological column describing the
expected sand/shale sequences from spud to TD which summaries the geological prognosis.

Pressure/Temperature Regimes

Expected pressure/temperature profiles with emphasis on abnormal regimes.

Depth Reference(s)

The depth reference must be clearly stated in the proposal and also the following:
Projected total depth (TD) and markers.

Estimated water depth (Swamp and Offshore)

Local water table, provisional DFE.

Logging Programme

Proposed logging programme and MWD/LWD requirements

Completion/Testing

Where it is a Drill and Complete option, the proposal will specify whether the well will be
completed immediately after drilling. It will also identify the proposed completion intervals
and completion type, in addition to testing requirement.

CASHES

Statement on the EIA approval. The proposal should contain the status of community issues of
the location.

Other Requirements

All other special requirements - coring, mud logging, etc. that will affect the planning and
actual drilling of the well must be specified in the proposal.

05.2.4 DPR APPROVAL

a) Submission of Well Proposals to DPR

The originator should ensure that the finalised well proposals is submitted to DPR for approval
at least three months before the planned spud date. The request for approval must include the
preferred field name for exploration wells.
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DPR approvals are valid for 6 months from the date of issue.

In the event that DPR's approvals will expire prior to actual spudding of well, the proposal
shall be revalidated and re-submitted to DPR in good time to enable DPR's approval to be
obtained prior to the new planned spud date.

Display of Approval Documents

The DPR's approval letter must be displayed on the rig at all times while carrying out drilling
operations on the location.

Well Type Designation: (DPR Approval versus SPDC Well Proposal)

In the exceptional case when an exploration well is approved as an appraisal well or an

appraisal well approved as a development well, the well planning and actual drilling operations
with specific reference to safety, shall be as per the SPDC well classification.

05.3 PRESENTATION OF WELL PROPOSAL TO MANAGEMENT

Proposals and drilling plans of all exploratory, exploratory appraisal, deep appraisal and
development wells must be presented to management before spudding the well. This will help
to resolve any conflicting issues and give approval to proposed well specifications and drilling
programme prior to well spud date.

The presentation must be made within one month of the publication of the well proposal i.e.
five (5) months for exploration and three (3) for Development prior to scheduled spud date.

The originator of the well proposal will present the well specifications.

EPG-PN-VAxx ( Divisional Asset Team AB/C) representative will present a proposed

evaluation programme specifying wireline logs requirements as well as any special operational
requirements to enhance quality of information from the evaluation techniques proposed.

EPG-PN-Wx (Divisional Well Delivery Team), after liaising with all relevant departments will
present the operational aspects, highlighting any special requirements/constraints to drilling the
well as proposed. A summary of the proposed programme and the estimated well cost will also
be presented.

The presentation should be scheduled by management after discussions with all participants.

Although the presentation is basically to management, the presence of the following functions
will help to resolve any uncertainties which may affect drilling:
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EPX-G-XNEx (Oil/Gas/Frontier Exploration Teams) or
EPG-PN-VAxx ( Divisional Asset Team A/B/C).

EPG-PN-Wx (Divisional Well Delivery Team).

EPG-PN-TExx. (Divisional Surface Engineering Team).
EPF-G-SCNWI. (Wells Supply Chain Support)

05.4 PROGRAMME PREPARATION

The Senior Well Engineer/Drilling Engineer will be responsible for the preparation of drilling
programmes. The programme will be duly signed by both EPX-G-XNEx (Oil/Gas/Frontier
Exploration Team)/ EPG-PN-VAxx (Divisional Asset Team A/B/C) and EPG-PN-Wx
(Divisional Well Delivery Team).

05.4.1 DRAFT PROGRAMME.

To allow sufficient time for DTL-DWOP section and for further reviews of the programme, the
draft must be ready as follows;

Well Type Deadline for Publication (prior to spud date)

Exploration 3 months

Appraisal/Development. 2 months

Unanticipated changes to the drilling sequence will be treated as appropriate.

05.4.2 DTL-DWOP

Draft programme must be DWOPed at least five weeks to planned spud date.

05.4.3 FINAL PUBLICATION

Deadline for the publication of final authorised programme is as a follows:

Exploration/Appraisal 1 month

Development 2 weeks

05.4.4 MINIMUM CONTENTS OF A DRILLING PROGRAMME

a) Programme Summary

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The summary page of the drilling programme will contain the following information as a
programme summary:

Well location name, type and name after spudding.

Provisional (proposed) blue peg co-ordinates of the surface location and target coordinate.

OML/OPL, field code and offtake area in which well is situated.

Name of rig that will drill the well and an estimated Drill Floor Elevation (DFE) in relation to
the Mean Sea Level, which is normally the depth reference in well proposals.

A summary of planned hole/casing schemes/information.

A summary of cement programme.

A summary of mud programme.

A summary of proposed evaluation.

A summary of casing design, expected leak off gradient at shoe, casing test pressures.

General programme remarks and highlights (brief) must be edited to prevent congesting the
summary page.

Lithology column with pressure regimes and casing setting depth.

Well objectives.

Wellhead information.

Approval and signatures of EPX-G-XNEx (Oil/Gas/Frontier Exploration Team)/ EPG-PN-

VAxx (Divisional Asset Team A/B/C) and EPG-PN-Wx (Divisional Well Delivery Team).

Account number, budget.

Correlating Wells.

17. Special notes and remarks.

b) Geological Issues

This section of the programme must contain at least the following:

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A summary of well prognosis and stratigraphy giving known/expected hydrocarbon

distribution especially shallow gas pockets and/or shallow well hydrocarbon depth.

Summary of expected pressure regime(s)

Summary of expected temperature profile.

Coring requirements if applicable.

Penetration log requirements — Penetration logs gotten from MWD

Borehole stability template/summary of STABOR result.

Note: A drawing showing planned trajectory and other relevant data will follow the remarks.

7 Casing seat test requirements should be stated and relevant appendices for procedure
referenced. - If applicable!

c) Information on Correlating Wells

This section of the drilling programme should contain a summary of information available
from correlating/nearby wells under the following headings:

General information of correlating wells.

Hole/casing/mud data of correlating wells.

Hole problems.

Assembly + Bit runs.

Analysis of Bit/assembly runs with the associated hole problems and successes.

Equivalent Mud Gradient (EMG)

d) Materials Requirements

These pages will contain requirements in terms of casing (scheme and design), casing
accessories, wellhead equipment and chemicals (reference of standard chemical list and details
of other chemicals required).

e) Hydraulic/Bit Programme, Hole cleaning.

This page will contain the concise hydraulics and bit programme for the proposed well,
including all hole cleaning recommendations and practices.

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Cementing Programme

This page will contain the provisional cementing programme which need to be checked by the
Shell PC Lab. before the actual jobs. It should also contain a summary of the quantities
required.

Drilling Mud Programme

Summary of recommended and programme.

Plot of Estimated Days vs Depth

This page will contain a plot of estimated days on well versus depth. These page will contain a
breakdown of the target time estimates for the various drilling activities required to drill the
well, with a provision for actual times and remarks. Estimate should include the 50/50 and the
DTL stretch target.

Evaluation Programme

These pages will contain the planned wireline logging/FEWD programme that will guide the
logging operations. This input is agreed with the sponsor Department.

k) Well Cost Analysis

This page will contain the Well Cost Analysis.

1) Well Trajectory

This page will contain details about the KOP, build up section, landing
point and drain hole. A brief note on collision risk if any, survey
requirement, expected problems and recommendations.

Casing design

This page will contain the casing design highlighting all assumptions and design criteria.

Drag and Torque analysis

This page will contain an analysis of possible maximum torque and drag
that the drill sting may be subjected to in the course of drilling the well. Drag and torque for
running liner should be included.

o) Well control

This page will contain details all possible expected pressures that may be encountered in the
course of drilling including shallow gas.

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Well control issues arising from Coring

Kick tolerance
Swab kick
Depletion

Drill string Dynamics simulation

This page will contain all simulations regarding drill string

dynamics/vibrations that the drill string may be exposed.

Coring
This page will contain the coring programme, which will include any
special precaution that may be required with relation to the formation
sand/shale sequence.

r) Appendices

The last pages of a programme will contain the relevant appendices to the programme. Such
appendices include procedures for non routine operations such as coring, multi-interval sand
consolidations, etc.

05.5 PROGRAMME VALIDATION

After a programme has been prepared by the Drilling Engineer/ Senior Drilling Engineer, it
should be subjected to DWOP. Following that, the programme should be circulated for
validation as follows:

Senior Drilling Engineer (SDE).

EPG-PN-Wx (Divisional Well Delivery Manager).

Originator of proposal:

1) EPX-G-XNEx (Oil/Gas/Frontier Exploration Team)/ EPG-PN-VAxx (Divisional Asset Team

A/B/C)

All action parties specified in above must initial the circulation list and endeavour to meet the
deadlines shown on the circulation slip which will be attached to the programme.

05.5.1 APPROVAL AND SIGNATORIES

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All drilling programmes must be approved and signed by the EPX-G-XNEx (Oil/Gas/Frontier
Exploration Team) Manager / EPG-PN-VAxx (Divisional Asset Team A/B/C) Manager and
the Well Engineering Manager (EPG-PN-W)

05.5.2 PROGRAMME AMENDMENTS

There may be a need to deviate from an existing well programme during the course of drilling
operations due to e.g. hole problems, unsuccessful fishing operations necessitating a sidetrack
etc. Such deviation will be endorsed by an amendment to the well programme, which must be
signed by the signatories of the original well programme. Such amendments will form part of
the well programme and as such will be serialised, documented and filed on the rigsite and the
office.

05.6 PROGRAMME DISTRIBUTION

The deadlines given in bulletin 15.2 must be closely adhered to and programmes, once
finalised, must be distributed to the relevant functions, given below for prompt action or
information.

Distribution of the well programme should be as follows:

Hard copies to be sent to the well site, duty box & divisional operations
team (Wx)
All other copies should be e-copies

Recipient No. of Copies

EPG-PN-Wx Divisional Well Delivery Team 5

EPG-PN-WT Wells Discipline Team 3
RIG SITE 3
EPG-PN-W duty box 1
EPG-PN-WB admin. master file (file distrb. list with prog.) 1
EPX-G-XNEx (Oil/Gas/Frontier Exploration Team) 3
EPG-PN-VAxx (Divisional Asset Team A/B/C) 4
EPG-PN-TExx. (Divisional Surface Engineering Team). 3
EPF-G-SCNWI. Wells Supply Chain Support 1
EPG-PN-CFGLM Project Materials 3
EPG-PS-PLMR Marine Operations Coordinator 2

EPG-PN-BVG JV Report Coordinator 1
Spare copies (held by DE) 3

Drilling contractor (Name: .... ) 2
Cementing contractor (Name: ) 1
Logging contractor (Name: ) 1
Mud Engineering Services (Name: )
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Mud Logging contractor (expl. only) (Name: ) (lif required)

MWD/Directional contractor (Name: ) (1 if required)
Coring contractor (Name: ) (1 if required)

TOTAL 35 (38)

Name and signature of Drilling Engineer:

Name and signature of distribution clerk:

Despatch date:

NOTE: It is the responsibility of the DE to delete the appropriate

indicator and insert the name of the Drilling/Service
contractor. 3

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05.7 APPENDIX

05.7.1 FORMAT OF A WELL PROGRAMME

The standard format a Well program is as shown below:

1.0 CASHES

2.0 GEOLOGICAL INFORMATION

2.1 Objective/major highlights
2.2 Stratigraphy/Pressure Prognosis
2.3 Other Geological information
Fig. 1 Geological Cross-section
Fig. 2 "Other plots"

3.0 DRILLING AND COMPLETION PROGRAMME SUMMARY

3.1 Drilling and Completion programme Summary Table
3.2 Drilling Time Estimate
3.3 Depth-Time Graph
3.4 Deviation Plot
3.5 Well Cost Estimate

4.0 SEQUENCE OF OPERATION

4.1 Phase 1: Rigmove
4.2 Phase 2: 36" hole section
4.3 Phase 3: 26" hole section
4.4 Phase 4: 17-1/2" hole section
4.5 Phase 5: 12-1/4" hole section
4.6 Phase 6: 8-1/2" hole section
APPPENDIX A: Drilling Fluids Programme
APPPENDIX B: Hydraulic Programme
APPPENDIX C: Borehole Stability Template
APPPENDIX D: Drag and Torque
APPPENDIX E: Drillstring Dynamics
APPPENDIX F: Well Control
APPPENDIX G: Coring Programme
APPPENDIX H: Well Evaluation Programme
APPPENDIX I: Casing Design
APPPENDIX J: Cementing Programme
APPPENDIX K: Data on Correlating Wells
APPPENDIX L: Material Shopping List
APPPENDIX M: Contractors List

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CHAPTER 05 Programme Preparation FEEDBACK FORM

Use this form to communicate:

Any inaccuracies or confusion in the text?

Ease of finding information.

Adequacy of reference.

Too many or too little detail?

What is missing?

What is not required?

7. Any other suggestions or comments?

NAME: DEPT.: TEL:

Please dispatch form to EPG-PN-WTE (Technical Standards)

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