GWDC Rig HSE Case for Iraq Garraf Project

Part 1 - Management Summary and Introduction

PART 1.0 – MANAGEMENT SUMMARY AND INTRODUCTION

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GWDC Rig HSE Case for Iraq Garraf Project
Part 1 - Management Summary and Introduction

PART 1.0 – MANAGEMENT SUMMARY AND INTRODUCTION....................................................................1

1.1 Background to Garraf Project.......................................................................................................... 3
1.2 Brief Description of Operations....................................................................................................... 3
1.3 Introduction to HSE Case................................................................................................................. 4
1.3.1 Scope of HSE Case................................................................................................................ 4
1.3.2 Definition of HSE Case........................................................................................................... 4
1.3.3 Objectives of HSE Case.......................................................................................................... 4
1.3.4 Structure of HSE Case............................................................................................................ 5
1.3.5 Uses of HSE Case.................................................................................................................. 6
1.3.6 Owner and Custodian of HSE Case........................................................................................ 6
1.3.7 Review Periods and Updates.................................................................................................. 7
1.4 Management Summary...................................................................................................................... 7
1.4.1 HSE Objectives....................................................................................................................... 7
1.4.2 Application of Hazards and Effects Management Process (HEMP) to Operations..................7
1.4.3 HSE-MS Interfaces................................................................................................................. 7
1.4.4 Hazard Overview..................................................................................................................... 8
1.4.5 Remedial Action Plan.............................................................................................................. 9
1.4.6 Conclusions........................................................................................................................... 12
1.4.7 Statement of Justification for Operations...............................................................................13

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GWDC Rig HSE Case for Iraq Garraf Project
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1.1 Background to Garraf Project

This Rig HSE Case has been compiled in connection with the PCIHBV (Petronas Carigali Iraq
Holding B.V.) as Client and GWDC (Greatwall Drilling Company) Garraf Project in the area of
South Iraq. The Garraf Project located in the Garraf Oil Field of Thi Qar Governorate with 250km
distance to Baghdad, Republic of IRAQ. The area is characterized by a subtropical desert climate.

IRAQ: Oil-rich Iraq is divided by the Euphrates and Tigris Rivers. Mesopotamia, the region
between them, saw the beginnings of writing and mathematics, and the invention of the wheel.
While the river valleys are fertile, most of the country is inhospitable desert or mountains. The
modern state encompasses Kurds in the north, Sunni Muslims largely in the centre, and a Shi'a
Muslim majority to the south.
Full Country Name: The Republic of Iraq
Government Type: Parliamentary Democracy
Population: 32,585,692 (July 2014 est. growth rate: 2.23%)
Currency: Iraqi Dinar
Area: 438,317 sq km(land: 437,367 sq km , water: 950 sq km)
Capital City: Baghdad
In the initial years of the project, GWDC Drilling Rig GW52 will be utilized, for which this Rig HSE
Case has been specifically written.

1.2 Brief Description of Operations

Greatwall Drilling Company, here in after as GWDC, is contracted to provide integrated service for
project management, well construction and well engineering, drilling, logging, perforation, and
completion of development wells in Garraf Field, Iraq.

The drilling rig have been designed and constructed in China, to which this Rig HSE Case applies,
has been manufactured in CPLEC and is a modern VFD-controlled rig with a NOV, ZP375 Top
Drive. The rig is rated to drill to a depth of 6000 m (with 5-1/2” Drill Pipe).

Integrated Services as follows:

1. Project Management, Well Construction and Well Engineering Services

2. Skidable Drilling Rig, Equipment and Services
3. Wireline Electric Logging Equipment and Perforating Services
4. Directional Drilling (DD), Measurement While Drilling (MWD), Logging While Drilling
(LWD), Borehole Survey (BHS) Equipment and Services
5. Cementing Material, Equipment and Casing Accessories Services
6. Fishing Equipment, Supply of Liner Hanger and Services
7. Tubular Handling Equipment and Services
8. Mud Logging Equipment and Services
9. Drilling / Completion Fluid Materials, Equipment and Services
10. Supply of Drilling Bits
11. Security Services
12. Coring Equipment and Services
13. Waste Management and Services
14. Communication System and Services
15. Tubing Conveyed Perforation (TCP) Equipment and Services
16. Slickline Equipment and Services
17. Completion Equipment and Services

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18. Filtration Equipment and Services

19. Stimulation Equipment and Services
20. Surface Well Testing Equipment and Services
21. H2S Equipment and Services
22. Real Time Operating (RTO) System and Services
23. Base Camp and Life Support Services
24. Installation of PCIHBV provided materials (Wellheads, Christmas Trees, OCTGs)
(Wellhead service shall be provided by PCIHBV’s 3rd party contractor)
25. Any others services which are deemed necessary to complete the work

1.3 Introduction to HSE Case

1.3.1 Scope of HSE Case

The focus of the HSE Case is an integrated approach to occupational health, safety, environmental
and security issues. It is an operations and site-specific HSE Case covering the major HSE risks
arising from the drilling of a series of development wells, including rig move, rig up, drill, logging,
cementing, complete, well clean-up/testing and rig down activities.

This HSE Case excludes transportation from WPE to WPG. All of these activities are subject to
separate HSE Plans following a kick-off/HRI meeting between GWDC and PCIHBV.

1.3.2 Definition of HSE Case

The Rig HSE Case is the documented output of the program of formal HSE assessment conducted
by GWDC. The Case thus provides assurance of the effective working of the GWDC HSE-MS at
the rig specific level.

1.3.3 Objectives of HSE Case

1.3.3.1 Primary Objective

The primary objective of the HSE Case is to demonstrate to GWDC and to PCIHBV, to the workers
and to the public that essential controls are in place such that the major HSE risks arising from
activities with Drilling Rig GW 52 is tolerable and reduced to as low as reasonably practicable
(ALARP).

Major HSE risks are defined as those associated with major accident hazards which have the
potential to cause multiple fatalities, or extensive asset damage, or massive environmental effect,
or have a national or international negative impact on the reputation of GWDC.

Workplace hazards arising from hazardous activities, e.g. hot work, pit cleaning, work at heights,
simultaneous operations etc. will be controlled through the Permit to Work (PTW) system.

1.3.3.2 Specific Objectives

More specifically, the objectives of this Drilling HSE Case are to:

1. Demonstrate that suitable HSE management arrangements are in place to ensure that the
specification and conduct of development drilling is fit for purpose and safe for operation.

2. Demonstrate that all foreseeable and credible major accident hazards have been identified
and that suitable and sufficient barriers and controls will be in place such that risks to people,
assets, environment and company reputation are ALARP.

3. Demonstrate that there is adequate provision for the full and safe sheltering, escape,
evacuation and rescue of all personnel from the rig in the event of major accidents.

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4. Demonstrate that continuous improvement in the management of hazards will lead to a safer
workplace.

These objectives are derived from the HSE Management System strategic objectives.

1.3.3.3 Acceptance Criteria

The criteria used to determine whether the above four Case objectives have been met are as
follows:

1. Agreement amongst GWDC and PCIHBV of the required standards of design and operation and
the commitment of all parties to meeting these standards.

2. The acceptance criteria used to determine whether all foreseeable and credible major accident
hazards have been identified include comparison with industry hazard checklists; and formal
reviews by experienced personnel.

3. Identification of major accident hazards requiring evacuation of the rig and suitable and
sufficient recovery preparedness measures are in place in accordance with the above
acceptance criteria.

4. Agreement amongst GWDC and PCIHBV of the required standards for continuous improvement
in the management of workplace hazards and the commitment of all parties to meeting these
standards.

1.3.4 Structure of HSE Case

Part 1 - Management Summary and Introduction

This part describes the scope, objectives and structure of the Case, including a brief explanation of
the contents of each part of the Case. The Management Summary provides a brief overview of the
major findings during the preparation of the Case, a summary of the areas for improvement and the
conclusions.

Part 2 - HSE-Management System

This provides a description of the system in place for managing the HSE risks associated with Rig
GW 52 operations. The HSE-MS ensures the identification and assessment of hazards throughout
the operation; that all reasonable practicable measures have or will be taken to prevent, control or
mitigate these hazards; that audits will be conducted to provide the assurance that the HSE-MS is
being adhered to; and that all activities, engaged in or contracted to other companies, are
managed in a comparable way.

Part 3 - Rig Specifications and Operations

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This provides sufficient information to enable a clear understanding of the operations with scope of
HSE case and rig specifications, with an emphasis on aspects relevant to HSE. External
circumstances are also described, such as meteorological conditions. This information promotes
an understanding of how major hazards and effects could affect the rig operations and, equipment
& systems necessary to ensure the health and safety of personnel and protect the environment.

Part 4 - Risk and Hazard Management

This provides a demonstration that all potential significant risks and hazards have been identified,
the risk from the hazards evaluated and understood, and the controls to manage the cause and
consequences are in place. The main barriers and controls mentioned in the Hazard and Effects
Register are described. The Hazards and Effects Register is a communication document and
quality record that presents, in a clear and concise form, the results of the analysis made of each
hazard and effect associated with the operations. It defines limitations on activities during periods
of abnormal operating conditions, e.g. during concurrent high risk activities or unavailability of
safeguard systems.

Part 5 - Emergency Response Plan

This describes the Rig Emergency Response Plan and provides the agreed emergency response
organization and contingency plans to recover from a number of emergency situations. The
general course of action for an emergency situation is also described, stating the responsibilities of
all nominated parties.

Part 6 - Performance Monitoring

This describes arrangements for monitoring the operation to ensure that HSE management
systems are being followed on Rig GW 52.

Part 7 - HSE-Critical Tasks

This part lists those HSE-Critical Tasks identified as essential to provide or maintain the
necessary controls and recovery measures for hazards to meet the objectives of the HSE Case.
The tasks may be design, inspection & maintenance, operational or administrative tasks. This part
also specifies who is responsible for the tasks, the documentation where the task is defined and
how it will be verified that the task has been undertaken properly.

1.3.5 Uses of HSE Case

The HSE Case provides the primary reference and guidance source for a number of activities
essential for the HSE management of the GWDC Rig GW 52 while engaged in the Garraf Project,
as follows:

 Systematic frameworks to enable management to assure them formally that the major accident
hazards arising from the drilling and well services operations are adequately controlled.
 A baseline for the systematic assessment of the risk associated with any future changes to the
operations.
 A basis for assuring a common and consistent approach to the HSE management of operations
by GWDC and its sub-contractors.
 A guide for managers and supervisors in preparing hazard awareness training, handbooks, etc.
for the workforce.
 A guide for all new personnel at all levels involved in the operations, whether with GWDC, sub-
contractors or PCIHBV, to provide rapid familiarization with the HSE-MS, the hazards and the
associated technical and procedural controls used for managing them.
 A framework upon which HSE audits may be developed and programmed.
 A reference for incident investigation, reporting and follow-up.
 The HSE-Critical Tasks listing provides a reference for managers and supervisors of the HSE-
critical tasks to be undertaken, who is responsible for them, the documentation where the task
is defined and how it will be verified that the task has been undertaken properly.
 The Performance Monitoring Section assigns corrective actions to individuals and thus enables
commitment to HSE management to be included in their performance appraisals.

1.3.6 Owner and Custodian of HSE Case

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Owner - GWDC Country Manager - Mr. Wang Quansheng

The Owner is ultimately responsible for the HSE management of the operations covered by the
Case and is the final approval authority for the contents of the Case. The Owner is responsible for
issuing the Statement of Justification for Operations, thus accepting accountability for the HSE of
the operations and declaring to the Rig Manager that all known HSE hazards that could
conceivably occur have been identified and are under control subject to the close-out of the
outstanding actions.

Custodian - GWDC Garraf Project Manager - Mr. Yin Shijiang

The Custodian is responsible to the Owner for the management of the HSE Case. He is
responsible for initiating the appropriate programs to ensure awareness and proper use of the
Case by the organization. He is responsible for the technical accuracy of the contents of the HSE
Case and for ensuring that revisions and updates are prepared when necessary. He is responsible
for ensuring that the distribution of the Case and its revisions and updates are adequately
controlled.

1.3.7 Review Periods and Updates

Activities necessary to maintain the HSE Case will be implemented and coordinated by the
Custodian, under the direction and authorization of the Owner. These include:

 Assignment of the HSE-Critical Tasks Listing and the Hazard and Effects Register to relevant
personnel - Rig Managers on the Garraf Project. They are charged with the task of ensuring
the relevance, currency and accuracy of their designated tasks. They are required to show the
acceptance of their tasks by signing them.
 All incident reports during the project will make reference to the HSE Case, in particular the
incident reporter/ investigator will be invited to comment upon the accuracy and relevance of
the task and hazard sheets.
 Management review of the HSE Case document on a periodical basis (e.g. every 12 months).
 Re-issuing updated parts of the document as necessary.
 All signatory pages will require re-endorsement should the signatories change.

1.4 Management Summary

1.4.1 HSE Objectives

GWDC’s HSE strategic objectives for Garraf Project are to:

 Prevent all injuries;

 Prevent occupational related ill health;
 Ensure that all personnel have the necessary competencies for their roles and implement
continuous staff competence training;
 Control impact of logistics on local community daily routine and living;
 Ensure personnel security at the highest practical level;
 Have full management of waste and waste collection;
 Ensure that all accidents / incidents that could have or have caused loss or HSE implications are
reported, investigated and analyzed and appropriate remedial measures taken.
 Minimize land take, maximize biological protection and return land in prime state as soon as
practically possible; in doing so prevent long-term negative impact on the environment.
 Implement the necessary management systems and procedures to ensure that hazards and
risks are identified and that the impact of the drilling and correlative service activities on the
health and safety of personnel and on the environment is reduced to ALARP levels.
 Prevent damage or loss of assets;
 Prevent loss of reputation.

1.4.2 Application of Hazards and Effects Management Process (HEMP) to Operations

In order to achieve these objectives, GWDC’s principal strategy is to identify HSE hazards and
effects and ensure that risks from these hazards are either eliminated or reduced to levels which
are ALARP.

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1.4.3 HSE-MS Interfaces

The Safety Bridging Document, required to effectively interface between the HSE-MS of PCIHBV
and the HSE-MS of GWDC, has been jointly developed leading up to the spud date of the first well.
The Safety Bridging Document should allow management of all parties (i.e. also those of third
parties not mentioned in this Rig HSE Safety Case) to agree to the HSE critical responsibilities and
arrangements, allowing the operations to be conducted within the envelope of the respective HSE-
Management Systems.

1.4.4 Hazard Overview

The following 8 major incident hazards have been identified:

Hazard Overview from HAZID Meeting/Considerations

MAJOR ACCIDENT HAZARD Risk Matrix

TOP EVENT AND CONSEQUENCES P A E R
1. Hydrocarbons (oil, , H2S, CO2 and condensate) in formation: B5 B5 B4 B4
Blowout resulting in hydrocarbon release or fire/explosion
2. Hydrocarbon (well testing equipment): B4 B4 B3 B4
Fire or explosion during well clean-up/production operations
3. Cellulosic material: B5 B5 B3 B4
Fire in the camp
4. Conventional explosive material: B5 B3 B0 B2
Unwanted detonation during storage, at drill floor or catwalk
5. Heavy objects/ equipment overhead: B4 C3 C0 C3
Dropped objects from crane or derrick
6. Objects under tension (structures): B4 C4 C0 C3
Structural failure (drill line, derrick, braking failure)
7. On land transportation: B5 C3 C2 C3
Vehicular crash during crew change
8. Hazardous goods in transport activities: B4 C2 B3 B2
Spillage and/or emission of toxic/radio-active material

KEY:
Intolerable P Potential for Fatalities
ALARP zone A Potental for Asset Damage
Low risk E Environmental and Social Impact
R Damage to National/International Reputation

The most significant hazards are considered to be hydrocarbons in formation and on land
transportation, which, if uncontrolled, have the potential to lead to events causing multiple
fatalities, extensive asset damage, massive environmental or socio-cultural effect, and an
international negative impact on the reputation of all parties.

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1.4.5 Remedial Action Plan

All remedial actions raised during the development of this HSE Case have been entered into
GWDC Action Tracking system.

Remedial Action Plan (RAP)

No Subject Action Action Party

1. Adverse Weather:- 1.1 To submit a Standard Operating Procedure(SOP) GWDC
and Drilling Programme that incorporates (Operation Mngr)
Develop detailed procedures preventative measures or operating envelope for the
for the preventative measures integrity of the mast, circulation systems, pilot
that must be taken to ensure systems and air systems
that during adverse summer
weather conditions: 1.2 To provide a Drilling Programme that incorporates GWDC
the limitations of chemicals for drilling fluid and (Operation Mngr)
 the integrity and working cement
condition of all critical
equipment can be 1.3 To provide an operating MSDS for drilling fluid GWDC Mud
guaranteed chemicals Company
 the integrity of the mast and
(other) structures under 1.4 To provide protective cover/film for storage (‘hot’ GWDC Mud
tension remains within storage) commensurate with the operating envelope Company
operating and safety limits of drilling fluid chemicals
 working staff are
adequately protected 1.5 To provide protective cover/film for storage (‘hot’ GWDC
storage) commensurate with the operating envelope Cementing Co.
of cementing chemicals (additives)

1.6 Submit and execute a detailed oil and lubrication GWDC Rig 52
schedule(PMS system) for all of the equipment and (Chief Mechanic)
indicate when ‘change-over’ takes effect for
exremely hot summer.

1.7 Submit lifting register and identify any items that GWDC Rig 52
must be kept in fit storage (HSE Supervisor)

1.8 Provide effective cleaning/removal service for areas GWDC Rig 52

where sanitary waste is collected (hygiene factor) (Rig Manager)

1.9 Ensure Supply Chain Mngmt incorporates operating GWDC Logistics

envelopes and preventative measures for all Dept
equipment on order or purchased or on rental

1.10 Ensure an adequate storage and supply of PPE GWDC Logistics

(insulated coveralls, gloves, insulated boots, Dept
face/ear cover etc.) that suits the hot environment of Rig Manager
Garraf concession

1.11 Provide reminders during handovers, TBT, JSA’s All Operators

and any other (HSE) meeting

1.12 Plan for high frequency breaks of work and GWDC

appropriate crew change schedules Rig Manager

2 Transport: 2.1 GWDC to define weather envelope permitting GWDC

To enhance the circumstances
under which the drivers and
their vehicles will be able to 2.2
provide safe and efficient
services.
drivers to use vehicles under varying weather Project Manager
conditions
Check drivers’ physical and mental ability to use GWDC
vehicles. Drivers could be affected by drugs, HSE Manager
alcohol, but also by personal problems

2.3 Provide and enforce rigid checklist to ensure GWDC

competency of driver that is currently employed or HR Manager
will be employed

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No Subject Action Action Party

2.4 Ensure that drivers are familiar with local traffic and GWDC
local circumstances HR Manager

2.5 Put in place appropriate signs and procedures to GWDC HSE

minimise or eliminate diversion of attention to the Manager
driver:-
- Sign ‘no talking’ to driver
- No smoking when driving
- Sign ‘no use of GMS’
- Comfort (air-conditioning)

2.6 Ensure to have plan in place to conduct routine GWDC

inspection on vehicles based on condition/ mileage Rig Manager
in the appropriate vehicles

2.7 Ensure that drivers who will make journeys over GWDC
long distances are accompanied by a co-driver (2 in HSE Manager
vehicle, i.e. driver and co-driver) to allow change of
drivers at regular intervals

3 Dropped Objects: 3.1 Ensure that Driller tests the crown-o-matic and rig GWDC
positioning system and that these tests are recorded (Toolpusher)
To adopt a systematic on a daily Driller’s checklist, then audited by TP.
approach in verification of
potential dropped objects. 3.2 Ensure that following slipping/cutting, the correct GWDC
Subsequently safeguard or number of laps remain on the drum (Driller first, then (Toolpsuher)
remove these objects and checked by TP)
ensure that a frequent check is
made on dropped objects 3.3 Ensure that a list exists that is able to verify the GWDC
potential. competency of the Driller that he is able to operate (Rig Manager)
all equipment, in particular critical equipment such
as Top Drive etc.

3.4 Ensure crew awareness to alert the Driller (i.e. the GWDC
ability to identify hazards that are not observed by (Rig Manager)
the Driller etc.)

3.5 Ensure that all Crane Operators will use a rouitne GWDC
checklist to verify operational safety of the crane (Rig Manager)
they use

3.6 Ensure that Rigging and Slinging training is GWDC

conducted and refreshed on a frequent basis (HR/HSE Manager)

3.7 Ensure that only Crane Operators with up-to-date GWDC

certification are allowed to operate cranes (Rig Manager)

3.8 Ensure that crane certification is in place GWDC

(Rig Manager)

3.9 Ensure that only certified Forklift Operators with up- GWDC
to-date certification are allowed to operate the (Rig Manager)
forklifts

3.10 Ensure that forklift certification is in place GWDC

(Rig Manager)

3.11 Provide weekly DROPS checklist with picture book GWDC

to facilitate the task of the person performing this job (Toolpusher and
HSE Supervisor )

3.12 Ensure that DROPS checklist includes a regular GWDC

check on light fixtures, hoists and sheaves and any (Toolpusher and
other permanent fixture that might be in a obscure HSE Supervisor )
location of the mast

3.13 Ensure that policy and guidelines are in place to GWDC

provide persons working at heights with appropriate (Rig Manager)

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No Subject Action Action Party

means to work without the risks of dropping objects
(e.g. Tool Pouch and safety lines attached to tools)

3.14 Ensure to have only Type 4 Shackle (i.e. safety GWDC

shackle with push-through pin and safety clip) in (Toolpusher)
derrick on padeyes

3.15 Ensure that policy and guidelines are in place to GWDC

permit only the rig crew to operate hoisting (Rig Manager)
equipment, including the man-riding winch and the
safe practices that are specific to this equipment

3.16 Loop the Top Drive into routine DROPs inspection GWDC
with photo log (Rig Manager)

4 Fire in Camp 4.1 To ensure that in all areas of the camp, a proper GWDC
ventilation system is in place (Chief Mechanic)
To adopt preventative
measures that reduce fire risks 4.2 To ensure that in all areas of the camp immaculate GWDC
and hazards hygiene and housekeeping is maintained (Rig Manager)

4.3 To ensure that hygiene in the kitchen and mess, GWDC

including the cleaning of cooking utensils is of the (Rig Manager)
highest standard

4.4 Consider to implement an anti-smoking campaign GWDC

(Rig Manager)

4.5 To ensure that all bed rooms are fitted with smoke GWDC
detectors (Chief Electrician)

4.6 To ensure that escape route signs are in place GWDC

(Rig HSE
Supervisor)

4.7 To verify the fire fighting team preparedness and GWDC

competency in the camp site (maybe combine with (Rig HSE
supply base team) Supervisor)

4.8 To ensure that the Project ERP Plan will cover the
camp site GWDC
(HSE Manager)

4.9 To ensure that electrical appliances follow the

relevant industry standards, which applies to items GWDC
like adapters (Chief Electrician)

5 Primary Well Control 5.1 To ensure competency of supervisory staff and GWDC
crews in all primary well control aspects such as (Operation
To implement additional holding valid IWCF/IADC certificates Manager)
preventative measures that will
facilitate and provide 5.2 To ensure that competency is enhanced by GWDC
assurance to apply primary receiving adequate guidance from GWDC (Operation
well control at the highest supervisors on a continuous basis. Manager)
practical standards
5.3 To ensure that the agreed Shut-in Procedures and GWDC
BOP stack-up drawing is laminated and posted on (Operation
rig floor (bi-lingual) Manager)

5.4 To provide the Driller with a daily checklist that GWDC

incorporates setting of choke and kill manifolds. (Toolpusher)

5.5 To implement an appropriate colour scheme and/or GWDC

signs to indicate the ‘routine’ open/close position of (Toolpusher)
each valve

5.6 To verify the minimum BOP test frequency (as per GWDC

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No Subject Action Action Party

API policy) (Operation
Manager)

6 Hazardous Goods in 6.1 To ensure that only governmental approved vehicles GWDC Logging
Transport will transport hazardous goods and that IRAQ Comp.
regulations are strictly followed
To implement strict procedures
for all parties involved in 6.2 To ensure that governmental approval is applied for GWDC Logging
transport to ensure that when planning to transport RA sources Comp.
hazardous goods are
contained and handled 6.3 To ensure that acidic materials are adequately GWDC Logging
commensurate with the contained (e.g. double walled cylindrical vessels), in Comp.
associated hazard. particular during transport and loading/offloading.

To ensure that IRAQ 6.4 To ensure that the MSDS information is readily GWDC Logging
regulations are known and available and disseminated to crews and drivers Comp.
followed by all parties involved prior any shipment from source supplier
in transport of hazardous
goods 6.5 To ensure that packing material of any hazardous GWDC Logging
goods are in compliance with industry standards, fit- Comp.
for-purpose, allow safe handling and have been
checked prior application for transport

6.6 To ensure the Standard Operatingh GWDC Logging

Procedure(SOP) of handling RA sources in place Comp
and followed

7 Learning/sharing from other 6.1 Share the components from other same rigs in case GWDC
rigs of shortfalls emergedd Operating
Manager
To share and learn from other
rigs on the best drilling 6.2 A joint ERP drill with Client will be held to verify the GWDC
practices and safety ERP plan and resources. HSE Manager
performance
6.3 Share and learn incidents in other GW rigs. GWDC
Good Planning by Operation HSE Manager
Mgr/Logistics Mgr

1.4.6 Conclusions

The objectives for the Case described in Section 1.3.3.1 have been assessed against the
acceptance criteria of Section 1.3.3.3, as follows:

Demonstrate that suitable HSE management arrangements are in place to ensure that the
specification and conduct of the drilling and associated well services are fit for purpose and
safe for operation.

Industry standard frameworks were used to identify the essential arrangements of a HSE-MS that
need to be considered. Agreement has been reached amongst GWDC and PCIHBV of the
proposed arrangements and the required standards of design and operation. All parties are
committed to meeting these standards. All arrangements will be subject to continuous performance
monitoring, regular auditing and periodic management review to assure that practice meets the
agreed standards.

Demonstrate that all foreseeable major accident hazards have been identified and that
suitable and sufficient barriers and controls will be in place such that risks to people,
assets, environment and company reputation are ALARP:

The major accident hazards have been identified, based on comparisons with industry hazard
checklists and formal reviews by experienced staff of GWDC. Sufficient independent and effective
threat barriers, recovery preparedness barriers and escalation factor controls have been identified
to meet the acceptance criteria for hazards with the potential for consequences in the ALARP zone,
where it is practicable to do so. The HSE-critical tasks identified as essential to provide or maintain
these barriers and controls have been or will be included in appropriate written procedures, job

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safety analyses, working practices or training standards.

Demonstrate that continuous improvement in the management of hazards will occur in the
workplace:

Agreement has been reached between GWDC and PCIHBV on the required standards for
continuous improvement in the management of workplace hazards. All parties are committed to
meeting these standards. The management of workplace hazards will be subject to continuous
performance monitoring, regular auditing and periodic management review to assure that practice
meets the agreed standards.

1.4.7 Statement of Justification for Operations

Subject to the satisfactory implementation and any recommendations arising from a validation
audit, it is concluded that the objectives of Drilling HSE Safety Case using Rig GW52 have been
met and that it is considered safe to undertake the operations.

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