Systemic Management Systemic Management FailuresFailures

IN WELL CONTROL & WELL INTEGRITYIN WELL CONTROL & WELL INTEGRITY

Re-engineering metrics for project management

Presentation by Wayne Needoba –(Red / Yellow) Striving to Show the Elephant in the Room

Systemic Management Failures- Systemic Management Failures- SolutionsSolutions Learning Thru’ Stories of Metrics & Learning Thru’ Stories of Metrics & Multimedia Multimedia

Marlin Blowout Bass StraitEsso Australia Nov / 68

Key Biscayne SinkingEsso Australia Offshore WA – PerthEarly /83??

Montara BlowoutTimor SeaAugust /09

Systemic Management Failures Systemic Management Failures PTTEPAA MontaraPTTEPAA Montara• in its original Action Plan, PTTEP AA had not identified in its original Action Plan, PTTEP AA had not identified

the actions needed to address the systemic the actions needed to address the systemic organisational and governance issues that provided organisational and governance issues that provided the environment for the Montara Blowout to occurthe environment for the Montara Blowout to occur

• PTTEP AA has a plan that effectively responds to the PTTEP AA has a plan that effectively responds to the issues raised in the MCI and importantly the plan sets issues raised in the MCI and importantly the plan sets the company on the path to achieving industry the company on the path to achieving industry standards for both good oilfield practice and good standards for both good oilfield practice and good governance. “Success of PTTEP AA’s program for governance. “Success of PTTEP AA’s program for change will depend entirely on the quality of change will depend entirely on the quality of execution”execution”

Systemic Management Failures Systemic Management Failures PTTEPAA Montara Story – Sim OpsPTTEPAA Montara Story – Sim Ops

Industry culture is to focus on managing commercial risk, like mitigating the well development of costs, and competition (tendering) there is little transparency of the facts, so few lessons learned by the regulatory, the operator and the public.

Prior to the Montara Incident there were 8 kicks while drilling Montara wells

There is still a story to be told. Well control and well integrity reliability reliability have a geological hazard as a perceived risk.

Systemic Management Failures Systemic Management Failures BP MacondoBP Macondo

• the National Commission clearly define the National Commission clearly define "systemic management failures" as being a "systemic management failures" as being a dysfunction because of an inability to dysfunction because of an inability to communicatecommunicate

• changes to drilling procedures in the weeks changes to drilling procedures in the weeks and days before implementation were and days before implementation were typically not subject to any peer-review or typically not subject to any peer-review or MOC processMOC process. .

• decisions appear to have been made by the decisions appear to have been made by the BP Macondo team in ad hoc fashion without BP Macondo team in ad hoc fashion without any formal risk analysis or internal expert any formal risk analysis or internal expert review. This appears to have been a key review. This appears to have been a key causal factor of the blowoutcausal factor of the blowout..

The Well System - The Well System - MontaraMontara

Finding 2The installation of the cemented shoe was defective in that, after failure of floats/ valves located in the shoe apparatus, displacement fluid was pumped beneath the float collar which resulted in over‐displacement of cement from the casing shoe track and in the areaoutside the casing shoe (called the annulus).Finding 3The pumping back of this displacement fluid was contrary to sensible oilfield practice, and led to a so‐called ‘wet shoe’.

The result was that the cemented shoe lacked integrity as a barrier.*Note that the gas burp occurred months after the casing had been cemented.

Gas Leak through Floats

Casing shoe90 degreesHigh Porosity

It started with a burp

The Well System -The Well System - MacondoMacondo

Formation Dip High& High Porosity

The burp was a surge.

Common Factors – Common Factors – Production Casing Production Casing DesignDesignFloat Equipment Failure Unrecognized Well Float Equipment Failure Unrecognized Well ConditionsConditions

• Montara Finding 44 Had key personnel from both Montara Finding 44 Had key personnel from both PTTEPAA and Atlas (on‐rig and onshore) possessed a PTTEPAA and Atlas (on‐rig and onshore) possessed a greater level of knowledge and expertise in relation to greater level of knowledge and expertise in relation to cementing operations, it is likely they would have cementing operations, it is likely they would have detected (i) the problem with the cemented casing detected (i) the problem with the cemented casing shoe, thereby enabling remedial steps to be taken; shoe, thereby enabling remedial steps to be taken;

• Macondo - Integrity test failed to identify Macondo - Integrity test failed to identify communication with the reservoircommunication with the reservoir

• - Operations allowed the influx to enter and move up - Operations allowed the influx to enter and move up the well bore - well became capable of flowingthe well bore - well became capable of flowing

• - Rig crew response to well flow failed to control the - Rig crew response to well flow failed to control the wellwell

Management Systems Management Systems Drilling and Completion OperationsDrilling and Completion Operations

Defining Systemic Management Defining Systemic Management FailuresFailures

Relative to managing “Process Risk” with Relative to managing “Process Risk” with CertaintyCertainty

Seeing the Elephant in the Room Seeing the Elephant in the Room • What prevents D&C organizations What prevents D&C organizations reaching desired reliability. Focus on reaching desired reliability. Focus on commercial risk?commercial risk?

Current Collaboration ProcessesCurrent Collaboration ProcessesSeeing impact of the EITR Seeing impact of the EITR David Pritchard David Pritchard

BP Macondo Supervisors Criminally Negligent?Or everyone guilty, Business, Government, Individual.

Current Collaboration Processes Current Collaboration Processes Eg. JHAEg. JHA

HAZARD TYPE FACILITIES AND PERSON AT RISKWell Control - Low Risk. Oil in tubing Platform personnel - Note Emergency Response PlanStandpipe pressures in excess of 3000 psi Pump, standpipe and rig floor areasTripping - high T&D, no top drive. Rig floor personnel

Develop Methods to Eliminate or Control Perceived Risks1. Find a Better Way to Do the Job2. Review Job Procedure to Determine Possible improvements3. Study Environmental Changes if Procedural Changes Insufficient4. Consider Ways to Reduce Frequency of Performing the Job5. Familiarize yourself with the associated hazards of the job.Why is there not learning so loss control and death can be history on well operations?

Possibility to EliminatePossibility to Eliminate Systemic Management Failures in Complexity Systemic Management Failures in Complexity

USE WELL CONTROL AND WELL INTEGRITY FAILURES USE WELL CONTROL AND WELL INTEGRITY FAILURES to:to:

1.1 Strengthen 1.1 Strengthen Human Resources Quality thru’ Human Resources Quality thru’ empowerment using re-engineered metrics for project empowerment using re-engineered metrics for project management.management. 1.2 Review and Improve1.2 Review and Improve the Operator Business the Operator Business ProcessProcess

1.3 Improve reliability & quality of back end 1.3 Improve reliability & quality of back end Operations management Operations management using using new IT / using using new IT / Satellite / Internet TechnologiesSatellite / Internet Technologies1.4 Develop Operator Strategies and Values 1.4 Develop Operator Strategies and Values that Empower that Empower thru’ Community Development and thru’ Community Development and Sustainability ProgramsSustainability Programs

1.5 Create a zero tolerance attitude to work 1.5 Create a zero tolerance attitude to work process standards: process standards: industrial occupational health and industrial occupational health and operations safety, environmental, system quality operations safety, environmental, system quality (reliability / (reliability / Sustainability )Sustainability )

The Earth Model Well Evaluation – The Earth Model Well Evaluation – BOD BOD

(Drilling and Completion Basis of Design) (Drilling and Completion Basis of Design)

The Earth Model and Well System - BOD The Earth Model and Well System - BOD cont’dcont’d

POWER OF DIGITAL FILTERING POWER OF DIGITAL FILTERING AND INTERACTIVE MULTIMEDIA - AND INTERACTIVE MULTIMEDIA - Reading the Hole while drilling – Geological Reading the Hole while drilling – Geological Character Character • If wellbore pressure exceeds the fracture pressure, If wellbore pressure exceeds the fracture pressure,

lost circulation may occur. Any reduction in wellbore lost circulation may occur. Any reduction in wellbore pressure below pore pressure may cause an influx of pressure below pore pressure may cause an influx of formation fluids into the wellbore from permeable formation fluids into the wellbore from permeable zones. At wellbore pressures well above the pore zones. At wellbore pressures well above the pore pressure, wellbore stability may also become a pressure, wellbore stability may also become a problem.problem.

• Correctly predicting how pore pressure and fracture Correctly predicting how pore pressure and fracture gradient vary throughout the intervals to be drilled is gradient vary throughout the intervals to be drilled is critical to designing an effective casing program. critical to designing an effective casing program.

• Pore pressure/fracture gradient profiles are defined Pore pressure/fracture gradient profiles are defined from offset wells and modern prediction methods.from offset wells and modern prediction methods.

POWER OF DIGITAL FILTERING AND POWER OF DIGITAL FILTERING AND INTERACTIVE MULTIMEDIA INTERACTIVE MULTIMEDIA Reading the Hole Reading the Hole cont’dcont’d

POWER OF DIGITAL FILTERING AND INTERACTIVE MULTIMEDIA Reading the Hole Well Profile Well Character

POWER OF DIGITAL FILTERING AND POWER OF DIGITAL FILTERING AND INTERACTIVE MULTIMEDIA INTERACTIVE MULTIMEDIA Reading the Hole Reading the Hole

• ObservationsDrilling (CondDR26) required 8 days &

cost US$310,000. Running and cementing 20” Casing (CondR&C20) required 5 days & cost US$313,000.

An 8 ½” pilot hole was drilled to 1800 ft The formations were dispersing when drilled and making mud. A shallow hot water sand (350 to 500 ft) had flowline temperatures of 135 deg F led to an over run on mud and cement costs (Total cost of consumables for drilling fluids was US$63,000 and for cement was US$54,000). Mud engineering responded to thinning the high viscosity mud (MBT’s exceeding 15) by running 3-4% KCl and PHPA and diluting with desander and desilter on mud cleaner. The cement programme went from running a CaCl2 accelerator to running retarder.

POWER OF DIGITAL FILTERING AND POWER OF DIGITAL FILTERING AND INTERACTIVE MULTIMEDIA INTERACTIVE MULTIMEDIA Reading the Hole Reading the Hole Cont’dCont’d

• Connections were slow Connections were slow

• Drilling & tripping times were slow Drilling & tripping times were slow for three reasons:for three reasons:

• 1.1. Tesco top drive was new to Tesco top drive was new to the rig.. On connections with the rig.. On connections with stands, the traveling blocks had to stands, the traveling blocks had to be positioned very close to the be positioned very close to the crown. Also, drill tools had to be crown. Also, drill tools had to be picked up out of the mouse hole on picked up out of the mouse hole on a double or single. Long and short a double or single. Long and short bales had to be switched around. bales had to be switched around.

• 2.2. The weight on bit was The weight on bit was maintained around 10 kips to maintained around 10 kips to counteract any deviation tendencies counteract any deviation tendencies and to limit ROP’s for shallow gas and to limit ROP’s for shallow gas well control.well control.

• 3.3. Connections were reamed Connections were reamed twice to avoid bit balling.twice to avoid bit balling.

POWER OF DIGITAL FILTERING AND POWER OF DIGITAL FILTERING AND INTERACTIVE MULTIMEDIA INTERACTIVE MULTIMEDIA Reading the Hole Reading the Hole cont’d cont’d

Note Torque (yellow), WOB (blue on right graph) and Gas Units (purple right graph) erratic above 5200 ft

POWER OF DIGITAL FILTERING AND POWER OF DIGITAL FILTERING AND INTERACTIVE MULTIMEDIA INTERACTIVE MULTIMEDIA Reading the Hole Reading the Hole cont’dcont’d

Wellbore QualityFriction factorsWellbore QualityFriction factors

POWER OF DIGITAL FILTERING AND POWER OF DIGITAL FILTERING AND INTERACTIVE MULTIMEDIA INTERACTIVE MULTIMEDIA Reading the hole Reading the hole cont’d cont’d

Wellbore QualityFriction factors

POWER OF DIGITAL FILTERING AND POWER OF DIGITAL FILTERING AND INTERACTIVE MULTIMEDIA INTERACTIVE MULTIMEDIA Reading the Hole Reading the Hole cont’dcont’d

Wellbore QualityFriction factors

Well Bore Quality & Barrier Well Bore Quality & Barrier QualityQuality

OPERATING MODEL PROPOSEDOPERATING MODEL PROPOSEDON THE JOB LEARNING, ON-LINEON THE JOB LEARNING, ON-LINE

Reducing the Learning Curve On-line• Enhancing Human Resources & Business Process• Research Interactivity & Awareness Development

Improving Performance - Planned Vs. Actual• Process of Continuous Improvement • Planned and Managed Innovation and Change• Reduced Operating Costs and Greater Profitability Thru’ Optimizing Asset Value & Operational Efficiency.

Facilitating & Managing Learning - a Web Site• Knowledge management, Lessons Learned, Competency Development• Motivation and Empowerment including coaching and mentoring • Greater harmony in the company and community • Minimum waste, greater creativity, increased productivity• Commercially Self-sustaining through cost savings (benchmarking and planned Vs actual) promotion & e-commerce

The Act of Continuous The Act of Continuous ImprovementImprovement

The cycle of Continuous ImprovementStrategic Thinking Process

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Creative•Economic & Societal Change

Explorative•Regionalism and Cooperation•Cultural Change

Ethical•Auditing for Sustainability•Product Stewardship

Proactive•Diplomat & technical systems•Integrated Management Systems•HESQ Auditing

AcquiredKnowledgeSkillsConcepts

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Proactive•Diplomat & technical systems•Integrated Management Systems•HESQ Auditing

AcquiredKnowledgeSkillsConcepts

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Job Analysis incorporates:TIME, SEQUENCE, RISKS AND HAZARDS, EQUIPMENT & CONTRACTS, PLANNED SEQUENCES

•Domain Expert has experience

•Visualizes the project jobs planned and analyses them.

•Team Builds - develops communication lines between:•departments / employees •technology specialists for planning and research, •consultants and• third party contractors

•Verifies the key indicators for monitoring•Liaises with Management & HRD to set Research and Training Strategies•Participates in operational surveillance

Job Analysis incorporates:TIME, SEQUENCE, RISKS AND HAZARDS, EQUIPMENT & CONTRACTS, PLANNED SEQUENCES

•Domain Expert has experience

•Visualizes the project jobs planned and analyses them.

•Team Builds - develops communication lines between:•departments / employees •technology specialists for planning and research, •consultants and• third party contractors

•Verifies the key indicators for monitoring•Liaises with Management & HRD to set Research and Training Strategies•Participates in operational surveillance

Disciplines of a Learning Organisation(Quoted from The Fifth Discipline – The art and practice of The Learning Organizaion – Peter Senge)

• Systems Thinking (in conjunction with satellite and web communication, interactive multimedia, and collaborating data bases)

• Personal Mastery (competence including awareness of responsibilities on issues of Health, Environment, Safety and quality (HESQ)).

• Mental Models (thinking, actualising, creating, innovating based on awareness of HESQ issues and intrinsically motivating feedback).

• Building Shared Values (managing cultural and behavioural change)

• Team Learning (developing group IQ through strong EQ (emotional literacy)).

Disciplines of a Learning Organisation(Quoted from The Fifth Discipline – The art and practice of The Learning Organizaion – Peter Senge)

• Systems Thinking (in conjunction with satellite and web communication, interactive multimedia, and collaborating data bases)

• Personal Mastery (competence including awareness of responsibilities on issues of Health, Environment, Safety and quality (HESQ)).

• Mental Models (thinking, actualising, creating, innovating based on awareness of HESQ issues and intrinsically motivating feedback).

• Building Shared Values (managing cultural and behavioural change)

• Team Learning (developing group IQ through strong EQ (emotional literacy)).

Planned Vs Actual - Work ScopeSequence Monitoring - Benchmarking

Methodology•Comparing Planned Vs Actual and sharing lessons learned

•Recognizing Root Cause of Failure

•Researching and Creating new ideas

•Passing on Experience

•Using Innovative Technology

Purpose:Continuous Improvement - Working more Cleverly to reduce operating costs & enhance asset valueBenefit:Reduces Learning Curve, Maximizes Operational Efficiency & AssetValue for maximum, sustainable profit to company and community.

Planned Vs Actual - Work ScopeSequence Monitoring - Benchmarking

Methodology•Comparing Planned Vs Actual and sharing lessons learned

•Recognizing Root Cause of Failure

•Researching and Creating new ideas

•Passing on Experience

•Using Innovative Technology

Purpose:Continuous Improvement - Working more Cleverly to reduce operating costs & enhance asset valueBenefit:Reduces Learning Curve, Maximizes Operational Efficiency & AssetValue for maximum, sustainable profit to company and community.

Planned Vs Actual-Performance MetricsKey Indicators - Cost, Time, HESQ

Purpose:Measurables of Performance - Rewards / CompensationBenefit:Motivation to be clever

Methodology - Reward System•Management (Cost Savings - less time, less consumption)

•Staff (Job Satisfaction, Ownership, Compensation)

•Consultants (Job Satisfaction, Ownership, Compensation)

•Contractors (Incentives, Ownership, Compensation)

Planned Vs Actual-Performance MetricsKey Indicators - Cost, Time, HESQ

Purpose:Measurables of Performance - Rewards / CompensationBenefit:Motivation to be clever

Methodology - Reward System•Management (Cost Savings - less time, less consumption)

•Staff (Job Satisfaction, Ownership, Compensation)

•Consultants (Job Satisfaction, Ownership, Compensation)

•Contractors (Incentives, Ownership, Compensation)

The Matrix Organisation Achieveing Sustainable Energy PractisesOverview of Integrated Functions & Systems

CompetenceSocial Responsibility

Assessment & Skills (SHAWPAT)Feedback–Lessons Learned

Certification (TISI-SPE)Continuous Improvement

Research & DevelopmentDiscovery & Innovation

Trends & PatternsGap Analysis &Problem Solving

New Technologies

CollaborationKnowledge Management /

Education / FeedbackCreating Learning

Organisation (EON)(Scorecard / KPI / Benchmarking)

OperationsDue Diligence

Feasibility-Case StudiesDesign & ConstructionPlant operations and

Maintenance Planning & Management

Global Trading

Commercial Administration and Marketing

Finances and AccountingCommunications & Management

Investment & Return onNew Projects & Systems

UNITY ALLIANCESSunflower-life Styles

SYSTEMS THINKINGBEST PRACTISES

MOTIVATION & COMPETENCYRELATIONAL EQUITY MANAGEMENT

DUE DILIGENCE & FEASIBILITY

PROJECT COORDINATING

PROJECT COORDINATING

Way ForwardWay Forward Creation of Bureau Service – Creation of Bureau Service –

SPE & Universities.SPE & Universities.Pilot Project Agenda:

1. Demonstrate the Challenges using the existing well planning, well surveillance / well control and materials / contract monitoring system.

2. Allow for a comparison between the existing and an on-line analytical data base and feedback system (pro vs cons)

3. Create the alignment between the proposed tools Internet and IT systems (with, Mindmapping etc)

4. Conclude with a plan for Corporate Operators to achieve competence in reaching the stated Corporate Objectives and Values

FacilitateFacilitate the Learning by: the Learning by:Creating Alertness to Hazards so perceived Creating Alertness to Hazards so perceived

risks can be managedrisks can be managed..1.Strategic Review for Achieving Competence

The goals of “needs analysis” is to go across the organizations to evaluate communication and collaboration processes, jobs and people. Its expressed a little bit in the words below in relation to having well control while drilling.

“To be competent in well control, a supervisor is responsible for discerning what is relevant information, then disseminating it to relevant key personnel. The quality of information transfer is measured by how close it is to what is really happening.  A loss of orientation, e.g. due to decisions that follow incomplete or inaccurate data, and its poor interpretation (if it isn't actually happening), is a major reason for loss of control to occur”

Ensuring there are competence in people and effective systems to collect, collate and disburse the data from drilling outcomes down hole to others in the system, leads to optimum performance and lessons learned.

Note Conclusions “Disastrous Decision” Dr. Andrew Hopkins

2.2. Establishing a web portal for facilitation Establishing a web portal for facilitation & execution of a well & execution of a well determining root determining root cause and using open collaborationcause and using open collaboration

• Interlink databases and Operator / Contractor Interlink databases and Operator / Contractor systemssystems..

• Demonstrate how program feedback on line can Demonstrate how program feedback on line can enhance performance through reduced learning enhance performance through reduced learning curvescurves

• Use multi functional and interdepartmental Use multi functional and interdepartmental collaboration to enhance system creativity.collaboration to enhance system creativity.

• Create a motivational and empowerment feedback Create a motivational and empowerment feedback system in relation to the issues of Health, system in relation to the issues of Health, Environment, Safety & Quality “best practices”.Environment, Safety & Quality “best practices”.

FacilitateFacilitate the Learning by:the Learning by: cont’dcont’d

3.3. Create Interactive Alliances with the Create Interactive Alliances with the Suppliers and Contractors through a Suppliers and Contractors through a Materials Management systemMaterials Management system and and Chart of Accounts Chart of Accounts

Using a material and time indexed data base, track Using a material and time indexed data base, track all usage and cost of contractor activities and all usage and cost of contractor activities and material & equipment usage by:material & equipment usage by:

– Contractor name and equipment nameContractor name and equipment name– Contract number and purchase orderContract number and purchase order– Requisition and Receipt Requisition and Receipt – Use and Consumption by well activity, phase Use and Consumption by well activity, phase

and hole sizeand hole size– Consignment, Lost In Hole, Waste / NPT, Consignment, Lost In Hole, Waste / NPT,

FailureFailure– Environmental impactEnvironmental impact

Facilitate the Learning by: Facilitate the Learning by: cont’dcont’d

4.4. Demonstrate using Domain Experts, Demonstrate using Domain Experts, Mentors & Champions through pilot Mentors & Champions through pilot projects, assessment and induction projects, assessment and induction Programs by:Programs by: - - Induction to the rig siteInduction to the rig site

– Best Practises Training incorporating “Stop for Best Practises Training incorporating “Stop for Safety” “TRUE” and HSE meetings used by Safety” “TRUE” and HSE meetings used by operator and contractorsoperator and contractors

– Demonstrating a computer based personal Demonstrating a computer based personal assessment and continuous improvement assessment and continuous improvement process incorporating all project functions and process incorporating all project functions and personnel.personnel.

– Encapsulate HESQ in Technical and Logistical Encapsulate HESQ in Technical and Logistical initiatives for all company, contractor and initiatives for all company, contractor and community participants.community participants.

Facilitate the Learning by: Facilitate the Learning by: cont’dcont’d

Obtain Approval from & involve Obtain Approval from & involve Regulator & Standards Regulator & Standards

OrganizationsOrganizationsPilot Projects Incorporating Social Pilot Projects Incorporating Social

ResponsibilityResponsibility• Operator and Regulator target revitalization Operator and Regulator target revitalization of Brownfields to significantly enhance of Brownfields to significantly enhance resource objectives. Incorporate initiatives resource objectives. Incorporate initiatives leading to a “Brownfield Focus” in Oil and leading to a “Brownfield Focus” in Oil and Gas Development.Gas Development.Changing Focus

Involving Migas, BP Migas, PSC’s and Academia.

Macro Focus Operational Focus

Production Profile

Brownfield Micro Focus

Conclusion: Conclusion: Opportunity Cost for Opportunity Cost for Achieving Competence thru’ a Pilot Project Achieving Competence thru’ a Pilot Project

• A one well project with a budget in excess of 7 million A one well project with a budget in excess of 7 million dollars so savings from optimizing performance in range of dollars so savings from optimizing performance in range of 1 million dollars – 1 million dollars – Sufficiently significant to create a Sufficiently significant to create a Realization Realization

• Attitude & PractisesAttitude & Practises of the drilling contractor are of the drilling contractor are synergisticsynergistic with the Goals and Policies of Star Energy with the Goals and Policies of Star Energy

• ““Drilling Supervisor” could play the role of Drilling Supervisor” could play the role of “Domain “Domain Expert” Expert” while ensuring operational responsibilities are while ensuring operational responsibilities are metmet..

• All Functional Specialists mentioned share cost for creating All Functional Specialists mentioned share cost for creating the learning system, Miscellaneous Expenses for Corporate the learning system, Miscellaneous Expenses for Corporate would include:would include:

1.1. Strategic RevisionsStrategic Revisions2.2. Establish Web Portal and Integrating with secure IT systems (Cloud Establish Web Portal and Integrating with secure IT systems (Cloud

Computer Technology.Computer Technology.3.3. Create Interactive Alliances with Materials / Third Party Management Create Interactive Alliances with Materials / Third Party Management

SystemSystem4.4. Demonstrating Use of Domain Expert, Mentors, Champions and Induction Demonstrating Use of Domain Expert, Mentors, Champions and Induction

/ Assessment for Continuous improvement/ Assessment for Continuous improvement

1.1 Strengthen Human Resources Quality through:1.1 Strengthen Human Resources Quality through:

– Implementation and internalization of corporate culture. Implementation and internalization of corporate culture. Establish plan and method of “affective internalization” . Establish plan and method of “affective internalization” .

– Develop a “Affective” Manpower Development and Continuous Develop a “Affective” Manpower Development and Continuous Improvement Learning Process for the organization, Improvement Learning Process for the organization, contractors, suppliers and adjacent community based on core contractors, suppliers and adjacent community based on core purposes and competencies. purposes and competencies.

– Rotation of key personnel. Management team to identity the Rotation of key personnel. Management team to identity the people and establish a plan for appropriate leadership for people and establish a plan for appropriate leadership for each situation.each situation.

– Selective positioning of appropriate “project coordinator” for Selective positioning of appropriate “project coordinator” for each new project requirement or to strengthen the each new project requirement or to strengthen the organization performance. organization performance.

1.2 Continue to review and to improve the 1.2 Continue to review and to improve the Corporate Business ProcessCorporate Business Process

– Assure efficiency and best corporate practices. Operation dept Assure efficiency and best corporate practices. Operation dept and Support departments to conduct a review of major impact and Support departments to conduct a review of major impact business processes as a “gap analysis” business processes as a “gap analysis”

THOUGHTS - CORPORATE OBJECTIVES TO ASSURE CERTAINTY IN WELL CONTROL AND WELL INTEGRITY RISK MANAGEMENT

1.3 Improve quality of employees’ understanding and 1.3 Improve quality of employees’ understanding and familiarization with the Company IT and ERP system familiarization with the Company IT and ERP system across the organization to enable them to utilize the across the organization to enable them to utilize the system effectively.system effectively. Conduct familiarization training for everyone with cost monitoring Conduct familiarization training for everyone with cost monitoring and budgeting process, logistic and procurement and HR system.and budgeting process, logistic and procurement and HR system.Coordinator : Sr. Mgr Engineering/ IT ManagerCoordinator : Sr. Mgr Engineering/ IT Manager

1.4 Develop Company’s strategy and Policy on 1.4 Develop Company’s strategy and Policy on Community Development and Relation ProgramsCommunity Development and Relation Programs that that will support the Company long term strategy and objectives. will support the Company long term strategy and objectives. Coordinator : VP Admin/ Ext Rel MgrCoordinator : VP Admin/ Ext Rel Mgr

1.5 Maintain high standard of industrial safety and 1.5 Maintain high standard of industrial safety and environmental practice: Zero Fatalities, Zero Lost environmental practice: Zero Fatalities, Zero Lost Work Cases, Zero Oil Spills and 100% compliance to Work Cases, Zero Oil Spills and 100% compliance to the globally recognized Environmental Standardsthe globally recognized Environmental Standards. . Coordinator : VP OperationCoordinator : VP Operation

THOUGHTS - CORPORATE OBJECTIVES THOUGHTS - CORPORATE OBJECTIVES IMPROVEMENT IMPROVEMENT – cont’d– cont’d