world of seadrill sept 2010

INFORMATION TO ALL EMPLOYEES IN SEADRILLNUMBER 5 • SEPTEMBER 2010

One common company standardfor well integrityand well control

The WorldSeadrillO

F

Following Seadrill’s recent acquisition of themajority ownership in Scorpion Offshore,Rune Magnus Lundetræ and myself have beenappointed to assume management control ofthe company and guide the eventual transitionof its seven jack-up units into our fleet.

I have been appointed president and CEOand Rune Magnus CFO. Our plan is to continueto run Scorpion as a going concern from itsHouston headquarters until year-end 2010, atwhich time the rigs will be assigned directlyinto the Seadrill worldwide operatingdivisions. At this time core Seadrill systemsand practices will be switched on.

As we prepare for this transition our mostfundamental challenge will be to collaborateeffectively with our corporate groups inStavanger and the receiving divisions toensure that we can effect a smooth andseamless transition.

Scorpion is a company much like Seadrill:born only one day apart in 2005 and built fromscratch into a respected and successfulinternational drilling contractor. And likeSeadrill, Scorpion has been staffed bothonshore and offshore by a group of seasonedindustry professionals with a desire to buildsomething special.

In this aspiration they have been verysuccessful, with seven modern Super 116 jack-up units delivered on time and within budget.HSE, uptime and client satisfactionperformance have also been impressive, withOffshore Courageous once again earning thehighest ranking from Shell amongst all theirinternational contractors.

Preparing for the merger

As is the case whenever companies combine,there is the inevitable rationalisation ofcorporate and field organisations withunfortunate redundancies.

We have tried to be frank with all Scorpionemployees, making it clear that the rigmanagement teams and the offshore crews willbe largely unaffected during the transition,while all staff members in the Houston office

have been informed of their anticipated statusthrough and beyond the transition period.

We will continue to communicate asopenly and frankly as possible as thetransition continues and new situationsdevelop.

To those whom Seadrill will be unable toabsorb within our future organisation weextend our thanks and appreciation for theirdedicated service and contributions in makingScorpion successful.

For those who will be a part of Seadrillgoing forward we say, Welcome aboard.

Change is always difficult and althoughthe corporate identity of Scorpion will soonbecome extinct, the spirit of ‘It's all about thePeople, always has been, always will be’ alignsperfectly with the values of Seadrill and willlive on as a tribute to those who have built thiscompany.

We will respect this legacy as we moveforward in continuing the phenomenal growthand success of Seadrill.

2

Change is always difficult and althoughthe corporate identity of Scorpion willsoon become extinct, the spirit of ‘It'sall about the People, always has been, alwayswill be’ aligns perfectly with the values ofSeadrill.

Tim JuranPresident and CEOScorpion Offshore

Scorpion joinsSeadrill’s ranks

3THE WORLD OF SEADRILL • NUMBER 5 SEPTEMBER 2010

Front page:

Rig conceptsIllustration:

Seadrill

Editor: Tove Aasberg. Tel +47 51 30 99 05. English editor: Nick Terdre. Editorial staff: Hilde Waaler and Tove Aasberg. Distribution: Gro Leikny Forgaard.Layout: Melvær&Lien The Idea Entrepreneur. Printing: Grafo, Stavanger. Printed on environmentally-friendly paper. Reproduction only by permission from the publisher.Circulation: 5400. This issue went to press: 30 August 2010. Next issue will be published: 5 October 2010. Responsible publisher: Seadrill Management AS. Public Relations. Lokkeveien 111. P.O. Box 110. 4001 Stavanger, Norway. Tel: +47 51 30 90 00. E-mail: [email protected]. Web: www.seadrill.com

Delivering outstanding performance requiresexceptional people. In Seadrill we focus on merit-based, long-term career development. Our goal isto develop our employees to have the highestoperational and leadership capabilities in theindustry. We recruit people around the world, inthe countries where we operate and arecommitted to a diverse workforce. Today we havecolleagues of over 50 different nationalitiesaround the world.

Crucial to our success is that we possess theright competence at all levels. We have investedin some of the most advanced drilling rigs in theindustry and these units cannot run themselves.We are dependent on having skilled and trained

people who know how to operate every piece ofequipment down to the smallest item. We arefocusing and investing further in competencedevelopment, providing our people with formaltraining (we have already run some pilots of abest-in-class offshore leadership programme thisyear and after assessing the feedback will plan to

launch this across our world) and a broad rangeof experience to build competence strength andoptimise operational performance. Investing inour people creates a sustainable source ofcompetitive advantage in developing thecompany further.

Operational excellence is key. But above all,remember the main objective now and always isto make sure no-one gets hurt working forSeadrill.

Alf C Thorkildsen CEO Seadrill Management AS

As stated earlier our clear ambition is to develop Seadrill further. To do this we must demonstrate that we candeliver top operational performance. In this context we have identified five areas which will be vital in order forus to succeed (see illustration). Previously in The World of Seadrill we have focused on Safety, Uptime, Costs andCustomer satisfaction. This time we will close the circle and address People.

How do we ensure wellintegrity and well control?

CO

NTE

NTS

4Ready for call-outat any time 8

West Callisto named in Singapore 6

Contracts signed to value of some US$1.8 billion

“The biggest agreement I’ve ever signed,” said

Sveinung Lofthus, vice president Europe, front

row left, when on August 25 he signed contracts

with Statoil worth around US$1.8 billion exclu-

ding options. The contracts cover West Epsilon,

West Elara and West Venture.

“It’s a success for both sides that we can today

sign long-term contracts,” said Anders Opedal,

head of procurement, front row right, who sig-

ned on behalf of Statoil.

“This is an extension of the long coopera-

tion Statoil has had with Seadrill and still has,”

said Geir Slora, Statoil’s head of drilling. “We

look forward to cooperation with an even higher

degree of safety, higher efficiency and lower

costs.”

“This is a happy day for us, but fine words

along don’t bring results,” said Lofthus.

“Together with my onshore and offshore teams

we will meet Statoil’s expectations.”

“An extremely important agreement for

Seadrill, and we hope we will also have the opp-

ortunity to work with Statoil in other parts of

the world,” said COO Per Wulff.

4

Seadrill began this work some time before theMacondo accident, but it was intensified follow-ing the catastrophe. In its well control work thecompany has also gone through the Montaraincident.

Seadrill has set minimum requirements forwell integrity and well control which emphasisethe general requirement of at least two clearlydefined and proven well barriers in place at alltimes. With regard to specific requirements, theclient’s well programme must be reviewed, with a special focus on barriers, by competentSeadrill personnel and verified againstNorsok D-010, Well Integrity in Drilling and WellOperations, as well as against the Seadrill WellControl Manual and, when relevant, the SeadrillHPHT Manual, before execution. The work relatedto the latter two started back in January this yearand was finalised in July.

Competence is the key to a safe andeffective operation and it is the drilling sectionleader’s responsibility to ensure that the drillcrew is fully capable of reacting promptly andcorrectly when any abnormal situation orindication thereof is detected.

If a loss of well control situation occurs, theSeadrill Well Control Manual and Seadrill HPHTManual must be followed. If the bridging docu-ment dictates that the client’s manual should befollowed, a gap analysis must be performed tofully document that Seadrill’s minimum require-ments have been met. A deviation request mustbe approved by the local divisional vice presi-dent before operations can start.

“To ensure that the safety of people onboard and the integrity of the rig are notcompromised, all instructions to the drill crewhave to come through our line of command,which implies that our personnel have beeninstructed not to take any direct orders fromclient representatives,” says COO Per Wullf.

In order to secure a safe operation it is vital that all Seadrill units operate to the higheststandards regarding well integrity and well control in drilling and well operations. A wideand detailed reassessment encompassing equipment, systems, processes and crew competence has been carried out.

A well control handling questionnaire was sent

out in May to identify the standard of equipment

and systems, processes and procedures and crew

competence. Results from the reassessment have

been developed into a corporate directive and rig

specific action points which will ensure

consistent practice worldwide.

SEADRILL INTERNATIONAL

How do we ensure well integrityand well control?

REPORT: TOVE AASBERGPHOTO: JAN ROAR SOLHAUG


A lot of work went into the development of thetwo manuals. The HPHT manual has been inexistence for some time and so only needed tobe updated, while The Seadrill Well ControlManual required a more extensive process.

The work began last January when all thewell control manuals from the differentdivisions were gathered in. “We took the mostimportant elements, developed them furtherand put them into a common manual – TheSeadrill Well Control Manual – which wascirculated for comment,” says Reidar Kallesten,drilling and well control manager.

“We got a lot of good feedback andamplification of the content as well assuggestions on how to improve it. The greatinvolvement and professionalism shown by ourcolleagues around the company gave us extrainspiration in the important work of developinga common standard across the company.”

A day-long video conference was held withparticipants from different parts of thecompany in which the comments werereviewed in order to reach a consensus onwhich should be included in the manual. A lotof work still remained and a lot still had to becoordinated to get the content well structured.“After all, the manual is in a way, to use apopular phrase, the ‘bible’ for how we shouldact at all times with respect to well control,”says Kallesten.

Norsok D-010

The standard introduced by the company isNorsok D-010, which covers all eventualities inconnection with well integrity and barrierelements. “The quality in this document is thatthis approach puts the emphasis on the usersbeing proactive, as is thoroughly and clearlyillustrated in this standard,” he stresses.

“We are in the process of preparing ane-learning programme which deals with wellcontrol. We will make two animations – onewhich shows what happens when the wellsignals are not interpreted correctly andunderstood, and one which shows whathappens when the barriers are in place. Thiswill be an aid to ensuring further competencebuilding.


One common company standard July saw the introduction of a company-wide directive known as Well Integrity and WellControl, which contains the Norsok D-010 standard, along with the well control manualsThe Seadrill Well Control Manual and The Seadrill HPHT Manual.

REPORT: TOVE AASBERGILLUSTRATION: NORSOK

Two barriers. The first barrier is the fluid in the

hole which controls the formation pressure. The

second is the casing, cement, plugs and BOP.

Both of these must be intact. If one of the barriers

is threatened, you must call a halt and re-

establish it before proceeding with the operation.

“The rig manager for each unit will takecare to verify that directive and manuals areimplemented and understood. We must createownership of the manuals. This is a livingdocument, and the well control manual is dueto be revised in the first quarter of next year,and we encourage everyone to let us havetheir relevant input,” says Kallesten.

“We have established a commonapproach across the company so theoperating companies we work for around theworld will meet the same approach regardlessof region or type of rig.”

Kallesten has been offshore and seen thenew approach in use. On West Navigator hereceived positive feedback from operatorShell. The company has also received positivefeedback on the well control manual fromPetroCanada.

Source: Norsok D-010 standard

6

Construction of Seadrill’s first newbuild jack-up drilling rig, West Ceres, began at this yard,coinciding with the establishment of thecompany, and this year we celebratedSeadrill’s fifth birthday.

Seadrill’s relationship with Keppel FELS(previously as Smedvig) dates back a longtime and includes the construction of jack-ups, tender barges and semi-tenders.

As Tong Chong Heong, chief executiveofficer of Keppel Offshore and Marine,pointed out in his speech at the namingceremony: “Together, Keppel and Seadrillhave been setting the global standard inoffshore drilling since 1993. Our win-winpartnership has yielded a fleet of 14exceptional rigs worth US$1.5 billion.”

West Callisto is the fifth KFELS B Class rigdelivered to Seadrill. Developed by Keppel,the B Class design provides maximum uptimewith reduced emissions and discharges. Forits environmentally-friendly features thedesign has gained the prestigious engineeringaward bestowed by the Institution ofEngineers in Singapore.

Immediate start of operations

Ian Shearer, senior vice president Jack-upsAsia Pacific and Middle East, underlined inhis speech that, “Our operational experience

with KFELS B Class has been impressive, andall of our rigs have been able to start workimmediately without downtime. We expect thesame, if not more, of West Callisto when shebegins her first assignment.

“We have incorporated the learning fromour operational experience into the design ofWest Callisto. In addition to the standard-isation of equipment, the rig features fit-for-purpose off-line pipe-handling and stand-building, enhanced mud systems, improveddeck layouts and greater capacities," saidShearer.

“This allows us to transfer crews,operating procedures, maintenance routinesand inventory policies almost directly fromour existing units. Not only does this facilitatethe high performance customers expect fromthese premium rigs, but also saves time andminimises post delivery ’teething issues’,which enhances the predictability of ouroperational reputation. Most importantly, wehave observed that it leads to improved safetyoutcomes.”

Shearer congratulated the constructionteam and said he was pleased to acknow-ledge that the construction of West Callistowas completed with more than two millionman-hours without a lost-time accident. “Thisis a tremendous achievement and one, Iknow, that project manager Bryan Toh and ourproject manager Gerasimos Ntokos and theirrespective teams are rightly proud of.”

West Callisto is contracted to Premier Oilin Indonesia. The programme in the NatunaSea has an anticipated firm duration ofaround 230 days with extension options ofapproximately 180 days.

“Our West Callisto team is prepared andrelishing the challenge of working for PremierOil and demonstrating the benefits, not just ofthe latest in drilling equipment, but also ofthe improved management and execution ofour business,” Shearer concluded.

REPORT: HILDE WAALERPHOTO: KEPPEL FELS

SEADRILL SINGAPORE

West Callisto named in SingaporeYet another milestone for Seadrill was passed when West Callisto, the fifth jack-up rig to be deliveredfrom Keppel FELS, was named on July 24.

Lady sponsor Mrs Poespawardhani Priyono, wife of Mr R Priyono, chairman of BPMigas, named Seadrill’s latest jack-up rig West Callisto during a ceremony at

Keppel FELS, Singapore.

West Callisto.


The rig departed the Jurong shipyard on April21, just one day after delivery. The projectteam delivered the rig one week ahead of theirschedule. With a full load of critical spares anda full complement of qualified crew, it set sailfor Brazil.

“The whole mobilisation period was verybusy as the operations team took theopportunity to assert their ownership ofequipment in an atmosphere of ’now it’s downto us’. Due to the excellent job done by theproject team, we just had a few third parties onboard, a fact that clearly shows that Seadrill istaking the best out of the lessons learned,”says rig manager Luis Mariano.

“During mobilisation the crew workedhard to ensure we would be fully compliantwith the numerous Brazilian regulations, aswell as client requests, based on the previousintakes of West Polaris, West Eminence andsister-rig West Taurus.

“These previous intakes were key toensuring that West Orion came on contract onJuly 18, just 11 days after its arrival in Rio deJaneiro. This is not only notable for the veryshort time taken but even more so if we takethe current scenario, following the DeepwaterHorizon incident, into consideration.

“Environmental bodies all over the globe,including Brazil, are taking a stricter line, likethe client itself, which has become extremelydemanding and intolerant of even smalldiscrepancies. Seadrill has one of the lowesttimes as benchmark for rig acceptances amongour competitors, and the West Orion intakecontributed to lowering it even further,” saysMariano.

Upon arrival in Brazil the rig passedthrough health authorities’ acceptance,followed by customs and immigrations. “Webunkered and then received the Brazilian Navyinspectors on board, while in town, a pre-acceptance meeting with the client was takingplace to ensure nothing could go wrong. A lotof effort from Houston was put into supportingthe rig at this critical moment. These were longand hectic days for the Rio office as well, toensure the rig was imported in a timely fashionand critical equipment for the acceptanceprocess was on board,” Mariano says.

“Petrobras were very thorough, especiallywith regard to the subsea discipline. The client

openly considers West Orion acceptance to bethe benchmark in terms of organisation. This isvery rewarding for Seadrill which reconfirms itsposition as one of the key partners of thishighly demanding client,” Mariano says.

“It is a successful chapter for Seadrill butwhile celebrating this we have to keep workinghard. This was just the initial episode in a longhistory that will take a lot of efforts and focusfrom our people to operate this rig safely andefficiently,” Mariano says.

The West Orion team thanks the companyand their colleagues for all the support andteamwork they have enjoyed on four differentcontinents over the last 12 months.

Since July 18 the rig has been operating with uptime of around 96 per cent.

SEADRILL BRAZIL

West Orion, the ninth conse-cutive ultra-deepwater newbuild,starts work off BrazilIn mid July the deepwater semi West Orion commenced drilling operations offBrazil under a six-year contract with Petrobras.

REPORT: TOVE AASBERGPHOTO: RICARDO ZINNER

West Orion is

Seadrill’s fourth rig

in Brazil. The others

are the sister-rig

West Taurus,

West Eminence and

West Polaris.

8

Lars Fjellgård, offshore installation manager onWest Phoenix, left, and his son Ken Lyder, DPoperator on West Venture, are two mainstaysof the Mandal sea rescue corps. “It’s an interesting,exciting and valuable hobby,” say father and son.

The skerriesoff southernNorway.


Five years ago Lars, who lives in Mandal,received a telephone call from the NorwegianSociety for Sea Rescue (NSSR) in Oslo,enquiring whether there would be any interestin starting up a local sea rescue corps inMandal. Why? The waters off the town onNorway’s southern coast offer manychallenges, with deceptive underwater skerries,rapid changes in wind and weather and strongcurrents, which often make the sea quiteunpredictable. There is a large number of boatsto be found in the southernmost part of thecountry, and in summer several thousandpleasure boats will be out at sea.

Lars took up the challenge from the NSSR,and in just two weeks he had gathered together35-40 volunteers and found a boat. “That’s aworld record in establishing a sea rescuecorps,” was the comment from Oslo.

The Mandal sea rescue corps had its roots

in the emergency response group of the localboat club of which Lars is the chairman. Therequirements for taking part are that youshould be in good health and have had first-aidtraining. To take charge of the RS Hvaler rescueboat requires pleasure boat certificate D5L,which applies to boats of more than 15 metres.Currently the corps has 11 crews of three orfour members in which at least one of them hasthis certificate.

These 11 crews provide emergencyresponse 365 days a year, 24 hours a day, inthe Mandal skerry region, which stretchesalmost 50 kilometres east to west. Those onwatch must be able to muster in 30 minutes.This is voluntary work, so the corps membersreceive no pay. “We get good support from theMandal local authority,” says Lars. “They havenever said ‘no’ to us. We have a favourableagreement with the harbour authority wherebywe pay a cheap rent for an office, and we havea free berth.”

On a call

The sea rescue corps often assists vesselswhich have engine or propeller problems, orwhich have gone aground and so need to betowed to shore. “We find out we’re doing agood and important job when we arrive torescue people,” says Lars. “Fear turns to smilesand relief and everyone is very grateful that we

could come to their rescue.”The boat, properly called Hvaler RS124,

has advanced navigation equipment and canmake more than 30 knots when necessary. Itlies well in the sea in all conditions. The boatoften goes into action with other rescue boats,or together with the rescue helicopter, to helpboats in difficulties. Much of their work alsoinvolves transporting injured guests from theholiday cabins to the doctor or assisting thefire brigade when fire breaks out on one of theislands in the skerry region. “I’ve taken part ina number of special call-outs when someonehas unfortunately suffered a tragic fate, butluckily not many,” says Lars.

“We have asked the coastal administra-tion to improve the signing in the area, but theyhave no money, so as of now it is only the mainsea lane which is marked.”

Useful work experience

“My job in Seadrill has given me the opp-ortunity to acquire useful and updated skills inemergency preparedness and first-aid.Offshore we have weekly training, for example.

Many of the corps members work in supplyor rigs and so they have long and useful emer-gency response experience. They come from amaritime background and know how to use theequipment on RS Hvaler.

”Also in the corps are Seadrill colleaguesPer Rosseland, DP operator on West Navigator,and Lars’ son Ken Lyder, who is DP operator onWest Venture.

On the top of Lars’ wish-list for equipmenton the boat is a heat-seeking camera. “Wewould put that to good use in our rescue work,”he says.

“Without any question I can recommendcolleagues to become involved in a voluntarysea rescue corps like this. In Norway they existall along the coast. They all need members withexpertise. So if this is something you can imag-ine doing, get in touch with the corps nearestto where you live and offer your services,”urges our committed leader from Mandal.

In his free time Lars Fjellgård, offshore installation manager, West Phoenix, is very involved in the Mandal sea rescue corps, of which

he is the head as well as skipper of rescue craft RS Hvaler.

REPORT: TOVE AASBERGPHOTO: ODD ARNE PAULSRUD AND TOVE AASBERG

Lars Fjellgård, OIM

West Phoenix, has a

burning commitment

to sea rescue.

During summertime in Mandal, many boat-borne tourists pay the town a visit.

Ready for call-outat any time

“We were tasked by BP to install two free-standing riser (FSR) units that were success-fully deployed at the Deepwater Horizon spillsite. Each FSR was to be used as a weathercontingency that would allow connection to afloating production, storage and offloadingunit that would continue to capture oil fromthe well in case of inclement weatheravoidance. All departments worked together,and both FSRs were deployed in a timelymanner and without incident,” says rigmanager Steve Wascom.

The FSRs are still installed as a contin-gency while BP continues to work towardskilling the Macondo well and retrieving theDeepwater Horizon’s BOP.

West Sirius also installed all six of theriser tensioners, which had been removed sothat the rig could handle the air can and othercomponents of the FSRs. It took the drillcrews 72 hours to install the tensioners, an

operation which was completed withoutincident.

Prior to installation several upgradeswere made to the tensioners which havesolved all the original design issues,including laser-applied stainless steelcoating, clevis bearings, anti-rotation devicesfor the piston and upgraded position sensorand software. All upgrades are fully DNV andABS certified and the rig was the first tocomplete these under the guidance of BjørnSalte and John Holt.

The different crews then began focusingon gearing up their respective departments inanticipation of the beginning of drilling opera-tions for the new client, BP. This also includedpreparing for a US Coast Guard inspection,which the rig passed with zero discrepancies.

“I would like to add that the positiveattitude and teamwork of the crew is thereason for the rig's success,” says Wascom.

The rig team is currently working with BPto help plan several different operationaloptions for the rig.

10

West Gemini left Singapore on July 28 asplanned for its final work location in Angolanwaters, having undertaken extensivemodification work at the client’s request andgeneral operations preparations in terms ofcrew training and loading of the rig.

As not all the client modification workcould be finished in Singapore, the voyage tothe crew change location off Cape Town wasused to finish this work and the vesselacceptance test to the extent possible, bothwith a very good result.

At the end of August West Gemini wasdue to carry out the final BOP acceptancetest at Violeta 2C in Angola, after the rigimportation and immigration clearance werein hand. The BOP acceptance test wasestimated to take six-seven days, after whichthe rig was to move 50 kilometres south-eastto its first drilling location, Acacia, on block17. Spudding was expected to take placearound September 5.

“Overall the transit from Singapore toAngola has been conducted in a veryprofessional manner, with expected progresson the client modification work, training,acceptance test and general operationspreparedness work, and the only realchallenge encountered has been maintainingcommunication with the rig as aconsequence of failing VSAT systems,” saysrig manager Jens Christian Rise.

“We are now getting ready for thechallenges of starting up the operation inAngola, but with the commitment andprofessionalism displayed by all involved weare also confident that we will succeed inthis,” he says.

SEADRILL ANGOLA

Total focus asWest Gemini startsmaiden job inAngola

REPORT: TOVE AASBERGPHOTO: WEST SIRIUS

The refurbished tensioners installed in the moonpool.

SEADRILL USA

Six riser tensioners installedThe past few months have been a busy time for the crew ofWest Sirius.

“We in the West Gemini team would hereby

like to take the opportunity to thank all those

involved, crew and vendors, for their efforts

and commitment, without which we wouldn’t

have been able to get to the present stage of

operational readiness,” says rig manager

Jens Christian Rise.


SEADRILL FAROES

West Phoenix drilling off the FaroesWest Phoenix is currently drilling an exploration well on the Anne Marie prospect off the Faroe Islands for EniDenmark. The well is planned to take 75 days to drill.

The objective of well 6004/8a-1 is to find oil-bearing sandstone in a structural trap ofEocene and Paleocene age. It is locatedaround 190 kilometres south-east of Tors-havn. Water depth at the location is 1 145metres.

This is the first time West Phoenix haskept station using dynamic positioning.Dedicated DP workshops were heldbeforehand to ensure the best possible

preparation. “Drilling of the tophole and 26-inch section went better than planned andutilisation of the dual RamRig really showedits potential,” says rig manager Roy Nevland.“Otherwise we can mention that there is greatinterest in this drilling operation on theFaroes. A discovery here will of course mean alot for the future development of the country.”

Phot

o: S

ansi

r

Exciting geology in the Faroes.

Magne Tobias Hansen, driller on WestEpsilon, is very concerned with safety in hisworking area and spiritedly explains howimportant it is for everyone to respect the redzone. The red zone means equipment inmotion during which no-one is allowed tocome inside the barriers except to carry outthe manual operations described in the redprocedure on dropped objects and securingequipment off the ground.

“We often get new people on the rig.They may be ours or from a service company.None of them is allowed to go onto the drill-

floor before they have spoken to the drillerand been given permission to do so,” saysHansen. “We take them into the driller’s cabinthe back way, so that they don’t have to crossover the drill-floor. In here we give them anintroduction to what the red zone means. Ifpeople don’t respect the barriers, they areimmediately shown out.

“We also have a risk assessment formwhich is gone through, signed and loggedevery time someone is to go into a red zonewhile equipment is in motion. We are veryfocused on dropped objects and weeklyinspections are performed in accordance withplanned activities.”

SEADRILL NORWAY

Red zone – no admittanceThe red zone means equipment in motion.

No newcomers are allowed to go onto the drill-floor before they have spoken to the driller and been given permission to do so.

Magne Tobias Hansen, driller, West Epsilon.

REPORT AND PHOTO: TOVE AASBERG

INFORMATION TO ALL EMPLOYEES IN SEADRILLNUMBER 5 • SEPTEMBER 2010

Public RelationsP.O. Box 110, 4001 Stavanger, Norway

Seadrill LimitedPrice development of the Seadrill share,

which is listed on NYSE (graph) and OSE.

The main focus of TMS is that information isto be quick and easy to retrieve. TMS is amulti-disciplinary system that directs andcontrols all aspects of the organisation. InTMS all employees will find the informationneeded to make sure that the job is done inaccordance with Seadrill requirements.

The pilot phase was kicked off inHouston, Rio and on board West Taurus atthe beginning of May.

Appr. 90 pilot users, both onshore andoffshore, have been utilising the system forthree-four months to retrieve and maintaindivisional and rig procedures. In addition,certain personnel within the corporate unit

have participated in the pilot.Following an evaluation of the pilot

results by the project group, the new systemhas been approved for implementation onall rigs by the TMS steering committee. Easynavigation, ease of revising procedures, theability to add attachments and speed aresome of the features that the pilot usershave emphasised as key areas of improvedperformance in the new system.

“In my opinion, TMS is much easier touse. The old TQM system was not intuitive,and you really needed to follow a step-by-step written procedure to make sure youcreated and published procedures correctly.With TMS, I was able to create and reviseprocedures after my first couple of attempts.The TMS start page interface is far moreuser-friendly and informative than TQM. Thevisibility and clarity of information issuperior to the old system,” says ErikOberlin, stability section leader, WestTaurus.

“I am very pleased with the work carriedout by the TMS project group so far. Theoutcome of the pilot phase shows that thenew system is a major improvement for theoffshore personnel on board West Taurus.The new system has also received very goodfeedback from the corporate managementgroup, and this shows that it meets the needat all levels of our organisation,” says COOPer Wullf.

“Implementation of TMS on all rigs willstart in September and continue until theend of March next year. Access will beintroduced sequentially, division by division,and it is my belief that this is a better way toensure compliance and utilisation of bestpractice within Seadrill,” says Wullf.

Scorpion has received a contract for a firmtwo-well contract plus two optional wells forOffshore Vigilant in Venezuela with CardonIV S.A. Firm contract duration is estimatedat 240 days with an extension option also ofappr. 240 days. Contract value for the firmperiod is appr. US$37.2 million. A new one-well contract has been signed for OffshoreResolute in Vietnam. Contract duration isestimated at 55 to 70 days and the contractvalue is between US$5.8 million andUS$7.4 million.

Seadrill has also secured a contractwith Premier Oil in Indonesia for the WestCallisto. The programme in the Natuna Seahas an anticipated firm duration of around230 days with extension options of appr.180 days. Contract value for the firm part isestimated at US$27.4 million.

In addition, Seadrill has been awardedan assignment with PT PAN (P.T. PertalahanArnebatara Natuna) in Indonesia for theWest Leda. The contract value for the firm90-day operating period is estimated atUS$12.4 million.

CEO Alf C Thorkildsen, says, "Theplacement of these rigs, representing a totalof some US$84 million, is a milestoneachievement in Seadrill's strategy ofbecoming the leading provider of ultra-modern jack-ups worldwide. These contractsfurther underline the importance of ourrecent acquisition of Scorpion, addingearnings visibility on what we believe arecompetitive terms and conditions.”


New contracts

REPORT: FREDRIK GRIMSBYPHOTO: RICARDO ZINNER

Gary Lohman, rig manager West Taurus and one

of the key users in the pilot phase, left, with rig

leader James Nunnery, says: “The TMS system is

a major improvement over what we were using.

It is much easier to navigate in and input

changes. If the system still gets the focus it has

had, it will be a very useful and reliable tool for

the company.”


Completion of TMS pilot phaseIn accordance with the project plan, the pilot phase for the newcorporate Total Management System (TMS) was successfullycompleted by mid August. The intention of the TMS pilot phasehas been to test the new system concept within an operationaland multi-language environment.

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world of seadrill sept 2010

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