Maersk Drilling Newsletter

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#3 December 2012 Newsletter Taking training a step closer towards reali Mærsk Deliverer is creating win-win in Angola What makes a good leader? A smarter way of working is under way

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A smarter way of working isunder way

Transcript of Maersk Drilling Newsletter

Page 1: Maersk Drilling Newsletter

#3 December 2012

Newsletter

Taking training a step closer towards reality

Mærsk Deliverer is creating win-win in Angola

What makes a good leader? A smarter way of working is under way

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EDITORIAL

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Newsletter – December 2012Newsletter – December 2012

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By Claus V. Hemmingsen, CEO of Maersk Drilling Partner & member of the Group Executive Board.

Contents

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Taking training to the next level Dear colleagues, Training is the theme of this Newsletter edition. A high training standard is part of the Maersk Drilling DNA and we do our utmost to ensure that all colleagues are trained to per-form any operations safely and responsibly, in particular while working offshore. Having fully trained, qualified and competent employees is a prerequisite for the high performance and safety standard we pursue and demand.

As part of our efforts to maintain the highest levels of competency in the industry, we have invested in a new drilling simulator complex which was inaugurated in late October. The complex is designed for team-based training - a very important feature since we all know it takes a team based and cross functional effort to deal with well control scenarios.

The new training facilities exceed any known standards and industry requirements and will be in strong demand as we are in the process of hiring 3,000 new colleagues. We can all be proud that Maersk Drilling has once again taken the lead in respect of training and com-petence building to ensure safe and efficient operations. You can read more about the new training facilities inside this magazine.

Leadership development is another high priority in Maersk Drilling. Leadership is the most decisive factor when looking at staff retention and our overall performance level – and unsurprisingly there is a documented strong connection between good leadership and customer satisfaction.

Over the past two years we have allocated more resources to leadership training and when our annual Employee Engagement Survey result came out in October the main index scores of Engagement, Manager Ef-fectiveness and Values were at all time highs. I am confident that our efforts to develop good leaders contribute to this positive outcome.

Besides engaged and skilled employees, an important prerequisite for successful growth is an up-to-date IT landscape. During the past several months the IT landscape has been analysed, and the conclusion – unsurpris-ingly perhaps – is that our present set-up is inadequate and outdated. We have thus decided to implement a totally revised ERP (Enterprise Resource Planning) landscape that is better defined, more reliable and ef-ficient for all users. The timeline, benefits and

challenges of implementing the new set-up are elaborated upon inside this magazine. This Newsletter will be the last in 2012. It has been an exciting but also very challenging year. Many things are going right in terms of our Accelerated Growth strategy. Our recruit-ment is on track and with the latest contract signed for the second drill-ship, five out of seven new-buildings now have contracts.

When we look at the majority of our fleet, we are performing very well and above target. However, costly start-up issues on two rigs have eroded our overall performance and consequently this year’s financial result will be significantly lower than last year. This is far from satisfactory, and I hope these are bumps in the road on our journey towards our longer-term targets. Still, every day, I am encouraged when I see so many dedicated people working to fulfil our aspirations. Let’s strive to reach our full potential in 2013.

In the meantime I wish you all the best for the season and a Happy New Year 2013. Keep up the good spirit – and be safe!

EDITORIAL

Published by:

Maersk DrillingEsplanaden 50DK-1098 CopenhagenTel: +45 33 63 88 07Fax: +45 33 63 31 82Mail: [email protected]

Volume 26, No. 3

December 2012

Editor/layout: Marlene Lyhne SørensenPrinters: Hertz bogtrykkergården a/sCopies: 4.500Deadline next issue: March 2013

This Newsletter is published three timesa year for the employees, retirees andbusiness connections of Maersk Drilling.The NewsLetter is printed on ForrestStewardship Counciled (FSC) and ISO14001 certified paper. Reproductionpermitted only after agreement with theeditor.

Front page photographer: Ricky John Molloy

State of the art. In October a new drilling simulator complex was inaugurated at Maersk Training in Svendborg, Denmark. The training facilities can simulate the most complex and demaning ‘well from hell’ scenarios as a measure to enhance competencies.

Building new talent. Mærsk Deliverer has hit the ground running in Angola and is investing in local talent with extensive training and benefit packages.

Tougher than the rest. Maersk Completer has won three awards for its top 2012 performance. Two years ago the picture looked very different, with operations in Brunei hanging by a thread. - until a turnaround plan was initiated.

Taking training to the next level . . . . . . . . . . . 03

A smarter way of working is under way . . . . 04

Maersk Completer has taken the lead . . . . . 05

THEME. Training . . . . . . . . . . . . . . . . . . . . 06-12

• Trainingtakesastepclosertowards reality

• “Phew,I’mgladtogetoutofthere”• MærskDelivereriscreatingwin-

win in Angola • Onboardtrainingiskickingin• Inthebusinesstostay• Steppingupleadershiptraining

“I’mtheguybreathingdowntheirnecks” . . . 13

Five quick questions for Søren Risgaard Jeppesen, director in HSE Operations. . . . . . 14

SAFETY BULLETIN . . . . . . . . . . . . . . . . . . . . . 16

ENVIRONMENT BULLETIN . . . . . . . . . . . . . . . 18

MARKET INSIGHT . . . . . . . . . . . . . . . . . . . . . . 19

SHORT NEWS . . . . . . . . . . . . . . . . . . . . . . . . . 20

From jungle outskirts to concrete city . . . . . 22

PERSONNEL . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Employees donate money to demining in Angola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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A smarter way of working is under wayDuring 2013 – 2015 an entirely new IT landscape will be built and rolled out onshore and offshore in Maersk Drilling. The solution will address a range of pain points and desired benefits such as removal of offshore latency and an improved transparency in the procurement chain. By Marlene Lyhne Sørensen, Strategy and Communication

After months of extensive research and analysis, and a careful selection and negotia-tion process, IFS Danmark A/S has been chosen as the ERP platform most suitable to address the pain points and desired benefits of Maersk Drilling.

Over the next three years IFS Applications™ will be implemented in the Finance, Supply Chain & Procurement, Operations, Mainte-nance and Business Intelligence process areas, amongst others replacing the SAP P3M, CODA, CMS and RFMP solutions.

“Oneofthegoalsistoremoveoffshorelatency on all rigs. To many offshore colleagues, the extent of latency when op-erating IT systems offshore has long been a source of frustration and has negatively influenced the working conditions and our efficiency,”saysMaerskDrillingCEOClausV. Hemmingsen.

FinDing nEw ways to iMProvE our work Day IFS was chosen for its attractive, intuitive and efficient user experience, and the fact that IFS comes with substantial industry

experience having successfully implemented their solution at other companies including Archer and Seadrill. “ThenewERPProgrammeisaprerequisitefor sustaining our performance and for growing our business in a successful man-ner. It is a strategic and major change man-agement project which will have a profound effect on the way we all work in the coming years. Processes will be removed, changed or created, just as many job contents will need to be re-defined. This does not imply a slim down of the organisation but a smarter way of working and of utilising the resourceswehaveathand,”saysClausV.Hemmingsen. During the implementation phase some productivity setbacks are expected, as is always the case when learning and adapting to new ways of working. To make the transi-tion phase as smooth as possible, additional personnel support will be allocated both offshore and onshore.

“IencourageyoutoembracethenewERPset-up and remember the overall target is

to improve the quality and efficiency of your workday,”saysClausV.Hemmingsen. The first ERP phase - defining the scope - was kicked off in December. Regular information about the impact on working routines and updates on the Programme’s progress will follow.

Peter Spanggard, Henrik B. Carstensen and Monsurat Nurudeen in the Maersk Drilling headquarters. Preparing for the ERP landscape to take full speed.

Photo: Per Gudmann

FacTs

ErP (EntErPrisE rEsourCE Planning) – what is it?• automatesintegrationofdata

across an organisation with soft-ware application

• facilitatesinformationflowbe-tween an organisation’s business functions

• singlepointofdataentry–notsilosystems with redundancy

aMong thE DEsirED bEnEFits arE: • Improvedusability• Optimisedsupplychain,including

full visibility across rig fleet• Benchmarking,learningandopti-

misation across rig fleet• Movingadministrationtasksfrom

offshore to onshore• Newfinancesolutionstoreplace

current outdated solutions• Improvedmanagementreporting

ProjECt ovErviEw:• Contractsigned29October2012• Thefullinvestmentisapproxi-

mately USD 30 million• Organisation~80-85fulltimeem-

ployees(~45fromMaersk,30-35fromIFS,~5externalconsultants)

• TheplanistorolloutintheHQin 2014 and to all rigs and shore bases in 2014 and 2015

Maersk Completer has taken the leadIn 2012 Maersk Completer won three awards, one of which was shell’s prestigious 2012 Rig of the Year award. a turnaround plan aimed at overcoming cultural differences and improving communications has led the way to success.

By Marlene Lyhne Sørensen, Strategy and Communication

Maersk Completer seems to be a rig on which everything goes right. In November 2012 it was awarded Shell’s 2012 worldwide best performing Jack-up Rig of the Year Award; it won the award for the Best Performing Unit in the Maersk Drilling fleet and on top of all this it received the best Customer Satisfac-tion Award.

Yet the story about Maersk Completer is not only a story about success and high perfor-mance. As it happens, you only have to go two years back to experience a very different picture.

“Twoyearsago,wehadanumberofserioussafety incidents and combined with some drilling related problems, our peers and customers perceived Maersk Completer to be one of the worst performing rigs in Brunei.Somethingradicalhadtobedone,”

says Maersk Completer’s rig manager Eddie Fitzgerald.

thE turnarounD PlanIn July 2010, the rig team onshore and offshore developed and implemented a comprehensive turnaround plan which aimed to overcome cultural differences, improve communication and promote respect.

“Therewasaneedtoexamineandmodifythe way the crew trusted each other, to instil a change of attitude and to re-affirm the need to lead by example from the top down andthebottomup,”explainsOIMonMaerskCompleter, David Reynolds. The programme was put in place in the fourth quarter of 2010, when the entire rig comple-ment attended a three-day programme on-shore. A second phase was carried out on the

rig in which the course facilitators, Connect SL, continued to coach personnel by putting into practice what they had learnt during the onshore sessions.

“Theresultswerealmostimmediate;seriouslyimproved safety standards and a real upturn in performance were the best of the benefits. Additionally there was a new-found team spirit thatextendedbeyondtheworkplace,”sayssafety training officer Jude Ste. Maria.

“Ithastakenalotofefforttogetwhereweare today but it proves that it is indeed pos-sible to make a turnaround. It has definitely been worth it and we are very proud of our latest achievements. Not wanting to sit back on our successes, we will continue to focus on training and strive to sustain our strong teamspirit,”rigmanagerEddieFitzgeraldadds.

Maersk Completer has performed a 99,8% uptime in 2012.

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ThEmE: Taking training to the next level ThEmE: Taking training to the next levelNewsletter – December 2012 Newsletter – December 2012

FacTs

thE MaConDo aCCiDEnt: On 20 April 2010 a fire and explosion occurred on board the deepwater semi-submersible drilling rig, Deepwater Horizon, leading to 11 lost lives and massive environmental damage. The deepwater drilling rig was working on BP’s Macondo field at 5,000 ft of water, 41 miles offshore Louisiana in the Gulf of Mexico. Two days later the rig sank.

Investigations are still ongoing as to what caused the accident.

thE Drilling siMulator CoMPlEx: The new simulator has been designed to provide the following: • TrainingbeyondthestandardIWCFinternationallyrecognisedwellcontrolcourse.• Trainingthatcanbeconductedinteams,i.e.toincludethepositionsontherigthat

would normally respond to a well control incident (the senior tool pusher, toolpusher, driller, asst. driller).

• Rigspecifictraininginwhich,fortheCJ70s,DSS21deepwatersemisandthenewdrillships, the simulator directly mirrors the drill floor layout and controls on the particular rig.

Looking Forwards:• FutureplansincludeaddingtrainingforMPD(ManagedPressureDrilling)andfor

DWOS (Drilling of a Well on Simulator). • Amarinesimulatorwillallowfortrainingindynamicpositioningandcontrolofstabil-

ity. Ultimately there will also be an engine room power generation simulator and a crane simulator. When all are in place, management of major emergency training can be conducted where all rig departments will combine in response to realistic major scenarios, such as a well control incident in combination with a loss of power.

Training takes a step closer towards realityThe Macondo accident revealed a need for team-based well-control training, and Maersk Drilling has once again put itself in the forefront by investing UsD 10 million in a new drilling simulator complex. “We now have the opportunity to take training to the next level,” says allan Mccoll, a member of the Maersk Drilling Post-Macondo internal task force.

By Marlene Lyhne Sørensen, Strategy and Communication

If everyone had been assured in their role and been comfortable enough to speak up before the well went out of control, the fire and explosion on Deepwater Horizon in 2010

might have been avoided. The catastrophe led to 11 lost lives and was a major blow to the environment and to the reputation of the drilling industry.

“Manyfactorswereatplaywhentheac-cident happened, but it seems evident that the competency level and the lack of good teamwork and clear communication was part oftheproblem,”saysAllanMcColl,headofDrilling Support and member of the MD Post-Macondo task force.

Although Maersk Drilling was not involved in the Macondo accident, CEO Claus V. Hemmingsen established a task force to determine how to prevent such catastrophes and a newly inaugurated drilling simulator complex is a very visible outcome of this work.

“Ofthemanyinvestigationslookingintotheaccident, lack of well control has been re-cognised to be a core element, and this clearly calls for an intensification of the manner in whichweviewtraining,”saysClausBachman,head of the Post-Macondo task force.

no tiME to waitThe task force’s initial findings and a com-mitment to be in the forefront of training to ensure safe and efficient operations led to Maersk Drilling’s decision to invest USD 10 million in the new state of the art drilling simulator complex. The simulator is located at Maersk Training in Svendborg, Denmark and was inaugurated in late October.

“Thesimulatorhasbeendesignedspecificallywith team-based training in mind. The indus-try is still formulating a new training standard that can fulfil the need for such qualifications, but we have decided that we don’t want to wait for a standard to be finalised before we react,”ClausBachmansays.

The new drilling simulator features the latest 3D technology and rig specific designs to mirror the exact working conditions on the rigs.

Photo: Ricky John Molloy

a ClassrooM is too Far FroM rEality The aim has been to develop a training course that is as realistic as possible. The testing of individuals seated in classrooms simply doesn’t take into account the range of skills required in real-life well control incidents, Allan McColl points out.

“Inreallifeyouhavetocommunicateandactacross several barriers, be vigilant for equip-ment malfunction and anomalies in the well behaviour. Theoretical training and testing cannottakealltheseelementsintoaccount,”says Allan McColl.

Another important opportunity within the training facility is that it can involve the company man.

“Thecustomerrepresentativewillalwaysplay the central part in a well control scenario should it arise in real life, so this is a very important feature. I think the new drilling simulator complex presents a serious commitment to effective training when we exceed any known industry requirement. And to be honest, I think we can be very proud of the opportunity we have created and com-mitmentwehavedemonstrated,”saysAllanMcColl.

The new state of the art training facilities at Maersk Training in Svendborg will be in high demand as Maersk Drilling is in the process of hiring 3,000 new employees and doubling its fleet.

Photo: Ricky John Molloy

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ThEmE: Taking training to the next level ThEmE: Taking training to the next levelNewsletter – December 2012 Newsletter – December 2012

“Phew, I’m glad to get out of there” Teamwork, clear communication and making mistakes are key elements when training in the new drilling simulator complex at Maersk Training in svendborg.

By Marlene Lyhne Sørensen, Strategy and Communication.

Kjetil Vadset, have been inside the Driller’s Cabin for more than an hour struggling to solve severe problems with the well. The ‘well from hell’, they call it.

Fortunately the situation is not taking place on a rig in operation, but in Maersk Drilling’s new drilling simulator complex located at the Maersk Training in Svendborg, Denmark. The mud logger is played by one of the instruc-tors, Kim Yding Noe, and he is not sitting in the Mud Logger’s Shack, but in the Instruc-tor’s Room right next to the Driller’s Cabin simulator. On a rig the driller can call 10-15 different people for assistance or information. All these lines of communication are intact in the drilling simulator complex, but the many different people representing different func-tions on a rig are all played by an instructor.

tEaMwork is a PrErEquisitEThe new simulator complex is the first of its

kind. It is designed for team-based training, and thus it offers a framework to strengthen the interaction between crew members in various functions on the rig. “Themostadvanceddrillingequipmentbecomes useless if the crew cannot work together, and the best driller in the world turns out to be the worst if he cannot com-municate,”saysTonnyMøller,operationsmanager at Maersk Training.

The new simulator complex offers a near real-life environment through use of the spe-cific designs of Maersk Drilling’s rigs, and it provides the possibility of linking the Driller’s Cabin, the central control room, the crane operator and the engine room together to provide a more comprehensive well-control scenario.

“Ifthegoinggetstoughonarig,thedriller,the crane operator, the OIM and several other functions have to overcome the problems in a joint effort. The same goes for this simula-torcomplex,”TonnyMøllersays. ok to MakE MistakEsAt present, the Driller’s Cabin is only linked up to the instructor room next door. Dariuz has returned to the driller’s chair after having passed the exact depth of the casing to Kjetil Vadset from BP. Dariuz is back in the driller’s chair with a firm grip around the drilling joy stick. Kjetil Vadset is standing in the corner calculating the pressures with which he needs to control the well to avoid further problems, and in the opposite corner is Michael, apparently not doing anything. In the Instructor’s Room next door, lead driller Martin Bülow and two Maersk Training instructors observe the situation on three screens linked up to cameras in the Driller’s Cabin. “Whydon’ttheyinvolveMichael?Hecandoall the calculations. He is excellent at crush-ingnumbers,”saysMartinBülow,andnotesdown his observation.

When the session in the Driller’s Cabin is over, the Maersk Reacher crew members and the instructors will give their feedback to the drill crew. The point is to get to know each other’s strengths and weaknesses and become aware of the performance potential, when the crew works together as a team. “Wemakeanefforttopointoutmistakes,not to victimise anyone, but to become aware and take the opportunity to improve our-selves and correct any unfortunate behaviour as a measure to increase the competency level should a similar well-control scenario ariseoffshore,”explainsTonnyMøller.

sEssion ovEr“Startpumping,startpumping,”Dariuzcriesinside the Driller’s Cabin. A few minutes later Dariuz, Michael and Kjetil seem to have reached a solution which will at least prevent a further escalation of the situation. “Itisnotthemostbeautifulsolution,butitisasolution,”concludesinstructorKimNoe,whopreviouslyworkedasleaddrilleronMærskInspirer and Maersk Guardian. He picks up the phone and calls the Driller’s Cabin. “Thesessionisover.Youcancomeout,”heexclaims.

no tiME For sMall talk“Phew,I’mgladtogetoutofthere,”KjetilVad-set says when he reaches the coffee area in the reddish-brown brick building that houses the drilling simulator complex. “Itwasstressful,”agreesDariuz,beforehegrabs a cup of coffee. The senior tool pusher Jesper V. Pedersen was in the simulator on a previous session that day. “Itisnottherealdeal,butitisascloseasitgets,”hesays. “Iliketheset-upofthecourse.Ittakesthehuman factor into serious consideration, and it is OK to make mistakes. Actually the mistakes are a very important part of the learningprocess,”headds. “Yes,thisismuchmoreeffectivethanjustsitting in a classroom reading a book. I become aware of my mistakes and I try to improve myself. Yesterday, I learnt that I was being too polite and talkative. There’s no time for that. Today, I was much more focused on getting the job done. Even when the mud log-geraskedmeaboutmymother,”saysDariuz.

The ‘well from hell’ scenario cannot be re-vealed in detail, because it might be included in future training sessions.

The mud logger is played by Kim Yding Noe, one of the instructors sitting in the Instructor’s Room next to the Driller’s Cabin simulator. The driller crew is being video recorded and can be followed on screens in the Instructor’s Room.

Photo: Ricky John Molloy

The phone rings in the Mud Logger’s Shack. The mud logger picks it up. “Hello?” “Hello,thisistheDriller’sCabin.Wehaveaproblem with the well. I need the exact depth ofthecasing.” “Whatareyousaying?Youneedtheexact,what…Idon’tunderstand,”saysthemudlog-ger, speaking with a heavy accent. The driller calling from the Driller’s Cabin is holding the phone in one hand and looks as if he is about to take a deep breath. “Ineedtheexactdepthofthecasing.Now,please,”saysthedriller. The mud logger finally understands and gives him the requested information. “But,buthowisyourmother?”heasks. “Idon’thavetimetotalk,”thedrillerreplies,and hangs up.

thE wEll FroM hEllDariuz Koziel, his colleague Michael Bach and the BP representative from Maersk Reacher,

The human factor plays an important role in the new course set up. Just as it does in real life.

Photo: Ricky John Molloy

On a rig the driller can call 10-15 different people for assistance or information. All these lines of communication are intact in the drilling simulator complex.

Photo: Ricky John Molloy

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ThEmE: Taking training to the next level ThEmE: Taking training to the next levelNewsletter – December 2012 Newsletter – December 2012

Mærsk Deliverer is creating win-win in Angola Mærsk Deliverer’s performance is flying high in angola. However, the operation is by no means a walk in the park. a total of 70% of the crew is required to be angolan, and local skills are low. “We want it to be a win-win situation,” says Jens c. Rise, rig manager on Mærsk Deliverer.

By Marlene Lyhne Sørensen, Strategy and Communication

WhentheOIMonMærskDeliverersharedthe news at the end of the morning meeting, some of the Angolans stood up and clapped their hands. They had just been offered the prospect of health care insurance, not just for them but also for their wife and children, within a few months.

“AngolaisoneofAfrica’sleadingoilproduc-ers, but most people still live on less than USD 1 a day. If you drive through certain areas of Luanda, you’ll get an idea of what health careinsurancecandoforafamily,”saysJensC.Rise,rigmanageronMærskDeliverer,whichstarted operations in Angola in May 2012.

Angola is believed to have one of the largest deepwater oil reserves in the world, and withMærskDelivererMaerskDrillinghasentered Angolan waters for the first time, although probably not the last given that the West African country has been selected as a strategic area of interest for growing the business.

looking For thE right attituDEAlthoughMærskDelivererhashitthegroundrunning in terms of performance, there are considerable challenges along the way; the most substantial one being the Angolan au-thority’s local content requirements implying

that 70% of the rig crew has to be local em-ployees within a few years after start-up in Angola.Sofar35-40%oftheMærskDeliverercrew are locals hired through an agency and in November Maersk Drilling signed the first permanent contract with an Angolan. “Theeducationlevelisgenerallylow,sothereis not a great pool of qualified candidates in the local work force. We pick the people with the right attitude, and invest in them with training, career planning and an attractive benefitspackage,”saysJensC.Rise.So far not all have had the attitude that the rig management is searching for. “Wehavesentmanyhomeandsomehavebecome quite upset. That’s the way it is. We are in Angola for the long term, and we want toinvestinpeoplewithaclearpotential,”explains Jens C. Rise.

CrEating a win-win situationNumerous locals have now been offered a long-term contract to stay with Maersk Drilling. To become directly employed by Maersk Drilling will not only give them higher earnings, they will also be offered career plan-ning and other benefits such as health care insurance for themselves and their families. “Wewanttospendalotofresourcesindeveloping a competent and high-performing crew, while providing better living conditions for the locals. We want our activities in Angolatocreateawin-winsituation,”saysJens C. Rise.

The Mærsk Deliverer regularly has more than twenty nationalities on board and the crew has many years of experience in dealing with different cultures and mindsets.

Crew taking a break on Mærsk Deliverer.

Onboard training is kicking inOnboard training and vast experience in dealing with different cultures is paying off on Mærsk Deliverer in angola.

By Marlene Lyhne Sørensen, Strategy and Communication

Keep it friendly, keep it firm and try to have some fun. According to barge engineer Michael Sutherland those are the key words when establishing a new crew and this also goesforMærskDelivererinAngolawhere35-40% of the crew consists of locals.

“Wefindthatasinanyculture,thereisareluctance to admit to not knowing or not understanding, and we as the team on Deliverer have to build up that confidence in the new crew every time so that they can come to us without any apprehension and ask questions. But this is not easy with a languageandculturalbarrier,”saysMichaelSutherland.

To help out there are two Portuguese-speaking interpreters onboard and all safety officers are fully bilingual. Even more

important is that the crew has many years of experience in dealing with different cultures and mindsets, says rig manager Jens C. Rise.

“Aninclinationtoknowaboutotherculturesand a general respect for the locals are impor-tant prerequisites to overcome the cultural barriers,”headds.

SAP planner John Kemp is one of the crew members with many years of experience in this regard: “Weregularlyhavemorethantwentynationalities on board, so there has always been the challenge of language and cultural differences. There are also some locals who are reasonably bilingual so it is often possible to distribute them amongst the crews to overcome any communication problems on thespot,”saysSAPplannerJohnKemp.

training onboarDAll locals go through training to ensure a suf-ficient competency level, but due to a scarcity in training facilities onshore, and the fact that Angolans generally have a low chance of obtaining visas to other countries, most of the training and certification of the local crew takes place on the rig.

Certification is still a challenge, but with the help of HR ashore and the use of Falck Nutec trainers on board for the last two months, the locals’ training efforts seem to be paying off.

“IthinktheirhardworkandMaerskDrilling’scommitment to training is coming through now,”saysMichaelSutherland.

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In the business to staySimao Miguel is one of the local angolans working on Mærsk Deliverer. The colleagues and team spirit onboard, as well as the opportunity to improve living conditions, are the biggest assets of his job, he says.

By Marlene Lyhne Sørensen, Strategy and Communication

The first time Simao Miguel heard about Maersk Drilling was in a job advertisement in an Angolan newspaper. Maersk Drilling was a newcomer to Angola looking for local crew and Simao Miguel decided to apply for the job. He had worked for several oil companies in Angola, where the oil industry is picking up pace, and he liked the international environ-ment and the opportunity to use and further strengthen his English skills.

you Can always ask For hElPHe was called in for interviews and a few weekslaterhewasonhiswaytoMærsk

Deliverer, which commenced a two-year contract with Chevron in Angola in May 2012. The rig hit the ground running, and after only one month in operation it was awarded as ‘Super Rig of the Month’ out of the six rigs the oil company operates in Angola. “Sofarithasbeenawonderfulexperience.I meet very good people and I feel free to express myself. If I have a problem or when there is something I don’t know, I feel comfortable asking for help. Basically there is a very positive atmosphere. Working in this crew you get a feeling that we are all

equal,”saysSimaoMiguel,whoisworkingas rig administrator handling crew changes, communication with shore base and other administrative tasks.

iMProving living ConDitionsSimao Miguel can see himself continuing to work in the oil industry for many years. “TheoilindustryisgrowinginAngolaandit is an opportunity for many Angolans to improve their living conditions. I feel quite positive about my future and hope for many goodyearsinthisfield,”saysSimaoMiguel.

Engaged employees demand good leaders Effective leaders are essential to employee engagement and customer satisfaction, and over the past few years Maersk Drilling has increased its focus on leadership training. The result of the 2012 Employee Engagement survey was at an all-time high.

By Marlene Lyhne Sørensen, Strategy and Communication

Good leadership is the number one reason for engaged and high performing employees. Actually the most common reason for people quitting their job is that they are unhappy with their boss.

“Toputitsimply,agoodleadercreatesengaged employees and engaged employees perform better, which leads to satisfied customers,”saysErikRoesenLarsen,TrainingManager in Maersk Drilling.

Since 2010 Maersk Drilling has stepped up its leadership training, and by year-end 2012 around 50% of all onshore and offshore lead-ers will have been through leadership training courses tailored for the drilling industry.

“Ourambitionistohavethebestleadersinthe industry and we measure this through the Employee Engagement Survey. It is the employeeswhoevaluateourleaders,”saysErik Roesen Larsen.

When the result of the annual Employee Engagement Survey came out in October, it revealed an all-time high engagement score of 83% for onshore employees and 77% for offshore employees.

“Ithinkitisagoodindicationthatourleaders are doing a good job and this is not only important for high performance and retention purposes, it is also very important in terms of delivering high quality andefficiencytoourcustomers,”saysErikRoesen Larsen.

“Actuallywecanseethatleadershipmattersmore to customer satisfaction in Maersk Drilling than in other Maersk business units, because of the very close relationship be-tween the crew and the customer on the rig. If there is bad leadership, the crew becomes disengaged, performance starts to suffer – andsodoesthecustomersatisfaction,”headds.

The leadership training efforts will continue as Maersk Drilling grows.

“Ibelievetraininganddevelopinggoodlead-erswillbecomeincreasinglyimportant,”saysErik Roesen Larsen.

Can anybody become a good leader through training?

“Somehaveagreaterpotentialthanothers.But I think almost anyone can become a better leader through the tailored training courses, because they raise awareness of how to lead and provide some tools for improvement,”saysErikRoesenLarsen.

In 2012 Maersk Drilling spent about USD 1 million on leadership training. The duration of the tailored courses vary from one-and-a-half days to four days.

What makes a good leader?sCott MoonEy, roughnECk on MaErsk guarDian“Agoodleaderissomeonewhoisapproach-able. It is important that the leader is some-one who gets along with the crew and who can speak to them on a personal level as well. It is someone you can respect.

A good leader praises good results. If you let people know that they are doing a good job, if they are being encouraged, you will actually get the best out of people. On the other hand, if a leader only hits on the negative things it affects your confidence and your performance.

bo ChristEnsEn, DrillEr on MaErsk guarDian “Agoodleaderissomeoneyouhaveconfidence in. It is a person with technical

know-how and who is able to communicate this know-how in a way so everybody understands. A good leader also has a sense of humour. Our environment is tightly regulated with procedures that always need to be followed; it makes you quite restrained – which is the way it should be in order to have a strong safety culture – but it is good to have a leader who reminds you that we are also supposed to have fun at work. A bad leader with no sense of humour can take a single walk across the drill floor and ruin an otherwise positive spirit. Usually non-verbal communication is the worst. It makes you self-conscious – are we doing something wrong?Ithinkitincreasestheriskofmakingmistakes.

A good leader is also conscious about his or her responsibility towards developing people.

If a crew member has washed the deck for four years, they might need some new chal-lenges. Otherwise it is likely they will go and lookforanotherjoboranothercompany.”

“I feel quite positive about my future and hope for many good years in this field,” says Simao Miguel rig administrator on Mærsk Deliverer.

Bo Christensen gives his advice on what makes a good leader.

Page 8: Maersk Drilling Newsletter

Newsletter – December 2012

14 Maersk Drilling

Newsletter – December 2012

15Maersk Drilling

Five quick questions for

Søren Risgaard Jeppesen– about Dropped Objects

Newsletter – December 2012

15Maersk Drilling

01Why have you decided to establish a Dropped Objects Task Force?When we view our HSE statistics over the past few years, Dropped Objects (DOs) are by far the biggest challenge. The seriousness of this matter is shared throughout the industry, treating dropped objects as a separate and highly prioritised focus area in order to create a safer working environment.

The first step for Operations Management to turn this chal-lenge around was to launch the Drops Awareness campaign in 2011, and the Dropped Object Task Force (DOTF) is seen as the follow-up in order to capture the lessons learnt from the campaign.

02What will the Task Force do to improve safety?DOs are a field of great complexity which can make one feel that they are not in control. The Dropped Objects Task Force aims to provide the structure and support to take that control.

Improving the quality and the range of the inspection manuals is one important step. Some rigs have hired third-party compa-nies to make this improvement, however this includes far from all rigs. And our statistics show that 74% of all DOs could have been addressed by carrying out structured inspections.

03What about the remaining 26%?The Task Force is working on a programme consisting of five separate but interacting initiatives. Some of these are generic, while others will be more rig-specific. The basic idea is that some rigs are already doing an outstanding job on DOs and that this effort should not be hindered. On the other hand, other rigs need a little more help and the initiatives will give these rigs more of a framework to work from.

The five initiatives are:1. Alignment and values document

Defines the Maersk Drilling approach to working with dropped objects.

2. One Stop Drop Catalogue A series of documents, generic processes and unit-specific guides addressing the onboard hazard hunt.

3. Tailored Dropped Object Profile The opportunity for unit-specific analysis to take work processes, work areas and equipment into consideration when determining what characterises the rig’s primary DO challenges.

4. Dropped Object Culture Track/Toolbox Tools to maintain focus on safety and dropped objects and resist complacency. We want to reach a position where themindsetischangedfrom“wehaven’thadanincident,wearedoingsowell”toaphilosophyof“wehaven’thadanincident, what are we overlooking and what else do we need todo?”

5. Drops Transparency Knowledge sharing of the 5+5 workshops that were held offshore last year. A number of valuable suggestions on how to avoid DOs were shared and these are now being broken down into a number of different initiatives. A platform will be developed to host these initiatives. Some of them will be “ReadytoRun”,whileotherswillincludeacost.

04Why have you chosen these initiatives?The inspiration comes from many different sources, such as experiences and best practices from rigs that have succeeded in turning around a difficult drops trend. Another important source has come from dialogue with other stakeholders such as clients, HSE coordinators and HSE coaches.

05When will the initiatives be rolled out to the fleet?Our aim is to have the programme ready by the beginning of 2013.Itwillbedesignedtoworkthrough“pickandmix”andwillbe rolled out upon request from the rig and/or the rig team. It in-cludes individual analysis and tools to finding potential dropped objects and a structured approach to avoiding the resulting incidents. Focus will thus be on the specific initiatives that can bring the most value to the rig’s work with preventing dropped objects.

Everyday objects when working offshore can turn into lethal weapons when dropped. Maersk Drilling has established a Dropped Objects Task Force to fight

andminimisetherisk.Whichtoolsaretheygoingtoapply?SørenRisgaardJeppesen, director in HSE Operations, answers five quick questions.

By Marlene Lyhne Sørensen, Strategy and Communication

“I am the guy breathing down their necks”The second of four newbuild drillships is now on contract, reconfirming the oil companies’ appetite for ultra-deepwater drilling. Gunnar Bjornsson plays a vital role in getting the ships ready on time. Otherwise it could mean a loss of revenue of about UsD 550,000 a day.

By Marlene Lyhne Sørensen, Strategy and Communication

Gunnar Bjornsson does not look like a man under pressure as he looks up from his desk with a solid and calm expression in his eyes, but the responsibility resting on his shoulders is immense. Within the next two years he needs to ensure that four new drillships are finished at Samsung Heavy Industries in South Korea and handed over to the oil companies eager to expand their activities in ultra-deepwater drilling. The first two ships – the second was secured a contract in October - will be final-ised in late 2013 and have been settled at a day rate close to USD 550,000 – so delays are not an option.

“Wecloselymonitorthebuildingprocess.The contractors and subcontractors at the yard are under a lot of pressure to live up to their promises due to the high demand for newbuildings, and I’m one of the ship owner representatives breathing down their necks to keep them focused on the project while maintaininganopendialogue,”saysGunnarBjornsson.

He is sitting in his office at the Maersk Drilling headquarters in Lyngby, Denmark, which is not a regular occurrence. Very frequently he travels to the yard in South Korea to follow the building of the drillships at close hand and to make sure everything is on track.

“Itisquiteintense.Forexample,duringthedesign phase we received feedback from the customers which meant we had to increase the mud capacity on all drillships. We had to rush to Korea for face-to-face meetings between the project team and the yard to evaluate the design options and decide on the best option in order to minimise cost and timeimpact.”

Hesmileswryly:“Iknowhowitistobeintheyardteam’sshoes.”

attraCtED by CoMPlExity Shipbuilding has played a major role in Gunnar Bjornsson’s professional life. After 14 years of sailing and exploring the world, he trained as a naval architect, and in 1990 he was hired at the Danish B&W Shipyard, the shipyard that built the first oceangoing diesel vessel. “ThingswerereallyjumpingattheB&Wshipyard back in the nineties, and I had a great time. We built about five ships a year, and I met many ship owners during that time keeping an eye on the projects and anxious to speed up theprocess,”saysGunnarBjornsson.

Later when joining Maersk Ship Design, Gun-nar Bjornsson was enrolled in the building of new LNG ships at Samsung Heavy Industries in South Korea. It was at this point he discov-ered the drillships as a potential new area of interest. “Iwasattractedbythecomplexity.Ihavebuiltmany ships, but a ship with a drilling compo-nent was something new and exciting, and to become the project manager of the four drill-ships now being built for Maersk Drilling was somewhatofadreamposition,”saysGunnarBjornsson, the project manager since 2011.

thE big tEst still liEs ahEaDSo far things are going well. The big test of the building process will be the commissioning of the drillships at the end of the construction phase.

At this point all systems will be tested to make sure everything is okay before the customer takes it on contract.

First and foremost Gunnar Bjornsson is looking forward to stepping onboard the first drillship. “Iamsureitisgoingtofeelverygoodtofinallybe onboard and witness the result of a long-termteameffort,”hesays.

FacTs

The four ordered drillships being built in South Korea will be capable of drilling wells of 40,000 ft (12,200 m).

The drillships are scheduled for delivery in 2013 and 2014, and the total project cost is close to USD 2.6 billion. The first two drillships are going to the U.S. Gulf of Mexico, an area with great ultra-deepwater oil and gas resources.

“I have built many ships, but a ship with a drilling component was something new and exciting,” says Gunnar Bjornsson, project leader of the drillships under construction.

Page 9: Maersk Drilling Newsletter

SAFETY

16 Maersk Drilling

SAFETY

17Maersk Drilling

Newsletter – December 2012 Newsletter – December 2012

Safety performance on a downward path

TRCs and TRC Frequency (incl. Administration) 12 Months Rolling Trend

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2.95 3.10 3.08 5.69 4.34 3.28 4.19 4.15 4.15 4.47 4.19 4.46

3.07 3.21 3.08 3.31 3.40 3.24 3.68 3.80 3.80 4.12 4.17 4.47

3.07 3.21

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3.803.803.683.243.40

5.69

3.102.95

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3.08

4.12

4.47 4.19 4.46

4.474.17

LTIs and LTI Frequency (incl. Administration) 12 Months Rolling Trend

0 1 0 0 1 0 2 0 1 1 2 2

0.30 0.40 0.37 0.00 0.72 0.47 1.05 0.83 0.92 0.97 1.17 1.34

0.49 0.49 0.37 0.37 0.36 0.24 0.48 0.47 0.59 0.71 0.93 1.15

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0.590.470.48

0.24

0.360.37

0.490.49

oct-11 nov-11 dec-11 jan-12 feb-12 mar-12 apr-12 may-12 jun-12 jul-12 aug-12 sep-12

oct-11 nov-11 dec-11 jan-12 feb-12 mar-12 apr-12 may-12 jun-12 jul-12 aug-12 sep-12

0.92

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Maersk Drilling is currently performing below the industrial average in terms of safety. Studies are being conducted to identify the factors affecting the incidents and prompt actions are being taken based on these findings.

Five lost time incidents (LTIs) and 12 total recordable cases (TRCs) occurredinMaerskDrillinginQ32012.ThisbroughttheYTDLTIfre-quency by September 2012 to 1.34; the YTD TRC frequency was 4.46 by September 2012. For comparison the YTD IADC benchmarking is 0.99 for LTI frequency and 3.37 for IADC YTD TRC frequency.

MD ovErall saFEty PErForManCE

Top 3 Safety awards issuedforVenezuelabargesduringQ32012

Days Date ofUnit without any LTIs Safety Award

MAERSK RIG 42 2,340 20/07/12

MAERSK RIG 41 2,340 16/08/12

MAERSK RIG 52 900 13/09/12

Top 5 HSE AwardsissuedduringQ32012

Days without any Recordable Date ofUnit HSE Incidents HSE Award

MAERSK CONVINCER 360 05/07/12

MAERSK COMPLETER 270 26/08/12

NAN HAI VI 180 09/07/12

MAERSK DISCOVERER 90 21/07/12

MAERSK EXPLORER 90 26/07/12

23 %

38 %

8 %

MAINTENANCE AND TECHNICAL MODIFICATIONS, 5

DRILLING/WELL ACTIVITIES, 3

CATERING, 2

CRANE- AND LIFTING OPERATIONS, 1

MARINE OPERATIONS, 1

OTHER PROCESS, 115 %

8 %

8 %

Work activities involved inActualDROPsduringLastQuarter

Head & Face25 %, 12 injuries

Neck0 %, 0 injuries

Arm/Shoulder/Elbow19 %, 9 injuries

Hand/Finger/Wrist27 %, 13 injuries

Back2 %, 1 injuries

Front & Side Trunk4 %, 2 injuries

Leg13 %, 6 injuries

Ankle & Foot10 %, 5 injuries

Personal injuries occurredinQ32012

Work Activities involved Hand/Finger/Wrist injuriesMaintenance and technical modifications (five) and drilling/well activities (three) covered more than half of the total work activities involving Hand/Finger/Wrist injuries.

New SIRIUS look and feel By Wouter van Doesum, QM/HSE

With sIRIUs fully implemented, sur-veys show that the user interface to sIRIUs is complex and difficult to use. Improvements will be made to ensure users feel comfortable using it.

A radical improvement of the SIRIUS interface will now be installed to increase usage of and compliance with SIRIUS. This will ulti-mately have a positive impact on safety and efficiency.

“Wehaveworkedcloselywithoffshoreuserstoensurethatthenewuserinterfaceissimpleandeasytouseoffshore,”explainsHenrik Holde, Head of Business Process Improvement.

The new interface looks like Wikipedia and is built around the sim-ple principles of intuitive design, less clicking and a search function that works like Google.

PositivE FEEDbaCkSeveral rigs have been involved in the design and their feedback is positive:

“IamfindingthecontentthatIamsearchingfor,andIalsofindallthe documents related to that operation. This is an improvement comparedtotheformerSIRIUS”

“Theindex/searchsystemiseasytouseanddoesthejob”

“It’slikesearchingtheinternet.Averyuser-friendlyandtime-savinginterface”

“Thisisverygood!NowpeoplecaneasilyfindproceduresandinformationinSIRIUS”

lEss tiME sPEnt on navigatingChanging the portal does not change any processes or procedures in the SIRIUS management system.

“Thequalityandrobustnessofthemanagementsystemstaythesame, but users will immediately feel at home in the new portal which will enable them to focus more on procedures and less on navigatingthesystem,”Henrikends.

The new portal will be available in early 2013 across the fleet.

Safety Performance per offshore location

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olve

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TRCF last 12 monthsLTIF last 12 monthsNo. of FTLNo. of LTINo. of RWCNo. of MTC

The chart above shows the safety performance of MD by 2012 YTD with last 12 months rolling frequency of LTI and TRC. Maersk Discov-erer has the highest record (two) while Maersk Rig 45 has the highest frequency (5.95) of LTI for the last 12 months.

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Potential and *Actual DROP’s whichoccurredduringQ32012

The chart above shows dropped object incidents in 2012 YTD with 12 months rolling frequency of DROPs > 40J. Maersk Resilient has the highest record (seven) of DROPs over 40J and the highest number of DROPs (11) less than 40J. Maersk Resolute is the second highest.

Page 10: Maersk Drilling Newsletter

mARKET INSIDE

19Maersk Drilling

Newsletter – December 2012ENvIRONmENT

18 Maersk Drilling

Newsletter – December 2012

HOSE BURST OR FITTING/COUPLING PARTED

WRONG LINE-UP

OVERFLOW DUE TO HIGH FLOWRATE

VALVE FAILURE

OVERFLOW

CONTACT WITH OTHER OBJECT

SEAL/GASKET FAILURE

LOOSE FITTING

BLOCKED FILTER/SCREEN/OUTLET

HOSE LEAKING

DESIGN ISSUE

11

22

3

5

7 10

42

BOLTS LOOSEN

ANNULAR WEEP HOLE LEAKING

HOSE DAMAGED

HOSE FAILURE

FITTING/COUPLING NOT FIT

CAUGHT ON PROPELLAR

UNKNOWN

DELIBERATE SPILL

OBM RESIDUE INSIDE HOSE RELEASED TO SEA

PIPE BURST

LEAKING SEAL

6

6

5

2

22

212 111 1

Observed cause (from Daily Check) for loss of containment inMaerskDrillingbyQ32012 CO₂ emission frequency perunittypebyQ32012

DEEPWATER

INTERNATIONAL J/U

DRILLING BARGE

HARSH ENV. J/U

42 %

20 %

16 %

22 %

Offshore CO₂ Emission this YearCO2 emissions from Maersk Drilling offshore activities are currently cal-culated based on the monthly diesel oil consumption from active rigs.

Total CO2 emissions have been seen to decrease, in particular for Deep-water rigs due to downtime on a few rigs.

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Oily product Chemical product Drilling product No.of External Spills

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The emission frequency is based upon 24 exposure hours, which is the metric currently used. DWSS have the highest CO2 emission frequency due to the fact that these units use dynamic positioning, unlike the jack-up rigs.

There are a total of 127 cases of spills. External spills account for 24 cases. The most common issues encountered for loss of containment are ‘Hose bust’ or ‘Fitting/coupling parted’ followed by ‘Wrong line-up’.

The Caspian Sea – has the time come to finally reach its full potential?While the huge potential of the caspian sea did not materialise in the 1990s and 2000s, recent activity suggests that the time has finally come. But rig capacity will be a limiting factor. The Heydar aliyev has – if options are exercised – secured employment almost to the end of the decade.

By Michael Harboe-Jørgensen, Head of Strategy and Communication

In many ways the history of Maersk Drilling’s semi-submersible Heydar Aliyev (aka Maersk Explorer) mirrors the story of the Caspian Sea. The Caspian Sea houses some of the world’s largest reserves of oil and a vast sup-ply of natural gas, but access did not become possible until after the collapse of the Soviet Union in 1991. The new world order changed the strategic calculations in the region as well as among the largest energy consumers, including the US and China. In fact, it became US policy to promote rapid development of Caspian energy resources in order to reinforce Western energy security. Massive foreign investment followed, led by large international oil companies such as Exxon, BP and Total.

Despite the massive interest, several fac-tors have blocked the way for making full potential of the Caspian Sea. Restrictions to export, insufficient pipeline capacity, territory issues, a less than favourable investment climate characterised by a high degree of un-certainty, a lack of fiscal regime stability, etc. were all among the factors that adversely impacted the development of the Caspian Sea potential. Nevertheless, the develop-ment of oil and gas resources remains vital for the economies in the region, and recent activity indicates that the region may finally get up to speed. This would bode well for the demand for mobile offshore drilling rigs such as the Heydar Aliyev.

Heydar Aliyev was ordered in 2000 on the back of a three-year contract with ExxonMo-bil for exploration work offshore Azerbaijan, and commenced operation in late 2003. The contract included an option for contract extension in case further drilling was needed. The reality was that the contract expired in

2006 without further work lined up, and the rig was stacked for one year before taking on a few shorter-term drilling programmes in Russia, Turkmenistan and Azerbaijan, only to be followed by another period of unemploy-ment. However, in late 2010 the rig started drilling on the N Block in Kazakhstan before moving to Azerbaijan where it has secured employment until 2015, with options for extension until 2019.

a bottlEnECk is lurkingHeydar Aliyev is Maersk Drilling’s only rig in the Caspian Sea, and is one of four semi-submersibles in the region, of which three are employed in Azerbaijan and one in Iran. The increasingly complex reservoirs, for example Absheron and Shah Deniz, require higher spec

rigs, meaning that Heydar Aliyev is in fact the only rig able to take on the complicated wells. Hence several exploration and development programmes are likely to be delayed as a result of lack of capable rigs. So while the good news is that demand for high spec rigs is increasing, the bad news is that a lack of rigs may constitute a bottleneck in the continued development of the region’s oil and gas potential. And if new rigs are to be or-dered they will not be delivered until 2016 – at the earliest. In spite of the growing demand, Maersk Drilling currently has no plans of expanding its business in the Caspian Sea but remains focused on growing its business with ultra-harsh environment jack-ups and ultra-deepwater floaters.

External spills show a decreasing trendMaersk Drilling has a strong focus on the environment and has conducted an in-depth analysis on spills and how to improve the performance of the fleet. Maersk Drilling is committed to using technologically advanced and environmentally protective materials and equipment.

Maersk Drilling performs daily quality checks of incident reports with regards to external spills/discharges as well as accidental spills/discharges contained on board. During the past 12 months we have had a number of spills, including oily products spills, chemical spills

and drilling fluid spills; however by August 2012 the total number of external spills began to show a decreasing trend. The total amount of materials spilled has shown a decrease since February 2012.

In many ways the history of Maersk Drilling’s semi-submersible Heydar Aliyev mirrors the story of the Caspian Sea.

Page 11: Maersk Drilling Newsletter

ShORT NEWS

20 Maersk Drilling

ShORT NEWS

21Maersk Drilling

Newsletter – December 2012 Newsletter – December 2012

Short news

Disappointing third quarter result The third quarter interim results came out in No-vember revealing a profit of USD 87 million compared to USD 139 million in the thirdquarterof2011.“Thestart-up issues materialising in the second and third quarter are hampering our result for 2012, which is obviouslynotsatisfying,”said Maersk Drilling CEO Claus V. Hemmingsen. The safety performance has worsened, leaving the LTIF at 1.16 per million working hours compared to 0.49 per million working hours last year.“Iamconcernedwiththe latest development in our safety performance. It is simply far from satisfactory and we want to get back in topoftheclass,”saidCEOClaus V. Hemmingsen.

maersk Drilling is growing on social media sitesMaersk Drilling is stepping up its presence on social media sites. In June, a Face-book site was launched and in November the site had reached more than 17,000 likes. In October we entered LinkedIn, a social network-ing website mainly used for professional networking. The purpose is to find and attract new employees along with building a Maersk Drilling community that is easily accessible no matter where you are stationed in the world, and where you can grow your network, share experiences and stay connected to your col-leagues.

See more https://www.facebook.com/MaerskDrilling

See more http://www.linkedin.com/company/maersk--drilling

Close customer dialogue paid offMaersk Drilling aims to build closer relations with key customers to know their needs and become the drill-ing contractor of choice. The contract finalised in July for the first XLE jack-up under construction is an example of what close customer relations can lead to. In this case there had been talks between Total Norway and Maersk Drilling about the po-tential development of the Martin Linge field for many years, and the conclusion was that the field’s water depth combined with its complex reservoir structure would need a capable and highly advanced drilling rig. “Mynotesfromourtalksdate back to March 2000. So yes, you can argue that our dialogue for this contract started more than ten years ago,”saysErikSchou,seniordirector for the Norwegian Jack-up Section, with more than 20 years experience.

maersk Drilling vice President awarded for lifetime achievementIn November Maersk Drilling Vice President Gregers Kudsk received the prestig-ious 2012 IADC Contractor of the Year Award. The annual award is given to rec-ognise an individual lifetime achievement in technical innovation, safety and eco-nomic efficiency within the drilling industry. The award is reserved exclusively for drilling contractors and all recipients are nominated and selected by other drill-ing contractors. With the award National Oilwell Varco made a donation on Gregers Kudsk’s behalf to a univer-sity of his choice. Gregers Kudsk decided to give the scholarship to the Centre for Offshore Foundation Systems at The University of Western Australia in Perth, which conducts research within the field of jack-up foundations and has been an active participant in the development of the ISO standard for jack-up rigs.

Contract for second drillship signedIn October Maersk Drilling signed a contract with ConocoPhillips Com-pany and Marathon Oil Company for the second ultra-deepwater drillship in a series of four identical drillships currently under construction. The drillship will be employed by Cono-coPhillips and Marathon Oil for their respective drilling programmes in the US Gulf of Mexico. Estimated total contract value is USD 694 million including mobilisa-tion, but excluding cost escalation compensation. The contract duration is three years, with options for up to an additional two years, and commencement of operations is expected by mid-2014 upon delivery from Samsung Heavy Industries in South Korea, mobilisation to the US Gulf of Mexico and acceptance testing.

Crew got time off to vote in AngolaMaersk Drilling decided to support the second elections in Angola since the long-lasting civil war ended in 2002, and let local workforce leave their work stations in order to vote on 31 August. Personnel transfer commenced at first daylight, and within less than two hours the crewonMærskDeliverershrunk from 167 to 100. All local crew members were on their way to Port of Cabinda. Some of them would stop there and vote, some would continue to travel to far away provinces like Benguela or to the capital Luanda. Before the exodus, the well was made safe and necessary safety and logistic precautions took place. Extra catering staff flew from Namibia to provide services for those who stayed on board.

New safety e-learning is outDue to a new management system, the former HSSE e-learning programme is outdated and a new version is now being rolled out to all onshore and offshore locations to support a strong safety culture. The new HSSE e-learning covers working environment, safety management, security and environment, and presents major changes to the exist-ing programme. Among other changes, visiting a rig will now require a passed test and the certificate will expire after two years. Recertification will be managed by the local HR training administrators, who will inform personnel about expired certificates. The rollout for recertification will be done unit by unit. A total of 80% of all rigs is expected to have been reached by February 2013.

Wedding triggered highly efficient yard stayPrior to Maersk Completer’s yard stay in September, the plan was to complete all drilling activities on Brunei Shell Petroleum’s platform and move the rig to the nearby island of Labuan. However, the Brunei Royal Family sent an instruction to make sure there would be no interruptions to Brunei’s gas supply during the weekend as a royal wedding would be taking place. To move the rig it would be necessary to shut down production on the platform which produces most of the gas generating electricity for Brunei.“Althoughitinter-rupted our plan, you may say that the royal wedding was an unintentional as-sistance, as it enabled us to commence some of the yard stay projects while still on dayrate,”saysrigmanagerEddie Fitzgerald. The delay ended up triggering a highly efficient yard stay with only 7.5 days on zero rate com-pared to 23 days forecast.

Page 12: Maersk Drilling Newsletter

PERSONNEL

23Maersk Drilling

Newsletter – December 2012Newsletter – December 2012

22 Maersk Drilling

25th Anniversary

01.01.2013 Paw Nielsen, Subsea Engineer, DELIVERER Drilling Department

13.02.2013 Frank Henriksen, Engine Responsible, VOLVE Maintenance Department

23.02.2013 Philip David Mitchell, Tourpusher, DISCOVERER Drilling Department

01.03.2013 Alexander Macdonald, Drilling Equipment Commissioning Supervisor, Singapore

03.03.2013 Graham Robertson, Rig Administrator, GALLANT

23.03.2013 Ben Pomford, Drilling Superintendent, DISCOVERER Rig Team

50th Birthday

09.01.2013 Michael Sutherland, Barge Engineer, DELIVERER Marine Department

21.01.2013 Dag Torleif Andersen, Crane Operator, INNOVATOR Marine Department

24.01.2013 Soren Norgaard, Warehouse Clerk, Purlog

03.02.2013 Paul Massey, Warehouse Manager, Technical Organisation

08.02.2013 Hans Dirksen, Performance Coach, Operations

09.02.2013 PeterFlemmingSørensen,HSEQAuditor,QMHSE

09.02.2013 Jens Rise, Rig Manager, DELIVERER Rig Team

11.02.2013 Roberto Malinka, Barge Engineer, ELQAHER1MarineDepartment

13.02.2013 Ole Brinck, Head of Electrical & Instrumentation, Technical Organisation

15.02.2013 Graeme Mitchell, Electronic Technician, REACHER Maintenance Department

From jungle outskirts to concrete city When Jens Berge was offered the role of rig manager on the first newbuild drillship, it was an opportunity for him to leave his mark on a strategic cornerstone. It was also his chance to live out a lifelong dream to move to the U.s.a.

By Marlene Lyhne Sørensen, Strategy and Communication

FacTs

Jens Berge joined Maersk Drilling in 2002 with a maritime education and background. After four years in theNorwegianQMHSEDepartmenthe transferred into operations as assistant rig manager in 2006. He was promoted to rig manager in 2007 and for the past five years he has managed three different units in the North Sea and West Africa. In 2013 he will take management of the first newbuild drillship com-mencing operations in the US Gulf of Mexico.

Rig manager Jens Berge was enjoying being partoftheMærskDelivererteaminAngola.The two years with the rig had been his most challenging, but also the most rewarding, since he joined Maersk Drilling in 2002. Nine different clients in seven different African countries, as well as the need to deal with more than 20 nationalities and constantly fulfil new local content requirements often created a feeling among the rig team that if they could overcome the challenges involved, they could overcome anything.

“ItcreatedastrongteamspiritontheMærskDeliverer which made it a great place to work. Moreover, dealing with the challenges in West Africa has given me a new perspective onmanythings,”saysJensBerge.

DespiteenjoyinghisjobontheMærskDeliv-erer, he barely had to think twice when asset manager Claus Bachman called him one day in October.

“So,areyoureadyfornewchallenges?Whatabout becoming the rig manager for the first drillship?”ClausBachmanasked.

a tEMPting oFFErMærskDelivererstartedoperationsinAngolain May 2012 and Jens Berge still found plenty of challenges in his daily work. Nonetheless, Claus Bachman’s offer was too tempting to decline.

“Itisanopportunitytoleavemymarkonthefirst drillship’s start-up of operations. The drillships are an important cornerstone in our growth strategy and we want to hit the ground running. I will do everything in my power to ensure it happens. The biggest chal-lenge will be finding the right people to build a stableandhigh-performingcrew,”saysJensBerge.

He is currently in Copenhagen paying the headquarters a brief visit, but in January 2013

he will move to Houston and start the neces-sary preparations before the first newbuild drillship leaves the shipyard in Korea and enters the US Gulf of Mexico in late 2013.

“Iwillleavethejungleoutskirtsandmoveintotheconcretecity,”saysJensBerge.

As it happens, moving to the States will rep-resent the fulfilment of a lifelong aspiration.

“I’vealwayswantedtoliveintheUnitedStates, at least for a period of time, and now I’ve got the opportunity to combine it with a position that I find very interesting. Houston is the centre of the drilling industry and you are always close to the customers and many key vendors. On the personal front, I think the U.S. has a lot to offer in terms of places to go and things to do together with your family. I’mlookingforwardtothis,”saysJensBergewho has a girlfriend and a one-and-a-half year old daughter.

02.03.2013 Karen Rodsgaard, Medic, RESOLVE Administration

08.03.2013 Fraser James Edward Brown, Marine Relief, DWS Relief Pool

09.03.2013 Jens Ole Imer, Electronic Technician, COMPLETER Maintenance Department

12.03.2013 Lene Nykjaer Sorensen, HSE Advisor,QMHSE

17.03.2013 Robert James Jessamine, Tourpusher, HEYDAR ALIYEV Drilling Department

19.03.2013 Anita Sorensen, Rig Administrator, GALLANT Administration

20.03.2013 Erik Mohr, R&D Engineer, Electrical & Instrumentation, Technical Organisation

23.03.2013 Steen Frank Nielsen, Maintenance Supervisor, SNEFERU Maintenance Department

28.03.2013 Anders Moller Jensen, Senior Business Controller, Finance

60th Birthday

03.01.2013 Robin Young, Safety Officer, RESILIENT Administration

09.01.2013 George Grant, Electrician, ZOSER Maintenance Department

11.01.2013 William Duncan White, Rig Manager, DPS, Egypt Drilling Company

19.01.2013 Rolf Bjorgen, Rig Administrator, GIANT

03.03.2013 Douglas Cumming, OIM, RESILIENT

12.03.2013 Craig Henry Munro, Electrician, RESOLUTE

24.03.2013 Orla Eskegaard, Maintenance Supervisor, R&C Relief Pool

27.03.2013 David Swanton, Rig Administrator, INNOVATOR Administration

Promotion

Discoverer13.09.2012Przemyslaw Bartlomiej Ulaszewski, promoted from Assistant Barge Engineer to Barge Engineer

Convincer05.08.2012Paul Hearns, promoted from Driller to Lead Driller

Endurer19.08.2012Florin Lucian Iordache, promoted from Maintenance Engineer to Maintenance Supervisor

15.11.2012Jack Volder, promoted from Assistant Barge Engineer to Barge Engineer

reacher22.08.2012Dean Mcintyre, promoted from Lead Driller to Senior Toolpusher

gallant12.09.2012Øyvind Moholt, promoted from Maintenance Engineer to Maintenance Supervisor

innovator09.10.2012Anders Vestergaard, promoted from Lead Driller to Senior Toolpusher

heydar aliyev10.10.2012Edward Hahn, promoted from Tourpusher to Night Toolpusher

15.10.2012Alastair Donaldson, promoted from Tourpusher to Senior Toolpusher

24.10.2012Ariz Sultanov, promoted from Control Room Operator to Assistant Barge Engineer

24.10.2012Elkhan Ismayilov, promoted from Driller to Tourpusher

resilient17.10.2012William Pedersen, promoted from Barge Engineer to Assistant Barge Engineer

30.10.2012Erling Olsen, promoted from Barge Engineer to OIM

resolute24.10.2012Arno Matic, promoted from Assistant Barge Engineer to Barge Engineer

08.11.2012Christoffer Hansen, promoted from Barge Engineer to OIM

sneferu24.07.2012Craig Whitburn, promoted from Tourpusher to Senior Toolpusher

15.10.2012Peter Schmith, promoted from Senior Toolpusher to OIM

setty26.09.2012Carlos Foster, promoted from Driller to Performance Tourpusher

10.10.2012Hugh Bunton, promoted from Tourpusher to Night Toolpusher

El qaher 124.10.2012Raymond Forward, promoted from Tourpusher to Senior Toolpusher

31.10.2012Daniel Wilson, promoted from Driller to Performance Tourpusher

El qaher 226.08.2012James Joiner, promoted from Performance Tourpusher to Night Tourpusher

Jens Berge is ready for the first drillship.

Photo: Per Gudmann

Page 13: Maersk Drilling Newsletter

Facts on strategic social Investments

Making social investments strategic means addressing aspects of the social context that are not sufficiently developed. Filling such voids can in turn positively impact Maersk Drilling’s ability to operate, compete and thrive. The mine clearing project in Angola was selected firstly because West Africa is one of Maersk Drilling’s focus areasaspartofourAcceleratedGrowthStrategy,andMærskDelivereriscurrentlyoperating in Angola. Secondly, we wish to help make Angola a safer place and to facilitate new social and economic opportunities.

If you wish to support a good cause have a look through Maersk Drilling’s Strategic Social Investment (SSI) Guidelines. The Guidelines are available through the CSR Intranet page and can assist you in planning as well as in decision-making within commercial processes and in operations.

As part of Maersk Drilling’s Strategic Social Investments, Maersk Drilling employees have donated a total of USD 8,000 to a project led by Dan Church Aid (DCA) to remove land-mines in Angola. The amount was collected during a three-day auction in June, where promotional items and remaining Christmas presents were auctioned off among employ-ees of Maersk Drilling.

The donation made by Maersk Drilling employees has contributed to the purchase of personal protective equipment for DCA’s national de-miners in the field. DCA has made tremendous progress in mine clearance this year as of September 2012, the organisation

had cleared over 700,000 m2 of land in high-priority areas so that local populations may live, work and play in safety. This is the equivalent of over 70 standard-sized football pitches.

“OnbehalfofmyselfandmycolleaguesinMaersk Drilling, I am very proud of having helped to clear mines in Angola. It is great to get feedback to see that the money we have donated has been put to use and made a difference. The April Auction proved such a great success that we are talking about conducting a second auction together with employees in 2013, and donating the funds raisedtoanequallygoodcause,”saysWinnie

Kilhof Nielsen from the Commercial Depart-ment.

onE oF thE Most hEavily MinED CountriEsAngola is the most mined country in Sub-Saharan Africa and one of the most heavily mined countries in the world. The safety of the local citizens and other people operating in Angola is threatened. The proper socioeco-nomic development of local communities is prevented due to the extent of the contami-nation. DCA has carried out humanitarian mine action and worked systematically to reduce the threats of landmines and unex-ploded ordnance in Angola since 2004.

“Firstofall,abigthankstoeverybodyinMae-rsk Drilling who donated funds to Dan Church Aid (DCA) and demining in Angola earlier this year. Because of such generosity, DCA is able to continue carrying out this life-saving work and thanks to you, we are now one step closertoamine-freeAngola,”DCAstatesintheir update on Maersk Drilling’s contribution to demining in Angola.

Donations from Maersk Drilling employees have contributed to the mine clearance of more than 700,000 m2 of land in high-priority areas in Angola so that local populations may live, work and play in safety.

Maersk Drilling employees donate money to remove landmines In 2012 Maersk Drilling employees have donated a total of UsD 8,000 to remove landmines in angola. The money contributed to the purchase of personal protective equipment for national de-miners and by september an area equivalent to 70 standard-sized football pitches had been cleared.

By Rikke Augustinus Eriksen, CSR Advisor