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Well Construction Project Execution Plan Golfinho-Atum Development

Well Construction Project Execution Plan

Golfihno-Atum Development Document No. GF-090-AM1-CP-PEP-00001

Rev. 0 Rev Date: 5-30-18

G-A Development Well Project Execution Plan - Submitted - CONFIDENTIAL

Table of Contents 1 PROJECT OVERVIEW ....................................................................................................................... 8

1.1 INTRODUCTION ......................................................................................................................... 8 1.2 ACRONYMS AND DEFINITIONS ..................................................................................................... 8 1.3 OVERALL PROJECT SCOPE .......................................................................................................... 10 1.4 PROJECT DESCRIPTION ............................................................................................................. 10 1.5 PROJECT OBJECTIVES AND GOALS .............................................................................................. 12 1.6 PEP UPDATE PROCESS ............................................................................................................... 12

2 WELL CONSTRUCTION STRATEGY ................................................................................................... 13 2.1 CORE VALUES .......................................................................................................................... 13 2.2 MANAGEMENT SYSTEM ............................................................................................................ 13 2.3 WELL CONSTRUCTION PROCESS ................................................................................................. 14 2.4 EXECUTION FRAMEWORK ......................................................................................................... 15

3 WELL CONSTRUCTION PLAN .......................................................................................................... 17 3.1 WELLBORE CONFIGURATION ..................................................................................................... 17 3.2 OPERATIONAL SEQUENCE ......................................................................................................... 18 3.3 CAMPAIGN SCHEDULE .............................................................................................................. 19

4 PERSONNEL AND ORGANIZATION ................................................................................................... 22 4.1 RESOURCE ALLOCATION ........................................................................................................... 22 4.2 POSITION DESCRIPTIONS & COMPETENCY ................................................................................... 22 4.3 ORGANIZATION STRUCTURE ...................................................................................................... 22 4.4 JOB POSITIONS ........................................................................................................................ 23 4.5 JOB DESCRIPTION ..................................................................................................................... 25 4.6 LOCAL WORKFORCE DEVELOPMENT .................................................................................................. 27 4.7 RESOURCE TEAMS .................................................................................................................... 28

5 HEALTH, SAFETY AND ENVIRONMENT ............................................................................................. 29 5.1 INTRODUCTION ....................................................................................................................... 29 5.2 REGULATORY COMPLIANCE ...................................................................................................... 30 5.3 ENVIRONMENTAL MANAGEMENT PLAN ..................................................................................... 31 5.4 CONTRACTOR HSE MANAGEMENT ............................................................................................. 31 5.5 SECURITY ................................................................................................................................ 31 5.6 EMERGENCY PREPAREDNESS AND RESPONSE .............................................................................. 32 5.7 INCIDENT REPORTING AND INVESTIGATION ................................................................................ 32

6 OPERATION SUPERVISION ............................................................................................................. 34





6.1 HSE CRITICAL AND NON ROUTINE OPERATIONS ........................................................................... 34 6.2 HSE AND OPERATIONALLY CRITICAL EQUIPMENT ......................................................................... 34 6.3 UNPLANNED EVENT NOTIFICATION ............................................................................................ 35 6.4 MANAGEMENT OF CHANGE ...................................................................................................... 35 6.5 CONSENTS ................................................................................................................................. 37

7 RISK MANAGEMENT ..................................................................................................................... 38 7.1 HAZARD ANALYSIS PROCESS ...................................................................................................... 38 7.2 CAMPAIGN RISK ASSESSMENT ................................................................................................... 39 7.3 WELL RISK ASSESSMENT............................................................................................................ 39 7.4 OPERATIONS RISK ASSESSMENT ................................................................................................. 40 7.5 RISK MANAGEMENT DURING OPERATIONS ................................................................................. 41 7.6 POST CAMPAIGN REVIEW ......................................................................................................... 41

8 CONTRACTS & PROCUREMENT ...................................................................................................... 43 8.1 INTRODUCTION ....................................................................................................................... 43 8.2 CONTRACTING PROCESS ........................................................................................................... 43 8.3 RIG SPECIFICATION AND CONTRACTING STRATEGY ...................................................................... 44 8.4 MAJOR SERVICES CONTRACTING STRATEGY ................................................................................ 44 8.5 CONTRACT BUNDLING AND PRIORITIZATION ............................................................................... 45 8.6 CONTRACTOR MANAGEMENT ................................................................................................... 45 8.7 CONTRACTOR HSE MANAGEMENT ............................................................................................. 47

9 QUALITY ASSURANCE .................................................................................................................... 49 9.1 PROCESS DESCRIPTION ............................................................................................................. 49 9.2 PROCESS OUTLINE .................................................................................................................... 50

10 LOGISTICS ................................................................................................................................... 53 10.1 INTRODUCTION ....................................................................................................................... 53 10.2 LOGISTICS BASE ....................................................................................................................... 53 10.3 PORT FACILITY OPTIONS ............................................................................................................ 54 10.4 TRANSPORTATION ................................................................................................................... 56 10.5 PROJECT SUPPORT PLAN ........................................................................................................... 56

11 INFORMATION & DOCUMENTATION MANAGEMENT ........................................................................ 58 11.1 DOCUMENT CONTROL .............................................................................................................. 58 11.2 CAMPAIGN PLANNING REPORT .................................................................................................. 58 11.3 DAILY RIG REPORT .................................................................................................................... 59 11.4 STATUTORY, MANAGEMENT AND PARTNER REPORTING .............................................................. 59 11.5 WELL PERFORMANCE SUMMARY ............................................................................................... 59





11.6 END OF WELL REPORT .............................................................................................................. 60 11.7 TECHNICAL BULLETIN AND AUDIT FINDINGS ................................................................................ 60

12 PERFORMANCE MONITORING ....................................................................................................... 62 12.1 KEY PERFORMANCE INDICATORS ............................................................................................... 62 12.2 HSE & TECHNICAL PERFORMANCE INDICATORS ........................................................................... 62 12.3 COMMUNICATION AND DATA ANALYSIS ..................................................................................... 64 12.4 DRILLING CURVES AND OTHER MEASUREMENTS ......................................................................... 65 12.5 COST REDUCTION ..................................................................................................................... 65 12.6 BENCHMARKING ...................................................................................................................... 65

13 REVIEW & AUDIT .......................................................................................................................... 67 13.1 CAMPAIGN PLANNING REVIEW (DWOP/CWOP) ........................................................................... 67 13.2 POST WELL REVIEW AND CAMPAIGN WRAP UP ........................................................................... 67 13.3 AMS REVIEW ........................................................................................................................... 67 13.4 TECHNICAL AUDIT .................................................................................................................... 67

APPENDIX I: NOTIONAL RIG SPEC ............................................................................................................... 69 APPENDIX II: AMA1 DRAFT RIG CONTRACTING STRATEGY ............................................................................. 73 APPENDIX IIIA: AMA1 DRAFT SUPPORT SERVICES CONTRACTING STRATEGY .................................................... 78 APPENDIX IIIB: CONTRACTS LIST & PRIORITIZATION ...................................................................................... 89 APPENDIX IV: LOGISTICS REQUIREMENT ..................................................................................................... 91 APPENDIX V: PROJECT LEVEL RISK MATRIX .................................................................................................. 93 APPENDIX VI: CAMPAIGN LEVEL TOP RISK ................................................................................................... 95





List of Figures Figure 1-1: Golfinho-Atum Field Location Map ......................................................................................... 11 Figure 2-1: Well Delivery Process .............................................................................................................. 15 Figure 2-2: Execution Framework .............................................................................................................. 16 Figure 3-1: Wellbore Configuration ........................................................................................................... 18 Figure 3-2: Notional Well Construction Schedule ..................................................................................... 21 Figure 4-1: Well Construction Org Chart ................................................................................................... 24 Figure 7-1: Risk Assessment Levels ............................................................................................................ 39 Figure 7-2: Risk Assessment Matrix ........................................................................................................... 42 Figure 9-1: Campaign Quality Plan ............................................................................................................. 52 Figure 10-1: Satellite Image of Pemba Port Facility .................................................................................. 54





List of Tables Table 8-1: Contract Responsibility Matrix ................................................................................................. 43 Table 12-1: Technical Performance KPIs ................................................................................................... 64





1 PROJECT OVERVIEW

1.1 INTRODUCTION

This document is the Project Execution Plan (PEP) for well construction of the Golfinho-Atum Field. This PEP outlines key strategies, procedures and processes that will be used to successfully execute the Well Construction Plan (GF-090-AM1-CP-BOD-00001). In addition, this document provides details of the campaign objectives and technical scope.

The scope of this PEP covers the well construction process. The well construction team will use this PEP to ensure alignment with the project’s business objectives and as a road map for detailed planning. The document will also serve as a medium to communicate the execution plan to broader GA upstream teams (Subsurface and Subsea Functions), service support teams (C&P, Logistics, HSE, Aviation, ITS, Security), Contractors, management, partners (via DSPs) and other stakeholders.

In addition, this PEP will be used to,

• Document campaign objectives with respect to HSE obligations, requirements, standards and initiatives.

• Clarify roles and responsibilities within the team with respect to core management processes. • Define interfaces, responsibilities and communication internal and external to the well construction

team. • Define broad execution strategies that will be adopted for the phases of the campaign • Outline contracting strategies and processes to effectively provide all major equipment and services. • Describe campaign controls with respect to cost, schedule, MOC and reporting. • Outline transition strategies for final ownership handover to the Production Operations team

1.2 ACRONYMS AND DEFINITIONS AMA1 Anadarko Moçambique Área 1 Limitada APC Anadarko Petroleum Corporation API American Petroleum Institute BML Below Mud Line BOP Blow Out Preventer Bscfd Billion standard cubic feet per day CMP Contractor Management Plan C&P Contracts and Procurement CXT Christmas Tree CWOP Complete Well on Paper Sessions CWOR Completions & Workover Riser DOA Delegation of Authority DUAT Direito de Use e Aproveitamento da Terra (State granted land right to use and profit) DSP Decision Support Package





DWOP Drill Well on Paper sessions EIA Environmental Impact Assessment EMP Environmental Management Plan ENH Empresa Nacional de Hidrocarbonetos (National Oil Company) ENI Area 4 Operator EPC Engineering, Procurement, and Construction EPCC Exploration and Production Concession Contract EPCI Engineering, Procurement, Construction, and Installation ERP Emergency Response Plan FID Final Investment Decision (FID) GA Golfinho-Atum Field GoM Government of Mozambique HPWHH High Pressure Well Head Housing HR Human Resources HAZOP Hazard and Operability Study HAZID Hazard Identification HSE Health, Safety, and Environment INP Instituto Nacional de Petróleos (Oil & Gas Regulatory) ISO International Organization for Standardization ITP Inspection and Testing Plan ITT Invitation to Tender IWOCS Installation and Workover Control System KPI Key Performance Indicators LNG Liquefied Natural Gas LPWHH Low Pressure Well Head Housing MARPOL International Convention for the Prevention of Pollution from Ships MOC Management of Change MOF Material Offloading Facility MRF Material Release Form MTPA Million Tonnes per Annum PEP Project Execution Plan PIC Person in charge POD Plan of Development QA Quality Assurance QASSP Quality Assurance and Service Supply Plan QC Quality Control RBLL Rovuma Basin LNG Land, Lda SAP Systems Application Products (business application software) SOP Standard Operating Procedures THS Tubing Head Spool. TPI Third Party Inspection UWA Ultimate Work Authority WCP Well Construction Plan





1.3 OVERALL PROJECT SCOPE

AMA1 made significant gas discoveries off the northern coast of Mozambique. Development of these resources requires design and construction of subsea production facilities, producer wells and related subsea gathering systems, a two train onshore LNG facility for liquefying, storing, and exporting natural gas and associated liquids such as condensate. The construction and development will take place in a remote, environmentally-sensitive location lacking any existing infrastructure.

The plan requires the construction of 18 wells (including re-entry and completion of 3 maturation wells drilled in 2015) in the first phase of field development. Future expansion and development plans include additional wells to be delivered to supply gas to more onshore LNG trains.

Development of these facilities will occur in a safe, timely and cost-effective manner in order to meet the economic goals set in the POD approved by APC, partners and GoM.

1.4 PROJECT DESCRIPTION

Mozambique is located in southeast Africa. AMA1’s offshore gas discoveries are in the Golfinho-Atum and Prosperidade fields in Area 1 of the Rovuma Basin. The Golfinho-Atum Development is a deep water discovery located approximately 50 km offshore Mozambique. It will be developed as a subsea system tied back to an onshore LNG facility on the Afungi Peninsula located 10 km southeast of Palma. The onshore facilities will be constructed within the Project DUAT.

The following map shows the location of the project.





Figure 1-1: Golfinho-Atum Field Location Map

AMA1 is the operating company for the Area 1 development. The Golfinho-Atum field is entirely located within Area 1; therefore, it will be operated exclusively by AMA1. There have been additional gas discoveries offshore Mozambique in Area 4 of the Rovuma Basin. Area 4 is located adjacent to Area 1 to the east and is operated by ENI and its partners. This PEP is specific to the Golfinho-Atum field development of Area 1. AMA1 will be developing Area 1 with several Partners. The participants in the Area 1 EPCC are as follows,

• Empresa Nacional de Hidrocarbonetos, E.P. (“ENH”) – 15%. • Anadarko Mozambique Area 1 Limited (AMA1) – 26.5%. • Mitsui E&P Mozambique Area 1 Limited (“Mitsui”) – 20%. • BPRL Ventures Mozambique B. V. (“BPRL”) – 10%. • Beas Rovuma Energy Mozambique Limited (“BREML”) – 10%.





• ONGC Videsh Limited (“ONGC Videsh”) – 10%. • PTTEP Mozambique Area 1 Limited (“PTTEP MZA1”) – 8.5%

The project is a Greenfield development and consists of the following elements,

• Wells and infrastructure to deliver gas from the offshore fields. • Offshore facilities to collect and transport gas to the onshore facility. • Onshore facilities to receive and treat raw gas liquefy and store LNG and condensate. • Marine facilities to enable export of LNG and condensate. • Infrastructure and utilities to support construction, plant operations and workforce. • Resettlement of existing Mozambique residents within the DUAT.

1.5 PROJECT OBJECTIVES AND GOALS

The objective of the Project is to safely deliver an offshore gas field development by constructing offshore wells, pipelines and an onshore LNG facility consisting of two initial onshore LNG trains while planning for future expansion. Project success is defined as safe execution, minimal detrimental impact on the local population and environment, delivery on budget, delivery on schedule, quality that meets or exceeds project specifications, meeting stakeholder expectations and being in compliance with applicable current environmental and regulatory requirements. The key goals are summarized as follows,

• Develop a culture that emphasizes the importance of the involvement of all parties in the development and maintenance of a safe and incident free environment.

• Compliance with all environmental regulations and commitments, and alignment with industry best practices, minimizing impacts to people and the surroundings.

• Control of capital costs within agreed project objectives. • Construct wells and facilities with minimal detrimental impact to local inhabitants and the

environment. • Enhance the facilities, opportunities and prospects for the local community on the Afungi peninsula

and surrounding area

1.6 PEP UPDATE PROCESS

This PEP is a working, controlled document that is updated when necessary to reflect current campaign plans. Changes will be managed via the MOC process as outlined in Section 6.4. Every member of the team is expected to be familiar with this document. The Well Construction Manager is the document owner and will be responsible for keeping it live and updated as required. Feedback relative to improving this document shall be routed through the above mentioned. If an item in this PEP is unclear or not in alignment with actual practices of the campaign, it should be discussed with the relevant personnel in the team.





2 WELL CONSTRUCTION STRATEGY

2.1 CORE VALUES

The campaign will be executed in line with Anadarko’s core values. These values include Integrity and Trust, Servant Leadership, People and Passion, Commercial Focus, and Open Communication. The Well Construction Team will understand and execute AMA1’s strategy, safeguard the long-term interests of APC, AMA1 partners and other stakeholders, maintain high standards for health, safety and the environment and act responsibly with company assets. The team will not sacrifice long-term value for short-term gain and also not use the excuse, “we’ve always done it that way”.

2.2 MANAGEMENT SYSTEM

In addition to embracing APCs core value, a well construction management system will be developed and used for managing risks in order to protect people and the environment, as well as for standardizing how plans and procedures are to be developed. The management system will provide the framework, tools and direction to meet the key strategies outlined below.

HSE: Enable AMA1 to manage well construction in a healthy, safe and environmentally responsible manner. Assist in the growth of a culture that shows care and concern for individuals by developing procedures based on appropriate and relevant practices and safety standards and leveraging “Lessons Learned” from within the global industry and previous well construction campaigns.

Standards and Work Processes: Identify and implement appropriate industry practices. Establish and communicate a common set of objectives and expectations for use in managing well construction operations. Apply standards and procedures to meet or exceed requirements of the well construction management system. Provide a structure to organize processes, programs and procedures in order to deliver well delivery expectations and objectives. Apply consistent standards in HSE management, well integrity and risk assessment, campaign planning, well design, operations supervision, reporting and communications, Setting targets and monitoring performance, and contracting strategy.

Risk Management: Identify, evaluate and control risks to prevent or mitigate incidents that could impact people, the environment, and/or assets. Identify and mitigate significant risks as early as possible.

Rules, Regulations and Business Ethics: Comply with applicable laws and regulations and adhere to the highest business ethics standards. Promote open and honest communication, eliminate barriers and develop mutual trust among an integrated multi-functional team. Seek early input from key stakeholders and maintain active communication to ensure alignment.

Organization and Resources: Organize personnel with the skills, capabilities and experience to produce the strongest possible well construction team by maintaining appropriate staff personnel levels to provide expertise and continuity. Preserve area specific knowledge and expertise. Employ expert consultant staff when required. Follow a “plan for success” staffing strategy to ensure the right people (employees and consultant) are available at the right time, leveraging both AMA1’s and the industry’s experience.





New Technology and Continuous Improvement: Establish, maintain and enhance a communications network with other APC well construction teams to facilitate the transfer of technology, safety alerts, problem bulletins, performance improvement initiatives and results. Establish a process of planning and execution reviews with efficient feedback times to drive continuous improvement. Celebrate successes such as significant milestone achievements on a regular basis

Contracts and Procurement: Work with C&P to plan, develop and execute an effective contracting strategy, utilizing competent and motivated contractors while leveraging AMA1’s experience.

2.3 WELL CONSTRUCTION PROCESS

The core process for well construction involves the design, planning, execution, analysis and continuous improvement of drilling and completions activities. This process also includes sub-processes such as rig scheduling, well planning, well operations, well performance reviews and campaign performance reviews and support processes such as development of equipment specifications, procurement and tendering, contract administration, cost reporting, logistics and transportation. HSE leadership and management of asset integrity provide key controls that underpin all well construction processes.

As part of AMA1’s strategy, a well construction process has been mapped out to show key deliverables from the FEED stage at project concept to the Campaign Review stage at project closeout. Details of the well construction process and the deliverables at each stage gate or milestone can be found in The Mozambique Well Construction Process (MS Section 6.4)

The well delivery process is as shown in Figure 2-1





Figure 2-1: Well Delivery Process

2.4 EXECUTION FRAMEWORK

The different technical standards developed for the core well construction process and non-core processes from support teams will be developed and maintained according to the requirements of the relevant sections of the Well Construction Management System. These standards, which are referenced in the WCP and PEP documents, the major well construction-overarching documents, will be applied in the design and program of each well in the campaign. The framework is depicted in Figure 2-2.





Figure 2-2: Execution Framework





3 WELL CONSTRUCTION PLAN

3.1 WELLBORE CONFIGURATION

The well construction plan as per The Design, Fabrication and Testing of Well Construction Asset (MS Section 4.1) has been designed to deliver an average 150MMscf/d gas production rate for a 30-year life. The general casing program for the construction of the wellbore includes a jetted 36” conductor string set at 72m below mud line, a 20” surface casing string set through the fragile upper interval, then cemented to the mudline, and a 13 ⅝” intermediate / production casing string set below an Oligocene aged marker. A 10-3/4” production liner will be set just above the designated zone of interest before drilling a 9 ½” open hole through the reservoir. Based on strategies identified in section 2.2.6 of this PEP, a technology improvement opportunity is being researched where the reservoir is top set with a 13-5/8 x 10-3/4” tapered string, eliminating the need to make a separate run for the 10-3/4” liner. This could improve the well construction timeline and cost effectiveness. The base case design will be reflected in project economics until the tapered string design is finalized and validated.

In the keeper maturation wells drilled in 2015, the reservoir will be top set with a 10 ¾” liner upon well bore re-entry prior to under reaming the production interval.

The completion is designed with an open hole gravel pack system. The gravel pack packer is planned to be set inside the 10 ¾” liner with an isolation valve incorporated within the gravel pack assembly. Based on results from NODAL analysis, a 7” tubing string will be utilized to ensure the well is capable of delivering maximum rates through its lifetime with no limitations. The production string will have a 13 ⅝” x 7” production packer installed, to provide a pressure barrier from the reservoir to the surface and to serve as an anchor for the production tubing. The production packer will be set deep and above the liner lap. A telescoping space out joint assembly will also be installed in the production string. It will be used to land out the subsea tubing head when the tubing bottoms out in the gravel pack packer. A perforated sub in the tubing string will prevent trapped annulus pressure between the gravel pack packer and production packer. Figure 3-1 shows the planned completion for Golfinho-Atum.

The first of the subsea equipment packages to be deployed will consist of a wellhead system (LPWHH & HPWHH). This system will support the rig’s BOPs and provide the profile for landing the 13-5/8” casing hanger. The second package is the THS, which will be installed on the HPWHH prior to drilling the reservoir section. This provides a profile for landing the tubing head and an interface with the flow line jumper. The last subsea package that will be deployed is the CXT. The CXT is run on the CWOR package and it is landed and locked on the THS mandrel.

The following documents can be referenced for additional details’

• Golfinho-Atum Phase 1 Casing Stress Analysis document (GF-090-AM1-DR-BOD-0000X) • Golfinho-Atum Phase-1 Production Tubing Stress Analysis document (GF-090-AM1-CP-ANA-00002) • Golfinho-Atum Well Construction Plan document (GF-090-AM1-CP-BOD-00001)





Figure 3-1: Wellbore Configuration

3.2 OPERATIONAL SEQUENCE

Three of the six keeper maturation wells drilled in 2015 will be re-entered, cleaned out and under reamed to the top of the reservoir before a 10-3/4” liner is run and cemented. Generally, there are three distinct rig operations for the construction of each new wellbore. These are drilling, completions and flow back operations. In addition, each operation is separated into component phases. These phases are as described in Sections 3.2.1, 3.2.2 and 3.2.3. There are work steps associated within each phase described in more details in the Well Construction Plan document (GF-090-AM1-CP-BOD-00001).





3.2.1 Drilling Operations Phases

In fulfilment of Operations Excellence (MS Section 6.1), a drilling program will be prepared to cover procedures for all operations to be performed on each well bore including,

• Moving the rig to the well location • Running and jetting 36” conductor to 72 m bml • Drilling 26” hole sections to 1000 m bml. Running and setting 20” casing • Installing and testing BOPs • *Drilling 16” hole to Oligocene Marker. Running and setting 13-5/8” casing. • *Drilling 12-1/4” hole to top reservoir. Running and setting 10-3/4” liner. • Installing barriers. Unlatching BOPs. • Installing THS. Re-latching and testing BOPs. Recover barriers • Drilling 9-1/2” hole

*Note: For efficiency and cost effectiveness, 16” hole may be drilled to top of reservoir and a tapered 13-5/8” x 10-3/4” casing string run to top of reservoir. Feasibility of that design and its risk assessment is currently ongoing

3.2.2 Completions Operations Phases

As in section 3.2.1, a completions program will be prepared to cover procedures for all operations related to the completions designs for all wells including,

• Preparing wellbore for Completion • Running lower completion • Gravel Packing Open Hole • Running Upper Completion • Installing barriers. Unlatching BOPs

3.2.3 Reservoir Clean-up Operations Phases

• Run Subsea Tree on CWOR. Recover barriers • Flow well for clean up • Rig Down. Pull CWOR • Handover well to Production. Move Rig Off

3.3 CAMPAIGN SCHEDULE

As discussed, up to 18 wells are planned to be available for production upon startup of the LNG Facility. The strategy for the initial well count is to balance the objectives of supply assurance (high confidence that production will be sufficient to meet plant capacity for a pre-determined period) and capital efficiency (avoiding excess drilling to reduce initial capex, as well as to gather additional reservoir data, which will





be used to improve placement of subsequent wells). Additional analysis will be completed prior to the start of the campaign to further optimize that balance, and the well count may be adjusted accordingly

The well construction schedule for Phase-1 wells will be planned to assess critical geological uncertainties with the early wells, thereby facilitating optimization of the remaining program. As the project timeline calls for all wells to be available for production startup, the sequence is irrelevant to productive capacity. Drilling of wells in addition to the first 18 will be required to supplement the raw gas supply to the LNG Facility during the Development and Production Period. Data collected during the drilling of the initial wells, as well as production performance, will reveal an enormous quantity of information to improve the characterization of the reservoirs. Therefore, the number and location of future development wells is currently subject to a high degree of uncertainty.

The first well spud is anticipated 24 months after FID and a total campaign duration of 30 months is estimated for a planned one rig schedule. The first 2 wells and one re-entry in the schedule will be drilled, completed and cleaned up to test the lower completions performance. In addition, these wells will ensure delivery of fuel gas to the LNG plant prior to commissioning. A notional schedule is shown in Figure 3-2. This schedule will be optimized and drawn up to perform similar operations in batches for overall efficiency gains.





Figure 3-2: Notional Well Construction Schedule

Y6Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q203 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60

Group 1: 2 x new wells plus 1 x Re-entry Group 2: 5 x new wells Group 3: 4 x new wells plus 1 x Re-entry Group 4: 4 x new wells plus 1 x Re-entry

Y1 Y2 Y3 Y4 Y5

FID rig mob LNG fuel gas T1 SC

Group 1 Group 2 Group 3 Group 4

Drill

Complete

Re-entry

well construction planning work

rig de-mob





4 PERSONNEL AND ORGANIZATION

4.1 RESOURCE ALLOCATION

The team will be staffed according to the current and future well campaign needs for AMA1. It will have a staffing plan finalized before FID showing the mobilization and demobilization of team members. Skilled and qualified AMA1 personnel will be assigned to the project as required to support the Staffing Plan. Once a staffing need is identified, HR will work with the team to hire potential candidates by submitting an internal APC job posting or by working with a manpower consulting agency. The team leads with a subsequent decision from the Well Construction Manager to approve or reject will interview suitable candidates. New AMA1 personnel will go through the onboarding process as shown in the AMA1 Onboarding Orientation, EA-MZ-AD0000-APC-A01-00001-00. Depending on work location, Human Resources will engage the new personnel to determine visa requirements, work permits, vaccination and other requirements. If offshore travel is necessary, the Offshore Personnel Transfer document, EA-MZ-AD0000-APC-C17-00001-00, will be in effect. Personnel will need to go through the Demobilization process once their job assignment is completed

4.2 POSITION DESCRIPTIONS & COMPETENCY

Position descriptions for the team will be developed and maintained by the Well Construction Manager. The Position Descriptions contained in the staffing plan will be discussed and clearly explained to the team. Updates and improvements will be incorporated into Position Descriptions and communicated to everyone in positions where there is a job requirement change. The Well Construction Manager will assess competency of personnel and of contractors filling staff positions. Key elements of competency assessment will include,

• Pre-employment review of resumes, education and employment history. • Verification of skills, character and past performance through reference to past employers. • An interview process focused on the specific job requirements. • Confirmation the candidate satisfies a training needs assessment for the position, or that gaps in

training can be addressed. • Periodic (normally annually) documented reviews of performance in the role. • Assessment of training requirements and maintenance of training records

The team’s Competency Check List and Training Matrix Document (MS Section 2.2), currently being developed, will describe additional details for key job positions

4.3 ORGANIZATION STRUCTURE

The organization is designed to ensure continuity in key positions. As needs change, team personnel may change roles, responsibilities, or time dedication to the project. Staffing transitions will be planned to allow the team to expand and contract as warranted by the campaign requirements. Personnel from AMA1 and contractor groups will be employed on a full-time and on a part-time basis to fill management, interface, technical, field-work and specialist support needs. Organization planning will be reviewed





regularly to ensure the campaign is resourced appropriately and revised as necessary to meet the evolving needs of the project.

The team will be based in The Woodlands office in Texas during the design and initial planning phase pre-FID. It will transition to the Maputo office in Mozambique 9-12 months before spud. The Well Construction Manager will oversee the project from The Woodlands office with frequent visits to Maputo. The Organization Chart planned for execution is shown in Figure 4-1. Resource from support teams such as ITS, Security, C&P are currently not shown. Also not shown are coordinators from contractor organizations that will provide services and will be dedicated to the campaign. These positions include the Rig Manager, Directional Drilling and Surveying, Fluids, Tubular Running and others.

The team structure will be confirmed prior to the time of project execution.

4.4 JOB POSITIONS

The positions for which job descriptions, experience level, training and responsibilities have been identified are detailed in the Well Construction Organization, Roles and Responsibilities Document (MS Section 2.1). The job positions includes,

• Well Construction Manager • Engineering Manager • Operations Manager • Drilling Engineer • Completions Engineer • Performance Engineer • Subsea Engineer • Planning Engineer • Operations Coordinator • Rig Supervisor • Completions Specialist • Subsea Specialist • Rig Clerk • Fluid Consultant • HSE Advisor • Logistics Coordinator





Figure 4-1: Well Construction Org Chart





4.5 JOB DESCRIPTION 4.5.1 Management

In order to effectively execute well construction activities, the project is led by a Well Construction Manager serving as the team’s Delivery Manager. The team is primarily organized along engineering and operations lines with a team lead responsible for each. A well performance role is added to the well construction organization to foster the culture of continuous improvement through data analytics and application of new technology.

The Well Construction Manager provides overall leadership, makes high-level decisions and sets the strategic direction consistent with the project goals. A core function of the well construction manager is the development and management of the organization. He is responsible for the operational, technical, safety, environmental, financial, quality assurance and administrative aspects of the well construction campaign. He overviews the well delivery process to ensure compliance with APC policies and statutory regulations.

The Operations Manager reports directly to The Well Construction Manager and has overall responsibility for all aspects of the entire operation i.e. HSE, operational, technical, financial and administrative. He is the official line of communication between the Office (Maputo/The Woodlands) and The Field (rig). During drilling, completions and well clean-up activities, The Engineering Manager will play an active part in assessing any problems and proposing solutions and changes to the program or procedure. Any program changes requested or required will be routed through the Operations Manager and not sent directly to the rig. He is the focal point of contact with resource teams such as HSE, C&P, Logistics and external agencies e.g. INP

The Engineering Manager also reports directly to the Well Construction Manager and leads a group of Planning, Drilling and Completions Engineers. He is responsible for the provision of all engineering technical support for the well construction campaign. Also, included in the group is a Subsea Engineer’s position with responsibilities for full subsea system integration to well construction. Some of the subsea systems include CXT, THS and CWOR. The Engineering Manager supervises engineering support to the operation and has overall responsibility for optimizing well planning, costing for the drilling / completions operation.

4.5.2 Office Personnel

The Drilling Engineer will provide technical engineering support to the drilling operation and is responsible for delegated aspects of Drilling Program and end of well reporting. The Completions Engineer will also provide technical engineering support like the Drilling Engineer but for completions, well test and well clean-up operations. He will work with other members of the team to execute the completions program and the end of well report for the completions phase. In addition, both The Drilling Engineer and The Completion Engineer will monitor and ensure cost accuracy and spend during completions program execution. They will work with the rig consultants and the accountants to ensure costs are allocated correctly to the right codes in ‘openwells’ (field cost reporting) and SAP (invoiced cost reporting) applications. Both roles (Drilling/Completions) will ensure that the activities of the service companies





(tools, equipment and specialists) are well coordinated and aligned with the drilling/completions programs. The Completions Engineer will be supported by an Operations Coordinator and two Completions specialists (during the drilling phase) to supervise completions tools/equipment preparations and QA/QC efforts at the various contractors facilities in the region.

Three office based roles (Performance, Planning and Subsea) have been added to the org chart in order to fulfil some aspects of the well construction objectives. The Performance Engineer will provide the necessary interface for continuous improvement by monitoring well construction technical performance and comparing with benchmarked KPIs. The Engineer, whose work will be tied with the Real Time Solution Center in Houston, will provide regular feedback to the team on cost and performance issues. Part of the Performance Engineer’s role will also include monitoring the application of technology and advising the team on how such technologies can be adapted to create step changes in AMA1’s well construction performance.

The other key role is that of the Planning Engineer who will look after all of the design and planning work for upcoming wells on the rig schedule for drilling and completions. The Planning Engineer makes sure that the drilling and completions programs are ready before execution and ensures that risk assessments for each well are performed, organizes peer reviews, DWOP and CWOPs before programs are signed off. As part of the role, the Planning Engineer will prepare the AFE for each program and will work with the Drilling and Completions Engineers to ensure that the service companies are coordinated with details of the programs, close out any NPT events appropriately and reflect lessons learnt from previous operations in the programs being prepared.

The Subsea Engineer as previously described will provide all interface work required to install the THS CXT and CWOR successfully. He will work with the Planning Engineer to ensure that operational steps for installing the above equipment are captured in the completions program. He will oversee the handover and supervise all interface issues of the subsea equipment between The Subsea Team and The Well Construction Team. Part of his work will involve working with the suppliers in performing all necessary QA/QCs such as SITs, dock test and others to ensure the equipment will function as specified. He will advise the team on maintenance issues, equipment installation options and rig requirements for running and installing equipment. He will be assisted by two Subsea Specialists to cover night/day subsea operations on the rig and contractor’s facilities in Mozambique

4.5.3 Rig Personnel

The rig, which may likely be a dual derrick rig, will primarily have a Rig Supervisor acting as AMA1’s senior representative and focal point on the rig for all activities and operations. He will report directly to the Operations Manager. He is ultimately accountable for all operations on the rig and will be the primary contact for all phases of the operation from the rig to the office via the Operations Manager, regardless of operations in progress e.g. completions, testing, drilling. The Contractor’s PIC/UWA will have ultimate responsibility for the safety of all personnel onboard the rig and the safety of the installation. The Rig Supervisor liaises closely with the Contractor’s PIC or Rig Superintendent to ensure the approved Drilling, Completions, or other programs are correctly implemented and complied with. The Rig Supervisor will be responsible for preparing clear job instructions (POA) for driller / service companies for all operations and communicating to the office in clear, accurate and concise manner in both verbal and written terms. The





Rig Supervisor takes complete ownership of the daily drilling reports (DDR) and will ensure their completeness and accuracy.

Assisting the Rig Supervisor are two Assistant Rig Supervisors providing 24 hour coverage for rig operations. They help, in their respective day/night shifts, in carrying out duties and responsibilities as listed above, promoting good safety practices and behaviors and ensuring cost and cost effectiveness.

During completions and well clean-up/testing activities there will be two Completions Specialists on board the rig for round the clock coverage. They will work with the Assistant Rig Supervisors and report directly to the Rig Supervisor. They are responsible for supervising all completions operations, supervise service companies involved with completions and well testing/clean-up. Their functional reporting line is to the office based Completions Engineer who provides them with technical and functional support. Since the project is planning to have two completions specialist on the rig during completions operations, the day specialist will be designated the Senior Completions Specialist. All critical communications including any changes to program must be routed throughout the Senior Completions Specialist. As previously mentioned, during the drilling phase, the Completions Specialist will assist the Operations Coordinator (role described below) with QA/QC work for completions equipment, tool make tests and other work at the various contractor facilities in the region.

Some of the other players who are not office based or rig based but work to support the project from other locations (mostly contractor facilities) include The Operations Coordinator and The Fluids Consultant. The Operations Coordinator’s role is to ensure that completions tools and equipment are prepared and made up by the contractors to the correct standards before mobilization to the rig. He provides the contractors with the crucial details of well functionality, timing, verifies specification and certification and witnesses various QA/QC tests. He is a vital interface between the Completions Engineer, the Contractors, the Logistics team and Completions Specialists.

The Fluids Consultant helps to maintain fluids at their desired properties. They will assist in fluid volumetric and maintaining the right inventory of chemicals. As such, he will work closely with the fluids contractor to ensure the mud/brine plants and, the bulk storage units are operated effectively to supply the rig with drilling and completions fluids when required. Tank cleanliness at the mud plant supply base, the supply vessels and the rigs will be one of his areas of responsibilities. He will be required to visit the rig, the mud plant and the supply base frequently.

4.6 Local Workforce Development

In support of AMA1s national content development strategy, the well construction team will continue to promote opportunities for Mozambicans to participate in the project by implementing plans that respectively target employment, training and development. The Well Construction Team will encourage knowledge transfer between expats and locals at all levels. Office and rig based positions will be identified early in the program and a plan to nurture locals into these positions will be developed. Also, rig and service companies will participate in AMA1’s local work force development strategy.





4.7 RESOURCE TEAMS

Support processes would preferably be executed by competent experts from other AMA1 Resource Teams or other APC Corporate resources. The principle non-core areas where support will be required are

• HSE, where additional support would be sought for local legislative requirements related to health, safety, environmental and community issues and for assistance with HSE audits, incident investigation and training.

• Procurement, tendering and contracting, which may be supported by appropriate personnel under the direction of the well construction team.

• Logistics and supply, where support would be sought through the Logistics or Supply Chain for materials handling, supply vessels, aviation, customs and immigration clearances.

• Aviation Services, for assistance with chartering aircraft, setting up fixed-wing or helicopter operations and technical / safety audits of aircraft and operators.

• Human Resources of assistance with recruiting, performance improvement, transfers, salary administration and career development.

• Finance and administration, support for SAP, cost control and reporting, invoice processing, reconciliation and the budget process.

• Legal, for contract vetting, FCPA issues, background check, advice and assistance with local legislative requirements as they affect operations

• Security • Information Technology and Systems





5 HEALTH, SAFETY AND ENVIRONMENT

5.1 INTRODUCTION

The Well Construction Team will design, construct, and repair wells throughout their lifespan in a manner that protects employees, contractors, communities and the environment. The campaign will be implemented in compliance with APC and applicable international and Mozambique laws and regulations. Well operations will be aligned with best industry practices to the extent practicable. The well construction execution framework described in Section 2.4 will be utilized to manage the team’s plans and procedures in furtherance of these objectives. In case of conflict, the more stringent requirement will apply. During all phases of the well campaign, the team will,

• Manage assets in a safe and environmentally responsible manner. • Ensure the health and safety of all personnel under AMA1 control • Design and execute operations based on best industry practice and technical considerations. • Minimize environmental impact as per commitments made in the EIA. • Conduct operations, including flaring, in a manner that minimizes risks to people and environment. • Closely manage contractor and vendor selection. • Motivate personnel at all levels on HSE issues. • Assess ongoing contractor performance with agreed KPIs and document performance reviews • Motivate and hold accountable all personnel at all levels on HSE issues • Using both leading and lagging indicators, seek to continuously improve HSE metrics and processes.

Key HSE goals are summarized as follows,

• To maintain an incident free workplace. • Ensure that safety has a visibly high priority in decisions involving design options, construction

procedures and cost/schedule trade-offs. • Develop a positive culture emphasizing the importance of the involvement of all parties and personnel

in developing, maintaining and enhancing a safe environment, which embraces the aspiration that all HSE incidents and injuries are preventable.

• Celebrate performance and ensure that everyone is recognized and rewarded for success • Secure and protect all personnel, facilities, assets, and operations. • Ensure that all observations, both positive and negative are recorded, assessed and tracked with

effective initiatives developed to address identified trends. • Investigate Incidents and Near Misses according to APC standards and ensure that key lessons are

learnt, documented and that actions are tracked until satisfactory closure.

Work will be performed in a manner that meets AMA1’s performance requirements in compliance with applicable environmental commitments, laws and regulations. Where specific national laws and regulations do not exist, compliance with international and APC standards will be required.





Wastes (hazardous and non-hazardous) generated during well construction activities will be managed in consideration of applicable legislation, project commitments, AMA1’s procedures and international standards. Waste management options will utilize the following hierarchy,

• Eliminate waste. • Reduce the amount of waste produced. • Reuse materials where possible. • Recycle waste where feasible. • Treat and dispose of residual wastes responsibly. • Avoid or reduce potential impacts on biodiversity and ecosystem services.

The primary project HSE document, the AMA1 HSE Plan, will be complied with through a well construction HSE document. It will define policies, procedures and guidelines for safety and environmental matters related to all activities conducted during the well construction process. Compliance with the policies and are is mandatory and shall be monitored and enforced. In preparing this document, current practices and procedures within APCs well construction groups and the industry at large may also be assimilated, according to the priorities defined in the well construction management system. The management system requires that all activities be planned, executed and analyzed to ensure the safety of personnel and equipment. The document will include requirements for,

• General safety rules, behaviors and responsibilities including STOP work authority • An effective, proactive safety observation program • A permit to work system • Induction, training and competency assessments • Hazardous material management • Job safety analysis • Safety alert procedures • Emergency response • Environmental guidelines • Drug and alcohol policies • Immunization and travel requirements

5.2 REGULATORY COMPLIANCE

Regulatory Compliance Plans are defined for land use issues, legal aspects, permits, and understanding of the expectations for compliance with all local and national regulations required in the country of Mozambique. All permits required for the campaign and operation with definition of responsibility for acquisition and schedule will be identified and requested through the work process identified in the Permit Request Procedure, EA-MZPM0000-APC-P33-00004-00. Permit acquisition will require alignment between AMA1 well construction and service providers/contractors to ensure engineering deliverables are issued in a timely manner.





5.3 ENVIRONMENTAL MANAGEMENT PLAN

The campaign execution will entail management of environmental and social impacts and risk. The Environmental Management Plan developed for the project seeks to,

• Ensure the Environmental Impact Assessment approval conditions, Mozambique laws and regulations, lender commitments and industry good practices are addressed under the AMS.

• Define measures required to implement construction and operations-related management and mitigation requirements.

• Communicate environmental goals throughout the campaign and strive towards continuous improvement.

The AMA1 HSE team will monitor and report on Contractor environmental performance to verify that the measures in AMA1 Environmental Management Plan, EA-MZ-SR0000APC-C01-00009-00, are being complied with.

5.4 CONTRACTOR HSE MANAGEMENT

Contractors will be required to comply with national laws and conform to applicable AMS requirements, codes and international standards. Contractors will be required to develop, implement and maintain an HSE Plan and the associated procedures in compliance with AMA1 requirements and necessary to perform work safely and in a manner that avoids, minimizes and mitigates impacts to the environment and local communities. The HSE Plan requirements of contractors will be based on the risk associated with the services being contracted. The HSE contractor engagement process is likely to include prequalification, tendering, selection, bridging (verification of alignment between contractor and company HSE programs), and the need for continuous improvement.

5.5 SECURITY

The Project Security Plan will guide the campaign’s security objective. The objective of the security program is to protect personnel, assets, and operations, in a manner that is consistent with the applicable laws and standards, Company core values, and the furtherance of the project’s social license to operate in Mozambique.

The process for developing and delivering the security program is as follows; initial and continual assessment of the related security threat and risk factors serves to identify the corresponding security countermeasures. These measures are consolidated into an activity specific security support program, which is documented and detailed in the form of a security plan. The implementation of the security plan includes a documented quality assurance mechanism to ensure optimal standards, and that the security program remains adapted to a potentially evolving security environment

The plan includes measures to protect and separate campaign personnel and facilities from potential threats including malevolent actions from groups or individuals (criminal or terrorist), civil unrest (social)





and any potential security risk resulting from accidents or acts of nature. The Security strategy consists of a multi-layered solution based on the development of the following capacities:

• Detect: Independent and interoperable human and technical surveillance and monitoring capabilities designed to identify any unauthorized or suspect presence, as well as any security breaches.

• Deter: A measured security profile designed to inform and dissuade all but the most determined hostile action.

• Delay: Physical and technical barriers and obstacles which would require time, effort, and exposure to engage or penetrate.

• Respond: The capacity to intervene, in accordance with established procedures, against any suspect presence or hostile action.

• Recovery: The capacity to resume operational activities following an incident or crisis. • Reassessment: Routine and specific security assessments and evaluations to ensure the required

levels of protection are maintained

5.6 EMERGENCY PREPAREDNESS AND RESPONSE

AMA1 has developed an ERP specific to operations in Mozambique. The ERP is designed to help AMA1 respond appropriately to incidents. The ERP’s primary goal is to help AMA1 mitigate any injury, loss of life, damage to property or harm to the environment.

The purpose of the ERP is to, • Serve as the basis for an organized action plan for dealing with an emergency. • Define responsibility, priority, and importance in countering an emergency. • Provide information regarding proper handling of serious incidents and identifying the organizations

involved. • Define the protocol for communicating with personnel and agencies during an emergency.

The ERP operates within a tiered response framework where the response level is determined by the complexity of the incident, the risk to personnel, and the impact to the environment. The ERP utilizes the Incident Command System, which provides a systematic and proactive management approach to guide departments to work seamlessly in order to reduce the loss of life and property as well as to reduce harm to the environment. Reference the Emergency Preparedness and Response Plan, EA-MZ-SR0000-APC-P18-00001-00, for further information.

5.7 INCIDENT REPORTING AND INVESTIGATION

AMA1 is responsible for reporting incidents involving employee occupational injury or illness, vehicle accidents, property loss, third-party injury or illness, third-party property damage, spills, and air releases. Procedures for incident reporting to Regulatory Authorities have been established to comply with Mozambique Legal Requirements. A uniform method has been established for the investigation of incidents, identification of incident cause(s), and implementation of corrective actions in order to prevent or reduce the likelihood of recurrence of similar incidents. Incident Levels between 0 and 3 are assigned





based on severity of the incident and an investigation is required for Incident Levels between 1 and 3. Investigation findings and corrective actions are documented and communicated as applicable.





6 OPERATION SUPERVISION

6.1 HSE CRITICAL AND NON ROUTINE OPERATIONS

Prior to commencing any operations, a detailed project risk assessment will be carried out to identify procedures required to prevent failure or loss of control, or to mitigate the consequences of such a failure or loss of control. All risks will be defined and ranked at both initial (raw) and residual (mitigated) levels. An HSE critical operation is any operation where the consequence of equipment failure or loss of control could result in a major accident, significant material or equipment damage, serious personal injury, fatality or significant harm to the environment. Operations such as well testing, heavy lifts, drilling close to the cones of uncertainty of producing wells would be considered HSE critical. Controlled written procedures based on the risk assessment will be in place prior to commencing the HSE critical or non-routine operation. While standard procedures may be appropriate, HSE-critical and non-routine operations will usually require the development of job-specific procedures. Medium/High risk operations on the rig will be required to be conducted under a Permit to Work (PTW) system (e.g. for vessel entry, work on safety systems, working overboard or in the moon pool area, etc.).

6.2 HSE AND OPERATIONALLY CRITICAL EQUIPMENT

Equipment inspection and audit procedures will be developed to ensure the proper maintenance and function of critical equipment. HSE critical equipment is any item of equipment, or systems, whose failure could cause, or contribute substantially to, a major accident, significant material or equipment damage, serious injury, fatality or significant harm to the environment. It also includes those items of equipment, or systems, intended to prevent or limit the effect of a major accident. HSE critical equipment provided by service contractors and suppliers for use on the rig will be subject to verification by an independent, competent person. Prior to being put in service on the rig, the UWA (person in charge) for the rig shall ensure to his own satisfaction that the HSE critical equipment supplied have been designed, constructed, maintained, tested, commissioned and installed on the rig such that they will operate as per requirement. Operators of the HSE critical equipment shall be confirmed as appropriately trained, qualified and verified competent.

Routine testing of HSE critical equipment and systems will be implemented where necessary to ensure that such equipment or systems are maintained in good operating conditions. Such tests will be conducted by competent persons and shall be witnessed by, or on behalf of AMA1. The results of such tests will be recorded in the relevant well files. Testing of HSE critical equipment and systems should include the following:

• Emergency power supply systems • Emergency well kill pumps and their fluid supply systems • Casing pressure tests. • LOTs and FITs • Well Control Equipment testing. • Well completion pressure tests.





• Well tests on clean up or flow back packages • Test string and surface equipment pressure tests. • Load tests and other non-destructive tests on cranes, lifting appliances and lifting gear

6.3 UNPLANNED EVENT NOTIFICATION

The well construction manager will be notified within an hour of any significant incident or unplanned event including:

• All LTIs and Reportable Spills. • Serious incident or near-misses involving rig stability, aviation, supply vessels, security, criminal act or

equipment damage, where the potential for fatality exists. • Well control incidents where non-routine well-kill procedures may be required. • Stuck pipe incidents where sidetrack or extended duration fishing operations may be required.

6.4 MANAGEMENT OF CHANGE

The AMA1 MOC document procedures will be implemented to ensure that changes to policies, equipment, personnel, procedures and approved programs are properly assessed, managed, authorized and communicated to relevant parties.

6.4.1 Changes to policies

Compliance with policies as contained in various well construction management systems is mandatory for all operations. Any deviations from policy will require appropriate risk assessment and the approval of the Well Construction Manager. This approval must be documented in a manner that leaves an acceptable audit trail.

6.4.2 Contractor’s Equipment Change Management

Audits of contractor’s HSE systems will include the contractor’s procedures for changes to equipment and system design, lay-out, arrangement and use (including equipment replacement), so as to ensure that unauthorized changes are not made and to ensure that changes are properly engineered and prevent hazardous situations arising. It must be ensured that Rig Contractor and Services Contractors have procedures in place for bringing equipment changes to the attention of the Rig Supervisor and for seeking his approval prior to the changes being implemented.

6.4.3 Program Change Management

Changes which may compromise program objectives would be discussed with the Subsurface Team prior to initiating the change. Unauthorized changes to the program will only be made at the well site in





emergency situations. As soon as is practicable, the nature and reason for the change shall be communicated to the Ops Manager and his authorization obtained to proceed with the program.

The required level of authorization for a particular change to a program will depend on the magnitude or significance of the change. This may range from verbal confirmation by the Ops Manager to written authorization by all original well program signatories.

The Ops Manager shall ensure that changes from procedures specified in the drilling, completion or testing program are made in writing and communicated to the Rig Supervisor and as appropriate the Engineering Manager. The Ops Manager shall also ensure that barrier analysis is conducted if the integrity of the well, drill string or well control equipment is affected. The required level of authorization for a program change will be determined by the Ops Manager.

6.4.4 Personnel Changes

Detailed handover notes will be written and kept as a record in the rig handover book. When possible, crew changes shall be scheduled to allow for a reasonable handover period between both AMA1 and Rig Contractor supervisors. AMA1 and Rig Contractor supervisors shall stagger their respective crew changes to ensure they do not all change out at the same time. AMA1 Supervisors and Engineers should be thoroughly briefed by the Ops Manager or Engineering Manager prior to going to the rig site. The briefing would include, as a minimum:

• AMA1 expectations. • Regulatory requirements for the operations area. • Well specific details. • Reporting relationships. • Emergency Response arrangements. • Change Management procedures.

Staff and contract personnel working in the AMA1 Well Construction organization for the first time must be formally inducted. Similar handover briefing procedures should also be in place for the Rig Contractor and major Service Contractors at tour and hitch handovers. A MoC-Personnel Request process will be triggered for personnel changes for personnel in the following positions

• AMA1 Drilling and Completion Engineers • AMA1 Consultant Drilling, Subsea and Completion Engineers • AMA1 Operations Manager, Engineering Manager • AMA1 Rig Supervisors/Completion Specialists/Subsea Specialists • Exempt are Contractor and 3rd Party personnel not related to the operation of Critical Equipment

In addition, the MoC-Personnel Request process would be dated and numbered. The following information should be completed in the MoC-Personnel Request process:

• Impacted Party and proposed timeframe





• Affected Role / Position / Personnel • Requested Personnel Change • Justification for the requested personnel change • Training required prior to making the personnel change • Handover or Other requirements that should be addressed prior to making the personnel change

approvals

6.5 Consents

The Well Construction Manager in coordination with appropriate support resources must determine the extent to which partner and government agencies consents are required for specific operations. He will establish and maintain a checklist of those operations (for example completion interval, well-testing, suspension, abandonment) for which either partner or government prior consent is required. In addition, he would ensure that requests for consent are made to partners and government agencies in a timely manner and are properly documented.





7 RISK MANAGEMENT

7.1 HAZARD ANALYSIS PROCESS

The Well Construction Team will actively seek to identify all significant risks to the campaign. The key strategy is to address risk as a whole, including risk to the contractors and external parties contributing to the project. Risk is defined as any activity or situation that threatens to significantly undermine the safety, environmental, schedule, cost, or other performance objective for the project. Process Safety and Environmental Risk identification and mitigation is addressed through HSE procedures.

A risk management process Well Construction Hazard Analysis Process (MS 3.1) is currently being worked on and expected to be finished by FID. It will be developed to cover the scheduling, methodology and documentation of all the different stages of risk assessment conducted during the well construction process. Risk assessment would be an integral part of the overall well planning process. It will be conducted in all of the major phases of the campaign life cycle, each of which is discussed separately and in further detail below. Emphasis would be placed on joint risk assessment with the rig contractor and service companies, particularly for identification of operational risks. Based upon the detailed risk assessments conducted at each stage of the campaign life cycle, the well construction team would be able to focus in good time on major risk and HSE-critical operations.

Risk assessments will be conducted at the three different stages shown in figure 7-1 and results will be captured in a well construction risk register. An overall project level risk assessment was performed using the G-A development project risk matrix as per Appendix V. The project matrix puts well construction in same context as the onshore LNG plant and Subsea.

The risks identified are in the project risk register, the top 20 risks are listed in Appendix VI.





Figure 7-1: Risk Assessment Levels

7.2 CAMPAIGN RISK ASSESSMENT

The ‘Campaign Risk Assessment’ will be updated as soon as a tentative well construction schedule is compiled and prior to issuing scouting enquiries (rig pre-qualification) for the hire of a rig. The objective of front-end campaign planning and campaign risk management is to identify all of the potential risk arising from the planned operations at the specific well location. The particular hazards, which are identified, will normally arise from the particular constraints (geographical, logistical, environmental, legislative, etc.) or peculiarities of the well area of operations and the specific well location. The risk assessment process would commence with the team identifying all of the potential hazards arising from the intended well locations, then consider the proposed well schedule, the optimum rig-type identified, tentative rig availability and associated equipment specifications and logistical support requirements. A brief “brainstorming” review session would then be held, to identify the potential risks for each well proposed for the GA campaign on the well construction schedule. As part of the Campaign Risk Assessment the Risk identified will be risk ranked according to The Well Construction Team’s Risk Assessment Matrix provided in Figure 7-2

7.3 WELL RISK ASSESSMENT

A ‘Well Risk Assessment’ will be conducted once a definitive well proposal is received and either a rig has been identified or contracted. The Well Hazard assessment will be conducted as part of the well design exercise and it should seek to identify specific hazards arising from peculiarities of the well design, for example abnormal pressure, fluid composition, shallow gas and any environmental issues specific to the





well design. The Well Hazard Assessment would consider those hazards, which have been identified during the development of the well design, in addition to studying in greater detail those, which

may have been identified during the earlier Campaign Risk Assessment. Hazards identified will be ‘major’ hazards and should not include ‘normal’ well construction occurrences as ‘hazards’ or ‘risks’, for example minor lost circulation, sticky hole conditions or expectations of over-pull. Risks will be restricted to unusual activities that could adversely affect the well duration or costs, which may have a safety or environmental impact or which might impact equipment specifications or selection.

The Well Hazard Assessment will be documented in a report, detailing the major risks identified, their consequences, their controlling factors, the recommended and agreed mitigating actions and agreed action parties. All risks identified will be entered into the Risk Register for future tracking.

The results of the Well Hazard Assessment will provide inputs to the following,

• Final well design. • Final drilling/completions program. • Confirmation of equipment needs / selection prior to rig- or service-contract award. • Development of drilling/completions or other operations procedures (rig-move, environmental etc.). • Operations Risk Assessment (see Section 6.3 below). • Additional engineering or further technical studies required

7.4 OPERATIONS RISK ASSESSMENT

An ‘Operations Risk Assessment’ will be conducted prior to operations commencing and would include representatives from the drilling contractor, supply vessel contractors and other service contractors. Since the ‘Well Risk Assessment’ considered hazards arising mainly from the characteristics of the well design, the ‘Operations Risk Assessment’ would aim to identify hazards which are particular to the rig general arrangement, the operational interfaces between the rig equipment and the well, and the rig, service contractors equipment or drilling equipment limitations. The deliverables include,

• Identification of additional rig-specific and interface hazards, the estimated frequency and possible consequences of those risks

• Agreement on mitigating actions and controls required, the assignment of future deliverables or agreed actions to specific action parties, and agreement on deadlines.

• Preparation of contingency plans, where mitigating actions are not possible. • Confirmation that the rig contractor’s and service contractors HSE Management Systems interface

effectively with AMA1 HSE system and AMS. • Development of an action plan for hazard/risk monitoring and assessment during the operational

implementation phase.

The Operations Hazard Assessment would be properly documented and formalized in a report, with the results used as inputs to the following campaign documents,


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