Drilling and Workover Aramco Training 2013_2.pdf

Drilling and Workover

Health, Safety and Environmental Requirements Manual

Drilling and Workover HSE Requirements Manual / Overview 1. Purpose The purpose of this Drilling and Workover (D&WO) Health, Safety and Environmental Requirements Manual (HSERM) is to establish a uniform and comprehensive set of Health, Safety and Environmental (HSE) requirements that are applicable to Contractor and Saudi Aramco owned rigs, assets, facilities, and operating and support organizations of Saudi Aramco D&WO.

2. The D&WO HSERM A. Defines the HSE requirements for Contractor and Saudi Aramco owned rigs, assets, facilities, and operating and support organizations of Saudi Aramco D&WO. B. Replaces the 2008 D&WO Saudi Aramco Safety Requirements (SASR), all D&WO HSE procedures and combines all into one centralized HSE Requirements Manual (HSERM). C. Incorporates audit recommendations from prior audits (LPCR/SAMIR) and recommendations from D&WO Department Managers. D. Formatted in accordance with D&WO’s Document Control Procedure (DCP 001 / Current version).

3. D&WO HSE Vision To elevate D&WO’s HSE performance to the highest professional level through continuously enhancing the awareness and quality of the workforce and by effectively integrating HSE into the Saudi Aramco Culture. In so doing, we strive to provide the most professional service and support to Saudi Aramco D&WO.

4. D&WO HSE Mission To provide professional HSE support to Saudi Aramco D&WO to protect our employees, assets and the environment, in a highly professional and efficient manner using the most qualified workforce and technology, in compliance with Saudi Aramco policies, procedures and relevant government laws and regulations. 5. Scope The D&WO HSERM applies to Contractor and Saudi Aramco owned rigs, assets, facilities, and operating and support organizations of Saudi Aramco D&WO. 6. The D&WO HSERM is organized into five (5) Sections as follows: A. Section A: Administrative Requirements. B. Section B: General Requirements. C. Section C: Special Operation(s) Requirements. D. Section D: Offshore Requirements. ii

Drilling and Workover HSE Requirements Manual / Overview E. Section E: Environment and Occupational Health Requirements.

7. How to use this Manual Managers are responsible for ensuring the requirements of the D&WO HSERM are complied with. Managers shall: A. Review, understand and acknowledge the requirements within the D&WO HSERM. B. Evaluate the current HSE status of your areas of responsibility, in reference to the requirements of the D&WO HSERM. C. Ensure compliance with the D&WO HSERM. D. Contact Drilling Operational Excellence & Compliance Division (DOE&CD) for guidance and assistance, as needed.

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Drilling and Workover HSE Requirements Manual / Overview D&WO Loss Prevention Policy Statement

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Table of Contents Section A

Administrative Requirements

Section B

General Requirements

Section C

Special Operation(s) Requirements

Section D

Offshore Requirements Section E

Environment and Occupational Health Requirements

A Administrative Requirements

Section A / Administrative Requirements D&WO HSE Requirements Manual SA-DWO-HSERM-AR-001-R0_Section A / Administrative Requirements Document Title: Section A / Administrative Requirements Document Owner: SA-VP-D&WO Review Interval: 48 Months

Date: January 2013

Section A Administrative Requirements

SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual

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Section A / Administrative Requirements D&WO HSE Requirements Manual Table of Contents Contents A-1 A-2 A-3 A-4 A-5 A-6 A-7 A-8 A-9 A-10 A-11 A-12 A-13 A-14 A-15 A-16 A-17 A-18 A-19 A-20 A-21 A-22 A-23 A-24

Page Definitions, Abbreviations and Acronyms (DA&A) Reference Material (RM) General Safety Rules (GSR) Rig Operators Responsibilities for Loss prevention (ROR) Competency and Training (CT) Emergency Drills (ED) Drops Program (DP) Short Service Employee Program (SSEP) Requirements for SIMOPS, Land Rigs (SIMOPS) Journey Management (JM) Working with Service Companies (WWSC) Safe Work Authorization Procedure (SWAP) Monthly HSE Performance Monitoring (MHSEMR) Job Safety Analysis (JSA) Safety Inspection and Reporting Procedure (SI&RP) Management of Change (MOC) Risk Management Manual (RMM) Waiver of High Risk HSE Requirements (WHRHSER) Lock-out/Tag-Out (LOTO) Third Party Equipment Installation (TPEI) Confined Space (CS) Incident Reporting and Analysis (IR&A) Spudding In and Rig/Location Release (SI&RLR) Pre-Tour Checklist/Driller Handover (PTC/DH)

4 12 16 21 25 39 65 69 73 77 95 97 109 116 122 138 147 164 170 174 177 196 225 232

Revision Summary

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-1

Definitions, Abbreviations and Acronyms

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-1 / Definitions, Abbreviations and Acronyms (DA&A) A-1a / Definitions Company Competent Person

Contractor

Corrective Action

D&WO HSE Performance Report D&WO Performance Management System (PMS) Drilling Information Highway (DIH) Drilling Safety and Environmental Leadership initiative (DSELI) E&OH Management

E&OH Performance

The term, "Company", as used throughout this document, shall be understood to mean Saudi Aramco. "One who is capable of identifying existing and predictable hazards in the surroundings or working conditions which are unsanitary, hazardous, or dangerous to employees, and who has written authorization to take prompt corrective measures to eliminate them". By way of training and/or experience, a competent person is knowledgeable of applicable standards, is capable of identifying workplace hazards relating to the specific operation, and has the authority to correct them. Some standards add additional specific requirements which must be met by the competent person. A person or an organization providing services to SA at SA facilities/worksites in accordance with agreed specifications, terms and conditions. This does not include Supplemental Manpower (SMP) working directly for SA. Action to eliminate the cause of a detected nonconformity or other undesirable situation. Note: Corrective Action is taken to prevent recurrence whereas preventive action is taken to prevent occurrence. A measurement tool that reports actual progress toward meeting the goals as defined in the HSE Plan. Along with other KPI’s the report identifies safety performance compliance and deficiencies. An on-line dashboard that provides management with a quick-look capability at benchmarking KPI’s including HSE. An intranet based website where HSE related information and other materials are updated and made accessible to authorized SA and Contractor employees. A monthly meeting with SA D&WO management, drilling contractor management, and service company management to review DSELI member’s HSE performance, sharing lessons learned from major incidents, recognition of HSE milestones and development/implementation of DSELI HSE initiatives. Part of the overall D&WO management that facilitates the management of the environmental aspects and occupational health risks associated with the business and activities/operations of the D&WO. These inclusive of developing, planning, implementing, reviewing, maintaining and continually improving the practices, procedures/Standards/G.I. Manuals/Codes, processes, controls, plans, programs and resources before, while and after commencing activities/operations. Measurable results of the E&OH implementation, related to an organization’s control of its environmental aspects and occupational hazard and risk based on policies, targets and other E&OH performance requirements.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-1 / DA&A / A-1a / Definitions / Continued Environment Environmental Aspect

Environmental Impact Environmental Release Emergency Response Plan (ERP) Fire Global Drilling Safety Leadership Initiative for GCC Hazard HSE Plan HSE Scorecard Incident Interested Party Leak or a Spill Occupational ILL Health Occupational Poisoning and Occupational Disease Offshore Oil Organization

Pre-Tour Meeting

Surroundings in which the organization operates, including air, water, land, natural resources, flora, fauna, humans and their interrelation. Element of an organization’s activities, or products or services that can interact with the environment (A significant environmental aspect is one which can have a significant environmental impact). Any change to the environment, whether adverse or beneficial, wholly or partially resulting from an organization’s activities, products or services. Any release of pollutant that could cause an adverse environmental impact. A site specific response and management plan to be activated in the event of a major incident at a rig location. Combustion of any material (Ref. G.I.1787.000 – Section 2.1). A forum and conference where all GCC operating companies MEET WITH Drilling Contractors and share HSE performance, lessons learned and HSE initiatives. Source, situation, or act with a potential for harm in terms of human injury or ill health/poisoning and environment, or combination of these. Written administrative level plan that defines the HSE performance requirements to be achieved and how they are measured. A measurement tool that provides a means of identifying and Quantifying KPI’s as identified in the SA D&WO HSERM and D&WO annual HSE Plan. An undesired event which could have (near miss) or did result in harm to people to property or to the environment or loss to process. Person or group, inside or outside the workplace, concerned with or affected by the E&OH performance of an organization. Any known or unknown source release of oil, regardless of the size or potential impact, into the waters of the SA operating area. Identifiable, adverse physical or mental condition arising from and/or made worse by a work activity and/or work-related situation. Means a poisoning or a disease arising out of or in connection with work.

Means, for the purpose of this policy, the waters of the Arabian Gulf and Red Sea up to and including beaches to the spring high tide mark. Any liquid hydrocarbon substance. Company, corporation, firm, enterprise, authority or institution, or part or combination thereof, whether incorporated or not, public or private, that has its own functions and administration. A meeting at crew changeover to review the current operation, next 12 hours operation, identify safety and operational hazards and other concerns.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-1 / DA&A / A-1a / Definitions / Continued Prevention of Pollution

Use of processes, practices, techniques, materials, products, services or energy to avoid, reduce or control (separately or in combination) the creation, emission or discharge of any type of pollutant or waste, in order to reduce adverse environmental impacts. It includes waste reduction or elimination process, product or service changes, efficient as of resources material and energy substitution, reuse, recovery, recycling, reclamation and treatment.

Preventive action

Quarterly Safety Inspection (QSI) Quarterly Rig Evaluation (QRE) Rig Operator

Risk

Safe Operations Committee Meeting (SOC) Safety Campaign

Safety Moment

SA E&OH Requirements

Action to eliminate the cause of a potential nonconformity or other undesirable potential situation. A report on the findings of a scheduled rig site inspection that reviews compliance with D&WO policies and requirements for safety procedures, equipment, documentation, and competency (SA Owned Rigs only). A rig performance evaluation conducted by SA Liaisonman/Foreman to report the level of compliance and performance of the Drilling Contractor. In this document, the term "Rig Operator" means the agency or company responsible for operating any drilling or workover rig, and/or providing any drilling or workover rig services on behalf of the Saudi Arabian Oil Company (SA). Combination of the likelihood of an occurrence of a hazardous event or exposure(s) and the severity of injury or ill health that can be caused by the event or exposure. A quarterly meeting to review previous quarter safety statistics (incidents, near misses, etc.), lessons learned, operational issues that impact safety and employee awards and recognitions. An organized and comprehensive publicity effort to raise awareness and knowledge of D&WO employees, Contractors, and Service Companies about a specific HSE topic. Opening remarks or information that is presented in a meeting to encourage an attitude and awareness toward safety on and off the job. Engineering Standards, Engineering Procedures, G.I. Manuals, Codes, Minimum Medical Standard Requirements (MMSR), applicable Saudi Arabia legal & other requirements and applicable international standards.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-1 / DA&A / A-1a / Definitions / Continued Crane and Heavy Equipment Incident Event Without Injury Event With Injury

Management of Change

Event where unintentional contact is made by equipment, or its load, with personnel, structures, or other equipment causing injury or property damage (Ref. G.I.0007.026 – Section 2). An incident that has not required the attendance or attention of the Rig Medic or any other medical professional. An incident that requires the attendance and treatment of the Rig Medic or any other medical professional. A process to systematically evaluate, authorize, implement, and document changes to existing assets to ensure that safeguards are in place to eliminate the possibility of introducing hazards because of changes.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-1 / DA&A / Continued

A-1b / Abbreviations and Acronyms ALARP ANSI API AVAILS BOP BPV CEPI CFC DCC D&WO D&WOSD DMHSER DOE&CD DTD EDD E&OH E&OHU EP EPD ESD FAI

As low as reasonably practicable. American National Standards Institute. American Petroleum Institute. Availability. Blowout Preventer. Back Pressure Valve. Comprehensive Environmental Performance Inspection. Chlorofluorocarbons. Disaster Control Center. Drilling and Workover. Drilling & Workover Services Department. Drilling Management Health, Safety and Environment Review. Drilling Operational Excellence & Compliance Division. Drilling Technical Department. Exploration Drilling Department. Environmental & Occupational Health. Environmental & Occupational Health Unit. Emergency Preparedness. Environmental Protection Department. Emergency Shut Down. First Aid Injury Case - Minor injury (not illness) requiring one-time treatment and followup observation (Ref. G.I.0006.005 – Section 3). FAT On-Job Fatality - An On-Job injury or occupational illness that results in Fatality (Ref. G.I.0006.005 – Section 3). GDDD Gas Development Drilling Department. GDD&WOD Gas Development Drilling & Workover Department. GHG Greenhouse Gases. G.I. General Instruction. GM General Manager. GOSRD Global Oil Spill Response Director. GS General Supervisor. HACCP Hazard Analysis and Critical Control Point. HSE Health, Safety and Environment. HSERM Health, Safety and Environmental Requirements Manual. IADC International Association of Drilling Contractors. IO Internal Order. ITD Industrial Training Department. KPI Key Performance Indicator. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-1 / DA&A / A-1b / Abbreviations and Acronyms / Continued LTI

MDD MOC MODU MODWR MOT MMSR MSAOOD MTC

MVA NAODD NACE NAPE NEC NFPA NM

ODD ODI

OPITO OSC OSR OSRT PME POD PRD QSI RDI R&HED ROSRC SAA SAES

Lost Time Injury/Illness Case - An on-job injury or occupational illness that involves one or more days away from work beyond the day the injury or illness occurred (Ref. G.I.0006.005 – Section 3). Manifa Drilling Department. Management of Change. Mobile Offshore Drilling Unit. Marine Operations Division-Western Region. Ministry of Transportation. Minimum Medical Standard Requirements. Marine SA Offshore Operations Division. Medical Treatment Injury/Illness Case - An on-job injury or occupational illness that is more serious than on-job first aid injury (FAI) or occupational illness requiring medical treatment (Ref. G.I.0006.005 – Section 3). Motor Vehicle Accident - An MVA is any occurrence involving motor vehicle that results in death, injury, or property damage. Northern Area Oil Drilling Department. National Association of Corrosion Engineers. Northern Area Producing Engineering. (American) National Electrical Code. (American) National Fire Protection Association. Near Miss - Event which did not result in injury or loss, but which had the potential for injury or loss if the conditions had been slightly different (Ref. G.I.0006.004 – Section 2.0). Offshore Drilling Department. Off- Job Disabling Injury Case - An injury suffered by an employee that does not arise out of and in the course of employment and which results in death or day(s) away from work (Ref. ANSI Z16.3-1997 – Recording and Measuring employee Off-The-Job Injury experience and G.I.6.005 – Section 3). Offshore Petroleum Industry Training Organization. Oil Spill Committee. Oil Spill Report. Oil Spill Response Team. Presidency of Meteorology and Environment. Power Operations Department. Public Relations Department. Quarterly Safety Inspection (SA Owned Rigs only). Restricted Duty Injury/Illness Case - An on-job injury or occupational illness that results in restricted work or job transfer (Ref. G.I.0006.005 – Section 3). Roads and Heavy Equipment Department. Regional Oil Spill Response Coordinator. Saudi Aramco Affairs. Saudi Aramco Engineering Standards.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-1 / DA&A / A-1b / Abbreviations and Acronyms / Continued SAG SAMSO SAODD SAR SATD SAWCM SCR SEAMS SEAPA SEC S.M.A.R.T. SME SMP SOC SSSV SWL TPOD TRC UKDOT USCG WAP WOD VP SWIM 3-MCI

Saudi Arabian Government. Saudi Aramco Medical Services Organization. Southern Area Oil Drilling Department. Saudi Aramco Rigs. Southern Area Transportation Division. Saudi Aramco Well Control Manual. Silicon Controlled Rectifier. Saudi Aramco Material System Specification. Sea Ports Authorities. Saudi Electric Company. Specific, Measurable, Achievable, Reasonable and Time-Bound. Subject Matter Expert Supplemental Manpower Safe Operations Committee. Sub Surface Safety Valve. Safe Working Load (Limit). Terminal Pilotage Operations Division. Total Recordable Injury/Illness Cases - Includes; FATs, LTIs, RDIs and MTCs (Ref. G.I.0006.005 – Section 3). United Kingdom Department of Transportation. United States Coast Guard. Well Approval Package. Workover Department. Vice President. Safe Work Instruction(s) Manual 3 (Three) Month Compliance Inspection

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-2

Reference Material

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-2 / Reference Material (RM) In addition to the HSERM, the Rig operator shall have readily available for reference to drilling or workover personnel the most recent publications as follows: ANSI NFPA-70 ANSI Z41.83 ANSI Z88.2 ANSI Z89.1 API 510 API BULL 5C2 API BULL 5C4 API BULL 13C API RP 7G API RP 7H API RP 8B API RP 9B API RP 49 API RP 52 API RP 54 API RP 500 API SPEC 4A API SPEC 4E API SPEC 6A API SPEC 7 API SPEC 7 B-11C API SPEC 8 API SPEC 9A API SPEC 13A D&WO-SMS D&WO-WM D&WO-WCM G.I. 2.100 G.I. 2.104 G.I. 2.400 G.I. 2.401 G.I. 2.702

Grounding Separately Derived Alternating-Current Systems. Protective Footwear. American National Standard Practices for Respiratory Protection. Protective Head ware for Industrial Workers – Requirements. Pressure Vessel Inspection Code. Performance Properties of Casing, Tubing, and Drill Pipe. Round Thread Casing Joint Strength With Combined Internal Pressure and Bending. Drilling Fluid Processing Equipment. Drill Stem Design And Operating Limits. Drilling Machinery Hoisting Tool Inspection and Maintenance Procedures. Application, Care and Use of Wire Rope For Oil Fields. Recommended Practice for Drilling and Well Servicing Operations involving Hydrogen Sulphide. Recommended Land Drilling Operating Practices for Protection of the Environment. Recommended Practices for Occupational Safety and Health for Oil and Gas Drilling and Servicing Operation. Recommended Practice for Classification of Location for Electrical Installation at Petroleum Facilities. Steel Derricks. Drilling and Well Servicing Structures. Wellhead Equipment. Rotary Drilling Equipment. Internal Combustion Reciprocating Engines For Oil Field Service. Drilling and Production Hoisting Equipment. Wire Rope. Oil Well Drilling Fluid Materials. D&WO SMS Manual, latest Version D&WO Workover Manual, latest Version D&WO Well Control Manual, latest Version Work Permit System. Leak and Spill Reporting - Arabian Gulf. Offshore Oil (Spill) Contingency Plan. Inland Oil Spill Contingency Plan. Moving Drilling Rigs, High Clearance Equipment/Loads or Operating Cranes Under or Near Power-Lines.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-2 / RM / Continued G.I. 2.714 G.I. 2.716 G.I. 2.718 G.I. 6.012 G.I. 6.020 G.I. 6.025 G.I. 7.024 G.I. 7.025 G.I. 7.026 G.I. 7.027 G.I. 7.028 G.I. 7.029 G.I. 7.030 G.I. 7.082 G.I. 8.001 G.I. 8.002 G.I. 8.005 G.I. 150.000 G.I. 150.004 G.I. 150.100 G.I. 151.006 G.I. 355.001 G.I. 355.002 G.I. 355.003 G.I. 355.004 G.I. 355.014-01 G.I. 355.015-01 G.I. 430.000 G.I. 432.000 G.I. 475.001 G.I. 1321.015 G.I. 1780.001 G.I. 1781.001 G.I. 1850.001 G.I. 1851.001 G.I. 1852.001 G.I. 1853.001

IADC

Environmental Conservation Policy Implementation. Land Use Permit Procedures. Contractor Sites Allotment Procedure. Isolation, Lockout and Use of Hold Tags. Personal Flotation Devices (PFDS) for Work On, Over or Near Water. Control of Remote Area Travel and Search/Rescue Procedures. Marine and Offshore Crane, Hoist, and Rigging Operations. Mobile Heavy Equipment Operator Testing and Certification. Cranes and Heavy Equipment Accident Reporting Procedures. Crane Suspended Personnel Platform Operations (Man basket). Crane Lift: Types and Procedures. Inspection Use and Maintenance of Below-the-Hook Lifting Equipment for Cranes. Inspection and Testing Requirements of Elevating/Lifting Equipment. The latest version Safety Requirements for Scaffold. Safety Spectacles. Protective (Safety) Footwear. Industrial Hygiene and Occupational Health Aspects of Loss Prevention Policy. Safety Requirements for Scaffolds. Hazardous Materials Communication Program (HAZCOM). Implementing the SA Sanitary Code. The latest version The latest version The latest version The latest version Implementing the SA Sanitary Code. The latest version Implementing the SA Hazardous Waste Code. The latest version Blasting Near Existing facilities. Requirements for a Medical Evacuation. Atmosphere-Supplying Respirators. Inspection, Testing and Maintenance of Fire Protection Equipment. Onshore Contingency Plan. Offshore Contingency Plan. Rig site Flare Gun and Communication Equipment. Isolation Barriers for Wells During D&WO Operations (With and Without Rig) Rig and Equipment Operations and Maintenance Manuals for the Drilling Rig Manufacturers and Other Major Equipment Items. International Association of Drilling Contractors, Accident Prevention.

SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-2 / RM / Continued IADC NACE MR0175 MARPOL MODU PVIC SAES-A-007 SAES-A-103 SAES-A-105 SAES-B-019 SAES-B-062 SAES-B-063 SAES-B-067 SAES-B-068 SAES-B-069 SAES-J-505 SAES-P-111 SAES-W-010 12-SAMSS-023 SAES-A-104 SOLAS SA-CSH SA-CM SA-D&WO-DM SA-LBRTC SA MIM Contract Schedule “D” SASC MARPOL RAUCF/MMSRM

Drilling Manual. Metals for Sulfide Stress Cracking and Stress Corrosion Cracking Resistance in Sour Oilfield Environments. International Convention for the Prevention of Pollution from Ships. The latest version. Code Applicable to the MODU. The latest version. Pressure Vessel Inspection Code. Safe Practices in Drilling Operations. The latest version Discharges to the Marine Environment Noise Control Portable, Mobile and Special Fixed Firefighting Equipment. Onshore Well site Safety Aviation Obstruction Marking and Lighting Safety Identification and Safety Colors Coding Electrical Area Classification Emergency Eyewashes and Showers Combustible Gas and Hydrogen Sulphide in Air Detection Systems Grounding Welding Requirements for Pressure Vessels Fiber-Reinforced Plastic (FRP) Grating and FRP Components Wastewater Treatment, Reuse and Disposal The latest version Saudi Aramco Crane Safety Handbook, the latest version Saudi Aramco Construction Safety Manual, the latest version Saudi Aramco D&WO Drilling Manual, the latest revision Saudi Aramco Land Based Remote Travel Control (Supplement to G.I. 6.025), the latest version Saudi Aramco Marine Instruction Manual. The latest version Contractor’s Safety and Loss Prevention Requirements, the latest version. The latest version Current Revision Remote Area Urgent Care Facilities / Minimum Medical Standards Requirements Manual. The latest version

Note: Assistance in obtaining copies of SA documents is provided by the Dhahran area Loss Prevention Division. SA cannot copy or distribute non-SA documents such as ANSI, API or IADC copyrighted documents.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-3

General Safety Rules

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-3 / General Safety Rules (GSR) The following rules are to protect you and your fellow workers. Violation of the rules may lead to disciplinary action. This procedure applies to; Saudi Aramco D&WO, Contractor and Service Companies. 1. All work related injuries/illness or vehicle collisions, no matter how slight, shall be reported immediately to your supervisor. 2. All fires, spills and releases, no matter how small, shall be reported immediately to your supervisor.

3. Immediately report any unsafe condition, practice, near miss or incident to your supervisor.

4. Horseplay, practical jokes or fighting, including initiations, are safety violations. Supervisors allowing these acts as well as the violators are subject to disciplinary action. 5. All personnel (drivers and passengers) shall wear seat belts at all times.

6. Smoking is only allowed in designated smoking areas.

7. Identify risks and hazards associated with tasks before beginning work or if the location or conditions should change. 8. A SWAP (SAR Rigs) or PTW (Contractor Rigs) shall be raised before a safety device is removed from service and/or defeated, the appropriate supervisor and affected parties shall be notified, the device shall be tagged and the action documented. 9. The SA Liaisonman shall be kept informed of all ongoing operations. No work may be carried out on SA property without the written consent of the SA Liaisonman.

10. The unauthorized removal of isolations or the operation of equipment having a “Danger Do Not Operate” tag is prohibited. 11. Before operating any machinery or switch gear, all safe guards, switches and alarms shall be in place and functional. 12. All block valves on pressure relief systems in service shall be locked or sealed open.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-3 / GSR / Continued 13. Finger rings and other jewelry along with loose fitting clothing, long hair (head and facial) and other loose accessories shall not be worn while working on rig locations.

14. Do not apply compressed air, other gases or high pressure wash-down guns to yourselves or others.

15. Climbing up and down ladders requires the use of both hands. Traveling up and down stairs requires the use of handrails.

16. When descending ladders, the employee must always face the ladder.

17. Running in work areas is prohibited.

18. Use the correct tool for the task, all tools and equipment must be well maintained. Homemade tools are prohibited. 19. Erect barricades/flagging around areas of hazardous work, such as holes in decking and work areas, trenches, road crossings and overhead hazardous work. 20. Climbing or standing on equipment, piping or valves to do work is prohibited. Approved scaffolding, work platforms, personnel lifts or ladders with full body safety harnesses shall be used. 21. All fire extinguishers and other emergency equipment shall be in good condition, inspected regularly and kept clear of any obstructions. Accidental discharge or use of firefighting equipment must be reported to the supervisor immediately. 22. All chemical or hazardous material containers shall be properly labeled and stored. Drums shall be stored in secondary containment area.

23. Proper manual lifting techniques must be used at all times. If you think a load is too heavy, ask your supervisor for help or employ a mechanical lifting device. 24. Safety eyewear, hard hats, gloves and safety footwear are mandatory. Metallic hard hats are prohibited.

25. Safety goggles and a full-face shield must be worn when chipping, grinding or when performing any job where flying particles pose a potential for eye injury. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-3 / GSR / Continued 26. When handling or mixing chemicals, chemical gloves, goggles, apron and appropriate respirator must be used (reference the MSDS) In addition, when mixing caustic, a full-face shield and goggles are required. Note: Anytime a face shield is required, goggles shall also be worn.

27. Hearing protection must be worn when entering high noise areas 85dB or higher.

28. The use or possession of illegal drugs, intoxicating beverages or firearms is forbidden on SA locations.

29. All personnel have the authority to Stop Work if you observe; any defective equipment, machinery, hazardous condition or unsafe work practice and immediately report the hazardous condition or work practice to your supervisor. No further activity shall be conducted until a safe working environment exists. 30. No one should ever work or walk under a suspended load.

31. Full body safety harnesses with properly secured lanyards must be worn when working at heights above 6 feet (1.8 meters).

32. Riding the elevators and cathead lines is not permitted.

33. The use of one tong and the rotary to trip pipe is prohibited.

34. All personnel shall attend weekly safety meetings and participation in emergency drills, pre-tour and pre-job safety meetings. 35. Anyone taking prescription drugs must report this to the Rig Medic when arriving on the rig.

36. Hair should be neat and cleanly trimmed, no longer than over the collar. Facial hair that might inhibit the seal of a respirator is not permitted. 37. A “tail rope” must be used when moving pipe, tubing, etc. in from the V-door.

38. All personnel arriving to the rig location must report to the person in charge (PIC) for orientation.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-3 / GSR / Continued 39. Non-approved electrical/electronic devices (e.g. cellular phones, pagers, and instruments) shall not be used in classified areas unless properly permitted. 40. Maintain good housekeeping in your work area at all times.

41. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

42. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-4

Rig Operators Responsibilities for Loss Prevention

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-4 / Rig Operators Responsibilities for Loss Prevention (ROR) This procedure applies to Contractor and Service Companies. 1. Throughout all phases of any drilling or workover operation the Rig Operator shall be held accountable for the prevention of accidental losses, the protection of Company interests and resources, and the avoidance of any contamination of the environment. 2. The following minimum guidelines are provided to aid the Rig Operator in meeting this responsibility. Assistance in complying with the requirements set forth in these guidelines is available from D&WO Management, DOE&CD or from the Loss Prevention Department of the Company. 3. The Rig Operator shall establish a written loss prevention program that fulfills all the requirements stated in this Manual including permit to work system for Rig Operator and all third party rig ups. 4. Any loss prevention program of the Rig Operator shall provide for frequent and regular inspections of the rig equipment, materials, and accommodations by competent persons designated by the Rig Operator. This inspection shall be completed on a Quarterly basis and submitted to the Company Drilling Superintendent with responsibility for the oversight of each rig.

5. The Rig Operator shall provide at each D&WO rig a copy of the reference materials (Refer to HSERM / A / A-2 / RM) necessary for the safe operation of the rig.

6. The Rig Operator is responsible to ensure that all personnel arriving on location register and receive a thorough safety and H2S orientation. 7. The Rig Operator shall be thoroughly familiar with the drilling or workover program. He shall inform the rig crew of any potential adverse conditions (i.e., lost circulation zones, high reservoir pressure, high H2S concentrations, etc.) that require special safety precautions, training, equipment, or additional personnel. 8. The Rig Operator shall clearly indicate the "Smoking Permitted" areas around each rig location. All other areas on the location shall be considered as "No Smoking" areas and shall be marked accordingly. Smoking shall be closely controlled throughout the rig location. 9. The Rig Operator shall take all reasonable safety precautions to prevent oil spills or pollution both onshore and offshore. If an accidental spill or discharge does occur, every effort shall be made to (a) protect human life, including both employees and the public, and (b) minimize the impact on the environment. Should an accidental spill occur, it shall be reported immediately to the Company representative so that he can take the necessary steps to contain the spill and implement the applicable reporting requirements of General Instruction (G.I.); G.I. 2.104, G.I. 2.400, or G.I. 2.401.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-4 / ROR / Continued 10. The Rig Operator shall adequately train each of his employees in the recognition and avoidance of unsafe conditions and in all Company loss prevention standards applicable to his work environment. He shall also adequately train his employees in methods to control or eliminate any hazards or other exposures resulting in injury or illness (hazard recognition program).

11. The Rig Operator shall implement a HAZCOM Program, to ensure that employees, who are required to handle or use poisons, caustics, acids and other harmful substances, shall be adequately trained regarding their safe handling and use. The Rig Operator's supervisors shall discuss the potential hazards, personal hygiene, and necessary personal protective equipment prior to their employees handling any harmful materials. The Rig Operator shall maintain water stations for washing chemicals spills and Material Safety Data Sheets (MSDS) for all potentially hazardous chemicals the Rig Operator orders onto the rig. Note: SA shall supply MSDS’s for materials SA orders.

12. The Rig Operator shall allow only those personnel qualified by training and/or experience to operate equipment and machinery. The Rig Operator shall also ensure that any personnel requiring operator's certificates have them, or copies thereof, in their possession and have completed any training which may be required by the laws of the Kingdom of Saudi Arabia or by the Company. Each rig shall maintain a rig specific training matrix which shall be up-dated and submitted to the DOE&CD monthly.

13. Rig Operator’s providing offshore rigs shall ensure that their rigs are kept in compliance with all applicable maritime/MODU standards of the country in which the rig is registered as well as any applicable laws and regulations of the Kingdom of Saudi Arabia or the Company.

14. A Rig Operator providing offshore rigs shall ensure that all required certifications are current and that recertification inspections are completed by an approved certification authority prior to the expiration of the existing certificate.

15. On all offshore rigs, a copy of the Barge Marine Operations Manual shall be kept readily available in the control room for consultation and use. The manual shall include a complete set of operating instructions, control systems diagrams, and stability characteristics.

16. Any special or unusual towing characteristics of an offshore rig shall be included in the operating instructions and communicated to the towing vessel operators before towing operations begin. 17. A Rig Operator providing offshore rigs shall ensure that all navigation and transit lights are operable and used as required by International Rules and Regulations for Aids to Navigation. 18. Should a conflict arise between a Rig Operator’s safety requirement and a Company requirement, the most restrictive requirement shall apply. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-4 / ROR / Continued 19. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

20. References: A. HSERM / A / A-2 / RM B. G.I. 2.104 - Leak and Spill Reporting - Arabian Gulf. C. G.I. 2.400 - Offshore Oil (Spill) Contingency Plan. D. G.I. 2.401- Inland Oil Spill Contingency Plan.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-5

Competency and Training

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / Competency and Training (C&T) SA personnel and SA Supplemental Manpower (SMP) shall meet the minimum requirements as specified in the D&WO Training Matrix (the D&WO Training Matrix can be accessed through the DIH and HRT&CDD web sites), current version. Note: Reference; D&WO SMS Element No.4 (Competency and Training). The following are the minimum acceptable standards of training for Contractors, for each job position at the rig site. Individual contractors may require more stringent training/qualifications (Refer to HSERM / A / A-5 / C&T / Appendix No.1 / D&WO “Contractor” Training Matrix). Note: Contractor definition - A person or an organization providing services to SA at SA facilities/worksites in accordance with agreed specifications, terms and conditions. This does not include SMP’s working directly for SA. 1. Management of Major Emergencies (MOME) MOME training program provides practical hands-on experience for managing unanticipated events. Personnel who are in charge shall undergo MOME training. Persons to be trained (Minimum): OIM. Training Provider: Third Party. Valid for: 5 years

2. Marine License Training required by a regulatory body, training required to obtain and maintain a marine license or training required by the vessel’s flag state. See Flag requirements for guidance as to where the training is to be completed. Persons to be trained (Minimum): OIM and Barge Engineer. Training Provider: Third Party. Valid for: 5 years

3. Lifeboat Coxswain Training required by a regulatory body (SOLAS), training required to obtain and maintain a marine license or training required by the vessel’s flag state. See Flag requirements for guidance as to where the training is to be completed. Persons to be trained (Minimum): Two (2) Coxswains per Lifeboat. Training Provider: Third Party. Valid for: 5 years

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued 4. GMDSS Training Training required by a regulatory body, training required to obtain and maintain a marine license or training required by the vessel’s flag state. See Flag requirements for guidance as to where the training is to be completed. Persons to be trained (Minimum): Radio Operator. Training Provider: Third Party. Valid for: 5 years

5. Stability Training required by a regulatory body, training required to obtain and maintain a marine license or training required by the vessel’s flag state. See Flag requirements for guidance as to where the training is to be completed. Persons to be trained (Minimum): Barge Engineer, OIM (if BE or Rig Mover OIM while Floating). Training Provider: Third Party. Valid for: 5 years

6. HLO, Helicopter Landing Officer This training can be completed at any OPITO approved school or an Aramco Aviation approved school. Certificates of competency shall be maintained at the rig location. Persons to be trained (Minimum): there shall be one (1) certified competent HLO aboard at all times. Training Provider: Third Party. Valid for: No expiration.

7. Helideck Crew This training is to be completed at an OPITO approved school or an Aramco Aviation approved school. Competency must be verified through experience and qualification. Certificates of competency shall be maintained at the rig location. Persons to be trained (Minimum): there shall be four (4) certified competent helideck crew aboard at all times. Training Provider: Third Party. Valid for: No expiration.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued 8. HUET, Helicopter Underwater Escape Training This training can be completed through the SA School in the Kingdom of Saudi Arabia (KSA) or through an OPITO approved school or a SA approved school. Persons to be trained (Minimum): All personnel on-board. Training Provider: Third Party. Valid for: 3 years

9. Davit Launched Life-Raft Training This training shall be completed at the rig site; this training shall be Rig specific covering the specific equipment at the rig location. Persons to be trained (Minimum): All personnel on-board. Training Provider: In-House. Valid for: No expiration.

10. SA Fork Lift Operator Test The “SA/Contractor Request for Heavy Equipment Operator Certification Test” application form (SA 9647) shall be submitted to ITD for each heavy equipment operator being tested. In addition to the form, the heavy equipment operator applicant shall provide copies of: A. SA USER sponsoring letter (for contractors only). B. SA ID (if required). C. Saudi Arabian Government (SAG) Public Driver’s License or SAG Heavy Equipment Operator License (if required) with specific equipment stamp. D. SA 9663 - SA / Contractor’s Medical Examination for Heavy Equipment Operators “Physician’s Examination Form” – Completed, signed, and stamped. E. Two (2) recent photographs for each certification application. Persons to be trained (Minimum): All Forklift Operators. Training Provider: Third Party. Valid for: 3 years. Note: Expat Forklift Operators aboard a MODU holding a valid home country certificate shall be exempt from the above requirement.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued 11. SA Crane Operators Test Note: Expat MODU crane operators are exempt, G.I.7.024. The “SA/Contractor Request for Heavy Equipment Operator Certification Test” application form (SA 9647) shall be submitted to ITD for each heavy equipment operator being tested. In addition to the form, the heavy equipment operator applicant shall provide copies of: A. SA USER sponsoring letter (for contractors only). B. SA ID (if required). C. Saudi Arabian Government (SAG) Public Driver’s License or SAG heavy Equipment Operator License (if required) with specific equipment stamp. D. Two (2) recent photographs for each certification application. Persons to be trained (Minimum): All Crane Operators. Training Provider: Third Party. Valid for: 3 years. Note: Expat Crane Operators aboard a MODU holding a valid home country certificate shall be exempt from the above requirement. 12. Crane Operators Medical Examination SA 9663 SA/Contractor’s Medical Examination for Heavy Equipment Operators “Physician’s Examination Form” – completed, signed, and stamped. Persons to be trained (Minimum): All personnel requiring a SA License. Training Provider: Third Party. Valid for: 3 years.

13. Gas Tester Gas testing is required in all locations where injury to personnel or damage to property could occur due to the presence of combustible gases, toxic gases, or oxygen enriched/deficient atmospheres. An adequate number of competent personnel must be maintained at each rig location, it is recommended that the rig maintain at least 2 competent persons per tour. Competency shall be demonstrated through; experience, theoretical and practical examination. Certificates of competency shall be maintained at the rig location. Persons to be trained (Minimum): Two (2) persons per tour. Training Provider: Third Party or In-House. Valid for: 2 years. Note: A current list of all competent Gas Testers shall be maintained at the PTW issuing center SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued 14. Confined Space Entry Inspection A physical inspection is required in all locations where injury to personnel could occur due to the nature of confined space work as well as considering the presence of combustible gases, toxic gases, or oxygen enriched/deficient atmospheres, the physical condition of the work area must be considered, particular attention must be paid to rescue procedures in given confined space work areas. An adequate number of competent personnel trained in confined space entry inspection (this training shall include gas testing) must be maintained at each rig location, it is recommended that the rig maintain at least 2 competent persons per tour. Competency shall be demonstrated through; experience, theoretical and practical examination. Certificates of competency shall be maintained at the rig location. Persons to be trained (Minimum): Two (2) persons per tour. Training Provider: Third Party or In-House. Valid for: 3 years. Note: A current list of all competent Confined Space Entry Inspectors shall be maintained at the PTW issuing center. 15. Emergency Response Onshore Senior personnel shall be trained to adequately respond in an emergency, this training shall follow both the contractor emergency response procedures and SA emergency response procedures. This training shall be documented. Persons to be trained (Minimum): Two (2) Drilling Contractor PIC on day and Drilling Contractor PIC nights. Training Provider: Third Party. Valid for: 5 years.

16. Fire Fighting Team Leader This training shall be completed at an external OPITO approved school or an Aramco approved school. Certificates of competency shall be maintained at the rig location. Persons to be trained (Minimum): Fire Team leaders as identified on the Station Bill. Two (2) persons per tour. Training Provider: Third Party. Valid for: 5 years

17. Well Control Well control training shall be completed at an IADC approved school. Certificates of competency shall be maintained at the rig location.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued Persons to be trained (Minimum): As per SA D&WO Well Control Manual (SAWCM). Training Provider: Third Party. Valid for: 2 years.

18. ABS Welder Each MODU welder shall be tested by an ABS approved examiner. ABS log book shall be maintained at the rig location. Each land rig welder shall be deemed competent by a 3rd party accreditation Society; all certifications shall be current and valid. Valid for: 5 years.

19. First Aid CPR This training shall be administered by an approved competent instructor at an external school or at the rig location, each trainee shall demonstrate competency through practical and theoretical examination. Certificates of competency shall be maintained at the rig location. Persons to be trained (Minimum): All rig personnel. Training Provider: Third Party or In-House. Valid for: 2 years.

20. Fire Team This training should be conducted at an OPITO approved external school. Each member of a fire team shall be able to demonstrate competency in basic firefighting techniques and the use of first aid firefighting appliances. Competency shall be demonstrated through; experience, theoretical and practical examination. Certificates of competency shall be maintained at the rig location. Persons to be trained (Minimum): All Fire Team members as identified on the Station Bill. Training Provider: Third Party. Valid for: No expiration.

21. Hazcom Training This program provides hazardous materials information and guidance on how to handle chemicals safely to minimize incidents and reduce risks to people, production, equipment and the environment. Certificates of competency shall be maintained at the rig location. Persons to be trained (Minimum): All rig personnel. Training Provider: Third Party or In-House. Valid for: No expiration. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued 22. Spill Prevention Training This training shall include; prevention and containment of chemical spills. All personnel must have a basic understanding of prevention, containment and the environmental impact, health and safety and legislative impact of chemical spills. This training shall be documented. Persons to be trained (Minimum): All rig personnel, this training can be combined with HAZCOM training. Training Provider: Third Party or In-House. Valid for: No expiration.

23. Respiratory Protection Training The Rig Operator shall ensure that all respiratory protection equipment, needed by or reasonably anticipated to be needed by his employees, is provided. Those employees required to use this equipment must be trained in its effective use. This training shall include the following: A. The need for respirator protection. B. An explanation of why a particular type of respirator has been selected. C. An explanation of the operation, capabilities and limitations of the respirator selected. D. Fitting of face pieces. E. Donning (putting on) and doffing (taking off) of respirators. F. Regulations concerning respirator use. G. Instructions in emergency procedures. H. Maintenance, inspection, and storage of respirators. I.

Sealing and functioning of the face piece

Note: Wearing and use of emergency SCBA shall be included in the H2S Training. Persons to be trained (Minimum): All personnel at the rig location who will be required to use respiratory equipment in the normal course of their duties. This training shall be documented. Training Provider: Third Party or In-House. Valid for: 2 Years.

24. Confined Space Training All entrants into a confined space must be made aware of: A. The strict requirement for a SWAP or PTW prior to any entry or hot work. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued B. The hazards of a confined space: 1) Oxygen Deficiency 2) Flammable Gas 3) Toxic Vapors C. The strict requirement for an emergency observer. D. The necessity to wear a full body harness. E. The importance of following the requirements as specified in HSERM / A / A-12 / SWAP and the CSE procedure. F. The strict requirement for the preparation and review of a JSA. Persons to be trained (Minimum): All personnel whom in the course of their normal duties will be expected to enter a confined space. Training Provider: Third Party or In-House. Valid for: One time only.

25. Lock-Out /Tag-Out (Refer to HSERM / A / A-19 / LOTO) The purpose of this training is to protect personnel from the potential releases of stored energy or the startup of machinery or equipment that may cause injury. This specifically includes any maintenance activity where electrical, mechanical, steam, hydraulic, pneumatic or other energy source is present. Additional hazards may include heated, flammable, toxic, corrosive or chemical material. Employees required to perform Lock-Out/Tag-Out procedures shall receive training in these procedures before performing the procedures. This training shall be documented. Persons to be trained (Minimum): Employees required to perform Lock-Out/Tag-Out as part of their normal duties. Example; Electricians and Mechanics. Training Provider: Third Party or In-House. Valid for: One time only.

26. Safe Work Authorization Procedure (SWAP) for SAR Rigs and Permit to Work for Contractor Rigs As part of each Rig Operator’s Loss Prevention Program, a work permit system shall be established based on G.I. 2.100. (Refer to HSERM / A / A-12 / SWAP). The system is intended to be applied to those jobs which represent a potential hazard to operations, personnel, or equipment. Contractors may use existing internal forms developed as part of their loss prevention programs. Employees required to work under the SWAP or PTW system procedures, or whose jobs may be affected by the SWAP or PTW system procedures, shall receive training in these procedures. This training shall be documented.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued Persons to be trained (Minimum): Employees required to work under the SWAP or PTW system procedures, or whose jobs may be affected by the SWAP or PTW system procedures, shall receive training in these procedures to an appropriate level. This training shall be documented. Training Provider: Third Party or In-House. Valid for: One time only.

27. Hydrogen Sulphide (H2S) The Rig Operator shall adequately train all his personnel in the basic fundamentals of Hydrogen Sulphide (H2S) safety. This training must include and all personnel on the rig must be able to demonstrate an understanding of the following: A. Characteristics of H2S and its toxicity. B. Detection and warning systems peculiar to the location. C. Emergency procedures consisting of: 1) Designation of safe briefing areas. 2) Wearing and use of emergency breathing equipment. 3) Evacuation procedures. 4) Rescue procedures. 5) First aid for victims. D. Instructions in the inspection, maintenance, and use of assigned respiratory protection equipment. E. This training MUST include drills in all these procedures so all personnel on the location can quickly and effectively follow each of these instructions when there is an actual, life-threatening emergency. F. All basic H2S training shall include the actual donning and breathing from each different type of breathing apparatus in use on that particular rig. Each person must be able to don and breathe from the SCBA within 45 seconds. G. A training card shall be issued to each person completing the basic H2S training. This card shall remain valid for two years, following which the person must retake the basic H2S training. H. All personnel must be able to identify the H2S alarms. I.

All personnel must be able to identify the wind direction.

J. All personnel must be able to evacuate to the up-wind safe briefing area (land rigs).

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued K. All personnel must be able to muster to the safe briefing area or muster station (offshore) and enter in to the lifeboat wearing both SCBA and personal floatation device (PFD). L. In addition to the basic skills listed above, all personnel must be able to competently perform the tasks assigned to them in the rig specific H2S emergency plan. M. All drilling rig crews must be able to perform Cardio Pulmonary Resuscitation (CPR). N. The SA Liaison-man is responsible to verify that H2S training requirements are met. This shall be done by observing regular H2S drills and testing to verify competence in breathing apparatus use. Persons to be trained (Minimum): All personnel on location. Training Provider: Third Party or In-House. Valid for: 2 Years.

28. Asbestos Awareness On all rigs containing known, non-friable or friable ACM, it is the responsibility of the PIC to ensure at least one person per hitch is trained in Asbestos Maintenance and is onboard at all times where asbestos is known to be present. It is the responsibility of the PIC to ensure everyone assigned to the rig receives Asbestos Awareness training. A competent person at each rig site shall provide said training. Competency shall be demonstrated through; experience, theoretical and practical examination. Certificates of competency shall be maintained at the rig location. It is the responsibility of the PIC to ensure everyone who visits the rig is made aware of the presence of ACM as a part of the rig orientation process. Visitors to the rig whose job has the potential of disturbing ACM shall be required to take the Asbestos Awareness training or show evidence of prior asbestos awareness training. Persons to be trained (Minimum): All personnel on location where asbestos is known to be present plus one person per hitch trained in Asbestos Maintenance. Training Provider: In-House. Valid for: One time only.

29. Hazard Recognition Program The Rig Operator shall adequately train each of his employees in the recognition and avoidance of unsafe conditions and in all Company loss prevention standards applicable to his work environment. He shall also adequately train his employees in methods to control or eliminate any hazards or other exposures resulting in injury or illness (hazard recognition program). Behavioral Based Safety programs such as “FOCUS” are an acceptable alternative to a hazard recognition program such as “STOP”. This training shall be documented. Persons to be trained (Minimum): All personnel on location. Training Provider: Third Party or In-House. Valid for: One time only.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued 30. Air Hoist Operator Training Air hoists are powerful pieces of equipment that if miss used can lead to serious incidents. Only qualified competent personnel shall operate air hoists. Competency shall be demonstrated through; experience, theoretical and practical examination. This training shall be documented. Persons to be trained (Minimum): All personnel who in the course of their normal duties would be expected to operate an Air Hoist. Training Provider: Third Party or In-House. Valid for: One time only. Example: all drill crew members

31. Fall Protection Training Fall protection refers to the use of lifeline, harnesses, guardrails, anchors, lanyards and safety netting. One or more of these systems may be required when working at an elevation. Workers shall be trained and competent in the use of the “Fall Protection Plan” and the inspection and use of Fall Arrest and/or Fall Restraint equipment prior to using it. Training shall reflect “Industry Best Practices”, with curriculum content that meets or exceeds current international training models. This training shall be documented. Persons to be trained (Minimum): All personnel who would be expected to work at height as part of their duties; deck crew, drill crew, maintenance crew and marine crew. Training Provider: Third Party or In-House. Valid for: 2 Years.

32. Rigging and Lifting Rigging and lifting involves the use of equipment that if misused can lead to serious incidents. Only qualified competent personnel shall rig loads or signal cranes and forklifts. Competency shall be demonstrated through; experience, theoretical and practical examination. This training shall be documented. Persons to be trained (Minimum): All personnel who will be expected to prepare equipment or personnel to be lifted by a powered or manual hoist. Training Provider: Third Party or In-House. Valid for: One time only. Note: Reference amendments to G.I.7.024, Rigger Aramco, MODU exemptions for AB’s.

33. Manual Handling Many injuries are documented annually as a direct result of poor manual handling techniques. Training must include the use of good kinetic lifting techniques. This training shall be documented.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued Persons to be trained (Minimum): All rig crew who as part of their normal duties would be expected to manually handle loads in excess of 11kg. Training Provider: Third Party or In-House. Valid for: 2 Years.

34. Rig Orientation The Rig Operator is responsible to ensure that all personnel arriving on location; register and receive a thorough safety and H2S orientation. This training shall be documented. Persons to be trained (Minimum): All personnel on location. Training Provider: In-House. Valid for: Annual.

35. Scaffolding Safety Scaffolds shall only be erected and dismantled by qualified personnel, taking into account stresses on the scaffold, main supports, ties etc., and all personnel must be made aware of SA and contractor procedures relating to the erection and dismantling of scaffolding. This training shall be documented. Persons to be trained (Minimum): All personnel who supervise, erect and/or dismantle scaffolding and work platforms. Training Provider: Third Party. Valid for: 2 Years.

36. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

37. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-5 / C&T / Continued Appendix No.1 This matrix is intended as guidance only; the shaded cells indicate suggested crafts to train only. Drilling contractors can substitute personnel they deem suitably qualified or competent

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-6

Emergency Drills

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / Emergency Drills (ED) In order to maintain a state of readiness, all D&WO rigs (Saudi Aramco and Contractor) must conduct emergency drills on a regular defined basis. These drills provide training and familiarization to all personnel on location. 1. How to record and activate the drilling alert message: A. Dial 862-4181, enter PIN 4181 # to update message B. Press 2 (two) to record first message: C. Press 1 to play message D. Press 2 to record message E. Press 3 to exit F. Activate the Drilling Alert System, dial 862-4112, and enter PIN 4154 Emergency Numbers Security: 110 Ambulance: 110 and 997 Fire: 110 or 998 Outside Aramco: Central Area Southern Area Northern Area Central Region Western Region Rumors Control

(03) 872-0110 (03) 572-0110 (03) 673-0110 (01) 285-0110 (02) 427-0110 (03) 872-4488 (03) 872-4499

Emergency Contacts: Dhahran (03) 872-3113 (03) 876-3333 Abqaiq (03) 572-3113 (03) 572-3333 Shedgum (03) 577-1221 South Ghawar (03) 576-2900 Udhaliyah (03) 577-8212 Ras Tanura (03) 673-3333 Riyadh (01) 285-3113 (01) 285-3333 Jeddah (02) 427-3113 (02) 427-3333 SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 2. Offshore A. All Personnel on location must participate in drills. B. Drills shall, as far as practicable, be conducted as if there were an actual emergency. C. Abandon Ship Drill Each Abandon Ship drill shall include: 1) Summoning of crew to muster stations with the alarm followed by drill announcement on the public address or other communication system and ensuring that they are made aware of the order to abandon ship. 2) Reporting to stations and preparing for the duties described in the station bill. 3) Checking that crew are suitably dressed. 4) Checking that lifejackets are correctly donned. 5) Lowering of at least one lifeboat after any necessary preparation for launching. 6) Different lifeboats shall, as far as practicable, be lowered in compliance with this requirement at successive drills. 7) Each lifeboat shall be launched and maneuvered in the water at least once every three months during an abandon ship drill. 8) Lowering into the water, rather than launching of a lifeboat arranged for free-fall launching, is acceptable where free-fall launching is impracticable provided the lifeboat is free-fall launched and maneuvered in the water at least once every six months. However, in cases where it is impracticable, the OIM may extend this period to 12 months provided that arrangements are made for simulated launching which shall take place at intervals of not more than six months. 9) Starting and operating the lifeboat engine; 10) Operation of davits used for launching life rafts; 11) A mock search and rescue of passengers trapped in their staterooms; 12) Each offshore rig shall conduct an abandon ship drill within 24 hours of a crew change, and at least once per month. The SA Liaisonman or OIM will decide if more frequent abandon ship drills are required to ensure adequate response.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 13) Abandon ship Drills must include everyone aboard the rig, with the possible exception of only those crew members absolutely essential to maintain a safe watch over the ongoing operation. 14) Abandon ship drills may be combined with fire and/or H2S drills. 15) The maximum acceptable response time for abandon ship drills must take into account the possibility that evacuation may have to proceed in a hazardous H2S environment. Therefore, everyone aboard the rig must be able to muster to their boat stations and enter their boats with enough time left to lower the boats and sail to a safe upwind area before their SCBA’s run out of air. With a standard 30-minute SCBA, everyone must be aboard their assigned boat within 12 minutes of the alarm first sounding (this is not an instruction to board-the-boat). 16) Fully occupied lifeboats shall not be lowered into the water as part of the abandon ship drill. As of 1st July 2006 SOLAS Chapter III Regulation 19 no longer requires that lifeboat be launched with any crew aboard during abandon ship drill. Alternate methods of manning the lifeboats, once in the water, should be developed for drill purposes. 17) Abandon Ship drill procedure must include the following: a. Develop use procedures that allow launching unmanned Lifeboat. b. Command center manned by senior rig management. b. Immediate and repeated PA announcement “This is a Drill - This is a Drill”. c. Two trained and competent lifeboat men assigned to each lifeboat. d. Headcount procedure for verification/reporting (to the command center), that all persons are accounted for. e. Search and rescue procedure to locate all missing persons. Search and rescue procedures must include a detailed predetermined search pattern, search pattern diagrams must be posted in the control room, at each muster station, and at the rescue/search team station. f. Maximum acceptable response time for all persons to report to their boat stations. g. Verification that everyone aboard the rig is capable of entering the lifeboat and securely fastened his seat belt while wearing both a PFD and SCBA. h. Instruction in the use of radio life-saving appliances. 18) Each abandon ship Drill shall be documented on the International Association of Drilling Contractors (IADC) Report, the SA Morning Report, and the approved Drill Report format.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 19) Documentation shall include the response time for all aboard to muster to their assigned boat stations, areas for improvement and responsibility for implementation of improvements. Frequency: Abandon Ship Drills shall be conducted once every week. D. Rescue Boat Drill Rescue boats (other than lifeboats which are also rescue boats), should be launched each month with their assigned crew aboard and maneuvered in the water. In all cases this requirement shall be complied with at least once every three months. Frequency: Rescue Boat Drill shall be conducted once every month. E. Fire Drill Fire drills should be planned in such a way that due consideration is given to regular practice in the various emergencies that may occur depending on the type of vessel and the cargo. Each fire drill shall include: 1) Reporting to stations and preparing for the duties described in the station bill. Drill report should include pump pressure procedure where known. 2) Starting of a fire pump, using at least the two required jets of water to show that the system is in proper working order. 3) Inspection of fireman's outfit and other personal rescue equipment. 4) Inspection of relevant communication equipment. 5) Checking the operation of watertight doors, fire doors, fire dampers and main inlets and outlets of ventilation systems in the drill area, where available. 6) Checking the necessary arrangements for subsequent abandoning of the Mobile Offshore Drilling Unit (MODU). 7) The SA Liaisonman shall observe and time crew response during fire drills and verify that the Fire Attack Plan and Fire Attack Teams are adequate to address the fire risk. 8) Each rig shall conduct a fire drill at least once per month. The SA Liaisonman will decide if more frequent fire drills are required to ensure adequate response. 9) Fire drill locations shall be varied to provide practice in all Fire Attack Plans. 10) Each fire drill shall be documented on the IADC Report, the SA Morning Report and the approved Drill Report format. Documentation shall include the location and type of drill and the response time to assemble and begin to fight the fire. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued Frequency: Fire Drill shall be conducted once every 4 weeks. F. Man Down (Injury) Drills 1) Each rig shall develop a Medical Evacuation (MEDEVAC) Plan that complies and coordinates with SA G.I. 1321.015 (Request for Air Medical Evacuation). Even if air Medevac’s is unlikely G.I. 1321.015 contains other critically important procedures to ensure a rapid and effective response to a medical emergency. 2) Each rig shall have the telephone number of the following posted in the rig clinic, the rig office, and the radio room (if applicable, e.g. offshore rigs): a. Nearest medical facility. b. Contractor medical provider facility. c. Nearest SA medical clinic. d. SA Aviation (Offshore). 3) Each rig shall develop Man Down (Injury) Drill procedures to address and treat an immobilizing injury occurring anywhere on the rig location. 4) As a minimum, Man-Down (Injury) Drill procedure shall address the following: a. Prompt notification of the Medic. b. First aid at the injury site. c. Placing and securing the injured person in a basket stretcher. d. Transferring the injured person to the rig clinic. 5) Each rig shall conduct a Man-Down (Injury) Drill in conjunction with the weekly H2S Rescue Drill. The SA Liaisonman will decide if more frequent Man Down (Injury) drills are required to ensure adequate response. 6) The SA Liaisonman shall observe and time crew response during Man Down (Injury) Drills and verify that the procedures are adequate to provide prompt and effective treatment. 7) Each Man Down (Injury) Drill shall be documented on the IADC Report, the SA Morning Report and the approved Drill Report format. Documentation shall include the location and type of drill and the response time to bring the injured person to the clinic. 8) The Rig Medic shall be responsible for the training of a Stretcher Team, as a minimum the Stretcher Team shall be competent in: a. Immobilizing a casualty. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued b. Using the correct techniques when maneuvering a casualty in to a stretcher. c. Identifying the appropriate type of stretcher to use. d. Basic First Aid. e. CPR. Frequency: Man-Down (Injury) Drills shall be conducted once every 8 weeks. G. Vertical Rescue Drill 1) Each rig shall conduct a Vertical Rescue Drill for example getting an immobilized injured man safely down from the monkey board, once per year. Note: A suitably weighted dummy must be used to simulate the injured person. 2) Each rig shall develop Vertical Rescue Drill procedures to address and treat an immobilizing injury occurring for each reasonable scenario anywhere at height at the rig location. 3) As a minimum, Vertical Rescue Drill procedure shall address the following: a. Prompt notification of the Medic. b. First aid at the injury site if possible. c. Placing and securing the injured person in a basket stretcher (appropriate rescue equipment). d. Transferring the injured person from height to the rig clinic (during all drills, a suitably weighted dummy must be used). 4) Each rig shall conduct a Vertical Rescue Drill at least once per year. The SA Liaisonman will decide if more frequent Vertical Rescue Drills are required to ensure adequate response. 5) The SA Liaisonman shall observe and time crew response during Vertical Rescue Drills and verify that the procedures are adequate to provide prompt and effective treatment. 6) Each vertical rescue drill shall be documented on the IADC Report, the SA Morning Report and the approved Drill report format. Documentation shall include the location and type of drill and the response time to bring the injured person to the clinic. Frequency: Vertical Rescue Drill shall be conducted once every year. H. Man-Overboard Drills 1) Each offshore rig shall develop Man-Overboard rescue procedures and train a sufficient number of crewmen to effect a safe and prompt rescue.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 2) Each offshore rig shall conduct a man-overboard drill at least once per quarter. The SA Liaisonman or OIM will decide if more frequent man overboard drills are required to ensure adequate response. 3) A suitably weighted dummy shall be used to simulate a man overboard. 4) Man overboard drills shall involve either (or both) the standby boat, when on location, or the rig’s own rescue boat, depending upon equipment available on that specific rig. 5) If no standby boat is readily available, the rig must launch a rescue boat to retrieve the dummy. 6) Each man-overboard drill shall be documented on the IADC Report, the SA Morning Report and the approved Drill report format. Documentation shall include the response time to rescue the man overboard. Frequency: Man-Overboard Drills shall be conducted once every 12 weeks. I.

Confined Space Rescue Drill 1) Each offshore rig shall develop confined space rescue procedures and train a sufficient number of crewmen to effect a safe and prompt rescue. 2) Each rig shall conduct a confined space drill at least once every 3 months. The SA Liaisonman will decide if more frequent confined space rescue drills are required to ensure adequate response 3) A suitably weighted dummy shall be used to simulate a casualty in a confined space. 4) A confined space rescue drill shall utilize all rescue equipment as defined in the Saudi Aramco Rig (SAR) Safe Work Authorization Procedure (SWAP) or contractor Permit to Work (PTW), Confined Space Entry (Refer to HSERM / A / A-21 / CS). 5) For the purpose of drills, all the safety requirements shall be followed. 6) Drill shall be planned so as to familiarize the rescue teams with all reasonable confined spaces rescue scenarios on the rig. Frequency: Confined Space Drill shall be conducted once every 12 weeks.

J. Hydrogen Sulfide (H2S) Release Emergency Drills 1) All personnel must be able to don breathing apparatus and breathe bottled air within 45 seconds. 2) All personnel must be able to recognize the H2S alarm and know to proceed to the safe briefing area (SBA).

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 3) Each rig operating in a known or suspected H2S area shall conduct an H2S drill at least once per week. The SA Liaisonman will decide if more frequent H2S drills are required to ensure adequate response. 4) The H2S drill shall be announced by the standard siren and strobe light alarm. There must be no prior warning of the drill. Note: The rig PA system shall immediately and repeatedly announce:

“This is a Drill - This is a Drill” 5) H2S drill procedure shall include the following: a. Masking up and breathing bottled air. b. Requiring all non-essential personnel (i.e. no specific assigned tasks in the drill) muster at designated SBA. c. Conducting a head count or other means to account for all personnel. d. Rescue procedures for rescuing potentially injured persons from the H2S contaminated site or vicinity (Refer to HSERM / A / A-6 / ED / 2.K). 6) Each H2S drill shall be documented on the IADC Report, the SA Morning Report and the approved Drill Report format. Documentation shall include the response time (to complete the drill). K. H2S Rescue Drills 1) Each rig operating in a known or suspected H2S area shall conduct an H2S rescue drill as part of their weekly H2S drill. The SA Liaisonman or PIC will decide if more frequent H2S rescue drills are required to ensure adequate response. 2) There must be no prior warning of the drill, nor any warning whatsoever that someone is missing. It is critically important to verify that the standard H2S drill procedure is adequate to identify who is missing and locate and rescue them. 3) H2S Rescue Drills shall proceed as per normal H2S drills, with the following additions: a. Contractor PIC shall assign one crew member to act as an “H2S victim” and place this individual at an appropriate location. b. No other crew member shall be given advance notice of either the drill or that someone may be missing. c. Following their normal H2S drill procedure, the rig crew must be able to identify that someone is missing, locate the missing person, and rescue him by bringing him to the safe briefing area and administering appropriate first aid within 7 minutes after the alarm first sounded. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued Frequency: H2S Release Emergency Drills shall be conducted once every week. L. Pit Drills Pit Drills simulate an actual kick while drilling ahead and is designed as both a teaching and testing tool. Pit Drills train the Driller to be constantly aware of the fluid level in the mud pits. Pit Drills should be supervised by the Toolpusher and coordinated through the SA Liaisonman. 1) All equipment required for Pit Drills is to be installed prior to drilling and kept in good operating condition. 2) A multi-float pit level indicator and flow show device must be available. 3) A pre-arranged horn or siren signal is an essential part of the pit drill. At the signal, each crewmember must: a. Go immediately to his assigned post and execute his assigned duties. b. The SA Liaisonman shall note the times required (in minutes) for various aspects of the pit drills and record them on the approved Drill Report format. c. The number and times for these drills should be relayed to the office via morning reports, the Monthly HSE Monitoring Report/Scorecard and the approved Drill Report format. 4) One or more pit drills should be conducted each day until the crews become proficient, then at least twice weekly per crew, or more often if deemed advisably by the SA Liaisonman. 5) Pit Drills should be held at least one each day on wildcats wells and wells where above-normal bottom hole pressure could exist. 6) New drillers should be given special drills and thorough explanation of this practice. It is one of the most important safety measures that can be initiated and followed. 7) Drills are to be conducted during both routine and special operations. Typical times would be while: a. Drilling. b. Shut down for equipment repairs. c. Logging. d. Waiting on orders. e. Circulating. f.

Or any other time there is open hole and Blowout Preventers (BOP) installed.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 8) Procedure a. The Toolpusher simulates the kick by raising a float in the mud pits or by raising the arm on the flow show indicator and making a note of the time. b. The SA Liaisonman shall assist in observing the crew and recording completion times. c. The Driller must detect the kick and sound alarm. d. The time of the alarm must be noted. e. Upon hearing the alarm, all members of the drilling crew should immediately execute their assigned duties. f.

The Driller should prepare to shut in the well using the approved SA Shut-in Procedure While Drilling.

g. The SA Liaisonman shall be on the rig floor to announce to the driller that the exercise is only a drill and to stop him before he actually closes the blowout. h. The time must be noted when the driller is prepared to shut in the well. i.

Members of the drilling crew must report back to the rig floor having completed their assigned duties. These duties may include: 1. Driller Shut in the well (simulated). Record drill pipe, pressure and casing pressure, Record time, Measure pit gain, check choke manifold for valve positioning and leaks. 2. Derrick Man/ Barge Engineer Weigh sample of mud from suction pit, check volumes of barite, gel and water on location. 3. Assistant Driller (AD) Check accumulator pressures and pumps. Check BOP stack for leaks and proper valve positions, turn on water jets to diesel exhausts. 4. Floor Hand No.1 and 2 Assist Driller on rig floor. 5. Floor Hand No.3 Assist Derrick Man on mud pits.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued Frequency: One or more pit drills should be conducted each day until the crews become proficient, then at least twice weekly per crew, or more often if deemed advisably by the SA Liaisonman. M. Trip Drills 1) The trip drill is designed to train the drilling crew to recognize and respond to kick indications which occur while tripping pipe. The trip drill is useful for both teaching and testing purposes. 2) The trip drill is supervised by the Toolpusher with the knowledge of the SA Liaisonman. 3) All parts of the well control system must be kept hooked up and in good condition, ready for drills. 4) When a new rig is picked-up, trip drills should be conducted during each trip (both while pulling out and going into the hole) while the bit is up in the casing. When the crew becomes proficient, trip drills should be conducted at least twice weekly per crew, conditions allowing. 5) Procedure a. The Toolpusher simulates the kick by raising a float in the trip tank and making a note of the time. b. The SA Liaisonman shall assist in observing the crew and recording completion times. c. The Driller must detect the kick and sound the alarm. d. The time of the alarm shall be noted. e. Upon hearing the alarm, all members of the drilling crew shall immediately execute their assigned duties. f.

The Driller must prepare to shut in the well using the approved SA Shut-in Procedure While Tripping. This shall include spacing out and stabbing/closing the full open safety valve.

g. After the safety valve is installed and the Driller is ready to close the preventers, the SA Liaisonman shall announce to the Driller that the exercise is only a drill and that it is not necessary to close the preventers. h. The time shall be noted when the driller is prepared to shut-in the well. i.

Members of the drilling crew should proceed with their assigned duties and report back to the rig floor upon completion. These duties may include:

SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 1. Driller Shut in the well (simulated), Record drill pipe and casing pressure, record time, Measure pit gain, Check choke manifold for valve positioning and leaks. 2. Derrick Man/Barge Engineer Weigh sample of mud from suction pit, Check volumes of barite, gel, and water. 3. Assistant Driller Check accumulator pressures and pumps, Check BOP stack for leaks, turn on water jets to diesel exhausts. 4. Floor Hand No.1 and 2 Stab safety valve. Close safety valve Stab inside BOP. Open safety valve, Assist Driller on rig floor. 5. Floor Hand No.3 Assist Derrick man on mud pits. Frequency: Trip drills should be conducted during each trip (both while pulling out and going into the hole) while the bit is up in the casing. When the crew becomes proficient, trip drills should be conducted at least twice weekly per crew, conditions allowing N. Accumulator Drill/Test Accumulator drill/test is designed to verify that the accumulator/closing system is in good working order and that it is properly sized for the particular blowout preventer stack. Accumulator performance must be proven with an accumulator drill when the BOPs are first installed (which verifies proper sizing), and every 14 days on a gas well and 21 days on an oil well. Thereafter in accordance with the Saudi Aramco Well Control Manual (SAWCM). 1) Results of the accumulator drill, including closing times of the rams and annular preventer, and initial final accumulator pressures are to be reported on the BOP Test and Equipment Checklist. 2) A notation should also be made on the tour report that an accumulator drill was conducted. 3) Accumulator drills must be conducted when the drill pipe is not in open hole, but up in the casing. 4) At least one joint of drill pipe must be in the hole for the pipe rams to close on. 5) The SA Liaisonman and Toolpusher should witness all accumulator drills, but the Toolpusher is responsible for the actual supervision of the drill. 6) Use the remote station to close the preventers every other drill. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 7) Procedure a. Turn off all accumulator-pressurizing pumps. b. Record the initial accumulator, manifold, and annular pressures. c. Close all of the preventers (Except the Blind Rams). Substitute a reopening of a pipe ram to simulate the blind ram closure when applicable. d. Open the Hydraulic Control Relief (HCR) valve. e. Measure and record the closing times for each preventer with a stopwatch. f.

Record the final accumulator, manifold, and annular pressures.

g. To pass the accumulator test, all BOPs must have closed in less than 30 seconds with at least: 1500 psi accumulator pressure remaining (for a 3000 psi accumulator). Note: Equipment that does not meet these requirements either has insufficient capacity, insufficient pre-charge or needs repair. Closing time for annular preventers 20" and larger should not exceed 45 seconds. h. Observe the remaining pressure for at least 5 minutes to detect any possible ram piston seal leaks. i.

Re-open the BOP and turn the accumulator pump(s) back on.

j.

Record the time required to charge system back up (re-charge time).

Frequency: Accumulator performance must be proven with an accumulator drill/test when the BOPs are first installed (which verifies proper sizing), and every 14 days on a gas well and 21 days on an oil well. Thereafter in accordance with the SAWCM. O. Annual Emergency Drills 1) D&WO shall conduct an annual “Primary” rig emergency drill as per G.I. 1851.001, to better prepare for unexpected well disaster when they occur. One MODU from each drilling department (where applicable) and one MODU from workover shall be selected annually to participate. 2) This drill shall be coordinated with the disaster plan drill of Northern area Producing, Marine Department and other operating organizations so that all parties shall become familiar with the respective responsibilities and response plans. 3) By conducting joint drills, the response time to activate the disaster plans for a blowout will decrease, resulting in rapid control of the well. This Primary drill shall require full mobilization of equipment and personnel.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 4) D&WO shall also conduct annual “Secondary” rig emergency drills with each MODU. The “Secondary” drills shall evaluate readiness to respond to a major incident and shall require minimal mobilization of equipment and personnel. Frequency: Once per year. P. Oil Spill Equipment Clean-up Drill 1) Oil spill drills shall include instructions for the use and proper deployment of oil containment and recovery and/or oil dispersing equipment. 2) These drills shall be held at least once every six months unless the equipment has been used during the intervening period. 3) The format and scope of such a drill shall be formulated by the Regional Oil Spill Response Coordinator (ROSRC’s) and approved as necessary by the ROSRC Members. 4) At least once in every two years, the drill shall be integrated with an offshore Primary drill to evaluate the coordination and response. Note: The equipment used during drills shall immediately be brought back to its fully operational condition and any faults and defects discovered during the drills shall be remedied as soon as possible. Frequency: Twice per year.

3. Onshore A. All Personnel on location must participate in drills. B. Drills shall, as far as practicable, be conducted as if there were an actual emergency. C. All drills shall be documented on the IADC Report, the D&WO Morning Report and the approved Drill Report format. D. Fire Drill Fire drills should be planned in such a way that due consideration is given to regular practice in the various emergencies that may occur depending on the type of operations on-going. Each fire drill shall include: 1) Reporting to stations and preparing for the duties described in the station bill. 2) Starting of a fire pump, using at least the two required jets of water to show that the system is in proper working order. Record the EFWP pressure and nozzle pressure if known. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 3) Inspection of fireman's outfit and other personal rescue equipment, for correct use and donning. 4) Inspection of relevant communication equipment, for operability. 5) Checking the operation of watertight doors, fire doors, fire dampers and main inlets and outlets of ventilation systems in the drill area, where applicable. 6) Checking the necessary arrangements for subsequent evacuation of the drilling rig. 7) The SA Liaisonman shall observe and time drill crew response. 8) Each rig shall conduct a fire drill at least once per month. The SA Liaisonman will decide if more frequent fire drills are required to ensure adequate response. 9) Fire drill locations shall be varied to provide practice in all Fire Attack Plans. The Fire Attack Plans shall be referenced. 10) The SA Liaisonman shall observe and time crew response during fire drills and verify that the Fire Attack Plan and Fire Attack Teams are adequate to address the fire risk. 11) Each fire drill shall be documented on the IADC Report, the SA Morning Report and the approved Drill Report format. Documentation shall include the location and type of drill and the response time to assemble and begin to fight the fire, areas of improvement with concise instruction for improvement with clear responsibility for the implementation of improvement. Frequency: Fire Drill shall be conducted once every 4 weeks E. Man Lost - Search/Rescue Drill 1) Confirm that a man is actually lost a. Reference the D&WO ERP Manual section 6.11 Man Lost – Search and Rescue. b. Each rig shall develop a viable search and rescue plan in accordance with D&WO ERP Manual section 6.11 Man Lost – Search and Rescue. c. The established Search Plan should be referenced for all search and rescue drills. Frequency: Man-Lost - Search Rescue Drills shall be conducted annually as a minimum, the D&WO Liaisonman may require that more frequent drills are require. F. Man-Down (Injury) Drills 1) Each rig shall develop a Medical Evacuation (MEDEVAC) Plan that complies and coordinates with SA G.I. 1321.015 (Request for Air Medical Evacuation). Even if an air Medevac is unlikely G.I. 1321.015 contains other critically important procedures to ensure a rapid and effective response to a medical emergency. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 2) Each rig shall have the telephone number of the following posted in the rig clinic, the rig office, and the rig clerk’s office: a. Nearest medical facility. b. Nearest SA medical clinic. c. SA Aviation. 3) Each rig shall develop Man Down (Injury) Drill procedures to address and treat an immobilizing injury occurring anywhere on the rig location, including an immobilized injured man at height. 4) As a minimum, Man-Down (Injury) Drill procedure shall address the following: a. Prompt notification of the Medic. b. First aid at the injury site. c. Placing and securing the injured person in a basket stretcher. d. Transferring the injured person to the rig clinic. 5) Each rig shall conduct a Man-Down (Injury) Drill at least once per quarter. The SA Liaisonman will decide if more frequent Man Down (Injury) drills are required to ensure adequate response. 6) The SA Liaisonman shall observe and time crew response during Man Down (Injury) Drills and verify that the procedures are adequate to provide prompt and effective treatment. 7) Each Man Down (Injury) Drill shall be documented on the IADC Report, the SA Morning Report and the approved Drill Report format. Documentation shall include the location and type of drill and the response time to bring the injured person to the clinic. 8) The Rig Medic shall be responsible for the training of a Stretcher Team, as a minimum the Stretcher Team shall be competent in: a. Immobilizing a casualty. b. Using the correct techniques when maneuvering a casualty in to a stretcher. c. Identifying the appropriate type of stretcher to use. d. Basic First Aid. e. CPR. Frequency: Man-Down (Injury) Drills shall be conducted once every 8 weeks.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued G. Vertical Rescue Drill 1) Each rig shall conduct a Vertical Rescue Drill for example getting an immobilized injured man safely down from the monkey board, once per year. Note: A suitably weighted dummy must be used to simulate the injured person. 2) Each rig shall develop Vertical Rescue Drill procedures to address and treat an immobilizing injury occurring for each reasonable scenario anywhere at height at the rig location. 3) As a minimum, Vertical Rescue Drill procedure shall address the following: a. Prompt notification of the Medic. b. First aid at the injury site if possible. c. Placing and securing the injured person in a basket stretcher (appropriate rescue equipment). d. Transferring the injured person from height to the rig clinic (during all drills, a suitably weighted dummy must be used). 4) Each rig shall conduct a Vertical Rescue Drill at least once per year. The SA Liaisonman will decide if more frequent Vertical Rescue Drills are required to ensure adequate response. 5) The SA Liaisonman shall observe and time crew response during Vertical Rescue Drills and verify that the procedures are adequate to provide prompt and effective treatment. 6) Each vertical rescue drill shall be documented on the IADC Report, the SA Morning Report and the approved Drill report format. Documentation shall include the location and type of drill and the response time to bring the injured person to the clinic. Frequency: Vertical Rescue Drill shall be conducted once every year H. Confined Space Rescue Drill 1) Each onshore rig shall develop confined space rescue procedures and train a sufficient number of crewmen to effect a safe and prompt rescue. 2) Each onshore rig shall conduct a confined space drill at least once every 3 months. The SA Liaisonman will decide if more frequent confined space rescue drills are required to ensure adequate response 3) A suitably weighted dummy shall be used to simulate a casualty in a confined space. 4) A confined space rescue drill shall utilize all rescue equipment as defined in the SAR Safe Work Authorization Procedure (SWAP) or Contractor Permit to Work (PTW), Confined Space Entry process (Refer to HSERM / A / A-21 / CS). 5) For the purpose of drills, all the safety requirements shall be followed. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 6) Drill shall be planned so as to familiarize the rescue teams with all confined spaces on the rig. Frequency: Confined Space Rescue Drill shall be conducted once every 12 weeks. I.

Hydrogen Sulfide (H2S) Release Emergency Drills 1) Every person must be able to don breathing apparatus and breathe bottled air within 45 seconds. 2) Every person who may be required to work on a land rig must be able to don breathing apparatus and breathe bottled air within 45 seconds. 3) All known persons working near a land rig must be able to recognize the H2S alarm and know to proceed to the safe briefing area. 4) Each crew of each rig operating in a known or suspected H2S area shall conduct an H2S drill at least once per week. The SA Liaisonman will decide if more frequent H2S drills are required to ensure adequate response. 5) The H2S drill shall be announced by the standard siren and strobe light alarm. There must be no prior warning of the drill. Note: The rig PA system shall immediately and repeatedly announce:

“This is a Drill - This is a Drill” 6) H2S drill procedure shall include the following: a. Masking up and breathing bottled air for those crew members whose assigned tasks require breathing apparatus. b. Requiring all non-essential personnel (i.e. no specific assigned tasks as per the Station Bill) muster at upwind safe briefing area (land rigs). c. Conducting a head count or other means to account for all personnel. d. Rescuing procedures for rescuing potentially injured persons from the H2S contaminated site or vicinity (Refer to HSERM / A / A-6 / ED). e. Following the drill, the contractor PIC and the SA Liaisonman shall randomly select (nonessential) crew members mustered at the safe briefing area and verify that they know how to don and breathe from breathing apparatus. 7) Each H2S drill shall be documented on the IADC Report, the SA Morning Report and the approved Drill Report format. Documentation shall include the response time (to complete the drill). Frequency: Hydrogen Sulfide (H2S) Release Emergency Drills shall be conducted once every week.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued J. H2S Rescue Drills 1) Each crew of each rig operating in a known or suspected H2S area shall conduct an H2S rescue drill at least once per month (as part of their weekly H2S drill). The SA Liaisonman or Contractor PIC will decide if more frequent H2S rescue drills are required to ensure adequate response. 2) There must be no prior warning of the drill, nor any warning whatsoever that someone is missing. It is critically important to verify that the standard H2S drill procedure is adequate to identify who is missing and locate and rescue him. 3) H2S Rescue Drills shall proceed as per normal H2S drills, with the following additions: a. Contractor PIC shall assign one crew member to act as an “H2S victim” and place this individual at an appropriate location. b. No other crew member shall be given advance notice of either the drill or that someone may be missing. c. Following their normal H2S drill procedure, the rig crew must be able to identify that someone is missing, locate the missing person, and rescue him by bringing him to the safe briefing area and administering appropriate first aid within 7 minutes of the initial alarm sounding. Frequency: H2S Rescue Drill shall be conducted once every 4 weeks. K. Well Control Drills Shutting-in the well quickly to minimize the size of the influx is a major element of successful well control. Drilling crews can only get proficient in this action through training and practice. The SA Liaisonman should ensure that the Toolpusher administers training in the areas of kick detection and shut-in procedures until proficiency is demonstrated. The training must be repetitive and frequent enough so that shutting-in the well becomes automatic whenever a kick is detected. L. Pit Drills The pit drill is designed to simulate an actual kick while drilling ahead and is designed as both a teaching and testing tool. Pit drills train the Driller to be constantly aware of the fluid level in the mud pits. Pit drills should be supervised by the Toolpusher and coordinated through the SA Liaisonman. 1) All equipment required for pit drills is to be installed prior to drilling and kept in good operating condition. 2) A multi-float pit level indicator and flow show device must be available. 3) A pre-arranged horn or siren signal is an essential part of the pit drill. At the signal, each crewmember must:

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued a. Go immediately to his assigned post and execute his assigned duties. b. The SA Liaisonman shall note the times required (in minutes) for various aspects of the pit drills and record them on the tour report. c. The number and times for these drills should be relayed to the office via morning reports and the Monthly HSE Monitoring Report/Scorecard. 4) One or more pit drills should be conducted each day until the crews become proficient, then at least twice weekly per crew, or more often if deemed advisably by the SA Liaisonman. 5) Pit Drills should be held at least once each day on wells, wildcats, and wells where above-normal bottom-hole pressure could exist. 6) Drills are to be conducted during both routine and special operations. Typical times would be while: a. Drilling b. Shut down for equipment repairs c. Logging d. Waiting on orders e. Circulating f.

Or any other time there is open hole and Blowout Preventers (BOP) installed.

7) Procedure a. The Toolpusher simulates the kick by raising a float in the mud pits or by raising the arm on the flow show indicator and making a note of the time. b. The SA Liaisonman shall assist in observing the crew and recording completion times. c. The Driller must detect the kick and sound alarm. d. The time of the alarm must be noted. e. Upon hearing the alarm, all members of the drilling crew should immediately execute their assigned duties. f.

The Driller should prepare to shut in the well using the approved SA Shut-in Procedure While Drilling.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued g. The SA Liaisonman shall be on the rig floor to announce to the driller that the exercise is only a drill and to stop him before he actually closes the blowout. h. The time must be noted when the driller is prepared to shut in the well. i.

Members of the drilling crew must report back to the rig floor having completed their assigned duties. These duties may include: 1. Driller Shut in the well (simulated). Record drill pipe, pressure and casing pressure, Record time, Measure pit gain, check chock manifold for valve positioning and leaks. 2. Derrick Man Weigh sample of mud form suction pit, check volumes of barite, gel and water on location. 3. Assistant Driller Check accumulator pressures and pumps, Check BOP stack for leaks and proper valve positions, turn on water jets to diesel exhausts. 4. Floor Hand No.1 and 2 Assist Driller on rig floor. 5. Floor Hand No.3 Assist Derrick Man on mud pits

Frequency: One or more pit drills should be conducted each day until the crews become proficient, then at least twice weekly per crew, or more often if deemed advisably by the SA Liaisonman. M. Trip Drills 1) The trip drill is designed to train the drilling crew to recognize and respond to kick indications which occur while tripping pipe. The trip drill is useful for both teaching and testing purposes. 2) The trip drill is supervised by the Toolpusher with the knowledge of the SA Liaisonman. 3) All parts of the well control system must be kept hooked up and in good condition, ready for drills. 4) When a new rig is picked-up, trip drills should be conducted during each trip (both while pulling out and going into the hole) while the bit is up in the casing. When the crew becomes proficient, trip drills should be conducted at least twice weekly per crew, conditions allowing.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 5) Procedure a. The Toolpusher simulates the kick by raising a float in the trip tank and making a note of the time. b. The SA Liaisonman shall assist in observing the crew and recording completion times. c. The Driller must detect the kick and sound the alarm. d. The time of the alarm shall be noted. e. Upon hearing the alarm, all members of the drilling crew shall immediately execute their assigned duties. f.

The Driller must prepare to shut in the well using the approved SA Shut-in Procedure While Tripping. This shall include spacing out and stabbing/closing the full open safety valve.

g. After the safety valve is installed and the Driller is ready to close the preventers, the SA Liaisonman shall announce to the Driller that the exercise is only a drill and that it is not necessary to close the preventers. h. The time shall be noted when the driller is prepared to shut-in the well. i.

Members of the drilling crew should proceed with their assigned duties and report back to the rig floor upon completion. These duties may include: 1. Driller Shut in the well (simulated), Record drill pipe and casing pressure, record time, Measure pit gain, Check choke manifold for valve positioning and leaks. 2. Derrick Man Weigh sample of mud from suction pit, Check volumes of barite, gel, and water. 3. Assistant Driller Check accumulator pressures and pumps, Check BOP stack for leaks, turn on water jets to diesel exhausts. 4. Floor Hand No.1 and 2 Stab safety valve. Close safety valve Stab inside BOP. Open safety valve, Assist Driller on rig floor.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued 5. Floor Hand No.3 Assist Derrick man on mud pits. Frequency: Trip drills should be conducted during each trip (both while pulling out and going into the hole) while the bit is up in the casing. When the crew becomes proficient, trip drills should be conducted at least twice weekly per crew, conditions allowing. N. Accumulator Drill/Test Accumulator drills/tests are designed to verify that the accumulator/closing system is in good working order and that it is properly sized for the particular blowout preventer stack. Accumulator performance must be proven with an accumulator drill when the BOPs are first installed (which verifies proper sizing), and every 14 days thereafter in conjunction with the weekly BOP pressure tests (which checks for hydraulic leaks). 1) Results of the accumulator drill, including closing times of the rams and annular preventer, and initial final accumulator pressures are to be reported on the BOP Test and Equipment Checklist. 2) A notation should also be made on the tour report that an accumulator drill was conducted. 3) Accumulator drills must be conducted when the drill pipe is not in open hole, but up in the casing. 4) At least one joint of drill pipe must be in the hole for the pipe rams to close on. 5) The SA Liaisonman and Toolpusher should witness all accumulator drills, but the Toolpusher is responsible for the actual supervision of the drill. 6) Use the remote station to close the preventers every other drill. 7) Procedure a. Turn off all accumulator-pressurizing pumps. b. Record the initial accumulator, manifold, and annular pressures. c. Close all of the preventers (Except the Blind Rams). Substitute a reopening of a pipe ram to simulate the blind ram closure when applicable. d. Open the Hydraulic Control Relief (HCR) valve. e. Measure and record the closing times for each preventer with a stopwatch. f.

Record the final accumulator, manifold, and annular pressures.

g. To pass the accumulator test, all BOPs must have closed in less than 30 seconds with at least: 1500 psi accumulator pressure remaining (for a 3000 psi accumulator). SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued Note: Equipment that does not meet these requirements either has insufficient capacity, insufficient pre-charge or needs repair. Closing time for annular preventers 20" and larger should not exceed 45 seconds. h. Observe the remaining pressure for at least 5 minutes to detect any possible ram piston seal leaks. i.

Re-open the BOP and turn the accumulator pump(s) back on.

j.

Record the time required to charge system back up (re-charge time).

Frequency: Accumulator performance must be proven with an accumulator drill/test when the BOPs are first installed (which verifies proper sizing), and every 14 days thereafter in accordance with the SAWCM (SAWCM). O. Annual Emergency Drills 1) D&WO shall conduct an annual “Primary” rig emergency drill as per G.I. 1850.001, to better prepare for unexpected well emergencies when they occur. One Land rig from each drilling department and one Land rig form workover shall be selected annually to participate. 2) This drill shall be coordinated with appropriate operating organizations so that all parties shall become familiar with the respective responsibilities and response plans. 3) By conducting joint drills, the response time to activate the disaster plans for a blowout will decrease, resulting in rapid control of the well. This Primary drill shall require full mobilization of equipment and personnel. 4) D&WO shall also conduct annual “Secondary” rig emergency drills with each Producing crew department. The “Secondary” drills shall evaluate readiness to respond to a disaster and shall require minimal mobilization of equipment and personnel. Frequency: Annual Emergency Drills shall be completed once per year. P. Oil Spill Equipment Clean-up Drill 1) Oil spill drills shall include instructions for the use and proper deployment of oil containment and recovery and/or oil dispersing equipment. 2) These drills shall be held at least once every six months unless the equipment has been used during the intervening period. 3) The format and scope of suck drill shall be formulated by the ROSC(s) and approved as necessary by the ROSC Members. 4) At least once in every two years, the drill shall be integrated with an offshore disaster drill to evaluate the coordination and response. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-6 / ED / Continued Note: The equipment used during drills shall immediately be brought back to its fully operational condition and any faults and defects discovered during the drills shall be remedied as soon as possible. Frequency: Oil Spill Equipment Clean-up Drill shall be completed once per year.

4. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

5. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-7

Drops Program

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-7 / Drops Program (DP) While primary focus of this program shall be on the derrick, this policy applies to all other equipment areas of the rig that are determined to pose a hazard of falling objects, such as tool rooms, cranes etc. This program applies to; Saudi Aramco D&WO, Contractor and Service Companies. 1. Responsibility A. The Rig Operator Person In Charge (PIC) is responsible for ensuring that the inspection required by this requirement are entered into the rig’s applicable preventive maintenance system and that the instructions contained therein are complied with. B. The Rig Operator PIC shall ensure that all temporary equipment arriving at rig location for use in situations where it may create a dropped object hazard that is not covered by the inspections required under this requirement is accounted for on a log sheet that is to be maintained by the Rig Operator PIC until such time as the temporary equipment is removed from the rig. C. The Rig Operator PIC is responsible for maintaining the temporary equipment log, and ensuring that an inspection checklist is added to “DROPS” for as long as the temporary equipment is in use on the rig.

2. Procedure A. Identify the Derrick zones. Divide the derrick into small manageable sections to help you define areas for identification. The number of zones shall depend on the size of derrick and the amount of equipment in the derrick. Typically five zones are used: 1) Zone1: Travelling Equipment 2) Zone 2: Crown Section 3) Zone 3: Monkey board to Crown 4) Zone 4: Rig Floor to Monkey Board 5) Zone 5: Lower Substructure and BOP deck. B. Compile an Inventory of Equipment. The inventory listing process will require considerable effort and commitment from various personnel and could take some time depending on available resources. The time and effort spent compiling this list will greatly affect the success of the program. An accurate and detailed list is crucial and will benefit all involved. Record the information using a separate form for each zone identified. On the same form enter the fastening methods used on each item and any inspection detail that will aid the inspector in the inspection process. C. Remove all non-essential equipment from the derrick. D. Review derrick inventory and define each item as essential or non-essential. Each item deemed nonessential or redundant should be analyzed for any knock off effect if remove. This process should involve Rig management. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-7 / DP / Continued E. Once the items are removed from the derrick the inventory list should be modified to reflect the changes. F. Periodic inspections of the different zones shall be scheduled. Once inspections are carried out, the necessary information should be entered into the Preventive Maintenance (PM) system to show compliance. All items in the inventory need to be accounted for and inspected. Any item found in a particular zone, not listed in the inventory needs to be noted, with reason for being in the derrick and expected duration. The rig foreman may periodically request that the list be changed to reflect changes in operational requirements. Note: Rigs should make the derrick inspections a part of their current PM program. 1) Inspection Schedule a. All derrick zones shall be inspected by rig personnel a minimum of once per month with inspection results recorded in the PM system. b. An annual derrick inspection shall be conducted by a third party contractor. A record of the third party inspection shall be kept at the rig site until superseded by the next annual inspection. 2) Control of Temporary Equipment a. A log sheet should be used to effectively control temporary equipment within the derrick, e.g. hand tools used during maintenance or equipment taken up the derrick for operation such as wire line work. The old age adage of “what goes up must come down” is extremely relevant. b. Any tool or equipment taken aloft should be logged in and signed off by the person carrying out the task as well as the Driller on duty. Once the tool or equipment is removed, it should be logged out in the same manner. This log sheet should be used to periodically check to see that all temporary items have been removed from aloft after use. 3) Covering other areas of the rig Once “DROPS” has been implemented for the derrick, the same process should then be applied to other areas of the rig, starting with the more critical areas first. Other areas should include but not be limited to the following: a. Cranes b. Jack Houses c. Storerooms, tool rooms and paint lockers d. Shale Shaker areas e. Welding Shack and surrounding areas f.

Machinery Spaces

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-7 / DP / Continued g. Underneath drilling substructures between Cantilever Beams on jack-ups, and around the moon pool areas on floaters. h. Quarters Areas, both internal and external, including accommodation spaces, galleys, mess rooms, change rooms, laundry rooms, etc. To make the inspection process easier these other areas should be divided up and assigned to specific departments. i.

Other Areas as determined by the OIM/PIC.

3. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

4. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-8

Short Service Employee Program

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-8 / Short Service Employee Program (SSE) The purpose of this program is to help protect persons who are at particular risk on SA work sites because they are new (Short Service Employees), or are unfamiliar with the site. 1. Scope This program is applicable to all SA Drilling and Workover facilities, drilling contractor and service companies.

2. Responsibility It is responsibility of each Contractor PIC to ensure that a Short Service Employee program, meeting the minimum requirements of this program, is implemented at his site. 3. Procedure A. All new employees regular and contract employees holding rig rotational positions or assigned to a shore base industrial site, and all Visitors (Office Personnel) to SA industrial sites shall be easily identified as Short Service Employees by the following system. 1) For the first 90 working days that they are filling a regularly rotating or field position they shall wear a GREEN hardhat. If they are transferred to or working temporarily on another SA site during this time period, they shall continue to wear a GREEN hardhat for the duration of their initial 90 working day period. B. After the 90 working day initial period they shall only wear a WHITE hardhat. A Short Service employee shall be only or all of the following: 1) New to the industry. 2) New to the company. 3) New to the rig/location. C. All service personnel shall conform to the above system of recognition but in any event shall NOT wear a hardhat color that conflict with and / or reduces the effectiveness of the above system. D. The Site Manager shall have the authority to assign Short Service Employee status (GREEN hardhat) to any person whom he assesses to be particularly at risk irrespective of their assignments, service time or location of employment E. All Short Service Employee (SSE’s) are required to attend an initial orientation on the rig prior to beginning work.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-8 / SSE / Continued F. All SSE’s shall be assigned, a safety partner (Mentor) from within their work group. The supervisor and appointed safety partner (Mentor) shall provide close supervision during the appropriate familiarization period and ensure that the SSE does not attempt to perform any task in which he has not been properly trained. G. The supervisor and designated safety partner shall ensure that the SSE is familiarized with personal protective equipment, procedure, the location and operation of emergency equipment. H. The supervisor and appointed safety partner shall discuss and review with the SSE any and all known and/or potential hazards associated with a proposed task prior to commencement and review all emergency equipment, personal protective equipment and procedures. An appropriate hazard recognition process must be utilized. I.

Throughout the appropriate SSE period, a green hard hat shall distinguish SSE personnel.

J. The appropriate supervisor shall enroll the SSE into the program by utilizing the Short Service Employee Enrollment Form. The completed form shall be submitted to the SA DOE&CD with a copy retained on the rig to record the enrollment. K. Following the successful completion of the required SSE period, the supervisor and appointed safety partner shall record the fact by signing and dating the enrollment form. The completed form shall be maintained on the rig copies shall be forwarded to SA DOE&CD. An employee shall not be considered a graduate from the program until he/she has successfully completed the following training as a minimum: 1) Hydrogen Sulfide (H2S) safety training as per HSERM / B / B-5 / H2S Safety / Paragraph No.4. 2) Basic Fire Fighting. 3) Casualty Handing. 4) Permit to Work. 5) Hazard Recognition Program. 6) Rigging and Lifting. Note: All Training must be provided by a “Competent Person”. The term "Competent Person" is defined as "one who is capable of identifying existing and predictable hazards in the surroundings or working conditions which are unsanitary, hazardous, or dangerous to employees, and who has authorization to take prompt corrective measures to eliminate them". By way of training and/or experience, a competent person is knowledgeable of applicable standards, is capable of identifying workplace hazards relating to the specific operation, and has the authority to correct them. Some standards add additional specific requirements which must be met by the competent person.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-8 / SSE / Continued Additional questions and tasks may be added as necessary by the supervisor and safety partner to ensure that the employee has a working knowledge of Safety and Environmental procedures and has demonstrated safe work ethic and behavior throughout the period of the SSE program. L. Any Employee who is not deemed as qualified for release from SSE status after a period of 90 working days may continue to work only with the written approval of the Site Manager.

4. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

5. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-9

Requirements for Simultaneous Drilling and Producing Operations (Land Rigs)

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-9 / Requirements for Simultaneous Drilling and Producing Operations (SIMOPS), Land Rigs 1. Pre-Move and Planning This procedure is applicable to all SA Drilling and Workover facilities, drilling contractor and service companies.

A. A pre-move meeting shall be held at least 2 weeks before the rig move between the Drilling Foreman/Liaisonman, Area Producing (AP) and D&WO Well sites. The following and any other pertinent issues shall be discussed. A summary of the meeting shall be sent to Area Producing Department (APD). 1) Flagging all flow lines. 2) Layout of rig components and materials. 3) Installation of barricades and traffic control and responsibilities for same. 4) Wells to be shut-in in addition to the minimum requirements below and responsibility for installing mechanical down-hole barriers. 5) Main camp and mini-camp locations. 6) Welding shop location. 7) Emergency Shut-Down (ESD), Sub Surface Safety Valve (SSSV) and H2S sensor testing and reliability assurance. 8) Installation of ESD switch in Drilling Forman’s office and rig floor (if required) for all wells connected to a production or injection manifold. 9) Review of AP and Drilling activates planned for the location. 10) Injector shut-in to avoid kicks while drilling thru reservoirs. B. The location ESD system must be operational and tested by AP Producing in the presence of Drilling Forman before rig mobilization to the site. If the ESD system is not functioning properly, no oil production shall be allowed while the rig on location until the ESD system is functioning properly. C. Substantial barricades (capable of stopping any rig vehicle moving at 10 km per hour) to be installed around all live/flowing equipment on the location – to stop any vehicle approaching closer than 20m to such equipment . D. Traffic controls (barricades) shall be installed on the location to direct all traffic away from flowing wells area. E. Rig move-in, rig-up, rig-down and move-off shall be a daylight only activity. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / SIMOPS / Continued F. An adequate Emergency Response Plan (ERP) shall be developed and implemented prior to any equipment being moved to well location. The ERP shall be in accordance with the requirements of D&WO SMS No. 8 / Emergency Preparedness. All reasonable scenarios shall be addressed with particular attention being paid to the ability to protect and evacuate additional none rig personnel on location.

2. Rig Move While the rig is moving on/off a location, all wells in adjacent rows and any other wells identified in the premove meeting, shall be shut-in. Prior to commencing operations, Drilling shall install additional H2S sensors between the rig and existing wells.

3. Rig Operating A. While the rig is operating, all wells within a distance of 85 meters from the wellbore shall be shut-in with two (2) mandatory mechanical shut-offs. This is minimum requirement only. Additional wells may be shut-in, as agreed to at the pre-move meeting. In general, producers can use SSSV and BPV; injectors can use a mono-lock plug and BPV. B. Any planned activity (surface or sub-surface) on the location shall be reviewed with the Drilling Foreman for his approval and coordination. This shall include, but is not limited to, sampling, bleeding, ESD maintenance, testing SSSV’s, wire line work, etc. anyone entering the location shall check-in and review his plans with the Drilling Foreman. C. Well Services activities are not allowed within 85 meters of the wellbore or in any other shut-in well on the location. D. When the rig is on the location, an AP representative shall be available on the location 24 hours as a single point of contact for the Drilling Foreman. E. In case of any alarm, well control situation, flaring, or other emergency, utilizing the ESD the Drilling Foreman is authorized to shut-in all wells on the same location without notifying AP at any time he feels it is not safe to operate with nearby wells active. The Drilling Foreman shall immediately notify the AP representative on location. The wells shall be returned to normal operation as soon as it is safe to do so. F. No location safety systems shall be by-passed, for the duration of drilling activities, unless there is written concurrence from Drilling Operations Management. If any ESD system is by-passed, the well(s) shall be shut-in. G. No major PMT or other construction work shall be allowed while the rig is on the locations. Minor work and all hot work shall be reviewed case by case with the Drilling foreman. H. Both location access roads shall remain clear at all times. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-9 / SIMOPS / Continued I. AP shall be responsible for supervising any work done on the location by AP or its contractor companies. J. Contact number of AP personnel shall be provided to the Drilling Foreman prior to working on any well in the location. K. All personnel on location at any time shall have H2S training and carry a current H2S certificate at all times. AP shall provide sufficient self-contained breathing apparatus for their contractor personnel. L. The ESD H2S alarm settings shall be as follows: 1) 5 ppm to actuate the siren. 2) 10 ppm to activate the ESD and shut all the wells. M. Drilling shall have two Drilling Foremen from spud to release. N. Drilling shall provide a Separator and Vertical Flare Stack from spud to release while operating on production location and while drilling across pay zones on an injection location. Note: The Auto Ignition system shall be operational from spud release. A location that contains both injectors and producers shall be considered a production location. O. Drilling shall have a Rig Safety Advisor available on the location from spud to release. P. AP shall adopt non-conventional sampling and bleeding methods that mitigate SIMOPS risk by eliminating the potential for hydrocarbon release and un-necessary activation of the ESD system.

4. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

5. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-10

Journey Management

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / Journey Management (JM) 1. Purpose The purpose of this procedure is to establish requirements and responsibilities for Drilling and Workover (D&WO) organizations for: controlling travel to and from remote locations; specifying proper equipment for remote area travel and operations; and defining responsibilities for implementing search and rescue operations for missing personnel or medical evacuations of injured/ill persons from remote areas. This procedure is a supplement to G.I.6.025 (Control of Remote Area Travel and Search/Rescue Procedures) and D&WO Safety Management System (SMS) Element No.6 (Safe Operations).

2. Scope This procedure applies to all SA employees, contractors, sub-contractors and service companies involved in remote area D&WO operations and associated travel, and includes responsibilities for implementing “Primary” and/or “Secondary” search and rescue operations for missing or injured personnel. 3. Definitions (Ref: G.I.6.025, Section 4.0) A. Remote Area Those areas of operation which by distance or topography are isolated from any existing facility capable of providing a timely response to an emergency situation, such as: 1) Seldom used tracks or dirt roads, such as pipeline corridors, skid roads to drilling rig locations, or tracks to exploration camps. 2) Air travel over land far from inhabited areas, developed roads or landing strips, or over open water. 3) Sea travel. 4) Off road travel, even if it is near to paved roads, towns or industrial facilities. B. Search and Rescue Response Commander (SRRC) The Executive Director of Industrial Services Organization or his assigned alternate. The SRRC shall assume control of all search and rescue activities on the activation of ‘Secondary’ response procedures. C. Search and Rescue Response Vice Commander (SRRVC) The Vice President of SA Medical Services Organization (SAMSO) or his designee. In any absence of the Search and Rescue Response Commander, the Vice President of SAMSO or his assigned alternate shall assume the responsibilities of the SRRC.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued D. Dhahran Emergency Control Center (ECC) The location from which the SRRC and designated personnel shall coordinate a ‘Secondary’ response. The ECC is located on the second floor of building 3193. E. Primary Response Search and rescue (SAR) actions initiated by the individual department when notified of stranded or missing personnel and/or medical emergencies in remote areas. Initial coordination with Emergency Medical Services for medical evacuations is included in ‘Primary’ response. F. Secondary Response A coordinated corporate level response to any emergency situation which involves search, rescue and/or medical evacuation operations in remote areas which exceed the available resources of “Primary” response organizations. G. Field Trips – Remote Travel – Deep Desert Areas Employees should be prepared for unexpected situations while travelling on field trips, remote areas and deep desert areas. Bad weather conditions, poor visibility, mechanical failures or even becoming lost. 1) Field Trips: The Daily Area Travel Log (Refer to HSERM / A / A-10 / JM / Appendix No.1) must be completed before driving to D&WO operations, drilling rigs, water well, well site constructions when trips involve driving distances more than 150km, one way from the origin point of travel, regardless of road conditions, (asphalt or dirt roads) or close proximity to company facilities on route. Drivers and crews shall ensure the minimum safety equipment is taken on all trips: a. Vehicle first aid kit and sufficient water. b. Communication equipment and Personnel Protective Equipment (PPE). c. Vehicle jacking and emergency equipment. 2) Remote and Deep Desert Areas: The Remote Area Travel Log (Refer to HSERM / A / A-10 / JM / Appendix No.2) must be completed before driving to any remote or deep desert areas. a. Remote Areas: Remote areas are classified as areas of operations which are geography isolated from any existing facility capable of providing a timely response to an emergency situation as:

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued 1. Seldom used tracks, dirt roads such as pipelines corridors, skid roads to D&WO Rig locations. 2. Off-Road travel even if it is near to paved roads, towns or industrial facilities. b. Deep Desert Areas: Deep desert areas are classified as areas more than 100km away from paved roads or any SA facilities. Deep desert driving has special requirements documented clearly in G.I.6.025. The minimum requirements for desert driving are: 1. 4X4 Vehicles. 2. 2 spare wheels per vehicle. 3. Remote communication equipment, GPS, Satellite telephones. 4. 2 vehicles travelling together. 5. 15 liters of water per person. 6. Sleeping kits. 7. Equipment Kits.

4. Responsibilities A. D&WO Management 1) Responsible for ensuring all employees follow departmental travel control procedures. This includes all contractors and service companies under their departments' supervision. 2) Ensure clear departmental procedures and policies are established. 3) Clearly communicate to the Division Heads that, contractor management understand that they are responsible to ensure all sub-contractors and service companies working directly for them follow adequate travel control procedures consistently. 4) During SOC meetings reinforce the commitment of service companies and contractors, their responsibility to follow Journey Management policies and procedures.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued B. Contractor Management Responsible for ensuring all their employees follow their own travel control procedures. As well, they are responsible for ensuring all sub-contractors and service companies working directly for them consistently follow adequate travel control procedures. C. Drivers All drivers are required to follow remote travel procedures developed by their employer at all times. Drivers shall stay on the planned or designated route while traveling and remain with the vehicle, if stranded for any reason, until help arrives. D. D&WO Division Head 1) Shall ensure all relevant Driver certification and vehicle asset documentation is recorded in the divisions filing system. a. Supervisors Road Test records (SRT). b. Authorized employees and SMPs driver’s license list. c. Assigned vehicle list. d. Near miss, traffic violation, MVA records. e. Driver performance / safe driving attitudes and behavior records. f.

Records of vehicle logs.

g. Any SA 1193 recordings. h. Enforce Travel management logs. 2) Ensure contractor and service companies under the department’s supervision have adequate travel control and Search and Rescue procedures (of their own) in place. 3) Communicate policy and regulation changes to all employees. 4) Provide adequate information on remote area work locations together with maps, communication tools and safety equipment for vehicles. 5) Initiate appropriate departmental search and rescue efforts when an employee in a remote area is reported missing. 6) Provide driver training including remote desert driving for employees and approved SMPs. 7) Provide Driver Improvement Refresher courses. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued 8) Ensure he enrolls specific employees into the Deep Desert Driving program and other related courses, radio communication, map and compass use. E. D&WO Unit Heads 1) Shall ensure only employees with SA Driver licenses operate vehicles. 2) Ensure vehicles are assigned to specific employees. Any pool vehicle or vehicle used by employees other than the assigned driver must utilize a vehicle log. 3) Ensure all employees DO NOT travel at night by planning all vehicle travel in daylight hours only. 4) Assign a Travel Controller (clerk) to coordinate, control and document daily travel logs, remote and deep desert travel logs and plans. 5) Ensure vehicle Safety Check Inspections are performed and documented by the assigned driver once a month. Records are kept for audit purposes. 6) Ensure existing employees, new hires or transferred personnel review driving policies and procedures including any site specific regulations during the site safety orientation. 7) Ensure vehicle checklists, travel documents, policies, procedures and safety equipment is available in his work area or facility and is communicated to all employees. 8) Ensure all SMPs under his supervision have the necessary driver training and certification when they operate any vehicle. 9) Promote safe driving practices to all employees whether during working or non-working hours. 10) Ensure drivers are proficient with the use of GPS. F. Employees 1) Shall apply safe driving practices and follow the SA policies and regulations when operating or driving company vehicles. 2) Shall be conversant with the SA G.I.6.025 and 6.030. 3) Ensure all driving is performed in daylight hours when travelling to and from work locations. 4) Perform vehicle safety checks utilizing the Department’s Vehicle Safety Checklist once a month. The assigned driver for each vehicle shall complete the checklist and give to his Supervisor for review. 5) Carry the minimum safety equipment when travelling to locations or facilities, mobile phone, drinking water, first aid kit and vehicle kits.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued 6) Complete the Vehicle Travel Logs, following the instructions before travelling to Field Trips, Deep Desert, Remote Areas, or Over Night Destinations. If a driver is leaving from his home and going directly to the location then he must: a. Telephone the Travel Controller (assigned clerk) and complete the form over the telephone by giving the full details of his trip. b. Before leaving location the driver shall call the Travel Controller and inform him of his return trip plans. c. When the driver returns home he must inform the Travel Controller. 7) Ensure accommodation is pre-determined and organized before travelling long distances. 8) Check weather conditions before travelling to locations and prepare accordingly. 9) Complete Vehicle Travel Log before driving to work areas away from the office. 10) Report any vehicle accidents, private or company immediately to the Unit Head. 11) Keep your licenses current and up to date. G. Contractors Shall apply safe driving practices follow the SA and contractor policies, regulations when operating or driving vehicles.

5. Procedure D&WO departments with remote area travel should take every effort to provide all equipment and supplies necessary and/or as required for survival and emergency situations which may be encountered. This effort should include frequent periodic inspections of the vehicles, aircraft, or vessels to ensure compliance and mechanical soundness. A. Travel Control System Requirements / Travel Controller A Designated Person (Travel Controller) in each Unit or work facility shall be assigned by the Unit Head to ensure all travel plans are recorded and closed out. The Travel Controller is responsible for initiating Primary Search and Rescue (SAR) Plan in the event a vehicle becomes overdue. Refer to: 1) HSERM / A / A-10 / JM / Appendix No.1 / Daily Travel Log. 2) HSERM / A / A-10 / JM / Appendix No.2 / Remote Travel Log / Deep Desert Travel Log.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued B. The Travel Controller and driver shall report as a minimum the following information to the site foreman: 1) Contact rig or facility; inform foreman how many personnel are travelling. 2) Expected time of travel. 3) Expected time of arrival. 4) Drivers contact details. 5) Reason for travel. The Travel Controller shall complete the travel Log with the assistance of any driver who is travelling directly from his home to location. All items on travel log must be clarified with the driver. C. Remote Travel Log System (Refer to HSERM / A / A-10 / JM / Appendix No.2) Minimum information required for single vehicle and convoy travel to be recorded as follows: 1) Name and company ID numbers of driver(s) and passengers. 2) Destination(s) including: a. Overnight stops. b. Communication check- in points. 3) Vehicle description(s) and unit number(s). 4) Planned routing - All routes taken to rig/camp sites shall follow the Aramco designated routing where signs are placed every 10 Km. 5) Actual departure time. 6) Expected arrival time at destination(s). 7) Expected return time to point of origin if applicable. 8) Communications contact information for destinations (if applicable) and mobile communications (if applicable). Current issue phone lists are an acceptable alternative for both Travel Manager and person traveling. 9) Signature(s) for sign in/out (for land travel). 10) Any check-in required in Section Travel Check- in.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued Note: Crew changes between remote operations worksites such as drilling rigs or seismic operations and remote crew camp facilities specified for that worksite are not required to record a travel log. D. Travel Check-In The driver must contact the Travel Controller under any of the following circumstances: 1) If there is a change in expected arrival time at destination exceeding 2 hours of original estimate. 2) If there is a change in planned route. 3) If there is a change in passenger list. 4) If there is a change in composition of convoy. 5) If possible, Prior to leaving and after returning to high traffic paved highways that go to built-up industrial areas or manned plant facilities. Note: There are abandoned Aramco infield paved roads and government paved roads which are not considered high traffic roads. 6) Prior to traveling off-road into the open desert. 7) If traveling off-highway for a period of four hours. 8) Upon arrival at destination and also check-in with the destination Travel Controller. Note: If the driver has not checked-in within 2 hours of expected check-in time, the Travel Controller shall initiate the Search and Rescue Primary Response Plan. E. Air or Sea Travel For air or sea travel, the aircraft or vessel shall comply with the applicable international and local regulations for procedures, supplies and equipment necessary for remote area travel. F. Remote Night Travel All night travel shall be discouraged. Night travel to or from or in an area that is defined as remote should not commence after dark or before light, with the exception to the following: 1) Material supply trucks or vehicles controlled by SA transportation department where the operation complies with SA transportation Procedures. 2) Crew changes between remote operations worksites, such as drilling rigs, requiring continuous operations and remote crew camp facilities specified for that worksite. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued G. Remote Travel Vehicle Requirements 1) Vehicles must have current Saudi Government Motor Vehicles Periodic Inspection sticker and SA vehicles must have valid inspection and PM services sticker. 2) Light vehicles are to be equipped with two spare tires. 3) Four wheel drive vehicles are required when vehicles leave graded skid roads for travel in open desert, trails and tracks. H. Remote Travel Basic Emergency Supplies/Equipment: 1) Accurate compass of reasonable quality. 2) Accurate area maps with North marked clearly at top. 3) Water for 3 days (15 liters per person). 4) First Aid kit. 5) Shovel, road reflectors, flashlight. 6) Matches or lighter and charcoal lighter fluids. 7) Blanket. 8) Personal medications. 9) Communications Equipment. 10) PPE. 11) Spare Wheel. 12) Vehicle Jack. I.

Off-Road Basic Emergency Supplies/Equipment In addition to the equipment listed in section HSERM / A / A-10 / JM / paragraph G, vehicles driving off road require the following: 1) Food rations for 3 days per person. 2) GPS Unit. 3) Additional fuel and vehicle fluids.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued 4) Tire pump and pressure gauge. 5) Spare fan belt(s). 6) Appropriately equipped tool kit. 7) Winch or tow cable.

8) Traction grates. J. Communications 1) All Companies shall provide employees with the necessary means of communication to check-in as required in the travel plan prepared for remote travel. 2) Vehicles traveling off road must have communications equipment that shall allow for continuous contact capability for all locations traveled to. K. Training 1) D&WO personnel shall receive adequate initial and refresher training (for personnel undertaking remote area travel) as referenced in G.I.6.025 section 5 (Control of Remote Area Travel), D&WO SMS Element No.4 (Competency and Training) and HSERM / A / A-5 / C&T. 2) Regular Driving: All selected employees, depending on positions shall be registered to Attend and pass the SA Driving Courses as per G.I.6.030. 3) All SA drivers shall participate in the Driver Improvement Program (DIP). 4) Off highway/Off Road travel personnel shall receive training to cover the following: a. Training as highlighted in the D&WO SMS element No.4 Competency and Training and HSERM / A / A-5 / C&T. 5) Off-highway Travel Personnel shall receive training to cover the following: a. Emergency procedures to follow when lost or stranded. b. Map orientation and navigation by compass (all) and GPS (if applicable). c. Off highway driving skills. d. Mobile communications equipment (if applicable). e. Basic first aid training. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued 6) Off-Road Travel Personnel driving off -road shall receive training covering the following: a. Desert survival skills. b. Off road driver skills. c. Mobile communications equipment. d. GPS tracking equipment. L. Remote Travel Performance Indicators The contractors shall maintain records of the following: 1) Section Travel Logs. 2) The number of travel plans where non-compliances were identified and description of corrective actions taken. 3) The number of times needed to phone a location to discover the whereabouts of a driver.

6. Search and Rescue (SAR) Each D&WO department and each contractor shall have in place a primary SAR Response plan that shall address initial search operations contained in this section. A. Primary Response Plan 1) The Travel Manager shall initiate the following within the prescribed time limits if check-in is overdue: a. Telephone Search (Maximum 2 hours overdue). 2) The Travel Controller shall call the following: a. Contact driver if equipped with communications equipment. b. Destination(s) contacts. c. Last check-in point (if applicable). d. Relevant police, hospitals, facilities along planned route. e. Any other possible contacts, including family/friends, who may know the overdue person. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued 3) Notification (maximum 4-6 hours overdue) The Travel Manager shall notify designated Company and Aramco supervision that an overdue person is missing. Supervisors shall then notify relevant Contractor and Aramco management representatives who shall initiate the Primary SAR ground search operations. Note: SA management may request Search aircraft if the situation warrants such action, as per G.I.6.025 Section 6.1.1. B. Ground Search The initial ground search plan shall take into consideration the resources available at the time of implementation using the information contained in this section and, be coordinated by a Search Manager. 1) Search Area Initial search area shall be defined by establishing a Search Pattern Grid and assessing the following: a. Last known location (usually the start point for establishing a search area). b. Planned route information from Travel Log. c. Vehicle range of missing vehicle and search vehicles. 2) Prioritize Areas According to Degree of Risk to the Missing Person Depending on resources available, the search area grids may be prioritized using the following criteria particularly when planning an initial road search: a. Likelihood of missing person being found by passer-by or finding help from local populated areas. b. Likelihood of person remaining lost or stranded if searchers are not sent to this area. c. Type of terrain in search area. d. For all initial searches, both off-highway and off-road, it may be logical to first explore all roads and tracks in the designated search area. e. Off road searches would most often be conducted using a search pattern in conjunction with an initial road search and the planned off-road route given search priority.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued 3) Search Pattern A basic ground search pattern grid system can be applied to identify a search area when conducting both road and off road searches. The search radius and distance between check-in stops may vary according to search circumstances. Search vehicles should return to their base of operations after each search segment has been completed, unless the Search Manager has set other plans. a. Vehicle Requirements 1. All search vehicles should meet the requirements for the type of search being conducted and have communications equipment. 2. Vehicles without communications equipment must travel in convoy. b. Training 1. Search Manager Search and rescue planning and techniques for ground search. 2. Drivers Trained as per Section Training and Off Road travel requirements. C. Secondary Response Plan The SA Corporate plan is in place and shall be activated if necessary as per G.I. 6.025 Section 7.0.

7. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

8. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued Appendix No.1

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued Appendix No.2

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Continued Appendix No.3 D&WO Driving Policy 1. D&WO Drivers (Employees and Contractors) SA D&WO and Contractor employees are reminded that the Driving Policy applies to everyone who drives motor vehicles on or off-the job. The requirements for land based travel, including remote area travel are documented in the following: A. HSERM / A / A-10 / Journey Management B. D&WO SMS Element No.6 - Safe Operations C. G.I. 0006.025 - Control of Remote Area Travel and Search/Rescue Procedures D. G.I. 6.030 - Traffic and Vehicle Safety Employees and Contractors driving personal or company vehicles must follow both Saudi Arabian Government and SA driving regulations at all times.

2. When you plan driving to remote areas, in adverse weather or on poor road conditions, these basic rules apply: A. Harsh Weather Conditions: Heavy rain, sand storms and fog. Pull off the road and stop until conditions clear. If conditions are marginal then slow down. If visibility is poor switch on your lights to low beam, switch on fog lights if fitted and take extra care. Do not use your hazard warning lights unless you have broken down or are trying to warn other traffic of a serious hazard ahead. If it is wet do not accelerate or brake quickly as your vehicle may spin out of control. B. Rig Roads, Skid Roads, Unsealed or Poorly Maintained Roads: Take extra care, slow down and only drive on designated roads. The maximum speed on unpaved SA roads is 70 Km/h. However, keep in mind that many of these roads are not maintained on a regular basis, conditions can change dramatically, from good to bad, in a very short distance. C. Desert and Remote Area Driving: Use the Driving and Journey Management Procedure. Do not travel into the desert unless your vehicle is a four wheel drive, (4X4) and equipped with the necessary safety equipment. Make sure you are fully prepared for desert travel and you have been trained to do so safely. Ensure the Journey Management Log is completed in full with the travel controller in your division. D. Wildlife, Camels, Sheep and Cattle: Switch on your hazard warning lights, slow down to walking speed, stop if necessary and exercise extreme care. Animals can make sudden erratic movements without any apparent reason which could cause you or others to have a serious accident. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-10 / JM / Appendix No.3 / Continued E. Night Travel: D&WO does NOT permit driving at night except in extreme emergencies. These include, but are not limited to: well control situations or potential loss of human life. The Manager’s approval is required prior to undertaking any night driving. When driving your personal car, drive within the limits of your lights, drive at a slower speed and leave adequate room to take evasive action if needed. Camels have been known to stray onto unfenced roads at night, they are very difficult to see and collisions involving fatalities have been frequent in the past. Take extra care on unlit roads.

3. It is our vision to have zero accidents, injuries or fatalities and to minimize driving violations both at work and home. We can only achieve this with your help by following these simple safety rules. Note: Your safety, the safety of your family and others around you is within your control. Your driving behavior and proactive precautions will allow you to arrive at your next destination safe and sound.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-11

Working with Service Companies

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-11 / Working with Service Companies This procedure is applicable to all SA Drilling and Workover facilities, drilling contractor and service companies.

1. Upon arriving to location, the service company’s representative should report directly to the Company office. They will be re-directed to the appropriate place for safety orientation and assignment of accommodations. The safety orientation shall include Personal Protective Equipment (PPE) requirements, cell phone policy, muster station identification, smoking policy, etc. The requirements as defined in HSERM / A / A-20 / TPEI and HSERM / A / A-12 / SWAP shall be followed.

2. A combined pre-job safety meeting shall be conducted with all service and rig personnel in the primary work environment. This meeting shall include discussions of responsibilities, hand signals or other means of communication, potential pinch points, and hazardous chemicals/materials to be used. 3. A “safe distance” area should be cordoned off to indicate potentially high danger zones such as pressurized lines, danger from overhead falling objects, opened cellar grating, etc.

4. A joint operational procedural meeting shall be conducted with all service companies concerned to review the task at hand and to coordinate their combined efforts. This should be conducted immediately prior to the job.

5. Special operations requiring the use of BOP equipment must conform to design and testing procedures in “Section J: Equipment Requirements, SAWCM”. This includes coil tubing, snubbing and electric line operations. 6. All 3rd Party equipment shall be installed under the drilling contractors Permit to Work (PTW) System.

7. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

8. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-12

Safe Work Authorization Procedure

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / Safe Work Authorization Procedure (SWAP) 1. Purpose The purpose of the Safe Work Authorization Procedure (SWAP) is to define a formal safe system of control for SAR rig activities which are potentially hazardous. This procedure establishes minimum requirements and responsibilities for issuing/receiving Safe Work Authorizations, and for outlining the competencies required for those responsible for implementing the system. When issued, the SWAP serves as a written record of conditions and requirements agreed upon by the issuer and receiver. They list minimum safety precautions to be taken and hazards which must be controlled.

2. Scope A. The SWAP is applicable to Saudi Aramco drilling rigs (SAR) and all contractor rigs not using an approved Permit to Work (PTW) procedure as defined in HSERM / A / A-12 / SWAP / paragraph No.2.B below. B. Drilling Contractors shall be permitted to use their own PTW procedure provided: 1) The contractor PTW procedure has been reviewed by the Drilling Operational Excellence & Compliance Division (DOE&CD), Division Head or his designate, and found to comply with the requirements of G.I.2.100 and verified in writing prior to work commencement. 2) The contractor PTW system shall cover the rig activities identified in their PTW process. 3) The contractor personnel and the D&WO Liaisonman follow their responsibilities (as defined in HSERM / A / A-12 / SWAP / paragraph No.5A / Responsibilities).

3. Definitions A. Person In Charge (PIC) 1) SAR Rigs The PIC is the Toolpusher or, in his temporary absence, his designate. On Mobile Offshore Drilling Units (MODU), depending on the type of operations, the PIC is the Offshore Installation Manager (OIM) / Barge Master (or designate). B. SWAP Issuers The SAR rig supervisors who have received training (as defined in HSERM / A / A-12 / SWAP / paragraph No.10 / Training), and are certified by their employer to issue the SWAP form are designated issuers.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued C. SWAP Receivers The craft supervisors, craftsmen, or others who have received training (as defined in HSERM / A / A12 / SWAP / paragraph No.10 / Training), and are certified by their employer to sign the SWAP form are the designated receivers. D. Hot Work Any Work outside the designated “welding shop” that develops sparks, flames or heat sufficient to cause ignition. This shall apply to the use of spark or flame producing tools and equipment. E. Cold Work Work that will not produce sufficient energy to ignite flammable a atmosphere or material. F. Confined Space The entry of personnel into any space or structure (tank, vessel, vault, excavation when 4 feet or deeper, etc.) not normally intended for human occupancy, in which entry, movement within or exit is restricted. 4. Function of the SWAP A. The SWAP is intended to be applied to those jobs which represent a potential hazard to company operations, personnel or equipment. Extremely low risk jobs, as determined by Drilling Operations, may be exempt from the SWAP. Included could be carpentry (without power tools), inspections in nonhazardous areas, cleaning or lubricating non-hydrocarbon equipment, and certain classes of non-flash photography where Drilling Operations determine these jobs can be conducted safely without a SWAP. 1) Examples of Work that may be performed without a SWAP are: a. Routine drilling operations. b. Routine materials handling. c. Routine Helideck operations. d. Routine crane operations. e. Routine Cold Work inside workshops and within accommodation units. 2) In such cases, Drilling Operations must maintain adequate control in the workplace. On a practical level, the SWAP shall: a. Limit the scope of the task. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued b. Ensure supervisors and crew members follow procedures, are informed of and heed necessary safety precautions and recognize the need for and use required safety equipment. c. Encourage pre-task planning, minimizing risk to personnel and equipment, and reduce the inconvenience and interference to other operations. d. Increase the awareness of personnel responsible for the overall safety of the unit by providing documented details of potentially hazardous activities in progress. e. Provide a continuous control and record of ongoing work activities, detailing the nature of the work, required precautions/safeguards, and the responsible competent person in charge. f.

Ensure that upon completion of work, equipment and site are left in a safe condition.

g. Provide formal notification of completion of all work to the PIC. B. The SWAP shall include, but is not limited to the following operations: 1) Any Hot work involving welding, burning, heating, and any other spark producing activity or potential ignition source outside the designated “welding shop”. 2) Work requiring entry in any tank or confined space. 3) Work where there is a danger of falling into the sea or any working over water activity. 4) Work involving the use of unapproved electrical equipment (i.e.; camera, flashguns, radios, cell telephones etc.). 5) Work on any pressurized system where there is a possibility of pressure being released. 6) Work on electrical or mechanical equipment requiring energy isolation to ensure the safety of personnel. Any Lock-Out/Tag-Out Energy Isolation (LOTO) conducted on SAR Rigs shall follow the requirements of HSERM / A / A-12 / SWAP / Appendix No.1 / SWAP Form - Example. 7) Work on electrical equipment in hazardous areas to eliminate sources of ignition. 8) Work carried out below sea level (i.e.; columns, pontoons, tanks, etc.) that might affect the station keeping, structural integrity, stability of the Rig or certification. 9) Work that might affect or disable the Rig’s safety systems (i.e.; firefighting, gas detection, watertight doors etc.). 10) Man riding operations, this shall include the use of a man-ridding air hoist, work baskets whether suspended by a crane or air hoist. 11) Personnel transfer to or from MODU to supply vessel.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued 12) Work involving perforating or acidizing operations, radioactive materials, explosives or other dangerous substances. 13) Work on/or near moving equipment where safety barriers and guards have to be bypassed. 14) Work involving heavy lifts with material handling equipment (i.e.; cranes, BOP hoists etc.) that are near maximum safe working loads (85%). 15) Any crane lift that is determined to be a “Critical Lift” (as defined in G.I. 7.028, Section 5.0). 16) Opening the Master Dump Valve. 17) Flaring and/or flow testing of wells. 18) Maintenance of the draw-works, pumps, rotary table, top drive systems, engines, generators, water treatment plant, life boat, all Derrick sections, deep water wells or tanks. 19) Pressure testing BOP’s. 20) Cementing operations. 21) Removing well heads. 22) Installation and testing of all Contractor equipment. 23) Any maintenance on the accumulator unit. 24) Any raising or lowering of the mast. 25) Slipping and cutting drill line. 26) Any Rig up or Rig down by a Workover Rig over an existing wellhead (as defined in SA OIM 19.016). 27) Any repair to the jacking or ballasting system of an offshore rig (MODU). 28) Any work to be performed or equipment to be moved near or around overhead power lines. Note: This list is not definitive, if in doubt, use the SWAP. C. SWAP Form The SWAP form (refer to HSERM / A / A-12 / SWAP / Appendix No.1 / SWAP Form - Example) must be issued, as appropriate for specific work on a specific site. The SWAP form is for work defined in paragraph 4.B of this procedure.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued 5. Responsibilities A. Contractor Rigs 1) It shall be the responsibility of the Contractor Rig Line Management Staff to fully implement their approved PTW procedure. 2) It is the responsibility of the Aramco Liaisonman on a contractor rig, to ensure that contractor personnel comply with their PTW procedure. He shall do this by reviewing the filed PTW forms at least once a month and periodically monitor work being conducted under the PTW. 3) The Aramco Liaisonman must be notified by the contractor of all permits before they are issued. He shall “initial” all permits beside the signature of the contractor “permit issuer” to acknowledge notification of the work. 4) The SA Liaisonman shall be responsible for ensuring safe operations for any “Hot Work” within 10 feet of the wellhead. He shall: a. Review the contractor PTW before work starts. b. Determine if the mitigations and safety precautions specified for this work are adequate for safe operations. c. Recommend additional mitigations if he determines that the safety precautions in HSERM / A / A-12 / SWAP / paragraph No.4.b are not adequate. d. When HSERM / A / A-12 / SWAP / paragraph No.4.a, b and c are completed to his satisfaction, he shall initial the contractor PTW form beside the signature of the issuer. 5) He has the responsibility to stop work and advise the issuer of his action any time he determines the safety of the job or any unsafe conditions in the area do not meet the conditions on the contractor work permit. He shall advise the issuer to take action to correct deficiencies before allowing the job to resume. B. Saudi Aramco (SAR) Rigs 1) The PIC (Offshore Installation Manager (OIM) / Barge Master (or designate)) Responsible for the overall control of the SWAP and shall ensure: a. All work requiring a SWAP is identified. b. SWAP contains a clear description of the work to be done, the location, start time and duration. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued c. SWAP activities that may interact or affect one another are clearly and effectively crossreferenced and managed. d. All other work, which would create a hazard if undertaken at the same time, is made safe and suspended. e. All persons involved in the preparation of SWAP’s and responsible for the supervision and performance of the job are identified. f.

SWAP’s do not extend beyond 12 hours or end of tour, whichever occurs first, and any work continuing after a tour change is not resumed until a new SWAP is issued. Exception: If “long term isolation” is required that extends past the time limits (12 hours or end of tour), the long term isolation shall be performed as per HSERM / A / A-19 / LOTO.

g. The following activities shall only be issued by the PIC: 1. Work on safety systems (i.e.; Fire / Gas detection, lifesaving etc.). 2. Hot work in hazardous location areas. 3. Entry into all confined space. 4. Work over water. 2) SWAP Issuer Responsible for the work area in which the task is to be performed. He shall ensure that: a. All hazards associated with the proposed job have been identified. b. All Safety measures required for the job have been identified in a JSA. c. Pre-Job Safety meeting to be held prior to each SWAP task and JSA to be reviewed. d. The work site is examined; the safety measures are in place and remain in effect for the duration of the job. I.e. barricades, PPE and gas testing. e. The persons conducting the work are aware of the precautions to be taken, the safety equipment to be used and the procedures to be applied during the period of the SWAP. f. The work site is inspected prior to work commencing, at any time work is suspended or restarted and on completion of the job to verify that it is left in a safe condition.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued g. Before SWAP cancellation or closeout, ensure that all precautions or isolations required to be withdrawn are completed, and any associated systems are returned to normal operating condition. 3) SWAP Receiver The senior person assigned to the task. He shall ensure: a. The operation of the SWAP system and requirements of the SWAP are understood by all personnel associated with the identified task and the applicable procedures are followed. b. Any additional instruction or training is given to the work group to ensure understanding of the SWAP and the specific precautions required for the work. c. The conditions and precautions specified in the SWAP issued for the job are fully understood and adhered to. d. When a job has been completed or suspended, the SWAP Issuer is informed and the SWAP document returned and/or signed off and the worksite is made safe.

6. Issuance and Approval of SWAP form A. The receiver requests SWAP from the Issuer. B. The issuer shall issue the SWAP form after he (or his designated representative) has visited the site, performed the appropriate gas tests, listed applicable precautions and restrictions and reviewed aspects of the job with the receiver. The issuer's and receiver's signatures must be on the completed form. C. Before issuing the SWAP, all necessary actions to approve the proposed work and/or possible configuration changes must be completed. The issuer must confirm that the receiver's certificate is valid and approved for the type of work to be done. D. The issuer must obtain the approval and signature of other operations supervisors (Issuers) whose operations will be affected, before issuing a permit. E. During an Emergency the issuer may permit work without a SWAP. However, he should issue a SWAP as soon as he can. This section is only applicable to the actions of workers during the implementation of the rig Emergency Response Plan (ERP). F. The issuer and receiver are jointly responsible for the safety of people and equipment in the area. The issuer is responsible for specifying precautions so the work can be done without incident. The receiver is responsible for performing the work in accordance with the conditions and requirements agreed upon with the issuer and written on the SWAP. G. The SWAP is for specific work on a specific site. Transfer from one craft to a different craft is not permitted. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued H. The receiver of a SWAP must keep a copy in his possession or within view of the job site for the duration of the job so that it may be available for inspection and cancellation if necessary. If he must leave the job site, he shall, if the issuer concurs, relinquish supervisory control to another certified receiver, until he returns. The alternate receiver’s name and badge number must be written on the SWAP by the issuer. 7. Right to Stop Work and Cancel SWAP A. The Issuer May stop a job and withdraw a SWAP if he feels that safety of the job does not meet with conditions specified on the work authorization. 1) When work is stopped the Issuer must pick up the SWAP, write the reason for stopping the work, the time and other relevant information. 2) When conditions are safe again the issuer may issue a new SWAP. B. The Receiver Has the responsibility to stop work and advise the issuer of his action any time he feels the safety of the job or any unsafe conditions in the area do not meet the conditions on the SWAP. He and the issuer shall take action to correct deficiencies and resume the job. C. All Unnecessary Personnel Whose presence adversely affects the safety of the job must be removed and kept from the job site or work shall be stopped. 8. Closing SWAP Documents SWAP’s shall be closed by the signatures of both the issuer and the receiver. 9. Filing SWAP’s Upon completion of the work and after the SWAP is closed (as per paragraph 8), the 3 copies shall be filed together and retained on the rig for no less than 12 months. 10. Training and Certification A. Training SWAP courses are conducted by Planning and Technical Services/Training and Professional Development Unit. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued The purpose of the courses is to acquaint potential issuers/receivers/gas testers with the SWAP Process. B. Certification Upon successful completion of the SWAP course and any required pre-requisite course (Hazard Recognition, Gas Tester), the candidate shall be issued a certificate of achievement. C. Any person Issuing or Receiving a SWAP Persons issuing or receiving a SWAP must have in his possession a valid issuer or receiver certificate, as appropriate. D. The Department must maintain Records All departments within the scope of this document must maintain records of their SWAP issuer / receiver certified personnel. Certificates expire two years after the date of issue, accordingly issuers and receivers must be recertified every two years. 11. Periodic Reviews All departments within the scope of this document are required to review their own operations to ensure compliance with this procedure. 12. SWAP Form The SWAP form (HSERM / A / A-12 / SWAP / Appendix No.1 / SWAP Form - Example) is a numbered, triplicate “carbon copy” type document. A. White - Original to be kept at the site of the work being performed or in the custody of the receiver. B. Pink - Second copy to be displayed on the SAP control board while the SWAP is active. C. Yellow - Third copy to be retained by the issuer while the SWAP is active.

13. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A.

14. References: Refer to HSERM / A / A-2 / RM. In addition to this procedure, the Rig Operator shall have readily available the following: A. G.I.2.100 - Work Permit System. B. OIM 19.016 - Oil/Water Well Workover Activities Instruction. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued C. HSERM / A / A-19 / LOTO.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-12 / SWAP / Continued Appendix No.1

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-13

Monthly HSE Performance Monitoring (Score Card)

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-13 / Monthly HSE Performance Monitoring (MHPM) Score Card 1. Purpose The purpose of this procedure is to provide a means of identifying and quantifying KPI’s (Key Performance Indicators) as identified in the Drilling and Workover (D&WO) Annual HSE Plan. 2. Scope The scope of this procedure is applicable to Saudi Aramco Rigs (SAR) and all contractor rigs. 3. Responsibility A. Saudi Aramco (SA) Liaisonman/Foreman It is the responsibility of the SA Liaisonman/Foreman to: 1) Ensure that the report is completed as required. 2) Verify correctness of entered data and make corrections, if needed. 3) Forward to his Superintendent for validation. B. Superintendent It is the responsibility of the Superintendent to: 1) Review the form for correctness and make corrections, if needed. 2) Validate and sign the form. 3) Forward completed form to the Drilling Operational Excellence & Compliance Division (DOE&CD) on schedule, the third day of each month. C. DOE&CD Data entered in the Monthly Rig HSE Performance Scorecard shall be verified by DOE&CD during regular rig visits. 1) Documentation shall be examined and sampled against the input data. 2) Discrepancies, in data sampled, shall be recorded and corrected. 3) The SAR Liaisonman shall be made aware of all data discrepancies. 4) The SAR Superintendent shall be made aware of all data discrepancies.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-13 / MHPM / Continued 5) Contractor management shall be made aware of all data discrepancies. 6) Upload the HSE scorecard results into Rig Best system.

4. Definitions (Refer to HSERM / A / A-1 / DA&A) A. Days Without Lost Time Accident/Incident (LTA) This is the total number of days the rig has worked without an LTA. This figure should include the LTA free days brought forward from previous contracts. B. Man Hours This is the total number of hours worked (on tour) by the rig crew (50 personnel, each person works a 12 hour tour, 50 x 12 = 600) Work hours must include all leased labor who are under the direct supervision of the drilling/service contractor this includes catering crew. Agency labor performing the duties of regular crew must be included. Third party labor such as service companies (casing crews, Wire line crews etc.) are not considered agency labor and should not be included in the man hours (refer to IADC for guidance). C. Personnel on Board (POB) This is the total number of rig crew assigned to the rig, this includes lease labor under the direct supervision of the drilling contractor such as catering crew and all day visitors to the rig in that 24 hour period. D. A Lost Time Accident/Incident (LTI) A work-related personal injury or illness which prevents a person from conducting his/her assigned duties, in a restricted or unrestricted capacity, beyond the “tour” or watch during the incident occurred. A factor to be considered when classifying an injury or illness is the ability of the employee to evacuate the facility during an emergency. An LTI includes death or occupational injury or illness incurred by a work-related activity during regular on-tour or on-watch duty. Personal injuries incurred during crew boat/helicopter transport, crew change (to or from the rig), and during hours at the rig but off tour are not classified as LTIs. If an employee’s work-related injury or illness affects his ability to make their next scheduled “tour” of duty, it shall be classified as an LTI if: 1) In the judgment of the rig Medic, the employee, after examination cannot be issued a Full Duty release or a Restricted Duty Injury release and return to his next scheduled “tour”. Or

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-13 / MHPM / Continued 2) In the judgment of the doctor, the employee, after examination, cannot be issued a Full Duty release or a Restricted Duty Injury release and return to their next scheduled “tour”, except as outlined in the IADC ASP Guidelines. Provided the doctor issues a Full Duty release or Restricted Duty Injury release following examination, time delays due to transportation, or while awaiting examination results, shall not be used in classifying LTI’s. Full Duty release or Restricted Duty Injury release from a doctor before returning to work on his next regularly scheduled hitch, the personal injury shall not be classified a LTI. E. A Fatality (FAT) FAT is a work-related injury or illness that results in death. A FAT is a Recordable incident. 5. Procedure A. General Information 1) The report form is a Microsoft Excel spread sheet; (Refer to HSERM / A / A-13 / MHPM / Appendix No.1). a. Do not delete formulas. b. The layout of the form must not be altered. c. All data entered must be numerical. d. The completed report must be submitted to DOE&CD by the 2nd day of each month. 2) Completing the form a. D&WO SMS Element No.3 – Communications 1. Weekly Safety Meetings Enter the total number of weekly safety meetings conducted at the rig site that day. Comments required (topics discussed, who lead the meeting). 2. Pre-tour Meetings Enter the total number of pre-tour meetings conducted at the rig site that day. Comments required (topics discussed). b. D&WO SMS Element No.4 – Competency and Training 1. Employee Training Enter percentage (%) of rig employee training completed as per Training matrix. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-13 / MHPM / Continued c. D&WO SMS Element No.6 – Safe Operations 1. General Safety and H2S Orientation Meetings Enter the total number of personnel registered and received General Safety and H2S orientation that day. d. D&WO SMS Element No.8 – Emergency Preparedness 1. Pit Drills Enter the total number of pit drills conducted by the rig on that day. 2. Trip Drills Enter the total number of trip drills conducted by the rig on that day. 3. H2S Release Emergency Drill Enter the total number of H2S release emergency drills conducted, comments required (Monthly requirement). 4. H2S Rescue Drill Enter the total number of H2S rescue drills conducted, comments required (Weekly for each crew). 5. Fire Fighting Enter the total number of firefighting drills conducted by the rig on that day, comments required where applicable, start fire pumps as part of the drill. 6. Rescue Boat Drill Enter the total number of Rescue Boat drills conducted, comments required. 7. Abandon Ship Drill Enter the total number of Abandon Ship drills conducted, comments. e. D&WO SMS Element No.9 – Incident Reporting and Analysis 1. Aramco Safety/Operational Alerts Enter the total number of Aramco Safety/Operational Alerts received and reviewed. 2. Lost Time Injury/Illness Case (LTI) The total number of LTI that occur that day must be inserted, comments required. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-13 / MHPM / Continued 3. On-Job Fatality (FAT) All Fatalities that have occurred that day must be entered, comments required. f.

D&WO SMS Element No.11 – Continuous Improvement 1. Days Without LTI This is the total number of days the rig has worked without an LTI insert the total number of days under the month date, this shall be a running total.

g. Environmental Protection 1. Oil Spills All oil spills that have occurred that day must be entered, comments required. h. General 1. Man Hours This is the total number of hours worked (on tour) by the rig crew, insert the total number of rig crew hours for that day. 2. POB This is the total number of persons aboard the rig. Insert the rig crew POB for that day. 6. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A. 7. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-13 / MHPM / Continued Appendix No.1

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-14

Job Safety Analysis

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-14 / Job Safety Analysis (JSA) 1. Purpose The purpose of this Drilling and Workover (D&WO) Job Safety Analysis (JSA) procedure is to: A. Provide a means of identifying workplace hazards prior to performing work. B. Identify the control measures necessary to reduce the risks associated with those hazards to a level which is As Low As Reasonably Practicable (ALARP). C. Communicate the hazards and the control strategies to the workers involved in or affected by the work

2. Scope The scope of this procedure is applicable to Saudi Aramco Rigs (SAR). 3. Responsibilities It is the responsibility of the Person In Charge (PIC) to ensure that the Job Safety Analysis process (JSA) is utilized in the safe planning of work activities. 4. Definitions A. Risk - probability that during a period of activity a hazard will result in an incident/accident with definable consequences. B. Hazard - An object, condition or behavior with the potential to interrupt or interfere with the orderly progress of an activity. The source may be from substances, machinery, stored energy, physical methods of work or organization of the work itself. C. Risk Reduction Measure - any provision (behavioral, hardware or procedural) that eliminates or reduces the hazard. D. Job Safety Analysis (JSA) - A JSA is a process for identifying hazards or potential hazards that can be anticipated during the performance of a specific job, and the control strategies required to make the work safe. The threshold of the control measures is ALARP. The JSA process is focused at the specific supervisor and/or crew level. The JSA must be completed prior to the start of the job. Reassessment must also be completed when a significant change of scope occurs or if conflicting work is being done. The JSA involves both the site supervision and employees involved in the work. Aramco Liaisonman who direct the work being carried out by service company workers have to ensure the service company have and use a comparable process (JSA) or manage the work with this procedure.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-14 / JSA / Continued E. Hazard Control Strategies 1) Engineering Controls - Engineering control of hazards deals with the elimination or isolation of the hazard from the worker, and physically limits the workers exposure to the hazard. Engineering controls are the preferred method of controlling hazards. 2) Administrative Controls - Administrative controls deal with the directing of people and include policy, procedure and training. Administrative controls reduce or limit the amount of exposure an employee has to a specific hazard. 3) Personal Protective Equipment (PPE) - PPE is the final line of defense against hazards in the workplace. It is implemented only after other reasonably practicable means of eliminating a hazard have been attempted. 5. Procedure A. General Information JSA’s shall be used to ensure that all hazards relative to the site’s work activities have been identified and controlled. It shall be noted that extreme hazards encountered while performing emergency response duties during events such as well blowout, explosion, vessel collision, structural failure, facility fire etc., do not require independent JSA’s since those subjects are accounted for within the Safety Management System (Emergency Response Manual, Well Control Manual etc.). Extreme hazards such as those listed need only to be incorporated into JSA’s if they pose a real threat simultaneous to other work activities. Some examples of this situation would be the potential for well control problems while running tubulars or the possibility of structural failure while performing rig modifications. The JSA must be reviewed with all workers involved in or affected by this job. B. Jobs That Require a JSA 1) First time jobs or where people have little experience on the job. 2) Jobs that are not done very often. 3) Jobs that have high incident rates or safety concerns. 4) If conditions change while performing the job that create new hazards. 5) If there are a number of jobs happening close to each other. 6) Whenever a permit to work is required. 7) When there is no written procedure in place. C. For the assessment process to be effective, it must be systematic and consider all aspects of a particular activity. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-14 / JSA / Continued The assessment process shall: 1) Consider human work time risk factors relating to sleep deprivation and fatigue. Address corrective actions that result from sleep deprivation/fatigue caused by work periods beyond the normal 12 hour per day tour; long crew change travel without a reasonable sleep period prior to starting work; extended work periods beyond normal 12 hour per day multiple days in a row; and environmental factors (extreme heat/cold). 2) Address what actually happens in the workplace or during the work activity. 3) Consider non-routine activities such as repair work, well testing, diving operations etc. 4) Address the possibility of changed circumstances during the activity, for example tour change or temporary stoppage of the job. 5) Give careful consideration to what circumstances or hazards have changed since the last time the activity was carried out. 6) Consider human factors. Poor communication, inadequate leadership, lack of application etc. are examples of how behavioral issues can influence the successful outcome of an activity. Suitable control measures should be developed and applied to mitigate these circumstances also. D. How to Conduct a JSA 1) Determine whether a formal JSA is needed (Refer to HSERM / A / A-14 / JSA / paragraph No.5.B). 2) Review any existing documents or JSA’s already developed for this job. The use of a generic JSA as a sole source process is prohibited as per Section 5.F of this procedure. 3) Decide who the JSA team members shall be. The JSA must be led by the supervisor or someone competent in the JSA process. 4) Break the job down into basic steps. A balance needs to be struck between making the steps too general, resulting in missing specific steps and their associated hazards, and too detailed, leading to excessive steps. It is recommended that each job should be limited to a maximum of ten steps. If more than ten steps are required, it is usually better to break the job into multiple jobs, for developing JSA’s. Each step should begin with an action word (e.g. open, remove, check) and end with a subject (e.g. pump, hoist, valve). This part of the preparation can be done by watching the worker do the job) Do not include statements like “conduct safety meeting” in the basic steps section of the JSA. That should be in the Preventive Measures section of the JSA. 5) Identify who shall do that step then record that worker on the JSA. 6) Identify the potential hazards for each step. To assist in identifying hazards, questions such as the following can be asked: a. Can any body part get caught in or between objects? SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-14 / JSA / Continued b. Do tools, machines, or equipment present any hazards? c. Is equipment fit for purpose? d. Could equipment operating limits be exceeded? e. Can the worker make harmful contact with objects? f.

Can the worker slip, trip or fall?

g. Can the worker suffer strain from lifting, pushing, or pulling? h. Is the worker exposed to extreme temperatures? i.

Is excessive noise or vibration a problem?

7) Recommend ways to control the hazards (safety measures). 8) Identify who is responsible for the individual control measures and record on the JSA. This person must be competent to do what he is assigned to do. e.g.; if you require control measures such as “gas testing” or inspect “rigging hardware”, the assigned person must be competent in this skill set. 9) Complete the JSA form. 10) Review the JSA with the workers as per Section 5.4 of this procedure. 11) Perform the job. 12) Review and update the formal JSA. E. Communication Before commencing the work activity, all personnel involved (directly or indirectly) must be informed of the results of the assessment and fully understand their roles and responsibilities. This communication may be accomplished via a Pre-job Safety Meeting (PJSM) or Pre-Tour Meeting (PTM). If the review takes place more than twelve hours prior to the work activity actually commencing, the JSA must again be reviewed immediately prior to starting the task to ensure that the conditions have not changed or a re-assignment is called for. Similarly if the JSA for a task was completed by the Off-going crew then the crew, assuming responsibility for completion of that task must review and update the JSA for their continued use.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-14 / JSA / Continued F. Generic JSA To simplify the JSA process and reduce the requirement to re-write the same information every time a repetitive task is undertaken, a catalogue of Generic JSA’s may be constructed. The information detailed on these Generic JSA’s may then be used to form the foundation of Task-Specific JSA’s which are completed for particular work activities. Note: If Generic JSA’s are used to manage the risk of work activities they shall always be reviewed and updated by the crew performing the task and shall never be considered to be adequate as standalone documents without review and revision as necessary. G. Filing JSA Documents for Review 1) Generic JSA’s shall be maintained on the rig in an electronic format. Adequate space shall be allowed between successive steps, hazards and mitigation to allow the user to add to the document when preparing the job specific JSA. 2) Job specific JSA’s shall be filed on the rig for a 6 month period to facilitate the audit process. It is recommended that the JSA and PJSM document that is linked to the work gets filed together.

6. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A. 7. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-15

Safety Inspection and Reporting Procedure

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / Safety Inspection and Reporting Procedure (SI&RP) 1. Purpose D&WO Safety Inspection Process is a monitoring function. It is conducted on all rigs to find and report existing and potential hazards in the on-the-job area. Its objective is to help fulfill Corporate and Departmental policy of providing and maintaining a safe and healthy work environment for SA and Contractor employees alike. D&WO uses both the Continuous and Planned Specific Interval types of inspections. Comprehensive check lists are used so that important items/areas are not overlooked. The inspection program shall incorporate auditing of elements of the D&WO Safety Management System (SMS). These audits check the implementation and compliance of various elements in the SMS programs of both D&WO and the contractor.

2. Scope The scope of this procedure is applicable to Saudi Aramco Drilling Rigs (SAR) and all Contractor Rigs. This procedure does not supersede corporate requirements. Where this process conflicts with corporate requirements, corporate requirements shall apply. 3. Planned Specific Interval Inspection(s) A. Annual General Inspections for Saudi Aramco owned rigs. B. Safety Inspections for all rigs. C. Environmental Health Inspections for all rigs. D. ATTEST SMS audits of all rigs. E. SMS Compliance audits of all drilling contractors (Contractor compliance to their Corporate SMS, not D&WO SMS) F. SAR Quarterly Safety Inspections (QSI), SAR Rigs Only. G. MODU 3-Month Compliance Inspection (3-MCI) (Refer to DOE&CD website / on-line forms). H. Onshore 3-MCI (Refer to DOE&CD website / on-line forms). I.

MODU Bi-Annual Safety Inspection (Refer to DOE&CD website / on-line forms).

J. Onshore Bi-Annual Safety Inspection (Refer to DOE&CD website / on-line forms). K. Intermittent Inspections on an as-needed basis for all rigs which includes but is not limited to: 1) Hand Tools, Power Tools and Equipment Pre-Use Inspections

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued Hand tools are those tools for which the hand provides the motive force, e.g. shovels, hammers, wrenches etc. Power tools are those tools which have an integral motive force. For the purpose of this section, equipment refers to all other items used by a worker to assist him in the performance of his job, including PPE, e.g., fall protection harness, webbing slings, ladders etc. A worker must perform a pre-use visual inspection of any hand tool, power tool or equipment, when using it for the first time during his tour to ensure it is free from defect or deficiency and is properly equipped with any guard or safety accessory required by Aramco standards. This is an undocumented inspection. 2) Pre-Spud Inspection After moving a rig onto a new location but prior to spud, the PIC (person in charge) shall ensure that the worksite and rig equipment is inspected as per the Pre-Spud Checklist. 3) Rig / Location Release Inspection When vacating a well site, the PIC shall ensure that the site is inspected as per the Rig/Location Release Checklist. 4) PIC Safety Inspection This inspection is performed once a week by the foreman on a SAR rig and by the Aramco Liaisonman or Contractor PIC on a contractor rig. He shall take this opportunity to verify the rig’s compliance with the Inspection Policy by examining the documentation for the previous weeks required inspections and comparing it to the actual condition of the worksite. The PIC shall sign and date the original inspection document after he has completed his inspection, adding any comments from his observations. This shall be the only documentation required to verify his weekly inspection responsibilities. This is not intended to be a detailed site inspection by the PIC. It is an opportunity to verify and enhance the efforts of the workers responsible for all other inspections. 5) Daily Mobile Equipment Pre-Use Inspection This shall be performed by the operator of any mobile equipment, e.g., forklift, elevating work platform, motor vehicle etc. This documented inspection shall conform to the OEM (Original Equipment Manufacturer) recommended pre-use inspection process. The inspection report or log shall be available for review. 6) Daily Crane Pre-Use Inspection Pre-operational inspections shall be performed by the crane operator daily, prior to use, during tour changes, or whenever operators are changed, using the appropriate daily inspection checklist (SA 9466 Crane Operators Checklist). This inspection report shall be available for review. 7) Derrick Mast Inspection The driller shall ensure that the derrick is inspected once a week as per D&WO / SWIM-001 / Section No.4 / D&M. He may delegate the inspection to the derrick man but retains responsibility for its completion. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued 8) Monthly DROPS (Zones) Inspection The Rig Operator PIC shall ensure that monthly DROPS inspections are completed in the 5 derrick zones as outlined in HSERM / A / A-7 / DP. These inspections shall be documented 9) Drillers Pre-Tour Inspection This inspection shall be conducted by the oncoming driller at the start of his tour. It shall be done in conjunction with the turnover at tour change. The inspection shall be performed as per HSERM / A / A-24 / Pre-Tour Checklist/Driller Handover and be documented on the attached checklist. 10) Continuous Inspections The Continuous Inspection portion of the Inspection Program is covered by Liaisonman/Foreman inspecting the work area; by contractor supervisory personnel (as applicable) and by employees at all time. 11) Travelling blocks Testing and setting procedures are to be put in place by the Rig Contractor and posted clearly on the drill floor. The limiting devices testing and setting procedures are to be performed by the Driller at the beginning of each tour and immediately after drill line slip and cut operations. These checks are to be reported in the IADC tour book for each 12 hours (Refer to HSERM / C / C-7 / TB). 12) Other Inspections Additional inspections by Environmental Health shall be scheduled by the Manager for each of the SA owned facilities on an annual basis. 13) Pre-Commencement Inspection A comprehensive pre-commencement inspection shall be conducted on all rigs by a combined D&WO operations and safety team prior to acceptance of any rig under a new contract, rigs moving from one department to another and following any offshore rig shipyard visit. All critical deficiencies are to be rectified before drilling into the first potential hydrocarbon zone (Refer to D&WO / DOE&CD / PCP-003).

4. Safety Inspection and Reporting (SIR) The SIR process provides a formal inspection system to identify deficiencies in; D&WO Contractor facilities, equipment, work areas and documentation. Its objective is to meet corporate and departmental policies for providing and maintaining a safe and healthy work environment for SA and Contractor employees alike.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued A. Responsibilities 1) Drilling Operational Excellence & Compliance Division (DOE&CD) - Safety Compliance Unit (SCU) Responsible for the verification of all submitted contractor safety inspection reports. 2) DOE&CD - SCU - Lead Field Compliance Coordinator a. Shall develop an annual Bi-Annual Safety Inspection schedule to visit and audit each rig/asset under his area of responsibility twice per year with 6 monthly intervals (Bi-Annual Safety Inspection). b. Ensure that a detailed Bi-Annual Safety Inspection (MODU / Onshore) for each rig under his area of responsibility is completed twice per year (as far as is reasonably practicable) as per the developed schedule (Refer to DOE&CD website / on-line forms). c. Ensure that when completing the Bi-Annual Safety Inspection the DOE&CD - SCU - Safety Inspection Check List is completed in its entirety and submitted to the DOE&CD - SCU Administrator. d. Ensure that a copy of the Bi-Annual Safety Inspection closeout meeting attendance sheet is submitted to the DOE&CD - SCU Administrator on the completion of each inspection. e. Ensure that a copy of the Bi-Annual Safety Inspection deficiency action list is submitted to the DOE&CD - SCU Administrator on the completion of each inspection. f.

Ensure that a copy of the emergency drill report, conducted as part of the Bi-Annual Safety Inspection, is submitted to the DOE&CD - SCU Administrator on the completion of each inspection.

g. Ensure that a copy of the “Comprehensive Environmental Health Assessment” (CEHA) checklist is submitted to the DOE&CD - SCU Administrator on the completion of each inspection. h. Ensure that a copy of the “Environmental Performance Assessment” (EPA) checklist is submitted to the DOE&CD - SCU Administrator on the completion of each inspection. i.

Ensure that all “MODU / Onshore Quarterly Safety Inspection (3-MCI) checklists” submitted by the D&WO contractor are reviewed, and any identified issue, that shall immediately effect the safe operation of the rig, are addressed with the relevant D&WO Superintendent immediately (Refer to: D&WO / DOE&CD website / on-line forms for current forms).

j.

Apply sound risk management techniques when mitigating risk to SA operations.

k. Ensure that all potentially significant Safety issues are identified on the D&WO Morning Report. l.

Perform a RCA of all repeat / reoccurring inspection / audit deficiencies.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued 3) DOE&CD - SCU - Field Compliance Coordinator As part of the Bi-Annual Safety Inspection, the DOE&CD - SCU Field Compliance Coordinator shall: a. Complete a detailed Bi-Annual Safety Inspection, for each rig under his area of responsibility, twice per year as far as is reasonably practicable, as per the developed schedule. b. As part of the Bi-Annual Safety Inspection, he shall ensure that the Bi-Annual Safety Inspection Check List is completed in its entirety and submitted to the DOE&CD - SCU Lead Field Compliance Coordinator with a copy to the DOE&CD - SCU Administrator on the completion of each inspection. c. He shall ensure that an opening meeting is conducted with the D&WO Contractor PIC and SA Liaisonman as a minimum, before the start of the inspection. d. He shall conduct a closeout meeting with the D&WO Contractor PIC and SA Liaisonman as a minimum, before leaving the rig. e. He shall submit a DRAFT copy of the final deficiency action list to the drilling contractor PIC and the SA Liaisonman before leaving the rig. f.

As part of the Bi-Annual Safety Inspection, he shall ensure that a copy of the completed Bi-Annual Safety Inspection closeout meeting attendance sheet is submitted to the DOE&CD - SCU Lead Field Compliance Coordinator with a copy to the DOE&CD - SCU Administrator on the completion of each Bi-Annual Safety Inspection.

g. As part of the Bi-Annual Safety Inspection, he shall ensure that a copy of the completed Bi-Annual Safety Inspection deficiency action list is submitted to the DOE&CD - SCU Lead Field Compliance Coordinator with a copy to the DOE&CD - SCU Administrator on the completion of each Bi-Annual Safety Inspection. h. As part of the Bi-Annual Safety Inspection, he shall ensure that a copy of the completed emergency drill report, conducted as part of the Bi-Annual Safety Inspection, is submitted to the DOE&CD - SCU Lead Field Compliance Coordinator with a copy to the DOE&CD - SCU Administrator on the completion of each Bi-Annual Safety Inspection. i.

Ensure that all “Inspection checklists” submitted by the D&WO Contractor are reviewed and any identified issue that shall immediately effect the safe operation of the rig are addressed with the relevant D&WO Superintendent immediately.

j.

Apply sound risk management techniques when mitigating risk to SA operations.

k. Ensure each document includes; Name of the DOE&CD - SCU – Field Compliance Coordinator, his signature, ID number and date. 4) DOE&CD - Safety Compliance Unit (SCU) Administrator a. Ensure that all relevant submitted reports are uploaded into the SCU Data Base. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued b. Ensure that all Bi-annual report documents are submitted for each inspection. c. Ensure that all Bi-annual report documents are collated ready for submittal to the relevant Department Manager. d. Prepare a cover letter for each complete Bi-annual report, addressed from the DOE&CD Division Head to the relevant Department Manager. e. Perform Trend Analysis of all findings from all inspection / audit reports. 5) Drilling Contractor Person In Charge (PIC) a. Act as Inspection Team Chairman for all inspections under his responsibility. b. Ensure that the current Inspection Check List (Rig Safety Inspection Check list) is completed monthly. c. Ensure that the completed check list is submitted to the relevant SA Superintendent and DOE&CD – SCU - Lead Field Compliance Coordinator by the last day of each month. d. Submit a copy of the Inspection checklist to the SA Liaisonman. e. Implement the closeout of identified deficiencies. f.

Make the SA D&WO Liaisonman and Superintendent aware of items of critical importance.

g. Make the SA D&WO Liaisonman and Superintendent aware of items outstanding for prolonged periods. H. The Drilling Contractor PIC (Person in Charge) is responsible for the timely completion of the Quarterly Safety inspection. I.

Ensure that a post-inspection meeting with the Rig Liaisonman and the contractor PIC is conducted at the end of the inspection, all deficiencies shall be discussed.

J. Ensure that the final report is completed in a timely manner and submitted to the SA D&WO Superintendent, Liaisonman and the DOE&CD Lead HSE Advisor by the 5th day of each month. K Monitor the closeout of identified deficiencies and make the Rig SA Superintendent and Liaisonman aware of items outstanding for prolonged periods. 6) Drilling Contractor Management a. Responsible for the implementation of this Safety Inspection and Reporting (SIR) procedure. b. Provide training and mentoring support to inspection committee members as required.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued c. Responsible for providing Drilling or Workover rig(s), including all auxiliary equipment, that are structurally and mechanically capable of performing according to the agreement between the Rig Operator and the Company (SA). d. Conduct and document a physical inspection of its rig and all auxiliary equipment on a regular basis - no less than once per month. e. Implement a comprehensive Preventive Maintenance (PM) program to keep equipment in good working condition. 7) SA Liaisonman Responsible for communicating this procedure to all D&WO Contractor Rig senior personnel. a. Acts as a team member for Manager's general inspection (as required) and Superintendent's quarterly inspection. b. Conducts continuous inspections and BOPE/H2S drills. Monitor that corrective actions prescribed are documented and carried through and provides feedback to Superintendent. c. Ensure that the current inspection Check List (Rig Inspection Check list) is completed for every inspection. d. Monitor the closeout of identified deficiencies and makes the Rig Superintendent aware of items outstanding for prolonged periods. 8) D&WO Superintendent Responsible for monitoring submitted reports for issues of significance to safety and operations. He shall ensure all safety related issues are promptly addressed. a. Acts as team member for Manager’s general inspection (as required). b. Ensures inspections under his responsibility are conducted to schedule. c. Ensures that a p p r o pr i a t e corrective action is taken to remedy deficiencies as quickly as possible. d. Monitor the closeout of identified deficiencies. e. Provides a w r i t t e n s u m m a r y /quarterly inspection findings to Manager, with copy to DOE&CD and LPD. f.

Conducts a new rig acceptance inspection and ensures all critical deficiencies are rectified before drilling the first hydrocarbon zone.

g. Ensure that all potentially significant issues are adequately mitigated using sound risk management techniques and are identified on the D&WO Morning Report. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued 9) D&WO Manager a. Enforce compliance with this procedure. b. Ensure inspections under his responsibility are conducted to schedule. 1. Conduct an Annual General Inspection of SA owned rigs with a team composed of the following: A. Superintendent B. Liaisonman / Foreman C. Department Safety Advisor D. Loss Prevention representative. 2. Ensure that SAR QSI’s are conducted on all SA owned rigs in his department. 3. Ensure that effective corrective actions are implemented for the identified deficiencies. 10) Environmental Department Provides periodic health inspection services as required. Additional inspections by Environmental Health shall be scheduled by the Manager for each of the SA owned facilities on an annual basis.

5. SAR Rig Quarterly Safety Inspection (QSI) The SAR QSI process provides a formal inspection system to identify deficiencies in; facilities, equipment, work areas and documentation. Its objective is to help fulfill the corporate and departmental policy of providing and maintaining a safe and healthy work environment for SA and Contractor employees alike. A. Responsibilities 1) Department Safety Advisor a. Provide training and mentoring support to QSI committee members as required. b. Perform Trend Analysis of all findings from all inspection reports. c. Perform a RCA of all repeat / reoccurring inspection deficiencies. 2) SA Liaisonman a. Ensure that the current SAR QSI Check List (Rig Inspection Check list) is completed before the day of the scheduled inspection. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued b. Ensure that a pre-inspection meeting with the Inspection Team and the contractor PIC is conducted on the day of the inspection. c. Ensure that a post-inspection meeting with the Inspection Team and the contractor PIC is conducted at the end of the inspection. d.

Monitor the closeout of identified deficiencies and make the Rig Superintendent aware of items outstanding for prolonged periods.

e. Ensure closed out items from the SAR QSI are identified in the monthly rig HSE monitoring report. f.

Act as Inspection Team Chairman for all inspections under his responsibility.

3) Superintendent a. Ensure that inspections under his responsibility are conducted to schedule. b. Ensure that SAR QSI inspections are conducted by a team composed of the following, as a minimum; Liaisonman/Foreman, drilling contractor personnel as required and Loss Prevention representative as per G.I. 6.011. c. Act as Inspection Team Chairman for one SAR QSI inspection per rig per year under his responsibility. d. Monitor the closeout of identified deficiencies. 4) Manager a. Ensure that inspections under his responsibility are conducted to schedule. b. Perform Annual General Inspection by leading SAR QSI’s in accordance with D&WO HSE Plan. c. Monitor the closeout of identified deficiencies. 5) Loss Prevention Department a. Shall ensure that inspections under his responsibility are conducted to schedule as per G.I. 6.011. b. Monitor the closeout of identified deficiencies as per G.I. 6.011. c. Coordinate with the operations department to schedule quarterly safety inspections as per G.I. 6.011. Note: The point of contact for each department shall be the Department Safety Advisor.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued 6) Inspection Team Chairman a. The Inspection Team Chairman shall be the person leading or initiating the SAR QSI. b. Ensure that a pre-inspection meeting with the Rig Liaisonman and the contractor PIC (Person in Charge) is conducted on the day of the inspection. c. Ensure that a post-inspection meeting with the Rig Liaisonman and the contractor PIC is conducted at the end of the inspection, all deficiencies shall be discussed. d. Ensure that the final report is completed in a timely manner (within 14 days of the initial inspection) and made available to; the Rig, the Drilling or Workover Department, LPD and DOE&CD. e. Monitor the closeout of identified deficiencies and make the Rig Superintendent aware of items outstanding for prolonged periods. B. Critical Equipment Safety Inspection List 1) Priority 1 – Past Accident History a. Cranes, Forklift and Lifting Gear. b. Accumulator and BOP’s. c. Mud Pumps. d. Draw-works and Hoisting System. e. H2S and Fire Protection System (Detection and Response). f.

SCR Module and Cabling.

g. Generators. 2) Priority 2 - High Potential Outcome High potential outcome if a future accident occurs in terms of harm to people (individual or group). a. Derrick and Crown Assembly. b. Choke Manifold and HP Co-flex Hoses. c. Fall Protection Equipment. d. Pipe handling Equipment. e. Shakers, Centrifuges and Gas Separation Equipment. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued f.

Substructure.

g. Flare-line and Ignition System. h. MCC Room. 3) Priority 3 - Operations Disturbance and High Cost Operations disturbance and high cost effect of the outcome if equipment failure occurs. a. Hand and Power Tools. b. Mud Tanks and Circulating System/Piping. c. Mud Watch System. d. Drillers Panel. e. Fuel Storage. f.

Compressed Gas Cylinders.

g. Rig Site Office and Communications. h. Rig Site Accommodation.

6. Inspection Procedure A. An inspection team Chairman shall lead the inspection. B. Each inspection team shall review the previous inspection report to confirm that the identified items have been rectified. C. The inspection team shall review the rig inspection checklist and clarify with rig management any identified items. D. The inspection team members shall report all unsafe conditions, unsafe acts, housekeeping deficiencies, deviations from procedure and any other item which may directly or indirectly impact safety. E. Drilling Contractor Safety Management Systems (SMS) shall be examined and sampled; this should include Permit to Work, Hazard Recognition Program and the contractors Training Matrix. Personnel shall be interviewed to establish their understanding of the contractor SMS. F. After noting the deficiencies, hazards or other deviations and suggestions for corrective actions, the team chairman shall ensure a report is submitted to the SA D&WO Superintendent and the DOE&CD Lead HSE Advisor by the 5th day of each month. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued G. Inspection of non-compliance items shall be tracked through D&WO safety inspection tracking system findings. 7. Corrective Actions and Follow-up A. The rig Liaisonman/Contractor PIC shall initiate corrective actions as soon as possible. He shall consult with the Department HSE Advisor and the area LPD when necessary. B. The Rig Liaisonman shall ensure that a proper follow-up system is maintained. The Rig Superintendent shall monitor the follow-up and close out of all identified items. C. Where an IDLH (immediately dangerous to life or health) exists, it shall be controlled immediately. D. Any deficiency not closed shall be identified and highlighted in the following inspection. E. Superintendents must be informed in writing, of any identified deficiency that remains open for more than 90 days. F. Best Practices identified during the inspection should be circulated throughout D&WO via the D&WO Alerts System “Safety Flash” use pictures if possible to clarify points. Note: No Priority 1 items shall remain open.

8. Standard Non-Compliance Report Format (Refer to HSERM / A / A-15 / SI&RP / Appendix No.1 / Example): A. Item Insert the item number. B. Finding Insert a description of the non-compliance, e.g. MACP not posted, no space out available, drills not conducted. C. Standard Insert the applicable standard, e.g. ASME B30.9. D. Action Required What does the standard say e.g. API RP 54 9.3.14 says “When personnel cannot perform necessary duties from ground level, well servicing rigs shall use a working platform around the wellhead. The platform should be of sufficient size and strength to support two workers”.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued E. Action By Who is responsible for the implementation of the standard and rectifying the deficiency, e.g. Pool Arabia, Ensco, and Aramco? It may be necessary to identify individual personnel by name or job title, e.g. Toolpusher, Electrician, Aramco Liaisonman. F. Priority Each identified deficiency must be given a priority of closeout ranging from 1 thru 4: 1) Priority 1 - Close immediately. 2) Priority 2 - Close within 2 weeks. 3) Priority 3 - Close before the next scheduled inspection. 4) Priority 4 - Negotiated closeout date. G. Priorities Classification 1) Priority 1 Close immediately: These items shall be deemed immediately hazardous to life and or the safe operation of the rig. These items should be closed immediately, if they cannot be closed before the inspection team leaves the rig, suspension of operations should be considered. 2) Priority 2 Close within 2 weeks: These items shall not be immediately dangerous to life or the safe operating condition of the rig; they may pose significant hazards which can be controlled for restricted period not greater than 2 weeks, with adequate mitigations. If adequate mitigations cannot be implemented, this item should be categorized as a Priority 1. 3) Priority 3 Close before the next scheduled inspection: these items shall not be immediately dangerous to life or the safe operating condition of the rig, they shall not pose a significant risk to personnel or the safe operation of the rig, and they shall require minimal mitigation to control the hazard until a permanent remedy is implemented. If adequate mitigations cannot be implemented, this item should be categorized as a Priority 2.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued 4) Priority 4 Negotiated closeout date: These items shall not be immediately dangerous to life or the safe operating condition of the rig; they shall not pose a significant risk to personnel or the safe operation of the rig. They shall require a significant amount of time to implement for example; equipment may have to be ordered, imported or installed. Repairs that can only be completed when the rig is not working may be required. Specialized training may be required that may have limited training providers with restricted training schedules. H. Date Opened Enter date item was first recognized. I.

Remarks This will be a short statement to give guidance as to how this item can be closed, e.g. retrain all personnel in the Permit to Work System. Ensure that the requirement for the completion of closeout is realistic. Requiring all the rig crew to be trained in the next 7 days would not be realistic as at least 30% of the crew will be absent at any given time. In the case of items outstanding from previous inspections, identify when the identified deficiency was first opened.

9. Trend Analysis / Root Cause Analysis All findings, as a result of any of the stated inspections identified in this procedure, shall have trend analysis performed, generic / reoccurring deficiencies will be the subject of a root cause analysis.

10. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A. 11. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-15 / SI&RP / Continued Appendix No.1

NON-COMPLIANCE REPORT (Example) PRIORITY 1=Immediately 2=Within 2 weeks 3=Before the next 3-MCI 4=Indicate negotiated Close-Out Date

DATE: LOCATION:

FINDINGS

0 Number of items outstanding from previous inspections Number of new items from present inspection

TYPE: ITEM

Number of items closed from last inspection

STANDARD Referenced

Standard Quote

RESPONSIBILITY

PRIORITY

0

DATE OPENED

OUTSTANDING FROM PREVIOUS INSPECTION

ITEMS IDENTIFIED IN CURRENT INSPECTION

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REMARKS / Guidance to Close

Section A / Administrative Requirements D&WO HSE Requirements Manual

A-16

Management of Change

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-16 / Management of Change (MOC) 1. Purpose Establish and implement procedures to formally manage changes or additions (both temporary and permanent) so that process, facility, and equipment safety is not compromised. Note: Deviations from SA High Risk HSE Requirements (HRHSER) shall be in accordance with HSERM / A / A-18 / WHRHSER.

2. Scope A. Changes to process technology, chemicals (New and/or before Field Test Trials), equipment, procedures, facilities, buildings or organizations, at D&WO facilities and SAR Rigs, shall be subjected to a MOC process. B. This scope covers Contractor Rigs which shall follow their approved MOC process. C. Departments and/or Divisions shall be subject to the MOC process when opening and/or closing a new department and/or division. D. This process does not apply to changes in kind; exact replacement, restoration, or repair. E. Temporary and emergency changes (including removal, disabling, bypassing or modifying an emergency shutdown device or system) are included in the scope of the MOC process. However, bypassing of such devices for servicing only is not part of the MOC process. Rather, the Safe Work Authorization Procedure (SWAP) for SAR Rigs and Permit to Work (PTW) for contractors shall be used to manage this type of work. F. This process does not apply to movement of personnel within D&WO. However, movement of personnel into D&WO from outside organizations shall be subjected to the MOC process. 3. Definitions A. CMC Change Management Control. B. Change Package The Change Package is made up of all the documentation necessary for the submittal, review and implementation of the change. A sample Change Request Form is provided in HSERM / A / A-16 / MOC / Appendix No.1.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-16 / MOC / Continued C. Change in Operational Arrangements Where changes to an operational arrangement occurs, for example, from 24-hour operating to daylight manning only or when facilities are mothballed, should be subject to the change review process. D. Emergency Change An Emergency Change situation exists when changes are required and implemented to: 1) Prevent injury to personnel or damage to equipment. 2) Correct immediate safety and fire hazards or extreme service failure. 3) Prevent significant loss of productivity or assets. E. Hazard Identification The process of recognizing that a hazard exists and defining its characteristics. F. Management of Change (MOC) A process to systematically evaluate, authorize, implement, and document changes to existing assets to ensure that safeguards are in place to eliminate the possibility of introducing hazards because of changes. G. MOC Coordinator A person assigned by the department head to record, track and report the status of the MOC requests. H. Operating Window The established parameters for the specific process within which the operator has the discretion to manipulate the various operating parameters. I.

Originator The person, usually a proponent employee, who identifies the necessity for a change.

J. Permanent Change A Permanent Change is one, which, once implemented, shall be a permanent feature of the design, operation or procedural control of the facility. K. Pre-Start-up Safety Review (PSSR) A field verification that all criteria identified in the change review process with regard to physical installation, procedural amendments and training are in place. The Originators Supervisor shall ensure PSSR is conducted. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-16 / MOC / Continued L. Risk Analysis Checklist (RAC) A checklist found in the MOC form used to identify potential hazards and operability problems. M. Replacement-in-Kind (RIK) A replacement-in-kind is one in which the old equipment is replaced with an identical part or an equivalent part approved and specified by the applicable engineering standard or in the case of a change to process parameters these remain within the established operating window. Replacement-inkind is not subject to MOC procedures. However, any replacement of equipment or minor update to written procedures requires documentation in accordance with maintenance work requirements (e.g., work orders in the case of equipment) or appropriate approvals in the case of procedures. Any replacement needs to include all necessary quality assurance, quality control, inspection and field verification. Some examples of replacements-in-kind are: 1) Repairing equipment or piping. 2) Replacing equipment or piping with material meeting the same specification as the original. 3) Painting or coating to the original specification using the same or equivalent materials. 4) Revision of procedures to include updated associated references. N. Risk Combination of the frequency of occurrence and consequence of a specified hazardous event. O. Significant Change 1) Any changes to parts, equipment, or facilities including changes resulting from purchasing a replacement with a non-identical make and model. 2) Any organizational changes. 3) Any significant Process Improvement Changes. 4) Any changes to standards, material specifications, operating conditions, methods, or procedures. P. Temporary Change A change implemented with the intent that the change is applied for a fixed duration. Temporary changes that remain in place for longer than six months should be subject to the full permanent change procedures.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-16 / MOC / Continued Q. Training Needs Analysis Change A Training Needs Analysis is utilized to identify the necessary training required to ensure that personnel are fully conversant with the equipment and operations within their facilities by identifying any required training needed because of a specific change.

4. Roles and Responsibilities A. Department Manager 1) Ensure full implementation of this MOC process, including the MOC Process Flowchart. 2) Ensure the implementation of this MOC process is audited annually as per the SA – Safety Management Guide - MOC, Guide Number 05-001-2006, Attachment A2, Section 9.0. 3) Assign MOC coordinator. B. Division Head Perform any necessary actions as a result of an MOC request if it escalates to his level as per the MOC flow chart (Refer to HSERM / A / A-16 / MOC / Appendix No.2). These actions shall include but not be limited to: 1) Review the MOC request feasibility. 2) Ensure that the entire required approval route (flow chart) is followed. 3) Review previous MOC records for similar procedures and control methods. 4) Ensure the hazard identification section has been completed prior to the submittal of the MOC Request. C. Unit Head 1) Ensure MOC Process is in place for any change in his facility or area of responsibility. 2) Upon receiving MOC Request from originator, evaluate potential impacts and benefits. 3) Coordinate a Preliminary Hazard Analysis (PHA). 4) Review previous MOC requests for similar proposals and lessons learned. 5) Determine if MOC requires escalation to next management level based on Risk Assessment checklist in the MOC Form.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-16 / MOC / Continued 6) Complete the approved MOC Request Form and submit it to the MOC Coordinator with supporting documentation. D. MOC Coordinator 1) Assign tracking number and keep records of all MOC requests. 2) Shall keep MOC request forms updated. 3) Submit quarterly report to the designated division head with pending MOC request.

5. Exclusions A. Normal maintenance work, where parts or equipment are replaced by an identical part or equipment of an identical make and model, is not covered by this procedure. B. Minor Process or work procedure changes (modifications) are also excluded. Urgently needed changes for an emergency are excluded from this process. Note: Minor - Lesser or secondary in amount, extent, importance, or degree.

6. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A. 7. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-16 / MOC / Continued Appendix No.1

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-16 / MOC / Appendix No.1 / Continued

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-16 / MOC / Continued Appendix No.2 / MOC Flow Chart

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-17

Risk Management Manual

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / Risk Management Manual (RMM) 1. Purpose The overall purpose of this Drilling and Workover (D&WO) Risk Management Manual (RMM) is to outline the risk assessment and management activities to protect people and preserve company assets. The manual shall be used in conjunction with the Risk Management Training Package. 2. D&WO Risk Management Policy To assess and manage risks, D&WO Operation’s departments shall use a risk-based approach to identify hazards, assess their likelihood of occurrence, and evaluate the potential consequences. Hazards associated with the work within the scope of this manual shall be identified and associated risks determined, prioritized, and controlled. Tools and procedures which shall be used to identify and control risks associated with D&WO Operations, ensuring the protection of people, property and environment, are described in this manual.

3. Scope This manual applies to all onshore and offshore drilling and workover rigs, assets and facilities controlled directly by D&WO Operations. D&WO Operation’s contractor and service companies will execute aspects of the programs and activities resulting from SA use of this manual. Contractors and service companies shall also have a Risk Management System that meets the D&WO Risk Management Policy. The Risk Management Process shall be applied in the following circumstances: A. General 1) Operations in new areas or under new circumstances 2) Execution of new operational requirements. 3) Implementation of new technology. B. Engineering (with Operations input) – Office based; (Refer to HSERM / A / A-17 / RMM / Appendix No.1) 1) Well Planning stage including Well Approval Process (WAP) and/or Workover Candidate Proposal (WOCP). 2) Well program development stage during well design and approval process. C. Operations (with Engineering input) – Rig based (Refer to HSERM / A / A17 / RMM / Appendix No.2)

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued 1) Well construction activities (D&WO). 2) Managing D&WO well related activities, e.g.: a. Drilling program implementation. b. Changes in well program. c. Unplanned arising conditions. D. Any other situation as may be required by management

4. Responsibilities The following are the responsibilities in the implementation of this manual: A. Managers Managers shall provide adequate resources required for the implementation of Risk Management and Assessment in order to ensure that the Risk Management Policy is complied with. They shall take overall responsibility for the implementation of this manual for their respective departments and ensure that Risk Management decisions are made at the appropriate management level. B. Engineering – General Supervisors / Supervisors Ensure that all hazards within technical/engineering designs are identified, risk assessed and adequate controls are in place. C. Engineering - Drilling Engineers Ensure that all hazards are identified in drilling programs, risk assessed and adequate controls stipulated in the drilling program are in place. D. Operations - Superintendents Ensure that all hazards within operations activities in their respective divisions are identified, risk assessed and adequate controls in place at the planning stage prior to the approval of work to be performed and during the execution of well programs. Ensure that the controls identified are implemented. E. Operations - Rig Foremen / Liaisonman / SAR Tool Pushers and other SAR Key personnel Implement the Risk Management policy on site and have the required controls in place prior to and during the execution of well programs including Rig moves.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued F. Safety Advisors Verify that the controls identified are implemented. They shall also provide advisory role and support for the Risk Assessment and Management including the role of risk assessor. G. Drilling Contractors and Service Companies Contractors and service companies shall implement the controls identified by D&WO Operations. In addition, they shall also have a Risk Management System that meets the D&WO Risk Management Policy. H. Drilling Operational Excellence & Compliance Division (DOE&CD) The DOE&CD shall be the Custodian of the Risk Management Manual which is a controlled document. Distribution, updates and revisions shall be in accordance with the D&WO Document Control Procedure.

5. Definitions A. Risk The chance that something or someone will be adversely affected by a hazard. Risk can be defined as the combination of the likelihood or probability of an event and its consequences. B. Hazard An object, substance, condition, situation, practice or behavior with the potential to interrupt or interfere with the orderly progress of an activity being carried out and which has the potential to cause harm to people, equipment, property or environment. C. Consequence An event or chain of events that results from the release of a hazard with a defined severity. D. Probability/Likelihood Is the chance of a hazard being released or of an incident/accident occurring or of the loss of control. E. Risk Assessment A formal process to assess the likelihood and consequences associated with identified hazards to determine the risk and evaluate the acceptability of the risk. Risk Assessment is an integral part of Risk Management. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued F. Risk Management The ongoing implementation of existing control measures, and identification and implementation where practicable of additional control measures to manage risk to levels that are tolerable and As Low as Reasonably Practicable (ALARP). Risk Management is an integral part of the D&WO Safety Management System (SMS). G. Risk Matrix A Technique used to determine qualitatively the ranking of a hazard based on the severity of its harm to people, equipment, property or environment and its frequency of occurrence. It is a methodology that matches the potential consequences of an event outcome with the probability that the outcome will occur in order to establish an appropriate response.

6. Risk Management Process The core process of Risk Management involves identifying hazards, systematically assessing and evaluating risks and applying risk reduction and control measures throughout an asset’s life cycle. Risks shall be documented, communicated and controls implemented (including necessary training and register updates). Reviews shall be made regularly to measure effectiveness and continual improvement. The following are the sequential steps in Risk Assessment and Management core process which shall be individually addressed in this manual: A. Hazard Identification and Recording. B. Risk Assessment and Evaluation. C. Risk Reduction and Control. D. Risk Communication and Documentation. E. Risk Management Measurement and Review.

7. Hazard Identification and Recording Process A. Hazard Identification Hazards shall be identified through a series of simple questioning of the activity to be carried out. It shall seek to answer the following questions: 1) What can happen, where and when? 2) Why and how can it happen? SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued 3) What can go wrong? 4) What tools and techniques can be used to assist detection? B. Hazard Recording New Hazards identified in drilling and workover operations shall be recorded in a Hazard Register which shall be updated continuously. 8. HAZOP (Hazard and Operability) In a HAZOP study, a multidisciplinary team of individuals systematically “brainstorms” the process under review in a series of meetings using a set of guide words to structure the review. HAZOP technique applies more to plants and machinery rather than Rig operations activities. It can be used in D&WO for underbalanced drilling operations, SIMOPS, etc. For more details, refer to SAER-5437 (SA HAZOP Guidelines)

9. HAZCOM Hazardous Material Communication program (HAZCOM) is a comprehensive and structured system for the communication of chemical hazards to management and employees throughout SA. HAZCOM consists mainly of two types of documents which have been prepared using information from the chemicals Material Safety Data Sheet (MSDS): A. Chemical Hazard Bulletins (CHB); and B. HAZCOM labeling for chemical containers. Information from CHBs helps protect employees from unnecessary exposure to harmful chemicals in the workplace; CHBs are developed within the Environmental Protection Department (EPD) to provide essential information on the safe handling of chemicals and are prepared in both Arabic and English. CHBs are an effective tool for providing the required minimum information for employees working with chemicals, and should be available for all chemicals in use on a rig location. HAZCOM labeling is established within EPD to alert employees to hazards associated with chemicals and to provide precautionary information. All chemicals on a rig location shall have appropriate HAZCOM labeling. Further details are available on HAZCOM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued 10. Risk Assessment and Evaluation Once hazards have been identified, the associated risks are assessed and evaluated to estimate the probability or likelihood of an incident occurring and evaluate the potential severity of the resulting loss in order to determine the appropriate mitigating actions (controls). The following are techniques/tools used for Risk Assessment in D&WO:

•

Risk Matrix.

•

Bow Tie.

•

JSA.

A. Risk Assessment Matrix (see HSERM / A / A-17 / RMM / Appendix No.3) 1) The “Risk Assessment Matrix” technique shall be used as the main technique to assess risks for Drilling and Workover operations. The Risk Assessment Matrix is a tool used to determine qualitatively the ranking of a hazard, based on the consequence or severity of its harm to people, equipment, property, environment or company business, public image or reputation and its probability or likelihood of occurrence as well as how frequently it could occur. 2) Qualitative Risk Analysis uses scales or ranking (e.g.: high/medium/low) to describe the seriousness of potential consequences and the likelihood or probability that those consequences will occur. The D&WO Risk Assessment Matrix provides guidance on assessing the likelihood and severity of identified hazards. The proper use of the Risk Assessment Matrix is covered in the Risk Management Training Package. The result of the assessment shall be summarized in a Risk Assessment Form (RAF), Refer to HSERM / A / A-17 / RMM / Appendix No.4. The RAF is used to document the hazards associated with a particular project or activity, the threats (causes) that could result in a release of the hazard, the potential consequences, the potential risk associated with the hazard, the control measures that are or will be put in place and the residual risk taking into account the effectiveness of these measures. The RAF shall prioritize (rank) all hazards associated with a project or activity, and shall be used primarily during the project or process planning stage.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued B. Bow Tie Analysis The “Bow Tie” method is used to demonstrate how a particular hazard is controlled, and evaluate the effectiveness of the controls. The results of this analysis are presented in a simple diagram (the Bow Tie diagram). The Bow Tie combines the threat (cause) on the left hand side, the consequences on the right hand side with the Hazard and Top Event in the middle. A schematic of the Bow Tie diagram is shown in Figure No.1. Figure No.1: Bow Tie Schematic

In the Bow Tie, on the left hand side barriers are the controls which prevent or reduce the likelihood of a threat resulting in a top event. On the right hand side recovery measures are the controls that limit the consequences of the top event. Bow-Ties should be developed for all major hazards (i.e. severity level 4 and 5) and high-risk hazards identified on the Risk Assessment Matrix. An example of a simplified Bow Tie diagram is shown in Figure No.2 below. Figure No.2: Bow Tie Analysis Example

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued C. JSA The purpose of the JSA is to provide a means of identifying workplace hazards, implementing control measures necessary to reduce the possible effects of the hazard and communicating the strategies to workers prior to performing the work. For field implementation of a job process, the Job Safety Analysis tool (JSA) shall be used in place of Risk Analysis. Further details of JSA and methodology are covered in HSERM / A / A-14 / JSA. The SA JSA Form is shown in HSERM / A / A-17 / RMM / Appendix No.5.

11. Risk Reduction and Control Process This is the step where measures are taken to eliminate, reduce, accept or avoid the risk analyzed in order to control the undesirable effects of the risk or hazard. For D&WO Operations, the main tool that shall be used is the Risk Assessment Matrix (Refer to HSERM / A / A-17 / RMM / Appendix No.3). A. Risk Control Techniques Risk Control techniques include the following: 1) Terminate: Measures are established to eliminate the risk completely. 2) Treated: Controls are implemented to reduce the risk to acceptable levels. 3) Tolerated: The risk is determined to be acceptable. 4) Transferred: The risk is toured to others or avoided. Controls to be implemented must be reasonably practicable. That is, the control measures must balance the level of risk with the amount of effort, time and money required to reduce the risk. B. Risk Control Measures The following measures are used for controlling specific risks and shown in preferred order: 1) Engineering Controls: Risks are avoided, eliminated or minimized through appropriate engineering design. Various engineering standards are in place in SA to address designs and implementation with minimum standards for controlling hazards. SA Engineering Standards (SAES), Drilling Manuals, and G.I.’s.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued 2) Administrative Controls: These controls include administrative procedures, location and proximity, education, work assignments, substitutions, breaks and personnel rotations. SA D&WO HSE Requirements Manual (HSERM). 3) Personal Protective Equipment (PPE) Controls: These are additional or supplemental interim measures to complement engineering and administrative controls. D&WO Loss Prevention Manual and D&WO HSERM.

12. Risk Communication and Documentation Process A. Risk Communication Following a risk assessment, controls to mitigate hazard consequences must be communicated by the approving party to all parties concerned for implementation. A key factor to the success of any Risk Management activity is risk communication. Risk Management is an ongoing process which involves three significant topics which must be communicated in various ways: 1) Analyzing the risk. 2) Treating the risk. 3) Monitoring the risk. A structured communication process is required so that an informed decision about risk treatment can be made. A proper risk communication will support Risk Management implementation and enhance staff general awareness and Risk Management, recognition and understanding of the Risk Management approach and a positive risk-awareness culture at all levels. Risk communication can be done in the following ways: 1) Structured meetings. 2) Teleconferencing. 3) Detailed written program/instructions.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued B. Risk Documentation The various analyses done to assess risk prior the execution of an activity must be well documented in a formal report within which the members of the risk assessment team shall be identified. These reports shall be included in the well file for D&WO operations and in the central projects database for other operations. The custodian of the documents shall be D&WO DOE&CD. There shall also be a hazard register which shall be maintained and updated regularly with feedback from projects, incident investigations, accident / incident reports, etc. In the course of implementing a risk assessed project, there could be some planned activities which if carried out as designed, could result in a hazard which was not initially identified. These shall be lessons learned. A database of lessons learned shall be maintained and made available to supervisors so as to avoid mistakes that had been made in the past. This database is yet to be developed in D&WO.

13. Risk Management Measurement and Review Process The observations during implementation combined with the communication and documentation process will help in achieving the following: A. Facilitate continuous monitoring and review of Risk Management. B. To provide an audit trail for the follow-up of key actions related to the exposures being addressed. C. To share and communicate Risk Management activities among all stakeholders, most particularly with the field personnel who will be executing risk managed projects.

14. Training and Implementation Process As part of the implementation phase of the Risk Management Process, D&WO shall conduct training of personnel in Risk Assessment and Management including the implementation of the tools outlined in this Risk Management Manual. The relevant training requirements shall be included in personnel competencies and tracked through the Training Matrix. A Risk Management Training Package developed by D&WO shall be used to train personnel in Risk Management. The following have been considered in a Risk Management Training Package: A. Who is to be trained: Risk Assessor, Division Heads, Supervisors, Drilling Engineers, and Rig Foremen.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued B. Training level: To be consistent with level of responsibilities. C. Who will do the training: The Risk Management Training Package developed shall be delivered by the Aramco Training department. The Risk Management Training Package shall contain stated objectives, learning outcome, assessment and materials. 15. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A. 16. References: Refer to HSERM / A / A-2 / RM. Risk Management International Standards A. Australian / New Zealand Standard AS/NZS 4360:1999. Risk Management. B. British Standard BS 6079-3:2000. Project Management - Part 3: Guide to the management of business related project risk. C. Canadian Standards Association CAN/CSA-Q850-97. Risk Management: Guideline for DecisionMakers. D. Environmental Protection Agency 40 CFR Part 68 Accidental Release Prevention Requirements: Risk Management Programs Under Clean Air Act Section 112(r)(7). E. IEC International Standard 300-3-9:1995, 1st Ed. Dependability management - Part 3: Application guide - Section 9: Risk analysis of technological systems. F. IEC International Standard 62198:2001. Project Risk Management – Application guidelines. G. ISO 17776:2000(E). Petroleum and natural gas industries - Offshore production installations Guidelines on tools and techniques for hazard identification and risk assessment. H. ISO/IEC Guide 73:2002 (E/F). Risk Management - Vocabulary - Guidelines for Use in Standards 1st Ed. I.

Japanese Industrial Standard JIS Q 2001:2001 (E). Guidelines for development and implementation of Risk Management system.

J. National Fire Protection Association Fire Department Occupational Health and Safety Standards Handbook (Supplement 7) Risk Management Planning. K. National Fire Protection Association NFPA 1250. Recommended Practice in Emergency Service Organization Risk Management. L. NORSOK Standard Z-013. Risk and Emergency Preparedness. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued Appendix No.1

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued Appendix No.2

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued Appendix No.3

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued Appendix No.4

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-17 / RMM / Continued Appendix No.5

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-18

Waiver of High Risk HSE Requirement(s)

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-18 / Waiver of High Risk HSE Requirement(s) (WHRHSER) 1. Purpose The purpose of this Drilling and Workover (D&WO) procedure is to ensure all deviations from SA High Risk HSE Requirements (HRHSER) are subject to a suitable and sufficient risk assessment and to establish a procedure (including the need for a formal risk assessment) to initiate, process, review, and approve deviations from HRHSER. Note: A. HSERM / A / A-17 / Risk Management Manual / Appendix No.3 shall be utilized to determine the potential severity and/or consequence of the incident or potential incident. This procedure is applicable to “High Risk” category deviations only. When determining the risk associated with any planned deviation, it is the potential likelihood and severity of the incident that may result as a consequence of that deviation that must be assessed for risk. Example; Removing the handrails from an elevated work platform and requiring personnel to continue to use the platform. Personnel falling from height is the potential incident; Severity (catastrophic, fatality) = 5 Likelihood (probable) = 4 Severity X Likelihood = Risk Rating 5 X 4 = 20 High Risk; waiver required.

B. “Changes” to process technology, chemicals, equipment, procedures, facilities, buildings, personnel, contracts and/or organizations shall be in accordance with HSERM / A / A-16 / Management of Change.

2. Scope This procedure establishes a standard for obtaining a Waiver to a HRHSER. A. Deviations from HRHSER are not allowed unless justification is presented to D&WO Drilling Operational Excellence & Compliance Division (DOE&CD) Division Head that establishes mitigation equal to or greater than the existing HRHSER. B. The scope of an approved Waiver request is limited to the facility, rig, project, and HRHSER. Extending the scope of an approved waiver request to cover additional facilities, rigs, projects, or requirements in the HSERM shall be accomplished by submittal of a new Waiver request, and its subsequent approval.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-18 / WHRHSER / Continued C. This procedure is applicable to all departments within D&WO; including Saudi Aramco Rigs (SAR), SA facilities, Contractors and Service Companies. D. Approval shall be obtained prior to implementing any deviation from a HRHSER. E. Waivers are for a specific time frame and shall not exceed 12 months in duration.

3. Definitions (Refer to HSERM / A / A-1 / DA&A A. Initiator: A Division Head or an Engineer in an operating unit who initiated and created a waiver request. B. Originator: The Manager of the organization proposing to waive a HRHSER. The Originating organization may be a Project Management Team, Operations, Maintenance or any other organization with a vested interest in the waiver of a HRHSER. C. DOE&CD: The Division assigned responsibility to establish, update, maintain and monitor specific HRHSER documents and their requirements. Also tasked to conduct the Waiver Request Analysis and Conditions of Approval. D. VP-D&WO: HRHSER Waiver final approval authority.

4. Procedure Approval to deviate from any HRHSER must be obtained from the manager of the proponent department affected by deviation from the requirement, Drilling Operational Excellence & Compliance Division (DOE&CD) Division Head and the VP-D&WO. Approval to waive must be approved prior to deviating from a HRHSER. To minimize cost and schedule impacts, new projects are encouraged to obtain a Waiver request approval during Project Proposal development (Refer to DOE&CD website / on-line forms / HRHSER Waiver Request Form). A. Initiation of a Waiver Request 1) To request approval to deviate from established HRHSER(s), the initiator shall initiate a waiver request. To assist in expediting the Waiver review, attach all supporting documentation (Example; Formal Risk Assessment). 2) The Waiver request justification shall include a discussion of the impact of approving the Waiver. Document and support cost benefits or penalties by addressing the following items: a. Decrease in safety or reliability.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-18 / WHRHSER / Continued b. Adverse environmental impact. 3) The Waiver request shall always identify and analyze other alternatives to waiving the HRHSER. B. Waiver Request Submittal and Logging Submit a Waiver request and all supporting documentation to DOE&CD Division Head. The Waiver request shall be assigned a tracking number and routed to the appropriate subject matter expert (SME) within DOE&CD to analyze the request and recommend disposition. C. Waiver Request Analysis and Conditions of Approval The Responsible DOE&CD SME shall be assigned the task of review and analysis of the Waiver request. 1) If the review determines that the Waiver request is not required, due to misinterpretation or misapplication of a HRHSER, it shall be returned to the Originator with an explanation note by the DOE&CD SME. 2) If the review and analysis determines that the Waiver request is not supported and should be rejected, it shall be returned to the Originator with an explanation of the rejection by the DOE&CD SME. 3) If the review and analysis determines that the waiver request should be supported and approved, then the analysis shall be documented. If the DOE&CD SME has identified specific factors or concerns, these shall also be included in the analysis documentation. If there are conditions associated with the approval of the waiver request, the initiator shall insert them. The DOE&CD SME shall provide the review analysis recommendation to the DOE&CD Division Head. D. Waiver/Deviation Request Approval The Waiver request is approved by obtaining signatures from the Department Manager(s), DOE&CD Division Head and VP-D&WO. E. Waiver Request Rejection and Appeal 1) The Originator shall accept the rejection recommendation or resolve the issue with DOE&CD. 2) If the Originator disagrees with the rejection decision, he must submit an appeal for reconsideration to DOE&CD. DOE&CD shall attempt to resolve the issue. The final authority to approve or reject shall rest with them.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-18 / WHRHSER / Continued 5. Responsibilities A. Initiator 1) A Waiver request is initiated and created typically by a Division Head or an Engineer. Provides all supporting documentation to explain why waiving HRHSER is the best course of action available to the Company. 2) The Initiator shall conduct a formal risk assessment in accordance with HSERM / A / A-17 / Risk Management Manual. 3) Prepares responses to questions or requests for additional information from DOE&CD (Reviewing Authority). B. Originator Review the initiators Waiver request with the department manager for completeness then forward to DOE&CD for formal analysis. C. DOE&CD Subject Matter Expert (SME) Conduct a detailed analysis of the request for Waiver and provide recommendation (Approval or Rejection) to the DOE&CD Division Head. D. DOE&CD Division Head 1) Receives request for Waiver from Originator and assigns SME to conduct formal analysis of the waiver request. 2) Provides the Originator with the results of the analysis then forwards recommendation for approval to VP-D&WO. 3) Conduct a detailed review of all aspects of “After-the-Fact” Waiver requests, including what allowed their occurrence. E. VP-D&WO Approves request for Waiver/Deviation based on DOE&CD recommendation. 6. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A. 7. References: Refer to HSERM / A / A-2 / RM. A. HSERM / A / A-16 / Management of Change. B. HSERM / A / A-17 / Risk Management Manual. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-18 / WHRHSER / Continued C. SAEP-302 - Instructions for obtaining a Waiver of a Mandatory SA Engineering Requirement.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-19

Lock-Out / Tag-Out

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-19 / Lock-Out/Tag-Out (LOTO) 1. Purpose The purpose of this Drilling and Workover (D&WO) Lock-Out/Tag-Out (LOTO) procedure is to protect personnel from the potential releases of stored energy or the startup of machinery or equipment that may cause injury. This specifically includes any maintenance activity where electrical, mechanical, steam, hydraulic, pneumatic or other energy source is present. Additional hazards may include heated, flammable, toxic, corrosive or chemical material.

2. Scope The scope of this procedure is applicable to Saudi Aramco Rigs (SAR). 3. Responsibilities It is the responsibility of the Person in Charge (PIC) to ensure compliance with this procedure. 4. Procedure A. Supervisors shall identify all energy sources that are subject to this procedure. Prior to performing any maintenance or repair work on any machine or equipment, a Saudi Aramco Rig (SAR) Safe Work Authorization Procedure (SWAP) or contractor Permit to Work (PTW) shall be completed before the work is commenced. Step 1 2 3 4 5 6 7 8

Action Notify all affected personnel that an energy isolation procedure is being utilized. Shut down all the equipment by following the normal shutdown procedures. Isolate the equipment from all potential energy sources. Complete the appropriate tags for energy isolation devices. Verify that all potential energy sources have been isolated. Complete the LOTO (Energy Isolation) and store keys in PIC controlled lock box during isolation (if an equally restrictive procedure is in place that will be an acceptable alternative). Advise person requesting isolation that zero energy source established. Person requesting isolation to verify zero energy source established. Initiate the work.

B. Function Testing Should a function test be required following inspection and/or repairs to equipment which is in isolation and prior to reintroducing it into service, approval must first be granted by the SWAP or PTW issuer. During the function test all safety practices and procedures in place are to be adhered to.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-19 / LOTO / Continued C. Restoring Service to Equipment 1) After completing the work the locks shall be removed and only the person who placed their lock and signed the tag may remove the lock. The last person removing their lock and releasing the “DO NOT START” tag shall close out the permit and notify all affected parties that the repairs are complete and the equipment is ready for service. The individual restoring energy shall: a. Inspect the work to ensure that nonessential items have been removed. b. Ensure that the equipment components are intact. c. Check the work area to ensure all employees are safely positioned or removed from the equipment. d. Notify all affected employees. 2) In the event a person is unavailable to remove the lock, the following procedure shall be followed: a. Verify that the employee in not on-tour. b. Advise PIC and gain approval to remove absent employee’s lock. c. Ensure that the employee knows that their lock/tag has been removed before they return to work. D. Locks and Tags Each rig shall provide standardized tags and individually keyed locks as required to implement the procedures. The keyed locks shall be of a specific design used only for LOTO. Tag attachment devices shall be on a non-reusable type, attachable by hand, self-locking and non-releasing. During isolations, keys to all locks used in the LOTO process shall be kept in a lock box under the control of the PIC and shall not be kept on individual’s person. E. Long Term Isolation Procedure In the event it is necessary to isolate a piece of equipment for an extended period of time or more than one tour, the following procedure shall be followed: 1) A permit shall be raised; a record of the isolation shall be made in the Isolation Log added on the Active Isolation List displayed in the control room/permit issuing office. The equipment shall be isolated, locked and tagged out. When isolation of the equipment has been completed (i.e. removal of equipment) the electrical SWAP or PTW and all safeguards shall remain in place. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-19 / LOTO / Continued 2) When work/repairs have been completed on the isolated equipment, the following steps shall be followed. All LOTO equipment shall be removed following all safety procedures. Once the equipment is back in service and all systems have been returned to a safe condition the SWAP or PTW shall then be cancelled. F. Training The purpose of this training is to protect personnel from the potential releases of stored energy or the startup of machinery or equipment that may cause injury. This specifically includes any maintenance activity where electrical, mechanical, steam, hydraulic, pneumatic or other energy source is present. Additional hazards may include heated, flammable, toxic, corrosive or chemical material. Employees required to perform LOTO procedures shall receive training in these procedures before performing the procedures. This training shall be documented.

5. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A. 6. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-20

Third Party Equipment Installation

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-20 / Third Party Equipment Installation (TPEI) It is the responsibility of the SA Liaisonman, OIM/PIC to ensure that all personnel follow the rules outlined within HSERM / A / A-20 / TPEI. 1. Equipment Installation 3rd Parties or Subcontractors must advise the SA Liaisonman of plans to ship equipment to the rig. To facilitate a survey on arrival, the drilling contractor will initiate its third party permit to install equipment program. Note: Tools or equipment used down hole, or equipment that presents no risk to facility or personnel does not require a third party permit to install equipment program. 2. Documentation The equipment shall be shipped to the rig with all required compliant certification such as Lifting Gear Certification.

3. Confirm The OIM/PIC or his designee shall review the provided documentation and verify it conforms to the equipment received. 4. Inspect The OIM/PIC or his designee shall appoint a Mechanic/ Electrician/Other Supervisor to survey the equipment for obvious external and internal damage and overall condition.

5. Assess Risk The OIM/PIC, Toolpusher or Barge Master/Engineer shall agree to placement of the equipment and identify obvious hazards of such placement and assess any risks created, reducing such risks as far as reasonably practicable.

A current file of Installation of Equipment shall be maintained.

6. Audit On a six-month basis, each third party unit shall be subject to the full inspection and audit verifying conformance with the Installation Permit and Checklist.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-20 / TPEI / Continued 7. Disconnection When the equipment is to be removed from the rig, the process will reverse with the OIM/PIC or his designee appointing maintenance personnel to safely disconnect the unit from rig.

8. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A. 9. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-21

Confined Space

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / Confined Space (CS) 1. Purpose The purpose of this procedure is to introduce within Saudi Aramco Rigs (SAR) the planning, procedures and practices necessary to enable people to work safely in confined spaces.

2. Scope The scope of this procedure is applicable to Saudi Aramco Rigs (SAR).

3. Responsibility A. Supervisor or Competent Designate 1) Conduct a Hazard Assessment. 2) Determine the type of personnel protective equipment (PPE) required. 3) Prepare a Confined Space Rescue Plan. 4) Must ensure the workers are trained in confined space entry and the safe use of all the personnel protection equipment prior to entering any confined space. 5) Ensure all atmospheric tests are completed by a competent person and logged before personnel enter a confined space. B. Worker 1) Be trained in confined space entry. 2) Know the procedures for confined space entry. 3) Ensure all atmospheric tests are completed by a competent person and logged before personnel enter a confined space. 4) Ensure all atmospheric tests are completed by a competent person and logged before personnel enter a confined space after the area has been unoccupied for extended periods of time, such as; tea breaks, meal breaks. 5) Ensure all safety precautions are in place before entering a confined space. 6) Ensure you understand the procedure for rescue.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued 4. Introduction This policy gives guidance on the precautions necessary to avoid the hazards associated with the entry into and working in CONFINED SPACES. Entry into a confined space for any purpose shall only be considered when all reasonably practicable steps have been taken to deal with the problem in some other way. Once the decision has been made that entry to a confined space is necessary, positive steps shall be taken to eliminate or minimize the risk from the hazards of dangerous fumes, gasses, liquids or solids or of lack of oxygen, harmful residues radiation or moving machinery within the confined space, or from any other source such as fume or dust emission from an adjacent plant or area which might cause hazard to the operation. Positive measures in making the working conditions safe shall always be ensured by means of strict supervision.

5. Definitions (Refer to HSERM / A / A-1 / DA&A) In order to understand these requirements, it is necessary to know the meaning of certain terms and phrases that are used within Aramco standards, which is the basis that the international standards and best practices regulations call up as a minimum requirement. A. Competent Person "One who is capable of identifying existing and predictable hazards in the surroundings or working conditions which are unsanitary, hazardous, or dangerous to employees, and who has written authorization to take prompt corrective measures to eliminate them". By way of training and/or experience, a competent person is knowledgeable of applicable standards, is capable of identifying workplace hazards relating to the specific operation, and has the authority to correct them. Some standards add additional specific requirements which must be met by the competent person. B. Confined Space 1) A space or volume which: a. Is not intended as a regular workplace. b. Has restricted means of entry and exit. c. May have inadequate ventilation and/or an atmosphere, which is either contaminated or oxygen-deficient. d. Is at atmospheric pressure during occupancy. 2) Confined spaces include, but are not limited to: a. Storage tanks, spud cans, pre-load tanks, mud pits (land rigs or MODU), trip tanks, voids, process vessels, boilers, pressure vessels, batch mix tanks and other tank-like compartments. b. Open-topped spaces of more than 1.5 meters in depth such as rotary opening when the bell nipple is installed, pits which are not subject to good natural ventilation. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued c. Pipes, sewers, shafts, ducts and similar structures. d. Any shipboard spaces entered through a small hatchway or access point, cargo tanks, cellular double bottom tanks, duct keels, cofferdams, ballast and oil tanks, and void spaces, but not including dry cargo holds. 3) Contaminant Any dust, fume, mist, vapor, gas (H2S) or other substance, the presence of which can be harmful to health. 4) Exposure Standard An airborne concentration of a particular substance in the workers breathing zone, exposure to which, according to current knowledge, should not cause adverse health effects nor cause undue discomfort to nearly all workers. The exposure standard can be of three (3) forms: a. Time Weighted Average (TWA) - The average airborne concentration of a particular substance when calculated over a normal eight-hour (8) workday, for a five-day (5) working week. b. Short Term Exposure Limit (STEL) - A fifteen (15) minute TWA exposure which should not be exceeded at any time during a working day even if the eight (8) hour TWA average is within the TWA exposure standard. Exposure at the STEL should not be longer than fifteen (15) minutes and should not be repeated more than four (4) times per day. There should be at least sixty (60) minutes between successive exposures at the STEL. c. Peak - A maximum or peak airborne concentration of a particular substance determined over the shortest analytically practicable period of time, which does not exceed fifteen (15) minutes. 5) Explosive (Flammable) Range The range of flammable contaminant/air mixture between the Lower Explosive Limit (LEL) and the Upper Explosive Limit (UEL). 6) Hot Work Welding, thermal or oxygen cutting, heating, and other ignition producing or spark producing operations. 7) Lower Explosive Limit (LEL) In relation to a flammable contaminate, this is the concentration of the contaminant in air below which the spread of a flame does not occur on contact with an ignition source.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued 8) Stand-by Person A competent person assigned to remain on the outside of, and in close proximity to, the confined space and capable of being in continuous communication with and, if practicable, to observe those inside, initiate rescue procedures and operate equipment used for entry to the confined space, where necessary. 9) Sufficient Oxygen The minimum oxygen content in air should be 19.5 % by volume under normal atmospheric pressure. 6. Risk Assessment A. Risk Identification For any work proposed, all confined spaces shall be identified, signposted and physically secured and it should be determined whether the work proposed can be undertaken from outside, that is, whether entry of persons to the confined space is necessary. If it is decided that such work can be undertaken from outside, then precautions should be taken to physically prevent unauthorized entry to the confined space. B. Major Hazards Fatalities or severe injuries could occur as a result of the following: 1) Oxygen deficiency in the confined space caused by: a. Slow oxidation reactions of either organic or inorganic substances. An employer shall ensure that before carrying out work involving entry to a confined space, a written risk assessment is carried out by a competent person and takes into account the following: 1. The work to be done, including whether it is necessary to enter the confined space. 2. The methods by which the work can be done. 3. The hazards involved and associated risks. 4. The actual method and plant proposed. 5. Rapid oxidation (combustion). 6. Dilution of air with an inert gas. 7. Absorption by grain, chemicals or soils. 8. Physical activity. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued b. The presence of contaminants on surfaces or in the atmosphere. Contaminants may be in the form of solids, liquids, sludge’s, gases, vapors, fumes or particles. The source of atmospheric contaminants encountered may include: 1. The product stored. (For example, disturbing decomposed organic material in a tank can liberate toxic substances such as Hydrogen Sulphide (H2S). 2. The operation performed in the confined space. (For example, welding or brazing with metals capable of producing toxic fumes). 3. Operation of plant and services (For example, being trapped by augers, crushed by rotating or moving parts such as agitators). 4. Drowning by accidental flooding. 5. Suffocation by solids (For example; bulk tanks). 6. Work being conducted in adjacent spaces such as welding and gas cutting. c. Other Hazards Undertaking work in confined spaces may greatly increase the risk of injury from hazards, such as: 1. Noise - This may be caused by hammering or the use of equipment within the confined space. 2. Temperature - either too hot or too cold, which can result from the work process or the weather conditions, or where appropriate ventilation or appropriate clothing is not supplied or worn. 3. Radiation - within a confined space caused by the use of X-rays, radiation gauges, isotopes, lasers and welders. 4. Manual handling d. Factors to be Considered Tasks undertaken in confined spaces can present serious and unique hazards. Therefore, a number of factors need to be considered. These include the following: 1. Arrangements for rescue, first aid and resuscitation. 2. The number of persons occupying the space. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued 3. The number of persons required outside the space to maintain equipment, essential for the confined space task, to ensure adequate communication with and, observation of the persons within the confined space, and to properly initiate rescue procedures. 4. The soundness and security of the overall structure and the need for illumination. 5. The identity and nature of the substances last contained in the confined space. 6. The steps needed to bring the confined space to atmospheric pressure. 7. The atmospheric testing to be undertaken and the parameters to be assessed before the entry permit(s) are issued. 8. All hazards which may be encountered. 9. The status of medical fitness and training of those persons intending to enter the confined space. 10. Adequate instruction of those persons in any work procedure required, particularly those which are unusual or non-typical, including the use and limitations of any personal protective equipment and mechanical or other equipment to be used. 11. The availability and adequacy of appropriate personal protective equipment, protective clothing and rescue equipment for all persons likely to enter the confined space. 12. Whether Signs: A. Comply with SA and International Standards, Policies and Procedures. B. Indicate that entry is permitted only after signing the entry permit in a manner appropriate to the workplace. C. The need for additional protective measures, for example: 1) Prohibition of hot work in adjacent areas. 2) Prohibition of smoking and naked flames within the confined space and where appropriate, the adjacent areas. 3) Avoidance of contamination of breathing atmosphere from operations or sources outside the confined space, such as from the exhaust of an internal combustion engine. 4) Prohibition of movement of equipment such as forklifts in adjacent areas. 13. Whether cleaning is required in the confined space. 14. Whether hot work is necessary. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued 7. Monitoring A. Prior to Entry The evaluation of the atmosphere and a survey of other hazards should be performed outside the confined space before any entry occurs (the results should be recorded on the entry permit). The supervisor shall ensure that no person enters a confined space without a work permit and until the following tasks have been carried out: Test the atmosphere, consistent with the hazards identified in the risk assessment and ensure: 1) The concentration of flammable contaminant in the atmosphere of the confined space is below 0% of its LEL. 2) The confined space contains sufficient oxygen, (i.e. 19.0%). 3) Atmospheric contaminants in the confined space are below the relevant exposure standards. 4) When any of the above cannot be achieved, appropriate personal protective equipment should be used. Note: Only an Authorized Gas Tester, who has attended and passed Confined Space Entry Training, can carry-out the gas test. B. Gas Detectors Flammable gas indicators should as a minimum comply with SA G.I. 2.709. A thorough knowledge of the gas indicators is required and should include the following: 1) Properties of the gas/vapor. 2) Humidity and temperature in the space. Never trust your senses to determine if the air in a confined space is safe! You cannot see or smell any toxic gases and vapors, nor can you determine the level of oxygen present. 3) Presence of airborne contaminants that may reduce the accuracy of the reading or “poison” the sensor. 4) Presence of corrosive gases and mists, which may damage the sensor and give misleading results, causes a false zero reading. 5) Calibration, adjustment and maintenance requirement. 6) Need for recalibration during testing. 7) Condensation and/or absorption of gas into walls of sampling lines where these are used. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued 8) Response of the instrument to high and low concentrations of flammable gas or vapors (for example, false zeros). 9) Oxygen deficiency causing an erroneously low reading. 10) Oxygen enrichment where the instrument may act as an ignition source causing explosion. 11) Difference in atmospheric pressure, which may cause false readings in some sensors. Equipment for continuous monitoring of gases and vapors should be intrinsically safe and equipped with an audible alarm if danger develops. Instruments should be calibrated in accordance with the manufacturer’s guidelines. If an acceptable result cannot be obtained without continuous forced draft ventilation, then the ventilation device should be suitably tagged to ensure it is not disconnected while the inspection or other work is in progress. The standby person is responsible for monitoring the proper operation of the forced draft ventilation device. C. During Entry Because of the potential for latter release of hazardous material, arrangements should be made to monitor or re-test the atmosphere within the confined space. The use of continuous monitors, which have alarms, is the most conservative approach. 8. Control A. Hierarchy of Control Measures, The control measures should consist of: 1) Elimination. 2) Substitution. 3) Isolation. 4) Engineering controls. 5) Adoption of safe work practices. 6) Use of personal protective equipment, where the concentration of flammable contaminant in the atmosphere of a confined space has been found to be greater than 0% of its LEL, the confined space shall not be entered. The hierarchy lists the control measures that should be implemented in the workplace in priority order. Consequently, complete elimination of the need to enter the confined spaced should be the first consideration in controlling risk to workers. It is only if this is not practicable that consideration should be given to the second measure in the hierarchy, which is substitution. Examples of substitution include using: a. A non-flammable solvent in place of a flammable one. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued b. A detergent in place of a chlorinated solvent for cleaning. c. Water based paint in place of an organic solvent-base. d. Brush application of paint rather than aerosol or spray application. e. Pastes instead of powders. This process of progressively applying the elements of the hierarchy of controls should continue until the risks have been reduced to acceptable levels. It may be necessary to use a combination of control measures to eliminate or minimize the risk to workers. Personal protective equipment should only be used as a last resort when all of the other control measures have failed to adequately control the risk. B. Isolation Requirements Prior to any employee entering a confined space, the employer shall ensure that all potentially hazardous services, including all process services, normally connected to that space are positively isolated in order to prevent: 1) The introduction of any materials, contaminants, agents or conditions harmful to people occupying the confined space; and It may be necessary to withdraw a confined space from service before it is prepared for entry and that all persons who may be involved with the repair, maintenance or operation of the confined space are advised. Positive steps should be taken to achieve the following: a. Prevention of accidental introduction into the confined space of materials, through piping, ducts, vents, drains, conveyors, service pipes or fire protection equipment. b. De-energisation and Lock-Out/Tag-Out (LOTO) de-energisation and tag-out or both of machinery, mixers, agitators or other equipment containing moving parts in the confined space. c. Isolation of all other energy sources which may be external to, but still capable of adversely affecting the confined space, for example heating and/or refrigeration methods. C. Methods of Isolation 1) Hazardous Materials No personnel shall be allowed to enter a confined space until positive means are established to prevent all energy sources from entering the confined space area or causing associated equipment to operate while work continues .All isolations shall be conducted under the SWAP or PTW and LOTO Procedure. Listed below are three (3) methods of isolation. However, alternative methods may be used if equivalent security can be achieved. a. Removal of a valve, spool piece, an expansion joint in piping leading to, and as close as possible to, the confined space and blanking or capping the open end of the piping leading to the confined space. The cap or blank should be identified to indicate its purpose. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued b. Insertion of a suitable full-pressure spade (blank) in piping between the flanges nearest to the confined space. The spade should also be identified. c. Where neither method above are practicable, isolation by means of closing and locking, or closing and tagging, or both, of at least two valves in the pipe leading to the confined space shall suffice. 2) Before entry is permitted to any confined space which itself can move, or in which agitators, fans or other moving parts which may pose a risk to personnel are present, movement shall be prevented by an approved means or an alternative method offering the equivalent security. Where practicable, equipment or devices with stored energy such as hydraulic, pneumatic, electrical, chemical, mechanical, thermal or other types of energy should be reduced to zero energy. a. The person entering the confined space or the competent person should place a lock or tag, or both, on the open circuit breaker or open isolating switch supplying electric power to equipment with hazardous moving parts. This will indicate that a person is in the confined space and that such isolation shall not be removed until all persons have left the confined space. When a lock is used, the key shall be kept in the possession of the competent person. Spare keys should not be accessible except in cases of emergencies. b. Where a power source cannot be isolated, controlled readily or effectively, a belt of other mechanical linkage shall be disconnected and tagged to indicate that a person is in the confined space and that the linkage shall not be reconnected until all persons have left the confined space. c. Where the methods in item a) and b) above are not practicable, moveable components shall be blocked, and switches, clutches or other controls shall be tagged to indicate that a person is in the confined space. The blocks and tags should not be removed until the person has left the space. d. Where more than one person is in the confined space, the isolating device shall be either: 1. Locked and tagged, or both, by each person entering the confined space. 2. Locked and tagged, or both, by the Competent Person. 3. Where locking or tagging is undertaken by the Competent Person, each person entering the confined space shall verify or have it verified to him/her that isolation is effective prior to his entry. 4. Removal of Isolation: The locks, tags, blanks or other protective systems shall only be removed be the person who installed them or by the Competent Person, after confirming that work has been suspended or completed and all persons have left the confined space. All SWAP or PTW and Isolation certification shall be closed.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued D. Ventilation 1) There are two main types of ventilation techniques, these are: a. Natural. b. Mechanical or forced. 2) Either means of ventilation should be employed while confined space entry is taking place to establish and maintain a safe breathing atmosphere. This ventilation should be continued throughout the period of occupancy as a safeguard against unexpected release of contaminants. It should be noted that for natural ventilation to be effective, there must be two ventilation points, one at low level and one at high level, each must be of similar square area in opening. Mechanical ventilation equipment may not be adequate or sufficiently reliable to maintain a safe atmosphere in the operators breathing zone, particularly during operations likely to generate toxic contaminant. Where maintenance of a safe breathing atmosphere in a confined space is dependent on mechanical ventilation equipment, for example, a fan, then the equipment should: a. Be continuously monitored while the confined space is occupied. b. Have the controls (including any remote power source) clearly identified and tagged to prevent against unauthorized interference. Exhaust facilities should be arranged to ensure that any contaminated air removed from the confined space does not present a hazard to persons or equipment. Nor do the emissions from equipment such as petrol or diesel engines enter the confined space. The use of oxygen above concentrations of 21% shall not be used for ventilation. E. Cleaning Prior to Entry All substances, which are likely to present a hazard to persons inside the confined space, should be removed as far as possible prior to entry. Potentially dangerous material may be trapped in sludge, scale or other deposits, behind loose linings, in liquid traps, or in instrument fittings, and may be released only when for example, it is disturbed or heat is applied. Similarly, such material may lodge in joints in vessels or in the bends of connecting pipes, or other places where removal is difficult. Procedures and processes to be used to clean the inside of a confined space should be reviewed and authorized prior to entry. The method to be used will depend upon the material in the confined space and the potential hazards that may be created by the cleaning process itself. Contaminants should be disposed of in a manner that will not constitute a hazard. The following are some general practices to be observed: 1) Whenever practicable, initial cleaning should be performed from outside the confined space. Such initial cleaning should continue until the hazard of atmospheric contaminants has been reduced as far as reasonably practicable possible.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued 2) Each person entering the confined space should be provided with suitable protective suits, impervious footwear, a safety helmet with face shield, protective gloves and, where necessary, an appropriate respiratory protective device. 3) Hydro jetting the following general precautions should be observed when hydro jetting is undertaken in a confined space. a. Hydro jetting should always be carried out by trained personnel. b. Warning signs indicating that hydro jetting is in progress should be displayed in conspicuous locations outside the confined space. c. The area affected by the hydro jetting should be barricaded while work is in progress. d. Where there is a possibility of a flammable environment, the nozzle of the hydro jetting equipment should be earthed to decrease the generation of static electricity. e. Nozzle operators should have direct visual or audible communication with the pump operators. f.

Removal of fluids from the confined space should be continuous during operation.

g. A high pressure/low pressure volume gun should be used to intermittently clean, rather than operating continuously, thus allowing adequate replacement of air. All high pressure cleaning equipment should be fitted with actuating devices, which require positive effort, by the operator’s hand or foot to keep the supply valve open. In addition, the following recommendations should be observed: 1. Hoses used for high pressure cleaning should have a bursting pressure of at least twice that of the operating pressure. 2. Hoses should be tagged to indicate the working pressure and age. 3. Hoses with exposed reinforcing wire should be disposed of immediately. 4. Care should be taken when laying out hoses on the ground to avoid constant pulsation damage, especially from corners. 4) Steam cleaning the following precautions should be observed: a. Where there is a possibility of a flammable environment, the pipe or nozzle of the steam hose should be bonded to the confined space enclosure to decrease the generation of static electricity. b. Where oxygen is present in the confined space, steam temperatures should be significantly lower than the auto-ignition temperature of previously stored products.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued c. The confined space should be allowed to return to an acceptable thermal environment prior to entry. 5) Abrasive Blasting Cleaning by abrasive blasting should only be undertaken where suitable air supplied respirators are used. Further consideration should also be given to: a. Illumination and visibility adequate to allow safe working to continue. b. Protection of the breathing airline to the respirator. c. Escape equipment. d. Actuating devices, which require positive effort by the operator to keep blasting apparatus, supply valve open. 6) Chemical Cleaning In addition to creating toxicity hazards, chemicals used in cleaning operation may also be capable of producing a flammable atmosphere. Accordingly, the safety of the atmosphere should be re-evaluated after cleaning and prior to the commencement of further work. F. Purging Prior to Entry Care should be taken in the purging of a confined space to preclude rupture or collapse of the enclosure due to pressure differentials. When flammable contaminants are to be purged, purging and ventilation equipment designed for use in hazardous locations should be employed and precautions taken to eliminate all sources of ignition. Any methods employed in purging should ensure that any contaminants removed from the confined space are exhausted to a location where they present no hazard. Where appropriate, the confined space shall be cleared of contaminants by use of a suitable purging agent. An employer shall ensure that oxygen or gas mixtures are not to be used for purging or ventilation. Where supplied-air-breathing apparatus is not used, precautions should be used to establish and maintain a safe breathing atmosphere. G. Issue of Permits / SWAP The permit / SWAP should state the period of its validity and should be replaced whenever it becomes evident that the duration of work will involve one of the following: 1) A change in the supervisor. 2) A significant break in work continuity. 3) A significant change in atmosphere or work. The permit should be displayed in a prominent position to facilitate signing and clearance.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued H. Standby Persons It is essential that communication and observation between those in the confined space and the standby person(s) be constantly maintained. Communication can be achieved, dependent on the conditions existing in the confined space, by a number of means, including voice, radio hand signals and other appropriate means. Where it is expected that the person entering the confined space and the standby person may change places then authorization shall be required on the permit to do so. The maximum and minimum standby persons should also be recorded on the permit. The supervisor ensures that no person enters the confined space unless standby person(s) outside the confined space are maintained and relieved as required. The supervisor, prior to any person entering the confined space, and during any occupancy of the space, shall ensure appropriate signs and protective barriers are erected to prevent entry of people not involved in the work. A stand-by man shall be assigned the duty of watching the persons working inside the confined space during the time they are inside. The duties of the stand-by man are: 1) He shall have no responsibilities other than to continually watch those inside the confined space and observe their condition and, also, be alert to any need for rescue or other assistance by those inside. 2) He shall be in such a position as to physically observe the condition of every person inside the confined space. 3) He shall have the means (winching equipment or adequate nearby personnel) to rescue any personnel from inside the space. 4) He shall have adequate personal protective equipment available so if it should become necessary to aid those inside the confined space, he can enter the area safely. I.

Safety Equipment Personal protective equipment should only be used as a last resort when all other control measures in the hierarchy are either inadequate or impractical. Competent and well-experienced persons only should decide on the appropriate protective equipment to be used in the confined space. All protective equipment should fit the individual who uses it and the following points should at least be considered: 1) Results of the evaluation of the atmosphere including testing. 2) The process to be conducted within the confined space. 3) The contaminants that may be encountered. 4) The extra load placed on workers when wearing personal protective equipment, which can lead to serious health effects.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued The following should act as a guide as to the protection to be considered. An employer shall, where appropriate, provide suitable safety equipment for: a. Personal protection. b. Rescue. c. First Aid. d. Fire suppression. The equipment shall be appropriate to the work to be carried out in the confined space and shall be maintained in a proper working condition. Personal protective equipment and rescue equipment shall, where appropriate, be selected and fitted to suit the individual (Refer to HSERM / B / B-3 / PPE). J. Maintenance of Personal Protective Equipment It is essential that proper maintenance is an integral part of any personal protective equipment program to ensure that the user receives the required level of protection at all times. Failure to provide the proper cleaning and maintenance can have serious health effects, or possibly result in death. A proper maintenance program should include procedures for: 1) Regular cleaning and disinfecting of the equipment. Equipment worn by more than one (1) worker should be cleaned and disinfected after each use. 2) Drying the equipment. 3) Inspection for any defects. 4) Identification and repair, or replacement, of any used, consumed, worn or defective components and/or equipment. 5) Clean storage of equipment when not in use. 6) Employee’s report damaged defective or lost equipment to a competent person responsible for the repair or replacement. 7) Ensuring supplies of disposable protective equipment are continually available to all users of the equipment. K. Other Equipment 1) Hoses supplying gas operated equipment used in the confined space should be located, suspended or otherwise guarded to avoid accident damage.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued 2) Where a portable ladder is used, particular care should be taken to ensure it is adequately constructed and firmly secured to prevent movement. 3) Atmospheric testing and sampling equipment, oxygen meters, explosi-meter, any special ventilating equipment etc. should all be regularly maintained to prevent them being the cause of other hazards (i.e. intrinsically safe etc.). 4) All electrical equipment connected to an external supply to be used in a confined space should comply with API 500, D&WO / DOE&CD / SWIM-001 / Section No.46 / EW and D&WO / DOE&CD / SWIM-001 / Section No.48 / H&PT. 5) Portable electrical equipment should: a. Be connected, individually or collectively, to earth-free extra low voltage supply from an isolating transformer with the transformer located outside the confined space. b. Be protected through a residual current device, with the device being located outside the confined space. c. Additionally, the equipment should be fitted with a flexible supply cable, not inferior to heavyduty type. Where available, it is recommended that all insulated electrical tools be used. L. Safety Harness 1) Each person entering the confined space shall wear a Confined Space Entry safety harness with an attached life-line, except in those rare cases where a life line would increase risk. Such cases must be approved by the PIC (person in charge) and the SA Liaisonman. 2) Suitable safety harnesses come in various types and designs for different purposes and great care should be taken when selecting such equipment. In making such an assessment it is advisable to consult the supplies. A Confined Space Full Body Safety Harness shall be worn at all times when in a confined space. There are various reasons for this requirement: a. Rescue by a direct vertical or horizontal route is practicable. b. There is a hazard of falling during ascent or descent. 3) Safety harnesses and lines should not be used as the sole means of entry or exit to and from a confined space where alternative methods are available. 4) All harnesses should be capable of attachment to a line by means of a “Karabiner” or similar device. 5) Great care must be taken to visually inspect the harness prior to use. Any signs of fraying, cutting or loose stitching should render the harness out of commission. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued 6) The supervisor shall ensure that: a. Openings for entry and exit are of adequate size to permit rescue of all persons who may enter a confined space. b. These openings are not obstructed by fittings or equipment, which could impede rescue, or provide for suitable alternative means of rescue. M. Rescue and Rescue Equipment 1) Method: The removal of trapped, injured or unconscious people from confined spaces is extremely difficult, but invariably involves the use of Rescue line techniques (or Single Line Rescue Techniques - SRT). The use of mechanical lifting equipment should be considered and a Confined Space Entry and Work Tripod is on site before entry to the confined space is permitted. Danger is inherent in these activities. Meticulous attention to detail, knowledge of procedures and high standards of training will minimize risk. Safety standards are not a substitute for foresight, prudence, common sense and experience in the implication of SRT activities. 2) Rescue methods and equipment to be used must be determined (and documented) before commencement of the job. 3) Personnel who are suitably trained in rescue and first aid procedures (Rig Medic) and are to be utilized in the event of any emergency. 4) Entry and exit points to confined spaces must be of adequate size to permit rescue of all persons who may enter a confined space. These openings are not to be obstructed by fittings or equipment which could impede rescue. 5) Standby persons must be equipped with a suitable means of communication. N. Equipment Standards 1) Inspection of and Damage to Equipment; the following precautions are to apply for the inspection and replacement of damaged equipment: a. It is the responsibility of all persons participating to continually check equipment before and during use. b. Equipment that has been damaged or becomes unsafe due to age/wear and tear must be condemned for use immediately. 2) Storage of Equipment All SRT equipment is to be stored separately from all other items in a wellaired area away from fuels, chemicals and released for SRT activities only.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-21 / CS / Continued 9. Definitions, Abbreviations and Acronyms: Refer to HSERM / A / A-1 / DA&A. 10. References: Refer to HSERM / A / A-2 / RM.

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Section A / Administrative Requirements D&WO HSE Requirements Manual

A-22

Incident Reporting and Analysis

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / Incident Reporting and Analysis (IR&A) 1. Purpose This procedure is aligned with D&WO SMS Element No.9 / Incident Reporting and Analysis. procedure details the process for timely investigation and reporting of all incidents and near misses.

This

A. To ensure that personnel who sustain injury or become ill receive the best possible care as soon as possible. B. To establish guidelines for investigating incidents and near misses that ensure: 1) Immediate notification. 2) Timely investigation that gather the facts while they are fresh. 3) Fact finding, not fault finding. 4) Focus on prevention (what can we do to prevent recurrence?) 5) Interview of employees. 6) Site visit by investigator to review the equipment, positions of workers, tools involved. 7) Determine the direct cause. 8) Determine the indirect cause(s). 9) Determine the basic (root) cause(s). 10) Develop two (2) or more specific corrective actions to prevent recurrence based on root causes. 11) Track corrective actions to closure. 12) Verify corrective action closure. C. To provide guidance in the preparation, dissemination and review of incident reports.

2. Scope A. The scope of this procedure is applicable to: 1) Saudi Aramco Rigs (SAR). 2) Contractor rigs and Service companies not using an approved incident investigation and reporting process.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued 3) This procedure does not apply to company fleet motor vehicle accidents or to injuries or fatalities which result from these accidents. B. This procedure does not supersede or replace local or plant disaster plans. C. This procedure does not supersede corporate requirements. Where this procedure conflicts with corporate requirements, corporate requirements shall apply.

3. Responsibilities It is the responsibility of the Saudi Aramco (SA) Liaisonman/Foreman to ensure that all incidents involving injuries, illnesses, environmental spills, property damage, fire or near miss incidents which occur at the rig site, the associated rig camp or non-routine rig operations (i.e. rig moves) are reported as soon as practicable to the SAR Superintendent and Drilling Operational Excellence & Compliance Division (DOE&CD). Within one hour of being made aware of an incident, the SAR Superintendent is responsible for making notification to executive and staff functions as per G.I.6.001-Sec. 4.1. (Reference; HSERM / A / A-22 / IR&A / Appendix No.3 / Preliminary Incident Notification Matrix). A. Manager 1) Ensure that all Division Units will appropriately report and investigate (as per G.I.6.001) all incidents in a timely manner. 2) Ensure incidents shall be classified by the affected department to define the levels of notification, investigation, and recording activity that are required by SA and the Saudi Arab Government. Three categories (MAJOR, MODERATE AND MINOR) are used as per section 3 of G.I.6.001. In doubtful cases the Loss Prevention Department shall provide guidance on the incident category and investigation level. 3) Take immediate action when any injury or potential major incident is found to have occurred but was not reported. Determine the factors that contributed to the non-reporting. 4) Ensure major and moderate incidents, per the classifications stipulated in section 3 of G.I.6.001, are properly reported according to the requirements of sections 4 and 5 of G.I.6.001. 5) Follow the requirements stipulated in section 3 of G.I.6.001 when assigning / determining classifications of incidents. 6) Appoint the chairman for committees investigating Moderate Incidents in accordance with G.I.6.003. 7) Appoint investigation teams as deemed necessary for other incidents.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued 8) Ensure that the department has in place a system to track and update all safety recommendations and corrective actions. The status of these recommendations shall be reviewed as charted in “Safe Operations Committee”.

9) Communicate and encourage his division heads to communicate the details of incidents and corrective actions at local level meetings, such as in Safe Operations Committee meetings, Quarterly Safety Inspections, e-mails etc. 10) Communicate details of incidents and associated corrective actions in MIS meetings to share the lessons learned with other departments. 11) Ensure that an investigation is conducted to determine the underlying causes of an incident, record factual information relating to the incident and make recommendations aimed at preventing recurrence. Such analysis is presented and discussed in the Safe Operations Committee meetings. 12) Ensure that the department training policy mandates training for incident reporting responsibilities. 13) Ensure that division and unit heads receive training in incident investigation techniques. 14) Conduct an internal review annually of the department records to verify that incidents are properly investigated. B. Division heads 1) Per G.I. 6.001, section 4.1, within one hour of being made aware of an incident, the Rig Superintendent shall notify certain required organizations by telephone, fax, messenger, e-mail or any other mean of communications (see Attachment 1, Preliminary Incident Notification Matrix). 2)

Ensure that all required injury data from the incident for Saudi Aramco (SA) or SMP employee are entered into SAP EH&S per G.I. 6.005.

3) Encourage and support open and honest reporting and investigation of incidents within his facilities. 4) Ensure all Unit Heads are aware of and familiar with the provisions of Drilling and Workover (D&WO) SMS Element No.9 (Incident Reporting and Analysis). 5) Evaluate the Unit heads incident reporting skills by participating in minor incident or near miss investigations. 6) Take immediate action for any injury or potential major incident that is found to have occurred but was not reported. Determine the factors that contributed to the non-reporting and provide corrective action recommendations that address the cause. 7) Review and approve investigation reports for investigations conducted in his facilities in accordance with G.I.6.003.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued 8) Ensure adequate resources are provided to support and maintain the investigation program. 9) Appoint investigation teams for other incidents as deemed necessary for incidents occurring in their division. 10) Verify all action items resulting from investigations, engineering reviews, insurance surveys, compliance reviews, near-misses and emergency drills are implemented. Monitor any other necessary follow-up action until it is completed. 11) Conduct incident tracking analysis for the facilities under his responsibility, analyzing internal trends to determine frequency and severity. 12) Use incident trends and analysis to identify areas of improvements in safety management processes. 13) Ensure incident information from outside sources and from Loss Prevention Department is analyzed if deemed applicable to his facilities. 14) Include statistical safety analysis in presentations delivered in the Safe Operating Committee meetings. C. Liaisonman/Foreman 1) Promote immediate reporting of all near misses by communicating to employees and contractors, the positive aspects of near miss reporting. This can be accomplished through positive reinforcement at safety meetings. 2) Ensure that all employees and contractors working for SA within D&WO facilities are aware of their incident reporting responsibilities to the SA person in charge. This will first be communicated during the site safety orientation. 3) Report all injuries, spills, unsafe conditions, near-misses and incidents to his Division Head. 4) Take immediate action for any injury or potential major incident that is found to have occurred but was not reported. Determine the factors that contributed to the non-reporting and submit the information to the Division Head who will determine the corrective action that will be applied. 5) Investigate all incidents in their area of responsibility. 6) Upon notification of a near-miss, determine if additional investigation is required and arrange for the investigation to be completed in a timely manner. 7) Ensure recommendations from incident investigation are tracked and completed on time. 8) Communicate lessons learned to all employees. 9) In case of major incidents (per G.I.6.001), ensure the following measures are taken: SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued a. Area is secured and off limits to personnel except those involved in handling the incident. 1. Secure the immediate area. 2. Preserve evidence. 3. Record the incident scene with photographs. b. D&WO management shall ensure, through the area Industrial Security manager, that the scene of the incident is secured and that access to the scene is limited to those authorized by him, with the concurrence of the investigation committee chairman and, when applicable, by appropriate Saudi Arab Government personnel. c. Prior to the arrival of the investigation team, ensure the incident site is secured to protect materials or preserve evidence (unless necessary in initial recovery efforts) until released by the Department Manager. d. Identify potential witnesses and have each witness independently write a statement describing what happened. e. Provide accommodation, office space and standard office provisions (computer, supplies) for team members. 10) Provide corrective actions for every unsafe act, condition or near-miss reported in his area of responsibility. 11) Conduct regular reviews to verify that corrective actions have been completed. 12) Ensure all corrective action recommendations are Specific, Measurable, Achievable, Reasonable and Timely (SMART). 13) Ensure corrective action recommendations and lessons learned from incidents are communicated to his employees and contractors. D. SAMSO and Treating Physicians SAMSO is responsible for addressing any questions or concerns pertaining to whether an injury to a SA employee is serious enough to warrant no duty or restricted duty as opposed to regular duty, or the duration of the absence authorized. This responsibility will be extended to the offsite treating physicians who treat non- SA personnel for work related injuries that occur on any D&WO rig or facility. For example, if the attending physician specifies in the Medical report that the injured employee is being given a day off (in addition to the remainder of the day of the injury) then it would be considered a lost workday case (either LTI or ODI) irrespective of the fact that in some cases the injured employee returned to work on the days off given to him by the physician.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued E. DOE&CD DOE&CD is responsible for the final classification of all Injury/Illness incidents. In the event of a dispute over the classification of an Injury/Illness, the Drilling General Manager, using the guidance of the “OSHA Recordkeeping Handbook” published by the U.S. Department of Labor and/or the “IADC Incident Statistics Program Reporting Guidelines”, will determine the final classification.

4. Incident Reporting Procedure A. Employee or witness to an incident informs his supervisor. B. The supervisor notifies the SA Liaisonman/Drilling Foreman (Rig foreman on SAR rig). C. The Medic provides treatment as required. D. Liaisonman/Foreman notifies SA Rig Superintendent and if required, arranges for the evacuation of injured or ill person. Injured/ill persons shall be accompanied to clinic/hospital by medic, another employee or 3rd party representative, depending on seriousness of the injury or illness. E. The Liaisonman/Foreman shall notify the SAR rig Superintendent for all Loss Time Incidents (LTI’s) and property damage exceeding $99,000 as soon as practicable but in no case more than eight hours after he has been advised. 1) For incidents involving SAR rigs, the SAR Foreman will supervise the investigation and submit all required documentation to the SAR Superintendent and the Department incident administration function. 2) For Incidents involving Contractor rig employees or equipment, the SA Liaisonman will ensure that the Contractor conducts a thorough investigation as per the contractor Investigation policy and provide a complete investigation report. This report will be sent to the SAR Rig Superintendent and the Department incident administration function. 3) For Incidents that occur on a contractor rig involving Service Company employees or equipment, the Liaisonman/Foreman will ensure that the Service Company conducts a thorough investigation as per the Service Company Investigation policy and provide a complete investigation report. This report will be sent to the SAR Rig Superintendent and the Department incident administration function. 4) Any injury/incident that is found to have occurred but was not reported will be reviewed by Drilling Management to determine the factors that contributed to the non-reporting. 5) If investigation assistance is needed, the assigned department Safety Advisor will call the rig back to offer advice and to assist with SA protocol. If necessary, a Safety Advisor will be dispatched to the location. 6) Motor vehicle accidents involving SA vehicles shall be reported as per G.I.6.029. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued a. A motor vehicle accident is any occurrence involving a SA motor vehicle that results in death, injury, or property damage. All motor vehicle accidents, including those cases where the vehicle was properly parked, where the vehicle is driven by unauthorized non-company personnel, or where it is being test driven by a maintenance contractor should be reported to the Loss Prevention Department through the SAP EH&S The Loss Prevention Department will determine record ability per the guidelines listed in Supplement 6.029-3 and ANSI D15.1. b. When a motor vehicle accident occurs, the driver must obey the latest Traffic Regulations of the Saudi Arab Government. One current regulation is that vehicles involved in an accident shall not be moved from the scene of the accident until released by the Police or a SA Industrial Security representative. 7) Incidents involving mobile equipment, cranes or man baskets shall be reported as per G.I.7.026. a. Lifting, elevating and mobile equipment accident reporting shall cover all equipment contained in G.I.7.026 - Section 3.0 (referenced standards), with the following as notable examples: Bulldozers Cranes, all types’ Rigging Below the hook lifting devices

Skid mounted support equipment Tractor-scrapers Graders

Forklift trucks Man baskets Aerial platforms

Backhoes Elevating equipment Overhead hoists

Wheel loaders

b. The Division Head (Superintendent) shall, within one hour of being aware of an incident, notify the Roads and Heavy Equipment Division area Superintendent and also Loss Prevention Department / Loss Prevention Exploration and Development Unit. c. The Division Head shall electronically create and submit an initial “crane or heavy equipment” incident report using the SAP EH&S system within 24 hours of the incident. d. The operator's supervisor shall obtain written statements from the equipment operator and witnesses. 8) Fire or explosion incidents shall be reported as per G.I.1787.000 and G.I.6.001. a. The definitions for Fire and Explosion found in Section 2.0 of G.I.1787.000 shall apply. b. All fires and emergencies involving non-SA facilities that are attended by the Fire Protection Department are subject to the reporting protocol of G.I.1787.000. c. The proponent (unit head or higher) of a SA facility involved in a fire or emergency response shall, within 48 hours of the incident, respond through EH&S-SAP to Part No. 2 of SA form SA2437, "Report of Fire or Emergency". SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued 9) Hydrocarbon leaks and oil spills shall be reported as per G.I.2.104 (offshore) and G.I.2.401 (onshore). a. All offshore leaks and/or spills shall be immediately reported regardless of size or potential impact. The level of Management notification, Oil Spill Response Team activation and cleanup response initiation shall be decided by the respective area Regional Oil Spill Response Coordinator in consultation with the Global Oil Spill Response Director (GOSRD), as it may deem necessary. Note: Reference HSERM / A / A-22 / IR&A / Appendix No.1 / Reporting Offshore Oil Spills. b. In general, the person reporting the spill should provide the following information: 1. Name of person reporting and /or observing the spill. 2. Badge number. 3. Contact number. 4. Date and time. 5. Location of spill. 6. Size (length and width), colors (i.e. silver sheen, rainbow, brown, black) and area covered. 7. Source and cause of spill. 8. Weather conditions: wind speed and direction, visibility and sea conditions. 9. Action being taken. c. All onshore leaks and/or spills shall be reported to Industrial Security through 110. 10) Damage or loss over $5000 to SA property shall be reported as per G.I.6.001.

5.

Reporting Forms For each incident that occurs, as a minimum, the following reports must be completed: A. SA Liaisonman to report on Morning Report in “Remarks” section, all reportable events. B. The SA Preliminary (24 hr.) Incident Report Form shall be completed by the SA Liaisonman/Foreman for all incidents and forwarded to the SAR Superintendent, Department incident administration function and DOE&CD. The SA Preliminary (24 hr.) Incident Report Form will automatically be generated by data entry in the ORBITS database.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued C. For “Injury Incidents” involving SA employees and SA Supplemental Manpower, the SAR Liaisonman/Drilling Foreman shall enter the injury data from the incident into SAP EH&S within 1 working day of the incident. (Refer to G.I. 6.005 Supplement No.2 for codes). 1) SAR Rigs shall use the Incident Investigation Report Form - IIR Form No.001 (Refer to HSERM / A / A-22 / IR&A / Appendix No.2), for all investigations except Near Miss incidents and attach it to the preliminary report filed in the ORBITS. 2) All rigs shall use the ORBITS database to report Near Miss incidents. 3) Contractor Rigs shall follow the direction of their Incident Investigation and Reporting process to produce a final investigation report. This report shall be reviewed by the Liaisonman/Foreman and attached to the preliminary report filed in the ORBITS database. D. SA Incident Investigation Report Form (Refer to HSERM / A / A-22 / IR&A / Appendix No.2) (for SAR rig investigations) or the contractor Investigation form (for contractor and service company investigations) shall be submitted by the SA Liaisonman to the SAR Superintendent and DOE&CD when the investigation has been completed. E. Incident Investigation Report Form (Refer to HSERM / A / A-22 / IR&A / Appendix No.2) 1) All sections of the report form must be completed wherever appropriate. G. Use the drop down menu. H. Use the incident matrix (Refer to HSERM / A / A-22 / IR&A / Figure No.1 / Incident Matrix) to identify the matrix code in the given areas in the Incident Investigation Report Form (Refer to HSERM / A / A-22 / IR&A / Appendix 2). Use the matrix to identify both the matrix code for the actual incident and the potential matrix code. This will assist to ascertain the severity or potential severity of the incident. Note: High Potential Impact Incidents (HI-PO) - All C-1/2/3/4-111 Incidents will be investigated and a Root-Cause-Analysis (RCA) will be completed by DOE&CD. 4) The completed reports shall be sent via e-mail to the SAR Superintendent for review, signature and copied to D&WO - DOE&CD. For administration purposes, include in the e-mail subject line the following information, in this sequence; Rig name/number, incident type (FTL, LTI, RDI, MTC, FAT or near miss) and date. Example; PA-858, MTC, 21st February 2006. 5) The SAR Superintendent shall ensure the form is completed. 6) The SAR Superintendent shall sign the final report and send the completed form to D&WO DOE&CD. F. For offshore rigs the following minimum threshold events require a notification of marine casualty to at least one of the three flag states; Vanuatu, Panama and/or the United States (Refer to HSERM / A / A-22 / IR&A / Appendix No.1): SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued 1) Injury to Personnel. 2) Loss of Life. 3) Physical damage to property in excess of $25,000.00 USD. 4) Any incident causing damage to a vital system. 5) Any release into the water of a substance harmful to the environment. 6) Any other damage affecting the seaworthiness or operational capability of the rig. Other Statutory or Coastal States reports may be required by authorities in the rig’s operational area and, if required, shall be completed by the PIC.

6.

D&WO ORBITs Tracking System The DOE&CD-SCU Administrator shall: A. Review each Minor and Moderate incident based on HSERM / A / A-17 / RMM. B. Ensure the implementation of the recommendation in each incident are S.M.A.R.T. C. Ensure each incident is tracked with the individual significant tracking number. D. Review and distribute progress reports to each DOE&CD / Safety Compliance Unit (SCU) / Lead Field Compliance Coordinator.

7. Classification of Injury and Illnesses Classification of work and non-work related personal injuries and illnesses are summarized and briefly described as follows (Reference; SA G.I.6.005 (Reporting, Investigation and Recording of Injuries / Occupational Illnesses) and G.I.6.007 (Reporting of Contractor On-Job Injuries / Occupational Illnesses): A. Total Recordable Injury/Illness Cases (TRC’s) TRC’s include all recordable injuries/illnesses as defined by OSHA including FAT’s, LTI’s, RDI’s and MTC’s. B. FAT – On-The-Job Fatality An On-The-Job injury or occupational illness that results in fatality. A FAT is a recordable incident.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued C. LTI - Lost Time Injury/Illness Case (LTI) An On-The-Job injury or occupational illness that involves one or more days away from work beyond the day the injury or illness occurred. Illness includes diseases or rashes that may be caused by inhalation, absorption, ingestion or direct contact. The exposure may have taken place over a period of time or resulted from a single incident. Some examples include noise induced hearing loss, dustdisease of the lung, respiratory conditions due to toxic agents, poisoning (such as H2S and other gases), disorders due to physical agents (other than toxic materials) such as heatstroke, heatexhaustion, dehydration, or other environmental factors, and illnesses to medical professionals as a result of exposure to patients. LTI replaces the Industrial Disabling Injury (IDI) to align with standard industry practice and to allow for better performance comparisons (e.g., IDI included On-The-Job fatalities while the LTI does not.) NOTE: Time away from work on the day of the incident is not considered in determining Lost Time Incidents (LTI). Time spent traveling, undergoing evaluation, awaiting medical evaluation results, or otherwise seeking medical treatment should not be counted as a Lost Time Incident (LTI) when considering LTI classification. D. Off-The-Job Disabling Injury Case (ODI) Any injury suffered by an employee that does not arise out of and in the course of employment and which results in death or day(s) away from work. Reference: ANSI Z16.3-1997 – Recording and Measuring Employee Off-The-Job Injury Experience. E. Restricted Duty Injury/Illness Case (RDI) An On-The-Job injury or occupational illness that results in restricted work or job transfer. The employee cannot perform an activity he/she regularly performs at least once a week. (Example: A sprained ankle resulting in a reassignment from a field to a desk job for 5 days.) Does not include restricted work activity limited to the day of injury or illness. Examples of how to determine a restricted work case are: 1) Employee is kept from performing one or more of the routine functions (work activities the employee regularly performs at least once a week) of his/her job, or from working the full workday that he/she would otherwise have been scheduled to work. 2) A physician or other licensed health care professional recommended that the employee not perform one or more of the routine functions of his/her job, or not work the full workday that he/she would otherwise have been scheduled to work. NOTE: Should an employee experience minor musculoskeletal discomfort such as muscle pains or strains, a physician or licensed health care professional determines that the employee is fully able to perform all of his routine job functions, and the employer assigns work restriction to that employee or restricts the employee’s job functions, for purpose of preventing a more serious condition from developing, the case is not recordable as a restricted work case.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued F. Medical Treatment Injury/Illness Case (MTC) An On-The-Job injury or occupational illness that is more serious than On-The-Job first aid injury (FAI) or occupational illness requiring medical treatment. Example(s): Treatment requiring sutures, prescription medicines, vaccines (hepatitis B, rabies), use of tweezers to remove splinters from eye ( rigid means to immobilize part of body). MTC’s include all cases involving: 1) Given one or more doses of prescription medicine. 2) Given an “over the counter” medicine at prescription strength. 3) Other immunizations that are administered to manage a job related injury or illness such as Hepatitis B or rabies vaccine. 4) Using wound closing devices such as sutures, staples, etc. 5) Physical therapy or chiropractic treatment. 6) Using devices with rigid stays or other systems designed to immobilize parts of the body (does not include any non-rigid means of support). 7) Removing splinters from the eye with tweezers and other complex means. G. First Aid Injury Case (FAI) Any treatment of minor scratches, cuts, burns, splinters and so forth, and any follow-up visit for the purpose of observation. A FAI is not a recordable incident. The following are generally considered first aid treatment: 1) Using a non-prescription medication at non-prescription strength (for medications available in both prescription and non-prescription form, a recommendation by a physician or other licensed health care professional to use a non-prescription medication at prescription strength is considered medical treatment (for recordkeeping purposes). 2) Administering tetanus immunizations (other immunizations, such as Hepatitis “B” vaccine are considered medical treatment). 3) Cleaning, flushing or soaking wounds on the surface of the skin. 4) Using wound coverings such as bandages, Band-Aids TM, gauze pads, etc.; or using butterfly bandages or Steri-StripsTM (other wound closing devices such as sutures, staples, etc., are considered medical treatment). SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued 5) Using hot or cold therapy. 6) Using any non-rigid means of support, such as elastic bandages, wraps, non-rigid back belts, etc. (devices with rigid stays or other systems designed to immobilize parts of the body are considered medical treatment). 7) Using temporary immobilization devices while transporting an incident victim (e.g. splints, slings, neck collars, back boards, etc.). 8) Drilling of a fingernail, or toenail to relieve pressure, or draining fluid from a blister; using eye patches. 9) Removing foreign bodies from the eye using only irrigation or a cotton swab. 10) Removing splinters or foreign material from areas other than the eye by irrigation, tweezers, cotton swabs or other simple means. 11) Using finger guards; using massages (physical therapy or chiropractic treatment are considered medical treatment for record keeping purposes). 12) Drinking fluids for relief of heat stress. H. Near Miss A near miss is defined as an event which did not result in injury or loss, but which had the potential for injury or loss if circumstances had been slightly different.

8.

Incident Rate Calculations The Loss Prevention Department published guidelines for the calculation of Loss Time Incident Rate (LTIR) And Total Recordable Incident Rate (TRIR) are summarized and briefly described as follows: A. Lost Time Incident Rate [Number of Lost Time Incidents (LTI) including Fatalities (FAT) multiplied by 200,000 and then divided by Total Man Hours Worked = Lost Time Incident Rate]. B. Total Recordable Incident Rate (TRIR) [(MTC+RDI+LTI+FAT) multiplied by 200,000 then divided by Total Man Hours Worked = Recordable Incident Rate].

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued C. Total Man Hours This is the total number of hours worked (on tour) by the rig crew (50 personnel, each person works a 12 hour shift, 50 x 12 = 600). Work hours must include all leased labor who are under the direct supervision of the drilling contractor; this includes catering crew. Agency labor performing the duties of regular crew must be included. Third party labor such as service companies (casing crews, Wire line crews etc.) are not considered agency labor and should not be included in the man hours.

9.

Recommendations for Handling and Treatment of Injuries and Illness A. Injured personnel shall be accompanied from the rig by a First Aid trained employee to assist with documentation and to provide care for the injured or ill person. B. The vehicle used for transport of the injured shall, in addition to contractual requirements: 1) Be of sufficient size and suitable to accommodate a stretcher (securing points for a stretcher) and accompanying person (seating) entirely within the body of the vehicle or conveyance. 2) Be clean and well maintained, the vehicle must be operational and comply with Saudi Arabian traffic laws at all times. 3) Protect the injured and the accompanying person. 4) Be designed and equipped such that verbal communication between the operator of the vehicle or conveyance and the injured worker or accompanying person is possible. 5) Be air conditioned. 6) Carry sufficient medical supplies and equipment to facilitate the efficient transportation of the specific injured. (The vehicle will be equipped with the minimum equipment required; the medic may be called on to supply additional equipment, medication as required). C. When immediate transportation of the injured is necessary, the Liaisonman/Foreman shall utilize the most efficient means of transportation. D. All personnel returning from a doctor shall submit to the PIC a full duty release or RWC release before commencing any work related activity. A copy of the release shall be submitted to the Department incident administration function.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued 10. Incident Investigation A. Purpose The purpose of conducting an incident investigation is to determine what happened, why it happened, and ensure that recommendations are made and action taken to prevent a recurrence of similar incidents. The investigation is “fact” finding not “fault” finding and is not intended to assign blame. B. Scope The scope of this procedure is applicable to: 1) Saudi ARAMCO rigs. 2) Drilling Contractors and Service Companies not using an approved Investigation and Analysis process 3) Drilling Contractors and Service companies will comply with the overall guidance of this procedure but will conduct their investigations following the specific directions outlined in their own Investigation and Analysis process. 4) This procedure does not replace the investigative requirements outlined in G.I.6.003. C. Definitions, Abbreviations and Acronyms (Refer to HSERM / A / A-1 / DA&A) 1) Incident An undesired event which could have (NEAR MISS) or did result in harm to people, damage to property or the environment or loss to process. 2) Near Miss A near miss is defined as an event which did not result in injury or loss, but which had the potential for injury or loss if circumstances had been slightly different. 3) Direct Cause This is the basic or fundamental reason for the incident. It should be described as an action that results in an outcome. Example: While POOH, the crown cluster was struck by the traveling block and sustained damage. The “direct cause” was; “The driller raised the traveling block too far and struck the crown”.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued 4) Indirect Cause Conditions that existed prior to the incident that contributed to the direct cause. Example: “The driller raised the traveling block too far and struck the crown”. The indirect cause(s) were: a. The Crown-O-Matic was not set correctly b. The driller did not follow the Crown Saver procedure c. The supervisor did not check the IADC report to verify that the driller tested the crown saver. 5) Basic Cause (Root Cause) The most basic cause (or causes) that can reasonably be identified, that management has control to fix and, when fixed, will prevent (or significantly reduce the likelihood or consequences of) the problem's recurrence. By examining the indirect causes and determining why they are present, you will arrive at the basic cause(s) of the incident. Example: The investigation finds that the Crown-O-Matic was not set correctly (indirect cause) because the driller is new and does not know about the Crown Saver procedure or how to set the COM the basic cause is; “The communication of critical procedures to new hires is Less Than Adequate”. 6) Corrective Action Specific outputs in the form of recommendations that are derived from an investigation. Corrective actions shall conform to the criteria of S.M.A.R.T. (Specific, Measurable, Achievable, Reasonable and Timely) Managers are responsible for closure of corrective actions. Managers will implement all applicable corrective actions to ensure similar conditions do not exist within their areas of responsibility. The decision not to implement a corrective action must be documented and approved by the manager. D. Responsibilities 1) Manager a. Investigate injuries, spills, and other incidents and promptly provide corrective actions. He may achieve this by delegating specific responsibilities to his subordinates. b. Communicate the requirements for incident reporting. This includes encouraging and supporting an environment for open reporting. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued c. Implement all applicable corrective actions to ensure similar conditions do not exist within his areas of responsibility. d. Approve in writing, any decision not to implement a corrective action. e. Communicate details of incidents and corrective actions through SOC and DSLI initiatives. f.

Track the status of all corrective actions until they are completely and effectively closed out.

2) Drilling Superintendent a. Notify the manager of all incidents. b. Provide investigative direction and support to his subordinates. c. Review all recordable incident reports. d. Review the corrective actions of all recordable incident reports. e. Direct investigative resources to assist investigations. 3) SAR Rig Foreman a. Notify the Drilling Superintendent of all incidents. b. Conduct investigations into all incidents. c. Review all recordable incident reports. d. Review the corrective actions of all recordable incident reports. e. Communicate to the workers, the requirements for incident reporting. This includes encouraging and supporting an environment for open reporting. 4) ARAMCO Liaisonman a. Ensure that all incidents are reported. b. Ensure that Drilling Contractors and Service Companies comply with the requirements of this procedure. c. Ensure that Drilling Contractors and Service Companies conduct investigations into all incidents that are within their area of responsibility. 5) Department Safety Advisor a. Assist with incident investigations as requested. SA-DWO-HSERM-AR-001-R0 / Created: 01/13 / Last Review: 01/13 / Next Review: 01/17 Owner: VP-D&WO Revision(s) identified by a Vertical Bar in the Right Margin

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued b. Assuming lead investigator role if requested. c. Providing technical support in determining injury classification, identifying causal factors, root causes and corrective actions. E. General Incident investigations are characterized by: 1) Immediate notification. 2) Incident scene isolation to protect evidence 3) Timely investigation – begin while the facts are fresh. 4) Fact finding not fault finding. 5) Focus on prevention (what can we do to prevent recurrence?). 6) Interview of employees. 7) Site visit – Review equipment, positions of workers, tools involved. 8) Determination of immediate causes (causal factors). 9) Determination of basic causes (root causes). 10) Two or more specific corrective actions to prevent recurrence based on root causes. F. Training 1) All employees will be trained in the basic reporting processes for injuries, spills, fires, MVA’s, near misses, property damage and other incidents. This training will be incorporated into new hire rig orientations. 2) Managers and supervisors will receive training in investigation techniques and completion of reports, including corrective action to prevent recurrence. 3) Safety Advisors and staff identified by the manager will receive training in advanced investigation methods, including root cause analysis. This will prepare them for investigating the less frequent “Major and Moderate” incidents, as defined in G.I.6.003. G. Analysis All incidents will be recorded in the DIH electronic tracking system. The purpose of this system is to allow for analysis of incidents, performance tracking, and trending for loss reduction.

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued H. Periodic Review Department managers will perform an annual internal review of their operations to ensure that: 1) All incidents are reported and an open reporting environment is encouraged. 2) All employees are trained in the reporting process. 3) All incidents are reported in a timely manner. 4) All department supervisors and managers are trained in investigation techniques. 5) Key employees are trained in advanced investigation techniques. 6) Investigation reports are thorough and completed promptly. 7) Corrective actions have been properly implemented. 8) Lessons learned are shared.

11. References: Refer to HSERM / A / A-2 / RM A. ANSI Z16.3-1997 - Recording and Measuring Employee Off-The-Job Injury Experience B. ANSI D15.1 C. G.I. 6.001 - Notification Requirement for Incidents (Including Fires). D. G.I. 6.003 - Incident Investigating E. G.I. 6.005 - Reporting, Investigation and Recording of Injuries/Occupational Illnesses. F. G.I. 6.029 - Reporting and Recording of Motor Vehicle Accidents. G. G.I. 7.026 - Crane and Heavy Equipment Incident Reporting Procedures. H. G.I. 1787.000 – Report of Fire, Emergency or False Alarm. I. Incident Investigation Report Form - SA D&WO DOE&CD – Electronic Forms - IIR Form No.001

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Section A / Administrative Requirements D&WO HSE Requirements Manual A-22 / IR&A / Continued Figure No.1 / Incident Matrix

Severity

Effects

Severity Descriptive Word

People

Property Damage (Loss)

Environmental Impact

Public Image and Reputation

1

2

3

4

Major

Fatality

> $1,000,000 impact

Reportable Occurrence oil spill > 10,000 barrels, Toxic/Flammable gas release

Government Intervention

LTI, permanent Impairment and/or long term injury or illness

>$100,000 $1,000