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GPW peptesity Gren ore ttre 08 GP 10-40 Drilling Rig Audits and Rig Acceptance Group Practice BP GROUP — ______ ENGINEERING TECHNICAL PRACTICES CONFIDENTIAL BP-HZN-2179MDL0064346811 une 2008 @P 1040 Dring Rig Audits and Rig Acceptance Foreword ‘This is the first issue of Engineering Technical Practice (ETP) BP GP 10-20, DWOP Policy Summary Onshore and offshore drilling units and workover unis shall be subject toa formal rg audit 1 ensure compliance with this standard, ‘New onshore and offshore drilling units or upgraded offshore drilling units shall be subject to an integrated acceptance test GAT), Mobile offshore dr Marine Standard, its shall be audited to assess marine assurance in accordance with Group ‘he segment encineering technical authority rig acceptance/design/movement shall aparove the use of allrig auditors, other thaa the rig audit group, andthe audit protocols ulsed wap audits shall be scheduled within 24 month frm intial, o last, rig audi, ‘SPU shall make decision to ecept or delay acceptance ofa drilling unit on contract, SPU shall be accountable for closeout of audit recommendations. EREDAR Gn AS eed Tanna {ie dcnant wm spd ores eauasicn Now oe ee Z Siete eats pis Gps os Cash men = oe é Page 20814 CONFIDENTIAL BP-HZN-2179MDL00643469fume 2008 oP 1040 Dring Rig Aust and Rig Acceptance Table of Contents Page Foreword 2 Introduction. 4 1. Scope ener S 5 2. Nommative references... 5 3. Symbo's and abbreviations... 6 4. General. . 6 5, Rig audit parameters. : 7 5.1. General a 7 5.2. Iniliating an audit : 7 5.3, Aucitteam formation ran 7 5d, Rig aud PrOLOCO! rrr ih 55. Auditreports <8 5.6. Audit report recommendations... 8 5.7. Audit debrief. 8 58, Audit closeout 8 5.9. Audit followup “8 6. Rig Acceptance. 8 6.1. General 8 6.2. Setting standards... _ _ ecules 8 6.3. Rig acceptance process .nrernnmnnsnn 9 6.4. Acceptance report format. 10 7. Acceptance criteria... TA. AUCH annie 7 . 7.2. Operating requirements . 8 Mobile offshore driling unit marine assurence: - 13 8.1. General... a : 18 8.2. Marine assurance audit proceSS sun : ary 8.3. Marine auditor qualifications eas 13 Table 1 - Class definitions of auditiAT recommendations. CONFIDENTIAL 5.4. Marine auditor experience, 8.5, Marine auditor knowledge. List of Tables 2 Poge af 16 BP-HZN-2179MDL0064347017 June 2008 oP 1040 Dating Rig Auto and Rig Aeeaptance Introduction BP is committed to conducting business in a manner that ensures wells ae designed, drilled, completed, and maintained in accordance with high and consistent standards. BP will comply with all rlovant laws and regulations and will be seasitive to balanced ceonomic and environmental needs of the community. Sound engincerina judgment and governmental regulations may requize that ‘operations be performed in accordance with siandards which exceed these satemeats, Pago 40F 14 CONFIDENTIAL BP-HZN-2179MDL0064347111 une 2008 P1040 Doing Rig Adee end Re Acceptance ‘Scope ‘This GP provides requirements for oashore and offshore rig audits znd rig acceptance, including well imervention vessels that have cling equipment installed Normative references The following normative documents contain requirements that, through reference inthis text, constitute requirements ofthis technical practice, For dated references, subsequent amendments 10, revisions of. any ofthese publications do nct apply. However. partes to agreements based on this ‘echnical practiee are encouraged to investigate the possibilty of applying the most recent ecitions of ‘he normative documents indicated below. For undated references, the lates edition of the rormative document referred to applies. BP Integrity Management Standard Group Marine Standard ine Mobile Offshore Drilling Unit Practice EP-GP.04.30 Occupied Temporsry Buildings GP-0al Drilling Facilities Project Execution GP-10-42 Design of Drilling Facilities GP-10-43 ‘Moving and Securing of Mobile Offshore Driling Units BPA-D-002 Well Control Manual American Petroleum Institute (API) RP2C Specification for Offshore Cranes RP2D Operation and Maintenance of Offshore Cranes RPAG Use and Procedures for Inspection, Maintenance, and Repair of Driling and Well Servicing Structures. RPG Drill Stem Design and Operating Limits, RPSB Procedures for Inspection, Maintenance, Repair. and Remanufacture of Hoisting Equipment, Spee 16C Specification for Choke and Kill Systems Spee 16D Conirol Systems for Drilling Well Control Equipment P53 Blowou: Prevention Equipment Systems for Drilling Wells. RP 54 esiptos ay fr Oi and Gas Well Ding and servicing perations RP 6d Diverter Systems Equipment and Operations, RP S00 Classification of Locations for Electica Installation at Petroleurn Foeilities Classified as Class 1, Division 1 and Division 2 Other Industry Standards IMCA, ‘Common Marine Inspection Document (CMID) ™Mo. “Mobile Offshore Deiling Units (MODU Code) sTCwos Standard of Tenining, Certification and Watchkeeping ~ 1995, a Poge Sof 14 CONFIDENTIAL BP-HZN-2179MDL0064347215 un = CONFIDENTIAL ye 2008 se 1049 Dating Rig Avdee and Rig Accoptane® ‘Symbols and abbreviations For the purpose ofthis GP, the following symbols and abbreviations apply ARAS Audit reportastion sheet BOP Blow out preverter. CMD Common marine inspection document, pp Dynamic positioning ETP Engineering technical practice FMEA Failure mode and effecis analysis GMS Group marine standard HP/HT High pressure high eraperature, HSE Health, safety. and environment, HSSE Health, sa security, and environment IAT Integrated acceptance test. TAT Imegrated assurance tet (for BP facilites) ™ Integrity management standard IMCA Intemational Marine Contractors Association IMO International Maritime Organisation MODU — Mobile offshore deling unit. MSDS Material safery dara sheet. aa Quality assurance, oc Quality control SPU Surategic performance unit STP Site technical practice General ‘4. _Diling unit selection is the responsiblity ofthe SPU. Wells team shall ensure that ‘operating capability ofthe drilling unit is suitable for prevailing environmental and regulatory conditions at wellsite ». Prior to commencement of contact or beginning operations for BP: 1. Onshore and offshore drilling units and workover units shall be subject to a formal rig audit to ensure compliance with this standard. Page 8 of 14 BP-HZN-2179MDL00643473tune 2008 P1040 _Doling Re Aude and Rig Aooepianes ‘New onshore and offsbore drilling units or upgraded offshore drilling units shall be subject to an integrated acceptance test (AT), Prior to awarding a long term contract for 2 new build onshore and off&hore drilling unit {ul echnical review ofthe proposed new build shall be carried out with rig audit sroup paricipation, The review shall clude but not be limited to review of proposed design ‘rom both 2 drilling and marine operations perspective, review of contractors project ‘execution plan and organisation 10 deliver review of schedule robustoess, key risks and _mitigaions, startup plans, equipment selection erteria and QA/QC. 5. Rig audit parameters 5A, General a. Requests for sig suits shall be coordinated through the head of rig audit . The segment enginesring technical authority rig aecoptanceldesign’tmoverent shall approve the use of all ng euditors, thor than the rig audit group, and the audit protocols uilised 82. Initiating an audit 4. The applicable wells manager, or appointed delegate shall identify requirements for an audit ofa drilling unit. b. Theapplicable wells ‘eam shall sosure thatthe requirement to perform an audit is iseussed during the tendering process and included inthe rig contract. Audit terms of reference shall be produced and agreed. |. ‘The terms of reference should identify the scape of the audit including people processes and plant with the aim being to verify compliance 1 specified minimum ‘requirement, 1 contract specified requirement and regulatory requirements, including local regulatory requirements, 53, ‘Audit team formation ‘Rig audit team composition shall be arranged by the rig audit group. . Audit team leader shall be designated by the rig audit group, © A master mariner and marine engincer shall be iacluded oa teams that audit 2 MODU 84, Rig audit protocol 2. Audit programme shall be based on applicable: 1. ETPs and STPs, 7 2. Group Standards, for example IM and GMS 3, CMID and CMID ANNEX 4. Rig audit group standards and lessons leart database 5. MODU Code 6. API specifications and recommended practices 7. Local legislation. 8. Local rules, for esample North Sea Lifting Rules 9. Classification Society Rules o Page 7 of 14 CONFIDENTIAL BP-HZN-2179MDL00643474fue 2008 P1040 Deting eg Aut end Rig hecepiance: 55, Audit reports 44. _Allrig audit reports shall be reviewed and approved by the seymeat technical engineer auth acceplanceidesign/mavement ', Rig auditreporss shall be retsined for 10 years. ‘c. _Exceptions to standard retention periods are: |. Audit reports relating to BP owned fciites shall be retained. 2. Same documents hat shall be retained due to their legal satus oF nature. 44. A copy of rig audit repom should be published on the rig audit website. 5.6. Audit report recommendations For the audit report, recommendations ffom ARAS shall be placed in one of four classes. The following deCinitions shall be used 10 assign class and categories for observations: 1. Chass categories 8) Class 1 - items that do not comply with BP policies or standards. >) Clsss2- ters that are outside API, levislation, and rg owner polices and have Potential for high safety or environmental impact. ©) Class 3 - Items expected to bein place from a combination of competent deiling contractor and knowledgeable operator. @) Class 4 Items that can be used by drilling contractor and/or BP to build on the project although they are not considered essential 57. Audit debrier ‘A debriefing o wells team leader, or his delesate, shall be conducted after the rig audit At that time, the aut team leader shall review the key audit findings. 58. Audit closeout 4, Wells team leader shall develop final, formalised “closeout” programme with actions and deadlines. Wells eam leader shall: |. Be accountable for closeout of recommendations. 2. Manage response to audits and its recommendations, 59, Audit followup 5, Wells team shall initiate a followup audit to: 1. Confirm compliance with recommendations. 2. Reassess condition ofthe deilling unit, 3. Address specific needs such as poor performance (including HSSE) ‘b, Followup audits shall be scheduled within 24 month ftom intial, of last, rig audit, 6. Rig Acceptance 64. General 4. Diiling units with operating history shall be audited using the process outlined in sstion 5, and acceptance criteria should be determined. af FF an a Page 8of 14 CONFIDENTIAL BP-HZN-2179MDL0064347517 une 2008 62. 63, 2 CONFIDENTIAL sp 1040 Dating Rig Adee nd Rig Acceptance ‘Xew onshore and offshore drilling units or upgraded offshore drilling units shal] be subject ‘0 an integrated acceptance test (AT) prior to commencement of contractor operations for Be. On uparaded offshore diling units the IAT should only focus on the upgraded o: modified systems Setting standards b Wells eam responsibility 1 Wells team shall establish technical expectations and requirements with rig owner. 2. Wells ream shall ensure thet established expectations and requirements are met Decision to accept a drilling uait 1. Decision to accept a drilling unit shal include an evaluation of aspects thst pose aris +0 or may have influence on the programme, including 2) Major accident risk >) HSE. ©) Location Rig specific and well specific factors. €) Special considerations relating wo activities tobe perfommed. Assessment shall inludea review f techaieal requirements and management systems, including safety management. Compliance requirements 1. Applicable standard shall be communicated to drilling contractor as part of the tender process Dillng contactor shall demonstrate how the selected driling unit will achieve ‘compliance wil requirements. Rig acceptance process b IAT guideline document and exeeution plan 1, IAT guidotine document shall be: 8) Applicable to new onshore and offshore drilling units, or upgraded offthore cling unis. ) Written by the rg audit group. ©) Distibuted 1o wells eam by the head of rig audi 4) Used during LAT. IAT guideline document and exceution pln shal be: 8) Aliving document b) Reviewed by projecuwells teams ©) Updated following an onsite review by the entire [AT team that draws on their varying areas of expertise, IAT processes 1 During IAT ofa floating MODU, riser recoil and emergency disconnection function shouldbe tested. Page 9 of 14 BP-HZN-2179MDL006434751 June 2008 During IAT. the rig crew shall be continually assessed inthe following areas: 8) Aitude 0 safety b) Commitment to safe working practices ©) Processes used. In addition to IAT, a technical rig audit shall be conducted to evaluate al systems using 2 nonintrusive audit technigse, 6a, Acceptance report format ‘8. Lpon completion of IAT, an audit report shall be issued along with a qualitative risk assessment, 7. Acceptance criteria TA. Audit 4, SPU shall make decision to accept or delay acceptance ofa drilling unit om conzact, , Audit shall feeus oa: 1. Safety extcal, drilling, mechanical, marine if applicable and clectrieal equipment 2. Competence ofthe dil, marine if applicable and maintenance crews 3. Management sysiems in place o safely and efficiently manage use of the drilling unit. © AT |. Drilling unit commissioning sbll be complese, documented, and traceable prior to ‘beginning TAT. Multidisipline audit team should be used for audit and LAT. 4. Audits may generate recommendations that shall require response and closeout by wells teams, 72. Operating requirements 123. General Wells team leader shall be accountable for: 1, Ensuring tht scope and programme of activities forthe operation are defined Establishing operational and flmetioeal criteria to govern selection of riling unit b. Technical selection eriteria should include: 1, Location specific requirements, such as: a) Water depth >) Geographical locaton, ©) Temperature 4 Rescue facilities. Environmental roquiremen's and constraints. such as: 8) Time of year, b) Weather window. a é 3._Rig specific requirements such as: — zs o ogo 10 014 CONFIDENTIAL BP-HZN-2179MDL006434771 supe 2008 P1020 Daling Rig Aude and Rg Accoprarce 8) Equipment ratings. > BOP. ©) Pump cxpacity 4) Desk space. ©) Desk load. 1) Crane capacity. 8) Jacking system, ifapplicable 2) Dynamic positioning, if applicable 4. Well specific requirements, such as: 8) Derrick capacity. ») Top drive. HPT. 4) Intervention activities. ©) Well esting, if applicable 5. Operational requiremen's, such as: 8) Handling of riser and BOP, >) Simultaneous operations ©) Marine operations. 6, Maregement systems, such as: 8) Sofety manegement. Qa ©) Matotenance 7. Special considerations, such as nonstandard operations, 8. Rig owner policies 9. Compliance with local legislation. 10. Compliance with API specifications nd recommended practices. 1, ABS/DNV classifieation or equivalent, ifapplicable. 12, MODU Code, if applicable, Recommendations from a rig audit or AT shall be graded and categorised in accordance with Table I. Page 11 614 CONFIDENTIAL BP-HZN-2179MDL0064347819 dune 2008 oP 1089 alin Rig Aust and Rig Acceptance ‘Table 1 - Class definitions of ausitIAT recommendations [Letass [Definition ‘Consequence 1 | tems that do not comply with BP | Rig not considered operable until policis or standards requirements are met, defect shortcoming rectified, or risk assessment has been undertaken and at into effec. 2 | Items thet are outside API, Rig not considered operable until legislation, or rig owner policy: | requirements are met, have high saery or defect shortcoming rectified, or risk environmental impact potential; | assessment has been undertaken and for are necessary for project to | pat into effec. sar. 3° | ems expected to bein place | Remedies to be completed preferably {rom a combination of competent | prior to beginning tetuming to work or | drilling conirator and ‘within an agreed period defined in risk knowledgeable operator. management plan, 4 | temsnot considered essential | Audit team shall advise urgency of that ean be used by drilling need for corrective response contactor andier BP to build on he projet. 722. Equipment suitability for planned activities 4. Wells tear, with assistance from rig audit group, shall review relevaat especs of drilling unit desiga 1o confirm suitability for proposed operations '. Ifrilling unit design does not mest specificd design criteris: 1, Necessary remedial actions sll be agreed to by BP and contractor. 2, Implementation plan shall be prepared and executed prior to operational startup. 3 Tdentification of remedial actions with an accompanying implementation plan shall be ‘requirement ofthe minimum conditions of satisfaction. 4. Specific operational requirements ibs will requite special consideration should include: 4) Mooring/statioa keeping design and analysis, including FMEA studies. >) Deepwater or harsh environment activities, ©) High pressurefhish temperature well operations. 4) DP vessel operations and operability plots ©) Power management systems. 1) Vessel management systems. 2) BOP equipment configurations and controls including mad gas seperotor and vent line capacities. 1b) Deployment of specific equipment (eg, Xmas Trees) ') Drilling and marine emergency equipment. 4) Well esting and location of equipment in rlation wo occupied buildings, é Page 12 of 4 CONFIDENTIAL BP-HZN-2179MDL0064347917 supe 2008 GP 1020 _Dalng Rg Aust ena Rig hevepiance: 8. Mobile offshore dri 19 unit marine assurance 8. General 8, Mobile ofhore drilling units shall be audited 10 assess marine essurance in accowdance swith GMS, 1b. To-assess marine assurance in accordance with GMS, marine assurance audits shall be performed by marine specialists. 32. Marine assurance audit process 8, Marine assurance audit shal 1 Ensure thet marine related operations are being conducted in accordance with national and international regulations and established industry guidelines. Ensure that marine related operations are being conducted in accordance with GMS and the associated practices, in particular the MODU Practice 1b. Marine auditor responsibilities follow: 1, CMID and CMID ANNEX (BP Recuiremenis for MODU) 8) All chapters within CMID and CMID ANNEX (BP Requirements for MODU) shall be used by marine ouditor to perform a marine assurance audit. 2. Marine auditor shall 2) Complete an audit report and identify deficiencies or recommendations. ) Describe all marine assurance work performed during the marine assurance audit including resuls of ests on equipment or systems, 3. Marine auditor should review previous marine audit reports and verify that appropriate corrective action has been taken eancerning observations and recommendations. Actions not closed out shall be cart forward to marine assurance audit reper. ‘¢. Wells team shall review marine assurance audit report, CMID and CMID ANNEX (BP ‘Requirements for MODU) report with rig owner. 4. Program to mitigate identified risk associatod with marine assurance shall be developed by walls eam. Recommendations L_Recommendations from marine sssursnce audit sall accepted, changed, o rejected Ifa recommendation is not accepted, reason for ihe decision shall be documented, ‘led, and rig audit group notified. viewed by wells teem snd {Rig audic group shall contact wells manager within | month of audit ro review satus of audit recommendations. 83, Marine auditor qualifications 2. Fora elf propelled MODU. two marine auditors with the following qualifications shall be used: 1, Master mariner with unlimited STCW95, 2. Chiefengineer with STCWSS, b. Fora moored or self elevating MODU, a minimum of ne marine auditor shall be used and = a ‘have at east onc of the following qualifications; a Pege 19 f 1 CONFIDENTIAL BP-HZN-2179MDL0064348011 sane 2008 oP 1040 Dosing Rig Aust and Rp Acceptance 1, Chief engineer with STCW9S. 2. Master mariner with unlimited STCW9S, 84, Marine auditor experience Marine auditor shall have: Minimum 5 yr of seagoing experience, with minimum 5 yr of experience in MODU operations. b. Demonstrated recent experience of marine auditing. Audit raining qualifications. 38, Marine auditor knowledge Marine auditor knowledge shall include: 8 Current maritime legisation, . Classification society and international maritime requirements and standards forthe type of MODU being audited, Technological advances in vesseVequipmenvMODU. 4. BP safety rues and expectations ©. GMS and the associated practices. in particular the MODU Practice a Page 14014 CONFIDENTIAL BP-HZN-2179MDL00643481