Shandong Kerui Petroleum Equipment Co., Ltd.

Business Analysis A B C Full name Shandong Kerui Petroleum Equipment Co Experience since 2004 A subsidary of Kerui Group dealing is the manufacturing of Oilfield Equipment and Facilities: providing related serivces. Drilling Equipment Series Natural gas compressor series Oilfield special equipment series Oil Recovery Series Oil & gas engineering technical services Successful cases F G H

14/10/2011

Employees: 500-1000 Turnover US$10 Million - US$50 Million No. 287 Beiyi Road, Dongying City, Shandong Province. China Contact: Telephone: 86-546-7368655, 7368 Oil Recovery Series : Product and Oil(Gas) Recovery Wellhead Services Equipment , & pipeline related to SOS

Total Products and Services

J 1 2 3 4 5 6 7 K

Product Detail (products agency/licence which SOS can take)-Table 1 Equipments Steel Pipes Xmass Tree components API 6A Welded pipes ASTM A53, API SPEC 5L Casing and Tubing Pup joints API 5CT Seamless pipes ASTM A53, API SPEC 5L Drill pipe Tool Joints 5DP Drill Thru Equipment Ram & Annular BOP API 16A Choke and Kill manifolds API 16C Valve repair and remanufacture authorization BOP repair and remanufacture authorization

Option 1 for SOS: Authorization for Manufacture, Remanufacture & Repair (MRR) Since SOS has API and Hydril license, it is eligible to get license from Shandong Kerui Co. for manufacuring 1 remanufacturing and repairing their equipment in Kuwait. 2 The scope of MRR will be limited to above mentioned products (see table 1) 3 SOS will require design, specifications and other document support from Shandong Kerui. Option 2 for SOS: Authorized Agents Drilling ,Wellhead, and Drill Thru Equipment L SOS may become there the supplier of equipments which it cannot manufacture on its own but supply to drilling 1 contracts. Also providing aftersales services. Competent to do so as SOS has API licenses for Repair and Remanufacture (RR) of the above plus Hydril pressure 2 equipment RR license. Very soon API 16C "Choke & Kill systems" license will be acquired by SOS. Certificates and Approvals of SHANDONG KERUI M API Q1, Environmental Management For Drilling And Repairing Well Operation, API ISO 9001:2000, International Association of Drilling Contractors, API ISO/TS 2900, (HSES) Certification API (4F-0148, 7K-0245, 8A-0095, 8C1 0172) Potential Competitors for Option 1 & 2 N Option1 (Manufacturing & Supply) Option2 (Supply only) 1 AHL Al-Khaleej Company for Trading & Contracting Abdulmajeed Al-Gharabally Sons Co. 2 Al Julaiah Petroleum Services Co. W.L.L. Basim International Trading Co. 3 Heavy Engineering Industries & Shipbuilding Co, Enaam Al-Khaleej Trad. Co. 4 Inheritance of Hamad Ahmad Abdul Lateef Al- Hamad Petrogas Kuwait 5 Company General Trading & Contracting Mechanical & Industrial Services Co. 6 Kuwait Pipe Industries and Oil Services Company Saleh Abdali & Sons Group Co. 7 M/S. Specialist Oilfield Services K.S.C. Target International Trading Establishment 8 Smith International Gulf Services Kuwait WLL 9 SPIE GULF

QHSE-14102011-002

For: Mr. Abdul Latif/Chairman, SOS

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