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Scope of work - Provision of Well Inspection Services

(a) Wells Third Party Inspection

i. Capability to coach and audit on the major Oil and Gas standards (e.g. priority on API Q1, API Q2)

ii. Immediate formal notification to the Company requesting its supplier to initiate investigation
within one week for product or service non-conformity.

- Service excludes by default investigations solely owned by the supplier for all the design,

manufacturing and lifecycle of material, equipment and services procured to the Company.

iii. Report to the Company and its supplier observations identified as quality cycle waste observed in

the design, manufacturing and lifecycle of material, equipment and services procured to the
Company.

- Cycle waste includes rework and non-managed changes within 48 hour notice including delays

of more than 30mins waste of Third Party time on site.

iv. Supporting specific Company improvement plans (e.g. TRIM Technical Risk Identification and

Mitigation) implying

Coordination for inspection driven by Company contract management over inspected

suppliers/auditee

Daily reporting using the Company agreed summary document format.

Collecting KPI to support Company reducing TCoQ-CoQ (Cost of Quality).

Discussing occasional non-conformities identified with host auditee/supplier

Raising short notification online as immediate follow-up of occasional non-conformities identified


using the Company system.

v. Supplier to have an internal continuous improvement quality management system (QMS) to

optimize the client control over audited suppliers. The QMS will include a yearly Management

Review as per API Q2.

vi. Third Party Inspection (TPI) service includes managing online workflow for the contract
administration of daily report, time sheets.

vii. TPI service includes managing online workflow for technical alerts, KPI per facility, products and
suppliers.

viii. HSE Mode 3 (Work is conducted at contractor site and HSSE Risks are managed under the

Rose Niza
Energy Skills Sdn Bhd
EMAIL : roseniza@energyskills.com.my
TEL : 019-480 3067
Scope of work - Provision of Well Inspection Services

contractors HSSE MS)

ix. Conducting formal internal training "as needed" and "where needed" on each Third Party

Inspection (TPI) specific evergreen profile based on the Common Reference Oil and Gas

standards listed in Appendix 1.

x. Logistic including transfer of equipment and load out inspection is specifically excluded from this

scope

(b) Inspection services of Wells main suppliers prior load-out (Malaysia, mainly Labuan).

i. Witnessing of materials, equipment final testing inspection of drilling and completion including well
testing equipment.

ii. Witnessing of service readiness including maintenance, testing and functional checks on:-

Specialty rental tools such as downhole motors, MWD/LWD equipment, jars, reamers, cementing
equipment etc.

Casing running and handling equipment - tongs, slips, elevators, etc.

Completion items (SSSVs, scrappers, Autofill subs, mirage plugs, subsea trees, gravelpack

assemblies etc.).

Wells testing and clean up equipment.

iii. Supervising any repairs on tools that failed inspection.

iv. Ensuring compliance to SSB/SSPC contracts with respect to quality.

v. Documenting and photographing any problems identified during the above processes as a "lesson

learned".

vi. Conducting contract reviews of key Well Engineering Contracts as to their content of Quality

Control/ Quality Assurance Requirements.

vii. Once the results are available from the audit/review, the Contractor will recommend to Company
the minimum inspection criteria for the above equipment and suggest contractual clauses that can
be included in future SSB/SSPC contracts to ensure compliance.

viii. Actively participate in Shell and Vendor Safety Programs

ix. Hiring and managing Third Party Inspector with 10 years experience on specific Wells materials
Rose Niza
Energy Skills Sdn Bhd
EMAIL : roseniza@energyskills.com.my
TEL : 019-480 3067
Scope of work - Provision of Well Inspection Services

and equipment, no less than 1/3 staff Malaysia national.

NB: shadowing of trainees may be acceptable although not included in contract scope.

(c) Inspection services at Wells Manufacturer Facilities for Equipment in the Rest of the World

Outside Malaysia.

i. Materials manufacturing surveillance inspection of inspection of - drilling and completion

equipment including well testing.

ii. Equipment inspection for - drilling and completion equipment including well testing.

iii. Reporting and liaising on a daily basis with SSB/SSPCs COMPANY representative designated in

the contract documents.

iv. Actively participate in Shell and Vendor Safety Programs.

Rose Niza
Energy Skills Sdn Bhd
EMAIL : roseniza@energyskills.com.my
TEL : 019-480 3067

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