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Well Engineering Manual – Revision 0

OKIOC Doc.no.: 99-03-002

OKIOC - CONTROLLING DOCUMENT

WELL ENGINEERING MANUAL (WEM)
CHAPTER 1 - ORGANISATION AND ACTIVITIES

Chapter 1 – Organisation and Activities

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............. 4 RESOURCES........................no.........................................................2 Appendix 1............... 7 5................ 6 Critical Assignments ..................... 5 Procedures and Controlling Documents... 5 Minimum working standards ................................................................. 3 1..Well Engineering Manual – Revision 0 OKIOC Doc..................................................................................................4 2.................................... 6 4.......................... 6 Other tasks................................................................................ 8 Appendix 2................................ 5 Standards relating to HSE Risk Reduction...........2 2.........4 Purpose and Scope .......... 8 5............................................................... CONTROL OF PROCESSES................................................... 4 Abbreviations ................................................ 9 Chapter 1 – Organisation and Activities Page 2 of 13 ........................1 3......................................................... 4 1...................................................................................................................5 3.................................................................................1 1..............: 99-03-002 TABLE OF CONTENTS 0.. Training for Well Engineering Staff .......3 2........................................................................................................................ 6 PROCESSES AND TASKS............................. 2.......... Job Descriptions for Well Engineering staff involved in well construction .................................................................................... 5 Resource Framework .......... APPENDICES ............... 5 Formal Skills .................................................................................................. 6 Well Engineering and Construction..................................................................................................................................................................................................... INTRODUCTION....1 5..........................................................................................................................................3 3...... INTRODUCTION TO THIS MANUAL.......................................................... 3....................1 2................................................................ 6 General ......................................2 2..............2 3...

using the resources provided by the Well Engineering Discipline. The structure of the manual is such that in the first chapter.: 99-03-002 INTRODUCTION TO THIS MANUAL This manual describes in general terms how a well construction project will be planned and executed within OKIOC. Where such procedures or guidelines contain requirements that shall be met. the organisation and its activities are described.Well Engineering Manual – Revision 0 0. Chapter 1 – Organisation and Activities Page 3 of 13 . OKIOC Doc. The second chapter provides a step-by-step process description of how a well project is to be planned and executed.no. these will be highlighted. reference is made to one or more of the chapters following it. Where applicable within this process description. These chapters provide procedures or guidelines on how some of the steps are to be executed.

and to introduce the internal control mechanisms which ensure quality service to customers. OKIOC Doc. standards.no. audit) 1. supervision. competency) Schedule Plan Process Execute ADD VALUE Improve Customer Analyse Controls (measurement.2 Abbreviations In this section the following abbreviations are used: AFE Authority for Expenditure HSE Health. Kazakh regulatory requirements. skills.Well Engineering Manual – Revision 0 1.: 99-03-002 INTRODUCTION 1. all in accordance with OKIOC policies. and other controlling documents. The chapter also provides requirements to staff members which support well construction and intervention operations. Safety and Environment OKIOC Offshore Kazakhstan International Operating Company NV WED Well Engineering Discipline (i. the department) WEM Well Engineering Manual Chapter 1 – Organisation and Activities Page 4 of 13 .1 Purpose and Scope The purpose of this chapter of the Well Engineering Manual (WEM) is to introduce the work processes to which the Well Engineering Discipline contributes.e. Resources (procedures.

3 Formal Skills Job descriptions for key well engineering personnel are included in Appendix 2 of this section of the manual. 2. The job descriptions are intended to describe the roles and responsibilities covered by the functions of the WED. • implement safe and cost effective work practices. i. • have a system in place that ensures that experiences are efficiently gathered. An inherent part of any business process is the experience feed-back loop. 2. Chapter 1 – Organisation and Activities Page 5 of 13 . execution.1 Resource Framework The Well Engineering Discipline (WED) in OKIOC is the provider of expertise on and executor of all assignments relating to well construction and well intervention within OKIOC. will be manned and composed such that it can fulfil the well engineering tasks required for planning. All well engineering staff members are responsible for understanding and discharging accountabilities as specified in their job descriptions. • implement procedures that ensure a consistent and correct execution of critical work tasks and assignments. developed and maintained to comply with any changes in OKIOC well engineering activities. follow-up and reporting of the assignments relating to e. • all major activities shall be comprehensively reported and documented according to the regulations. The staff of the WED shall be resourced. 2. A training matrix is included as Appendix 1 of this chapter. safety and environmental objectives are to be given the same priority as other business objectives.: 99-03-002 RESOURCES 2.2 Minimum working standards The Well Engineering Discipline is responsible for implementing OKIOC policies in relation to its activities. The fundamentals in the HSE documentation also apply to OKIOC’s contractors and sub-contractors.g.4 Standards relating to HSE Risk Reduction Health. both concerning the planning and execution efforts. exploration. appraisal and development wells and well interventions with a drilling installation in Company acreage. analysed and distributed to all involved personnel.Well Engineering Manual – Revision 0 2. where OKIOC have business interests. without imposing any detrimental effect on the environment. To guide the implementation of this statement OKIOC have issued HSE management procedures and guidelines which shall be adhered to in all well engineering operations.no. Reference is made to the first chapter of the Well Construction Manual for offshore staff. during the planning. OKIOC Doc. In order to improve the efficiency for the next similar activity. In doing so it shall: • utilise qualified personnel. • take care of the short and long term financial interests of OKIOC. • ensure a safe working environment for OKIOC and contractor personnel. execution and experience transfer phases of an activity.e. This will ensure that the requirements that apply to the activities they are involved in are implemented. and concurrently ensure that the requirements to Controls and Mechanisms for the WED are up to date and maintained. independent of the individual incumbent. • organise its work in an efficient manner. including experience reports. preparation. The organisation.

3.4 Other tasks In addition to the above the WED will: Chapter 1 – Organisation and Activities Page 6 of 13 . 2. Doc no. The duties and interdepartmental processes relating to well engineering within OKIOC are further described in the Well Engineering Interfaces.1 above any assignment of a critical nature. 2.Well Engineering Manual – Revision 0 OKIOC Doc. Based on this a time and budget estimate will be prepared and agreed upon. process boundaries. issued by an Activity (Well-) Sponsor. which should be challenged by the WED to ensure mutual understanding with the customer. what are the deliverables.2 Well Engineering and Construction The task of eventually constructing a well will be specified in a series of Well Requests. and as a minimum cover: 1. either financially or HSE or reputation. scheduling and constructing a well. i. a process description shall be developed. who is the customer. 3. chapter 6 of this manual). • the process shall be described. if necessary to recommend a sequence in which the process should be progressed to focus the effort on activities which add value. where learning points are captured and experience transfer is performed.e.e. i. what are the inputs. The format for such requests is fixed. 3.99-03-003 Chapter 2 of this manual describes in more detail the various steps in planning. PROCESSES AND TASKS 3. one that will expose the company to risks.no. i.1 General Each assignment shall be handled in accordance with requirements relating to business processes and assignment control. Whenever such a document specifies a mandatory requirement. shall be performed according to a predefined process. purpose. process steps. any deviation shall be subject to nonconformity reporting (ref. when not already available. For all assignments which fulfil such criteria.5 Procedures and Controlling Documents Procedures and controlling documents are developed for the purpose of providing a tool for continuous improvement. who is the supplier. This means that: • the assignment shall be clearly specified in an assignment definition. 3. Reference is made to Appendix 1 of the OKIOC Well Engineering Interfaces. bring the process closer to the goal.: 99-03-002 • results and reports from an activity in an area is used as reference and correlation material for the planning of similar activities in the same area later. 3.e.3 Critical Assignments As indicated in 3. defining the scope of the requested well engineering activity.

• performance review: . • Audits. This control will be achieved by: • supervision. by maintaining a status as to the delivery time or possible short comings of these resources. • Report to partners and authorities where applicable.to assess the actual overall performance vs the planned performance. equipment and materials. . • HSE statistics: . benchmarking. communicate this information to customers and recommend necessary financial commitments/ contracts to be entered into in this respect.house. • Ensure availability of required services.to identify shortcomings and areas for improvement. • Identify requirements for.Well Engineering Manual – Revision 0 4.99-03-003. the overall process must be controlled.to gauge the effectiveness of the HSE management. both daily and at the end of the project. in order to verify compliance with controlling documents and highlight areas requiring additional attention or improvement. Chapter 1 – Organisation and Activities Page 7 of 13 .: 99-03-002 • Participate with other departments in the development of OKIOC's long-term well construction plans and other main activity plans (Country business plan.no. to ensure that the steps within the process are carried out in accordance with the applicable controlling documentation. both onshore and on site. etc. to verify that the controls are effective. the above are discussed in more detail. In the following chapters. • Compile well engineering budget estimates AFE's for in. . as well as in the Well Construction Manual Doc no. OKIOC Doc. • inspections. .to ensure a continuous reduction of pollution to the environment. monitor follow-up of incidents and to exchange HSE experience. Programme Data Book.to assess the actual performance vs competitors.99-03-004.to keep track of improvements to the working environment. to document actual performance and allow comparison with planned performance. . and secure the resources to execute assignments. as specified in the Well Engineering Interfaces Doc no. This meeting shall be used to increase HSE awareness. CONTROL OF PROCESSES In order to ensure the delivery of quality products to the customer.). corporate and licence partner information and approval. • reports. a monthly HSE meeting will be held with all major contractors whilst in operation.to monitor HSE performance and compare it to industry trends. In addition to the above. .

All staff. Basic Offshore Survival Training (BOST) & Helicopter Underwater Escape Training (HUET). All staff working offshore & staff and visitors travelling offshore on a regular basis must have evacuation H2S training. OKIOC Doc. All staff working offshore & staff travelling offshore three or more times/year. Chapter 1 – Organisation and Activities Page 8 of 13 . Training for Well Engineering Staff The following presents the mandatory training requirements for Well Engineering staff: Course Applicable Staff OKIOC Induction course. H2S. Offshore Supervisors.Well Engineering Manual – Revision 0 5.no.1 Appendix 1. International Well Control Forum.: 99-03-002 APPENDICES 5.

4. To participate in the OKIOC (Operations) HSE Committee and hold HSE meetings in their departments at least before each OKIOC HSE Committee meeting.2. 2. To report to the Operations Manager and act as deputy during his absence. To participate in a proportion of lower level HSE meetings within their departments. secure approval for additional expenditure. • Senior Operations Engineer. • Drilling Superintendent. Doc. Chapter 1 – Organisation and Activities Page 9 of 13 . To promote networking. Job Descriptions for offshore supervisory staff are listed in the Well Construction Manual. To ensure that staff of the appropriate level of competency is available.2 Appendix 2. To co-ordinate onshore. 5. no. To ensure the technical integrity of all well construction operations. 2. To lead the Well Engineering Team to deliver best-in-class HSE and operational performance to OKIOC. To assess Well Engineering performance against OKIOC’s business objectives. 11. Accountabilities: 1. To ensure timely generation of Well Programmes and AFE’s 6. To ensure that staff is assessed and developed in accordance with HR guidelines and write staff evaluation reports. To carry out the medium. To ensure compliance with RoK Regulations. covering all groups in the year.to long-term planning for future Well Engineering activities. Dimensions: Subordinates: The incumbents have direct line responsibility for : • 2 Drilling Superintendents (on rotation). 12. 13. 14. HSE Roles & Responsibilities: 1. 8. learning and change to enhance performance. 3. OKIOC standards and Permit requirements.Well Engineering Manual – Revision 0 OKIOC Doc. • 2 Senior Operations Engineers (on rotation). Job Descriptions for Well Engineering staff involved in well construction The following onshore staff functions are. 9. To monitor well expenditure against well AFE and in case of overrun. 7. offshore and support teams.1 Head of Drilling (2 rotators) Purpose of the job: To provide optimum well designs in liaison with well sponsors and asset holders in order to assist them in achieving their goals & targets. covered by Job Descriptions: • Head of Drilling. To maintain correct communication channels with the RoK Regulatory Authorites.9903-004 5. within the scope of this manual. To ensure the technical integrity of all well engineering related support operations. To liaise with the OKIOC Development Group in the Hague.no. 10.: 99-03-002 5.

and in accordance with the approved company requirements. 16. 9. To ensure the interface with the environmental protection activities. 10. and implementation of corrective actions. Onshore: 1 Kazakh Drilling Engineer. To develop their departmental annual HSE programme including the schedule for inspection visits. 8. in others’ areas. Qualifications: A degree in Petroleum Engineering or equivalent. To co-ordinate the Well Engineering input to the Permit Documentation. environmentally friendly and cost effective manner. To lead the OKIOC investigation of all accidents in their department with the assessed potential to cause a fatality or major pollution and review all accident reports from within their area of responsibility. the targets for reductions in HSE impacts. To contribute to the development of the company annual programme. To supervise the offshore company staff and assist them in implementing the above during the operations.no. Other factors: Experience in drilling carbonates.2. In co-ordination with the Heads of Safety and Environment. To co-ordinate the planning cycle of offshore well construction activities through utilisation of the assigned company staff. To ensure that the installation under his control operates safely and efficiently. programmes and Regulatory requirements. taking fully into account all Company and Legislative requirements and regulations. 4.: 99-03-002 3. safe. by invitation. sour reservoirs. 5. 5. 7. To participate in regular inspection visits within their area of responsibility and. To ensure that all risks related to well construction operations are identified and addressed. Accountabilities: 15. Reports to the Head of Drilling.2 Drilling Superintendent (2 rotators) Purpose of the job: To ensure that the well construction and associated plans and programmes are developed and implemented in the most efficient. plan and perform Safety and Environmental audits on contractors. Experience: 15 to 20 years in drilling operations with a significant part of this time in a supervisory and management role. Dimensions: Subordinates: The incumbents have direct line responsibility for: Offshore: 2 Senior Drilling Supervisors (on rotation). bearing responsibility for the accuracy and adequacy an follow up corrective action. Chapter 1 – Organisation and Activities Page 10 of 13 . 6.Well Engineering Manual – Revision 0 OKIOC Doc. and highly overpressured. Experience with working in ecological sensitive offshore environments.

To ensure that the changes are fully understood and implemented by the offshore staff. to satisfy the requirements of the OKIOC Exploration and Development Group.: 99-03-002 17. To write staff evaluation reports.2. 22. 20. To review HSE risk acceptance criteria and specific emergency preparedness requirements for well construction projects and update as required. To consult specialist with respect to any changes to the programme which may be required. 5. To ensure the timely development and availability of all programmes. To follow up the well specific HSE plan during the operations. procedures. 19. Chapter 1 – Organisation and Activities Page 11 of 13 . To ensure by means of training and delegation of responsibilities that subordinates are developed in line with their career route. 3. 23.Well Engineering Manual – Revision 0 OKIOC Doc. 25. 24. 6. 5. HSE Roles & Responsibilities: 1. To co-ordinate regular drilling unit inspections with drilling contractor and service companies. 7. 21. critical well review. To co-ordinate the preparation of the Offshore Risk Reduction Programme and follow up the same during operations. To manage and monitor well expenditure against well AFE.3 Senior Operations Engineer (2 rotators) Purpose of the job: To ensure that the well data are acquired in a cost-effective manner. 4. contractors and Authorities. To motivate subordinates and allocate responsibility such that they have job satisfaction and will perform in accordance with their potential. in particular common Well Engineering software packages. 18. To co-ordinate the preparation of the HSE case for the well construction project. The review will also form the basis for providing feedback to in-house departments. Lessons learnt are to be collected and used as a basis for improving the controlling documentation.no. To maintain an overview of all non-conformances which have arisen with regard to specific well construction projects. materials and services of the required quantity and quality. Good user knowledge of computer programmes and systems. 2. partners. and act on the results of these. To maintain continuous contact with the installation in order to remain abreast of developments and provide advice and assistance as required. with the appropriate level of quality assurance. Qualifications: Graduate / HTS / HND Shell Round I and Round II Experience: Technical professional Minimum of 10 years experience with oil/gas well construction operations Other factors: Well developed communication and man management skills. To ensure that all significant events are recorded throughout the operation and at the end of each well to produce a final. To investigate and report on offshore incidents and non-conformances that are not assigned to the Head of Drilling. To ensure that all offshore staff are fully familiar with the requirements of all programmes and procedures and that the proper support and materials are in place for the work scope to be carried out correctly and efficiently.

6. 12. in order to create a high quality well site database for performance planning and evaluation. 4. 3. 3. To input technical specification for materials and services required to support rig-based well activities.: 99-03-002 To provide support to the Drilling Superintendent in the planning. 10. execution and follow-up phases of well construction projects. To co-ordinate with the Development Team to ensure that the data recorded on the well site is sufficient for their requirement 11.Well Engineering Manual – Revision 0 OKIOC Doc. To compile end of well reviews. and thus are compliant with OKIOC’s technical standards. in order to be able to take these developments into consideration when planning future wells. 5. HSE Roles & Responsibilities: 1. To assist in the preparation of the HSE case for the well construction project. • 1 Consultant Geologist. 2. compile and ensure optimisation of Well Programmes in accordance with the company requirements. 8. To assist in the development of the Kazakh staff under their control. To ensure that Well Programmes have technical integrity. To prepare AFE’s for all well construction activities. To assist in the preparation of HAZID’s & risk analyses related to well construction projects. 5.no. To be up to date on the latest technology in all aspects of well engineering. regularly compile reports on work carried out ensuring that all formal reporting is in accordance with company standards and statutory requirements. Chapter 1 – Organisation and Activities Page 12 of 13 . Accountabilities: 1. ensuring that important lessons learned are discussed with the Drilling Superintendent for inclusion in the controlling documentation. 4. 2. and functional responsibility for: Offshore • 2 Well Site Operations Engineers. Reports to the Head of Drilling. To co-ordinate. 9. To ensure that wells are planned in a cost efficient manner whilst meeting the company and legislative requirements. Dimensions: This position impacts directly on well construction and well testing operations by utilising the most cost effective planning and programming for the specified well construction and well testing projects. To report all non-conformances which have arisen wrt specific well designs or in the course of preparing the well programmes. To assist in the preparation of the Permit application. Together with the Drilling Superintendent. To write staff evaluation reports. Subordinates: The incumbents have direct line responsibility for: Onshore 1 Kazakh Drilling Engineer. To review well site data to verify that correct data is recorded. 7. To assist in the review of HSE risk acceptance criteria and specific emergency preparedness requirements for well construction projects.

in high-pressure. • Supervisory and coaching skills. including completion design. • Significant experience in the design and planning of well-testing and stimulation operations. • Working knowledge of Exploration and Petroleum Engineering issues.no. To assist in the preparation of the Offshore Risk Reduction Programme and follow up the same during operations. brine and acid). • Working knowledge of contractual procedures.Well Engineering Manual – Revision 0 OKIOC Doc. including wellsite experience. • Working knowledge of fluid selection and design (mud. cement. To assist in the follow up all offshore incidents and non-conformances.: 99-03-002 6. Chapter 1 – Organisation and Activities Page 13 of 13 . sour environment. Qualifications: University Degree in an engineering discipline Experience: Minimum 8 years experience in well construction operations and production engineering. 7. Other factors: • Significant experience of well design. • Experience of metallurgy and elastomer selection in highly sour environments.