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WELL

ENGINEERING
& LOGISTICS
DIRECTORATE
BUSINESS
IMPROVEMENT
PLAN
2018

PetroleumDevelopmentOmanPDO @pdo.oman PDOChannel

PetroleumDevelopmentOman @PDO_OM
LIFE SAVING RULES...
DO SAVE LIVES
Message from the Director 2

1 Introduction 5

CONTENTS
2 Purpose 5

3 Target Audience 5

4 Document Owner 5

5 Performance to Date and Focus Areas for 2018 and Beyond 6

5.1 HSE 6

HSE Initiatives 7

5.2 Business Delivery 9

5.3 People 11

5.4 Contracting and Procurement 12

5.5 Enablers 13

6 Business Improvement Plan 14

6.1 UWD 2018 Business Improvement Plan 15

6.2 2018 UWD Score Card 18

7 UWD Risk Profile 19

8 List of Abbreviations and Definitions 20


MESSAGE Dear Colleagues,
As we close the books on 2017 it is worthwhile
FROM THE taking stock to see how much we have achieved: on
business delivery we have exceeded our expectations
DIRECTOR on many of our targets despite the challenges posed by
the low-oil-price environment; this was to a large extent
thanks to the adoption of Lean principles and tools and
increased focus on the Well Delivery Process (WDP). Whilst
overall we fell short of our HSE aspiration, we have seen
pockets of excellence in Logistics, our Completion and Well
Intervention (CWI) activities and on our PDO-owned units. In
fact, we achieved 94 days - 10.5 million man-hours - without LTI!
The previous best was 75 days achieved in 2013 with 7.5 million
man-hours worked. Unfortunately all of our good achievements
were overshadowed by the fact that we lost one of our colleagues in
a fatal accident on one of our units. Our thoughts and prayers are with
his family and friends.
In 2017 we adopted the International Association of Oil & Gas Producers’
(IOGP) Well Control classification, providing better granularity to Well
Control events. Assurance and consequence management were highlighted
as key focus areas after a repeat Wells Process Safety (WPS) audit.To achieve a
self-assuring organisation at all levels we will enhance our assurance framework
with a dedicated team that will ensure effective implementation.
We have made major strides in our automation journey towards our vision of
having all our processes optimised and automated by 2020. Automation continues to
bring about huge efficiencies, improved compliance and overall assurance. By enhancing
the technology deployment process we were able to capitalise on the benefits of 3
technologies soon after piloting them. We also saw the launch of our knowledge base and
team sites which will improve knowledge sharing, assurance and collaboration amongst
teams.
One of the areas we are extremely proud of is the success of the centralised Journey

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Management Control Centre (JMCC) which also won us “Gold” in the non-technical category of
the 2016 Chairman’s Award for Excellence competition. We were able to considerably improve
driver behaviours to be more defensive and drive compliance to the Life Saving Rules (LSR).
To capitalise on the presence of Closed Circuit Television (CCTV) cameras on our units, we
are planning to mimic the JMCC approach to modify our people’s behaviours on HSE by
using video analytics. This way we want to identify and highlight at-risk behaviours and
conditions and proactively address them through intervention and coaching.
All our PDO-owned units are now operational and delivering beyond expectation.
Moreover, we have awarded contracts for four highly mechanised rigs as part of our
long-term rig strategy which is conceived to modernise our rig fleet with a view to
improving our HSE and well delivery performance.
We are now preparing the strategy that will see us through the 2020s and
beyond.We call it “Wells in the 20s”. It will be a comprehensive strategy covering
the operating philosophy and the journey into the world of digitalisation,
artificial intelligence and machine learning. Along with the strategy, we will
set our longer term goals and draw the plan to achieving them using the
Lean methodology and tools. This will require a relook into the required
skill sets and manning levels. We will also pilot key technologies and
processes that will pave the way for the implementation of the “Wells
in the 20s” strategy.
I would like to thank all of you for having made our achievements
possible and am looking forward to your continued commitment
and support in 2018. Please remember that Safety comes first
in everything we do!

Mohammed bin Hamed Al Rashdi


Well Engineering & Logistics Director
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1 Introduction
The Well Engineering Directorate performs well construction and intervention activities on behalf of the asset teams. The well delivery
programme is composed of both conventional and unconventional oil and gas development drilling, oil and gas exploration drilling,
completion and well intervention activities, well optimisation through stimulation, hydraulic fracturing and well testing as well as well
abandonment activities. Also included in the programme are the supporting activities related to materials, people and equipment
movement throughout the PDO concession area.
The Well Engineering and Logistics Business Improvement Plan (BIP) provides a summary of the key business activities
developed to address the main challenges with focus on the respective business year

2 Purpose
The purpose of this document is to cascade the annual business targets of the Well Engineering and Logistics
Directorate. It highlights the key activities required to deliver the business targets. It also serves as a communication,
collaboration and alignment tool for the various teams and work units.

3 Target Audience
This Business Improvement Plan is intended for all Well Engineering and Logistics staff, contractors, services
providers and corporate planners.

4 Document Owner

UWB is the owner of this document and coordinates the business plan construction, with support from designated
focal points from the various UWD teams.

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5 Performance to Date and Focus Areas for 2018 and Beyond
5   Performance   to   Date   and   Focus   Areas   for   2018   and  
5.1Beyond  
HSE
In 2017 we saw improvements in our lagging indicators i.e. LTIF,TRCF, etc., but actual incidents, particularly a work related fatality and High Potential Incidents,
remindHSE  
5.1   us how fragile our HSE performance really is: after an encouraging HSE performance in the first half of the year our performance deteriorated,
culminating in the fatality. We ended 2017 with 88 Recordable Incidents, including the one fatality and 23 LTIs which is well below our aspiration of Goal
In   2017   we   saw   improvements   in   our   lagging   indicators   i.e.   LTIF,   TRCF   etc,   but   actual  
Zero. We have
incidents,   also seen a  
particularly   remarkable reductions
work   related   in dropped
fatality   objects
and   High   relatedIncidents,  
Potential   high potential incidents
remind   us  (50%)
how   and in hands and fingers related incidents (25%).
WPS incident reporting has increased; however, the number of significant incidents has not changed. 2017 resulted in 5 Level 2 Well Control Incidents
fragile  our  HSE  performance  really  is:  after  an  encouraging  HSE  performance  in  the  first  half  
of  the  year  our  performance  deteriorated,  culminating  in  the  fatality.  We  ended  2017  with  88  
(WCI), which were dealt with at the site, without the requirement to escalate. Only 2 of these incidents were classified as Tier 1 for release.
Recordable  Incidents,  including  the  one  fatality  and  23  LTIs  which  is  well  below  our  aspiration  
OnGoal  
of   road safety,
Zero.  the number
We   have  of people
also   using
seen   the PDO commuting
remarkable   reductions  busses has significantly
in   dropped   increased.
objects   related  The 2017 average is 9,200 persons/ month, which means
high  
a 31.2% average seat utilisation and is 5% above the 2016 figures. Efforts to increase bus utilisation will continue in 2018 through the introduction of smaller
potential  incidents  (50%)  and  in  Hands  and  Fingers  related  incidents  (25%).  

UWD  12M  Rolling  LTIF  ,TRCF,  HiPoF  and  Manhours

 4.50  45,000,000
12m  Rolling  LTIF 12m  Rolling  T RCF
12m  Rolling  HiPoF 12m  Rolling  HRS
 4.00  40,000,000
3.10  

3.04  
 3.50  35,000,000

3.01  
2.98  
2.60  

 3.00  30,000,000
2.50  

2.37  
2.34  

2.13  
 2.50  25,000,000
1.81  

1.62  
1.55  

 2.00  20,000,000
1.33  

1.16  
1.15  

 1.50  15,000,000
0.92  
0.94  

0.85  

 1.00  10,000,000
0.99  
0.98  

0.86  

 0.50  5,000,000
0.80  

0.71  
0.68  
0.68  
0.63  

0.58  

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Simplify get morehowever,   the   number   of   significant   incidents   has   not  
WPS   incident   reporting  
do leSS has   increased;;   6
changed.   2017   resulted   in   5   Level   2   Well   Control   Incidents   (WCI),   which   were   dealt   with   at  
the  site,  without  the  requirement  to  escalate.  Only  2  of  these  incidents  were  classified  as  Tier  
1  for  release.  
busses for the shorter sectors between the commuting hubs and key villages.
Achievements in numbers: 60% of rigs, 50% of hoists and 95% of all CWI units achieved “Goal
Zero”, 38% of our rigs and 45% of our hoists were more than 3 years LTI-free, out of which
8 hoists since the start of operations and 4 of them being owned and operated by Super
Local Community Contractors (Super LCCs). Since the start of monitoring, the number
of violations per vehicle per month decreased by 97% and the total number of Motor
Vehicle Incidents (MVIs) resulting in a roll-over reduced by 50%.
Another important milestone in 2017 was the achievement of two years LTI-free in
our CWI operation and one year LTI-free in our Logistics operation. The milestone
we are most proud of is the completion of more than 94 days without an LTI
across our operations; the previous best was 75 days achieved in 2013. This
translates into 10.5 million man-hours without LTI.

HSE Initiatives
In 2018 we will build upon the initiatives we launched in 2017, in an effort
to bring about a step-change in HSE performance with focus on frontline
supervisors’ safety leadership, the safety behaviours of people working
in or associated with our operation, the risk management in relation to
personal and process safety and the assurance processes.
We launched the “Frontline Supervisors Safety Leadership Training
Academy” (FLS Academy) in 2017, consisting of FLS-1 and FLS-2.
The FLS-2 content was developed in-house with case studies
covering high-potential incidents in Wells with the aim of
instilling “Chronic Unease” and a “Management of Change”
mindset. We have trained 1,000 people in the FLS Academy,
including the frontline supervisors of four major contractors. In
2018 we will focus on completing FLS-2 training for the remaining
PDO supervisors and on developing a programme to enhance safety
leadership of middle and senior management.
In 2017 we successfully piloted the corporate Behaviour Based Safety (BBS)

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programme “IHTIMAM” on four of our units with encouraging results. In 2018 we will roll out
“IHTIMAM” to all PDO-operated units and select contractors.
After the success of our Journey Management Control Centre, we have set up the ”Safe
Operations Centre” mimicking the same approach; however, in this case, we will pilot
the use of Artificial Intelligence as a tool to automatically identify at-risk behaviours
and conditions. The aim is to use CCTV to proactively detect unsafe conditions and
behaviours, to intervene as and when necessary, to coach and motivate people to
adopt safer practices.
In 2017 our focus was on dynamic dropped objects with emphasis on interface
management and lifting. In 2018 we will focus on situational awareness (“Line
of Fire”), which also covers the prevention of dropped objects and hands and
fingers injuries.
2017 also saw the beginning of the Lloyds Energy pressure control equipment
and Dropped Objects Prevention Scheme (DROPS) audit. All 37
contractors providing pressure control equipment will be audited, by the
second quarter of 2018. The outcome of the audit will be action plans
against each contractor.
WPS competency gaps were also identified as a threat in 2017.
As a result, a focused hands-on course has been developed and
is now available for both PDO and Contractor staff. In addition
to the minimum standard “International Well Control Forum”
(IWCF) competency, a mandatory licensing scheme has been
introduced for all personnel working in high-risk areas. Also,
Enhanced Well Control training, and a Well Control Practical
Assessment have been introduced.
In 2017 we launched the “CCC” tool, which stands for “Check,
Comply, Confirm” and developed an online version (e-CCC) to drive
accountability and consistency through visualisation. In 2018 further
enhancements to the tool are planned, incorporating learning from the
initial phase, to make it more robust and effective.

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5.2 Business Delivery
In 2017 we delivered 626 new wells against a target of 620 and carried out more than 21,000
well interventions within the allocated budget. Velocity String deployment by Hydraulic
Work-over (HWO) units improved by almost 25% (from 11.2 to 8.4 days). Overall we
managed to reduce well cost by 4% compared to 2016.
Through the Gap-to-Potential (G2P) measurement methodology we were able to
instil a best-in-class mindset in our people which in turn created a competitive spirit
and a strong sense of pride. This drove the implementation of Lean projects and
Continuous Improvement (CI) ideas which significantly contributed to improving
delivery times and realising important savings in materials and chemicals. Increased
implementation of the Leader Standard Work (LSW) and standardised Written
Work Instructions (WWI) has had a major impact on sustaining the gains
and driving consistency in operations. Cost Optimisation Reviews (CORs)
with our contracting partners helped realise significant cost savings in both
services and materials.
On technical assurance we improved the Hoist Well Delivery Process
to strengthen value creation, risk identification and resource allocation.
In 2018, we will develop standard Written Work Instructions for hoist
activities, Well Reservoir Management (WRM) staircases, integrating
efforts by the asset and contracts teams. We will also use an
automated dashboard to assist teams in performance analysis.
The dashboard includes the G2P and joint KPIs shared amongst
asset, production and Wells teams, thereby driving alignment
and performance ownership. We will also further improve
CWI efficiency by developing G2P dashboards for different
CWI resources and activities.
Our In-Sourcing organisation has now reached its “portfolio” size with
four rigs and five hoists in operation. The start-up went very smooth. The
main three focus areas for 2018 are: HSE culture, “Equipment Operator License”
(EOL) and equipment maintenance. To reduce HSE exposure and to minimise
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interruptions to the business we will mobilise a sixth hoist carrier to be used during maintenance
periods and we are planning to procure hydraulic catwalks, one spare Top Drive System (TDS)
and two additional Casing Running Tools (CRT) to cover all casing sizes.
In our new technology funnel, we have 38 technologies and solutions to address our concerns
and opportunities. In 2017 we piloted 8 technologies, another 4 new technologies are
in the process of being imbedded in the business and a further 4 technologies need
more evaluation. We also reviewed the technology deployment process to accelerate
implementation by introducing an interim deployment phase using the trial contract; this
approach was piloted for the Jet Sweep technology for sand clean-out.
In 2018 we are planning to pilot some of the technologies that are critical to
enabling rig-less abandonments and well intervention activities. These technologies
include live well work-over, wireline deployed annulus remediation, using a high
temperature chemical alloy to replace cement plugs in abandonments and
coiled tubing deployed Electrical Submersible Pumps (ESPs).
In 2017 we reduced rig move cost by 12% through better collaboration and
rig sequence optimisation. Our aviation team achieved full recertification
of all our airports. Additionally Logistics obtained ISO9001:2015
certification. We constructed a new warehouse in Marmul, significantly
maturing inventory and facility management. This contributed towards
savings of US$ 53 mln through surplus inventory removal.
In 2018 we will drive further Logistics enhancements in technology,
improvements in service quality and increase offerings and
affordability. We are planning to enhance our commuting
request system, Pro-Travel, to bring additional functionalities,
cost capture, and visibility of passenger manifests. We will adopt
solutions to improve rig move notifications to the Royal Oman
Police as well as fuel consumption management.
We will apply the G2P methodology in Logistics to drive top-quartile
performance and continuous improvement, leveraging a recently completed
benchmark across 25 Oil and Gas operators.
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5.3 People
In 2017 we continued to progress the Well Engineering Integrated Development Programme
(IDP) for our graduate intake and rolled out the CWI IDP programme. We also deployed
two field coaches to assist in the competency development of our CWI people. We had
130 people go through the Round I and Round II programmes and, in 2018, we expect
another 130 graduates to go through these programmes. 5 Well Engineers were
successfully enrolled, at Robert Gordon’s University in Aberdeen, in Master of Science
degree programmes in Well Design and Engineering; 2 are expected to complete the
programme in 2018.
In 2017 we expanded our training curriculum to cover stuck pipe prevention,
licensing courses for Greater Birba and Natih operations and a Borehole Surveying
& Anti-Collision course to close the identified competency gaps of our people
and to address some of our operational challenges. These courses include
computer simulation using local case histories of real events. Overall, 1,500
Learning Needs were addressed in 250 learning events. In 2018, about 2,000
Learning Needs are planned to be addressed in about 280 Learning events.
We are also planning to introduce a practical QAQC programme, re-
introduce the Shell Advanced Well Control W320 course and develop
an in-house Well-Head course.
Also, 32 of our Field Coaches (FC), Field Standards Officers (FSO)
and contractor HSE Managers have been certified as vocational
assessors to qualify them to assess our supervisors for HSE
competency gaps and identify competency improvement
opportunities. So far supervisors from 10 rigs and hoists have
been assessed. In 2018 we will increase the pool of field-based
HSE competency assessors with the objective of increasing our
ability to conduct more HSE competency assessment on our frontline
supervisors.
In 2018, we are also planning to simplify the Job Competency Profile (JCP)
for Salary Groups 3 and 4 and run a campaign to assess the competency of our
people in the In-sourcing organisation.
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5.4 Contracting and Procurement
2017 saw a further strengthening of contractor management, including streamlining and
optimisation to ensure continuous improvement in HSE, business delivery, and In-Country
Value (ICV).The Upper Shuaiba contract was awarded for Integrated Drilling Services for a
drilling and completion campaign for more than 300 wells. In addition, we signed the new
OCTG contract introducing the “Integrated Mill-to-Well” concept which will lead to cost
savings and reduction of HSE exposure in lifting, handling and transportation. The new
contract shows PDO’s full commitment to the Sultanate, by being the first to move its
large OCTG operation to Duqm, the Sultanate’s Oil & Gas port.
We also celebrated major ICV achievements, namely the establishment of 3 new
Electric Submersible Pumps (ESPs) workshops, the official opening of a new
OCTG tubing threading facility in Sohar, the official inauguration of the new
fishing tools manufacturing facility in Nizwa, awards to local companies in Well
Placement, TCP and Wireline Logging as well as the arrival of the first 3
vessels in Duqm to deliver 10,000 MT of OCTG.
Our long-term rig strategy aims at increasing mechanisation to improve
efficiency and reduce HSE exposure while increasing ICV. The strategy
was endorsed and the contracts were awarded in 2017. We expect to
mobilise 2 mechanised rigs in 2018.
Furthermore National Oilwell Varco (NOV) is getting ready to
open its first workshop in Oman to support our company-
owned rigs and the other drilling contractors. Drillmec opened
a similar base in 2017 to support the hoists.
In 2018 we expect to go live with our OCTG “Mill-to-Well”
concept, more contractors to move to Duqm, new rigs to start
their operations, Wave 2 of the rig strategy to be implemented,
mobilisation for the Upper Shuaiba project and further strengthening of
the Post Award Contract Management Process, including COR and Value
Stream Mapping to eliminate waste

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5.5 Enablers
Lean and Continuous Improvement as Enablers
In 2017, more than US$ 13 million/year estimated savings and 500 days/year in terms of
liberated time have been realised from Lean projects delivered and CI ideas implemented.
We trained 65 Lean managers and 22 Continuous Improvement Practitioners (CIPs). An
online Continuous Improvement Tool (CIT) was developed and deployed in 2017; to date
1,000 ideas have been progressed through the tool. The CIT has improved logging and
tracking of implementation and benefits of CIs.
In 2018, we will apply our revised Lean maturity assessment methodology to
progress our Lean maturation journey more effectively. Furthermore, we will drive
ownership of goal delivery by having our leaders act as business coaches. We will
improve collaboration and interface management through end-to-end process
thinking and optimisation of our support departments’ key processes.
To increase Lean focus in Logistics, we will develop 3 Logistics CI practitioners
and establish LSW for the entire organisation.
As part of a corporate drive to review and simplify the Corporate
Management System (CMS) documents, we are removing obsolete
content, separating mandatory from non-mandatory content and
specification from procedural content. So far we have removed
54 documents from the Corporate Management System (CMS),
we have simplified 10 procedures and changed the type of 3
documents. In 2018 we expect to complete this review, targeting
23 Wells and 20 Logistics documents.
Knowledge Management (KM)
The Wells and Logistics Knowledge Management (KM) Programme
achieved two major milestones: the launch of the UWD Knowledge
Base (UWD KB) and UWD collaboration team site. The UWD KB is now
the formal centralised database for all the learning captured in day-to-day
business activities and operations in the Well Engineering and Logistics Directorate.
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It represents a sophisticated solution to capture, record, validate and share learning in a structured
manner among the Wells and Logistics community. 300 UWD staff have attended UWD KB
awareness sessions.
Five of our people attended advanced KM certification training and have been qualified
as “Certified Knowledge Managers” as part of the formal corporate KM competency
programme.

6 Business Improvement Plan


In line with our 5-year strategic long-term goals, specific actions were planned for
2018 to help realise the yearly milestones through a Goal Deployment process.
The five improvements are as follows:
1.50% improvement in lagging HSE KPIs
2. 25% cost & time reduction
3.100% Well Quality Index
4. 25% improvement in People Productivity (This Changed from
“improvement in work effectiveness” to align with the corporate goal
on people)
5. Pursuing Lean maturity
Furthermore, each of the departments In the Well Engineering
and Logistics Directorate will develop its own scorecard,
business improvement plan and dashboards to facilitate active
monitoring of actions and targets throughout the year. In
addition, every department will identify and agree with contributors
from other departments joint Key Performance Indicators (KPIs)
and/ or dashboard elements so that delivery on those targets where
contributors are from more than one department is also actively managed.

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6.1 UWD 2018 Business Improvement Plan
1- HSE :Achieve Zero fatality & 50 % improvement in lagging KPIs a 5- year period
Target
Value Creation Realization
Action Action Party
Areas Through Q1 Q2 Q3 Q4

Implement actions to address common gaps from 2017 frontline supervisors HSE
UWH        
competency assessment
Improve competency
assessment framework
HSE Competency
Develop and certify additional HSE Lead Assessors for UWD UWZ/UWH        
and Leadership

Improve management
Develop “Let’s Talk HSE” SOP and implement in scheduled GEMBA Walks UWZ/UWDLT        
visibility

Develop and operationalise the Safe Operations Center (CCTV) UWB        

Behavior and Safety


Embed safety culture Implement IHTIMAM as per roll out strategy UWO / UWZ        
Culture

Continue rollout of Safety Leadership for Frontline Supervisors (FLS) Phase1 / Phase 2
UWH / UWZ        
programme to cover the remaining WE supervisors

UWA/ UWB / UWZ


Continue implementation of 4 patterns from the WPS deep dive        
/ UWO / UWI
Improve PS competency
Personal and
Roll out enhanced Well Control Assurance Tool (eWCAT) UWB        
Process Safety

Improve PS assurance Operationalise dedicated assurance team to drive compliance UWD        

Drive the implementation of the actions from the 3 streams, identified in the 2017 HSE UWA/ UWB / UWC
       
Review, conducted by PDO’s Internal Audit Team / UWO / UWI
Contracts HSE Improve contractual
Management compliance
Conduct quarterly reviews of the CEO HSE Plan with focus on competency and leadership, UWC / UWO
       
risk management, learning from incidents and assurance / UWZ

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2- Business Delivery: Reduction in cost & time by 25 % over a 5-year (50% for Exp. Oil)
Target
Value creation Action Action Party
Realization Through
Areas Q1 Q2 Q3  Q4

UWB, UWO, UWN,


Visualise, categorise and manage sequence across UWO, UWI and UWN        
Optimise unit sequence UWI
and stability Escalate the requirement to improve Program Build process to drive sequence
Planning and Scheduling UWB        
stability

Compliance to WDP
Develop and implement WDP for hoists and CWI UWO        
activities and timings

Optimize design (location,


Engineering Drive integration for well lifecycle UWO        
construction, intervention)

Contracts Management Improve assurance Improve contract management assurance/ verification framework UWC        

Standardize WWI Sustain SWWI for key well types and replicate for hoist and CWI activities UWO, UWN, UWI        
Operation Efficiency
UWO, UWN, UWI,
Reduce invisible lost time Develop and implement G2P for hoists, CWI and Logistics        
UWL

Operating Model
Business Sustainability Establish Wells 2025 strategy and implementation road map UWB        
optimization

3- Well Quality: Achieve 100% WQI

Target
Areas of Value
Realization Through Action Action Party
creation
Q1 Q2 Q3 Q4

As built well quality Perform study on cemented completion accessibility issues and implement
Completion accessibility UWB, UWO        
assurance recommendations

Lifecycle well quality Customize EDM to cover well quality requirements for the entire well lifecycle
EDM UWBI        
assurance (from spud to abandonment)

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4- People Productivity: 25% improvement in Manpower Productivity over a 5-year period
Areas of Value Target
Realization Through Action Action Party
creation Q1 Q2 Q3 Q4
Develop and effectively implement succession and replacement plans for JG 3
Improve Stability UWH / All        
and 4
Improve workload Develop and communicate schedules for cross-departmental activities as part of
UWDL        
distribution LSW

Simplify JCP for JG 3 and 4 UWH        


Effectiveness
Operationalise competency framework UWH        
Improve staff competency
Implement a process to ensure consistency of coaching and assessment for field
UWH        
coaches with more focus on “on the job” coaching/assessments

Review and enhance the current IDP model UWH / UWZ / UWO        

Improve Efficiency Minimize ad-hoc activities Develop and implement LSW for all support departments All Managers        

5- Lean: Achieve Lean Maturity


Areas of Value Action Party Target
Realization Through Action
creation Q1 Q2 Q3 Q4
  Improve Leadership engagement Coach all supervisors that had Lean Manager training on how to do All managers and TLs,
       
Leadership and coaching GEMBA WALK UWDL

Improve CI ideas implementation Enhance the CI Tool to visualise the cross functional CI implementation UWDL        
 
Culture
  Improve ratio of CI practitioners CI practitioners to run their 2nd and 3rd projects utilising different CI
All        
actively working on CI projects tools

Improve knowledge in CI tools


Progress Green Belt training for internal coaches UWDL        
  and techniques
Learning Enterprise
  Improve coverage of CI
practitioners and professionals in Improve coverage of CI practitioners in Logistics UWL        
the business

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6.2 2018 UWD Score Card
Year-End
Business Goal Business Measurement Business Element Unit Base Line
Target

LTIF Freq. 0.64 0.58


Achieve Zero Fatality & 50 %
HSE
Improvement in Lagging KPIs
AI-PSM-WPS-Level 1 and 2 No. 0 0

Wells delivered No. 451 628

Development wells: million US$/well US$ 2.44 1.9


Business Delivery
Exploration wells: million US$/well US$ 8.24 4.59

WRM: Activity/ String Months (total hoist including PDO hoists) No. 7.8 9.8
Reduction in Cost & Time by 25
% & (50% for Exploration Oil)
US$ PDO rigs / US$ current rigs % 81.08 77
Nimr In-sourcing
US$ PDO hoists / US$ current hoists % 97.83 92.9

Inventory Management Inventory value US$ 217 130

In-Country Value % of ICV spend out of total spend % 37 56

Achieve 100% Well Quality Index Well Quality Average WQI % (new wells) % 80 100

% of qualified LSW % NA 100

25% Improvement in Manpower


Manpower Productivity Average years in position for staff at SG4 and SG3 No. 2.35 3.5
Productivity

% of identified talented staff with a plan % 75 100

Achieve Lean Maturity Lean Maturity % of qualified managers to conduct GEMBA walks No. 0 100

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do leSS 18
7 UWD Risk Profile
Following the Risk Management Review in Q4, 2017 the key risks identified at Directorate level are shown below: out of a total of 11 risks identified,
1 risk has been removed, two new risks have been introduced, 6 risks are improving with controls in place and efforts being made to address the
remaining identified risks.

UWD RISK PROFILE – 2017 Q4


WPS TREND IN CONTROLS
14- In-sourcing
& RISK ENVIRONMENT

Potential Impact – Non-Financial - Reputation


(from the previous assessment)
Skills & 13- Contractors’
Competency Performance
High

IMPROVING
Potential Impact - Financial US$

STABLE

$100 mln DETERIORATING


Work Site
Hazards NORM
RISK RESPONSES
12- Stock CHs ACCEPTABILITY
Y Management Competencies
(of residual level of risk)
Medium

Data ACCEPTABLE
Y 3- Summer
Management
Operations
NEED
IMPROVEMENT

NEED MAJOR
IMPROVEMENT

$10 mln G Gas Wells


Delivery
New UNDER REVIEW

CHANGE
Low

SHOWS CHANGE

NEW RISK

RISK REMOVED
$1 mln
Low Medium High
LIKELIHOOD

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do leSS 19
8 List of Abbreviations and Definitions

AI-PSM-WPS Asset Integrity - Process Safety


Management - Wells Process Safety
BBS Behaviour Based Safety
BIP Business Improvement Plan
CCTV Closed Circuit Television
CEO Chief Operating Officer
CI Continuous Improvement
CIT Continuous Improvement Tool
CMS Corporate Management System
COR Cost Optimisation Review
CRT Casing Running Tool
CWI Completion and Well Intervention
DROPS Dropped Objects Prevention Scheme
EDM Engineer›s Data Model, PDO’s
corporate Wells database
EOL Equipment Operator License
ESP Electrical Submersible Pump
FC Field Coach
FLS Frontline Supervisors Safety
Leadership Training
FSO Field Standard Officer

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do leSS 20
G2P Gap-to-Potential LTIF Lost Time Injury Frequency
HiPoF High Potential Incident Frequency MT metric ton
HRS hours MVI Motor Vehicle Incident
HWO Hydraulic Work-over NOV National Oilwell Varco
IAM Internal Audit Team OCTG Oil Country Tubular Goods
ICV In-Country Value PS Process Safety
IDP Integrated Development Programme QAQC Quality Control Quality Assurance
IHTIMAM Name of PDO›s corporate Behaviour-based ROUDN I/ II (RI/II) Shell ROUND I/ II competency scheme
Safety Programme SOP Standard Operating Procedure
IOGP International Association of Oil & Gas Super LCC Super Local Community Contractor
Producers
SWWI Standard Well Written Work Instructions
IWCF International Well Control Forum
TCP Tubing Conveyed Perforation
JCP Job Competency Profile
TDS Top Drive System
JG Job Group
TRCF Total Recordable Case Frequency
JMCC Journey Management Control Centre
WCI Well Control Incident
KB Knowledge Base
WDP Well Delivery Process
KM Knowledge Management
WPS Wells Process Safety
KPI Key Performance Indicator
WRM Well Reservoir Management
LSR Life Saving Rules
WWI Written Work Instructions
LSW Leader Standard Work
LTI Lost Time Injury

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do leSS 21
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