.

Training Proposal

Artificial Lift Systems (Progressing Cavity

Pumps)

Client: CNOOC Uganda

Kampala, Uganda.
Training In-charge,
CNOOC Uganda,
Simba Towers,
Plot 22, Acacia Avenue,
Kololo, Kampala, Uganda.

2nd October 2019

Dear Sir/Madam,

RE: INVITATION TO PARTICIPATE AT AN ARTIFICIAL LIFT SYSTEMS (PROGRESSING

CAVITY PUMPS) TRAINING

Kipya Africa Limited (Africa Drilling Solutions) is an entity that provides information, skills and
training services in the upstream oil & gas sector. Last year, Kipya conducted two technical training
programs on Artificial Lift Systems (Progressing Cavity Pumps);

• Introduction to Artificial Lift Systems (Progressing Cavity Pumps)

• Progressing Cavity Pumps - technology, installation, optimization, diagnosis and
maintenance

Some of the participants included Tullow Kenya B.V and Nile Delta Petroleum Company Ltd in
South Sudan. We will be conducting other training programs on Progressing Cavity Pump’s (PCP’s)
later in the year on the below dates;

• 4th - 6th December 2019

• 9th - 11th December 2019

The trainings will entail 2 days theory and one day practical. We write to invite CNOOC Uganda to
participate at either of the trainings or both. The cost per person is USD 3656.25 + 16% VAT, per
person. Please note that the minimum class size is four (4) persons.

Course Instructors:

Mr. Deglos Ganglangan - Progressive Cavity Pump (PCP) Field Specialist. He is a graduate in
electro-mechanical engineering and has trained in many other courses including ESP application
engineering course, VSD training, medium voltage drive course among others. He has 17 years of
practical experience and has worked with world-class oilfield service and operating companies in
Sub-Sahara Africa.

Dr. Gathuru Mburu - The Managing Director, Kipya Africa Ltd. Gathuru is a doctoral graduate in
mechanical engineering from Aberdeen university, United Kingdom, and an industry expert across
the fields of water, geotechnical, geothermal, surface mining, underground mining, Oil & Gas.

We look forward to CNOOC’s representation at the training.

Gathuru Mburu, PhD Mechanical Engineering,

Managing Director,
Kipya Africa Limited

Page 2 of 28
Chapter Description Page

1 COMPANY PROFILE 1

1.1 Location 1

1.2 Our Vision 2

1.3 Company Mission 2

1.4 Our Strategy 2

1.5 Our Values 2

1.6 Services Offered by Kipya (Africa) Limited 2

2 TRAINING EXPERIENCE 3

2.1 Example: Tullow Oil Kenya & Nile Delta Petroleum Company Ltd 3
2.1.2 Program Content 4
(a) PCP Safety and Health 4
(b) PCP Systems History and Introduction 4
(c) Review of Artificial Lift Systems and PCP Equipment 4
(d) PCP System Installation and Start-up 4
(e) PCP Operation Principle 5
(f) Troubleshooting 5
(g) Site Security 5
(h) Elastomers for PCP systems 5
(i) Course Test & Wrap Up 5
2.1.3 Tullow Oil Kenya & Nile Delta Petroleum Company – Course Evaluation by
Participants 7
2.1.4 Tullow Oil Kenya & Nile Delta Petroleum Company – Testimonials by
Participants 9

2.2 Example: Miller and Company Advocates 10

2.2.1 Program Content & Material 11
2.2.2 Miller & Co. Advocates-Course Evaluation by Participants 14

2.3 Example: KCB Bank Training on Fundamentals of Upstream Oil, Gas and
Mining 17

2.4 Other Mining, Oil & Gas Trainings by Kipya (Africa) Limited 20

3 Client List 21

Page 3 of 28
 LIST OF TABLES
Table 2: Program Timetable of the Training .........................................................................................10

LIST OF FIGURES

Figure 1: A Map showing the location of Senteu Plaza where Kipya (Africa) Ltd is Located ..................1
Figure 2: Group Photo of Tullow and Nile Delta Petroleum Company Training Participants in 2018 .....6
Figure 3: Tullow and Nile Delta Training participants during a training session in 2018 .........................6
Figure 4: Miller & Co. Advocates, Training Group photo ......................................................................13
Figure 5: KCB Bank Training ................................................................................................................17
Figure 6: Testimonial by a KCB participant ..........................................................................................18
Figure 7: Testimonial by a KCB participant ..........................................................................................19
Figure 8: A figure showing an analysis of Kipya Customers in Mining, Oil & Gas Training ..................20

Page 4 of 28
1 COMPANY PROFILE

Kipya (Africa) Limited is a Knowledge Services Company in the Earth Sciences sector (Oil, Gas,
Mining, Geothermal, Construction Drilling and Water) in East Africa. Kipya has the expertise to
design and deliver both technical and non-technical trainings across all the sectors of the
Extractives to a varied audience. Kipya has expertise in the extractives safety, health and
environmental aspects in Eastern Africa. Kipya has experience of working in the region
designing, collecting and analysing extractives-related research data. We have specific
knowledge of the extractives technical skills available in Kenya, the gaps and future
requirements. Kipya outsources extractives project personnel for specific roles in safety,
surveys, logistics, drilling, completions, infrastructure, production, pipelines and process plants.
Kipya provides technical solutions and equipment support for the extractives industry. We have
an intimate knowledge of the extractive project value chain, work with the stakeholders and
professionally navigate the linkages in our daily operations.

1.1 Location

Kipya (Africa) Limited headquarters are located in Nairobi, Kilimani, at the junction of Galana
and Lenana Roads, in a Building known as Senteu Plaza. Previously, Kipya (Africa) Limited
headquarters were located in Nairobi, Westlands, along Mpaka Road, Mayfair Massionates
(grey gates opposite Fedha Plaza), Room number B3. The company moved into the new offices
lately and are in the process of changing the address of all legal documents.

Figure 1: A Map showing the location of Senteu Plaza where Kipya (Africa) Ltd is Located
1.2 Our Vision

Our vision is to be the bridge between business and the National Community.

1.3 Company Mission

Our mission is to provide First Class knowledge for the Earth Sciences Business in Africa.

1.4 Our Strategy

Our plan of action involves deploying Competence, Innovation and Presence so as to achieve

specific project goals.

1.5 Our Values

Respectful, Resourceful, Resilient & Rightful

1.6 Services Offered by Kipya (Africa) Limited

Kipya (Africa) Limited provides three services across the sectors of Mining, Oil and gas,
Geothermal and water.

1. Technical research,

2. Specialized training,

3. Project personnel
2 TRAINING EXPERIENCE

2.1 Example: Tullow Oil Kenya & Nile Delta Petroleum Company Ltd
Kipya trained both Tullow Oil Kenya and Nile Delta Petroleum Company Ltd on;
• Introduction to Artificial Lift Systems (Progressing Cavity Pumps)
• Progressing Cavity Pumps - technology, installation, optimization, diagnosis and maintenance

Both courses entailed 2 days theory and 1 day practical.

Program Time Table of the training

2.1.2 Program Content

(a) PCP Safety and Health

In oil and gas operations, safety at work is mandatory. Safety is part of what Kipya believes in and is
part of how it delivers. This session described risk assessment, mitigation measures, general
housekeeping, and personal protective equipment among others.

(b) PCP Systems History and Introduction

The use of Progressing Cavity Pumps -PCPs- in downhole pumping applications in low deep wells has
become more common replacing, in some cases, the traditional reciprocating pumps. Among the main
advantages of this system the ability to pump heavy oils, produce large concentrations of sand, tolerate
high percentages of free gas and high efficiency, can be quoted. The PCP system development,
operation and control require models able to predict flow rate for a given differential pressure. The
system has continued to be advanced over the years. The course took the training participants through
this history.

(c) Review of Artificial Lift Systems and PCP Equipment

Artificial lift is a method used to lower the producing bottom hole pressure (BHP) on the formation to
obtain a higher production rate from the well.

The course provided basic knowledge of Artificial Lift including,

• Overview of Artificial Lift
• Comparison of Artificial Lift Systems
• Artificial Lift Analysis Using Measured Data
• Artificial Lift Selection

(d) PCP System Installation and Start-up

Adherence to proper installation procedures for both downhole and surface equipment is key to the

successful operation and performance of a PCP system. Given the many different types of equipment

available and the number of system configuration alternatives, the training reviewed the product manuals

provided by PCP equipment vendors to obtain detailed installation instructions and system operating

information for specific installations.

(e) PCP Operation Principle

This section described briefly the operational principle of a PCP, to understand the shortcomings of the
flow modelling within it.

(f) Troubleshooting

Most PCP equipment vendors provide information describing troubleshooting procedures and

suggestions for solving problems that may be encountered with their equipment. The training looked at

different ways of identifying issues with the system and how to solve the problems.

(g) Site Security

Security provides oil and gas companies the freedom to find, develop and manage assets and to deliver
supplies without interference. Being secure stems from having the correct strategy, translated through
innovative technology into a robust implementation, supported by rigorous systems management. The
training looked at various ways of ensuring that sites have ample security.

(h) Elastomers for PCP systems

In downhole applications, most progressive cavity (PC) pump failures involve the stator elastomer and
often result from chemical or physical elastomer breakdown induced by the wellbore environment. The
training looked at the mechanical and chemical properties as well as types of elastomers as well as how
to select elastomers.

(i) Course Test & Wrap Up

At the end of the course, participants sat for a test, which was followed by certificate presentation.
Figure 2: Group Photo of Tullow and Nile Delta Petroleum Company
Training Participants in 2018

Figure 3: Tullow and Nile Delta Training participants during a training

session in 2018
2.1.3 Tullow Oil Kenya & Nile Delta Petroleum Company – Course Evaluation by Participants
2.1.4 Tullow Oil Kenya & Nile Delta Petroleum Company – Testimonials by Participants
2.2 Example: Miller and Company Advocates
Kipya trained Miller and Company for two days on the Fundamentals of upstream oil, gas and mining.

Table 1: Program Timetable of the Training

 Time Day 1 Day 2

08.00 – 08.30 Arrival

08.30 – 09.30 Course Introduction The Project Life Cycle

Brief History of Oil, Gas
09.30 – 10.30 Legal Framework
and Mining
10.30 – 10.45 Break

10.45 – 11.45 The Global View Fiscal Framework

11.45 – 12.45 Kenyan Resources Exploration

12.45 – 13.45 Lunch

Health, Safety & Development &
13.45 – 14.45
Environment Production
The Industry Value
14.45 – 15.45 Stakeholders
Chain
15.45 – 16.00 Break

16.00 – 17.00 Key Industry Players Course Test

17.00 – 18.00 Open Discussion Review & Wrap-up

2.2.1 Program Content & Material

The program had the following content;

• Introduction: a welcome to the group, introduction to Kipya, introduction by the

participants, the course timetable, the course rules/housekeeping and venue logistics

• Brief history of oil, gas and mining.

▪ Origins of oil and gas drilling
▪ Key milestones and developments in the oil and gas industry
▪ Origins of mining
▪ Modern mining

• The global view

▪ Global demand in 2030 is estimated to be 60% higher than in 2000.

▪ All countries are consumers of products derived from oil, gas and minerals.
▪ Evolution of oil and gas prices is cyclical in nature but always requiring continued
high investment to secure and develop reserves
▪ Oil and Gas global trends.
▪ Global mineral production
• Kenyan Resources

▪ Definition of reserves, OIP, proven and unproven.

▪ World conventional and unconventional oil reserves.
▪ East African reserves.
▪ Kenyan sedimentary basins and oil blocks.
▪ Kenyan minerals.

• Health safety and environment.

▪ Important HSE standards and standard bodies.

▪ HSE management approaches.
▪ Evaluation of SMS
▪ EIAs

• Industry Value Chain

▪ Upstream, midstream and downstream.

▪ Crude quality
▪ Oil and gas economics
▪ Mining value chain

• Key Industry players

▪ IOCs
▪ NOCs
▪ Service companies
▪ Equipment suppliers

• Project Lifecycle

▪ Project phases.
▪ Extractives lifecycle.
▪ Project cash flow and funding.
▪ Decommissioning

• Legal Framework

▪ Upstream regulatory environment

▪ PSC
▪ Upstream Oil and Gas future
▪ Upstream mining today and in future.
▪ Extractives issues.

• Fiscal framework.

▪ Fiscal structures: Royalty, PSC and service contract.

▪ Upstream policy and roles
▪ Economic regulation and licensing regime
▪ Royalties, ring fencing, allocation of revenue, tax matters.
▪ Local content, decommissioning, stabilization clause.

• Exploration

▪ Five steps to a commercial accumulation of oil.

▪ Oil and Gas prospecting.
▪ Drilling a wildcat and rig components and personnel.
▪ Stages of mine exploration.
 • Development and Production

▪ Aims of development, scope, deliverables, constraints and project considerations.

▪ Oil recovery improvement.
▪ Underground and surface operations.
▪ Transport of oil and gas.

• Stakeholders

▪ Defining and managing stakeholders.

▪ Strategies for managing stakeholders.

Figure 4: Miller & Co. Advocates, Training Group photo

Back row: Lucky Ringa(Kipya), Clive Mulama(M), Joshua Ndere(M), Rose Onsare((M), Gathuru
Mburu(Kipya), Peter Wena(M), Pauline Kamunya(M), Valarie Odera(M), Terry Otieno(M), Mathew
Waita(Kipya), Alfred Deya(M)

Front row: Samuel Maina (M), Anne Kaguri(M), Cecil Miller(M) Monicah Gichuhi(CEO Kenya
Chamber of Mines), Ephraim Mathenge(M), Esther Wanga(M), George Mugane(M).

M- Miller & Company

KCM-Kenya Chamber of Mines
2.2.2 Miller & Co. Advocates-Course Evaluation by Participants
2.3 Example: KCB Bank Training on Fundamentals of Upstream Oil, Gas and
Mining

Figure 5: KCB Bank Training

Figure 6: Testimonial by a KCB participant
Figure 7: Testimonial by a KCB participant
2.4 Other Mining, Oil & Gas Trainings by Kipya (Africa) Limited
Below is an analysis of customers Trained by Kipya (Africa) Limited in Mining, Oil & Gas. From
the analysis, 20% of the trained persons are Lawyers.

Figure 8: A figure showing an analysis of Kipya Customers in Mining, Oil & Gas Training
3 Client List
Client Service
Oil & Gas Sector
Schlumberger Offshore Services Personnel
Aggreko International Services Personnel
Tullow Oil Kenya Training
Nile Delta Petroleum Company Ltd Training
Atlas Copco Eastern Africa Technology
Southern Engineering Company (Alpha Group) Training
GIZ - Skills for Oil & Gas Africa Research
Orion Valuers Training
Federation of Kenya Employers Training
African Alliance Training
NIC Bank Training
KCB Bank Training
I&M Bank Training
Citi Bank Training
Barclays Bank Training
Innovation Norway Training

Mining Sector
Barakali Mine Training
Achelis Group Training
Taita Taveta University College Technology
Mereka Advocates Training
Alpha Africa Asset Training
Daly & Figgis Training
Sian Gems Training
Shash Marketing Training
Africapractice Training
Directorate of Occuptional Safety & Health (Ministry of Labour,
Kenya) Training
East West Trading Training
Hannah Gitonga Advocates Training
Ashitiva Advocates Training
Optiven Training
Redline Training
SGS Training
KN Associates Training
Ecoplan Training
Toolkit Training
Axis Training
iHub Training
Miller & Co Advocates Training
Kaercher Training
Chase Bank Training
KPMG Training
Radio Africa Training
Diamond Media Training

Water Sector
Doshi and Co. Hardware Ltd Research & Training
World Vision Research
Kenya Red Cross Research

Oxfam Research
Tiles & Carpet Research
Maji milele Research
NorthRhine Consulting Ltd Research
Wilo Research
Kenya Innovative Finance Facility for Water Research
Kenya Water Industry Association Research & Training
Drilling Spares and Services Training
JB Drilling Training
Geofathom Training
Tononoka Steel Training
Davis & Shirtliff Training
Biselex Kenya Training
Rift Valley Machinery Training
Vajra Drilling Training
TAK Training
Almak Aqua Training
Waterman Training
Qara Agencies Training
TransAfrica Water Training
Water Africa International Training
Wotech Kenya Training
Adebwi Geoconsult Training
Water for the World Training & Personnel
Water Service Providers Association Research & Training
Nyeri Water and Sewerage Company Research & Training
Meru Water and Sewerage Company Research & Training
Oloolaiser Water and Sewerage Company Research & Training
Mavoko Water and Sewerage Company Research & Training
Mathira Water and Sewerage Company Research & Training
Nairobi Water and Sewerage Company Research & Training
Thika Water and Sewerage Company Research & Training
Ol Kalou Water and Sewerage Company Research & Training
Kakamega - Busia Water and Sewerage Company Research & Training
Karuri Water and Sewerage Company Research & Training
Kericho Water and Sewerage Company Research & Training
Muranga Water and Sewerage Company Research & Training
Mombasa Water and Sewerage Company Research & Training
Kisumu Water and Sewerage Company Research & Training
Tavevo Water and Sewerage Company Research & Training
Isiolo Water and Sewerage Company Research & Training
Ruiru Juja Water and Sewerage Company Research & Training
Kirinyaga Water and Sewerage Company Research & Training
Nakuru Water and Sewerage Company Research & Training
Embu Water and Sewerage Company Research & Training
Nzoia Water and Sewerage Company Research & Training
Eldoret Water and Sewerage Company Research & Training
Kilifi - Mariakani Water and Sewerage Company Research & Training
Othaya Mukurweini Water and Sewerage Company Research & Training
Kiambu Water and Sewerage Company Research & Training
Kenya Water Institute Research & Training
Collaboration Engineering Solutions and Products Research & Training
Fountain Vent Research & Training
University of Nairobi Training
Burundi Institute of Geosciences and Natural Resources Research & Training
Geological Society of Kenya Training
Water Resources Consultancy Services Training
Majitec Research & Training
TAK Water Training
PRD Rigs Training
Water Engineering and Pumping Training
Insteel Training
Insta-Pumps Engineering Training
Catholic Diocese of Nakuru Research
MBS Limited Research
Naivasha Water and Sewerage Company Research & Training