Title:

Halliburton Management System

Supplier Audit Report Template
Document Number:
Area: Function/PSL:
FO-GL-HAL-SCQ-703A-3
Global Supplier Chain
Owner: Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain Quality Arul Periannan Elley Ong 12.Dec.2019 2 1 of 6

February 17, 2021

Juan Cleves, Julio Fernandez,

Equipo Petrolero Corp
Km 1 Variante Zipaquirá-Ubaté, Parque industrial Zuma, Bodega 65, Zipaquirá, Colombia

Haliburton Audit at Equipo Petrolero Corp (SWT Equipment rental)

Dear Gentlemen,
On December 29, 2020, a Halliburton representative audited Equipo Petrolero Corp in the remote
mode. The audit assessed Company’s practices, processes and procedures associated with the
quality management system implemented to supply SWT Equipment rental to Halliburton
Colombia

The results of the audit were infomed in the audit report RA-EPC-122020, most of the findings
reported were already addressed; opportunities for correction in the process of reviewing
customer contracts, and in determining service requirements remain unchanged.

Halliburton views quality improvement as a continuous process. To this end, please continue to
provide us with information on your quality system, operations plans and accomplishments.

We extend our appreciation to the EPC team for their involvement, cooperation and commitment
throughout this audit process.

Best regards,

Ana Solano,
Halliburton

Encl.: Audit Report, Corrective Action Summary

Copies: Audit Participants

Confidential RAC-EPC-122020 Page 1 of 6

Form WM-GL-HAL-SCQ-703A-3
 Title:
Halliburton Management System
Supplier Audit Report Template
Document Number:
Area: Function/PSL:
FO-GL-HAL-SCQ-703A-3
Global Supplier Chain
Owner: Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain Quality Arul Periannan Elley Ong 12.Dec.2019 2 2 of 6

Audit Report Number RAC-EPC-122020

Supplier’s Name Equipo Petrolero Corp
Supplier’s SAP No. 1246766
Audit Date Start: 12/29/2020 End: 12/29/2020
Audit Location(s) Remote mode
Lead Auditor Ana Solano
Audit Team Members

Qualification Audit (new supplier/plant/production line)

Surveillance Audit (re-evaluation audit)

Determine the extent to which Halliburton requirements are fulfilled
Audit Type/Objectives regarding the services provided to Halliburton Colombia / TSS

Process Audit

Others

Audit Scope
Vendor Quality Management System to manage equipment rental

ISO 9001: 2015 API Spec Q1-2013 API Spec Q2-2011

Audit Criteria and Reference
Documents
*Latest edition applied
ISO 17025: 2017 Other, see below reference documents
Reference documents:
MPA 9610025891; API Spec 6A-2018; API St 53-2018; API Spec 9A-2020; API
Spec 16C-2015; API Spec 12J-2008; API RP 8B-2014 Add.2019

Halliburton’s core value is Safety and compliance with Halliburton’s Code of Business Conduct (COBC). We take safety
and ethics seriously that all Halliburton employees and business partners are expected to adhere to both. Halliburton
COBC is available at Halliburton’s website at http://www.halliburton.com under “About Us” and “Corporate Governance”.

Report Prepared By: Ana Solano Issued Date: 2/17/2021

Confidential RAC-EPC-122020 Page 2 of 6

Form WM-GL-HAL-SCQ-703A-3
 Title:
Halliburton Management System
Supplier Audit Report Template
Document Number:
Area: Function/PSL:
FO-GL-HAL-SCQ-703A-3
Global Supplier Chain
Owner: Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain Quality Arul Periannan Elley Ong 12.Dec.2019 2 3 of 6

Meeting Key Attendance Opening Closing

Equipo Petrolero Corp
Diego Cardenas HSEQ Coord. X X

Juan Cleves Maintenance Coord. X X

Julio Fernandez Operations Eng. X X

Halliburton
Ana Solano GSCQ - SQP X X

Audit Result
Audit Rating
Recommended

Recommended with action*

Not Recommended

QMS Score 91%

Total Audit NC 1
Total Audit Observations -

Next Audit Plan

The consensus of the audit team based on audit results and supplier performance:
Next audit within 4 years from last audit, same scope.

Follow up audit within ____________ from the last audit.

Confidential RAC-EPC-122020 Page 3 of 6

Form WM-GL-HAL-SCQ-703A-3
 Title:
Halliburton Management System
Supplier Audit Report Template
Document Number:
Area: Function/PSL:
FO-GL-HAL-SCQ-703A-3
Global Supplier Chain
Owner: Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain Quality Arul Periannan Elley Ong 12.Dec.2019 2 4 of 6

A. Executive Summary

A1 - Supplier Information:
Equipo petrolero Corp is a Bolivian company committed to providing oilfield services in Bolivia,
Ecuador, Peru and Colombia.

EPC signed out a contract with Halliburton Colombia for the provision of Slickline, Well Testing
and Data Acquisition services; in addition to SWT equipment rental; nevertheless, since 2019,
this contract has only been exerted for the rental of SWT equipment.

At the moment the company does not have technical capacity to deliver Slickline, Well Testing
or Data Acquisition services due to changes in its business plan; therefore, the audit rate
reported here below only covers the SWT Equipment rental services .

The company is not recommended to provide Slickline, Well Testing or Data Acquisition
as these services are out of the company portfolio.

A2 - Audit Summary
The organization does not hold Quality Management System certifications but has gotten HSE
certification RUC® issued by the Colombian entity Consejo Colombiano de Seguridad.

This audit does not address the provision of Slickline, Data Acquisition or Well Testing
services. In the event that TSS or other PSL requires the use of any services other than SWT
equipment rental, a new audit should be carried out covering the specific scope of service to be
used.

Contract review is a weak process that should be addressed; there was no evidence that
EPC had informed Halliburton about the services removed from its commercial offering;
therefore, any failure to deliver the services included in the exhibit A of the purchase
agreement 9610025891, should be penalized as established in the same purchase
document.

See the actions implemented by the company to close audit nonconformities in the Halliburton
CAR System, under the CAR numbers:
2021-00037, 2021-00038, 2021-00039, 2021-00040 & 2021-00041

Confidential RAC-EPC-122020 Page 4 of 6

Form WM-GL-HAL-SCQ-703A-3
 Title:
Halliburton Management System
Supplier Audit Report Template
Document Number:
Area: Function/PSL:
FO-GL-HAL-SCQ-703A-3
Global Supplier Chain
Owner: Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain Quality Arul Periannan Elley Ong 12.Dec.2019 2 5 of 6

As agreed, evidence of the below mentioned elements was evaluated to determine the extent
to which the audit criteria are fulfilled.
• Contract review
• Risk management
• Contingency planning
• Service planning
• Management of change
• Service-related products preventative maintenance, inspection and testing
• Testing and measuring resources & their calibration
• Control of externally provided services and service-related products, including the
competence of PMIT external personnel
• Service Execution
• Service-related product identification and traceability
• Service performance validation
• Nonconforming service execution & Corrective action
• Control of internal and external documented information

B. QMS Audit Score

QMS Audit Result

Overall 91%
Improvement 85%
Management of Change 90%
Control of Testing, Measurement, Monitoring Equipment 100%
Production and Service Provision 85%
Purchasing 100%
Risk Assessment and Management 100%
Planning 100%
Contract Review 55%
Document and Record Control 100%
0% 20% 40% 60% 80% 100%
Percentage, %

Note: The audit report is based on a sampling of areas, documents and records reviewed during the audit; therefore the
absence of any comment in any area does not imply total compliance to meet all the requirements.

Confidential RAC-EPC-122020 Page 5 of 6

Form WM-GL-HAL-SCQ-703A-3
 Title:
Halliburton Management System
Supplier Audit Report Template
Document Number:
Area: Function/PSL:
FO-GL-HAL-SCQ-703A-3
Global Supplier Chain
Owner: Approved By: Job Revision By: Rev Date: Rev No: Page:
Supply Chain Quality Arul Periannan Elley Ong 12.Dec.2019 2 6 of 6

Corrective Action Request Summary

NC - API Spec Q2, 5.1.3

The organization did not review the requirements related to execution of the service
established in the contract with Halliburton, prior to the organization’s commitment to provide
these services. At the time of the audit, EPC did not have the capability to meet some of those
requirements.
Purchase contract 961002591, which has been extended to be valid until September 2021,
includes slickline, well testing and data acquisition services; we were informed that the
company currently has no resources available to execute these services.
When signing out contract extension, EPC did not resolve or clarify with Halliburton the
services that it does not have the capacity to provide.

Revision Date Rev No Reviewed by Summary of Key Revisions

1.May.2016 1 Issac Aguilar Initial release. See MOC 17652 for additional details
• Standardize with HMS template format.
• Further defining audit objective/type.
• Re-define types of audit finding from audit finding and audit
12.Dec.2019 2 Elley Ong
observation to major, minor non-conformance and
opportunities with improvement.
• Included audit result table for quick view on audit outcome.
To obtain a copy of a previous version of this document, please contact Supply Chain Quality

Confidential RAC-EPC-122020 Page 6 of 6

Form WM-GL-HAL-SCQ-703A-3