PETRONAS Procedures

and Guidelines for Upstream

Activities (PPGUA 3.0)

DRILLING AND WELL

OPERATIONS
VOLUME 8

© 2013 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by
any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner.
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Table of Contents

Executive Summary 10
Contact Information 10
Definitions 11-13
Official Correspondence 14
Company Press Release 14
Section 1: Drilling Programme Approval 15
1.1 Notification 15
1.2 Wellsite Survey and Shallow Hazard Report 15
1.3 Well Positioning 15
1.3.1 Pre-survey Preparation 15
1.3.2 Positioning Operations 16
1.3.3 Post-positioning Works 16
1.4 Notice of Operations (NOOP) 16-17
1.5 Variations 17
Section 2: Recording and Reporting 18
2.1 Priority Reporting 18
2.2 Rig Arrival and Release Notice 18
2.3 Daily Drilling Report 18-19
2.4 Final Drilling and Completion Report 19-20
2.5 Supporting Reports 20
Section 3: Drilling Quality Assurance/Quality Control 21
3.1 Quality Plan 21
3.2 Quality Requirements 21
3.3 Quality Implementation and Continuous Improvement 21-22
Section 4: Drilling Unit Design, Manning and Logistics 23
4.1 Drilling Unit Design 23
4.1.1 Drilling Unit Inspection 23
4.1.2 General Arrangement Drawings 23-24
4.2 Blowout Preventer Equipment 24
4.3 Protection Against External Hazards 24
4.4 Personnel Safety and Welfare 24
4.4.1 Safety Guards and Exits 24
4.4.2 Derrick Escape 25
4.4.3 Rotary Tongs 25
4.4.4 Medical Facilities and Provisions 25

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4.5 Fire Protection 25
4.5.1 Fire Fighting Equipment 25-26
4.5.2 Fire Alarm System 26
4.6 Gas Detection 26
4.7 Pollution Prevention 26
4.8 Helideck on Drilling Units 26-27
4.9 Pressure System 27
4.10 Electrical Installation 27
4.10.1 Equipment and Standards 27
4.10.2 Lighting 28
4.10.3 Emergency Electrical Power Supply 28
4.11 Forced Air System and Ventilation 28
4.11.1 Hazardous System 28
4.11.2 Ventilation 28
4.11.3 Engines and Motors 29
4.11.4 Exhaust Pipes 29
4.12 Weather Data Recording 29
4.13 Diving 29
4.14 Emergency Shutdown 29
4.15 Manning 29
4.16 Support Craft 30
Section 5: Well Design and Drilling Operations 31
5.1 Drilling Unit Moving and Positioning 31
5.1.1 General Provision 31
5.1.2 Anchor Testing for Drilling Unit 31
5.1.3 Bottom Supported Unit 31-32
5.1.4 Dynamically Positioned Units 32
5.1.5 Diving Operations 32
5.2 Casing and Cementing 32
5.2.1 Drive Pipe 33
5.2.2 Conductor Casing 33-34
5.2.3 Surface Casing 34
5.2.4 Intermediate Casing 34
5.2.5 Production Casing 34-35
5.2.6 Casing Pressure Test 35-36
5.2.7 Records 36
5.2.8 Cementation 36-37

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5.2.9 Excess Cement Volume 37
5.2.10 Inadequate Cement Job 37
5.3 Well Directional Survey 37
5.3.1 Vertical Well 37
5.3.2 Directional Well 37-38
5.4 Well Control Equipment and Testing 38
5.4.1 BOP System 38
5.4.2 Auxiliary Equipment 38-39
5.4.3 Diverter System 39
5.4.4 Surface BOP Stack 39-40
5.4.5 Subsea BOP Stack 40-41
5.4.5.1 Subsea BOP Diversion 41
5.4.6 BOP Test 41
5.4.6.1 BOP Control System 41-42
5.4.6.2 Pressure Test 42
5.4.6.3 Function Test 42-43
5.4.7 Inspection and Maintenance 43
5.4.8 Personnel Competency 43-44
5.5 Drilling Fluid Programme 44
5.5.1 Primary Well Control 44-45
5.5.2 Drilling Fluid Test 45-46
5.5.3 Drilling Fluid Quantity 46
5.6 Formation Integrity Test 46
5.7 Lost Circulation 47
5.8 Detection of Overpressure 47
5.9 Suspension of Operations 47-48
5.10 Shallow Hazards and Hydrocarbons 48
5.11 Underbalanced Drilling 49
5.12 H2S Drilling Operations 49
5.12.1 Physical Properties and Toxicity 49-50
5.12.2 Breathing Equipment 50
5.12.3 H2S Gas Detection 50
5.12.4 Wind Direction Equipment 50
5.12.5 Ventilation 50
5.12.6 Personnel Training 51
5.12.7 Contingency Plan 51
5.12.8 Drilling Unit Equipment 51-52

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5.12.8.1 Drill Pipe 52
5.12.8.2 Tubulars 52
5.12.8.3 BOP and Related Equipments 52
5.12.8.4 Flare System 52
5.12.9 Drilling Operations 52
5.12.9.1 Pipe Trips and Stripping 52
5.12.9.2 Well Control 53
5.12.9.3 Coring 53
5.12.9.4 Drilling Fluid 53
5.12.10 Well Testing Operations 53
5.13 HPHT Drilling Operations 54
5.13.1 Risk Management 54
5.13.2 Personnel Training 54
5.13.3 Preparation and Planning 54-55
5.13.4 Well Engineering and Design 55
5.13.5 Drilling Unit and Equipment 56
5.13.6 Contingency Plan 56
Section 6: Formation Evaluation 57
6.1 Drill Cutting Sampling 57
6.1.1 Sample Frequency 57
6.1.2 Sample Container 57
6.2 Coring 57
6.2.1 Conventional Cores 57
6.2.2 Side Wall Cores 57-58
6.3 Formation Evaluation Logging 58
6.4 Oil and Gas Flow Testing 58
Section 7: Completion Operations 59
7.1 General Provision 59
7.2 Wellhead Equipment 59
7.3 Tubing Requirements 59-60
7.4 Subsurface Safety Valve 60
7.4.1 Installation 60
7.4.2 Valve Specifications 60-61
7.4.3 Reinstalling, Testing and Maintenance 61
7.4.4 Tubing and Plug Testing 61
7.4.5 Additional Protective Equipment 61
7.4.6 Records 61-62

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7.5 Packer Requirements 62
7.5.1 Cement Packer 62
7.5.2 Circulating Device 62
7.6 Separation of Zones 62
7.7 Landing Nipples 63
7.8 Completion Fluid 63
7.9 Packer Fluid 63
Section 8: Barriers and Well Integrity 64
8.1 Number of Well Barriers 64
8.2 Barrier Failure and Restoration 64
8.3 Barrier Material 64
8.3.1 Solidified Cement 64
8.3.2 Mechanical Barrier 64-65
8.3.3 Fluid Barrier 65
8.4 Well Integrity Management 65
Section 9: Plug and Abandonment of Wells 66
9.1 Responsibility to Abandon a Well 66
9.2 Application to Abandon a Well 66-67
9.3 Subsequent Report of Abandonment 67
9.4 Permanent Abandonment 67
9.4.1 Isolation of Zones in Open Hole 67-68
9.4.2 Isolation of Open Hole 68
9.4.3 Plugging or Isolation of Perforated Intervals 68-69
9.4.4 Plugging of Casing Stub 69
9.4.4.1 Stub Terminating Inside Casing String 69
9.4.4.2 Stub Terminating Below Casing String 69
9.4.4.3 Liner Top or Screen 69-70
9.4.4.4 Plugging of Annular Space 70
9.5 Surface Plug 70
9.6 Testing of Plugs 70
9.7 Abandonment Fluid 70-71
9.8 Clearance of Location 71
9.9 Well Suspension 71
9.10 Temporary Well Suspension 71
9.11 Suspended Well 71

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Section 10: Workover and Well Intervention Operations 72
10.1 General Requirement 72
10.1.1 Well Intervention 72-73
10.1.2 Workover 73
10.1.3 Operations 73
10.2 Workover Unit and Equipment 73
10.2.1 Workover Structure 73
10.2.2 Travelling Block Safety Device 73
10.2.3 Pumping Equipment 73-74
10.2.4 Pumping Operations 74
10.2.5 Hazardous Chemicals 74
10.3 Well Unloading Operations 74-75
10.4 Notification and Submittal Requirements – Workover 75
10.4.1 Notice of Workover Operations and Major Well Intervention 75
10.4.2 Workover Reports and Data Retention 76
10.4.3 Daily Workover Report 76
10.4.4 Final Workover Report 76-77
10.5 Major Well Intervention Operations 77
10.6 Notification and Submittal Requirements – Major Well Intervention 77
10.6.1 Well Intervention Activity Reports 77-78
10.7 Routine Well Intervention Operations 78
10.8 Well Control Equipment 78
10.8.1 Workover Pressure Control Equipment 78
10.8.2 Well Intervention Pressure Control Equipment 79
10.8.2.1 Coil Tubing Operations 79
10.8.2.2 Electric Line or Braided Line Operations 79
10.8.2.3 Slickline Operations 79
10.8.2.4 Snubbing Operations 79-80
10.8.3 Other Equipment 80
10.8.4 Well Control Fluids 80
10.8.5 Well Control 80
10.8.6 Pressure and Function Test 81
10.8.6.1 Pressure Test 81
10.8.6.2 Function Test 81
10.8.6.3 Lubricators 81
10.9 Emergency Shutdown (ESD) 81
10.10 Wireline Operations 82

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10.10.1 General Requirements 82
10.10.2 Operations in Cased Hole 82
10.10.3 Operations in Open Hole 83
10.10.4 Swabbing Operations 83-84
10.11 Rigging Up or Down of Workover or Completion Equipment 84
Section 11: Onshore Drilling Operations 85
11.1 Drill Site and Camp Design 85
11.1.1 License and Permits 85
11.1.2 Risk Assessment 85-86
11.1.3 Access Road 86
11.1.4 Campsite 87
11.1.5 Water Pit and Drilling Fluid Pit 87-88
11.1.6 Flare Pit and Vent/Bleed-Off Line 88
11.1.7 Water Well and Water Source 88
11.1.8 Fencing and Well Security 88
11.2 Environment Protection and HSE 89
11.2.1 Emergency Response 89
11.2.2 Protection of Fresh Water Sands 89
11.2.3 Well Near Water Source 89
11.2.4 Drilling Liquid Waste, Contamination and Spills 89-90
11.2.5 Fire Prevention and Safety 90
11.2.5.1 Smoking 90
11.2.5.2 Engines Exhaust 90
11.2.5.3 Engines Intake 91
11.2.6 Restoration of Drill Site 91
11.3 Well Design and Drilling Operations 91
11.3.1 Reference for Well Depth 91
11.3.2 BOP System 91
11.3.3 Pressure and Function Test 91
11.3.4 Casing Programme 92
11.3.4.1 Stove Pipe 92
11.4 Plug and Abandonment of Well 92
Section 12: Onshore Completion, Workover and Intervention Operations 93
12.1 General 93
12.2 Subsurface Safety Valve 93
12.3 Well Stimulation 93
12.4 Disposal of Produced Fluids 93-94

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12.5 Onshore Wellhead Valve Assembly 94
12.6 Wells on Pump 94
Section 13: Waste Material Handling and Disposal 95
13.1 Material Handling 95
13.1.1 Bulk Material 95
13.1.2 Other Material 95
13.2 Disposal of Material 96
13.2.1 Drilling Fluid 96-97
13.2.2 Solid Waste 97
13.2.3 Liquid Waste 97-98
13.2.4 Sewage 98
13.3 Pollution Prevention 98
13.3.1 Offshore Pollution 98
13.3.2 Blowout Contingency Plan 98-99
13.3.3 Onshore Pollution 99-100
Abbreviations 101-103
Appendix 1 104-106
Acknowledgements 107

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Executive Summary
This volume provides procedures for conducting offshore and onshore well
drilling, completion, testing, workover, intervention and servicing activities in
Malaysia. These procedures may be added to or amended from time to time upon
written notice by PETRONAS and provided such additions or amendments are
consistent with the provisions of the Contract. In adding to or amending the
procedures, PETRONAS shall consider the incremental expenditures which may be
incurred by Contractor in complying with the amended procedures.

This document provides auditable procedures for planning, preparation and

execution phases including well design, operations, equipment specification and
requirements for inspections, testing and audits including High Pressure High
Temperature (HPHT) well design soundness verification and deepwater well
contingency plan. Contractor may request exception or exemption to these
procedures and exception or exemption may be granted when PETRONAS and
Contractor agree that prudent practice is served and Health, Safety and
Environment (HSE) risk arising from the exception or exemption remain As Low As
Reasonably Practicable (ALARP).

PETRONAS shall have the right to be actively involved in all phases of Contractor’s
well drilling, completion, testing, workover, intervention and servicing activities
planning, preparation and execution.

Contact Information
All correspondence related to this volume shall be addressed to:

General Manager
Drilling
Petroleum Operations Management
Petroleum Management Unit

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Definitions
In this procedure, terms and expressions not specifically defined below shall have
the sense and meaning commonly attributed to them in the oil and gas exploration
and production industry unless the context requires otherwise:

TERM DEFINITION
Autoshear System A safety system that is designed to automatically
shut-in the wellbore in the event of a disconnect of the
Lower Marine Riser Package (LMRP). When the autoshear is
armed, a disconnect of the LMRP closes the shear rams.
Coiled-Tubing Operations Operations using spooled non-jointed pipe through the
wellhead and well tubing.
Conductor Casing The second casing string set in the order of normal
installation based on the relevant engineering and/or
geological factors (including the presence or absence of
hydrocarbons, potential hazards and water depth). The
Conductor Casing may also be first casing string set in lieu
of Drive Pipe or Structural Casing to support unconsolidated
deposits and to provide hole stability for initial drilling operations.
Deadman System A safety system that when armed is designed to automatically
close the wellbore in the event of a simultaneous absence of
hydraulic supply and signal transmission capacity in both subsea
control pods.
Deepwater Generally described as water depth beyond 300 metres.
Diverter A device for the purpose of diverting the uncontrolled flow
of fluid from the well bore.
Drill Stem Test A test that is performed by allowing formation fluids to
flow to the surface through the drill pipe or test string. It
is normally used for determination of well productivity.
Drilling Programme The programme for the drilling of one specific well.
Drilling Sequence A programme for the drilling of one or more wells as
presented in the annual Work Programme & Budget (WPB) and
its subsequent revisions.
Drilling Unit A drill ship, submersible, semi-submersible, barge, jack-up, land
rig or other vessels used in a drilling programme and includes
a drilling rig and other related facilities installed on a vessel.

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TERM DEFINITION
Drive pipe or Structural The first casing string set in the order of normal installation
Casing by driving, jetting or drilling to a competent bed as means to
provide support to unconsolidated deposits and to provide
hole stability for initial drilling operation.
Emergency Disconnect A system that when activated initiates a pre-programmed
System (EDS) sequence of well securing Blowout Preventer (BOP) functions in
a minimum amount of time prior to disconnection of the LMRP.
External Hazard Environmental conditions occurring on the drilling unit or
drilling base which threaten the safety of the operation.
High Pressure High A well generally described as having an undisturbed
Temperature (HPHT) Bottom Hole Temperature (BHT) greater than 300°F (149°C) and
maximum pore pressure exceeding 0.8 psi/ft or requiring
pressure control equipment with a rated working pressure in
excess of 10,000 psi.
Intermediate Casing The string or strings of casing set after the surface casing in
the order of normal installation to protect against anticipated
pressures, mud weight, sediment, and other well conditions.
The setting depth for this casing is normally based on the
pressure test of the exposed formation below the surface
casing shoe or any other previous intermediate casing shoe and
anticipated formation pressure of the hole section to be drilled.
Kick Influx of wellbore fluid into the wellbore and possible loss
of primary control of the well which shall be controlled by
secondary control (BOP).
Liner A string of casing installed inside a casing string or
another liner and lapped back inside the previous casing or liner
for at least 30 metres. A liner may be used as a drilling liner
or production liner. A liner may also be tied back to surface if
required in which it will be regarded as a production string.
Lubricator Assembly A setup consisting of wireline BOP, a riser assembly with a bleed
valve and a wireline pack off.
Non-FDP wells Wells that are not included in the original approved Field
Development Plan (FDP) and require additional approval from
PETRONAS. A minimum of fourtteen (14) days notice shall
be given prior to spudding the well.
Offshore Well A well drilled from offshore drilling unit.

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TERM DEFINITION
Oil Spill Any unexpected loss of crude oil, condensate or hydrocarbon
containment that reaches the environment, for example,
water or land irrespective of quantity recovered.
Open Hole A well bore or portion of a wellbore that is not protected by
casing.
Production Casing A string of casing which is set for the purpose of completing the
well for production.
Shooting Nipple Assembly Wireline packoff and a riser assembly held in place by BOP.
Small-Tubing Operations Operations using jointed pipes through the wellhead and well
tubing.
Snubbing Operations Operations using jointed tubing or drill pipe and a snubbing unit
under pressure conditions, either through the wellhead valve
assembly and well tubing of a completed well or through the
BOP and wellbore of a conventional operation.
Spud The initial penetration of the ground or sea floor for the purpose
of drilling a well.
Stripping Operations Operations that require manipulation of the drill string or work
string through BOP, under low or moderate pressure, without
the use of a snubbing unit.
Surface Casing The casing string set after the Conductor Casing in the order
of normal installation in a competent bed based upon relevant
engineering and/or geological factors, including the presence
or absence of hydrocarbons, potential hazards, and water
depths. The Surface Casing shall be set in order for the next hole
section to be drilled with BOP.
Waste Material Refuse, non-biodegradable garbage or any other useless
material generated during drilling and related operations
excluding fluid and drill cuttings.
Well Intervention Remedial operations performed with the christmas tree not
Operations removed.
Well Material Any formation or reservoir material obtained from a well and
includes cuttings, cores or fluids.
Well Suspension The temporary cessation of drilling/completion activities
(waiting for final completion or abandonment).
Workover Operations Remedial operations performed with the christmas tree
removed and BOP installed.

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Official Correspondence
Refer to Appendix 1 of this volume.

Company Press Release

Contractor shall obtain prior written approval from PETRONAS for all press
releases issued regarding wells drilled under these procedures.

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Section 1: Drilling Programme Approval

Notice of Operations (NOOP) shall be prepared by Contractor and submitted to

PETRONAS for approval or notification (whichever is appropriate) in a timely
manner. Significant deviations to the NOOP programme with prior PETRONAS’
approval and Management of Change (MOC) process shall be managed by
Contractor with considerations on impact to health, safety, environment, project/
well costs and PETRONAS/Contractor image. Contractor is responsible to avoid
retroactive approval request by ensuring timely submission of all request to
PETRONAS.

1.1 Notification
Contractor shall notify PETRONAS in the Work Programme & Budget (WPB)
and subsequent revisions of its intention to undertake any particular
Drilling Campaign.

1.2 Wellsite Survey and Shallow Hazard Report

Contractor shall conduct high-resolution geophysical site surveys to
determine the existence of shallow gas, near-surface faulting, slumping,
unusual bottom features, and other potential shallow hazards prior to the
commencement of drilling operations. Remote sensing tools normally
utilised in conducting such surveys shall include side-scan sonar,
sea-bottom profiler and other shallow seismic instrument. Survey line
spacing shall be a maximum of 250 metres apart in a 1-square-kilometre
area centred on the wellsite. If in the opinion of the Contractor, surveys exist
for a location nearby to the proposed location which may be taken as
representative of the new location, or if extensive experience in a local
area has shown that such surveys are not required, then additional surveys
may not be required subject to PETRONAS’ approval. As and when
requested such geophysical site surveys and shallow hazards reports shall be
submitted to PETRONAS.

For deepwater operations, hazards such as shallow gas, shallow water flow,
hydrates and expulsion features should be evaluated. 3D seismic or other
imaging methods may be used in lieu of conventional shallow seismic, as
appropriate.

1.3 Well Positioning

1.3.1 Pre-survey Preparation

Contractor shall notify PETRONAS of a proposed well location prior
to any positioning work.

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1.3.2 Positioning Operations
Contractor shall ensure the safety of pipelines and cables underlying
subsea and perform pre-spud and final post-spud verifications.

1.3.3 Post-positioning Works

Contractor shall submit to PETRONAS a full operation report when
available. The report shall be in hard copy or acceptable electronic
format.

1.4 Notice of Operations (NOOP)

The NOOP for all wells shall be submitted at least forteen (14) days prior
to spud date in hard copy and acceptable electronic format. Field
Development Plan (FDP) wells’ NOOP shall be submitted for information.
All other wells’ NOOP shall be submitted for approval. The NOOP shall
contain but not limited to the following information:

a) Objectives of the well;
b) Location map;
c) Prognosis cross-section;
d) Depth of well and proposed completion target (in True Vertical Depth
(TVD) and Measured Depth (MD));
e) Directional drilling plan including anti-collision plan;
f ) Casing programme and casing design criteria;
g) Mud and cement plan;
h) Bit selection and hydraulic programme (for each hole size);
i ) Well logging, coring and other formation evaluation programme;
j ) Estimated formation pressure and fracture gradient;
k) Anticipated problems and drilling hazards;
l ) Authorisation for Expenditure (AFE) breakdown;
m) Estimated depth vs days and depth vs cost chart;
n) Name and type of drilling unit;
o) Contingency plan for operational problems. A Blowout Contingency
Plan (BOCP) shall be provided in accordance with Section 13.3 for
deepwater and HPHT wells;
p) Propose full Plug & Abandonment (P&A) with drawing for exploration,
appraisal and suspended wells;
q) Well schedule;
r ) Completion diagram (for development wells);
s ) BOP configuration diagram; and
t ) Negative or inflow test procedures and criteria for a successful test, if
applicable (refer to Section 5.2.6).

Pre-spud meeting and/or drill on paper should be conducted. During the

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execution phase, if Contractor anticipates that there will be a potential cost
overrun of 10% from the approved well cost or Non-Productive Time (NPT)
more than fifty (50) consecutive hours, Contractor shall give written notice to
PETRONAS. In addition, if the above well has been completed, Contractor
shall submit and present the case to PETRONAS.

1.5 Variations
Contractor may implement variations or deviation to the approved NOOP as
deemed operationally necessary or desirable to achieve the agreed
objectives of the well in an efficient and safe manner, however prior
PETRONAS’ approval is required for significant deviations. The request for
approval submission shall include risk assessment and/or MOC documents.
Significant deviation refers to any changes that increase health, safety,
environmental or financial risk and/or well cost.

PETRONAS may require Contractor to show that specific equipment or
procedures are consistent with the interests of safe and efficient operations.
Contractor shall modify or replace any equipment or alter any procedure
that cannot be shown to be safe. Contractor shall install new equipment or
initiate new procedures if necessary to conduct safe operations.

Notwithstanding the above, during an emergency or contingency,
procedures or equipment may be altered without prior PETRONAS’ approval
and in such cases, PETRONAS shall be notified forthwith of the alterations
and the underlying circumstances within 24 hours.

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Section 2: Recording and Reporting

Drilling and well operations carried out by Contractor in Malaysia shall be

reported to PETRONAS and relevant authorities for approval and information within
the stated timeline. The reporting and report contents requirement shall adhere to
the procedures in this section. Contractor shall also record all the important
information pertaining to the operation and this information shall be made
available to PETRONAS as and when requested.

2.1 Priority Reporting
Contractor shall inform PETRONAS immediately by the most rapid and
practical means of every significant situation, event or accident, including
but not limited to the loss of life, missing persons, serious injury, fire, loss of
well control, imminent threat to safety of drilling unit, drilling rig or
personnel, oil or toxic chemical spill, or the confirmed discovery of oil and
gas.

Contractor shall submit to PETRONAS, as soon as practicable, a
comprehensive written report of the situation, event or accident, and shall
notify relevant authorities as circumstances require. Refer to Volume 3:
Health, Safety & Environment.

2.2 Rig Arrival and Release Notice

Contractor shall inform PETRONAS within 24 hours by fax, e-mail or
equivalent means:

a) Of the date that the drilling unit arrives at the drilling location; and
b) Of the actual hour and date that the drilling rig or drilling unit is released
from the drilling location

Contractor shall also notify related government departments i.e. marine

department, port authorities, fisheries department, maritime enforcement
agency and customs department at least two (2) months prior to rig arrival
and rig departure.

2.3 Daily Drilling Report

Contractor shall submit the Daily Drilling Report (DDR) to PETRONAS
containing but not limited to the following information:

a) Well name or number;
b) Rig name and type;
c) Plan Total Depth (TD) in MD and TVD (metre);
d) Current depth;

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e) Plan cost (USD or RM);
f ) Current cost (daily and cumulative);
g) Plan and actual days;
h) Days ahead/behind;
i ) The operations for last 24 hours;
j ) NPT description and duration (daily and cumulative NPT);
k) Set casing/liner size, properties and set depth;
l ) Wellbore/directional survey for last 24 hours progress;
m) Drilling fluid properties;
n) Bottom-Hole Assembly (BHA) and drilling bit description;
o) Number of Personnel on Board (POB); and
p) HSE incidents

2.4 Final Drilling and Completion Report

Contractor shall submit to PETRONAS a Final Drilling and Completion Report
and electronic copy/soft copy on CD within sixty (60) days after a well has
been drilled and completed, suspended or abandoned. PETRONAS may also
request additional information when the need arises.

The report shall include, but not limited to the following information:

a) Well number and type;
b) Rig name and type;
c) Surface and sub-surface location grid and geographical coordinates of
the well;
d) Well depth (MD and TVD);
e) Maximum angle reached;
f ) Total days spent on the well;
g) Summary of drilling operations;
h) Basic reservoir/geological details;
i ) Final wellbore sketch or completion diagram showing all downhole
components (with their I.D., O.D., length, depth of installation) and
description of wellhead and christmas tree;
j ) Type and density of fluid left in the hole;
k) Perforated intervals;
l ) Initial production test results including registered pressure, fluid/gas flow
rates and duration of test;
m) List of wireline logs and its interpretation (cored intervals should also be
shown);
n) Casing size, type, grades, weights, depth set in MD and TVD;
o) Mud composition, amount used and average per well oil-on-cuttings
(OOC) percentage for drilling with Low Toxicity Oil Based Mud (LTOBM)
or Synthetic Based Mud (SBM);

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p) Cement density, composition, volume of cement used and their
estimated top in annulus;
q) Depth-days chart, actual cost vs proposed;
r ) Operational-time breakdown;
s ) Summary of HSE incident and scheduled waste;
t ) Summary of NPT;
u) Directional drilling results and wellbore trajectory; and
v ) Final estimated well cost

2.5 Supporting Reports

Reports obtained or compiled by the Contractor regarding applied research
work or studies, that contain information which is relevant to the safety of
drilling operations in the programme area, shall be submitted to PETRONAS
as soon as they are available. PETRONAS may request any additional
information with regards to drilling operation at any time and Contractor
shall submit the information to PETRONAS within agreed timeline.

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Section 3: Drilling Quality Assurance/Quality Control

Contractor shall have quality plans and procedures in place to ensure all drilling
and completion services and goods provided are in accordance with contractual
requirements (between Contractor and third party contractors) and able to perform
as per the stated performance.

3.1 Quality Plan

Contractor shall prepare a Quality Plan which as a minimum outline the
following:

a) Categorising of services and goods based on its criticality considering

the potential impact to health, safety, environment, well integrity, and
project cost should an incident occur;
b) Planned process controls to ensure quality is integrated from well
planning to execution;
c) Capture a process for managing non-conformance from actual event in
the workshop or field to closure;
d) Methods utilised to measure quality performance and improvement
process; and
e) Plans for periodic third party contractor assessments to ensure quality
requirements are maintained and followed

3.2 Quality Requirements

Contractor shall document all quality requirements in contract documents
and/or purchase orders executed with drilling rig and third party contractors:

a) All drilling and completion equipment shall be delivered in accordance

with the relevant industry standard(s) such as American Petroleum
Institute (API) and International Organization for Standardization (ISO);
and
b) Drill strings shall be inspected in accordance to the latest version of TH
Hill Standard DS-1 or equivalent inspection standard as applicable

3.3 Quality Implementation and Continuous Improvement

All parties involved in well drilling and completion shall be responsible for
ensuring quality from planning to execution. Contractor shall have qualified
personnel responsible to ensure equipment and goods are inspected per the
quality requirements. Processes to manage changes or deviations to
Contractor’s Quality Assurance/Quality Control (QA/QC) requirements shall
be in place.

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QA is a continuous improvement process. Contractor shall periodically
review their performance (for example, non-productive time & cost,
non-compliance reports, etc.) to gauge the effectiveness of Contractor,
drilling rig and third party contractor’s QA/QC system. The process shall
incorporate a quality database and lessons learnt. Contractor drilling
management shall be responsible to ensure effectiveness of Contractor’s
QA/QC system.

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Section 4: Drilling Unit Design, Manning and Logistics

Drilling units, support craft, base office and warehouses used by Contractor
shall be ready with adequate fit-for-purpose equipment, detailed procedures,
competent personnel and support services to ensure operation objectives are met and
carried out with adherence to HSE concerns and regulations. As and when
requested by PETRONAS, copies of approval or certificates from recognised body
shall be submitted to demonstrate equipment reliability and operation safety.

4.1 Drilling Unit Design

Contractor shall submit upon the request of PETRONAS, copies of valid
approvals or certificates from a recognised certification body to demonstrate
that the proposed drilling programme can be safely executed by the drilling
unit with a view to stability, operating limits, structural strength, fatigue, etc.,
during the course of all anticipated combinations of environmental and
functional loads.

In the event that weather forecasts indicate conditions during which normal
drilling operations could not continue, Contractor shall take necessary
actions to interrupt drilling operations in time, so that the safety of the well
and drilling unit shall not be jeopardised.

4.1.1 Drilling Unit Inspection
After obtaining PETRONAS’ approval to award, Contractor shall be
responsible for conducting full drilling unit inspection by an industry
recognised third party at an opportune time prior to contract award.
The aim of this inspection is to gain accurate assessment of the state
of maintenance and working conditions of the equipment and
systems on the drilling unit in accordance with the drilling unit’s
contractual requirements. The objectives are to limit downtime and
improve reliability and safety. All critical actions from the inspection
shall be duly closed out prior to spudding of the first well. The
inspection report shall be made available upon request by
PETRONAS.

4.1.2 General Arrangement Drawings

Upon request by PETRONAS, Contractor shall submit dimensional
layouts and drawings of the drilling rig and camp. Upon request by
PETRONAS, Contractor shall submit general arrangement drawings
for all surface and subsea equipment on the drilling unit which shall
include:

a) arrangements of drill floor, cellar deck, spider deck, moonpool

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areas and their associated equipment;
b) arrangements of mud tanks, high and low pressure mud and
cement slurry systems and bulk transfer system;
c) arrangement of all surface and subsea well control systems
including arrangement of choke manifold, testing and flaring
systems;
d) arrangement of other pressure systems; and
e) position and type of all life-saving appliances, fire extinguishing
and protection systems, fire stations and appliances,
navigational safety appliances and alarm systems

4.2 Blowout Preventer Equipment

Appropriate well control equipment shall be installed, maintained and tested
to ensure well control in the course of normal safety drilling. The working
pressure of such equipment shall exceed the maximum anticipated surface
pressure to which it may be subjected to.

4.3 Protection Against External Hazards

Contractor shall take precautions necessary to protect personnel and
equipment from the external hazards of air and marine navigation and
weather.

A red aircraft warning light of at least fifty (50) candelas shall be mounted
at the top of the derrick so as to be visible from all directions.

Drilling units and support craft shall have navigational safety and marine aids
which shall meet as a minimum, the requirements of the classification
bureau; and for aircraft, the civil aviation regulatory authority.

Drilling units shall have emergency equipment and life-saving devices

sufficient to permit the escape of all personnel under all conditions which
shall meet as a minimum, the requirements of the classification bureau.

4.4 Personnel Safety and Welfare

4.4.1 Safety Guards and Exits
The drilling unit shall be equipped with safety guards on all
potentially dangerous or moving parts of machinery and with guard
rails around the perimeter of the drill floor, deck areas, walk-ways,
stairs and any other working area where persons may fall more than
1 metre. The derrick floor shall have at least two exits and preferably
one each on opposite sides of the drill floor.

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4.4.2 Derrick Escape
When a person is required to work in the derrick as part of normal
drilling operations, an escape device acceptable by general industry
practices shall be provided from the working platform in the derrick.
Persons required to work on the derrick or at a height of 2 metres or
higher, shall wear safety belts complete with tail rope having
adequate length and strength. Contractor shall ensure that such
safety belts are provided at all times on the derrick.

4.4.3 Rotary Tongs

All make-up and breakout rotary tongs shall have suitable back-up
lines made from flexible wire rope and tied down to a post having the
rigidity to withstand maximum tong line pull.

4.4.4 Medical Facilities and Provisions

An adequately equipped and supplied first aid room shall be provided
at the rig site. A drilling unit shall have a sick bay which is easily
accessible and is equipped and supplied to handle all minor indus
trial accidents. The facilities in the sick bay shall include first aid and
resuscitation equipment and shall have at least one (1) bed for every
fiffty (50) persons or portion thereof. Detailed requirements are
as per Volume 7, Section 8: PETRONAS Guidelines for Barges
Operating Offshore Malaysia (PGBOOM).

4.5 Fire Protection

Firefighting equipment and alarm shall be provided and maintained at every
drill site to combat all classes of fires.

4.5.1 Fire Fighting Equipment
Each drilling unit shall:

a) Have appliances whereby at least two (2) jets of water, each of
53 gal/min at a minimum pressure of 40 psi can be rapidly and
simultaneously directed into any part of the unit’s substructure
at least one (1) of which shall be from a single length of hose;
such appliances shall include at least two (3) power driven pumps
located separately and at least three (3) fire hoses; in any case
at least one fire hose shall be provided for every 30 metres in
length of the unit or fraction thereof.

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b) Have readily accessible:
• at least two (2) proximity firefighting suits;
• four (4) self-contained portable breathing devices; and
• a suitable water supply source of sufficient capacity to
assure adequate water supply

Notwithstanding the above, PETRONAS may require additional

firefighting equipment to be installed if such equipment is considered
necessary.

4.5.2 Fire Alarm System

A drilling unit shall be equipped with a fire alarm system that includes
detectors located:

a) in engine rooms;
b) in the boiler rooms;
c) in paint lockers;
d) in pump and mud tank rooms; and
e) in the accommodation

and which is capable of automatically sounding an alarm and

indicating on a panel the location of the fire.

4.6 Gas Detection
A drilling unit shall be equipped with gas detection systems to monitor
continuously at locations where there may be an accumulation of
combustible vapours or gas.

4.7 Pollution Prevention
The drilling unit shall be adequately equipped with facilities to prevent,
reduce and control pollution of the surrounding environment in accordance
and in compliance with the regulations as stipulated in the applicable
Malaysian laws. All decks and/or equipment shall be equipped with curbs,
gutters, drip pans and drains which shall be installed, where possible, to
collect all discharge and piped to a collecting tank or sump, with safeguards
for overflow, to be disposed in accordance with the applicable Malaysian
Laws.

4.8 Helideck on Drilling Units
If the drilling unit is equipped or required to have a helicopter deck, it shall
be:

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a) of adequate size and structural strength to accommodate the sizes and
types of helicopters to be used;
b) located so as to provide an approach/departure sector of at least 180
degrees or higher free of obstruction;
c) equipped with operable lights commonly used on heliports;
d) equipped with a non-skid deck surface and safety nets around the
perimeter;
e) provided with access gangways;
f ) provided with a coaming which shall contain any fuel spill from a leak in
the helicopter fuel tanks if such tanks are installed above decks and with
a drainage system which shall conduct such a spill away from the drilling
unit; and
g) equipped with a helicopter crash box located at the access to the
helicopter deck

4.9 Pressure System

Steam systems, pressure vessels, hot water boilers and steam generators
shall be designed, constructed and inspected in accordance and in
compliance with widely recognised industry codes.

4.10 Electrical Installation

4.10.1 Equipment and Standards
Electrical equipment on drilling unit shall conform at least to API RP
500B ‘Recommended Practice for Classification of Areas for
Electrical Installations at Drilling Rigs and Production Facilities on
Land and on Marine Fixed and Mobile Platforms’.

All electrical systems so designed and installed shall be grounded and
shall be able to operate safely under hazardous conditions that may
occur in the vicinity of the equipment.

Electrical equipment on a drilling unit which is installed in drilling
areas defined as Division I and Division II containing atmosphere
listed under Class I, Group D, classification of the API RP 500B shall
be explosion proof.

An emergency shutdown switch, capable of shutting down all
electrical equipment and power plants shall be provided at a
minimum of two (2) control stations on the drilling unit.

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4.10.2 Lighting
Adequate lighting shall be provided in all working areas inside and
outside of the drilling rig and emergency lighting shall be provided
for the proper illumination of vital areas such as control stations, well
control equipment, stairways, exits, machinery areas, emergency
generator area; and in the case of an offshore drilling unit; boat
stations, passage ways and navigation control area.

4.10.3 Emergency Electrical Power Supply
An independent emergency electrical power supply system capable
of supplying sufficient power in the event of failure in the primary
power supply shall be available to the drilling rig:

a) to secure well; and
b) for the operation of warning, lighting (in areas identified in
Section 4.10.2), alarm, communication and fire extinguishing
systems

A drilling unit shall be equipped with an independent emergency

electrical power supply system consisting of:

a) a prime mover and generator complete with a fuel supply for a

minimum of 24 hours and capable of supplying sufficient power
for navigation lighting and warning systems; emergency lighting
in areas identified in Section 4.10.2; alarm and communication
systems; pumps that are essential for maintaining the trim of the
vessel; abandonment systems when dependent on electrical
power; and fire extinguishing systems; and
b) storage batteries capable of supplying sufficient power to
operate for 3 hours the communication system, the navigation
and obstruction lights, aircraft warning lights and emergency
lighting in areas identified in Section 4.10.2

4.11 Forced Air System and Ventilation

4.11.1 Hazardous System
The hazardous areas on the drilling unit shall be in accordance with
API RP 500B.

4.11.2 Ventilation
Enclosed areas in the vicinity of the BOP stack and mud tanks and all
enclosed working and living areas on the drilling base or drilling unit
shall be properly ventilated and pressurized.

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4.11.3 Engines and Motors
Engines, generators and motors located within any area as
designated in Section 4.11.1 shall have their air intakes located in a
non-hazardous area or the intakes shall be equipped with device to
automatically or manually shutdown the diesel engine in the event of
run away.

All fans and blowers located inside rooms containing engines,
boilers, mud pumps or mud tanks and all fans used for ventilating
such rooms shall be equipped with remote shut-off switches. Air
intakes and exhausts for machinery spaces shall be capable of being
closed.

4.11.4 Exhaust Pipes
Exhaust pipes from internal combustion engines and gas turbine
plants shall be provided with proper flame and/or spark arrestors and
shall be equipped with water cooled exhaust manifold or be insulated
to prevent ignition of combustible gases and be safely vented to the
atmosphere in a non-hazardous area.

4.12 Weather Data Recording

If a Master Weather Station is not available to support any drilling operations,
the drilling location shall have facilities, equipment or knowledgeable
personnel to observe, measure and record the weather and sea conditions
within the accuracy of the available equipment or observation techniques.

4.13 Diving
An offshore drilling unit if required shall be equipped with diving apparatus
suitable for the working depths, whenever it is anticipated that the drilling
operations shall require assistance by divers based on the rig and in
accordance with Volume 3: Health, Safety & Environment.

4.14 Emergency Shutdown

Two Emergency Shutdown (ESD) control stations are required as a minimum.
One (1) shall be located at the drillers console and another at a readily
accessible safe location during all well operations. Units without drillers
console shall have readily accessible ESD stations.

4.15 Manning
Contractor shall require that a crew of sufficient number as determined by
general industry manning levels and with adequate training is available for
the operation of all equipment prior to activation of that equipment and that
all crew members have or are receiving training relevant to their duties.

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4.16 Support Craft
Service, supply and survey craft participating in a drilling programme,
including vehicles, aircraft, standby craft and vessels, shall be designed and
constructed to operate safely and to provide safe and efficient support for all
drilling and related operations for which the craft are engaged, and
Contractor shall, upon request, demonstrate to the satisfaction of
PETRONAS, that support crafts are capable of safely operating in the
environmental conditions prevailing in the area of drilling operations.
(Contractor shall make reference to its own internal guideline with respect to
the technical specification).

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Section 5: Well Design and Drilling Operations

Wells shall be designed to ensure the well and/or development objectives are met;
safely and cost effectively. Casing, primary cementing and drilling fluid programmes
shall be engineered to withstand anticipated stresses and should compensate
prediction uncertainties. Drilling operations shall be carried out to ensure the
well objectives are met with As Low As Reasonably Practicable (ALARP) risk and
project/well costs containment. Contractor shall ensure that good oil field drilling
practices and continuous improvement are implemented in well design/planning
and throughout the drilling operations. Process shall be in place to manage
deviations or changes with adequate review, risk assessment and Contractor’s
authority’s approval. All wells drilled under the provisions of these procedures
shall have been included in the original WPB or its subsequent revision.

5.1 Drilling Unit Moving and Positioning

5.1.1 General Provision
A drilling unit shall not be moved to a different well location and
anchors shall not be set or retrieved, if weather or sea conditions are
such as to threaten the safety of operations or personnel. Drill
pipe, drill collars, marine risers and other equipment stored on deck,
which may shift during a move, shall be securely tied down before
commencing the move. Anchor buoy and pennant lines shall be
securely fastened to the bulwark or deck railings.

5.1.2 Anchor Testing for Drilling Unit

When anchors are used for holding the unit on position at the
wellsite, the anchor lines and anchors shall be tested to the
maximum anticipated tension prior to drilling first hole section
requiring installation of BOP. If this tension cannot be obtained,
Contractor shall take the necessary remedial action. Mooring system
analysis, design and evaluation shall be in accordance in accordance
to API RP 2SK.

5.1.3 Bottom Supported Unit

In areas of known scouring due to bottom current or tide actions and
where the drilling unit is bottom-supported, the mat, the legs,
faulting, hull or piles, surrounding sea floor shall be inspected
regularly. If scour or fill of sea floor sediments or any other condition,
likely to threaten the stability of the drilling unit, is evident, measures
shall be taken without delay to protect the safety of the unit and the
personnel on board.

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When the drilling unit is bottom-supported, the unit shall not be
raised or lowered, if weather or sea conditions exceed those allowed
in the drilling unit’s Marine Operations Manual to prevent undue risk
to the safety of the personnel, operations and drilling unit.

5.1.4 Dynamically Positioned Units

A dynamically positioned unit (DP) means a drilling unit or a vessel
which automatically maintains its position and heading by means
of thruster force. Units and vessels using DP system shall adhere to
the latest International Maritime Organization (IMO) and International
Marine Contractors Association (IMCA) guidelines on operational
requirements, surveys and testing. IMO Equipment class shall be fit
for purpose to the operations requirement and risk. IMO Equipment
Class 2 and Class 3 or equivalent classification societies class
notations DP units and/or vessels with redundancy system based
on Failure Mode and Effect Analysis (FMEA) study and proving trials
shall undergo annual DP trials by recognised classification societies
to ensure safety and reliability of DP systems. Key DP personnel
training, competence and experience requirements shall adhere to
the latest IMCA M117 guideline. Trial reports and key DP personnel
qualifications and experience records shall be made available upon
request by PETRONAS.

5.1.5 Diving Operations

Diving operations shall be undertaken only when in the opinion of
the diving supervisor, sea and weather conditions permit these
operations to be conducted safely and while they are being
conducted, no other operations which may adversely affect the
safety of the operations shall be conducted.

Diving equipment shall be properly maintained and checked at the
surface before commencing any diving operations and each diver
shall maintain a personal log book detailing his dives and medical
history.

5.2 Casing and Cementing

For the purpose of this procedure, the casing strings in order of normal
installation are: drive pipe or structural casing, conductor, surface casing,
intermediate casing and production casing.

All casings shall be manufactured in compliance with API or ISO quality

standards. Casing programme shall be designed to withstand anticipated
stresses and should compensate for any prediction uncertainties.

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5.2.1 Drive Pipe
This casing shall be set in a competent bed, with the objective of
supporting unconsolidated formation and obtaining drilling fluid
returns to surface. Normally driven to refusal or set at depth
sufficient for its objective.

However, the presence of abnormally strong formations may permit

the setting of this casing at a depth shallower than theoretically
required.

If this portion of the hole is drilled, it shall be cemented with a
quantity of cement sufficient to fill the calculated annular space back
to the sea floor (or surface for onshore).

5.2.2 Conductor Casing

The initial conductor casing string shall be set in a competent
formation (normally between 150 metres and 300 metres TVD
below the sea floor (or surface for onshore)) and shall be based upon
relevant engineering and geologic factors including the presence or
absence of shallow gas, potential hazards and water depth. In cases
where the conductor casing is set deeper than 300 metres below sea
floor (or surface for onshore) and BOP pressure control is considered
while drilling below the conductor casing shoe, a formation pressure
integrity test shall be performed as required under Section 5.6.

Unless jetted-in, the initial casing string shall be cemented with a
quantity of cement sufficient to fill the calculated annular space back
to the sea floor (or surface for onshore). The excess volume shall be
as specified in Section 5.2.9 or based on field experience. The
cement may be washed out to a depth not exceeding the depth of
the structural casing shoe to facilitate casing removal upon well
abandonment.

Conductor casing may be eliminated at specific well locations if at
least one (1) well has been drilled adjacent to the specified well
location and well logs and mud monitoring procedures demonstrate
the absence of shallow hydrocarbons or hazards. If shallow
hydrocarbons are present and Contractor can exhibit that the well
can be safely drilled without a conductor casing being set, then
the conductor casing may be eliminated with prior approval from
PETRONAS.

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For deepwater operations, conductor casing may be eliminated if
geological factors, shallow hazards, and well structural integrity are
maintained.

5.2.3 Surface Casing

Surface casing setting depths shall be based upon relevant
engineering and geologic factors, potential hazard, presence and
absence of shallow gas (normally between 450 metres TVD and 1400
metres TVD below the sea floor (or surface for onshore)). Surface
casing may be set at a depth where the formation strength is
sufficient to support the programmed mud gradients for the next
section of the hole and where the well control integrity can be
provided until the next string of casing is set.

Surface casing shall be cemented to surface or sea floor for
subsea wells. After drilling out the surface casing shoe, a formation
pressure Integrity test shall be performed as required under Section
5.6.

5.2.4 Intermediate Casing

One or more strings of intermediate casing shall be set when
required by anticipated pressures, mud weight, sediment, and other
well conditions. The proposed setting depth for intermediate casing
shall be based on the formation strength below the surface casing
shoe or previous intermediate casing string.

Intermediate casing shall be cemented with a calculated volume of
cement sufficient to fill the annular space in the open hole to 150
metres above the highest hydrocarbon or freshwater bearing sand, or
one-third of intermediate casing length, whichever is greater.

If the intermediate casing is a liner, a minimum liner lap of 30 metres
above the previous casing string shoe shall be applied. The liner lap
shall be cemented and tested to determine whether a seal between
the liner top and the next larger string has been achieved.

For subsea wells, the top of cement may be kept below the surface
casing shoe to prevent annular pressure build-up from causing
failure to the surface or intermediate casing strings.

5.2.5 Production Casing

This string shall be set before completing the well for production.

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A calculated volume of cement sufficient to fill the annular space at
least 150 metres above the uppermost hydrocarbon zone or
one-third of production casing length, whichever is greater, shall be
used. When a liner is used as production string, it shall be lapped a
minimum of 30 metres into the previous casing string, and the seal
between the liner top and the next larger string shall be tested.

5.2.6 Casing Pressure Test

After cementing, all casing strings shall be tested to verify integrity to
withstand anticipated operating loads. As a minimum, the test
pressure shall be as the following:

Cemented Conductor - 200 psi
Surface - 1000 psi
Intermediate and Production - 0.73 psi/m TVD or 1500 psi
whichever is greater

Intermediate and Production liner (and liner-lap) shall be tested to a
minimum of 500 psi above the formation fracture pressure at the
casing shoe into which the liner is lapped, where permissible.

However, the test pressure should not exceed 85% of the internal
yield pressure of the casing. The casing shall be pressure tested for
15 minutes, and if the pressure declines more than 10%, remedial
action shall be performed prior to drilling ahead, unless prior
approval is obtained from PETRONAS.

Note: Conductor casing pressure test is waived for deepwater
operations

After cementing any casing string, pressure testing of the casing can
be conducted either upon bumping of the plug or after sufficient
waiting time has lapsed based on cement laboratory test data.
Avoidance of micro-annulus between cement and casing shall be
considered.

In case of back flow at the end of cementing operations, back
pressure shall be applied until cement has set.

Laboratory test data for the particular cement mix used in the well
shall be used to determine the setting time required. Before drilling
out of the casing shoe, sufficient time shall have elapsed to allow tail
slurry to attain a compressive strength of at least 500 psi.

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Prior to any operations that put a well in an underbalanced mode or
removal of hydrostatic barrier (such as switching to lighter fluid), a
negative pressure or inflow test at a pressure below the lowest
planned hydrostatic pressure shall be performed on casing and/or
liner exposed to negative pressure and also mechanical barriers such
as formation isolation valves, retrievable packers/plugs, etc.
Contractor shall provide test procedures and criteria for a successful
test in the NOOP or at an appropriate time prior to conducting the
test.

For deepwater operations, prior to riser displacement to seawater, a

negative test shall be performed.

5.2.7 Records
The result of all casing pressure tests shall be witnessed by
Contractor’s representative and recorded on the Driller’s log. This
data shall be made available upon request by PETRONAS.

5.2.8 Cementation
Cement and materials for well cementing shall conform to latest API
Specification 10A. Well cement test shall conform to API RP10B-2/
ISO 10426-2 and deepwater well cement test shall conform to API
RP 10B-3/ISO 10426-3.

The cementation of surface casing, intermediate casing, production
casing and liner shall be performed by conventional displacement
method. In addition to cement slurry, preflush and spacer design,
pipe centralisation to achieve optimum standoff and pipe movement
shall be considered to improve drilling fluid removal and cement
placement quality. A cement placement, centralizer placement,
Equivalent Circulating Density (ECD), fluid displacement and
applicable stress-analysis engineering software simulation shall be
performed to support cementing design. Cementation design
reports, post-job data and cement bond evaluation log result if any
for all individual casing primary cementing operations shall be
submitted to PETRONAS upon request.

Other industry acceptable methods may be used such as inner string
cementing or simply cementing without the use of wiper plugs where
deemed appropriate without compromising primary cementation
quality.

Cementing float equipment or other means of preventing backflow

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(U-tubing) of cement during cementing shall be incorporated into a
casing string with thread locking compound. For conventional
displacement method, a float collar shall be inserted in the casing
string above one or two joints of casing above a float shoe. The float
equipment performance criteria shall correspond to the anticipated
service requirements per latest API RP 10F.

5.2.9 Excess Cement Volume

The volume of cement slurry to be placed in the open hole annulus
interval shall be based on the calculated annular volume using an
estimated hole size plus and excess of cement slurry based on similar
field experience or best practices or the following percentages of
excess slurry:

Structural - 100% excess
Conductor - 50% excess
Surface - 30% excess
Intermediate or production - most accurate caliper available + 10%
excess

5.2.10 Inadequate Cement Job

Where indications exist that cementation quality is such that well
integrity or objectives are jeopardised, Contractor shall inform
PETRONAS and ensure that remedial action is taken without any delay.
Contractor should run cement bond evaluation log.

5.3 Well Directional Survey

5.3.1 Vertical Well
First surveys shall be taken at depth no greater than 60 metres
below surface or mudline. Subsequent surveys shall be taken at 150
metres intervals but will not exceed 300 metres.

Copies of all surveys regardless of their status shall be filed with
PETRONAS. The report shall include but not limited to all tabulation
of accumulated inclination angles, the TVD and vertical section.

5.3.2 Directional Well
For wells with inclination greater than or equal to 5 degrees, first
survey shall be taken at a depth no greater than 60 metres below
drive pipe or conductor shoe, whichever is the first string of set
casing. Subsequent surveys giving both inclination and azimuth shall
be obtained on all directional wells at intervals not exceeding 150

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metres during the normal course of drilling, i.e. tangent sections. Two
successive directional survey readings shall not exceed 30 metres in
all planned angle and/or directional change portions of the hole.
Anti-collision shall be taken into consideration. PETRONAS may
require Contractor to submit the anti-collision report upon request.

Copies of directional surveys report shall be submitted to PETRONAS.
The reports shall include but not limited to the tabulation of the
accumulative drift angles, direction, TVD, vertical section and the
rectangular coordinates of each shot point.

In calculating all surveys, a correction from true north to Universal
Transverse Mercator Grid North shall be made after making the
magnetic to true north correction.

5.4 Well Control Equipment and Testing

5.4.1 BOP System
BOP equipment shall consist of an annular preventer and
the specified number of ram-type preventers. Annular preventer
shall be able to seal around any size of pipe in use, close on open
hole and allow for drill pipe stripping. The pipe rams shall be of
proper size to fit the pipe in use. The working pressure rating of any
BOP component shall exceed the maximum anticipated surface
pressure to which it may be subjected to. Unless otherwise specified
herein, all BOP systems shall conform to API Standard 53 (latest
edition) specification.

Elastomeric components rating shall be suitable for the operating

environment and compatible with the drilling and completion fluid in
use. All spare parts shall be from Original Equipment Manufacturer
(OEM). BOP closing times shall as a minimum meet API Standard 53.

If any repair or replacement of surface or subsea BOP stack is

necessary after its installation, this work shall be performed after the
well has been secured as per Section 9.10.

5.4.2 Auxiliary Equipment

The following auxiliary equipment shall also be provided:

a) An inside BOP and a full-opening drill string safety valve in the
open position with wrenches for operating the valves shall be
maintained on the rig floor at all times while drilling operations

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are being conducted with crossovers if necessary; and
b) A safety valve and circulating head shall be available on the rig
floor, assembled with the proper connection to fit the casing
that is being run in the hole at the time

5.4.3 Diverter System

A diverter system shall be capable of diverting well flow away from
the rig to provide protection for the drilling crew and rig equipment.
It is installed to control well flows encountered at shallow depths and
when the last string of casing is set in a formation of insufficient
strength such that the well cannot be shut-in because of the danger
of the flow broaching to the surface.

The diverter system shall conform to API RP 64 (latest edition)

specification. As a minimum the system shall provide an annular
preventer, with a spool below having two diverter lines (6” minimum
I.D. for land rigs and 10” minimum I.D. for offshore rigs). The diverter
lines shall have smooth bends and shall vent in different directions to
permit downwind diversion.

In known areas, for second and subsequent wells from a platform

where electrical logs have proven no hydrocarbons and/or other risk
are present in the entire hole section drilled below the first casing
string, drilling without a diverter may be acceptable. Contractor shall
inform PETRONAS accordingly.

5.4.4 Surface BOP Stack

The minimum stack requirements for drilling below any casing strings
with surface BOP stack are described below:

Surface BOP Stack
Drive or structural - 1-Diverter
Conductor - 1-Diverter
Surface - Annular, 2-Pipe Rams and 1-Blind Shear Ram
Intermediate - 1-Annular, 2-Pipe Rams and 1-Blind Shear Ram

Blind shear ram – capable to shear and seal all grades of drill pipe
used through the stack.

When a tapered drill string is in use, the following alternatives shall
apply:

a) A set of pipe rams to fit the smaller string of drill pipe installed in

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the existing BOP stack; or
b) Variable bore rams may be fitted in place of one or both sets of
pipe rams; or
c) An additional set of BOP equipped with a set of pipe rams to fit
the smaller string of drill pipe

5.4.5 Subsea BOP Stack

The minimum stack requirements for drilling below any casing strings
with subsea BOP stack are described below:

Subsea BOP Stack
Conductor - Riserless
Surface - 1-Annular, 2-Pipe Rams and 1-Blind Shear Ram
Intermediate - 1-Annular, 2-Pipe Rams and 1-Blind Shear Ram

When a tapered drill string is in use, the following alternatives shall
apply:

a) Variable bore rams may be fitted in place of one or both sets of
pipe rams; or
b) A second annular preventer may be used in lieu of pipe rams to
seal the smaller strings; or
c) An additional set of BOP equipped with a set of pipe rams to fit
the smaller string of drill pipe

Subsea BOP stack shall be equipped with:

a) Blind shear ram – capable to shear and seal all grades of

drillpipe used through the stack;
b) A subsea accumulator system or suitable alternate is required to
provide fast closure of the preventers and for cycling all critical
functions in case of loss of power fluid connection to the
surface;
c) A fail-safe design shall be incorporated into the BOP system and
shall include dual pod control systems and fail-safe valve on
critical lines and outlets; and
d) Remotely Operated Vehicle (ROV) intervention capability, which
at a minimum shall allow the operation of functions conforming
to API Standard 53

All DP drilling units operating with subsea BOP stack shall be

equipped with the following secondary intervention systems (refer to
Definitions Section):

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a) Autoshear
b) Deadman
c) Emergency Disconnect system (EDS)

Autoshear, deadman and EDS are optional for moored drilling units.

Floating drilling units operating with Surface BOP (SBOP) system with
drilling riser designed to contain wellbore pressure shall be equipped
with a Seabed Isolation Device (SID).

Prior to the removal of marine riser, the riser shall be displaced with
sea water after successful negative test. Contractor shall ensure that
sufficient hydrostatic head exists within the well bore to compensate
for the reduction in head and maintain a safe well condition, where
possible.

5.4.5.1 Subsea BOP Diversion

Drilling units that utilise a subsea BOP stack and marine riser
shall be fitted with a diverter system to safely manage gas
in the marine riser. This shall include two (2)
diverter/overboard lines arranged to be as straight as
possible to minimise erosion. The diverter lines shall
be individually selectable,and arranged to allow
overboard discharge in a safe manner in any prevailing wind
direction. The diverter line system shall be equipped
with automatic, remotely controlled full opening valves,
which open prior to closing the diverter element.

For Managed Pressure Drilling (MPD) and other operations,

when a rotating control device is installed on the marine
riser, it is not required to simultaneously have the marine
riser diverter system available.

5.4.6 BOP Test

Every drilling unit shall have a written BOP equipment testing
procedure.

5.4.6.1 BOP Control System

A minimum of two (2) BOP control stations shall be
provided. One (1) station shall be on the drilling floor and
another stationlocated at a remote readily accessible safe
area. Accumulators or pumps shall maintain a pressure
capacity reserve at all times to provide for repeated

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operations of hydraulic BOPs. The control panel shall
be fitted with alarms for low accumulator pressure as well as
for low level in the control fluid reservoir.

5.4.6.2 Pressure Test

For initial BOP system acceptance test, each component of
the BOP stack assembly and related control equipment shall
be pressure tested to their rated working pressure.
Subsequent pressure test shall be the maximum anticipated
surface pressure (or maximum anticipated wellhead
pressure for subsea BOP) and up to 70% of rated working
pressure for annular preventer. A 200 – 300 psi low
pressure BOP test shall be conducted prior to high pressure
test to maximum anticipated surface pressure. Each test
shall hold the required pressure for 5 minutes with no
indication of leakage. All test records shall be made available
upon request by PETRONAS. The BOP equipment shall be
tested according to the following procedures:

a) When installed or stump tested prior to installation;

b) Not less than once in 14 days beyond that period
PETRONAS approval shall be obtained. However, the
blind shear ram may not be tested;
c) Before drilling out after each string of casing has been
set and cemented or relevant element and connection
to be tested provided not exceeding 14 days between
tests; and
d) Following repairs that require disconnecting a pressure
seal in the assembly

Note: 1. Ram bonnets shall be tested every time opened

2. After installation of subsea BOP stack onto the
wellhead, the BOP-to-wellhead connector pressure
test may be limited to the maximum anticipated
wellhead pressure in the next hole section

5.4.6.3 Function Test

While drill pipe is in use, the following actuation procedures
shall be performed, as a minimum, to determine proper
functioning of the BOP and control stations:

a) Pipe rams: Actuated weekly, and after nippling up;

b) Blind shear rams: Actuated whilst drill pipe is out of

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the hole, after stack is nippled up, once each trip but
not more than once each day (except for subsea BOP);
c) Tapered drill string pipe rams: Actuated weekly, and
after nippling up;
d) Annular-type preventer: Actuated on the drill pipe, in
connection with the pressure test, once each week;
e) Actuation of control station shall be alternating
between primary and remote BOP control stations;
f ) Subsea BOPs shall be actuated at least on weekly basis.
Shear rams shall be function tested prior to drilling out
each set casing; and
g) Auto shear, deadman and ROV intervention operating
systems shall be function tested during subsea BOP
stump test.

5.4.7 Inspection and Maintenance
BOP system shall undergo an assessment by an industry recognised
third party well control equipment and system authority when a
drilling unit initially comes under contract. All critical actions from the
assessment shall be closed out prior to drilling. Shearing capability of
shear rams shall be verified either by testing or review of previously
conducted test data. The report shall be made available upon request
by PETRONAS.

All BOP systems and marine risers and associated equipment shall be
inspected and maintained in accordance with the manufacturer’s
recommended maintenance procedures. Inspection of subsea
installations shall be accomplished by the use of ROV, rig camera or
divers. This requirement will be waived for a period not to exceed 4
days in the event of a ROV or rig camera breakdown.

All BOP tests, maintenance and inspection shall be recorded on the
Driller’s log.

5.4.8 Personnel Competency

All supervisory drilling personnel shall be in possession of a valid
industry recognised well control training certificate and be fully
familiar with well control procedures and BOP equipment before
starting work on a well.

Well control drills and response time shall be recorded on the Driller’s
log. Drill objectives and acceptable response shall be predefined.
Regular and realistic drills shall be conducted to train involved

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personnel to achieve the acceptable response.

5.5 Drilling Fluid Programme

The characteristics used, testing of drilling fluid and the implementation of
related drilling procedures shall be designed to prevent the loss of well
control. Quantities of drilling fluid materials sufficient to provide well control
shall be maintained readily accessible for use at all times.

5.5.1 Primary Well Control

Before starting pulling out of the hole with drill pipe, the drilling fluid
shall be properly conditioned. Proper conditioning means that:

a) There is no indication of influx of formation fluids prior to pulling

the drill pipe out of the hole;
b) The weight of the returning drilling fluid is essentially the same
as the drilling fluid entering the hole; and
c) Other drilling fluid properties recorded on the daily drilling log
are within the specified ranges required to drill the hole.

When the drilling fluid in the hole is circulated, the Driller’s log shall
be monitored. When coming out of the hole with the drill pipe, the
annulus shall be filled with drilling fluid to ensure sufficient over
balance (at least 0.3 ppg or 100 psi) whichever is less is maintained at
all time.

For operations where narrow margins prevent a 0.3 ppg or 100 psi
overbalance, other methods, such as pumping out of hole, reduced
tripping speeds and increased frequency of flow checks should be
employed to maintain well control.

A device for measuring the amount of drilling fluid to fill the hole
shall be used. If there is at any time an indication of swabbing or
influx of formation fluids, the necessary safety devices and action
shall be employed to control the well.

The drilling fluid in the hole shall be circulated or reverse circulated
prior to pulling drill-stem test tools from the hole.

The hole shall be filled by accurately measured volumes of drilling

fluid. The following information shall be posted near the driller:

a) The number of stands of drill pipe and drill collars that may be
pulled between the times of filling the hole;

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b) The number of barrels and pump strokes required to fill the hole
for the designated number of stands of drill pipe and drill collars;
c) For each casing string, the maximum pressure that can be
contained under the BOPs before controlled bleeding off excess
pressure through the choke. Drill pipe pressure shall be
monitored when bleeding off pressure for well control; and
d) Where continuous fill trip tank equipment is used, only the
number of barrels required to fill the hole per stand of drill pipe
or drill collars and the maximum allowable casing pressure need
be posted

An operable degasser shall be installed in the drilling fluid system

prior to commencement of drilling operations. It shall be maintained
for use throughout the drilling and completion of the well.

If any variant of MPD method is used for more precise control of well
annular pressure profile, Contractor shall ensure that MPD
procedures are in place as well as risk assessment/Hazard and
Operability (HAZOP) analysis and personnel familiarisation training
are completed. Contractor shall select the MPD method that best
addresses drilling problems cost effectively.

5.5.2 Drilling Fluid Test

Drilling fluid testing equipment shall be maintained on the drilling rig
at all times, and drilling fluid tests shall be performed once every 12
hours or more frequently as conditions warrant.

Such tests shall be conducted in accordance with procedures
outlined in API RP 13B, latest revision, or other relevant codes and the
results recorded and maintained at the drill site. The following drilling
fluid system monitoring equipment shall be installed with derrick
floor indicators and used at the point in the drilling operations when
drilling fluid returns are established and throughout subsequent
drilling operations:

a) Recording mud pit level indicator to determine mud pit volume
gains and losses. This indicator shall include a visual and audio
warning device;
b) Drilling fluid volume measuring device for accurately
determining drilling fluid volumes required to fill the hole on
trips;
c) Drilling fluid return indicator to determine that returns essentially
equal the pump discharge rate; and

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d) Gas-detecting equipment to monitor the drilling fluid returns

5.5.3 Drilling Fluid Quantity

Sufficient drilling fluid materials shall be stored on the drilling unit to
meet any normal and foreseeable emergency conditions.

Subject to the above, and taking into account the availability of the
drilling fluid storage capacity of the drilling unit, the minimum
quantities of drilling fluid materials required shall be based on the
following:

a) The quantity of the drilling fluid materials shall be based on
renewing a volume of the calculated capacity of the active
drilling fluid system; and
b) The quantity of the weighting material shall be based on the
amount required to increase the drilling fluid density of the
active drilling fluid volume to overcome the highest anticipated
formation pressure for the hole section to be drilled

When the drilling fluid quantity required exceeds the storage capacity
of the drilling unit, the Contractor shall demonstrate that the
drilling fluid inventories on hand are sufficient to maintain well
control until additional quantities can be delivered to the well site.

Drilling operations shall be suspended in the absence of minimum

quantities of drilling fluid material as specified above.

5.6 Formation Integrity Test

Before drilling to a maximum of 3 metres of new hole below the surface
casing (if set below 300 metres below seabed) and intermediate casing shoe,
a pressure test shall be performed to obtain data to be used in estimating the
formation fracture gradient. This test can be stopped when sufficient
knowledge of the field has been gathered. Pressure data shall be obtained
by either testing to formation leak-off or to a controlled formation capability
test. The results of this test shall be recorded in the Driller’s log and used
to determine the depth and maximum mud weight to be used in drilling the
next interval of open hole. If during the course of drilling the hole, the mud
weight approaches within 0.5 ppg (0.026psi/ft) of the formation fracture
gradient or the formation capability test, Contractor shall exercise prudent
drilling practice to ensure well integrity and safety of the operations.

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5.7 Lost Circulation
During all normal drilling operations below the conductor, drilling shall cease
immediately whenever the drilling fluid pumped down the drill pipe is not
returning to the surface and drilling shall not be continued until adequate
circulation has been established.

In case of known areas or zones of loss circulation, it may be permissible to
drill ahead with continuing losses guided by operational and contingency
procedures. Contractor shall exercise prudent drilling practices to ensure
well integrity and safety of the operations.

5.8 Detection of Overpressure

Characteristics of the formation lithology and the formation fluid content
shall be monitored continuously after setting structural casing during
exploration drilling to detect the transition from normally pressured
formations to abnormally high pressured formations which normally include
but not limited to monitoring of:

a) Shale gas in the drilling fluid returns;
b) The shape of shale chips in drill cuttings;
c) The normalised drillability trend of the shale and in conjunction the
plotting of ‘dc’ exponent values derived from the rate of penetration or
subsequent modification of it;
d) The change in temperature and salinity of the drilling fluid returns; and
e) Indications of hole squeezing due to bore hole instability, torque and
drag

If a transition into an over-pressured formation is indicated, Contractor

shall take steps to attempt to verify the pressure of the transition zone using
recognised techniques when prudent to do so, and to maintain primary
control of the well as drilling proceeds into the over-pressured formation,
including modifying the drilling programme and equipment as required.

5.9 Suspension of Operations

In the event of a fatal accident, those operations associated with the fatality
shall be suspended as soon as safely possible and shall not be resumed
without the approval of the Police (Royal Malaysia Police) or other relevant
authority.

An operation shall be suspended as soon as possible if the continuation of
the operation causes, or is likely to cause an oil spill; or endangers, or is likely
to endanger, the safety of personnel, the security of the well, the safety of
the drilling unit and the operation shall remain suspended until it can resume

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safely. Conditions under which drilling shall be suspended in the case of a
drilling unit:

a) Inability to maintain primary well control;
b) Problems are experienced with critical BOP system component or
control system;
c) Failure of wellhead, casing or drilling fluid system;
d) Uncontrolled fire at the drilling site;
e) Failure of a significant portion of the primary power source;
f ) Inability to maintain adequate stability and buoyancy of the drilling unit;
g) Inability to satisfactorily maintain the position of the drilling unit over the
well;
h) Excessive motions of the drilling unit caused by sea-state or weather
conditions;
i ) While diving operations are being conducted at or near any part of the
subsea drilling system

All large scale incidents or accidents causing damage to equipment shall be

immediately reported to PETRONAS in writing giving estimated cost of
damage, downtime and root cause.

5.10 Shallow Hazards and Hydrocarbons

In all areas where shallow hazards or hydrocarbons are known, seismic data
shall be obtained. An appropriate shallow hazard contingency plan shall also
be in place. All seismic data relating to shallow hazards shall be submitted to
PETRONAS. Well locations shall be selected where the risk associated with
shallow hazard is avoidable or manageable. A well location shall if possible
be moved if the potential consequences and/or possible presence of a
shallow hazard are significant (i.e. moderate or high).

For drilling operations with a bottom supported drilling unit and/or drilling
from a fixed structure where presence of shallow hazards or hydrocarbons
are possible, a small diameter initial pilot hole of 8-1/2 inch or smaller size
from the bottom of the conductor casing to the proposed surface casing
seat shall be drilled and logged to aid in determining the presence or
absence of these hazards.

For drilling operations with floating drilling unit (not from a fixed structure),
systems and procedures shall be in place to continuously monitor the
operation for indications of a shallow hazard, and to ensure the safe and
swift move of the drilling unit to a position that is sufficiently remote from
the area of possible hazard or disturbance caused by any uncontrolled flow
of formation fluids.

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5.11 Underbalanced Drilling
Underbalanced drilling is defined as deliberately drilling where the pore
pressure of the formation being drilled is greater than the hydrostatic
pressure exerted by column of drilling fluid and formation fluids are allowed
to flow into wellbore. In this respect, balanced pressure drilling is a
subcategory of underbalanced drilling because the annular pressure is
expected to fall below the formation pressure during pipe movement. In
general, underbalanced drilling is aimed at improving drilling rate, limiting
lost circulation and protecting reservoir formation.

Underbalanced drilling shall be conducted only when the requirements
below are satisfied and subject to further discussion and approval by
PETRONAS prior to execution:

a) Assessment of risk and benefit of underbalanced drilling (economic and
technical justification to change from conventional drilling);
b) Assessment of fluid type to be used (gas, mist, foam, gasified liquid
and liquid);
c) Identification and assessment of equipment to be used that covers both
surface and sub-surface (gas compression, gas generation, separation,
foam, pressure control, downhole tools, BOP stack, rotating head, etc.);
d) Preparation of detailed underbalanced design programme (fluid design,
expected Rate of Penetration (ROP), wellbore model, fluid velocity,
cutting transport, cost analysis, etc.) and contingency plans; and
e) Environmental and safety concerns associated with underbalanced
drilling shall be addressed and documented. A primary consideration of
environmental protection shall include handling of returning fluid from
wellbore.

5.12 H2S Drilling Operations

When operations are undertaken involving formations or reservoirs known or
expected to contain Hydrogen Sulphide (H2S) or, if unknown, upon
encountering H2S, the following preventive measures shall be taken to
control the effects of the toxicity, flammability and corrosive characteristics
of the H2S gas.

5.12.1 Physical Properties and Toxicity

H2S is a highly toxic gas, rapidly causing death when inhaled in high
concentration. Its toxicity is almost the same as hydrogen cyanide
and is between five and six times more toxic than carbon monoxide.
H2S is heavier than air with specific gravity of 1.189 and it is
colourless. It forms an explosive mixture with air between 4.3 and
46.0 percent by volume. The acceptable maximum concentration for

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a continuous eight hours exposure of personnel is 10 parts per
million (ppm) in air, which is 0.001% by volume.

5.12.2 Breathing Equipment

An adequate number of self-contained positive pressure breathing
equipment shall be made available at all times on the rig floor, shale
shaker, mud pit area, pump area and other areas where H2S might
accumulate in hazardous quantities. All essential personnel in drilling
operation shall be required to use this equipment when necessary.

Resuscitators with spare oxygen bottle shall be provided at each
emergency centre. A cascade air-bottle system shall be provided to
refill the self-contained breathing equipment bottles. At any time and
in the vicinity where the concentration of H2S in the atmosphere
exceeds 20 ppm, breathing equipment shall be worn.

5.12.3 H2S Gas Detection
Automatic continuous H2S sensors shall be installed, be in working
condition and routinely function tested according to API RP14C to
cover as a minimum the areas of bell nipple, flowline and shale
shakers, mud pits, sack room, motor room and living quarters.

These sensors shall activate audible and visual alarms when sensing a
minimum of 5 ppm of H2S in atmosphere.

In addition, portable hand operated type H2S gas detectors shall be
made available to all essential personnel during drilling operation in
H2S environment.

5.12.4 Wind Direction Equipment

Wind direction equipment (such as wind sock and wind streamers)
shall be installed in sufficient quantity at prominent locations to
indicate to all personnel on or in the immediate vicinity of the facility
the wind direction at all times for determining safe upwind areas in
the event that H2S is present in the atmosphere.

5.12.5 Ventilation
Ventilation devices shall be explosion proof and situated in areas
where H2S may accumulate. Movable ventilation devices shall be
provided in work areas and be multi-directional and capable of
dispersing H2S away from working personnel.

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5.12.6 Personnel Training
All personnel shall be informed as to the hazards of H2S. They shall
be trained in the use of H2S safety equipment, informed of H2S
detectors and alarms, ventilation equipment, prevailing winds,
briefing areas, warning systems and evacuation procedures.

All crew members shall be familiar with basic first-aid procedure
applicable to victims of H2S exposure. Emphasis shall be placed
upon rescue and first aid for H2S victims.

5.12.7 Contingency Plan

A contingency plan shall be developed and a copy shall be submitted
to PETRONAS prior to the commencement of drilling operation in
H2S environment.

The plan shall include but not be limited to the following:

a) Physical property, toxicity level and physical effect of H2S;
b) Safety procedures, equipment and training;
c) Operating procedures during;
• Conditions with less than 10 ppm H2S in the atmosphere.
• Conditions with more than 10 ppm but less than 20 ppm
H2S in the atmosphere (limited danger to life).
• Conditions with more than 20 ppm H2S in the atmosphere
(high danger to life).
d) Responsibility and duty of personnel for each operating
condition;
e) Evacuation plan; and
f ) Agencies to be notified during emergency

Information on emergency procedures shall be posted in Bahasa

Malaysia and English at prominent locations on the operations
facilities.

5.12.8 Drilling Unit Equipment

H2S gas is highly corrosive to steel and at high stress levels, Sulfide
Stress Cracking (SSC) may occur in a very short time. All tubulars,
wellhead equipment, and other drilling related equipment which may
be exposed to H2S conditions and susceptible to SSC shall be
selected in accordance with the guideline presented in National
Association of Corrosion Engineers (NACE) MR0175/ISO15156
considering metallurgical properties and/or environment in contact
with the tubulars and equipment in order to reduce the chances of

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failure due to SSC.

5.12.8.1 Drill Pipe

To reduce potential failure due to SSC, steel drill pipe should
have a yield strength of 95,000 psi or less, unless it is heat
treated by quenching and tempering. Alternatively control of
the environment in contact with the drill pipe shall be
considered. Assessment shall be conducted to ensure risk of
drill string failure is ALARP.

5.12.8.2 Tubulars
Tubulars including casing, tubing, coupling, flange and
related equipment shall be designed for H2S service. Field
welding on casing, except conductor and surface casing
strings is prohibited, unless the Contractor can prove it is
safe to do otherwise.

5.12.8.3 BOP and Related Equipments

BOP, choke line, choke manifold and valves shall be
designed and fabricated for H2S service utilising the most
advanced technology. Elastomer, packing and other
non-ferrous part exposed to H2S shall be resistant at the
maximum anticipated temperature of exposure.

5.12.8.4 Flare System

The flare system shall be designed to safely collect and burn
H2S gas. Flare lines shall be located as far away from the
operating facilities as feasible in the manner to compensate
for wind changes. The flare shall be equipped with a pilot
and an automatic igniter.

5.12.9 Drilling Operations

5.12.9.1 Pipe Trips and Stripping
Every effort shall be made to pull drill string dry while
maintaining well control. If it is necessary to pull the drill
string wet after penetration of H2S bearing zones,
monitoring of H2S of the working areas shall be increased.
The monitoring of H2S in the vicinity of the displaced
drilling fluid returned shall also be increased.

5.12.9.2 Well Control

If gas cutting of drilling fluids beyond 0.2 ppg is

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encountered, the BOP shall be closed while maintaining
drilling fluid circulation through the choke line to the
mud-gas separator. The mud-gas separator shall be
connected into the flare system. The degasser shall be used
until the drilling fluid is free of entrained gas.

5.12.9.3 Coring
When coming out of the hole with a core barrel under
suspected H2S condition, the drilling crew shall wear
breathing mask before pulling the last twenty stands or at
any time H2S is detected at surface. “Mask on” shall
continue while opening the core barrel and examining the
cores. Cores to be transported shall be sealed and marked
for the presence of H2S.

5.12.9.4 Drilling Fluid
Suitable water or oil base drilling fluid should be used in
drilling formations containing H2S gas. A pH of 10.0
and above shall be maintained in a water base mud to
control corrosion and prevent SSC. Consideration shall also
be given the use of H2S scavengers in both water and oil
base drilling fluid systems. Sufficient quantities of additives
shall be maintained at well site for addition to neutralise H2S
picked up by the drilling fluid system. Drilling fluid
containing H2S shall be degassed and the gases removed
shall be burned with the flare system and shall be
continuously monitored for H2S concentration.

5.12.10 Well Testing Operations
During well test, the level of H2S concentration shall be
monitored at first hydrocarbon to surface and at regular
intervals subsequent to first hydrocarbon. All produced
gases shall be burned with the flare system if the gases are
flammable.

All well test equipment, well head equipment and tubular
goods shall meet the H2S service requirement. Drill pipe
shall not be used for testing well with H2S. The water
cushion shall be inhibited in order to prevent H2S corrosion.
The test equipment shall be flushed with treated fluid for the
same purpose at the end of the test.

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5.13 HPHT Drilling Operations
Wells having an undisturbed bottom hole temperature (BHT) greater than
300 °F (149 °C) and maximum pore pressure exceeding 0.8 psi/ft or requiring
pressure control equipment with a rated working pressure in excess of
10,000 psi shall adhere to the following procedures. Contractor should
consider the following procedures for high pressure (HP) wells.

5.13.1 Risk Management

HSE considerations shall have the utmost priority in all phases of
planning and execution of HPHT well construction, completion,
testing and abandonment.

Drilling, completing, testing and abandoning wells in HPHT

environments are riskier due to being complex, having a higher
probability of well control incident and of equipment failure. Thus all
geological and operational hazards shall be identified and assessed.
A Risk Management Plan shall be in place, covering hazard detection,
preventive or risk reduction actions, consequence mitigation and
Management of Change (MOC) process.

5.13.2 Personnel Training

Skilled and experienced personnel guided by good operational
procedures and practices are a paramount prerequisite for HPHT well
engineering and construction. Personnel involved in planning and
execution (including Drilling Engineers, Superintendents, Supervisors,
Geologist, third party contractors and rig crew) shall have proven
experience of HPHT operations and undergo suitable HPHT training,
to understand the HPHT well engineering, equipment, operations,
uncertainties and constraints. Training shall also focus on safety
awareness, communication, roles and responsibilities, H2S likelihood
and well control matters. Persons requiring HPHT training shall work
under the supervision of suitably experienced persons.

5.13.3 Preparation and Planning

HPHT geological and geotechnical expertise shall be available to
ensure sound and reliable well design parameters and down-hole
predictions/simulations, since these are the basis for well design,
equipment selection, contingency plans and identification of
uncertainties that shall be addressed to successfully meet well
objectives safely and with low NPT.

Whilst considering HPHT exploration and/or appraisal well data

acquisition programme, Contractor shall consider and obtain all

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necessary data needed to engineer and plan the potential HPHT
development wells.

An input assumption document shall be prepared for all HPHT wells

and form the basis for well design. All safety critical parameters such
as pore/fracture pressure prediction, temperature prediction, fluid
description, H2S and testing/production requirements shall be
clearly documented and verified. In addition, development wells
input assumptions shall consider production fluids characteristics,
rates and life of well.

Contractor shall have independent verification of the input

assumption document by an industry recognised third party or a
competent technical authority within Contractor’s organisation
independent of the HPHT project. The report shall be made available
upon request by PETRONAS.

5.13.4 Well Engineering and Design

An HPHT Drilling, Completions and Testing Operations manual shall
be in place detailing the standards and procedures and practices for
drilling and tripping, flow checks, fingerprinting, formation evaluation,
coring, well control, testing, completions, plug & abandonment and
emergency response. It shall also include barrier philosophy and
verification plans. This document shall be bridged with drilling
contractor’s Safety Management System.

An HPHT Well Control plan shall be prepared. The plan shall

encompass kick prevention and detection and also details on various
shut-in scenarios, killing and circulating kick methods. The plan shall
consider all necessary equipment requirement and availability.

A life-of-well development well design shall be in place addressing

annulus gas migration risks to ALARP. Contractor shall identify safety
critical cementation and qualify proposed cementation to ensure the
cement will not degrade at elevated temperatures or when subjected
to very large stress changes associated with pressure changes within
the well.

Contractor shall have independent verification of the final well

designs by an industry recognised third party or a competent
technical authority within Contractor’s organisation independent of
the HPHT project. The report shall be made available upon request
by PETRONAS.

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5.13.5 Drilling Unit and Equipment
Drilling units proposed for HPHT operations shall be audited for
HPHT technical fitness for purpose and readiness by an industry
recognised third party authority in HPHT drilling rig auditing. All
critical actions from the audit shall be duly closed out prior to drilling
any HPHT hole sections. The report shall be made available upon
request by PETRONAS.

Relevant information on Emergency Response Plan shall be posted in

Bahasa Malaysia and English at prominent locations on the
operations facilities.

Contractor shall ensure that all tubular, connections, wellheads,

completion equipment, testing equipment and other safety critical
equipment are qualified for proposed design loads and production
fluids. A QA/QC plan shall be agreed and implemented with the
equipment supplier.

5.13.6 Contingency Plan

A Blowout Contingency Plan (BOCP) for suitably rated relief well shall
be submitted to PETRONAS in the NOOP in accordance with Section
13.3.

As for development wells, an assessment of the effect of reservoir

compaction and depletion shall be conducted to verify that
development wells are suitably designed to mitigate any loss of
integrity due to the effects.

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Section 6: Formation Evaluation

Contractor shall obtain sufficient well data and samples during operation to permit
geological and reservoir evaluation of the well and to achieve all well objectives
while ensuring operation safety and wellbore integrity. The applicable formation
evaluation data and reports shall be made available to PETRONAS in a proper and
timely manner.

6.1 Drill Cutting Sampling

6.1.1 Sample Frequency

The frequency of sampling drill cuttings for geological purpose shall
be one sample each for every 5 metres drilled in objective zones and
for every 10 metres drilled in other part of the hole in exploration and
appraisal wells and one sample each for every 10 metres drilled in
production hole in development wells. Samples prior to setting
surface casing on platform development wells need be obtained on
only the first four wells. Sampling frequency shall be indicated in the
NOOP.

6.1.2 Sample Container

Each container of drill cuttings shall be accurately and durably
labeled when filled, with the name of the well and the interval depth.
Where samples cannot be obtained, the interval and the reasons shall
be recorded.

6.2 Coring
Proposals for coring shall be indicated in the NOOP to include but not
limited to the depth interval of coring, objectives and reservoirs to be cored.

6.2.1 Conventional Cores

The core recovered from the core barrels shall be properly extracted,
oriented, marked and described immediately and properly placed and
vertically oriented in core containers. The cores shall be accurately
and durably labelled with the name of the well, the depth interval of
the core and the sequential number of the container if more than
one.

6.2.2 Side Wall Cores

Side wall cores shall be described as soon as practical or in the case
of side wall cores that are to be preserved for future analysis, a chip
taken from the core prior to preservation shall be described. The
cores shall be placed in suitable containers that are accurately and

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durably labelled with the name of the well and the depth of the core.

6.3 Formation Evaluation Logging

The applicable reports and logs shall be properly and timely submitted to
PETRONAS. Field prints of individual runs of all electrical, radioactive or
other formation evaluation logging operations, directional and other surveys
shall be submitted to PETRONAS. Formation evaluation log, directional and
other surveys shall be submitted to PETRONAS through Final Drilling &
Completion Report.

All occurrences of oil, gas and other minerals of potential geological
interest shall be noted on the formation evaluation log to include all
important zones of porosity and interpreted contents thereof, cased intervals
and complete details on drill-stem or wireline formation tests.

6.4 Oil and Gas Flow Testing
Flow assurance issues, such as hydrate formation and waxing at cold
temperatures should be considered and handled appropriately prior to flow
testing a deepwater well. Refer to Volume 7, Section 2: Well Test & Surveillance.

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Section 7: Completion Operations

Contractor shall design well completion to withstand all expected loads

throughout different phases of well life. Completion operations shall be executed
in a safe and efficient manner. Well completion shall be done under an approved
written work programme only and all well completion activities shall be recorded
and made available to PETRONAS.

7.1 General Provision

Well Completion Philosophy shall be addressed in the FDP considering
reservoir characteristics, pressure, temperature, corrosion, well barriers,
producibility, operability, well surveillance requirements, well maintenance
feasibility, total life cycle cost as well as well abandonment aspects.

Well completion operations shall be conducted in a safe and efficient manner
to protect against harm or damage to life, property, environment and natural
resources including hydrocarbon resources.

7.2 Wellhead Equipment
All completed wells shall be equipped with wellhead valve assemblies with a
rated working pressure which equals or exceeds the maximum anticipated
pressure to which the wellhead may be subjected.

Connections and valves shall be designed and installed to permit fluid to be
pumped between any two strings of casing not cemented to the ocean floor.
In subsea completions, access to other than the production casing is not
required, provided that a unitised wellhead system is used which has a
working pressure rating in excess of the maximum anticipated pressure.

Wellhead valve equipment shall consist, as a minimum, of the crown or swab
valve, a Surface Safety Valve (SSV) and a master valve, in the christmas tree.
The SSV shall be the second valve in the flow stream from the wellbore.

Wellheads and christmas trees’ design or type should be standardised
wherever possible to minimise spares, cost of change over, etc.

7.3 Tubing Requirements
Tubing shall be sized to best suit reservoir properties and economic benefits.
All tubing shall have a rated minimum internal yield pressure greater than the
maximum anticipated pressure.

Only new tubing or used tubing which has been tested or inspected and
found to be suitable for well conditions shall be installed in wells. All tubing

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and connections that are internally coated shall be suitable for the
temperature and well fluid characteristic.

7.4 Subsurface Safety Valve
All tubing installations open to a hydrocarbon bearing zone shall be
equipped with a Surface Controlled Subsurface Safety Valve (SCSSV) located
at least 30 metres below the sea floor. An injection valve capable of
preventing backflow may be installed in lieu of a SCSSV in an injection well
with PETRONAS’ approval. Such valve shall be located at least 30 metres
below the sea floor. Any other method/replacement of subsurface safety
valve (SSSV) requires PETRONAS’ approval.

The prime purpose of the SSSV is to protect people, property and the
environment against uncontrolled production while safeguarding the
hydrocarbon resource asset.

The SCSSV is not considered a permanent barrier. However a SCSSV may be

used as a temporary barrier in some circumstances when used in
combination with a mechanical barrier such as plug or back pressure valve
(BPV) for BOP and/or tree removal provided that the following conditions are
met:

a) The SCSSV has been inflow tested in excess of the anticipated

differential pressure that valve could be exposed to, prior to being used
as a barrier; and
b) The well is monitored at all time

A risk analysis shall be conducted to address all the possible failure modes,
their likelihood of occurring and identify mitigation steps to reduce the
likelihood and/or limit the consequences.

7.4.1 Installation
All tubing installation in wells shall be equipped with a functioning
SCSSV.

Notwithstanding the above, during emergency, alternative safety
devices (for example, subsurface control devices) may be
temporarily installed without prior consent of PETRONAS. PETRONAS
shall be notified of the situation and circumstances.

7.4.2 Valve Specifications
Contractor shall use subsurface safety devices that comply with the
minimum standards set forth in the latest API Specification for

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quality assurance including design, material and functional test
requirements and for verification of independent party’s performance
testing and manufacturer’s functional testing of such valves.

7.4.3 Reinstalling, Testing and Maintenance
Contractor shall install, test and maintain the SSSV systems based on
their operating and inspection maintenance philosophy.

7.4.4 Tubing and Plug Testing
A shut-in well equipped with a tubing plug or other device shall be
inspected for leakage of not less than once in six (6) months. If leakage
is detected, the plug shall be removed, repaired and reinstalled, or an
additional tubing plug may be installed in lieu of removal and repair.

7.4.5 Additional Protective Equipment
All tubing installations in which a wireline or pumpdown retrievable
subsurface safety device is to be installed shall be equipped with
a landing nipple which comes with flow couplings or other protective
equipment above the landing nipple to provide for sitting of the
subsurface safety devices.

Any subsurface controlled SSSV installation shall require PETRONAS’

prior approval. However, during emergency, the installation of the
subsurface controlled SSSV can be carried out prior to PETRONAS’
approval but the request shall be submitted within thirty (30)
days limit after the installation.

Contractor shall consult and obtain approval from PETRONAS prior
to using a subsurface controlled subsurface safety valve. The request
for approval shall include:

a) Explanation of actions taken since the SCSSV failure was noticed;

b) Valve type and specifications;
c) Valve setting and test certificates;
d) Well schematics showing TVD, MD;
e) Tubing pressure modelling/plots for Closed-In Bottom Hole
Pressure (CIBHP), Flowing Bottom Hole Pressure (FBHP),
Flowing Pressure at valve depth, Flowing Tubing Head Pressure
(FTHP) and Closed-In tubing Head Pressure (CITHP); and
f ) Long term solution

7.4.6 Records
Contractor shall maintain records which include design

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specifications, verification of assembly and setting depth, removal
date, reason for removal, reinstallation date and all mechanical
failures or malfunctions with notations as to the cause. Such records
shall be made available upon request by PETRONAS.

7.5 Packer Requirements

All completions open to hydrocarbon bearing zone(s) shall be completed
with the tubing-casing annulus packed off above the uppermost open
casing perforations unless it is a monobore (tubingless) completion. A
packer leakage test (if packer is utilised) shall be performed upon initial
installation of the packer to ensure isolation of the tubing-casing annulus.

7.5.1 Cement Packer
Cement packer described in this section refers to the application
where cement is used to fill up tubing-production casing annulus
and serves as a production packer. This technique is applicable where
marginal amount of hydrocarbon is found behind production casing
but above the existing uppermost packer. Contractor shall submit
request for approval to PETRONAS at least 30 days prior to work
execution. The request shall include the following:

a) risked economic model;
b) comparison with alternative solutions i.e. workover; and
c) considerations on abandonment solutions including options
that can be done prior to cement packer and the final
abandonment. All involved costs shall be accounted.

For cement packer application, the cement in annulus column

casing and tubing shall be at least 500 ft above the uppermost
perforations. Cement packer shall be verified by evaluation logs and
pressure testing.

7.5.2 Circulating Device
For all wells, manually operated sliding side door shall incorporate a
seating nipple on top and shall be of shift-down-to-open type to
allow isolation.

7.6 Separation of Zones
Multiple completions in the same wellbore shall require the separation of
each completion either through packers or cement or a combination of the
two. When feasible, a packer leakage test shall be conducted to check
isolation of the producing zone.

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7.7 Landing Nipples
Tubing hanger(s) shall be equipped with landing nipples or plug bushings to
receive pump-through tubing plugs or back pressure valves.

Requirements for landing nipples shall be considered at completion design
stage. Contractor shall ensure that the landing nipples are properly chosen
considering flow path area, pressure rating, etc.

7.8 Completion Fluid

The fluids used during well completion/workover operations which serve to
control the well while it is open, transport solids out of and into the well,
displace well treatments, bring the well in, augment perforating and protect
the producing formation during perforating and subsequent exposure shall
be designed to minimise adverse effects on steel surfaces and formation
damage.

7.9 Packer Fluid

The fluid which is left in the tubing-casing annulus above a packer is
required to meet many of the same requirements as workover fluids. Packer
fluids serve to reduce differential pressure across the packer, protect annular
steel surfaces from corrosion, aid to control the well when the packer is
being set or retrieved and may thermally insulate the tubing during
production or injection.

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Section 8: Barriers and Well Integrity

Contractor shall provide priority on well integrity considerations for

operations, well suspension and well abandonment. The objective shall be focused
on prevention of uncontrolled release of formation fluids from the well on a
permanent basis and/or reduce the risk of such escape of fluids to ALARP.
Another focus shall be prevention of sustained casing pressure (SCP). It shall be
recognised that the key to well integrity is highly dependent on the soundness of
the initial well design and success of primary cementations of casings and liners.

8.1 Number of Well Barriers

There shall be two (2) well barriers available during all well activities and
operations, including suspended or abandoned wells to prevent
uncontrolled outflow from the borehole/well to the external environment.

There shall be one well barrier in place during all well activities and operations,
including suspended or abandoned wells, to prevent uncontrolled cross flow
in the wellbore between formation zones.

8.2 Barrier Failure and Restoration

Should any of the barriers be lost, Contractor shall give priority to restore
the function and number of required barriers accordingly. Contractor shall
submit to PETRONAS the proposed barrier restoration plan complete with
relevant details, schematic, operational and barrier verification steps prior to
execution.

8.3 Barrier Material

Permanent barrier shall be defined as an impermeable and non-shrinking
barrier or combined barriers that create(s) a seal that has a permanent/
eternal characteristic. Means of creating seal through the use of physical
elements may be categorised into three (3) types:

8.3.1 Solidified Cement

A solidified cement barrier element is a barrier that will maintain a
permanent seal provided that its position, quantity and quality has
been tested and verified for its intended purposes. Its placement
records shall be reviewed and actual placement is confirmed to have
met the minimum design requirements. Cement plug set in a tubular
section that is uncemented or has poor annular cement bond is not
considered a barrier.

8.3.2 Mechanical Barrier

A mechanical barrier element is a seal achieved by mechanical

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means in a wellbore. Plugs, bridge plugs, cement retainer and packers
are acceptable as permanent barriers if used with cement. When
cement is used as a barrier during well construction together with
mechanical barriers, then the mechanical barriers are
complementary to a properly executed cementing operation.

8.3.3 Fluid Barrier

Fluid barrier element is a column of fluid(s) exerting hydrostatic
pressure which exceeds the pore pressure of the potential flow zone.
These fluids may include drilling fluids, brine and water. It shall be
recognised that the hydrostatic contribution of any of these fluids
may change with time. Thus, the use of this barrier shall be
carefully planned, calculated and continuously monitored and
replenished as necessary. Considerations shall be given to hydrostatic
pressure, friction through circulation, fluid properties and formation
strengths that are exposed to this fluid column. Fluid barriers are not
considered as permanent barrier.

8.4 Well Integrity Management

Contractor shall establish a well integrity management system (WIMS) to
ensure well condition is structurally sound with competent pressure seals
that eliminate and/or reduce the risk of uncontrolled and/or unintended
release of formation fluids throughout the well life cycle. The management
system shall include procedures for barriers monitoring, maintenance and
continuous integrity verification. The methods and frequency for verifying
the condition of barrier shall be defined and documented.

All annuli capable of being monitored in a well shall be routinely measured

for pressure build-up. The frequency of monitoring shall be appropriate to
the well criticality, failure severity and previously known problems.
PETRONAS shall be immediately informed regarding wells diagnosed with
SCP. SCP means casing annular pressure build-up (casing/wellhead pressure
returns after bleed-off).

Contractor shall submit monthly well integrity report to PETRONAS. The

report shall include:

a) Database system that provides up-to-date well integrity and barrier

status (for example, leaks, corrosion, erosion, etc.) for all wells; and
b) SCP status tracking and condition

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Section 9: Plug and Abandonment of Wells

Contractor shall adhere to or exceed the minimum plug and abandonment (P&A)
requirements provided to ensure full and adequate isolation of formation fluids both
within the wellbore and from surface or seabed. Plugs shall be verified to ensure
correct depth placement with the required sealing capability. Well P&A programme
and suspension plans shall be submitted to PETRONAS for approval in a timely
manner.

9.1 Responsibility to Abandon a Well

Contractor shall ensure that:

a) A well or a portion of a well that is not suspended or completed is
abandoned; and
b) Where a well is abandoned, it shall be abandoned in accordance with
applicable provisions under Section 9

When a well or a portion of a well has not been abandoned in accordance

with applicable provisions under Section 9, it shall be the responsibility of the
Contractor, when required by PETRONAS, to properly re-abandon the well.

9.2 Application to Abandon a Well

Contractor shall submit to PETRONAS a request for approval to abandon
any well prior to execution. It shall be recognised that each well is unique
and shall be considered on an individual basis. The submission shall include
reasons for abandonment as well as the following information:

a) Programme outlining operational steps and barrier verification (testing).

It shall also include description for plug types, downhole placement
technique and downhole cement slurry support (to prevent slurry
slumping).
b) Current status and proposed P&A well schematic complete with
descriptions for the following details:
• Well depth;
• All perforated intervals including those that have been plugged;
• Casing and tubing depths and description;
• Estimated tops of cement in each casing annulus;
• Subsurface equipment and depths;
• Plug types, locations and lengths;
• Types and density of fluids left in hole;
• Perforating and casing cutting plans;
• Casing removal depths;
• Reservoir strata, subsurface pressures of all known potential

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reservoirs and estimated pressures; and
• Cement bond evaluation log result, if recorded

PETRONAS may request additional requirements where it deems necessary
or to enhance benefits.

9.3 Subsequent Report of Abandonment

Contractor shall produce a detailed report of the manner in which the
abandonment or plugging work was accomplished: the nature and
quantities of materials used in the plugging; the location and extend, by
depth, of casing left in the well; the volume of drilling fluid used and the
records of barrier verification tests performed. It shall also contain
information related to removal of casing strings and wellhead. This report
shall be submitted to PETRONAS in accordance with Section 2.4. Contractor
shall archive the records of abandoned well for future eventualities.

9.4 Permanent Abandonment

Permanent abandonment proposal shall be prepared with the following
objectives:

a) Provide downhole isolation between hydrocarbon zones;

b) Protect freshwater aquifers; and
c) Prevent migration of formation fluids through the wellbore

The materials used as barriers for well abandonment shall be able to

withstand the load and environmental conditions that the barriers may be
exposed to for the time the well will be abandoned.

9.4.1 Isolation of Zones in Open Hole

In uncased portions of wells, cement plugs shall be spaced to extend
30 metres below the bottom and to 30 metres above the top of any
hydrocarbon zones and fresh water zones shallower than 300
metres, to isolate all hydrocarbon bearing zones from one another
and from water bearing formations and to prevent any fluids
migrating to the surface.

A cement plug that is not supported by the bottom of the well shall,
after Wait-on-Cement (WOC) to harden, be tagged with 10,000 lbs. or
the maximum safe tagging weight that can be applied with the string
in use.

After an unsuccessful fishing operation for stuck pipe, where
possible, the fish shall be perforated and cement shall be pumped

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through the perforations to cement the annulus between the fish and
the hole to isolate any open sands that are present. If any
hydrocarbon bearing sands are exposed below the fish, Contractor
shall consider taking remedial action to prevent cross flow between
them. Where this is not possible, a cement plug shall be positioned
that extends at least 30 metres above the fish to isolate the fish from
the open hole above the fish. The plug shall be tested in accordance
with Section 9.6.

In the event that any of the above fish carries a radioactive source,
Atomic Energy Licensing Board (AELB) under the Ministry of Science,
Technology and Innovation (MOSTI) approval shall be sought before
any decision is made to abandon the well and/or bore. A copy of
AELB approval letter shall be provided to PETRONAS when
requesting for approval to abandon. Where there is possible risk of
subsequent drilling into the source, coloured cement shall be used.

9.4.2 Isolation of Open Hole

Where there is an open hole below the casing, a cement plug shall
be placed in the deepest casing string in accordance with (a) below.
In the event lost circulation conditions have been experienced or are
anticipated, a permanent bridge plug (or equivalent) may be
placed in accordance with (b) below:

a) A cement plug set by the displacement method so as to extend
a minimum of 30 metres above and 30 metres below the casing
shoe. The plug shall be tested in accordance with Section 9.6
b) A permanent bridge plug (or equivalent) set within 45
metres above the casing shoe with 30 metres of cement set on
top of the plug. The plug shall be tested in accordance with
Section 9.6. Before setting the plug, attempts should be made to
cure losses

9.4.3 Plugging or Isolation of Perforated Intervals
A balanced cement plug shall be set by the displacement method
opposite all open perforations extending a minimum of 30 metres
above and 30 metres below the perforated interval or down to a
casing plug, whichever is less. The plug shall be tested in accordance
with Section 9.6. Cement is considered as the prime abandonment
material. Alternative abandonment material and/or method shall be
justified. PETRONAS may approve the following material and/or
method for specific well conditions:

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a) A cement retainer with effective back pressure control or a
permanent packer set not less than 15 metres and not more
than 30 metres above the top of the perforated interval with
a cement plug calculated to extend at least to the top of the
perforated interval and 15 metres above the retainer or packer.
The plug shall be tested in accordance with Section 9.6
b) A permanent bridge plug set not more than 45 metres
above the top of the perforated interval with 30 metres of
cement set on top of the plug. The plug shall be tested in
accordance with Section 9.6

9.4.4 Plugging of Casing Stub

If casing is cut and recovered leaving a stub, one of the following
methods shall be used to plug the casing stub except conductor
casing:

9.4.4.1 Stub Terminating Inside Casing String

A stub terminating below a conductor casing shall be
plugged by setting a cement plug so as to extend 30 metres
above and 30 metres below the stub. The plug shall be
tested in accordance with Section 9.6. Cement is
considered as the prime abandonment material. Alternative
abandonment material and/or method shall be justified.
PETRONAS may approve the following material and/or
method for specific well conditions:

a) A cement retainer set approximately 15 metres above
the stub with a volume of cement equivalent to 45
metres squeezed below the retainer and 15 metres
above the retainer. The plug shall be tested in
accordance with Section 9.6
b) A permanent bridge plug set approximately 15 metres
above the stub with 30 metres of cement set on top of
the plug. The plug shall be tested in accordance with
Section 9.6

9.4.4.2 Stub Terminating Below Casing String

If the stub is below the next larger string, plugging shall be
accomplished in accordance with either Section 9.4.1 or
Section 9.4.2.

9.4.4.3 Liner Top or Screen

Liner or screen that is impractical to be removed shall be

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plugged in accordance with Section 9.4.4.1.

9.4.4.4 Plugging of Annular Space

Any annular space communicating with any open hole and
extending to the sea floor (or surface for onshore) shall be
plugged with cement.

Note: This requirement is waived for deepwater operations

9.5 Surface Plug

A cement plug at least 45 metres in length, with the top of the plug 45
metres or less below the sea floor, shall be placed in the smallest string of
casing which extends to the sea floor.

For subsea wellhead, the top of the plug may be set within 100 metres to the
sea floor.

9.6 Testing of Plugs

The plugs below the surface plug shall be verified and verification result
documented to ensure correct depth placement with the required sealing
capability, with the following tests:

a) Weight or tag test by placing a minimum pipe weight of 10,000 lbs. on
the plug;
b) Pressure test by testing the casing against the plug with a minimum
pump pressure of 1000 psi with no more than a 10 per cent pressure
drop during a 15-minute period; and/or
c) Inflow or negative pressure test to at least the maximum pressure
differential that will be experienced by the plug post abandonment

The testing requirement shall be as the following:

a) Plug entirely in open hole shall be verified with weight test (unless
bottom supported by the well or a successfully tested plug);
b) Plug in cased hole shall be verified with both weight and pressure test; and
c) Plug (the first plug below surface plug) in deepwater wells where a
reduction of hydrostatic pressure will occur above the plug, shall be
verified by inflow test in addition to the above testing requirements

9.7 Abandonment Fluid

Each of the respective intervals of the hole between the various plugs shall
be filled with drilling fluid of sufficient density to exert hydrostatic pressure
exceeding the greatest formation pressure encountered while drilling the

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intervals between the plugs. In addition to the above, the hole shall be
circulated so that the drilling fluid is gas-free and of uniform fluid weight.

9.8 Clearance of Location

All casing, wellhead equipment and piling shall be removed as deep as
practically possible (minimum of 1 metre) below the sea floor. Contractor
shall provide written verification that the location has been cleared of all
obstructions.

9.9 Well Suspension

Any well which is to be suspended with no immediate intention to return to
the well for further operations shall be filled with drilling fluid and cemented
as required for permanent abandonment in accordance with Section 9.4.

9.10 Temporary Well Suspension

Any well which is to be temporarily suspended prior to drilling ahead,
completion or abandonment shall be filled with appropriate weighted fluid
and cemented in accordance with Section 9.4.1, 9.4.2 and 9.4.3 and shall be
equipped with two well barriers in the form of kill fluid used in accordance with
Section 8.3.3 together with one of the following:

a) Pressure tested casing or cement plug or liner lap; or
b) Pressure tested mechanical barrier

In all cases, wellhead valve assembly tree or wellhead cap or BOP shall be
employed to give pumping access to the well.

9.11 Suspended Well

Contractor shall ensure any well that is suspended and that has not been
completed within five (5) years from the date of suspension shall be either
completed or abandoned. Records of suspended wells shall be retained in
order to ease the re-entry or abandonment of the wells.

Every well that is completed and/or inactive suspended shall be inspected
at least once each year and reported to PETRONAS and shall be placed on
production or abandoned within a period three (3) years from the date of
suspension unless prior approval has been given by PETRONAS for the
extension of the period.

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Section 10: Workover and Well Intervention Operations

Workover operations conducted on wells after initial completion for the purpose
of maintenance, restoration or increasing the productivity shall be conducted in a
safe and efficient manner. Workover programme or Notice of Workover Operations
(NOWOP) shall be prepared by Contractor and submitted to PETRONAS for approval
in a timely manner. Reporting and report contents requirement shall adhere to the
procedures in this section.

10.1 General Requirement

This section covers well activities which may be split into two broad
categories:

a) Workover related to pulling completion and requiring assistance of

hydraulic workover unit, hoist or workover rig
b) Well intervention primarily within tubing but also includes work outside
tubing that do not require pulling completion. This group is further
divided into two subgroups; major well intervention and routine well
intervention

All activities shall be done under two verified barriers. Contractor shall have a
system in place to assure that personnel involved in these activities have
acquired necessary competencies to perform the jobs. All equipment shall
meet related industry recognised standards. All work shall be done under
approved written work programme. Where a contingency plan requires well
intervention activities, Contractor shall have procedures readily approved and
all required equipment and personnel prepared.

10.1.1 Well Intervention

A well intervention operation is conducted with equipment and support
facilities that precludes requirement for a rig over the wellbore such
as coiled tubing, slickline and snubbing activities. It also possible that
this activity is combined with supporting vessel/boat utilisation in
offshore environment.

Rigless operation shall be conducted only when the minimum
requirements below are completed:

a) Safety concerns properly addressed (lifting equipment, platform
integrity, well control, etc.);
b) Operations risk and benefit evaluation;
c) Cost analysis; and
d) Environmental impact assessment

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Further discussion is required for any types of operation and/or
method that are not covered in this document and subject to approval
from PETRONAS.

10.1.2 Workover
Workover is a remedial operation conducted with equipment and
support facilities that includes requirement for workover rig over
well bore.

Further discussion is required for any types of operation and/or
method that are not covered in this document and subject to approval
from PETRONAS.

10.1.3 Operations
Workover and testing operations whereby rig assistance is required
shall not be undertaken, nor operations other than emergency well
control be conducted unless rig crews and supporting service units
are properly manned and supervised.

10.2 Workover Unit and Equipment

10.2.1 Workover Structure

Workover units shall meet API 4F Specification for Drilling and
Servicing Structure. Masts, derricks, substructures and related
equipment shall be selected, installed, utilised and maintained with
consideration given to the potential loads and conditions of loading
that may be encountered by the operations. The conditions affecting
loading include wind, setbacks, pulling and running tubular goods,
and subsurface equipment, fishing, drilling and jarring operations.

10.2.2 Travelling Block Safety Device

All workover and completion rigs shall be equipped with a travelling
block safety-control device. The device shall be checked for proper
operation after each drill-line slipping operation. The operational
check shall be recorded in the daily well log.

10.2.3 Pumping Equipment

Pumping equipment and lines shall be earthed and equipped with an
overpressure protection. The emergency vent shall be routed to a
safe area.

The flowlines from the pump manifold to the wellhead valve

assembly shall have a rated working pressure equal to that of the

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wellhead equipment or to the maximum anticipated well or pumping
pressure, whichever is less.

A lubricator assembly with the necessary shut-off valves, bleed
valves and pump connections to permit the safe installation and
removal of the pumpdown tools shall be connected to the flowlines
downstream of the pump manifold. Any polluting fluids bled from the
lubricator shall be properly contained.

10.2.4 Pumping Operations

Prior to pumping operations, the flowline from the pumping unit to
the well connection shall be properly secured and pressure tested to
the maximum anticipated pressure plus a safety margin. Pressure
testing should be done with water, brine or any inert fluids.
Appropriate high pressure shut-off and bleed valves shall be installed
as a part of the pump manifold, permitting disconnection of the
pump, if needed. Well fluids and gas returning from the well during
pumping operations shall be safely handled and properly contained.

10.2.5 Hazardous Chemicals

Any hazardous materials shall be delivered or store together with a
correspondening Material Safety Data Sheet (MSDS). Spill combat/
neutralising agents should be available.

Appropriate first aid kits, safety shower and eye washer shall be
available.

Liquid nitrogen, if spilled, can cause serious damages to steel

structure and hence appropriate preventive and protective precaution
shall be taken.

10.3 Well Unloading Operations

Operations which involve unloading or cleaning up a well shall use piping or
equivalent armoured flexible pipes, vessels and other control equipment in
order to safely contain, handle and dispose of any flammable, hazardous or
polluting material.

Flammable liquids, including condensate and crude oil, shall not be placed
in vessels having open tops. However, such liquids may be temporarily
placed in vessels having open tops for on-going operations. A flammable
liquid is defined as any liquid with a flash point below 37.8°C (100°F).

If a well is routed to flare, considerations shall be taken to tide and/or wind

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directions, the position of the platform and vessels presence in the vicinity.

If the well is opened to flowline, Contractor shall ascertain that impacts to

flowline (for example, clogging, corroding, etc.) are minimised.

10.4 Notification and Submittal Requirements – Workover
Contractor shall notify PETRONAS in the WPB and subsequent revisions of
its intention to undertake any particular workover campaign. Workover
operations require prior approval from PETRONAS through the submittal of
Notice of Workover Operations (NOWOP).

10.4.1 Notice of Workover Operations and Major Well Intervention

Contractor shall submit NOWOP at least forteen (14) days prior to
workover execution for approval. This requirement also applies
to major well intervention as described in Section 10.5. The
submitted NOWOP shall have been reviewed by PETRONAS’ parties
responsible for the tasks affected by the proposed workover.
NOWOP shall include the following information as a minimum:

a) Well problem description, job objective, proposed problem

solution and justification of proposed workover;
b) Present well status and well history;
c) The name of all intervals proposed for completion or alternative
completion;
d) Accumulative oil, gas and water production;
e) Shut-in surface and bottom hole pressure;
f ) A well schematic drawing showing the present and proposed
zones and the completion including depths and description of
equipment to be used;
g) Proposed workover procedures outline;
h) Estimated time and expenditures breakdown;
i ) Estimated reserve, incremental production including estimation
methodology;
j ) Potential problem or risk and mitigation plan;
k) Cost analysis and detailed breakdown;
l ) Safety and environmental assessment;
m) Decision tree chart; and
n) BOP stack diagram

Electronic copy of detailed workover procedures shall be submitted

upon request by PETRONAS.

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10.4.2 Workover Reports and Data Retention
All activities performed at the well site shall be recorded consistently
in both reporting format and level of detail. The reporting
requirements described below are aimed at capturing records of
activities done, problems encountered, lessons learnt in order to
facilitate performance improvement and knowledge management:

a) Daily Workover Report (DWR) shall be submitted daily; and

b) Final Workover Report (FWR) shall be submitted to PETRONAS
no later than 60 days after the workover is completed.

All reports shall be retained for future reference and made available
to PETRONAS upon request.

10.4.3 Daily Workover Report

Contractor shall submit the Daily Workover Report (DWR) to
PETRONAS which contains but not limited to the following
information:

a) Well name;
b) Rig name;
c) Workover objectives;
d) Cost estimate;
e) Actual cost;
f ) Duration estimate;
g) Actual days;
h) Operation summary with 24 hours’ outlook;
i ) Operations activity time log including problems encountered
description;
j ) NPT-hour (daily and cumulative NPT);
k) HSE issues (incident/accident); and
l ) Look ahead plan and major concern (if any)

10.4.4 Final Workover Report

After the workover operation is completed, all available information
shall be submitted in a Final Workover Report (FWOR) to PETRONAS
no later than sixty (60) days after the workover is completed. The report
shall include but not limited to the following information:

a) History of the well;
b) Description and date of work performed;
c) A well schematic drawing with tubing details before and after
workover;

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d) Results of well test, before and after workover;
e) Detailed estimate against actual expenditure;
f ) Summary of workover operations and time break down;
g) Zonal isolation intervals and pumped cement volume; and
h) Lessons learnt and improvement initiative

10.5 Major Well Intervention Operations

Prior approval from PETRONAS is required for the following activities which
are considered as major well intervention:

a) Coiled tubing operations;
b) Well pumping/Stimulation;
c) Electric line involving explosives and tractor tools;
d) Planned fishing job or campaign; and
e) Well integrity remediation

10.6 Notification and Submittal Requirements – Major Well Intervention

Contractor shall notify PETRONAS in a Monthly Major Well Intervention Plan
of its intention to carry out any major well intervention activities in the
following months on a quarterly basis.

Major Well Intervention Plan shall be reviewed and endorsed by PETRONAS

accordingly prior to operations execution.

Major Well Intervention Plan shall include the following details:

MONTH OF …………………………………
Coiled Tubing Well Name Well Name Well Name Well Name
Job Description Job Description Job Description Job Description
Plan Cost Plan Cost Plan Cost Plan Cost
Plan Duration Plan Duration Plan Duration Plan Duration
Expected Gain Expected Gain Expected Gain Expected Gain
Electric Line Well Name Well Name Well Name Well Name
Job Description Job Description Job Description Job Description
Plan Cost Plan Cost Plan Cost Plan Cost
Plan Duration Plan Duration Plan Duration Plan Duration
Expected Gain Expected Gain Expected Gain Expected Gain

10.6.1 Well Intervention Activity Reports

Contractor shall submit the Daily Major Well Intervention Report to
PETRONAS which contains the following information as a minimum:

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a) Well number;
b) Summary of operations for the last 24 hours including HSE report;
c) NPT-Hour (daily and cumulative NPT);
d) Look ahead plan and major concerns (if any); and
e) Fish or well problem encountered or left behind

10.7 Routine Well Intervention Operations

Certain routine operations such as pumpdown or through-tubing non-rig
operations are considered maintenance operations and do not require
approval by PETRONAS. However, Daily Routine Well Intervention Report
shall be submitted to PETRONAS following the Daily Major Well Intervention
Report’s format. Routine well intervention operations include the following:

a) Paraffin cutting;
b) Moving and setting tubing plugs, gas lift valves and SSSVs by wireline
techniques;
c) Opening and closing circulation ports;
d) Bailling sand or sand cleanout;
e) Pressure and temperature surveys;
f) Swabbing;
g) Scale removal;
h) Measurement survey (caliper, gauge, depth and flowmeters, electric logs,
etc.); and
i) Wellhead repairs which do not require the installation of a BOP stack.

However, prior to removing the wellhead valve assembly, well control shall
be maintained by well control fluids and by a downhole sealed off pressure
tested annulus and tubing. In this condition, wellhead repair may be carried
out involving removal of the wellhead valve assembly and tubing-casing
annulus pack-off.

10.8 Well Control Equipment

10.8.1 Workover Pressure Control Equipment
BOPs and other surface pressure control equipment shall
have a rated working pressure which equals or exceeds the
maximum anticipated surface pressure. For any operation involving
movement of the tubing string, the minimum BOP requirement shall
be as described in Section 5.4.4.

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10.8.2 Well Intervention Pressure Control Equipment

10.8.2.1 Coil Tubing Operations

The minimum BOP shall consist of the following:

a) A set of pipe-rams, hydraulically operated;
b) A two-way slip assembly hydraulically operated;
c) A pipe cutter (shear ram) assembly, hydraulically
operated;
d) A set of blind rams, hydraulically operated;
e) A pipe stripper assembly; and
f ) A spool with side outlets (if no side outlets are provided
in the wellhead valve assembly)

The arrangement of the BOP shall be suitable for the service

intended.

10.8.2.2 Electric Line or Braided Line Operations

The minimum pressure control equipment shall consist of
the following:

a) Grease injection head;

b) Lubricator with bleed off valve; and
c) Dual rams BOP with grease injection port

For certain critical operations, additional BOP or cutter may

be added.

10.8.2.3 Slickline Operations

The minimum pressure control equipment shall consist of
the following:

a) Stuffing box;
b) Lubricator with bleed off valve; and
c) Single or Dual rams BOP (if necessary)

For certain critical operations, additional BOP or cutter may

be added.

10.8.2.4 Snubbing Operations

The minimum BOPs shall consist of the following:

a) A set of pipe-rams hydraulically operated;

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b) 2 sets of stripper type pipe-rams BOPs, hydraulically
operated with spacer spool;
c) A pipe stripper assembly; and
d) Hydraulically operated, or in exceptional cases,
mechanically operated snubber slip and seal assembly;
if the surface pressure is above 5000 psi, hydraulically
operated blind rams shall be used

Upon installation of the snubbing unit, it shall be pressure

tested for operation to the maximum anticipated surface
pressure. Snubbing operations under pressure shall be
performed with sufficient lighting. With the wellhead valve
assembly installed, a work or swab valve or a blind ram-type
BOP shall be mounted above the wing line to serve as a
base for the BOP stack.

The workstring shall include a back pressure device near or

at the bottom of the workstring and a landing nipple
installed above the back pressure device to receive a
blanking plug or check valve.

10.8.3 Other Equipment

An operable inside BOP (back pressure valve) and a safety valve in the
open position with proper end connections for tubing or workstring
being used shall be maintained and be readily available on the rig
floor (unless coiled tubing is being used).

The valve shall have a pressure rating which exceeds the
maximum anticipated surface pressure and shall be of such design
that it can be run through the BOPs. The safety valve shall be
pressure tested not less than once in every fourteen (14) days.
The pressure test shall be recorded in the relevant field log. If
necessary, a manifold and choke line shall be provided and
tested with water to the rated working pressure of the BOPs or of
the wellhead valve assembly, whichever is less.

10.8.4 Well Control Fluids
The characteristics, use, density and testing of well control fluids
shall be designed and maintained to minimise formation damage and
assure well control. Quantities of materials sufficient to assure well
control shall be maintained at the well site.

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10.8.5 Well Control
Prior to pulling the production tubing from the well, tubing strings
and casing annulus shall be circulated with well control fluids. The
hole shall be filled by accurately measured volumes of well control
fluids; wells which will not maintain a full column of fluid shall
maintain the maximum fluid level. Fill-up operations shall be
monitored by use of a mechanical, volumetric or electronic device
during all trips in and out of the hole.

A back pressure valve or wireline type plug, shall be installed and
function tested if possible in each tubing string before removing BOP
or wellhead valve assembly. The work shall be organised to minimise
the time between the removal of the wellhead valve assembly and
the installation of the BOP.

The well shall be continuously monitored during workover or
completion operations and shall not be left unattended at any time
unless shut-in with assurance of complete well control.

10.8.6 Pressure and Function Test

10.8.6.1 Pressure Test
Each component of the BOP stack assembly and related
control equipment shall be individually tested in accordance
with Section 5.4.6.2.

10.8.6.2 Function Test

The actuation of the BOP shall be carried out as defined in
accordance with Section 5.4.6.3.

10.8.6.3 Lubricators
Lubricator assemblies shall be pressure tested each time
they are installed to the maximum anticipated wellhead
pressure and at least annually to their rated working
pressure. The test date and test pressure of the former shall
be recorded on the daily log, and that of the latter shall be
indicated by a metal tag or band.

10.9 Emergency Shutdown (ESD)

An ESD control station shall be located at the drillers console during all well
operations. Units without drillers console shall have readily accessible ESD
stations. Contractor shall have procedure for Simultaneous Production and
Drilling Operations (SIPROD).

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10.10 Wireline Operations

10.10.1 General Requirements
For the purpose of these requirements wireline operations include all
cased hole or open hole operations, utilising either a solid or
stranded line.

The wireline packoff shall be monitored and maintained during
wireline operations and the elements shall be replaced, when
necessary, to assure a proper seal under pressure conditions.
Operations under pressure conditions shall not allow fluids to flow
through the wireline packoff, other than minor leakage necessary to
permit free movement of the wireline. Minor leakage from packoff
assemblies shall be properly contained and disposed of.

Before commencing the wireline work, all equipment shall be
checked for compliance with all applicable safety standards,
including the use of explosion proof motors on all power equipment.

When operations are temporarily suspended, the well shall be
monitored or completely shut-in until operations resume. Wireline or
conductor line operations during hours of darkness shall only be
performed in the presence of a proper lighting.

10.10.2 Operations in Cased Hole
When perforating or logging in a cased hole without the wellhead
valve assembly installed and where communication exists from the
wellbore to the formation, well control shall be maintained by well
control fluid and the BOP. The well shall be monitored continuously
on the trip tank.

When logging in a cased hole without the wellhead valve assembly
installed, where no communication exists from the wellbore to the
formation, well control shall be maintained by the BOP or well
control fluids.

When running and perforating with tubing conveyed guns, well
control shall be maintained by well control fluids and the BOPs. If
the perforation assembly includes a packer above the guns, it is
permitted to displace the workstring to underbalanced fluids to
enable perforation under drawdown conditions.

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10.10.3 Operations in Open Hole
Open hole operations such as induction-electrical, density and
acoustic logging that are performed without the wellhead valve
assembly installed shall maintained well control by the use of well
control fluids and BOP.

A lubricator assembly/or shooting nipple assembly shall also be used
if necessary in order to safely run and retrieve wireline tools.

All personnel not directly associated with the operations which utilise
explosive devices or hazardous radioactive materials shall vacate
the rig floor and substructure prior to device arming, entry and
retrieval from the wellbore. Competent personnel shall verify that all
explosive device systems, wireline units and BOPs are grounded to
the basic rig structure and that no unsafe electric potential exists (for
example, electric welding, exposed rig wiring near the cable etc.).
Contractor shall ensure that safe operating procedures and test are
used when handling any explosive devices.

All primary charges and secondary charges shall be stored and
transported exclusively in separated metal containers, marked with
internationally recognised explosives signs. This also applies to
defective detonators which have been removed from a misfired gun.
Transfer of loaded gun without detonators is only allowed if properly
identified and manifested with detonators stored in separate metal
containers.

Radio silence shall be observed just prior to arming any explosive
device and at all times while the device is at the surface or less than
60 metres down the hole. The observation of radio silence shall be
observed depending on the type of explosives and tools used.
Electrical welding machines and top drive system shall be isolated.

The impressed current cathodic protection equipment shall be
switched off on offshore platforms prior to arming any explosive
device and at all times, while the device is at the surface or less than
60 metres down the hole.

10.10.4 Swabbing Operations
The swabbing of wells shall be performed with a lubricator
assembly whether carried out with a small slickline or large braded
line. Flow rates shall be controlled by the use of choke restrictions in
the flowline. Swabbing of tubing strings capable of flowing

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hydrocarbons shall not be performed during hours of darkness
unless approved by PETRONAS.

10.11 Rigging Up or Down of Workover or Completion Equipment
The movement of workover or completion rigs and related equipment on
and off an offshore facility, rigging up and rigging down, shall be conducted
during daylight hours only unless adequate lighting is provided. Those
wellheads, flowlines, production and other equipment which could be
damaged by heavy lifting operations shall be shut-in and bled down or
otherwise protected (well with tubing/casing annulus pressure which cannot
be bled down shall be killed) prior to commencing heavy lift.

SCSSV shall be closed or a tubing plug or back pressure valve shall be
installed and tested if possible in each tubing string of wells that are exposed
to possible damage in moving operations.

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Section 11: Onshore Drilling Operations

Contractor shall comply with the relevant regulations prior to constructing the well
location. This includes but not limited to license and permits, risk assessment,
protection of the environment and safety, culture and religious traditions in the area
of operations, Emergency Response Plan (ERP) and restoration of the well location
as per original condition.

11.1 Drill Site and Camp Design

Land locations should be sized to accommodate a drilling rig, associated
equipment, materials, consumables and to provide space to accommodate
all staff. The overall size may vary considerably with the type of rig and
operations.

The finished level should be sufficient to accommodate the maximum flood

level. When defining the minimum required location area the following
points should be taken into consideration:

a) Minimum rig layout;

b) Accessibility of the equipment when the rig mast is laid down;
c) Minimum size of waste pit; and
d) Required manoeuvring area

11.1.1 License and Permits

Prior to carrying out any activities, Contractor shall obtain the
necessary work permits and should complete the following:

a) Preparation of Environmental Impact Assessment (EIA) report

covering the civil engineering, transport and drilling operations;
b) Preparation of a comprehensive HSE plan for the entire work
phase, from start of survey until demobilisation;
c) Topographical survey work;
d) Obtaining permission to implement the project (for example,
from local councils, forestry, building, environmental, irrigation
departments, etc.); and
e) Land acquisition

11.1.2 Risk Assessment

The risk survey shall be conducted by a specialist contractor under
the supervision of a civil engineer. At this early stage, a major
contribution should be made towards environmental protection, by
selecting access routes that have the smallest impact. Items that
should be considered during this stage are:

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a) Effects on the habitat of animals as a result of a change in the
natural drainage, surface water levels, aquifers;
b) Effects on fauna and potential hazards to the local population,
caused by excavations, filling, erosion, drainage and motorised
traffic;
c) Effects of increased accessibility for people by opening up tracks
into previously inaccessible areas;
d) Finding routes which are less utilised and therefore can be
opened again for traffic after completion of the operation
without causing resentment of interested communities; and
e) Direct impact by the survey team on the environment, including
minimising of vegetation cutting and controlling the survey crew
(for example, by preventing littering and poaching)

11.1.3 Access Road

Access road is required to transport equipment, crew and the drilling
rig itself to the drilling site and the camp site. During the evaluation of
a road access option the following aspects shall be considered:

a) Road capacity: The heaviest loads to be transported, maximum

axle loads and the total number of axles expected to pass the
road during the operation;
b) Safety: Visibility, road width, horizontal and vertical alignment,
requirement for protective structures, overhead obstructions,
driving behaviour, signposting, escarpments, distances;
c) Climate conditions: Occurring during the period of operations
and effecting the quality and long term serviceability of the road;
d) Terrain conditions: Hills, water crossings, load width and
headroom, capacity of bridges, ferry crossings, seasonal
inundation, access for the construction contractor;
e) Subsoil conditions: Sand, laterite, black cotton, peat, clay, rock
etc., both from foundation and construction material resource
point of view;
f ) Third party contractors: Availability, local expertise, materials and
equipment, attitude towards safe working and protection of the
environment; and
g) During the exploration drilling, the use of access roads is for
relatively short periods. Expenditure on maintenance should
therefore be assessed against capital expenditure on more
durable structures. Savings at the expense of safety shall never
be made

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11.1.4 Campsite
The campsite should contain accommodation and personnel support
facilities such as bedrooms, kitchens, sanitary blocks, dining,
recreation, laundry rooms, power generation, radio room, etc.

The campsite shall be located at a safe distance from the rig. Prior
to determining the distance between the drill site and the campsite,
the following should be considered:

a) presence of hazards for example hazardous gas;

b) escape route;
c) accessibility between the sites;
d) company night driving policy;
e) rig company safety policies; and
f ) complete risk assessment of the operating area

Minimum distance of 300 metres is recommended and preferably

should be positioned upwind from the drilling location. In areas with
dangerous wildlife, fencing between rig and camp is recommended.

An unobstructed view from the camp to the rig is desirable from a

safety and security point of view.

11.1.5 Water Pit and Drilling Fluid Pit

The works shall be carried out by the Contractor in such a way to
minimise disturbance to the surrounding ground.

Impermeable plastic liners shall be installed on all waste/mud pits.

The liners shall be of heavy duty waterproof material and
removable and reusable type. The pits shall have raised walls to
prevent overflowing.

Any holes or tears in the liners shall be repaired. Life buoys shall be
provided in clearly visible and accessible positions around pits
containing water, liquid mud, etc. Rectangular roping shall be
provided around each such pit to assist egress from the pit. Ropes
shall be fixed, from corner to corner, around the perimeter and
kept taut at all times.

Clear visible warning signs shall be placed around pits containing

water, liquid mud, etc. Water pits shall be confined by a surrounding
wire fence and provided with gates if there is potential of animal or
human fall.

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Upon completion of the drilling operations and once the liquids
contained within the water based mud cuttings pit have evaporated
and the pit has dried out, Contractor shall backfill over and around
the pit using locally obtained material and shall restore the area to its
original condition.

In any event, pits shall not be left open to the atmosphere (other than
while drying) and shall be left in such condition after remediation that
they shall not constitute a danger to the local population, domestic
animals or wildlife, etc.

11.1.6 Flare Pit and Vent/Bleed-Off Line

All bleed/off/vent-line from the choke manifold direct to or through
a mud gas separator shall be securely tied down and extended to the
flare pit in a slightly downward direction.

Flare pit shall be located at least 50 metres away from the well, has
raised walls and excavated to contain any liquid that might be
bled-off without overflowing. Every effort shall be made to clear the
area around the flare pit to be free of grass, debris, logs and
flammable materials to reduce the hazards of fire. The flare pit on
cessation of operations shall be backfilled and compacted.

11.1.7 Water Well and Water Source

A continuous supply of water to the rig is essential to prevent rig
downtime. Before the start of an extended drilling campaign, a
comprehensive study should be made on the reliability of the
possible drill water supply and the consequences of possible
interruptions. Consideration should be given to using the contents of
the waste pit as an emergency water source for well control. Nearby
surface water should provide the most reliable and economic supply.
However if this is not available, water well or water hauling by road
tanker should be considered.

For domestic water consumption, well water shall first be examined

and approved by a test laboratory for both human consumption and
also drilling purposes.

11.1.8 Fencing and Well Security

Whether a fence is required and the type depends very much on the
environment. The presence of local communities or herds of animals
will quickly justify a fence from a security and safety point of view.
Usage of inexpensive, locally available material is recommended.

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11.2 Environment Protection and HSE

11.2.1 Emergency Response

Contractor shall have an ERP for the site during both drilling and
testing phases.

First aid kits in adequate numbers shall be available throughout the

site. A clinic with first aid facilities, defibrillator unit and oxygen
resuscitator shall be made available on site for emergency medical
treatment. This clinic should be staffed by medical personnel
(medical officer or site doctor/registered nurse). Any cases requiring
more in depth health provision shall have detail MEDEVAC (Medical
Evacuation) response.

Communication means for emergency purposes such as phone or

radio shall be distributed in sufficient numbers. Alarm signals shall be
available and tested regularly.

Notice boards shall be placed at pertinent locations to highlight

measures in place. These boards will show as a minimum a facility
layout with escape routes, muster locations, location of emergency
equipment and emergency response team contact details.

11.2.2 Protection of Fresh Water Sands

Fresh water sands shall be protected with cemented surface casing
and such casing shall not be removed from the well at abandonment.
In wells, where a short string of surface casing is set and cemented,
deeper fresh water zone(s) shall be protected by setting cement
plug(s) covering the water zone(s) and extending at least 30 metres
above and below the zones.

11.2.3 Well Near Water Source

When a drilling site is located near to the normal high water mark of
a body of water or a stream and is in such situation that pollutants
from the well may reach the water, Contractor shall construct dikes
or trenches around the area and take other necessary measures as
may be required to contain the pollutants. All land operations shall
have a suitable collecting pit & skimmer to collect the liquid waste
product and water run-off.

11.2.4 Drilling Liquid Waste, Contamination and Spills

Liquid waste comprising of waste drilling mud, oily waste or other
liquid products from a well shall be contained at all times and

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disposed in a manner that shall not pollute any surface water or
underground source of potable water. Such liquids produced may be
stored in a properly lined earthen pit at the well site, provided that
such pit is excavated to a depth which shall contain all the waste fluid
and shall not collect natural run-off water.

11.2.5 Fire Prevention and Safety

Water supply of sufficient volume and pressure required to properly
operate the firefighting equipment shall be made available at all time.

Any rubbish or debris that might constitute a fire hazard shall be

removed to a safe distance from the vicinity of any well and the flare
pit.

Any drilling rig with a camp located within 50 metres of the well shall
be installed with an interconnected fire alarm system that is able of
sounding an alarm automatically and also indicate on a panel the
location of the fire.

Every room that is used as a sleeping accommodation for drill crew

shall be equipped with a smoke detector and alarm.

11.2.5.1 Smoking
Smoking shall be permitted only within safe and designated
areas. Contractor shall ensure that proper signs and notices
prohibiting smoking are posted at all designated no smoking
areas at a drill site.

11.2.5.2 Engines Exhaust

Any fixed internal combustion engine that is located within
25 metres of a drilling well onshore shall have the exhaust
pipe of the engine in accordance to MEC 1 standard:

a) Equipped with a spark arrester;
b) Insulated or sufficiently cooled to prevent ignition of
combustible gases; and
c) Directed away from the wellbore or other sources of
combustible gases and terminated at least 6 metres
from the vertical centre line of the wellbore

Only diesel driven engine are allowed for onshore drilling

operation.

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11.2.5.3 Engines Intake
Any fixed internal combustion engine that is located within
25 metres of a drilling well onshore shall be equipped with:

a) Air intake shut-off valve that can be activated by a
remote control device that is easily accessible from the
Driller’s location; and
b) A system of injecting inert gas into the cylinders or an
air duct that conveys air to the engine from a source
that is located 25 metres from the well

11.2.6 Restoration of Drill Site

All refuse shall be cleared from the drill site on removal of the rig
from the well and the area shall be restored to its original condition.
Both the rathole and the mousehole shall be filled up and where
applicable with cement plug at the surface. The cellar should be
backfilled and restore the site as per original with markings of the
well.

11.3 Well Design and Drilling Operations

11.3.1 Reference for Well Depth

The measurement of any depth in a well during drilling or on the
abandonment of the well shall be the rotary table of the drilling rig.
For a well onshore, this height shall be measured from the elevation
(reference mean sea level) of the natural ground surface prior to
spud-in and it shall be from the elevation of the casing head flange
after installation of the conductor or the surface casing.

11.3.2 BOP System

The diverter system shall provide as a minimum, an annular preventer
with one 10 inch diameter diverter line equipped with a remote
controlled full opening valve near the well. The diverter line shall
extend to a flare pit located at least 50 metres away from the well.
The diverter system shall be operated by an automatic hydraulic
accumulator system which could provide without recharging, fluid of
sufficient volume and pressure to effect full closure of the annular
preventer and open the remote controlled line valve(s).

For all other BOP requirements, refer to Section 5.4.4.

11.3.3 Pressure and Function Test

For all pressure and function testing, refer to Section 5.4.6.

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11.3.4 Casing Programme
Supplementary to the casing and cementing requirements in the
foregoing Section 5.2 and in lieu of drive pipe and/or conductor
casing, the casing to be installed in an onshore well is:

11.3.4.1 Stove Pipe

Stove pipe shall be set in a competent bed to ensure mud
returns to the shaker whilst drilling for the next casing.
Normally, such setting depth will be 30 metres or more
below the natural ground level.

However, the presence of abnormally strong formations
may permit the setting of this casing at a depth shallower
than that required.

If this portion of the hole is drilled, it shall be cemented with
a quantity of cement sufficient to fill the calculated space
back to the bottom of the cellar.

11.4 Plug and Abandonment of Well

All onshore wells shall be plugged and cemented for abandonment as
required under Section 9.4. In addition, the Contractor shall ensure that:

a) All casing shall be cut at least 1 metre below the natural ground level
with a minimum of 10 metres of cement plug placed in the innermost
casing; and
b) A steel plate of at least 7 millimetres thick shall be welded over the top of
the largest casing in a manner that completely closes the well bore and
the annulus between all strings of casing exposed at the cut point

In the event of a nuclear source equipment is left in hole after several

unsuccessful attempts has been made, the abandoned well shall be marked
with an appropriate signage. Refer to Section 9.4.1.

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Section 12: Onshore Completion, Workover and Intervention Operations

Contractor shall design completion for onshore wells to withstand all expected loads
throughout different phases of well life. Completion operations shall be executed
in a safe and efficient manner. Well completion shall be done under an approved
written work programme only and all well completion activities shall be recorded
and made available to PETRONAS.

12.1 General
Supplementary to the foregoing Section 7 and Section 10, Contractor shall
comply with the following procedures in conducting onshore completion
and workover activities.

12.2 Subsurface Safety Valve

Any onshore well that is located within a 5 kilometre radius of a village, town
or city and that is not on pump and is capable of producing gas in excess of
5 million cubic feet a day shall be installed with a SCSSV. This valve shall be
installed in the tubing at least 30 metres below the ground level and such
well will have a sealed casing-tubing annulus.

12.3 Well Stimulation
In onshore wells where stimulation treatments employing maximum
pressures in excess of 75% of the minimum internal yield pressure of the
production casing shall be carried out only through the tubing and below a
packer set as near to the production formation(s) as practicable.

12.4 Disposal of Produced Fluids

Oilfield brines or other mineralised produced waters shall not be stored or
evaporated using salt water disposal pits.

Impervious collecting pits constructed of clay or other suitable impermeable

materials may be used for produced fluid disposal provided approval has
been obtained from PETRONAS. Such pits in use when abandoned shall be
backfilled and compacted.

Discharge of oilfield brines and other mineralised water into a surface

drainage water course whether it be a dry of flowing creek or a stream or a
river is prohibited unless approved by relevant authorities.

Such fluid may be disposed of upon approval by PETRONAS by injecting into

porous formations or zones that by nature contain connate water
compatible with the injecting fluid and that such zones are separated by
impermeable beds that shall prevent polluting the fresh water sands.

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For any waste/hazardous material generated during operations shall be
disposed in accordance to Section 13 Waste Material Handling and Disposal
with reference to Volume 3, Section 1: Health, Safety and Environment.

12.5 Onshore Wellhead Valve Assembly

All completed onshore wells which are capable of natural flow shall be
equipped with wellhead valve assembly having fittings and connections with
a rated working pressure greater than the maximum anticipated shut-in
surface pressure of the well. Wells with surface pressures in excess of
1500 psi shall have two master valves.

When a well located near to the normal high water mark of a body of water
or a stream or a river is in such a situation that the oil spill or leak may reach
the water, Contractor shall ensure that when a well is not on pump, the
wellhead valve assembly shall contain a SSV that shall automatically shut-off
an uncontrolled flow of oil from the well in the event of a wellhead failure
or leak. Such valve shall be the second valve from bottom to top
arrangement.

12.6 Wells on Pump

Wells which are incapable of natural flow and require pumping by sucker
rods or submersible downhole pumps or any other mechanical lifting
methods to produce may be exempted from requirements under Sections
10.2.4, 10.3, 10.8.4 and 10.8.5.

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Section 13: Waste Material Handling and Disposal

All waste materials from drilling and related operations shall be handled and
disposed in a manner that does not create a hazard to safety, health and
environment and is in compliance with the applicable Malaysian laws.

13.1 Material Handling

13.1.1 Bulk Material

All material handled in bulk such as barite, bentonite and cement
shall be stored in properly designed containers to minimise
contamination of the material from chemical and high humidity.
Each container shall be properly labelled. Extreme care shall be
utilised during loading, transporting and unloading bulk material to
minimise contamination. All handling equipment and tanks shall be
inspected according to the stated frequency on the preventive
maintenance system of the rig for foreign substances that may cause
contamination. Air dryers and condensation tanks shall also be
inspected according to the stated frequency on the preventive
maintenance system of the rig to assure that they are functioning
properly.

13.1.2 Other Material
Drilling fluid additives, not handled in bulk, shall be packaged in
properly labelled containers and pallets and shall be waterproof to
minimise deterioration and other precautions taken where damage
or loss could create a hazard to personnel or the environment.

Liquid fuel and oil shall be transported, transferred and stored in
closed systems. Liquid fuel stored at or above deck level or ground
surface shall be contained in closed and properly vented containers
located at least 25 metres from the well for land drilling and 5 metres
from the well for offshore drilling. For well unloading operations
during workover, flammable liquids including condensate and crude
oil may be placed in an open vessel as specified under Section 10.3.

Every precaution shall be taken to avoid spillage while transferring
fuel from supply vessel to the drilling site. After discharging fuel, the
pumps shall be shut-off, the pressure released, the transfer hoses
drained into the supply vessel and both hose ends securely plugged.

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13.2 Disposal of Material
Wastes generated during drilling operations including used oil based mud
including synthetic oil based mud and chemical residues/wastes resulting
from drilling shall be managed in an environmentally safe and prudent
manner in accordance with statutory and acceptable industrial practices.
Wastes are not allowed to be discharged into the sea and shall be brought to
shore for further handling if they cannot be properly processed and disposed
at the rig site.

Storage and disposal of these wastes including information on waste
generated, stored, treated or disposed at the rig and wastes
transported to shore base shall be recorded, tracked and in compliance with
the requirements of the Environmental Quality (Scheduled Wastes)
Regulations, 2005 or its amendment.

Disposal of materials, wastes and equipment that are contaminated with
Technologically Enhanced Naturally Occurring Radioactive Material
(TENORM), shall comply with all applicable laws and regulations in Malaysia,
but not limited to the followings:

a) Atomic Energy Licensing Act, 1984;
b) Radiation Protection (Licensing) Regulations, 1986;
c) Radiation Protection (Basic Safety Standards) Regulations, 1988;
d) Radiation Protection (Transport) Regulations, 1989; and
e) LEM/TEK/30 SEM.2 , 1996- Guidelines on Radiological Monitoring for Oil
and Gas Facilities Operators Associated with TENORM

Any TENORM disposal proposal shall be submitted to the Malaysian AELB for
approval before license is applied and in general, a Radiological Impact
Assessment (RIA) study shall be performed first. Copy of RIA shall be made
available and submitted to PETRONAS for reference.

13.2.1 Drilling Fluid

Only water based mud/fluids and synthetic based fluids of low
toxicity is permitted for use of drilling. The use of low toxicity oil
based mud and synthetic based mud shall be minimised and used
only when necessary (based on geological formation and/or
operational requirement).

Spent oil/synthetic based mud and other remnants toxic materials are
not allowed to be dumped into the sea. These materials shall be
recovered, inventoried, properly labelled, contained and transported
safely to shore or to a safe area designated for disposal in

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accordance to applicable Malaysian laws.

Cuttings drilled with low toxicity oil based mud and/or synthetic
based mud shall be properly washed and treated before disposing of
into the sea in accordance with the PETRONAS E&P Minimum
Environmental Specification (MES).

13.2.2 Solid Waste
Contractor shall not, unless licensed by Department of Environment
(DOE), burn or incinerate solid combustible waste on any premises
from such operation. All wastes, residues or ashes produced shall be
collected, recovered and transported back to shore for proper
disposal in accordance to the approval from the local authorities
or to a safe area designated for disposal in accordance to applicable
Malaysian laws.

Solid non-combustible waste shall be divided into three principle

types: domestic waste, industrial waste and schedule waste. It shall be
transported to shore in appropriate containers for safe disposal
at a site approved by DOE and/or the state or local authorities.

The disposal of solid waste (besides drilling disposal materials) into

the sea is prohibited. Solid wastes shall be disposed at a site approved
by the local authorities.

13.2.3 Liquid Waste

Contractor shall not, unless licensed by DOE, discharge or spill any
oil, mixture containing oil or environmentally hazardous substances,
pollutants or fluid waste into the Malaysian waters. Discharge of oil
and any liquid containing oil shall be in accordance with all
applicable Malaysian laws.

Oil and gas produced while formation flow testing shall be properly
stored in suitable containers and either transferred to shore or flared
in a proper manner using an appropriate burner.

For offshore operations, waste engine lube oil, fuel oil, lubricants and
other fluid mixtures containing oil shall be collected in a closed drain
system labelled and transferred to shore for safe disposal or
recycling. If production facilities are available at the worksite, for
example when drilling in an existing field, arrangement with the
facility operator shall be sought to dispose of the fluid waste into the
effluent treatment sump.

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Excess acids shall be collected and stored in suitable containers for
transportation to shore to be disposed of in a proper manner.

Surface discharge shall only be allowed with approval from local
authorities and pre-treatment for example, neutralisation is essential
prior to the disposal.

13.2.4 Sewage
Contractor shall not discharge or cause or permit the discharge of
any refuse, garbage into the Malaysian waters. Sanitary and galley
waste shall be disposed of in accordance with all applicable
Malaysian laws.

13.3 Pollution Prevention

13.3.1 Offshore Pollution

Any oil spill from drilling operations shall be recorded and reported to
PETRONAS immediately noting size, type of pollutants, location and
weather conditions. The detail incident notification procedures
are stipulated in Volume 3, Section 2: Emergency Communication
Procedures.

Appropriate action shall be taken immediately by the responsible
party and the costs for such action shall be at its expense.

Contractor involved in drilling, extracting, producing, processing,
transporting and marketing of oil and gas in offshore waters of
Malaysia shall individually or jointly with two or more operators,
maintain, organise and coordinate oil spill contingency plans which
encompass all its offshore facilities.

13.3.2 Blowout Contingency Plan
A BOCP shall be submitted to PETRONAS as an attachment to the
NOOP for deepwater and HPHT wells meeting the description in the
Definition Section items 5 and 14.

For deepwater wells, the BOCP shall include a subsea well

containment response plan including details on:

a) Access to well capping system equipment and scope of

services;
b) Storing location for ready-to-deploy maintained equipment and
estimated deployment duration to the proposed well site;

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c) Well capping system technical specification;
d) Deployment strategies, containment system and logistical
support (aircraft, vessel, ROV and etc.); and
e) Personnel proficiency and preparedness

The BOCP for deepwater and HPHT wells shall include a plan for
suitably rated relief well which shall contain:

a) preliminary well design and well location identification;

b) identification of technically acceptable drilling units operating
within the region;
c) identification of tangibles and back up equipment; and
d) overview of drilling unit and equipment mobilisation and
relevant logistical support

13.3.3 Onshore Pollution

All fluids generated during drilling, rainfall and clean-up operations
should be discharged in a proper and safe manner. The drains should
be positioned and constructed such that they do not pose a tripping
hazard for personnel or equipment and prevent contamination of the
environment with hydrocarbons and drilling fluids.

The drainage system may consist of the following elements:

a) impermeable drains;
b) oil and mud traps;
c) waste pit;
d) holding basin (optional); and
e) septic tank and soak away

An impermeable open drain channel should be installed along the

periphery of the location. This drain should be equipped with mud
and oil traps which discharge either into the surrounding areas or
into a holding basin. This depends on the contaminant and possible
effects of pollution on the surrounding habitat.

The waste pit should be located next to the shale shaker of the rig to
prevent double handling of the cuttings. They are sized to contain all
drilling cuttings and superfluous mud that will be produced during
the drilling operation. Waste water collected in a drain surrounding
the rig substructure, as well as waste water produced around mud
pumps, mixing tanks and chemical stores, shall also be discharged to
the mud and cuttings (waste) pits.

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In tropical areas, with very high groundwater levels and high
precipitation, it is not always possible to contain all contaminated
liquids. In these conditions, excess water should be discharged into
the surroundings or into a holding basin for further retention or
treatment after passing a mud and oil retaining trap. The decision to
either discharge or to retain in a holding basin will depend on the
sensitivity of the environment.

The waste pits and holding basin shall be impermeable. Overflowing

of waste pits and holding basins shall be prevented.

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Abbreviations

TERM IN FULL
AELB Atomic Energy Licensing Board
AFE Authorisation for Expenditure
ALARP As Low As Reasonably Practicable
API American Petroleum Institute
BHA Bottom-Hole Assembly
BHT Bottom-Hole Temperature
BOCP Blowout Contingency Plan
BOP Blowout Preventer
BPV Back Pressure Valve
CIBHP Closed-In Bottom Hole Pressure
CITHP Closed-In Tubing Head Pressure
DDR Daily Drilling Report
DOE Department of Environment
DP Dynamic Positioning
DWR Daily Workover Report
ECD Equivalent Circulating Density
EDS Emergency Disconnect System
EIA Environmental Impact Assessment
ERP Emergency Response Plan
ESD Emergency Shutdown
FBHP Flowing Bottom Hole Pressure
FDCR Final Drilling and Completion Report
FDP Field Development Plan
FMEA Failure Mode and Effect Analysis
FTHP Flowing Tubing Head Pressure
FWR Final Workover Report
H2S Hydrogen Sulphide
HAZOP Hazard and Operability Analysis
HP High Pressure
HPHT High Pressure High Temperature

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TERM IN FULL
HSE Health, Safety and Environment
IMCA International Marine Contractors Association
IMO International Maritime Organization
ISO International Organization for Standardization
LMRP Lower Marine Riser Package
MD Measured Depth
MEDEVAC Medical Evacuation
MES Minimum Environmental Specification
MOC Management Of Change
MOSTI Ministry of Science, Technology and Innovation
MPD Managed Pressure Drilling
MSDS Material Safety Data Sheet
NACE National Association of Corrosion Engineers
NOOP Notice of Operations
NOWOP Notice of Workover Operations
NPT Non-Productive Time
OEM Original Equipment Manufacturer
OOC Oil on Cuttings
P&A Plug and Abandonment
PETRONAS Petroliam Nasional Berhad
PGBOOM PETRONAS Guidelines for Barges Operating Offshore Malaysia
POB Personnel on Board
POM Petroleum Operations Management
ppm parts-per-million
PRD Petroleum Resource Development
PREX Petroleum Resource Exploration
PSC Production Sharing Contract
QA Quality Assurance
QC Quality Control
RIA Radiological Impact Assessment

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TERM IN FULL
RM Ringgit Malaysia
ROP Rate of Penetration
ROV Remotely Operated Vehicle
RP Recommended Practices
RSC Risk Service Contract
SBOP Surface Blowout Preventer
SCP Sustained Casing Pressure
SCSSV Surface Controlled Subsurface Safety Valve
SID Seabed Isolation Device
SIPROD Simultaneous Production and Drilling Operations
SSC Sulphide Stress Cracking
SSSV Subsurface Safety Valve
SSV Surface Safety Valve
TD Total Depth
TENORM Technologically Enhanced Naturally Occurring Radioactive
Material
TVD True Vertical Depth
USD United States Dollar
WOC Wait-On-Cement
WIMS Well Integrity Management System
WPB Work Programme & Budget

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Appendix 1

PMU Correspondence List

EXPLORATION STAGE

PLANNING EXECUTION

Well Proposal Operations Plug & Abandonment (P&A)

• Approval (PREX)
• Endorsement of Drilling
Proposal (POM)
G&G Issues & Overall Approval
• Approval (PREX)

Drilling Related Issues

NOOP as per • Endorsement (POM)
Proposal
• Info (PREX)
• Info (POM)

Daily Drilling Report (DDR) G&G Issues Drilling/Other Issues

• Mandatory to PREX & POM • Approval (PREX) • Approval (PREX)
• FDCR Mandatory to POM • Endorsement (POM)

Note:
1. DDR – DAILY DRILLING REPORT
2. G&G – GEOLOGY AND GEOPHYSICS
3. NOOP – NOTICE OF OPERATIONS
4. FDCR – FINAL DRILLING AND COMPLETION REPORT
5. POM – PETROLEUM OPERATIONS MANAGEMENT
6. PREX – PETROLEUM RESOURCE EXPLORATION
7. P&A – PLUG & ABANDONMENT

*Please note that all approval request and information need to be submitted to PSC
Exploration Management group.

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DEVELOPMENT STAGE

PLANNING EXECUTION

FDP Operations Plug & Abandonment (P&A)

• Approval (PRD) during Drilling
• Endorsement of Drilling
Proposal (POM)

G&G Issues & Overall Approval

• Approval (PRD)

Drilling Related Issues

Dev Proposal (not as NOOP per
per approved FDP, i.e. FDP • Endorsement (POM)
change reservoir target) • Info (PRD)
• Approval (PRD) • Info (POM)
• Info (POM)

Daily Drilling Report (DDR) Drilling/Other Issues G&G Issues

• Mandatory to POM & PRD • Approval (POM) • Approval (PRD)
• FDCR Mandatory to POM • Info (PRD) • Info (POM)

Note:
1. DDR – DAILY DRILLING REPORT
2. FDCR – FINAL DRILLING AND COMPLETION REPORT
3. FDP – FIELD DEVELOPMENT PLAN
4. G&G – GEOLOGY AND GEOPHYSICS
5. NOOP – NOTICE OF OPERATIONS
6. POM – PETROLEUM OPERATIONS MANAGEMENT
7. PRD – PETROLEUM RESOURCE DEVELOPMENT
8. P&A – PLUG & ABANDONMENT

*Please note that producing oil fields (revisit, infill, etc.) are under the Petroleum
Operations Management (POM) Department while oil & gas fields are under
Petroleum Resource Development (PRD) Department.

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PRODUCTION STAGE DECOMMISSIONING STAGE

Plug & Abandon (P&A) Well Abandonment

Existing Well • Approval (POM)
• Approval (POM) • Info (PRD)
• Info (PRD)

Note:
1. DDR – DAILY DRILLING REPORT
2. G&G – GEOLOGIST AND GEOPHYSIST
3. NOOP – NOTICE OF OPERATION
4. P&A – PLUG & ABANDON
5. POM – PETROLEUM OPERATIONS MANAGEMENT
6. PRD – PETROLEUM RESOURCE DEVELOPMENT
7. PREX – PETROLEUM RESOURCE EXPLORATION

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Acknowledgements

(in alphabetical order)

NAME COMPANY
Malik Faisal Abdullah PMU (Team Leader)
Adrian Chesters KPOC
Adrin Shafil Ahmad Nasir BHPB
Alistair Gauld Newfield
Astyo Budi Ardi PMU
Benjamin Choo Murphy
Christian Baranthol TOTAL
Daniel Miessner PCSB
Fauzi Abbas Hess
George Jarvis EMEPMI
Gregoire Chabrol TOTAL
Ivan Tan Boon Kiat Shell
Jim Kelly Petrofac
Keith Stewart Talisman
Khairul Annuar Nordin PMU
M Zaidan Khalid PCSB
Neil Armstrong EMEPMI
Neil Hudson PCSB
Pankaj Jain PCSB
Patrick Brenan PCSB
Rifhan Zarif M Razali PMU
Rizal Awang Newfield
Rosli Hamzah PCSB
Sofiah Sharbudeen PMU
Vince Tilley Murphy
Zuka Row Shell

PPGUA/3.0/042/2013 107