Document Number TSH-AR-00.

0005
Revision 5
Approval Date 12/Nov/2018
Effective Date 30/Nov/2018
Page 1 of 10

Pages
This document as well as the information or data contained herein are confidential and shall not be copied, recopied,
reproduced, transmitted, disclosed or distributed to others or otherwise used for any purpose without the express, prior and
written permission of Tenaris Connections B.V.. and/or Hydril Company . This document as well as the information or data
contained herein are the exclusive property of Tenaris, and are to be returned upon request therefore. All rights in proprietary
and novel features of the subject matter are expressly reserved by Tenaris. Recipient’s agreement to the foregoing is
indicated by acceptance of this document. Copyrighted 2018 as an unpublished work. ALL RIGHTS RESERVED.

Additional Customer Requirements -

ExxonMobil –Threading Agreement

Chuck Stobbe - EMDC D&S Quality Team 22-Jan-2019

Stobbe, Charles Digitally signed by Stobbe,
Charles W. (cwstobb)

W. (cwstobb) Date: 2019.01.22 14:28:39

-06'00'

PREPARED REVISED APPROVED

FLORES C. Alberto ENDERLE Douglas

TAMSAVER POMBO Diego TENARIS, TOBLER Federico TENARIS Ray TENARIS

This document has been signed electronically. Important Notice (for document printed from Intranet)
IDM Reviewer:POMBO Diego TENARIS This printed document might already be invalid unless the copy shows evidence of being controlled.
If the copy is not controlled and you are not systematically alerted of changes, please check the
IDM Code: PRD21734 latest applicable version posted in IntraTenaris before implementation .
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1. REVISION HISTORY

Effective Date Rev. # Change Referenced Sections Prepared By: Reviewed by: Approved By:

17 Dec 2012 01 New Document New Document Name:D

Name: G. Codesido Name: F. Tobler Enderle

5.2,5.6, 8.1.2 to
Name: M. Name:D
15-Feb-2013 02 Amended 8.1.14.4,8.3.8 & Name: F. Tobler
Soptick Enderle
8.3.9
Sections 5.3,
8.1.1, 8.1.3, Name:C.
15-Sep-2014 03 Amended Name: A. Flores
Balderas
Name:F. Tobler
8.1.4.6, 8.1.11,
8.1.12.1, 8.1.12.4.
2.3, 2.4, 4.2-4.6,
F. Tobler,
24/Dec/2017 04 Amended 5.7, 8.1, A Flores
D. Pombo
D. Enderle
8.2,8.3,8.4,9.1
F. Tobler,
30/Nov/2018 05 Identification See Note in 8.3.5.1 A Flores
D. Pombo
D. Enderle

Document Change
Use as is

Scrap
Rework

Disposition of
Affected Material
Rev. 05

Raw Material X
In Process X
Completed X
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2 PURPOSE

2.1 This document defines the additional requirements required by ExxonMobil in the
manufacture of TenarisHydril Premium Connections. These requirements supplement the
standard TenarisHydril procedures, and are aplicable for all the TenarisHydril approved
connections.

2.2 The requirements of this document are invoked when TSH-AR-00.0005 is specified on the
customer purchase order or the ExxonMobil work order. See Annex 9 for the document
structure applicable with these additional requirements.

2.3 Section 8.1 addresses general requirements for all ExxonMobil Orders (Are aplicable for all
Connection Target Performance, CTP1, CTP2 & CTP3 Levels).

2.4 Section 8.2 addresses additional requirements for all ExxonMobil Orders for Standard
Connection Target Performance (CTP2 & CTP3) level.

2.5 Section 8.3 addresses additional requirements for all ExxonMobil Orders for Critical
Connection Target Performance (CTP-3) level.

3 PERSONS AFFECTED
3.1 This document is applicable to TenarisHydril Licensees authorized to supply TenarisHydril
Threads and subcontractors utilized for special processes.

4 REFERENCES
4.1 All procedure/documents within this document are intended to be in their latest edition unless
otherwise stated.
4.2 ExxonMobil Development Quality Procedure (EMDQP)
4.3 TSH-ML-00.0007 – Masterlist of applicable TenarisHydril documents for ExxonMobil CTP3,
CTP2 & CTP1 orders.
4.4 ExxonMobil EMLRFD “Off the Ground” Threading Requirements EMTMP-PUR-203.
4.5 ExxonMobil EMLRFD “Standard” Threading Requirements EMTMP-PUR-204.
4.6 ExxonMobil EMLRFD “Critical” Threading Requirements EMTMP-PUR-205.

5 DEFINITIONS AND ABBREVIATIONS

5.1 Definitions and abbreviations shall be as defined in TenarisHydril document TSH-GP-

00.0001.

5.2 CTP – Connection Target Performance levels define the performance envelopes of the
proprietary connections. The CTP level (CTP1, CTP2, or CTP3) describes the inspection
requirements and quality attributes required to achieve desired perfomance.

5.3 EMDC DQT – ExxonMobil Development Company Drilling Quality Team.

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5.4 EMR – ExxonMobil Representative is an ExxonMobil employee or qualified third party

inspector who witnesses production, inspection, and other product realization activities on
behalf of ExxonMobil.

5.5 EMLRFD – ExxonMobil Load Resistance Factor Design.

5.6 LTR – The Licensor Technical Representative is the TenarisHydril representative required to
be present / available, as specified, at job start, during production, during product inspection
or other activities.

5.7 IR/VIR – TenarisHydril inspection report used for recording dimensional information from the
thread inspection. Can be paper or electronic.

6 RESPONSIBILITIES

6.1 Responsibilities are defined in TenarisHydril document TSH-GP-00.0002.

7 PERSONNEL QUALIFICATION

7.1 Personnel qualification is defined in TenarisHydril document TSH-GP-00.0003.

8 PROCEDURES

8.1 General Requirements (Applicable for CTP1 & CTP2 & CTP3)

8.1.1 ExxonMobil Development Company Drilling Quality Team shall express their
interest to Tenaris Manufacturing Services for a facility qualification to support a
specific project or region. Tenaris Manufacturing Services will coordinate with
EMDC DQT to define the facility/facilities with the capabilities to meet the
required qualification and reach a consensus on the facility to qualify.

8.1.2 Threading facilities selected for qualification shall be audited by TenarisHydril for
ability to comply with the requirements of this AR and be recommended for
qualification per ExxonMobil EMDQP-EVL-204, Qualification of Proprietary
Threading Facilities.

8.1.3 Qualifications are conducted by EMDC DQT on a connection family basis.

Qualification utilizing a Wedge product for the Product Snapshot will also qualify
the facility for all non-Wedge connections. Qualification with a non-Wedge
product will not qualify the facility for Wedge products. EMDC DQT considers
connection families as follows:

 Wedge (500 & 600 Series)

 Non-Wedge (all other TSH Connections)

8.1.4 ExxonMobil Approved Facilities will be identified as follows :

8.1.4.1 Category 1 facility – A facility required to have an LTR present during

production and inspection of product
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8.1.4.2 Category 2 facility – A facility required to have an LTR present during

product inspection

8.1.4.3 Category 3 facility –LTR not required to be present unless requested

by ExxonMobil

8.1.4.4 ExxonMobil will advise Tenaris of the Approval levels for all evaluated
facilities.

8.1.4.5 ExxonMobil and Tenaris reserve the right to conduct future audits to
confirm compliance with ExxonMobil quality requirements and this AR.

8.1.4.6 After completion of the required number of orders as defined in

ExxonMobil EMDQP-EVL-204, the facility may request to Tenaris a
change in Category level. Tenaris will review and forward with
recommendation to EMDC DQT for final determination.

8.1.5 When extraordinary circumstances require supply of product from an

unevaluated or unqualified facility the requirements captured in EMDQP-INS-
215, Inspection and Surveillance Requirements for non-Qualified Facilities, shall
apply.

8.1.6 ExxonMobil will identify the EMLRFD Proprietary requirement applicable to each
purchase order.
8.1.6.1 Off the Ground (CTP1) – Standard processing
8.1.6.2 Standard (CTP2) – Standard processing with additional requirements
identified in section 8.2
8.1.6.3 Critical (CTP3) – Order to be processed to a product specific AR
issued by TenarisHydril and approved in writing by ExxonMobil.

8.1.7 Based on the CTP requirements and the category level of the threading facility
ExxonMobil Representatives (EMR) may be required to witness, monitor, review,
or verify any aspect of the manufacturing process. The level of EMR
involvement is determined at the discretion of ExxonMobil. Based on the
required surveillance level, adequate notice of production shall be provided to the
EMR.

8.1.7.1 Hold Point: The ExxonMobil Representative (EMR) is given 48 hours’

notice of the pending operation. The EMR shall be present during the
activity, and the activity shall not be performed without his presence.
Facility shall have a documented waiver from ExxonMobil to proceed
without the EMR present.

8.1.7.2 Witness: The ExxonMobil Representative (EMR) is given 48 hours’

notice of the pending operations. The EMR shall be present during the
described operation(s). If the EMR fails to attend the announced
activity, the facility has the right to start such activity without the
customer representative present and the activity can be validated to
the customer through document review.

8.1.7.3 Monitor: The ExxonMobil Representative (EMR) is given 48 hours’

notice of the pending operations. The required level of participation of
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the EMR is determined by ExxonMobil and reported to the EMR and

facility.

8.1.7.4 Review: The ExxonMobil Representative (EMR) is notified of material

schedule and the availability of pertinent records. The EMR shall
review objective evidence of compliance to the requirements prior to
the material being shipped.

8.1.7.5 Verify: Facility and/or customer to ensure process activity and/or

records are met and available.

8.1.8 If the EMR is an ExxonMobil Employee, they are not required to sign the
TenarisHydril confidentiality agreement, and are authorized to review all the
referenced procedures and documents. ExxonMobil Representatives that are
contract personnel are required to sign the TenarisHydril confidentiality
agreement, but are authorized to review the applicable documents for ensuring
themselves the requirements are being met. All requests for copies of
TenarisHydril documents or forms shall be submitted to Tenaris Manufacturing
Services for approval.

8.1.9 Deburring of the entire thread area shall be required for all ExxonMobil orders,
regardless of material. Verification of deburring shall be as stated in TSH-IP-
00.0031 Visual Inspection procedure.

8.1.10 Where required Kendex shall be liberally applied to the exposed connections
including threads, seals, shoulders, and any ID machined surfaces. Where
Kendex is not available, the suggested substitute shall be approved by
ExxonMobil prior to use. Use of Kendex while processing TenarisHydril
connections is not required even if the process is delayed for more than 24
hours, a corrosion protection oil and close end thread protector might be used for
up to 7 days, then Kendex is required. Use of Kendex on parts to be coated with
the Dopeless® Coating is not allowed,

8.1.11 Protectors – Only ExxonMobil approved, closed end, non-liftable (CENL),

protectors shall be used unless otherwise specified by ExxonMobil.

8.1.12 Waivers -- Any request for waivers or concessions for non-conforming product
shall be documented to a TenarisHydril Deviation Request (DR). The DR shall
be processed as follows:

8.1.12.1 Submit the DR to Tenaris Manufacturing Services thru

Tenaris Licensee Network (TLN).

8.1.12.2 Tenaris Manufacturing Services shall ensure the appropriate technical

review is performed and the DR dispositioned as approved or rejected.
Once completed the signed DR shall be returned to the Licensee.

8.1.12.3 If the DR is rejected by Tenaris the licensee shall take the action
documented on the DR. If the DR is approved by Tenaris the EMR is
informed of the approved DR and acknowledges by initialing the DR.
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8.1.12.4 Once the Tenaris approved DR is initialed by the EMR, the Licensee
shall submit to EMDC DQT for final disposition.

8.1.12.5 Materials subject of a Deviation Request shall be segregated until such

disposition is received from ExxonMobil and Tenaris.

8.1.13 Certificate of Conformance -- A Certificate of Conformance shall be created by

the Licensee for each ExxonMobil order stating that the order was produced in
accordance with the standard procedures and this AR document.

8.1.14 Facilities with a Category 1, 2 or 3 status shall meet the following Training and
Testing Requirements.

8.1.14.1 Each person inspecting Tenaris Hydril products shall have a minimum
of 90 days practical experience in gaging of connections.
8.1.14.2 Each Licensee shall document training of machinists and inspectors
associated with the manufacture of Tenaris Hydril products. This
training shall cover each of the types of gages used to inspect the
connections, a review and understanding of the Procedures Manual,
and any specific manufacturing requirements.

8.1.14.3 Each Licensee shall provide documented evidence that each inspector
or machinist working with Tenaris Hydril products has demonstrated
proficiency in handling and using the gages associated with the
inspection of these products.

8.1.14.4 Each Licensee shall ensure that personnel manufacturing or inspecting

Tenaris Hydril products have sufficient visual acuity to properly perform
this function.

8.2 Specific Requirements for Inspection Level CTP2 & CTP3 Requirements.
8.2.1 Surface treatment is to be the same as used on the connections during testing
for ExxonMobil. This requirement, if different from standard processing, shall be
communicated to the Licensee.

8.2.2 Thread Compound – Best O Life 72733 and Shell HP API Modified Thread
Compound Type 3 are acceptable compounds for all TenarisHydril products.
Alternatives shall be approved by ExxonMobil. The amount of Thread
Compound used for Make-up shall conform to the requirements of the applicable
TenarisHydril Connection Procedure (CP).

8.2.3 Handling -- All materials, Carbon and CRA, shall be handled in such a manner as
to prevent "Cold Working" of the material. Stripping and packaging shall be
constructed in such a way as to prevent metal to metal contact between
accessory parts. When transporting pipe, each layer shall be stripped with
adequate wood stripping to facilitate ease of loading and unloading.

8.3 Specific Requirements for Inspection Level CTP 3 (Critical) requirements

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8.3.1 All orders with CTP3 requirements shall be manufactured using the product
specific AR (Additional Requirements) and inspection requirements defined on
the IR\VIR identified in TSH-ML-00.0007. CTP2 requirements shall also apply to
CTP3 orders.

8.3.1.1 The product specific AR shall define the following requirements:

8.3.1.1.1 Manufacturing steps and applicable procedures

8.3.1.1.2 Thread Insert inspection requirements
8.3.1.1.3 Proprietary gage and setting standard calibration
requirements
8.3.1.1.4 Additional thread feature inspection requirements
8.3.1.1.5 Special post threading surface treatment process
8.3.1.1.6 Additional Inspection Procedures (IP’s) or Additional
Requirements procedures (AR’s) will be generated as needed
and referenced in the product specific AR.
8.3.2 Inspector Qualification -- Licensee inspectors working on ExxonMobil CTP 3
orders shall be qualified by training and experience. The Licensee shall maintain
adequate training records to show that the inspector has been trained in the use
of the gages used for the inspection, the requirements of the connections and
this AR document and applicable product specific AR’s.

8.3.3 Receiving Inspection – Accessory parts manufactured by others and submitted

to the Licensee for threading shall be inspected to ensure compliance to
TenarisHydril Blanking dimensions. For pipe manufactured by suppliers other
than Tenaris, a 10% sample inspection shall be performed for ovality and hooked
ends on new full length pipe submitted for threading. Ovality shall not exceed
0.5% of the nominal pipe OD, (Ovality is defined as OD max-OD min). Hooked
ends shall be checked with a saddle gage at a length of 1 inch maximum from
the end of the part, and the maximum allowable Total Indicator Runnout is .075”.
Saddle gage configuration to be as follows: a) minimum distance from indicator
to first leg: 8”; b) minimum spacing between the legs 10”. For material not
meeting these requirements contact Tenaris for further instructions on how to
proceed.

8.3.4 Gage Calibration

8.3.4.1 Dial indicators, screw micrometers, digital and dial calipers, and digital
depth gages shall be calibrated at a frequency of not more than four (4)
months. Gages shall be identified in some fashion as to insure
calibration and refer back to a history of that gages calibration.
Gagemaker Mic Trac systems shall be calibrated annually as a
minimum.

8.3.4.2 Micrometers and gages such as MRP's, height gages, lead gages, etc.
shall be standardized against the appropriate standard at the beginning
of production, the end of production, and, at a minimum, once per hour
between the beginning and end of production.

8.3.5 Manufacturing Inspection

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8.3.5.1 Unique Identification -- Each individual connection shall be uniquely

identified for traceability through gaging, NDE, and buck on records.
Couplings shall be identified as specified in TSH-PP-00.0005. Each
end of an accessory component shall be uniquely identified for
traceability purposes.

NOTE: Couplings shall be stenciled/marked with heat number, mother

pipe number and coupling number.

8.3.5.2 Thread Element Inspection -- For ExxonMobil orders, all elements listed
on the Inspection Report shall be verified at a frequency of 100%.
Product specific Inspection Reports (IR/VIR) are listed in TSH-ML-
00.0007 and shall be used for CTP3 orders.

8.3.5.3 "In Chuck/Out of Chuck" Inspections -- For Accessory and Repair

threading, the first 10 connections of each order (Pin and Box) the
Thread and Seal Diameter and Ovality, both in and out of the chuck,
shall be documented on the Inspection Report. After the first 10
connections, only "Out of Chuck" dimensions are to be recorded on the
Inspection Report. For Mill production runs, both in and out of chuck
shall be reported for the First Article only. After a satisfactory First
Article, only "Out of Chuck" dimensions are to be recorded on the
Inspection Report. Where machine configuration or safety concerns
do not permit an “In Chuck” inspection, only the “Out of Chuck”
inspections are required.

8.3.6 Coupling blanks shall have a machined OD surface. As Rolled material cannot
be used for ExxonMobil couplings. The machined surface of the coupling OD
shall clean up a 100% of the circumference.

8.3.7 NDT Requirements All materials in category CTP 3 shall receive a post threading
NDT inspection in compliance with EMDQP-INS-212 or EMDQP-INS-213
requirements, using inspection companies able to comply with ExxonMobil
requirements and qualified per the Tenaris AVL. Presence of an LTR is not
required but LTR shall be available for interpretation. This inspection shall be
performed prior to any end finishing activities. CTP3 the product specific AR will
specify the acceptance procedure. For CTP 2, the product specific Connection
procedure will specify the NDT requirements.

8.3.8 Materials with Ferromagnetic characteristics shall be inspected by the wet

fluorescent magnetic particle inspection method per EMDQP-INS-212.

8.3.9 CRA materials that do not exhibit Ferromagnetic characteristics are to be

inspected by the fluorescent liquid Penetrant method per EMDQP-INS-213.

8.4 Dopeless® Coating for all CTP levels

8.4.1 TSH-AR-00.0002 defines the ExxonMobil requirements when processing products with
Dopeless®.
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9 ANNEX
9.1 ExxonMobil Threading Agreement Document Structure.

TSH-AR-00.0002 *

* Applicable only for Dopeless® Products