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ISSUE#2 | 2016

www.kcadeutag.com

Bringing Our Core Values to Life

Central Azeri

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365 days a year in all our activities worldwide. However, we each have a responsibility for our own safety. Where accidents do occur it is normally not because the procedure is wrong, but because an individual has chosen to take an alternative course of action without thinking through the implications of this, which can lead to unfortunate consequences.

At the heart of KCA Deutag are our six core values which underpin the KCA Deutag Way of working and our culture across the organisation. Whilst we have always said that we each have a responsibility to work in line with these core values, to date we have not provided our employees with clear guidance on what that means at a practical level.

I am therefore delighted to update you on our new behavioural framework. This will be communicated to everyone in the company by the end of next year and will help us to live and breathe our values every day by clarifying the behaviours and attitudes we each should demonstrate in carrying out our work, no matter what our role in the company is. I believe that the “how we do things” at KCA Deutag is as important as the “what we do” and, if we want to be seen as the best, we each have to behave in a way which shows the outside world that at KCA Deutag it’s not just what we do, but how we do it, that differentiates us.

Norrie McKayCEO

Over my thirty five years working in the oil industry I have come to understand just how important people are in achieving success for the business in which they operate. Every day every person in our organisation is the face of KCA Deutag and their actions will affect how people see the company and whether they want to work for us or do business with us.

I see everyone in KCA Deutag as an ambassador for our brand. When, for example, a client awards us a new contract it’s not just because they know we can do the work well, it’s also because they like the people they are dealing with and the way that we work. Similarly when a new employee joins the company, it’s not just because it’s a good job but also because he or she thinks it will be a great place to work and they’ll get on well with the people they will be working with. Therefore, how we each

behave in performing our roles defines us not just as individuals but as a company. It says to the outside world what type of company KCA Deutag is.

Our behaviour also has a critical role to play in ensuring that no one gets injured carrying out their duties. I absolutely believe that all our employees have the right to go home safely at the end of each day and that an incident and accident free environment is possible

“Our behaviour defines us not just as individuals but as a company. To be the best we have to show resolve, strength of character and behave in a way which shows the outside world that at KCA Deutag it’s not just what we do, but how we do it, that differentiates us.”

Message from the CEO

News Central Azeri achieves 13 years LTI Free The 28th of July saw the Central Azeri team achieve the fantastic milestone of working 13 years without sustaining an LTI, an achievement recognised by both KCA Deutag and client management teams in Azerbaijan.

Fraser Abernethy, Operations Manager said “It takes a huge team effort and a lot of dedication to reach such a milestone and congratulations to everyone involved, including the onshore support team, for their commitment to working the KCA Deutag way and attaining 13 LTI free years - Well done!”

KCA Deutag Sells Ben Rinnes Jack-Up Drilling UnitIn June of this year KCA Deutag sold its jack-up drilling unit, the Ben Rinnes. On announcing the disposal Norrie McKay, our CEO said:

“Whilst the sale of the Ben Rinnes is an important milestone for KCA Deutag as it is our last asset in our mobile offshore drilling fleet, we continue to maintain the competence and experience required to support our offshore drilling unit operations. This expertise is currently supporting the construction and start-up of two Category J jack-up rigs which will commence operations on the Norwegian Continental Shelf next year.”

T-46 wins significant geothermal contract in Germany In September KCA Deutag’s land division secured a new contract for Rig T-46 in Germany. The work is for up to six geothermal wells in the vicinity of Weilheim, Bavaria, approximately 50 km south west of Munich, where a major European electricity generator is planning a geothermal power plant of up to 26 Megawatts, which will supply enough electricity to power around 60,000 households. Ard Louis, Country Manager Europe said: “After tough and long negotiations we are extremely proud to be selected for the execution of this key development project for

geothermal energy in Europe. With a lot of good team work and in very difficult market conditions, we were able to win this important project on which the entire German geothermal energy industry is focusing.”

T-72 in Pakistan celebrates one year LTI FreeOn 15 September 2016, the T-72 completed one year without an LTI. We would like to congratulate the entire team on achieving this success and wish them a TRI free year ahead.

Drilling Superintendent Igor Milosevic said “I would like to congratulate the whole team on this achievement.”

Tool Pusher Greg Hutchison said “Through increased training we are continuously challenging our thinking to improve safety, and this is beginning to deliver results.”

HSE Advisor Sammar Abbas commented “I am very proud of this achievement and the continuous improvement in the HSE culture of our rig.”

Oman’s T-210 awarded one year contract extension In July KCA Deutag’s Oman operation announced that rig T-210 had been awarded a one year contract extension.

The extension was against a backdrop of a strong operational performance. At the time of the award the rig was 4 years recordable incident free and in the first quarter of this year was delighted to be selected as the client’s top performing rig for its HSE performance.

David Troost, Oman Country Manager said “The crew of the T-210 consistently shows total commitment to delivering the highest level of performance and I am delighted that this has been recognised by our client and rewarded with this contract extension. We are very much looking forward to moving forward and building on this very positive relationship.”

“I believe that the “how we do things” at KCA Deutag is as important as the “what we do.”

Contents02 - Message from the CEO

03 - News

04 - What is KCA Deutag’s Behavioural Framework?

05 - The importance of behaviour in

safety

06 - 5 minutes with Rig Manager, Peter Stephen

07 - Joachim Ostermeier’s journey

with KCA Deutag

08 - Why maintaining KCA Deutag’s integrity is a team effort

09 - The essentials of good leadership

10 - Delivering sustainable growth

12 - Designing the Mariner ICU

Clair Ridge Drilling Control and Data Acquisition System testing

13 - RDS supports planned shutdown of Gullfaks C T-47 demobilization project

14 - An excellent start to drilling for the T-203

15 - Moving DART®

16 - Bentec’s new BOP Closing Unit T-320 successfully spuds

17 - Bentec delivers Power Control Room for Siemens Jacqueline Kastner’s medal winning Dragon Boat Championships

18 - 10 years of the Tyumen Training Centre

19 - Using our HR Service Centres

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Rune Lorentzen, President of Offshore and RDS talks about why his new role as sponsor of KCA Deutag’s Behavioural Framework is so important

The importance of behaviour in safety

Earlier this year I was delighted to take on the role of Executive Team sponsor of KCA Deutag’s new Behavioural Framework. Having worked in operational roles all my life I have seen at first hand the impact of both good and bad behaviours on our operations, particularly where safety is concerned. I am also well aware that the majority of our clients believe that the behaviours of our people directly impact on our efforts to ensure that everyone goes home safely.

It was clear to me that whilst our people across the world have policies, standards and procedures which set out the technical aspects of their jobs, they have little guidance on how to go about their activities on a day to day basis.

I am very proud to sponsor the Behavioural Framework and am passionate about getting this right across the organisation. This framework is a crucial mechanism that helps to ensure that everyone in KCA Deutag understands how they are expected to behave in their day to day work, whatever their position, business unit, function or country.

By the end of next year, the framework will have been rolled out to every employee across the group. As part of the roll out a user guide will explain the behaviours and attitudes which will define how each individual is expected to approach their work. This compliments “what” we do as outlined in each of our job descriptions and supports the delivery of the group’s vision and culture as The KCA Deutag Way.

The behaviours are aligned to and structured around KCA Deutag’s six core values, namely:

Contributed by: Talent and Mobility

In 2014 staff from across KCA Deutag were involved in developing the KCA Deutag Behavioural Framework through various focus groups. One element of the feedback when we discussed our core values in those groups was that our employees wanted a framework that worked in conjunction with our values so that it was clear to everyone what living the values would look and feel like across our organisation.

Our new framework has been designed in-house, specifically for KCA Deutag and contains six behavioural attributes. It explains how we should behave towards each other and look after our customers and it also describes behaviours that are not helpful. If those unhelpful behaviours persist then it may hold KCA Deutag back from delivering a safe, effective and trouble-free operation.

The KCA Deutag Behavioural Framework is a really important part of unlocking all our potential. It will be used in our day to day work and in your regular one- to-one meetings with your manager.

What is KCA Deutag’s Behavioural Framework?By Pauline Weddell, Global Head of Talent and Mobility and Behavioural Framework Project Lead

The aims of the framework are:

The Behavioural framework has already started to be rolled out across Aberdeen, UK Operations, Canada, Oman, Growth Countries, Russia and Azerbaijan. The roll out will continue into 2017 when all employees will have the opportunity to attend an overview session which will

introduce them to the framework.The Behavioural Framework is closely connected to the Global Grading project which is being rolled out and further information on this initiative will be provided during information sessions.

Why do we need a behavioural framework?

I believe that by living to these important values, we will not only develop a culture which is the envy of our peers, we will also deliver safe, effective and trouble-free operations each and every day. This will help to set us apart from the competition, placing us in a stronger position to retain existing contracts and to win new work. I would ask you all to give the Behavioural Framework your full commitment and support, and in doing so help to make KCA Deutag a more successful and rewarding company to work for.

Health and Safetywe work with zero harm to people

Valuing All People we treat people fairly and with respect

Performance Improvement we are a learning company

Environmental Stewardshipwe respect and protect the environment

Performance Improvementwe conduct our business ethically and responsibly

Sustainable growthwe operate efficiently and invest wisely

Contributed by: Offshore

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I joined Deutag on 1st August 1977 and my first assignments were in the Netherlands as a Roustabout on the T10, a “diesel compound rig” located in Harkstede and the T27, a brand-new rig located in Emmer-Compascuum where I made Derrickman.

In July 1978 I transferred, this time to the North Sea on the Brent Alpha. My transfer to an offshore platform within such a short time was a fantastic experience.

In fact my career has been a great experience all round, although to begin with working with International colleagues was not easy due to the bottleneck of the English language. As a German native speaker, I quickly found out that to secure and sustain employment I needed to learn the English language fast. The only option I had was to attend an English course during my off time, so that I could get at least a basic knowledge. Somehow it worked out and the course paid off.

During my career the work itself and the experience I gained in using all the newest drilling equipment technology gave me a solid platform to continue in developing myself and, in 1980, the Company also sent me to the German Technical Drilling School in Celle for a year.

After that I went back to the Brent Field as an Assistant Driller. I was then promoted to Driller and worked on several Deutag Platforms including Bravo, Charlie and Dunlin.

In May 1983 I went to Thailand where I worked on the T48 as a Driller and Toolpusher till 1990. The oilfield was in Lankrabu and called the SIRIKIT field, after the Royal Princess.

In January 1991 I was promoted to Drilling Superintendent, based in the Bangkok office, due to the increase from two to three rigs. The different assignments there made this a great and busy time for me and I stayed in Thailand till 1995 when utilization decreased onshore and operators began to concentrate more on offshore due to its huge gas reservoirs.

In June 1995 I transferred to Algeria now as Operations Manager and I stayed there till May 2000. This was a great

time too, because of the excellent team spirit amongst my International and Algeria colleagues.

After that I went to Nigeria due to the “high management turnover” there, apparently because of the difficult working environment, which I found difficult to understand.

Anyway, the Management directives were clear. Nigeria needs a person like you to stop these “fluctuations” and build long term relationships with our clients.

I worked back to back as Acting MD from May 2000 till February 2007 and was then made MD partly because of my willingness to sign a residential contract!

At this point I then decided to extend our operational activities from the IOC’s to the Marginal Field Operators. I believe in spider activities (diversifying to reduce our reliance on one client). For example even if a spider loses one leg, it will still be able to move on. This means that our activities can increase even if our clients change their activities by moving away from onshore and focusing more on swamp and offshore operations.

This was a difficult time for me but over the following years we made changes and were able to increase our utilisation from 3 to 7 rigs plus one jack-up. Importantly Nigeria also became a recognised unit within our global activities with more than 600 employees, and in November 2009 I became Chairman of the Nigerian unit.

This success was only possible because of the great team spirit in Nigeria and the contribution made by every employee.

Finally, in 2015, it was agreed that my journey with KCA Deutag would gradually come to an end and I would retire. To me age is just a number and I’m more than grateful for my health, even I still smoke a cigar. It has been a fantastic career and I would like to thank the KCA Deutag Management Team for supporting me all these years and giving me the freedom to achieve my goals. I would also like to thank the team in Nigeria for their hard work and wish my successor Jackey Jipping good luck in ensuring its continued success.

Contributed by: Onshore

Joachim Ostermeier, Ex-Nigeria Country Manager, reflects on a career of almost 39 years

My long journey with KCA Deutag

Tell us about your role at KCA Deutag?I have been a Rig Manager for three years, initially looking after the Murchison Decommissioning Project and now managing four platforms in the UK North Sea from our office in Aberdeen. My main responsibilities are coordinating the crews, ensuring adherence to our safety procedures and management of the platforms’ day to day drilling activities and performance. Whilst I am based onshore it’s important to me to visit the rigs as often as possible to meet the teams and understand the challenges they are facing first hand.

How do you usually start your day?My day starts at 5:30am when I leave my house to start the journey into the CNR office in the centre of Aberdeen where we have the morning call with the rig. After tidying up any loose ends with my client I make my way up to the KCA Deutag office where the normal daily duties take over. This usually involves a number of meetings which take up most of my day.

What’s your favourite thing about your job?The different challenges that come up every day and finding the solutions to these. Meeting and working with people of different nationalities.

How did you get to where you are now?Hard work and being in the right place at the right time.

How do you like to relax outside work?Outside work I like to go out with my son on our Motorcross bikes racing round the local tracks when the weather is nice. I also live on a croft so there is always something to keep me occupied.

What did you want to be when you were growing up?At school I always was mechanical minded. I was continually taking motorbikes and car engines to bits and rebuilding them. So when I left school I started an apprenticeship at a local tractor services company where I lasted a couple of years before the offshore bug got the better of me.

What are you currently reading or watching on TV?Any motor sport programs but especially British Superbike racing.

Do you have any words of wisdom you’d like to share?You are too concerned with what was and what will be. Yesterday is history, tomorrow is mystery, Today is a gift, that’s why it’s called the present.

Interview by: Communications Team

Five minutes with UK North Sea Rig Manager, Peter Stephen

Having started in the drilling industry as a Maintenance Roustabout in 1988 on the Murchison platform in the North Sea, Peter moved up through the ranks with Bawden Drilling, Noble Drilling and Deutag Drilling to become a Driller in the Forties Field. In 2004 he joined KCA Deutag and since then has worked on various North Sea platforms, taking on the role of Rig Superintendent before moving into his current onshore position as a Rig Manager in 2013.

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teams on the front line are well prepared and feel supported to deal with situations which can sometimes be very difficult.

To help with this my other key priorities for 2017 are set out below:

To establish an Ethics & Compliance intranet site Ensure everyone understands our High Risk Third Party Policy Relaunch the whistleblowing hotline; and Introduce annual mandatory Anti-Bribery & Corruption training

I have already started some of this and have worked with various country managers to deliver a number of Ethics & Compliance workshops and training sessions. These courses are invaluable as they address the specific challenges facing our businesses locally so that all employees feel well prepared to maintain the highest standards of integrity.

As ever the only way we will address the challenges facing our business is to do this together and to continually build on the good behaviours we demonstrate, making sure that, as we do in areas such as Health and Safety, Ethics & Compliance is at the forefront of our thoughts every day. The ultimate aim is, as a team and as individuals, to be able to show the unbreakable link between our behaviours and successful operations

If anyone would like to discuss anything from an Ethics & Compliance perspective please do not hesitate to contact me and I will do everything I can to support you.

I look forward to seeing as many of you as I can over the coming months!

Ewan Currie

Contributed by: Ethics and Competence

Some 6 months into his role as Head of Ethics and Compliance, Ewan Currie, explains what our core value of business integrity means to him and why we each have a responsibility to behave with integrity for the success of the wider KCA Deutag team …

Why maintaining KCA Deutag’s integrity is a team effort

When I became Head of Ethics and Compliance six months ago, one of the first things I set about trying to understand was how practically we were demonstrating this in our working lives. It quickly became clear to me that business integrity can mean different things to different people and different places.

To me business integrity simply means being honest and fair in any of our dealings whether internally or externally to our business. It complements our other core values and, as KCA Deutag continues to work to meet the challenges it faces from the low oil price, we each as individuals have a responsibility to behave in accordance with those values. I believe that, if we each behave to the highest standards of integrity, we will differentiate ourselves from our peers, be successful in whatever we do and have a company we can be even more proud of. Alternatively, if one person does not behave in this way, it will affect the integrity of the whole team, not just that individual.

To continue to support everyone to behave with integrity we have reviewed our Ethics & Compliance standards, policies and procedures over recent years. These can be found on KOMS, and I would encourage you all to review them again to ensure you are clear on what to do in sometimes difficult circumstances, so that we each behave honestly and fairly at all times. Our policies cover the following areas:

Anti-bribery & corruption; Facilitation payments; Whistleblowing policy and hotline; Gifts & entertainment; and High risk third parties.

My focus going forward is to work with the business units and functions to continue to increase awareness and tackle the specific challenges facing our operations. It is crucial that our

“Our actions directly reflect to the outside world who we are and what we believe is acceptable.”

During Q1 2016 the KCA Deutag Canada team was made aware of the Essentials of Leadership framework through an online meeting with Pauline Weddell, Global Head of Talent and Mobility. The team immediately identified the potential of how the Leadership Framework training could help embed a strong leadership team prior to the Hebron Platform going operational.

KCA Deutag has long recognised that a huge investment is made in training and demonstrating the competence of a drill crew in operating and maintaining a cyber-base facility. All too frequently however there is little focus on the leadership capabilities of high level supervisors within a drill crew. Likewise with onshore support, how can we ensure managers and functional supervisors have strong leadership capabilities?

Hebron already benefits from a highly competent drilling team with the right technical experience and behaviours. However none of the senior team members had previously had any formal leadership training.

The aim of the program was therefore to help ensure that Hebron has the right people in the right roles at the right time with the right leadership qualities.

Pauline arrived in St. John’s, Newfoundland to conduct a planned 2.5 day training session in late September. Twelve delegates consisting of KCA Deutag Managers, Superintendents and Supervisors attended. The invitation was extended to our client ExxonMobil and their Drilling Supervisor, who attended both days, giving excellent post training feedback.

Contributed by: Canada Team

Led by David Fong, our team in Canada update on this very successful training programme

The essentials of good leadership

The course content was tailored to meet our requirements and the delivery was energetic with a good flow of two way communication. Key areas included:

Overall the feedback from all the attendees was excellent, and our client guest said:• Understanding the key differences between

leadership and management

• A greater understanding of the desired behaviours that leaders portray

• A review of a leader’s role and responsibilities in engaging and motivating their team

• Improved communication skills – verbal and non-verbal

• Overcoming obstacles – understanding those items that are within an individual’s control

• Positive techniques to deal with performance

“A great course overall to help develop Supervisors to have a consistent approach with behaviours, coaching and mentoring.”

Going forward, we intend to make the Leadership Essentials and Behavioral Framework part of what we do in Canada. We are fortunate to have a blank canvas on which to set out our plans for the future. Best in class leadership and behaviours, along with our dedication, will ensure our continued success.

“I thought the constant exercises and group work was very beneficial, particularly the leadership interview and coaching scenario.”

“From a client’s perspective, I would like to see this cascaded down to the crews. Perhaps a 1 day course for crews would suffice.”

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New build T-506 commences drilling

In September KCA Deutag’s Russian Land Drilling operation celebrated 14 years in the country, an event which is not only significant in terms of the number of years, but also the extensive work the team have done to embed the KCA Deutag brand into a country where the majority of drilling subcontractors are Russian.

Led by Regional Manager Olaf Bohne and headquartered in Tyumen, the “gates of Siberia”, the business has grown to be the largest in the group, with 16 land rigs drilling approximately 800,000 metres per annum. The business has a vey bright future.

Also located in Tyumen are the logistics centre which supports activities across the country and the Tyumen training centre which is now one of the top five well control training centres in Russia.

Delivering sustainable growthContributed by: Land, Russia

2000

25 HSE-related movies developed “in-house”68 Hazard Hunts per year342 JSA’s developed specially for Russian operationsMore than 280 Good Catches for 2015“Our incidents” booklet to remind all employees of lessons learned from previous incidentsDifferent safety campaigns in 2016 such as Zone Management, Pipe Colour Coding, 5 to keep alive, and Forklift Drivers Skills Assessment

Focus on Safety Performance

Our Team

The largest country in the KCA Deutag onshore business A total workforce of 1,449, servicing 16 rigs 1,400 local citizens 49 expatriates97% nationalizationAverage age of local personnel - 36 years

What makes KCA Deutag Russia a Performance Leader?

More than 588 wells drilled since operations began in 2006 (Uvat region, Western Siberia)Average drilling speed of 1,000m in 2.6 days (T-502)139 wells drilled under CDS contract provisions since 2012Record for ROP in horizontal section, 43.4 m/h Most meters drilled in 24 hours, 2,156 by the T-500

16 wells drilled ahead of plan by the T-505 in 2014 and first half of 2015Out of 132 operating rigs the T-391 was announced as the best KCAD rig within Shell OPS worldwide in 2013 and was in 4th place for all Shell rigs Winner of the 2013 KCA Deutag Country of the Year AwardT-391, KCAD 2014 land rig of the yearT-400, KCAD 2015 land rig of the year Top five Well Control Training Centres in Russia

Since the very beginning the Management team’s focus has been on ensuring the whole team adheres to the group’s standards and it has tirelessly sought to improve its safety performance whilst at the same time taking every opportunity to grow the business, which at times has been difficult because of the fluctuating environment in Russia.

The history of the Russian operation dates back to 2002 when it was awarded its first land drilling contract for Sibneft, and the first operational personnel arrived at Noyabrsk to start the rig up of the modified for Siberia T-2000 rig. The process became more complicated when the number of local personnel reached 70%, the client did not fully share our standards and the whole environment was 45°C below

zero, which did not promise an easy start. Nevertheless, through planning, good mentoring of new personnel and full management support, this first project become the beginning of a success story. The strong performance of the rig and our commitment to safety values helped the company became a real leader in the Russian oil and gas industry.

With fleet growth there came an understanding that safety and efficiency was not only vital during drilling operations, but also during rig moves, so in 2009 KCA Deutag Russia established a new Rig Move department to ensure all rigs were transported and rigged up in a safe and trouble free manner across the vast territories of the Russian Federation. Figures speak much louder

than words and rig moves were made as far as 4,060 km (from Novy Urengoy to Usinsk oilfields), 4,960 km (from Buzuluk to Irkutsk oilfields) and 5,800 km (from Usinsk to Irkutsk oilfields).

Another boost for activity in Russia came in 2011 with the turnkey contract model which is popular in the country. Within months a new Combined Drilling Services department was established, the aim of which was to provide subcontracting and supervision of additional services related to the wellbore construction process such as cementing, drilling fluids service, directional drilling, logging operations, workover, cuttings recovery and bit service. This department has shown sustained growth to date, rising from 1 rig in 2012 to 4 rigs within 5 years.

HSEAn improved HSE performance despite a gradual increase in the number of rigs, with TRI reducing as follows. 2007 – 1.302011 – 0.802014 – 0.362015 – 0.33

NPT

High quality maintenance and overhauls together with qualified, well-trained personnel and investment results in a low NPT rate of 0.60 in 2016

Less than 3% since the start of 2015 (the green zone) for all rigs

KCA Deutag Russia 2016 Performance Statistics

2003

2005

2006

2007

2008

2009

New build T-507 commences drillingOpening of new Logistic Centre and rig up of the T-392 at the facility for training purposes

Spud in of T-401 in Western Siberia to drill the 1st well under turnkey

contract

CDS department establishedDelivery of new mobile rig (T-392) to the location and new build rig

HR-5000 T-505

Spud in the 1st HR-5000 (T-500)

for Achimgas in Novy Urengoy

The T-2000 spuds in the Noyabrsk,

YaNAO region (Western Siberia)

Move to larger new office and training centre.New build rigs T-320, T-321, T-322 begin to

operate in the Orenburg region

Spud in of T-400 in Eastern Siberia for VCNG

Rig Move Department and Tyumen

Training Centre established

Spud in of 4 new build rigs HR-5000 (T-501 – T-504)

Office relocates from Noyabrsk to Tyumen; Spud in of 2 new build rigs for Salym Petroleum

Development SPD (JV of Shell and Gazpromneft)

Representative office opens in Moscow

2011

2011

2012

2013

2014

2015

As of June 2016

Usinsk

Buzuluk

Irkutsk

Tyumen

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T-505

T-321

KCA Deutag officeT-329, training rig

T-391

T-500, T-501, T-502, T-503, T-504

T,320, T-400, T-506, T-2000

T-322, T-401, T-507, T-390

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The Intervention and Completions Unit (ICU) is arguably the most safety-critical equipment package on the Statoil/DSME Mariner detailed design project. Final sign-off of the overall Mariner rig’s business case was dependent on having a safe and functional ICU.

There will be 60 well slots on Mariner, and the main Mariner drilling rig will drill all these wells. Once a well is drilled, the ICU will then be utilised to complete the well and perform any necessary well intervention operations.

The ICU is a multi-faceted and multi-disciplinary equipment package featuring many smaller sub-packages, each of which must combine and interface together in a safe, effective and trouble-free manner, for installation on the rig.

Some of the sub-packages comprised in the overall ICU package include a bespoke skiddable hydraulic drilling rig with associated equipment, a set of high-pressure pumps, a hydraulic power unit, various pieces of pipe handling equipment and downhole equipment, cranes, shakers, manifolds, transport trolleys, a control cabin, and a fully integrated control system.

Working on the package has been a challenging yet highly rewarding experience, with stakeholders located in various parts of the UK, as well as in Korea, Italy and Norway. The main ICU rig is being built in Italy by Drillmec, under an MH Wirth umbrella equipment supply contract.

Development of the ICU has gone through various stages since RDS began its detailed design in January 2013, from an initial preliminary

engineering phase, to development of purchase order documents, and then working closely with the client and suppliers to ensure technical and functional suitability of design solutions.

Final engineering work is currently being carried out on the ICU package and its various sub-packages, with a number of design issues still to be finalised. However, it is anticipated that the ICU package will be ready for a full Factory Acceptance Test in Italy in early 2017, prior to installation on the main Mariner rig.

Contributed by: RDS

Dylan Firmin, RDS Engineering Manager - UK Greenfield talks about his experience on this high profile project

Designing the Mariner interventions and completions unit

The order for the supply of the Clair Ridge drill floor equipment and the Drilling Control and Data Acquisition (DCDA) system was placed with National Oilwell (NOV) in June 2011.

The DCDA system controls all drill floor equipment from an operator station consisting of three Cyberbase chairs located in the Drillers Control Room. These are allocated to the Driller, Assistant Driller and Pipe Handler.

In addition to the control of the drill floor equipment, the system contains an anti-collision system, drilling power management system and the drilling CCTV system.

In February 2013 RDS began DCDA integration testing on the Clair Ridge in Stavanger, Norway. In three months of testing over 600 punches were found, and subsequently corrected by NOV.

The Programmable Logic Controller cabinets were also

shipped from Stavanger to various sites around the world where the drill floor equipment factory acceptance tests were being carried out, in order to further check system software.

Hardware in the Loop (HIL) testing was carried out on the system during 2014 and 2015. A 3D model was created by NOV to allow the software to be tested on a simulator. This allowed BP’s Operations team to fully test the system logic and carry out a human factors check on the chair control screens and the functions of the joysticks and keypads. The HIL testing raised 550 punches. All but twelve of these were successfully cleared shortly thereafter. The remaining twelve punches were cleared during the commissioning phase at site at HHI in Ulsan, South Korea.

All modules have now been transported from South Korea to the North Sea where offshore hook-up is underway. The DCDA offshore commissioning is expected to be carried out in 2017.

Brad Morris – Instrument Package Manager, RDS HUC Support Team

RDS successfully tests the drilling control and data acquisition system on the Clair Ridge

Earlier this year RDS and KCA Deutag provided key support in the planned shutdown of Gullfaks C which took place from 8 April to 13 June.

During this time there was a lot of expectation placed on the RDS team and whether we could attain 10 years without lost time injuries during the platform shutdown with so many tasks to be completed. On 8 June, Bjarne Tresselt, RDS Manager for Norway, was therefore delighted to inform the team that RDS had indeed passed this major milestone.

RDS’ activities during the shutdown were: • Replacement of SCR board • Replacement of gantry crane • Modification on mud-mix system • Replacement of work basket on drill floor • Purging of DC motors • Modification of BOP system

Even though there were challenges during the installation, the shutdown on Gullfaks C was completed on schedule with good HSE results and excellent project execution. RDS contributed approximately 18,000 hours during the suspension period including all vendor assistance.

The successful shutdown however could not have been obtained without Statoil’s support and commitment offshore, and in May Bjarne Tresselt, Arve Davidsen (Department Manager Drilling Contract & Engineering) & Ann-Therese H Valvatne (Senior Engineer QHSE & Risk) performed a QHSE management inspection at Gullfaks C. The inspection team was very pleased with the work carried out, and the team’s performance. The feedback from Statoil was also very positive.

A warm thank you to everyone involved in the shutdown and lets look forward to many more years LTI free.

RDS in Norway achieves 10 years LTI free during the planned shutdown of Gullfaks C

The T-47 was in operation in the Kashagan Field, Kazakhstan for almost 15 years before its contract ended and the decision was taken to decommission the rig and stack it at the Kasmashal Yard.

During this process the KCA Deutag team was fully committed to ensure the rig was safely and efficiently decommissioned by adhering to all the relevant policies, standards, procedures, regulations and legislation. Its target was to perform the demobilization on time and on budget.

The T-47 preservation process started early on. The Toolpusher, Mechanic, Electrician and Rig Crew had key roles to play here. It was important that the process started before disassembly of the rig components, in line with the group’s Stacking Standard.

The Rig Down also had to be performed in a safe and controlled manner. To ensure this the HSE-Coordinator, HSE Supervisor and H2S Supervisor were present. Overall 82,886 man-hours were expended on the execution of this project.

Five flat-top and 15 ice class commuter barges with a total deck space of 22.500m² were then used to transport the rig from its island location to an onshore harbour and then to its storage location, which in turn required 362 truckloads!

The key dates for the project were as follows: • 23.01.2016 final completion of last well • 08.02.2016 rig release by the client • 28.02.2016 mast lowered • 30.04.2016 handover of EPC-3 artificial island back to client • 10.05.2016 final load arrived at the storage yard • 21.05.2016 completion of preservation, stacking and verification by E&M Manager

In the end the team completed the demobilization safely, ahead of schedule and within budget. This was in no small part down to the excellent performance of the rig crew and our 3th Party transport company.

Thank you to everyone in the team for your commitment to working the KCA Deutag Way.

T-47 demobilization project

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When the KCA Deutag office move from Altens to City South was announced, the DART® team quickly realised they faced a mammoth task. The DS-6000 drilling simulator, which was used for our DART® training, now had to be relocated.

The simulator is used in many of our courses ranging from Well Control to MPD training, so it was vital that such a dynamic and unique piece of training equipment was relocated to the new office with us.

Plans for the simulation area were started over 12 months prior to the move date with the DART® team’s imagination being tested as it had to envisage how everything would look from architect drawings.

It quickly became apparent that one of the first challenges that we would face was to downsize the DART® facility dramatically. Many options were deliberated and soon the decision was made to project the rig floor onto a specially designed projection wall. This would allow us to keep the simulator’s unique wow factor.

As the simulator is designed and engineered by Drilling Systems it made sense for the DART® team to enlist the help of its specialist simulator engineers who would be present for the move. This would help us to ensure that all the equipment was positioned, wired up and programmed correctly within the new simulation room.

After many months of planning the day of the move arrived and the team anxiously watched the cyber chairs being lowered into position in their new location. With the projector and instructor station installed shortly after this, it took 10 days of continuous work to get the simulator fully up and running.

With the final office move now completed the DART® simulation room is now a fully immersive experience for all candidates and has been given a new lease of life in its new location.

If you are interested in any of our courses please get in touch with me – anna.buchanan@kcadeutag.com

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Contributed by: Brunei

By Ron Klunder, Brunei Country Manager

An excellent start to drilling operations for the T-203 in Brunei

On 23rd September 2016 the T-203 reached 365 days with no incidents, accidents or spills, therefore the team can still proudly say that they have never had an accident. This is a remarkable achievement given the projects completed since it started operation.

Built by Bentec in Bad Bentheim, the T-203 arrived in Muara Port, Brunei, on 23rd September 2015 and was then mobilized using trucks 140km west to Seria, where the country’s main oil and gas land activities are located. In thirty six days, the rig was installed, commissioned and accepted by the Global Shell Rig Start Up Team, one of the toughest integrated acceptance testing on operational readiness of personnel, equipment and processes, and the country team completed this major challenge while delivering the rig ahead of the target spud date.

The T-203 is one of the largest land rigs in the KCA Deutag fleet and was designed to drill deep HP oil and gas wells. However due to the low oil price environment the majority of these types of wells are currently deferred or even cancelled. The rig was therefore used for abandoning shallow wells which were very different from the scope of work the rig was originally designed for. Although these were very easy for a rig like the T-203 to perform, the frequent rig moves, in some cases were a weekly occurrence, were not suited to the initial rig scope and design.

However, situations like these bring out the best in people and the T-203 operations team rose to the challenge. They reviewed the rig move plans and successfully delivered a drastic reduction in rig move durations. This was achieved without compromising HSE. With excellent planning and execution the team were able to reduce rig move times from 12 -14 days to 6.5 -7.5 days. The time varied depending on how much drill pipe needed to be picked up and the rigging up of the diverter which is not required on abandonment wells.

The T-203 has performed 8 rig moves in less than a year of operation, but has also seen some standby time. The team have used this time to improve the effectiveness of the rig and look for ways to optimise its performance; for instance, the handling of “doubles”, reviewing the design of the flow line over the shakers at high circulation rates and maximise rates of penetration. The next area the T-203 team will be focusing on will be the improvement of connection times and casing running speed and everyone is determined to make the rig best in class in everything it does by approaching “Performance” in the same as they do “Safety”. This is already beginning to deliver results and in the second quarter of this year, the rig was the top performing rig of all of our client’s operations globally with a score of 1.9 out of 2.0 and a customer feedback report with an excellent score throughout.

Thank you to the entire team associated with the T-203 commencement and ongoing operations, and well done in achieving this one year “GOAL ZERO milestone.”

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Contributed by: DART®

By Anna Buchanan, DART® Instructor

Moving DART®

Rune Lorentzen, President of Offshore and RDS,with Terje Lovereide, Bob Petrie

Offshore Update – Key Management Changes

Contributed by: Offshore

Managing operational change is an activity that we need to get right when delivering wells for our clients. This activity is no less important when we are making changes within our onshore or-ganisations. I am very pleased to be able to share a number of changes that are ongoing within the Offshore Business Unit management team with you.

Bob Petrie, who has been Country Manager in Sakhalin for four years, has delivered consistently strong performance and some great successes during his time there. This has included winning the KCA Deutag Country of the Year Award in 2014. Bob is now in the process of moving to Baku where he will take over as Azer-baijan Country Manager. He replaces Phil Woods who will retire at the end of this year.

Bob brings with him a wealth of operational experience and I look forward to him driving performance to new heights in Azer-baijan. Just as I would expect on every one of our rigs, Bob is currently completing a robust handover with Phil to ensure he is fully up to speed before he assumes responsibility for the oper-ations there. Commenting on his move, Bob Petrie said, “Having worked in Sakhalin for a very successful four years and really enjoyed work-ing with our fantastic team there, being asked to move to our Azerbaijan operation is a great statement of faith in my ability to manage one of our biggest operations in the offshore business

unit. I will do my utmost to repay that faith. I consider it a great honour and privilege.”

Bob’s replacement as Sakhalin Country Manager is Terje Løv-ereide. Terje joined KCA Deutag Norge in August 2014 as VP Operations from Dolphin Drilling. Since starting the role, his fo-cus has been to develop a team with a shared vision of success and a demonstrable commitment to delivering best in class drill-ing performance.

Through Terje’s efforts we have seen a step change in operation-al delivery over a relatively short period of time where his team have doubled the rig efficiency over an 18 month period, as measured by Statoil. I also look forward to Terje embedding this level of performance into our operations in Sakhalin.

Before starting his new role, Terje spent 3 days in Aberdeen as part of his introduction to our Sakhalin operations. As part of this visit he spent valuable time with Offshore BU team mem-bers to help ensure he is well prepared for his new role. Terje said: I am delighted to be given the opportunity to broaden my international experience and to take on the new challenges which will come with my promotion to country manager.”

I wish every success to Bob and Terje in their new roles and look forward to building upon our already successful working relationships in the months ahead.

In April Jan Aalderink, Head of R&D and Bentec Engineer Sascha Visscher carried out a second feasibility study to establish the design package in order to obtain its API 16 D certificate. The necessary audit has been carried out and the licensing process is ongoing. If all goes well the next stage will be the manufacture of a prototype.

Jan Aalderink said: “We are confident that our BOP Closing Unit will enrich the market with a high quality German engineered product at a very competitive price.”

Jan Aalderink,Head of Research & Development

Contributed by: Bentec

Bentec plans latest addition to its equipment range: The BOP Closing Unit

The T-320 successfully spuds in RussiaContributed by: Land, Germany

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A BOP Closing Unit is the one piece of equipment which is routinely required in drilling rig tenders. In the past Bentec Engineering had to purchase this from competitors, as it didn’t manufacture it. The team is therefore delighted to announce that it plans to address this and add a BOP Closing Unit to its product range.

As part of the BOP control system, the Closing Unit’s main role is to provide hydraulic power to function the BOP stack, which subsequently provides a mechanical barrier that seals the well in the event of a well control situation. The unit also stores energy so that even in the event of a loss of rig power, the unit will still operate so that the borehole can be closed.

The project to develop a Closing Unit began in January of this year when Bentec graduate trainee, Nico de Blecourt, completed an initial study as part of his university course.

a possible closure of the road to the field because of snow. The T-322 was the first upgrade to a Cluster Slider rig and many lessons were learned along the way which were successfully implemented to improve the performance of its T-320 sister rig.

The low number of findings and the speed with which the rig went from completion to being on day rate is testament to everyone’s hard work and dedication in ensuring a safe, effective and trouble-free start-up.

This excellent and impressive result could only be achieved by the team’s joint efforts and hard work.

A big thank you to everyone involved - on site, in the offices, construction plants and warehouses.

Gerold Kleine VennekateProject Manager

The 27th of October 2016 was a highlight for the Russian operation and the overall KCA Deutag Land business with the successful spud of the T-320, which had been upgraded to a cluster slider, in the VCNG field – incident free, ahead of plan and on budget!

The Verkhnechonskoye field is a giant oil field in Eastern Siberia, Russia. It is located in the Kataganskiy district, Irkutsk Oblast, about 1,100 km north-east from Irkutsk.

The rig had been initially scheduled to spud on 8th December 2016, approximately six weeks later. However, this was the second time the team had completed this type of upgrade so they used their previous experience and assembled, completed and tested the T-320 on the drilling pad to enhance project delivery.

The very short timeline was however a challenge for the Bentec and KCA Deutag teams, and was exacerbated by the added pressure of having to meet the deadline imposed by

Harsh environments call for reliable solutions

Convinced by our modern manufacturing facilities, skills and the high quality we deliver Siemens has chosen Bentec as its partner to develop and manufacture a forty feet Power Control Room for its first eHighway demonstration project in Sweden.

The control room will manage a system of overhead power cables which will provide electricity for hybrid trucks along a two kilometre stretch of highway north of Stockholm. It will test the eHighway’s performance in harsher environments – a domain Bentec is well versed in – to ensure that it will deliver power without interruption in any environment ranging from arctic to desert conditions. The test will run for two years and is intended to demonstrate the system’s suitability for future commercial use. As Bentec is continuously striving to enhance its sustainability and protect the environment, this eHighway demonstration project, which enables trucks to travel with zero carbon emissions, is an excellent opportunity for us to demonstrate how our skills can be used in other areas whilst at the same time meeting our core value of environmental stewardship. Photo: Copyright of Siemens AG and Scania AB

Bentec delivers Power Control Room for Siemens’ first eHighway in Sweden

Bentec Engineer, Jacqueline Kastner, wins 3 gold and 2 bronze medals at the European Dragon Boat Championships in Rome

Jacqueline Kastner has been a structural engineer at Bentec in Germany for more than 15 years. In August 2014, when the dragon boat team “Bentec Dragonforce” was founded, she took up the challenge and joined the team. As time went on, she realised that this was not only an enjoyable pastime but also a serious sport that she wanted to do more of.

In January 2016 officials of the German Dragon Boat Association noticed Jacqueline for the first time. They had seen movies of her races on Facebook and had been impressed by them. Soon Jacqueline was invited to prove her skills in a selection test for the national team. The first step was a performance test which focused on her athleticism, power and endurance. Jacqueline passed this stage with flying colours and qualified for test number two which took place in Berlin in April. During this test all potential participants had to complete a time trial in an outrigger, which is a one person canoe, and only those athletes with the best times would win a place in the national team. To ensure Jacqueline was as well prepared for this as she could be, she even decided to relocate her training to a club in Borken. Thankfully, all her efforts paid off as Jacqueline won her place in the German national team.

Immediately before the European Championships started in July Jacqueline joined the training camp in Munich from where the whole team travelled to Rome. Once in the Italian capital Jacqueline raced in the mixed and women’s team. The German mixed team won the European Championship in all three distances over 2,000, 500 and 200 metres and the women’s team won two bronze medals in the 200 and 500 metres.

“My time in Rome was not only a great sporting success for me but also a new adventure with lots of new experiences.” Jacqueline remembers.

Jacqueline is not sure whether she will qualify for the World championship in China in 2017, but would love to be there. “It would definitely be a sporting highlight for me.” Jacqueline said.

However with no financial support from the Dragon Boat Association, she is hoping that her recent success will draw the attention of sponsors keen to support her. We are keeping our fingers crossed that Jacqueline will be there and wish her good luck and even more success.

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1918

Contributed by: Tyumen Training Centre

The TTC Team talks about how it got to where it is today

KCA Deutag’s Tyumen Training Centre celebrates its 10 year anniversary as one of the top five well control training centres in Russia

This year it’s already been 10 years since our KCA Deutag Training Centre in Russia began operating.

Its origins began back in 2006 when a small training group started working in the old KCA Deutag office because they were unhappy with the quality of our external training providers and new employees had joined the training team who had the required knowledge level to provide this service internally. The Simulator DS600 was then set up and with only two classrooms and a handful of trainers our dynamic, advanced and responsive rig training was offered to all our Russian personnel.

The simulator based training was a great success, and in a very short time our facilities became too small. That was when we decided to build a training facility on KCA Deutag’s central warehouse premises, and the Tyumen Training Centre was born. This allowed us to teach up to 40 people at the same time and provide them with accommodation. Simultaneously with this our trainers started preparing themselves for IWCF/ IADC accreditation.

In 2011 the Tyumen Training Centre finally received IWCF/ IADC accreditation and at that time mainly delivered IWCF and IADC Well Control courses to our own personnel and several clients.

As KCA Deutag in Russia kept growing the whole office, including the Training Centre, had to move to a bigger building. The Tyumen Training Centre was officially re-opened on 28th March 2014 and now offers 1,000m² of state of the art training facilities, including 13 classrooms equipped with modern technology and three drilling simulators.

Always looking for new challenges we started our first apprenticeship program in 2014. It is based on Germany’s dual vocational education system. This combines time spent in a classroom with work at a company and prepares young people without work experience for safe and effective operations in an international business.

Today we offer four apprenticeship programs: Logistics, Electricians, Mechanics and the most popular, Floormen. Our Training Centre is now one of the top five well control training centres in Russia and whilst its main focus is still on offering accredited courses such as IWCF/IADC Well Control, we now

offer a wide range of additional onshore drilling courses, which can be specifically tailored to our customers’ needs.

Moreover, the T-392 has been set up as a training rig to further develop our skilled operators and provide hands on experience during training sessions.

As an accredited training centre with about 20 full-time and part-time trainers, we now do not only serve our own employees but also those of the major oil and gas companies who we keep updated through our regular bulletins.

The Tyumen Training Centre has been a real success story and we are very much looking forward to seeing the next instalment.

Senior Training Supervisor, Ilian Dossow, (right) who has been with the centre almost from the start and Mikhail Maslov, Training Supervisor (left) who has just returned to an operational role.

With HR Service Centre’s located in Aberdeen and Dubai, the team provides HR support focusing on KCA Deutag’s Core Values and Worldwide HR standards combined with best practice HR

The HR Service Centres deal directly with the people we support for all routine HR advice and administration. In the first instance, this will include management of day-to-day enquiries and the

administration of documentation for the following areas. For example, but not limited to:

Using our HR Service Centres

What we do

Holiday requestsNew, and changes to, employment contracts

New joiner paperwork Recording of absence including sickness and compassionate leave

Company benefits: dental cover, private

healthcare, life insurance cover

Management and recording of the

disciplinary process

Leaver paperwork and completion of the exit

process

Performance management administration

Group pension scheme applications and change requests

Payroll – Monthly calculation of gross

pay

We provide Support toUK along with Angola, Azerbaijan and Sakhalin expat population

UK HRSC: UAE along with KCA Deutag Operations Services DMCC and KCA Deutag Drilling GmbH USD expat populations

Dubai HRSC:

How to contact us

In Person

Drop into the office or arrange a meeting

Telephone

+44 1224 987075 (UK) (Internal – 2075)+97144293795(Dubai)

Online

UK.HRServiceCentre@kcadeutag.comDubai.HRServiceCentre@kcadeutag.com

Opening Hours

Monday - Thursday 8am – 5pm Friday 8am – 4pm (UK) Sunday 8am – 5pm (Dubai)

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Health & SafetyIs constantly on the lookout for risks within the workplace and takes immediate and effective action to deal with them

Proactively participates in safety meetings and audits

Sets a personal example through safe behaviour and challenges those who don’t

Takes responsibility for own and colleagues’ safety

Performance ImprovementChallenges existing practices and procedures

Shares information, knowledge and ideas with colleagues and others

Seeks out opportunities for continuous improvement

Shares successes which may improve ways of working across KCA Deutag

Valuing all peopleShows respect to people at all times

Communicates respectfully, sensitively and effectively at all times

Accepts the consequences of own actions and admits mistakes

Treats all team members fairly and listens to them

Environmental Stewardship

Complies with key environmental standards, policies and procedures

Recognises environmental issues and waste protocol

Sets a good example by reducing, reusing and recycling wherever possible

Shows respect for the environments that we operate within

Sustainable GrowthContinually develops financial awareness

Invests/spends the company’s money wisely

Honestly evaluates commercial proposals with a healthy degree of scepticism and appropriate recognition of risk

Seeks out and supports ways to save costs

Becomes a trusted business partner for our clients through delivery of safe, effective, trouble-free operations

Business IntegrityIs honest and fair in all business dealings

Avoids conflicts of interest and challenges others to do the same

Understands and complies with relevant policies, procedures and standards

Raises concerns or highlights suspected breaches of laws/policies and responds respectfully and

appropriately when others raise concerns