Desert Seismic Operations. IAGC / OGP JOINT GLOBAL HSE & Security FORUM

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1 Desert Seismic Operations IAGC / OGP JOINT GLOBAL HSE & Security FORUM 1

2 Overview of operations Southern Iraq 500 km² 3D Explosives Crew Camp based operation 400 man camp Survey over existing oilfield Drained Marsh Area with seasonal flooding and permanent marsh around edges of prospect IAGC / OGP JOINT GLOBAL HSE & Security FORUM 2

3 Challenges Security high risk Red Tape constantly changing rules, import delays, visa delays Explosives difficulties to import Environment Seasonal weather variation, flooding Local Workforce inexperienced, unused to field work Community Issues Permitting, Theft/Vandalism SIMOPs Working in Congested Oilfield UXO/ERW IAGC / OGP JOINT GLOBAL HSE & Security FORUM 3

4 Security Key Concern was Security in planning stages Security Appraisal rated location as High Risk Client called for pre-tender submission of HSE and Security Plans for project. Comprehensive security plan developed between Operations, SLB Security Manager and Security Provider Two four vehicle Quick Response Teams deployed to field each day All vehicles tracked and Journey Management in place. Due to the extensive planning there were no security related incidents throughout the project. IAGC / OGP JOINT GLOBAL HSE & Security FORUM 4

5 Red Tape Mobilizations into new countries are always fraught with uncertainties. Visa process slow 2-3 months to issue Changing interpretations of regulations by authorities resulted in delays in obtaining permits and importation of equipment. Requirement for Ministry of Oil to seek approval from multiple government ministries to approve explosives imports. MoO did not know correct process which created major unforeseen delays Can have significant commercial implications IAGC / OGP JOINT GLOBAL HSE & Security FORUM 5

6 Environment Project run over a period of ~ nine months Project area consisted of drained marsh with some seasonal flooding in southern portion of block and permanent marsh on eastern fringe Required additional capabilities to work in water covered areas. Airboats and drilling punts were utilized. Uncertainties regarding near surface lithology for shothole drilling. Mobilised large and small tractor rigs and flush drills for farm areas and flooded areas. Strong winds during summer season IAGC / OGP JOINT GLOBAL HSE & Security FORUM 6

7 Local Workforce No experienced seismic personnel in area Very high turnover due to nature of work Places a strain on HSE training resources Personnel unhappy about being camp based Occasional strikes fomented by a few problematic people IAGC / OGP JOINT GLOBAL HSE & Security FORUM 7

8 Community Issues With 560kms of cable spread over an area of 200 km² theft and vandalism is always an issue Within the oilfield proper, levels of theft were manageable, however around the outer edges and close to communities significant losses of equipment occurred. Permitting and compensation were not managed by crew or client. Authorities unfamiliar with the concept of paying compensation for crop damage. This resulted in delays and increased theft of equipment IAGC / OGP JOINT GLOBAL HSE & Security FORUM 8

9 SIMOP s Very congested oilfield with a large amount of simultaneous operations underway. Effectively managed by client with a comprehensive permit to work system. Crew submitted expected work schedules for PTW on a weekly basis and attended SIMOPS meetings to be kept abreast of other activities in the field. IAGC / OGP JOINT GLOBAL HSE & Security FORUM 9

10 UXO Area potentially contaminated with UXO/ERW UXO/ERW mapping and clearance activities under a separate contract covering all oilfield activities WG Surveyors provided support to UXO/ERW contractor. All source and receiver lines physically swept with detectors. Deep search conducted for each shotpoint location. Lanes mapped and physically marked with biodegradable bags. Any UXO/ERW finds were mapped and marked as exclusion zones for seismic purposes. Land release program in place with seismic grid providing an adequate sampling Much slower rate of production than crew IAGC / OGP JOINT GLOBAL HSE & Security FORUM 10

11 How did it go? Client very satisfied with crew performance and data quality Comprehensive planning resulted in no security related incidents. Crew completed ~1.55m man hours throughout the project without an LTI with an average headcount of 388 personnel No security related incidents No UXO/ERW incidents Almost 12 months delay due to explosives licensing delays Permit issues required block to be zippered while issues were resolved Assets thefts in the order of US$1m due to a combination of common theft and targeted thefts due to permit/compensation issues IAGC / OGP JOINT GLOBAL HSE & Security FORUM 11

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