This document provides the minimum standard for drill string management

1. REFERENCES

API Specification 5DP/ISO11961: Specification for Drill Pipes

API Specification 7-1/ISO10424-1: Specification for Rotary Drill Stem Elements

T.H. Hill Standards DS1: Drill Stem Design and Inspection

API Specification 7-2/ISO10424-2: Specification for threading and gauging of rotary shouldered threaded connections

2 GENERALITIES

1. All Drill String components supplied to COMPANY by contractors shall be manufactured with the relevant API specification as referenced above. Manufacturers must be API approved and hold ISO 9001 or equivalent accreditation.

2. It is the duty of the COMPANY Well Operations Supervisor to enforce the use of API standards for all drill-string components.

3. It is the duty of the COMPANY Well Operations Superintendent to identify critical drill string component such as X- over above costly equipment, MWD or Rotary steerable assembly, etc and to define the appropriate standard for inspection.

4. All drill-string components shall have a permanent serial number die stamped for traceability purposes. BHA components shall also be stamped according to API specification 7-1/ISO1024-1. Drill pipe must be stamped on the PIN end either on the 35° Taper shoulder or on a mill slot. Serial numbers shall be directly traceable to the original manufacturing certificates.

5. All Drill Sring Components used by COMPANY shall have full material and manufacturing certification. They shall be accompanied on location with the latest inspection certificates stating the date, inspection standards, name and competence of the inspectors. The COMPANY Site Supervisor shall not accept components without certification or proof of inspection.

6. The minimum level of inspection for all COMPANY Drill String components shall be T.H. Hill Standards DS1 category 4 with the addition of blacklight inspection for connection on DP. For HP/HT or extended reach wells T.H. Hill Standards DS1 category 5 shall be applied.

7. The repair of rotary shouldered connections shall be carried out in accordance with API Specification 7-2/ISO10424-2.

8. Rotating hours of all components of the drill string must be monitored and recorded along with the wear of the connections OD and ID. A schedule for inspection shall be established by the COMPANY Well Operations Superintendent according to the drilling conditions and rotating hours.

9. Dimensions of all components run in hole shall be measured and recorded by the Driller on a dedicated book kept in the doghouse at all times. It shall include scaled diagrams of components not having constant OD or ID.

10. Fishing equipment for all the Drill String components shall be on location prior to the commencement of the operations.