HSEQ NEWSLETTERNo.07 - Quarter III, 2014

www.pvdrilling.com.vn

PV DRILLINGPioneer of Vietnam Drillers

2IN THIS ISSUE

Editor’s Letter

Updates on Legal RequirementsPVD TRAINING: H2S Training in Myanmar

HSE Performances

64

8Safety Awards Images Sharing7

2 HSEQ Briefings

HSEQ Briefings

3 2Pioneer of Vietnam DrillersPioneer of Vietnam Drillers

PV DRILLING I: CUU LONG JOC ACKNOWLEDGED TWO YEAR OPERATON WITHOUT LTI

On August 31st 2014, Mr. Craig Dawling, on behalf of Cuulong Joc, presented the recognition plaque to Mr. Frank Henson – the Rig Manager of PV Drilling I in order to acknowledge the Jackup rig PV Drilling I for achieving 2 year LTI-free operation. Up to now, the rig has been successfully maintaining the Zero-LTI operation for more than 7 and a half years.

PV DRILLING II: 5 YEARS OPERATION WITHOUT LTI ON 15-9-2014

On September 15th, the Jackup rig PV Drilling II remarkably reached the target of 5 continuous year operation without LTI and was the 2nd rig chartered and operated by PV Drilling that successfully attains the target. This is the result of non-stop efforts by not only the offshore crew but also the whole support system. Congratulations to PV DRILLING II for this impressive achievement.

PV DRILLING V: HSE VISIT BY BIEN DONG POC

On July 21st- 22nd, a HSE visit to the T.A.D rig PV Drilling V was carried out by Bien Dong POC delegation leaded by Mr. Nguyen Duc Minh, QHSE Manager. Beside the objective to audit the HSEQ Management System of PVD Deep Water, Bien Dong POC also carefully checked operational controls on site. As a result, the customer highly appreciated the commitment and the efforts on satisfying customer’s requirements as well as improving the management systems from PVD Deep Water which was demonstrated through the success of obtaining the Certification of ISO 14001:2004 and OHSAS 18001:2007 international standards in the 1st quarter of 2014.

D uring the last three months, the HSEQ activities at PV Drilling were on the fast track with a series of training

course, internal seminar and audit. All five of the PV Drilling rigs successfully managed the Zero-LTI objective with PV DRILLING II rig reached outstanding 05 continuous years operation without LTI in September; the integrated management system according to ISO 9001: 2008; ISO 14001:2004 and OHSAS 18001:2007 standards well maintained with high consistency and efficiency; the HSE performances and product/service quality highly acknowledged and appreciated by our valued customers.

As usual, the regular columns as brief news, key HSE performances and safety award image sharing will keep you updated about the HSEQ activities in the entire Corporation. The very first move in expanding our business to Myanmar by PVD Training is also featured in this issue.

I hope you to enjoy the reading and best wishes to you all!

On behalf of the Editor teamHuynh Ngoc ThuaHead of HSEQ Division

PVD WS: HONORED AS TOP 3 BEST SERVICE PROVIDERS BY PVEP

On September 23th in Hanoi, PVD Well Services was honored as Top 3 Best Service Providers by PVEP. This award was to acknowledge the excellent services having been provided during 02 years of PVEP’s drilling campaign since 2013 at block 102/10 and 106/10. Drilling operations on these locations are considered big challenges due to high potential content of hydrogen sulfide (H2S) gas detected above 7.000 ppm. For this campaign, PVD Well Services provides three core services: tubular running, solid control and equipment rental.

HSEQ-MS ACTIVITIES

Internal Audit. During September, the internal audit programs were carried out at all subsidiaries’ and the Head Office as planned. The audit scope was focused on the core services and operation procedures. Beside finding evidences of the conformance according to the requirements of the applied standards as usual, this audit program was designed to find out opportunities for improving the effectiveness of the management system. As the results, HSEQ-MS at PVD-DD, PVD Offshore, PVD WS and PVD Logging were found well-maintained with high consistency as well as efficiency. The outstanding improvement in the HSE management at PVD TECH’s workshops was also recognized by the audit team.

Top Management’s Review. To demonstrate the commitment of the Board of Directors, the Management’s HSEQ-MS Reviews were carried out as planned at PVD Tech on August 6th and at PVD Logging on August 11th. All the relevant HSEQ issues were studied to find out the pro-active solutions to continuously improve the management system.

JACK-UP RIG PV DRILLING I

CUSTOMER: CUU LONG JOCLOCATION: White Lion Field, Block 15-1

Zero-LTI: 07 năm

JACK-UP RIG PV DRILLING II

CUSTOMER: LAM SON LOCATION: Thang Long Field Block 01/97

Zero-LTI: 05 years

JACK-UP RIG PV DRILLING III

CUSTOMER:VIETSOVPETROLOCATION: White Tiger Field Block 09-1, Platform BK-17

Zero-LTI: 04 years

T.A.D RIG PV DRILLING V

CUSTOMER:BIEN DONG POCLOCATION: Hai Thach 1 Field, Block 05-02.

Zero-LTI: 01 year

LAND RIG PV DRILLING 11

CUSTOMER:Operator GBRSLOCATION: Well BRS#6bis, Block 433a/416b, Sahara Platform

Zero-LTI: 01 year

PV DRILLING 1: Cuu Long JOC acknowledged 02 years operation withou LTI

HSEQ BriefingsLegal Updates

5Pioneer of Vietnam Drillers

4Pioneer of Vietnam Drillers

EFFECTIVE IN 3RD QUARTER 2014Law No.40/2013/QH13 dated November 22th, 2013 amending and adding a number of articles of the Law on Fire Prevention & Fighting; effective July 1st, 2014.

Decree No.79/2014/ND-CP dated July 31st, regulating detailedly some regulations of the Law on Fire Prevention & Fighting; effective September 15th, 2014; replacing Decree No.35/2003/ND-CP and Article No.1 of Decree No. 46/2012/ND-CP.

Decree No.73/2014/ND-CP dated July 23rd, amending Article 29 of Decree No. 55/2013/ND-CP on license for the labor leasing operation, payment of deposits and list of jobs entitled to implement labor lease; effective September 15th, 2014.

Circular No.19/2014/TT-BKHCN dated July 1st, guiding the implementation of some articles of the Decree No.80/2013/NĐ-CP promulgating the administrative violation sanction in the field of standards, measure and quality of products and goods; effective August 15th, 2014; replacing Circular No.24/2009/TT-BKHCN.

Circular No.19/2014/TT-BYT dated June 2nd on the management of addictive drugs, psychotropic medications and substances used to produce medicines; effective July 15th, 2014; replacing Circular No. 10/2010/TT-BYT.

Joint Circular No.21/2014/TTLT-BYT-BLĐTBXH dated June 12th, amending Article No.1 of the Joint Circular No. 28/2013/TTLT-BYT-BLĐTBXH regulating the level of body injury due to wound, diseases, occupational disease; effective August 15th, 2014.

QCVN 71:2014/BGTVT - National Technical Regulation for Material and Welding of Pressure Equipment of Transport; issued by Circular No.18/2014/TT-BGTVT dated May 27th; effective August 8th, 2014.

QCVN 59:2014/BTNMT - National Technical Regulation on Radiation Prospecting Method; issued by Circular No.32/2014/TT-BTNMT dated June 10th; effective August 8th, 2014.

ISSUED IN 3RD QUARTER 2014Circular No.22/2014/TT-BKHCN dated August 25th, stipulating the management of radioactive waste and used radioactive sources; ensuring no harm to humans and the environment; effective November 1st, 2014.

Circular No. 23/2014/TT-BLDTBXH dated August 23rd, providing detailed guidelines on some articles of the Decree No.03/2014/ND-CP on employment; effective October 20th, 2014; replacing Circular No. 06/1998/TT-BLĐTBXH, No.29/1999/TTLT-BLĐTBXH-BQP and No.20/2003/TT-BLĐTBXH.

QCVN 18: 2014/BXD - National technical regulation on Safety in Construction; issued by Circular No.14/2014/TT-BXD dated September 5th; effective November 1st, 2014.

“SAFELIFTING TIPS”

Audit by Customers. During August 2014, the HSEQ-MS of PVD Logging and PVD Well Services were separately audited by Hoang Long–Hoan Vu JOC and Mubadala. The effectiveness of the HSEQ-MS was highly appreciated by both customers.

HSEQ TRAINING ACTIVITIES

Training on “Safe handling of equipment having strict requirement on work safety”. During July 2014, three training courses were organized by HSEQ Division in cooperation with the Labor, War invalids and Social Affair Department of Ho Chi Minh City, participated by more than 150 employees from all units of PV Drilling, who belong to the Group III as defined in Circular No. 27/2013/TT-BLĐTBXH. The training is to provide information on legal requirements, safe operation principles applied for such type of equipment, the relevant safety hazards, typical past incidents as well as lesson learnt. The 5-year-valid certificates were granted to all the attendants with refresh training required at every two years.

Training on “API Spec. Q2 Explaination and Application Guidance”. From August 13rd to 15th, at the Corporation Office, this training course was successfully organized by the HSEQ Division in cooperation with Bureau Veritas, attended by HSEQ coordinators and specialists from all units of PV Drilling. APT Spec Q2 is a brand new Technical Specification for Quality Management System specialized for service providing company in the oil and gas industry.

Training on “Awareness and Internal Auditor of Integrated Management System”. From September 9th-12th, at the Head Office, the HSEQ Division in cooperation with Bureau Veritas successfully organized the training course on IMS – Awareness and Internal Auditor in which 21 employees from PVD Logging, PVD Offshore, PVD DD, PVD Invest, PVD OSI, PVD Expro and PVD Tubulars attended. The training course was designed to help the attendants to understand the requirements of three standards: ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007, documentation of management system, as well as necessary skills as an internal auditor.

HSEQ INTERNAL SEMINAR PROGRAM

Seminar on HSEQ Legal Requirements taking place on August 5th in Vung Tau was hosted by HSEQ Division to disseminate new legal documents that being enforced in

2014. At the seminar, several issues on legal compliance relating to HSEQ were also discussed and solved out. Together with the PVD’s HSEQ Group, there were also participation of clients’ representatives of Bien Dong POC and VietsovPetro who shared their lessons learnt and exchanged experience on the regard.

Second Seminar on Safety Operational Procedures Project was carried out on August 18th-19th in Vung Tau, participated by more than 20 members of the compiling teams. At the seminar, 14 drafts of safe operation guidelines and procedures were presented and discussed, such as: equipment safety, safety training and inspection, waste management, health periodic check-up, CPR… As all of the presentation were well-prepared and practical in content, the drafts would be finalized in November to be officially issued.

HSEQ Internal Seminar Quarter III took place in Vung Tau on September 10th, in which there were some issues presented and discussed, such as: preparation for the application of ISO 9001:2015, introduction of the asset management standards ISO 55001, the way to build up and maintain the safety culture in PVD-Baker Huges as well as sharing experiences on how to meet the requirements of API Spec Q1 by PVD Offshore. At the seminar, the HSEQ Computerization Project also presented to collect feedbacks amongst the PV Drilling’s HSEQ Group.

MONITORING WORKING ENVIRONMENT

During August 2014, the Working Environment Monitoring Program was perfomed as planned by Occupational Health and Environment Protection Center - Health Department of Ho Chi Minh City, at entire PV Drilling’s worksites in Ho Chi Minh City, Vung Tau City and offshore drlling rigs. As a result, for 9 quality indices, 99% of total 3000 measured figures were acceptable. The corrective action and compensation plan shall be established to proactively protect the employees from the detected hazards.

ANNUAL HEALTH CHECK-UP PROGRAM

On September 17th, the annual employee health check program organized by Human Resources Division in cooperation with Health Management Team of HSEQ Division was kicked off at the Head Office in Ho Chi Minh City. Three medical service providers were selected as same as those of last year due to their outstanding service quality: International Care 1 Clinic, International Yersin Clinic and University Medical Center HCMC. The Check-Up program this year is designed to fit different groups of age, genders as well as to be flexible of time to maximize the comfort but not to affect company’s operations. The program is expected to end in November 2014.

PVD Well Services honored by VNEP as Top 3 Best Service Providers

“THE MOST IMPORTANT THING TO REMEMBER IS TO

“LIFT WITH YOUR LEGS, NOT YOUR BACK.”

WHAT ARE “LEGS”?

Feature Safety Awards

7Pioneer of Vietnam Drillers

6Pioneer of Vietnam Drillers

Hydrogen Sulfide (H2S) is a deadly poison. Small amounts of hydrogen sulfide occur in crude petroleum, but natural gas can contain up to 90%. Thus, its biological effects post serious threats to all personnel working in petroleum industry, those at high risk of being exposed to Hydro Sulfide. The training is required for those working in the field in Oil & Gas industry to gain the awareness of the hazards of working in an H2S environment and to be well-equipped with basic to advanced skills to follow a response strategy to H2S exposure and to rescue casualty of its poisoning.

The course was conducted in one day, covering the following theory and practice:

• Properties and Hazards of H2S• Biological effects of H2S• Methods of detecting and

monitoring H2S• Breathing Apparatus /Escape

breather familiarization: features of breathing apparatuses most

Safety training has never become such a critical issue as in

the context where the labor force is unskilled in both knowledge and techniques in Myanmar despite that Myanmar over the past years has been transformed rapidly with it opening up to trade and encouraging FDI, setting up the momentum for drastic development and long-term growth. Especially with the large supply of natural gas placing itself amongst South East Asia’s major energy exporters, Myanmar Oil & Gas has reached $10.8 billion of total FDI approvals from fiscal year of 2005/06 to September 2010. With the increase in numbers of cross-border investors comes greater demand for skillful and qualified workforce. The quest for competency to ensure health, safety and operation efficiency has therefore become one challenging issue for many Oil & Gas companies.With our primary focus on standardized solutions for skilled and well-trained labor across borders, PVD Training hopes to help enhance safety awareness and increase competence of the local workforce. Hence, in August of 2014, PVD Training successfully presented its first safety training workshop in Yangon, Myanmar: The Hydrogen Sulfide (H2S) Training

commonly in use (SCBA & SABA); and the generic instruction of pre-use inspection, operation and after-use inspection

• Rescue Emergency Response• Portable Gas Tester • Self-Contained Breathing

Apparatus (SCBA)

Course was conducted at Myanmar Oil & Gas Enterprise (MOGE), Thaketa Offshore Supply Base furnishing the participation of delegates from MOGE, different operators, drilling contractors and oil & gas service companies Myanmar.

According to an industrial safety research, it is estimated that for most industrial accidents, human factor causes can be attributed up to 80% of accidents in high hazard industries. And the majority of errors were found at the perception level of employees. Hence, employers must, in any circumstances, question if their employees are COMPETENT to do the jobs, especially those who involve directly with equipment. Fundamental questions should be asked by employers towards their recruits whether:

1. They have the adequate knowledge and skills to handle the equipment in a safe manner?2. They have the knowledge to identify safety & risks elements to avoid?3. They have the knowledge to respond to emergency situation in any?

The H2S Safety Training workshop delivered by PVD Training aimed to equip all delegates with not only the understanding of the hazards associated with H2S and the confidence to enable them to work safely in a potential H2S

Instruction to use breathing equipment

MYANMAR

PVD TRAINING:H2S SAFETY TRAINING IN

environment, but also the advance knowledge and skills in operation of portable gas detection device and of SCBA relevant to H2S Response Strategy.

Conventional approach of training to help improve the supply of skilled local labors would be deployed locally as we dedicate our resources of industry training expertise and human resources together with localized infrastructure. With more than 1000 training topics covering from Safety fundamentals to advanced technical programs based on potentiality and competence of each individual, employers could expect proper training for their crew either in-house, at the wellsite, at a pre-arrange facility or online.

When your employees have the sufficient knowledge and skills they need to undertake their jobs especially when dealing with equipment or exposing to high risk environment, the risk for workplace injuries is reduced and the chance of operation efficiency is improved. Safety training is a vital tool used to help you achieve safety and performance.

Nguyen Khac Ngoc, Roustabout PV DRILLING V

Tran Khanh Trinh, Assistant Driller PV DRILLING V

Nguyen Chien Thang, Floorman PV DRILLING II

Nguyen Thanh Ban, Floorman PV DRILLING II

To Van Dinh, Desk Pusher PV DRILLING III

Le Van Hoan - Floorman PV DRILLING III

Do Van Bien, Derrickman PV DRILLING I

Nguyen Quoc Cong - Assistant Driller PV DRILLING I

H2S Safety Workshop at Thaketa Supply Base (MOGE). Myanmar

By Nguyen Phuoc Bich Thao

4th Floor, Sailing Tower, 111A Pasteur street, District 1, Ho Chi Minh City

Tel: (84-8) 39142012Fax: (84-8) 39142021

Email: hsebulletin@pvdrilling.com.vn

HSE Performances

PV DRILLINGPioneer of Vietnam Drillers

LTI: 0 | RWTC: 0 | Environmental: 0

INCIDENTS TOTAL: 21

TOTAL MAN-HOURS: 4,396,993PVD CARDS: 46,734

HSE TRAINING: 5,316 PAX.

SAFETY AWARDS

PVD V: 6.8%

PVD III: 3.7%PVD II:5.7% PVD I:

5.5%

By PV Drilling By CustomersRigs Pax. Amount (vnd) Pax. Amount (vnd)

PVD I 820 2,109,925,000 156 78,000,000PVD II 627 1,606,475,000

PVD III 489 589,655,000PVD V 653 730,335,000

PVD 11 - -

PVDO: 38.6%

PVD-HO: 5.7%

PVD-DD: 3.6%

PVD-WS: 4.8%

PVD 11: 7.1%

PVD-LOGGING: 8%

PVD-TECH: 8.4%PVD- INVEST: 2%

PVD-LOGGING: (70.7%)

PVD-WS

PVD-TECH

PVD-OPVD-DD

29.3%

PVD IIPVD I

PVD VPVD III

PVDO

PVD DD

PVD LOGGIN

G

PVD WS

PVD TECH

PVD 11

PVD HO

PVD INVEST

0

200

400

600 636898 772 890

505

156295

186

394306

153 125

PVD I

PVD II

PVD III

PVD V

PVD 11 1784

10443

7146

7434

9948

PVD I

PVD II

PVD III

PVD V

PVD 11

PVD WS

PVD-LOG TOTAL

MTO 0 0 0 0 1 0 0 1First-Aid 1 0 0 1 0 0 0 2Nearmiss 2 4 0 2 0 3 1 12Property Damages 0 2 2 2 0 0 0 6TOTAL 3 6 2 5 1 3 1 21

7055

132

2418

111

263

PVD V

PVD 11

PVD-WS

First-Aid: 1Nearmiss: 2

MTO: 1

PVD IPVD II

Nearmiss:4 P.D: 1

PVD IIIP.D: 2

P.D: 2 First Aid 1 Nearmiss: 1

PVD-LOG

Nearmiss: 3

Nearmiss: 1

PVD-DW: 0.2%