KHALDA, SOUTH UMBARKA, NORTH ALAM RAS El HEKMA, MATROUH, 4h Directional Equipment and Services Contract Between EIN, RAS KANAYES, UMBARKA, WEST KALABSHA, WEST KANAYES, SHUSHAN, NORTH TAREK, QATTARA AND SIWA PETROLEUM COMPANIES And Schlumberger logelco inc.Directional Equipment and Services Form of Contract ctional Equipment and Services Contract Directional Equipment and Services COBIEAS® ‘This Contract is entered into as of the 1*t day of May 2013, between Khalda Petroleum Company, an Egyptian corporation authorized under law No. 9 of 1981 of A.R.E., South Umbarka Petroleum Company, 9° Egyptian corporation authorized under law No. 97 of 1987 of A.RE., North Alamein Petroleum Company an Egyptian corporation authorized under Law No.73 of 1996 of A.R.E., Ras Kanayes Petroleum Company, ®n Egyptian corporation authorized under law No. 15 of 1989 of AR-E., Ras EL Hekma Petroleum Company, an Egyptian corporation authorized under law No. 8 of 1996 of A.R.E., Matroh Petroleum Company, an Egyptian corporation authorized under law No. 7 of 1989 of ARE. Umbarka Petroleum Company, an Egyptian corporation authorized under law No. 87 of 2003 of ARE., Shushan Petroleum Company «PETROSHUSHAN” an Egyptian corporation authorized under Law No. 24 of 2005 of ARE., West Kalabsha Petroleum Company, an Bgyptian corporation authorized under law No. 19 of 2005 of A.RE., West Kanayes Petroleum Company, ®n Egyptian corporation authorized under law No. 20 of 2005 of A.R.E., North Tarek Petroleum Company, an Bgyptian corporation authorized under law No. 17 of 2005 of A.R.B., Qattara Petroleum Company an Egyptian corporation Re ae Siwa Petroleum Company an Egyptian corporation authorized under law No. 148 of 2004 of A.RE and all Khalda operated areas including Abu Gharadig & Razak areas, with offices located at Road 290, New Maadi, Cairo, ARE. (hereinafter referred collectively to as “COMPANY”), with offices located at Road 290, New Maadi, Cairo, A.R.E. (hereinafter referred collectively to as “COMPANY”), and Schlumberger Logeleo ine. a corporation organized and existing under the law of n0.159 of 1981 of AR-E., with offices located at 25 Mist Helwan road, Zeiny Tower, Maadi . (hereinafter referred to as “CONTRACTOR’). ‘Khalda Petroleum Company/Contractor Page | of 3 We gDirectional Equipment and Ser Form Of Contract, Whereby CONTRACTOR agrees to provide COMPANY on call out basis with certain Directional Equipment and Services as COMPANY may specify hereinafter (hereinafter referred to as “SERVICES”)., in accordance with COMPANY’s program in COMPANY operated areas including Abu Gharadig and Razak and COMPANY concessions in the Western desert, Arab Republic of Eeypt (hereinafter “A.R.E.”, or the “Country of Operations’). Performance under this Contract shall commence effective as of May 1, 2013, and, subject to Clause 12 of Exhibit “3” hereof, shall continue for a period of two years. ‘This Contract shall consist of this document for the parties’ signatures, and the following: Exhibit “1” (‘Scope of Work”), Exhibit “2? (“Compensation”) and Exhibit “3 (‘General Terms and Conditions’), attached hereto and made a part hereof. In the event of any conflict between the Exhibits to the Contract, the documents shall take precedence in the order listed above. In consideration of the CONTRACTOR performing the Services set forth in the Scope of Work contained in Exhibit “1” hereof, and of fully performing its obligations under the Contract, COMPANY shall pay to CONTRACTOR compensation as set forth in Exhibit “2”, all in accordance with the provisions of Exhibit “3”, the General Terms and Conditions of this Contract. ‘This Contract supersedes and replaces any prior oral or written communication between the parties relating to The Directional Equipment and Services Contract to as aforesaid, unless specifically incorporated herein. Page 2 of 2 Wee wDirectional Equipment and Services Form Of Contract In Witness Whereof, the Parties thereto have caused this Contract to be executed by their duly authorized representatives on the day, month and year first written above. For: Khalda, South Umbarka, For : Schlumberger Logelco Inc North Alamein, Ras Kanayes, Ras ElHekma, Matrouh, Umbarka, Petroshushan, West Kalabsha, West Kanayes, North Tarek, Qattara, and Siwa Petroleum Companies Pa fade ed a on Grady Kples ‘Amr Essawi yy General Manager r VP & Managing Director & Managing Director Chairman & Managing Director | NN: Sr Khalda Petroleum Company/Contractor Page 2 0f2 a re waeDirectional Equipment and Services ‘Scope of Work EXHIBIT "1" SCOPE OF WORK Scope of work covered by this contract includes, but not limited to the performance of the services. CONTRACTOR shall provide COMPANY on a call-out basis with the following Directional Equipment and Services, including equipment, tools, materials, personnel and expertise to support the operation of the land drilling rig within the Khalda Concessions as follows: ‘The following definitions shall be used for the purpose of interpreting the CONTRACT. Further definitions not contained in. this Clause shall apply to the Section in which they are stated and subsequent Sections. rie Te) 1.3 14 15 1.6 7 18 19 “AFFILIATE” of a company means a person or entity directly or indirectly controlling, controlled by, or under common control with such company. SControl” for this purpose shall, in the case of a corporation with outstanding voting stock, require the direct or indirect ownership of, or power to vote with respect to, outstanding shares of a corporation’s capital stock constituting fifty per cent (50%) or more of the votes of any class of such corporation’s outstanding voting stock. “COMPANY” and "CONTRACTOR" shall mean the contracting PARTIES named in Agreement section and shall include their successors and permitted assigns. "COMPANY REPRESENTATIVE" shall mean that person referred to in COMPANY and CONTRACTOR REPRESENTATIVES Clause. “CONTRACT” shall have the meaning described in Agreement Section. "CONTRACT PRICE" shall mean the price for the WORK calculated in accordance with Remuneration section. "CONTRACTOR REPRESENTATIVE" shall mean that person referred to in COMPANY AND CONTRACTOR REPRESENTATIVES Clause. “PARTY” or PARTIES” shall mean individually COMPANY or CONTRACTOR or collectively as both COMPANY and CONTRACTOR. *SUBCONTRACT" shall mean any contract between CONTRACTOR and any party between such party and its Subcontractors of any tier (other than COMPANY or any employees of CONTRACTOR) for the performance of any part of the WORK. "SUBCONTRACTOR" shall mean any party (other than CONTRACTOR) to a SUBCONTRACT. Khalda Petroleum Company / Contractor Page 1 of 47 3¥) MieDirectional Equipment and Services Scope of Work 1.10 Lal 1.12 1.14 He “TECHNICAL INFORMATION" shall mean all such information provided by or caused to be provided by COMPANY pursuant to the CONTRACT. “THIRD PARTY" shall for the avoidance of doubt, mean any party excluding COMPANY and its principals, its and their AFFILIATES, and their officers, employees, servants and agents or CONTRACTOR and its principals, its and their AFFILIATES, and their officers, employees, servants and agents "WORK" shall mean all work, including each service to be rendered, related equipment or materials supplied, or products provided, and that CONTRACTOR is required to carry out in accordance with the provisions of the CONTRACT. "WORKSITE" shall mean the lands, and other places on, under, in or through which the WORK is to be performed including COMPANY owned, leased or operated premises, land drilling and production sites, or places where equipment, materials or supplies are being obtained, stored or used for the purposes of the CONTRACT. Khalda Petroleum Company / Contractor Page 20f47 3¢°Directional Equipment and Services Scope of Work: 1- SCOPE OF WORK 1.1GENERAL Description - All services ‘The work comprises the planning and execution of Directional Drilling and MWD/LWG services. The work shall be performed in accordance with the specifications contained in this section “scope of work”. It is of utmost importance to carry out all activities with minimum impact on the environment and maximum care of health and safety of all concerned, directly or indirectly, with the activities. Contractor shall undertake the work on a day rate basis (prorated). Part of the work, as and when specified hereafter, may be executed on an incentive or lump sum basis. Contractor’s work share is 15% of the total work share, however, COMPANY has the right to increase or decrease the aforementioned work share based on the performance and availability. All the standard equipment shall be continuously available in Contractor local base and available to Company on call out basis for the duration of contract within the defined call out period (24 hrs.) Changeovers from day rate to incentive or lump sum basis and vice versa shall be documented in the field tickets, stating at least the time of and reason for changeover, and signed by company and contractor representative at time it occurs. Contractor shall direct, supervise and control directional drilling and MWD/LWD services and associated operations and assumes liabilities as provided in contract, consequently contractor shall: 4- Provide personnel and equipment necessary to plan, coordinate, supervise and perform the services as described in the scope of work with in twenty four (24) hours of receiving company’s notification. 2- Supply timely the requested quantity and quality of tools and materials to perform the work. 3- Provide all the quality control documents related with supplied tools, equipments and materials. 4- Carry out, coordinate and move all or part of contractor items to and from the company supply base. 5. Provide reporting of operations as required by Company. 6- Contractor shall pro-actively monitor, evaluate. And promote the use of new technology and techniques to improve cost effectiveness and add value to the WORK. Dee Khalda Petroleum Company/Contractor Page 3 of 47 30)Directional Equipment and Services ‘Scope of Work Contractor shall be responsible for the operation rendered with Contractor’s equipment including but not limited to the rigging up, testing, running and rigging down of tools. On company request, contractor shall provide assistance to third parties involved in well operations. Upon the termination of a call out or of the contract, Contractor personnel shall prepare, pack and secure contractor items for transportation from drilling location. The Contractor shall perform the work in accordance with Company operation instructions or Contractor’s written operating instructions approved by Company, ing its own know-how and operating experience. ut Contractor shall submit to Company prior to the commencement date a written procedure for the following operations: 1. Moving of Contractor’s items, rigging up, testing, running and rigging down of tools. 2. Routine maintenance of Contractor’s items. 3. Handling, transport and storage of Contractor's items. 4. Calibration of Contractor's items. 5. Pressure testing of Downhole tools and surface equipment. 6. Operation for all Downhole tools. Estimated maximum total depth of the wells is 17,000 ft MD, and Downhole temperature is ranging from 200 to 320 Deg. F Casing Design, Hole sizes, Depth and Maximum Mud weight as the following: First Design: This design for Deep / Gas wells Hole | Casing | Expected Expected Mud Size Size MD ft weight “ppg” 17.5" 13 3/8" 3000 8.6 -9.3 12.25" 95/8" 11000 g-i1l | 8.5" a 18000 11-12 e Sy Contingency 11-12 Second Design for Gas/Oil wells in AG Area: Hole | Casing | Expected Expected Mud Size Size MD ft weight “ppg” Khalda Petroleum Company/ Contractor Page 40f 47 eeDirectional Equipment and Services L at 13 3/8" 1200 8.6 -9.3 12.25" 95/8" 3500 9.5 - 12 8.5" 7 10000 9-10 6" Ss" 13000 10.5 - 12 ‘Third Design for Oil wells: Hole Casing | Expected Expected Mud Size Size MD ft weight “ppg” 12.25" 95/8" 3000 8.6 - 9.3 8.5" en 13000, 9-12 Forth & Fifth Designs: This designs for Shallow / Oil wells Hole Casing Expected Expected Mud Size Size MD ft weight “ppg” | 1 a= 85/8" 3000 8.6 - 9.3 77/8" | 51/2" 7000 9-10 Hole | Casing ‘Max. Mud wt Size Size Moe PPE 12.25" 95/38" 3000 8.6-9.3 8.5" vial 7000 9-10 Mie Khalda Petroleum Company /Contractor ‘Scope of Work Page 5 of 47 5Directional Equipment and Services Scope of Work MARMARICA / MOGHRA. LIMESTONE BABAA 1500 SHALE. APOLLONIA 2500 LIMESTONE 13 3/8" CSG PT @ +/-3000 FT KHOMAN. 3500 | S.LIMESTONE CKALKY A/RBA SHALE AaHB UNESTONE APEC ‘SHALE A/RED 4000 UMESTONE A/REE ANHYDRITE + SHALE AURHFL SHALE A/RHF2 LIMESTONE AVREG | SHALE ‘SANDSTONE INTER: U.BAH. 6000 |BEDDED W/ LIMESTONE] AND SHALE KHARITA 7500 I Bet DAHAB 9000 ‘SH ALM DOL-A. 9500 DOLOMITE ALM DOL-B 9700 DOLOMITE i AEB-1 AEB-2 9 5/8" CSG PT @ +/-11,000 FT. AEB-3A, AEB-3C AEB-3D_ SANDSTONE INTERBEDDED aint | 10000] yr srate & SILT STONE AEB-3G gaa AEBS AEB-6 MASAJID. 13000 LIMESTONE ZAHRA 13500 | SHALE, S.ST & SLT.ST. U-SAFA 14000 |__S.ST. & SLT ST. SAFASANDSTONE | 15000 S.ST. & SLT ST. a TD. [7000 7" CSG PT @ +/-17,000 FT | wp eeDirectional Equipment and Services ‘Scope of Worle 1.1.1 Day rate scope of work - General, all services ‘The work shall be undertaken on a day rate basis (prorated) except when an incentive or lump sum basis has been agreed be company and contractor. Day rates shalll be further designed as “Operating Rate” and “Stand-by Rate” as described in price list. Contractor shall undertake: 1 2- ‘The operation, maintenance, inspection, calibration and repair of all equipment itemized in Equipment Data Sheet. Maintenance, operating and inspection procedures manuals. Manuals will include but will not necessary be limited to: a) b) ¢ a) Detailed high quality scale drawing (as separate components and as made up assemblies), the drawings will show all the constructional, operational and mechanical features and prosperities including principal and critical dimensions (ID's, OD's, lengths, drift sizes, wall thickness ~ especially critical thin wall areas), handling points and areas of thin wall shall not be subjected to torque or bending, connection type and torque requirements, part and serial numbers. All relevant tool/equipment technical data i.e. mechanical properties (burst, collapse, tensile and torque strengths and ratings), pressure rating etc. And overall operating envelop as appropriate. Details on material type (metallurgy and elastomer types) Fishing neck sizes which allow for annular clearances required for fishing operations. Running, installation, retrieval and testing procedures. Assembly make-up and testing procedures prior to shipment. To attend safety meeting with company’s and drilling contractor's representative on the safety aspects and procedures to be carried out prior to any operation and/or intervention on the well. The Directional Drilling and MWD/LWD services in accordance with company’s drilling program and as instructed by company representative. Khalda is accepting tools which manufactured at American continent (including USA, Canada, Mexico & South America), European union and Japan To record and store alll relevant well data, process, interpret and/or transmit well data in company accepted format. 7- To render assistance and advice to company and company’s representative on the methods and procedures to be applied in case of fishing contractor’s Downhole items. Company shall assume the responsibility for the fishing operations Khalda Petroleum Company/Contractor Page 7 of 47 sy) WeDirectional Equipment and Services ‘Scope of Work 8 The supervision of make-up, tallying, running and laying down of Downhole assemblies. Company shall, prior to spud in the well or commencement of operations, provide to contractor alll supporting design and information that company considers relevant to the performance and safety of operations including services provided by contractor. 1.2Directional Drilling Services - Scope of Work Contractor's day rate scope of work will be to perform directional drilling services with the directional drilling tools described in Directional Drilling Equipment section. The work shall be conducted as described in general requirement and information for all services and herein, Contractor shall undertake: 1- The operation, maintenance, inspection, calibration and repair of all equipment itemized in Directional Drilling Equipment section. 2- The directional drilling which shall include: ®- Preparation of course map and plan of each hole section including calculation of ellipse of uncertainty at significant depths (e.g. top of expected hydrocarbon zones), taking full account of creating a data for the future avoidance of well collisions. b- Propose suitable directional drilling assemblies. © Supervision of make-up and operation of directional drilling equipment specifically including: * Direct the make-up and break-out of contractor’s directional drilling equipment. * Direct the surface testing of Downhole motors. * _ Direct the orientation of the deflection tool assembly. * Direct the initial application of drilling parameters for each assembly. * Direct any variations of drilling parameters for directional control purposes. d- The taking and recording of magnetic/electronic magnetic single/multi shot surveys. The quality control and correction of magnetic survey data. £ Provide and maintain up-to-date plots (and monitor collision risk, as applicable) whilst drilling using contractor provided computer software program. Khalda Petroleum Company/Contractor Page 8 of 47 3) DeDirectional Equipment and Services Scope of Work Be aly g- Evaluate the performance of bottom hole assemblies (directional and ability to drill with optimum parameters). h- Prepare the final well course plan and vertical section and final report. i- Perform directional drilling services as specified in contract in all types of mud. The borehole directional surveying operations which shall include: * Propose suitable deviation measurement tools. * The calculation of the borehole path using the minimum curvature method and furnishing of same to company. 2.1. Directional Drilling and Surveying Program Company shall, prior to spud in the well, provide to contractor a well programme and borehole course specification together with any supporting design that company considers relevant to the performance and safety of the directional drilling and surveying operations. Contractor shall prepare and submit to company a directional drilling and surveying programme, which shall include the followings: it Directional drilling programme showing all relevant information for undertaking the operation including sequence of operations and recommended drilling assemblies, anticipated wellbore path and target tolerance. * The program shall include planning of a well path to reach and penetrate specified targets in the optimum way. The program shall also include proximity calculations with distances to other wells with and without ellipses. Three- dimensional ellipsoids are calculated using company accepted error model. The program shall include planning of all BHA to be used in the wells. The planning shall include predictions of bottom hole assembly behaviour, and shall also include calculations of BHA stresses, hydraulic parameters and critical RPM of the BHA for all drilling phases. Surveying programme showing surface location, target size and tolerance, instrument type, frequency of surveys, length of and spacing in non-magnetic drill collars. Contractor shall define the methods, and tools to be used to drill the wells in order to optimize performance. Contractor shall operate a formal process of BHA design and optimization demonstrating a structured route for continuous performance improvement. Contractor shall process a suitable BHA analysis program, which has inputs for the dip and azimuth of the formation; contractor shall be required to maintain validation of these systems in order to demonstrate continuous improvement. Khalda Petroleum Company /Contractor Page 9 of 47 3») JatDirectional Equipment and Services Scope of Work 5- Contractor shall interact with company specialists to access company bit selection and dynamics expertise to maximize drilling performance and minimize dynamics- induced losses. Contractor shall ensure its expertise is available to assist company when required. 1.2.2. Equipment specification a. Contractor shall provide directional drilling equipment as specified in Directional drilling equipment section including necessary backup equipment. b. Contractor shall provide directional drilling equipment, including storage, maintenance, spare parts, products and services, necessary for proper performance of the work in accordance with the requirements of the contract, along with necessary certificates to meet Egypt regulatory requirements, company and accepted industry standards, as specified in contract. Contractor will be responsible for maintaining spares and stock levels in appropriate quantities for the proper performance of the work. c. Contractor’s computing equipments shall be capable of handling all surveys and well plans in Egypt. 4. Contractor shall upon company’s request provide additional equipment necessary for the directional drilling operations accordingly to scope of work. ¢. Contractor shall manage the mobilization and demobilization of the various equipment and packages throughout each phase of the drilling operation, in such a manner so as to ensure an overall efficient operation. £ Contractor shall be proactive in the development of the new tools/systems as may be required for the provision of the work. If any tool, system, or size is not currently available contractor shall provide an estimated time of delivery and monthly updates detailing progress and development of such tools/systems. g. The contractor shall provide company with all technical data for each tool/equipment included but not limited to: 1- Tool Components. 2- Overall length (shoulder to shoulder). 3- OD’s for each part of equipment. 4- ID's for each part of equipment. 5- Top connection. 6- Bottom connection. 7- Connections sizes and Types for each part of equipment. 8- Operating temperature for, standard and high temperature tools 9- Adjustable Bent Housing Angle (for Steerable motors) 10- Dogleg Capability (degrees / 100 ft.) (for Steerable motors) 11- RPG (RPM) for motors Khalda Petroleum Company /Contractor Page 10 of 47 3H JitDirectional Equipment and Services Scope of Work 12- Flow rate range 13- Tool weight. 14- Bit size. 15- Normal power output. 16- Pressure drop range. 17- Normal torque. 18- Maximum stall torque. 19- Fluid guidelines, mud system, lost circulation material, H.vis pill through the tool. 1.3Formation Evaluation While Drilling (FEWD) Services - Scope Of Work 1.3.1, MWD/LWD Services - scope of work Contractor shall, as required by company, perform measurement while drilling (MWD) / Logging while drilling (LWD) Services and provide all associated equipment described in MWD/LWD Equipment section. MWD/LWD services comprise all measurements performed while drilling, including but not limited to directional drilling surveys, formation characteristics, Hole Caliber, Downhole drilling parameters and other associated activities as specified in scope of work. ‘The work includes: 1- Assist Company in the planning phase of the well with regards to optimum selection of MWD/LWD services type, tool utilization, drilling efficiency and any other relevant issue. 2- Present recommendations for MWD/LWD utilization for each well. 3- Inspection, repair, maintenance, calibration and certification of equipment. 4- Providing facilities, where such is not included in the rig design. Rig design shall be provided by company in sufficient time prior to commencement of services. 5- Providing approved storage facilities for radioactive sources. Contractor shall furnish all necessary Downhole instrument, surface and handling equipment required to provide the MWD/LWD services. The Downhole MWD/LWD tools shall measure, process, transmit and/or store the desired physical parameters. The MWD/LWD tools shall perform to specifications under normal drilling conditions as specified by the contractor and accepted by the company. As a minimum when operating in “recorded mode”, sufficient down hole power shall be provided for minimum of 300 hours of operating with all-petro-physical sensors functioning. Sufficient Downhole memory shall be available for 6000 ft (2000 m) of logged interval with all logging sensors sampling data at an average of two samples per foot. Khalda Petroleum Company /Contractor Page 11 of 47 se! yeeDirectional Equipment and Services Scope of Work Contractor shall furnish two (2) sets of Downhole tools with necessary spare parts on the drilling Rig. In case of malfunction of either set, a new back up should be made available within the mobilization time specified by contractor and accepted by company. The MWD/LWD tools can be exchanged at request from company or on recommendation from contractor which shall at all times be subject to company’s approval. Contractor shall provide surface equipment and software, with necessary spare parts, for decoding, processing and sorting of the data transmitted from the Downhole equipment and from the surface sensors. Contractor shall provide and be responsible for the Downhole signal detection and the depth sensor unless otherwise specified by company. Surface computer/printers shall be suitable for sorting data and producing printouts/plots according to format and media agreed upon with company. Display of MWD/LWD logging information must be possible on external data screens. Readout unit for display of directional survey and Downhole drilling parameters must be provided for use on the rig floor and addition one in company representative office. Based in drilling program furnished by company, contractor shall prepare and submit to company the following: ® MWD/LWD program showing all relevant information for undertaking the operation including but not limited to recommended assemblies and tool design parameters, data type, interval and update frequencies for information supplied, tool minimum operating requirements and limitation, calibration checks prior, during and after running tools, radioactive sources handling and surface equipment installation. Contractor shall obtain from company alll relevant information pertaining to the well, such as general geological character of the area, neighbouring well data, sequence expected, possible problems and evaluation requirements of the well to ensure that he is fully informed and understands the company’s requirement prior to commencement of each well. Where vibration monitoring systems are produced they shall consisting of the following as a minimum: Vibration monitoring rig floor alarm installed in the rig floor 1 ea. * Vibration monitoring system (graphic screen or other display) installed in driller dog house 1 ea. Khalda Petroleum Company /Contractor Page 12 of 47 5») keDirectional Equipment and Services Scope of Work * Vibration monitoring system (graphic screen or other display) installed in company representative office 1 ea. «Sensors installed on rig must be explosion proof. Drilling sensors, to process, display and continuously record the following parameters: a) Weight on hook sensor with output to recorder, digital display in graphic and alphanumeric. b) Stand pipe and BHA internal pressure sensors with output to recorder, digital display in graphic and alphanumeric. ©) Torque sensor with output to recorder, digital display in graphic and alphanumeric. d) Rotary speed with output to recorder, digital display in graphic and alphanumeric. 1.3.2, Geosteering service A. Design and Planning Every time a Geosteering operation is required, a preliminary study considering all the decisional factors should be carried out. The contractor must provide software packages allowing the creation of synthetic log curves, to load the geological model and to compare at well site the actual and the expected measurements, with a real time updating of the forward modelling. From a reference geological model, built using all geological information available on the area, it is possible to calculate the theoretical response of the logs along the expected well trajectory. This information shall be provided by the company to the contractor, to allow the forward modelling construction: « Environmental corrected logs (at least Resistivity/GR, plus Density/Neutron and Dipmeter, if available) from nearby wells; © Survey data from nearby wells; Formation tops and fluid contacts from the offset wells; * Structural map of the reservoir; © Geological section with the well projection; ‘¢ Survey data of the well to be grilled ‘The resulting forward modelling shall be discussed and approved by the company’s personnel involved in the project, prior to starting the Geosteering operation. B, Data Acquisition Khalda Petroleum Company /Contractor Page 13 of 47 38 MaeDirectional Equipment and Services Scope of Work ‘The data acquisition for Geosteering purposes requires: * Any appropriate LWD tool and in particular near bit and azimuthal tools; * Near bit inclination. Xt is important to highlight that the log response in highly deviated or horizontal wells is Strongly influenced by the vertical anisotropy of the formation, therefore the response is C. Data Interpretation The LWD data interpretation for Geosteering Purposes needs the support of forward modelling of the expected results, as anticipated in the above point A ~ Design and Planning, During drilling the logs acquired should be processed in rect time to allow the requirements, the contractor must provide at well site hardware and software suitable for real time data visualization/interpretation and forward model updating. 1.3.3. Other Requirements A. Accuracy of Measurements Contractor shall make a commitment to give support and co-operation to understand the nature of the respective physical measurements and to secolve any anomalies on recorded logs. B. Maintenance and Calibration of Sensors measured data to ensure those Downhole drilling parameters and formation Properties and within specifications. All the corrections shall be agreed with company. Khalda Petroleum Company /Contractor Page 14 of 47 wW MieDirectional Equipment and Services Scope of Work Contractor shall provide information regarding calibration standards, routines and tolerances, charts and/or algorithms for the application of environmental corrections to raw log data to company when requested. D. Deviation Calculations ‘The borehole curvature is to be calculated by using the minimum curvature method. Contractor shall be responsible for evaluation and validation of observations and/or estimations of the earth’s magnetic field strength, dip angle and declination as may be Tequired to perform corrections and quality control. Deflection from normal earth magnetic activity shall be reported. Deviations from these requirements shall be documented. E, Data Transmission ‘The contractor must provide fast data transmission system in order to ensure real time data transmission with required frequency to surface. Data sampling rate for the transmission purpose should be selected accordingly to the number of the curves acquired and the litho logical characteristics, in order to allow a real time petro physical analysis. F. Interface between MWD Log Data and Mud Logging Contractor’s Computer’ Interface between MWD log data and Mud logging Contractor’s Computer must be possible utilizing the WITS format and according to company’s specified updating frequency. This includes real time transfer of MWD data between contractors involved ‘and company. The specifications of Mud logging unit shall be provided by company in sufficient time prior to commencement of service. G. Personnel ‘The contractor shall supply personnel with adequate skill, acquired through an appropriate training course and with at least three (3) years of field experience in LWD and Geosteering acquisition/interpretation. It is of fundamental importance that the personnel in charge of the operation at well site should be involved in the job design planning phase, with the company’s personnel involved in the project. Image log Image log digital data shall be provided with single use interpretation soft ware or in company requested format. For requested wells contractor will provide the following: « Image log processing for stratigraphic and / or structural interpretation inchiding digital report with dip data * Magnetic resonance processing Khalda Petroleum Company/Contractor Page 15 of 47 ww) TiteDirectional Equipment and Services Scope of Work * Advanced sonic processing 1.3.4. Storage and transportation of radioactive sources Contractor shall be responsible for the following with respect to radioactive source materials: a) b) 9) d) 1 ‘Transportation of radioactive sources between contractor's base of operation and company’s points of mobilization and demobilization. Provision of suitable shipping containers for the shipping of radioactive sources between contractor's base of operations and company supply base. Provision of suitable storage containers for the storage of radioactive sources and handling at the worksite(s). Application and approval of all permits and licenses required by the local government for the transportation, storage and use of radioactive materials. Provision of radioactive survey meter to detect radiation around radioactive storage container(s) and other necessary locations at the worksite(s). Radioactive survey meter should be able to measure both gamma and neutron radiation. Contractor shall provide all required permits/licenses/approval from relevant institation/government authorities to perform this work with no addition charge or expenses to company. 4Additional Scope of Work Contractor will upon reasonable notice from company, implement the additional work so requested. Company's request however will only be related to such work as specified in contractor’s price list: Other services listed in contractor's price list of this contract 14.1 1.4.2 1.4.3 CONTRACTOR shall in accordance with scope of work, carry out all of its obligations under the CONTRACT and provide all management, supervision, personnel, materials and equipment, (except materials and equipment specified to be provided by COMPANY), plant, consumables, facilities and all other things whether of a temporary or permanent nature, so far as the necessity for providing the same is expressed with reasonable clarity in the CONTRACT. CONTRACTOR shall carry out all of its obligations under the CONTRACT and Shall exeoute the WORK with all due care and diligence and with the skill to be expected of a reputable contractor experienced in the types of work to be carried out under the CONTRACT. CONTRACTOR shall take full responsibility for the adequacy, stability, health, safety and environmental protection of all its operations and methods necessary Khalda Petroleum Company /Contractor Page 16 of 47 sx! DikeDirectional Equipment and Services, ‘Scope of Work for the performance of the WORK and shall keep strictly to the provisions of COMPANY Health, Safety and Environment, 1.4.4 Except to the extent that it may be illegal or physically impossible or create a hasard to safety CONTRACTOR shall comply with COMPANY's instructions and directions on all matters relating to the WORK. 14.8 In order to ensure that performance and completion of the WORK are not delayed on impeded CONTRACTOR shall be responsible for the timely provision of all matters referred to in the CONTRACT, for the timely request of COMPANY provided materials, services and facilities. 1.4.6 COMPANY reserves the right to appoint other THIRD PARTY service providers for Work or services to be performed coincidently with the WORK at the WORKSITE. CONTRACTOR shall afford other THIRD PARTY service providers reasonable cccess and opportunity for the performance of their work or contracts and shall cooperate fully with them 1.4.7. CONTRACTOR shall be responsible for the programming of the WORK. 1.4.8 On completion of the WORK or any portion thereof and subject to any cadifications set forth in Scope of Work, CONTRACTOR shall without delay clear ead remove all equipment and materials owned or in the custody and control of CONTRACTOR including debris, thereby leaving the WORKSITE in a clean, tidy and safe condition consistent with the provisions of Company Health, Safety and Environment, Nothing contained herein shall oblige CONTRACTOR to dispose of havardous waste unless expressly stated otherwise. Notwithstanding the foregoing, nothing in this CONTRACT shall obligate the CONTRACTOR to raise and recover any itern of sunken equipment whether lost overboard in transit or on Jocation unless CONTRACTOR is required by statute or regulation to raise and qecover such item or where COMPANY requires such item to be recovered as interfering with COMPANY's future operations at the location. 1.4.9 Surplus COMPANY material in the possession of CONTRACTOR on completion of the WORK shall be disposed of by CONTRACTOR in accordance with the instructions of COMPANY REPRESENTATIVE. 1.4.10 Contractor shall provide a fast, effective and efficient problem / failure investigation service that provides rapid feedback to company on the likely cause of operational problem(s). This service will include a well documented root cause analysis with service or equipment failure mode identified, together with a means af cementing. ant foriher work required! in cteek GSA) solution, or further equipment design life and performance studies to be undertaken to ensure @ satisfactory solution. 1.5Force Majeure Khalda Petroleum Company /Contractor Page 17 of 47 sa wtDirectional Equipment and Services Scope of Work 1.5.1 1.5.2 1.5.3 1.5.4 FISIS} Neither COMPANY nor CONTRACTOR shall be responsible for any failure to fulfil any term or condition of the CONTRACT (other than any obligation to make payment when due for WORK already carried out) if and to the extent that fulfilment has been delayed or temporarily prevented by a force majeure occurrence, as herein defined, which has been notified in accordance with this Clause and which is beyond the control and without the fault or negligence of the PARTY affected and which, by the exercise of reasonable diligence, the said PARTY is unable to provide against. For the purpose of this CONTRACT, force majeure as defined in Clause 1.6.1 shall be considered to include, but not be limited to, the following: (a) Riot, war, invasion, act of foreign enemies, hostilities (whether war be declared or not), acts of terrorism, civil war, rebellion, revolution, insurrection of military or usurped power; (b) _ Ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel or radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof, (c) Earthquake, flood, fire, explosion, Acts of God and/or other natural physical disaster; but excluding weather conditions as such, regardless of severity, for which operational contingency plans exist; (@)__ Strikes at a national or regional level or industrial disputes at a national or regional level, or strikes or industrial disputes by labour not employed by the affected PARTY its SUBCONTRACTORS or its suppliers and which affect a substantial or essential portion of the WORK; (ec) Maritime or aviation disasters; (9) Changes to any general or local Statute, Ordinance, Decree, or other Law or any regulation or bye-law of any local or other duly constituted authority or the introduction of any such Statute, Ordinance, Decree, and Law, regulation or bye-law. In the event of a force majeure occurrence, the PARTY that is or may be delayed in performing the CONTRACT shall notify the other PARTY without delay giving the full particulars thereof and shall use all reasonable endeavours to remedy the situation without delay. Save as otherwise expressly provided in the CONTRACT, no additional payments of whatever nature shall be made in respect of a force majeure occurrence. Following notification of a force majeure occurrence in accordance with Clause 1.6.3, the PARTIES shall meet at appropriate intervals to agree on a mutually Khalda Petroleum Company / Contractor Page 18 of 47 i JieDirectional Equipment and Services Scope of Work: acceptable course of action to minimize the impact and effects of such an occurrence to either PARTY. 1.5.6. In the event that a force majeure occurrence causes the WORK to be halted for a period longer than thirty (30) days, the PARTIES shall meet and agree to: (e) Extend the term of the CONTRACT with appropriate adjustments in remuneration to compensate for delayed completion, or {b) Re-schedule the WORK. Failing agreement either PARTY shall be entitled to terminate the CONTRACT in accordance with termination section. 1.6Contractor to Inform Itself 1 CONTRACTOR shall be deemed to the extent reasonably possible to have satisfied itself, before entering into the CONTRACT, as to the extent and nature of the WORK including but not limited to the services, personnel, materials and equipment, plant, consumables and facilities required for the WORK, the correctness and sufficiency of the rates and prices entered in Remuneration section, general and local conditions, and all other matters which could affect progress or performance of the WORK. 1.6.2 Any failure by CONTRACTOR to take account of matters, which affect the WORK, will not relieve CONTRACTOR from its obligations under the CONTRACT. 1.6.3 CONTRACTOR shall check all TECHNICAL INFORMATION in accordance with good oilfield practice and advise COMPANY of any errors or inconsistencies it finds. COMPANY shall resolve those errors or inconsistencies as soon as reasonably possible and CONTRACTOR shall thereafter be entitled to rely on all TECHNICAL INFORMATION furnished to CONTRACTOR by COMPANY (as corrected by COMPANY if applicable). 1.6.4 The COMPANY shall without undue delay, provide to CONTRACTOR all information affecting the WORK which CONTRACTOR reasonably requires from COMPANY in order to properly perform the WORK in accordance with the CONTRACT. 1.7Contractor to Inform Company 1.7.1 CONTRACTOR shall notify COMPANY without undue delay of all things, which in the opinion of CONTRACTOR appear to be deficiencies, omissions, contradictions or ambiguities in the CONTRACT or conflicts with applicable law. COMPANY shall teview these items and issue the necessary instructions before CONTRACTOR proceeds with any part of the WORK affected. Khalda Petroleum Company /Contractor Page 19 of 47 3 WeeDirectional Equipment and Services Scope of Work 1.7.2 In addition to the requirements of Health, Safety and Environment, CONTRACTOR shall notify COMPANY without delay of any health, safety and environmental incidents and accidents that occur in connection with the carrying out of the WORK. CONTRACTOR shall also notify COMPANY of any other incidents which occur which might affect the carrying out of the WORK or the CONTRACT. 1.7.3 CONTRACTOR shall notify COMPANY immediately of any proposed or actual stoppages of work, industrial disputes or other matters affecting or likely to affect the carrying out or completion of the WORK. When requested by COMPANY, CONTRACTOR shall also supply to COMPANY other information in connection with the WORK relating to industrial relations. 1,8Assignments and Subcontracting 1.8.1 Assignment (2) COMPANY is entitled to assign the CONTRACT or any part of it or any benefit or interest in or under it to any AFFILIATE of COMPANY. In addition, COMPANY may make any such assignment to any other THIRD PARTY but only with the prior agreement of CONTRACTOR which shall not unreasonably be withheld or delayed. (b) CONTRACTOR undertakes that, in the event of any assignment described above, it will execute without delay a formal assignment of interest in the CONTRACT to the relevant party, to be effective upon the written assumption by the assignee of all obligations of COMPANY under the CONTRACT. () CONTRACTOR shall not assign the CONTRACT or any benefit or interest therein, whether in whole or in part without the prior written approval of COMPANY, which approval shall not be unreasonably withheld or delayed. 1.8.2 Subcontracting (a) | CONTRACTOR shall not SUBCONTRACT the whole of the WORK. (b) CONTRACTOR shall not SUBCONTRACT any part of the WORK without the prior approval of COMPANY which approval shall not unreasonably be withheld or delayed. () CONTRACTOR shall ensure that the SUBCONTRACTOR is legally qualified to operate in any jurisdiction in which it performs any portion of the WORK, is financially sound, and possesses the qualifications and expertise required to perform the WORK with skill and experience. CONTRACTOR’s application for approval to SUBCONTRACT must include relevant information on the proposed Khalda Petroleum Company /Contractor Page 20 of 475) DeDirectional Equipment and Services ‘Scope of Work SUBCONTRACTOR, the part of the WORK to be subcontracted, and any other relevant details requested by COMPANY (@) _ Before entering into any SUBCONTRACT as provided in 1.9.2 (a), COMPANY shall be given an adequate opportunity to review the form of SUBCONTRACT, the choice of SUBCONTRACTOR, the part of the WORK included in the SUBCONTRACT and any other relevant details requested by COMPANY. Where COMPANY will be required to reimburse to CONTRACTOR the sum paid to the SUBCONTRACTOR, any procedure for award of such SUBCONTRACTS included in the CONTRACT shall be followed and COMPANY shall be entitled to review all relevant aspects of the SUBCONTRACT. (c) No SUBCONTRACT shall bind or purport to bind COMPANY. CONTRACTOR shall ensure that any SUBCONTRACTOR shall be bound by and observe the provisions of the CONTRACT in so far as they apply to the SUBCONTRACT. Each SUBCONTRACT shall expressly provide for CONTRACTOR's unconditional right of assignment of the SUBCONTRACT to COMPANY in the event that COMPANY terminates the CONTRACT or the WORK. () CONTRACTOR shall be responsible for all work, acts, omissions and defaults of any SUBCONTRACTOR as fully as if they were work, acts, omissions or defaults of CONTRACTOR. 2- Service and Equipment Requirement and Specifications 2.1, General Requirements (all services) Contractor shall provide all directional drilling, MWD/LWD, safety and associated equipment as per Equipment data sheet and as necessary to successfully perform the directional drilling and MWD/LWD services in accordance with the well programme, inclusive of crossovers to other contractor Downhole tools (drill collars, HWDP, etc.) as required. Contractor shall ensure sufficient back-up equipment on the drilling rig to guarantee high quality, uninterrupted service. Without limitation to the generality of the foregoing, the quantities and items of the contractor’s equipment shall at the commencement data be in accordance with equipment listed in equipment data sheet. All the equipment shalll be in accordance with applicable documents. Notwithstanding the above, company may require contractor to alter the quantities and items of the contractor's equipment, increase or decrease the number of items and/or change the item of the contractor’s equipment. Contractor shall only supply items to the company against a call-out order from the nominated company representative. Khalda Petroleum Company/Contractor Page 21 of 47 MiteDirectional Equipment and Services ‘Scope of Work Other Downhole equipment as crossovers from contractor's Downhole tools to company’s and/or other company contractor's Downhole equipment (drill collar, HWDP, etc.) not Specified in Equipment data sheet shall be considered part of contractor Downhole equipment. Contractor shall ensure, as minimum, lifting subs and the crossovers to all ‘API connections for tubular commonly used in specified hole sizes at no charge to company. Contractor shall provide all materials including but not limited to electric cables, certified hoses, piping and connections required to receive utilities (fuel, water and lectrical power) supplied by company or other contractor. It is contractor's responsibility to ensure that contractor items are compatible with the utilities supplied. Contractor local base shall be capable of storing, maintaining, inspecting, repairing and overhauling contractor’s equipment. Contractor shall provide any necessary office facilities for contractor’s personnel at contractor local base as the followings: 1. Repair and maintenance (R & M) facilities A) The services to be provided by contractor shall include as a minimum: a. Coordination of all equipment, logistics and transportation requirements b. Storage and handling of equipment and spare parts c. Equipment preparation. d. Equipment inspection and testing. e. Repair & maintenance. B) Contractor is responsible for determining the most cost effective balance between back-up equipments requirements and the level of R & M and calibration facilities required. contractor's R & M facilities must be capable of performing mechanical and all board level servicing for all equipment likely to be used in the performance of the work including but not limited to the followings: a, Rotary steerable « Inspection, testing and repair of sub-assemblies. 3 Flow loop and bench testing facilities for command confirmation and systems testing prior to shipping. b. Positive displacement motors Checking of bearing gap clearance Checking of rotor/stator fit Complete assembly and disassembly of motor. Inspection, testing and repair of sub-assemblies. i.e., stator, rotor, bearing, smaller subs. Khalda Petroleum Company /Contractor Page 22 of 47 <¥ WeeDirectional Equipment and Services Scope of Work ¢. Mechanical + Assembly and disassembly of other collars (i.c., complete MWD subs/assembles) * Assembly / disassembly, inspection and testing of sub-assemblies (ie. basic pulser replacement) * Complete Assembly and disassembly of entire MWD and LWD tool. * Inspection, testing and repair of sub-assemblies, ic., advanced MWD pulser repairs. 4. Electrical Basic functional and verification testing of LWD subs and probe strings. Advanced LWD subs and probe testing. Exchange of broken/damaged harnesses and connectors. Testing at temperature. PCB (board) replacement. Opening of probes and LWD subs to board level. Testing of boards and exchange of boards. e. Calibration ee ee eoe + Routine calibration of nuclear tools including GR and Neutron-Density tools * Routine calibration of resistivity tools * Routine calibration of pressure measurement tools including FPWD and PWD tools. Prior to the effective date of the contract, contractor shall have developed a detailed management plan to ensure that sufficient equipment and personnel resources are available at all times to service company operations. Contractor shall also provide any item(s) of equipment, spare parts, supplies and materials required to successful perform directional drilling, directional surveying, MWD/LWD operations, which are not specified detailed in this scope of work, but which are required for normal operations according to contractor detailed technical data sheet and operations manual(s). 2.1.1, Acceptance (All services) Performing the work in accordance with the parameters specified in the programme shall be subject to acceptance by company. Contractor shall maintain written records of the values of the parameters mentioned. These records shall be submitted to company for signature of company representative on drilling rig; such signature shall confirm that values fulfilled requirements of the Programme. This documented, signed acceptance of fulfilment by company representative on location will be recorded at a frequency which is adequate for realistic control of the parameter in question, and will be a necessary element of supporting documentation for payment of invoices. Khalda Petroleum Company Contractor Page 23 of 47 gw MeDirectional Equipment and Services Scope of Work Contractor shall have the right to select the equipment and/or operating parameters for those items/operations detailed in the contract as long as these are in accordance with company specifications and agreement. If contractor’s preferred equipment cannot fulfil the specified drilling section program (flow rate, string RPM, etc.) or contractor’s equipment has shown bad run records, the company shall have the right to specify another equipment from a third party. Company has the right at any time to modify the well programme, additional work resulting from such modification shall be undertaken on a day rate basis, unless otherwise agreed between company and contractor. 2.1.2. Specific The following work shall be completed only after the following engineering job results (technical proposals) are accepted by company: * Downhole drilling assemblies; * Surface handling of contractor’s equipment; * Fishing of Downhole drilling assemblies; * Circulation through Downhole assemblies for well control and cure losses purposes. 2.1.3. Quality Assurance All activities carried out by contractor in relation to the work shall be performed in accordance with applicable documents and relevant requirements in contractors Quality Assurance System. Company or any authorized representative may carry out inspections and tests related to contractor’s quality assurance at any time during the term of the contract. Contractor shall fully cooperate with all such inspection and tests. Contractor shall be responsible for valid certification in accordance with applicable laws, regulations and accepted industry standards for all relevant equipment for the duration of the contract. 3- Personnel Contractor shall provide all personnel required to perform the work effectively and efficiently as required by this contract. Said personnel shall be available as and when required from the commencement data onward. Notwithstanding the provisions of the contract, company may require contractor to discuss the number and categories of contractor personnel and subcontractor personnel as set forth in this section of scope of work - number and categories of personnel herein, and increase or decrease the number of personnel. ‘The contractor shall at all time be responsible for ensuring that the personnel provided to perform the service are appropriately qualified, hold valid certifications, are ite. Khalda Petroleum Company Contractor Page 24 0f 47 931Directional Equipment and Services Scope of Work adequately trained and that the validity of such qualification, certifications and training are maintained throughout the contract period. CONTRACTOR undertakes to provide sufficient personnel & supervise such Personnel at all times to ensure performance and completion of the WORK in accordance with the provisions of the CONTRACT. All personnel employed on the WORK shall, for the work they are required to perform, be competent, properly qualified, skilled and experienced in accordance with good industry practice. CONTRACTOR shall verify all relevant qualifications of such personnel. This includes, but is not limited to, CONTRACTOR’s: a) Site based personnel, b) Shore base / shop personnel who prepare equipment and materials pre-job, ©) QA/QC personnel, d) HSE personnel, e) Logistics personnel, f) Technical support staff. Where CONTRACTOR’s key personnel are specified in the CONTRACT, they shall not be replaced without prior COMPANY approval which shall not unreasonably be withheld or delayed. Any replacement shall work with the person to be replaced for a reasonable handover period. CONTRACTOR shall maintain full and up to date records of its personnel employed on the WORK and register all periods worked offshore by its personnel and make records available to COMPANY if or when required. CONTRACTOR shall be solely responsible for and shall meet all costs incurred in connection with the employment and administration of its personnel, local or otherwise, together with all necessary and routine medical services to be provided for its personnel, and all other matters relating thereto, including making all travel arrangements (reservations, onshore transport, lodging, meals, maintenance, etc) except as set out in Scope of work, obtaining all necessary passports and visas (and renewals thereof) and all to satisfy the requirement of all applicable laws, rules, regulations and decrees of any governmental or regulatory body having jurisdiction over its WORK. CONTRACTOR shall also be solely responsible for the timely payment of wages, salaries and allowances for its personnel including the withholding of any taxes required by any governmental or regulatory body having jurisdiction over the WORK and/or the WORKSITE. CONTRACTOR shall make and file all returns and reports in connection therewith and account thereafter to the appropriate authorities. CONTRACTOR agrees to release, defend, indemnify and hold COMPANY harmless from and against any and all claims, liabilities and expenses of any nature whatsoever resulting from the CONTRACTOR’s failure, or of any failure of its SUBCONTRACTOR(s), to pay such Khalda Petroleum Company /Contractor Page 25 of 47 gw aeDirectional Equipment and Services ‘Scope of Work obligations. Except as otherwise provided herein, CONTRACTOR shall be responsible for all matters and costs associated with rest periods for its personnel including all crew changes which may take place during the period of the WORK. CONTRACTOR is responsible for ensuring that all personnel are properly rested in order to carry out the WORK in a safe, efficient and environmentally responsible manner. CONTRACTOR shall, as its own expense, provide its personnel with all necessary protective clothing and safety equipment suitable for the working conditions. For duty offshore/onshore such clothing/equipment shall be in accordance with statutory requirements. CONTRACTOR shall ensure that such key personnel and supervisory personnel of CONTRACTOR and SUBCONTRACTORS shall read, write and speak fluent English. CONTRACTOR shall be as responsible for any WORK performed by any CONTRACTOR agency personnel and by any other person provided by CONTRACTOR in connection with the WORK as if the WORK was performed by the CONTRACTOR’s employees. CONTRACTOR shall ensure that all employees of CONTRACTOR and any SUBCONTRACTOR engaged in the performance of the WORK comply with applicable laws including immigration laws and where required are in possession of a valid work permit, travel permits, for the duration of the CONTRACT. When requested, details of such work permits shall be submitted to COMPANY. COMPANY may verbally or in writing instruct CONTRACTOR to remove from the WORKSITE any CONTRACTOR personnel engaged in any part of the WORK who in the reasonable opinion of COMPANY is either: (2) Incompetent or negligent in the performance of their duties; or (b) Engaged in activities that are contrary or detrimental to the interests of COMPANY; or (©) Not conforming with relevant safety procedures described in Health, Safety and Environment section or persists in any conduct likely to be prejudicial to safety, health or the environment. CONTRACTOR shall remove or lawfully secure such removal of any such person forthwith from the WORKSITE. COMPANY shall state the reason for such removal in a subsequent written instruction if requested by CONTRACTOR. CONTRACTOR shall provide a suitable replacement for any such person within twenty four (24) hours or longer time as may be agreed by COMPANY. — Hite Khalda Petroleum Company Contractor Page 26 of 47 3Directional Equipment and Services ‘Scope of Work Any person removed for any of the above reasons shall not be engaged again in the WORK or on any other work of COMPANY without the prior informed approval of COMPANY CONTRACTOR shall forthwith at its cost and expense replace any such person removed, with such replacement being a person qualified and capable of performing in an efficient manner the duties of any such person being replaced. This Clause shall also apply to CONTRACTOR’s and SUBCONTRACTOR’s personnel leaving of their own volition. CONTRACTOR shall take all requisite precautions and use its best endeavours to prevent any riotous or unlawful behaviour by or amongst any of CONTRACTOR’s personnel. For the personnel working at rig site, the following courses are requested: Fire Fighting All personnel must receive training in basic fire fighting. First Aid All personnel must receive training in basic First Aid. Safety All personnel shall be trained with safety procedures, H2S and well control basics. Good Health Certificate Contractor shall supply, upon company request, certificate of good health, qualification and competence of each employee assigned to special works according with local laws and regulations. ‘The personnel shall be in full knowledge of the applicable procedures and operating instructions and must able to speak, read and write the language indicated in the “personnel qualification card” Contractor shall provide to company the professional curricula for all personnel he intends to use, indicating background, training and work experience. From contract commencement data onward, before any operative personnel is replaced, contractor shall send to company updated professional curriculum of said substitute. 1 3,1 Company and Contractor Representatives 3.1.1 General (a) Such representatives, or delegates appointed in accordance with the provisions of this Clause, shall be readily available to enable both Khalda Petroleum Company /Contractor Page 27 of 47 -xé teDirectional Equipment and Services Scope of Work 3.1.2. fa) (b) ( (a) fe) 3.1.3, (a) (b) (co) (a) C) COMPANY and CONTRACTOR to discharge their obligations under the CONTRACT. Company Representative COMPANY REPRESENTATIVE shall at all times have complete access to the WORKSITE for the purpose of observing and inspecting the WORK performed by CONTRACTOR. ‘The presence of and the observation and inspection by the COMPANY REPRESENTATIVE at the WORKSITE shall not relieve CONTRACTOR from it’s obligations and responsibilities under this CONTRACT. COMPANY may change COMPANY REPRESENTATIVE at any time. COMPANY REPRESENTATIVE has no power to amend this CONTRACT or to relieve CONTRACTOR from any of its obligations under this CONTRACT. ‘The failure of COMPANY REPRESENTATIVE to inspect, observe or reject an faulty work , or otherwise to exercise any function entrusted to him, shall not be deemed a waiver from the COMPANY for its rights and shall not release CONTRACTOR from it’s obligations under the CONTRACT nor shall it imply any acceptance by COMPANY of faulty WORK. Contractor Representative CONTRACTOR shall designate and keep during the term of this CONTRACT or any extension thereafter a competent representative, acceptable to COMPANY, to be available at the WORKSITE within twenty four (24) hours upon request of COMPANY. CONTRACTOR REPRESENTATIVE shall keep a copy of this CONTRACT and all other information in connection with the performance of the WORK. CONTRACTOR agrees to inform COMPANY immediately in writing of the name of CONTRACTOR REPRESENTATIVE and of any changes thereof. CONTRACTOR REPRESENTATIVE shall have full authority to represent CONTRACTOR in all matters concerning the performance of the WORK under his supervision. Such authority shall include the power to agree with and to approve the settlement of all claims. Any communication given in writing to CONTRACTOR REPRESENTATIVE by COMPANY shall be considered as having been given to CONTRACTOR. 3.1.3.1 Contractor services coordinator a) Evaluate pre-well planning to ensure safest well trajectory has been planned, Khalda Petroleum Company /Contractor Page 28 of 47 35 ikeDirectional Equipment and Services ‘Scope of Work and that all tools required to achieve trajectory are included in well plan. b) Are competent in the safe supervision of bottom hole assemblies, sub assemblies and drill string construction. °) Are trained in the use of company approved well planning, drilling engineering and survey management software. d) Are competent to recommend drilling parameters associated with the well construction process. These include WOB, pump pressure, RPM, etc, e) Are competent to recommend drill string design, bit selection, and specialty product applications. 3.1.3.2 Contractor directional drillers a) Evaluate pre-well planning to ensure safest well trajectory has been planned, and that all tools required to achieve trajectory are included in well plan. b) Are competent in the safe supervision of bottom hole assemblies, sub assemblies and drill string construction. °) ‘Are trained in the use of company approved well planning, drilling engineering and survey management software. d) Are competent to recommend drilling parameters associated with the well construction process. These include WOB, pump pressure, RPM, etc, ©) Are competent to recommend drill string design, bit selection, and specialty product applications. n) ‘Are competent in the calculation of wellbore position and its relevance to any adjacent wells. 2) Are competent to select the correct bit for any specific application, BHA drive and drilling environment. h) Are competent to efficiently operate and maximize the operation all down hole drilling systems such as positive displacement motors, rotary steerable systems, adjustable gauge stabilizers and other down hole drilling system 3.1.3.3 Contractor well planner a) Well planning and trajectory design b) BHA design and optimization c) Torque and drag modelling of BHAs, drill string and casing strings ) Drill string vibration mitigation and management ¢) Well bore survey procedures, anti-collision and conductor slot utilization 4) Maintain of directional drilling and survey data on company data base. 3.1.3.4 Contractor LWD/MWD Engineer a) Are trained and certified for work with nuclear sources, and promotion of safe handling practices at the worksite. b) Are radiation protection supervisor certified c) Are competent in the interpretation of all logs acquired and able to QC logs prior to dispatch to company. ©) Are competent in trouble shooting technical problems that may arise at the Khalda Petroleum Company /Contractor Page 29 of 47 os MieDirectional Equipment and Services Scope of Work worksite. 2 3.2, Number and Categories of Personnel Contractor shall ensure a reasonable and regular crew change schedule for all contractor and subcontractor rig based personnel, and shall provide all such personnel with a sufficient and reasonable number of rest days before being required to resume their rig based duties. Contractor’s call-out personnel on the drilling rig shall, if necessary, be prepared to work from time to time on a 24 hours per day as required basis. Contractor shall have available, from the commencement date, sufficient personnel to perform the work that shall include as a minimum the number and categories of personnel as specified herein: 3.2.1. Contractor’s Call-Out Personnel Available at Contractor’s Local Base A. Directional drilling services Personnel Category Number of Number of Personnel Personnel Required on Required on Rig Contract Site eT Lead Directional Drilling | On site or call- | As required As required Engineer out Second Directional Drilling | On site or call- | As required As required Engineer out Specialist Dir. Drilling | On site or call- | As required. As required Engineer out Directional Surveying | On site or call- | As required As required Engineer out (Gyro and Multi shot) Lead Rotary _ Steerable | On site or call- | As required As required Directional driller (All| out assemblies inc. RSS) Second Rotary Steerable | On site or call- | As required As required assemblies inc. RSS) Directional driller (All| out Khalda Petroleum Company/ Contractor Wee Page 30 of 47 ayDirectional Equipment and Services Scope of Work Wire line unit operator On site or call-| As required As required out Performance Motor | On site or call- | As required ‘As required Engineer out ‘Turbine Engineer On site or call- | As required As required out Ander Drift Engineer On site or call- | As required As required out Adjustable Stabilizer | On site or call- | As required As required Engineer out B, MWD/LWD Services Personnel Category Number of Number of Personnel Required | Personnel Required on Contract on Rig Site a MWD Engineer On site or call-out As required 2 (Two) MWD/LWD On site or call-out | As required 2 (Two) Engineer Geosteering On site or call-out As required As required Engineer Specialist Engineer | On site or call-out _| As required As required Additional personnel may be provided as required by the contractor and/or company for operational or other reasons. The requirement for such additional personnel must be agreed to in advance. 3.2.2, Contractor’s Personnel Available at Contractor’s Local Base Personnel Category | Number of Work Rotation Personnel on Contract Khalda Petroleum Company/Contractor Page 31 of 47 53 keDirectional Equipment and Services Scope of Work Base Manager Local Base | 1 (One) Tenderer to specify Directional Drilling | Local Base | 1 (One) ‘Tenderer to specify Coordinator MWD/LWD Coordinator | Local Base__| 1 (One) Tenderer to specify ‘Technician Local Base _| As required Tenderer to specify Other Personnel Local Base _| As required ‘Tenderer to specify A personnel plan may be requested from time to time for various activities (e.g., large development projects). These personnel plans may include - but not be limited to ~ number of personnel by category required to discharge all duties needed to complete the work; organization charts; manner in which any applicable local content requirements will be satisfied; and other items that may be specified. 3.3. Definitions of Work and Responsibilities (for all services) 3.3.1. Field Engineer An individual with characteristics or abilities gained through training courses and work experience as specified in section 3.3 - minimum qualifications/experience, which enable him to perform the service required, in accordance with documented procedures and operating instructions. He shall also be able to perform in the field basic equipment maintenance and adjustments. In addition to supervision of equipments, the field engineer shall; © Operate computer programs based on drilling location. * Upon arrival on rig site verify the current inventory and condition of readiness of all contractors’ equipment. © Supervise the handling and storage of all contractors’ equipment. * Maintain an inventory of all contractors’ equipment and together with company’s representative, initiate such transport documentation of equipment to and from the drilling rig as may be required. * Gauge and measure the dimension of all components of all bottom hole assemblies prior to each trip in hole (including bit trips) and maintain good records thereof, © Upon departure from the drilling location, present to company’s representative a current inventory and statement of readiness of all contractors’ equipment. Khalda Petroleum Company /Contractor Page 32 0f47 9Directional Equipment and Services ‘Scope of Work 3.3.2. Service Coordinator An individual with sufficient training and related experience or a senior field engineer with work experience as specified in Minimum Qualifications/Experience 3.3 section, which enable him to lead the service crew, to operate the service control, to evaluate and document the conformance of the service performed, according with documented procedures and operating instructions. ‘The contractor, with approval from company, will develop and deploy a program to maximize savings at the work site by employing multi-skilled personnel and thereby reducing the number of personnel required to an absolute minimum. Such reductions shall not at any time compromise safety, efliciency, or quality. ‘The service coordinator shall be assigned to this contract and shall be continuously available to company. ‘The duties of the service coordinator shall include, but not be limited to: Liaison with company * Production of well plans as directed by and to the specification of company. « Preparation of such reports and large format plots as may be required by company. * Supervision and coordination of all day-to-day operations related to service on the drilling units. ‘The service coordinator shall be specifically qualified and experienced in: * Use of computer software for the specific service, planning and inventory system * Supervision and coordination of all operations related to the service. Contractor may be required to provide co-located engineering or technical support in company’s local offices. “Co-located” support is defined as those personnel working on company operations and located in one or more of company’s various local offices. Contractor staff designated for such positions will be pre-qualified and approved by company. Such contractor staff is expected to perform as members of multi-discipline company teams, with shared accountability for team performance. 3.4, Minimum Qualifications/Experience Contractor key personnel shall have, as a minimum, the following Qualifications/ Experience: Personnel Company Requirements Khalda Petroleum Company Contractor Page 33 of 47 33 DikeDirectional Equipment and Services. Scope of Work All Services | Base Manager 10 Years _ relevant experience Directional | Lead Directional Drilling Engineer/ RSS|5 Years related Drilling Service | Engineer experience of which 3 years in Directional Drilling Services Second Directional Drilling Engineer / RSS}3_ Years _relevant Engineer experience Directional Surveying Engineer 5 Years related experience of which 3 years in Directional Surveying Service Directional Drilling Coordinator 10 Years _related experience of which 5 years in Directional Drilling Services Performance Motor / Turbine Engineer 3 Years _—_ relevant experience MWD/LWD | MWD/LWD Engineer 5 Years _relevant experience Service Geosteering Engineer 5 Years related experience of which 2 years in Geosteering Service MWD/LWD Coordinator 10 Years related experience of which 5 years in formation evaluation Services 4- Contractor Equipment, Supply and Facilities 4.1 Equipment on Rental Basis Within 24 hours from COMPANY calls the following services as specified in the technical specification shall be provided by contractor on call out basis for company’s operations Khelda Petroleum Company /Contractor pike Page 34 0f47 ofDirectional Equipment and Services Scope of Work: on land rigs serving all company concessions to successfully perform the services in accordance with the well programme. Directional Drilling Equipment Rotary Steerable System Directional Surveying Equipment Down Hole Directional Surveying Ancillary Equipment MWD (Measurements While Drilling) / LWD (Logging While Drilling) Equipment and services F. Geo steering Services G. Consignment items H. Mud Turbine BOODP Within (4) four weeks from COMPANY calls the following services as specified in the technical specification shall be provided by CONTRACTOR on call out basis for COMPANY'S operations on land rigs serving all company concessions. CONTRACTOR'S Equipments and personnel shall comply with the technical and commercial specifications. 4.2 Utilities Contractor shall provide all materials including but not limited to electrical cables, certified hoses, piping and connections required to receive utilities (fuel, water and Glectrical power) supplied by company. It is contractor's responsibility to ensure that contractor items are compatible with utilities supplied. 4.3 Operational Facilities Contractor local base shall be capable of storing, maintaining, inspecting, repairing and overhauling contractor's equipment. Contractor shall provide any necessary office facilities for contractor personnel at contractor local base. 4.4 Supply of Equipment and Materials For all Services Contractor shall ensure that safe handling information is available for all tools and equipment to be used. 4.4.1 The contractor shall maintain a warehouse and workshop facility for storage and servicing of all equipment and supply items. All items are to be stored on facks with appropriate corrosion and shock protection. The contractot shall inspect all equipment and supply items on arrival at the contractor’s facility and again prior to despatch to the company. The contractor shall maintain sufficient tools and personnel to strip down and redress all equipment. The sentractor shall permit authorised company personnel to enter its premises at Usual working hours for the purpose of checking stocks held by the contractor. Khalda Petroleum Company Contractor Page 35 of 47 yf WeeDirectional Equipment and Services Scope of Work: 4.4.2 The equipment and supply items shall be manufactured, tested and supplied as appropriate according to scope of work. The company reserve the right to arrange for third party inspection, if deemed necessary. 4.4.3 The contractor shall stock equipment and supply items and replenish this stock as necessary to meet the company’s forecast requirements. 4.4.4 The contractor shall inspect and test equipment and supply items as required, to ensure compliance with the scope of work and applicable documents/ standards. 4.4.5 Contractor shall create and implement a “Total Quality Management” process or use an existing approach for the process of recording and reporting the history of tools and equipment from procurement to end use. Features of system shall include: * Capable of Audit * Record full traceability from point of manufacturer with material test reports and test certificates, through manufacture, procurement, and subsequent service life. Ability to manage and control stock levels. Identifies items under repair as potential stock. * Ability to reserve or allocate items in stock for specific well service / completion requirements and subsequently complete transfer and amend stock level. © Record and display tools and equipment in specific generic groupings for ease of reviewing availability. * Ability to record tool or equipment history by well. ® Show the well file as the final reconciliation for well costs with a summary statement showing all chargeable items consumed and associated service costs. The final reconciliation shall be submitted with contractor's invoice to company. 4.4.6 In the event the contractor is aware of a delay or that a delay may arise in the availability of equipment and/or supply items, the contractor shall give timely advice to the company of the details of the delayed items and the remedial action being taken. However, the contractor shall ensure that the reserve stocks held by it are such that shipping and manufacturing delays will not cause stock-outs. Notwithstanding the above, should the contractor be unable to meet the required equipment and/or supply items on-site date as specified on company’s call-out order, or make available from its usual source or due to logistical delays, it shall advise the company immediately and make Khalda Petroleum Company Contractor Page 36 of 47 3 Mikescope of Work. pirectional Equipment and services, arremgements to SURE the company specification as defined ‘against the agreed the specified period. from another source of the same rice list within price as defined in P 4.4.7 The contractor’s storaet facilities shall be adequate for the proper care of the ‘equipment and supply tems: 4.4.8 In order to be jn a position to the contractor shall provide a 24 hours wervice. The contract Prame(s) and_ telephone © mber(s) of competent Per Contracted outside of ne cmal working hours. Where? possible the company notice of any requirement T® sside of normal working OUTS: will give advance items to the company against ® call-out order 4.4.9 The contractor shall only supply from authorised company representative 4.4.19 On request from the company, the contractor chall provide a copy {not necessarily priced) of its purchase order placed on the ‘manufacturer principal fas well as a copy of the Pranufacturer’s/ principal's vrder confirmation, stating the delivery time and expected date of arrival in Egypt. 5- Material, S! sand dables. wired to maintain Contractor shall provide all spare parts and in sufficient quantities rea contractor items in good working condition Conmaeey eau provide all materials and expendables required for the work, including jimit { i i bona saotgen to, grease and thread compounds, preservatives, cleaning agents, paints, ears A aap poor and lubricants. ‘actor shall also provide : which s any item of e ; pi a detailed in the oe eer cts, supplies and materiale - ing to good oilfield practi 3 ich are required for n oe eld practice and i ee prancing oil pret od 0 a tems aaly mi 6- Reporting 6.1, General (All Services) Directional Equipment and Services Scope of Work * Contractor shall retain all data acquired during the course of operations for company including data files stored on magnetic or other machine-readable media. * Magnetic or machine-readable media shall be suitably archived and stored in a fireproof location and maintained in accordance with good practice defined by the media manufacturer for a minimum of one (1) year. * The company shall authorize termination of retention of other data in writing. 6.1.2. Monthly Performance Report Contractor shall submit a monthly performance report to the company detailing equipment downtime (if any), reasons for downtime, and corrective action taken. 6.1.3. Field Tickets Field tickets will be issued by contractor on each job and shall be signed by company and contractor at job completion. These, plus the job reports, shalll be the basis for invoicing for payment. 6.1.4. Monthly Meeting Regular meetings will be held between company representative and contractor representative at the discretion of the former to review contractor's performance, safety and environmental conduct, at least once per month. 6.2. Directional Drilling - Reporting and Data Processing Contractor shall prepare such reports and plots of data pertinent to or acquired during directional drilling operations as may be required by the company. Contractor shall be capable of providing all plots both in large format (wall chart) and in an A3 and/or A4 format suitable for inclusion in other documentation according to company request. A directional drilling performance meeting shall be held for contractor and company personnel involved in the operations. This meeting shall be held after each well completion. Directional drilling operational performance, equipment and problems will be discussed at the meeting. Reports to be prepared by contractor on request from company shall include, but not limited to: A. Pre-Drilling reports and plots 1- Well proposal reports and proposal plots at any required scale 2- 3-dimensional closest approach to other wells if applicable. Travelling cylinder (well bore plan) and horizontal interval clearance reports shall be prepared on request. Plots for same at any desired scale. The report shall include 3D closest approach with and without ellipsoids calculated from error model accepted by company 3- Bottom hole assembly specifications and dimensions for all hole sections. Bottom hole assembly prediction reports. Khalda Petroleum Company /Contractor Page 38.0f 47 3) JieDirectional Equipment and Services ‘Scope of Work 4- Torque and drag analysis for specified drill pipe and bottom hole assemblies, friction factors and well bores shall be prepared on request. B. During Drilling, Reports and Plots 1- Bottom hole assembly performance reports 2- Survey versus proposal and survey versus survey plots at any required scale 3- Operating and drilling parameters (loads, make-up torque, weight, time in hole, mud type, ete.). 4- Failure or non-conformance reports for equipment and personnel C. Post-Drilling Reports and Plots 1- Well final survey report and plots in any required scale. The final survey has to be decided in cooperation with the company 2- An End of Well Report to be prepared and submitted in 2 (two) copies no later than 2 (two) weeks after the work has been completed ‘The End of Well Report shall include, but not be limited to: + Rig and Well name © Well summary Plot showing actual versus planned well path * BHA reports and BHA performance report also showing build and wall performance. For BHA including a motor, circulation hours for the motor should be shown * Tool failures and NPT, contractor must provide full details on problems and issues in order to ensure capture of lessons learned and continuous improvement. * Torque and drag field data evaluation (if applicable) «Survey calculations * Bit records © Drilling parameters «Recommendations and lesson learned for performance improvement © Acomplete directional services cost of the well. ‘The format for end of well report shall be approved by company before starting work. The goal is to make one final well report for each well, with input from directional drilling, mud loggers, etc. Some of the contents might then be not required, due to rationalization. Khalda Petroleum Company /Contractor Page 39 of 47. 3 MeDirectional Equipment and Services Scope of Work 6.3, MWD/LWD Service Reporting, Data Processing and Storage A. Reporting on drilling unit Contractor shall present directional data and/or log data on print and/or diskette according to an agreed format on request from company. Directional surveys shall be presented for each hole section on an accepted media, as soon as possible after reaching the section TD. [All directional surveys shall be quality checked immediately by the MWD/LWD operator on drilling unit, The contractor shall provide the necessary quality asslranee tolerances on gurvey data not in accordance with accepted quality criteria shall be clearly marked in survey listings. B. End of Well Report «After completion of each well contractor shall issue an end of well (OW) report documenting all necessary aspects of the work performed, including log soewalies, quality of service, deviations from specifications and other relevant an tmation to log interpretation. The end of well report shall include paper logs in 1:1000 and 1:200 scales. = Acomplete QA/QC listing with both raw and corrected directional survey data shall be included in the EOW report. « ‘The report shall include statistics regarding tool performance by a company defined standard. «The report shall be available for the company not later than 14 days after the well is at TD. «All end of well logs will be approved by company petro physical prior to submission as the final well report. C. Formation evaluation logs = Contractor shall provide spliced logs for the well and/or per section on data tapes. «In case memory log is recorded alll relevant data shall be distinguished from real time data. «The sampling points must be marked on the prints. In addition the logging ane ve and the time after bit must be available on both prints and tape. D. Hard Copy Presentation a: Seta of peber points of can wecorded tap are Peqained (number of prints according to well program) Khalda Petroleum Company /Contractor Page 400f47 WeDirectional Equipment and Services Scope of Work * The casing shoe must be indicated on all presentations. * Log backups should be introduced only if the log values are out from the indicated scales. * Calibration parameters: all calibrations (shop, before and after) must be indicated. 1. Resistivity/Sonic/Density/Neutron/Gamma_ Ray Spectrometry _Log Paper Playback © If the well is deviated (Dir) both MD and TVD playbacks have to produced «ach log run should be presented in a paper playback created according to the following model: Header: All the information mentioned below for the static table CONS Remarks: All the notable anomalies observed concerning the run Tool String: A complete tool string description Top/bottom legend: | Log scales should be indicated with the full name and with the tape mnemonic in brackets (ex. GAMMA RAY (GR)) 1. 1:1000 main log (constituted of 3-4 tracks): Resistivity/Sonic/Gamma Ray Log: Track 1 Gamma Ray 0-150 API ROP 100-0 ft/hr Track2 Bit Resistivity every 50 ft ‘Track3 Bit Resistivity 0.2-20/200/2000 ohmm Ring Resistivity Attenuation res. Phase shift res. Track Sonic Log 150-50 us/ft Density/Neutron log: Trackl Gamma Ray 0-150 API Bit size range of 10” Khalda Petroleum Company/Contractor Page 41 0f47 33 pieDirectional Equipment and Services Caliper DCAL Track2 Depth ‘Track3 Density correction Track3/4 Neutron porosity Bulk density Rotational density 2. 1:200 main log (constituted of 3-4 tracks) Resistivity/Sonic log: ‘Track Gamma Ray Bit size CALI DCAL ROP Track2 Depth Track3 Bit Resistivity Ring resistivity Attenuation deep res. Phase shift res. Ticks Sonic log Gamma Ray Bit size Caliper DCAL Ticks Track2 Depth Track3 Density correction Track3 /4 Neutron porosity Bulk density Scope of Work range of 10” every 50 ft -0.25-.025 g/em3 0.60/0.0 pu (LMST scale) 1.7-2.7 g/cm3 (LMST scale) 1.7-2.7 g/em3 0-150 API range of 10” range of 10” range of 10” 100-0 ft/hr Ticks every SOft 0.2-20/200/2000 ohmm 0.2-20/200/2000 ohmm. 0.2-20/200/2000 ohmm 0.2-20/200/2000 ohmm 150-50 us/ft 0-150 API range of 10” range of 10” range of 10” every SOft -0.25-0.25 g/cem3 0.60-0.0 pu (LMST scale) 1.7-2.7 g/em3 (LMST scale) Khalda Petroleum Company Contractor Page 42 of 47 osDirectional Equipment and Services ‘Scope of Work Rotational density 1.7-2.7 g/em3 Ticks * The casing shoe must be indicated. + Log backups should be introduced only if the log values are out from the indicated scales. = Calibration parameters: All calibrations (shop, before and after) must be indicated. «The above mentioned data might be changed up on company request. E. Tape Format 1, Physical support labelling ‘The tape label should clearly define the tape content and the format; density and maximum record length have to be marked on it. Each file must be documented (file fumber, top, bottom); extra information can be added if necessary. ‘The well name, recording data, service name, run number, top, and bottom should be correctly indicated on the label too. 2. Tape structure Digital product shall be is a LIS structure in 4mm dat tape, 8mm exa-byte tape or 9 tracks tape with a density of 1600 or 6250 bpi (never 3200), DLIS structure is accepted only if is a standard DLIS and not a GeoFrame DLIS. ‘The entry blocks information should be as complete as possible (never without entry Trecke number, 4 up/down flag, 8 frame spacing, 9 units of frame spacing, 12 absent value, 13 output depth flag, 14 units of the depth in data records). 3, Tape content All raw data channels for the requested service must be included in the tape (main log raw). A selection of channels, filtered or averaged, used to produce the playback must be included in a second file (main log filtered). If the well is deviated (Dir) measured depth data only should be included in the tape. Both real time data, if recorded and Downhole memory data shall be available on ‘ape: Each file has to properly identify. ‘The acquisition mode (while drilling, back reaming, and sliding) must be indicated in the remarks. Sampling rate indicator (Ticks) should be loaded on a different file. Khalda Petroleum Company Contractor Page 43 of 47 3 wakeDirectional Equipment and Services Scope of Work All physical support containing log digital outputs must be verified and delivered with a verification listing. Calliper measurements (in inches) should be recorded and inserted in the tapes. On the static table CONS of each file the following information should be available and correctly written: cN company name WN well name EN field name NATI nation COUN County DATE day-month-year DD-MM-YYYY EKB Kelly bushing elevation EDF derrick floor elevation EGL ground level elevation DET drilling fluid type BHT bottom hole temp. BS bit size csiz casing size DFD drilling fluid density DFPH drilling fluid Ph RMS mud sample resistivity RMFS mud filtrate sample resistivity McsT mud cake sample temperature MFST mud filtrate sample temperature MsT mud sample temperature TDL total depth logger BL bottom logged interval Khalda Petroleum Company/Contractor Page 44 of 47. at.Directional Equipment and Services Scope of Work TL top logged interval TDD total depth driller MRT maximum recorded temperature CBDR casing bottom driller CBLO casing bottom logger R1/R20 remarks LMF log measured from ELZ elevation zero LATI latitude LONG longitude TLAB date/time logger at bottom o0s1/5, other services All produced hard copies shall be presented as CGM file. All files shall be individually labelled and included in a single separate 4mm TAR format tape. 7- Equipment data sheet ‘The contractor shall provide company with all technical data for each tool/equipment not limited to Maximum OD, Flow Rate (Min. & Max.) RPM (Min. & Max.), Power Output (HP), Operating TQ (lft Ib), Operation Temperature, Operating Pressure..., availability, quantity in local base and delivery time (if outside Egypt) Motors With adjustable angle setting to be used for Long, Short & Medium Radius applications, relative Low (70-150 RPM) /Moderate (150-250 RPM) /High speed (+250 RPM), Standard/High Torque To be used with PDC, TCI and Impregnated Bits and for using with all mud types and High / Low flow rate. MWD/LWD MWD Downhole tools shall be used for each hole size range, capable of operating in all types of mud used by the company at high flow rates. Minimum sampling rates: 2 (two) per feet at an ROP=200 ft/hr with data available both real time and recorded in standard, HPHT and high temperature conditions. Rotary Steerable System Rotary Steerable System shall be used for each hole size range, capable of operating in all types of mud used by the company at high/Low flow rates, With two way Khalda Petroleum Company/ Contractor Page 45 of 473Directional Equipment and Services Scope of Work communication surface downlink equipments to change directional while drilling and also In standard, HPHT and high temperature conditions. Mechanical inclination measurement tools (ANDERDRIFT or equivalent) Measurement of wellbore inclination by means of mechanical / hydraulic Downhole tools. Inclination data is transmitted in surface as a series of pressure pulses whose number corresponds to the wellbore inclination. Tool features: * Real time inclination measure © Short time of measure ¢ Reliable inclination measurement over 0 to 5 degrees inclination { Min. Quantity on Item | hole size | Tool Size (in) Descutce Max. Angle Rig Site Number | (in) or similar a Degree ei Ea. . ‘AnderDrfit 17 1/4" ee tool al B ‘AnderDrfit 12 1/4" tool 2 sg | AnderDrfit | 8 1/2" CORE tool 2 ° AnderDrfit 6 ac tool B (Roller) Reamers (near bit / string), 3 Points, Sealed / non Sealed bearit Required reamers are designed for reaming and stabilization in any types of formations. All parts of the tools shall be made of special alloy steel and heat treated. Drilling crews shall replace any part in the field without the use of special tools, whether it is a sealed or non sealed bearing roller reamer. All type of cutters ton be made of special alloy steel and fully heat treated. They shall reduce/eliminate drag or sliding on the wall of the hole being drilled. Noi et Collar: Required Non-Magnetic Drill Collars are designed for drilling in any types of formations, different hole sizes and to be used with Multi/Single shot survey. Stabilizes Stabilizers are designed for drilling in any types of formations, different hole sizes and to be used with directional assembly and/or in vertical wells. Khalda Petroleum Company /Contractor Page 46.0f47 WeDirectional Equipment and Services Scope of Work Hole opener Hole opener Hole size _| Pilot Hole in" size Upper thread _| Lower thread _| Connection 26 17.5 12.25, 11 8.5 6 Surveying too! Survey tools are designed to record directional survey in all mud types, at any depth, any inclination, standard / high temperature, real time or recorded and to be run on wire line or drop in string. Turbine Turbines tools are designed to drill vertical and / or directional wells with high RPM using Impregnated Bits while drilling very hard / abrasive formations. Khalda Petroleum Company /Contractor Page 47 of 47 39Directional Equipment and Services Compensation EXHIBIT Compensation DEFINITIONS MOBILIZATION Means all activities required to be carried out by contractor in order that the work can commence on or before the call-out including the transport of the equipment and personnel to the contractor's local base and site from the contractor's area base. DE MOBILIZATION Means all activities required to be carried out by contractor in order that the equipment and personnel supplied for the work is removed from contractor’s local base and site at the end of the call-out. CALL-OUT means either a written request, or a verbal request by company indicating that contractor shall commence work on an “as and when” basis under the terms and conditions of this contract, at a location or locations and for the period or periods specified in the scope of work and/or in said call-out. DAY RATE means the mode of payment (a specified sum per calendar day) in consideration of work performed by contractor calculated on a time basis in accordance with the contract 1. GENERAL od The rates are deemed to allow for all costs incurred by CONTRACTOR in complying with all the terms and conditions of the CONTRACT, and shall represent the total remuneration due to CONTRACTOR in full consideration of the satisfactory performance of the WORK The CONTRACTOR’s rates for reimbursement of the above are deemed to be inclusive of the provision of the following: * CONTRACTOR REPRESENTATIVE * Personnel including office engineering support, administration and labor costs. * Management and supervision of whatever nature, corporate administrative, direct and indirect Manufacturing services. * Consumables & spare parts for main and back up equipment * The provision of back up equipment. * Electronic and hard copies of reports as required by COMPANY including End of Khalda Petroleum Company /Contractor Page 1 of 18 yeDirectional Equipment and Services Compensation well reports and data base. Computer Software, modelling, testing and laboratory work All costs incurred to meet HSE requirements including protective clothing Regulatory approval for importation of all equipment into the Arab Republic of Egypt. Personnel training as required in scope of work. Transport of personnel, tools and equipment to and from the COMPANY location. Cost incurred with respect to customs clearances, or other government authorizations required for moving its personnel and equipment in and out of country All head office support and specialist technical support Service co-ordinator Maintenance and repair of contractor’s equipment Redresses Hot shot, inspection QA/QC or overhaul charges Costs for naturally occurring radioactive material (NORM) Testing and testing for hot spots on nonmagnetic drill collars. Costs incurred with respect to testing and certification of equipment Warehousing Tool set-up and preparation Accessories, batteries, service tools, all thread types, thread protectors (even if not returned or damaged), lifting sub and/or lift nubbins, ring gauge, saver subs, crossover to string connectors, rotor catchers, rebuilds Cargo baskets and associated slings Electronic and hard copies of reports as required by company Contractor’s subcontractors Compliance with government regulations 1.2 CONTRACTOR shall not be entitled to remuneration and shall be placed on b) Zero Rate for all personnel or Equipment at any time during the contract term as of: shortages or delays in the supply by CONTRACTOR of personnel, equipment, information, or tools, provided that COMPANY shall have given to CONTRACTOR (24) twenty four hours notice of the need for such supply; and/or lack of planning on the part of CONTRACTOR provided adequate planning time and TECHNICAL INFORMATION were provided by COMPANY; and /or Me Khalda Petroleum Company /Contractor Page 2 of 13Directional Equipment and Services Compensation ©) CONTRACTOR tool failure that disrupts operation until operations return to pre- failure operations or job cancellation; and / or @ Any time during the contract period if the contractor fails to meet the full obligations and requirements of the contract in whole or in part. 18 In case CONTRACTOR fails to provide all the necessary personnel, tools, cauipment required for the WORK at WORKSITE within Twenty four (24) hours of receiving COMPANY’s notification as specified Scope of Work. COMPANY shall have the right to deduct from CONTRACTOR’s invoices two (2) percent of total value of the relevant job invoice per each full week or portion thereof for the delay of providing equipment and tools after such (24) hours as liquidated damages . The maximum amount of liquidated damage shall be ten percent (10) of the total Job relevant invoice(s). It is further agreed that such deduction shall not constitute a waiver of any rights to COMPANY under the CONTRACT 14 No reimbursement shall be made for WORK which is not performed in accordance with the CONTRACT. 15 Contractor shall ensure that all tools and equipment during the contract Period shall fully mect the contract technical and functional specifications. In the event of contractor upgrade the tool, equipment and / or service specification during the contract period, contractor shall supply such upgraded tools, equipment or service at no additional cost to company. 1.6 All rates and prices stated herein are in United States Dollars ($US). 1.7 CONTRACTOR’ job tickets approved by COMPANY shall be used to define all events and timings for the definition and application of the appropriate rates associated with this CONTRACT. In event of disagreement, drilling records, where available, and other applicable documents will be reviewed to reach mutual agreement. 18 For any additional services not included in this contract, a mutually agreed Price shalll be negotiated. COMPANY shall require justification prior to acceptance of the proposed unit cost and a contract amendment must be signed by the PARTIES prior to proceeding, Failure to include equipment, tools or services will result in company not paying contractor for these items. 19 Any and ail amendments to the prices, terms or conditions contained in this CONTRACT or for any additional services requested shall only be made with the Prior formal approval of the COMPANY’s Procurement & Supply Chain General Manager. Any amendments or additions to prices shall not be valid unless such Khalda Petroleum Company /Contractor Page 3 of 13 > weeDirectional Equipment and Services Compensation approval has been obtained and a contract amendment has been signed by the PARTIES. 1.10 In the event where a contractor’s representative is not present on company’s worksite and the equipment is returned in a used condition, contractor can request reviewing of the company’s drilling reports covering the rental period of the equipment to qualify how the equipment has been run. 1.11 _ No two (2) rates are chargeable to company at the same time for same equipment and personnel. For example: operating rates are not chargeable whenever stand-by rates are in effect; stand by rates are not chargeable whenever operating rates are in effect; and, so forth. These guidelines are applicable to all of contractor’s personnel, equipment, tools and other resources used in the performance of the work. 2. MOBILIZATION AND DEMOBILIZATION 2.1 Contractor shall be responsible for the mobilization and demobilization of its Personnel, equipment, and material to, from, and within the worksite and will be to the contractor's account. 2.2 ___ CONTRACTOR shall be responsible for obtaining all the necessary visas, customs clearances, or other government authorizations required for moving its Personnel and chemicals into and out of the country having jurisdiction over the operating area. COMPANY will nonetheless give assistance to CONTRACTOR, if so requested, to the extent reasonably necessary with regard to the obtaining of visas, travel permits, import assistance, or other governmental authorizations required for moving its personnel and equipment into and out of the country having jurisdiction over the operating area. 23 The point of mobilization will be company’s rig site unless specifically stated prior to the operation. 2.4 Contractor is responsible for ensuring that all equipment and services required for the work are delivered to meet the delivery dates outlined in the contract. In the event that contractor is required to air fright any equipment in order to meet these dates, such additional air freight costs shall be to contractor's account. 2.5 Contractor shall be responsible for packaging, identification and correct documentation of equipment to comply with standards for customs clearance. Company will not be responsible for charges incurred due to incorrect packaging and documentation made be contractor or contractor's third party. Khalda Petroleum Company /Contractor Page 4 of 13,Directional Equipment and Services Compensation 3. RENTAL CHARGES All the rental charges (Stand By and/or Operating) are Daily Rental Prorated per Hour (1 day Equal to 24 Hours) To the Nearest Hour (for parts of day, all such day rates shall be prorated to the nearest hour) Only one, stand by rate or operating charges shall apply per tool at any time. Charges for equipment shall begin the day equipment arrive at company rig site and terminate upon release by company from the rig site. In the event contractor upgrades the technical specification of the equipment during the contract period, contractor shall supply such upgraded tool or equipment at no additional cost to company. Company reserves the right to provide its own or third party tools and equipment and make them part of contractor’s BHA. No surcharges whatsoever are applicable. The following definitions are applied to all services: A. Backup Tools (Equipment) Back up tools are included in the charge rates, i.c. an “equipment package” consists of a primary tool and a fully functional back up tool available at rig site. Back up tool must be fully operable and capable of performing the same tasks as the primary equipment. ‘Two (2) Downhole tools (for any mud motors, MWD/LWD, RSS, etc,) will have to be made available at drilling rig. For these tools, the stand by and operating (below rotary table or while circulation) rates shall apply as per attached scheme. In case renderer offers the backup tool FREE OF CHARGE, this will be clearly indicated If company request a 3" tool (i.e. a second back up tool), contractor shall charge 50% of the quoted stand by rates as rental rate for the 3" tool for the duration this tool is on standby at company’s request. High pressure- high temperature, high temperature and High pressure tool/equipment, equipment operating rates apply only when company requests contractor to provide such tool/equipment. If no backup tools on location, no stand by will be applied only for services were backup tool is not supplied. Khalda Petroleum Company Contractor Page 5 of 13,Directional Equipment and Services Compensation B. Daily Operating Rates The daily operating rate shall apply when contractor equipment is operational (fully tested) on rig site, fully functional below the rotary table, circulating for motors and services are requited and provided. Specially, for Downhole equipment/tool(s), daily operating / service charge shall be payable under this contract when items are below rotary table. (No stand by rate shall apply when equipment is below the rotary table). In the event that contractor’s measurements fails to meet company’s real time data or memory data requirements, operating rate will be reduced by a proportionate percentage of 80%. For the positive displacement motor, the operating rate will be the tool below rotary hours including circulating hours. If any tool failed after less than 100 working hours and trip was done to change Tool, 10% from the job invoice will be deducted from failed tool invoice for the mentioned tool. ‘The Operating Rates shall include all equipment related to the tool C. Daily Stand-By Rates a) The daily stand-by rate shall apply when contractor items are consigned to the company rig site and in an operational condition but no service is required, and will cease the day when the items are released from the rig site. b) Specifically, when Downhole equipment/tool(s) are on rig site, stand by rate shall apply when items are in an operational condition with back up tool but not below rotary table. ©) In case the equipment/tool fails (malfunctioning/failure) the surface shallow test no stand-by rate will be applied since the day of consignment to the rig site for the related failed equipment/tools. d) In the event of a stuck BHA, the operating rates shall terminate after one hour. After this time, the stand by rate applies unless the incident is caused by contractor negligence. Operating rate will only resume when the new BHA is made up and is below the rotary table or normal drilling. ¢) No stand by rates for contractor’ equipments shall be applied after the job completion, )_ No stand by will be applied in case of no Back up tools on Location. Me Khalda Petroleum Company/Contractor Page 6 of 13.Directional Equipment and Services Compensation 8) In the event that the tool is available at company rig site and not utilized based on company’s decision, only 50% of the applicable stand by rates shall apply in such event. D. Survey charges a) Any survey charge based on depth is applied for the cumulative depth of intervals surveyed. b) The rates charged for these services shall include the costs for providing all equipment to run surveying instruments and equipment in any hole size. ©) The rates specified shall only be payable for the provision of a successful well-bore ‘survey. A well-bore survey shall be considered successful when it complies with the acceptable QA/QC, where no company approved survey no payment applies. E. Lost in hole a) For the avoidance of doubt, if a tool is lost in hole, equipment day rates will cease as per the below, whichever occurs first; 1- Day on which the assembly got irretrievably stuck down hole 2- Day on which the equipment was observed to be missing from the string 3- Day on which an abandonment or side track cement plug was pumped Company reserves the right to determine when to terminate any attempts to retrieve tools left Downhole. b) If it is found that the minimum inspection criteria and technical standards have not been met by contractor or that the contractor’s own procedures and standards have not been met, then no lost in hole costs shall be paid for any equipment, F. Charge rate - Personnel a) Operating rates for contractor’s field personnel shall apply from the time of personnel’s arrival at company rig site, but no earlier than the date and time specified by company, until the time of their return thereto. Notwithstanding this, contractor shall not charge for an engineer and his replacement on the same day. b) Company reserves the right to withhold payment for responsible personnel if it deems contractor's performance and or service non-compliance was directly caused by individuals at the work site. Determination of the non-concession and te Khalda Petroleum Company/Contractor Page 7 of 13,5Directional Equipment and Services Compensation all matters with regard to service non-compliance will be at the sole and final judgment of company. ©) For parts of a day, all such day rates shall be prorated to the nearest hour. d) Services coordinator shall be provided free of charge. G. Zero Rates a) No charge, including stand by, shall be assessed for any item of equipment which fails surface functional tests and / or shallow hole tests or within twenty four (24) hours of commencement of operations. b) In the event of contractor’s equipment failure, contractor shall suspend the failed tools rates and charges for the failed items below the rotary table, surface equipment and personnel utilized in the operation. c) If any contractor’s equipment failure results in a trip out of hole or a sidetrack, all operation rates and stand by rates for all the contractor’s equipment / tools included in the BHA will cease immediately and go to zero rate. A zero rate will apply until either the equipment is replaced and reached the same depth at which the primary tool originally failed or the equipment is deemed to have started working to the satisfaction of company and reached the same depth (or operation) at which it originally failed. Inadvertent sidetracks due to poor subsurface conditions and not due to contractor’s negligence or contractor's equipment failure will be excluded from this clause. In this case stand by rate shall be apply and operating rate will only resume when the new BHA below the rotary table to initiate the drilling of the planned sidetrack. d) If company decides to drill ahead or circulate, then zero rates shall be applicable for the components that have failed. e) In case of missing or poor quality data due to any tool malfunction or failure, unless failure was due to causes outside contractor control, contractor shall not be entitled to payment and shall be requested to perform re-logging operations. 1) In the event of missing or poor quality data still existing after the re-logging operations, company shall have the right to use a third party LWD tools. Any incremental cost above the LWD cost, which would have been incurred by company to get the required data using contractor’s LWD tools in the contract, will be charged back to contractor. Determination of the concession and all Khalda Petroleum Company/ Contractor Page 8 of 13.5 ¥Directional Equipment and Services Compensation matters with regard to service non-compliance will be at the sole and final judgment of company. g) In the event that the contractor's Gyro MWD tool fails to meet Company’s requirements, the Gyro MWD rate shall go to zero and the contractor shall be responsible for running a wire line Gyro with 50% only of charge. In the event that contractor has insufficient personnel and / or equipment to commence or complete any operation, contractor shall be reimbursed at zero rate for equipment and personnel for the period of delay whilst the rig is waiting. The zero rate shall apply to cach day when any part of that day has been lost due to such delay. Contractor shall be solely responsible for ensuring that sufficient equipment including back up is available at the work site and personnel at contractor's base in order to cover for such equipment malfunction or illness Khalda Petroleum Company /Contractor Page 9 of 18Directional Equipment and Services ‘Compensation Pricing Notes: sae CONTRACTOR shall be paid for the performance of the work required hereunder in accordance with the attached CONTRACTOR’s price list subject to 28% discount. Any additional Directional Services, when requested by COMPANY, pertinent to but not included in this contract or should the CONTRACTOR have any additional items or services which the CONTRACTOR would deemed associated with this Contract but not specified within the attached “Directional Services Rates”, those items and / or services must be included in an attached “Additional CONTRACTOR’s Price List”. ‘The rate(s) of any requested rental equipment and/ or required personnel will be per 24 hour period. ‘The daily rental rate for equipment and rate for personnel will commence from the time and date of arrival of all such equipment and personnel necessary to perform the work scope at COMPANY’s worksite(s) and continue until the completion of the assigned job at the worksite(s). Rental rates will end when CONTRACTOR has been informed that their materials are available for collection from COMPANY’s operating base. Day rate charges will apply from 00:00 hrs to 24:00 hrs, part days will be charged as whole days. Where applicable, operating rates will apply when tools are below the rotary table. Operation daily charges for equipment will be applied when BHA is below rotary table. The stand-by for equipment will be applied when the equipment is arrived at COMPANY base or Rig Site(s). The back-up equipment has no charge. If Equipment is called out and the job is cancelled, the cancellation rate will be the stand-by rate plus transportation cost as per documentation cost. In cases of premature failure of any downhole equipment, i.e. motors, MWD, LWD, survey tool, etc, no compensation will be paid until such time as the failed equipment has been replaced/ repaired and drilling is resumed. This includes any trip time required to remedy this condition. Charges for equipment will be as follows: Khalda Petroleum Company /Contractor Page 10 of 12.Directional Equipment and Services Compensation 10. 11. 12. 13, 14, 15. 16. rN yy Khalda Petroleum Company/Contractor Page 11 of 13 a. Operating rates for all downhole motors, MWD, LWD, etc. will be applied when the tool is below the rotary. b. Stand-by rates will be applied for those tools requested by COMPANY, on the rig site and not being utilized at the time. c. Back-up tools are those tools which are needed on rig site by CONTRACTOR to insure continuous operations should the primary tools require replacement. Back-up tools are at “No Charge” to COMPANY. Charges for all MWD / LWD / Survey tools will include all downhole and surface equipment and instrumentations, personnel and all CONTRACTOR required back- up at rig site. CONTRACTOR must be capable of electronic transmission of all MWD / LWD data from rig site to COMPANY office in Cairo, Egypt. All spare parts and re-dressing charges will be at CONTRACTOR’s charge. All inspections and equipment maintenance/ repair charges will be at CONTRACTOR’s charge. All CONTRACTOR’s required post inspections for any items and or services for the purpose of repairs, re-cuts, etc. of returned items to CONTRACTOR alter completion of usage by COMPANY will be on the CONTRACTOR’s account. All rates and prices set forth in this Contract shall not be subject to any escalation during the term of this contract. Any services or materials requested by CONTRACTOR and furnished by COMPANY shall be paid by CONTRACTOR at a cost plus 15 % basis for services and at a cost plus 25% basis for materials. All transportation of CONTRACTOR's personal, equipment, parts and supplies from CONTRACTOR’s base to the work site(s) & vice versa and between wok site(s) shall be for CONTRACTOR’s account. CONTRACTOR shall be paid fifty percent (50%) of its U.S. Dollars invoices in equivalent Egyptian Pounds. The Egyptian Pounds equivalent of USD shall be calculated at the rate of exchange applicable to the Petroleum Sector in effect of the month in which payment is made by COMPANY. This rate currently shall be based on the National Bank of Egypt’s rate.Directional Equipment and Services Compensation 18. CONTRACTOR shall submit an irrevocable Letter of Guarantee to COMPANY, for the amount of $ 120,000 as a performance guarantee for the execution of the Services assigned to CONTRACTOR by virtue to Contract. Said guarantee will be return to CONTRACTOR after terminate the Contract. However, COMPANY has the right to deduct any amounts from the guarantee, without the need to notification, warning of judicial procedure, in case the CONTRACTOR does not fulfill any of his obligations mentioned herein: a) CONTRACTOR shall repay any amount deducted from his cash deposit for any reason whatsoever during the performance of works charged to him by the COMPANY within ten days from date of his being advised accordingly, in case of a delay in payment, the COMPANY shall have the right to deduct it immediately from his entitlements without need to warning or notice. b) CONTRACTOR shall undertake to a) re-export subject equipment, spare parts, tools, materials and supplies, and close all customs certificates imported for its account under Company's umbrella, b) transfer the status of such materials and equipment from Company's umbrella to another company doing business in A.R.E., or c) secure necessary import permits and pay any applicable customs duties or taxes thereon as well as any relevant expenses. 19. If CONTRACTOR at any stage cannot cope with COMPANY’s activity, another Contractor will be called-out and CONTRACTOR shall bear any extra cost. One of the two mentioned options will be applied under this contract depend on company request, “Appendix 1” attached “option 1”, considering the following: Tools charge: Operating and / or stand by Charges for all Equipment / tools should include and not limited to spare parts, all tools to provide the service. Down hole Motors ‘The operating Rate for circulating hours only Wee Khalda Petroleum Company/Contractor Page 12 of 13.4Directional Equipment and Services Compensation MWD/LWD Include Required surface unit with accepted real time data density Surve tools The prices of tools will be with feet recorded, OPTION NO. 2 (Lump sum include Engineers) as per “Appendix 1” attached Khalda Petroleum Company/Contractor Page 13 of 13...[standby (Day) Sescsiet tee “Unicare [seat Enaer- Aine Engr sItem Number Description ow Coat United Series Ray Seas Sysom @ a8 Push / Point the ba, Rotary Steerable Sysiom ing al eurtace pressure transducers and connections) oh Dog Leg’ High Vibration Shock Environment System fal Roly Steerable Sysam (nowsing a auras sa 5s = ress s ss zeso1_| si01_ | saoso | 15861] s4ouo sioss_| 15881 07,180 — zesor_| r1201_| aaa | s58et oss | 15661, 91.280 ea s1ose_|_ 15001 it a 700 —[— 30 Wa 2 ‘ay 260 [140 NA, 63 i r 6s0_[ 20 NA “Tem Must ba used conjunction win Rotary steerabie awaPositve Displacement motors - Steerable Muld Motors With Adjustable Angle Setting for Using with All Mud Types and High/Low Flow Rates THIDER Tem] Nominal Toot ‘Standard Tigh Pressure, High Temperature” Nur ‘Operatin ‘Operating [Stand By ber [si¢re hr [ sicre-hi-| siaayreet a co Standard Power Hign Speed. ‘Standard Power Hig Speed ‘Ac Mist Fesm DingDescistion ql ean Gamma Ray Faso Tt nova Mona (Gra Ryle Teta rnc Monay ‘Gamma ay-Pteau/ Tol norainana onary S167 (Gora Ray Pans Tot noasinaha nian, sa02000| Gena Ray Pats Tot pn ma mona 000009] GarnnaRay- Pte Tel on acim Money sssco00| 3 _ss0m0fT z TOTS s 3s Se) a I [el stecozer 09| $e] ¢tzsnn0| § —esa00f $1 26000| 3 wy rere ‘roo $—eso0o] $100] € esa $1260.00] 3 “Se bre reas] ¢ —eso0o] + tonto] 6 eso] 126000] § Le Te Te te [an | A BF a 2 [eam cerm | RO eee Se er 0 paar | ROR Rare em Se rer Sd erser a Nanalbnalins == tio | sso | twr ore [eocnmiyncoosierrenrettnranierey | sorocls zor] ua | we [wa [wa | ve | wn [+ sorrel a | P17 _[RotRmnyereSumranRewToesNeroY Ty someals 2ancal am | wa | wa | wa | wa _| wa [8 2000 so [evra | natneeniercestpsrannen Tne enerey | wa [wa [wa] wa] wa | wa] wa [wa ieT Dag ana Re ETT ET aa a + Desperate $ 2000000] § TONED] —WR | —WwR—| Wa | wa [—WR[ WAT 1 asp Aer esti NA [NA WA [| Wa [Wa [Wa | Wk [0 412-071 | Aamane;Reawtnty esecee nReatToeauensy |s z1aa0]s asm! na | na | wa | wa | na | wa _|® Ta7m | Aamuns; Rees eseaey aReaTmesueney | s ram00]s ssw! na | wa | wa | wa | na | wa _|® an |_#-91m _| pemime,Rencay esetey area tee sven | wm | wa | wa | wa | wa | wa | wa] wa WA 8 wa | wa | wa | wa | a _| $ #618200) asa, aati 6TH HRT + 56200] Tr ano 5 wa | wa | wa | wa | na assy, AAA ee ey RESTART aaa Tine Merry 8 wa | wa | wa | a | nn ya (29 sa) Lay aan Ra aes ia Oy Ray Re Te a r a TT + Wa | wig —[ wa [wa [wf § a a} win —[ wa] [nk i wat wig wat wa [wT + ia —| nk | Wa] Wk} ik 3 . wa | we | wa | we | ma _[* ue oe Z ma | wa | wa | wa | wa eiezere a wa | na | wa | wa | wa_|$ s ma | na | wa | wa | wa_|$ Focuod High Reston Rasy RealTime Maney | g ra lomo I EG Se Fania Fiestas SecsieCalpr (ergo) SR x 7S a ls eS seo] — n ‘$—socal s —rouol¢—sso00) $—roaua| $ sno] Wa + 3 —senps —roto| soos] $ Pons] $— sno] — wa z TSO TOS eS TTT Sea] 5a + Seaaacofs Tiaeiso|¢ e00/ $ Theo] $eaao 0] € ais 7620 + S--gaaaoo}s-1iaeto! ¢esso00] s raeoml $ eaanoo| § —aeas0] s a ropa er ‘ener | Renee” | Reneat” [Reger | “Renee | oneSS stb Pst [TER TRS SORE FST FST a ad be ceemeies o Boqe:t_| Request | Request | Request | Request | Request | Request all ms SS a es | er a | | te ra = era pera Weer a [pe eM reat “ a RS eS | | 7, ra uel ert Urea | es [Une Weep ae = a is 20 | My | Gasnontmrntestine enone peces | Tena” | Mons” | Tasca” | ease [es | ego | Tense Yate 7 a RST ae 2 Se See ea ae ea eae eee an Be eee pea eee te eee ee ee ee EA ee i a = ERE SS ees aa = eee aa 2a Het Bet Smet eet Semel ceret tee ae pete met eee feat eee feet ee ee SSS] SRE ee eed pels ase a| ce Poe $ 470000] $ 210000] $ ese000|$ 29000] s 500.00] s 29100] $ 6.59000] fae $_4700.00| $ 2,100.00] $ 6.56009] $ 2,990.00] $6,560.00] 2.94009] $ 6,580.00] . SRDS Him sees ree t sae eee eae er Teale eet eet eat peg seat eel eet ee SET aye peas eee a oe Ra Tea a Ta ST TT aT SS ee ee ase et a eee ety Mme aeeely aaa ee SBE Bal Sgpol age geet geale oe oe [eee aa aaa §.21am.00] s 105000] s zosonan| s azon0o] s 294c000) ¢ 1470000] § 25,<0000| 1470000] § 180021860 pe | SATE | naomi onaanerine stone [5 an mamma aml smn name aaron nan nrso|® 20 PP za | _%-8716" | Famaton Pressure Vile Oita Real Tine emery | a S ar = ae on ~ na] SE eT TE = = Pe enc] a aps] [eam a] Vac a Pe Le De = = Fae | RS aa ae Sa Ear aT 22 = Mamary NA Na WA NAL NA NAL a cy -_‘Wear Whe Sar ra aoe RITES WeciFChs Sal ier ae Rea Te ‘oar He Sar sag ve Real Te a ea as wa oo we wa{ wa | ws | wa | wa | wa | ma | wa ee ee a 28 i a Poste | Patna Deep Rost nico Rare E Pry 20 ey wa {wa | we | we | ws | wa | mm | wa oe eos 9 20 po a A oe ee ry 1 Ras Tra we | na} ma | we | ya [wa | wa | na au | sure ms} wa | we {| wa | wa | na | wa | wa a zs | Sur-a7er maj we | we | wa | wa | wa | ma | wa aa edi raza a} um wn {| wa | a | nn | nen | en i ss |v -o7e ma} wa | we | we | wa | na | wa _| wa Ea ooBHA Tos Sie 00 Rate MAX LH tem Number | [OO Sze Description ‘Operating | Stand By| Redress Siday | Siday $7 TOOL z Fixed Bladed Hole Openers “NA | NA] NA WA NA NA_|__NA NA NA NA WA NA NA NA_|_NA N/A Fixed Bladed Hole Openers NA NA_| NA NA Fixed Bladed Hole Openers, NA NA_| NA NA Fixed Bladed Hole Openers. NA NA NA NA Rate MAXLA | tem Number Description ‘Operating [ Stand By| Redress Sday | Say _[$TTOOL| $7TOOL 2 Til Hie Fe Opener wih ext Ee 215 100.00] — 52,350.55 273 Hole Openers with sealed bearings mi 300 6,987 50 | 274 peners with sealed bearings mi 350 77,220.00 276 peners with sealed bearings mi 475. 124,070.40 é Integral Blade Hole Openers wih sealed bearings mi 0 787.4750] 277. Integral Blade Hole Openers with sealed bearings TCI culters 275. 52,350.55 | 276. Integral Blade Hole Openers with sealed bearings TCI cutters 3007 (66.987 50_| 279 Integral Blade Hole Openers with sealed bearings TCI cutters 350 77,220.00 | 360 Integral Blade Hole Openers with sealed bearings TCI cutters 475 124,070.40 Integral Blade Hole Openers win sealed bearings TC cutters 350 187 475.00 22 Trisarl Blade Fle Openers win soled Dearngs POC caters —| —P75 “sass | 283 lade Hole Openers with sealed bearings PDG cutters 300 6,987.50 | 284 iade Hole Openers with sealed bearings PDG cutters 350 77,220.00 | 285. iade Hole Openers wih sealed bearings PDG cutters 475 2588.00 | 124,070.40 | 286. lade Hole Openers wih sealed bearings PDC cutters 350. 30,550.00] 187.475.00 | 287 ‘Cutter Roller Reamer /Hole Openers / TC inserts 700. $27,256.00) 288. fe Openers /TC Inserts 120 $20,450.00) 268. ‘Openers (TG Inserts 150 $36,037 00) 280 ‘Openers (TC Inserts 200 $42,635.00 31 '3 Point Gutter Roller Reamer / Hole Openers /TC Inserts WA NA 282 Point Cutter Roller Reamer /Hole Openers /TC inserts WA NA 283 {Point Gutter Roller Reamer / Hole Openers /TC inserts NA NIA 294 ' Point Cutter Roller Reamer /Hole Openers /TC inserts NWA NIA 295. ‘6 Point Cutter Roller Reamer /Hole Openers /TC inserts NA NIA 206 ‘6 Point Gutter Roller Reamer /Hole Openers /TC Inserts NA NIAor Dring Type UnderReamer- Miled Tooth win Sealed Bearings: WA NA NA NA 298; id Type UnderReamer- Milled Tooth with Sealed Bearings NIA, NA. NA. N/A. 298) ig Type UnderReamer - Milled Tooth with Sealed Bearings NIA, NAA. NA. NIA, 300) id Type UnderReamer- Milled Tooth with Sealed Bearings NIA, NA. NAA. NA, 301 Driling Type UnderReamer - Milled Tooth with Sealed Bearings NIA, NAY NAY NA. 302, ing Type UnderReamer- TC Inserts with Sealed Bearngs: 303; 304, 305, 306 307, 32,997.00] 65: 308; "39,900.00] 81,645.00, 308) 55,500.00] 120,434.00 310, 75,367.00] 185,282.00 3tT 139,998.00) 196,354.00. 312. Drag Type UnderRteam 313. Drag Type Underfteam NA NA, 314) Drag Type UnderReamer- POC Cutters NA NA, 315, Drag Type UnderRteamer - POC Cutters NIA, NIA NIA NA, 16 Drag Type UnderReamer - PG Cutters NA NIA, NIA NATool Size / Rate MAXLIH | Redress Item Number| 190! Sz Description ‘Operating | Stand By] Charge Siday ‘Siday $!TOOL | $/Tool use_ S97|_4 1476 TA YORAUIIC TWO DIMENSIONAL VRIABE BADE OR VARIABLE GUAGE STABLIZR 55) 3ia|_5 12 6 7/87 [HYORAULICTWO DIMENSIONAL VIRIABLE BLADE Of VARIABLE GUAGE STABLZER 150) 319] 7-6 7/8" [HYORAULIC TWO DIMENSIONAL VIRIABLE BLADE OR VARIABLE GUAGE STABILZER 2s $20] 9°=0 716" YORAULICTWO DIMENSIONAL VIRIASLE SLADE OR VARIABLE GUAGE STRRIZER 200 Szil “4 118-5 118 [MECHANICAL TWO DIMENSIONAL VITABLE BLADE OR VARIABLE GUAGE STABUIZER i350 322] 8 112"— 67/87 MECHANICAL TWO DIMENSIONAL VIABLE BLADE OR VARIABLE GUAGE STABILZER 1350 323| 7-8 7/8" [WECHANICAL TWO DIMENSIONAL VRIABLE BLADE OR VARIABLE GUAGE STABLUZER aus) esol 178337 Sai] 9° 9 716" | MECHENICAL TWO OIENSIONAL VMUAGLE BLADE OR VARIABLE GUAGE STABIIZER eta) esc] —t 74a sos] 43-8 708° ws] a7s|__ acne er | GeO" 375) 375) 49,87: x7 Mati cated 375) 375) 54,261 sgl 787 12 sis|___ 329] 17-2 375) Ee) 3 Ss 375| 375) geil OHOWS 375| 375) 49873) sal 10-128 375] 375) 54261] seal 14708" 17 02" asl a7s|__s7ead 334] ee 375) 25) Meads [N/A sso] nc [N/A 337| a INA seg) 14 708-17 12° ua 339| a [wear resistent hard facing materials, bored for float N/A. Wee.___,.|Tool Size (in) or| . Rata) MAXUH Item Number] hole size (in) Description | Operating | Stand By Siday | S/day_[$/TOOL 340} 121/4" 91/2" Steerable Turbo drill 12000] 575 422395) 341 81/2" 65/8" Steerable Turbo drill 11760) 575) 382083} 342! 6" 43/4" Steerable Turbo drill 11400) 575] |Slick Turbo drilltem Number] TOC! Size ( Description Oparatin or simi Sida a| APE on aga CaaS Sw Sis efor Bae ack 2) ao] S13 67 Spi or Sick with Stress eli and Bore Dak 30 20] 34g] __7"- 8718" — on Mage bl Cla pi or Sil wth tess Rel and Boe Sad 30” 230 SaS| oS 7 Non Map Dr lar Spr of Sk with Ses el nd Bore Back 307 220 350 fon Magic ais 351 Non Map Pon rl Cola Sito Sick wih Ses Ree and Bore ack rr 35a Non Magni on Si or Sick with Ses elf nd Bore ack 120 355 Non Magni Pony Or Cola So or Sek wih Stes Ree end Bore Back 572 720 3s 2ad 355 22d 35q 30 257 F—TNon agate Fx Pony Ca as 358] 6°= 6718" —|Non Mapex Pony Cl ais Seale 7 Non gn ex Pony Colt iol 120] 387a) Rate, WAX LIA tem Number Description ‘Operating | Stand By ‘Siday | Siday_| $7 TOOL 360) 7 75| 7500 364 35| 75 7500) 362] 75| 75 7500] 363 Fost Subs (tess Reif and Bore Ba 75| 73] 7500) 364 oat Subs (tess Relief and Bore B | 75 7506) 365 [Greuatng Sub NA Wa Na 366 [Greuatng Sub 7) wo) s4as700 307 [creuiatng Sub 320] 320) 6327400 36a [Greuatng ub 7060] 2060] — 77,736.00 369 [creating Sub 1260] 1260] #557400 370] Fost vahe ia] a [Sa 20 1120 37 it sub with lat valve go 2112 373 39] 11120] Ei st sub with flat valve ‘sof 11720] 375] it ub with lat vale ‘30 11120] 376 Unive icf and Bore Bac) 20) 17.270 377] and Bore Back) 120| 17820 37a and Bore 6s) 120] 17820 x73 lef and Bore Back) 120] 17820 30 Universal Downhole end Orientng su if and Bore 6c) 320] 17829 3e3] Universal Downhole Bend Orentng subs (stress Relief and Bore Bak) 20] 17820 Tool Size / unit of | Unit price blade size oe measure | esas 3965.55 rig site cutter redress Kt, per set INA 1g site cuter ears hit per set T8675 rig ste cuter redress It per 079630 i site cuter redres Kt per 1178675 ig site eater redress kit pers 2328.00 gst cutter dress hit per set Ina te cuter edres it per set INARat ite MAX LIH | Redres tem Number| hole size (in) Decor pter pee eo ena litany $/ Toot | #70! Siday $day use 391 17:1/4" AnderDrfit tool 910] 910} 88400} 1950} 121/4" AnderDrfit tool 910} 910} 88400} 1950} AnderDrfit tool 910} 910} 88400} 1950} AnderDrfit tool 910} 88400}Tool Size (in) or| Rate] Ces) Item Number] hole size (i) T°! 7 Operating | Stand By Siday | Siday | $/TOOL 395] 171/4" 9.5" AG-ITATOR: 2860) 780 223308] 396] 8 AG-ITATOR 2600) 780} 193554] 397] 6 3/4"-7" AG-ITATOR 2340) 780} 164164) 398] 43/4" AG-ITATOR 2340) 780} 122134]Standard Tigh Pressure | High Temperature PAT = UH ere Description Opering| Sandy Lorena | sins | Operating | stand By | Operating | Stand By Siday/set | Siday/set | $iday/set | Siday/set | Siday/set | Siday/set | S/day/set | S/day set | Suncor [Gyro MaTisnot Save, Charge per 398]meter 25 325 | sas | as olnla [Gyro Maliehot Sve, Minimum 400) charge per Survey 12509 o| _12500 o|___376s0 o| _ 37650 ona Gyro Singleshot Survey, Charge per 403 |meter 325 o| 23 o| sas| a sas] olla [yr alishot Survey, Minimam 402 charge per Survey 12500] of 12500 of 27650] | 17650 lala 403] Electric Wireline Unik 750 Fi 750 0 750 7] 750 70] 353500 aoa eatsiee 200 20 209 200 200] 200 20 200] 48750 405|Side Entry Sob 325 325 325 325 325] 325 325 325| 16250 “oe [rien Sub al aes 75| 75 7 35| 75 75| 75 %5[ 6500 HitAUTOMATED ROTARY STEERABLE DRILLING SYSTEM- The system shall include: (Lump sum include Engineers ‘& Rotary Steerable device, all necessary subs and stabs, near bit inclination, MWD with directional data, Gamma Ray with Azimuthal capability, 4 resistivity ‘curves, MWD/LWD transmission system, annulus/DP pressure and inclination holding capability. The system shall be suitable to be used in conjunction with all other LWD parameters required. MAX LIH Item Number hole size (in) $/ TOOL 407 12.25 1529453, 408 8.5 1529453 409 6 B- Modular Performance Motor, all necessary subs and stabs, near bit inclination, , MWD with directional data, Gamma Ray with Azimuthal capability, 4 resistivity curves, Neutron - Density, MWD/LWD transmission system, ~annulus/DP pressure and inclination holding capability. The system shall be suitable to be used in conjunction with all other LWD parameters required. Rate MAX LIH. Item Number | hole size (in) | Operating | Stand By Siday $iday | $/TOOL 410 12.25 17499 7960. 1573166 414 8.5 17499 7960 1573166 412| 6 17499} 7960| __ 1573166]c- Rotary Steerable device, all necessary subs and stabs, near bit inclination, Modular Performance Motor, MWD with directional data, Gamma Ray with Azimuthal capability, 4 resistivity curves, MWD/LWD transmission system, annulus/DP pressure and inclination holding capability. The system shall be Suitable to be used in conjunction with all other LWD parameters required. Rate MAX LIH Item Number| hole size (in) | Operating | Stand By $iday Siday_|$/ TOOL 413 12.25 31658 16046_| 1744960 414 85 31658 1744960 415] 6 31658 Rotary Steerable device, all necessary subs and stabs, near bit inclination, Modular Performance Motor, MWD with directional data, Gamma Ray with ‘Azimuthal capability, 4 resistivity curves, Neutron - Density, MWD/LWD transmission system, annulus/DP pressure and inclination holding capability. The system shall be suitable to be used in conjunction with all other LWO parameters required. Rate MAX LIH Item Number| hole size (in) | Operating | Stand By $iday Siday_|$/TOOL 416 12.25 37188 18976 _| 2289456 417 8.5 37188 2289456 41g] 6 37188]‘e-LWD (Gamma Ray, 4 Re: urves, Neutron - Density) device, all necessary subs and stabs, MWD with directional data, MWD/LWD transmission system. Item Number | hole size (in) | Operating Siday 419 12.25 9652 1398166 420 8.5 9652 1398166 424) 9652| F Rotary Steerable device, all necess data, MWO/LWD Item Number | hole size (in) | Operating Siday 422 12.25 22637 1024833 423 8.5 22637 1024833 424) 6 22637| 'g Rotary Steerable device, all necessary subs and stabs, near bit inclination, Modular Performance Motor, MWD with directional data, MWD/LWD transmission system, annulus/DP pressure and inclination holding capability. The system shall be suitable to be used in conjunction with all other LWD parameters required. Rate Item Number | hole size (in) | Operating | Stand By $iday Siday_|$/TOOL 425 12.25 29938 15666 _| 1240340 426 8.5 29938 15666 _| 1240340 427] 6 29938] 15666] __ 1240340}