Magazine design for ADC Drilling Company ( Majlis )

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سـلـجـملا ةـلــــجـــم2018 وينوي 6 رادصلإا ةيبرعلا رفحلا ةكرش

AL MAJLIS LOCAL NEWSLETTER COPYRIGHT ARABIAN DRILLING COMPANY. ALL RIGHTS RESERVED VOLUME SIX ISSUE NUMBER SIX (JUNE ERAMDESIGNWEBSITE:EMAIL:FAXTELKINGDOMP.O.BOXRAHAFPRODUCTIONTAWFEEQEDITOR2018)INCHIEFALHALALANDREVIEWALLEHYANI4110,AL-KHOBAR31952OFSAUDIARABIA:+966-13-829-7110:+966-13-882-6588ADC-NEWSLETTER@ARABDRILL.COMWWW.ARABDRILL.COM&PRINTGALLERIAMEDIAPRODUCTION

01 ADC Publishes it’s First Annual Suitability Report 03 King Khalid Award 04 ADC 2018 Expansion Plan 05 ADC Fleet Expansion Workshop 07 ADC Safety & Security Forum Contribution 08 “Clean the Beach Drive” Campaign by SPE - Trips & Social Activities Team & TAQA 09 FAJR Project Support Phase 10 NOOR Project 11 Code of Conduct 12 VAT Implementation Another Success Story in ADC 13 ADC Visits Dammam Technical College 14 TAQA Recruitment Campaign 15 SADA / DAD program 16 ADC Team Building Initiatives 17 ADC visits Saudi embassy in Algeria/ 25 years seniority ! / New comers 18 Newly born / New promotions 19 ADC’s Managing Directors Honors Supply Chain Logistics Team 20 Khafji Team Achievement 2018 24 WLTI” 26 Leadership Training for Rig Supervisors 27 ADC Wins Q1 2018 Rig Contractor Award 28 New Rigs Initiation Project with HongHua (HH) Group CONTENTS

ADC Publishes its First Annual Sustainability Report Objectives and Benefits of Sustainability Reporting • Clear and integrated story on ADC impact and value creation • Report to stakeholders • Highlight Values, governance, and initiatives • Support the company’s future development ADC has released its first annual Sustainability Report for 2017, signalling its efforts towards increased corporate accountability and creating a more environmentally friendly and sustainable global economy. Using a number of widely used sustainability reporting benchmarks, the Report creates transparency and promotes trust as it aims to drive smart, sustainable, and inclusive growth. The Report provides key sustainable information which can be used by government agencies to assess the impact and contribution of various activities. It is also a valuable resource for external stakeholders to understand ADC’s core values and operating philosophies. 01 | ISSUE Enhanced6 reputation Build trust stakeholderswith Showcase company value chain Established systems and controls Measures for long term profitability Improved risk ManagementrelationshipsEnhancedwithregulatorybodies employeeIncreasedloyalty Reducedcostscompliance Increasedloyaltyconsumer

Report Contents ISSUE 6 | 02 Our Approach to Sustainability Planet: Growing Responsibly Performance: Achieving Excellence in People:OperationsEmpowering our People • A Message from Our Managing Directors • Vision, Mission, Values and Strategy • Governance • Stakeholder Engagement • Material Issues • Environmental Compliance • Focus on Facilities • Energy, Water & Waste • Company Growth • Service Quality • Local Suppliers • Our Employees • Saudi Communities 4123

ADC Won 1st Place in 2017 King Khalid Award

On the 11th of March 2018, ADC Managing Director Ali Bin Hamid Alghamdi presented appreciation shields to ADC team that contributed in winning the award in the category of “Responsible Competitiveness” In RC Award, driven by the King Khalid Foundation and supported by the global advisory and standards firm AccountAbility, as ADC has been selected the first place winner in the 2017 King Khalid Award.

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Plan A total of 17 drilling rigs are set to be added to ADC’s onshore activities during 2018, of which two (AD-44 and AD-45) are already part of the ADC fleet, and the rest will be brought in from outside Saudi Arabia. This is in keeping with ADC’s overall expansion plan for 2018.

ADC Expansion2018

ADC Fleet Expansion Workshop.

22nd of February 2018: ADC manage ment conducted a one-day workshop for all departments related to the fleet expansion to familiarise them with the operations and brainstorm ideas for each department. The workshop, which was held at the Sofitel, kicked off with a project overview by VP Op erations Shams Rehman, participants were divided into seven brainstorming groups. Afterwards, all their suggestions were collat ed, and each action item was discussed by the group, with the final suggestions being sent to the concerned departments for fur ther action.

Workshop.ExpansionFleetADC ISSUE 6 | 06

ADC Participates in Ministry of Education Safety & Security Forum

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20 December 2017: ADC participated in the first Safety & Security Forum organised by the Department of Safety & Security under the Ministry of Education, giving the com pany the opportunity to serve the commu nity by sharing its industrial expertise. ADC Training Manager Ali Dawood presented a lecture on the use of new training technolo gy, pointing out how the use of a simulator simplifies the learning process.

ADC’s participation in the forum is part of its wider commitment to sustainable develop ment and community service, as evidenced by its participation in a range of social initi atives which will increase the level of aware ness and safety in all educational facilities in Saudi Arabia.

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Aside from clearing waste which would harm the natural ecosystem, the campaign also included an awareness programme designed to educate the public on coastal litter ussies and to encourage the campaign was organized to help provide a clean and healthy local environment and to avoid leaving trash and waste that will affect and harm the natural ecosystem.

ADC participated in a coastal cleanupclean up campaign atin Al Azizyah Beach that was arranged byor ganised by SPE - Trips & Social Activities Team & TAQA, as part of its corporate sustainability programme.

Beach Clean Up Drive by “Clean the Beach Drive” Campaign by SPE - Trips & Social Activities Team & TAQA

The campaign was a success, as was the awareness program designed to educate on coastal litter issues and to encourage positive changes to reduce litter and protect the quality of the Kingdom’s aquatic environments. Kingdom of Saudi Arabia Section

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ADC Inks IT Support Contract with Blueprint Technologies

ADC’s IT Department have signed a one-year contract with Blueprint Technologies to provide offsite dedicated support and consultation for the SAP system starting from the end of March 2018. In which the support will include all modules and functionalities implemented in ADC along with providing limited advanced support for developments.

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Noor

The NOOR Project continue progressing, having the first two simulators arriving to Saudi Arabia which is fully installed and ready to operate the necessary testing. Drilling Systems Instructor Program (DSIP) training started on 3rd of April 2018 for TDS well control instructors crew in order to train them & get them familiar and familiarize on how to use these new simulator Phasesystems.1 is going to be set as completed once the new training material is finalized, submitted for review, and accepted to be added to ADC’s Training Matrix. The project moves forward to in its first phase by finalizing new training material development and review for acceptance to repli cate later in the training matrix of ADC. The sec ond quarter of 2018 will be a critical time for the project as ADC will be selecting the assessors for all the functions, the necessary preparation for the assessment process will be conducted in phase 2 of NOOR Project. Project Phase 1

REPORTING VIOLATIONS

Code

Transparency is the practice of openly and honestly disclosing information to stakeholders in the company including That guide the decisions, procedures and systems of an organiszation in a way that: (a) Contributes to the welfare of its key stakeholders, and (b) Respects the rights of all parties affected by its operations, and. (c) Informs the employees of the company’s expectations

All violation reports submitted to ethics@arabdrill.com or (+966) 050 953 7766 will reach ADC’s Internal Audit Department, who will protect the identity of the caller. Information about the specific incident will be kept confidential to the extent possible, within the necessary boundaries of the fact-finding process. ADC’s Internal Audit Department will ensure fair treatment for the personnel involved in violations of the Code, and provides the right of defense of any such personnel.

A Code of Conduct are theWhat is a Code of Conduct?

The public Employees Decisionprocessmaking

The workshop serves as part of an ongoing process of educating ADC employees about ADC’s ethics, standards, and values so that they may do their jobs effectively and share their grievances and concerns in a healthy and productive manner. The Compliance Depart ment’s focus has been always to help ADC employees to understand the importance of discipline, behavior, standards, ethical values while performing their jobs and promoting a better workplace environment.

Below is a brief summary of the Code of Conduct. of Conduct

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RulesResponsibilitiesStandardsValuesPrinciplesofbehavior

The financial position of the company including risk An outline of your strategy and business model Salary information Open source data and peer review Customers Investors

DEFINITION

TRANSPARENT MANAGEMENT

In keeping with ADC Management’s goal of spreading awareness about the newly developed Code of Conduct, ADC’s Compliance Department took the initiative of conducting an interactive Code of Conduct Workshop for all ADC departments. The workshop covered topics such as compliance with laws and regulations, use of assets, confidentiality, reporting violations and more.

29 January 2018: ADC successfully filed its first VAT return with full compliance with the Government-stipulated requirements, which marks the company’s successful completion of its VAT Implementation Project.

The government’s strict requirements and deadline made this a challenging project, however it was implemented successfully and went live on 1 January 2018.

VAT ImplementedSuccessfullyatADC

An internal team consisting of Tax Specialist in Finance Hussain Al Matrood, and SAP FICO Consultant Muzib Khan, took the initiative of implementing the VAT compliance regulations within ADC and OFSAT, thereby negating the need to engage a third party except for a quality check, which was carried out by an audit firm.

As a token of appreciation for their hard work and initiative, ADC management presented the team with memorial shields.

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ADC Visits Dammam Technical College

On the 12th of February 2018, Arabian Drilling Company visited Dammam Technical College to obtain a sincere welcome by His Excellency the Dean of the College Ahmed bin Abdul Karim Al-Thunayan, Vice Dean for Training Hafez bin Ayed Al-Ghamdi, and Secretary of the Council and Social Responsibility Nasser bin Eid Al-Ghamdi. The visit included an inspection field tour of the Dammam Technical College to identify the needed human re sources and available fittings.

The conference began to discuss ways of joint cooperation, and this visit comes to pres ent Arabian Drilling Company’s needs of technical personnel, which amounts to about 700 available jobs. ADC field visit staff consisted of ADC’s General Manager - Administration Tawfeeq Al-Halal, Training Manager Ali Al-Dawood & Manager of Contracts and Legal Affairs Mohammad Al-Haidar and Recruiting Supervisor Meshaal Al-Saab.

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ADC Organises Recruitment Campaign in Association with TAQAT Centre

ADC organised a large-scale recruitment campaign in cooperation with the Dammam Energy Center to recruit to train more than 500 young Saudis and qualify them to work in the company’s projects.

A group of 41 employees who have been selected from ADC rig location & adopted in SADA Program on March 2018 to join the NWD Program (National Workforce Development) to be ADC future Assistant Drillers.

In order to meet ADC’s growing demand for competency development, the company has launched the DAD 10 Program, which will enable experienced Derrick Men, Roustabout Pushers and floor men to develop their skills and qualify as Assistant Drillers.

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ADC Launches DAD 10 Program SADA

ADC remains committed to organising a fun day for employees to promote communication and cooperation among colleagues and to create a more friendly working environment. Socialising and making friends in the workplace is one of the best ways to increase productivity in the office. The team building activities also improve workplace pro jects that involve team building as employees better understand each other’s strengths, weaknesses, and interests.

ADC Team InitiativesBuilding

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ADC visits Saudi embassy in Algeria 25 years seniority Abdulla Fahed Al-Ahmed Operations ManagerAzzedineDhahranSmidaRigManager Kevin Christopher Tilaka Rig ManagerMicah Prowse Hallum Rig Manager Clement Uche Ubaru Rig ManagerUmar Naveed Service Quality Manager 17 | ISSUE 6 JoinersNewemployeename hire date Seniority Subedar S.Abdul Razak Chootakul ChaMs.oongnoen Habib Abdula Ali Alsalem Fawzy Salman T. Aldakhlan Ali Husain Ali Aljasem Husain Matooq Ibrahim Albrahim 11-02-199307-02-199303-01-199302-01-199306-01-198806-01-1983 252525253035

Mohamed A Alhadi Al Salman Talent Development Manager Sayed Muharram Husain Distribution Manager ISSUE 6 | 18 *These promotions from October 2017 to February 2018, promotions after this date will be announced in next editions.

Abdulmohsen Abdulla Salik

Mohd

Norah Mohammed Almohammed

Juman Abdullah

Rig Manager

Ahmed Ali Mohd

Mohd Zaid H. Aalashwan

Rig Manager

Waleed Hassan (ESM)

I Alkhairi Employee Services Manager

Hajji Nayah Walid Abouaydah

Promotions

Qahtani Rig Manager

Abdulla M Al Salman Sourcing Manager

9 February 2018: Members of ADC’s supply chain logistics team received certificates of appreciation for their support in clearing urgent equipment (travelling block) required for AD14. Employees that were honored consisted Logistic Super visor Ali Al-Wadei, Logistics Specialist Fahad Al-Ahmad, who led the team, and Dhahran base forklift operator Abdullah Al-Mubarak, who offloaded the equipment. 19 | ISSUE 6 ManagingADC’s Directors Honors Supply Chain Logistics Team

During the event ADC highlighted its achieve ments, community initiatives, and training of the national cadre. ADC demonstrated the proper use of fire extinguishers in a fire drill, and covered the basics of first aid for the benefit of the attendees.

25 March 2018: As part of its corporate social responsibility program, ADC Khafji participated in the sixth edition of the “All of Us Are Khafji” Festival, which was held on the Al-Khafji Corniche.

Khafji Team Achievements 2018

A certificate of appreciation and a commemora tive shield were presented to ADC Khafji, which was received by Eng. Majid Saleh Al Enazi on be half of the company.

ADC Khafji Participates in 6th Edition of “All of Us Are Khafji” Festival

ISSUE 6 | 20 AD20 20 CELEBRATIONYEARSAT RIG WITH KJO MANAGEMENT

ADC Khafji Participates in Coast Guards Exhibition

ADC demonstrated personal protection procedures and the correct use of safety equipment for workers in maritime and land work fields. ADC also demonstrated first aid techniques and used a fire simulator to teach participants how to use fire extinguishers.

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Coast participationExhibitionGuards

22 March 2018: ADC Khafji participated in the Coast Guards exhibition, using the opportunity to spread awareness about its achievements, community initiatives, and training of the national human resource.

7 March 2018: ADC Khafji marked 14 years without work injuries by hosting a luncheon for the commanders of the Security Forces. The event was hosted by ADC Khafji Base Rig Manager M. Majid Al Enezi and attended by the Governor of Khafji Mohammed Al-Hazza, Police Chief Colonel Abdullah Al-Hakbani, Assistant Commander of the Border Guard Sector Colonel Mishary al-Mutairi, and various government employees.

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ADC Khafji Celebrates 14 Years Without Work Injuries

The ceremony was also attended by ADC Khafji Operations Khafji Base Rig Manager Eng. Majid Al Enizi, Rig Manager Ivan Dzyubak, Safety Supervisor Amer Al Enezi, Purchasing Supervisor Rafi Al Shammari, and Post Supervisor Saleh Al Shammari.

ADC Khafji Celebrates 20 Years of No Work Injuries at Arab Driller Excavator-20

14 May 2018: The Marine Production Department celebrated the 20th anniversary of the Khafji joint operations without any work injuries at AD-20, the ceremony was held in the Department’s headquarters in the Southern region.

The ceremony was attended by Acting Director of Marine Production Department Dr. Abdullah Al Ajmi, Department of Production Engineering and Field Services Dr. Abdullah Al-Zafairi Nazer, Acting Supervisor of Well Services Mr. Mohammed Al-Hamdan, and a number of department employees.

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Mohammed Al-Hamdan welcomed the audience, which was followed by a speech by Eng. Majid Al-Enizi. In his speech Al-Enizi highlighted the 5o-year history of the effective partnership between the Arabian Drilling Company in Khafji and the Khafji Joint Operation (KJO). He also commended the Marine Production Department to conduct safe work policies and working as a team with the Arabian Drilling Company. He then presented commemorative shields to the employees of the Marine Production Department in recognition of their ongoing efforts and support.

The dredge has carried out 297 missions in Khafji and Al Hout field.

The management of Khafji Joint Operation (KJO) has approved the request of the Marine Production Department to employ AD-20 on 20/07/2017 to monitor the wells and ensure their safety, indicating the company’s keenness to preserve its assets. To date, AD-20 has a total of 297 units in Al Khafji and Whale field that includes reading well pressure and temperature monitoring, advanced monitoring of oil and water levels, and the implementation of a surface well survey of 39 offshore wells. Based on these results, 26 wells were transferred to the drilling and well-maintenance department to implement appropriate corrective work for wells.

Without

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6 February 2018: AD-20 celebrated the prestigious 20 Years WLTI milestone in a ceremony attended by ADC and KJO management. The ODF Superintendent congratulated the crew on their achievement and wished them continued success in the future. KJO’s Operations Supervisor thanked the crew for doing an outstanding job particularly during the second half of 2017, as they completed several jobs ahead of schedule, resulting in total savings of 15%. ADC Management added their appreciation that each individual on AD-20 is committed to safety. LTI

26 February 2018: AD-12 marked its completion of 10 years without LTI with a celebration which was attended by ADC and Saudi Aramco management. During the ceremony the General Manager – Drilling & Workover highlighted ADC’s commitment towards a strong Health and Safety culture and recognised ADC as the best drilling contractor. 10 Years Lost Time Injuries

AD-12 Celebrates

AD-20 Marks 20 Years Without

AD32 has achieved 10 Years without Lost Time Injury on 11 January

Manager of the Gas Drilling Department Saeed A. Al-Khathami, congratulated and thanked the entire team by noting that this outstanding achievement could not have been accomplished without committed dedication and collaborative teamwork. Al-Khathami said the 10-year safety record is impressive in any business, but when con sidering the nature of work of drilling crews, it reflects safety excellence. Al-Khathami added that the rig’s safety re cord is particularly impressive considering its long operational history in various loca tions. Since 2005, the rig has conducted drilling operations in a wide range of loca tions, ranging from fields in Tinat, Ghazal, Shedgum, ‘Uthmaniyah, Hawiyah, and Khursaniyah — one of the most challenging drilling fields in the Kingdom. Achieving such an excellent record is a re sult of strong teamwork, which drives safety and high performance, and that teamwork is professionally exemplified by the leadership and management of both Saudi Aramco and Arabian Drilling Company throughout the years of operation.

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D&WO Lauds Rig for 10 Years Without a Lost-Time Injury 2018: Members of Saudi Aramco Drilling and Workover Operations (D&WO) management and crews recently celebrated the milestone of a rig that has op erated 10 consecutive years without a single lost-time injury. Speaking at the milestone celebration cer emony at the rig site, D&WO General Man ager Omar S. Al-Husaini emphasised that while running a successful operation, the rig team devoted equal commitment to safety awareness and implementation. “The rig crews continue to exhibit and demonstrate proficiency in safety preparedness, and their 10-year milestone is a reflection of that sound commitment,” he said, adding that in addition to this great safety milestone, the rig is considered one of the most efficient rigs in the fleet — a true reflection of the D&WO team commitment to Operational Excellence.

“All of this has delivered an exceptionally valuable accomplishment,” said Nadeer A. Al-Zayer, superintendent of Division 2 in the Gas Drilling Department. He also thanked the Arabian Drilling Company management for its support and continuous momentum in maintaining a high standard of safety that highlighted the effective teamwork of Saudi Aramco rig foreman Harold W. Seeley and senior rig superintendent Moussa Beneld jemoul. ADC Vice President of Operations Shams Rehman, along with Rig Division Manager Nahel Dabjan, congratulated the rig staff on the great achievement, com menting that safety is a commitment that each employee must embrace not only in their minds, but also in their hearts.

Khafji Base team of the 14 Years WLTI Training for Rig

2018

Supervisors ISSUE 6 | 26

course were

ADC and covered the following topics: LEADERSHIP QUALITIES TEAM CULTURALCHALLENGINGCOMMUNICATINGGIVINGSITUATIONALMOTIVATIONDEVELOPMENTLEADERSHIPFEEDBACKASATEAMCONVERSATIONSAWARENESS AD49 –

Leadership

Continuing its efforts to develop leadership skills for managers, ADC has partnered with the Dale Carnegie Training Institute to offer leadership training. The three-day workshop, which was held from 12th till 14th of April 2018 was geared towards Rig Superintendents and Assistant Rig Superintendents and aimed at enhancing their leadership skills with a focus in developing teams and motivating the troops. This workshop, which was attended by 15 participants, is the first of a 8 planned workshops in which will cover all the company’s Rig Superintendents and Assistant Rig Superintendents. the tailored for Celebrates One Year Without LTI

The contents of

Best regards Kyel PresidentHodenfieldofIDS

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President of IDS Kyel Hodenfield congratulated all the rig crew members for their contributions and their commitment to efficiency and safety.

ADC Wins Q1 2018 Rig Contractor Award

IDS, in its inaugural Rig Contractor Quarterly Award Program, chose Arabian Drilling Company rig ADC-43 as the winners for Q1 2018. ADC-43 is working on the Ghawar Gas project in Saudi Arabia.

The award supports the active engagement and cooperation of rig crews to work, both individually and collectively, within their assigned rig in a way that supports the IDS vision of becoming the best well construction company in the world in a way that is not just safe, but Schlumberger Safe.

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New Rigs Initiation Project with HongHua (HH) Group

The Arabian Drilling Company (ADC) and HongHua (HH) Group marked the successful delivery of two custom designed heavy rigs to Saudi Arabia’s Dammam Port last month. The new AD53 and AD54 rigs, built to Saudi Aramco specifications, were produced by HH Group in China for the first time. A further four rigs – AD55, AD56, AD57, and AD59 – are currently being built and tested at the HH Group’s fabrication facility and the last unit is set to be delivered by September, 2018. Upon completion, the rigs will join ADC’s fleet and begin drilling oil and gas wells for Saudi Aramco in line with an Integrated Drilling Services agreement with Schlumberger Project Management. The ongoing project’s success would not be possible without the collaborative efforts of ADC management, the operations and technical teams, and the HH Group project team.

adc majlis magazine Issue 6, JUNE 2018

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