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Message from CEO

Welcome to Fariiq Wahad! This is the first edition of an elite magazine solely produced by unique drilling people for great drilling people i.e. the whole drilling function. I am very proud to have been invited to write an introduction. Likewise I am extremely proud to work in ADCO Drilling – this is a great place to work! It is a place where we do not just give people a job – we give our people a career!

When you are reading this and future magazines then you will learn how everything is connected to our drilling vision and to our drilling strategies. I like to communicate our drilling vision once more. This is one of my roles as a leader and I want to help everyone believing in our vision : ” ADCO Drilling is the most unique and highest performing organization in the Gulf and in the Middle East. Where we work together with the assets with zero harm, we learn and grow. We add value. And we feel valued! “ You will say “Shukran! what a very nice and blooming statement” – but what is really in it for me as one of the ADCO drilling people?? And that is a smart question! I will put this a bit more into perspective on where we are all contributing. In its simplest form we can say that Drilling has to drill 260 wells in 2013 and also need to be ready for the future. Our future will see over 50 rigs and over 500 wells drilled per year! This is massive by any comparison. How do we achieve this? We have 3 strategies and these three strategies always will be with us ; they do not go away!

Strategy number one is the organizational strategy. Our aim is to strengthen our organization in all we do. We have a few selective underlying powerful sub-strategies. One example is enhanced rig fleet capability which means to deploy more rigs and hoists in our fleet. These rigs and hoists are built in China and we have had many of our people gaining experience and skills in rig commissioning, starting them up and taking them through the learning curve as drilling supervisor. Another good example is the rig-less capability; it has delivered ADCO over

75 wells during the last 3 years at the lowest cost per barrel you can imagine. This capability is good business and we need more of it. The second sub-strategy is learning organization. We all get a lot of learning when we visit the souq al taleem for practices worth replicating based on positive learning and the events needing avoidance related to our major business mishaps. Other examples are our one page programs, our trainings plan, which is the most comprehensive in ADCO, peer reviews for category A wells, after action reviews, the progress charts and dedicated performance management with learning flashes to name a few. The third sub strategy is about enhancing the people capability in drilling. Examples are recruitment of good people from all over the world. This brings diversity and diversity breeds creativity. In Drilling we have more than 60 nationalities. You can learn from each! We have a number of drilling academies including the new comer academy, the CAMS real work development academy , the technical assistant academy and the Shell Round 1 and Round 2 academy, the cementing academy.

The good news is that everyone in drilling can get involved in any of these academies either as a participant, a teacher or an observer. Under this strategy also sits the personal development plans which everyone in drilling should have. When asking the question “what is in it for me?” then this is the answer…..development for everyone! But you need to be pro-active! But there is more …..creativity is in everyone PCR and we expect drilling people at least to work 7% of their time on creative ideas….thinking out of the box yet in such a way that the product is do-able. We are not a research institution, our focus always must be on implementation and deployment of equipment / best practices. Get it in the ground! Celebrate and share the idea and we have some great examples in 2013 think about ADCO world first wire line coring. Or the cased hole MDTs, the 10,000 ft long horizontal wells or record rigmoves. Everyone in Drilling has creativity in his / her PCR. Do not wait for the ideas to come to you , generate them yourself,


be creative! Snap up a spot bonus for a unique idea! As you can see we are no different from the Googles of this world!

Our second strategy is the partner strategy. Our aim is to maximize the value from and with our partners. We should always think in terms of “win-win”. All our work is done through contractors and we consider them our partners. Our largest and most prominent partner is NDC with whom we have a multi-billion US $ contract for drilling and workover services. ADCO and NDC are sister companies and we have a long term relationship. We are able to demonstrate high value from our long term relationship with NDC. One example is the top quartile safety performance. ADCO and NDC have created one of the safest places to work in the world. This is the expectation of both ADCO and NDC senior management for us employees to make this happen all the time. We all should feel very proud to be involved in this. In Drilling we have a total of 186 contracts for a total of xxx services. Almost all of us in Drilling get involved with contractors whether that is in drilling services, geomatics, equipment supply, locations and so forth. The aim is that we all get the most out of our contracts and we do that by building relationships with trust and respect. One example to do this is through quarterly ADCO and contractor business performance reviews organized by contract administrators, or non-conformance follow-up whereby we focus on improving and supporting rather than just penalizing. We have solid systems in place for all of this and the contract administrators and contract planning team need to work together in this. It boils down to “getting better together”. The third and last strategy is the operational excellence strategy. Drilling aim is to develop a sustainable performance culture. This includes the delivery of safety leadership in all our operations as well as the well delivery limit also known as WDL strategy and they go hand in hand. Drilling safety is focused around 3 core strategic themes : compliance, focus

on the right risks at the right times and leadership of our people. Safety is not only just a business priority in Drilling. Safety is more than that. Safety stems from our core values. It demonstrates our respect for people. It is in no way acceptable to hurt people – physically and mentally. The WDL strategy is about treating well delivery performance like safety and everyone has clear targets in their PCR. The impact of well delivery performance is clearly communicated to senior management during the bi-weekly CEO meeting and there is in the ET always a lot of discussion, interest and high challenge yet also high support for the work that Drilling does. We strive for design and execution optimization through integrated well planning, DWOP and AAR, key technology deployment, process and procedure optimization, and performance norms application for both flat time and hole making in terms of days per 10,000 ft. The PD-cubed , rig-league and rig-move league are important performance management and reward tools. Although Drilling may look like an execution focused activity no single foot will be drilled without any of the other teams in drilling : Technical Services and Well Services, Geomatics and Rig Move, HSE, Planning and Support, Rig Expansion, Academies. The role of Drilling within ADCO has been redefined as of June 1, 2013.

The merger of 2 divisions and one department has led to a high performance function called Drilling. ADCO CEO and senior management team has given Drilling the accountability and the trust to deliver our business as such. Our business model is best described in the poster “ haffara hamlool” which I recommend everyone to study. Let us make this happen and let our behaviors be guided by ADCO core values. Work Fariiq Wahad! Think Top3! AlNajah wa Alfawz. I am extremely proud to be a member of the leadership team of such a high performance function, ADCO Drilling. Chris Kuyken, VP Drilling.


achievement

Shell Round 1 & 2 Certificates An Investment in Our Future

41 years ago His Highness Sheikh Zayed Bin Sultan Al Nahyan, the late President of the UAE, had a great vision. That vision has created what the UAE is today: a country that numbers among the top 10 most competitive nations in the world - just 41 years after its formation. However, his vision of development went beyond infrastructure and landscaping. The late Sheikh Zayed always emphasized the importance of building human capital, saying: "Wealth is not money. Wealth lies in men. This is where true power lies."

And so he focused on education as a top priority for the UAE, putting all efforts into raising new generations of educated Emiratis, who could work hard to serve their country. 41 years ago Shell also had a vision – to ensure that both people and wells are safe. To achieve this Shell decided to invest in its own future & people and developed a rigorous training program for drilling staff. On the 1st March 1973 Shell introduced the oil industry’s first distance learning program for all its Drilling Engineers and Drilling Supervisors.

Today’s Shell's Wells Group employs some 1,700 people overseeing approximately 17,000 active wells that the company operates around the world. On joining the company, every employee working in the Wells Division, is issued the highly-intensive Wells Distance Learning Package (WEDLP) – nine volumes of thick books that deal with the basic knowledge that Shell expect a wells engineer to know. After all these years it still is a unique program in the industry.

Well Engineers are required to study these books during their own time (approximately 800 hours of self-study!), and each chapter has "yellow pages" of questions and assignments designed to make sure they understand the material before being tested in earnest. In addition, classroom and online training is offered to emphasize some of the material.

The entire course takes between two and four years to get through, with the first exam – which Shell calls the "Round 1" exam – taking place after a year or two. In this 1 day exam the candidates prove their knowledge of the key foundations of Drilling regarding rig size limitations, drillstring design, well control, mud & cement engineering, hydraulics, etc. However, the main difficulty is the limited time given, which determines the well engineer’s capability to work under pressure. Anyone employed as a Drilling Supervisor or Completion Supervisor has to have passed Round 2, which takes place at the end of the course. The 1.5 day Round 2 exam consists of 3 x 3.5 hour papers, on casing and tubing design, advanced well control, and a general paper covering other drilling related subjects. The Shell training program is subject to continuous improvement and Shell ensures that competency development is achieved with both Shell staff as well as contractors in key positions. One of the improvements was to separate and introduce an additional training path for Completion & Well Intervention (CWI) Engineers and Supervisors with more focus on completion design, wireline and coil tubing operations, etc. to account for the aging wells and mature reservoirs.


From a career point of view, it is highly important for a Shell Well Engineer to know the material thoroughly:

1. Failing Round 1 three times or Round 2 twice – means that there is no more career progression for the individual in the Wells Discipline within Shell.

2. While passing Round 1 exam results immediately in a certificate – passing Round 2 exam does not! The Round 2 Certificate is only obtained after a minimum of 1 year of active work as Drilling or CWI Supervisor. Its ownership demonstrates experience and capability to run a rig operation.

3. Since 2006, passing Round 1 and 2 exams has an additional benefit – accreditation that counts toward a Master’s of Science (MSc) at the Robert Gordon University of Aberdeen or the University of Houston. 4. Mature hires are also expected to take Round 2 exam if they are being taken into operational roles. Now about 2300 employees have sat the Round 2 Well Engineering exam since 1973, and more than 250 people have sat the newer Round 2 Exam on Completions & Well Intervention. In recent years, the pass rate for the Round 2 exams has been around 80 percent.

ADCO and NDC have so far achieved a 100% passing rate – Yes, ADCO is now part of the Shell Round 1 & 2 story. As consequence of the Macondo Blowout and the ND16 Well Control Incident (2010) ADCOs leadership team decided to further improve their Drilling Engineer’s and Supervisor’s competence by adopting Shells training program with great success. In May 2012 the 1st ADCO Drilling Engineer, Abdulla Mubarak Bin Shamlan, passed Shell Round 1. He has since passed the Round 2 exam as well and has been promoted to Teamleader. Additionally, 14 ADCO and 3 NDC staff have passed their Round 1. This effort was recognized by Shell International with the Upstream International Impact Award for ‘Innovation, Sustaining Growth, and Reputation’.

The best example for the sustainability of this training program is that ADCO now already has a young Emirati, Ali Mubarak Al Braiki – who successfully sat Round 1, training the next batches of candidates under the guidance of a Shell secondee, Eleonora L. Lichtenecker. With this the training of many more future Drilling Engineers and Supervisors is ensured – in line with the vision of the late Sheikh Zayeds of educated Emiratis, working hard to pass on the knowledge and competence to serve this country.


Team Work

STORY OF

SUCCESS “A true commitment to tapping all of the available work fields, combined with a high enthusiasm for acquiring knowledge, broadening horizons and benefiting from modern science is necessary for the UAE to succeed in taking a forward step into the 21st century” ...HH Sheikh Khalifa Bin Zayed Al Nahayan-the President of UAE.

In spite of the resilience of the UAE, the outlook for the coming years remains challenging. However, ADCO’s core business remains strong based on its performance in recent years. Furthermore, the Organization has proven its ability to produce stable and robust results. With this industry, we will continue to


achieve our goals and further cement our position as the region’s leading onshore oil operations group. Please accept my heartiest congratulations on this glorious achievement - Sheikh Khalifa Excellence Award (SKEA) with the highest score in its Gold Category. Having won this high recognition ADCO, confirm its name as the national (UAE) as well as an International leader.

Another feather in the cap is Shell Round 1 & Round 2 certifications in Well Engineering. It makes me very proud being the first in ADCO accomplishing that. Those were a product executed by ADCO Drilling Division Vice President Mr. Chris Kuyken, who has pursing continues improvements in our organization. It is an achievement to be the first and others are taking the same steps and do even better. It’s very important at this time when the whole oil industry locally or internationally is expanding is to initiate this program to provide a solid foundation of experiences & knowledge to enhance the learning curves of an employee and assure ADCO employees standard meeting

the international ones. And all who passed R1&R2 afterwards are simply my story of success.

In closing, I would like to take this opportunity to extend my sincere thanks and gratitude to Abdul Munim Saif AlKindy, Chief Executive Officer of ADCO for initiating the program, his valuable confidence and insightful vision. I also sincerely thank the Group’s management and employees for their commitment and efforts this year and our customers and shareholders for their ongoing support and trust. I look forward to another successful year together. ”Despite all the achievements (within the UAE Federation), we still have an ambition for more. That is my way of looking at things.” Our father, Sheikh Zayed Bin Sultan Al Nahyan. My best wishes for a distinguished and bright future. ABDULLA MUBARAK BIN SHAMLAN Drilling Function Team Leader


History

This ancient sketch originally from "The Annals of Salt Law of Sichuan Province" shows the structure of the ancient derrick.

Ancient Drilling Technologies

There are many articles talking about the future of oil and gas well drilling. However, as the Chinese philosopher Lao Tzu said 2600 years ago: “A journey of a thousand miles begins with a single step.” Knowledge of the past is a key to understanding the present. So, we would like to use this blog to explore some activities of the earlier pioneers in drilling.

trips. Rocking movement of the balancing beam created the percussive impulses on the bit, which sometimes weighted as much as 300 lbs. By alternately lifting this tool and letting it fall, the Chinese achieved a well depth of 2000 ft. Wonder the rate of penetration (ROP)? 2 feet per day! The Orientals were willing to work as long as 3 years to complete a well. This testified the saying: Man who wants pretty nurse must be patient. BTW, Confucius did not say it.

The ancient percussive cable drilling system was called “churn”. The derrick had height of ~ 33 ft and all parts of the rig were made from wood (mainly bamboo). A large wooden drum had 16 ft in diameter and was used to perform round

The bamboo tubes were used as pipelines, carrying both brine and natural gas for many miles, sometimes passing under roads and sometimes going overhead on trestles. Among other uses, natural gas was used to heat evaporation pans of brine to make salt: perfect example of killing 2 birds with 1 stone.

Around 2000 years ago, Chinese in Sichuan province originated deep drilling. The primary motive for deep drilling in China was the search for salt. Even as recently as 1965, 16.5% of China’s salt supplies came from brine pumped out of deep boreholes, making this source of supply second only to sea salt.

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The deep drilling for brine yielded natural gas (primarily methane) from time to time. The boreholes producing methane were known to the Chinese as “fire wells”. So the drilling for natural gas followed and was developed at the same time.


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Environment

TOP 10

Tips on How to Reduce Food Waste

We in general is a serious global issue!

Abu Dhabi produces around 10.565 million tons of waste per year, over 72 % of which originates from the construction and demolition, 6% from the industrial and commercial sector and 8% from the agricultural sector. The municipal solid waste comprises up to 1.105 million tonnes from Abu Dhabi's overall waste generation per year. According to a report published in 2011 by the Centre of Waste Management —Abu Dhabi, 39% of all the Emirate's municipal solid waste is organic material. This is disposed of each year contributing to landfills, carbon emissions and ultimately contributing to climate change.

We aim to encourage the public to make wise decisions when buying their groceries and when cooking their meals in order to waste as little food as possible. By doing this, it will benefit the society and the environment. Follow our Top 10 Tips on how you can help reduce the amount of food waste in the country.

Cook less: Make enough food for the number of guests at the table. If you are six people don't cook food for 10. The prophet Mohammad (peace be upon him) said: the food of one person is enough for two, and the food of two persons is enough for four. 10

Buy locally produced food: Flying food across continents increases local transportation emissions.


Be aware of expiry dates: Keep an eye on the 'best before' or 'use by' dates.

Avoid filing up your plate: When you are out at a social event or gathering which boasts an open buffet, avoid filing food on your plate. Be sensible when choosing what to eat this way you avoid throwing excess food.

Don’t go grocery shopping when hungry: Ever noticed that if you go grocery shopping when hungry you end up buying unnecessary amounts or kinds of food that might not end up consuming. Avoid impulse buys and take your grocery list with you.

Be a food saving hero: Make the most of the food you buy and find out what types of food can be frozen, stored, dehydrated etc. so that you avoid throwing anything away.

Make sure of your leftovers: Go online or get creative and make the most of your leftovers by making delicious, innovative dishes.

Think with others: Remember that there are always people out there who are in need of food, so instead of throwing leftovers, give them away to those in need. Please make sure that the food is safe to eat before donating it to others.

Compost your waste: By composting your organic waste you are returning nutrients back into the soil, disposal of organic waste in a proper manner and protect the environment.

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Employee Talents

Zaied Mubarak Al Harthi I’m 21 year old single not married I like to play PlayStation and swimming I finished the high school but I didn’t complete until know because of my club and national team but I am planning to start my study in this year after I finish my sport session and also I like my work a lot I feel very comfort with my colleges in work because they support me in my work and my sport carrier and also my manager his the who pushing me up to the success in the both of my passion work and sport

Champions I played: •

Asia Cup For the clubs In Lebanon 2009

Tunisia Friendly Cup in Tunisia 2009

• • • • • • • • • •

AFC Teams For Youth In Abu Dhabi 2009 Cairo Friendly Cup In Egypt 2009

Gulf Clubs Champions Championship In Kuwait 2012

Hungary Friendly Cup In Hungary 2012 Asia Cup in Qatar 2012

International Cairo Friendly Cup In 2012 AFC Teams In Qatar 2012

Champions Of President Cup In UAE In 2011

Champions Of ADNOC Title With ADCO In 2012 AND 2013


Employee Talents

Yousif Al Raeesi My name is Ibrahim Yousif Al Raeesi. I am 28 years old and single. I work in drilling department as a supervisor drilling. In the other hand I am a football referee under United Arab Emirates Football Association UAEFA. I joined Association of UAE Football since 2010 and followed by getting a certificate of Beach Soccer Refereeing from FIFA in 2011. Exercising hard every day is the most important issue for referee in order to be fit in all fitness tests which are recommended to pass it every year. I am managing many professional youth league and beach soccer games which UAEFA assign me weekly. Ambition in the coming period, get the international rank in the Beach Soccer Inshallah.


Drilling new layout