Curierul - April 2009 by UPETROM GROUP

C urierul

www.gspdrilling.com april 2009

TPAO, Offshore Construction

GSP builds the largest double decked, modular extraction platform in the Black Sea

TECHNICAL VESSELS DEPARTMENT

The priorities are the completion as schedulled of the reactivation, upgrading and classification works of GSP Bigfoot 1 and GSP Bigfoot 2

The TRAINING CENTER Training programs for the key drilling personnel operating the new X-COM technology on board of GSP Jupiter and GSP Saturn

Content

4 News 8 GSP and Upetrom - 1 Mai at TUROGE, the Eighth Edition 10 The New Technical Vessels Department â&#x20AC;&#x201C; are the priorities of the newly established department are completion of the programmed works of GSP Bigfoot 1 and GSP Bigfoot 2 14 Acquisitions 18 Work in Progress: Offshore Construction 26 Drilling Report Four completed, equipped, and productive wells 32 Training, a compulsory condition of HSEQ performance 38 THE PROGRAMS OFFER OF GSP TRAINING CENTER

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Foreword I dare to say that our work at Grup Servicii Petroliere have never been more interesting and rewarding. The competence and creativity of an empowered team formed and forged during the five years since the establishment of our company have brought us in the position we are today. The moment when the Romanian Chamber of Commerce has awarded GSP first prize in the “large companies” category will be long time remembered. A Romanian company has succeeded in 2008, while celebrating five years from its establishment, to reach this performance. The team spirit, the demanding standards set from the start, the very bold objectives together with the extent of our offer of services have brought us this recognition. The award granted to GSP confirms the remarkable effort of our people to improve the professional performance on board the offshore drilling rigs, on board the ships and within operational bases. Both the already completed projects and those we are carrying on speak about GSP’s growth: GSP Saturn, the GSP Training Center, the development of the three operational bases in berth 34 Constanta Port, in Midia Port and Constanta Sud – Agigea. The latest technological developments of the offshore industry can be met and used at their full capacity at Grup Servicii Petroliere, bringing us in the leading position of the offshore industry in the East European area. With the help of the new projects GSP steadily orients towards offshore drilling at greater water depths. The sea still has to reveal its resources and we are committed to contribute to their exploitation. Romania will have in the coming years the highest rate of growth of the energy demand in our region and the European Union is about to finalize the strategy for securing the energy resources. These pre-requisites are the basis of our development strategy. We will focus more than ever on the set of values that helped us to achieve the results so far, remaining determined in facilitating to our professional body the access to the most modern training methods and technologies. Summing up, I’ll say that we have the necessary team, the leading set of values and the technical means to successfully complete all the future projects. Look around you to perceive how much we are involved in the change process. I think you will agree: never before working within Grup Servicii Petroliere was so rewarding!

Fănel Hahui, CEO Grup Servicii Petroliere

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JANUARY

GSP invests 3,500,000 euro for the reactivation of the submersible barge Bigfoot GSP 2 The barge will be classified by ABS. The works began in mid-October 2008 and will be completed during the third quarter of 2009. The project includes equipment replacement works, such as generators and ballast pumps, the installation of an electronic monitoring equipment of the ballasting / de-ballasting processes as well as the installation of new mooring equipment. The electrical system of the submersible barge will be fully renewed. Bigfoot GSP 2 will be mobilized to work within the TPAO project. JANUARY

GSP was awarded first prize in the “large companies” category by the Romanian Chamber of Commerce At the end of 2008, the company Grup Servicii Petroliere has been awarded the first prize in the “large companies” category within the annual Romanian Chamber of Commerce classification. The award which was granted at only five years from GSP’s establishment, confirms the fact that the past year was the most intense so far in the company development.

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GSP and EMSA representatives onboard GSP Orion

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JANUARY

GSP Bigfoot 1 – 40 million euro investment GSP initiated a 40 million euro investment project for the conversion of the flat top cargo barge into a self supporting, anchor moored shallow water pipelay barge. The barge will operate with 208 people, both the maritime and the technological crew, on board. Ulstein Sea of Solutions in cooperation with Deltamarine have realized the basic design of the self supporting, anchor moored sallow water pipelay barge. The detailed design engineering will be developed by Ship Design Group (SDG), its completion being expected in August 2009. The American Bureau of Shipping started reviewing the basic drawings this January, GSP Bigfoot 1 pipelay barge being issued at the completion the ABS class certificate. GSP Bigfoot 1 will be operational in January 2010 and will be mobilized in the marine construction works contract for TPAO. JANUARY

GSP acquires heavy weight equipment for 7,400,000 euro GSP closed a 7,400,000 euro acquisition contract with the heavy weight equipment manufacturer Liebherr. Two of the five high lifting capacity cranes will arrive at the end of March. Two 280 tons Liebherr cranes, one 200 tons Liebherr crane and two 120 tons Liebherr cranes will operate within the GSP base in Constanta Sud – Agigea port, the base being designated for offshore constructions – steel works. The manufacturer completed the commercial offer with a training stage for the crane operators.

GSP Orion, the Black Sea oil recovery vessel

JANUARY

GSP invests over 1,5 million euro for the development of the third port facility The project implies the development of a 20,000 square meters area in the

first phase, the rest of it, up to 38.600 m2 remaining to become operational in a second phase. The project includes the purvey of the social facilities, the reinforcement of the heavy duty concrete platform, the construction of the administrative building and of the multipurpose workshop with an area of 4,600 meters. The multipurpose workshop will be endowed with two 20 tons gantries, automatic welding equipment, specialized workshops. The multipurpose workshop will be entirely designated for offshore construction steel works.

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as offshore construction and offshore drilling rigs moving operations, the Technical Vessels Department becoming one of the regular partners of Special Operations, Marine Operations, Drilling and Naval Departments. FEBRUARY

GSP announces the end of the demobilization mobilization operations and the beginning of the drilling activity on a new drilling location within the onshore drilling project GSP Nabors Grup Servicii Petroliere announces the successful closing of the drilling operations of the first well on Bustuchin drilling site. Under the contract, after the well completion, the crew carried on the demobilization - mobilization activities, the drilling rig being moved to a new location. On completion of the onshore self-elevating derrick assembly works, followed by trials of the drilling equipment, the team consisting of the GSP staff mobilized for this project and the Nabors’ staff began drilling for the second well. MARCH

Grup Servicii Petroliere registered an 80 million dollars profit in 2008

FEBRUARY

GSP announces the establishment of the Technical Vessels Department

This performance is a direct result of services commercially engaged by all the company’s offshore drilling rigs and vessels, the coherent modernization strategy designed and carried on from GSP establishment, as well as the extension of the offshore services offer in areas such as well interventions, offshore construction and training. Currently, all the development and investment projects are financed in proportions of 35% up to 80% from GSP’s own resources.

In early February, GSP’s Board of Directors has decided the establishment of a new department. It will manage the operation of the technical vessels: GSP Bigfoot 1, GSP Bigfoot 2, GSP Shearleg Crane, GSP Granit, DN 155 river barge, the technological pontoon, the false leg and the MPP DP3 vessel GSP Titan. The new department will provide the necessary assistance for activities such

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MARCH

GSP Orion will take part in the most important intervention and response exercise in case of oil pollution in open sea GSP Orion will have installed on board the most modern oil recovery equipment in order to intervene to limit the oil polluted sea area and to collect, store on board and transport the recovered oil to shore. The delivery of the specialized equipment for intervention is now approaching the final. On board GSP Orion were completed the inspection and the preparation works. Between the 21st and 24th of August 2009 will be held RODELTA, an exercise aimed to train the personnel to respond effectively in situations of marine pollution. EMSA organizes such exercises every two years. The first exercise was held in 2007 in Turkey. All the responsible institutions in Romania and the bordering countries will mobilize personnel, air and naval forces

of intervention and special equipment designed to limit the extension of the oil polluted sea areas. The exercise will take place in front of abeam Midia port. MARCH

GSP and UPETROM 1 mai among the participants at the eighth edition of TUROGE Between the 11th and the 12th of March 2009, GSP and UPETROM were remarked among the participants of the TUROGE conference and exhibition taking place in Ankara. Grup Servicii Petroliere is also one of the sponsors of the event. The increasing interest shown to the Romanian companies at the last editions of TUROGE (The Turkish Oil and Gas International Conference, Ankara) as well as at other events of the industry in the Black Sea area confirm the excellent reputation GSP and UPETROM specialists have and the confidence they are conceded.

GSP and Upetrom - 1 Mai at TUROGE, the Eighth Edition

Bruno Siefken, Vicepresindent, Upetrom Group

Between the 11th and the 12th of March 2009, GSP and Upetrom 1 Mai were noted among the participants at the conference and exhibition TUROGE, Ankara 2009. Grup Servicii Petroliere was also one of the sponsors of the event. The great interest shown to the event can be explained by the topics chosen by the organizers for the conference in this crucial year. TUROGE 2009, organized with support of the Turkish Ministry of Energy and Natural Resources, of the Turkish National Oil and Gas Company, TPAO, and of the professional associations is an event designed to provide an overview of the latest developments and trends in the regional market. The conference speakers list included the vice-president of UPETROM Group, Bruno Siefken, a specialist recommended

by his thirty years of activity in the oil industry. The thirty conference speakers shared their experiences with the auditors, addressing topics such as exploration, production, transport, investments. A central theme of the 2009 Conference was the energy security in the region. There have been presented specific situations for the oil and gas industry, from geopolitical prospective, as well as the necessity to secure the resources in our area of interest. Other topics focused on the exploration and production activities in the Black Sea and the Mediterranean Sea areas, the development of the infrastructure around the Black Sea, the exploration of the Black Sea and eastern Mediterranean, regional cooperation, the need to create alternative routes to supply natural gas to the European Union.

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The issue of energy security in the region was thoroughly approached from the supply diversification prospective. Special attention was granted to the regional projects of subsea pipelines construction, among the projects being presented the Baku - Tbilisi – Erzurum one, the project implemented in collaboration with Russia for the Blue Stream pipeline as well as the ITGI Turkey - Greece – Italy interconnector. The conference papers have shown that there is a particular concern for the development of new projects and for strengthening the efforts to link the countries of Central Asia to the existing network via an underwater pipeline that would cross the Caspian Sea. In this context, Bruno Siefken, the UPETROM Group representative, analyzed the characteristics of the Black Sea (geography, water depth), the evolution of the offshore industry in the Black Sea area compared to the North Sea, the restrictions imposed by means of access (strait, bridges) for the drilling rigs and drilling ships as well as for the high capacity technical vessels, the influence and roles of the political systems in the region. The speaker also reviewed the present concessions situation, that of the exploration and production of the discovered subsea reservoirs. Unlike the North Sea, the Black Sea area has faced along the years problems related to the use of aged technology in the context of closed political regimes, lack of vision in areas such as investment and industrial development. „If this area lacked the vision and the development strategy until recently, given the global economic situation and taking into account the offshore industry trends, here came the moment to transform the situation in the Black Sea area, here is the time for the offshore industry actors – national authorities, regulatory authorities, companies, to become more active,“ said Bruno Siefken. He presented GSP’s development strategy of the fleet of technical vessels, an example of a company adapting to

current trends of the offshore industry to the conference participants. GSP’s investment, development and construction strategy is in line with the market trends: the development of the technical fleet of vessels through investment projects, development and construction of ships: GSP Bigfoot 1, GSP Bigfoot 2, GSP Titan, will contribute to the short term creation of an operational response capacity for the needs of the offshore industry in the Black Sea. GSP proves the capacity to mobilize resources in order to meet the growing demand for offshore construction services. And, as the offshore industry goes towards increasingly deep waters, GSP has set the 12,000 ft water depth limit as an accessible depth of the company exploration vessels.

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TUROGE 2009, the official catalogue of the event

The New Technical Vessels Department

GSP Bigfoot 1 â&#x20AC;&#x201C; the future of the Black Sea pipelay activities passes through GSP conversion projects for technical vessels

The extension of the services offer of our company has a correspondent in the departmental structure of GSP. The Technical Vessels Department was established on the 1st of February 2009. The structure of the new department includes, among others: GSP 1 Bigfoot, GSP Bigfoot 2, GSP Shearleg Crane, GSP Granit, and GSP Titan. Currently, two services administrate the current tasks: the operational management service and the contracts tracking service. The department will provide the necessary support for the marine construction activities and rig moving operations, the departments with which will firstly cooperate being therefore the Special Operations Department and the Marine Operations Department. For starters, the priorities of the newly established department are completion of the programmed works within the GSP Bigfoot 1 and GSP Bigfoot 2 as well as the marine and technical crew members recruitment.

GSP Bigfoot 1, anchor moored shallow water pipelay barge, a 30 million euros investment GSP initiated a 40 million euro investment project for the conversion of a flat top cargo barge into a self supporting, anchor moored shallow water pipelay barge containing accommodation for 208 persons, GSP Bigfoot 1. The Dutch â&#x20AC;&#x201C; Norwegian firm Ulstein Sea of Solutions in cooperation with Deltamarine have realized the basic design of the self supporting, anchor moored sallow water pipelay barge. The detailed design engineering will be developed by Ship Design Group (SDG), its completion being expected in August 2009. The American Bureau of Shipping started reviewing the basic drawings this January, GSP Bigfoot 1 pipelay barge being issued at the completion the ABS class certificate. The shipyard works will start in March 2009 in Galati, Romania, the completion being programmed for January 2010. The barge will be ready to mobilize for

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the TPAO offshore construction project in March 2010. The GSP BIGFOOT 1 project includes the installation of the power generation (4 x Caterpillar 3512B DI-TA 1257kW) and ballast systems, as well as the endowment of the barge with two AMCLYDE cranes, a SAS GOUDA pipelay system including the firing line and an 8 – points mooring winch system with 5T Flipper delta anchors. ZEETECH Engineering will perform the stinger design including the handling frame. The accommodation complies with Solas-74 A-60 standard and Flag requirements. A Perry Slingsby Comanche ROV System (3000msw depth rating) with Dedicated Launch and Recovery system including TMS as well as two Orion 4/7-function dedicated manipulators and a Surface Control Unit will complete the shallow water pipelay barge GSP BIGFOOT 1 equipment. The pipelay barge will also be endowed with a 12 men portable saturation diving system built according to IMCA guidelines and classed by ABS and DNV. The accomodation, including cabins with 1 up to 4 places, offices, mess room, recreation areas, hospital, chapel, gymnasium, will meet the SOLAS - 74 A 60 standards and the rules issued by the flag auhority.

GSP Bigfoot 1 – the anchor moored shallow water pipelay barge will be operational in January 2010

GSP Bigfoot 1

SPECIFICATION: Owner Class Class Notation Year Built

Grup Servicii Petroliere / Bigfoot Shipping B.V. American Bureau of Shipping (ABS) A1 Derrick / Lay barge, M, ES, UWILD 2006

Main Particulars: Loa (excluding stinger) Beam Depth Air Draught Draught Scantling Draught Operational Deadweight Deck Area Deck Loading Frame spacing Helideck Ballast Complements

135.00 m 42.00 m 8.00 m 26.00 m 5.00 m approx. 2.50 m 20.000 tons 5670 sq. m 15 t/m2 2500 mm Max Sikorsky S-61N & S-92 18420.16 cu.m. at 100% full 208

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Regulations:  The accommodation unit is built to fulfill all regulations, except regulation for Norwegian shelf.  The unit is built to Solas-74 A-60 standard.  All cabins have private facilities and provide more space than required by regulation and authorities.  The main characteristics are as follow: 208 persons in single, twin and four-men cabins, all with private facilities; mess room with self serving area, recreational rooms, prayer room, gymnasium, hospital, heli arrival / departure room, laundry and hospital. Machinery One (1) diesel engine: rating power 90kW 3 phase - 400V - 50Hz Two (2) ballast pumps: flow rate 500cu.m./h, head 0.2MPa Power generation: 4 x Caterpillar 3512B DITA 1257kW Mooring Equipment: 8- Point mooring systems, 8,5t flipper delta anchors, brake holding capacity of 175mt, spooling capacity of 2500m, wire diameter of 52mm. Particulars Helideck: welded steel deck, suitable for a Sikorsky S61-N type helicopter, inner diameter of at least 23 meter, complies with ABS regulations and CAP 437 requirements Pipelay System: The pipelay system is based on the single joint S-lay principle. Capable of installing 6” to 32” Outside Diameter pipelines. Nominal System Performance: five single joint welding stations, one NDT/Repair station, one additional repair station, two Field Joint Coating Stations, maximum pipe joint weight : 12,000 kgf , pipe length : 35 to 40 feet, nominal tension capacity, four Davits: 120,000 kgf @ approx. 3 m/min. Cranes Model: Amclyde Model KP 87 HD Type: Fully diesel hydraulic offshore marine kingpost pedestal crane Classification: American Bureau of Shipping (ABS) Main hook: 227mt @ 12.8m radius full revolving

Main hook: 200mt @ 24.4m radius full revolving Auxiliary hook: 20mt @ 50.0 radius full revolving Model: Amclyde 35000 Main hook: 56.5mt @ 22m radius full revolving Main hook: 17.5mt @ 44.6m radius full revolving ROV Perry Slingsby Comanche ROV System (3000msw depth rating) Dedicated Launch and Recovery system including TMS Two of dedicated manipulators (Orion 4/7-function) Surface Control Unit Fully electric seven thruster propulsion system Saturation Diving System: A 12 man portable saturation diving system rated at 300 meter and built to IMCA guidelines and classed by ABS and DNV.

GSP Bigfoot 2, submersible barge Radu Georgescu, the GSP’s project manager for the reactivation of the submersible barge GSP Bigfoot 2 informed that the works began on 15 October 2008. The budget for equipment purchase and works reaches the extent of 3,500,000 euros. The equipment on board will be almost completely replaced: engines, ballast pumps, new equipment, electronic monitored for ballasting/de-ballasting operations, new mooring equipment. GSP Bigfoot 2 will be ABS classified.

Diesel generator CATERPILLAR model C4.4 DI-TA for GSP Bigfoot 2

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Diesel generator CATERPILLAR model C18 DI-TA, BV class for GSP Bigfoot 2

latest changes, and consistent rules of the flag authority. It will take into account specific IEC standards IEC (International Electro technical Committee), in particular: - IEC60092 – Electrical Installations in Ships - IEC60034 – Rotating Electrical Machines The electrical equipment will be designed and manufactured for operation at following environmental conditions: - Outside ambient air temperature min. -20°C, max. + 45°C at 90% RH The electrical system will be fully restored: - Inside air temperature min. +20°C, max. + the routes of cables, control panels, communication system, and lighting system. 25°C at 40-60% RH - Control Room air temperature max. The reactivation works of the submersible barge are carried on based on an Ulstein Sea +45°C, The cabling will be executed in accordance of Solutions project. with Class requirements. The cabling will be based on GSP Bigfoot 2, semimaximum permitted conductor submersible barge temperature of 85ºC and an ambient SPECIFICATION: temperature of 45ºC. Cables will be  Length 119,95 m mounted on coated cable trays. All cables  Width 30,50 m to be as a minimum flame retardant and  Building Height 7,50 m  Draft 5,96 m halogen free type. Fire resistant cables  Displacement 14859 tons will be used where required by the rules. Electrical cables will be a type with deadweight stranded conductors. Equipment: The command and control panels, Diesel generator (2): CATERPILLAR C18 model DI-TA, 400V, 350ekW, 3 phase 50 Hz, distribution panels, control panels for monitoring and alarm control, the internal 1500 rpm, BV classification. communication equipment on board, the Diesel generator (1): CATERPILLAR C4.4 general alarm system for fire detection, the model DI-TA, 65 ekW, 81 KVA, 1500 rpm navigation lights are included in the list of Installation and operation tracking system ballasting / de-ballasting H O P P E System: planned works to the electrical system. VS_1090038-A_HY Valve Remote Control Radu Georgescu, the project manager System (Hydraulic Type): the system is for the reactivation of the submersible applied for 31 remote control circuits for barge, had also provided data on the other hydraulic operated valves in ballast system. works programmed to take place: An emergency operation is provided via „The mounting of the valve system will be touch screen on control unit HOMIP. performed by Utilavorep. The stern anchor Ballast pumps: and maneuver cabstands will be replaced Centrifugal Pumps TYPE LD 400/46-C (2) with new ones, the fore maneuver winches Debit 3000 m3/oră, 250 kW, 950 rpm., will be brought within the limits of the Strip the pump piston (1) TYPE RKZ 250/200 technical parameters. Extensive works will - flow 200 m3/h, 22 kW, 1450 rpm be conducted within the accommodation, from the present one remaining only the Restoration of the electricity system will be steel structure; the interiors will be entirely designed and implemented in accordance renewed. It is intended for GSP Bigfoot 2 with the standards of the ABS (American to become operational in the third quarter Bureau of Shipping), IMO, MARPOL 73/78, of 2009.” SOLAS 1974 - A60, Colreg, including the

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GSP Saturn in berth 34: the moment of the cantilever arrival

Acquisitions The Procurement Department ensures through the daily activity the entire volume of materials, equipments and services for the three bases: in berth 34 Constanta Port, Midia Port and Constanta Sud - Agigea, for the offshore drilling rigs and the company ships, for the onshore drilling project Mamu-Bustuchin sites, as well as for the investment projects carried on or for the preparative phase of new investment projects. Romulus Bratu, Chief Procurement Officer, has offered us some information regarding current activities.

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„There is a large number of supply contracts for equipments and services in progress. We have the satisfaction that all the planned acquisitions for the GSP Saturn project are 100% accomplished. One of the most important contracts in progress regards the acquisition of five Liebherr cranes for the GSP operational base located in Constanta Sud-Agigea harbor. GSP signed for a 7.400.000 euro contract with the heavy weight equipment manufacturer Liebherr and, according to this, two heavy lift cranes will already arrive in April. Soon there will operate in Agigea base two 300 tons cranes, one of 280 tones and two of 200 tones. As one already may know, at Agigea GSP is developing now the third operational base dedicated to offshore construction; the equipments I’m talking about are designated to support the steel work operations taking place there. Regarding the activities for the GSP Saturn project I have to say that this dynamic working rhythm you can see in berth 34 corresponds to a similarly intense one at the manufacturers’ and transport agents. Every employee in this department masters the art of the logistic activity. People are the secret of all our achievements, and I do not hesitate to admit it. We have already initiated the procurement activity for other two important projects: the technical vessels GSP Bigfoot 1 and GSP Bigfoot 2. Equipments and parts are already arriving, according to the contract. Other components are manufactured as we speak and we keep contact with the producers in order to ensure that all the fabrication terms and transport will be strictly observed. All the projects in progress in the company bases in berth 34, Midia and Agigea are performed according to services contracts which are carefully managed by the procurement department. The industrial constructions observe strict regulation, and therefore, in order to have the designs ready and to obtain all the necessary authorizations

„We have already initiated the procurement activity for other two important projects: the technical vessels GSP Bigfoot 1 and GSP Bigfoot 2“, Romulus Bratu. we had mobilized specialists; the works in progress are monitored and the finalized works are commissioned with personnel from this department as well. In this moment we have a clear dimension of investments in Constanta-sud Agigea harbor. The project implies:  the development of the berth, in the first stage on an area of 20.000 sq.m,  the design completion for the heavy duty concrete platform and the utilities supply,  the completion of the works in progress for the heavy duty concrete platform,  the completion of the administrative building and of the workshop covering a 4,600 sq.m gantries with lifting capacities up to 20 tone,s  the setting of the workshops endowed with welding stands equipped with automatic welding machines. The multipurpose workshop is entirely designated for the steel works programmed within the offshore construction project with TPAO. We are all pleased to se that all the works at the Training Centre and the multipurpose workshop in berth 34 are completed. In the intended catering area, the project observed the most demanding standards of the Romanian Public Health Division and of the European Union. The phase of equipment installation was completed and the final tests take place at the moment. Practically, we are ready to start working. We expect to register benefic effects after the inauguration of the new catering spaces: the process is designed in such a manner that the flux is clear, the containers’ disinfecting spaces as well, the storage areas take into account the nature of the food products, the loading

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is performed inside, in contained and controlled environment, ensuring the maximum possible food security. All operation will be performed with reduced personnel. As the works at the multipurpose workshop are also completed, the storage facilities are ready to be used. We shall start working the way we wish: the new recording system is about to be implemented, the products will be easily tracked, the computerized monitoring process of the stocks will be operational, and the entire handling of the products will be performed mechanically, with the 10 tons gantry or the forklifts. Now, towards the end, Iâ&#x20AC;&#x2122;d like to get back to people. The team I coordinate makes the same effort to complete the tasks resulting from the current logistic activity as to complete the tasks resulting from important investment projects; the same procurement specialists who worked for the modernization project of GSP Jupiter oil rig in 2007 are working now at GSP Saturn overhauling. Their professional progresses influence the other departments as well. We have other new and important projects to complete and we also have the professionals to complete the projects with. We completed the team by selecting both experienced professionals and young graduates, eager to confirm their value and the trust we grantedâ&#x20AC;?, concluded Romulus Bratu, the Chief Procurement Officer.

It makes the same effort to complete the tasks resulting from the current logistic activity as to complete the tasks resulting from important investment projects; the same procurement specialists who worked for the modernization project of GSP Jupiter oil rig in 2007 are working now at GSP Saturn overhauling. Breaking the limit www.gspdrilling.com

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Work in Progress: Offshore Construction

Akcakoca project: the largest double decked, modular extraction platform in the Black Sea

Mihai Cârlan, Chief Special Operations Officer: „I started, not many months ago if you remember, on this road from the office I shared with the Operational Base Manager. Regarding the human resources aspect, and this is the topic I’d like to start with, the department grew a lot: we have the personnel for the positions within the head-office and for those in Constanta Sud – Agigea operational base; it is also true that, if for the current phase we have enough professionals, the staff is not sufficient for the following stages. Working the way we already did, together with the

Human Resources Department, we’ll continue the personnel selection. For some of the positions in the head-office we’ll continue the search of personnel. The positions I refer to require niche areas specialization, and the specialized labor supply is not abundant on the workforce market; even if we identify professionals, they work abroad, having employment contracts concluded under very advantageous terms. We’ll recruit staff representing priorities, welding and NDT specialists for the technical vessels as well as steel works experienced professionals.“

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„The building of the objectives which are part of the TPAO project will be realized in the new operational base GSP develops in Constanta Sud – Agigea port. The base itself represents an important investment. The programmed works at the heavy duty concrete platform will be completed (there are currently carried out intensive leveling works as well as drilling works for the pillars designated to support in the end the entire weight of the jacket and top side). There’s also taken into account the operational base connection to utilities, and in a very short time the new administrative building will be inaugurated: there will be offices, a conference room, a hospital, The development project of the new operational base also includes a multipurpose workshop, its building completion being planned for September 2009.” Mihai Carlan continued: ”The TPAO audit results have been generally appreciated. There were only seven observations in the end, four of them being immediately solved, the last three being concluded according to the program. The ten days audit included, besides Grup Servicii Petroliere, all the subcontractors. From our point of view, it proved to be a real support in our efforts to effectively meet the contractual obligations.“

The Development of the Natural Gas Production Capacities in the Black Sea Area TPAO is currently developing the gas reservoirs discovered in the Western Black Sea Region, Offshore Akcakoca, Turkey. The existing Phase-I Ayazli, Dogu Ayazli and Akkaya tripod platforms are located approximately 10 km from the coastal town of Akcakoca. The three platforms are located approximately 10 km from the coastal town of Akcakoca. Production of

natural gas began in the second quarter of 2007. A 12” submarine pipeline transports the natural gas from the three platforms to the natural gas onshore processing installation at Cayagzi.

Akcakoca, the largest production platform in the Black Sea The first task of the Phase-II

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The jacket: 1600 tons of technologies to secure the Black Sea natural gas production

GSP: the operational base Constanța Sud – Agigea, the house of offshore constructions in the Black Sea

Development, will be the installation of a 4-legged Akcakoca steel jacket platform and its deck and facilities over the two existing subsea wells at the 95M water depth Akcakoca site and installation of approximately 7 km of 12” offshore pipeline and tie-in via a subsea wye fitting connection to the existing 12” offshore trunk pipeline. This will become the largest production platform in the Black Sea. In the area where the platform will be located, the water depth reaches 95 meters. The main function of the platform is to support and act as a protective structure of the two existing well-heads and of the subsea risers.The platform will also offer access paths to the wells surface control and maintenance. The platform shall conform to the following design philosophy:  Safe to construct, install, operate, maintain and abandon,  Reliable, simple, and built from components inherently suitable for their purpose,  Cost effective,

 Simple to install with minimal weather sensitivity,  Simple to operate and maintain. The subsea 12” pipeline should be consistent to the following codes and specifications in force,  ANSI/ASME B31.8, 2003 - Gas Transmission and Distribution Piping Systems,  API 1104, 2005 - Standard for Welding Pipelines,  API 5L, 2004 - Specification for Line Pipe,  NV RP F103, 2003 - Cathodic Protection of Submarine Pipelines by Galvanic Anodes. The guaranteed life duration of the cathodic protection will be of 20 years. The design took into consideration a maximum wave height of up to 12.68 meters (41.6 feet) during the high tide. Based upon this, the 1M girders used on the Cellar Deck will be set with a 13M (42.65 Ft) elevation and all components below the 12.68M elevation will be designed for the full storm wave crest drag or slamming (if appropriate) pressures. A site specific geotechnical report was supplied in September 2007 for the

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design of the Akcakoca platform project. A pipeline route survey was supplied in October 2007. For the project a thorough geotechnical study was conducted. Seismic conditions for a southern Black Sea well site are summarized in the ABS Consulting Report dated January 27, 2005. The project took into account the nature of seismic data for the area to be built offshore: seismic conditions for the southern Black Sea are summarized in the advice issued by ABS on 27 January 2005: this report provides data satisfactory for all phases of design at the Akcakoca site. The jacket design, as well as the double decked production platform and the subsea 12” pipeline in length of approximately 7 kilometers took into account the external conditions, determining the choice of materials so as to provide all the marine built structure a life expectancy of 20 years. The resistance of the materials taken into account for designing the platform comply standard API RP 2A-WSD, Section 5.

TPAO Akcakoca project briefly:  GSP signed on the 25th of September 2008 the contract with the Turkish National Oil and Natural Gas Company (TPAO) for the design, acquisition, construction and installation of a drilling / production platform and of a submarine pipeline in the AKCAKOCA natural gas field, in the western sector of the Black Sea;  The contract provides the construction and installation of a jacket and a four legged double decked platform above the two existing wells, AKC-3 and AKC-4;  This drilling / extraction platform for Akcakoca gas field will be located 14 kilometers away from the shore, in an area where the water depth reaches 95 meters; The project also includes the construction and installation by Grup Servicii Petroliere of a subsea 12 inches pipeline in length of 7 km;  GSP provides project management, subcontractors being Overdick Germany, Pipe System Engineering – Germany, Petroconst

Constanta, and another company member of Upetrom Group, UPETROM - May 1 Ploieşti;  In early February 2009 a new department was established within GSP: Technical vessels. This new organizational structure will manage the marine operations of GSP Bigfoot 1 and GSP Bigfoot 2, GSP Shearleg Crane (1800 tons lifting capacity), the floating crane GSP Granit and the company barges. The role of the new department is to support the transport and assembly activities of the special operations department (offshore constructions);  The end of April 2009 represents the completion deadline for the administrative building of the operational base located in Agigea;  At the end of the third quarter of 2009, the construction and equipping of the multipurpose workshop in GSP’s operational base Agigea will be finished;  Five equipment acquisition contracts were already completed;  The selection procedure of the steel supplier was concluded and the purchase contract was signed: it includes the steel for the jacket, the two top-side decks, the pillars;  All the equipment acquisition contracts will be completed until early April 2009;  The tender referring to the Agigea operational base workshop equipment acquisition proceeds;  The recruitment campaign of operational staff continues;  The qualified personnel selected for the operation of the heavy weight lifting equipment (five high capacity Liebherr cranes which will be acquired for the operational base of Agigea) will attend a professional training session within the Liebherr cranes manufacturer’s training centre.  The first two high-capacity lifting cranes will be delivered during April 2009 for GSP’s operational base in Constanta Sud - Agigea port.

The qualified personnel selected for the operation of the heavy weight lifting equipment will attend a professional training session within the Liebherr cranes manufacturer’s training centre.

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In context with the project, GSP will be General Contractor. The responsibilities of GSP are as follows: Jacket and Topsides installation Pipeline Installation Hook up and pre commissioning and commissioning Project close out documentation Grup Servicii Petroliere, General Contractor In context with the project, GSP will be General Contractor. The responsibilities of GSP are as follows: a. Jacket and Topsides installation  Procurement of the jacket materials and workout of interfaces between Vendors,  Receiving, storage and preservation of equipment and material,  Procurement of process equipment and material,  Installation testing, pre-commissioning and commissioning,  Load out and sea-fastening of the jacket, topsides and appurtenances,  Transportation and installation of structure and topsides,  Removing and disposing of the existing subsea template and currently protection of the wellheads,  Transport and installation of the new subsea template,  Installation of new subsea template pin piles,  Transport and installation of jacket, piles and conductors,  Pilling and grouting,  Transport and installation of topsides and appurtenances,  Procurement and preparation of rigging  Fabrication of spreader bars  Fabrication and installation of barge grillages,  Marine operations. b. Pipeline Installation  Procurement of all permanent and temporary

materials,  Fabrication and installation of all subsea assemblies and spools,  Pipeline installation,  Pre and post lay pipeline and riser surveys c. Hook up and pre commissioning and commissioning d. Project close out documentation Leading the joint action between all partners involved to prepare a suitable close out documentation including all needed deliveries (Engineering and construction records, red lines, daily reports for all project related activities, as built drawings and vendor data).

Sub contracting companies: In accordance with the contractual terms, GSP subcontracted part of the works. OVERDICK Consulting Engineers GmbH & Co KG, on behalf of GSP, will be responsible with: A. Platform Detailed Design and Fabrication (detail engineering and design of the lifted jacket (includes jacket, piles-main, skirt, docking, conductors, appurtenances, subsea template) based on the existing FEED work; engineering for fabrication, erection, assembly, load-out, and seafastening of the jacket, piles, risers and clamps, boat landings, barge bumpers, 30” and 24” conductors, subsea template and its pin piles, and miscellaneous appurtenances) B. Topsides Design and Fabrication Engineering (engineering drafting and any other services required for procurement, fabrication, transportation, installation of material requisition packages, for any adjustments required due to vendor data and for preparation of red-line drawings and As-Builts; engineering for fabrication, erection, assembly of topsides structure, vent boom and appurtenances)

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C. Transportation and Installation (transportation engineering. transportation analysis/ design of grillage and preparation of drawings/ design of sea-fastening and preparation of drawings/preparation of transportation manuals. installation engineering) D. Pipeline Installation (Engineering: pipe lay analysis/ installation engineering / design of installation aids and preparation of drawings â&#x20AC;&#x201C; preparation of installation operation manuals / preparation of safety, emergency and contingency procedure manuals / preparation of as-installed dossiers. Engineering for fabrication and installation of subsea assemblies and spools.) Documentation (keeping records of all engineering and constructions records including reports, specifications, permits, red-lines, drawings in paper and electronic formats; keeping and

issuing to GSP weekly progress reports during all fabrication, transportation, installation, hook-up and precommissioning operations; prepare project close-out documentation.) PSE Engineering GmbH, on behalf of GSP, will be in charge with: Detail Design Review (process, equipment positioning and installing, piping lay out, electrical, control & instrumentation, fire fighting & gas detection); Detail Design Adaptation (completion of lay-out drawings, revision of isometric drawings, revision of electrical drawings, revision of control & instrumentation drawings, revision of safety equipment and fire protection system drawings, revision of aids to navigation specification); Safety System Integration (development of ESD logics, development of DCS logics, development of plc and DCS integration, development of fire & gas detection logics); Interface Engineering

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GSP: the operational base ConstanČ&#x203A;a Sud â&#x20AC;&#x201C; Agigea

Top Side Equipment (material and equipment interface checking, material and equipment specification in case of required adjustments, spare part lists, perform analysis and points of view regarding the offers for equipments); Pipeline (hydro test procedure, dewatering procedure, drying procedure); Third Party Documentation (quality plan, ITP, HAZID, preparation of data books); Construction Supervision; Commissioning; As-Built Documentation; Manuals/Training; Project Management & Procurement Support. S.C. PETROCONST S.A., on behalf of GSP, will be responsible for the following activities: jacket construction (assembling), template construction, piles preassembling, conductors preassembling, topside and vent boom construction (assembling), installation of facilities, equipment and appurtenances on topside, precommissioning facilities, machinery, equipment and appurtenances installed on topside, jacket and top side support construction for fastening on the transportation barge, load-out, seafastening, unloading supports from the transportation barge, works related to pipe-lay on the GSP Big Foot 1 barge, manufacturing pipe couplings

with existing facilities, works related to template installation, works related to jacket installation (piles driving and conductors): surface preparation for welding, works related to installation of topside by welding (deck and vent boom) including surface preparation and non-destructive examination of welds, works related to commissioning (topside and piping). Fabrication and Assembling All tubulars will be beveled / profiled by suppliers before delivery to site. To the extent feasible, tubulars will also be made up to length by the suppliers. The jacket and topsides will be fabricated as subassemblies, maximizing the work done at ground level. The subassemblies will then be assembled, and final tie-ins made. This approach has the following benefits:  Reduced risk of safety incidents; such as dropped objects and falls  Improved performance safeguards schedule Materials’ handling; scaffolding; quality; and safety activities will occur on a continuous basis throughout the fabrication period. Points at which quality control checks must be cleared for various assemblies, in preparation for subsequent activities, are noted in the following sections.

The new GSP operational base in Constanta GSP Sud – Agigea port The operational base in Constanta Sud - Agigea port is entirely designated for carrying out special operations. There will be exclusively conducted the activities related to the jacket and the double decked top side construction of what is soon to become the largest drilling and production monoblock platform in the Black Sea. The operational base itself is an important investment. During the first phase, the ground will be prepared and compacted in order to achieve the required bearing

capacity, and this will be verified by testing. Piles will be installed to support jacket nodes and the topsides legs; fencing will be installed to secure the yard; utilities and lighting will be installed throughout work areas. The site offices will be installed and hooked up; a multipurpose workshop will be constructed, the completion term being September 2009. Crawler cranes will be delivered to the site (3x300 ton; 1x280 ton; 1x200 ton Liebherr). For the readers who followed the evolution of

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the works related to TPAO project, it is our duty to explain the logic leading to the investment in the development of a third GSP operational base located in Constanta Sud –Agigea port. The initial decision was to carry out the steel works related to the TPAO offshore construction project in a leased location, in Midia port. It is in GSP’s intent to expand the marine construction services. As the two initial operational bases of the company have had clear destinations, at that time rental was the sole solution. When the opportunity presented, GSP’s Board decided to invest in the development of the third operational base at Agigea; this was from the very beginning intended to become the marine construction site, as the company took into account the future development of this activity. The area GSP manages in Agigea is significantly larger than the previous location, which stands clearly in advantage of the desired development. Geological studies carried out on the Constanta Sud - Agigea location confirm the fact the new investment is fully justified. The preparative program of the new yard development includes the following short term works:  The preparation by ground leveling and compacting of the heavy duty platform according to the beneficiary’s technical prescription;  The installation of the piles which will support jacket nodes and the topsides legs;  The secured fencing and perimeter lightning of the yard;  The completion of the administrative building;  The completion of the multipurpose workshop;  The delivery of the five Liebherr heavy weight crawler cranes (3x300 ton; 1x280 ton; 1x200 ton Liebherr).  Welders testing and welding procedures development in accordance with the project requirements. Asked to indicate the short-term objectives of the department he

coordinates, Mihai Carlan says: „Our goal is to continue to keep on track. This will certainly happen as people I work with have experienced before working within international projects. We shall observe the work execution schedules, and I mean all of them: I refer to the development of the Agigea yard, which will end on time. We also have to meet deadlines regarding the completion of the reactivation project of GSP Bigfoot 2 and the construction of GSP Bigfoot 1. GSP has contractual commitments and it is in our intent to keep them. We are convinced that the technical ships GSP Bigfoot 1 and GSP Bigfoot 2 will be fully operational at the scheduled time. We also have to complete the recruitment of the specialized staff for the technical vessels as scheduled. On a long term prospective, of course we want to win other important international tenders and to complete as many marine construction projects in order to develop. We had the courage to start on this road just believing about us that we have the capacity to prove ourselves valuable specialists, and that the efforts to ground this new activity when we faced the greatest difficulties will be justified only by successfully continuing this activity, many years to come. We want to register sustainable results, to make GSP well known through the quality of special operations services too”, concluded Mihai Carlan, Chief Special Operations Officer.

GSP’s Board decided to invest in the development of the third operational base at Agigea; this was from the very beginning intended to become the marine construction site, as the company took into account the future development of this activity.

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Drilling Report Four completed, equipped, and productive wells. This is the activity report for GSP Jupiter drilling rig from the beginning of the actual contract. In the Black Sea area the exploration drilling as well as the oil production wells drilling activities are intense. The activity results on board the drilling rigs reflect in numbers: the profit GSP registered in 2008 results in large scale investments. Niculae Cristocea and Adrian Borbilău, operational drilling managers carefully read the reports. Two offshore drilling rigs work in the Persian Gulf, GSP Jupiter drills in the Black Sea, GSP Saturn has to complete the last stage of the modernization and reclassification process and GSP Prometeu passes through preparatives for the new contract. To these we must add the two onshore drilling rigs, Nabors 677 and Nabors 678. „The operational rate degree of the offshore drilling rig is the most important indicator; if we’ll monitor only this single indicator, we’ll have a very clear picture of the working rhythm,” Adrian Borbilău tells us. „There’s no need to detail further. The period during which all the company drilling rigs have been drilling under contracts should satisfy all the curiosities. It is also true that the number of completed wells is greater in the Black Sea area. In the Persian Gulf area, until recently, our drilling rigs performed a great umber of well intervention services

Two offshore drilling rigs work in the Persian Gulf, GSP Jupiter drills in the Black Sea, GSP Saturn has to complete the last stage of the modernization and reclassification process and GSP Prometeu passes through preparatives for the new contract.

and only during the last months interval GSP’s offshore drilling rigs entered well drilling projects,” Niculae Cristocea says, continuing: “Our objective is that the drilling rigs reach the target of 95% operational rate. This target was overcome every month. We registered a minimum of 96,03% in November, staying anyway above the maximum set target, and we reached 99,13% during May. Up to 100% one must add the repairs intervals, the rig movement, and the stand by with crew on board or the zero rate intervals. Normally, we registered the above mentioned situations too. For the future, our objective is to reduce these intervals to minimum.”

GSP Jupiter We may say that this is the ideal situation: the offshore drilling rig has been under contract during the entire year 2008, the beneficiary being Petrom. The result of the drilling activity presents as it follows: four oil wells completed, one where the beneficiary decided to stop the drilling process and a well being drilled at the moment we speak:  Well 317 Sinoe on the Gloria 8 jacket, finalized between the 1st and the 30th of January;  Well 316 Sinoe – works completed on the 10th of May;  Well DVO3, at PGSU 6 was realized until the 20th of July;  Well 318 Sinoe, on the 8 Gloria jacket was completed on the 12th of October;  Well LVO4, at PGSU 4: the works begun immediately after the completion of the well 318 Sinoe and, at the beneficiary request, the drilling had been stopped in order to move the rig on a new location;

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 Well Delta 4, drilled by GSP Saturn offshore drilling rig, was completed starting with the 13th of October and it began the oil production. The activity concluded on this location on the 22nd of December;  Well Delta 6, la PGSU 7: the works at the new well were initiated in December 2008, being carried on at the present moment.

GSP Saturn Before entering the upgrading and reclassification process, during 2008 the offshore drilling rig performed drilling operations under contract for a single beneficiary, Petrom:  Well 1 Histria Vest, where the drilling started in 2007, was finalized on the 6th of May;  Well 1 Cobălcescu Sud – the drilling works initiated during May were finalized on the 7th of September;  Well 1 Delfin Nord, within the Neptun block, abeam Mangalia, was finalized on the 19th of October;  Between the 20th of October and the 10th of November the drilling rig performed capital repair interventions at (PGSU 4), according to the beneficiary program;  On the 11th of November the drilling rig concluded the drilling contract with Petrom entering, according to the GSP’s development – investment program the upgrading and reclassification works, the entire process taking place in the operational base of the company, in berth 34, Constanta port. At the finalization of the modernization process, the offshore drilling rig will enter a new contract.

GSP Prometeu In 2008, the offshore drilling rig GSP Prometeu finalized five wells, three under a contract with Sterling and two for Melrose:  Doina Sister - well finalized on the 22nd of January for Sterling;  Wel interventions capital repairs at the Pescăruş jacket between the 24th

of February and the 20th of May, under contract with Petrom;  A repairs and preparative period has followed in order to get the drilling rig ready for the new contract. The offshore drilling rig hadn’t followed a capital repairs program from 2004. During this entire period, the offshore drilling rig has had a very high operational rate. GSP takes advantage of these short intervals before entering a new contact in order to carry out the planned repairs;  Well Ana 2 was drilled between the 20th of July and the 20th of August under a contract with Sterling;  Well Doina 4 is completed in September, for Sterling;  Between the 8th of October and the 15th of January, the drilling rig, under a contract with Melrose resources, completed two wells: Kavarna 1 – a vertically drilled well, and Kavarna 2 – a directional drilled one. These two wells were equipped and prepared for production;  From the 15th of January the drilling rig located in Constanta external harbour is prepared for the new contract, current repairs being carried on as well as the ABS recertification. This program included revision and inspection works of the drilling equipment, planned maintenance works, the complete renewal of the drilling rig heliport, the new steel construction conforming the safety and environmental protection international regulations. All the works are scheduled in order to prepare the offshore drilling rig for a new contract. The works list also included: the replacement of the mud pits – shakers return derivation, the modernization of the air conditioning installation, electrical generators revisions, the installation of weighing systems at the cement and heavy spar bunkers, the replacement of the separation launder at the mud pits, the repair of the refrigerating compressor, the revision of the lightning installation

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of the jack house, automatisation of the Caterpillar group for TDS drive and the MD Todco software reinstallation, the extension and modernisation of the communication installation with new telephone and interphone stations in the driller’s cabin, the well, a new line at the mud pits area, the general revision of the electrical generators, cranes revision and repair works, cables renewal and repositioning. Many of the works were carried out by the crew of the offshore drilling rig under the technical department specialists’ supervision. The works scheduled for the drilling installation were performed by the Upetrom 1 May specialists. Many of the works listed above were 100% completed or are about to be finalized in a few days. The heliport steel works were carried out based on the project previously used for GSP Jupiter drilling rig n 2007. The entire revisions and repairs program was carried out under the Chief Technical Department Officer, Gavril Groze and the constant supervision of the representative of the classification authority.

GSP Atlas From the moment the drilling rig entered the contract, a natural gas well was completed and the production tests took place. The customer of the drilling

Onshore drilling is a new activity for our company. We learned many things by doing them: the experience at Mamu, where the drilling activity started earlier, helped us a lot at Bustuchin to avoid many problems regarding training the personnel to work on this type of installation and also to avoid the technical problems encountered on the first installation of the same type.

services declared that, based on the results registered by the drilling rig, new horizonts open towards new wells in the area.

GSP Orizont Since the entry under the contract and until November 2008, the offshore drilling rig performed workover for several wells in the Persian Gulf. At the 19th of November, GSP Orizont began drilling on the current location, the well drilling program being close to the final. The rig program also includes provides the production tests for the new well.

Onshore drilling on Mamu and Bustuchin sites Niculae Cristocea talks about the onshore drilling project: „There have been completed by now two wells, one per each location. There have been drilled both vertical and directional. Onshore drilling is a new activity for our company. The start of this activity has engaged the efforts of several departments. We learned many things by doing them: the experience at Mamu, where the drilling activity started earlier, helped us a lot at Bustuchin to avoid many problems regarding training the personnel to work on this type of installation and also to avoid the technical problems encountered on the first installation of the same type. After the completion of the first well on Bustuchin drilling site and the demobilization works, transport and mobilization works on the new location were done, on the 7th of February the drilling works at the second well began. We had the opportunity to discover during the personnel selection process as well as the current drilling activities were carried on at the site, valuable professionals we take into consideration for the promotion programs. As works at the well 4335 on the Mamu location were completed, currently the demobilization, rig transport and mobilization on the new location are about to close, the crew prepares for the second well drilling.”

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GSP Jupiter drills in the Black Sea offshore oilfields

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The Drilling Department Objectives for the Current Year Nicolae Vasile, Chief Drilling Officer: „It’s not a nice thing to talk about the results we register for 2008. It shows lack of modesty. It is better to let the beneficiaries to assess our performance. But we can not ignore the fact that we have obtained good results. It is also true that we intend to overcome these results. Now would be best to quickly review our objectives:  In 2009, the peak of our activity is represented by the completion of the upgrading and reclassification process of the offshore drilling rig GSP Saturn at the planned date and its entering under contract. We take into consideration a drilling contract in the Black Sea oil fields, heading to the Turkish and Bulgarian continental shelves;  A new project consists in mounting drilling equipment on a jacket and use of an offshore drilling rig as drilling process support “tender assist drilling”. Through this system, the drilling rig will provide all drilling services, namely: electricity, mud pumps for drilling fluid circulation, system for the cleaning and the preparation of the drilling fluid, chemicals and cement storage, tubular material storage, accommodation, protective signaling system for fire and gas, operations with supply vessels, emergency evacuation etc..  We eagerly wait for the initiation of the training sessions or the drilling teams with the DrillSIM – 6000 simulator. The installation works have been completed, the software installations will follow and the testing. We estimate the commencement of the training in mid-April. The simulator training showed necessary after the technical modernization of the drilling rigs with latest technology driller’s cabins, from GSP Atlas in 2006, continuing with GSP Jupiter in 2007 and now with GSP Saturn, which will represent the „State of Art“ in the field of international drilling activity. On this simulator there will perform training

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GSP Jupiter

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stager the drilling installation operators, toolpushers, drillers, assistant drillers, as well as the electronics specialists in charge with the maintenance of the driller’s cabins during the current activities. A major point of interest is represented by the certification process including all the operators, members of the drilling teams, in Well Control activities, and the issuing of IWCF accredited certificates. These courses will be presented by „DrillNet“, Marseille - France, which has responsibility for presenting documents and organizing strict evaluations, in order to support GSP in achieving the objective, namely to have highly trained specialists able to perform their activity in conditions of maximum security, with no work accidents, capable to successfully represent the company under contracts with drilling and production installations.  Another objective is to complete the works on the inspection, repair, recertification and tubular materials storage facility, in the GSP Midia operational base.  The installation of the drilling equipment from the drilling rig GSP Saturn at the GSP Midia operational base and the development of the „On the Job Training Center” for the drilling teams, the mechanics and electricians is another priority. This activity will be conducted by „Drill Net“ which will provide supervisors and teaching material for training. We are concerned to increase the professional performance level of personnel working on GSP’s installations and ready to provide all necessary means to achieve that purpose. We also expect positive reactions from the staff that must be aware of the fact that training must also be a personal quest, both for professional as well as English language increasing competence. I can not stop only at the above list: it represents a priority for us that the drilling activities, both onshore and offshore, to register better results in 2009 than the ones we achieved in 2008.”

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Training, a compulsory condition of HSEQ performance

DrillSIM 6000 â&#x20AC;&#x201C; the professional education complying with the standards of the future within the reach of GSP key drilling personnel

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The investment made by GSP for the new Training Center in berth 34 will soon materialize in the improvement of staff performance, providing a body of young professionals, this in the context of the deficit of human resources in the offshore industry worldwide. Beside this Grup Servicii Petroliere will be recognized as a supplier of training corresponding to the demanding standards of the offshore industry. The training program taken under consideration since the beginning of the project will produce primarily results in the improvement of the professional performance. As I said in similar occasions, we are facing an acute shortage of young professionals who dare to address careers in the offshore industry. For several reasons: the performance required of these people is an outstanding one, we can not venture to recruiting staff proving lack of confidence in their own abilities and knowledge. A second plan of improvement taken under consideration is that of mastering the official language of the industry, English language: there is no need to say that this is no exaggeration. Regardless of the site location where the offshore drillers work, they use a common language: I can illustrate here with a series of expressions we know and use since the beginning of the offshore drilling in Romania, English expressions with no Romanian correspondent. Let us remember that the instructors

who contributed to the formation of the first crew of the first offshore drilling rig built in Romania, at Galati shipyard, were Americans. From the very beginning of this activity, the same time the secrets of the offshore drilling were taught, people have learned the specific professional terms and expressions in English. Well, it is necessary to improve the performance on this specific training component. Relevant information both related to the equipment production and operational is mainly transmitted in English. No company can afford to send on board the drilling rigs personnel showing, in terms of operational communications a major handicap namely that of using the language of the trade. The third aspect taken under consideration in the design of the training offer include: occupational health, occupational safety and environmental protection. The fourth area to which GSP, through the new training center, prepared an educational offer regards survival at sea and fire fighting. These are very, in a few words, the areas where GSP Training Center will provide training and refresher courses. I must say that this ambitious program will be supported by developing GSP training facilities in several locations, depending on the subject addressed. For professional training, occupational health, work safety, environmental protection and for English language courses, the program will be conducted in the berth 34 GSP Training Center. Let me now detail the program: there will be courses answering the needs of drillers and assistant driller - regarding the operation of drilling cabin. The investment – development program aims to equip all the drilling rigs with the newest equipment, which simultaneously increase productivity, guarantees quality, also resulting in the significant reduction of the physical work of the people and in an increased safety during operation. The offshore

drillers know, from the moment they have expressed the career choice, that learning is a prerequisite: the training center will provide the most effective learning means. DrillSIM - 6000 will provide well control training. The center will receive IWCF accreditation (IWCF International Well Control Forum). The international accreditation will provide to the training beneficiaries, GSP’s both offshore and onshore personnel and client companies’ personnel the guarantee that the training is consistent with the international requirements. There are four or five training centers in Europe possessing the capacity to offer similar training programs. We’ll initiate the training activities with our own personnel, and then we’ll also meet the demands for educational programs from other Romanian companies, afterwards extending the offer to companies in the South Eastern Europe. We have the intention to attract customers who already know us through the offer of drilling services and drilling related services. An important feature of the purchased simulator, DrillSIM - 6000, is that of offering the training possibility for further operating the driller’s cabin. We experienced on the job training

DrillSIM - 6000 will provide well control training. The center will receive IWCF accreditation (IWCF - International Well Control Forum). The international accreditation will provide to the training beneficiaries, GSP’s both offshore and onshore personnel and client companies’ personnel the guarantee that the training is consistent with the international requirements. Breaking the limit www.gspdrilling.com

GSP has recently recruited an English language teacher with relevant experience in training adults. The English language courses will address all personnel at all working sites of the company. GSP decides, by organizing these courses, to support all employees in their personal efforts of turning account of their professional and human qualities. sessions on board of GSP Jupiter drilling rig: people have proven their capability to learn, to train themselves on board of an offshore drilling rig during operation; they have learned from the certified operators with whom we started out at the end of 2007. The „Cadet“ training program had this role for young graduates. By using the simulator DrilSIM - 6000 the training costs will be reduce, the performance level will increase significantly, reducing almost to zero the “jamming” factors interfering in the learning process on board; represented by the priority the activities resulting from the operational program; we’ll be sure that people will leave the headquarters possessing all the necessary knowledge, after performing a safe amount of practice. All the staff employed at the drilling rigs both offshore and onshore will attend the training program. There will be also short term training sessions for the staff entering the shifts, at every shift start. The positions envisaged for these raining programs are those of senior tool pusher, driller, and assistant driller. The DrillSIM – 6000 installation process began at the end of February. The process, including the commissioning formalities is scheduled to conclude in mid-March. IWCF

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(International Well Control Forum) envisages the audit at the end of the installation / testing / commissioning procedures. I must underline the importance the audit has for us as service providers and for customers in order to have the quality assurance of the offered package. IWCF will confirm the quality through the audit we are talking about. After going through these stages, and we estimate that this will happen in mid-April, we will start training on the simulator. Trainers, internationally accredited, will be made available by DrilNet, the company we concluded a partnership agreement with for training. We also set the objective of having at the mid-2009 four local IWCF accredited instructors in order to take over the training. English, the official language in our field of activity will be a constant object of study. GSP has recently recruited an English language teacher with relevant experience in training adults. The English language courses will address all personnel at all working sites of the company. GSP decides, by organizing these courses, to support all employees in their personal efforts of turning account of their professional and human qualities. The completion of each English language module, corresponding to intermediate and advanced levels, will result in a test checking the acquired language skills. The HSE training will address the entire staff, being based on the procedures and work instructions of the company, as well as standards, regulations and codes of best practices applicable to the oil industry worldwide. The English and HSE training sessions will be completed by testing the knowledge level and the issuing of a certificate attesting the language competence level and the HSE skills. Employees will receive individual training registers containing the courses which represent mandatory

Besides the offer of courses supported by the drilling simulator DrillSIM - 6000, which addresses only the drilling team members, it is intended to develop a new training facility with the use of the drilling equipment resulted from GSP Saturn overhauling. training according to their position, a compulsory condition in order to maintain the position within the company. The training offer will enter a development stage: besides the offer of courses supported by the drilling simulator DrillSIM - 6000, which addresses only the drilling team members, it is intended to develop a new training facility with the use of the drilling equipment resulted from GSP Saturn overhauling. We already speak of the second training location, namely the one designed within the GSP Midia operational base. The new training facility will offer training programs for all the current drilling teams and maintenance (mechanical and electrical) staff. In addition to staff already employed, this offer will address to the young professionals recruited by the human resources department, in order to cover their need of practical training. The development of strategies regarding the recruitment and training of personnel for this activity domain is already a public agenda issue as the companies are influenced by the lack of trained staff at international level. Periodical professional assessments resulting in recommendations for promotion will generate demands for training programs. We have the

ability to enhance the professional performance of the company staff by offering a large panel of in-house training courses. The drawing up and the initiation of the training program will result in easily identifiable advantages. I’ll only list them, very briefly:  The increase of the competence level of the company staff;  The training costs reduction for the personnel at all the working sites of the company;  The increase of the number of people passing through the envisaged programs;  The reduction of the waiting period in order to attend training stages;  The materialization of the promotion program of employees through customized training;  The formation of a series of young professionals trained to successfully face the job requirements;  The guarantee of a smooth exchange of generations;

THE TRAINING CENTER. PLANNING AND ORGANIZING ACTIVITIES OF TRAINING AND CERTIFICATE ISSUING The entire training activity will reflect on a dedicated micro-site. Planning and organization of the training will be done online on a dedicated micro-site regarding the entire training activity in the GSP Training Center. The micro-site will be accessible on the Oil-Zone portal. The team in charge of the training and personnel certification management has begun to take shape. Two designated professionals conducted between January 27 and February 24 an internship at Drilnet Marseille. The two training center administrators, Mirona Panţîru and Cristiana Crivaţ attended a presentation of the partner company Drilnet. They had the opportunity to study the working methods of our

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partner in this educational project. A familiarization program of the microsite administration was completed by the two administrators, as well as the planning activities of the GSP Training Centre being thoroughly studied. The team aims to promote the potential of GSP Training Center, by operating in electronic system the products planning and personnel promotion in order to enhance the professional level and work safety.

DrillSIM – 6000 The DrillSIM – 6000 drilling simulator installed in GSP Training Center in the operational base in berth 34, with a package of very complex functions, has the capacity to offer the trainees the opportunity to learn by creating situations identical to real life drilling conditions met during oil or gas

well drilling. The complex offshore drilling operations will significantly improve with the new training technology. The costs for the improvement of the human resources performances will register a reduction and the productivity of the drilling teams on board rigs will be enhanced at the same time with the decrease of risk incidence. The simulation technology can present different scenarios, as different well designs and geological nature datasets are displayed. The success of the drilling operation directly influences the profitability of oil and natural gas deposits exploitation; the drilling activity also stays in the spotlight when taking into account programs designated to increase the performance level of the employees.

Miruna PANŢÎRU

Cristiana CRIVĂŢ

Angela DUMITRESCU

GSP Training Center Administrator Graduate of the Faculty of Law, Hyperion University, Bucharest, 1997. Master in European Integration and Modern Governance, SNSPA. She previously worked at the European Integration Department of the Constanta City Hall. She coordinated a project with international partnership (Italy) and the New Series of the editorial project "Tomis".

GSP Training Center Administrator Graduate of Faculty of Foreign Languages, French – English Languages, Ovidius University, Constanta, 1997. Master in British Cultural Studies. She worked as English language teacher for twelve years within George Calinescu High School in Constanta and at the Professional Association of English Language Teachers CLASS.

English language teacher, GSP Training Center Graduate of Faculty of Letters and Theology, Ovidius University, Constanta, 2002. Previously, she was titular teacher at the English Language Department within the Naval Academy "Mircea cel Bătrân” and the head of the Methodical Board of the Main Foreign Languages Center in Constanta.

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THE EDUCATIONAL OFFER OF GSP TRAINING CENTER The main objective of the Training Center is to improve the level of the GSP’s personnel professional performance, on board the vessels, drilling rigs, onshore rigs as well as the professional performance of the offshore and onshore rigs personnel from other beneficiary companies of the educational offer.

DrilSIM 6000 – the last generation drilling simulator installed at GSP Training Center

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Human resources represent the main capital of the company. This is the reason why the improvement of the competence level of staff is one of our main objectives. To meet this objective, it was necessary to create a training facility where, through the development and implementation of an effective program, we can bring to young people at the competence level required by our field of activity. The unprecedented development of the offshore industry, the high standards, the increasingly high demands of the contractual beneficiaries, the rapid progress of technology, the very large knowledge and research volumes stored in new pieces of equipment, all in one place, require continuous improvement of professional capacity, and of the staff level of competence. Given all the above, we have completed or have presently ongoing training programs covering the following topics of interest:  operating the new X-COM technology and drilling equipment installed onboard rig GSP Jupiter and intended to be installed onboard rig GSP Saturn;  operating the TOP Drive installed on all our drilling rigs;  maintenance of all this equipment;  anchor handling and DP for maritime personnel;  operating the AMOS maintenance software;  operating the SAP system;

The training program for the current year includes objectives of great importance, including the development of a complete professional training offer within GSP’s Training Center. Grup Servicii Petroliere will provide training covering the following areas:  IWCF Well Control - Drilling key crew;  operating of new drilling cabin using the latest DrillSIM-6000 - Drilling key crew;  developing an On-the Job Training program - all personnel working onboard drilling rigs;  developing a Drilling Superintendent Training module – the positions of Rig Tool Pusher and Tour Pusher;  developing a practical training in operating a drilling rig, using the drilling package removed from rig GSP Saturn – all drilling rig crew incl. technical crew;  AH and DP training – Maritime personnel;  full OPITO approved Survival and Fire Fighting Training (incl. HUET) – all offshore personnel;  emergency response and on scene commander – all offshore personnel;  various HSE topics like: Work Permit system, safe operation of cranes, safe use of scaffolding, manual handling, COSHH, etc. At the completion of these courses, internationally valid professional competency certificates will be issued to guarantee the quality of the educational offer of GSP Training Center.

The training program for the operation of the Hi Tech Driller’s Cabin controls using the DrillSIM-6000 The training program is addressed to all the personnel who will operate on board the offshore marine drilling rigs GSP Jupiter and GSP Saturn the new X-COM technology. The training for designated for drilling supervisors was designed as a complete program, alternating the theoretical and practical sessions, on three phases. The initial phase The training during the first phase will completely answer the demands of the following positions: Roughneck,

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Derrickman, Assistant Driller. The staff will begin with an initiation phase followed by: immersion in the drilling environment, acquisition of basic drilling knowledge, and teamwork on site. Phase II, intermediate level, 2nd year The second phase meets the requirements of the Trainee Drilling Supervisor position. The professional training program will keep for this level the same alternate structure, with theoretical training with practical training intervals. The participating personnel will be progressively assigned tasks, being provided the opportunity to carry out supervision tasks under the guidance of a mentor, being ensured the most favorable climate for the acquisition of drilling knowledge and know how, skills and abilities required for the job. Phase III The training will take place, as with levels I and II, both theoretically and practically. This 3rd phase training meets the requirements of the position of Assistant Drilling Supervisor, aiming toward the professional development through: delegation in the job, supervision of works, and acquisition of self-sufficiency

On the Job Staff Training Advanced on the job training programs will be developed for all categories of staff working within the company, taking into consideration the specific needs arising from the human resources performances evaluation. At the training program completion, tests will be applied; the tests will be especially design to verify the mastering of knowledge necessary for carrying out tasks at every workplace, depending on specialization: drilling, technical, shipping, financial / accounting. In-house training certificates will be issued at the end of each training stage.

DrillSIM 6000

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DrillSIM 6000

HSE Training

Perspectives

This training offer shall cover all HSE procedures and working instructions:  Work Permit System;  Event reporting and Safety Observation cards;  Rigging & slinging  Safe operation of cranes  Scaffolding  Working at height  Hazardous substances  Working on electrical systems  Portable power tools  Radioactive awareness  Safe operation of forklift  Defensive driving

The present training offer will be further developed. Grup Servicii Petroliere will build an accredited OPITO (Offshore Petroleum Industry Training Organization) / STCW (Standards of Training, Certification and Watchkeeping for Seafarers) Training Center which will answer all training needs on topics listed below:  BOSIET (Basic Offshore Safety Induction & Emergency Training), including HUET (Helicopter Underwater Escape Training)  Advanced fire fighting (team member and team leader)  Chemical fire fighting  FRC coxswain  Lifeboat coxswain  H2S  Emergency Response on scene commander  HLO / HRO  Helideck Team member

DP, AH Operators Training The training is addressed to all maritime officers working onboard the company vessels and shall be performed using the latest DP and AH simulators The training shall be finalized with inhouse certificates.

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