Curierul - December 2009

C URIERUL www.gspdrilling.com december 2009

OFFSHORE CONSTRUCTIONS CONTRACTS OF MORE THAN 400 MILLION USD FOR GSP PIPELAY CONTRACTOR OF OLYMPIA PROJECT 269 MILLION USD CONTRACT

GSP INVESTS APPROXIMATELY 12 MILLION USD FOR THE UPGRADE AND RECLASSIFICATION OF GSP ORIZONT

GSP NEPTUN THE 1800 TONS CRANE ON ITS WAY HOME

2

CONTENT

4 NEWS 8 THE TURKEY’S ROLE IN ENSURING THE ENERGY SECURITY IN THE BLACK SEA REGION 12 UPETROM GRUP, among the supporters and participants at the Black Sea Energy and Economic Forum, Bucharest, 2009 13 THE FIRST PARTICIPATION OF A GSP REPRESENTATIVE AT THE IWCF EUROPEAN REGIONAL BRANCH MEETING 14 OFFSHORE CONSTRUCTION REPORT, 2009 GSP’s offshore constructions management and investments 20 GSP - KEY OFFSHORE SERVICE PROVIDER 24 GSP TRAINING CENTRE Training sessions for the crewmembers onboard GSP Prince 26 GSP REGISTERS A ROMANIAN FIRST - A unique welding facility will train the welding personnel for subsea pipeline installation 28 BLACK SEA, key region for the European energy security 30 GSP INVESTS APPROXIMATELY 12 MILLION US DOLLARS for the upgrade and reclassification of GSP Orizont 31 HUMAN RESOURCES 2009 REPORT 32 HSEQ: culture, awards and milestones in 20099

Breaking the limit www.gspdrilling.com

3

FOREWORD

2009 WAS FOR A CHALLENGING YEAR FOR UPETROM GROUP! As companies within our group registered excellent results being awarded by the Romanian Chamber of Industry, Agriculture and Commerce, we may say we did well. We are proud to be able to say now that our determination to further continue the investment and development program confirmed the management good decisions. Another confirmation of the good path we are on is the series of offshore services contracts Grup Servicii Petroliere concluded, mainly in the offshore constructions area. We may say that together as a strong team, we’ll continue our march toward business consolidation. The rational and sincere partnership with our employees has led us to the position we hold in the regional market. When we stated we’ll support the career development of individuals and teams, that was a solid contract with our professionals and, as proven, we immediately confirmed we are ready to bring to live our engagement in sustaining human resources development, by offering them possibilities to train at the highest levels. Therefore I address my thanks to those professionals determined to team up, to advance to a new level in their career here, within Grup Servicii Petroliere.

I also feel I must publicly underline the capital role our contractual partners play in our success. There was a time when clients challenged us to rapidly understand and learn the industry logic; we continued learning, we continued expanding the services offer as our competencies develop, and, due to our well learned lessons we took along the time, we managed to transform the names of companies within Upetrom Group in solid patrimony/asset. Therefore I address our thanks to those business partners who have shown trust in our capacities and registered, due to the partnership with us, they managed to register excellent economical results. I must address our thanks to those contractual partners we already count among traditional clients as well as to the new clients. We pride ourselves as we received appreciation from the heavyweight offshore industry players in our regional market, both privately owned and national petroleum companies. We are regular presence in the Romanian, Bulgarian, Turkish and Russian oil and gas services market. We consider every one of them equally important. Every contractual partner comes on the first place as importance and we respond to the contractual demands with equal seriousness, competence and dedication.

I feel I must clarify for the readers the reasons I have to thank to so many: of course we could manage better at the end of 2009 without challenges the global market inflicted on us; we also could fail if not the trusted partnerships and coherent strategies. I shall not say the word so many times the financial market brought up as redundant theme of our personal lives and business analysis.

And I shall avoid it not in fear, but as it couldn’t confirm its validity on our territory: we concluded significant investments such as GSP Saturn upgrade and refurbishment and GSP Training Centre; we continue investments such as GSP Bigfoot 1 and 2, GSP Neptun, GSP Shipyard; we have designed the newbuild strategy steps as well as the technological modernization to sustain our further growth. These are only a few of the reasons we must consider 2009 a challenging and yet a good year for Grup Servicii Petroliere.

Let’s expect together the best from 2010!

Breaking the limit www.gspdrilling.com

4

October

GSP NEPTUN, THE 1800 TONS FLOATING CRANE REACHED CONSTANŢA SUD – AGIGEA PORT GSP operates the largest heavy lift floating crane in the Black Sea to carry out the company offshore construction, installation and removal operations.

GSP Neptun, the 1800 tons floating crane, concluded the voyage reaching Constanţa Sud – Agigea port on Saturday, the 2nd of October. GSP Queen performed the transport of the 1800 tons floating crane towing it from Tuzla, Turkey at the end of September across the Bosporus Strait into the Black Sea towards GSP Shipyard.

October

GSP NEPTUN COMPLETES GSP’S TECHNICAL VESSELS FLEET. GSP Neptun heavy lift floating crane, in length (L.O.A.) of 83 m, with the gross tonnage of 6,557 tons, may reach the maximum lifting height of 76.00 meters, 1.8 meters / minute / load, respectively 3,6 meters / minute / unload lifting speed.

GSP Neptun is transported to Constanta Sud - Agigea by GSP Queen, AHTS, classified under ABS register, towing, fire fighting and antipollution vessel Class 1 offshore support vessel, built in 2005.

October

GSP SATURN ENTERED UNDER A NEW CONTRACT WITH TPAO The offshore drilling rig GSP Saturn, located on the Turkish continental shelf of the Black Sea, drills for TPAO. TPAO continues the development of the Akçakoca subsea gas reserve and MODU GSP Saturn will drill under the present contract one firm well (and one optional).

October

GSP LICORN PROVIDES OFFSHORE SUPPLY SERVICES IN THE BLACK SEA UNDER A TPAO CONTRACT GSP Licorn, tug and supply vessel classified under BV register, entered a new contract. GSP’s vessel operates in Akçakoca field, in the Black Sea. The vessel provides services for GSP Saturn offshore drilling rig under a TPAO contract.

GSP Neptun, the largest floating crane in the Black Sea, 1800 tons lifting capacity

Breaking the limit www.gspdrilling.com

5

October

October

GSP PRINCE ARRIVED IN CONSTANTA PORT

GSP WAS AWARDED THE CONTRACT FOR SUBSEA GAS PIPELINES ENGINEERING, PROCUREMENT, FABRICATION AND INSTALLATION IN GALATA FIELD

GSP Prince completed on the 13th of October the voyage from Aalesund, Norway to Constanta Port. The ROV Survey / Diving and Intervention Support Vessel is operated by GSP under a bareboat contract with purchase option. GSP announces the availability of the newly build DP 2 specialized vessel on the offshore spot market.

GSP Prince, built in 2009, is outfitted for sub-sea duties such as ROV operations (pipeline/route survey), bottom mapping, sub-sea installation works, diving and intervention support, mother vessel for AUV/UUV operations, geo-technical investigation survey. GSP is operating the only ship of this type in the Black Sea area. The new GSP vessel is classified under DnV register (+1A1 SF, E0, DYNPOS AUTR, CLEAN, COMF c3-v3, HELDK. NAUT OSV, Ice C ERN 99,99,99).

GSP will perform under the present contract engineering, procurement, fabrication and installation of pipelines, 8,5 km x 6’’ from Galata platform to well head Kavarna 2, and 14,5 km x 10’’ from Galata platform to well head Kaliakra 2 with associated piggy backed liquid lines in the Bulgarian continental shelf.

The company will mobilize for the contract a fleet including GSP Bigfoot 1 – the shallow water pipe lay and heavy lift barge, GSP Prince – the new diving and ROV support vessel, specialized vessel for anchor handling assistance of the pipelay barge, two PSVs – GSP Licorn and GSP Perseu, and the crew vessel GSP Lyra. GSP is in charge of the

Breaking the limit www.gspdrilling.com

GSP Prince, vessel approaching Constanta port

6

GSP Prince.

The naming ceremony, a moment of intense emotion and great expectations

Breaking the limit www.gspdrilling.com

7

procurement, engineering, fabrication and transport to the offshore location by offshore supply vessels as well as the offshore install and tie-in of the facilities and components of the project.

October

GSP PRINCE NAMING CEREMONY TOOK PLACE ON THE 24TH OF OCTOBER IN CONSTANTA PORT GSP hosted the naming ceremony of DSV IMO 9489651 on Saturday the 24th of October.

The day marks both the official naming for the newest GSP vessel, GSP Prince, and the extension of the company fleet with another specialized vessel to answer the new offshore operational needs of the market in the region. GSP Prince is the only one DSV & ROV to operate in the Black Sea. GSP hosted the naming ceremony of DSV IMO 9489651 on Saturday the 24th of October. The ceremony was held in the passengers’ berth of Constanta Port.

A great number of guests attended the naming ceremony: representatives of the Norwegian companies Volstad and Baatbygg, of the Romanian Parliament and local administration, foreign petroleum and shipping companies, harbor authorities, navy, as well as Romanian business representatives.

The ceremony was held in the sounds of the Romanian Military Navy Brass Band.

The vessel will be outfitted for the following duties: ROV operations, SAT diving, sub-sea installation works, geo-technical surveys / works, light construction works, crane operations.

GSP Prince is designed to operate in all weather conditions, presenting excellent maneuverability and station keeping capabilities. The most modern survey equipment is installed and the systems have full plug and play interconnectivity.

GSP Prince has accommodation for 64 persons, segregated over 34 single and 15 double cabins.

November

BULGARIA CONFIRMS COMMERCIALITY OF MELROSE’S KAVARNA GAS FIELD Melrose Resources announced last November that the Bulgarian Government has issued a Certificate of Commerciality for the Kavarna gas field and the Company has now submitted an application for a similar Certificate of Commerciality for the Kaliakra field.

The approval effectively commences the development of the Kavarna field, which contains estimated reserves of 24 Bcf and is located 8 kilometers east of Melrose’s Galata field platform. The field will be produced using a single subsea well completion tied back to the Galata facilities using a 6 inch flow line and is expected to be on stream by July 1, 2010. The Kaliakra field, which contains 57 Bcf of reserves, is located 14 kilometers east of Galata and will initially be developed using a single subsea well with a dedicated 10 inch flow line to allow for future expansion. First gas is expected from this field by 1 October 2010. The two field flow lines will be laid

by Grup Servicii Petroliere, using GSP Bigfoot 1 shallow water pipelay & heavy lift barge, GSP being also responsible for the subsea completion activity. The total capital expenditure for the two developments is expected to be $59 million (including historic well completion costs) equating to $0.73/Mcf. With respect to other project approvals, the Company is also in active discussions with the Bulgarian Ministry for Economy and Energy to finalize the terms of an Amendment to the Galata Production Concession which is required for the Galata gas storage project.

Breaking the limit www.gspdrilling.com

8

THE TURKEY’S ROLE IN ENSURING THE ENERGY SECURITY IN THE BLACK SEA REGION

Breaking the limit www.gspdrilling.com

9

GSP Shipyard Agigea became a hot spot for the development of international offshore construction projects

Breaking the limit www.gspdrilling.com

10

The Atlantic council and the Romanian Ministry of Economic Affairs were the organizers of the Black Sea Economic and Energy Forum. The Turkey’s energy supply attracted once more with the occasion of the summit in Bucharest the interest of the oil and gas industry, as well as of the states’ high representatives taking part in the event.

Representatives of all the countries in the Bucharest Economic and Energy underlined the importance of the Turkish oil and gas reserves as well as of the oil development strategy drawn up and coherently observed during the recent years.

Ensuring the oil and gas supply through increased internal production in Turkey results in increasing the energy stability in the entire region.

The Black Sea Economic and Energy Forum was a successful opportunity for Grup Servicii Petroliere, as the company stated once more its determination to contribute to the Turkish offshore oil and gas production.

GSP builds the jacket and the double deck modular production platform designated to double the Turkey’s actual gas production.

TPAO, the Turkish Petroleum awarded the offshore construction EPIC for the Akçakoca gas field to GSP in Q4, 2008. The fabrication works started in 2009, and GSP developed the technical fleet in the same time to support the offshore operations.

The Bucharest regional energy summit gave the opportunity to TPAO and Turkish state representatives to visit the fabrication facility in Constanta Sud Agigea. As the platform construction and commissioning will lead to a double gas production

GSP builds the jacket and the double deck modular production platform designated to double the Turkey’s actual gas production. TPAO, the Turkish Petroleum awarded the offshore construction EPIC for the Akçakoca gas field to GSP in Q4, 2008.

in Turkey, it is considered a strategic investment. Metin Kilci, the Energy and Natural Resources Ministry Undersecretary, stated the importance of the project for the Turkish press: “Doubling the internal Turkish production is an effort which has to be appreciated. The Akçakoca natural gas deposits will be productive at the completion of this offshore platform”.

Mehmet Uysal, General Director of Turkish Petroleum (TPAO), provided information regarding the value of the offshore construction project and the scheduled date for the production facility to enter service: “The largest production platform in the Black Sea is scheduled to enter service in 2010, the costs risig up to the amount of 100 USD million. This is the second development stage of Akçakoca natural gas reserve.

TPAO started the activities in the region in 2003. The newbuild platform will lead to a new development stage, as TPAO plans 6 new production wells to be drilled on the location.”

Mehmet Uysal, General Director of Turkish Petroleum (TPAO), also added that within the scope of the offshore construction project there is the installation of 7 kilometers of pipeline. The subsea pipeline will connect the production platform to the existing main pipeline trunk, ensuring the connection of the offshore production facility with the gas plant onshore. “The current natural gas production reaches 1 million cubic meters per day. We are expecting the completion of the new offshore construction to raise the gas production up to 2.5 million cubic meters per day” concluded the Turkish Petroleum General Director.

The Turkish delegation taking part in Bucharest Energy Summit, “Black Sea Economic and Energy Forum”, accompanied

by Turkish media, visited GSP Shipyard

- the offshore construction site in Constanta Sud – Agigea Port and at GSP’s headquarters and Training Center in berth 34, Constanța port.

The delegation, visited the offshore construction site and the shipyard where GSP Bigfoot 1 project is carried out, in GSP’s operational base, in Constanta

Breaking the limit www.gspdrilling.com

11

Sud – Agigea Port. The shipyard represents a 2009 GSP’s investment of 10 million USD, a new development of an operational base covering the area of 38.600 m2 having a 372 meters long quay opening, including a 700 m2 administrative building with 17 offices, conference hall, a fully equipped hospital and modern social facilities. The shipyard includes a 2720 m2 multipurpose workshop, a heavy duty opened platform as well as the necessary infrastructure and utilities allowing GSP to perform extended offshore prefabrication and construction works. The multipurpose workshop is equipped with two 20 + 5 tons gantries running on a range of 130 meters. The shipyard operations are sustained by a newly acquired fleet of onshore heavy lift cranes and modern welding stations. The Turkish officials have visited the shipyard they assessed the progress of the steel works within the jacket fabrication process as well as the topside. The delegation has also checked the progress made during the upgrade, refurbishment and reclassification project for the heavy lift / pipelay barge GSP Bigfoot 1.

Mr. Gabriel Comănescu, President of Upetrom Group - GSP, presented the progress GSP has registered since the establishment of the shipyard and the commencement of works. He also made reference to the results GSP recorded during the last audit performed by the beneficiary, the Turkish Petroleum.

He stated during the visit: “GSP is committed to confirm once more it become the leading offshore services provider due to the high professional standards. The 100 USD million offshore EPIC contract concluded in 2008 with TPAO is the beginning of an important offshore constructions series GSP will complete, bringing its contribution to the energy security in the Black Sea region.

The fabrication process continues as previously planned and the company simultaneously with the technical fleet development process. The scheduled

GSP Shipyard Agigea. The official delegation at the jacket fabrication site

Breaking the limit www.gspdrilling.com

activities are sustained by human resources recruitment program to supply both the extension of the onshore fabrication and the technical vessels crews”.

The visit continued at GSP’s headquarters in berth 34, Constanta port.

Here, the official representatives of the Turkish presidency and government, as well as the representatives of the main Turkish oil and gas companies, have visited the new Training Center GSP established in 2009, a 6.5 million euro investment. GSP Training Center uses the latest DrillSIM 6000 simulator. The Training Centre offers well control training - Surface BOP Stack Operations – Driller level; Surface BOP Stack Operations – Supervisor level – offshore drilling personnel evaluation and certification, as well as Cyber Based control training of the X – COM drilling equipment using the latest simulation technology.

12

UPETROM GROUP AMONG THE SUPPORTERS AND PARTICIPANTS AT THE BLACK SEA ENERGY AND ECONOMIC FORUM, BUCHAREST, 2009 The Black Sea Energy and Economic Forum (BSEEF) is an event bringing together world leaders and key stakeholders in energy policy and business for unofficial consultations on global energy security. Set in the broader Black Sea-Caspian region due to its position as a nexus of global energy security and geopolitical instability, the Forum provides an exclusive setting for high-level representatives from government and industry around the

The mission of the Black Sea Energy and Economic Forum is to foster multilateral cooperation between stakeholders in the Atlantic Community, the Black-Sea-Caspian region, and around the world on energy policy issues. It promotes energy security, market-based solutions, and an energy industry compatible with sustainable development. The Forum strives to meet the needs of countries producing and consuming energy through increased flow of capital, technology and collaboration in the energy sector.

world to discuss relevant issues and develop recommendations for the future.

The event took place in Bucharest between the 30th of September and the 2nd of October. Among the inaugural forum featured speakers, there were: Traian Băsescu, President of Romania, Mircea Geoană, the President of the Senate, Romania, Crin Antonescu, Vice President of the Senate, Romania; Adriean Videanu, Minister of Economy, Romania; Cristian Diaconescu, Minister of Foreign Affairs, Romania; Mr. Fabrizio Barbaso, Deputy Director General, DG TREN, European Commission; Ambassador C. Boyden Gray, Former U.S. Special Envoy for Eurasian Energy and European Affairs, Gray & Schmitz LLP; Senator Chuck Hagel, Chairman, Atlantic Council; George Maior, Director, Romanian Intelligence Service; Ambassador Richard Morningstar, U.S. Special Envoy for Eurasian Energy; Mr. Dinu Patriciu, Chairman, DP Holding SA; Mr. Paolo Scaroni, Chief Executive Officer, Eni S.p.A. Mr. Bruno Siefken, Vice President of Upetrom Group gave a speech within the section “Oil for the 21st Century: Prospects and Challenges” of the Black Sea Energy and Economic Forum.

The mission of the Black Sea Energy and Economic Forum is to foster multilateral cooperation between stakeholders in the Atlantic Community, the Black-SeaCaspian region, and around the world on energy policy issues. It promotes

Breaking the limit www.gspdrilling.com

13

energy security, market-based solutions, and an energy industry compatible with sustainable development. The Forum strives to meet the needs of countries producing and consuming energy through increased flow of capital, technology and collaboration in the energy sector.

BSEEF provides an exclusive setting in which energy policy and business leaders, professionals, and those concerned with energy and sustainability can interact and generate ideas for future action. „No area is more important to global energy security than the Black SeaCaspian region. The combination of vast oil and natural gas fields and flights, and the crucial need for diverse, stable sources of energy for European and global markets makes this region central to any conversation about the geopolitics of global energy security.

In order to promote dialogue and multinational cooperation in this area of increasing geopolitical significance, the Atlantic Council has initiated the BSEEF through our new Eurasia Energy Center.

By bringing together key regional and global energy security stakeholders from governments and business, we hope to help transform the Black Sea-Caspian region into a more stable and cooperative platform that grows more closely linked to the European Union and the U.S.“ declared in his inaugural speech Mr. Chuck Hagel, Chairman, Atlantic Council.

BSEEF registered the participation of CEOs and Executives from: Areva, BOTAS, DEPA, DP Holding SA, Egypt Gas, Eni S.p.A., ExxonMobil, Hunt Oil, OMV, Sabanci Energy Group, Schlumberger, SOCAR, TEIAS and TPAO as well as Energy and Economy Ministers and Senior Officials from: The Republic of Azerbaijan, The Republic of Bulgaria, Georgia, Romania, The Russian Federation, The Kingdom of Sweden, The Republic of Turkey, Turkmenistan, Ukraine, The United States of America, and The Republic of Uzbekistan.

THE FIRST PARTICIPATION OF A GSP REPRESENTATIVE AT THE IWCF EUROPEAN REGIONAL BRANCH MEETING Between the 30th of September and the 1st of October 2009, OMV Austria hosted the IWCF European Regional Meeting at Gansendorf. The event was attended by representatives of the IWCF European Branch. The International Well Control Forum is an oil industry Membership Organization established in Europe in 1992. Its primary purpose is to develop and administer well control certification programs for personnel employed in oil well Drilling, Workover and Well Intervention operations. IWCF well control certification programs have been used by 50,000 persons at 173 locations in 54 countries since January 1993.

The European Branch was constituted on the 6th of February 2001. The IWCF European branch includes Austria, Croatia, Hungary, Ireland, Poland, Romania, and Turkey. The IWCF European Branch meets in technical meetings once or twice a year, to discuss new procedures and/or revisions of procedures being proposed by the IWCF secretary, the assessors’ points of view being carefully taken into consideration. The IWCF technical meeting was attended by IWCF accredited instructors working within the IWCF training centers in Europe. The meeting agenda included the interventions of Dr. I. Federer (Miskolcz-Hungary), Wilhelm Sackmaier, Dr. T Szabó (Miskolcz-Hungary). The speakers reviewed past decisions of international board, presented the progress state. The technical meeting agenda offered the opportunity to overview themes such as: øPractical Assessment Quality Assurance, øPractical Assessment Well Design Rules, øPractical Assessment Exercises øAccredited Assessor Pack øPrinciples & Procedures and Equipment Question Comments øDiscussions øAn OMV land rig visit.

Constantin Gheorghe, GSP’s HSEQ Executive Officer, represented our company at the IWCF Technical meeting. During his intervention, Constantin Gheorghe took opportunity to present the new training facility established in 2009 by GSP and proposed Constanta as a future location for an IWCF meeting. As our company entered the training services market just a few months ago, the meeting also presented itself as an opportunity to deeper familiarize with offshore staff training issues, networking with representatives of the training centers from Spain, Austria, Croatia, Hungary, Ireland, Poland, Romania (Oil and Gas University, Ploiesti), and Turkey.

Breaking the limit www.gspdrilling.com

14

OFFSHORE CONSTRUCTION REPORT, 2009

Breaking the limit www.gspdrilling.com

15

GSP Shipyard, Agigea.

Steel jacket onsite fabrication stages

Breaking the limit www.gspdrilling.com

16

GSP Neptun crossing under the Bosporus bridge.

The largest floating crane in the Black Sea heading to GSP Shipyard in Constanta Sud Agigea

GSP’S OFFSHORE CONSTRUCTIONS MANAGEMENT AND INVESTMENTS The Offshore Constructions Department manages from 2008 engineering, project management, operational coordination, analysis and design of fixed offshore platforms, jackets, topsides, subsea pipelines. The offshore constructions offer includes procurement, fabrication,

load-out, sea fastening, heavy lift, transportation, installation services, commissioning, and maintenance. GSP Shipyard located in Constanta Sud – Agigea harbor, an investment amounting 10 million US dollars to be further developed, is the onshore operational base designated for steel-structure and fabrication to support the offshore construction activities. A fleet of 10 heavy lift crawler and all terrain cranes sustains

Breaking the limit www.gspdrilling.com

17

the fabrication onshore, the acquisition value summing up to 8,646,000 euro.

GSP also developed the fleet of technical vessels: heavy lift, pipelay, semisubmersible and sliding barges, tender assist, in order to successfully answer the offshore industry demands in the Black Sea area. The technical fleet development represents a strategic program of major investments and acquisitions including: 70 million USD for

GSP Bigfoot 1 (pipelay/heavy lift/tender assist barge) conversion, reclassification, equipment acquisition; 27 million USD for the acquisition of the 1800 tons heavy lift crane barge GSP Neptun and 750,000 USD for its modernization; 3,500,000 euro for the reactivation and reclassification of GSP Bigfoot 2, the semi-submersible barge. The company also operates GSP Prince, DSV/ROV offshore support vessel built in Norway in 2009 and reaching the

Breaking the limit www.gspdrilling.com

18

GSP Bigfoot 1. Heavy lift / Shallow water pipelay barge during the shipyard modernization process

market value of 100 million USD. GSP supported the offshore construction activities by creating 80 new workplaces so far. Taking into account the necessary workpower both for the extension of the fabrication works and the technical vessels crews, the number of newly created workplaces will rise up to almost 300.

OFFSHORE CONSTRUCTION PROJECTS PORTFOLIO TPAO Project – Akcakoca Field Western part of the Black Sea

In September 2008, GSP signed a contract with TPAO to provide Engineering, Procurement, Construction and Installation (“EPIC”) services related to the development of the Akcakoca field drilling/wellhead platform and offshore pipeline in the Western part of the Black Sea. The fabrication process has already started with expected completion in 3rd quarter 2010. GSP ensures the project management as well as procurement of the jacket materials, fabrication, erection, assembly, load-out and sea fastening of the jacket, piles, risers and

Breaking the limit www.gspdrilling.com

19

clamps, GSP will design, purchase, build and install a 4-legged steel jacket platform of 101 meters height with an approximate total weight of 1600 tons.

The drilling-production platform will be located in the Akcakoca gas field, above the two existing wells, AKC – 3 and AKC – 4. The top side of the platform will have two decks, GSP having also the task of purchasing, installing and commissioning the facilities for the first deck. GSP will also install a subsea pipeline, approximately 7 kilometers long, 12” in diameter, also realizing the connections to the existing 12” offshore trunk pipelines, for transportation of the produced gas to the Cayagzi Plant, near Akcakoca, through the offshore pipeline.

Galata Project – Bulgarian Continental Shelf Black Sea In October 2009, GSP signed a lump sum contract with one of its core customers, Melrose Resources, for offshore construction work to be performed in the Bulgarian Continental shelf. The total project is divided into two stages with a total value of about Euro 24 million. GSP will perform Engineering, Procurement, Fabrication and Installation of an 8.5 km 6” pipeline from Galata platform to well head Kavarna 2, and a 14.5 km 10” pipeline from Galata platform to well head Kaliakra 2, in 80 meter water debt. Both pipe line routes will include associated piggy backed liquid lines. According to Melrose Resources public data (March 09) the Galata filed development holds ultimate reserves of about 74 Bcf with production of 20.2 MMcfpd in 2008.

The Galata block exploration potential include Kaliakra (47 Bcf) and Kavarna (24 Bcf). GSP will use multiple assets in its offshore fleet for this contract, including: Bigfoot 1 which will perform pipe laying; GSP Prince will be used to conduct pre-lay survey and for installation, ROV, and saturation diving; GSP Perseu will do the pipe haul; GSP Licorn will supply consumables and GSP Lyra will handle crew transport.

OLYMPIA PROJECT DZHUBGA-LAZOREVSKOE -SOCHI GAS PIPELINE BLACK SEA Grup Servicii Petroliere S.A. (GSP S.A.) has been awarded the 150 km 20 in. and 4.5 km 6 in. subsea pipelay contract along the Caucasian Black Sea coast within the Olympia Project.

GSP and Stroygazmontazh signed the contract on the 19th of November.

Grup Servicii Petroliere will install in a window of eight months the subsea pipeline along the Russian coastline.

The pipeline will ensure the gas connection Dzhubga – Lazorevskoe – Soci. The Olympia project will include the connection of the DzhubgaLazrevskoe-Sochi gas pipeline to the active intercontinental gas pipeline Russia-Turkey in the town of Gorsky in the Tuapse region. The objective of the project is to ensure a stable and reliable gas supply for the Krasnodar Territory’s Black Sea coast area.

The value of the contract amounts to 269 million USD. Grup Servicii Petroliere is the contractor of the offshore works package including: pipelay, welding, NDT, survey, as well as the marine logistics to support pipelay operations, such as supply vessels, and crew boat.

The Company will also carry out all the subsea survey activities related to Olympia project. The fleet GSP will mobilize for Olympia project one technical vessel, GSP Bigfoot 1, the heavy lift & shallow water pipelay barge for pipeline works including welding/NDT/FJC/survey equipment as well as several specialized offshore vessels. The fleet mobilization list includes GSP Prince, for DSV/ROV survey and trenching, GSP Phoenix, for crew transport and supply, GSP Vega, the pipelay barge support vessel, three PSVs, GSP Licorn, GSP Orion and GSP Perseu and one anchor handling tug supply vessel (AHTS).

Breaking the limit www.gspdrilling.com

20

Breaking the limit www.gspdrilling.com

21

GSP - KEY OFFSHORE SERVICE PROVIDER

Breaking the limit www.gspdrilling.com

22

The Mediterranean and Black Seas have not always been global hot spots for offshore oil and gas exploration.

However, drilling in these two areas has increased substantially. With multiple projects upcoming and prolific production existing, both the Mediterranean and the Black Sea are logging more rig time every year. Grup Servicii Petroliere is one of the offshore industry players developing the oil and gas offshore projects in the Black Sea region. Two of the company’s MODUs, assets in which the company invested 130 USD for the technological upgrade, GSP Jupiter and GSP Saturn, to them adding GSP Prometeu – with a very positive drilling results history - contribute the exploration and production drilling as well as workover and tender assist on the Romanian, Bulgarian and Turkish continental shelves. GSP is determined to extend its activities in the region, as major oil and gas subsea reserves are going to enter the well drilling, completion and production in Bulgaria, Romania, Turkey, the Ukraine and Georgia, as well as on the Russian shore.

Right now, there are 16 offshore rigs working in the waters of both the Mediterranean and the Black Sea. The offshore industry is already familiar with intense rig operations in the North African region. Furthermore, the drilling in these regions is not restricted to shallow waters. The recent drilling data registers the movement of the drilling activities from the shallow water parts of the two Seas, to the deepwater oil and gas reserves, Libya registering two contracted deepwater rigs, the third one being registered in the Mediterranean waters offshore Egypt. The Black Sea access of the offshore drilling installations is limited by the Bosporus Strait, the bridges height and existing subsea cables in the strait.

The increased drilling rates in the Black Sea resulted mainly from GSP’s activities Currently there are four offshore rigs drilling in the waters of the Black Sea; three of them being GSP Jupiter, GSP Saturn and GSP Prometeu. A relatively

GSP Jupiter. One of the Black Sea drilling rigs with a positive operational history.

unexplored area, the Black Sea has become more of a reality in the last decade. The current number of GSP’s rigs has helped to boost production in the region.

In a recent announcement, Petrom informed upon the production results of the offshore shallow water wells drilled by GSP Jupiter. The two wells are expected to add more than 4,500 barrels of oil equivalent per day to Romania’s production.

With a concerted focus on exploration and production in the Black Sea, Melrose

Breaking the limit www.gspdrilling.com

23

Resources contracted drilling services by employing GSP Prometeu jackup in the Black Sea waters offshore Bulgaria. In 2004, Melrose successfully brought onstream the first offshore gas development in Bulgaria, the Galata field. In 2008, the company made two nearby discoveries, the Kaliakra and the Kavarna fields, which will be developed as subsea tie-backs to the Galata infrastructure in 2010.

Exploratory drilling continues on the block.

Melrose Resources intends to invest 20.6 million USD in Doina and Ana subsea

reserves in the Black Sea The oil & gas company Melrose Resources plans for 2010 an investment of 20,6 million dollars in Doina and Ana subsea reserves in the Black Sea, the main investment being focused in exploration activities, 33% of the budget being directed on seismic aquisitions and drilling operations, according to the press release. „In 2010 we expect the cash flow to offer a platform to re-direct towards exploration and business development initiatives. The key-areas for our investments in 2010 will be our development projects in the western Black Sea region“ declared David Thomas, the executive director of the company.

The company also plans to initiate the gas deposit project in Galata field, Bulgaria; 27n million dollars represent the investment for the first stage of this project, in the company’s Thursday press release.

In March, Melrose Resources acquired from Sterling Resources 32.5% of XIII Pelican and XV Midia offshore fields for 90 million dollars. The British Company Melrose Resources holds 32.5% shares within the petroleum agreement of Sterling Resources in the Black Sea holding 32.5% shares, while Petroventures holds 20% and Gas Plus 15% of the shares.

Melrose Resources is a company specialized in oil and gas exploration, development and production, carrying out operations in Egypt, Bulgaria, United States of America, France and Turkey.

The company registered 97.6 million dollars income for the first semester of 2009, decreased compared to the income of the same period of 2008, when it amounted 234 million dollars.

The operational profit registered by the company during the first half of the current year was 32.1 million dollars, five times smaller than the operational profit in 2008, when it was 151.8 million dollars.

Breaking the limit www.gspdrilling.com

24

GSP Prince.

The knuckleboom crane

GSP TRAINING CENTRE TRAINING SESSIONS FOR THE CREWMEMBERS ONBOARD GSP PRINCE As GSP Prince prepares for contracts, onboard are carried out operations for the equipment installation and members of the crew attend dedicated training sessions.

Between the 23rd and the 29th of

November, the personnel onboard occupying positions such as Master Mariner, Chief Officer, Deck Officer, attended the dynamic positioning familiarization training session conducted

by Thomas Solevaag, from Rolls Royce.

Breaking the limit www.gspdrilling.com

25

Rolls Royce will also provide specialized maintenance training for GSP Prince crewmembers.

Within the 24th and 29th Trevor Dear from SPAROWSOFFSHORE trained selected crane operators for the Knucleboom Crane onboard the vessel. They also took part for two days in practical training sessions programmed with the vessel performing sea trials in the open sea at a waterdepth reaching 200 meters.

The competence assessment could be carried out only in the opened sea, where the observation of dynamic lifting is possible. The offshore crane operator competence training and assessment is compulsory as the crane operator plays a safety critical role that demands a high level of skills. The SPAROWS Training for crane operators, delivered in three stages, has been internationally adopted as the offshore industry standard.

The program has been designed and presented giving due consideration to the recommendations contained in S.I. 2307 Lifting Operations and Lifting Equipment Regulations 1998, HSE Training Guidance Note No.5 “Selection & Training of Offshore Crane Drivers” and British Standard 7121 Part 11 “Safe Use of Cranes Offshore.” The content incorporates requirements associated with the operation of cranes on platforms, semi-submersibles, jack-up rigs, drill ships and FPSOs. The program is designed to build competence. Operators with evidence of past experience such as the GSP’s selected team could enter an advanced stage of training or assessment.

The Dynamic Positioning Customer Familiarization Training aimed to give the participants a basic understanding of the Icon DP System.

The selected crewmembers practiced on the Icon DP Graphical User Interface (GUI). Course content included: introduction in dynamic positioning, system concept, system description, general description, system operation.

The training blended in a combination

The competence assessment could be carried out only in the opened sea, where the observation of dynamic lifting is possible. The offshore crane operator competence training and assessment is compulsory as the crane operator plays a safety critical role that demands a high level of skills. of theoretical lessons and practical exercises. The course was delivered in English.

The training included dedicated maintenance teaching targeted to the vessel’s electricians, engineers and maintenance personnel, responsible for the daily maintenance of the Icon DP system. The selected crew members took part in practical exercises on how to download log files, export log files to DP support, reboot icon DP calibrate position- and joystick device, recalibrate touch screen. The customer’s training objective was to give the participants a basic understanding of the Poscon Joystick System. The participants practiced on the Poscon Joystick System being introduced to operating functions on the system.

The course included: system concept, system description, general description of the Poscon joystick system, system operation covering the function and mode of operation of the system (operation principles, system operation, signal processing functions, joystick device, graphical user interface - GUI).

Breaking the limit www.gspdrilling.com

26

Breaking the limit www.gspdrilling.com

27

GSP REGISTERS A ROMANIAN FIRST

A UNIQUE WELDING FACILITY WILL TRAIN THE WELDING PERSONNEL FOR SUBSEA PIPELINE INSTALLATION

GSP sets up the new welding facility in the berth 34 operation al base, Constanta Port.

The project will be operation al in the first term of 2010. The development of the new facility is connected to the offshore construction activities GSP carries out.

In order to generate welding procedures and to train welders, the facility will provide, registering a Romanian first, welding capacities for training in order to supply certified workforce for subsea pipeline installation operations.

The welding facility will include the following: øSpace for mock-up trolley and manual stations; ø10 tons gantry/overhead crane; øOffice spaces; øGeneral offices facilities; øStorage space for welding supplies/ consumables; øStorage space for full length pipe joints; øLocation for the bevel station.

GSP’s new training & certification pipelines welding facility

Breaking the limit www.gspdrilling.com

GSP has allocated a 400 square meters space for the welding facility, and will also supply the project specific and non specific equipment.

28

General view of the regional oil and gas fields. Courtesy of Deloytte free maps

BLACK SEA, KEY REGION FOR THE EUROPEAN ENERGY SECURITY It became a common place while talking about regions with a fast growing economic potential to speak about the Black Sea area as well. Black Sea tends in the first decade of the 21st century to enter the short list of energy tigers, in times when discussions mention, besides the resources, the political and financial aspects of the countries in the region. And, while Europe and world remained focused on slow speed democracy, on cultural stereotypes, on centuries’ perpetuated territorial conflicts or disagreements, it became easy to generate general astonishment simply by mentioning facts that do not comply with the general stereotypical representation of the region. Here below I’ll mention one such fact contradicting general opinions: when talking about the offshore industry

big and rapid steps forward, the situation is just the opposite of the common representation. The countries bordering the Black Sea prove the capacity to identify common start points to initiate profitable economical projects to develop, no matter what the analysts say.

The 21st century is yet to demonstrate how the economical advancement may positively influence the geopolitical balance.

While waiting for the general climate to change in favor of foreign investments in the Black Sea region, under the pressure of stereotypes referring to historical tensions, the energy market is surprised to discover daring local initiatives may succeed. The local business focused on development, on workforce market development, on securing the energy

Breaking the limit www.gspdrilling.com

29

supply, could identify solutions that prove to go beyond historical and transition opinion and approach differences.

The offshore industry businesses in the area together with national petroleum companies, with other stakeholders of the domain, find themselves at the very origin of the cooperation and balance between states in the region.

The Black Sea represents for the economic players a rich development resource. This brings together people.

While waiting the foreign investors to change their perception of the region as a perilous investment climate and the growth of their trust in venturing, the region fast identifies and stimulates its own investment & development capacities. The local business understands better and adapts faster to the specific legislation and conditions.

The local businesses contribute to the region development, to the energy resources exploitation while others expect political proclamations. History never changes; the future is changing now by building economical bridges to link regional economies, to ensure constant energy supply.

The foreign investment at increased levels is perceived as the best way to achieve development. Offshore industry players in the Black Sea region discovered a new development way, as their interest grew in each other market opportunities: to be one step forward political agreements, to strengthen the present ties in order to build an economically stable future.

The financial outlook of the region shows signs the western investors find rather discomfort generators: economies marked as for five or more years’ contraction, the GDP gross erosion for more than a decade, the downturn of the formal economy in conjunction with the substantial shadow/ grey economy extension are among the foreign investors’ rational discomfort reasons. Year 2000 marks for the region a regional climate change - a speed up of the reform process and other few signs

of recovery. Maybe from the inside of these economies one can better feel the vibration of the implemented reforms, can better see the recovery signs. And it may be for the better to support each other, to identify development resources for the economical growth. Here also comes the standards’ theme: low standards levels were reported at the beginning of the 90s and they continued to be presented this way. But insiders know things have changed. Natural resources and workforce represent interesting and inviting investment sectors.

Black Sea plays a critical role in ensuring the energy security of Europe. Major oil and gas reserves yet to be developed, both shallow and deep water, as well as oil and gas from much further regions will be delivered to the continent through Black Sea strategic pipeline projects.

Only the regional economy players may change general perception. Being steps ahead in terms of standards and technological development from other economical areas, the energy field players in the region will incline the balance in favor of transforming the Black Sea, in positively changing the regional picture.

Supplier countries, consumer countries, transit countries, all may find themselves economically involved in sustaining the regional growth and favoring Europe’s energetic security.

The first choice of the offshore business players in energy exporting, energy importing and transit states in the Black Sea region is to pave the way for reciprocal upstream-downstream investments. Europe’s energy needs require expanding import capacities, respectively expanded imports.

Competitiveness, sustainability, security of supply, and affordability are the common goal characteristics.

The comprehensive energy dialogue begins in the region and on its basis are generated the investment, infrastructure development strategy and programs in a context of increasing stability and predictability.

Breaking the limit www.gspdrilling.com

30

GSP INVESTS APPROXIMATELY 12 MILLION US DOLLARS FOR THE UPGRADE AND RECLASSIFICATION OF GSP ORIZONT The upgrade and reclassification of GSP ORIZONT Mobile Offshore Drilling Unit (MODU) is a project that enrols within the Grup Servicii Petroliere upgrading and refurbishment programme of the drilling units.

Paul Nichiforov, the Executive Officer of the Investments, Development and Repairs Department put at our disposal a series of comprehensive information regarding the new project he will coordinate: „Upgrade and reclassification of GSP ORIZONT MODU is a Grup Servicii Petroliere important project due to the fact that its main objective is to obtain a new GL Class Agency Certificate which will permit it to continue operating and performing services under new drilling contracts, meeting the international market standards as well as GSP’s contractual obligations. GSP ORIZONT upgrade scope of work consists in improvement of main technical platform parameters and safety operating process by renewal the equipments physically and/or morally aged. The upgrade project will take into consideration the electrical power generation and supply system, the drilling equipments, under main deck

GSP ORIZONT upgrade scope of work consists in improvement of main technical platform parameters and safety operating process by renewal the equipments physically and/or morally aged.

naval equipments, and the radio system.

Another modernization scope stays in increasing the hook load capacity up to 450 To. MODU GSP Orizont upgrade and reclassification project also includes among the stated scopes checking, identifying, repair and overhaul operations of all existing equipments and plants which will be not subject of replacement in order to eliminate any technical unconformity.

All verifications and works will be done as per GL Classification Agency requirements and rules and under GL surveillance.”

In order to meet all the above mentioned project goals, the following main work packages will be developed: ø The existing Ward Leonard system will be replaced with a new SCR and Power Management System; the existing cc and ac main diesel generators type 6LDSR and 12 LDSR (Romanian fabrication) will be dismounted and 5 new main Diesel generators will be newly mounted; the adjacent systems (fuel, air launching, exhaust, cooling water, etc.) will be replaced too. A new insulated compartment will be designed, manufactured and mounted as transformers room. ø The existing mud pumps will be removed and replaced with 3 new 5000 Psi Triplex pumps; ø The high pressure mud pump discharge piping modifications together with valves/ strainers and High pressure pipes & Demco valves for mud manifolds will be designed, manufactured and mounted; ø The new LIDAN WICHITA draw works brake system will replace the existing; ø The existing travelling block and crown

Breaking the limit www.gspdrilling.com

31

block will be replaced by new ones; ø Other derrick modifications will be done in order to increase hook loading capacity to 400 to and travelling block from 320 to 400 to, based on the results of EURONED study and detailed design. UPETROM 1 MAI Ploiesti – Romania will manufacture all those new equipments. ø An electric Top Drive will replace the existing hydraulic one and a new Driller’s Cabin with one chair delivered

by UPETROM Ploiesti Romania will be mounted too; ø Steel plates and structural hull thickness measurements will be done and all unconformities will be eliminated; a piping and cables traces optimization will be done as well; submerse and above sea level legs inspections and NDT checking will be performed under Class Agency surveillance; welds and thickness of legs elements, including structural and auxiliary tanks will be inspected and checked. ø All three cranes (starboard side, port side and aft side) will be technically inspected and overhauled by platform crew specialists; the weighing systems will be repaired or replaced if necessary. ø A general refurbishment of the existing accommodation will be performed in order to replace the old furniture pieces, the insulation of the walls between rooms, ceilings and wall panels where needed, new flooring, lighting lamps and doors.

Project work package activities will be done in LAMPRELL ENERGY Shipyard in Sharjah – Hamriya – UAE. Traditional GSP goods and services suppliers (EURONED, UPETROM 1 MAI, ICPE ACTEL, etc.) will be involved in project execution.

The entire project will be managed by GSP specialists. The designers, services and goods suppliers, local UAE authorities, Lamprell Energy and Germanischer Lloyd Agency were identified as stakeholders impacting the project. The GL rules and regulations and the special requirements imposed by IMO, MODU CODE, SOLAS, MARPOL documents will be carefully observed during the 2010 programmed modernization project of GSP Orizont.

HUMAN RESOURCES 2009 REPORT GSP is, at the moment, among the few employers constantly offering jobs to the HR market in Constanta. As in every bad situation there may arise a series of advantages, the actual downfall of the regional human resources market, and lead for GSP to the advantage of performing a selection of the best the market had to offer.

Businesses such as shipyards have fallen under the financial crisis influence; GSP has had the possibility to attract the very best of the workforce market. We also have proven to play a significant role in retaining professionals ready to leave Romania in their international career quest as well as in attracting experienced professionals from the international market. The projects GSP is carrying out attract both Romanian and also foreign specialists.

The demanding attitudes towards work, safety at work, environmental protection, occupational health, as well as towards the quality helps us in attracting the most ambitious workforce. They do not consider difficult to adapt and respond to the standards we set; they find a very clearly drawn straight line sustaining their individual career goals.

The internal workforce market evolved to chronically lack of training facilities and certification programs, internationally accredited trainers for the offshore industry. GSP considered the company must compulsory involve in maintaining the international certifications. GSP Training Center is the first step the company performed in this direction, entering the offshore training services market.

GSP continued to further develop the human resources capital. In 2009, only within the offshore constructions department, almost 80 professionals have found a newly created workplace, in project management, cost control, engineering, welding, non destructive testing, fitting and crane operation, subsea survey and many others.

Once the technical vessels will become operational, in the first quarter of 2010, the number of newly created workplaces will rise up to 300. The human resources department mobilizes to identify the professionals fit to occupy the open positions and the company will sustain their training and certification. Stelian Grasu, the Human Resources Executive Officer, declared for our magazine: “The above mentioned job opportunities have only the value of examples; as within the company the selection program is constantly carried out, it weekly brings new specialists ready to sustain the company development, proving themselves a highly skilled workforce.”

“The Company assists each employee in acquiring the individual career goals, as it is focused on attracting, developing, motivating and retaining excellent employees who meet our selection criteria”, Stelian Grasu continued.

The Human Resources Executive Officer also added: “GSP’s goal is to continue attracting valuable, ambitious, and highly motivated personnel. The Company is committed to develop and strengthen the core competencies from which sustainable competitive advantages emerge. GSP favors blending knowledge, experience and ambitious individual career goals in a constant pursuit for excellence. GSP offers all the job seekers the opportunity to work in within a company with an excellent reputation as well as the privilege of interacting in a motivating work climate, together with the long-term commitment. The Company ensures a friendly and stimulating environment as well as challenging jobs. We’ll remain devoted to our goal of developing a strong professional culture, as well as we are determined to never abdicate developing and enforcing a code of conduct by prescribing clear policies, procedures, professionalism. GSP will continue its pursuit for professional excellence, sustained by its long term partnership with employees and by highly competitive salaries.”

Breaking the limit www.gspdrilling.com

32

HSEQ CULTURE, AWARDS AND MILESTONES IN 2009 2009 approaches its end with excellent HSEQ results.

The department’s core activities are: øsafety case assessment øverification øinspection øinvestigation øenforcement øproduce guidance øtake part in research øhelp to produce standards øactively engage with Stakeholder groups Constantin Gheorghe, the HSEQ Executive Officer and the company DPA declared: „The critical areas of performance where we consider there’s still room for improvement in our both offshore and onshore activities are health and safety. We have developed supporting guidance to facilitate delivery of objectives in these areas.

The priority areas are: øLeadership øAsset integrity øCompetence øSafety culture

We are committed to increase the role of effective HSEQ management in such a way as to lead to major understanding of accident risks and their control. We also would like to meet another goal, to ensure our assets integrity and exploitation meet the performance designed standards for more effective risk control.“ The HSEQ manager continued: „The very high level of activity worldwide of the oil/gas industry places great strains on companies that already have to cope with an ageing offshore industry population.

Challenges include: high competition for the trained workforce resource and the introduction of a new, younger generation to the offshore industry. It is in our intention to see effective competence assurance and real time management of competent workforce. We’ll partly realize this objective by inspecting and auditing more frequently the offshore drilling rigs, by carefully monitoring the professional performance and the maintenance activities. Our analyses have led to creating a new supervising position, that of flying superintendent. The role

Breaking the limit www.gspdrilling.com

33

the senior experienced professionals in this position are assuming is that of keeping track of the crews’ performance onboard.“ „As the safety culture remains at the heart of effective management risks offshore, the company takes pride in the development of work safety culture issues, in the empowerment of the personnel and the measures they feel free to apply in order to keep LTI free work environment. The „NO BLAME“ policy the company enforced, the safety procedures have led recently to excellent results, and these changes were perceived as a strengthening of the safety culture not only within our company but they were also highly appreciated by the company clients such as Petrom OMV and Turkish Petroleum.“ We enjoy seeing individual and corporate culture developing in the increase safety direction. We just want to ensure the right things are done at the right time, all the time. The company and individuals must try to do the right thing.

We received lately significant messages that the changes have been made in this respect and the personnel is more and more involved in improving health and safety“, Constantin Gheorghe concluded.

A positive work culture is essential for the wellbeing and the performance at work. Culture is the context for behavior in communities and is made up of

The „NO BLAME“ policy the company enforced, the safety procedures have led recently to excellent results, and these changes were perceived as a strengthening of the safety culture not only within our company but they were also highly appreciated by the company clients such as Petrom OMV and Turkish Petroleum. (amongst other characteristics) values, rules, routines, structures, and norms.

These are the foundations of culture.

In addition, the signals we pick up from people may include atmosphere, dress, symbols of various kinds, even the time of day. They inform the way we are expected to behave, effectively exposing the culture for all to see. These are the displays of culture. Our company clearly stated which are the performance and safety expectations by enforcing company policies and action instruments through procedures and work instructions the HSEQ department continuously improve together with the operational departments.

Breaking the limit www.gspdrilling.com

GSP Jupiter. Florin Vodita awarded the Man of the Week title for using the Stop Work procedure.

34

These are the displays of culture. Our company clearly stated which are the performance and safety expectations by enforcing company policies and action instruments through procedures and work instructions the HSEQ department continuously improve together with the operational departments.

And the results do not wait long before appearing.

And the results do not wait long before appearing. There were a series of such results our contractual partners highly appreciated. GSP registered the rapid advancement from the rules’ enforcement to their opened and rational internalization. An important role is played by the significance of the personal choice, of the personal values one carries and shares within the team. The results we’ll further cite are the proof of a strong psychological contract the employee concluded with the HSEQ goals, as well as the commitment and trust in the company. HSEQ continuously stressed the processes that build commitment, for example job security, performance appraisal, job challenges, and training.

In addition, openness and team working have lead to commitment.

man of the week as he used the Stop Work policy in order to avoid a possibly high risk work situation. He reminded through his action that the stop work card can be life saving. Mr. Vodita signaled a potential hazardous situation when noticing wrong slinging of tubulars onboard the supply vessel, ready to be loaded onboard the rig. The offloading operations have ceased immediately and the rig Barge Engineer informed. After assessing the situation, the operation was considered too risky and so the vessel has been sent ashore for allowing the people to correct the tubular slinging.

100.000 WORKHOURS LTI (LOST TIME INJURY) FREE AT THE OFFSHORE FABRICATION FACILITY IN AGIGEA: As the participants have declared at the celebration of 100.000 workhours LTI free milestone in GSP Shipyard, „safety is the common language the offshore construction department speaks“. The next goal is to register the 200.000 workhours LTi free. The key performance indicators leading to the result are as they follow: ø122 safety observations; ø15 HSE weekly meetings; ø14 client weekly inspections; ø216 onsite HSE inductions; ø492 pre-shift daily meetings & toolbox talks; ø8 varied trainings, fire alarms, boom lift; ø12 management visits.

STOP WORK PROCEDURE APPLIED BY A GSP’S CRANE OPERATOR HIGHLY APPRECIATED BY THE CONTRACTUAL PARTNER, PETROM: The Petrom representatives highly appreciated and awarded the onboard personnel applying the stop work procedure when it was necessary. The crane operator Vodita Florin became the

Breaking the limit www.gspdrilling.com