Dj Inspection Services

COMPANY PROFILE

July 2012 Update v0.1

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INTRODUCTION
company overview & mission statement

OVERVIEW
Dj Inspection Services offers clients a variety of services relating to the oilfield industry. Such services include the full range of inspection, maintenance, hardbanding, lifting services and pipe management services in order for the client to protect their investments. Third party services, such as mill surveillance is also offered to ensure that the tubular manufacturers are in compliance with API and customer specifications during its manufacturing process.

HISTORY
Dj Inspection Services began its operation in Houston, Texas in 1972. In May of 1992, Dj Inspection began its international presence in Singapore and since has quickly expanded its presence in the worldwide market: Argentina, Kazakhstan, Kuwait, Malaysia, Singapore, Thailand. As well, together with our affiliate company Atlantic Mediterranean Oilfield Services Company (AMOSCO) with operations throughout Africa, we are able to offer clients services in a wider range of locations: Angola, Cameroon, Chad, Congo, Gabon, Ivory Coast, Mauritania, Nigeria, Senegal. Nearly 20 years later, Djs customer list has expanded to include many companies around the globe, which only to a name a few, include: Chevron, BHP, COR, Diamond Offshore, Ensco, Exxon (Esso/EPMI), Halliburton, Kuwait Drilling, Murphy Oil, Petroleum Development of Oman (PDO/Shell), Petronas Carigali, PTT Exploration & Production, Schlumberger, Seadrill, Texaco (Joint Operations Kuwait), TOTAL, Transocean/Sedco Forex, Weatherford, YPF.

MISSION STATEMENT
MISSION To provide a full range of quality products and services to the oil industry at customer and remote drilling locations. VISION To continue to grow and lead the oil industry in customer service, on-time performance and efficient operation while providing new products and services that will benefit the industry in reducing their operational costs relating to failures concerning OCTGs and Lifting Equipment. OBJECTIVES In accomplishing our goals, we will, in all that we do, pursue all avenues to further increase and maintain the quality of the organization through the highest of ethical standards, personal integrity and matters concerning health, safety and the environment.

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COMPANY POLICIES
quality & H.S.E

QUALITY POLICY
"ALL PRODUCTS AND SERVICES PROVIDED BY THE COMPANY SHALL CONFORM TO THE STRINGENT CUSTOMER REQUIREMENTS" SENIOR MANAGEMENT SHALL ENSURE THAT THIS POLICY: * IS APPROPRIATE TO THE PURPOSE OF THE ORGANIZATION * INCLUDES A COMMITMENT TO MEETING REQUIREMENTS AND TO CONTINUAL IMPROVEMENT * PROVIDES A FRAME WORK FOR ESTABLISHING AND REVIEWING QUALITY OBJECTIVES * IS UNDERSTOOD, IMPLEMENTED AND MAINTAINED AT ALL LEVELS OF THE ORGANIZATION * IS REVIEWED AND APPROVED FOR CONTINUING SUITABILITY * COMMITMENT WITH THE CORPORATE HEALTH, SAFETY AND ENVIRONMENT POLICY

H.S.E. POLICY
The Company will conduct its activities so as to take foremost account of the health and safety of its staff and clients employees and other persons, who may be affected. Protect the environment, prevent pollution, seek methods for the use of environment friendly products and ensure the safe operation of all plant and equipment. The Company and all employees will comply fully with the laws and statutes of the countries and in those areas specific to the Oil and Gas Industry. Apply more stringent standards and procedures where appropriate. The Company will pursue this policy through Company strategies and action plans. Visible management commitment and through individual contributions of all staff supported by Education and Training. Health, Safety and Environmental protection form an integral part of the Companys Objectives. Managing H.S.E. and ensuring all accidents are prevented is a large responsibility, which can only be done with the assistance of all employees and contractors involved with the Companys operations.

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TUBING / CASING
inspection & maintenance services
** please note that the services mentioned herein may not be available at all locations ** A thorough visual inspection of possible noticeable external damages inflicted on the pipe is performed; most damages encountered arise from handling of the pipe, such as dents and mashes. Other types of flags will be external corrosion, laps, and straightness. Both pin and box ends are thoroughly cleaned and visually evaluated for any damages, such as dents, corrosion, galled threads, etc. A drift, cut to strict API specifications, is passed through the full-length bore of each length of pipe in order to check for mashed or dented areas along the body. If an area has been located, the location of the defect will be noted on the pipe as well as on the inspection report. Wire Brushing, High Pressure Water Blasting or Rattling to remove rust, scale and other debris. A thin rust preventative coating is applied internally or externally to maintain the integrity of the pipe; customer to specify coating. By using a special portable device with calibration blocks, our technicians are able to go on location, test, compare the grade of pipe with standard API tubular goods. Using a specialized Electromagnetic unit, detection of transverse or 3dimensional defects can be located. Some locations are equipped with 4-function EMI units to detect longitudinal defects + wall loss in addition to the aforementioned. Wall thickness is then verified by taking ultrasonic readings to prove-up areas in question. Using various API gauges, such as thread taper, lead and depth, we are able to measure the connection in order to verify it is within API tolerances. Utilizing a Capacitive Discharge Unit, the tubulars full body is magnetized; longitudinal defects are identified by using dry iron powder sprinkled over the entire external surface of the pipe. This service is offered for the complete management of the customers pipe yard(s) which includes inventory control, monitoring incoming and outgoing material, and regular inspection / maintenance of the tubulars (tubing, casing, pup joints, etc).

Visual Body Inspection

Visual Thread Inspection

API Drifting (Full-Length)

Cleaning (Internal / External) Coating (Internal / External) Hardness Testing

Electromagnetic Inspection (EMI)

Ultrasonic Wall Thickness (UT) API Thread Gauging Full-Length MPI

Pipe Yard Management

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DRILL STRING / BHA

inspection & maintenance services - Part 1 of 2
** please note that the services mentioned herein may not be available at all locations ** A thorough visual inspection of possible noticeable external damages inflicted on the pipe is performed; most damages encountered arise from Visual Body Inspection handling of the tools, such as dents and mashes. Other types of flags will be external corrosion, laps, and straightness. Both pin and box ends are thoroughly cleaned and visually evaluated for any Visual Thread Inspection damages, such as dents, corrosion, galled threads, etc. Using a handheld mechanical device, we are able to verify that the diameter Drill Pipe OD Gauging of the drill pipe body (full-length) is within API tolerances. Wire Brushing, High Pressure Water Blasting or Rattling to remove rust, scale Cleaning (Internal / External) and other debris. A thin rust preventative coating is applied internally or externally to maintain Coating (External) the integrity of the pipe; customer to specify coating. Using a specialized Electromagnetic unit, detection of transverse or 3dimensional defects can be located. Some locations are equipped with Electromagnetic Inspection (EMI) 4-function EMI units to detect longitudinal defects + wall loss in addition to the aforementioned. Wall thickness is then verified by taking ultrasonic readings to prove-up Ultrasonic Wall Thickness (UT) areas in question. Seals found to be damaged or corroded are refaced to within the limitation Refacing of API RP- 7G. Drill String and Bottom Hole Assembly inspections are normally carried out in accordance to one of the following standards: American Petroleum Institute (API) - RP 7G-2, Spec 7-1, Spec 7-2 TH Hill & Associates - DS-1 Fearnley Proctor - NS1 & NS2 Customer Specifications

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DRILL STRING / BHA

inspection & maintenance services - Part 2 of 2
** please note that the services mentioned herein may not be available at all locations ** In order to protect the clients drill pipe tool joints and center wear pads from excessive wear while drilling in abrasive environments, hardbanding is applied in 1 inch bands around the circumference of the tool joints and center wear pads. Various mesh sizes of tungsten can be applied with the band.

Hardbanding

As an alternative to tungsten, we can also apply chromium-based materials such as Arnco, Duraband, and Dj Cr.2000. This type of product application reduces casing wear while protecting the tool joint of the drill pipe. Controlled automatic welding procedures are used to build-up the outside diameter of worn tool joints to their original size. Instead of scrapping drill pipe whose tool joint ODs are below API specification, applying the same Build-Up concept as hardbanding is able to literally reconstruct the OD of your tool joints back to specification, thus salvaging the premium pipe body and saving the client thousands of dollars. Straightening Bent pipe is straightened using a ram-type, hydraulic press. A shear wave ultrasonic inspection is performed on the upsets and friction UT End Area welded areas of the drill pipe; this service is performed in order to locate fatigue cracks. Mill slotting is performed by cutting a shallow, round or elongated slot into the body or tool joints of drill stem components. In order to cut into and along the pipe, a drill specifically designed for this use is utilized. Like the device used for hardness testing, the size and weight of the slotted machine Mill Slotting allows our operators to go on-site and perform the job at the clients location. Due to the nature of this service, client specifications are to be followed providing that it does not force the material to fall out of API specifications. Either Manual or Semi-Automated equipment is used to locate hot spots on non-magnetic material. Hot spots are located, material is cleaned in order Hot Spot Checking for the non-magnetic material to conform to the customers specifications. High pressure testing is performed on Iron to ensure the material can High Pressure withstand the rated pressures. Testing can be performed at the customers location and third party can also be performed for customers that have their Hydrostatic Testing own testing facilities. Drill String and Bottom Hole Assembly inspections are normally carried out in accordance to one of the following standards: American Petroleum Institute (API) - RP 7G-2, Spec 7-1, Spec 7-2 TH Hill & Associates - DS-1 Fearnley Proctor - NS1 & NS2 Customer Specifications

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MISC SERVICES
various other services offered
** please note that the services mentioned herein may not be available at all locations ** The Wavescan service employs equipment that utilizes an alternative ultrasonic method called Guided Wave Ultrasonics. This service is typically used to carry out inspection on pipelines that span many miles/kilometers, with the main advantage over the External MFL technique/method, that it can be used to inspect buried (underground) sections of the pipelines. This service utilizes equipment that is operated manually and is used in areas hard to reach like on manifold and in-plant piping. Proving up of defects, though, is typically performed with a typical UT flaw-detection unit. Sizes normally range from 6" to 12" and in cases, all the way up to 46 in diameter. We will monitor and ensure that the pipe mill is conforming to API and/or customer specifications during the manufacturing process of the clients order. We will ensure that the machine shop is in compliance with threading specifications required by API, TH Hill, etc. and the customer. We will ensure that when a customers material is manufactured, tested or transported, that such items conform to the specifications and scope outlined by the customer. Damage or non-compliance would be reported.

WaveScan Inspection (Guided Wave Ultrasonics)

ActiveScan Inspection (External MFL - Handheld)

Mill Surveillance

Threading Surveillance

Witness Inspection

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LIFTING / PROOF-LOAD TESTING

proof-load testing on lifting gear
Safe operating practices call for care and vigilance when operating heavy lift and pulling equipment. Cranes, hoists, slings and shackles all require regular inspection and certification to ensure the equipment in use meets the minimum requirement and standards for the industry. Personnel who operate the equipment also need proper training to ensure they understand the importance of safe operating practices. We can inspect and certify your various lifting equipment fit for use in accordance to British, API or other International Standards.

- ASCEND Lifting Gear Management Software Using ASCEND software, we are able to offer a comprehensive platform for the reporting of Certification activities and the presentation of subsequent reports and data for our clients in digital form - all within a powerful database structure. Please contact us for more information on ASCEND and how we can help you manage the certification and re- certification of your lifting gear.

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EDDY CURRENT INSPECTION

inspection of rig structures using this alternative method
Until recently, inspection companies relied on conventional MPI for inspecting welds on rig mast, substructures and the like. This type of inspection requires the inspection company or the drilling contractor to sand/grit blast the surface prior to inspection. Drilling contractors again have the tedious task of getting that repainted. More and more drilling contractors are now opting for eddy current inspections mainly due to the time and cost saved using eddy current inspections.

METHOD COMPARISON TABLE EDDY CURRENT CONVENTIONAL MPI

No Surface Preparation required No consumables required May be used by rope access technicians Reduces rig downtime during maintenance Surface preparation required Consumables required such as white contrast paint, black ink, etc. Extremely difficult as the technician needs to hold both the yoke in one and aerosol can in his other hand. More rig down time during maintenance

Original paint on drilling structures once removed cannot be brought back to the original quality from field. Eddy Paint needs to be removed to carry out inspections current saves this valuable paint from being removed. Time saved on sand/grit blasting and multi-layer repaint- Extra time spent on arranging sand/grit blasting, cleaning ing and multi-layer repainting. Extra expenses on arranging sand/grit blasting, cleaning Cost saved on sand/grit blasting and repainting and repainting. Would not be possible without sufficient and suitable Able to carry out inspections during night time as well lighting. PC connectivity Not applicable Internal data storage Not applicable

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HARDBANDING
drill pipe & hevi-wate protection
Hardbanding is a process of applying a filler metal by arc welding onto the tool joint to prolong its life and as well as to minimize casing wear.

TUNGSTEN CARBIDE Conventional hardbanding materials are comprised of tungsten carbide granules in a mild steel matrix. This application is the best method available to save the tool joint. The disadvantage of tungsten is that it tends to cut the casing; this can be minimized by applying an additional mild steel overlay on top of the tungsten bands. For openhole applications or where casing wear is not a concern - tungsten hardbanding is the most economical and by far best method of protection.

CHROME-BASED & OTHER ALLOYS For those applications where tool joint and casing wear are both a concern, other alloys have been developed, such as Arnco 100XT, 300XT, Duraband, and Djs Cr.2000, that offers an acceptable balance between the wear factors. Because of the unique aspects of this type of product, the price is typically higher due to the complex chemical compositions of the wires over tungsten and as well in a flux-cored format.

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MFL FLOWLINE INSPECTION

Techscope MFL external flowline inspection - Part 1 of 2

Utilizing state-of-the-art electromagnetic induction (EMI) data processing, 100% tube coverage is obtained with use of hall effect sensors that are housed in the inspection head. The system is designed to detect transverse and 3-dimensional flaws, internal/external corrosion, pitting, mechanical damage, wall loss, erosion as well as other anomalies. simplified inspection of external flowlines robust & built to last through tough environments intrinsically safe for no hazard on live-lines short set-up time before inspection calibration in order to maintain accuracy easily portable quick and accurate results easy to read reports prove-ups using third party tool

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MFL FLOWLINE INSPECTION

Techscope MFL external flowline inspection - Part 2 of 2
CONSOLE The electronics are housed in a stainless steel operators console. A thermal chart recording system and/or computer is used to monitor data transmitted by the inspection head during inspection. Three channels of data are processed during inspection: raw data, enhanced flaw detection and continuous wall detection. All the components are solid-state and built for the rigors of desert and rough terrain. CALIBRATION The Techscope system, unlike a smart pig, is calibrated at the beginning of each work day and periodically during the day on a calibration standard with known manufactured defects such as pin holes, notches and internal/external wall loss to assure and re-assure proper function of the system at all times. COMPUTERIZATION With the use of a standard port cable, data can then be transmitted from the inspection console to a laptop computer. Special software allows the operator to view, zoom and print all inspection data in color. This data can also be instantly recalled and viewed easily. A distance meter attached to the inspection head also allows the operator to monitor the distance of each inspected section; this data is also saved along with the inspection results of that section. Using a customized spreadsheet, inspection data can be entered easily during inspection. This can be customized to suit the clients requirements. TRANSPORTATION The Techscope unit can be easily transported in rugged terrain. The unit and its accessories would be transported in standard 4 x 4 trucks, which allows the inspection crew to move themselves and the equipment in a safe and comfortable manner during the execution of the inspection.

INSPECTION HEAD Two powerful DC variable-speed motors drive the inspection head down the flowline and will climb most grades without assistance. Constant speed can be maintained through 2 drive rollers and 1 idler roller that pushes up from the bottom to ensure positive grip for the top drive rollers. This inspection head is lightweight and made of aluminum construction. Housed in the head are independent sensors for flaw detection; the sensor placement and suspension striker assembly provide for uniform coverage and are designed to ride over the entire circumference of the tube including butt welds with up to 0.250 displacement. Uniformly spaced hall effect sensors are oriented to measure both permeability changes as well as total mass deviations (wall loss). The target sensitivity resolution on the wall system is five percent (5%) of the tubes nominal wall thickness. The target sensitivity resolution on the flaw system for transversely orientated imperfections and defects is for the detection of a five percent (5%) depth notch of the tubes nominal wall thickness. The same defects and imperfections can be re-inspected time after time and the inspection sensors have proved to give reliable repeatable signal detection during inspection rerun. DRIVE FRAME The drive frame is equipped with a solid-state DC power supply and dual hi-torque drive motors in order to combat the irregular surfaces on the outside diameter of the pipe. It is lightweight and requires little effort in moving the frame from one section of a flowline to another. The frame is fitted with an encoder which allows for distance tracking on the lines that are to be inspected. MAGNETIZING APPARATUS The magnetizing apparatus comes with a constant current digital-controlled power supply that is monitored by the operator in order to generate a continuous magnetic field. Cable is wrapped onto a heavy-duty non-conductive / non-arcing coil frame in order to assure safety to the

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INDUSTRIAL ROPE-ACCESS
inspection in suspension
Industrial Rope Access is a proven method of achieving a safe work position at height or in areas of difficult to get access. It was initially developed from techniques used in caving to answer the need for a simple, safe and adaptable means of access with its first large scale use being for inspections on the oil and gas platforms of the North Sea. As its value as a work solution grew rope access has also developed onshore where it is to be seen undertaking all manner of work from high-rise window and facade cleaning and general maintenance to repair. Rope access is performed using two (2) ropes: a working rope and a backup/safety rope; each rope has is attached to independent anchorage point. In the unlikely event of the working rope becoming damaged or unusable, the backup/safety rope prevents a fall. To prevent accidental dropping of tools of a suitable weight, they are attached to the technician at all times; heavier items are independently suspended. A minimum of two (2) technicians are required for any job in order to have mutual surveillance during the job, which is an extra safety precaution. All IRATA (Industrial Rope Acess Trade Association) technicians receive extensive training and an independent assessment and are required to undergo training every three (3) years.

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INDUSTRIAL COATING
** currently provided in SINGAPORE only **
Specialized baked-on coatings for corrosion control on manufactured subsea welhead components. The application is used for lubricity on studs, nuts & bolts for land & subsea use. We offer Parkerizing & Phosphating anti-gall treatment for various components, such as Annular BOPs up to 29.1/2 size. We offer external blasting & anti corrosion coatings for various items for subsea use, such as riser connections, etc.

Types of coatings presently applied (powders or liquids): Xylan - (Whitford) All series Teflon (Dupont) Epoxy Phenolic Polyurethane

The other services we offer are: Grit Blasting - for pipe OD and ID Pressure Water Blast Cleaning Phosphating Mechanical Cleaning of pipe from 2.3/8 OD to 20 OD up to 40 ft lengths Applications of rust preventative materials for storage purposes

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INTERNAL PIPE COATING

** currently provided in SINGAPORE only **
Specialized baked-on coatings for corrosion control on Drill Pipe, Hevi-Wate Drill Pipe, Drill Collars, Production Tubing, Casing, and surface Flowlines. We have coatings to cover most applications found in todays oilfield environment.

Types of coatings presently applied (powders or liquids): Xylan - (Whitford) All series Teflon (Dupont) Epoxy Phenolic Polyurethane

Services to compliment coating application are: Grit Blasting - for pipe OD and ID High-Pressure Waterblast Cleaning Phosphating Mechanical Cleaning of pipe from 2.3/8 OD to 20 OD - up to 40 ft. lengths Applications of rust preventative materials for storage purposes

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PRO-KC Sucker Rod Connection

premium sucker rod connection and make-up system
Dj introduces a revolutionary innovation in sucker rod connection design. This connection has undergone extensive laboratory and field-testing and finite element analysis. The PRO/KC Connection System outperformed standard API connections by 250% in tension and torque tests. In fatigue testing, the PRO/KC System lasted an average of 6 times more cycles than API connections under the same cyclic load conditions. Pictured to the right is a cut-out comparison view of a standard API connection and the PRO/KC connection. Pins and couplings are machined to a precise length and made up to a center torque button with the patented PRO/KC make-up unit. Pre-load is confirmed by measuring actual pin stretch with a linear displacement gage; this provides a connection with equal contact pressure on both pin shoulders, equal pre-load stretch of both pin necks and equal contact pressure of both pin noses against the center torque button, creating a pre-load stretch at the coupling center. This effectively doubles the contact surface and friction area to carry additional loads and resist back-out. This design provides the strongest, most stable and solid sucker rod connection available in tension, torsion, bending and fatigue. Couplings are machined to achieve an end-face width as large as possible for maximum pin shoulder contact area. Pins are machined so that all pin ends have exactly the same dimension from the shoulder to the pin end and the shoulder and pin nose are exactly true relative to each other. Pin ends also receive wet fluorescent magnetic particle inspection and are shot-peened to improve micro-finish and enhance fatigue resistance. The torque buttons are locked into place so the connections always break on the same side during work over. Couplings are machined to achieve an end-face width as large as possible for maximum pin shoulder contact area. Pins are machined so that all pin ends have exactly the same dimension from the shoulder to the pin end and the shoulder and pin nose are exactly true relative to each other. Pin ends also receive wet fluorescent magnetic particle inspection and are shot-peened to improve micro-finish and enhance fatigue resistance. The torque buttons are locked into place so the connections always break on the same side during work over. This connection can be applied to all new or inspected used rod strings, API or non-API sizes. Tension/torsion testing was performed at CFER labs in Edmonton Alberta, Canada using 20,000 lb. tension and torque to failure. The PRO/KC connection averaged 250% more torque to failure than API samples of the same size and material specs. Extensive fatigue testing was performed at Southwest Research Institute in San Antonio, Texas on 1.0 inch PRO/KC connections and API 1.0 inch connections using loads of 69,500 lb. tension and 7,800 lb. compression at 10 cycles per second. The PRO/KC connection averaged 600% more cycles to failure than API connections. The PRO/KC was field tested by a major oil company on a 3,900 foot well in eastern New Mexico with a progressive cavity pump installed. Prior to PRO/KC installation, this well had been pulled 15 times in a 38 month period with multiple rod string failures. Once installed, the PRO/KC string performed flawlessly for 13 months enduring 5 separate failure events, 2 of which resulted in failure of surface components and 3 were down-hole. The top drive hex shaft failed; the polish rod thread sheared; the top drive belts burned off; the polish rod coupling split. These failures were related to pump rotor seizure which results in tremendous forces being applied to the rod string during which no PRO/KC connections failed. The fact that the PRO/KC System was able to withstand this brutal punishment is a testament to its robustness. Contact Permian Rod Operations for more information and arrange for a trial string for your toughest well. Preventing work-overs due to premature connection failures will pay substantial dividends with less downtime and lost production.

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WORLDWIDE OFFICES
offices & locations

Please note that all services offered by Dj may not be available in every area; therefore, we encourage you to please contact your nearest Dj office in order to find out more information on the services that particular operation can provide. - SINGAPORE Dj Industrial Coating & Services Pte Ltd 26 Benoi Road Singapore 629898 Tel: (65) 6-898-2253 Fax: (65) 6-898-5009 www.djcoatings.com - THAILAND (Songhkla & Sattahip) Dj Oilfield Services (Thailand) Ltd. 239/17 Moo 1 Tambon Satingmor Amphur Singhanakorn Songhkla 90280 Thailand Tel: (66+74) 481-507 Fax: (66+74) 481-510 - MALAYSIA (Kemaman - Kemaman Supply Base) Dj Inspection Services (M) Sdn Bhd Open Yard, Lot No: OY-01-02 Kemaman Supply Base, Phase 1 24007 Kemaman, Terennganu Malaysia Tel: (60+9) 863-1084 / 1230 Fax: (60+9) 863-1211 (Labuan - Asian Supply Base) Dj Inspection Services (M) Sdn Bhd Lot H12, Asian Supply Base 36 Acres Yard (Ranggu Yard) Off Jalan Ranca-Ranca Darat 87008 Labuan F.T. Malaysia Tel: (087) 420-081 Fax: (087) 420-082 - KAZAKHSTAN Dj Global Inspection Services Micro District 26, Bldg. 29, Office 6 130000 Aktau, Mangistau Region Republic of Kazakhstan Tel: (7+7292) 413-388 Tel/Fax: (7+7292) 401-895 - KUWAIT Dj Inspection Services Middle East S.A. c/o Raith Engineering & Mfg. Co. W.L.L. P.O. 22223, Safat 13083 Kuwait Tel: (965) 241-5522 Fax: (965) 244-5788 - SOUTH AMERICA Dj Inspection Services Latina S.A. Viamonte 1646, Piso 7, Depto 24 1055 - Capital Federal Buenos Aires Argentina Tel: (54+114) 373-8625 Fax: (54+114) 373-9982 www.djinspection.com

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