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Section 3: PPI Recommendation Summary and Discrepancies
Ad _ Marine IV Job # 129 Dates of Assessment
Dec. 1st to Dec. 4th 2013
Prepared for GUPCO

DRILLING CONTRACTOR : ADES

Purpose:
During the assessment process, various comments and recommendations aimed towards improving safety and increasing equipment reliability. In conformance with API and ISO standards, PPI-WEST follows up on these recommendations to ensure their satisfactory resolution. To expedite this
process, PPI maintains this living document that is updated during each assessment. This allows PPI to effectively manage the recommendations so the same issues are not repeated once a satisfactory resolution is in place. Any time the status changes or comments are added, the results should be
forwarded to PPI so the master file can be updated. The definitions used for each recommendation priority level are as follows:

Priority I: Critical items that have a significant risk of failure, well control event and/or personnel injury, and must be corrected immediately. Customer will be notified of any Priority I issues by the surveyors technical supervisor

Priority II: Major items that have a significant risk of causing downtime or lowering safety and should be completed within 14 days. In many cases, these items are critical to long-term equipment reliability.

Priority III: Minor items that relate primarily to regulations, rig management, quality assurance issues and good oilfield practice. As these issues are unrelated to existing equipment condition, they have a low level of risk. These should be completed as soon as time permits.

Reference Date

Item No Priority
Surveyor Estimated
Recommendation Job # Daily Report Comments/Status Opened Closed
Completion
Initials

1 I Equipment repairs and maintenance history are not available 129 NT 03/12/13

The Crew training and certification requirements to be met and

recommended Crew Competency Verification Audit to follow the
No records of actual MODU Crew Training & Certifications Matrix; the majority of
Rig Acceptation audit to assess the crew competency operating
2 I the crew lack required Minimum MODU training, experience and certifications and 129 NT 03/12/13
the MODIU safely and efficiently. All MODU personnel have
some with expired certifications.
received the following training; a) Survival at sea, b) Basic first
aid., c) Basic fire fighting.

The OIM (senior person on the MODU) shall have at least four
years in a supervisory position on a similar type of MODU and at
least six months on board the specific MODU. The OIM has
3 I OIM missing required training and certifications 129 NT 03/12/13
completed the following additional training:
1) - Basic and advanced stability. 2) - Advanced fire fighting.

4 Barge Engineer lacks training, certification and experience 129 NT To be rectified 03/12/13

5 I No records of defined at least two Fire Teams 129 NT To be rectified 03/12/13

6 I No records of assigned TEMPSC Crew 129 NT To be rectified 03/12/13

7 I No records of the annual Flag State inspection and Document of Compliance 129 NT To be rectified 03/12/13

8 I Have emergency tow bridle available and permanently installed. 129 NT To be rectified 03/12/13

Recommendation Summary and Disposition Customer Gupco 1/5 Rig/ PPI Job # 129
 Reference Date

Item No Priority
Surveyor Estimated
Recommendation Job # Daily Report Comments/Status Opened Closed
Completion
Initials

API recommends a detailed visual inspection by a qualified person

9 I No records of last Category III inspection of derrick/mast and substructure. 129 NT every two years. Example inspection forms may be found in the 03/12/13
API RP 4G appendices

10 I At least half of total lifebuoys should have self igniting lights. 129 NT * MODU 10.12.2 03/12/13

No certification records of all the lifting equipment installed

11 I in the derrick (Derrick Register). 129 NT To be rectified 03/12/13

Rig to reinstate the two booster fire pumps in mechanics workshop to enable the
12 I 129 NT To be rectified 01/12/13
fire main to be pressurized to working pressure.

13 I Rig needs to address zero discharge system 129 NT To be rectified 03/12/13

14 I Cranes need to be fitted with upgrade kit to comply with man riding. 129 NT To be rectified 03/12/13

Verify that the emergency generator starts automatically and

15 I Need to convert #5 engine to auto start as it is used for emergency generator. 129 AP/NT 02/12/13
comes online within 45 seconds.

No records crane lift slings are third party certified annually, stamped with SWL,
16 I 129 AP API RP 54 9.6.9 01/12/13
length, manufacturer name, are in good condition, and are color coded.

17 I Transformers; Some broken and need replaced at various locations 129 AP To be rectified 01/12/13

Mast/Derrick must have permanent nameplate indicating Name of

manufacturer., Model number and serial number., Rating including
Derrick and mast missing permanent nameplate static hook load capacity with number of
18 I attached to the structure indicating the following: 129 AP lines. 01/12/13
*API RP 4G 9.2.1
*API RP 54 9.2.2

None inspected equipment/ tools due ongoing rig operations during the audit to be
19 I 129 AP/NT Recommended 04/12/13
thoroughly inspected both static, dynamic and critical spare parts

Substructure must has a permanent nameplate attached indicating

Substructure missing permanent nameplate
the following:
20 I attached to the structure indicating the following: 129 AP 01/12/13
Name of manufacturer. Model number and serial number., Model
number and serial number. *API RP 4G 9.2.2

21 I Cranes (Marine Pedestal and Other) no certifications records 129 AP To be rectified 01/12/13

22 I Emergency lights to be checked as part of the blackout autos tart of engine. 129 AP/NT To be rectified 02/12/13

23 I Rebuild or replace main engine #1. 129 AP/NT Awaiting major parts for complete rebuild main engine #1 03/12/13

24 I Derrick mast needs a 5 yearly third party inspection. 129 AP/NT To be rectified 03/12/13

25 I Fire water curtain system is not deployed 129 AP/NT To be rectified 03/12/13

26 I Crown and travelling block to have 5 yearly overhaul. 129 AP/NT To be rectified 03/12/13

27 I TDS need 5 yearly inspection by NOV. 129 AP/NT To be rectified 03/12/13

28 I Modu Missing Rig Equipment List Forklift 129 AP/NT To be rectified 03/12/13

Recommendation Summary and Disposition Customer Gupco 2/5 Rig/ PPI Job # 129
 Reference Date

Item No Priority
Surveyor Estimated
Recommendation Job # Daily Report Comments/Status Opened Closed
Completion
Initials

29 I No Drill string onboard MODU 129 AP To be rectified 01/12/13

30 I No Crown-o-matic maintenance records 129 AP To be rectified 01/12/13

31 I Carry out full current injection test on all breakers and overload relays. 129 AP To be rectified 01/12/13

32 I Carry out Thermpographic survey on all bus bars and breakers. 129 AP To be rectified 01/12/13

33 I All lifting gear under rig floor due for six monthly inspection 129 a To be rectified 03/12/13

Rig alarm has to be manually set off by radio operator after fire panel has been
34 I 129 AP To be rectified 02/12/13
activated due to an I/O module failure.

35 I Transformers; Some broken and need replaced at various locations 129 AP To be rectified 03/12/13

Verify all components in the load path have been NDE within the past six (6)
36 I 129 AP API RP 7L 4.1.3, 4.1.4 & 4.2 03/12/13
months.

37 I Compressor for breathing device 129 AP New filters/cartridges on order 03/12/13

*API RP 53, 3rd Edition, Sections 12.3.6, 12.5.3.g and 17.3.6;

API RP 64,
Calibration of gauges and chart recorders should be current and each gauge and
2nd Edition, Section 9.1.5; API Spec 16C, 1st Edition, Section
38 I recorder tagged. This applies to gauges and recorders used for testing the BOP 129 AP 03/12/13
6.1.2; API Spec
stack, BOP and diverter control system and choke and kill manifold.
16A, 3rd Edition, Section

39 II Repair leakages on all the engines. 129 NT To be rectified 03/12/13

Rig to consider changing Engine cooling system to radiator cooling system to

40 II 129 NT To be rectified 03/12/13
eliminate overheating problems

API recommends a detailed visual inspection by a qualified person

41 II No records of last Category III inspection of derrick/mast and substructure. 129 NT every two years. Example inspection forms may be found in the 03/12/13
API RP 4G appendices

No annual records of cranes been inspected and certified by a qualified third party
42 II inspector. test documentation is onboard and current including but not limited to 129 NT *API RP 2D 4.2 03/12/13
crane load test and wire rope certification

Weatherford rental BOPs data package missing Wesco maintenance and testing
43 II 129 NT To be rectified 03/12/13
facilities OEM Authorization

44 II MODU missing Rig Equipment List EZY Torque 129 NT To be rectified 03/12/13

45 II No Derrick wind walls 129 NT To be rectified 03/12/13

46 II No Centrifuges NDT records available 129 NT To be rectified 03/12/13

47 II Hoists sight glass and temp gauge broken 129 NT To be rectified 03/12/13

48 II Butterfly Valves 129 NT No NDT records 03/12/13

49 II Drawworks System Various cover bolts/nuts missing, 129 NT To be rectified 03/12/13

50 II Commence change out of slew ring bolts on both cranes. 20% per year. 129 NT To be rectified 02/12/13

51 II Mud Pumps #2 & #3 Xhd bottom guides need to be shimmed up to 0.034. 129 NT To be rectified 02/12/13

Recommendation Summary and Disposition Customer Gupco 3/5 Rig/ PPI Job # 129
 Reference Date

Item No Priority
Surveyor Estimated
Recommendation Job # Daily Report Comments/Status Opened Closed
Completion
Initials

52 II Left side drive chains on all three MPs have damaged link chain rollers. 129 NT To be rectified 03/12/13

53 II Various covers nuts and bolts are missing on the DWKS. 129 NT To be rectified 03/12/13

54 II Ensure new deluge system is fitted for the helpdesk as parts arrive. 129 NT To be rectified 02/12/13

Ensure that safety relief valves have been tested according to an established
procedure. The test interval shall be twice in 5 years with no interval more than 3
55 ` 129 NT API(SL)A Part V 605(2) 03/12/13
years. The procedure shall include test conditions and equipment, safety and
recording experience data

56 II Bilge/Ballast pumps need to be replaced. 129 NT To be rectified 02/12/13

57 II Pressure Washers 129 NT To be rectified 03/12/13

58 II No record of Mud Pumps pistons ends and crankshaft NDT 129 NT To be rectified 03/12/13

59 II Fast rescue craft required for Gupco contract. 129 NT To be rectified 03/12/13

60 II Re-instate EZ torque on rig floor. 129 AP/NT To be rectified 03/12/13

61 II Gupco contract requires 2a man riders on rig floor; only 1ea on the rig. 129 NT To be rectified 01/12/13

62 II No records verify Man-riding winch been certified/listened annually 129 AP/NT To be rectified 03/12/13

63 II Weather proofing wind walls for the derrick. 129 AP To be rectified 03/12/13

64 III Earth layout diagram missing. 129 NT To be rectified 01/12/13

No records MPI all pinions and pinion shafts. On jacking system hydraulic grab
65 III systems MPI clevis and pins 129 NT To be rectified 01/12/13

66 III Sight glass and temperature gauge to be replaced on brake cooling water tank. 129 NT To be rectified 01/12/13

Visual inspections (Category II or equivalent) of the components of BOP handling

67 III systems that are subjected to the primary load path 129 NT To be rectified 01/12/13

68 III No record of OEM overhaul 129 NT To be rectified 02/12/13

69 III No record of last inspection for inertia reels. 129 NT To be rectified 03/12/13

No certification for BA compressor found. Replacement filters and cartridges to be

70 III 129 NT To be rectified 03/12/13
fitted to deliver clean breathable air.

71 III Deck high pressure washing machines. In bad condition. Repair/replace. 129 NT To be rectified 03/12/13

72 III Both Cranes pedestal need to clean out oil. 129 AP/NT To be rectified 02/12/13

No maintenance records to check for Halliburton cement unit. Requested from

73 III 129 AP/NT To be rectified 03/12/13
town.

74 III Rig air compressor #3 has broken pressure gauges. 129 AP/NT To be rectified 03/12/13

75 III Rig general housekeeping on main decks needs to improve. 129 AP To be rectified 02/12/13

Recommendation Summary and Disposition Customer Gupco 4/5 Rig/ PPI Job # 129
 Reference Date

Item No Priority
Surveyor Estimated
Recommendation Job # Daily Report Comments/Status Opened Closed
Completion
Initials

Rig lighting broken and need to be replaced or repaired on various locations

76 III 129 AP To be rectified 03/12/13
around the rig.

77 III Various motors around the rig need earth straps. 129 AP/NT To be rectified 03/12/13

78 III No PM work history for rig equipment. New owners; new system. 129 NT To be rectified 03/12/13

79 III Port Forward anchor rack 129 AP/NT To be rectified 03/12/13

80 III Helpdesk support beams 129 AP/NT To be rectified 03/12/13

81 III No butterfly valves reports 129 AP/NT To be rectified 03/12/13

82 III Rig doesn't have Poer Tong 129 AP/NT To be rectified 03/12/13

83 III Obstruction lights 129 AP/NT To be rectified 03/12/13

84 III No records of potable water tested every 3 months in lab. Ashore. 129 AP/NT To be rectified 04/12/13

85 III No records last inspection of potable water tanks. 129 AP/NT To be rectified 04/12/13

Ensure all personnel stairways, ladders, ramps, runways, and platforms are
free of objects and substances that create slipping or tripping hazards or
86 III 129 AP/NT *API RP 54 9.3.11 04/12/13
hinder emergency egress of personnel.

Verify grounding straps correctly installed on all motors and visually check the
87 III 129 AP/NT *API RP 14F 6.10.3.1 04/12/13
condition of the braking mechanisms.

Verify cranes are certified by a qualified third party inspector annually.

88 III 129 AP/NT To be rectified 04/12/13

Ensure egress routes are maintained open. Ensure tools and equipment are
securely placed and stored in
89 III 129 AP/NT *API RP 54 6.5.5 04/12/13
a manner where they will not fall.

Ensure working areas are maintained clean and free of debris and tripping
90 III hazards. 129 AP/NT *API RP 54 6.5.1 04/12/13

Verify that all gauges and controls at each panel are in good condition. Check
91 III for evidence of leaks at the panel piping 129 AP/NT To be rectified 04/12/13
and check the filter housing for convenient access.

Ensure all gauges are calibrated by certified third party and carry current
92 III 129 AP/NT To be rectified 04/12/13
calibration tag

No MSDS records found. Rig to insure the availabilty of all materials MSDS
Data on-board. Verify material(s) used for cleaning have a flash point of not
93 III 129 AP/NT *API RP 54 7.1.12 04/12/13
less than 100 F (38 C ). Check MSDS to confirm.

Recommendation Summary and Disposition Customer Gupco 5/5 Rig/ PPI Job # 129