Contract No.

Exhibit B Scope of Services

EXHIBIT B
Scope of Services

___________________________________________________________________________________________________________________________
October 2010

Contract No.

Exhibit B Scope of Services

EXHIBIT "B"
1.0

December

SPECIAL TERM AND CONDITION

GENERAL SCOPE OF WORK
1.1

CONTRACTOR is to provide directional drilling services for supporting

the COMPANY POD Drilling Operation located in Kabupaten Siak Riau.

1.2

It is COMPANY's intent to utilize CONTRACTOR's equipment and service

personnel as detailed in this exhibit to perform the services hereunder.

1.3

A rig site work will be based on 24 hours per day continuous operation
and CONTRACTOR will perform the said services as directed by
COMPANY. There will not be any additional charges to COMPANY for
overtime.

1.4

CONTRACTOR must submit past experience in Directional Drilling work

in the last 3 years in Indonesia and or South East Asia with list of wells,
location, year and customers. Experience in HTHP well drilling is
preferable. CONTRACTOR is advised that the following specifications
should only be regarded as COMPANYs best estimate of minimum
equipment, material, services and/or personnel needed to meet its
service requirements as specified in this Scope of Work.
CONTRACTOR to submit failure statistic (MTBF) for mud motor and MWD
and/or EM (preferable in HTHP wells) in circulating hours for the last 3
years.

1.5

COMPANY anticipates the following requirements for the provision of the

Services in support of the work described herein. The cost of providing
these items shall be included in the rates quoted in Exhibit C.

1.6

CONTRACTOR shall ensure that it contacts COMPANY Representative to

establish which COMPANY procedures apply to the Work and to obtain
an up-to-date copy of such procedures prior to commencement. It shall
be CONTRACTORs responsibility to thereafter ensure that the Work is,
at all times, performed and any items provided by CONTRACTOR are in
accordance with COMPANY procedures, specifications and statutory
requirements.

1.7

At COMPANYs sole option, CONTRACTOR is required to propose its

own current Oil and Gas drilling procedure and document where it used
currently or specifications for COMPANYs approval and, once approved,
adhere to them for the term of the contract.

1.8

CONTRACTOR shall provide Directional Drilling (DD)/ Measurement

While Drilling (MWD) Services on COMPANY owned/operated drilling rigs
for the term of the Contract as and when directed by the COMPANY
Representative.

1.9

CONTRACTOR must possesses the necessary skills, equipment,

competent personnel and organization to perform the Work in a manner
satisfactory to COMPANY.

1.10

CONTRACTOR personnel shall discuss with COMPANY representative

regarding planning of BHA design and directional program.

1.11

CONTRACTOR shall at its own cost supply personnel protective clothing

to CONTRACTORs assigned personnel to meet all current or future
relevant regulations for onshore work.
Page 1 of 20

Contract No.

2.0

Exhibit B Scope of Services

1.12

CONTRACTOR shall be responsible for the coordinating, planning and

supervision of all activities relating to Directional Drilling and MWD/EM.
This is including scheduling, maintenance program for directional tools,
e.g. drilling jar, if necessary.

1.13

CONTRACTOR is required to have operation base in Jakarta to support

drilling operation
that consists of Offices, Labs, R&M for full
maintenance.

TERM
The Contract period is to cover of COMPANYs drilling program of 3 gas wells.
The estimated duration of the drilling program is 8 (eight) months such
estimated duration shall not be deemed to imply any contractual commitment
by COMPANY.
In the event that operations on the Scope of Work are not completed within 8
(eight) months, the Contract shall continue in effect until completion of
operations on the Scope of Work. In this case the Total Estimated Contract
Value shall be increased on a day by day basis for such period that the actual
days exceed 8 (eight) months.

3.0

DRILLING PARAMETER
3.1 Approximate Design of the well:
Gas Wells (4 wells)
1. RM-3A Twin
Hole
Size

Casin
g

Piled
26
17.5

30
20
13.37
5
9.625

12.25

8.5

Depth,
mMDGL
60
504
1504

Bit
Type

Mud
Type

Flow
Rate
gpm

Directiona
l
Type

Survey
Type

Insert
Insert

Water
HPWBM

1200
1000

Vertical
Vertical

Vert. Sub
Vert. Sub

2454

PDC

HPWBM

900

Vertical

Vert. Sub

2904

PDC

HPWBM

600

Vertical

Vert. Sub

2. BSR-D
Hole
Size

Casin
g

Piled
26
17.5

30
20
13.37
5
9.625

12.25

8.5

Depth,
mMDGL
60
504
1504

Bit
Type

Mud
Type

Flow
Rate
gpm

Directiona
l
Type

Survey
Type

Insert
Insert

Water
HPWBM

1200
1000

Vertical
Build

MWD
MWD

2454

PDC

HPWBM

900

Tangent

MWD

2904

PDC

HPWBM

600

Drop

MWD

3. BSR-C

December

Hole
Size

Casin
g

Piled
26
17.5

30
20
13.37
5

Depth,
mMDGL
60
504
1504

Bit
Type

Mud
Type

Insert
Insert

Water
HPWBM

Flow
Rate
gpm
1200
1000

Directiona
l
Type
Vertical
Build

Survey
Type
MWD
MWD

Page 2 of 20

Contract No.

12.25

8.5

Exhibit B Scope of Services

9.625

2454

PDC

HPWBM

900

Tangent

MWD

2904

PDC

HPWBM

600

Drop

MWD

Notes:
The well will be drilled in vertical and directional with inclination range 20
33 degrees.
The casing depths, directional type and well design are estimates only and
may be revised by COMPANY during well design phase and drilling
operation.
3.2 Anticipated Maximum Temperature, Bottom Hole Pressure (BHP),
H2S:
BHST: 347 deg F or 175 deg C maximum.
Flowing In at surface: 71 deg C without cooling, 68 deg C with cooling (estd).
BHP for Oil well (2504 m): 9.2 ppg and possible to be as high as 9.8 ppg
BHP for Gas well (2904 m): 12.5 ppg and possible to be as high as 13.3 ppg
H2S: The presence of low content H2S is anticipated. Flashing signal is to be set
at 5 ppm and alarm to be set at 10 ppm for personnel evacuation.
4.0

MOBILIZATION AND DEMOBILIZATION

CONTRACTOR shall be responsible for mobilization and delivery of all
equipment material and spares to COMPANYs delivery / departure point in
Indonesia. CONTRACTOR will provide all paperwork required by
COMPANY/SI/Customs to import the equipment to Indonesia (if required).
COMPANY will not responsible for any cost associated with the shipping,
docking, loading and handling/transportation of equipment and materials
supplied under this contract. COMPANY will not be liable for any demurrage or
other charges incurred by CONTRACTOR during delivery.
4.1 Company Base
Company Office Base: Jakarta
Company Field Base: SP Field, Siak, Riau
Material and Equipment Point of Delivery: Company Rig Site
Personnel Mobilization Point: Rig Site
4.2 Contractor Base
Contractor Office Base: Jakarta
Contractor material and Equipment Base: Jakarta
CONTRACTOR shall participate in pre-mobilization and pre-demobilization
meetings as requested by COMPANY, with the objective of developing mutually
agreeable, safe, and logistically sound plans which have minimal or no impact
on the local community and the environment.
All equipment and material to be adequately crated and/or palletized as
necessary for the save handling from CONTRACTORs source of supply to Work
Site. All costs associated with packaging, bulking, and handling are to be
included in the unit price of the items quoted. COMPANY will not pay any
additional costs.
The equipment will be delivered to Work Site, by the CONTRACTOR within 1
(one) week of receiving formal notice from COMPANY.

December

Page 3 of 20

Contract No.

5.0

Exhibit B Scope of Services

TRANSPORTATION
5.1 Loading
and
transportation
of
CONTRACTORs
Goods
from
CONTRACTORs stock points to COMPANY Filed base is CONTRACTORs
responsibility. COMPANY will support the off loading of equipment and
material purchase at COMPANY supply base.
COMPANY will arrange adequate transportation and all related equipment
for the transportation of CONTRACTORs equipment and material
purchase at COMPANY supply base to COMPANY well site. All cost related
to this services will be COMPANYs responsibility.
5.2 COMPANY maintains transport as deemed necessary to support their
operation, which will operate between rig location and COMPANYs Field
base. These transports operate at no cost to CONTRACTOR.
5.3 Adequate weather protection of Goods during transportation is the
responsibility of CONTRACTOR and to CONTRACTORs account.
5.4 Transportation of CONTRACTORs Goods between wells is to COMPANYs
account. Other transportation except stated otherwise here in to
CONTRACTORs account.
5.5 CONTRACTOR shall provide for transportation of personnel from
CONTRACTOR base to Pekanbaru airport. COMPANY shall provide
transportation for CONTRACTORs personnel from Pekanbaru airport to rig
location.

6.0

CONTRACTORs RESPONSIBILITIES
6.1 CONTRACTOR shall be responsible for all maintenance (planned or
otherwise), spares, and replacement parts for all equipment supplied by
CONTRACTOR.
6.2 CONTRACTOR shall be responsible for the provision of fully certified
equipment and all recertification to maintain all equipment with continuous
valid certification in accordance with the requirements of the certifying
authority for the drilling rig unit.
6.3 CONTRACTOR shall be responsible for suitably certified shipping baskets,
containers and slings for safe transport of equipment together with all
appropriate lift subs.
6.4 CONTRACTOR shall be responsible for the manifesting and prompt return
of its equipment from the onshore locations. Items not accounted for or left
on the location shall be to CONTRACTORs account. CONTRACTOR and
COMPANY shall communicate and co-operate over forthcoming, current
and completed equipment requirements.
6.5 CONTRACTOR shall be responsible for properly calibrating its equipment
to ensure accuracy of tool operation, with due regard to the expected well
conditions.
6.6 CONTRACTOR shall responsible and perform QA checks on all surveys,
and compile definitive survey listings for the entire well bore trajectory.
The definitive survey shall be available both as a paper copy and on a disk
to the format specified by COMPANY.
6.7 CONTRACTOR shall submit a monthly contract expenditure status
statement to the COMPANY Representative. This statement will show
initial Total Contract Value, invoices submitted to date and the Remaining
Contract Value. CONTRACTOR must alert COMPANY If Contract Value or
Contract Duration is close to being reached.
6.8 Manual and Drawing
CONTRACTOR shall provide 1 (one) complete unbound operating manual

December

Page 4 of 20

Contract No.

Exhibit B Scope of Services

and drawing in addition to manuals submitted with this document. Not

mandatory.
6.9 Supporting Services
6.9.1Provision of comprehensive survey data processing and well planning
facilities in Jakarta to provide field survey data analysis, optimum
slot/target allocation, interference plots, structure views etc.
6.9.2Provision of individual well plans and proposals, and post well
reports/analysis. Normally, 3 copies will be required.
6.9.3The CONTRACTOR must have its own established repair and
maintenance base with an existing stock of tools in Jakarta, preferable
in Pekanbaru or Duri. A proven track record of supporting operation
from this facilities is required. Minimum repair and maintenance
equipment: High Temp Testing Oven, MWD lab test, HTHP soldering
Facilities, Break Out Machine, Jar tester and other support tools.
6.10 CONTRACTOR shall provide daily, monthly and final well report:
Daily Reporting
A daily update report will be required on a midnight-to-midnight basis, and
will include the following data:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)

Meter drilled.
Tools run
Bit and BHA details
Rotating hours
Circulating hours/Running hours
Cumulative Motor/turbine hours. If motor failed, include total hours to
failure and details of failure.
Any failures, including reasons and attempted solutions.
MWD log at 1:200 and/or 1:500 MD scale, covering the section drilled
during the twenty-four (24) hour period with at least fifteen (15) meter
overlap with the previously drilled section, where possible.
Tabulated deviation survey data, including depth, inclination, azimuth,
and calculated TVD.
Operations summary.

Monthly Reporting
A monthly report will be required to be submitted by the tenth (10th) day
of each Calendar Month. The report shall include a summary of details as
per daily reports, details of equipment operability, problems and repairs
carried out.
Final Well Report
Three (3) copies of all volumes of the "Final Well Report", including
logs, floppy disks, and well critique will be submitted to COMPANY
within 10 days of the completion of the Well.

December

The final well report should include printouts of all surveys taken
identified by instrument type and date/run number. All tie-in points
must be defined. The definitive survey is to be presented as a data
printout with all survey stations and tie in points identified by
instrument type and date/run number and also as a graphical plot
showing actual well path (vertical section and plan view) versus the
proposed well plan. BHA details are to include the length, OD and ID of
each component and the BHA performance data (build/turn rates etc.).

A detailed operational summary including recommendations and

explanations of pertinent operations should also be included.
Page 5 of 20

Contract No.

Exhibit B Scope of Services

COMPANY reserves the right to define and/or alter the format and
contents of the Final Well Report, within reason, at any time.
7.0

IMPORT OR EXPORT TAXES

COMPANY will not responsible for any import or export taxes and/or levies or
custom duties for material and equipment necessary to CONTRACTOR to
provide the services as outlined in this Contract. Any other charges not outlined
above but associated with providing the said equipment will be for the sole
account of CONTRACTOR.

8.0

EQUIPMENT AND SERVICES

8.1 Contractor shall be capable of providing all Services and Equipment, as
listed below, in order to be considered for the Contract award. If any third
party equipment is to be utilized in the provision of these services, this
equipment or service must be clearly identified.
8.2 The description of Mud Motor equipment needed by Company is given
below. All the equipment should be new or like new condition. The list of
equipment below for each hole section is what Company deems to be the
minimum number of mud motors necessary to make one rig set for that
hole section.
N
o

Specifications

8 OD Steerable Mud Motor, c/w

adjustable bent housing, 9001000 gpm, 132 RPM, 2-6 klb/ft
torque, <3 deg/100 ft build rate,
40 lb/bbl medium size LCM.,
temperature 190 deg F. Equipped
with Sleeve Stabilizer with hard
facing HF2000

6-1/2 7-1/4 OD Steerable Mud

Motor, c/w adjustable bent
housing, 550-750 gpm, high
torque: >10 klb/ft, 5 lb/bbl fine
size LCM, temperature 320 deg F.
Equipped with Sleeve Stabilizer
with hard facing HF3000 or
HF4000

CONTRACTORs Specification

8.3 MWD systems could be Pulse System or EM with back up. Contractor is to
propose the systems to be utilized.
8.4 CONTRACTOR shall have Computer systems that are capable of dealing
with all aspects of multi-well development pre-planning, well planning and
daily operational support, including generation of well trajectory plots,
spider plots, traveling cylinder plots and anti-collision minimum separation
information. The systems shall be capable of providing definitive survey
listings and concise end of well reviews, BHA design/modeling, BHA
directional performance prediction, torque and drag modeling, side wall
contact force calculations, and casing wear modeling calculations.

December

Page 6 of 20

Contract No.

Exhibit B Scope of Services

8.5 CONTRACTOR shall provide for each well a detailed table showing
maximum permitted doglegs at given depths, which equate to the
maximum allowable sidewall contact forces as specified by Company.
8.6 CONTRACTOR shall provide Well-site Computer systems that shall be
capable of borehole survey calculations, forward well path projection, anticollision monitoring and BHA performance input into an information
database.
8.7 The description of Measurement While Drilling equipment required by
Company is given below. All the equipment should be new or in new
condition. The list of equipment below for each hole section is what
Company deems to be the minimum number of tools necessary to make
one rig set for that hole section.
No
1

Specification
Set of rig floor surface equipment
including surface recording unit of
modem
design
with
suitable
monitoring, recording and display
facilities
(MWD
and
drilling
mechanics data), and including all
cables, crossover hydraulic line,
power transformer adapter, etc.

CONTRACTORs Specification

8 OD or equivalent MWD tools to

be used in 17- 1/2 and 12-1/4
hole sections. The MWD system is
required to meet the following:
pump
rate
up
to
1000
GPM, min 0.75 bit/sec data rate,
LCM: fine to medium size, 40
lb/bbl, connection
6-5/8 API
Regular
(NC-50),
operating
temperature rated 150-175 C
(static).
6-3/4 OD or equivalent MWD tools
to be used in 8-1/2 and 12-1/4
hole sections. The MWD system is
required to meet the following:
pump rate up to 550-750 GPM,
min 0.75 bit/sec data rate, LCM :
fine size, 40 lb/bbl, connection 41/2 API IF, operating
temperature rated 150-175 C
(static).

8.8 The equipment must be designed to operate correctly in wells of inclination

up to 40 degrees and depths of up to 10,000 feet-MD, with operating
temperature 347F (175 C).
8.9 CONTRACTOR must provide a surface recording system capable of depth
matching and well site interpretation computation.
8.10 The MWD equipment must be capable of providing information regarding
downhole vibrations to allow decisions to be made real time, regarding
operating parameters, to minimize destructive vibrations and be suitable
for all downhole conditions encountered

December

Page 7 of 20

Contract No.

Exhibit B Scope of Services

8.11 Where non-magnetic collars are not used and raw data is transmitted to
surface, the Contractor shall provide proof that their magnetic correction
model is fit for purpose in the particular application.
8.12 Contractors tools must be capable of being downloaded and read on
deck, so as no communications are required whilst tools are suspended
from the top drive.
COMPANY Requirement
Tool Set Up
Update Rate
Tool Face (TF)
8 seconds
only
TF/PWD
22 seconds

CONTRACTORs Specification
Tool set up
Tool Face (TF) only
TF/PWD

8.13 CONTRACTORs equipment shall be expected to operate to accuracy

levels stated by the CONTRACTOR in Contractor produced publicity
information or as previously published
8.14 CONTRACTOR shall be capable of providing all the auxiliary Equipment,
as listed in Table below, in order to be considered for the Contract award. If
any third party equipment is to be utilized in the provision of these
services, this equipment or service must be clearly identified.
8.15 All down-hole equipment is to be bored back and stress relieved. DS-1
Category 3 as a minimum requirement of all the BHA unless otherwise
agreed by Company
5.15.1 Non Magnetic Drill Collars (NMDC)
No

Specifications

8
by
10
Pony
NMDC,
Connection 6-5/8 Reg. box up x
6 5/8 Reg. pin down
6-1/2 by 10 Pony NMDC,
Connection 4-1/2IF up x 4-1/2
IF pin down.
8 by 30 NMDC, Connection 65/8 Reg. box up x 6- 5/8 Reg. pin
down.
6-1/2 by 30 NMDC, Connection
4-1/2 IF box up x 4-1/2 IF pin
down.

2
3
4

CONTRACTORs Specification

5.15.2 Integral Blades Stabilizers

No

Specifications

26 IB STRING stabilizer, Spiral

or donut blade type, with 9-1/2
nominal OD bodies bored for
float, Connection 7-5/8 Reg,
hard facing HF1000 or better.
17-1/2 IB NB stabilizer, Spiral or
donut blade type, with 8
nominal OD bodies bored for
float, Connection 6-5/8 Reg. box
up x 6-5/8 Reg. box down, hard
facing HF2000 or better.
15 - 17-1/2 IB stabilizer, Spiral
or donut blade type, with 8

December

CONTRACTORs Specification

Page 8 of 20

Contract No.

Exhibit B Scope of Services

No

Specifications

CONTRACTORs Specification

nominal OD bodies, Connection

6-5/8 Reg. box up x 6-5/8 Reg.
pin down, hard facing HF2000 or
better.
12-1/4 IBNB stabilizer, Spiral or
donut blade type, with 8
nominal OD bodies bored for
float, Connection 6-5/8 Reg. box
up x 6-5/8 Reg. box down, hard
facing HF3000 or better.

6
11 - 12-1/4 IB stabilizer, Spiral
or donut blade type, with 8
nominal OD bodies, Connection
6-5/8 Reg. box up x 6-5/8 Reg.
pin down, hard facing HF3000 or
better.
7

8-1/2 IB NB stabilizer, Spiral or

donut blade type, with 6-1/2
nominal OD bodies, Connection
4-1/2 IF box up x 4-1/2 IF box
down (NC 46), hard facing
HF3000 or better.

7.5 - 8-1/2 IB stabilizer, Spiral

or donut blade type, with 6-1/2
nominal OD bodies, Connection
4-1/2 IF box up x 4-1/2 IF pin
down (NC 46), hard facing
HF3000 or better.
Note: All stabilizer feature shall be SPIRAL type. Straight stabilizer type is NOT
ACCEPTED.
5.15.3 Integral Blades Under gage Stabilizers
No

Specifications

12-1/8
stabilizer,
with
8
nominal OD bodies, Connection
6-5/8 Reg box up x 6-5/8 Reg
pin down, hard facing HF2000 or
better.
12 stabilizer, with 8 nominal
OD bodies, Connection 6-5/8
Reg box up x 6-5/8 Reg pin
down, hard facing HF2000 or
better.
8-3/8 stabilizer, with 6-1/2
nominal OD bodies, Connection
4-1/2 IF box up x 4-1/2 IF pin
down, hard facing HF3000 or
better.
8-1/8 stabilizer, with 6-1/2
nominal OD bodies, Connection
4-1/2 IF box up x 4-1/2 IF pin

December

CONTRACTORs
Specification

Page 9 of 20

Contract No.

Exhibit B Scope of Services

No

Specifications

CONTRACTORs
Specification

down, hard facing HF3000 or

better.
Note: All stabilizer feature: shall be SPIRAL type. Straight stabilizer type is NOT
ACCEPTED.
5.15.4 Shock Sub
No

Specifications

CONTRACTORs
Specification

6-3/4 OD Shock Sub

5.15.5 Float Subs

No

Specifications

8 nominal OD float sub,

Connection 6-5/8 Reg box up
x 6-5/8 Reg pin down.
6-1/2 or 6-3/4 nominal OD
float sub, Connection 4-1/2 IF
box up x 4-1/2 IF pin down.

CONTRACTORs
Specification

5.15.6 Drilling Jars

No
1

Specifications

CONTRACTORs
Specification

(7-3/4 to 8) OD X (2-3/4 to
3) ID, Hydro-Mechanical with
Latch
facility,
Directional
Drilling Jars with 6-5/8 API
Regular Box Up and Pin Down
Connection. Dailey or Houston
Jars are preferred. Minimum
Torque yield: 100 klbs-ft.
(6-1/4 to 6-7/8) OD X (2-1/4
to 2-1/2) ID, Hydro-Mechanical
with Latch facility. Directional
Drilling Jars with 4-1/2 API IF
Box Up and Pin Down
Connection (NC 46). Dailey or
Houston Engineering Jars are
preferred. Minimum Torque
yield: 100 klbs-ft.
5.15.7 Case Hole Sidetrack - Optional

December

Page 10 of 20

Contract No.

Exhibit B Scope of Services

No

Specifications

9-5/8 Casing Whipstock c/w

Milling Bit and Water Melon for
sidetrack inside casing.

Gyro Tool : North Seeking Gyro

tool 1.75 OD or 1.85 OD with
Heat
shield,
Temperature
Rating 150 200 C.

CONTRACTORs
Specification

3
Milling tool: Start Mill, Upper
and Lower Water Melon Mill.
5.15.8 Logging While Drilling (LWD) - Optional
No
1
8.16

Specifications

CONTRACTORs
Specification

Triple
Combo
(GR-Cal,
Resistivity, Neutron-Density)

CO
NT
RACTOR shall provide a full range of magnetic single shot instruments and
running equipment. The Directional Drilling Engineer shall be fully
competent in the use of this equipment.

No
1

Specifications

CONTRACTORs
Specification

1.75 Electronics Single shot Kit

complete
with
necessary
running gears and Heat shield,
capable to take survey single
shot measurement.

8.17 CONTRACTOR Equipment must available in Jakarta area during technical

evaluation.
9.0

LIST OF DIRECTIONAL TOOL REQUIRED

CONTRACTOR are advised that the following BHA component should only be
regarded as COMPANYs best estimate of equipment needed to meet its
service requirements as specified in the Scope of Work.
It is CONTRACTOR responsibility as the service specialist to bring to
COMPANYs attention and include in the tender any additional items not
specifically included in this inquiry document but nonetheless required to
perform the Scope of Work in a safe and efficient manner, according to current
standard Oil and Gas practices. Justification for any addition must be included.
Additional items not specified herein, not brought to the attention of COMPANY
and not subsequently included by CONTRACTOR in its submission, and yet
which are required by the successful CONTRACTOR at a later date in order to
perform operations specified in the Scope of Work will be provided by
CONTRACTOR at CONTRACTORs expense.

December

Page 11 of 20

Contract No.

Exhibit B Scope of Services

CONTRACTOR shall insert any or all Equipment information such as

specifications, type and minimum quantities of the following equipment
required:
A. 26 Hole BHA Component: 30 ft Pendulum Assembly w/ or w/o
motor:
N
o
1
2
3
4
5
6
7
8
9
10
11
12
13

BHA Component
26 Insert Bit
9-1/2 Bit sub w/ Float
Sub c/w FV, 1 ea
9-1/2 DC, 1 ea
9-1/2 Flow Drift
9-1/2 x 24 OD IB
String Bit Stabilizer,
HF1000, 1 ea
9-1/2 OD Spiral DC, 1
ea
9-1/2 x 24 OD IB
String Bit Stabilizer,
HF1000, 1 ea
9-1/2 X/O Pin x Box, 1
ea
8 OD Spiral DC, 3 ea
8 Jar, 1 ea
8 OD Spiral DC, 1 ea
8 X/O Pin x Box, 1 ea
HWDP

Provider

Remark

Company
Contractor

With back up

Company
Company
Contractor

With back up

Company
Contractor

With back up

Contractor

With back up

Company
Contractor
Company
Contractor
Contractor

With back up
With back up
With back up

B. 17-1/2 Hole BHA Component: Pack Assembly and Directional:

Vertical Hole
N
o
1
2
3
4
5
6
7
8
9
10
11
12

BHA Component
17-1/2 Insert Bit
9-5/8 Mud Motor with
Sleeve Stabilizer
9-5/8 Float Sub c/w FV
15.75 OD x 17-1/2 IB
String Bit Stabilizer
9-1/2 Sub Pin x Pin
9-1/2 Flow Drift
X/O Pin x Box
8 Spiral DC
8 Jar
8 Spiral DC
8 X/O Pin x Box
HWDP

Provider

Remark

Company
Contractor

With Backup

Contractor
Contractor

With Backup
With Backup

Company
Company
Contractor
Company
Contractor
Company
Contractor
Contractor

With Backup
With Backup
With Backup
With Backup

Directional Hole
N
o
1
2
December

BHA Component

Provider

17-1/2 Insert Bit

Company
9-5/8 Mud Motor with Contractor

Remark
With Backup
Page 12 of 20

Contract No.

3
4
5
6
7
8
9
10
11
12

Exhibit B Scope of Services

Sleeve Stabilizer
9-5/8 Float Sub c/w FV
15.75 OD x 17-1/2 IB
String Bit Stabilizer
9-1/2 NMDC
9-1/2 Index Sub
9-1/2 Antenna Sub
X/O Pin x Box
8 Spiral DC
8 Jar
8 Spiral DC
8 X/O Pin x Box
HWDP

Contractor
Contractor

With Backup
With Backup

Contractor
Contractor
Contractor
Contractor
Company
Contractor
Company
Contractor
Contractor

With
With
With
With

Backup
Backup
Backup
Backup

With Backup
With Backup
With Backup

C. 12-1/4 Hole BHA Component: Directional / Pack Assembly:

Vertical Hole
N
o
1
2
3
4
5
6
7
8
9
10
11

BHA Component
12-1/4 PDC Bit
8 Mud Motor with
Sleeve Stabilizer
8 Float Sub c/w FV
11.5 OD IB String Bit
Stabilizer
8 Sub, Pin x Pin
8 Flow Drift
8 Spiral DC
X/O Pin x Box
5 HWDP
6 Jar
5 HWDP

Directional Hole
N
BHA Component
o
1
12-1/4 PDC Bit
2
8 Mud Motor with
Sleeve Stabilizer
3
8 Float Sub c/w FV
4
11.5 OD IB String Bit
Stabilizer
5
8 NMDC
6
8 Index Sub
7
8 Antenna Sub
8
8 Spiral DC
9
X/O Pin x Box
10 5 HWDP
11 6 Jar
12 5 HWDP

Provider

Remark

Company
Contractor

With Backup

Contractor
Contractor

With Backup
With Backup

Company
Company
Company
Contractor
Contractor
Contractor
Contractor

With
With
With
With

Provider

Backup
Backup
Backup
Backup
Remark

Company
Contractor

With Backup

Contractor
Contractor

With Backup
With Backup

Contractor
Contractor
Contractor
Company
Contractor
Contractor
Contractor
Contractor

With Backup
With Backup
With Backup
With
With
With
With

Backup
Backup
Backup
Backup

D. 8-1/2 Hole BHA Components: Directional / Pack Assembly:

Vertical Hole

December

Page 13 of 20

Contract No.

Exhibit B Scope of Services

N
o
1
2

BHA Component
8-1/2 PDC Bit
6 Mud Motor with
Sleeve Stabilizer
6 Float Sub c/w FV
8 OD IB String Bit
Stabilizer
6 Sub, Pin x Pin
6 Flow Drift
6 Spiral DC
X/O Pin x Box
5 HWDP
6 Jar
5 HWDP

3
4
5
6
7
8
9
10
11

Provider

Remark

Company
Contractor

With Backup

Contractor
Contractor

With Backup
With Backup

Company
Company
Company
Contractor
Contractor
Contractor
Contractor

With
With
With
With

Backup
Backup
Backup
Backup

Directional Hole
N
o
1
2

BHA Component
8-1/2 PDC Bit
6 Mud Motor with
Sleeve Stabilizer
6 Float Sub c/w FV
8 OD IB String Bit
Stabilizer
6 NMDC
6 Index Sub
6 Antenna Sub
6 Spiral DC
X/O Pin x Box
5 HWDP
6 Jar
5 HWDP

3
4
5
6
7
8
9
10
11
12

Provider

Remark

Company
Contractor

With Backup

Contractor
Contractor

With Backup
With Backup

Contractor
Contractor
Contractor
Company
Contractor
Contractor
Contractor
Contractor

With Backup
With Backup
With Backup
With
With
With
With

Backup
Backup
Backup
Backup

Note:

CONTRACTOR shall provide one set of back-up tool to avoid any rig time
delay if require for tool replacement. If back-up tool has been used, another
back-up tool must be available at site within 24 hours.

Back-up tools are preferred kept at rig site. Contractor could keep back-up
tool at Jakarta base, however if any rig delay due to unavailable tool, no
rental charges will be applied.

BHA component could be swabbed to other hole size if applicable.

All inspections are to be performed in accordance with T.H. Hill Associates

Standard DS-1 First Edition, December 1992, from the DEA Project 74. The
inspection procedures from the DS-1 Standard should be followed for a Service
Category 4 inspection (Premium Class and/or a BSR range of 2.25-2.27) and
include the following inspections:

December

Visual: Examination of connections, shoulders, tool joints and profile check

of threads and measurement of box swell (DS-1 Sec 3.11).

Black light: Wet MPI to identify fatigue cracks (DS-1 Sec 3.15).
Page 14 of 20

Contract No.

Exhibit B Scope of Services

Dim 3: Measurement of gauge of box OD, pin ID, pin lead, bevel diameter,
pin stress relief diameter and width, bore back diameter and thread length
(DS-1 Sec 3.14).

Elevator Groove of Drill Collar: Dimensional verification and visual inspection

Frequency of Inspection:
(a) Inspections in accordance with the above shall be conducted within one
(1) month prior to the Commencement Date.
(b) Inspection in accordance with the applicable section above shall be
conducted subsequent to the failure of any CONTRACTOR Furnished drill
string component.
(c) COMPANY may inspect any drill string components at any time other
than the above indicated schedule at COMPANYs expense.

Inspection documentation: Written inspection results to be provided to

COMPANY for all tools, prior tool delivery. All appropriate inspection
documentation to reference tool serial numbers.

10.0 CONTRACTORs PERSONNEL

CONTRACTOR shall demonstrate that CONTRACTOR is capable of supplying
highly qualified personnel upon receipt of COMPANYs request and within the
time frame required. CONTRACTOR will furnish the suitable qualified and
experienced personnel to work in professional and workmanlike manner in
accordance with the Contract.
CONTRACTOR shall provide complete organization chart of its organization and
its proposed support organization for the purposed service, separate from the
resumes mentioned above.
COMPANY reserves the right to have the CONTRACTOR replace personnel, for
technical incompetence, misbehavior, incompatibility, or any other reason. The
COMPANYs verbal approval is required for any change in the CONTRACTORs
personnel.
Personnel are to be available on location at all times, to perform such duties are
requested by the COMPANY, including but not limited to the following services.
CONTRACTOR shall be responsible for keeping in his employment sufficient
personnel to provide for rotation, vacation, leaves and other absences.
CONTRACTOR will ensure that its personnel comply with any requests or
instructions given by COMPANY under terms of this contract and in particular
with any safety regulations or directions that may be in force at the Work Site.
The COMPANY will provide for the emergency evacuation of the
CONTRACTORs personnel on Site. The CONTRACTOR will be charged for the
cost of emergency medical evacuation of the CONTRACTORs personnel
beyond the COMPANYs normal transportation.
If the COMPANY is not satisfy with the performance or conduct of any of the
CONTRACTORs personnel or that persons level of experience or qualification
to undertake the services, the COMPANY may request the CONTRACTOR to
call off that person from site. The CONTRACTOR must comply with that request
and provide a replacement acceptable to COMPANY at no additional cost to the
COMPANY.
If CONTRACTOR wishes to replace any of its personnel assigned to the
Contract who have been approved by COMPANY, CONTRACTOR shall first
December

Page 15 of 20

Contract No.

Exhibit B Scope of Services

provide a detailed resume to COMPANYs Drilling manager for each individual

proposed as a replacement, and a transition plan for such individual. This
resume shall include as a minimum: the name; COMPANY and industry
training; current position; background / qualification / educational profile;
related work experience; location of work (office, rig, lab, bulk facilities /
warehouse); and years employed by CONTRACTOR. Such personnel shall be
required to fully meet the qualifications describe in this attachment and
elsewhere in this Contract. COMPANY will then have the option of interviewing
and testing such proposed personnel, and accepting or rejecting them and the
associated transition plan for assignment to the Contract. COMPANY will not
accept the removal of dedicated personnel from assignment to the Contract for
a transfer by CONTRACTOR to a Contract with another COMPANY unless such
transfer is clearly for the purpose of career advancement for such individual. If a
transfer is required, a time period of up to two (2) months may be required for
the transition to take place. The time required transition will be specifically
described in the transition plan.
Without prejudice to other provisions in this Contract, COMPANY has the right
to reject personnel who, in the opinion of COMPANY, are unqualified or
physically unfit for the work. CONTRACTOR will be required to replace said
personnel with acceptable personnel at no additional cost to COMPANY, in a
timely manner not to exceed four (4) weeks from the date that CONTRACTOR
was so advised.
Temporary replacement must be in point of delivery within 5 working days and
remain until the replacement arrives in point of delivery.
Should CONTRACTOR fail to provide its personnel that meet COMPANYs
quality standards as written, or if said personnel are other than represented, or
if doesnt comply with the terms then COMPANY at its option may terminate
this Contract.
CONTRACTOR shall furnish trained and experienced personnel sufficient in
number and with appropriate qualifications to implement the Contract and meet
its specifications and standards in respect of safety, efficiency and technical
competency. Notwithstanding anything to the contrary in the Contract, is the
responsibility of the CONTRACTOR to ensure that the Contract is being
administered efficiently and effectively and comply with the terms and condition
of the Contract. If additional staffing is required, this will be at the expense of
CONTRACTOR, unless specifically requested and approved in writing by
COMPANY.
CONTRACTOR shall provide suitably qualified technicians for maintenance,
equipment installation, removal, modifications, testing and / or calibrations, and
/ or any other work necessary to keep their equipment in top operational
condition.
Requirement for Medical Check-up is as follows: PA Chest X-Ray, Urinalysis,
Blood Test (blood type, lipids, urea and creatinine, liver function test, test for
hepatitis A and hepatitis B, drug screen, vision and hearing test and ECG.
CONTRACTOR shall perform Medical Check-Up of the CONTRACTORs
person(s) on a twelve (12) month (annual) basis. All valid Medical Check-Up
results are acceptable unless the requirements stated here in are not being
fulfilled.

December

Page 16 of 20

Contract No.

Exhibit B Scope of Services

10.1 Contractor shall provide the following qualified and technically competent
Directional Drilling (DD) and MWD engineers for Company.
TITLE

Coordinator in
Jakarta

Directional Drilling
(DD) Engineer

Measurement
While Drilling
(MWD) or EM
Engineer

Logging While
Drilling (LWD)
Engineer

COMPANY
EXPERIENCE
REQUIREMENTS

CONTRACTOR
SPECIFICATIONS

Must understand
Directional Drilling and
rig operation, including
BHA and drilling
optimization. Must
having experience as
DD.
At least six (6) year
experience for day DD
and four (4) year
experience for night
DD in Oil-Gas Drilling
in Indonesia and or
South East Asia
At least five (5) year
experience for day and
three
(3)
year
experience in Oil-Gas
Drilling in Indonesia
and or South East Asia.
At least five (5) year
experience in Oil-Gas
Drilling in Indonesia
and or South East Asia.

10.2 CONTRACTORs personnel shall carry Approved Passports of Competency

and Work History. Competency Systems and example of assessment
papers to be included in tender submission. CVs shall be supplied for
inspection prior to initial deployment on Company operations. Company
reserves the right to change personnel selection.
10.3 Contractor shall provide the following nominated onshore support
personnel to provide focal points of contact for Directional Drilling and
MWD operations for Company:
COMPANY REQUIREMENT
Operations Engineer to support
Company daily drilling operations
and co-ordinate activities with
the relevant Company drilling
and well evaluation personnel.
Contractor
shall
provide
operations engineer to this
contract.
Engineer
to
have
minimum 3 years experiences
supervisory DD/MWD Oil and Gas
drilling operations.

CONTRACTOR SPECIFICATIONS

At least one experienced Well

Planner with a minimum of 2
December

Page 17 of 20

Contract No.

Exhibit B Scope of Services

years experience as well planner

for consultation and liaison with
Companys Drilling staff on
technical matters, continuously
and over the entire terms of this
Contract. The Well Planner must
have
had
prior
experience
working with interference in multi
platform fields and specific
experience in Oil and Gas well
planning is preferred.
Account Manager to support
contractual, financial and service
quality issues during the term of
the Contract and participate in
monthly
service
reviews.
These onshore support functions shall be provided at no additional cost to
COMPANY.
10.4 CONTRACTOR shall undertake to ensure the continuity of field personnel.
DD/MWD engineers shall be assigned for a period of not less than three
months where applicable and office support functions assigned for a period
of not less than six months for each program. Changes in the assignment
of personnel shall be subject to prior Company approval.
10.5 CONTRACTOR shall at its own cost supply personnel protective clothing to
Contractors assigned personnel to meet all current or future relevant
regulations for offshore work.
10.6 CONTRACTOR shall provide equipment and support in accordance with
drilling program generated by COMPANY. The COMPANY reserves the
right to vary the program or discontinue operations at any time during the
well. Operating procedures for the running of CONTRACTORs equipment
shall be provided to the COMPANY by the CONTRACTOR as and when
required.
Minimum information to include names, experience and educational profile of proposed
DDE, MWD or EM and onshore support functions personnel.

NAME

December

AG

NATIONALI
E
TY

POSITION

TRAINING /
QUALIFICATI
ON

BACKGROUN
D
EXPERIENCE

Page 18 of 20

Contract No.

NAME

Exhibit B Scope of Services

AG

NATIONALI
E
TY

POSITION

TRAINING /
QUALIFICATI
ON

BACKGROUN
D
EXPERIENCE

The CV's for personnel above is attached.

11.0 CONTRACTOR'S BUSINESS ADDRESS
1. Corporate legal name
:
2. Name of executive signing the agreement
:
3.
Title
:
4.
Complete address
:
5.
Telephone number
6.
Telex number
7.
Fax number
:
8.
Payment instruction
(Bank Account)

:
:
:

12.0 STOCK CONTROL

During the course of this Contract should CONTRACTOR be unable to meet
COMPANY's equipment and service requirements, it is the responsibility of
CONTRACTOR to make up the deficiency in supply from an alternate source
(e.g. competitive vendor), with the stipulation that the quality of the product so
supplied is not reduced and the price is not increased. In the event that
CONTRACTOR anticipates a problem in not being able to fulfill his obligation
then it must notify COMPANY immediately in writing to that effect, and at
COMPANY's option this could qualify as grounds for cancellation of the contract
and forfeiture of the Performance Bond.
13.0 SAFETY AND SAFETY PROCEDURES
13.1 CONTRACTOR is to work diligently in keeping with COMPANY's goals to
improve safety, optimize performance, and implement new or revised
procedures as required.
13.2 CONTRACTOR is required to have a Safety Incentive Program in place for
participation of all its employees. Such program will be reviewed and
approved by COMPANY.
13.3 CONTRACTOR is to have written Safe Working Procedures for all
hazardous, potentially hazardous or critical tasks associated with
equipment. CONTRACTOR shall train CONTRACTORs personnel in the
December

Page 19 of 20

Contract No.

Exhibit B Scope of Services

use of these procedures and tasks. Training records shall be made

available for audit upon request by COMPANY.
13.4 CONTRACTOR is to have in place as part of its safety program, a method
of reporting accident near misses. Personnel are to be encouraged to
report all near misses. CONTRACTOR shall provide COMPANY a copy of
CONTRACTORs accident report for any accident reported on any
COMPANY location within 24 hours of incident occurrence.
13.5 CONTRACTOR is to participate in the rigs specific, mandatory, safety
orientation program for all new personnel on site, no exceptions.
13.6 CONTRACTOR must provide both a list of specific safety equipment
provided as well as safety equipment expected from COMPANY.
13.7 CONTRACTOR must
maintenance program.

provide

description

of

its

preventative

13.8 CONTRACTOR is to provide a description of its enforcement and

disciplinary action program regarding safety violations, controlled
substances, and other prohibited items.
14.0 SAFETY RECORD AND TRAINING PROGRAM
14.1 CONTRACTOR shall make available some or all of its personnel assigned
hereunder to participate in safety training conducted by COMPANY at
time place to be determined by COMPANY from time to time.
COMPANY shall bear the cost of such training, including the cost of
training materials, instructor, and meeting room (if such is conducted
outside COMPANY's premises); and CONTRACTOR shall bear the costs
of meal, lodging, transport, and the salaries / overtime wages for its
personnel while they are attending the training, if such are required.
14.2 CONTRACTOR shall present the following data regarding safety records
and crew safety training programs.
14.2.1Injury and illness incident rates, both worldwide and Indonesia, for
a minimum of the past two years.
14.2.2The name and/or position of the CONTRACTOR's representative
responsible for safety issues related specifically to this Contract.
14.2.3CONTRACTOR must provide a list of all safety, health, and
environmental training provided for its personnel and frequency of
this training. Training records shall be kept current and available
for audit upon request by COMPANY.
14.3 CONTRACTOR personnel are required to participate in all rig safety
meetings while on board COMPANY contracted rigs.
15.0 PENALTY CLAUSE
15.1 In the event CONTRACTOR fails to provide its services on the
commencing date after COMPANYs notification, COMPANY shall impose
a penalty of 0.1 % of estimated total contract value of each day
CONTRACTOR delays to provide its services. If the penalty has reached
December

Page 20 of 20

Contract No.

Exhibit B Scope of Services

5% of the estimated total contract value, after fifty (50) days COMPANY as
its discretion may either terminate the Contract or continue applying the
penalty until CONTRACTOR provides its services.
15.2 Tool Failures
All tools must be checked for serviceability when they arrive on the rig
site, a copy of the latest inspection report shall be kept on location all the
time. It is the CONTRACTORs responsibility to inform COMPANYs on
site supervisor of any unserviceable tools, anomalies or problems
immediately.
All rates for particular item will cease from the time a tool fails downhole
until such time as a serviceable tool is run in hole and performing
correctly or replacement tool arrived on the rig site.
Clarifications:
A Field Failure is defined as the occurrence of any of the following events:
- A failure of CONTRACTOR's downhole assembly to provide the
requested measurements, when called upon to do so.
- If a tool does not give repeatable results at a mutually agreed upon
checkpoint. The limits of repeatability for directional tools are :
Azimuth -

within 3 degrees at inclinations greater than 15 degrees,

Inclination within 0.4 degrees for no change in BHA; within 1.0

degrees for a change in BHA;
- Failure by CONTRACTOR to calibrate a downhole assembly within the
required tool specifications. CONTRACTOR shall, if requested by
COMPANY, provide calibration data for each tool.
16.0 PERIOD OF CONTRACT
The period of Contract is 10 (Ten) months effective from April 2015 to January
2016.

December

Page 21 of 20

Contract No..

Exhibit C Contract Price Calculation

EXHIBIT C
Contract Price Calculation

_______________________________________________________________________________________________________________
October 2010

Page 0

Contract No. 61510152-OS

Exhibit C Contract Price Calculation

EXHIBIT C
CONTRACT PRICE CALCULATION

1.0 General Terms and Pricing Conditions

1.1 For satisfactory performance of the Work and Services required in
Exhibit B, including all labor, supervision, technical and maintenance
personnel,
equipment,
supplies,
transportation,
charges,
accommodations, insurance, and any all costs necessary therefore,
COMPANY agrees to pay CONTRACTOR the compensation set forth
in this exhibit.
1.2 It is agreed that the compensation payable to CONTRACTOR shall be
based only on actual usage - the services rendered and itemized
and cost on the job service ticket.
1.3 All of the equipment listed in Exhibit B is not required to be on the
Drilling Unit at all times. CONTRACTOR with COMPANY approval will
specify the particular items needed on the Drilling Unit.
1.4 COMPANY expressly reserves the right to revise the drilling program
as deems appropriate, including increasing or decreasing the number
of wells within the Contract area.
1.5 CONTRACTOR is responsible for maintenance and provision of spares
during normal operations.
1.6 Payment for actual repairs to tools outwit normal wear and tear is
subject to Company's prior approval.
1.7 Redress cost of the tool shall include in rental or mob-demob charges.
1.8 The maximum payable amount for tools will be those that are agreed
on by CONTRACTOR and Company at all times. No additional
charges will be paid for tools when the number of required tools is
exceeded during change out or repair of such tools.
1.9 Blanks or comments such as "included in..." in items tools shall be
interpreted as Zero Rate. Company will not accept the kind of
wording and, will interpret such wording as zero.
1.10Mobilization / demobilization of CONTRACTORs Equipment to
COMPANY Delivery Point and Re-Delivery point if any should be
_______________________________________________________________________________________________________________
October 2010

Page 1

Contract No. 61510152-OS

Exhibit C Contract Price Calculation

included in equipment daily rate. COMPANY will also not pay,

mobilization and demobilization charges for CONTRACTORs
equipment from and to outside country Indonesia.
1.11All repairs, redress, servicing and maintenance are expected to be
carried out by CONTRACTOR. This cost shall include in rental or mobdemob charges.
1.12Field service personnel will work no longer than 28 consecutive days
with a minimum of two weeks off before returning to work.
1.13Consumable items not otherwise provided for under this Contract
shall be reimbursed by COMPANY at cost following submission of
proper support documentation by CONTRACTOR subject to
Company's prior approval.
1.14COMPANY strictly adheres to the Contract value and/or rate specified
in this Exhibit C, and no additional rate applies. The day rate should
be all inclusive and Contractor should not expect to receive any
additional payments related to the services specified Exhibit B.
Company will not make additional payments for necessary
expendables, such as but not limited to; batteries, charts, office
supplies etc. Company will not pay additional costs that are an
integral part of the services performed, such as, but not limited to;
final report, redressing charges, inspection charges, overhead charges
for maintaining an office or equipment. Company will not pay any
hidden costs for equipment that is required or normally considered
part of the services specified in Exhibit B, such as, but not limited to;
handling tools, recording equipment, hazardous condition surcharges
etc. The Contract value is for estimation only. Company is not
obligated to meet the value stipulated in this Contract.
1.15Day shall mean a period of 24 hours beginning at 00:00 hours on
any day and ending at 24:00 hours on the same day.
1.16CONTRACTOR shall be paid for all services performed by
Contractor's Personnel and Directional Drilling, MWD and LWD
Equipment and Services based on the unit rate or charges shown in
this Exhibit C, and in Contractors published price list book attached if
applicable.
1.17Equipment Rental Rate starts when Equipment has been received by
Company at COMPANYs delivery point and valid until the Equipment
is returned to Contractor at the COMPANYs Re-delivery point and not
in operating mode. The Standby Rate shall be prorated for periods of
less than one full day during which they apply.
_______________________________________________________________________________________________________________
October 2010

Page 2

Contract No. 61510152-OS

Exhibit C Contract Price Calculation

1.18Equipment Operating Rate will only be paid while a tool is in hole and
serviceable (can perform all the specified functions). All rates
(operating and rental) for a particular failed tool will cease from the
time that tool fails downhole until such time as a serviceable tool of
the same type is run in hole.
1.19Operating Rate to be based on time equipment is run in hole and/or
below the rotary table. Other equipment charges are based on daily
rental rates.
1.20Personnel charges applies and starts when a specialist arrives at
Company point of origin following COMPANYs call out for departure
to well, and cease when the specialist is back to the COMPANYs
point of return from the well. On crew change only one day rate shall
be applicable for personnel fulfilling the same position.
1.21All tools must be checked for serviceability and correct calibration
when they arrive at the rig site. It is the CONTRACTORs
responsibility to inform Companys on site supervisor of any
unserviceable tools, anomalies or problems immediately. COMPANY
will not be liable for rental charges for unserviceable tools. This
applies to tools that fail during initial surface checks or during in-hole
checks while running in for the first time subject to item below.
1.21.1Mud Motors / MWD Equipment
The following penalty system shall apply in respect of the
Operating rate chargeable for Mud Motors MWD and MWD
equipment.
(i) The Daily Rate and Operating Rate charges for Mud Motors,
MWD and MWD equipment (prorated) shall be zero during
any equipment failure.
1.21.2Clarifications:
(i) A Field Failure is defined as the occurrence of any of the
following events:
A failure of Contractors downhole assembly to provide
the requested measurements, when called upon to do so.

Failure by Contractor to calibrate a downhole

assembly within the required tool specifications.
Contractor shall, if requested by Company, provide
calibration data for each tool.
(ii) A Field Failure shall not include any event described above
if preceded or accompanied by any of the following events:

Presence in the drilling fluid of debris or other foreign

materials (including lost circulation materials) of
sufficient size and/or quantity to cause a malfunction in

_______________________________________________________________________________________________________________
October 2010

Page 3

Contract No. 61510152-OS

Exhibit C Contract Price Calculation

the downhole assembly.

Presence in the drilling fluid of sand or other abrasive
materials in sufficient quantity and/or at sufficient flow
rates to cause unusually rapid erosion of the downhole
assembly.
Jarring operations immediately prior to the failure of a
downhole assembly.
Use of Contractors equipment under environmental or
operating conditions outside those contained in
Contractors Specifications including, but not limited to,
Contractors specifications for temperature and flow
rates.
Mishandling of the downhole assembly by Company or
its Companys third party which occurs when none of
Contractors personnel are present.
An in-hole failure of the downhole assembly which
occurs when none of Contractors personnel are
present.

Note:
1. Any additional services, equipment, materials or personnel not
specifically required by the Scope of Work as specified in Exhibit
B, but nonetheless performed or supplied by Contractor at
Company request, shall be invoiced according to the attached
Current Price List, with 5% discount. The Terms and Conditions, if
any, attached in the Price List SHALL NOT be applicable.
2. For cost control purposes and as part of Company policy,
Contractor is requested to attach the completed Form in its
invoice document any time submitted to Company. One copy of
the completed Form (only) should also be submitted directly to
Procurement Department. Failure to do so resulting in
withholding the current invoice up to the completed is
submitted to Company.
2.0 Equipment Rate Definition
All the daily rates specified thereon are applicable for full calendar days
and parts thereof shall be billed as full calendar days.
2.1. Mobilization - Demobilization:

Mobilization and Demobilization of personnel applied each well.

For the first well, equipment stand by cost until spud the well (bit
below rotary table) should be included in Mobilization cost.

2.2. Operating Rate:

Operating rate for each section hole start from RIH the first BHA (bit
below rotary table) and stop when the BHA pulled out (bit above
rotary table). The rate shall be counted prorate hourly.

_______________________________________________________________________________________________________________
October 2010

Page 4

Contract No. 61510152-OS

Exhibit C Contract Price Calculation

2.3. Moving Rate:

Daily Moving rate shall be applied during Rig Down, Rig Move and Rig
Up between wells, including skidding rig if applicable.
Rig activity after the last BHA of last hole section run is pulled at
surface.

2.4. Standby Rate:

Standby rate shall be applied outside point 2.1., 2.1., 2.3. respectively.
2.5. Tools Break Down Rate:

In event at tool failure, replacement tool must be delivered to rig site

within 24 hours. Failure to do so will result in 50% reduction on all
rates for that hole section.

The Equipment Rental Charges could be simulated as follows:

No
1
2
3

Rig Activity

Movin
g Rate
Yes

Rental
Rate

Operati
ng Rate

Remark

Rig Move, Rig Up

Drill 26 Hole
Yes
Yes
Run 20 casing,
Yes
cement and BOP
4
Drill 17-1/2 Hole
Yes
Yes
5
Run
13-3/8
Yes
Casing,
cement
and BOP
6
Set Cement plug,
Yes
Apply
ST
and/or
open
rental
window
charge
7
Drill 12-1/4 Hole
Yes
Yes(*)
8
Coring
Yes
9
E-Logging
Yes
10 Run 9-5/8 casing,
Yes
cement and BOP
11 Drill 8-1/2 Hole
Yes
Yes(*)
12 Run
7
Liner,
Yes
Cement and BOP
13 Completion
Yes
14 Production Test
Yes
15 RD & Release Rig
Yes
Note (*): if MWD and Mud Motor are not run, Operating Rate
shall not be applied

3.0 Contract Value Estimation

3.1.Any LIH charges shall be reimbursed for individual tool left in hole
refer to LIH prices with 20% depreciation per year.
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October 2010

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Contract No. 61510152-OS

Exhibit C Contract Price Calculation

3.2.Detail contract value estimation:

Equipment Mob-Demob Cost
No

Description

Mobilization

De-Mobilization

Unit

Quantity
a

Lump
sum
Lump
sum

1 Times

Unit Price,
USD
b

Total, USD
c=axb

1 Times

Sub Total Mob-Demob

Rental Cost
No
Description

Daily
Rental

Operati
ng Hour
Rate

a
b
1

26 Hole
Section, w/o
MWD
2
17.5 Hole, w/o
MWD
2
17.5 Hole, w/
MWD
3
12.25 Hole,
w/o MWD
4
12.25 Hole, w/
MWD
5
8.5 Hole, w/o
MWD
6
8.5 Hole, w/
MWD
Sub Total Equipment Rental

Est.
Rent
al
Days
c
44

Est.
Operatin
g Hours
d

44

94

112

188

44

191

112

381

44

62

112

275

Total, USD
e = (a x c) + (b
x d)

45

Personnel Cost
No

1
2
3

Description

Mobilization
Directional
Driller
Demobilization
Directional
Driller
Directional

Unit

Lot/Perso
n

No Of
Perso
n
a
2

Unit Price,
USD/Man/Da
y
b

Est.
Days
c

Total, USD
d=axbxc

2.5

Lot/Perso
n

2.5

$/Day/Ma

97

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October 2010

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Contract No. 61510152-OS

4
5
6
7
8
Sub

Exhibit C Contract Price Calculation

Driller, Day
n
Directional
Driller, Night
Mobilization
Lot/Perso
MWD Engineer
n
Demobilization
Lot/Perso
MWD Engineer
n
MWD Engineer,
$/Day/Ma
Day
n
MWD Engineer,
$/Day/Ma
Night
n
Total Personnel Charges

Consumable Item
No
Description
1
MWD Module
2
Single Shot Film
Sub Total Consumable Item

65

65

65

Unit
5
20

Price

Total Price

Estimated Total Contract Prices

No

Description

Sub Total Mob-Demob

Sub Total Equipment Rental

Sub Total Personnel Charges

Sub Consumable Item

Allocation for Lost in Hole

ESTIMATED TOTAL CONTRACT PRICES

Total Cost, USD

10,000

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October 2010

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Contract No. 61510152-OS

Exhibit C Contract Price Calculation

Summary of contract expenditure form: CONTRACTOR should include

Summary of contract expenditure form attached with invoices:

SUMMARY OF CONTRACT EXPENDITURES FORM

Contract No. : _____________
(Title: _______________________________)
Period Ending:_________________________
Invoice No.: ______ Date:_______
CONTRACTOR shall complete the following information, anytime invoice to MNL,
and submit directly to Procurement Dept.
a. Contract Period:
form _________ to ________
b. Amount of this Invoice:
_____________
c. Total amount of all previous invoices:
____________
(Including invoices submitted but not yet paid).
d. Invoice to date (b + c):
____________
e. Estimated value of work not yet invoiced: ____________
f. Total Estimated Contract Value:
_____________
(Including Amendment/variasion etc. if any)
g. Balance of Contract Value (f-e-d):
_____________

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October 2010

Page 8