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MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

2015

GUIDE DE CERTIFICATION OF
DRILLING MAST & SUBSTRUCTURES

Christian MABAYA
Caroil Drilling
08/04/2015
MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

INTRODUCTION
Services Limited is an oil and gas industry service company providing a variety of construction
services to Drilling Contractors and Operators, including the design, manufacture, erection,
dismantling, upgrade, repair and inspection/survey of drilling structures both on offshore
installations and land rigs on a worldwide basis.

THIRD PARTY REQUIREMENTS

Quality Management System - The Quality Management System (QMS) established by This
document has been designed to meet the requirements of BS EN ISO 9001: 2000 and API
Specification Ql Seventh Edition: 2003, and provides effective means of ensuring that the services
and products provided by the Company conform to specified requirements.

Accredited approval of the Quality Management System to BS EN ISO 9001 and API Spec Ql has
been awarded by the American Petroleum Institute Quality Registrar (APIQR). QMS approval is
valid for the following product and service range:-

" Design, Manufacture, Repair, Upgrade, Installation and Decommissioning of Hoisting Equipment
and Drilling Structures; Provision of Rig Audits and Inspection/Survey Services".

API Licensed Manufacturer - The ISO 9001 approval of the Quality Management System
supplements the API 4F and 8C Product Licenses held by and to which the company designs and
manufactures oil-field drilling structures and hoisting equipment for an international customer base.

Authorization from API to apply the official API Monogram, demonstrates that the Quality
Management System, inclusive of process controls relating to the manufacture of drilling structures
and hoisting equipment, has been assessed by API and found to be in compliance with the
requirements of API Specification Ql and Product Specification Nos. 4F and 8C.

References:

BS EN ISO 9001:2000 Quality Management System-Requirements

API Specification Ql : 2003 Specification for Quality Programs for the Petroleum,
Petrochemical and Natural Gas Industry.

API Specification 4F Specification for Drilling and Well Servicing


2nd Edition 1995 Structures

API Specification 8C Specification for Drilling and Production Hoisting


4th Edition 2003 Equipment (PSL 1 and PSL 2)

Company's ISO 9001 Registration and License Certificates.

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MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

1. WORKSCOPES

This scope is based upon undertaking the necessary work scopes to inspect Rigs in accordance with
API 4G, category III or IV, and to carry out an Third Party Engineering study to verify/certify that
the capacity of the Masts and Substructures is in accordance with API 4F, 3rd edition.

The work scope to achieve this is as follows

1.1 API CAT III or IV INSPECTION

A. Category III Inspection

This scope is based upon undertaking Category III or IV Inspections of the mast and substructures,
subject to instruction from yourselves. It should be noted however, that in order to undertake a
Category IV inspection it is necessary to remove and dismantle the crown cluster assembly, and to
remove the coating from critical welds and carry out NDE to those welds. Therefore, it is only
possible to carry out a Cat IV inspection when the rig is taken out of service for a while whilst such
inspections are carried out.

The industry standard is for Cat III inspections to be carried out every 5 years and Cat IV to be
carried out every 10 years.

Subject to your instructions of course, we would propose to carry out inspections on the masts and
substructures. In addition, so as to verify the capacity of Rigs it will carry out an Third Party
Engineering study, as detailed below, and, upon successful conclusion of that Third Party
Engineering study, to provide customer with both the certification and the documentary evidence that
verifies the capacity of the structures to API 4F & 4G.

Third Party, as an API 4F & 8C accredited company, are qualified to both carry out the
proposed inspections.

Mast & Substructure API Inspection to Category III

A comprehensive examination of the Mast, Substructure and accessories will be systematically


carried out and recorded in accordance with API RP4G Category III.

Ref: API Recommended Practice 4G -Third Edition -2004


Recommended Practice for Use and Procedures for Inspection, Maintenance, and Repair of
Drilling and Well Servicing Structures. Ref: API 4F

A thorough visual inspection of ail load bearing components and members shall be conducted in
order to determine the condition of the structure. The Inspection typically focuses on areas, of
damage, fatigue, (actual or developing), corrosion, joint configuration, visual inspection of bolted
connections, critical welds and signs of adverse or extreme loading to the structure.

It will be helpful if any existing drawings of the rigs are made available to THIRD PARTY
and/or the inspectors for reference in order to assist in recording inspection findings.

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MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

A 100% visual inspection will be carried out on all structural bolts to ensure the assemblies are
complete in number, are of recognized standards and sound, 10% will be subject to tightness check.
It is generally recognized that when a structure has been exposed to any of the following conditions
then additional inspection of the structure is recommended to be carried out:
Where the Derrick is used regularly in the upper range of its load limits.
When the Derrick has been subjected to critical conditions which could affect safe performance.
When obvious deterioration has occurred, i.e. loose bolts/fixings damaged structural members
or equipment.

Any areas that fail to meet the acceptance criteria due to weld/material failures will be brought to the
attention of the client for necessary corrective action.
In the event that the Inspectors discover any issue that they require a second opinion on, the issue
will be referred back to THIRD PARTY Third Party Engineering and a qualified Engineer will be
designated to review the issue and respond before the completion of the Inspection, where
practically possible.

Upon completion of the inspection, and following review of inspection report findings by the
THIRD PARTY Inspection Department and Third Party Engineering Department, THIRD PARTY
shall issue a formal report detailing ail findings and recommendations, if any.

The duration period for inspection of each Land rig is estimated to be 3 days plus mobilization and
demobilization, however consideration should be taken into account for any site operational
restrictions and assumes that customer lab our will be available for assisting with preparation work-
scopes etc.

CERTIFICATION

THIRD PARTY Senior Inspector will carry out rig inspections and will review ail inspection
reports, records, and certification relating to any subsequent repair and/or modification work scopes.
A Certificate of Compliance will be issued attesting that such inspection and repair/modification
work has been satisfactorily completed in accordance with controlling codes and standards.

B) Category IV Inspection

The work scope for the category IV inspection will be similar to the Cat III inspection mentioned
above, with the following additional work scopes;
Client to arrange for the equipment to be inspected to be dis-assembled and cleaned to the extent
necessary to conduct NDT of ail defined critical areas.
Critical area is defined as: a highly stressed region of a primary load carrying component.
NDT shall be arranged by Client and carried out by others on ail critical areas using Magnetic
Particle Inspection (MPI) and visual inspection. MPI and visual inspection techniques and

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MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

Acceptance criteria shall be in accordance with AWS Dl. 1 2004. Client to make available NDT
reports for review by THIRD PARTY Inspector.

Areas of the Mast and Substructure that will typically be identified as "Critical Areas" includes but is
not limited to;

Crown Cluster (sheaves, shafts, pillar blocks, bearings etc.)


Crown Fast line Assembly (if any)
Crown Frame
Base Shoe Assembly
Raising System Components and associated structural elements (A frames etc.)
Leg Splice Pad eyes
Racking Board Connections
Rotary Beams & Supports
Setback Spreader
Drawworks Elevator
Deadline Anchor Foundations

The exact list of items is subject to each model of mast/substructure

Any areas that fail to meet the acceptance criteria due to weld/material failures will be brought to the
attention of the client for necessary corrective action.
If you intend to commence sand blasting prior to arrival
of inspection personnel, - whilst this causes no problem for inspection purposes care should be
taken whilst removing coatings to prevent damage to and consideration should be taken into
account for preparation of areas for application of protective coatings on completion of inspection
activities and any remedial works).

In addition, any accessories and/or accessories to the structures shall be assessed for their condition
and their attachment to the primary structure.

The condition of each item inspected shall be recorded systematically and the final inspection report
will include the recommendations as to any repairs and/or replacements which may have to be
carried out.

THIRD PARTY will require if available structural drawings of the mast and sub-structure in order to
correctly record and mark up inspection findings and for ease of reference for any required
rectification works.

C) Inspection Reporting & Certification of the Derrick

The reporting formats utilized by THIRD PARTY compliments the requirements of Recommended
Practices of API, and ensures that a comprehensive and critical examination of equipment is
systematically carried out and that any visible or potential defects and adverse conditions giving
concern to the safety of the operating personnel and/or the integrity of the equipment are formally
recorded and brought to the attention of the client for the necessary rectification.

Upon completion of the inspection, and following review of inspection report findings by the
THIRD PARTY Inspection Department and Third Party Engineering Department, THIRD PARTY
shall issue a formal report detailing ail findings and recommendations?

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MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

The reports will be supported by photographs with narrative description.

Ail reports are reviewed by the Inspections Department and Third Party Engineering Department
prior to issue to client in order to comment on or qualify any particular area of concern prior to issue
to the client. Following completion of API RP 4G inspection activities of the structure and on review
of findings and satisfactory completion of any remedial works as identified in accordance with
industry standards THIRD PARTY can issue a certificate of conformance stating that the items
repaired/replaced are in accordance with the requirements of API 4G.

Upon successful completion of the remedial works and reassembly of the crown, THIRD PARTY, as
an API 4F licensed company, will issue a certificate confirming that the derrick is compliant with
its applicable operating criteria/design.

Technical Information

Any technical information regarding the Third Party, and a copy of the most recent inspection report
carried out will be useful in the preparation of the inspection, and may help to reduce the duration of
the inspection.

Optional Work scopes

If you require we can also carry out a Dropped Object Survey of the Derrick, Substructure and the
rest of the rig, should you so require?

2. THIRD PARTY ENGINEERING STUDY FOR THE VERIFICATION OF THE


MAST SUBSTRUCTURE CAPACITY

This scope is based upon THIRD PARTY undertaking an Third Party Engineering Study so as to
establish the integrity and capacity of the Mast & Substructure on land Rigs and to provide Client
with the verification and certification confirming its operational capacity in accordance with API 4F,
3rd Edition.

Site Survey

So as to enable us to establish a computerized model of the rigs we will need to carry out a survey
of the structures on Rig to determine all the applicable dimensional data and geometry. We will also
measure the thickness of any tubular/hollow section for confirmation.

Third Party Engineering Study

Upon award of contract we will require the full operational and environmental capacity of the
structure to be provided by Client.

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MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

We will then incorporate this information into the Design Brief document that will be presented to
yourselves for review/approval prior to us starting the analysis. This document will avoid the
possibility of confusion and/or dispute as to the correct load conditions to be applied.

Upon completion of the survey the applicable information shall then be used to generate the
computerized model of the Mast and Substructure.

THIRD PARTY shall carry out the various analysis of the Mast & Substructure including
Maximum Operational, Survival, Standby and the Mast/Substructure raising sequence.

Once our Third Party Engineering Study has been completed we shall at the end of the exercise
issue you with a full report of the analysis. The report shall be formatted with the following
sections:

Section 1 - Conclusions
Section 2 - Introduction
Section 3 - Summary
Section 4 - Design Brief Document
Section 5 – References

Appendix A - Model Geometry


Appendix B - Loadings
Appendix C - Computer Model
Appendix D - Reactions and Displacements
Appendix E - Usage Ratios
Appendix F - Model Drawings
Appendix G - Detail Design Calculations

The analysis of the mast structure shall be utilized to verify the operational capacity of the structure
to API 4F and will provide you with a Qualified and documented report of the structure and
qualified confirmation of its abilities to absorb the applicable loadings during drilling and
operational activities.

THIRD PARTY will issue a new name plate for the Mast and Substructure indicating the revised
loadings in accordance with API.

Existing Damage or Defects

If the masts and/or substructures have any existing damage or defects to the primary load bearing
members of the structures, it will be necessary to correct any such issue so as the Third Party
Engineering Study
Accurately reflects that the structure is in good condition.

3. INSPECTION/SURVEY PERSONNEL & DURATIONS

The durations for the inspections of the Rig to Cat III inspections will normally be 2-3 days per rig.
Cat IV inspection on average take 4-5 days, subject to the preparation of equipment for inspection.

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MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

The survey of Electrical land Rigs will take approximately 5-7 days each, subject to access to the
rigs, if they are working at the time of the survey.

4. SUPPLY OF MISSING DRAWINGS

We can re-create any drawings that you require for any of the rigs. However, in order to price this we
need to know what you need or what is missing. We would then propose to gather the relevant
information during the site survey that will enable us to provide the replacement drawings.

We can also do rig raising/lowering procedures, schematics, electrical diagrams, just let us know
what you require.

Please note that subject to the amount of drawings that you need re-created it may extend the
durations of the surveys but we will be able to advise once we know what you need. We will then
price this requirement accordingly.

5. COMMERCIAL

THIRD PARTY proposes to undertake the above mentioned work scopes as follows;
API Inspections & Survey of Structures

Personnel Rates

THIRD PARTY propose to supply a Senior Inspector to carry out the above mentioned Inspection
work-scopes on a day rate basis at the following rates.

1 x Senior Inspector per person per 12 hour day shift inclusive of meal breaks. Any overtime hours
recorded will be charged per hour.

1 x Assistant Engineer per person per 12 hour day shift inclusive of meal breaks. Any overtime
hours recorded will be charged per hour.

PPE is inclusive of the above mentioned rates.

Day rates in respect of provision of personnel shall be chargeable from date of departure from
THIRD PARTY facility until the date of return there to.

Mobilization, demobilization and down time due to operational conditions and/or inclement weather
or any other delay beyond the control of THIRD PARTY will be charged at the applicable day rate.

Travel related costs, accommodation and meals will be recharged at cost plus 10% handling.

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MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

Inspection Report Costs

Compilation and supply of the Mast, Sub-structure report summary in PDF format will be charged at
client per rig and will comprise of inspection results, photographs and narrative description where
applicable. The report will be provided in electronic and hard copy.

Third Party Engineering Study

Our lump sum price for the Third Party Engineering study of Rig will be charged to client.
Our lump sum price for the report for Rig will be to client.

Additional Third Party Engineering

The above mentioned price assumes that the rigs will be found to accommodate the loads for which
you intend to use them. In the event that there is any weakness/overstress found in the structures that
requires additional Third Party Engineering to adjust for any such overstress we will discuss any
additional Third Party Engineering man-hours with you at the time.

New Name Plates

Supply of two new stainless steel name plates for the masts and substructures for each rig, at client
charge per rig.
Replacement Drawings
To be costed once work scope is determined

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MAST & SUBSTRUCTURE INSPECTION/VERIFICATION DRILLING RIGS

6. STANDARD TERMS AND CONDITIONS

The following terms and conditions as detailed within the personnel rates and equipment rates and
as detailed below apply with this offer:

Mobilization of personnel and equipment is subject to receipt of confirming Purchase Order


reflecting this offer along with the applicable terms and conditions, unless agreed otherwise.

Client to provide ail work scope direction/preparation, transport, security, any medical assistance,
accommodation and meals free of charge to THIRD PARTY personnel from departure time at
nominated departure point to return there to.

Mobilization, demobilization and down time due to operational conditions and/or inclement weather
or any other delay beyond the control of THIRD PARTY will be charged at the applicable day rate
for personnel and equipment.

All travel related costs, accommodation and out of pocket expenses, supported by Third Party
invoices/receipts will be charged at cost plus 10% handling charge.

Where previously notified mobilization dates are cancelled or delayed within 72 hours of the
notified mobilization, a standby rate of 50% of the day rate for each person shall be paid by client
due to the late cancellation. In the event that the company wish for the same personnel to be made
available for a revised date the standby rate shall remain in effect unless agreed otherwise.

A standby rate of $600.00 per day for each person shall be paid by customer in the event that
personnel are put on standby at the request of customer at their home location due to delayed
mobilization or in preparation for mobilization yet to be confirmed and will remain in effect until
mobilization unless agreed otherwise.

This offer assumes that the masts and substructures are able to accommodate the loads for which
they are assumed to be rated and that no additional Third Party Engineering is required due to
member failure/overstress. In the event that additional Third Party Engineering is required, any such
additional time shall be subject to additional costs.

Customer shall arrange and supply ail in-country transport, accommodation, security and associated
incidentals for the inspection/survey team, free of charge.

Ail rates quoted are in US Dollars and payment of invoices is to be in same currency.

Rates and prices quoted above are exclusive of any withholding tax, additional taxes and or levies
and will be charged as applicable.

The above mentioned durations are not inclusive of any additional duration to attend to any repairs
etc. that you may require us to perform and/or supervise.

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