Rotary Drilling CO. Maintenance Policy and Procedures

1. Policy

1. 1. Philosophy

The philosophy which will apply to Maintenance on the rigs, can be summarised by the following statement: “Equipment will be maintained in a cost effective manner, such that there is no deterioration of that equipment with respect to time”.

1. 2. Objectives

In order to meet the requirements of the above philosophy, the following objectives must be achieved:

1. 2. 1. Preserve the asset value of the equipment by Programmed Maintenance, designed to minimise wear and deterioration.

1. 2. 2. Minimise downtime of Rig, Equipment and Machinery due to breakdown or malfunction.

1. 2. 3. To wherever possible, improve the performance, operability or urability of the Rig and Equipment.

1. 2. 4. Develop and supervise a Programmed Maintenance System, ensure its proper implementation, frequently audit progress and use, and prepare reports of findings.

1. 2. 5. Meet the requirements of operations in the event of a breakdown or failure, and to recommend such steps as will prevent reoccurrence.

1. 2. 6. Meet Contractual Obligations by providing Documented evidence of Maintenance and Certification of equipment.

1. 3. Key Elements

To meet the objectives set down, the following should be regarded as the Key Elements of Maintenance of the rig:

1. 3. 1. There will be a Maintenance System set up, which will consist as a minimum of the following:

a. A Maintenance Procedures Manual will be drawn up for the rig.

b. A weekly chart shall be produced to schedule the Maintenance Procedures.

c. A Job Card System will be implemented to operate and Control the program.

d. A Maintenance Inspection Record will be kept, this will alsoinclude Unscheduled Maintenance/Equipment Failure reports. In addition, the following will also be regarded as Key elements:

1. 3. 2. All scheduled maintenance as far as possible, shall be performed without disruption to normal operations.

1. 3. 3. An adequate stock level of spare parts should be maintained.

1. 3. 4. Maintenance Personnel at all levels should be trained and experienced for the positions they occupy.

1. 3. 5. There will be adequate manning levels to run the maintenance system.

1. 4. Responsibilities

1. 4. 1. It will be the responsibility of the company to ensure safe working practices, and comply with legislative and regulatory requirements.

1. 4. 2. It will be the responsibility of the company to ensure adequate manning levels to operate the system.

1. 4. 3. It will be the responsibility of someone, not at the rig site, to control and monitor the Card System of the program. For instance the rig manager in Damascus.

1. 4. 4. It will be the responsibility of someone at the rig site to administer, and delegate the Planned Maintenance Task Sheets. For instance the Chief Mechanic/Electrician.

1. 4. 5. It will be the responsibility of the delegated person to ensure that all aspects of the Planned Maintenance Task Sheets are completed and returned.

1. 4. 6. It will be the responsibility of the Maintenance Department of the company, to provide support for the operation of the system in the following areas:

a. Provision of tools and equipment for the tasks to be performed.

b. Ensure that full and adequate reports are compiled and maintained.

c. Establish an optimum level of spare parts inventory for operational requirements.

d. Participate in performance evaluation of rig mechanics and electricians, make recommendations for promotion, demotion and disciplinary action.

1. 5. Maintenance Procedures

The following documentation is required for the implementation of the
maintenance system:

1. 5. 1. Maintenance Procedures Manual. This will consist of Planned Maintenance Task Sheets for each piece of equipment, each sheet shall have a number, and detailed tasks to be performed at a given interval, for example, monthly, quarterly, etc.

1. 5. 2. Maintenance Schedule Chart. This chart collates all periodical tasks on a weekly basis, week 1 to week 52.

1. 5. 3. Equipment Inspection Card. These card form the basis of the monitoring and control systems, sent to the rig as per maintenance schedule, they will identify which task sheet has to be performed, once completed, the card and task sheet are returned to the office where any relevant data will be added to the history file.

1. 5. 4. Equipment Repair/Failure Report. This report shall be used to record any unscheduled maintenance, again, any relevant data to be added to history file.

1. 5. 5. Daily Engine Log & Weekly Pump Report. These report are now being included on a machinery weekly operations report.

1. 5. 6. Daily & Weekly Responsibility Matrix For Each Individual Crew Member.