Dropped Object Prevention Program Prevention, Operations Excellence, Continuous Improvement

Tesco CorporationFM-HSES-20-2 Rev Date: 12/04/2013

1. About TESCO ......................................................................................................................... 3

2. How Important is Safety to TESCO? ...................................................................... 4

3. “Status Quo is Not an Option” .................................................................................. 5

4. Scope .......................................................................................................................................... 6

5. Objective .................................................................................................................................. 6

6. TESCO’s Definition of Dropped Objects............................................................. 7

7. Why Does TESCO Need a Dropped Object Prevention Program? ... 8

8. Our Strategy .......................................................................................................................... 8

9. What Causes a Dropped Object? ............................................................................ 8

10. What Are the Potential Effects of a Dropped Object? ............................. 9

11. Risk Calculator ...................................................................................................................... 9

12. How is TESCO Preventing Dropped Objects? ............................................. 10

13. Identification Tools ........................................................................................................ 10

14. Hazard Hunts ..................................................................................................................... 11

2

Contents

3

Mission

Vision abOuT TESCO

To become our customer’s strategic partner in eliminating Non-Productive Time (NPT).

To be acknowledged by our customers as the premier drilling services company.

•MovefrombeingaTopDriveonlyAMSS companytoafullrigmaintenancecompany

•Movefromacall-outCDS™Service Companytoafulloffering,broadbased tubular services company

•MovefromaTopDriveonlyproductsales companytoafullrigmechanization products company

Dropped Objects Prevention Program

Safety SafetyisoneofthreerootsthatmakeupthefoundationofourCulturalValuesTree.

ThevisionoftheDroppedObjectPreventionProgramistocreateadrop-freeworkplaceto increasethesafety inourworkshopsandfield locations.Thiswillbeaccomplishedthrough:

• Awarenesscampaignsandtraining

• Preventativeinspectionsand aggressive tool inventory

• 3rdpartysupplierawarenessof DroppedObjectPrevention

• DroppedObjectPrevention Committeesthatactasguardians to ensure implementations and corrective actions

The vision of the Dropped Object Prevention Program is to create a drop-free workplace to increase the safety in our workshops and field locations.

4

HOw iMPORTanT iS SaFETy TO TESCO?

Safety

5

“Status Quo is not an Option” Driven by our commitment to safety, the purpose of this program is to protect ourpersonnelandclientsfromdroppedobjects.TheimplementationoftheDroppedObjectPreventionProgramisintendedtoguideandassistouremployeesinidentifyingpotentialDropped Object hazards and provide solutions and recommendations formitigatingDroppedObjectpotentialrisk.

As such, the overall goals of our Dropped Object Prevention model are to:

• TrainouremployeesandcommunicatetheDroppedObjectPrevention methods and tools

• PreventinjurytoourpeopleasaresultofaDroppedObject

• Preventtheincidenceoflosssustainedinlocationsgloballyduetodropped objects

• Preventdamagetoequipmentduetodroppedobjects

• FosteraSustainable-Accident-Free-Environment(SAFEWAY)appropriatetoour activities and our people

Dropped Objects Prevention Program

• WhatamIabouttodo?• HowamIgoingtodoit?• WhatdoIneedtodothejob?• Howcan Ibeinjured?• WhatamI goingtodoaboutit?• Hasmytaskchanged?

“The SAFE WAY” Planning Process

6

Objective

This Dropped Object PreventionProgram describes how to proactively mitigate theoccurrenceofdroppedobjects through raising awarenessfrom the Research & Developmentstage to the Field Operations. ThecontentofthisbookletappliestoallTESCO personnel and contractorsworkinginTESCOlocations.

The basis of this program has beenadoptedfromindustrybestpracticesand theDroppedObjectPreventionScheme (DROPS) online material.TESCOisanactivememberofDROPS.

Visitdropsonline.org to learn more.

TheobjectiveofthisprogramistoguideouremployeesonDroppedObjectawarenessandprevention through:

• IdentificationandunderstandingofpotentialDroppedObjecthazards

• FormingaTESCODroppedObjectPreventionCommittee,withemployeerepresentationinalldistrictsandregionstoensurefocusandsustainabilityoftheTESCODroppedObjectPreventionProgram

• RaisingemployeeawarenessofDroppedObjectrisksandpotentialconsequences

• Providingmitigationtechniquestopreventdroppedobjectsfromhappening

Scope

7

Objective

TESCO’s Definition of Dropped Objects ForTESCO,adroppedobjectis“anyobjectthatfallsfromanelevatedposition,whetherstatic or dynamic.”

Further definition of Static Dropped Objects and Dynamic Dropped Objects are asfollows:

• StaticDroppedObject:Anobjectthathasfallenfromastationaryposition

• DynamicDroppedObject:Anobjectthathasfallenasaresultofbeingstruck byanotherobjectorinvolvedinacollision

Scope

Dropped Objects Prevention Program

8

why Does TESCO need a Dropped Object Prevention Program?

what Causes a Dropped Object?

Our Strategy

TESCO cares about our employees and all personnel involvedwith our equipment andoperations.Statisticsshowthatdroppedobjectsareamongthetop3causesoffatalityandseriousinjuryintheOilandGasIndustry.Likewiseinallindustries,droppedobjectsaccountfor35%ofallsafetyrelatedincidentsand80%ofHighPotentialIncidents(HiPo’s).

The consequences of a Dropped Object can include:

• PersonnelInjury/Death

• DamagetoEquipment

• StructuralDamage

• EnvironmentalDamage

• PoorPlanning

• PoorDesign

• PoorHousekeeping

• PoorMaintenance

• LackofRiskAssessmentTools

• NoRegularInspectionProcedures

• CarryingEquipmentatHeight

• ScrapandDebrisLeftAloft

• NoLanyardsonToolsUsedatHeights

• ImproperlySecuredLoads

This Program was founded on three basis: “Prevention, Operations Excellence andContinuousImprovement”.Withthisinmind,theaimistoadoptanemployeeculturethatproactively looks to identifydroppedobjecthazards, communicate the risks, implementsolutions,andmonitortheireffectiveness.

why Does TESCO need a Dropped Object Prevention Program?

what Causes a Dropped Object?

Our Strategy

what are the Potential Effects of a Dropped Object? ADroppedObjectcan result inminor to serious injuryorpotential fatality.Evena smallobject falling from height can result in disability or fatality. Risk calculation is crucial toensureeffectivecorrectiveactions.

TESCOhasadoptedinternationallyrecognizedstandardstoensurethatthebestpracticesfromtheindustryareputinplace.TheDROPSCalculatorisusedtodeterminethepotentialharmtotheindividual,iftheitemweretodrop,basedonthemassoftheobjectandtheheightfromwhichitcouldpotentiallyfall.

Dropped Objects Prevention Program9

Risk Calculator

The DROPS CALCULATOR IS A GUIDe ONLY providing cursory indication of possibleoutcome.

Withlightobjects(<0.1kg)akeyinfluencingfactoristheeffectofanobjectpunchingtheskinanddamagingtissue/organfunctions.Thecalculatorassumesabluntobjectsoisnotcompatiblewithbrokenglass,metalshardsetc.

ThewearingofstandardPPE,e.g.hardhat,safetybootsandeyeprotection,isassumedinthe calculator.

TheDROPSCalculatorisusedbysimplyplottingthemassofadroppedobjectagainstthedistanceitfallsto.

CourtesyofDROPSonline

10

How is TESCO Preventing Dropped Objects?

identification Tools

Hand Tools for working at Height

This Program aims to raise the awareness with regards to potential Dropped ObjecthazardswithinTESCO,ourvendorsandourclients.Oncethehazardisidentifiedthegoalistodeterminewhatmeasuresarenecessarytoremovetheimmediatehazard(eliminate,substitute or control) and what long term measures are necessary to ensure that the risk is permanently eliminated.

CommunicationiskeytothesuccessoftheDroppedObjectPreventionProgram.TESCOhasputinplaceaDroppedObjectPreventionCommitteeconsistingofemployeeswithineach of our districts and regions. The committee meets monthly to discuss droppedobject incidents,hazardhuntfindings,action itemsand industrybestpractices. It isalsothe responsibilityof the committee toensure that adequate communicationmaterial isavailableanddisplayed(DROPSposters, toolboxtalks,DROPSalertsetc.).ContactTESCO QHSEtolearnmoreaboutthecommittee.

Nomatterwhereyouwork, the riskofaDroppedObject ispresent. If the risksarenotidentified,thenincidentsandinjuriescanandwillhappen.TESCOhasimbeddedDroppedObjectPreventionawarenessremindersintoseveraloperationalprocessestoensurethatthepotentialdroppedobjects arebeing identified.Thisprogram integrates easilywithourJSA’s,theSAFEWAYProcess,equipmentinspections,andtool&equipmentinventory.

Inaddition,ourResearchandDevelopmentandSustainingEngineeringteamshavebeeninvolved in the conceptionof theprogram to ensure thatDroppedObject Preventionpotentialisattheforefrontofthought.Beginningattheconceptualdesignphasethroughtothemanufacturingphase.

Toeliminatetheriskofdroppinghandtoolswhenworkingatheight,TESCO has implemented specially designed hand tool kits. The kits consist of a tooling bag; tool lanyardsand tools intended for working at heights. The tools aredesigned to enable user freedom and maintain productfunctionality but continue to safely control the tools.Thekititselfisdesignedwithtoolcontrolfoamwhichprovidesquick visual inventory control and all tools are engravedwith TESCOandthekitnumberforeasyidentification.

How is TESCO Preventing Dropped Objects?

identification Tools

11

Hazard Hunts TESCO has implemented, as a proactive measure, hazard hunts in all our facilities andworksites. These hunts are aimed towards potential Dropped Object identification andprevention.

TESCOistrainingemployeesandbringingawarenessoftherisksregardingdroppedobjectsontherigs,intheworkshops,andwithinofficeareas.Oncehazardsareidentified,employeeswill be guided as to how to put corrective actions in place to remove the risks completely or mitigatethemeffectively.

Dropped Objects Prevention Program

www.tescocorpcomQHSE@tescocorp.com

©2013 Tesco Corporation. All rights reserved.