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Safe, effective, trouble-free operations

IADC Conference Bucharest Continuous Improvement- The KCAD Perspective May 23rd 2012

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Onshore fleet of more than 65 rigs 32 offshore platform drilling

contracts Owner and operator of 3 jack-ups

and 3 SET barges RDS engineering division of 400+

engineers Sister company Bentec - leading

land rig builder and equipment manufacturer

Employs more than 8,000 staff in 22 countries

2010 Group Turnover US$1.34 billion

To be the preferred Drilling Contractor through measurable performance improvement

KCA DEUTAG Mission Statement & Overview

Onshore and Offshore Rig Locations

Norway 9 platforms and

Modular Rig Azerbaijan 6 Platforms

Offshore Operation(s) Onshore Operation(s)

Germany 6 Land rigs

Nigeria 7 Land rigs

JU Ben Avon

Kazakhstan 1 Land rig

Libya 15 Land rigs

Oman 7 Land rigs Gabon

1 Land rig

UK North Sea 17 Platforms

Angola 1 Platform

JU Ben Rinnes

Sakhalin 3 Platforms

Brunei 1 Land rig & SET Global

Emerald

Russia 12 Land rigs

Pakistan 2 Land rigs

Mexico JU Ben Loyal

France 1 Land rig

Algeria 3 Land rigs

Malaysia SET Global Sapphire

Portugal 1 Land rig

Iraq 3 Land rigs

Netherlands 2 Land rig

Singapore SET Global Jade

Poland 1 Land Rig

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KCA DEUTAG Activities in Onshore Europe

T-61

T-49 UK

T-45 Netherlands

Portugal

T-208

T-85 Germany

Current Operational Area Past Operations

Germany

T-207 Poland

T-46 Albania

T-700 Netherlands

T-36 Germany

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Onshore – Europe Euro Rigs T-207 & T-208

Designed for European markets Compact footprint, box-on-box, suitable for

road transportation, soundproofing etc Rig T-208 delivered 2006, Rig T-207 in 2009

(Bentec have built 7 to date) 70 loads excluding camp Summary specification:

• Bentec mast, 770 kips static hook load • Mast height 144 ft, bootstrap • 29.5ft substructure height • Rig T-207 - Bentec E-1500 drawworks,

Rig T-208 - Wirth GH 1500, both 1500hp • 500t AC Bentec Top Drive • 3 x Bentec 1,600 mud pumps • Iron Roughneck ST-120 • 4 x Caterpillar 3512B, option to power from grid • Bentec Drillers Control System and Auto Driller • Full ATEX certification

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Onshore - Europe T-700 - Automated Pipe Handling System

Bentec HLR design, developed in conjunction with KCA DEUTAG

Designed to European standards, small footprint, soundproofing of major equipment

75 loads excluding camp 6 - 9 days rig move times Automated pipe storage and handling system

(Range II doubles) Summary specification:

• Bentec mast, 1,000 kips static hook load • Mast height 113ft, bootstrap type • 29.5ft substructure height • Bentec E-2000 drawworks, 2,000hp • Bentec 500-HT Top Drive, 46,500 ft-lbs • 3 x Bentec T-1600-AC Mud Pumps • 7,500 psi standpipe • Bentec Drillers Control System and Automatic

Driller • 4 x Caterpillar 3512B generator sets, option to

power from grid.

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Performance Improvement Process

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KCA DEUTAG Group 12 Month Rolling TRIR, 2008-2011

Note: Figures per 200,000 manhours

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Web-based reporting systems introduced 2004

Systems provide tools necessary to enhance KCAD operations performance

All KCAD operational reporting completed using this system

Ease of input and review by wellsite and base personnel

Data input on a daily basis at rig-site and final report approved at the rig for issue

Flexible query system allows a large range of on-line performance graphs

Raises awareness, e.g. Traffic Light NPT Table.

KCA DEUTAG Web-based Drilling Reporting System

YearApr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Average

T36 0 0 0 0 0 T36T45 0 1.3 3.3 7.6 0 5.0 2.4 0.5 1.9 0.3 2.6 T45T46 0.0 0.6 0 0 11.4 0.7 0 2.3 T46T49 0 12.3 5.9 1.4 1.4 4.8 T49T61 11.7 0.1 0.9 1.8 0 0.1 10.7 0 3.3 T61T85 0 0 0 0 0 0 0 0 T85T207 0.9 1.8 1.2 0.7 0.3 0.6 0 0 2.4 1.1 0.3 0.9 1.0 T207T208 0 0.1 0.9 0.2 2.2 0.3 0.7 T208T700 0 4.9 4.2 T700Total 0.5 2.9 0.7 1.9 2.0 0.2 0.1 3.7 3.9 3.4 1.1 1.2 1.9 Total

T390 1.5 0.1 5.0 2.8 0 0.1 0.1 0.1 0 0.2 0.3 0 0.9 T390T391 2.2 1.1 0 0.3 0.7 0 1.9 1.0 3.7 2.2 0.1 5.0 2.4 T391T392 19.0 16.5 0 7.3 T392T400 2.0 0.5 0 0 0 0 1.0 0.8 2.7 0.7 T400T401 0 0 0 T401T500 0.6 0 0 0 0 0 0 0 1.7 6.3 1.0 0.9 0.9 T500T501 1.3 1.0 0 0 0 1.4 0 0 0.1 6.2 0 0.8 T501T502 0.2 0 0 0 0.1 0 0.0 T502T503 0 0 5.1 0.4 T503T504 0.3 0.3 0 0.3 9.9 0 0.6 0 2.4 0 0.3 2.4 1.8 T504T505 1.5 3.7 1.6 4.9 1.0 4.8 8.3 13.3 2.6 0.9 4.2 T505

T2000 0.3 0 0.1 0 0 0.2 5.2 3.2 0 3.7 0.2 0 0.9 T2000Total 1.0 0.4 1.0 1.2 1.6 0.4 1.1 0.7 1.5 4.2 3.7 1.5 1.5 Total

Kazakhstan T47 0.6 0.9 2.1 5.5 0.8 0.4 0.3 0 0 0.9 T47

ERK Total 0.8 1.3 1.0 1.8 1.7 0.3 0.9 1.4 1.8 4.2 2.5 1.3 1.3 Total

Russia

1.0

Europe

Area Status NPT Europe / Russia / Kazakhstan Operations - Monthly NPT %

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DART Real Time Drilling Simulators

DART Advantages

Prepare for rig operation start ups – minimise rig downtime

Rig crew training (surface & downhole conditions) - programme for specific well programs and test viability

Well programme simulation

Approved IWCF training & certification

Replicate drilling surface and downhole equipment failures.

What to do when problems occur -Understand how to avoid downhole problems.

Team Building exercises.

Baku DART Simulator with 2 Drillers’ Chairs

Portable Mini-DART

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DART Training Services • KCA DEUTAG signed strategic alliance in 2011 with Robert Gordon’s University to jointly offer

training programmes using a drilling simulator. • KCA DEUTAG planning installation of drilling simulator in Brazil

– A Step Further in Safety Training

7 years into the investment Current Status $14 million invested since 2005 Over 1800 Leaders have attended courses on four

continents Shortlisted for Energy Institute Safety Award 2008

Strength in diversity KCA DEUTAG Director or General Manager “SETs”

expectations 22 nationalities have attended training in five

languages Attendees - 85% rig site supervisor and 15% support

staff

What’s next

With the current increase in activity the focus will be on training.

New/ expanded training centers will be set-up in Germany and Tyumen

(Russia)

Standardisation of equipment will be further progressed in all our land

Drilling activities on the basis of Eurorig for Europe/ Clusterslider for

Russia and Fast moving rigs for Africa.

Focus will be on the next level of (remote) rig automation. A pilot

project on the basis of ScadaDrill- together with Shell is currently in

progress.

Thank you for your attention