Lundin Norway AS 17th October 2008

Lundin Norway AS

Incident and Near Miss Reporting and Investigation Drilling Operations

LNAS-S-401

Revision Prepared by: Verified by: Approved by: 02 B. Rudjord J. Bysveen T. Tinholt 01 B. Rudjord J. Bysveen T. Tinholt

Lundin Norway AS LNAS-S-401 17th October 2008

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Contents

1 General ................................................................................... 3 1.1 Objective ................................................................................................3 1.2 Responsibility .........................................................................................3

2 Well Management Contractor.................................................. 3

3 Rig and Site Contractor ........................................................... 4 3.1 Reporting of accidents and incidents ......................................................4 3.2 Incident and Near Miss Investigation .....................................................4

Revision Table Rev. no. Reason for new revision Description of changes Page/Section 02 New description for

investigation of Red Category incidents

Reformulation of investigation team for red category incidents

4

01 First revision

Lundin Norway AS LNAS-S-401 17th October 2008

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1 General

1.1 Objective

This document describes the principles and requirements related to incident and near miss investigation and follow-up in conjunction with drilling operations operated by Lundin Norway AS (LNAS). The requirements will also apply for other assets operated by LNAS.

1.2 Responsibility

The Project Manager has the overall responsibility that the requirements set out in this document is implemented. The HSEQ Manager has the responsibility to maintain and update this procedure. The HSEQ Manager shall also ensure that relevant LNAS personnel are nominated to assist in an investigation team. LNAS shall also have personnel with sufficient training and experience to be able to lead an investigation if required. The lead drilling engineer assigned to the project shall ensure that the requirements in this procedure is made known to relevant personnel and adhered to during the drilling project.

2 Well Management Contractor

For drilling and well operations where a Well Management Contractor (WMC) is part of the drilling project, qualified personnel shall be nominated to assist in an investigation. The WMC shall maintain a register of all accidents and incidents reported during the course of the project. A status of incidents and accidents shall be maintained and a continuous measurement against the project HSE goals and relevant Key Performance Indicators (KPI) shall be maintained throughout the project execution.

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3 Rig and Site Contractor

3.1 Reporting of accidents and incidents

The rig and site contractor shall have a documented system for reporting and follow-up of incidents and near misses. This system shall allow for analysis of accidents and incidents (e.g. direct and root causes, actual and potential consequences, risk ranking and trend analysis). This system shall be used when drilling Lundin operated wells. LNAS will review all incident/near miss reports submitted during the drilling operations. In addition, LNAS will ensure Rig contractor’s timely closure of outstanding actions identified from previous incidents

3.2 Incident and Near Miss Investigation

The rig and site contractor shall have a documented system for investigation of incidents and near misses. This system shall allow for analysis of such events (e.g. direct and root causes, actual and potential consequences, risk ranking and trend analysis). This system shall be used when drilling Lundin operated wells. The rig and site contractor shall have nominated personnel to lead an investigation. The nominated persons shall have training and experience in conducting investigations. All incidents and near misses in the red category, ref. Guidelines for reporting of Accidents and Near misses (see link below), will be investigated. Red incidents in Severity Category C will be investigated by a team consisting of the personnel onboard or made up of onshore personnel. The team will at the minimum be made up of representatives from LNAS and the Rig Contractor. See Table 3-1 for illustration of personnel to be part of the investigation team. For any Category A and Category B incidents and near misses, the investigation team will be made up of personnel onshore. As for Red Category C incidents, the team will consist of personnel from the Rig Contractor and LNAS at the minimum Table 3-1: Investigation Team representatives for Red Category Incidents Onshore personnel Offshore personnel

Category LNAS Rig Owner LNAS Rig Owner A X X B X X C (x) (x) (x) (x)

(Brackets means optional involvement in investigation team)

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For all incident investigations, the direct as well as the root causes will be identified. Any corrective actions identified and agreed upon will be followed up until closure Even though an investigation team is not necessarily established after Yellow and Green Category incidents/Near misses, one should attempt to establish the direct and root causes and identify actions which could prevent recurrence. Reference is made to the LNAS-S-501 Accident and Near Miss Reporting Gudelines. Link to Lundin Guidelines for Reporting Accidents and Near Misses: