png service company limited cementing

PNG SERVICE COMPANY LIMITED

CEMENTING SERVICES

PNG SERVICE COMPANY LTD. ADDRESS:RUSSIAN FEDERATION, 127015,

MOSCOW, BUTYRSKAYA STR., 77, DIAGONAL HOUSE BUSINESS CENTER.

PHONE: +7 (495) 787-37-27,FAX: +7 (495) 787-37-28.

E-MAIL: [email protected]

RUSSIANRUSSIAN SERVICE COMPANY WITH INTERNATIONAL APPROACHSERVICE COMPANY WITH INTERNATIONAL APPROACH

COMPANY PROFILE

PNG Service Company Limited is an integrated service contractor providing acomplete range of services in primary well cementing and remedial/squeezecementing. The Company has a flexible approach and uses various schemesproviding cementing and pumping services according to the needs of Customer.

PNG Service Company Limited applies the most advanced technologyconstantly paying attention on R & D activities as well as to the investments inupgrade of state-of-the-art equipment.

An important objective of PNG Service Company Limited is to become the mostpreferable (for oil companies and other Customers) service company.

PNG Service Company Limited has its highly qualified personnel withexperience in well cementing and remedial/squeeze cementing working in adifferent geological and climatic conditions on the territory of the RussianFederation and abroad.

The company aims to achieve the highest standards of quality of cementingservices, industrial safety and environmental protection.

From the first days of activity the PNG Service Company Limited aims to fully meet the requirements of the most demanding foreign and Russian oil and gas companies to choose the most flexible of the Russian service contractor, which has an international approach and modern pumping equipment and technology world standards.

1

COMPANY HISTORY

In 2010 PNG Service Company Limited was established.Company started from the consultancy, cementing job design,cement slurry design using own laboratory equipment andsupervision the jobs.

In 2012 company purchased first three cementing units and otherequipment for cementing operations such as cement bulkers, bulkplant.

In 2013 company started to do whole cycle of cementingoperation including the program design, laboratory analysis,blending the cement and pumping.

In 2014 company expanding. Was purchased additional fourpumping units on skid and three cementing units on off-roadchassis.

In 2015 company expanding and purchased two pumping units onoff-road chassis with other equipment for cementing operations.

In 2017 company expanding and purchasing two more pumpingunits on off-road chassis with other equipment for cementingoperations.

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TYPE OF CEMENTING SERVICES

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PNG Service Company Limited provides the next type of services:

Primary Cementing of all types of casing and sizes. Liner cementing. One or Two Stage cementing. Cement plug setting. Remedial cement jobs. Supplying the casing accessories. Computer modelling the cement process and casing centralizers. Cement job program design. Design the cement slurry recipe and laboratory analysis by API or ISO standards. Blending and hauling the cement blends under quality control. Engineering support. Quality analysis.

The spheres of PNG Service Company interests have a wide geographic reach. Therefore for the purposes of the Company’sactivities in different regions to reduce the cost of services as well as to ensure maximum efficiency PNG Service Company setup theBranches, Remote Project Subdivisions and Operations Bases.Thus in 2010 there was established PNG Service Company Branch in Noyabrsk (the Yamal-Nenets Autonomous District) thatbecame the Operation Base, and in 2013-2014 an Operation Base was established in Usinsk (the Komi Republic) and as asubdivision was established in Megion (the Khanty-Mansiysk Autonomous District). In 2016 Operation Base was established inKhanty-Mansiysk (the Khanty-Mansiysk Autonomous District).PNG Service Company Limited subdivisions are able to provide a complete range of services related to:

• chemicals and cement storage;• blending of a wide range of cement dry blends; • holding the laboratory analysis by the ISO and API standards for selection the cement slurry recipes for specific downhole

conditions with the issuance of the test sample set of cement slurry;• maintenance and repair of special equipment in warm and light facilities.

All the subdivisions possess conditions for personnel comfortable accommodation.

PNG SERVICE CONPANY OPERATIONS BASES

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PNG SERVICE CONPANY OPERATIONS BASES

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Trebs Field

Noyabrsk(Main Base)

Megion BaseKhanty-MansiyskBase

Moscow (Head Office)

Ukhta

Urengoi Base

Astrakhan Base

Samara Base

EQUIPMENT

Presently PNG Service Company has put in operation and successfully operates 8 well cementing fleetsmanufactured in 2012-2017 and 4 skid units for well cementing manufactured in 2014.

1 fleet comprises: - UNBS2-600х70 cementing unit with automatic cement-mixing and cement pumping parameter monitoring system – 1 pcs- UNB- 160х40 cementing unit – 1 pc;- TsT-25 cement bulkers – 4 pcs;- Loader crane van for transportation of chemical agents, cementing heads – 1 pc.

4 fleets of special design, each of them comprising:- GJQ45-21 cementing unit manufactured by JEREH (China) with automatic cement mixing and parameter monitoring

system – 1 pc,- UNB-160×40 cementing unit – 1 pc;- TsT-25 cement bulkers – 3 pcs;- Loader crane van for transportation of chemical agents, cementing heads – 1 pc;- 1USO-20 surge tank – 1pc.

2 fleets of special design, each of them comprising:- TWIN GJQ70-34II cementing unit manufactured by JEREH (China) with automatic cement mixing and parameter monitoring system – 1 pc,

- UNB-160×40 cementing unit – 1 pc;- TsT–21.1 cement trucks – 3 pcs;- TsT–40 mobile cement warehouse – 1 pc;- Loader crane van for transportation of chemical agents, cementing heads – 1 pc

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2 fleets of special design, each of them comprising :- GJQ 45-21 cementing unit manufactured by JEREH (China) with cementing process parameter monitoring and recording system – 1 pc;- SIN-35 cementing unit – 1 pc;- AS-6/30 mixing unit – 6 pcs;- USO-20 R1-01 surge tank – 1pc;- Loader crane van for transportation of chemical agents, cementing heads – 1pc.

1 fleet of special Russian design comprising - UNB-160×40 cementing unit – 3 pcs;- SM-14K mixing unit – 2 pcs;- 1USO-20 surge tank – 1 pc;- Portable cementing monitoring station – 1 pc

4 skid mounted fleets of special design, each of them comprising :- GJQ45-21II cementing unit of container type manufactured by JEREH (China) with automatic cement slurry mixing and parameter monitoring system – 1 pc;- SIN-35 cementing unit – 1 pc;- STs700-32 cement silo – 2 pcs;- KM-40 mobile complex– 1 pc

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EQUIPMENT

EQUIPMENT APPLIED FOR CEMENTING OPERATIONS:

Cementing unit UNBS2-600х70 manufactured by StromneftemashLLC is designed for cement and aggressive fluid pumping into oil andgas wells in the course of cementing, acidizing, jet perforation,washout the sand plugs and other operations in completionperformed at oil and gas well development and workover. The unit isequipped with automatic recirculation system of cement slurrycontinuous preparation and mixing. The system consists of themixing unit with dry cement and mixing fluid pneumatic delivery, andtwo tanks: mixing tank and surge tank equipped with hydraulicallydriven agitators. The unit is mounted on IVECO 633903 (АМТ) eight-wheeler (8x6) chassis.

Main Performance Characteristics:

Overall dimensions 12000×2550×4000 mm

Deck engine rated capacity 2×325 kW at 2100 rpm

Unit weight, total 30000 kg

Max pressure 70 MPa

Cement slurry density 1.0~2.6 g/cm³

Pump max delivery 3000 l/min

Cement mix preparation capacity, max 2300 l/min

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GJQ45-21 Cementing unit manufactured by JEREH Co. (China) isdesignated for cement and aggressive fluid pumping into oil and gas wells inthe course of cementing, acidizing, jet perforation, washout the sand plugsand other operations in completion performed at oil and gas welldevelopment and workover. The unit is equipped with automatic recirculationsystem of cement slurry continuous preparation and mixing. The systemconsists of a mixing unit with dry cement and mixing fluid pneumatic delivery,and a mixing-&-surge tank equipped with hydraulically driven agitators. Theunit is mounted on IVECO 633900 (АМТ) six-wheeler (6x6) chassis.

Main Performance Characteristics


Deck engine rated capacity 349 kW at 2100 rpm


Max pump pressure 44 MPa


Max pump delivery 2100 l/min



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Max pump pressure 40 MPa

Max pump delivery 1200 l/min

Measuring tank 2×3 m³

Water-feeding pump delivery 600 l/min

UNB-160х40 single triplex plunger pump cementing unit is designatedfor pumping fluid and other technical solutions in the course ofcementing, acidizing, jet perforation, washout the sand plugs and otheroperations in completion performed at oil and gas well developmentand workover.


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TsT-26, TsT-21 cement bulkers are designated for transportation of dry powdermaterials, pneumatically adjustable delivery thereof at cement blend preparation foroil and gas well cementing.



Unit weight 21700 kg

Max compressor capacity 10 m³/min

Max working pressure 0.2 MPa

Transported material weight, max 30 t


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In February 2014, PNG SERVICE Company Limited put in operation four skid mounted fleets for performance of serviceoperations on casing & liner cementing and cement bridge plug at the remote projects. Each fleet comprises:• GJQ45-21II skid-type cementing unit equipped with state-of-the-art fifth-generation automatic system of cement slurry

preparation and parameter monitoring. The unit consists of pumping and mixing units jointly developed and manufactured by PNG SC LLC and JEREH Co. (China)


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Main performance characteristics

Max pressure 43.4 MPa

Plunger pump delivery, max 2100 l/min


Cement slurry mixing capacity, max 2300 l/min

Mixing unit weight, in transport condition, max 10000 kg

Pumping unit weight, in transport condition, max 10000 kg

• SIN–35 pumping unit is designed for fluid andsolutions pumping in the course ofcementing, jet perforation, sand washing andother operation performance. The unit ismounted on KAMAZ 43118 chassismanufactured by Evrika Trade OJSCResearch & Development Center;

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Overall dimensions 8700х2500х3300 mm


Pump pressure, max 50 MPa

Pump max rate 1620 l/min

Displacement tank 2×3 m³

C-pump rate 500 l/min

EQUIPMENT FOR CEMENTING OPERATIONS

• SC700–32 cement silo for dry blend cement mix, storage and releasemanufactured by OJSC Sibneftemash Production Complex;

• MK–40 mobile complex for cement dry blend mix, storage and release; thecomplex is equipped with dust-free operation system and air compressor unitmanufactured by OJSC Sibneftemash Production Complex.

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• CT-40 mobile cement storage is designed for cement transfer, storage and loading/unloading and equipped withdust-free operation system and autonomous compressor unit manufactured by OJSC Sibneftemash ProductionComplex;

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For operation at fields with communication routes available round-the-year, in March2014, PNG Service Company put in operation in addition to the existing fouroperating mobile fleets two more fleets with double-pump cementing unitsmanufactured by JEREH Co. (China) mounted on IVECO 8х8 configuration chassisof cross-country type. Each unit has state-of-the-art fifth-generation systems ofcement slurry continuous preparation and parameter monitoring.


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GJQ70-34II double-pump cementing unit manufactured by JEREH Co.(China) is designated for cement and nonaggressive process fluidpumping into oil & gas wells in the course of cementing, jet perforation,sand washing, preflush and overflush operations performed at oil andgas well development and workover. The unit is equipped with AMS2.5automatic recirculation system of cement slurry continuous preparationand mixing (automatic monitoring of density, cement and water delivery

as well as cement slurry level in mixing tank). The system consists of a mixing unit with dry cement and mixing fluidpneumatic delivery and a mixing-&-surge tank equipped with hydraulically driven agitators. The unit is mounted on IVECO633900 (АМТ) eight-wheeler (8x8) chassis.



Deck engine rated capacity 2х392 kW at 2100 rpm


Max pressure 70 MPa


Pump delivery, max 3400 l/min


NEW EQUIPMENT:

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Two more fleets with double-pump cementing units manufactured by JEREH Co. (China) mounted on IVECO 8х8configuration chassis of cross-country type manufactured in 2015.

Every fleet is special design comprises:

GJQ45-21 double-pump cementing unit manufactured by JEREH Co. (China) is designated for cement slurry andnonaggressive process fluid pumping into oil and gas wells in the course of cementing, jet perforation, sand washing,preflush and overflush operations performed at oil and gas well development and workover. The unit is mounted on IVECO633900 (АМТ) eight-wheeler (8x8) chassis – 1 pc. The unit is equipped with a system of monitoring and recording theparameters of cement slurry and cementing process.

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- USO-20 R1-01 batch mixer is designed for mixing ofspacer and cement slurry as well as other fluids for welloperations, mounted on KAMAZ 43118 chassis; 2 x 10m3 tanks


19

– Palfiger PK 8500 Loader hydraulic crane-manipultorvan is designed for transportation of chemicalagents, cementing heads, etc., mounted on KAMAZ43118 chassis.


Dry blend mix preparation is effected by bulk blending plant with programmable automatic dosing and mixing system.

DRY BLEND CEMENT BULK PLANT

The unit operates in automatic mode following the preset program with precise addition of chemicals and fillers viaweighting hoppers excluding mistakes in ingredient rated proportion observance. The unit capacity is 20 tons an hourat mixture homogeneity of 98%. The bulk blending plant is provided with a packing unit enabling ready cement blendpreparation and packing into big bags.

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At remote sites, dry blend mix preparation is performed by 4 sets of bulk blending equipment provided with up-to-date silos, dust-free system and compressor units.

211

DRY BLEND CEMENT BULK PLANT

Cement laboratory of PNG Service Company Noyabrsk Business Unit is accredited by Federal AccreditationService (Rosakkreditatsiya) for testing activity performance, which fact is confirmed by РОСС RU.0001.21CT21Certificate.

CEMENT LABORATORY

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In the course of preparation for casing cementing and cement plug placing works, Cement Laboratory of PNG SC performsselection of cement slurry recipes according to the downhole condition with API and ISO standards.The Laboratories are completed with equipment of the world leading manufacturers such as: HPHT consistometer manufactured by CHANDLER (USA), released in 2012. HPHT consistometer manufactured by OFITE (USA), released in 2012 – 2 pcs. Atmospheric consistometer manufactured by CHANDLER (USA) – released in 2012. Ultrasonic analyzer manufactured by OFITE (USA) – released in 2012. SGSA (Static Gel Strength Analyzer) – released in 2016. Stirring Fluid Loss cell manufactured by OFITE (USA) – released in 2012. Constant speed mixer manufactured by OFITE (USA) – released in 2012. 12-speed rotary viscometer manufactured by OFITE (USA) – released in 2012 – 2 pcs. Cement stone crash tester manufactured by MATEST (Italy) – released in 2012 and in 2014 – 2 pcs. Curing chamber for cement stone samples formation manufactured by OFITE (USA) – released in 2014.

Taking into account intensively increasing volumes of well cementing service operations, in December 2014, PNG Service Company additionally put in operation a mobile Cement Laboratory manufactured by OFITE (USA).

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CEMENTING LABORATORY CAPABILITIES

CEMENT ADDITIVES

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Different downhole well conditions and types of well cementing require the different cement blends for optimization the process of cement job.

PNG Service Company offers a various of products as the cement blends as the cement additives for the best results of cementing the oil and gas wells.

PNG Service Company cooperates with the different manufacturers of chemical additives for cement. Accelerators and Retarders – change the Thickening Time of cement slurry, alter rate of

compressive strength development. Fluid Loss additives GasBlok – controls the gas migration in cement slurry. Antisettling additives – improvement the cement slurry properties. Dispersants – adjustment the rheology of cement slurry, reduce friction pressure (Low Ty and Pv). Lost Circulation Materials (LCM). Weighting materials. Extenders – reduce slurry density, increase slurry yield. Defoamers (antifoam). Bonding additives. Expansive additives. Flexible additives

SPECIAL CEMENT RECIPESPNG Service Company specialists have developed their own oil-well cement blends. Special oil-well cement blends Specifications have beenregistered in Rostest-Moscow Federal State-Funded Institute. One of the Company objectives is to blend and pump own products for wellcementing in oil and gas wells and such products being competitive and of better quality as compared to similar products of othermanufacturers and competitors. In this respect PNG Service Company refers to its products’ compliance estimate following Fuel & EnergyIndustry Facultative Certification System and Compliance Certificate № ТЭК RU.ХП25.Н05272 by Autonomous noncommercial organizationNEFTEPROMKHIM Certification and Standardization Center.

Expanding lightweight cement blends (for the density range from 1400 to 1740 kg/m³) are applicable for cementing of producing andaquifers intervals, in intervals with lost circulation, as well as to improve the quality of zonal isolation with the low hydrostatic pressure ontothe formation. Usable range from +5 to +110 ºС.Application expanding lightweight cement slurries improves the quality of cement bond in the annulus and reducing the cement stonepermeability.

Lightweight cement blends (for the density range from 1250 to 1540 kg/m³) are applicable in intervals what do not have the producingzone, in order to decrease hydrostatic pressure onto formation and provide filling up to the target depth.

Expanding cement blends for mixing cement slurry with conventional density (for the density range from 1740 to 1940 kg/m³) are applicablefor the high quality of zonal isolation as producing intervals as in aquifers intervals to improve the bond quality prior the Frac Jobs. As in HighPressure intervals as in Low Pressure intervals. As well as improving the well life. Usable range from +5 to +110 ºС.

Special HPHT cement blends for the High Temperature wells up to 160-180 BHST.Hydrated Portland cement undergoes a slow phase transition above 110°C in which the calcium silicate hydrate (CSH) gel phase reacts withcalcium hydroxide and is transformed into crystalline dicalcium silicate hydrate (α-C2SH) which is much weaker. This process is known asstrength retrogression. However, in the presence of excess silica it does not occur. Silica flour in class G cement is therefore added to oilwellcement formulations for wells in which the bottomhole static temperature (BHST) is near or above 110°C to prevent it.

Special cement blends for Permafrost Zone.Special blend of cementing materials formulated for setting conductor pipe in extremely cold condition. Permafrost Zone cement can be usedin areas where formation temperatures are as low as 15°F (-9.4°C). It is most commonly used in areas where washouts, fractures, and icelenses are encountered.

All the blends can be made with the different properties such as low Fluid Loss, Thickening Time, different range of densities, rheology,improved strength properties.

25

02468

1012

1 7 30 90 180 210

6.47.7

9.1 8.9 8.5 8.6

5.77.1

8.4 8.7

10.3 10.5

7.68.5

9.39.9

11.2 11.6

ПЦТ-I-G-CC-1 (atmospheric conditions)СТР-75 (atmospheric conditions)СТР-75 (thermobaric conditions)

Special Cement Blends with Expanding properties are divided into grades depending on Bottom Hole Temperature and may be modified according to specific downhole conditions.Special Cement Blends with Expanding properties for the casing cementing upper sections enable to achieve good zonal isolation and to avoid excessive pressure onto wellhead as well as to provide leak-proofness at annular pressure tests.

Materials used for Special Cement Blends with Expanding properties: standard Portland Cement, expanding additives,light weight additives, antisettling additives, fluid loss additives as well as dispersants, water reducing agents and anti-foaming agents to achieve required cement slurry properties.

26

Tens

ile s

tren

gth,

MPa

Cement stone strength development time, twenty four hours

SPECIAL CEMENT BLENDS

For cementing the producing intervals in oil-&-gas wells including wells with tough conditions, PNG Service Companyhas developed a number of Expanding Cement Blends (ECB). Application of Expanding Cement Blends (ECB) isguaranteed to provide good zonal isolation and prevents the cross flows due to increased the cement bond with casingand formation with provided proper technology of well cementing.

23.5

39

56.9

71 72.2 72.9 73.4

63.658

0

10

20

30

40

50

60

70

80

0 3.5 5.8 8 11.9 15.6 17.9 21.1 22.8

27


28

SPECIAL CEMENT BLENDSSTR-75

29

SPECIAL CEMENT BLENDSST-OB4-100

For the casing cement job used Special Cement Blends (SCB) manufactured by PNG Service Companyin compliance with TU 5734-001-668656693-2012.

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Special Cement Blends (SCB) are manufactured based on standard Portland Cement, expanding additives, light weightadditives, antisettling additives, fluid loss additives as well as dispersants, water reducing agents, lost circulation materials andanti-foaming agents.According to fuel & energy industry Facultative Certification System and Compliance Certificate № ТЭК RU.ХП25.Н05272 byAutonomous noncommercial organization NEFTEPROMKHIM Certification and Standardization Center, PNG ServiceCompany products have been recommended for application on the territory of the Russian Federation as agent for wellconstruction and repair and have been entered into the List of Chemical Products Having Been Tested and Recommended forTheir Safe Application in Oil Industry Register.

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PNG Service Company main capital is its personnel – a human resource that enablesqualitative process management, self-organization and clearly defined management ofother people actions in diverse spheres of the Company activities.To realize the Company objectives, there was formed a team consisting of highly qualifiedspecialists capable to exercise initiative and take independent decisions, able to analyze asituation, to solve the tasks assigned and to form relations with people both within andoutside the Company. Undoubted professionalism of technological service specialistsenables from day to day to offer our Clients efficient, competitive technological solutionsthat are highly demanded in the service market.

PERSONNEL

Over 70% of the Company specialists have more than 7-yearexperience in the industry.Specialist recruitment is based upon economically substantiatedand efficient for the Company sources and means of personnelselection.At least once a year, personnel is tested to assess professionaltheoretical skills compliance, such tests aiming at continuous staffdevelopment. Basing on test results, measures are taken toencourage personnel’s further skill upgrade.For works in remote, hard-to-reach, undeveloped areas withextreme nature and climatic conditions where round-the-yeartransport communication is not available, rotational team methodof work organization is used.

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For the cement program design of any types of casing Engineer uses the latest licensed cement software the DrillNetfrom the Petris company.

SOFTWARE AND CEMENT JOB CALCULATION

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Simulates all primary cementing jobs, conventional, reverse circulation, inner-string & foam cement. ECDs / Pressures at various depths vs. time BHP Annular contact time for all fluids

Turbulence table for fluids at different geometry Handles up to 10 fluids, each pumped at 5 rates.

Fluid displacement animation on screen.

THE NUMBER OF OPERATIONS PERFORMEDPROVIDING COMPLETE SERVICE SUPPORT

31%

59%

8%2%

Yamal-Nenets AD Khanty-Mansiysk AD The KOMI Republic Central Caspian oil-&gas bearing province

In 2013-2015 PNG Service Company performs its production activities within the framework of the signed contracts onservice support of casing cementing and cement plug placing in diverse oil-and-gas producing regions:

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THE NUMBER OF OPERATIONS PERFORMED

In 2013-2015 PNG Service Company started works within the framework of the signed contracts on service support ofcasing cementing and cement plug placing at license sites of NOVATEK-Tarkosaleneftegaz LLC, OOO LUKOIL-Komi,OOO Bashneft-Polus, ARKTIKGAZ JSC, Gazpromneft-Noyabrskneftegaz JSC, Gazpromneft-Muravlenko Branch ofGazpromneft-Noyabrskneftegaz JSC, Southern Oil Company LLC, OOO LUKOIL-Primorieneftegaz, ООО Severneft-Urengoy, ZAO Samara-Nafta, ОАО Slavneft-Megionneftegaz, KCA Deutag. For the said period the following worknumber has been performed:

35

3154

372109

1430

38539

20520 26 11 6 38 6 13 61 14 16 4 23 47 99 133 80 10 7

0

500

1000

1500

2000

2500

3000

3500

01.2013-01.2017

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

84.587.3

79.877.1

83.4

15.512.6

20.022.9

16.5

0.0 0.1 0.2 0.0 0.1

Complete

Partial

Poor

None

Not defined

PRODUCTION CASING & LINER CEMENT BOND QUALITY WITHIN INTERVAL OF PAY ZONE

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AVERAGE STATISTIC INDEX OF CEMENT BOND QUALITY WITHIN INTERVAL OF PAY ZONE

AT PRODUCTION CASING & LINER CEMENTING

82,61%

15,3%0,09%

CEMENT BOND QUALITY

Complete

PartialNone

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NUMBER OF THE JOBS

38

YEAR CASING CEMENTING LINER CEMENTINGCEMENT BRIDGE PLUG AND CEMENT SQUEEZE

JOBTOTAL

2013 62 3 20 852014 287 61 136 4842015 762 69 464 12952016 757 80 347 11842017 85 7 14 106

TOTAL 1953 220 981 3154

In 2016 on West Siberia PNG Service Company Limited started to do the liner cementing jobs with displacement over 1500 m for the Multi Stage Frac Job with over than 30 stages.

TESTIMONIALS

39

TESTIMONIALS

40

TESTIMONIALS

41

TESTIMONIALS

42

TESTIMONIALS

43

RANKING COMPANIES BASED ON THE RESULTS OF WORK FOR 2016GAZPROMNEFT-HANTOS CEMENTING SERVICES

INJURY & ACCIDENT RATE IN 2015-2016

PNG SC Personnel2015total

31-12.2016total

Fatal accident number (acc./man)0 0

Injury number (man)0 0

Group accident number 0 0

Significant accident number(Employee’s death during work caused by a general desease, road traffic accident when a vehicle due to technical reasons could not leave under its own power.) 0 0

Since 2012 there were no fatal accidents related to PNG Service Company production activities. Notransport accidents, fires and inflammations have taken place.

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ALCOHOL RELATED ACCIDENTS

Accident distribution per types (2014-2016)

Accident ClassificationReported period

%(+/-) 2014-20162014 2015 2016

Alcoholic intoxication at working place 0 0 0 0

Employees in a state of alcoholic intoxication during inter-shift leisure time in rotational camps or teams 0 0 0 0

Employees in a state of alcoholic intoxication exposed in the course of pre- or post-trip check-ups 0 0 0 0

Measures taken

Dismissed following Article 81 of the RF Labor Code 0 0 0 0

Issued reprimand with 100% premium denial 0 0 0 0

Total: 0 0 0 0

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96.0% 99.2% 100.0% 97.7% 98.4% 99.2% 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% 98.4%

0%

20%

40%

60%

80%

100%

Service quality factor

RENDERED SERVICE QUALITY ESTIMATE

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LICENSES & CERTIFICATES

PNG Service Company is a member of Self-Regulated Organization which fact is confirmed by Certificate permitting toperform work types influencing safety of capital construction facilities inclusive of highly hazardous and technicallycomplicated ones. The Company has also been certified to Integrated Management System (ISO 9001, ISO 14001,OHSAS 18001).

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HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION (HSE) POLICY

Life and Health protection of our employers, environmental protection, our aspiration for the consistent improvement ofthe methods and technologies applied for industrial security and safety – is a core value for PNG Drilling Company.

The principles of company’s environmental activity are:

Recognition of human right on favorable environment;Resources preservation;Industrial process optimization in the context of ecological safety;Minimization of probable negative influence of productive activity on environment;Openness and availability of ecological information.Following strictly these principals, PNG Drilling Company ensures transparence of the reports in the field of laborprotection, safety procedures, environment protection. Consistent control of the employers safety, of their working placesand technological process on the whole has been realized by the way of expertise of the equipment and instruments forpersonal safety and protection.

We set ourselves a goal to implement continually the most up-to-date technologies to ensure industrial safety andenvironment protection, to support and develop the monitoring system, making it possible to reduce the risks of theaccidents at the working places and to eliminate the possibility of environmental contamination.

Carrying out the environmental actions is based on clear understanding by the employers of the fact, that reasonablybalanced production tasks and maintenance of favorable environment is a necessary requirement for reduction of risksof emergency situations and ensuring safe conditions for the employers working activity and nearly living population.

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OUR CUSTOMERS

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PNG Service Company uses the most advanced technology, equipment andmaterials of leading world producers.

As a result, our Customers were, and remain, the largest oil and gasproducing and the drilling companies in Russia: Rosneft, KCA Deutag, IDSGroup, OAO NOVATEK, Arktikgas, Gazproneft, Bashneft, EDC Eurasia andmany other companies, for which important mobility and a high level ofservice.

THANK YOU FOR YOUR ATTENTION

Contacts:PNG Service Company Limited77 Butyrskaya Str., Moscow, 127015, Russian FederationPhone/Fax: (495) 787-37-27, (495) 787-37-28E-mail: [email protected]

png service company limited cementing

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