Hughes Warwick Stanley, OMV Petrom; Andrea Ferrante and Elie Daher, United Safety

1. SPE 170812Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study Hughes Warwick Stanley, OMV Petrom; Andrea Ferrante and Elie Daher, United Safety

2. Slide 2 Slide 2 Slide 2 The Challenge of Sour Gas Hydrogen sulfide attacks the respiratory and CNS of the victim resulting in death at around 1000 ppm. • Slightly heavier than air. Communities situated downwind are at high risk. • Ensure the safety of personnel and neighboring community by following industry standards. SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

3. Slide 3 Slide 3 Slide 3 The Site • Found 8% H2S and 24% CO2 • Located 250 meters away from nearby village • Population: approximately 4,500 • A failure or gas release could have severe consequences. Google map of 20 Adjud Exploration Well SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

4. Slide 4 Slide 4 Slide 4 Solution • Prevent exposure by: • Regular monitoring to ensure no pressure build up in the annulus or tubing. • Develop a site-specific Emergency Response Plan (ERP) and define Emergency Planning Zone. • Conduct extensive H2S training. • Demonstrate competence through onsite and offsite drills. • Win support and confidence of local stakeholders. SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

5. Slide 5 Solution: Planning Phase November 2012 Definition of vocational training needs, gap analysis and breathing air equipment needs assessment. March 2013 Safety company conducts intensive H2S/ERP training campaign prior to start of project. January 2013 Operator full HAZID exercise involving partners, contactors and subcontractors. September 2012 Review of 20 Adjud project and initial HAZID and Needs assessment. December 2012 Monitoring Wind Speed and Direction. February 2013 Finalize EPZ and ERP, customization of H2S detection and protection measures. October 2012 First draft for site and public protection Gas Detection Layout to be reviewed upon EPZ availability. SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

6. Slide 6 Slide 6 Slide 6 Solution: Identifying the EPZ and EAZ Emergency Planning Zone Emergency Awareness Zone EPZ (394 meters) EAZ (600 meters) Nearest Village To town 2 Km. To village 1 Km.

7. Slide 7 Solution: Wind Direction Study • Wind speed and direction data as component for dispersion models • Wind data was considered in locating briefing (muster) areas. • Two areas were selected as safe briefing (muster) areas. Conducted four months of monitoring to make statistically valid conclusions. SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

8. Slide 8 Solution: Monitoring and Detection Equipment • Fixed H2S monitoring and detection system • Audible and visual warning alarms • Emergency battery power back-up • Multi-gas detector • Measure atmospheric concentrations up to 300 ppm • H2S and SO2 Monitor • Placed close to the houses and village area • Personal H2S monitors for all personnel SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

9. Slide 9 Solution: Warning and Alarm Systems • Location of H2S warning alarms, audible and visual: • Driller’s console (audible and light) • Engine's area (audible and light) • Mud pit area (audible and light) • Living quarters (audible at all levels) • Main office of the rig (audible and light) • Shale shakers area (audible and light) • Wellsite perimeter fence alarm sirens • 112 dB with three activation buttons • Manually activated by the Well Services Supervisor SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

10. Slide 10 Solution: Proper Training • H2S Awareness & Emergency Response Training of personnel and local firefighting brigade • Proper equipment maintenance • Community outreach and education SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

11. Slide 11 Solution: Offsite and Onsite Drills • One drill every three days. • Emergency H2S drills conducted prior to entry into a known, unknown or suspected H2S zone. • Prior to special operations such as venting, wireline, coiled tubing, and well-testing operations. • 20 emergency H2S muster, “man down” and evacuation drills conducted while testing. • Drills • Emergency muster • Use of Self-Contained Breathing Apparatus (SCBA) • Use of cascade system • Rescue procedure • Emergency evacuation procedures SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

12. Slide 12 Emergency Levels and Response Strategies

13. Slide 13 Emergency Response Guideline

14. Slide 14 Results: Active Role of Community • Engaged local mayor’s office • Voluntary evacuation at Level 1 for special needs residents • Mandatory evacuation at Level 2 • Provide Shelter Reception Center • Engaged ISU Vranca • Produced an ISU intervention plan. • Informs public in the Emergency Awareness Zone • Evacuation starts with closest communities/situated downwind. • Win support of local community • Offsite drills showed competence in emergency response. • Evacuation as primary protection measure. • Well-testing and workover operations ran smoothly. SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

15. Slide 15 Conclusion Value of continuous personnel training Continuous improvement improves workforce efficiency reducing operating costs through lesser incidents and productivity losses. Increased public confidence in operator Practice transparency. Communicate risks involved in operations. Emergency drills showed competence to respond appropriately in case of emergencies. Setting a new benchmark for safety in the region Establish a working relationship with a dedicated safety solutions provider to lead the safety program implementation and improve the reputation and overall sustainability of the Oil and Gas industry. SPE 170812 • Ensuring The Safety Of Onsite Personnel And Neighboring Community During Workover And Well-testing Activities With A High H2S Risk Potential - A Case Study • Hughes Warwick Stanely, Andrea Ferrante and Elie Daher

16. Slide 16 Works Cited American Petroleum Institute. API Recommended Practices 49 Recommended Practice for Drilling and Well Servicing Operations Involving Hydrogen Sulfide. Washington, D.C.: API, 2001. American Petroleum Institute. API Recommended Practices 55 Recommended Practice for Oil and Gas Producing and Gas Processing Plant Operations Involving Hydrogen Sulfide. Washington, D.C.: API, 2005. American Petroleum Institute. API Recommended Practices 68 on Oil and Gas Well Servicing and Workover Operations Involving Hydrogen Sulphide. Washington, D.C.: API, 1998. ECD. Commission Directive 2009/161/EU of 17 December 2009. Official Journal of the European Union: L 338, 87-89. 2009. http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32009L0161&from=ENlex.europa.eucontent/EN/TXT/PDF/?uri=CELEX:32009L0161&from=EN (accessed March 31, 2014). Occupational Safety and Health Administration. Oil and Gas Well Drilling and Servicing eTool: General Safety and Health Hydrogen Sulfide Gas. https://www.osha.gov/SLTC/etools/oilandgas/general_safety/h2s_monitoring.html_br (accessed March 7, 2014). Pachiu L., Mustaciosu R., and Dudau R. “Oil and gas regulation in Romania: Overview.” Energy and Natural Resources Multi-Jurisdictional Guide (2014). http://uk.practicallaw.com/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1247833806217&ssbinary=true (accessed April 15, 2014).

17. Slide 17 Acknowledgements / Thank You / Questions Warwick Stanley Hughes Senior Completions Engineer OMV PETROM S. A. Petrom City 4th Floor, B 500 No 22 Coralilor, Sector 1 Bucharest, Romania Mob: 0040 (0) 732 820 202 Email: Hughes.Warwick@petrom.com Andrea Ferrante Business Development Manager Servizi Integrati di Sicurezza S.r.l. United Safety Int. Group Via Mare Adriatico 72/E 65010 Spoltore (PE) Italy Tel: +39 085 4971521 Fax: +39 085 4973121 Mob: +39 348 7071 906 Email: andrea.ferrante@sisworld.net