Rev Date 11-17-09

AUDIT TEAM ASSET ADVISED ACCEPTANCE COMPLETION OR CHANGE NO Action In progress Complete 1.1 Health, Safety and Safety Management These items do not comply with BP Policies or Standards 1.1.1 A conflict was noted between the BP Golden Rules on permit to work A permit to work must be required for work on Immediately Accept All and Transocean SMS Policy (Section 4.2.2 Sub-section 5.6) OIMs duty energy systems. Transocean to abide by the higher personnel will have to determine if a permit is required in addition to an Isolation Certificate. level of control and ensure all energy isolations are a PTW in place for An example of an isolation certificate with no associated permit to work under control of the permit to work process. Golden all isolations was posted in the auxiliary Drillers cabin for work to replace a service Rules of Safety hose bundle on the iron roughneck. 1.1.2 The isolation certificate issued for changing out a valve and pipe work in When completing isolation certificates, checks should Immediately Accept There the port forward ballast pump room did not include details of the be made to ensure that all information is entered. will be continues mechanical isolation, e.g. the padlock number. Lock-out/tag-out details should be checked and training with all recorded. Permit to work audits should include the maintenance requirement to check both mechanical and electrical personnel on proper isolations and ensure that the details recorded are isolating methods complete. Golden Rules of Safety 1.1.3 There is a requirement for all contract and staff personnel involved in the management and supervision of drilling and well operations for BP to be knowledgeable of the Drilling and Well Operations Practice and associated Engineering Technical Practices. Relevant Transocean personnel were not aware of this requirement. The Drilling and Well Operations Practice and associated Engineering Technical Practices to be rolled out to relevant Transocean personnel to the point where they are knowledgeable of the contents. Drilling and Well Operations Practice Within six months REF OBSERVATION RECOMMENDATION
RESPONSIBLE ACTUAL DEPARTMENT COMPLETION DATE 1 Month or less

SIGNED OFF BY

Percent Complete

LATEST UPDATE

13-Oct All Departments

S.Bertone

100%

Maintenance Supervisor

Ongoing and continuous training

BP

1.1.4 No Competence Assurance system was in place. This differs from other Transocean should ensure that the competency Within four months Need clarification is Transocean rigs (e.g. DD III) where a competency program is maintained system used on other rigs is applied to the Deepwater this something that and competency records held. Horizon. Drilling and Well Operations Practice involves TOI or is it a hold over from Global. Training records and letter of competency and responsible personnel are posted. 1.1.5 Several instances were mechanical isolations had not been identified or suitable locked and tagged out. Examples include discharge valve on air start compressor #4 during motor replacement and failure to lock out / tag out the jacket water and seawater inlet and outlet valves during disassembly of water maker #5. Mechanical isolations to be considered for each job Immediately involving energy isolation. An effective system of tag and locks to be employed and details included on the Isolation Certificate. Golden Rules of Safety Accept There will be continues training with all maintenance personnel on proper isolating methods Maintenance Supervisor

Ongoing and continuous training.

Ongoing and continuous training.

1.1.6 The rigueur concerning close out of the previous audit findings has generally been unsatisfactory. There has been little sign of BP involvement evident and consequently many of the recommendations reported as closed out could not be adequately demonstrated to the audit team during this visit. 1.2 1.2.1 The test, middle and upper pipe ram BOP bonnets are original. They have not been subject to OEM inspection and recertification in accordance with API and OEM requirements. Transocean propose a change out plan commencing in 2010 for completion in 2011.

BP involvement required in closing out of audit recommendations. If a recommendation is rejected than formal risk mitigation to be documented. Six Point Plan

Immediately

BP

Drilling and Well Control These items do not comply with BP Policies or Standards Expedite overhaul of the test, middle and upper pipe By end of 2009 Challenge ram bonnets which are original and have significantly surpassed the recommended recertification period. Otherwise expedite replacements. Drilling and Well Operations Practice

Sub sea James Kent

Technical Services These items do not comply with BP Policies or Standards 1.3.1 With the exception of the DP control system a comprehensive software Target to be set for completion of auditable software Within three Accept management system for critical software such as the BOP control system, management system. Software verification schedule months ballast control system and vessel management system could not be to be risk based i.e. most critical software to be demonstrated. checked/backed up first. System to be subject to periodic audit in line with Transocean Advisory Notice. Drilling and Well Operations Practice 1.3.2 No formal means in place to communicate overdue critical maintenance or defective equipment to the BP Well Site Leaders. Weekly maintenance report to be updated / modified to include all equipment defects and all overdue planned and corrective maintenance. Report to be submitted to the BP Well Site Leader on a weekly basis. Drilling and Well Operations Practice Within one week Challenge

1.3

Electrical Supervisor

Paul Johnson James Kent

1.6 1.6.1 The E Stop on the forward moon pool man ridding winch is non operational. 1.6.2 The proof load test certification for the man riding winches, utility winches, trolley beams and pad eyes were not available for inspection during the rig audit period.

Mechanical Handling These items do not comply with BP Policies or Standards E Stop on the forward moon pool man ridding winch Prior to next use Accept to be made operational. Golden Rules of Safety

14-Oct Mechanical Supervisor Deck Pusher

Allen Windham

100%

2.1 2.1.1

2.1.2

2.1.3

2.1.4

2.1.5

2.1.6

2.1.7

2.1.8

2.1.9

2.1.10

2.1.11

Ensure that the current proof load test certification Within one month Accept Need at least for the man riding winches, utility winches, trolley 60 days to test all beams and pad eyes are available on the rig for equipment. inspection. Should these be unavailable proof load WAITING ON2009 BOOK FROM testing to be carried out by competent person. Golden HADCO. Rules of Safety Health, Safety and Safety Management These items are outside API, legislation, Rig Owner policies, have high safety or environmental impact potential. The coupling guard on the Mathey wire line unit is inadequate and the Modify coupling guard on Mathey wire line unit such GUARD Accept coupling guard on main engine #2 pre-lube oil pump was missing. Both that rotating equipment is enclosed. Coupling guard MODIFIED AND couplings are exposed. on main engine #2 pre-lube oil pump to be installed. FIXED ON WIRE LINE UNIT Potential fall through hazard identified at the crown access platform of Extend handrails at the crown access platform of the Within two months Accept the mini derrick in way of the fast line. mini derrick in way of the fast line to remove potential fall through hazard. BP HSE Policy posted in the accommodation is dated May 2002. Most recent version of BP HSE Policy to be made Within one month Accept available and posted on the relevant HSE notice boards. Although some general safety goals were in place, no structured annual An annual Health and Safety Plan should be put in Within three Challenge Health and Safety Plan with measurable actions, completion dates and place to formally manage ongoing HSE initiatives. months accountable persons was sighted. The plan should have clear measurable targets with defined accountabilities. Only two of the twenty-eight people requiring the Kelvin Top Set one day Outstanding one day Kelvin Top Set training to be Within three Accept Training will 15-Oct training course have been trained. completed in accordance with the training matrix months be completed as requirements. courses become available The FOCUS improvement system was being used to track the status of In conjunction with those actions recorded within the Within one month Challenge actions arising from incidents. It was not possible during the audit, to BP Traction system, BP should monitor the status of ascertain the actual status of the actions arising from each report. actions held on the Transocean Focus system which relate to incidents that have occurred on the Deepwater Horizon. On completion of a job that requires a TSTP, an after action review Ensure that on completion of all jobs that require a Immediately Accept This is being 13-Oct should be completed. This was not always being done. TSTP, an after action review is completed in carried in all accordance with the procedure. departments Condition of some chemical pallets in the sack store was suspect. Some To avoid injury to personnel forklift drivers should Immediately Accept 14-Oct had sustained mechanical damage due to forklift truck damage. ensure that they take care when handling wooden Consequently a number of pallets were splintered while others were chemical pallets. This should be discussed and tilting. recorded during Think Plans. The lighting inside the starboard-aft stairwell from the main deck to the Improve the lighting inside the starboard-aft stairwell Within two months Accept lighting lower deck was insufficient. from the main deck to the lower deck issue has been addressed. The safety notice board did not contain up to date minutes of safety Ensure that relevant up to date information is posted Within one week Accept meetings. There was some information available from the DROPS on the safety notice board which covers all ongoing Steering Committee Meetings but no recent safety meeting minutes were safety issues on the rig. posted. An ESD fault was registered on the fire and gas panel located on the The TSTP for conducting helicopter pre-arrival Immediately Accept 10/15/2009 TSTP bridge, further investigation revealed that the heli foam system had been checks to be reviewed to ensure that all critical been sent for inhibited thereby preventing operation during a helicopter operations. systems are fully functional. The written THINK approval This inhibit had been missed from system tests the previous day. Plan should include these checks.

75%

Mechanical Supervisor

100%

Mechanical Supervisor BP

Paul Johnson James Kent

RSTC

M.Lindsey

100%

Paul Johnson James Kent

All Departments

S.Bertone

100%

Toolpusher

Bo Votaw

100%

Electrical Supervisor

100%

RSTC has updated board

100%

Marine Department and Engineering Department

C. Kuchta

2.1.12 In the shale shaker area, some items of PPE and hand tools had been left lying around e.g. face visor left next to shaker #8 and stilton wrench lying on the walkway. 2.1.13 The TSTP for working on mud pumps did not adequately address the manual handling aspects involved in moving heavy equipment e.g. mud pump fluid end modules and piston liners. 2.1.14 MSDS information was not available in the mud mixing area. Some information was posted on the notice board in this area but this was not considered adequate. 2.1.15 The number of START cards submitted by third party and BP personnel was low. None had been submitted for the previous week.

All PPE to be stored in the PPE locker when not in Immediately use and personnel to be reminded that on completion of work, all hand-tools should be properly stored. Review TSTP to ensure that manual handling aspects Within one month are included and that personnel consider manual handling hazards in the THINK planning process. Provide MSDS information at worksites where Within one month potentially hazardous materials may be stored and/or used. Remind all personnel, including third party and BP personnel, on the rig to be fully engaged in the START card system and people reminded of their duty to use the behavioral tools available. Immediately

Accept

14-Oct Toolpusher

Bo Votaw

100%

Accept

10/14/2009 Has been Toolpusher sent to town for approval. 15-Oct

Bo Votaw

Declined MSDS information is posted in the sack room. Accept Third Party has been instructed to increase there participation by the BP Company Man.

S.Bertone

100%

15-Oct BP

S.Bertone

100%

2.1.16 Fall hazards were noted in the port forward and starboard forward ballast pump rooms, where valve change out had resulted in gaps with no handrail protection. 2.1.17 Additional OJT (DROPS and Environmental) had recently been added to the list that had to be completed by onboard personnel. These had not yet been implemented.

Fall hazards presented by the gaps in the port forward Within one week. Accept and starboard forward ballast pump rooms to be addressed. A timescale to be established for implementing the Within two months Accept DROPS and Environmental OJT.

1-Oct Maintenance Department RSTC-

S.Bertone

100%

2.1.18 One of the hospital alarms was tested. Although a signal was activated on the bridge, there was no acknowledgement to the Medic that it had been received. 2.2

All four alarms in the hospital to be checked and personnel responsible for acknowledging the alarms made clear on their duty to respond immediately.

Within one week.

Accept Training Issue

10/15/2009 Marine

C.Kuchta

DROPS completed 100% Environment al not due on Matrix till 2010 but 75% COMPLETE D. 100%

Drilling and Well Control These items are outside API, legislation, Rig Owner policies, have high safety or environmental impact potential. 2.2.1 The BOP control unit triplex pump pressure relief valve was last BOP control unit triplex pump pressure relief valve to Within two months Accept recalibrated during August 2007. It is subsequently now overdue the 2 be recalibrated. year recertification period as per API recommended practice.

Sub sea

WHEELER

100% units were changed out with spares off shelf. Calibrated 08.

2.2.2 Derrick gates/hatches were not fitted with safety lanyards.

Derrick gates/hatches to be provided with adequate means of secondary retention. Toe boards to be provided on open sided floors, platforms, walkways in accordance with API RP 54

2.2.3 Toe boards are not installed at the edges of a number of derrick walkways. Areas include at the crown in way of the block and fast line, at the fingerboard level at the dead line grating penetration, in way of the aft PRS control cabinets and at the access walkway in way of the forward PRS bridge. 2.2.4 The crown bumper timbers are not equipped with safety slings in accordance with API recommended practice.

Within monthly derrick inspection cycle. At next between wells period

Accept

Toolpusher, working on making up JOB Will Kennedy, CHALLENGED

Getting clarification of API RP 54 CHALLENGED

Safety slings to be installed on the crown bumper timbers in accordance with API RP 54

Within two months Getting clarification of API RP 54, CHALLENGED Within one week Accept

CHALLENGED

2.2.5 Items of trash were recovered/identified during the derrick inspection. These included fixings, split pins, loose cable band, plastic from drill line, grating clamps and wire. 2.2.6 Numerous loose and detached grating clamps were identified and retrieved during the derrick inspection. Loose grating clamps prevailed on the derrick hatches while the detached clamps were found mainly at the crown platform. 2.2.7 Secondary retention arrangements for the crown mounted flare igniter were suspect, not all equipment was adequately secured. 2.2.8 The high pressure mud hose was found in unacceptable condition. The outer casing was damaged, due to abrasion with the top drive service loop, and several layers including the steel belt construction were worn through. 2.2.9 According to maintenance history choke manifold valves have not been opened up for periodic inspection and overhaul in line with API recommended practice. Consequently only valves failing to meet pressure test requirements have been inspected.

Full sweep of derrick to be conducted, all trash and loose items to be removed. Extra vigilance required by rig crews during derrick inspections. Survey all derrick grating clamps. Loose items to be secured and missing/detached items to be replaced.

10/20/2009 Toolpusher

ROBERT WATSON

100%

Within monthly derrick inspection cycle. Within monthly derrick inspection cycle. Before start of drilling operations

Accept

Toolpusher, working on making up JOB

Review and address as required secondary retention arrangements fro the crown mounted flare igniter. High pressure mud hose to be replaced.

Accept

10/20/2009 Toolpusher

ROBERT WATSON

100%

Paul Johnson James Kent

In accordance with API recommended practice choke At next between manifold to be opened up and fully inspected over a wells period four year cycle. All valves to be removed for inspection and repairs to be documented.

Getting clarification of API recommended practice

Sub sea Maintenance Supervisor

20% SUB SEA working on setting up PM as per API requirement s.

2.2.10 One of the BOP high pressure boost hoses has been in service since Replace out of certification BOP high pressure boost Before start of December 1999. The hose is in poor fabric condition and has not been hose. Transocean maintain a 5 year thorough hose drilling operations maintained in accordance with Transocean yearly or 5 yearly inspection / replacement philosophy. maintenance requirements. It was communicated that delivery date for a replacement hose was March 2010. 2.2.11 The annual maintenance routine for the draw works was overdue since February 2009. This routine includes disassembly and MPI of the draw works caliper pins and arms. Annual maintenance routine for the draw works to be Before start of undertaken. Maintenance routine to be performed in drilling operations full including disassembly and MPI of the brake caliper, pins and arms. Any deviation from the maintenance system requirements to be subject to formal written technical justification.

ACCEPT, ON ORDER PO 1704935 IN TRANSIT EST. 17 NOV09 DELIVERY. Accept TODDI has changed the 365 day PM, it is no longer required to disassemble and MPI.

Paul Johnson James Kent

20-Sep Maintenance Supervisor

S.Bertone

100%

2.2.12 Annual maintenance routine requires pressure testing of each high pressure hose, choke and kill, and mud hoses for example. Review of the associated history files indicated that visual inspection only had been performed.

Annual maintenance requirements for high pressure hoses to be fulfilled. Pressure testing in accordance with table attached to the maintenance procedure to be undertaken.

Within four months

Sub sea

This item is checked during BOP testing which takes place every 14 days, Sub sea to begin checking and documentin g tests in RMS

2.2.13 The standard of third party NDT inspection reports was woefully Transocean to communicate clear terms of reference Prior to further inadequate and at best poor. The reports presented for inspection to third party NDT inspection company. Quality of NDT inspection contained insufficient detail of the actual components or areas inspected. NDT inspection reports to be significantly improved work to reflect the actual components and areas inspected. 2.2.14 Calibration certificate for the riser bolt torque wrench calibration equipment could not be provided. Valid calibration certificate to be available onboard for the riser bolt torque wrench calibration equipment. Within one month Accept

Paul Johnson James Kent

Sub sea

2.2.15 Review of the most recent (September 2009) drilling load path NDT Missed items from drilling load path inspection to be Within two months Declined inspection reports indicated that the following items were not inspected; subject to MPI. Drilling load path traveling block, top drive, crown block and the master bushing and insert. inspection was done in March 2009 2.2.16 The five year derrick inspection maintenance routine requires MPI of the derrick feet. This could not be demonstrated by way of onboard MPI reports. The third party inspection company were contacted and faxed through a revised MPI report. Review of the report submitted indicated that an existing report, one that was available onboard the rig, had simply been modified with the addition derrick feet. This approach to reporting key structural inspections lacks necessary integrity and level of assurance required. 2.2.17 The recently installed iron roughneck cannot be operated from Cyberbase unless ACS ignore/release override key switches are activated. Transocean to communicate clear terms of reference Immediately to third party NDT inspection company. Quality of NDT inspection reports to be significantly improved to reflect the actual components and areas inspected. Modifying existing MPI reports with additional line items to suit customer requests is unacceptable. Accept

Maintenance Supervisor

S.Bertone

50% Have equipment waiting on transducer to be able to be able to do certification 100%

21-Sep Maintenance Supervisor

S.Bertone

Iron roughneck to be made operational from Cyberbase with ACS active.

Before start of drilling operations

2.2.18 The aft PRS has been operated under a permanent risk assessment as the Investigate and rectify the retract problem concerning Before start of lower arm will not stay retracted. Although just refurbished the problem the lower arm of the aft PRS. drilling operations has not been eradicated.

Accept TODDI Technical Field Support and NOV are currently trying to resolve this issue Accept The 9-/19 upper stabilizer arm was sent in for repairs and returned to the rig. Arm is now fully operational

Maintenance Supervisor

Maintenance Supervisor

S.Bertone

100%

2.2.19 Calibration of critical analogue and digital drilling instrumentation such as the dead weight indicator, well control related pressure gauges, top drive, and iron roughneck torque could not be demonstrated. 2.2.20 Although previously requested comprehensive derrick bolt inspection reports could not be provided. A third party MPI report was produced with a line item stating UT inspection of 43 derrick bolts.

Calibration of critical analogue and digital drilling instrumentation to be undertaken and inspection reports maintained onboard. Given the age of the derrick comprehensive (100%) derrick bolt inspection to be undertaken. Derrick bolts to be inspected for security, corrosion and elongation.

Within six months

Paul Johnson James Kent

Within six months

Accept Third Party Inspectors will need to come out to the rig and perform an inspection

Maintenance Supervisor

2.2.21 The top drive guard although previously ripped off during a collision with Top drive guard to be fitted with a suitable safety the PRS and also recommended by NOV is not fitted with a safety sling. sling. 2.2.22 A derrick register was in use however not all information was being recorded e.g. some people were not signing the log to register that they had come down from the derrick and notified that tools and equipment had been taken down.

Before start of drilling operations

Accept

10/15/2009 Toolpusher

BVotaw

100%

Drilling Supervisors to ensure strict enforcement of Immediately Accept 13-Oct the derrick register, i.e. all personnel accessing the derrick sign out once they have completed the work and register that all tools and equipment taken up have been brought down. 2.3 Technical Services These items are outside API, legislation, Rig Owner policies, have high safety or environmental impact potential. 2.3.1 A formal system to manage alarm inhibits and control of defeats and Formal management system to be implemented for Within one month Accept bypasses was not in place for vessel management system, drilling control alarm inhibits and control of defeats and bypasses. System is being system and related PLCs etc. established on the bridge/ECR for logging and tracking these items. 2.3.2 Although not widespread it was evident that maintenance routines were The practice of closing incomplete maintenance work Immediately Accept All 13-Oct still being closed out although the maintenance tasks were not being orders must cease. Maintenance Supervisor to departments notified performed. E.g. 30 day top drive dolly. produce standing instructions to communicate that this would not expectations. be tolerated 2.3.3 Although previously reported quality of maintenance history reporting remains below par across all disciplines. In many cases history was deficient in content describing the work carried out and it was frequently not possible to determine if the required maintenance tasks had been performed. 2.3.4 The vast majority of mud pump covers had been installed using silicon sealant. This can plug internal oil ways and galleries leading to bearing oil starvation and failure. Maintenance Supervisor to produce standing instructions to effectively communicate expectation for improved maintenance history reporting Immediately Accept All departments notified that this would not be tolerated Decline OEM gaskets are utilized, will review the usage of silicone. Accept The new maintenance system program RMS has multiple PM duplicates. TODDI is currently reviewing the maintenance system and making adjustments as required. Accept T2 motor will be inspected and re Megged

Toolpusher

BVotaw

100%

Marine Department, Drilling Department, and Engineering Department

50%

Maintenance Supervisor

S.Bertone

100%

13-Oct Maintenance Supervisor

S.Bertone

100%

Practice of sealing mud pump covers with silicon sealant to cease. OEM gaskets to be used only.

During future inspections

Mechanical Supervisor

2.3.5 Overdue maintenance in excess of 30 days was considered excessive Communicate forward plan for reducing current high Within one week totaling 390 jobs and 3545 man hours. Many of the overdue maintenance levels of overdue critical maintenance. routines were high priority.

15-Oct Paul Johnson

J.Kent

100%

2.3.6 Thruster T2 motor has low insulation resistance reading, circa 1MOhm.

Investigate and rectify low insulation resistance of thruster T2 motor.

Within one month

Electrical Supervisor

ABB ONBOARD AT THIS TIME 11/05/09

Mechanical Handling These items are outside API, legislation, Rig Owner policies, have high safety or environmental impact potential. 2.6.1 The two year maintenance requirement to remove the derrick sheaves and Derrick sheaves and snatch blocks to be removed Within two months Accept snatch blocks for thorough inspection is not being rigorously applied. It from the derrick for disassembly and thorough The rig will order could not be demonstrated when all sheaves were last removed from the inspection. Maintenance history to be updated with new sheaves and derrick. For example the utility winch turn down sheave mounted under details of inspections. replace existing the crown of the mini derrick was heavily corroded sheaves. 2.6.2 None of the pad eyes, safety slings and sheaves within the derrick was color coded in accordance with the current lifting gear color code. This is out with Transocean policy. 2.6.3 The large crown mounted wire line turn down sheave is not provided with secondary retention arranged to catch the load. Inspection records to demonstrate that the sheave had been subject to periodic maintenance and inspection were not available. 2.6.4 There was no SWL visible on the forklift truck. Ensure loose lifting equipment installed in the derrick Within three is subject to third party inspection and color coded in months accordance with the current lifting gear color code. Accept

2.6

Toolpusher Paul Johnson James Kent

10/18/2009 Toolpusher

BO VOTAW

100%

Install secondary retention wire sling arranged to Within two months catch load on the wire line turn down sheave otherwise implement formal pre use inspection routine. Mark the SWL on the forklift truck so that it is clearly Within one week Accept visible.

Schlumberger and BP

10/16/2009 Toolpusher

Bo Votaw

100%

2.6.5 There was no SWL visible on the forward drill floor man riding winch.

Mark the SWL on the forward drill floor man riding winch so that it is clearly visible. 2.6.6 The man riding winch wire certificates indicate that their wires have been Man riding winch wires to be changed out at 2 year in service for over 2 years which is outside Transoceans policy. Visual frequency in line with Transocean policy. inspection of the wires indicated that they are still externally in satisfactory condition. 2.6.7 Both deck crane main block hooks are of the spring latch type. In accordance with Transocean policy replace the Transocean requirements specify positive locking latch type to be fitted. spring latch type main block hooks on both deck cranes, to the positive latch type. 2.6.8 The safe load indicator on the starboard Liebherr deck crane has faulty back lit LCD screen. A temporary light has been installed so that the readings and alarm signal can be seen at night. 2.6.9 There was no SWL visible on the port aft drill floor utility winch. Replace the faulty back lit LCD screen on the safe load indicator on the starboard deck crane

Within one week Within one month

Accept Accept

10/16/2009 Toolpusher 7-29-09 certification Deck Pusher onboard

Bo Votaw

100%

Within one month

Within one month

Accept The rig will source positive locking latches. Accept

Deck Pusher

Mark the SWL on the aft drill floor utility winch so Within one week Accept that it is clearly visible. 3.2 Drilling and Well Control These are items that one would expect to find in place from a combination of competent drilling contractor and competent operator 3.2.1 Best practice regarding secondary retention of derrick mounted CCTV Best practice for secondary retention to be applied to Within monthly Accept There Electrical Supervisor cameras was not in place. Only one barrier had been applied to the the derrick mounted CCTV cameras. Camera casing, derrick inspection is no means of camera casing, the pan and tilt head was not provided with secondary pan, and tilt head to be provided with independent cycle installing a retention. means of secondary retention as per the DROPS secondary retention handbook. to the pan and tilt head, the rig will source a possible means of securing the unit. 3.2.2 MPI of the crown support beams could not be provided. Provide documentary evidence to support MPI of the Within one month Accept Hadco 21-Sep Maintenance S.Bertone crown support beams. Otherwise mobilize competent Inspector performed Supervisor third party to perform MPI of same. an MPI inspection of the crown support beams 3.2.3 No inspection documentation available to show MPI of the Ezy Torque has been performed. Provide documentary evidence to support MPI of the Within one month Ezy Torque. Otherwise mobilize third party inspection company to perform the work. 3.2.4 Two anti-collision system (ACS) checklists have been produced. One of Update RMS II to include scheduling for regular Within two months the lists contains just a few clash scenarios and is performed prior to each testing of the comprehensive ACS checklist. trip. The other is a comprehensive check of all clash scenarios which is not periodically performed. 3.2.5 The catwalk machine belt is worn and has some broken links at the join. Repair / replace worn catwalk machine belt. Accept 21-Sep Maintenance Supervisor Maintenance Supervisor S.Bertone

10/10/2009 Electrical Supervisor Tommy Daniels Replaced by Gene & Billy 10/16/2009 Toolpusher BVotaw

100%

100%

100%

100%

Accept PM created tracking#155003800 240 11/17/09 submitted

75%

Within two months Challenge Deemed as not in need of replacement. 3.2.6 UT thickness inspection reports for high pressure piping were generally Transocean expectations regarding content of the UT Within four months Accept poor. The report did not include original thickness, percentage thickness inspection reports to be communicated to Engineering to diminution and some isometrics were missing. Consequently the reports the third party. Reports to include original thickness, provide original amounted to little more than numbers thus the actual pipe work condition percentage diminution and all isometrics. Pipe work thickness of piping could not be established. assessment to determine condition to be made. 3.2.7 The aft finger board CCTV camera foundation bolts have been short bolted, in addition they are not provided with means of locking device. 3.2.9 The top drive service loops were found in poor condition, the outer sheathing had significant mechanical damage due to abrasion with the mud hose. Replace the foundation bolts in the aft finger board CCTV camera and ensure that a suitable locking device is in place. Make necessary repairs to the outer sheathing of the top drive service loop and install protective spiral wrap. Within monthly Accept derrick inspection cycle. Within two months Challenge The outer sheathing is superficial and does not require change out. Within one month Accept Camera is onboard, waiting on opportunity to install JOB# 090703 Immediately

Paul Johnson James Kent Paul Johnson James Kent

10/19/2009 Toolpusher

ROBERT WATSON

100%

15-Oct Paul Johnson James J.Kent Kent

100%

3.2.11 Derrick CCTV camera #5 is currently defective.

Repair/replace defective CCTV camera #5.

Electrical Supervisor

50%

3.2.10 Much of the well control maintenance was either recorded in the Sub sea Engineers daily log book or on various spreadsheets. The level of well control related maintenance history recorded in RMS II was minimal by comparison.

Accept Followed up with RMS superueser who sent informantion to sub sea on access history. 3.2.13 According to maintenance history and NDT inspection reports inspection Ensure all points identified on the 365 day crown and Within two months Accept of the crown block and traveling block is not being conducted in line with traveling block maintenance routines are performed the 365 day maintenance procedures. Results of the wobble test were not in accordance with the procedure tasks and clearly recorded and MPI was not conducted in accordance with task 4 of the documented. procedure. 3.2.14 Current riser bolt and insert inspection reports were inadequate. The For trace ability purposes riser bolt and insert At next inspection CHALLENGE reports did not list the serial numbers of the individual bolts and inserts inspection reports to list the serial numbers of the inspected. units inspected.

Well control related planned and corrective maintenance to be recorded in RMS II. This simplifies searching for maintenance history and inspection records.

Sub sea

Maintenance Supervisor and Mechanical Supervisor Sub sea

100% Have seen HADCO testing on bolts 318 tested 302 Accepted. Sub sea will keep list in files. Usually kept with deck foreman.

3.2.15 The aft window in the Assistant Drillers cabin is badly cracked. Due to this there is very limited vision of the pipe conveyor and surrounding area.

Change out the badly cracked aft window in the Assistant Drillers cabin.

Within three months

Accept Third party window installer to be sourced After discussion with TOOLPUSHER have requested engineering involvemnt to detrmine if LEXAN is suitable substitute. Waiting on reply from engineering 2010

Toolpusher

3.2.16 The rotary table has been non operational for approaching four years. Spares availability is cited as the reason for this. 3.2.17 When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Expedite rotary table spares and return unit to operational condition as per contract requirements. Address the lack of knowledge by training relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Within two months Accept Project

Maintenance Supervisor All Departments

25%

Within two months Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

3.2.18 Areas of high pressure system pipe work are not being inspected, lack of Ensure high pressure pipe work systems are fully access being cited. In some cases, e.g. kill line, heavy corrosion is noted inspected during UT thickness checks. Proper but no thickness measurements are recorded. planning to provide access to entire systems to be in place.

Prior to next annual Accept Rig UT inspection is actively pursuing UT thickness tests of all piping for the 2011 SPS Within one week Accept

Maintenance Supervisor

3.2.19 Housekeeping under the catwalk machine belt is unacceptable with excessive trash accumulation evident. 3.3

Items of trash to be removed from under the catwalk machine belt, specifically nearest the rig floor

Toolpusher

Wheeler

Technical Services

3.3 These are items that one would expect to find in place from a combination of competent drilling contractor and competent operator 3.3.1 There is no maintenance routine for the servicing of the main engine Update RMS II to include maintenance routines for Within three Accept Event 10/11/09 job Maintenance hydraulic overhaul tools and pumps. BP lessons learned indicate a need servicing of the main engine hydraulic overhaul tools months based PM will be submitted tracking Supervisor to carry out regular maintenance of this equipment and the replacement and pumps, as per OEM requirements. created to cover this. # 1550038000190 of the pressure seals as per OEM maintenance routine dictates. 3.3.2 Current injection tests of the main breakers have not been performed. It is usual that this is done during the 5-year SPS. Provide update on status/requirements regarding current injection testing of main breakers. Within four months Accept Will contact third party for current injection procedures and time frame. Within three months Within one month Accept Accept All repaired, one unit needs replaced and is on order JOB#101351 Maintenance Supervisor, Electrical Supervisor and James Kent

75%

3.3.3 It could not be demonstrated that the high voltage test gear is periodically High voltage test gear to be periodically calibrated. calibrated. 3.3.4 All rig air regulators installed in the derrick at fingerboard control Renew all defective derrick mounted rig air cubicles etc. had severe air leaks due to various defects. regulators.

Electrical Supervisor Mechanical Supervisor

3.3.5 The drillers cabin fire and gas panel had numerous alarm conditions displayed. These included; fire alarm active, fault ESD active, fault fire and gas active and fire and gas override active. The Driller and Assistant Driller on tour were unaware of the fault conditions.

Investigate and rectify various fault conditions displayed on the drillers cabin fire and gas panel. This panel is a slave from the main panel located on the bridge.

Within one week

3.3.6 It was communicated that since the maintenance system has been changed from EMPAC to RMS II maintenance routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources. 3.3.7 Change over from EMPAC to RMS II maintenance systems has resulted in poor distribution of the maintenance routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours. 3.3.8 The integral monitor on the port side drilling UPS is defective.

Transocean to confirm that the correct maintenance routines for the Deepwater Horizon have been loaded into RMS II.

Accept Simrad SVC technician coming out to the rig to assist with troubleshooting. Should be corrected within 2 weeks. Within four months Accept

Electrical Supervisor

All Departmental Supervisors

Review maintenance routines to evenly distribute throughout the year to ease maintenance burden on resources.

Within four months Accept

All Departmental Supervisors

3.3.9 3.3.10

3.3.11 3.3.12

3.3.13

3.3.14

3.6 3.6.1 3.6.2

3.6.3

Within four months Challenge The 15-Oct Electrical Supervisor monitor was off on power save mode, just needed to activate. Main engine #1 is currently out of service pending delivery and Expedite and install fuel pump to main engine #1. Within two weeks Accept Fuel pump 1-Oct Maintenance installation of a common rail type fuel pump. has been installed Supervisor The daily maintenance report did not accurately reflect outstanding Daily maintenance report to be updated / modified to Within one week Challenge 15-Oct Paul Johnson James planned or corrective maintenance or defect equipment. The BP Well include all equipment defects. Report to be submitted Kent Site Leaders were unaware of many of the equipment defects highlighted to the BP Well Site Leader on a weekly basis. during the audit period. The air conditioning unit installed in the port deck crane cabin cab is non Port deck crane operators cabin air conditioning unit Within one month Accept Electrical Supervisor operational. The cabin is therefore uncomfortable. to be repaired / replaced. The E-Hawk system giving NOV remote drilling control system E-Hawk system giving NOV remote access to the Within one month Accept All 18-Sep Maintenance diagnostic access was defective. Consequently remote troubleshooting of drilling control system to be made operational. communication Supervisor the iron roughneck/ACS problems could not be performed. issues have been resolved Thermographic inspection of the switchboards and electrical switchgear Undertake Thermographic inspection of switchboards Within four months Accept Waiting Electrical Supervisor has not been performed since the rig entered service in 2000. and MCC to locate and eradicate any potential hot for third party spots to prevent electrical failures. technician to place thermo graphic windows for the camera A formal process to demonstrate that defects noted during third party Formal tracking process demonstrating close out of Within three Accept NDT 15-Oct Deck Pusher NDT inspections had been closed out was not in place. defects noted during third party NDT inspections to months defects will be be implemented. tracked through the maintenance program RMS by creating jobs for the defects. Mechanical Handling These are items that one would expect to find in place from a combination of competent drilling contractor and competent operator Many of the remote grease nipples for the derrick mounted divert sheaves Ensure derrick mounted divert sheaves are greased in Within one month Accept 10/17/2009 Toolpusher are dry indicating that this equipment is not being lubricated. accordance with derrick maintenance routines. It could not be verified that the rotary table bushing pullers and the rotary Provide current lifting certification for the rotary Within one month Accept 10/18/2009 Toolpusher bowl pullers used on the drill floor were certified for use. bushing pullers and the rotary bowl pullers used on the drill floor and color code each item. Several pad eyes in the mud pit room are still painted in last years lifting Green color coded pad eyes in the mud pit room to be Within one month Accept 10/18/2009 Toolpusher gear color code, green. Potentially indicating that they were not inspected by competent person and color coded inspected during the recent third party lifting gear inspection. yellow in line with the current lifting gear color code. All windscreen wipers to be fully operational on the port and starboard deck cranes, knuckle boom crane and riser gantry crane. Starboard side moon pool utility winch to be made operational. Within two months Accept Mechanical Supervisor Mechanical Supervisor

Replace defective monitor on the port side drilling UPS.

S.Bertone

100%

S.Bertone J.Kent

100% 100%

S.Bertone

100%

S.Bertone

100%

ROBERT WATSON ROBERT WATSON NEW SET ON ORDER ROBERT WATSON

100% 100%

100%

3.6.4 The operators cab windscreen wipers are either non functional or have missing wiper blades on the port and starboard deck cranes, knuckle boom crane and riser gantry crane. 3.6.5 The starboard side moon pool utility winch control lever was seized and hence the winch was non operational.

Within one month

Accept Lever operates has detent and needs to be lifted before moving.

100%

3.6.6 The riser gantry crane CCTV monitor is not working.

CCTV monitor on riser gantry crane to be made Within one month Accept Electrical Supervisor operational. 3.6.7 The rope guard on the port aft moon pool utility winch is broken. Repair the broken rope guard on the port aft moon Within one month Accept Wire rope Mechanical pool utility winch. Supervisor guard repaired. 3.6.8 There is no emergency lowering instructions posted on the aft drill floor Emergency lowering instruction to be posted at the Prior to use Accept 10/16/2009 Toolpusher BVotaw man riding winch. aft drill floor man riding winch. 4.1 Health, Safety and Safety Management These are items that can be used by the drilling contractor and/or BP to build on the project, though they are not considered as essential. 4.1.1 Completion of the HSE OJT was required for all Transocean personnel. Consider using the HSE OJT process as a training Within three Paul Johnson James Long term third party personnel were not included in the process. The tool for all long term third party personnel on the rig. months Kent And BP OJT covers permit to work and use of the various risk management tools. At present all 3rd party individuals are given a It would provide an effective means of ensuring that long term third party basic overview of TOI SMS, to inlude PTW, Think personnel were fully trained and conversant with the rig SMS. Plan, Start observation card. If questions arise RSTC is available for more training/ answer questions along wiht the Responsable person for the are the equipmwnt is located.

100% 100%

4.2

Drilling and Well Control These are items that can be used by the drilling contractor and/or BP to build on the project, though they are not considered as essential.

4.2.1 Dolly rail spreader beam at the monkey board has sustained significant mechanical damage, and is bent and deformed as a result.

4.2.2 During UT inspection of the choke pipeline significant corrosion was recorded in way of the moon pool.

Plan to change out damaged dolly rail spreader beam Within six months at the monkey board level of the derrick. Derrick builders procedures and specifications to be followed. Corrosion on choke line in the moon pool area to be Within one year addressed.

Assessment of beam will performed.

Toolpusher

ACCEPT. Contract painters in progress of water blasting and recoating High pressure piping and moonpool area..

Sub sea

4.2.3 Localized surface and deep corrosion identified on the crown support beams and crown block/fast line pedestals. 4.2.4 Completion of the HSE OJT was required for all Transocean personnel. Long term third party personnel were not included in the process. The OJT covers permit to work and use of the various risk management tools. It would provide an effective means of ensuring that long term third party personnel were fully trained and conversant with the rig SMS.

Address corrosion on the crown support beams and Within six months crown block/fast line pedestals. Consider using the HSE OJT process as a training Within six months tool for all long term third party personnel on the rig. At present all 3rd party individuals are given a basic overview of TOI SMS, to inlude PTW, Think Plan, Start observation card. If questions arise RSTC is available for more training/ answer questions along wiht the Responsable person for the are the equipmwnt is located.

Accept

Toolpusher Paul Johnson James Kent And BP

4.2.5 The derrick specifically from the fingerboard level down was coated in a Deep cleaning, pressure washing, of the derrick to be At next between Paul Johnson James thick film of mud, a few inches deep in some places. undertaken. wells period Kent 4.3 Technical control These are items that can be used by the drilling contractor and/or BP to build on the project, though they are not considered as essential. 4.3.1 Siemens has phased out the SIMATIC 5 product range, which is used on Address obsolescence issues, update PRS and iron Within one year This is being Electrical Supervisor the PRS and iron roughneck. roughneck PLCs from SIMATIC 5 to SIMATIC 7 addressed by the rig product range which is supported by Siemens. and should be completed during the 2011 SPS 4.3.2 No long term planning was evident with respect to potential equipment Undertake a systematic review of rig systems and Within one year Challenge The Paul Johnson James and system obsolescence issues. equipment to identify and address obsolescence rig has in place a 5 Kent issues. year budgetary maintenance plan. 4.3.3 A number of critical systems, watertight doors, seawater cooling systems, Spares philosophy regarding critical spares inventory Within one year Maintenance fire and gas detectors, etc. were either defective or non operational due to be reviewed to ensure equipment uptime and Department and to lack of onboard spares. availability. Marine Department 4.6 Mechanical Handling These are items that can be used by the drilling contractor and/or BP to build on the project, though they are not considered as essential. 4.6.1 The starboard crane boom is showing signs of damaged paint work and Address the light corrosion and damaged paint work Within one year Accept Deck Pusher light corrosion where the vertical boom lattice chords meet the boom on the starboard crane boom where the vertical boom main chords. lattice chords meet the boom main cords. 4.6.2 There is no central rigging store area where all items of loose rigging equipment can be stored out of the weather, maintained and signed out. This leads to a situation where loose rigging equipment is stored at various areas of the rig without control and potentially proper inspection/maintenance. Locate all loose lifting equipment to an enclosed Within six months centralized storage area. Adopt a register for signing out and in equipment and also its location such that control can be exercised. Reject CMS does not require this 13-Oct Maintenance Supervisor S.Bertone

100%

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION AUDIT ASSET ACTUAL RESPONSIB LE TEAM ACCEPTA COMPLET DEPARTME ADVISED NCE OR ION DATE NT COMPLET CHANGE ION Complete 1 Month or less Before start Accept of drilling TODDI operations Technical Field Support and NOV are currently trying to resolve this issue Maintenance Supervisor SIGNED OFF BY Percent Complete

NO Action 2.2.17 The recently installed iron roughneck cannot be operated from Cyberbase unless ACS ignore/release override key switches are activated.

In progress Iron roughneck to be made operational from Cyberbase with ACS active.

LATEST UPDATE

MAINTENANCE SUPERVISOR

2.2.16

The five year derrick inspection maintenance routine requires MPI of the derrick feet. This could not be demonstrated by way of onboard MPI reports. The third party inspection company were contacted and faxed through a revised MPI report. Review of the report submitted indicated that an existing report, one that was available onboard the rig, had simply been modified with the addition derrick feet. This approach to reporting key structural inspections lacks necessary integrity and level of assurance required.

Transocean to communicate clear terms Immediately Accept of reference to third party NDT inspection company. Quality of NDT inspection reports to be significantly improved to reflect the actual components and areas inspected. Modifying existing MPI reports with additional line items to suit customer requests is unacceptable.

21-Sep Maintenance S.Bertone Supervisor

2.2.20

Although previously requested comprehensive derrick bolt inspection reports could not be provided. A third party MPI report was produced with a line item stating UT inspection of 43 derrick bolts.

Given the age of the derrick comprehensive (100%) derrick bolt inspection to be undertaken. Derrick bolts to be inspected for security, corrosion and elongation.

Within six months

Accept Third Party Inspectors will need to come out to the rig and perform an inspection

Maintenance Supervisor

2.3.1

A formal system to manage alarm inhibits and control of defeats and bypasses was not in place for vessel management system, drilling control system and related PLCs etc.

Formal management system to be implemented for alarm inhibits and control of defeats and bypasses.

Within one month

3.2.4

Two anti-collision system (ACS) Update RMS II to include scheduling Within two checklists have been produced. One of for regular testing of the comprehensive months the lists contains just a few clash ACS checklist. scenarios and is performed prior to each trip. The other is a comprehensive check of all clash scenarios which is not periodically performed.

Accept System is being established on the bridge for logging and tracking these items. Accept PM to be created to perform a comprehensi ve check periodically

Marine Department, Drilling Department, and Engineering Department

25%

Maintenance Supervisor

3.2.13

According to maintenance history and NDT inspection reports inspection of the crown block and traveling block is not being conducted in line with the 365 day maintenance procedures. Results of the wobble test were not recorded and MPI was not conducted in accordance with task 4 of the procedure.

Ensure all points identified on the 365 Within two day crown and traveling block months maintenance routines are performed in accordance with the procedure tasks and clearly documented.

Accept

Maintenance Supervisor and Mechanical Supervisor

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of knowledge by training relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Within two months

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

All Departments

3.2.18

Areas of high pressure system pipe work are not being inspected, lack of access being cited. In some cases, e.g. kill line, heavy corrosion is noted but no thickness measurements are recorded.

Ensure high pressure pipe work systems Prior to next are fully inspected during UT thickness annual UT checks. Proper planning to provide inspection access to entire systems to be in place.

Accept Rig is actively pursuing UT thickness tests of all piping for the 2011 SPS Accept Event based PM will be created to cover this.

Maintenance Supervisor

3.3.1

3.3.2

There is no maintenance routine for the servicing of the main engine hydraulic overhaul tools and pumps. BP lessons learned indicate a need to carry out regular maintenance of this equipment and the replacement of the pressure seals as per OEM maintenance routine dictates. Current injection tests of the main breakers have not been performed. It is usual that this is done during the 5-year SPS.

Update RMS II to include maintenance Within three routines for servicing of the main months engine hydraulic overhaul tools and pumps, as per OEM requirements.

10/11/09 job Maintenance submitted Supervisor tracking # 1550038000 190

75%

Provide update on status/requirements regarding current injection testing of main breakers.

Within four Accept months Will contact third party for current injection procedures and time frame.

Maintenance Supervisor, Electrical Supervisor and James Kent

3.3.6

It was communicated that since the Transocean to confirm that the correct Within four Accept maintenance system has been changed maintenance routines for the Deepwater months from EMPAC to RMS II maintenance Horizon have been loaded into RMS II. routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources.

All Departmenta l Supervisors

3.3.7

Change over from EMPAC to RMS II Review maintenance routines to evenly Within four Accept maintenance systems has resulted in distribute throughout the year to ease months poor distribution of the maintenance maintenance burden on resources. routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours.

All Departmenta l Supervisors

4.3.3

A number of critical systems, watertight doors, seawater cooling systems, fire and gas detectors, etc. were either defective or non operational due to lack of onboard spares.

Spares philosophy regarding critical spares inventory to be reviewed to ensure equipment uptime and availability.

Within one year

Maintenance Department and Marine Department

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION AUDIT ASSET ACTUAL RESPONSIB LE TEAM ACCEPTA COMPLET DEPARTME ADVISED NCE OR ION DATE NT COMPLET CHANGE ION Complete 1 Month or less SIGNED OFF BY Percent Complete

NO Action

In progress

LATEST UPDATE

FIRST ENGINEER
2.3.1 A formal system to manage alarm inhibits and control of defeats and bypasses was not in place for vessel management system, drilling control system and related PLCs etc. Formal management system to be implemented for alarm inhibits and control of defeats and bypasses. Within one month Accept System is being established on the bridge for logging and tracking these items. Marine Department, Drilling Department, and Engineering Department

25%

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of knowledge by training relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Within two months

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing

All Departments

3.3.6

It was communicated that since the Transocean to confirm that the correct Within four Accept maintenance system has been changed maintenance routines for the Deepwater months from EMPAC to RMS II maintenance Horizon have been loaded into RMS II. routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources. Change over from EMPAC to RMS II Review maintenance routines to evenly Within four Accept maintenance systems has resulted in distribute throughout the year to ease months poor distribution of the maintenance maintenance burden on resources. routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours.

All Departmenta l Supervisors

3.3.7

All Departmenta l Supervisors

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION AUDIT ASSET ACTUAL RESPONSIB SIGNED Percen LE TEAM ACCEPTANC COMPLET OFF BY t DEPARTME ADVISED E OR ION DATE Compl NT COMPLET CHANGE ete ION Complete 1 Month or less LATEST UPDATE

NO Action

In progress

MECHANICAL SUPERVISOR
2.1.1 The coupling guard on the Mathey wire line unit is inadequate and the coupling guard on main engine #2 pre-lube oil pump was missing. Both couplings are exposed. Modify coupling guard on Mathey wire Prior to use Accept line unit such that rotating equipment is Immediately enclosed. Coupling guard on main engine #2 pre-lube oil pump to be installed. Within two months Accept Mechanical Supervisor

2.1.2

Potential fall through hazard identified Extend handrails at the crown access at the crown access platform of the mini platform of the mini derrick in way of derrick in way of the fast line. the fast line to remove potential fall through hazard.

Mechanical Supervisor

3.2.6

UT thickness inspection reports for high pressure piping were generally poor. The report did not include original thickness, percentage diminution and some isometrics were missing. Consequently the reports amounted to little more than numbers thus the actual pipe work condition could not be established.

Transocean expectations regarding Within four content of the UT thickness inspection months reports to be communicated to the third party. Reports to include original thickness, percentage diminution and all isometrics. Pipe work assessment to determine condition to be made.

Accept Engineering to provide original thickness of piping

Paul Johnson James Kent

3.2.13

According to maintenance history and NDT inspection reports inspection of the crown block and traveling block is not being conducted in line with the 365 day maintenance procedures. Results of the wobble test were not recorded and MPI was not conducted in accordance with task 4 of the procedure.

Ensure all points identified on the 365 Within two day crown and traveling block months maintenance routines are performed in accordance with the procedure tasks and clearly documented.

Accept

Maintenance Supervisor and Mechanical Supervisor

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of knowledge by training relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Within two months

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

All Departments

3.3.4

All rig air regulators installed in the Renew all defective derrick mounted rig Within one derrick at fingerboard control cubicles air regulators. month etc. had severe air leaks due to various defects. The starboard side moon pool utility winch control lever was seized and hence the winch was non operational. Starboard side moon pool utility winch to be made operational. Within one month

3.6.5

Accept To be completed within 6 months. Accept

Mechanical Supervisor

Mechanical Supervisor

3.3.6

It was communicated that since the Transocean to confirm that the correct Within four Accept maintenance system has been changed maintenance routines for the Deepwater months from EMPAC to RMS II maintenance Horizon have been loaded into RMS II. routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources. Change over from EMPAC to RMS II Review maintenance routines to evenly Within four Accept maintenance systems has resulted in distribute throughout the year to ease months poor distribution of the maintenance maintenance burden on resources. routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours. Thermographic inspection of the switchboards and electrical switchgear has not been performed since the rig entered service in 2000. Undertake Thermographic inspection of Within four switchboards and MCC to locate and months eradicate any potential hot spots to prevent electrical failures. Accept Waiting for third party technician to place thermo graphic windows for the camera

All Departmenta l Supervisors

3.3.7

All Departmenta l Supervisors

3.3.13

Electrical Supervisor

3.6.4

The operators cab windscreen wipers are either non functional or have missing wiper blades on the port and starboard deck cranes, knuckle boom crane and riser gantry crane. The starboard side moon pool utility winch control lever was seized and hence the winch was non operational. The rope guard on the port aft moon pool utility winch is broken.

All windscreen wipers to be fully operational on the port and starboard deck cranes, knuckle boom crane and riser gantry crane.

Within two months

Accept

Mechanical Supervisor

3.6.5

Starboard side moon pool utility winch to be made operational.

Within one month

Accept

Mechanical Supervisor

3.6.7

Repair the broken rope guard on the port Within one aft moon pool utility winch. month

Accept

Mechanical Supervisor

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION AUDIT ASSET ACTU RESPONSIB LE TEAM ACCEPTANCE AL DEPARTME ADVISED OR CHANGE COM NT COMPLET PLET ION ION DATE Complete 1 Month or less Electrical Supervisor SIGNED OFF BY Percent Complete

NO Action 1.3.1 With the exception of the DP control system a comprehensive software management system for critical software such as the BOP control system, ballast control system and vessel management system could not be demonstrated.

In progress

LATEST UPDATE

ELECTRICAL SUPERVISOR
Target to be set for completion of Within three Accept auditable software management system. months Software verification schedule to be risk based i.e. most critical software to be checked/backed up first. System to be subject to periodic audit in line with Transocean Advisory Notice. Drilling and Well Operations Practice

2.3.1

A formal system to manage alarm inhibits and control of defeats and bypasses was not in place for vessel management system, drilling control system and related PLCs etc.

Formal management system to be implemented for alarm inhibits and control of defeats and bypasses.

Within one month

Accept System is being established on the bridge for logging and tracking these items.

Marine Department, Drilling Department, and Engineering Department

25%

3.2.1

Best practice regarding secondary retention of derrick mounted CCTV cameras was not in place. Only one barrier had been applied to the camera casing, the pan and tilt head was not provided with secondary retention.

Best practice for secondary retention to be applied to the derrick mounted CCTV cameras. Camera casing, pan, and tilt head to be provided with independent means of secondary retention as per the DROPS handbook.

Within monthly derrick inspection cycle

Accept There is no means of installing a secondary retention to the pan and tilt head, the rig will source a possible means of securing the unit.

Electrical Supervisor

3.3.2

Current injection tests of the main Provide update on status/requirements breakers have not been performed. It is regarding current injection testing of usual that this is done during the 5-year main breakers. SPS.

Within four Accept months Will contact third party for current injection procedures and time frame.

Maintenance Supervisor, Electrical Supervisor and James Kent Electrical Supervisor Electrical Supervisor

3.3.3

3.3.5

It could not be demonstrated that the high voltage test gear is periodically calibrated. The drillers cabin fire and gas panel had numerous alarm conditions displayed. These included; fire alarm active, fault ESD active, fault fire and gas active and fire and gas override active. The Driller and Assistant Driller on tour were unaware of the fault conditions.

High voltage test gear to be periodically Within three Accept calibrated. months Investigate and rectify various fault Within one conditions displayed on the drillers week cabin fire and gas panel. This panel is a slave from the main panel located on the bridge. Accept Simrad SVC technician coming out to the rig to assist with troubleshooting. Should be corrected within 2 weeks.

3.3.6

It was communicated that since the Transocean to confirm that the correct Within four Accept maintenance system has been changed maintenance routines for the Deepwater months from EMPAC to RMS II maintenance Horizon have been loaded into RMS II. routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources. Change over from EMPAC to RMS II Review maintenance routines to evenly Within four Accept maintenance systems has resulted in distribute throughout the year to ease months poor distribution of the maintenance maintenance burden on resources. routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours.

All Departmenta l Supervisors

3.3.7

All Departmenta l Supervisors

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of knowledge by training relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Within two months

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

All Departments

3.3.3

3.3.5

It could not be demonstrated that the high voltage test gear is periodically calibrated. The drillers cabin fire and gas panel had numerous alarm conditions displayed. These included; fire alarm active, fault ESD active, fault fire and gas active and fire and gas override active. The Driller and Assistant Driller on tour were unaware of the fault conditions.

High voltage test gear to be periodically Within three Accept calibrated. months Investigate and rectify various fault Within one conditions displayed on the drillers week cabin fire and gas panel. This panel is a slave from the main panel located on the bridge. Accept Simrad SVC technician coming out to the rig to assist with troubleshooting. Should be corrected within 2 weeks.

Electrical Supervisor Electrical Supervisor

3.3.6

It was communicated that since the Transocean to confirm that the correct Within four Accept maintenance system has been changed maintenance routines for the Deepwater months from EMPAC to RMS II maintenance Horizon have been loaded into RMS II. routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources. Change over from EMPAC to RMS II Review maintenance routines to evenly Within four Accept maintenance systems has resulted in distribute throughout the year to ease months poor distribution of the maintenance maintenance burden on resources. routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours.

All Departmenta l Supervisors

3.3.7

All Departmenta l Supervisors

3.3.11

3.3.13

The air conditioning unit installed in the port deck crane cabin cab is non operational. The cabin is therefore uncomfortable. Thermographic inspection of the switchboards and electrical switchgear has not been performed since the rig entered service in 2000.

Port deck crane operators cabin air conditioning unit to be repaired / replaced.

Within one month

Accept

Electrical Supervisor

Undertake Thermographic inspection of Within four switchboards and MCC to locate and months eradicate any potential hot spots to prevent electrical failures.

Accept Waiting for third party technician to place thermo graphic windows for the camera

Electrical Supervisor

3.6.6 4.3.1

The riser gantry crane CCTV monitor is not working. Siemens has phased out the SIMATIC 5 product range, which is used on the PRS and iron roughneck.

CCTV monitor on riser gantry crane to be made operational. Address obsolescence issues, update PRS and iron roughneck PLCs from SIMATIC 5 to SIMATIC 7 product range which is supported by Siemens.

Within one month Within one year

Accept This is being addressed by the rig and should be completed during the 2011 SPS

Electrical Supervisor Electrical Supervisor

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION AUDIT ASSET TEAM ACCEPTANCE ADVISED OR CHANGE COMPLET ION Complete Within one month Accept System is being established on the bridge for logging and tracking these items. ACTUAL RESPONSIB LE COMPLET DEPARTME ION DATE
NT

SIGNED OFF BY

Percent Comple te

NO Action 2.3.1

In progress

1 Month or less Marine Department, Drilling Department, and Engineering Department

LATEST UPDATE

CHIEF MATE
A formal system to manage alarm Formal management system to be inhibits and control of defeats and implemented for alarm inhibits and bypasses was not in place for control of defeats and bypasses. vessel management system, drilling control system and related PLCs etc.

25%

3.3.6

It was communicated that since the Transocean to confirm that the correct Within four Accept maintenance system has been maintenance routines for the Deepwater months changed from EMPAC to RMS II Horizon have been loaded into RMS II. maintenance routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources.

All Departmenta l Supervisors

3.3.7

Change over from EMPAC to Review maintenance routines to evenly Within four Accept RMS II maintenance systems has distribute throughout the year to ease months resulted in poor distribution of the maintenance burden on resources. maintenance routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours.

All Departmenta l Supervisors

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of knowledge by training relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Within two months

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

All Departments

4.3.3

A number of critical systems, watertight doors, seawater cooling systems, fire and gas detectors, etc. were either defective or non operational due to lack of onboard spares.

Spares philosophy regarding critical spares inventory to be reviewed to ensure equipment uptime and availability.

Within one year

Maintenance Department and Marine Department

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION AUDIT TEAM ADVISED COMPLETION ASSET ACTUAL RESPONSIB LE ACCEPTA COMPLET DEPARTME NCE OR ION DATE NT CHANGE Complete 1 Month or less BP SIGNED OFF BY Percent Complete

NO Action 1.1.3 There is a requirement for all contract and staff personnel involved in the management and supervision of drilling and well operations for BP to be knowledgeable of the Drilling and Well Operations Practice and associated Engineering Technical Practices. Relevant Transocean personnel were not aware of this requirement. The rigueur concerning close out of the previous audit findings has generally been unsatisfactory. There has been little sign of BP involvement evident and consequently many of the recommendations reported as closed out could not be adequately demonstrated to the audit team during this visit.

In progress

LATEST UPDATE

BP
The Drilling and Well Operations Practice and associated Engineering Technical Practices to be rolled out to relevant Transocean personnel to the point where they are knowledgeable of the contents. Drilling and Well Operations Practice Within six months

1.1.6

BP involvement required in closing out Immediately of audit recommendations. If a recommendation is rejected than formal risk mitigation to be documented. Six Point Plan

BP

2.1.3

BP HSE Policy posted in the accommodation is dated May 2002. The large crown mounted wire line turn down sheave is not provided with secondary retention arranged to catch the load. Inspection records to demonstrate that the sheave had been subject to periodic maintenance and inspection were not available.

Most recent version of BP HSE Policy to be made available and posted on the relevant HSE notice boards.

Within one month

Accept

BP

2.6.3

Install secondary retention wire sling Within two months arranged to catch load on the wire line turn down sheave otherwise implement formal pre use inspection routine.

Schlumberge r and BP

4.1.1

Completion of the HSE Consider using the HSE OJT process as Within three months OJT was required for all a training tool for all long term third Transocean personnel. party personnel on the rig. Long term third party personnel were not included in the process. The OJT covers permit to work and use of the various risk management tools. It would provide an effective means of ensuring that long term third party personnel were fully trained and conversant with the rig SMS.

Paul Johnson James Kent And BP

4.2.4

Completion of the HSE Consider using the HSE OJT process as Within six months OJT was required for all a training tool for all long term third Transocean personnel. party personnel on the rig. Long term third party personnel were not included in the process. The OJT covers permit to work and use of the various risk management tools. It would provide an effective means of ensuring that long term third party personnel were fully trained and conversant with the rig SMS.

Paul Johnson James Kent And BP

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION AUDIT ASSET ACCEPTANCE ACTUAL RESPONSIB LE TEAM OR CHANGE COMPLET DEPARTME ADVISED ION DATE NT COMPLET ION Complete 1 Month or less SIGNED OFF BY Percent Complete

NO Action 1.2.1 The test, middle and upper pipe ram BOP bonnets are original. They have not been subject to OEM inspection and recertification in accordance with API and OEM requirements. Transocean propose a change out plan commencing in 2010 for completion in 2011.

In progress Expedite overhaul of the test, middle and upper pipe ram bonnets which are original and have significantly surpassed the recommended recertification period. Otherwise expedite replacements. Drilling and Well Operations Practice In accordance with API recommended practice choke manifold to be opened up and fully inspected over a four year cycle. All valves to be removed for inspection and repairs to be documented.

LATEST UPDATE

SUBSEA
By end of 2009 Challenge Sub sea James Kent

2.2.9

According to maintenance history choke manifold valves have not been opened up for periodic inspection and overhaul in line with API recommended practice. Consequently only valves failing to meet pressure test requirements have been inspected.

At next Getting clarification of between API recommended wells period practice

Sub sea Maintenance Supervisor

20% SUB SEA working on setting up PM as per API requireme nts.

2.2.12

Annual maintenance routine requires pressure testing of each high pressure hose, choke and kill, and mud hoses for example. Review of the associated history files indicated that visual inspection only had been performed.

Annual maintenance Within four requirements for high months pressure hoses to be fulfilled. Pressure testing in accordance with table attached to the maintenance procedure to be undertaken.

Sub sea

2.2.14

Calibration certificate for the riser bolt torque wrench calibration equipment could not be provided.

Valid calibration Within one certificate to be available month onboard for the riser bolt torque wrench calibration equipment.

Accept

Sub sea

This item is checked during BOP testing which takes place every 14 days, Sub sea to begin checking and documenti ng tests in RMS 50% Have equipment waiting on transduce r to be able to be able to do certificatio n

2.2.12

Annual maintenance routine requires pressure testing of each high pressure hose, choke and kill, and mud hoses for example. Review of the associated history files indicated that visual inspection only had been performed.

Annual maintenance Within four requirements for high months pressure hoses to be fulfilled. Pressure testing in accordance with table attached to the maintenance procedure to be undertaken.

Sub sea

2.2.14

Calibration certificate for the riser bolt torque wrench calibration equipment could not be provided.

Valid calibration Within one certificate to be available month onboard for the riser bolt torque wrench calibration equipment.

Accept

Sub sea

This item is checked during BOP testing which takes place every 14 days, Sub sea to begin checking and documenti ng tests in RMS 50% Have equipment waiting on transduce r to be able to be able to do certificatio n

3.2.10

Much of the well control maintenance was either recorded in the Sub sea Engineers daily log book or on various spreadsheets. The level of well control related maintenance history recorded in RMS II was minimal by comparison.

Well control related Immediately Accept planned and corrective Followed up with RMS maintenance to be superueser who sent recorded in RMS II. This informantion to sub sea simplifies searching for on access history. maintenance history and inspection records.

Sub sea

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of Within two knowledge by training months relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

All Departments

3.3.6

It was communicated that since the maintenance system has been changed from EMPAC to RMS II maintenance routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources.

Transocean to confirm that Within four Accept the correct maintenance months routines for the Deepwater Horizon have been loaded into RMS II.

All Departmenta l Supervisors

3.3.7

Change over from EMPAC to RMS II maintenance systems has resulted in poor distribution of the maintenance routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours.

Review maintenance routines to evenly distribute throughout the year to ease maintenance burden on resources.

Within four Accept months

All Departmenta l Supervisors

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION AUDIT ASSET ACCEPTANCE ACTUAL RESPONSIB LE TEAM OR CHANGE COMPLET DEPARTME ADVISED ION DATE NT COMPLET ION Complete 1 Month or less SIGNED OFF BY Percent Complete

NO Action

In progress

LATEST UPDATE

MANAGEMENT PREFORMANCE/ASSET
1.3.2 No formal means in place to communicate overdue critical maintenance or defective equipment to the BP Well Site Leaders. Weekly maintenance Within one report to be updated / week modified to include all equipment defects and all overdue planned and corrective maintenance. Report to be submitted to the BP Well Site Leader on a weekly basis. Drilling and Well Operations Practice Challenge Paul Johnson James Kent

2.1.4

Although some general safety goals were in place, no structured annual Health and Safety Plan with measurable actions, completion dates and accountable persons was sighted.

An annual Health and Within three Challenge Safety Plan should be put months in place to formally manage ongoing HSE initiatives. The plan should have clear measurable targets with defined accountabilities.

Paul Johnson James Kent

2.1.6

The FOCUS improvement system was being used to track the status of actions arising from incidents. It was not possible during the audit, to ascertain the actual status of the actions arising from each report.

In conjunction with those Within one actions recorded within month the BP Traction system, BP should monitor the status of actions held on the Transocean Focus system which relate to incidents that have occurred on the Deepwater Horizon.

Challenge

Paul Johnson James Kent

2.2.3

Toe boards are not installed at the edges of a number of derrick walkways. Areas include at the crown in way of the block and fast line, at the fingerboard level at the dead line grating penetration, in way of the aft PRS control cabinets and at the access walkway in way of the forward PRS bridge. The standard of third party NDT inspection reports was woefully inadequate and at best poor. The reports presented for inspection contained insufficient detail of the actual components or areas inspected.

Toe boards to be provided At next Getting clarification of on open sided floors, between API RP 54 platforms, walkways in wells period CHALLENGED accordance with API RP 54

Will Kennedy, CHALLEN GED

2.2.13

Transocean to communicate clear terms of reference to third party NDT inspection company. Quality of NDT inspection reports to be significantly improved to reflect the actual components and areas inspected.

Prior to further NDT inspection work

Paul Johnson James Kent

2.2.19

Calibration of critical analogue and digital drilling instrumentation such as the dead weight indicator, well control related pressure gauges, top drive, and iron roughneck torque could not be demonstrated.

Calibration of critical Within six analogue and digital months drilling instrumentation to be undertaken and inspection reports maintained onboard.

Paul Johnson James Kent

2.6.1

The two year maintenance requirement to remove the derrick sheaves and snatch blocks for thorough inspection is not being rigorously applied. It could not be demonstrated when all sheaves were last removed from the derrick. For example the utility winch turn down sheave mounted under the crown of the mini derrick was heavily corroded UT thickness inspection reports for high pressure piping were generally poor. The report did not include original thickness, percentage diminution and some isometrics were missing. Consequently the reports amounted to little more than numbers thus the actual pipe work condition could not be established.

Derrick sheaves and Within two snatch blocks to be months removed from the derrick for disassembly and thorough inspection. Maintenance history to be updated with details of inspections.

Accept The rig will order new sheaves and replace existing sheaves.

Toolpusher Paul Johnson James Kent

3.2.6

Transocean expectations Within four Accept Engineering to regarding content of the months provide original thickness UT thickness inspection of piping reports to be communicated to the third party. Reports to include original thickness, percentage diminution and all isometrics. Pipe work assessment to determine condition to be made.

Paul Johnson James Kent

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of Within two knowledge by training months relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

All Departments

3.3.2

Current injection tests of the main breakers have not been performed. It is usual that this is done during the 5-year SPS.

Provide update on Within four status/requirements months regarding current injection testing of main breakers.

Accept Will contact third party for current injection procedures and time frame.

Maintenance Supervisor, Electrical Supervisor and James Kent All Departmenta l Supervisors

3.3.6

It was communicated that since the maintenance system has been changed from EMPAC to RMS II maintenance routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources. Change over from EMPAC to RMS II maintenance systems has resulted in poor distribution of the maintenance routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours.

Transocean to confirm that the correct maintenance routines for the Deepwater Horizon have been loaded into RMS II.

Within four Accept months

3.3.7

Review maintenance routines to evenly distribute throughout the year to ease maintenance burden on resources.

Within four Accept months

All Departmenta l Supervisors

4.1.1

4.2.4

4.2.5

4.3.2

Completion of the HSE OJT was required for all Transocean personnel. Long term third party personnel were not included in the process. The OJT covers permit to work and use of the various risk management tools. It would provide an effective means of ensuring that long term third party personnel were fully trained and conversant with the rig SMS. Completion of the HSE OJT was required for all Transocean personnel. Long term third party personnel were not included in the process. The OJT covers permit to work and use of the various risk management tools. It would provide an effective means of ensuring that long term third party personnel were fully trained and conversant with the rig SMS. The derrick specifically from the fingerboard level down was coated in a thick film of mud, a few inches deep in some places. No long term planning was evident with respect to potential equipment and system obsolescence issues.

Consider using the HSE Within three OJT process as a training months tool for all long term third party personnel on the rig.

Paul Johnson James Kent And BP

Consider using the HSE Within six OJT process as a training months tool for all long term third party personnel on the rig.

Paul Johnson James Kent And BP

Deep cleaning, pressure At next washing, of the derrick to between be undertaken. wells period Undertake a systematic Within one review of rig systems and year equipment to identify and address obsolescence issues. Challenge The rig has in place a 5 year budgetary maintenance plan.

Paul Johnson James Kent Paul Johnson James Kent

Rev Date 11-17-09

REF OBSERVATION RECOMMENDATION AUDIT ASSET ACCEPTANCE ACTUAL RESPONSIB LE TEAM OR CHANGE COMPLET DEPARTME ADVISED ION DATE NT COMPLET ION Complete 1 Month or less SIGNED OFF BY Percent Complete

NO Action 1.6.2 The proof load test certification for the man riding winches, utility winches, trolley beams and pad eyes were not available for inspection during the rig audit period.

In progress

LATEST UPDATE

DECKPUSHER
Ensure that the current Within one proof load test month certification for the man riding winches, utility winches, trolley beams and pad eyes are available on the rig for inspection. Should these be unavailable proof load testing to be carried out by competent person. Golden Rules of Safety Accept Need at least 60 days to test all equipment. WAITING ON2009 BOOK FROM HADCO. Deck Pusher

75%

2.6.6

The man riding winch wire certificates indicate that their wires have been in service for over 2 years which is outside Transoceans policy. Visual inspection of the wires indicated that they are still externally in satisfactory condition. Both deck crane main block hooks are of the spring latch type. Transocean requirements specify positive locking latch type to be fitted.

Man riding winch wires to Within one be changed out at 2 year month frequency in line with Transocean policy.

Accept

7/29/09 Deck Pusher certification onboard

2.6.7

In accordance with Within one Transocean policy replace month the spring latch type main block hooks on both deck cranes, to the positive latch type.

Accept The rig will source positive locking latches. E-Mails sent,Still waiting on reply for source.

Deck Pusher

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of Within two knowledge by training months relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

All Departments

3.3.6

It was communicated that since the maintenance system has been changed from EMPAC to RMS II maintenance routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources. Change over from EMPAC to RMS II maintenance systems has resulted in poor distribution of the maintenance routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours.

Transocean to confirm that the correct maintenance routines for the Deepwater Horizon have been loaded into RMS II.

Within four Accept months

All Departmenta l Supervisors

3.3.7

Review maintenance routines to evenly distribute throughout the year to ease maintenance burden on resources.

Within four Accept months

All Departmenta l Supervisors

4.6.1

The starboard crane boom is showing signs of damaged paint work and light corrosion where the vertical boom lattice chords meet the boom main chords.

Address the light corrosion and damaged paint work on the starboard crane boom where the vertical boom lattice chords meet the boom main cords.

Within one year

Accept

Deck Pusher

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION AUDIT TEAM ADVISED COMPLETION ASSET ACTUAL RESPONSIB LE ACCEPTANCE COMPLET DEPARTME OR CHANGE ION DATE
NT

NO Action 2.2.2 Derrick gates/hatches were not fitted with safety lanyards.

In progress

Complete

1 Month or less Toolpusher, working on making up JOB Will Kennedy, CHALLEN GED

Perce nt Compl ete LATEST UPDATE

SIGNED OFF BY

TOOLPUSHER
Derrick gates/hatches to be provided with adequate means of secondary retention. Toe boards to be provided on open sided floors, platforms, walkways in accordance with API RP 54 Within monthly derrick inspection cycle. Accept

2.2.3

Toe boards are not installed at the edges of a number of derrick walkways. Areas include at the crown in way of the block and fast line, at the fingerboard level at the dead line grating penetration, in way of the aft PRS control cabinets and at the access walkway in way of the forward PRS bridge.

At next between wells Getting period clarification of API RP 54 CHALLENGED

2.2.4

The crown bumper timbers are not equipped with safety slings in accordance with API recommended practice.

2.2.6

Safety slings to be installed on the crown bumper timbers in accordance with API RP 54 Numerous loose and detached grating Survey all derrick grating clamps were identified and retrieved clamps. Loose items to be during the derrick inspection. Loose secured and grating clamps prevailed on the derrick missing/detached items to hatches while the detached clamps were be replaced. found mainly at the crown platform.

Within two months

Getting clarification of API RP 54, CHALLENGED Accept

CHALLEN GED

Within monthly derrick inspection cycle.

Toolpusher, working on making up JOB

2.6.1

The two year maintenance requirement to remove the derrick sheaves and snatch blocks for thorough inspection is not being rigorously applied. It could not be demonstrated when all sheaves were last removed from the derrick. For example the utility winch turn down sheave mounted under the crown of the mini derrick was heavily corroded

Derrick sheaves and Within two months snatch blocks to be removed from the derrick for disassembly and thorough inspection. Maintenance history to be updated with details of inspections.

Accept The rig will order new sheaves and replace existing sheaves.

Toolpusher Paul Johnson James Kent

3.2.15

The aft window in the Assistant Drillers Change out the badly Within three months cabin is badly cracked. Due to this there cracked aft window in the is very limited vision of the pipe Assistant Drillers cabin. conveyor and surrounding area.

Accept Third party window installer to be sourced After discussion with TOOLPUSHER have requested engineering involvemnt to detrmine if LEXAN is suitable substitute.

Toolpusher

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of Within two months knowledge by training relevant rig floor personnel in the use of RMS II2 and ensure that all non-conformances identified by the DROPS inspection program are being managed effectively within RMS II.

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

All Departments

3.2.19

Housekeeping under the catwalk machine belt is unacceptable with excessive trash accumulation evident.

3.3.6

It was communicated that since the maintenance system has been changed from EMPAC to RMS II maintenance routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources.

Items of trash to be Within one week removed from under the catwalk machine belt, specifically nearest the rig floor Transocean to confirm that Within four months the correct maintenance routines for the Deepwater Horizon have been loaded into RMS II.

Accept

Toolpusher

Wheeler

Accept

All Departmenta l Supervisors

3.3.7

Change over from EMPAC to RMS II maintenance systems has resulted in poor distribution of the maintenance routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours. Dolly rail spreader beam at the monkey board has sustained significant mechanical damage, and is bent and deformed as a result.

Review maintenance routines to evenly distribute throughout the year to ease maintenance burden on resources.

Within four months

Accept

All Departmenta l Supervisors

4.2.1

4.2.3

Localized surface and deep corrosion identified on the crown support beams and crown block/fast line pedestals. The derrick specifically from the fingerboard level down was coated in a thick film of mud, a few inches deep in some places.

4.2.5

Plan to change out damaged dolly rail spreader beam at the monkey board level of the derrick. Derrick builders procedures and specifications to be followed. Address corrosion on the crown support beams and crown block/fast line pedestals. Deep cleaning, pressure washing, of the derrick to be undertaken.

Within six months

Assessment of beam will performed.

Toolpusher

Within six months

Accept

Toolpusher

At next between wells period

Paul Johnson James Kent

Rev Date 11-11-09

REF OBSERVATION RECOMMENDATION
RESPONSIBLE AUDIT ASSET ACTUAL TEAM ACCEPTANCE COMPLET DEPARTMENT ADVISED OR CHANGE ION DATE COMPLET ION Complete 1 Month or less

SIGNED OFF Percent BY Complet e

NO Action 2.3.1 A formal system to manage alarm inhibits and control of defeats and bypasses was not in place for vessel management system, drilling control system and related PLCs etc.

In progress Formal management system to be implemented for alarm inhibits and control of defeats and bypasses.

LATEST UPDATE

CAPTAIN
Within one month Accept System is being established on the bridge for logging and tracking these items. Marine Department, Drilling Department, and Engineering Department

25%

3.2.17

When questioned about DROPS inspections drill crews stated that inspections were made in accordance with the maintenance routines generated in RMS II. However drilling personnel including the Toolpusher were not yet sufficiently knowledgeable in how to interrogate the system to demonstrate the routines and history.

Address the lack of Within two knowledge by training months relevant rig floor personnel in the use of RMS II2 and ensure that all nonconformances identified by the DROPS inspection program are being managed effectively within RMS II.

Accept The rig has just under gone a change over of maintenance systems all personnel are still trying to familiarize themselves with the system. This will be an ongoing issue for the next few months.

All Departments

3.3.6

It was communicated that since the maintenance system has been changed from EMPAC to RMS II maintenance routines now consist of existing rig specific, existing Transocean generic and ex GSF best practice routines. It has been left with the rig to determine those that are applicable. Non applicable routines have to be sifted out using the change request system. The current philosophy is too onerous on rig resources. Change over from EMPAC to RMS II maintenance systems has resulted in poor distribution of the maintenance routines. For example mechanics routines amount to 1476.5 hours in January 2010, The ET has been assigned 244 hours for July 2010, the electrician has been assigned 3878.5 hours for January 2010; the marine department has been assigned 4265 hours for September 2009, etc for other disciplines. In some cases maintenance man hours exceed actual available man hours. A number of critical systems, watertight doors, seawater cooling systems, fire and gas detectors, etc. were either defective or non operational due to lack of onboard spares.

Transocean to confirm that Within four Accept the correct maintenance months routines for the Deepwater Horizon have been loaded into RMS II.

All Departmental Supervisors

3.3.7

Review maintenance routines to evenly distribute throughout the year to ease maintenance burden on resources.

Within four Accept months

All Departmental Supervisors

4.3.3

Spares philosophy Within one regarding critical spares year inventory to be reviewed to ensure equipment uptime and availability.

Maintenance Department and Marine Department