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Presentation to Canadian Diamond Drillers Association May 29, 2008.

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1 Presentation to Canadian Diamond Drillers Association May 29, 2008

2 About CAODC... Trade association representing the interests of drilling and well servicing contractors. Membership extends across the country – western and northern Canada, Ontario, Quebec, east coast. Members play a key role in Canada’s petroleum exploration and development, carrying out drilling and production operations, under contract, from oil and gas companies.

3 Represents a diverse membership... Drilling (51 members represent 898 land- based drilling rigs) Atlantic (6 members, fleet of 5 offshore rigs) Service Rig (73 members, fleet of 1140 service rigs) Associate division for companies needing to stay current with these industry (oil and gas companies, brokerage houses, banks, etc. Membership: 143).

4 Represents companies of all sizes... Examples: - Precision Drilling. Canada’s largest drilling contractor. Fleet of 242 rigs. - Nabors Drilling. A Canadian division of an international contractor. Head office based in Houston. Fleet of 90 rigs. - Pantera Drilling. A Canadian company operating 8 rigs. - It is part of the CAODC mandate to ensure that all voices, small and large, are given an equal platform.

5 Rigs in the Drilling Fleet - Conventional singles, doubles, triples - Coiled tubing - Slant rigs - Pad rigs - Top Drive rigs - Coring rigs

6 Mandate - The Association, founded by 10 drilling contractors in 1949, works on behalf of its membership in government and public arenas. - It is responsible for developing standard procedures for its members. - The past 50 years have seen an expansion of this mandate to include the areas of safety and training. - Today's regulatory and performance standards evolve out of the industry's cooperative efforts, made possible through the coordinating role of the CAODC.

7 Membership Agreements A member company commits to standards of performance contained in the Membership Agreement. These include: Guiding Principles for Worker Safety To Obtain/Maintain a Certificate of Recognition (COR) To discharge its duties to clients/CAODC/public / other drilling contractors with integrity. To perform services in a competent, safe, efficient, diligent and workmanlike manner and in accordance with good drilling practices To maintain its rigs and equipment in good working order and in keeping with the prevailing standards.

8 CAODC Governance Board of Directors 23 Members Representative of all Divisions Drilling Executive 15 Members Service Rig Executive 16 Members Atlantic Division Committee 5 Members President Association Executive (Past/Current Chairs of Executive Committees CAODC Staff

9 CAODC Governance The CAODC Board and Executive Committees are supported by various industry technical committees: Engineering and Technical Committee Health, Safety and Training Committee Accounting and Taxation Committees Human Resources and Training Committees Legal and Contracts Committee Forecasting Committee Apprenticeship Committee Information Technology Committee Each technical committee has a designated board member.

10 CAODC Products CAPP – CAODC Contract BOP Course (now provided through Enform) H2S Course (began as a CAODC product. This course is now offered through Enform (as H2S Alive) to the broader upstream industry) Environmental Guidelines Well Control Guidelines Recommended Practices (address range of operational procedures. Ie. overhead equipment) Materials to record activity/prove regulatory compliance (check lists, logbooks, tour sheets Operational References (Drilling Manual, Rig Move Manual)

11 Approach to Best Practices Industry committees are formed to determine best practices. These committees develop baseline recommendations that member companies can modify to suit their individual businesses.

12 MEMBERS VALUE PRODUCTS + MEMBERS VALUE RP DEVELOPMENT PROCESS Strong Community / Unified Industry Voice

13 Lobby Efforts Because of the unified support of its membership, CAODC can: Adopt the role of industry voice Build relationships with various levels of government. spearhead ambitious initiatives by bridging government regulators and industry. Value in products + value in participation = strong community / unified industry voice

14 Lobby Efforts Examples: TDG Rig Tech Trade Federal Hours of Service Value in products + value in participation = strong community / unified industry voice

15 Raising the Training Bar Rig Tech Apprenticeship (land- based drilling rigs) Service Rig Competency Program Value in products + value in participation = strong community / unified industry voice

16 Rig Tech Apprenticeship Canada is the only country in the world that has a full trades training program on oil and gas rigs. The Rig Tech trade is the only trade in Canada that has the same course content and criteria throughout the entire program (Other trades determine equivalency only at the journeymen level) Industry – through CAODC – worked closely with different provincial apprenticeship divisions to establish a trade that fit a drilling rig’s unique environment and that was the same in all provinces. Value in products + value in participation = strong community / unified industry voice

17 Rig Tech Apprenticeship The trade applies to: Motorhands Derrickhands Drillers The trade has 3 periods. For each period, an apprentice must: - log 1500 hours of On-the-Job-Training over 12 months - attend 4 weeks of tech training. Value in products + value in participation = strong community / unified industry voice

18 Rig Tech Apprenticeship Currently, across western Canada, there are: 3000 Rig Tech journeymen 3600 Rig Tech apprentices Value in products + value in participation = strong community / unified industry voice

19 Rig Tech Apprenticeship Reasons the CAODC Board decided to pursue the trade: Standard training measure across industry. Increase job safety through improved training tools. Challenge the public perception that rig work is ‘unskilled’ ‘dead-end’ job. Increase opportunities to market industry’s career opportunities. Value in products + value in participation = strong community / unified industry voice

20 Rig Tech Apprenticeship Alberta’s timeline for new trade development/designated:  minimum of 3 years;  possibly as long as 5 years. Rig Tech timeline for compulsory trade designation:  Less than 2 years. Because the drilling industry could coordinate this initiative through the CAODC, the Rig Tech trade made rapid progress through AIT’s designation and development process. Value in products + value in participation = strong community / unified industry voice

21 Service Rig Competency Program Gives service rigs an industry-wide standard. Assessment tools offered through Enform. Uses a framework that suits companies of all sizes. With this standard assessment tool, the industry leverages the long-standing practice of building experienced employees through on-the-job training. Value in products + value in participation = strong community / unified industry voice

22 Service Rig Competency Program Industry Support Value in products + value in participation = strong community / unified industry voice

23 On the web Thank you for your interest!


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