Comments relating to Part B, Instruction to Service Providers

Table 1
The following Subcontractors will be used to provide services where the Company has determined that the
Contactor is not competent.

Table 1 Table of Competencies

Operation Competent Not Competent Subcontractor
Preparation, refurbishment, maintenance, NC BJ Services
assembly of completion accessories and make-
up of completion sub assemblies
Installation of tubing completion with 13 NC BJ Tubular
Chrome tubing services
Slickline operation to install plugs, injection NC Otis J.V, Geo
valve and circulation valves Service
Slickline operation well evaluation survey’s C Otis J.V, Geo
pressure, PLT in memory mode Service
Electric line well evaluation PLT in real time C COSOL Logging
Company
Electric line well evaluation PLT in horizontal NC COSOL Logging
laterals with well tractor Company
Pumping operations C
Nitrogen operations C BJ Services
Coil tubing operations, standard operations C BJ Services
kick- off wells, killing wells, pumping fluids in
vertical or deviated wells
Coil tubing operations, specialised operations NC BJ Services
stimulation activities in horizontal laterals,
perforating, milling and fishing operations
Winterized well clean-ups NC BJ Services
Production testing C Geo Service
Workovers C

1.1 Project management capability

1.2 Engineering and Data gathering capability for stimulations, coil tubing operations in horizontal wells,
production data acquisition and well testing.

In your answer please ensure you also cover the following:

Would you use International sub-contractors and if so for what part of the work?
See table above

A listing of computer software you propose to use for the engineering and information gathering

BJ Services
For coiled tubing and nitrogen services, BJ Services will use engineering design software ‘Circa’ and pipe
management system “Cycle’. These programmes will be supported with ‘Perform’ nodal analysis and
operated from a MS Windows 98 or higher platform with MS Office general applications. Additionally, BJ
Services can make hydraulic fracturing engineering services available on request supported by ‘Myers’
and / or ‘FracPro’ engineering design software.
Data acquisition systems used ‘JobMaster’ in-house software packages together with integrated ‘Isoplex’
hardware or similar. Details of this software may be found in the technical sections of the tender
submission.

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Your experience with/knowledge of Chinese Gas fields.

1.3 Experience in operations such as Halliburton completion accessories, Tubing Retrievable Surface
Controlled Subsurface Safety Valve, TH permanent packer, RN/XN landing nipples. Weatherford Side
Pocket Mandrel with Dummy valve and Injection Valves. Make-up of completion sub-assemblies with
premium connections and 13 Cr tubing. Running of 13 Cr gas completions with premium connections
BJ have some ex-Halliburton employees, they were completion engineers and have many years
experience in completion tools installation and redressing skill, and Dummy valve and Injection Valves
installation experience with slick line.
As for the 13 cr connection make up, we can go though a third party locally. If customer required using
BJ tubular services to run 13 cr tubing, there are not required to use third party make up completion
tool sub assemblies.

Slickline operations experience in installing flowcontrol equipment such as PXN/PRN plugs, lock out of
Subsurface safety valve, installing insert safety valve, running of kickover tools with injection valves,
running of memory pressure gauges and PLT tools, Corrosion log survey’s etc.
BJ can sub-contract to qualified slick line service company, even BJ can provide supervisor to control slick
job. (Otis – JV, Geo-Services)
Otis J.V and Geo- service are all located in China, They are well known company for the slick line
operations.

Electricline operations experience in running reservoir evaluation tools in horizontal laterals with
welltractors, gyro survey’s, corrosion log survey’s etc.
BJ has the ability to find qualified Logging service company to fulfill customer’s request. (COSL logging
company)
CSOL Logging company is majored in Logging operations.

Coil tubing operations experience in kicking off new wells, also during wintertime, horizontal well clean-
ups and stimulation of horizontal laterals, coil tubing fishing operations, coil tubing milling operations.

BJ Services
BJ Services and its legacy companies have the longest coiled tubing experience in the world and were
largely responsible for the introduction of coiled tubing services to the industry over 40 years ago. The
current inventory of BJ services includes some 155 coiled tubing units operating in every major oil and gas
field in the world.
Additionally, BJ Services lead the industry with clean out technology and have published numerous SPE
papers and continue to evolve this science holding multiple patents of technique and equipment.
BJ Services also have a long and successful track record of navigating into multilateral wells and
performing remedial operations including stimulation using the patented Lateral Entry Guidance System
(LEGSTM)
While BJ Services perform fishing operations on a routine bases, BJ consider it prudent to retain the
services of specialist fishing vendors for specialized fishing operations in some circumstances. However,
basic fishing tools are carried and used by regular coiled tubing crews. This is also true for milling services.
BJ Services have a long service history of milling and fishing throughout the world.
Winter conditions in Canada for the bulk of BJ’s cold-weather experience with some limited exposure in
Siberia and Sakhalin Island, Russia. BJ’s China winter operational experience is in the Sheng Li oilfield but
the temperature is not as severe as is expected in Inner Mongolia.

Pumping operations experience in pumping of stimulation fluids, killing of gas wells in preparation of a
workover, fraccing of vertical wells and horizontal fraccing operations.

BJ Services

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See comments above regarding engineering design software. Additionally BJ Services legacy company
Western was the first ever company to introduce hydraulic fraccing to the industry. Fraccing is a primary
service that BJ provides throughout the world. In China, BJ have some 7 years of fraccing experience.
While it is not the intention of BJ Services to offer fraccing services in Cheng Bie, it is possible to offer
simulation engineering design services together with technique and product technologies. Note however
that BJ Services do not have a large experience level with open hole horizontal fraccing.

Nitrogen operations experience in kick-off new wells, nitrified stimulation operations, pressure testing and
purging of pipelines and pressure vessels.

BJ Services
BJ Services (formally Nowsco Well services) have been using cryogenic nitrogen since the early 1960s for
gas lifting, nitrified stimulation, purging, foam inerting, pressure testing, dewartering and leak detection
(including helium) services. While the majority of nitrogen pumping is cryogenic, BJ do also operate a
number of nitrogen generation units in North America.

Production testing operations experience on testing, well clean-up and reservoir evaluation on gas wells in
the Changbei area and specific in the arid winter and spring conditions or in similar reservoir and area’s
with similar climatologic circumstances
A qualified company Geo service company can be recommended, It has more than 30 years experience on
the well testing and production testing side.

Workover operations experience in workover gas wells with premium completions with TR SC-SSSV,
hydraulic set permanent packers and XN or RN landing nipples in the completions. Milling of packers,
repair of casing etc.
If BJ provided completion tools, BJ has the ability to handle workover job, Milling and Casing repair BJ
can rent tools from local company

In your answer please ensure you also cover the following;

How will you fill gaps in experience and which partners/sub-contractors you will enter into agreements to
fill these gaps of competencies.

Please provide experience of these partners/sub-contractors in the operations you will involve these parties
in.

1.4 Procurement of Subcontracts capabilities and Subcontract management capabilities.

In your answer please ensure you also cover the following:

What information do you have in-house on International Subcontractors?

How would you propose to maximise Chinese content of the work?

What kind of agreements do you envisage entering into?

BJ Services
Back to back subcontract.

Provide names and addresses of all parties (partners, subcontractors etc.) executing or responsible for more
than 20% of the total value of the work.

BJ Services Company
Wangjing Sci. and Tech Park

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2nd Floor Building 103
Chaoyang District
Beijing 100102

Selection criteria for sub-contractors and outline of contracting out procedure.

How do you ensure that sub-contractors are committed to HSE standards?

BJ Services
For BJ Services the company will develop HSE audit, training and monitor plan including but not limited
to the following:
 Global and local HSE performance and trends
 HSE plan and targets
 Facility audits
 Work site audits
 Regular safety meetings including all subcontractors
 Induction and training


1.5 Personnel and Organisation for the work

In your answer please ensure you also cover the following:

Please provide a corporate organisation chart showing corporate structure.

Please provide organisation charts for the management of the various phases of the work.

Where do you propose to base your offices for the execution of the different phases of the work ?

Can you provide office accommodation and all normal associated services for client personnel in your
proposed offices?

Please give brief details of your existing offices, operating bases, workshops etc.

Please list details of the key positions you see as necessary for the work, and give examples of typical
personnel that you have for such positions.

Please provide details of your current number of directly employed staff for each main discipline/category
required for the work and what percentage per discipline/category are currently employed on existing work.

Are there personnel in your organisation who have recently worked overseas before? Please give details of
the persons and the work.

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