SAROOJ CONSTRUCTION COMPANYQuarterly Newsletter Volume 4, Issue 3 Jul– Aug - Sep 2012

IN THIS ISSUE: SCC 054 PROJECT - PREAMBLE - CAMP & SITE ESTABLISHMENT - ACCESS ROADS & AIRTRIPS - CELLAR & CONDUCTOR PIPE - WATER PITS & MUD PITS - RESTORATION - SAROOJ TEAM - ONE MILLION HOURS WITHOUT LTI - SAFE @ WORK - PROJECT IN PICTURES - GENERAL PROJECT FEATURES - SAROOJ NEWS - SAROOJ IN THE MEDIA

BLACK GOLD

Message From the General Manager…

Like several other countries in the Middle East, Oman is an oil and gas producer since 1968. The production level varied between 500,000 bpd and 1,000,000 bpd in the last four decades. Fuels are found in scattered oil fields mainly on-shore but also off-shore in the Musandam Province. The nature of the terrain (mountains, sabkha, sand dunes etc), the existing formations and the type of oil constitute challenges and intensive drilling programs es-pecially when using new Enhanced Oil Recovery (EOR) techniques like steam injection.

Sarooj and their group have accompanied the oil and gas industry since the early seventies to provide services at various stages of the production process: exploration, development, and conveyance. They have built access roads, rig locations, right-of-ways, airstrips, living quarters, industrial facilities, flowlines, treatment plants, gathering stations, and production stations. They have provided resources and local knowledge for a large number of companies such as PDO, Oxy, ElF, Total, Amoco, Arco, Hunt Oil, Maersk, Indago (RAK), Petrotel, and many others.

Sarooj were selected to undertake a three-plus-one year service contract for a major upstream operator namely Oxy Mukhaizna LLC. They have been working for almost two years without any lost time injury (LTI). Sarooj takes pride to work for such eminent players in the oil and gas industry.

Jad KaramGeneral Manager

CONTENTS

Sc–54 PREAMBLE

CAMP & SITE ESTABLISHMENT

ACCESS ROADS & AIRTRIPS

CELLAR & CONDUTOR PIPE

WATER PITS AND MUD PITS

RESTORATION

SCC 054 TEAM

ONE MILLION OUR WITHOUT LTI

PROJECT IN PICTURES

SAROOJ NEWS

1

SCC IN THE MEDIA

GENERAL PROJECT FEATURES

SCC 054 - OXY

OVERVIEW

The Project:

The Client:

The Main Contractor:

The Project Manager

Location:

Contract Duration:

Project Value

Type of works

Earthworks Service Contract

Occidental Mukhaizna LLC

Sarooj Construction Company LLC

Khadim HUSSEIN

Mukhaizna - Wusta Province - Oman

3 + 1 Years

About 42,000,000 U$

Rig Locations - Access Road - Airtrip

:

:

2

Airstrip

Oil Drilling Rig on Its Platform

Steam Production

SCC 054 - PREAMBLE

Preamble

Drilling rigs cost a lot of money on a daily basis. It is essential to minimize their time when they are moved from a location to another and set-up to start drilling again. In order to achieve that objective, access roads must be built to reach the new locations and preparation works provided well in advance of the rig's arrival to site.

Sarooj works are located on a producing oilfield and, therefore, they are working in live environment requiring additional care to ensure people's safety and asset protection. The reservoir yields heavy oil and the operator decided to use en-hanced oil recovery techniques to augment the production. This is achieved by injecting steam into the formation reduc-ing thus the viscosity of heavy oil. Consequently, an intensive drilling program is implemented.

The works are carried out in the vicinity of oil drilling rigs, flow lines, donkey pumps, well head completion, water treat-ment plants, steam producing plant, gathering stations, power houses, production stations, and flares. This creates real challenge in terms of vigilance and care.

3

‘Donkey’ Pump

Working near Pumps

Special rigs tailored for Mukhaizna

Production station and Flare

SCC 054 - CAMP & SITE ESTABLISHMENT

Camp and Site Establishment

In harsh working conditions, it is vital to provide care and welfare to personnel and staff. Sarooj has built accommodation facilities to the best standards and provided good catering and messing facilities, recreation rooms, clinic and mosque. Residents enjoy full board including laundry services. Emergency drills are often carried out to keep preparedness and awareness alive.

In parallel, workshop and yard were built to high standards to ensure that maintenance plan for equipment and vehicles is meticulously implemented and monitored.

4Flowline On Sleepers

Borrow Pits & Preparation of Fill Materials

Borrow pits are selected in approved areas by the Ministry of Environment and Climatic Affairs (MECA). The purpose is to cause minimum impact on fauna and flora and to restore nature as close as possible to its original state. Generally, materials are borrowed from upper layers of soil, not excavating deeper than 1.5m from the surface and always avoiding to remove trees and bushes. The materials are then wetted and pre-mixed in the borrow pit before they are loaded and hauled to site. For sub-base materials, they are treated either by mobile screens or grizzlies to achieve the required gradation. Upon completion, the borrow pits are cleared from loose materials and their sides sloped gently from the existing surroundings down to lower excavated areas.

Borrows Pits

SCC 054 - ACCESS ROADS & AIRTRIPS

Access Roads & Airstrips

These are track roads, wide enough to ensure safe passage of the convoy and strong enough to carry the heavy weights on the axles. On exploration wells usually these roads are long and may reach up to 100 km in some cases. On production fields, where a plan is drawn, avenues and main arteries are built across the field and short finger roads are constructed to reach the specific location. The main roads are generally wider (up to 10m carriage way with 2m shoulders on the side). The finger roads are 7 to 8 meters wide and a car park area is provided adjacent to the location. The route is cleared along the right-of-way, the existing ground is leveled, watered, and compacted ready to receive embankment and sub-base layers. The design of these roads changes when they are built on sand dunes, sabkha, mountains, or alluvial deposits.

On sand, the dunes are leveled to follow a certain profile and thicker layers of fill materials are constructed to ensure proper distribution of loads under the vehicles tires. In sabkha areas, similar care should be taken to spread the loads to the thick body of the road reducing thus the pressures on the weak sabkha. Sometimes, geogrid materials such as Tensar are used to reinforce the structure. In dune areas, the choice of the route should take into consideration the moving sands and the direction of the pre-vailing wind in order to avoid sand accumulation on the road.

These track access roads require regular maintenance such as grading and compacting or even re-sheeting i.e., building up a new layer when the surface has been severally damaged or eroded. Considering the possibility of vehicle roll-overs, the embankment should be kept low with reference to existing ground and the road sides leveled and cleared from rocks or obstacles to minimize the risk of accidents occurrence. However, they should be high enough to avoid being inundated during heavy rainfalls. Super elevations are used on curves and sign boards erected to guide road users. In watercourses, Irish crossing are designed and the road protected with cut-off walls, gabions or riprap stones.

Sarooj is also responsible to continuously maintain and upgrade the airstrips for safe aircraft operations, until the runway is given a permanent asphalt pavement.

5

ATR Leveling Sub-Base

Main Avenue

Main Access Roads

Working Near Pipelines

SCC 054 - CELLAR & CONDUCTOR PIPE

6

Schramm Rig Drilling for Conductor Pipe

The Platform

The Cellar and Conductor Pipe

This is the working area for the rig. Usually, its size varies from 8,000 m² to 11,000 m² depending on the rig size. The platform does not accommodate the rig only but it offers space for offices, mud tanks and pumps, chemicals, pipes, generators, and control room. The platform should be raised above surrounding ground to avoid flowing rain water and inundations. It is built around the center of the well to be drilled and requires certain facilities to it: a pipe storage area for large stock of joints, a sewage water holding tank for offices and site latrines, a run-off area to take to extra length of the mast when erecting the rig, earth pits for electrical installations. If possible, the platform would be positioned in such a manner that takes into account the direction of prevailing winds and the sunlight coming in the operator's eyes.

A very important part of the works is the cellar and the conductor pipe. Once more, in view of minimizing rig's idle time, a steel conductor pipe is installed in the ground exactly at the point where the drilling will take place. This pipe will act as a guide for the oil rig. The pipe should go deep enough to be anchored preferably in the bedrock to ensure stability and minimize chances of back pressures of drilling mud reaching the underside of the rig location as this may affect the rig stability. The conductor pipe is then concreted all around to form a monolithic block with its surround-ings. The necessary excavation for its installation is achieved either by excavator or by drilling with a suitable rig and grouting the annular space.

At its top and near the surface, a chamber called cellar is constructed, either by using reinforced concrete or steel frame and plates. It is advisable to weld the conductor pipe to the cellar's reinforcement to add on its stability. A sump would be provided in the floor slab, iron steps or ladder and a grating to cover its top around the protruding conductor pipe. On some rigs, a 'mouse hole' and a 'rat hole' are also provided.

Conductor Pipe Ready

SC54

SCC 054 - WATER PITS & MUD PITS

7

Concrete Works

On some locations, particularly for heavy rigs, reinforced concrete foundations and slabs may be required under the rig's footprints to avoid any differential settlement. A network of channels and troughs is sometimes required to guide fluids and mud to the pits. These drains would also collect water coming from washing various parts of the rig's com-ponents. For deep wells that would take months to complete extra thin concrete slabs are cast to keep the working place tidy, enhancing thus housekeeping.

Pipelines and Access Roads

Pipelines

Fencing Around the Pit and Access Gate

HDPE Liming to Pits

The Pits

A large volume of water is required for drilling operations. Water pits are built and lined with HDPE membrane to avoid loss of water in the ground and sides of the pit. The cuttings generated from the well bore are directed to mud pits, also lined with HDPE membrane. The capacity of these pits varies from 2000 to 4000 m³. A sedimentation process takes place in the mud pit and surplus water may be directed to the water pit. These pits must be enclosed to avoid intrusions in that dangerous area, particularly from animals that may lose their lives by drowning. Actually, in many instances on exploration activities, the whole location is fenced and access is restricted.

SCC 054 - RESTORATION

8

Camp site

Sometimes, camp sites are required to be prepared for the installation of accommodation units, kitchen, recreation and toilet facilities. These 100m x 100m sites are fenced and car park areas are provided outside and access controlled by barriers. Usually the camp sites are built at a distance from the rig location so that personnel are away from noise and enjoy being in a different environment for some time. Septic tanks and holding tanks are built prior to mobilization and a sewage pipe is laid between the tanks and the location (about 80m). Earthing pits are provided as well as garbage pits to collect domestic wastes. A wind sock may be erected in the camp site.

Restoration

when drilling operations are complete, evaluation of results take place. Meanwhile, the location is kept enclosed and safe from intrusion. The hazardous wastes are transported to approved disposal facilities or treatment plants.

Once the site is made inert, restoration works may start. Imported materials are removed and the areas are leveled in a manner to re-integrate the site into the surrounding landscape. In national parks and Oryx sanctuaries, even roads are removed. In these areas foreign water cannot be brought into the sanctuary to avoid bacteria invasions.

Working Environment

Rig Location

SAROOJSC 054

9

SCC 054 - OXY - SAROOJ TEAM

Khadim HUSSAIN (Project Manager)

Sayed Khaled HUSSEIN (Site Engineer) Girish KUMAR (Drilling Supervisor)

Ali Salim AL WAHEBI (Transport Incharge) Said AL DARMAKI (Transport in Charge) Sajar AYOOB (Admin)

Mohammad Darwish Al DADJALI (Admin)

Bala KRISHNAN (LabTechnician)

Syed QUALIDUDDIN (HSE Lead) Mohammad Ismail AL MAMARI (HSE Advisor)

Liju PAUL (Workshop Manager) Muzamal HUSSAIN (Supervisor)

Yousuf Al BUSAFI (HSE Advisor)

10

Dilbahar AHMAD (Site Supervisor) Abu JAFAR (Site Supervisor)

Hazrat HUSSAIN (Supervisor)

Jagadeesh A Drilling (Site Supervisor)

Jamshed HUSSAIN (Site Supervisor) Kalyan K (Site Supervisor)

Mohammad BASIT (Asst Land Surveyor)

Mohammad Moinuddin GROUTING (Site Supervisor)

Mohammad SHAFIQ (Site Supervisor)

Moris SAMUEL (Site Supervisor) Noman ASLAM (Site Supervisor) Raj RAMACANT (QAQC)

Rajneesh KUMAR (Site Supervisor) Sudeesh PD (Drilling Site Supervisor) Syed AFJAL (Site Supervisor)

SCC 054 - OXY - SAROOJ TEAM

11

ONE MILLION HOURS NO LTI

One Million Our Without LTI

12

SAFE @ WORKSAFETY @ WORK

13

PROJECT In PICTURES

14

PROJECT In PICTURES

SCC 054 - GENERAL PROJECT FEATURES

15

GENERAL PROJECT FEATURES

Area of Site 40 Km x 10 Km

Volume of Fill 3,500,000 M³

Number of Rig Locations 800 No

Length of Access Roads 500 Km

Lenght of Condutor Pipes 12 m

Areas of Pits 2,000,000 M³

Camp Capacity 350 People

GENERAL PROJECT FEATURES

Area of Site 40 Km x 10 Km

Volume of Fill 3,500,000 M³

Number of Rig Locations 800 No

Length of Access Roads 500 Km

Length of Conductor Pipes 12 m

Areas of Pits 2,000,000 M³

Camp Capacity 350 People

16

SAROOJ NEWS

Sarooj General Manager, Mr. Jad Karam will now spend some of his time in Dubai to develop the group's business abroad and give support to our activities in Oman.

Sarooj have now been officially informed that the Tender Board has awarded them two projects: Madha road and Diba bridge.

Mr. Richard Willshaw is developing and structuring the commercial department so that it encompasses estimating and procurement.

Sarooj submitted tenders for various projects alone or in joint venture with international partners; Daewoo, China State, and Taylor Woodrow.

Synergy Petroleum International have been awarded a further order to supply insulated pipes to Oxy Mukhaizna and a prestigious project in Sohar Aluminum Rolling Mill for FATA llc. The contract covers the installation and commissioning of equipment and the fabrication and installation of pipe-work.

Sarooj is now intensively tendering for marine works for projects in the MENA region, Saudi Arabia, Ku-wait, Qatar, Morocco and Algeria.

As part of their social corporate responsibilities, Sarooj are sponsoring two Omani students' academic studies, one boy and one girl.

Masirah International have been awarded a multimillion dollar project to supply marine services to Carillion Alawi on their Sidab ROP project.

We have received commendation messages for the works carried out in Duqm for Omran. We congratulate the team led by engineer Suhail.

Final plans and drawings are being prepared for the construction of our base in Bid Bid. This will allow the company to improve efficiency and reduce costs

Monib Traboulsi continues delivering in-house safety training for office staff. Several achievement certifi-cates have been awarded.

SAROOJ IN THE MEDIA

CONSTRUCTING EXCELLENCE

Sarooj Construction Company LLC ● P.O.Box 1413, Postal Code 112 ● Ruwi, Sultanate of Oman.Telephone: (+968) 24 596001 ● Fax: (+968) 24 596011 ● Mobile: (+968) 95328698

www.sarooj.com ● info@sarooj.com