OFFSHORE CONSTRUCTIONS - CONTRACTS OF MORE THAN 400 MILLION USD FOR GSP

PIPELAY CONTRACTOR OF OLYMPIA PROJECT - 269 MILLION USD CONTRACT

GSP INVESTS APPROXIMATELY

12 MILLION USD FOR THE UPGRADE AND RECLASSIFICATION

OF GSP ORIZONT

THE 1800 TONS CRANE

ON ITS WAY HOME

GSP NEPTUN

URIERULCwww.gspdrilling.com

december 2009

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CONTENT

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4 NEWS

8 THE TURKEY’S ROLE IN ENSURING THE

ENERGY SECURITY IN THE BLACK SEA

REGION

12 UPETROM GRUP, among the supporters and participants at the Black Sea Energy and Economic Forum, Bucharest, 2009

13 THE FIRST PARTICIPATION OF A GSP

REPRESENTATIVE AT THE IWCF EUROPEAN

REGIONAL BRANCH MEETING

14 OFFSHORE CONSTRUCTION REPORT, 2009 GSP’s offshore constructions management and investments

20 GSP - KEY OFFSHORE SERVICE PROVIDER

24 GSP TRAINING CENTRE

Training sessions for the crewmembers onboard GSP Prince

26 GSP REGISTERS A ROMANIAN FIRST - A unique welding facility will train the welding personnel for subsea pipeline installation

28 BLACK SEA, key region for the European energy security

30 GSP INVESTS APPROXIMATELY 12 MILLION

US DOLLARS for the upgrade and reclassification of GSP Orizont

31 HUMAN RESOURCES 2009 REPORT

32 HSEQ: culture, awards and milestones in 20099

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2009 WAS FOR A

CHALLENGING YEAR FOR

UPETROM GROUP! As companies within our group registered excellent results being awarded by the Romanian Chamber of Industry, Agriculture and Commerce, we may say we did well. We are proud to be able to say now that our determination to further continue the investment and development program confirmed the management good decisions. Another confirmation of the good path we are on is the series of offshore services contracts Grup Servicii Petroliere concluded, mainly in the offshore constructions area. We may say that together as a strong team, we’ll continue our march toward business consolidation. The rational and sincere partnership with our employees has led us to the position we hold in the regional market. When we stated we’ll support the career development of individuals and teams, that was a solid contract with our professionals and, as proven, we immediately confirmed we are ready to bring to live our engagement in sustaining human resources development, by offering them possibilities to train at the highest levels. Therefore I address my thanks to those professionals determined to team up, to advance to a new level in their career here, within Grup Servicii Petroliere. I also feel I must publicly underline the capital role our contractual partners play in our success. There was a time when clients challenged us to rapidly understand and learn the industry logic; we continued learning, we continued expanding the services offer as our competencies develop, and, due to our well learned lessons we took along the time, we managed to transform the names of companies within Upetrom Group in solid patrimony/asset. Therefore I address our thanks to those business partners who have shown trust in our capacities and registered, due to the partnership with us, they managed to register excellent economical results. I must address our thanks to those contractual partners we already count among traditional clients as well as to the new clients. We pride ourselves as we received appreciation from the heavyweight offshore industry players in our regional market, both privately owned and national petroleum companies. We are regular presence in the Romanian, Bulgarian, Turkish and Russian oil and gas services market. We consider every one of them equally important. Every contractual partner comes on the first place as importance and we respond to the contractual demands with equal seriousness, competence and dedication. I feel I must clarify for the readers the reasons I have to thank to so many: of course we could manage better at the end of 2009 without challenges the global market inflicted on us; we also could fail if not the trusted partnerships and coherent strategies. I shall not say the word so many times the financial market brought up as redundant theme of our personal lives and business analysis. And I shall avoid it not in fear, but as it couldn’t confirm its validity on our territory: we concluded significant investments such as GSP Saturn upgrade and refurbishment and GSP Training Centre; we continue investments such as GSP Bigfoot 1 and 2, GSP Neptun, GSP Shipyard; we have designed the newbuild strategy steps as well as the technological modernization to sustain our further growth. These are only a few of the reasons we must consider 2009 a challenging and yet a good year for Grup Servicii Petroliere. Let’s expect together the best from 2010!

FOREWORD

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October

GSP NEPTUN, THE 1800 TONS FLOATING CRANE REACHED CONSTANŢA SUD – AGIGEA PORTGSP operates the largest heavy lift

floating crane in the Black Sea to carry

out the company offshore construction,

installation and removal operations.

GSP Neptun, the 1800 tons floating

crane, concluded the voyage reaching

Constanţa Sud – Agigea port on

Saturday, the 2nd of October. GSP

Queen performed the transport of the

1800 tons floating crane towing it from

Tuzla, Turkey at the end of September

across the Bosporus Strait into the Black

Sea towards GSP Shipyard.

October

GSP NEPTUN COMPLETES GSP’S TECHNICAL VESSELS FLEET. GSP Neptun heavy lift floating crane, in

length (L.O.A.) of 83 m, with the gross

tonnage of 6,557 tons, may reach the

maximum lifting height of 76.00 meters,

1.8 meters / minute / load, respectively

3,6 meters / minute / unload lifting speed.

GSP Neptun is transported to Constanta

Sud - Agigea by GSP Queen, AHTS,

classified under ABS register, towing, fire

fighting and antipollution vessel Class 1

offshore support vessel, built in 2005.

October

GSP SATURN ENTERED UNDER A NEW CONTRACT WITH TPAOThe offshore drilling rig GSP Saturn,

located on the Turkish continental shelf of

the Black Sea, drills for TPAO.

TPAO continues the development of the

Akçakoca subsea gas reserve and MODU

GSP Saturn will drill under the present

contract one firm well (and one optional).

October

GSP LICORN PROVIDES OFFSHORE SUPPLY SERVICES IN THE BLACK SEA UNDER A TPAO CONTRACTGSP Licorn, tug and supply vessel

classified under BV register, entered a

new contract. GSP’s vessel operates

in Akçakoca field, in the Black Sea.

The vessel provides services for GSP

Saturn offshore drilling rig under a TPAO

contract.

GSP Neptun, the largest floating crane in the Black Sea, 1800 tons lifting capacity

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October

GSP PRINCE ARRIVED IN CONSTANTA PORTGSP Prince completed on the 13th of

October the voyage from Aalesund,

Norway to Constanta Port. The ROV

Survey / Diving and Intervention Support

Vessel is operated by GSP under

a bareboat contract with purchase

option. GSP announces the availability of

the newly build DP 2 specialized vessel

on the offshore spot market.

GSP Prince, built in 2009, is outfitted for

sub-sea duties such as ROV operations

(pipeline/route survey), bottom mapping,

sub-sea installation works, diving and

intervention support, mother vessel for

AUV/UUV operations, geo-technical

investigation survey. GSP is operating

the only ship of this type in the Black Sea

area. The new GSP vessel is classified

under DnV register (+1A1 SF, E0,

DYNPOS AUTR, CLEAN, COMF c3-v3,

HELDK. NAUT OSV, Ice C ERN 99,99,99).

October

GSP WAS AWARDED THE CONTRACT FOR SUBSEA GAS PIPELINES ENGINEERING, PROCUREMENT, FABRICATION AND INSTALLATION IN GALATA FIELDGSP will perform under the present

contract engineering, procurement,

fabrication and installation of pipelines,

8,5 km x 6’’ from Galata platform to well

head Kavarna 2, and 14,5 km x 10’’ from

Galata platform to well head Kaliakra 2

with associated piggy backed liquid lines

in the Bulgarian continental shelf.

The company will mobilize for the

contract a fleet including GSP Bigfoot

1 – the shallow water pipe lay and heavy

lift barge, GSP Prince – the new diving

and ROV support vessel, specialized

vessel for anchor handling assistance

of the pipelay barge, two PSVs – GSP

Licorn and GSP Perseu, and the crew

vessel GSP Lyra. GSP is in charge of the

GSP Prince, vessel approaching Constanta port

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GSP Prince. The naming ceremony, a moment of intense emotion and great expectations

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procurement, engineering, fabrication

and transport to the offshore location by

offshore supply vessels as well as the

offshore install and tie-in of the facilities

and components of the project.

October

GSP PRINCE NAMING CEREMONY TOOK PLACE ON THE 24TH OF OCTOBER IN CONSTANTA PORTGSP hosted the naming ceremony of

DSV IMO 9489651 on Saturday the 24th

of October.

The day marks both the official naming

for the newest GSP vessel, GSP Prince,

and the extension of the company

fleet with another specialized vessel to

answer the new offshore operational

needs of the market in the region. GSP

Prince is the only one DSV & ROV to

operate in the Black Sea.

GSP hosted the naming ceremony of

DSV IMO 9489651 on Saturday the 24th

of October. The ceremony was held in

the passengers’ berth of Constanta Port.

A great number of guests attended the

naming ceremony: representatives of

the Norwegian companies Volstad and

Baatbygg, of the Romanian Parliament

and local administration, foreign

petroleum and shipping companies,

harbor authorities, navy, as well as

Romanian business representatives.

The ceremony was held in the sounds of

the Romanian Military Navy Brass Band.

The vessel will be outfitted for the

following duties: ROV operations, SAT

diving, sub-sea installation works,

geo-technical surveys / works, light

construction works, crane operations.

GSP Prince is designed to operate in all

weather conditions, presenting excellent

maneuverability and station keeping

capabilities. The most modern survey

equipment is installed and the systems

have full plug and play interconnectivity.

GSP Prince has accommodation for 64

persons, segregated over 34 single and

15 double cabins.

November

BULGARIA CONFIRMS COMMERCIALITY OF MELROSE’S KAVARNA GAS FIELD Melrose Resources announced

last November that the Bulgarian

Government has issued a Certificate of

Commerciality for the Kavarna gas field

and the Company has now submitted

an application for a similar Certificate

of Commerciality for the Kaliakra field.

The approval effectively commences

the development of the Kavarna field,

which contains estimated reserves of

24 Bcf and is located 8 kilometers east

of Melrose’s Galata field platform. The

field will be produced using a single

subsea well completion tied back to

the Galata facilities using a 6 inch flow

line and is expected to be on stream by

July 1, 2010. The Kaliakra field, which

contains 57 Bcf of reserves, is located 14

kilometers east of Galata and will initially

be developed using a single subsea

well with a dedicated 10 inch flow line

to allow for future expansion. First gas

is expected from this field by 1 October

2010. The two field flow lines will be laid

by Grup Servicii Petroliere, using GSP

Bigfoot 1 shallow water pipelay & heavy

lift barge, GSP being also responsible

for the subsea completion activity. The

total capital expenditure for the two

developments is expected to be $59

million (including historic well completion

costs) equating to $0.73/Mcf. With

respect to other project approvals, the

Company is also in active discussions

with the Bulgarian Ministry for Economy

and Energy to finalize the terms of an

Amendment to the Galata Production

Concession which is required for the

Galata gas storage project.

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THE TURKEY’S ROLE IN ENSURING THE ENERGY SECURITY IN THE BLACK SEA REGION

GSP Shipyard Agigea became a hot spot for the development of international offshore construction projects

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The Atlantic council and the Romanian

Ministry of Economic Affairs were the

organizers of the Black Sea Economic and

Energy Forum. The Turkey’s energy supply

attracted once more with the occasion of

the summit in Bucharest the interest of the

oil and gas industry, as well as of the states’

high representatives taking part in the event.

Representatives of all the countries in the

Bucharest Economic and Energy underlined

the importance of the Turkish oil and gas

reserves as well as of the oil development

strategy drawn up and coherently observed

during the recent years.

Ensuring the oil and gas supply through

increased internal production in Turkey

results in increasing the energy stability in the

entire region.

The Black Sea Economic and Energy Forum

was a successful opportunity for Grup

Servicii Petroliere, as the company stated

once more its determination to contribute to

the Turkish offshore oil and gas production.

GSP builds the jacket and the double deck

modular production platform designated to

double the Turkey’s actual gas production.

TPAO, the Turkish Petroleum awarded the

offshore construction EPIC for the Akçakoca

gas field to GSP in Q4, 2008. The fabrication

works started in 2009, and GSP developed

the technical fleet in the same time to

support the offshore operations.

The Bucharest regional energy summit

gave the opportunity to TPAO and Turkish

state representatives to visit the fabrication

facility in Constanta Sud Agigea. As the

platform construction and commissioning

will lead to a double gas production

in Turkey, it is considered a strategic

investment. Metin Kilci, the Energy and

Natural Resources Ministry Undersecretary,

stated the importance of the project for

the Turkish press: “Doubling the internal

Turkish production is an effort which has to

be appreciated. The Akçakoca natural gas

deposits will be productive at the completion

of this offshore platform”.

Mehmet Uysal, General Director of Turkish

Petroleum (TPAO), provided information

regarding the value of the offshore

construction project and the scheduled date

for the production facility to enter service:

“The largest production platform in the Black

Sea is scheduled to enter service in 2010,

the costs risig up to the amount of 100 USD

million. This is the second development

stage of Akçakoca natural gas reserve.

TPAO started the activities in the region in

2003. The newbuild platform will lead to a

new development stage, as TPAO plans 6

new production wells to be drilled on the

location.”

Mehmet Uysal, General Director of Turkish

Petroleum (TPAO), also added that within the

scope of the offshore construction project

there is the installation of 7 kilometers of

pipeline. The subsea pipeline will connect

the production platform to the existing main

pipeline trunk, ensuring the connection of

the offshore production facility with the gas

plant onshore. “The current natural gas

production reaches 1 million cubic meters

per day. We are expecting the completion

of the new offshore construction to raise the

gas production up to 2.5 million cubic meters

per day” concluded the Turkish Petroleum

General Director.

The Turkish delegation taking part in

Bucharest Energy Summit, “Black Sea

Economic and Energy Forum”, accompanied

by Turkish media, visited GSP Shipyard

- the offshore construction site in

Constanta Sud – Agigea Port and

at GSP’s headquarters and Training

Center in berth 34, Constanța port.

The delegation, visited the offshore

construction site and the shipyard where

GSP Bigfoot 1 project is carried out, in

GSP’s operational base, in Constanta

GSP builds the jacket and the double

deck modular production platform

designated to double the Turkey’s

actual gas production. TPAO, the

Turkish Petroleum awarded the offshore

construction EPIC for the Akçakoca gas

field to GSP in Q4, 2008.

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Sud – Agigea Port. The shipyard

represents a 2009 GSP’s investment

of 10 million USD, a new development

of an operational base covering the

area of 38.600 m2 having a 372 meters

long quay opening, including a 700 m2

administrative building with 17 offices,

conference hall, a fully equipped hospital

and modern social facilities. The shipyard

includes a 2720 m2 multipurpose

workshop, a heavy duty opened platform

as well as the necessary infrastructure

and utilities allowing GSP to perform

extended offshore prefabrication and

construction works. The multipurpose

workshop is equipped with two 20 + 5

tons gantries running on a range of 130

meters. The shipyard operations are

sustained by a newly acquired fleet of

onshore heavy lift cranes and modern

welding stations. The Turkish officials

have visited the shipyard they assessed

the progress of the steel works within the

jacket fabrication process as well as the

topside. The delegation has also checked

the progress made during the upgrade,

refurbishment and reclassification project

for the heavy lift / pipelay barge GSP

Bigfoot 1.

Mr. Gabriel Comănescu, President of

Upetrom Group - GSP, presented the

progress GSP has registered since the

establishment of the shipyard and the

commencement of works. He also made

reference to the results GSP recorded

during the last audit performed by the

beneficiary, the Turkish Petroleum.

He stated during the visit: “GSP is

committed to confirm once more it

become the leading offshore services

provider due to the high professional

standards. The 100 USD million offshore

EPIC contract concluded in 2008 with

TPAO is the beginning of an important

offshore constructions series GSP will

complete, bringing its contribution to the

energy security in the Black Sea region.

The fabrication process continues as

previously planned and the company

simultaneously with the technical fleet

development process. The scheduled

activities are sustained by human

resources recruitment program to supply

both the extension of the onshore

fabrication and the technical vessels

crews”.

The visit continued at GSP’s

headquarters in berth 34, Constanta port.

Here, the official representatives of the

Turkish presidency and government, as

well as the representatives of the main

Turkish oil and gas companies, have

visited the new Training Center GSP

established in 2009, a 6.5 million euro

investment. GSP Training Center uses

the latest DrillSIM 6000 simulator. The

Training Centre offers well control training

- Surface BOP Stack Operations – Driller

level; Surface BOP Stack Operations

– Supervisor level – offshore drilling

personnel evaluation and certification, as

well as Cyber Based control training of

the X – COM drilling equipment using the

latest simulation technology.

GSP Shipyard Agigea. The official delegation at the jacket fabrication site

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UPETROM GROUP AMONG THE SUPPORTERS AND PARTICIPANTS AT THE BLACK SEA ENERGY AND ECONOMIC FORUM, BUCHAREST, 2009

The Black Sea Energy and Economic

Forum (BSEEF) is an event bringing

together world leaders and key

stakeholders in energy policy and

business for unofficial consultations on

global energy security. Set in the broader

Black Sea-Caspian region due to its

position as a nexus of global energy

security and geopolitical instability, the

Forum provides an exclusive setting

for high-level representatives from

government and industry around the

world to discuss relevant issues and

develop recommendations for the future.

The event took place in Bucharest

between the 30th of September and the

2nd of October. Among the inaugural

forum featured speakers, there were:

Traian Băsescu, President of Romania,

Mircea Geoană, the President of the

Senate, Romania, Crin Antonescu,

Vice President of the Senate, Romania;

Adriean Videanu, Minister of Economy,

Romania; Cristian Diaconescu, Minister

of Foreign Affairs, Romania; Mr. Fabrizio

Barbaso, Deputy Director General,

DG TREN, European Commission;

Ambassador C. Boyden Gray, Former

U.S. Special Envoy for Eurasian Energy

and European Affairs, Gray & Schmitz

LLP; Senator Chuck Hagel, Chairman,

Atlantic Council; George Maior,

Director, Romanian Intelligence Service;

Ambassador Richard Morningstar, U.S.

Special Envoy for Eurasian Energy; Mr.

Dinu Patriciu, Chairman, DP Holding

SA; Mr. Paolo Scaroni, Chief Executive

Officer, Eni S.p.A.

Mr. Bruno Siefken, Vice President of

Upetrom Group gave a speech within

the section “Oil for the 21st Century:

Prospects and Challenges” of the Black

Sea Energy and Economic Forum.

The mission of the Black Sea Energy and

Economic Forum is to foster multilateral

cooperation between stakeholders in

the Atlantic Community, the Black-Sea-

Caspian region, and around the world

on energy policy issues. It promotes

The mission of the Black Sea Energy

and Economic Forum is to foster

multilateral cooperation between

stakeholders in the Atlantic Community,

the Black-Sea-Caspian region, and

around the world on energy policy

issues. It promotes energy security,

market-based solutions, and an energy

industry compatible with sustainable

development. The Forum strives to meet

the needs of countries producing and

consuming energy through increased

flow of capital, technology and

collaboration in the energy sector.

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energy security, market-based solutions,

and an energy industry compatible with

sustainable development. The Forum

strives to meet the needs of countries

producing and consuming energy through

increased flow of capital, technology and

collaboration in the energy sector.

BSEEF provides an exclusive setting

in which energy policy and business

leaders, professionals, and those

concerned with energy and sustainability

can interact and generate ideas for future

action.

„No area is more important to global

energy security than the Black Sea-

Caspian region. The combination of

vast oil and natural gas fields and

flights, and the crucial need for diverse,

stable sources of energy for European

and global markets makes this region

central to any conversation about the

geopolitics of global energy security.

In order to promote dialogue and

multinational cooperation in this area of

increasing geopolitical significance, the

Atlantic Council has initiated the BSEEF

through our new Eurasia Energy Center.

By bringing together key regional and

global energy security stakeholders from

governments and business, we hope to

help transform the Black Sea-Caspian

region into a more stable and cooperative

platform that grows more closely linked

to the European Union and the U.S.“

declared in his inaugural speech Mr.

Chuck Hagel, Chairman, Atlantic Council.

BSEEF registered the participation of

CEOs and Executives from: Areva,

BOTAS, DEPA, DP Holding SA, Egypt

Gas, Eni S.p.A., ExxonMobil, Hunt

Oil, OMV, Sabanci Energy Group,

Schlumberger, SOCAR, TEIAS

and TPAO as well as Energy and

Economy Ministers and Senior Officials

from: The Republic of Azerbaijan, The

Republic of Bulgaria, Georgia, Romania,

The Russian Federation, The Kingdom

of Sweden, The Republic of Turkey,

Turkmenistan, Ukraine, The United

States of America, and The Republic of

Uzbekistan.

Between the 30th of September and the 1st of October 2009, OMV Austria

hosted the IWCF European Regional Meeting at Gansendorf. The event was

attended by representatives of the IWCF European Branch. The International

Well Control Forum is an oil industry Membership Organization established in

Europe in 1992. Its primary purpose is to develop and administer well control

certification programs for personnel employed in oil well Drilling, Workover and

Well Intervention operations. IWCF well control certification programs have been

used by 50,000 persons at 173 locations in 54 countries since January 1993.

The European Branch was constituted on the 6th of February 2001. The IWCF

European branch includes Austria, Croatia, Hungary, Ireland, Poland, Romania,

and Turkey. The IWCF European Branch meets in technical meetings once or

twice a year, to discuss new procedures and/or revisions of procedures being

proposed by the IWCF secretary, the assessors’ points of view being carefully

taken into consideration. The IWCF technical meeting was attended by IWCF

accredited instructors working within the IWCF training centers in Europe. The

meeting agenda included the interventions of Dr. I. Federer (Miskolcz-Hungary),

Wilhelm Sackmaier, Dr. T Szabó (Miskolcz-Hungary). The speakers reviewed

past decisions of international board, presented the progress state. The technical

meeting agenda offered the opportunity to overview themes such as:

øPractical Assessment Quality Assurance,

øPractical Assessment Well Design Rules,

øPractical Assessment Exercises

øAccredited Assessor Pack

øPrinciples & Procedures and Equipment Question Comments

øDiscussions

øAn OMV land rig visit.

Constantin Gheorghe, GSP’s HSEQ Executive Officer, represented our company at

the IWCF Technical meeting. During his intervention, Constantin Gheorghe took

opportunity to present the new training facility established in 2009 by GSP and

proposed Constanta as a future location for an IWCF meeting. As our company

entered the training services market just a few months ago, the meeting also

presented itself as an opportunity to deeper familiarize with offshore staff

training issues, networking with representatives of the training centers from

Spain, Austria, Croatia, Hungary, Ireland, Poland, Romania (Oil and Gas University,

Ploiesti), and Turkey.

THE FIRST PARTICIPATION OF A GSP REPRESENTATIVE AT THE IWCF EUROPEAN REGIONAL BRANCH MEETING

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OFFSHORE CONSTRUCTION REPORT, 2009

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GSP Shipyard, Agigea. Steel jacket onsite fabrication stages

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GSP Neptun crossing under the Bosporus bridge. The largest floating crane in the Black Sea heading to GSP Shipyard in Constanta Sud Agigea

GSP’S OFFSHORE CONSTRUCTIONS MANAGEMENT AND INVESTMENTSThe Offshore Constructions Department

manages from 2008 engineering, project

management, operational coordination,

analysis and design of fixed offshore

platforms, jackets, topsides, subsea

pipelines. The offshore constructions

offer includes procurement, fabrication,

load-out, sea fastening, heavy lift,

transportation, installation services,

commissioning, and maintenance. GSP

Shipyard located in Constanta Sud –

Agigea harbor, an investment amounting

10 million US dollars to be further

developed, is the onshore operational

base designated for steel-structure

and fabrication to support the offshore

construction activities. A fleet of 10 heavy

lift crawler and all terrain cranes sustains

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the fabrication onshore, the acquisition

value summing up to 8,646,000 euro.

GSP also developed the fleet of

technical vessels: heavy lift, pipelay,

semisubmersible and sliding barges,

tender assist, in order to successfully

answer the offshore industry demands

in the Black Sea area. The technical

fleet development represents a strategic

program of major investments and

acquisitions including: 70 million USD for

GSP Bigfoot 1 (pipelay/heavy lift/tender

assist barge) conversion, reclassification,

equipment acquisition; 27 million USD for

the acquisition of the 1800 tons heavy lift

crane barge GSP Neptun and 750,000

USD for its modernization; 3,500,000 euro

for the reactivation and reclassification

of GSP Bigfoot 2, the semi-submersible

barge. The company also operates GSP

Prince, DSV/ROV offshore support vessel

built in Norway in 2009 and reaching the

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market value of 100 million USD. GSP

supported the offshore construction

activities by creating 80 new workplaces

so far. Taking into account the necessary

workpower both for the extension of

the fabrication works and the technical

vessels crews, the number of newly

created workplaces will rise up to almost

300.

OFFSHORE CONSTRUCTION PROJECTS PORTFOLIOTPAO Project – Akcakoca Field Western

part of the Black Sea

In September 2008, GSP signed

a contract with TPAO to provide

Engineering, Procurement, Construction

and Installation (“EPIC”) services related

to the development of the Akcakoca field

drilling/wellhead platform and offshore

pipeline in the Western part of the Black

Sea. The fabrication process has already

started with expected completion in 3rd

quarter 2010. GSP ensures the project

management as well as procurement

of the jacket materials, fabrication,

erection, assembly, load-out and sea

fastening of the jacket, piles, risers and

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GSP Bigfoot 1. Heavy lift / Shallow water pipelay barge during the shipyard modernization process

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clamps, GSP will design, purchase,

build and install a 4-legged steel jacket

platform of 101 meters height with an

approximate total weight of 1600 tons.

The drilling-production platform will be

located in the Akcakoca gas field, above

the two existing wells, AKC – 3 and

AKC – 4. The top side of the platform

will have two decks, GSP having also

the task of purchasing, installing and

commissioning the facilities for the first

deck. GSP will also install a subsea

pipeline, approximately 7 kilometers

long, 12” in diameter, also realizing the

connections to the existing 12” offshore

trunk pipelines, for transportation of the

produced gas to the Cayagzi Plant, near

Akcakoca, through the offshore pipeline.

Galata Project – Bulgarian Continental

Shelf Black Sea

In October 2009, GSP signed a lump

sum contract with one of its core

customers, Melrose Resources, for

offshore construction work to be

performed in the Bulgarian Continental

shelf. The total project is divided into

two stages with a total value of about

Euro 24 million. GSP will perform

Engineering, Procurement, Fabrication

and Installation of an 8.5 km 6” pipeline

from Galata platform to well head

Kavarna 2, and a 14.5 km 10” pipeline

from Galata platform to well head

Kaliakra 2, in 80 meter water debt. Both

pipe line routes will include associated

piggy backed liquid lines. According to

Melrose Resources public data (March

09) the Galata filed development holds

ultimate reserves of about 74 Bcf with

production of 20.2 MMcfpd in 2008.

The Galata block exploration potential

include Kaliakra (47 Bcf) and Kavarna (24

Bcf). GSP will use multiple assets in its

offshore fleet for this contract, including:

Bigfoot 1 which will perform pipe laying;

GSP Prince will be used to conduct

pre-lay survey and for installation, ROV,

and saturation diving; GSP Perseu will

do the pipe haul; GSP Licorn will supply

consumables and GSP Lyra will handle

crew transport.

OLYMPIA PROJECT - DZHUBGA-LAZOREVSKOE -SOCHI GAS PIPELINE BLACK SEAGrup Servicii Petroliere S.A. (GSP

S.A.) has been awarded the 150 km

20 in. and 4.5 km 6 in. subsea pipelay

contract along the Caucasian Black

Sea coast within the Olympia Project.

GSP and Stroygazmontazh signed

the contract on the 19th of November.

Grup Servicii Petroliere will install in a

window of eight months the subsea

pipeline along the Russian coastline.

The pipeline will ensure the gas

connection Dzhubga – Lazorevskoe –

Soci. The Olympia project will include

the connection of the Dzhubga-

Lazrevskoe-Sochi gas pipeline to the

active intercontinental gas pipeline

Russia-Turkey in the town of Gorsky

in the Tuapse region. The objective of

the project is to ensure a stable and

reliable gas supply for the Krasnodar

Territory’s Black Sea coast area.

The value of the contract amounts

to 269 million USD. Grup Servicii

Petroliere is the contractor of the

offshore works package including:

pipelay, welding, NDT, survey, as well

as the marine logistics to support

pipelay operations, such as supply

vessels, and crew boat.

The Company will also carry out all

the subsea survey activities related

to Olympia project. The fleet GSP

will mobilize for Olympia project one

technical vessel, GSP Bigfoot 1, the

heavy lift & shallow water pipelay barge

for pipeline works including

welding/NDT/FJC/survey equipment

as well as several specialized offshore

vessels. The fleet mobilization list

includes GSP Prince,

for DSV/ROV survey and trenching,

GSP Phoenix, for crew transport and

supply, GSP Vega, the pipelay barge

support vessel, three PSVs, GSP

Licorn, GSP Orion and GSP Perseu

and one anchor handling tug supply

vessel (AHTS).

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Breaking the limit

GSP - KEY OFFSHORE SERVICE PROVIDER

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GSP Jupiter. One of the Black Sea drilling rigs with a positive operational history.

The Mediterranean and Black Seas

have not always been global hot spots

for offshore oil and gas exploration.

However, drilling in these two areas has

increased substantially. With multiple

projects upcoming and prolific production

existing, both the Mediterranean and the

Black Sea are logging more rig time every

year. Grup Servicii Petroliere is one of

the offshore industry players developing

the oil and gas offshore projects in the

Black Sea region. Two of the company’s

MODUs, assets in which the company

invested 130 USD for the technological

upgrade, GSP Jupiter and GSP Saturn, to

them adding GSP Prometeu – with a very

positive drilling results history - contribute

the exploration and production drilling

as well as workover and tender assist

on the Romanian, Bulgarian and Turkish

continental shelves. GSP is determined to

extend its activities in the region, as major

oil and gas subsea reserves are going

to enter the well drilling, completion and

production in Bulgaria, Romania, Turkey,

the Ukraine and Georgia, as well as on

the Russian shore.

Right now, there are 16 offshore rigs

working in the waters of both the

Mediterranean and the Black Sea. The

offshore industry is already familiar

with intense rig operations in the North

African region. Furthermore, the drilling in

these regions is not restricted to shallow

waters. The recent drilling data registers

the movement of the drilling activities

from the shallow water parts of the

two Seas, to the deepwater oil and gas

reserves, Libya registering two contracted

deepwater rigs, the third one being

registered in the Mediterranean waters

offshore Egypt. The Black Sea access of

the offshore drilling installations is limited

by the Bosporus Strait, the bridges height

and existing subsea cables in the strait.

The increased drilling rates in the Black

Sea resulted mainly from GSP’s activities

Currently there are four offshore rigs

drilling in the waters of the Black Sea;

three of them being GSP Jupiter, GSP

Saturn and GSP Prometeu. A relatively

unexplored area, the Black Sea has

become more of a reality in the last

decade. The current number of GSP’s

rigs has helped to boost production in the

region.

In a recent announcement, Petrom

informed upon the production results

of the offshore shallow water wells

drilled by GSP Jupiter. The two wells are

expected to add more than 4,500 barrels

of oil equivalent per day to Romania’s

production.

With a concerted focus on exploration

and production in the Black Sea, Melrose

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reserves in the Black Sea

The oil & gas company Melrose

Resources plans for 2010 an investment

of 20,6 million dollars in Doina and

Ana subsea reserves in the Black Sea,

the main investment being focused in

exploration activities, 33% of the budget

being directed on seismic aquisitions and

drilling operations, according to the press

release.

„In 2010 we expect the cash flow

to offer a platform to re-direct

towards exploration and business

development initiatives. The key-areas

for our investments in 2010 will be our

development projects in the western

Black Sea region“ declared David

Thomas, the executive director of the

company.

The company also plans to initiate the

gas deposit project in Galata field,

Bulgaria; 27n million dollars represent

the investment for the first stage of this

project, in the company’s Thursday press

release.

In March, Melrose Resources acquired

from Sterling Resources 32.5% of

XIII Pelican and XV Midia offshore

fields for 90 million dollars. The British

Company Melrose Resources holds

32.5% shares within the petroleum

agreement of Sterling Resources in the

Black Sea holding 32.5% shares, while

Petroventures holds 20% and Gas Plus

15% of the shares.

Melrose Resources is a company

specialized in oil and gas exploration,

development and production, carrying

out operations in Egypt, Bulgaria,

United States of America, France and

Turkey.

The company registered 97.6 million

dollars income for the first semester

of 2009, decreased compared to the

income of the same period of 2008,

when it amounted 234 million dollars.

The operational profit registered by

the company during the first half of the

current year was 32.1 million dollars, five

times smaller than the operational profit in

2008, when it was 151.8 million dollars.

Resources contracted drilling services by

employing GSP Prometeu jackup in the

Black Sea waters offshore Bulgaria. In

2004, Melrose successfully brought on-

stream the first offshore gas development

in Bulgaria, the Galata field. In 2008, the

company made two nearby discoveries,

the Kaliakra and the Kavarna fields, which

will be developed as subsea tie-backs

to the Galata infrastructure in 2010.

Exploratory drilling continues on the

block.

Melrose Resources intends to invest 20.6

million USD in Doina and Ana subsea

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GSP Prince. The knuckleboom crane

As GSP Prince prepares for contracts,

onboard are carried out operations for

the equipment installation and members

of the crew attend dedicated training

sessions.

Between the 23rd and the 29th of

November, the personnel onboard

occupying positions such as Master

Mariner, Chief Officer, Deck Officer,

attended the dynamic positioning

familiarization training session conducted

by Thomas Solevaag, from Rolls Royce.

GSP TRAINING CENTRETRAINING SESSIONS FOR THE CREWMEMBERS ONBOARD GSP PRINCE

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of theoretical lessons and practical

exercises. The course was delivered in

English.

The training included dedicated

maintenance teaching targeted to the

vessel’s electricians, engineers and

maintenance personnel, responsible for

the daily maintenance of the Icon DP

system. The selected crew members

took part in practical exercises on how

to download log files, export log files to

DP support, reboot icon DP calibrate

position- and joystick device, recalibrate

touch screen. The customer’s training

objective was to give the participants

a basic understanding of the Poscon

Joystick System. The participants

practiced on the Poscon Joystick System

being introduced to operating functions

on the system.

The course included: system concept,

system description, general description

of the Poscon joystick system, system

operation covering the function and mode

of operation of the system (operation

principles, system operation, signal

processing functions, joystick device,

graphical user interface - GUI).

Rolls Royce will also provide specialized

maintenance training for GSP Prince

crewmembers.

Within the 24th and 29th Trevor Dear from

SPAROWSOFFSHORE trained selected

crane operators for the Knucleboom

Crane onboard the vessel. They also

took part for two days in practical training

sessions programmed with the vessel

performing sea trials in the open sea

at a waterdepth reaching 200 meters.

The competence assessment could

be carried out only in the opened sea,

where the observation of dynamic lifting

is possible. The offshore crane operator

competence training and assessment is

compulsory as the crane operator plays

a safety critical role that demands a high

level of skills. The SPAROWS Training

for crane operators, delivered in three

stages, has been internationally adopted

as the offshore industry standard.

The program has been designed and

presented giving due consideration

to the recommendations contained in

S.I. 2307 Lifting Operations and Lifting

Equipment Regulations 1998, HSE

Training Guidance Note No.5 “Selection

& Training of Offshore Crane Drivers”

and British Standard 7121 Part 11 “Safe

Use of Cranes Offshore.” The content

incorporates requirements associated

with the operation of cranes on platforms,

semi-submersibles, jack-up rigs, drill

ships and FPSOs.

The program is designed to build

competence. Operators with evidence

of past experience such as the GSP’s

selected team could enter an advanced

stage of training or assessment.

The Dynamic Positioning Customer

Familiarization Training aimed to give the

participants a basic understanding of the

Icon DP System.

The selected crewmembers practiced

on the Icon DP Graphical User Interface

(GUI). Course content included:

introduction in dynamic positioning,

system concept, system description,

general description, system operation.

The training blended in a combination

The competence assessment could

be carried out only in the opened sea,

where the observation of dynamic lifting

is possible. The offshore crane operator

competence training and assessment is

compulsory as the crane operator plays

a safety critical role that demands a high

level of skills.

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GSP’s new training & certification pipelines welding facility

GSP sets up the new welding facility in

the berth 34 operation al base, Constanta

Port.

The project will be operation al in the first

term of 2010. The development of the

new facility is connected to the offshore

construction activities GSP carries out.

In order to generate welding procedures

and to train welders, the facility will

provide, registering a Romanian first,

welding capacities for training in order

to supply certified workforce for subsea

pipeline installation operations.

The welding facility will include the

following:

øSpace for mock-up trolley and manual

stations;

ø10 tons gantry/overhead crane;

øOffice spaces;

øGeneral offices facilities;

øStorage space for welding supplies/

consumables;

øStorage space for full length pipe joints;

øLocation for the bevel station.

GSP has allocated a 400 square meters

space for the welding facility, and will

also supply the project specific and non

specific equipment.

A UNIQUE WELDING FACILITY WILL TRAIN THE WELDING PERSONNEL FOR SUBSEA PIPELINE INSTALLATION

GSP REGISTERS A ROMANIAN FIRST

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General view of the regional oil and gas fields. Courtesy of Deloytte free maps

It became a common place while talking

about regions with a fast growing

economic potential to speak about the

Black Sea area as well. Black Sea tends

in the first decade of the 21st century

to enter the short list of energy tigers,

in times when discussions mention,

besides the resources, the political

and financial aspects of the countries

in the region. And, while Europe and

world remained focused on slow speed

democracy, on cultural stereotypes, on

centuries’ perpetuated territorial conflicts

or disagreements, it became easy to

generate general astonishment simply by

mentioning facts that do not comply with

the general stereotypical representation

of the region. Here below I’ll mention one

such fact contradicting general opinions:

when talking about the offshore industry

BLACK SEA, KEY REGION FOR THE EUROPEAN ENERGY SECURITY

big and rapid steps forward, the situation

is just the opposite of the common

representation. The countries bordering

the Black Sea prove the capacity to

identify common start points to initiate

profitable economical projects to

develop, no matter what the analysts say.

The 21st century is yet to demonstrate

how the economical advancement may

positively influence the geopolitical

balance.

While waiting for the general climate to

change in favor of foreign investments in

the Black Sea region, under the pressure

of stereotypes referring to historical

tensions, the energy market is surprised

to discover daring local initiatives may

succeed. The local business focused

on development, on workforce market

development, on securing the energy

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supply, could identify solutions that prove

to go beyond historical and transition

opinion and approach differences.

The offshore industry businesses in the

area together with national petroleum

companies, with other stakeholders of the

domain, find themselves at the very origin

of the cooperation and balance between

states in the region.

The Black Sea represents for the

economic players a rich development

resource. This brings together people.

While waiting the foreign investors to

change their perception of the region

as a perilous investment climate and

the growth of their trust in venturing,

the region fast identifies and stimulates

its own investment & development

capacities. The local business

understands better and adapts faster to

the specific legislation and conditions.

The local businesses contribute to the

region development, to the energy

resources exploitation while others

expect political proclamations. History

never changes; the future is changing

now by building economical bridges

to link regional economies, to ensure

constant energy supply.

The foreign investment at increased levels

is perceived as the best way to achieve

development. Offshore industry players

in the Black Sea region discovered a new

development way, as their interest grew

in each other market opportunities: to be

one step forward political agreements,

to strengthen the present ties in order to

build an economically stable future.

The financial outlook of the region

shows signs the western investors

find rather discomfort generators:

economies marked as for five or more

years’ contraction, the GDP gross

erosion for more than a decade, the

downturn of the formal economy in

conjunction with the substantial shadow/

grey economy extension are among the

foreign investors’ rational discomfort

reasons. Year 2000 marks for the region

a regional climate change - a speed up of

the reform process and other few signs

of recovery. Maybe from the inside of

these economies one can better feel the

vibration of the implemented reforms, can

better see the recovery signs. And it may

be for the better to support each other,

to identify development resources for

the economical growth. Here also comes

the standards’ theme: low standards

levels were reported at the beginning

of the 90s and they continued to be

presented this way. But insiders know

things have changed. Natural resources

and workforce represent interesting and

inviting investment sectors.

Black Sea plays a critical role in ensuring

the energy security of Europe. Major oil

and gas reserves yet to be developed,

both shallow and deep water, as well as

oil and gas from much further regions

will be delivered to the continent through

Black Sea strategic pipeline projects.

Only the regional economy players

may change general perception. Being

steps ahead in terms of standards and

technological development from other

economical areas, the energy field players

in the region will incline the balance in

favor of transforming the Black Sea, in

positively changing the regional picture.

Supplier countries, consumer countries,

transit countries, all may find themselves

economically involved in sustaining the

regional growth and favoring Europe’s

energetic security.

The first choice of the offshore business

players in energy exporting, energy

importing and transit states in the

Black Sea region is to pave the way

for reciprocal upstream-downstream

investments. Europe’s energy needs

require expanding import capacities,

respectively expanded imports.

Competitiveness, sustainability,

security of supply, and affordability

are the common goal characteristics.

The comprehensive energy dialogue

begins in the region and on its basis are

generated the investment, infrastructure

development strategy and programs

in a context of increasing stability and

predictability.

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The upgrade and reclassification of GSP

ORIZONT Mobile Offshore Drilling Unit

(MODU) is a project that enrols within the

Grup Servicii Petroliere upgrading and

refurbishment programme of the drilling

units.

Paul Nichiforov, the Executive Officer

of the Investments, Development and

Repairs Department put at our disposal

a series of comprehensive information

regarding the new project he will

coordinate:

„Upgrade and reclassification of GSP

ORIZONT MODU is a Grup Servicii

Petroliere important project due to the

fact that its main objective is to obtain a

new GL Class Agency Certificate which

will permit it to continue operating and

performing services under new drilling

contracts, meeting the international market

standards as well as GSP’s contractual

obligations. GSP ORIZONT upgrade

scope of work consists in improvement

of main technical platform parameters

and safety operating process by renewal

the equipments physically and/or morally

aged. The upgrade project will take

into consideration the electrical power

generation and supply system, the

drilling equipments, under main deck

GSP INVESTS APPROXIMATELY 12 MILLION US DOLLARS FOR THE UPGRADE AND RECLASSIFICATION OF GSP ORIZONT

naval equipments, and the radio system.

Another modernization scope stays in

increasing the hook load capacity up to

450 To. MODU GSP Orizont upgrade

and reclassification project also includes

among the stated scopes checking,

identifying, repair and overhaul operations

of all existing equipments and plants which

will be not subject of replacement in order

to eliminate any technical unconformity.

All verifications and works will be done as

per GL Classification Agency requirements

and rules and under GL surveillance.”

In order to meet all the above

mentioned project goals, the following

main work packages will be developed:

ø The existing Ward Leonard system

will be replaced with a new SCR and

Power Management System; the existing

cc and ac main diesel generators

type 6LDSR and 12 LDSR (Romanian

fabrication) will be dismounted and

5 new main Diesel generators will be

newly mounted; the adjacent systems

(fuel, air launching, exhaust, cooling

water, etc.) will be replaced too. A

new insulated compartment will be

designed, manufactured and mounted as

transformers room.

ø The existing mud pumps will be

removed and replaced with 3 new 5000

Psi Triplex pumps;

ø The high pressure mud pump discharge

piping modifications together with valves/

strainers and High pressure pipes &

Demco valves for mud manifolds will be

designed, manufactured and mounted;

ø The new LIDAN WICHITA draw works

brake system will replace the existing;

ø The existing travelling block and crown

GSP ORIZONT upgrade scope

of work consists in improvement of

main technical platform parameters and

safety operating process by renewal the

equipments physically and/or morally

aged.

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block will be replaced by new ones;

ø Other derrick modifications will be done

in order to increase hook loading capacity

to 400 to and travelling block from 320 to

400 to, based on the results of EURONED

study and detailed design. UPETROM 1

MAI Ploiesti – Romania will manufacture all

those new equipments.

ø An electric Top Drive will replace

the existing hydraulic one and a new

Driller’s Cabin with one chair delivered

by UPETROM Ploiesti Romania will be

mounted too;

ø Steel plates and structural hull thickness

measurements will be done and all

unconformities will be eliminated; a piping

and cables traces optimization will be

done as well; submerse and above sea

level legs inspections and NDT checking

will be performed under Class Agency

surveillance; welds and thickness of legs

elements, including structural and auxiliary

tanks will be inspected and checked.

ø All three cranes (starboard side, port

side and aft side) will be technically

inspected and overhauled by platform

crew specialists; the weighing systems will

be repaired or replaced if necessary.

ø A general refurbishment of the existing

accommodation will be performed in order

to replace the old furniture pieces, the

insulation of the walls between rooms,

ceilings and wall panels where needed,

new flooring, lighting lamps and doors.

Project work package activities will be

done in LAMPRELL ENERGY Shipyard in

Sharjah – Hamriya – UAE. Traditional GSP

goods and services suppliers (EURONED,

UPETROM 1 MAI, ICPE ACTEL, etc.) will

be involved in project execution.

The entire project will be managed by GSP

specialists. The designers, services and

goods suppliers, local UAE authorities,

Lamprell Energy and Germanischer Lloyd

Agency were identified as stakeholders

impacting the project. The GL rules and

regulations and the special requirements

imposed by IMO, MODU CODE, SOLAS,

MARPOL documents will be carefully

observed during the 2010 programmed

modernization project of GSP Orizont.

GSP is, at the moment, among the few employers constantly offering jobs to the

HR market in Constanta. As in every bad situation there may arise a series of

advantages, the actual downfall of the regional human resources market, and lead

for GSP to the advantage of performing a selection of the best the market had to

offer.

Businesses such as shipyards have fallen under the financial crisis influence;

GSP has had the possibility to attract the very best of the workforce market. We

also have proven to play a significant role in retaining professionals ready to leave

Romania in their international career quest as well as in attracting experienced

professionals from the international market. The projects GSP is carrying out attract

both Romanian and also foreign specialists.

The demanding attitudes towards work, safety at work, environmental protection,

occupational health, as well as towards the quality helps us in attracting the most

ambitious workforce. They do not consider difficult to adapt and respond to the

standards we set; they find a very clearly drawn straight line sustaining their

individual career goals.

The internal workforce market evolved to chronically lack of training facilities

and certification programs, internationally accredited trainers for the offshore

industry. GSP considered the company must compulsory involve in maintaining

the international certifications. GSP Training Center is the first step the company

performed in this direction, entering the offshore training services market.

GSP continued to further develop the human resources capital. In 2009, only within

the offshore constructions department, almost 80 professionals have found a newly

created workplace, in project management, cost control, engineering, welding, non

destructive testing, fitting and crane operation, subsea survey and many others.

Once the technical vessels will become operational, in the first quarter of 2010,

the number of newly created workplaces will rise up to 300. The human resources

department mobilizes to identify the professionals fit to occupy the open positions

and the company will sustain their training and certification. Stelian Grasu, the

Human Resources Executive Officer, declared for our magazine: “The above

mentioned job opportunities have only the value of examples; as within the

company the selection program is constantly carried out, it weekly brings new

specialists ready to sustain the company development, proving themselves a highly

skilled workforce.”

“The Company assists each employee in acquiring the individual career goals, as it

is focused on attracting, developing, motivating and retaining excellent employees

who meet our selection criteria”, Stelian Grasu continued.

The Human Resources Executive Officer also added: “GSP’s goal is to continue

attracting valuable, ambitious, and highly motivated personnel. The Company

is committed to develop and strengthen the core competencies from which

sustainable competitive advantages emerge. GSP favors blending knowledge,

experience and ambitious individual career goals in a constant pursuit for

excellence. GSP offers all the job seekers the opportunity to work in within a

company with an excellent reputation as well as the privilege of interacting in a

motivating work climate, together with the long-term commitment. The Company

ensures a friendly and stimulating environment as well as challenging jobs. We’ll

remain devoted to our goal of developing a strong professional culture, as well as

we are determined to never abdicate developing and enforcing a code of conduct by

prescribing clear policies, procedures, professionalism. GSP will continue its pursuit

for professional excellence, sustained by its long term partnership with employees

and by highly competitive salaries.”

HUMAN RESOURCES 2009 REPORT

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2009 approaches its end with excellent

HSEQ results.

The department’s core activities are:

øsafety case assessment

øverification

øinspection

øinvestigation

øenforcement

øproduce guidance

øtake part in research

øhelp to produce standards

øactively engage with Stakeholder

groups

Constantin Gheorghe, the HSEQ

Executive Officer and the company

DPA declared: „The critical areas of

performance where we consider there’s

still room for improvement in our both

offshore and onshore activities are

health and safety. We have developed

supporting guidance to facilitate delivery

of objectives in these areas.

The priority areas are:

øLeadership

øAsset integrity

øCompetence

øSafety culture

HSEQ CULTURE, AWARDS AND MILESTONES IN 2009

We are committed to increase the role of

effective HSEQ management in such a

way as to lead to major understanding of

accident risks and their control. We also

would like to meet another goal, to ensure

our assets integrity and exploitation meet

the performance designed standards for

more effective risk control.“

The HSEQ manager continued: „The very

high level of activity worldwide of the

oil/gas industry places great strains on

companies that already have to cope with

an ageing offshore industry population.

Challenges include: high competition for

the trained workforce resource and the

introduction of a new, younger generation

to the offshore industry. It is in our

intention to see effective competence

assurance and real time management of

competent workforce. We’ll partly realize

this objective by inspecting and auditing

more frequently the offshore drilling rigs,

by carefully monitoring the professional

performance and the maintenance

activities. Our analyses have led to

creating a new supervising position,

that of flying superintendent. The role

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the senior experienced professionals

in this position are assuming is that of

keeping track of the crews’ performance

onboard.“

„As the safety culture remains at the

heart of effective management risks

offshore, the company takes pride in

the development of work safety culture

issues, in the empowerment of the

personnel and the measures they feel free

to apply in order to keep LTI free work

environment. The „NO BLAME“ policy the

company enforced, the safety procedures

have led recently to excellent results,

and these changes were perceived as a

strengthening of the safety culture not

only within our company but they were

also highly appreciated by the company

clients such as Petrom OMV and Turkish

Petroleum.“ We enjoy seeing individual

and corporate culture developing in the

increase safety direction. We just want

to ensure the right things are done at the

right time, all the time. The company and

individuals must try to do the right thing.

We received lately significant messages

that the changes have been made in this

respect and the personnel is more and

more involved in improving health and

safety“, Constantin Gheorghe concluded.

A positive work culture is essential for

the wellbeing and the performance at

work. Culture is the context for behavior

in communities and is made up of

The „NO BLAME“ policy the company

enforced, the safety procedures have

led recently to excellent results, and

these changes were perceived as a

strengthening of the safety culture not

only within our company but they were

also highly appreciated by the company

clients such as Petrom OMV and Turkish

Petroleum.

(amongst other characteristics) values,

rules, routines, structures, and norms.

These are the foundations of culture.

In addition, the signals we pick up

from people may include atmosphere,

dress, symbols of various kinds, even

the time of day. They inform the way

we are expected to behave, effectively

exposing the culture for all to see. These

are the displays of culture. Our company

clearly stated which are the performance

and safety expectations by enforcing

company policies and action instruments

through procedures and work instructions

the HSEQ department continuously

improve together with the operational

departments.

GSP Jupiter. Florin Vodita awarded the Man of the Week title for using the Stop Work procedure.

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And the results do not wait long before

appearing. There were a series of

such results our contractual partners

highly appreciated. GSP registered

the rapid advancement from the rules’

enforcement to their opened and rational

internalization. An important role is

played by the significance of the personal

choice, of the personal values one carries

and shares within the team. The results

we’ll further cite are the proof of a strong

psychological contract the employee

concluded with the HSEQ goals, as

well as the commitment and trust in the

company. HSEQ continuously stressed

the processes that build commitment,

for example job security, performance

appraisal, job challenges, and training.

In addition, openness and team working

have lead to commitment.

STOP WORK PROCEDURE APPLIED BY A GSP’S CRANE OPERATOR HIGHLY APPRECIATED BY THE CONTRACTUAL PARTNER, PETROM:The Petrom representatives highly

appreciated and awarded the onboard

personnel applying the stop work

procedure when it was necessary. The

crane operator Vodita Florin became the

man of the week as he used the Stop

Work policy in order to avoid a possibly

high risk work situation. He reminded

through his action that the stop work

card can be life saving. Mr. Vodita

signaled a potential hazardous situation

when noticing wrong slinging of tubulars

onboard the supply vessel, ready to be

loaded onboard the rig. The offloading

operations have ceased immediately and

the rig Barge Engineer informed. After

assessing the situation, the operation was

considered too risky and so the vessel

has been sent ashore for allowing the

people to correct the tubular slinging.

100.000 WORKHOURS LTI (LOST TIME INJURY) FREE AT THE OFFSHORE FABRICATION FACILITY IN AGIGEA: As the participants have declared at the

celebration of 100.000 workhours LTI

free milestone in GSP Shipyard, „safety

is the common language the offshore

construction department speaks“. The

next goal is to register the 200.000

workhours LTi free. The key performance

indicators leading to the result are as they

follow:

ø122 safety observations;

ø15 HSE weekly meetings;

ø14 client weekly inspections;

ø216 onsite HSE inductions;

ø492 pre-shift daily meetings & toolbox

talks;

ø8 varied trainings, fire alarms, boom lift;

ø12 management visits.

These are the displays of culture. Our

company clearly stated which are the

performance and safety expectations by

enforcing company policies and action

instruments through procedures and

work instructions the HSEQ department

continuously improve together with the

operational departments.

And the results do not wait long before

appearing.