3rd Quarter, 2013

PV Drilling’sHSEQ Newsletter

1Pioneer of Vietnam Drillers

CONGRATULATION TO PV DRILLING II RIG for achievement of completing four (04) years

working free LTI

At 24:00h 15 September 2013, PV DRILLING II had hit another great mile-stone, reaching 4 years operation LTI free. This tremendous achievement did not just happened. It is achieved through all the hard-working and dedica-tion by personel of PV Drill-ing, our Valued Customers and Subcontractors, hav-ing committed to safety, careful planning, following the company policies and procedures.

This great performance is an important contribution to the development of PV Drilling. The company has been honored as “The Best Drilling Contractor in Asia 2012”.

Issued quarterly by PV Drilling’s HSEQ Division. For more information, please contact: HSEQ Division - PV Drilling Corporation.Tel: (84 8) 39 142 012. Fax: (84 8) 39 142 021. Email: hsebulletin@pvdrilling.com.vn

in this issue:

1. HSEQ News and Briefings

2. List of legal nomative

documents come into effects

during 3rd quarter of 2013

3. Feature: PVD Drilling Division

- Vocational and Safety training

for sustainabe development

4. Safety Award Images Sharing

5. HSE Performances

Dear Readers,

This is the first English edition of PV Drilling’s quarterly HSEQ Newsletter follows three issues, which has been digitally published in Vietnamese. With this publication, our intention is to promote HSEQ’s issues to each individual working for the Corporation.

In this issue, we would like to offer a good glimpse of the Corporation’s HSEQ activities and performaces as well as an insightful understanding of how vocational and safety training is proceeding onboard of PV Drilling’s rigs. Your feedback is highly appreciated as we are looking forward to the continuous improvement of our management systems.

Thanks for your time.

Your sincerely,

On behalf of editorial team Head of HSEQ Division Huynh Ngoc Thua

Pioneer of Vietnam Drillers

3 PVD OFFSHORE JOINED UK’S “LIFTING EQUIPMENT ENGINEERS ASSOCIATION”

September 12th, VUNG TAU. PVD Offshore has become official member of UK’s Lifting Equipment Engineers Association (LEEA), a reputable and renowned association in the field of lifting engineering. The company shall gain benefit from incomparable access to all the latest technical, legal and safety information necessary to operate successfully in today’s lifting equipment industry as well as being able to participate in the association’s global trusted training courses.

4 MONITORING & EVALUATION THE EFFECTIVENESS OF THE HSEQ MANAGEMENT SYSTEM

July 6th- August 2nd. An internal audit was executed at all subsidiaries emphasizing on the quality of core services provision and the evaluation of compliance of legal requirements related to HSE issues. The corrective actions were implemented accordingly. Results are shown in the chart.

To strengthen the effectiveness of the management system as well as to inspect HSE performances at production sites and verify the corrective actions followed by

internal audit, an un-announcement visit were carried out at PV Drilling‘s warehouses and workshops in Vung Tau on September 27th, 2013. It is notable that PV Drilling’s HSEQ-MS is effectively maintained and significant improvements were made during the period.

5 CONTESTS FOR BEST OCCUPATIONAL SAFETY AND HYGIENE OFFICER

August 16th, VUNG TAU. PV Drilling has successfully organized the 2nd contest for best occupational safety and hygiene officers in Vung Tau City, participated by 91 contestants represented for 13 teams from the Corporation’s subsidiaries and joint venture enterprises. The contestants were cheered by more than 200 supporters. There were 4 rounds, including 2 exciting game-shows to compete. The first prize was awarded to PVD Tech. PVD Offshore, Vietubes came in second. PVD-DD, PVD Well Services and PVD Training won third prizes. Consolation prize was awarded to PVD-HO team for the most impressive uniform.

On September 12th & 13th, for the first time, PV Drilling team has competed with 18 teams representing other Corporations under Petro Vietnam Group at the 5th contest for best occupational safety & hygiene officers organized by Petro Vietnam and excellently won the third prize.

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HSEQ BRIEFINGS

1 CUULONG JOC RECOGNIZED 1 YEAR WORKING FREE LTI BY PV DRILLING I

September 19th, OFFSHORE. PV DRILLING I was honored to welcome the VIP Delegation from Cuulong JOC. The visitors highly appreciated well-operated activities, especially HSE performance onboard since the beginning of the drilling campaign. On this occasion, Mr. Frank Poli, Vice Director of Cuulong Joc has handed the recognition plaque of 1 year operation without LTI to Mr. Frank Henson, OIM of PV DRILLING I. Up to date, PV DRILLING I has maintained this achievement for more than 6 and a half years.

During the visit, the conditions of fire-fighting for the use of explosive onboard were checked and verified by the representatives from Vung Tau Firefighting Police. As a result, the rig was re-certified to be eligible in fire and explosion fighting and protection.

2 MONITORING THE WORKING ENVIRONMENT AT ENTIRE PV DRILLING’S FACILITIES

August, ONSHORE & OFFSHORE. Working environment at PV Drilling’s facilities has been monitored by the Center for Occupational Health & Environment under HCM’s Department of Health-Care Administration, in collaboration of HSEQ Division. Approx. 2,000 check points and 9 categories of indicators were monitored. As a result, 98% indicators were acceptable, compared with 96% in 2012. It is expected that the Corporation will sort out solution to improve the protection for ones working directly under the sun, by using proper PPEs as well as appropriate welfare policy.

Recognition for 1 year operation without LTI onboard of PV DRILLING I

Pioneer of Vietnam Drillers3

List of legal nomative documents come into effect during 3rd quarter of 2013

1. Decree No.45/2013/NĐ-CP dated May 10th, 2013 effective July 1st, 2013 on hours of work, hours of rest, occupational safety and hygiene;

2. Decree No.55/2013/NĐ-CP dated May 22nd, 2013 effective July 15th, 2013 on license for the labor leasing operation, payment of deposits and list of jobs entitled to implement labor lease;

3. Decree No.25/2013/NĐ-CP dated March 29th, 2013 effective from July 1st , 2013 on environmental charges for waste water;

4. Circular No.11/2013/TT-BTNMT dated May 28th, 2013 effective July 15th, 2013 of Ministry of Natural Resources and Environment defining preservation period for environment-related documents and records;

5. Decision No.03/2013/QĐ-TTg dated January 14th, 2013 some requirements effective from July 1st, 2013; revision of Decision No.51/2011/QĐ-TTg dated September 12nd, 2011 promulgating the list of devices and equipment subject to energy lebelling and application of the minimun energy efficiency, and the implementation roadmap;

6. Decree No.82/2013/NĐ-CP dated July 19th, 2013 effective from September 15th, 2013 defining lists of drug and precursor substances;

7. Decree No.80/2013/NĐ-CP dated July 19th, 2013 effective from September 15th, 2013 Regulations on sanction of administrative violation in the field of standards, metrology and quality of products and goods;

8. QCVN 04:2013/BCT National technical regulation on safety of steel cylinders for Liquefied Petroleum Gas (LPG) issued with Circular No.18/2013/TT-BCT dated July 31st, 2013 and effective September 15th, 2013.

6 THIRD QUARTER’S HSEQ INTERNAL SEMINAR HELD IN VUNG TAU

September 10th, VUNG TAU. The 3rd quarter HSEQ internal seminar has successfully held at PVD Offshore conference room, participated by HSEQ’s coordinators from PV Drilling’s subsidiaries and joint ventures. This seminar is focused on subjects such as occupational health management and safety for working at height, and safety working in confined spaces as part of the project to compile PVD HSE Operating Procedures. This is the first participation by HSEQ coordinators from PV Drilling’s joint ventures.

7 PV DRILLING’S FIRST CONTEST FOR SKILLFUL PROFESSIONALS IN OIL & GAS

September 20th - 27th, HO CHI MINH CITY & VUNG TAU. This was the first contest for skillful professionals in oil & gas industry organized by PV Drilling responding to the proposition by Petro Vietnam. There were 50 candidates competed for the most skillful titles in categories such as lathe, welding, assembling, operating equipment, monitoring drilling process, mud

logging station operation, information technology solution and graphic design. The contest has created an incredible opportunity to exchange knowledge as well as experiences between co-workers. Candidates achieving high scores will represent PV Drilling to participate in the competition organized by Petro Vietnam scheduled in November 2013.

8 DESIGN COMPETITION FOR PV DRILLING’S NEW HSE LOGO

August 1st, HO CHI MINH CITY. In order to create a new and fresh image for HSE activities, a design competition for a new HSE logo is initiating amongst the Corporation’s employees, without limit on the number of submissions. The deadline for submission is October 31st, 2013. The first prize winner will be awarded 20 million VND and to be

invited to do a presentation on PV Drilling’s HSE Day 2013 scheduled in January 2014. There are also five consolation prizes worth 2 million VND. The selection process will be encrypted. The winner will be selected by a panel of PV Drilling’s

Managements. Please contact your HSEQ department for more details.

9 COMPUTER APPLICATION FOR OCCUPATIONAL HEALTH MANAGEMENT

October 1st, HO CHI MINH CITY. After programing and testing processes, the occupational health management software was ready for running. Despite being temporary hosted at a virtual server, strict security policy applied. The program and its database are designed to meet various needs of both the users and the Corporation’s health administrators. The users are granted access to view articles, his/her own health documentation and post health related questions to the administrators. On the other hand, the administrators can generate various reports for the use of occupational health care management.

HSEQ coordinators particiapted in 3rd quarter internal seminar

Pioneer of Vietnam Drillers

PVD DRILLING DIVISION

Since starting its business in 2007, PVD Drilling Division has keeping abreast of PV Drilling Corporation’s tremendous development. The company’s quality, health, safety and environmental management system has been established, maintained and improved over the years. It is all about creating a safe work place and achieving customer’s satisfaction. QHSE’s policies and procedures are strictly followed by all the personnel on PVD-DD’s drilling rigs. The mission of training is to enhance the safety awareness as well as the quality of services provided.

A training target is set for all personnel onboard they shall be given the appropriated training, either in the form of on-job coaching or in-house and out-sourced courses. Every year, the company invests a large sum of money on training budget

Vocational and Safety Training is an important strategy to ensure a safe work place on all drilling rigs operated by PVD-Drilling Division, taking a stride across the sea to a steady future

to provide training to an average of 2,000 participants. A training matrix is established for each job title. Procedures and computer software are used to ensure that all training and certification refreshing are identified and complied with as per policy.

A training program was created for 35 job titles working onboard, including 4 courses on Drilling Technology, 7 courses on Marine, 16 courses on Engineering, 22 courses on Safety and 18 others on internal safety training courses. To support on-job training onboard, the training materials are compiled for jobs titles such as roustabout, floor man, derrick man, crane operator… The ambition of the training program is also to upgrade high-level professional skilled personnel to hold senior positions onboard through training and work experience.

One of the most successful and beneficial courses supported by the Management is “Safety Leadership”. It helps to build participants’ self-confidence as well as a positive connection and trust between the worker and his direct supervisor. It is expected that the accumulation of training is sufficient for a positive safety culture and each individual’s safety awareness.

For years, the proper training strategy has substantially contributed to PV Drilling’s fruitful achievements such as maintaining the high performance rates on all drilling rigs, completing years of working free LTI on jack-up rigs, earning great appreciation from Customers and becoming a trustworthy drilling service provider domestically and internationally.

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Early Morning at PV DRILLING 11 Land Rig in Algeria. Photo: Đỗ Quang Lâm

VOCATIONAL & SAFETY TRAINING FOR SUSTAINABLE DEVELOPMENT

Pioneer of Vietnam Drillers

SAFETY AWARDS AT PVD RIGS DURING 3RD QUARTER OF 2013

2013 HSE PERFORMANCES - TIL 30/09/2013

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Awarded by PV Drilling Awarded by our valued customers

Numbers of awards Amount ($US) Numbers of awards Amount (mil. VND)

PV DRILLING I 163 9,238 52 26

PV DRILLING II 313 57,718

PV DRILLING III 156 8,818 175 105

PV DRILLING V 220 11,083

PV DRILLING 11 33 750

SAFETY AWARD IMAGES SHARING

Dau Xuan Hoat - Floorman Nguyen Dinh Thang - Roustabout Do Van Bien - Floorman

Phan Vuong- Head Roustabout Tran Minh Kien - Roustabout Nguyen Thanh Tuan – Asst Crane

LTI RWTC MTO Property damage

Near -mis

First-aid

Environ- mental

IncidentMan-hours PVD Card

HSE Training (partici-pants)

PV DRILLING I 0 0 0 0 1 0 0 349,092 9,261 565

PV DRILLING II 0 0 0 2 1 1 0 303,076 9,596 728

PV DRILLING III 0 0 0 0 0 1 0 343,344 7,244 274

PV DRILLING V 0 0 0 3 3 1 0 481,406 12,810 227

PV DRILLING 11 2 0 1 0 0 1 0 362,130 1,455 645

PVD DD 0 0 0 0 0 0 0 184,416 147 255

PVD OFFSHORE 0 0 0 0 0 0 0 1,488,479 116 805

PVD WELL 0 0 0 0 1 1 0 192,904 1,618 268

PVD LOGGING 0 0 0 0 0 0 0 176,676 4,222 260

PVD TECH 0 0 0 0 1 0 0 315,497 258 294

PVD Invest 0 0 0 0 0 0 0 66,122 0 149

PVD HO 0 0 0 0 0 0 0 244,992 0 46

TOTAL 2 0 1 5 7 5 0 4,543,134 46,727 4,516