CIEP WCS Category Team Vision and Objectives

1. Drilling & Completions Well Construction Services Category Management PlanEurasia BUMay 15, 2007

2. CIEP WCS Category Team Vision and Objectives Pumping Dir. Drilling Fluids Wireline Rentals& Service Well Const Equip Well Const Equip • Cementing • Cementing Tools • Stimulation • Sand Control Pumping & Tools • Directional Tools & Services • MWD/LWD • Whipstocks • Survey Tools • Drilling Fluids • Completion Fluids • Completion Fluids Filtration • Solids Control • Cased Hole Logging • Open Hole Logging • Perforating • E-line/Slickline • Coil Tubing • Fishing Tools • Tubular Running • TCP • Coring • Liner Hangers • Rental Pipe & BOP‘s • SCSSV‘s • ECP‘s • Screens/Blanks • Liner Hangers • Rental Pipe & BOP‘s • SCSSV‘s • ECP‘s • Screens/Blanks Vision Main Objectives To be recognized by D&C (The Sponsor Group) as creating value while being viewed by suppliers as the customer of choice through working category management at the enterprise level and having alignment with the company’s business goals. • Develop ASRs to drive OE/TCO improvements • Utilize KPI’s & scorecards to drive supplier performance • Capture synergies through joint efforts with KPO • Cost Management • Strategic Sourcings Key Elements of Business Strategy In Scope Out of Scope • N/A • Achieve Incident Free Operations • Collaboration with suppliers on the implementation of existing technologies and the development of new technologies • Create value through OE/TCO opportunities that align with the OPCO business goals • Improve Supplier Performance • EBU • TCO Category Structure Well Construction Services

3. D&C-WCC Category Team Vision and Objectives OCTG Surface Wellheads/Trees Drill Bits Artificial Lift Equipment Other • Casing • Tubing • Connections • Accessories • Services • Fixed Cones-Purchased • Roller Cones-Purchased • Performance Agreements (rentals) • Services • Pumping Units • Tubular Coating • Tubular Inspections • Rod Inspections • Wellheads • Trees • Manifolds • Wellsite Automation • Services Vision Main Objectives To be recognized by D&C as creating value while being viewed by suppliers as the customer of choice through working category management at the enterprise level and having alignment with the company’s business goals. • Develop ASRs to drive OE/TCO improvements • Utilize KPIs & scorecards to drive supplier performance • Facilitate usage of existing/new technology and best practices • Manage category spend using Category Management tools and processes Key Elements of Business Strategy In Scope Out of Scope • Achieve & sustain Incident Free Operations • Create value through OE/TCO opportunities that align with OPCO business goals • Participation in the identification and implementation of existing/new technologies and best practices • Improve Supplier Performance through utilization of Category Management tools & processes • SUBSEA WELLHEAD & TREES SYSTEMS • CNAEP & CIEP Bus • EBU (including KPO) Category Structure Well Construction Materials • N/A for EBU

4. CIEP WCS Category Team Charter • Scope: • Develop and Implement Category Management Strategy • Develop Category specific plans in alignment with Category Group strategies and prioritize and ensure deployment to maximize value to the Enterprise • Define Category program targets • Understand and incorporate business unit and regional requirements • Ensure alignment and partnering with business units • Manage and participate in value creation and value capture activities • Market and category/portfolio analyses • Assessment of Total Cost of Ownership and Value Chain opportunities • Sourcing, Make/Buy, and negotiations • Implementation of agreements and integration of suppliers • Ongoing supplier development, process optimization and contract management • Performance management of Suppliers and Users • Ensure appropriate resources to deliver business results • Provide Team staffing support • Engage suppliers in implementation of value adding technologies • Manage and apply Category Management program/process • Develop and roll-out Procurement best practices, processes and tools across Category • Coordinate with CVX Procurement or other appropriate COEs • Coordinate Regional and Local category activities for Enterprise • Ensure collaboration and Business and Region participation • Manage Resources and Organizational Capability • Manage projects and resource allocation • Help ensure safe and reliable operations through procurement processes and supplier performance plans • Establish joint scorecards and report effectiveness, compliance, etc. • Establish clear roles and responsibilities • Develop training requirements and career opportunities • Role/ Purpose: • The purpose of category teams is to provide business- directed procurement and operations supplier-related solutions to deliver superior business results • The role is to create competitive advantage by using the category management process in cross-OPCO, cross-functional, multi-location teams, guided by executive sponsors, to identify and capture significant 4+1 improvements, focusing especially on total cost of ownership and operational excellence, and to execute the actionable category plans. • Deliverables: • Assist in developing the Category Business Plan • Stakeholder management • Assist in identification of cross-opco initiatives • Process mapping • Category Best practices • Local Category Manager responsible for plan approval at SBU level • Membership (CM): • AASBU – Doug Fenn • ASBU – Jerry Smith • CUE – Graeme McKellar • EBU – Jerry Hunter • IBU – Depi Sepdiana • NMA – John Kissiedu • SASBU – Tony Dorge • LABU Arg – Pablo Zarra • LABU Ven – Andres Portillo • LABU Col – Juan Carlos Arenas • PNZ – • CBU – • Well Construction Services (CIEP) – Randy English • Membership (SME): • AASBU – John Peters • ASBU – Jim Carroll • CUE – Frank Close • EBU – Eric Wagner • IBU – Hani Sadek • NMA – Jesse Morris/J. Bruton • SASBU – Richard Seaman • LABU Arg – Dick Lambert • LABU Ven – Greg Drury • LABU Col – Juan Carlos Arenas • PNZ – • CBU –

5. D&C WCS 2004 Spend by PSL Eurasia BU - TCO

6. D&C WCS 2005(H1) Spend by PSL Eurasia BU - TCO

7. D&C WCS Spend by Supplier Eurasia BU - TCO OPCO CIEP SBU EBU Product Service Line (PSL) Period 2004-2006

8. D&C WCS 2004 Spend by Supplier Eurasia BU - TCO OPCO CIEP SBU EBU Product Service Line (PSL) (All) Period 2004 Total $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 Total $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 G_Total SLB WFT BHI MI-SWACO HAL BJS Data

9. D&C 2005(H1) Spend by Supplier Eurasia BU - TCO

10. 2005 2006 oct SLB 91,886,675 58,013,996 AP 49,152,959 26,611,803 Tenaris 35,235,444 38,315 HAL 18,249,063 0 WTF 3,225,986 1,724,610 Cameron 1,842,303 2,357,765 Smith 3,764,185 1, 307,465 Vetco 6,387,181 2,583,000