Mud

1. Background
• To support Mud Logging services for BUIC project.
• Target new contract in place: Oct-1, 2023.
• Qualified Bidders: PT. Geolog Indonesia, PT. Geoprolog Intiwijaya (SLB), & PT. DHI Excellence Logging.
Scope of Work
• Drill Cuttings Collection and Description
• Gas Monitoring and Analysis
• Coring Operation Support
• General Geologic Services
• Drilling Services
• General Engineering Services
• Real Time Data Transmission
• Reporting
• Daily Reporting
• Daily Log Products
• Final Well Log Products
Background & Scope of Work
Mud Logging Schematic Diagram

2. Overview New Tender
Description Previous Similar Contract No. 4600012065 – Provision of Mud Logging
Urip Development – PT. Weatherford Indonesia
New Tender
Pricing Structure • Mobilization-Demobilization: USD/trip; consisted of:
• Mobilization Fee Rig 1
• Demobilization Fee Rig 1
• Mobilization Fee Rig 2
• Demobilization Fee Rig 2
Total Mobilization / Demobilization charges shall not be more than
5% from Estimated Total Contract Value
• Personnel Charges: USD/Day
• Equipment Rental Charges: USD/Day
• Data Media Products: USD/ea
• Consumables: USD/Well
• Contract Additional Services: USD/Day
• Additional Goods and Services: Lump Sum
• Mobilization-Demobilization
• Change the pricing structure to be Lump Sum
(Mobilization/Demobilization Fee, Moving between Well Pads/Location)
with consideration as below
• Nature of Works  Mud Logging unit always attached to rig
activity
• Wells & Well Pads Location:
• 2012  42 Wells, using 2 Rigs
• 2022  7 Wells, using 1 Rig, 2 Wells at Well Pad B & 5
Wells at Well Pad C
Total Mobilization / Demobilization charges shall not be more than 5%
from Estimated Total Contract Value, with consideration as follow:
• 2022 Market survey  In average lower than 5%
• 2012  Average Bid Price, below 5%
• Personnel Charges: USD/Day
• Equipment Rental Charges: USD/Day
• Add pricing terms that Non Operating Rate shall not exceed 50% of
Operating Rate, with consideration as follow:
• 2022 Market Survey  The lowest, Non-Operating Rate is 50%
from Operating Rate. We try to push the Bidder to Quote with
the same calculation.
• 2012  Average Bid Price, Non-Operating Rate is 68.96% of
Operating Rate.
• Data Media Products: USD/ea
• Consumables: USD/Well
• Contract Additional Services: USD/Day
• Additional Goods and Service change to be Transportation Cost: Lump Sum

3. Owner Estimate & Market Condition
• Total Owner Estimate is USD 2,728,892.00 for 5 years.
• The owner estimate is taken from the average market survey price from 3
potential bidders, then reduced by 10%. In terms of Unit Rate, it has been
reduced by 15%.
• Based on comparison with BU 2012 Contract with PT. Weatherford
Indonesia, the OE is 41.26% higher in average.
• Based on information from Category Specialist, we shall anticipate around
45.28% price increase from 2012 up to 2028 for Mud Logging Services in
Indonesia.
• Based on information from Global Sourcing team, the price trend for Mud
Logging Services in Indonesia increase between 42.00% - 55.00%.
• Mob-Demob charges decrease due to number
of wells for BUIC (7 wells) is lower than number
of wells at 2012 (BU Development).
• Personnel charge is significantly higher due to
Bidder plan to offer Higher Spec for Sample
Catcher personnel. They plan to utilize Bachelor
Degree holder, meanwhile EMCL requirement is
Senior High School graduates. If exclude
Sample Catcher personnel, price increase is
90.40% which is still under the price movement
(140.22%) for wage of energy industry
personnel based on IHS Markit.
• Equipment Rental is the main component of
Mud Logging services cost, the price increase is
tally with the price increase forecast from CS &
Global Sourcing.
• Data Media Products & Contract Additional
Services decrease due to Bidder already have
business process improvement for those
services.
Equipment  39% (Main component)
Operational  25%
Personnel  12%
Overhead  12%
Industry Margin  12%

4. Pricing Table (1/2)
Mobilization & Demobilization shall apply for one (1) mobilization & demobilization event is defined as one
mobilization from Contractor’s site to EMCL’s premises, local mobilization (intra-wellpad or intra-field) and
demobilization back to Contractor’s site.
Mobilization & Demobilization charges will be one time lump sum charges. Total Mob/Demob charges will
not be more than 5% from the Total Estimated Contract Value.
Daily rate shall apply when Contractor’s personnel arrive at Company work location and cease when
Contractor’s personnel leave Company work location. Daily rate shall include cost of Background Check, MCU,
and A&D Test.
Unit Operating Rate – Total unit operating rate shall apply once the equipment is fully rigged up and
operations commence. Total unit operating rate shall cease when the equipment rig-down operations begin.
Unit Non-Operating Rate - Total unit non-operating rate shall apply once the equipment arrives at
Company's work location in Cepu, and is being rigged-up, rigged-down, or moved within the field from one
location to another. Total unit non-operating rate shall cease when the equipment is fully rigged up or fully
rigged down at the end of the project.
Zero Rate is applicable when equipment is determined by Company to be not available for use, non-
functioning, or non-useable. If equipment is not available, non-functioning, or non-useable for more than four
(4) hours per 24 hour period then the Zero Rate will apply for that calendar day.
Data Media Products – Five copies of Final Well Reports, log prints, digital data, CD and/or DVD are
considered to be inclusive of the unit operating rate. Additional copies of media products above 5 (five) shall
be charge per item.

5. Pricing Table (2/2)
Consumables – Consumables shall be charged on a lump sum per well basis
Daily rate charges for applicable equipment shall be paid at full day rate for any part of a 24-hour period
that the rates apply.
These additional services need to be separated, due to not always needed in every mud logging job.
• Item No. 1 & 7  Extra wellsite analysis from Geoscience team, to check oil show and advance
geochemistry composition. Plan to use for appraisal well.
• Item No. 2,3,&8  Will be called once the wells condition classified as “high complexity to read” well.
• Item No. 4,5,&6  Will be called once Contractor need to transmit the logging data as instructed by
EMCL.
Transportation Cost
1. Transportation cost shall be charged for additional transport while in Company representative request to
test / deliver / inspect the cutting/sample on Contractor’s workshop.
2. This should include cutting/sample transportation to client's office / storage / laboratory.
3. Charges for Transportation Cost shall be negotiated prior to performing the work with said goods or
services.
Provisional Sum to cover any additional services or goods which not listed in pricing table, including to call
items which listed in Additional Price Book.
Charge per actual cost, without handling fee.