This document provides information on insurance and warranty surveyors for offshore rig operations. It discusses how warranty surveyors are used to approve rig moves and locations to comply with insurance requirements. The roles of warranty surveyors include advising on risks, verifying procedures are followed, and issuing approval certificates. They are appointed by Transocean's insurers and include several approved third party companies worldwide. Specific requirements and procedures are outlined for obtaining warranty surveyor approvals for different rig types and operations.

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SECTION 6 INSURANCE-WARRANTY SURVEYOR
CONTENTS
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Training to be FIRST
SECTION 6
INSURANCE AND WARRANTY SURVEYOR
TABLE OF CONTENTS INSURANCE AND WARRANTY SURVEYOR
CHAPTER 1 INSURANCE 2
1.1 INTRODUCTION 2
1.2 INSURANCE 3
1.3 CLAIMS REPORTING 5
CHAPTER 2 THE WARANTY SURVEYOR 6
2.1 DEFINITION AND PURPOSE OF THE WARRANTY SURVEYOR 6
2.2 WHEN MUST WARRANTY SURVEYORS BE USED? 6
2.3 SPECIAL CONDITIONS FOR JACK-UP MOVES 7
2.4 THE ROLE OF THE WARRANTY SURVEYOR. 7
2.5 TRANSOCEAN APPROVED WARRANTY SURVEYORS 8
2.6 PROCEDURE TO OBTAIN WARRANTY APPROVALS 9

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CHAPTER 1 INSURANCE
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CHAPTER 1 INSURANCE
1.1 INTRODUCTION
Insurance statistics show that the risk increases sharply any time a Jack-Up (JU) rig moves
between drilling location. Although the JU spends an average of 5% of its time in the water, most
of the damage and losses occur during transit rather than during the 95% of its time spent in
elevated position. Compared to the Jack Up the Semi Submersibles and Drilling Vessels are much
more seaworthy by design and have therefore a lower accident rate
Analysis indicates that this anachronism results directly from tow main factors:
1. Rig design
2. Manning
1.1.a. Design Limitations
The following review of each of these should lead to a better understanding of the JU and a better
way to achieve successful rig moves.
Jack-up rigs design provides preliminary a stable platform out of reach of the seas. As this
platform must move from time to time, giving the platform hull a barge like shape provides a
certain amount of sea keeping capability. The design of the hull gives a certain amount of
protection and watertight integrity against the environmental conditions. The early JU designs
drastically improved by:
Increasing the freeboard.
Adding more watertight compartments.
Better hull shapes.
Nevertheless, a JU is limited in respect of the amount of weather it can safely withstand while in
floating condition. Here we have identified one of the essential elements, which control the risk
associated with moving a JU drilling rig: Design Limitations.
Jack-ups are a compromise between numerous and often contradictory technical and commercial
constraints, the result of which being a product with many stringent limitations. The design
limitations must be clearly outlined, as the safe operating of any JU is conditional to the capability
of remaining within these limitations. Although the MOM provides specific information of JU
safe operations procedures, the previous chapters clarify the limitation in more detail.

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1.1.b. Manning
Although design flaws occur, the overwhelming ratio of damages and losses are often the result of
somebody operating the JU or any other type of drilling rig outside its design limitations. In most
cases, the person in charge does not have a precise and complete knowledge of these limitations
and takes a short cut unintentionally
In other instances the person in charge is under pressure from the client representative onboard
and knowingly, during one phase of the operation, will exceed the rig’s limits. Fortunately, built in
safety margins prevent or limit potential damage. The higher performance, new generation of rigs
have significant reduced built in safety margins and more than ever moving these rigs demands a
good knowledge of the designer’s limitations.
Since the JU spend 95% of its life in a jacked up position, the regular personnel working onboard
have no direct involvement or limited knowledge of the marine environment. For a rig
superintendent on a JU the marine side of the operation is often a minor part of their training
program including insufficient practical experience.
Within Transocean , the theoretical and experience training program for management and staff
functions ashore and onboard includes the marine side of the operations. In addition, the MOM
procedures provide the instruction and guidelines to accomplish safe rig moves. The other and
most important part is the experience of the person in charge of the rig move. The presence of the
Warranty Surveyor onboard for the move preparation provides for the additional to assistance with
any questions from the MIC onboard that may exist about the procedures and guidelines in the
MOM.
From the above explanation, it is obvious that the risk factor between a semi submersible and a JU
is different. Consequently, the insurance policies and procedures to move a JU require a different
approach.
1.2 INSURANCE
1.2.a. Contacts
The Risk Management Department, which includes insurance, is located in HQS in Houstoon An
important part of the task of the Risk Management is to maintain all rigs and equipment insured
against major loss and/or damage For Transocean related insurance policies and procedures the
contacts are:
Director – Risk Management.
Manager(s) - Insurance.

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1.2.b. Rig Insurance Terms and Conditions.
The following information is not complete, it is only a brief overview and all questions shoulf be
referred to the Risk Management
Period.
Currently running from 12/31 to 12/31 but is subject to change in the near future.
Coverage.
The Marine Package cover rigs for “all risks of direct physical damage to the
property…” up to the insured value of the rig. “ All risks” does not mean that every
type of claim will be covered. There are many exclusions to the coverage.
Insured Valuation.
Each rig has to be declared to insurers (no automatic cover) and the insured value is
“agreed” by Transocean management. The insured value can be anywhere between
the New Build Value, Market Value and New Replacement Value. It is possible to
change the Insured values whenever required. Management must approve any
changes to the insured value.
Deductibles.
The Marine Package currently has a $1,000,000 deductible.
Cargo .
The Marine package extends to cover Cargo. The deductible here is US$ 25k. Any
major cargo shipments (especially of high value, large items such as land rigs,
derricks etc…) must be notified to the risk manager. It is important to note that items
that are part of the rig (or will become so) carry the Hull and Machinery deductible
of $1,000,000.
Premium.
The premium paid for the marine package is paid annually to the insurers and billed
monthly to each rig. Alterations/adjustments in premium are passed on to the rig’s
cost centre as billed by the insurers. The insurance is more expensive for a JU than
due to:
a) Sinking during tows
b) Punch through
c) Blowouts
Note . As a reminder, if we breach the strict Warranty Survey and/or the MOM
procedures for tow and move requirements we could invalidate the insurance policy.

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Removal of Wreck/Collision Cover.
The Marine package provides coverage for Removal of Wreck/Collision. The
deductible is either 25% of the insured value or $1,000,000 whichever is less.
(Deductibles are subject to change)
Land Rigs.
Land Rigs are covered on a declared “agreed value basis”.
Moves and Tows.
A JU requires special Warranty Survey procedures, which will follow below. All
major long JU moves should be dry tow moves.
A dry tow on a not self-propelled barge is still a high risk, because the towing vessel
cannot effectively control the barge motions in heavy seas and weather. Leg fatigue
may develop during the tow resulting in fatigue damage or eventual loss of legs.
The lowest risk for damage or sinking is the dry tow on a self-propelled carrier.
Transocean insurance covers JU dry tow and transports and all rig moves less than
2,000 nautical miles. Any other move must be specially notified to insurers. All
major long moves should be notified to the Director of Risk Management in HQS,
Houston. Any Semi Submersible move in excess of 2,000 nautical miles must also
carry a riding crew onboard capable of starting engines/machinery at any time.
War and Political Risks.
The Marine Package includes cover for war risks for offshore rigs, but rigs working
in war zones must notify Risk Management prior to arrival in the area. An extra
premium may be charged for War Risk insurance. In event of an outbreak of war, the
insurance company can cancel the coverage within 48 hours notice. War Risk cover
for land rigs is not available.
Limited cover may also be available for terrorist and political risks, such as
confiscation, seizure, and expropriation. The rig must contact Risk Management to
obtain this coverage. Due to the expense of this coverage, it may not be available in
the future.
1.3 CLAIMS REPORTING
The rig must report all incidents that causes direct physical damage to a rig or equipment
immediately to Risk Management.

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CHAPTER 2 WARRANTY SURVEYOR
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Training to be FIRST
CHAPTER 2 THE WARANTY SURVEYOR
2.1 DEFINITION AND PURPOSE OF THE WARRANTY SURVEYOR
A Warranty Surveyor is a company who provides warranty surveyor services.
The reason Transocean uses the service of a Warranty Surveyor is that under the marine package
policy insurers require (warrant) that approved marine surveyor’s are involved in the operations as
a loss prevention measure. The surveyors carrying out this approval function are termed Warranty
Surveyors. Failure to respect this warranty can invalidate insurance coverage of the MODU
2.2 WHEN MUST WARRANTY SURVEYORS BE USED?
Moves and Location approvals
Warranty Surveyor approval is required in writing for every move/tow and for each
new location for JU. In addition, Warranty Surveyors must ATTEND all jack-up
moves if an Underwriters APPROVED Transocean Rig Mover is not in
attendance. The Warranty Surveyor can attend any other move if the rig manager
feels the conditions need it.
Dry/Wet Tows/Moves
Warranty Surveyors must be used to approve vessels, tugs towing details, fastening,
routing for all dry- wet tows, and dry moves onboard of carrier vessels.
Reactivation
Warranty Surveyors must issue a Recommissioning Certificate for reactivation of
any MODU that has been laid-up/stacked for over 180 consecutive days. This shall
be done in conjunction with inspection for certificate of class as per Certification
Society ABS or other.
Major Cargo Shipments
Warranty Surveyors are also to be used to attend, verify and check stowage, sea
fastening, carrying vessels, routing etc… for all international shipments of Land Rigs
and heavy equipment (derrick sets/masts)
Stacking
Warranty Surveyors should be involved in conjunction with Certification Society
ABS or other, in stacking of a MODU.

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2.3 SPECIAL CONDITIONS FOR JACK-UP MOVES
As mentioned above, Warranty Surveyor Attendance is required for all JU moves, unless the Rig
Manager (RM) or Person in Charge (PIC) or his designate is approved as a qualified rig mover by
Transocean Insurers. Transocean requires the Rig Manager to attend all JU moves. Warranty
Surveyor approval of the tow/move and location is still required, but actual attendance is not,
unless Warranty Surveyor or Region and/or HQS still requires attendance in view of special
circumstances (pipelines. Infield jackets, weather, current, sea bottom etc….)
Transocean HQS will require a minimum level of Warranty Surveyor move attendance as an
internal audit measure.
2.4 THE ROLE OF THE WARRANTY SURVEYOR.
The Warranty Surveyor is a consultant whose function is to ensure that each MODU operation
does not exceed an acceptable level of risk. Underwriters appoint the Warranty Surveyors. The
extend of the risk is defined by the parameters, criteria and limitations set forth by the rig’s design,
as included in the MOM.
When in attendance, a Warranty Surveyor’s role is advisory “hands off” The Rig Superintendent
(or Barge Engineer Captain as per Warranty Surveyor move approval) is the PIC of the MODU at
all times.
The Warranty Surveyors role is to assure that the rig operates within its design criteria. Inherent
with this task is work in the office as well as attendance onboard during critical phases of the
operations, including verifying the stability calculations.
He advises on unusual circumstances, provides expertise in coping with third party mariners, such
as tugs and supply vessels, client’s reps and another pair of eyes during the move. His role is to
assure that the person in charge is knowledgeable and that the procedures outlined in the MOM as
well as recommendations specific to an operation are understood and followed.
Transocean PIC is always in charge. If the Transocean PIC is an APPROVED Rig Mover a
Warranty Surveyor’s presence is not required on board during the rig move. Site Approval is still
required.)
However, the MIC is responsible for directing operations at all times.

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The following work is the responsibility of the Warranty Surveyor:
Review of each rig’s characteristics.
To analyse and approve special mooring arrangements.
To provide selected environmental data for specific locations or areas.
Review of structural stresses at location.
Review of dry transport feasibility and associated stresses.
Review ocean towage feasibility and associated stresses.
Review of stability.
Review of special geo-technical problems.
To review and approve new locations.
To review and approve field moves as well as ocean tow and dry transports.
To review and approve special environmental criteria for selected rigs.
To audit Transoceans’s training programs mainly with regard to safety and marine
skills.
To review and approve qualifications Approved Rig Movers.
The Warranty Surveyor can be consulted at any time for a course of action. His mere presence is
often a salutary reminder particularly in a situation where a frustrated client representative is
applying pressure.
2.5 TRANSOCEAN APPROVED WARRANTY SURVEYORS
Transocean’s insurers have appointed and approved the following Third parties as warranty
surveyors:
John Lebourhis & Associates Inc. World Wide
Matthews Daniel World Wide
Noble Denton World Wide
Global Maritime World Wide
J. F. Moore World Wide
London Offshore Company Australia

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Transocean is in the process of having additional Third parties approved.
Also, Transocean employees will be approved in the future APPROVED Rig Movers.. This
process has just started. The approved employees will be added to the Marine package policy.
Transocean and its insurers have appointed and approved John Lebourhis & Associates Inc. in
Houston as world wide Warranty Surveyor.
2.6 PROCEDURE TO OBTAIN WARRANTY APPROVALS
The District Manager or his designate obtains warranty Surveyor’s Approval Certificates for each
rig move and new location by sending the briefing telexes, faxes or e-mail. It will facilitate
approval if the briefing data includes all the required information as outlined in the Risk
Management Manual. Follow-up by phone is often required between the District Manager and the
Warranty Surveyor to co-ordinate the timing for the arrival of the Warranty Surveyor when
attendance is required. It is the District Manager’s responsibility to ensure proper communication
and co-ordination with the Warranty Surveyor.
The District Manager or his designate must provide a specified amount of information to the
Warranty Surveyor whenever possible at least 7 days prior to the expected date of moving. Copies
should be sent to the Transocean Risk Manager at HQS and to the Region office, attention
Operations/Technical Manager.
Upon receipt of the information, the Warranty Surveyor will review then returns his approval
and/or recommendations and advice whether a Warranty Surveyor is required to attend the rig
move. It is important to advise the Warranty Surveyor in time on any changes of the move date
because most airline tickets need a 48 hour notice to reschedule the flight.
The Warranty Surveyor issues the final Certificate of Approval when he is in full agreement with
the rigs preparation and the towing arrangements. This certificate is often attached to the
recommendations. The Risk Manager, the District Manager and the towing vessel/dry tow carrier
master receive a copy. The Appendix shows an example of a Certificate of Approval, including
the List of Recommendations.
The table on the following pages itemises the required information to transmit to the Warranty
Surveyor. FOUR SEPARATE FORMATS for each type of rig are in use; DP vessel, Semi
Submersible or Tender, JU and Swamp Barge. The table gives an idea of the type of information.
The shaded squares with and X indicate the minimum information the Warranty Surveyor needs to
submit a Certificate of Approval.

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The District Manager or his designate obtains warranty Surveyor’s Approval Certificates for each
rig move and new location by sending the briefing telexes, faxes or e-mail. It will facilitate
provisions of approvals if this briefing data includes all the required information as outlined in the
Risk Management Manual. Follow-up by phone is often required between the District Manager
and the Warranty Surveyor to co-ordinate the timing for the arrival of the Warranty Surveyor
when attendance is required. It is the District Manager’s responsibility to ensure proper
communication and co-ordination with the Warranty Surveyor.
The District Manager or his designate must provide a specified amount of information to the
Warranty Surveyor whenever possible at least 7 days prior to the expected date of moving. Copies
should be sent to the Transocean Risk Manager at HOS and to the Region office, attention
Operations/Technical Manager.
Upon receipt of the information, the Warranty Surveyor will review the information. After review
he returns his approval and/or recommendations by telex/fax or e-mail. The information includes
the advice whether a Warranty Surveyor will attend the rig move or not. It is important to advice
the Warranty Surveyor in time on any changes of the move date because most airline tickets need
a 48 hour notice to reschedule the flight.
The Warranty Surveyor issues the final Certificate of Approval when he is in full agreement with
the rigs preparation and the towing arrangements. This certificate is often attached to the
recommendations. The Risk Manager, the District Manager and the towing vessel/dry tow carrier
master receive a copy. The Appendix shows an example of a Certificate of Approval, including
the List of Recommendations.
The table on the following pages itemises the required information to transmit to the Warranty
Surveyor. FOUR SEPARATE FORMATS for each type of rig are in use; DP vessel, Semi
Submersible or Tender, JU and Swamp Barge. The table gives an idea of the type of information.
The shaded squares with and X indicate the minimum information the Warranty Surveyor needs to
submit a Certificate of Approval.

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Training to be FIRST
Description of Information required for a
Specific Rig
DP Semi
&
Tender
JU
Swamp
Barge
Rig Name X X X X
Rig Manager or District Manager X X X X
Present Location, area, block and
co-ordination (latitude-longitude)
X X X X
Location moving to area, block and
co-ordinates (latitude-longitude)
X X X X
Water depth X X X X
Oil Company (Operator) X X X X
Type of well (platform, conductor pile,
exploration etc….)
X X X X
Distance to move X X X
X
Special situations or procedures (ice berg
higher air gap, stacking, congested area)
X X X X
Expected date of move X X X X
Name of the MODU Master or MIC X X X X
Percentage of thrusters operational X X
Identity of service vessels, if applicable X
Proposed heading X X

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Soil information (and for Semi, type weight
and fluke angle of anchor)
X X X
Anchor pretension and time to hold test X
Seabed survey results, obstacles in area
beyond proposed anchor pattern
X
Anchor lines minimum scope after test X
Anchor system, buoys or chaser X
Type and number of piggy back anchors
available
X
Sub bottom profile for anomalies, shallow
gas risks
X X X
Percentage of rig propulsion if applicable X
Identity of each AHT/tow vessel and
function, with BHP, continuous BP etc.
X X X
Seabed survey within radius as per Warranty
Surveyor requirements
X X X
Whether operations is proposing to provide a
tow master
X
Procedures/analysis for uncommon anchor
patterns
X
Present penetration X
Anticipated penetration X
Expected stay at location X X
Special situations or procedures, including
higher air gap etc…
X