Logistics Asset Procedure - Title Version 1.

Petroleum Development Oman L.L.C.

UNRESTRICTED Document ID: PR-XXX

Date (Month-Year) Filing Key:

Logistics Asset Procedure

(Fuel Controls and procedures)

Keywords:

This document is the property of Petroleum Development Oman, LLC. Neither the whole nor any part of
this document may be disclosed to others or reproduced, stored in a retrieval system, or transmitted in any
form by any means (electronic, mechanical, reprographic recording or otherwise) without prior written
consent of the owner

PR-XXXX 1 Month Year

Logistics Asset Procedure - Title Version 1.0

Authorised for Issue (XX/XX/1999)

Signed: ……………………………

Warith Al-Kharusi (TLM)

Logistics Manager

Version No. Date Author Scope/Remarks

01 29.01.2001 Mohamed Subhy Fuel procedures and controls

PR-XXXX 2 Month Year

Logistics Asset Procedure - Title Version 1.0

Contents

1. INTRODUCTION.....................................................................................................................................4
1.1 BACKGROUND....................................................................................................................................4
1.2 PURPOSE.............................................................................................................................................4
1.3 DISTRIBUTION/TARGET AUDIENCE....................................................................................................5

2. BUSINESS CONTROLS PROCEDURE..............................................................................................5

2.1 SCOPE.................................................................................................................................................5
2.2 PROCEDURE DESCRIPTION.................................................................................................................7
2.3 RELATED FORMS................................................................................................................................7
2.4 RELATED BUSINESS CONTROL DOCUMENTS......................................................................................7
2.5 REVIEW AND IMPROVEMENT.............................................................................................................8
2.6 STEP-OUT APPROVAL.........................................................................................................................8

PR-XXXX 3 Month Year

Logistics Asset Procedure - Title Version 1.0

1. Introduction
There are two types of fuel cards used by PDO: -

1. Fleet cards
2. Bulk cards/Open cards.

Fleet card is issued to a specific PDO fleet and the key features of the card system are as
following:

Product restriction : Restrict validity of the card to

Certain products.
Volume restriction : Restrict number of liters of fuel
per transaction.
Number of Transaction per Day : Frequency of daily usage to be
defined.
Embossed with identifications : Vehicle No/User, etc.

In addition to above, an invisible registration number for the specific vehicle is embossed on the card
which functions as a pin number for security reasons.
The final check is at the point of obtaining the fuel. The fuel attendant must crosscheck the Fleet card
and the vehicle registration number to ensure that the numbers match. He will then feed the vehicle
registration number into the card machine. The card will only operate when correct registration number
for that specific card is entered.

The open card or bulk cards are used for various purposes. Most of these cards are issued to the PDO
rigs, area coordinators and human relation sections and other dept. who need the bulk fuel for their
operations.

1.1 Background.
The previous system “ Chitty” (credit coupon system) had many shortfalls such as manual
input, no restrictions etc. The Fuel card system has been put in place to overcome these
shortfalls. The major advantage with the current system is that consumption can be monitored
on daily basis and any deviations are reported immediately in the form of exception reports.
The payment has also become easier as the records can be easily reconciled with the data
available electronically. Management information can also be obtained on monthly basis with
the following information:

Vehicle No.
Type of product
Total Quantity of product purchased during the given month
Purchase date/time
Filling station (location)
Kilometre reading
Unit price and total amount
Fuel consumption – KM/Litre

1.2 Purpose

The purpose of this procedure is to describe the steps necessary for applying the fuel
cards, usage and control for both fleet and bulk cards.

PR-XXXX 4 Month Year

Logistics Asset Procedure - Title Version 1.0

1.3 Distribution/Target Audience

This procedure is aimed at company vehicle users and bulk card.

Distribution of this document is controlled by TLC/4

2. Business Controls Procedure

2.1 Scope

This procedure applies to application of fuel cards both fleet and Bulk/Open cards, issue
replacement of damaged / lost card, administration/controls, responsibilities and Violation Report.

a) APPLLICATION OF BULK CARDS.

The department should apply by filling the attached form with justification.
Provide the limitation and product required.
The account number to be charged.
The approval from line manager or asset manager depends on level of authorization as per MOA.

b) BULK FUELREQUIREMENTS
Bulk fuel request should come from ex. Rig (by PE) or bulk card owner to TLN/11 for North and
TLS/11 for South specifying the product name, amount (lts) date required and location to be
delivered. TLN/11 and TLS/11 receive the request and raise the BULK FUEL CHIT and authorized
by the Cargo Haulage supervisor as per the approved specimen list.

c) Replacement of damage cards.

Any damaged fuel card should immediately be reported to our site and submit the damaged card
to our representative - North (TLN/4), South (TLS/4 and Coastal (TLC/42).

The head fleet sections ie.TLN/4 & TLS/4 should inform TLC/42 by e-mail with the details of
the damaged cards and apply a replacement. Also arrange to submit the old card back to Al-
Maha through TLC/42 . Tlc/42 should inform Al Maha about the damaged card and apply
replacement for the damaged card. Once received the new card is to be dispatched to site reps for
delivering to the user. Parties (Fleet Heads) should maintain records for both new and old card.
The old damaged card must be returned to Al-Maha and TLC/42 must obtain a signature against
the returned cards. A signed card returned list is to be kept for auditing purpose.

d) Lost card report/blocking of the card.

Any lost card must be reported immediately by the user directly to TLC/42 via Fleet Head
sections or directly.

TLC/42 should inform AL-Maha to block the card immediately for security reason and TLC/42
to inform TLC /4 and TLC.

TLC/42 to arrange a replacement card if the lost card not found within short time – 3 –5 DAYS.

2.1.1 CONTROLS OF BULK /OPEN CARDS.

PR-XXXX 5 Month Year

Logistics Asset Procedure - Title Version 1.0

The controls of bulk cards should remain under TLN/11 for North ,TLS/11 for South Oman and
other Cardholders. The bulk cardholders are responsible for the safe up keep and safe guard use of
the cards.
The cargo haulage section issues the signed fuel chit to their contractor and arranges to load the
fuel from the filing station. Also way bill to be raised for the transportation.

The filling station should check the chit and ensure that, signed as per the authorized signature
before filling the truck. After that fill the fuel as required and closes the chit and signed. The filling
station attendant gives the receipt to the driver.

A copy of fuel transaction to be provided by the attendant attached with copy of the chit and
returned back to cargo haulage section after fuel is issued.

The Rig PE or bulk card owner must receive and signed the fuel upon delivery. Any returned fuel
amount must be advised both user and cargo haulage section authorized the chit communicated
with both user and Cargo Haulage section and how and where to be returned.

2.1.2 Responsibilities

a) TLC/4 – Contract representative.

Maintain the fuel card records and fuel management.
Apply for new cards, replacement, and cancellation, blocking of the lost cards.
Co-ordinate with both PDO site reps, user dept, Al-Maha and Trust –2 system regarding the fuel.

b) Head Fleet Services. (TLN/4 & TLS/4 ) – Report and maintain fuel cards record passing through them.
Also co-ordinate with both user and TLC/42 regarding fuel cards issues and contractor. Returned backs
all the old cards and damaged cards to TLC/42 and keep records. Receive the new cards from TLC/42
and deliver to the users immediately. Visit the fuel stations frequently. Provide fuel-dispensed report
monthly.

c) Al-Maha – Supply new fuel cards with covers, maintain the records and provide violations report
weekly, check and advice. Invoices need to be submitted as per PDO requirements attached with
monthly transaction report.
Investigate the violations and report immediately.
Ensure only one card used and no dublication. Ensure all the cancelled cards are terminated
and not to be functional and replaced cards are automatically blocked for security reasons.
Submit Monthly Transactions report (Floppy) to TLC/42.
TLC/42 to submit the floppy to TLL/12

Trust –2 system custodian (TLL/12) activities and responsibilities.

To down load the fuel transaction reports from Al-Maha.
Allocate the fuel cost to the fleets and users for bulk fuel
Check the rejections and report to TLC/42
Report the invalid or wrong account numbers to TLC/42
Up-date the data and account numbers.
Provide Monthly report for each area.
Co-ordinate with both TLC/42 and users and provide any required report.
Send monthly bulk report directly to users for verification.

Driver /Card user Responsibilities:

PR-XXXX 6 Month Year

Logistics Asset Procedure - Title Version 1.0

Ensure the security of the card under his control and not to be used for filling any other vehicles.

Report to our site reps or contract holder for any damaged or lost card immediately.

Check the receipt and amount liters filled in the vehicle and ensure that it tallies with the receipt and
signed.

Keep the receipt in case is required for cross checking. Ensure the card details are correct to the particular
vehicle used by him.

2.1.3 Fuel Violation and Investigation.

Al-Maha to provide the violation reports Weekly to TLC/42.

TLC/42 to check and report any violation suspicion to the following:

Immediately controls to be made for security reason (Block The Card)

Initial stage informs, TLC, user department. Involved and Al-Maha.

Investigation team to be formed depends on the violation level.

Report the status and follow up.

2.2 Procedure Description

See overleaf.

2.3 Related Forms

Application of bulk card.

PR-XXXX 7 Month Year

Logistics Asset Procedure - Title Version 1.0

2.4 Related Business Control Documents

DOCUMENT TITLE REF. No.

Policy N/A
Code of Practice N/A
Procedure N/A
Specification N/A
Guideline N/A
Other PDO N/A
Document

2.5 Review and Improvement

Any user of this document who encounters a mistake or confusing entry is requested to
immediately notify TLC/4, using the form provided.

This procedure shall be reviewed as necessary by TLC, but no less frequently than every
four years.

2.6 Step-out Approval

(There are no foreseeable circumstances in this procedure for which step-out approval
would be required).

PR-XXXX 8 Month Year

Logistics Asset Procedure - Title Version 1.0

Appendix A

Glossary of Terms, Definitions & Abbreviations

Al-Maha PDO contractor running the fuel contract.

MOA Man of Authorisation
PE Drilling petroleum engineer
PDO Petroleum Development Oman
KM Kilo meters

PR-XXXX 9 Month Year

Logistics Asset Procedure - Title Version 1.0

Appendix B

USER FEEDBACK FORM

From:

Date:

To:
DOCUMENT SECTION COMMENTS
(Ref. No.)

PR-XXXX 1 Month Year