MANAGEMENT REVIEW MEETING PROTOCOL

DATE: 26 OCTOBER 2022

Attendee Name Signature

Commercial Manager Jeyhun Kangarli
Commercial and Technical Specialist Toghrul Khashalov
QHSE Manager Anar Hajiyev
Procurement specialist Emin Naghiyev
Superintendent Rashad Malikov
HR and Office Admin Farida Naghiyeva

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AGENDA:

1. results of audits
2. customer and other interested parties’ feedback
3. achievement of quality objectives
4. the performance of suppliers and other external providers
5. the adequacy of resources
6. process performance and service conformity
7. the effectiveness of actions taken to address risks and opportunities
8. non-conformities; status of preventive and corrective actions
9. monitoring and measurement outcomes
10. follow-up actions from previous management reviews
11. changes that could affect the quality management system, including changes in the context of the
organization
12. opportunities for improvement.

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 MANAGEMENT REVIEW MEETING PROTOCOL

1. Results of audits

Internal audit was conducted Anar Hajiyev as per ISO: 9001:2015 standards on 15/08/2023 and
16/08/2023, The audit resulted in 7 minor non-conformity and 3 recommendations. The results have
been documented in AZO-LMP-QMS-F-031 Internal audit report and AZO-LMP-QMS-F-068 Car Log.
All findings considered relevant, and corrective actions are being identified. Completion dates and
responsible persons determined.

2. Customer and other interested parties’ feedback

The company regularly collects feedback from the Customer during meetings conducted at the end of
each reporting period.

Customer feedback includes:

 satisfaction questionnaires –After the end of provision of Drilling Mud Services to Umid-1 20
well Customer Satisfaction Questionnaire had been sent to UBOC and filled and signed
questionnaire was received back
 customer complaints – Engineers competency estimated satisfactorily, however office staff of
Azorel is assessed negatively in relation to the customer.

The process for internal and external communication with other interested parties listed in Quality
Manual has been established in the organization. The needs and expectations are communicated
through e-mail correspondence, internal order system, operational meetings, and tool box talks.

3. Achievement of quality objectives

30 Quality objectives for 2023 have been established. 17 of them is achieved. Achievement is
monitored on a monthly basis: Current rate is 56% (by August 2023).

4. The performance of suppliers and other external providers

There are 26 suppliers identified in External provider list: suppliers of equipment, PPE and various
services. All suppliers are subject to annual evaluation. 2023 results show that all suppliers are
approved. Average score – 3.8 (higher than the threshold of 3.0).

There is currently one supplier of raw material – Halliburton Eurasia. The interaction with this supplier
is controlled with Joint Cooperation Agreement. The supplier is a partner company of Azorel LLC, and
is not subject to evaluation.

5. The adequacy of resources

Top Management ensures that all required resources are available, including:
 Human resources
 Financial resources
 Infrastructure
 Equipment
 Etc.

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 MANAGEMENT REVIEW MEETING PROTOCOL
Objectives for 2023 include those aimed at improving, competency finance, infrastructure and
organization’s facilities, Quality and HSE performance, increasing the competence and warehouse
processes.

Process performance and service conformity

The operational planning is ensured through contracts with Customers, Customer requests,
involvement of external engineers and suppliers.

All operational procedures have been established, daily reports are submitted by operational
personnel to the Management and demonstrate the status of current tasks. Key procedures include:

 AZO-LMP-QMS-PRO-001 Manufacturing of Drilling Fluids

 AZO-LMP-QMS-PRO-002 Material Receiving, Storage, Handling and Preservation
Procedure
 AZO-LMP-QMS-PRO-003 Shipping Procedure
 AZO-LMP-QMS-PRO-004 Maintenance Procedure

Evidences/records of completed operation have been maintained and kept by process owners.
Process performance is measured with established KPIs, inspections and auditing, on-job monitoring

Actions identified: Responsibilities in all procedures was taken an action to be reviewed for the
upcoming year

6. The effectiveness of actions taken to address risks and opportunities

Risks have been identified in AZO-LMP-QMS-F-024 Risk Register, and actions taken to address
these risks. The company utilizes the FMEA methodology for risk assessment based on calculation of
risk likelihood and severity on the scale from 1 to 4. Outputs of the assessments are rated according
to established criteria. Risks are rated as Low, Medium, High.

Risks have been documented in AZO-LMP-QMS-F-024 Risk Register (last reviewed 11.07.2023).

Actions identified: Pursue the OFIs associated with risks from Risk register:

 Complete installation by grounding for base-oil tanks and diesel tank

 To create drawing and P&ID for base-oil tanks
 improve HSE performance by applying stop-card observations
 Participate in 7 tenders
 Improve leadership behavior
 To conduct competency assessment for employees

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7. Non-conformities / status of corrective actions

The 7 minor findings raised during the internal audit 3 OFI and recommendations have ongoing
status. The types of non-conforming products defined in Manufacturing of drilling fluid procedure.
Non-conforming products are controlled in accordance with this procedure and 8.7 of Quality Manual.

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8. Monitoring and measurement outcomes

Monitoring and measurement is done based on KPIs, defined in AZO-LMP-QMS-F-021 KPI
scorecard.

9. Follow-up actions from previous management reviews

P&ID and drawings obtained for Horizontal tanks area
Actions obtaining certification and grounding for base-oil tank are completed
Installation for measuring equipment still remains uncompleted due to insufficiency of resources
10. Changes that could affect the quality management system, including changes in the
context of the organization

The major change is the implementation of QMS. Context has been identified and documented in
Quality Manual.

The major change was a new employee in Financial department

11. Opportunities for improvement

Oportunity for improvement

1 Changes to contracts should be
recorded and retained as
documented information in order
to track changes

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 MANAGEMENT REVIEW MEETING PROTOCOL
2 The customer satisfaction has Policy it is recommended to
been evaluated in 2021 by increase intensity of surveys.
SOCAR AQS. But one complaint Take an objective of
was not addressed. In order to conducting 2 surveys for
improve customer satisfaction each customer.

3 After each training, employees Test questions can be

can be tested according to the prepared based on study
training topics to improve their materials.
competence. Obtaining training materials
must be claimed from
training centers
4 A vendor list is available but vendors 8.4.2 Type and extent of Classify vendors due to impact Jeyhun,
are not classified due to their potential control on Azorel business and Emin,
impact on Azorel's ability to meet The organization shall implement relevant control Narmina
requirements. ensure provided processes, measures according to risk
products and services do not ratings
adversely affect the
organization’s ability to
consistently deliver
conforming products and
services to its customers.
take into consideration:
1) the potential impact of the
externally provided products
and services on the
organization’s ability to
consistently meet customer
and applicable statutory and
regulatory requirements;

Next management review meeting is scheduled for: October 2023

Signed by: Jeyhun Kangarli

AZO-LMP-QMS-F-032; Rev.4; 25.08.2023