00-ZA-E-G09000_B

INDEX

INDEX ...2

ATTACHMENTS: ...3

ATTACHMENT 1: ENGINEERING ORGANISATION MATRIX...3

ATTACHMENT 2: PROCEDURES INDEX AMENDMENTS AND REVISIONS ...3

AMENDMENTS AND REVISIONS ...4

1. PURPOSE ...5

2. SCOPE ...5

3. APPROACH TO PROJECT EXECUTION...5

3.1 PROJECT OBJECTIVES ...5

3.2 PROJECT STRATEGY ...6

3.3 PROJECT ORGANIZATION AND RESPONSIBLITIES...6

3.4 CONTRACTOR AND COMPANY COOPERATION...7

3.4.1 COOPERATION ...8

3.4.2 FACILITIES AND SERVICES ...8

3.4.3 BLOCK VISA ...8

3.5 HEALTH, SAFETY AND ENVIRONMENTAL (HSE)...8

3.6 QUALITY MANAGEMENT IN PROJECT EXECUTION ...13

3.7 RISK ASSESSMENT AND MANAGEMENT ...13

4. EXECUTION OF THE WORK ...14

4.1 CONTRACT DOCUMENTS REVIEW...14

4.2 DETAILED ENGINEERING AND DESIGN ...14

4.3 DISCIPLINE ACTIVITIES...15

4.3.1 FIELD AND PLATFORMS DESIGN ...15

4.3.2 ONSHORE PIPELINES DESIGN ...20

4.3.3 OFFSHORE SEALINES DESIGN...21

4.3.4 SUBMARINE COMPOSITE CABLES & SUBSEA UMBILICALS ENGINEERING ...25

4.3.5 ENGINEERING INTERFACES ...27

4.3.6 CONSTRUCTABILITY...27

4.3.7 PRELIMINARY DESIGN VERIFICATION...28

4.3.8 ENGINEERING ORGANIZATION MATRIX ...28

4.4 PROJECT CONTROLS...29

4.4.2 WORK BREAKDOWN STRUCTURE ...29

4.4.3 PLANNING AND SCHEDULING ...30

4.4.4 PROGRESS MEASUREMENT...31

4.4.5 PROJECT REPORTING...32

4.5 PROCUREMENT ...33

4.6 CONSTRUCTION MANAGEMENT ...34

4.7 OFFSHORE TRANSPORT AND INSTALLATION...37

4.7.1 INSTALLATION ENGINEERING ...37

4.7.2 INTERFACES...39

4.7.3 OFFSHORE TRANSPORTATION OF FACILITIES ...40

4.7.4 OFFSHORE INSTALLATION ...40

4.8 ONSHORE CONSTRUCTION AND INSTALLATION ...44

4.8.1 ONSHORE ONSITE TEMPORARY FACILITIES...44

4.8.2 ONSHORE PIPELINE CONSTRUCTION / INSTALLATION WORKS ...44

5. INDEX OF PROCEDURES ...47

ATTACHMENTS:

ATTACHMENT 1: ENGINEERING ORGANISATION MATRIX

AMENDMENTS AND REVISIONS

Amendment

and revision

Date

Page

Description

X1 23.04.2011 Interdisciplinary Check GS

A 26.04.2011 Issued for COMPANY comments / Approval GS

1. PURPOSE

This document, Work Execution Plan and Procedure (WEPP), provides a general statement on

the CONTRACTOR’s plan to execute the PROJECT in order to achieve the CONTRACT

Requirements, Objectives and Goals.

This document is intended to be a strategic planning set of documents that defines the

objectives, plans, requirement and information necessary for project execution as required by

OOK Contracts n. 6600026283, Schedule B, Paragraph 4.8. and by IK Contracts n.

6600026284, Schedule B, Paragraph 4.3.

Detailed processes are described in other relevant Plans and Procedures referenced in this

document and CONTRACT Schedule “B”. The various Plans will evolve throughout the

PROJECT, equally the Project Organisation will adapt to meet the specific needs prevailing at

each stage of the execution.

The SAIPEM Project Director leads the WEEP preparation with the involvement of all involved

parties.

2. SCOPE

This WEPP applies to the entire scope of work of the OOK CONTRACT 6600026283 and the IK

CONTRACT 6600026284.

3.

APPROACH TO PROJECT EXECUTION

3.1 PROJECT

OBJECTIVES

The Project Management team will provide their best efforts and expertise in order to achieve

the following Project Objectives. The individual Plans and Procedures lay down the detailed

framework for their achievement.

HSE

Achieve HSE goals in a manner that meets COMPANY and CONTRACTOR

high performance standards and an outstanding performance in personnel

safety and environmental respect

Quality

Provide works in accordance with the CONTRACT requirements and

accurately documented for future reference

Technology

Design and construct facilities using available technology, with recognition

of experience gained on previous project as appropriate.

Schedule

Deliver a Quality Product within the specified Project Schedule

3.2 PROJECT

STRATEGY

The key element of the CONTRACTOR Project Strategy is the utilisation of Saipem Group

resources to best meet the Project requirements, including

 Engineering located at Saipem offices

 Local fabrication and logistics support thought STAR & Snamprogetti existing yards

located near Damman

 Saipem offshore installation fleet with Heavy Lift /Lay Barges Castoro 2, Castoro 8

 Outsides Kingdom Saipem fabrication yard in Indonesia

3.3 PROJECT ORGANIZATION AND RESPONSIBLITIES

CONTRACTOR fulfils the scope of work through the deployment of a dedicated Project

Management Team, led by a fully dedicated Project Director, Project Managers and Project

Team.

The Project Team is made up of key personnel, all specifically dedicated to the project as task

force.,

The Project Work Scope will be subdivided in five main Work Packages, each, assigned to a

dedicated Project Manager; The Main Work Packages are:

 EPCI Onshore Works

 EPC Structures

 EP Pipelines and Cables

 Structures Construction

 Sealines & Cables Construction,

The Task Force also includes for following staffs: Procurement, QA/QC, HSE, Contract

Administration, Project Control and Human resources, providing services and support to Work

Packages Project Managers and reporting directly to the Project Director.

The details of CONTRACTOR Project Organization OOK and IK and the definition of roles and

responsibilities are given in the following documents:

 Project Team Organization

 Project

Quality

Plan.

Project Office:

The CONTRACTOR Project Management Team will be located at the Design Office in the

Saipem Branch office in Sharjah (UAE) next to the COMPANY PMT office for effective

communication.

Project Work Sites:

The Project will be executed at the following sites:

 UAE at SAIPEM Sharjah:

o Project Management,

o Field and Platform Design,

o Procurement (platforms and subcontracts)

o Offshore Transportation and Installation Engineering,

 Italy at SAIPEM Fano:

o Offshore Sealines Design (including flow assurance, wall thickness sizing and

corrosion for the entire pipeline system)

o Submarine Cables and Umbilical Engineering

o Purchase and Vendors inspection of Sealines and subsea valves, Cables and

Umbilicals (battery limit defined later on)

 In

Kingdom:

o Onshore Pipelines Design

o Fabrication in STAR yard, prefabrication in Snamprogetti yard (refer section 4.6)

o Sealines Pipe coating,

o onshore and offshore Construction sites

 Indonesia:

o Fabrication of Tie-In Topsides in Saipem Karimun yard (Indonesia) (refer section

4.6)

3.4.1 COOPERATION

The Project will be executed in a co-operative environment between COMPANY and

CONTRACTOR Project Team resident at Project Office in Sharjah UAE and then at Sites in

order to accelerate the decision making process, which is an essential element of this Project

Execution Plan.

Integration at the working level of CONTRACTOR and COMPANY Project Team in Sharjah

UAE first and eventually at Site will be a vital ingredient to the success of the Project.

3.4.2 FACILITIES AND SERVICES

Facilities and Services for Company Project Management Team in Design Offices and

Fabrication Office will be as per Contract Schedule B.

CONTRACTOR will prepare and submit to COMPANY the proposed Office Lay out at each

location.

3.4.3 BLOCK

VISA

CONTRACTOR will follow the Block Visa procedure for its activities in kingdom.

CONTRACTOR will establish the plan of personnel to be mobilised in Kingdom for the

performance of the Project. CONTRACTOR will issue to COMPANY the Statement Of

Manpower Requirements providing with the following information: Contractor details, Contract

details, number of expatriates by nationality required to perform the job. The well-known to

Contractor block visa procedure includes the following steps:

Submit Statement of Manpower Requirements to COMPANY Project Manager

After approval, submission to Aramco Contract department

Submission to Aramco Government Relation office

Preparation of special documents for Labour Office

Submission to Labour Office

Submission to Ministry

After approval Visa allocation for each nationality

Receive work Visa from labour office

3.5 HEALTH, SAFETY AND ENVIRONMENTAL (HSE)

number of other HSE documents (e.g. Hazard Identification and Risk Assessment Plan,

Emergency Response Plan, Event Reporting and Investigation Procedure, HSE Audit Plan,

HSE Requirements for Subcontractors Procedure, Waste Management Plan, etc.), which will

generate the fundamentals of the Project HSE Management System and will be applicable at all

project locations and throughout its lifetime. The Project HSE Management System so

developed and implemented will be meant to ensure that no Harm to People, no Damage to the

Environment, and no Damage to or Loss of Asset will occur throughout the project duration.

These objectives will be pursued in a number of ways, a few of which being pointed out here

below:

 Hazard Management

CONTRACTOR will ensure that risk assessments are timely performed by each part of its

project organization to suitably and sufficiently cover their full scope of work. This means

that no work activity will commence, unless appropriate control measures have been

physically implemented (not necessarily on project basis) and all involved parties have been

made aware of them.

 Consideration for the Environment

CONTRACTOR will act in full respect of the applicable environmental legislation and will

encourage the reduction of environment emissions, including noise, to a minimum and

improvement of waste management through its ZERO Pollution target and policies.

 Health and Welfare

CONTRACTOR will pursue schemes and initiatives for the improvement of the occupational

health and welfare of employees

 Training and Competence

CONTRACTOR will promote and implement training and awareness programmes

throughout the project duration and will ensure that all individuals have received adequate

HSE training in order to perform their work safely and efficiently.

 Incident Prevention, Reporting and Investigation Actions

In line with SAIPEM CORPORATE and COMPANY requirements, CONTRACTOR is

committed to prevent any kind of Accident / Incident during the entire project lifetime.

However, should any undesirable event occur, the reporting, investigating, analysing and

record-keeping of Accident / Incident reports is an important element of CONTRACTOR’s

HSE Management System.

Therefore, CONTRACTOR is committed to reporting and investigating all Accidents /

Incidents, even where no injuries or significant damage have occurred.

These investigation reports will be analysed to determine where the HSE improvement

efforts need to be emphasised. All reports and investigations must include a determination

of the root causes of the incident and corrective actions to be undertaken to prevent

recurrences.

Incident is a general term. An Incident can be an Accident or a Near Miss, but all of them will

be subjected to the same reporting and investigation procedure.

Lessons Learned, both good and bad, will be shared with the COMPANY and all Third

Parties involved in the project execution works.

 Monitoring and Review

HSE initiative will be monitored using Leading Indicators techniques to provide a clear

measure of their effectiveness. CONTRATOR will regularly perform internal audits and all

finding will be reviewed and timely followed-up.

 Targets

CONTRACTOR will set targets for the Project activities against a similar set of key

indicators reflecting the HSE objectives.

The list of HSE documents that CONTRACTOR will prepare the Project SOW are listed in

Section 5 of this document and will include the following:

 Waste Management Plan for the Fabrication, Onshore and Offshore Activities (IK)

 Environmental Monitoring Program for the Offshore Activities (IK)

 Loss Prevention Plan for Fabrication Activities (IK)

 Hazard Identification and Risk Assessment (HIRA) Plan for Fabrication Activities (IK)

 Emergency Response Plan (ERP) with MEDEVAC for Fabrication Activities (IK)

 Oil Spill Contingency Plan for Fabrication Activities (IK)

 Loss Prevention Plan for Onshore Activities (IK)

 Hazard Identification and Risk Assessment (HIRA) Plan for Onshore Activities (IK)

 Emergency Response Plan (ERP) with MEDEVAC for Onshore Activities (IK)

 Oil Spill Contingency Plan for Onshore Activities (IK)

 Loss Prevention Plan for Offshore Activities (IK)

 Hazard Identification and Risk Assessment (HIRA) Plan for Offshore Activities (IK)

 Emergency Response Plan (ERP) with MEDEVAC for Offshore Activities (IK)

 Oil Spill Contingency Plan for Offshore Activities (IK)

 Loss Prevention Plan for Fabrication Activities (OOK)

 Hazard Identification and Risk Assessment (HIRA) Plan for Fabrication Activities (OOK)

 Emergency Response Plan (ERP) for Fabrication Activities (OOK)

 H2S Contingency Plan (TBC)

 Project Event Reporting and Investigation Procedure

 Project HSE Training and Induction Plan

 Project HSE Requirements for Subcontractors

 Project HSE Audit Plan

 Project Health Plan

 Project HSE Incentive Scheme

In addition to the above, CONTRACTOR will undertake a series of actions including the

following:

 HSE Audit of STAR Fabrication Yard prior to commencing project activities.

 HSE Audit of KARIMUN Fabrication Yard prior to commencing project activities.

 HSE Audit of the main Vessels involved in the offshore operations (Castoro 2, Castoro 8,

etc.) prior to commencing the activities.

 HSE Induction and Training of project personnel in KSA, Sharjah and KARIMUN. The

process will be coordinated with the project assigned HSE Coordinators at STAR and

KARIMUN Fabrication Yards. The HSE Induction and Training will be given to personnel

as they join the project teams and prior to commencing work. It will be done in

accordance with the Project HSE Induction and Training Plan approved by COMPANY.

 Preparation of Risk Assessments applicable to the project activities. The process will be

coordinated with the project assigned Operational Management, HSE Coordinators and

relevant Masters of the Vessels involved. The process will be an ongoing one,

throughout the lifetime of the project, as additional Risk Assessment (review) sessions

may be required during the work execution phases, depending on various potential

changes. Review with COMPANY the Risk Assessments.

 HSE Audits of Project HSE Management System, work sites and HSE performance at all

project locations. The HSE Audits will include Health, Medical and Catering Facilities &

Services audits, Safety audits and Environmental Protection & Waste Management

audits. Internal and / or Subcontractor HSE Audits will be conducted on a monthly basis

at all project locations according to the Project HSE Audit Plan (which will include a

Project HSE Audit Schedule) approved by COMPANY.

 HSE Inspections of work sites at all project locations. Daily random HSE inspections will

be conducted at each work site, aimed at checking the compliance with the Project HSE

Standards during certain tasks execution phase. Thorough Weekly HSE inspection will

be conducted at each work site.

 Organize regular Lessons Learned sessions at the end of work phases. These sessions

will be coordinated with and agreed upon with COMPANY and CONTRACTOR PMT.

The aim will be to share Lessons Learned, both good and bad, with all project teams.

 Thoroughly Coordinate and Risk Assess SIMOPS (as applicable). The main target

should be to avoid, if possible at all, any SIMOPS, but, should the need for SIMOPS

occurs, they are to be thoroughly and timely analyzed and Risk Assessed. The relevant

Risk Assessment is to be approved by COMPANY and CONTRACTOR management,

and green light to proceed with work is to be given accordingly.

 Weekly HSE & Welfare Meeting at each project work site. Weekly HSE & Welfare

Meeting will be held at each project work site. The schedule for each worksite will be

approved beforehand by COMPANY and CONTRACTOR relevant management. The

meeting will be minuted and the MoM will be distributed to COMPANY and

CONTRACTOR management.

 Conduct Emergency Drills at each project work site. An Emergency Drills schedule will

be developed for each project work site and subjected to COMPANY approval prior to

entering into force.

 Hold Lessons Learned meeting with the relevant personnel, if applicable, after

conducting each Emergency Drill. Lessons Learned meetings will be held only if

negative aspects (e.g. too long mustering time, improper evacuation of the affected work

areas, inadequate response, in terms of both timing and actions, of the Emergency

Response Team, inadequate behaviour of personnel, etc.) have been highlighted during

the drill.

 Establish and monitor a two-way open and effective communication system (e.g. HSE

and Welfare Meetings, Toolbox Talks, Safety Bulletins, Safety Alerts, Safety

Stand-Downs, Safety Handbooks, Newsletters and relevant HSE Information) as part of the

HSE Awareness Program to promote active information, involvement and co-ordination

between work force, HSE personnel and management. This process will be aimed at

enhancing the positive safety culture within the entire project organization.

 Implement an HSE Incentive Scheme program at project level, applicable to each work

site and facility. This program will be aimed at recognizing and rewarding good HSE

performance throughout the project.

 Annual HSE Management System Review. A Management Review will be carried out on

an annual basis and will address the status of implementation of the HSE Management

System, outstanding issues, review of the status of suppliers HSE System, persistent

non compliances and a review of trends.

Moreover, CONTRACTOR does confirm that the project dedicated Loss Prevention Plans

(please refer to the aforementioned list of HSE documentation) will address the following:

 Schedule “D” of the IK Contract

 COMPANY Construction Safety Manual

 COMPANY Marine Safety Instructions

 Other applicable project standards and specifications

With reference to the Attachment V of Schedule “B” of the OOK Contract, CONTRACTOR will

prepare an Emergency Response Plan (ERP) with MEDEVAC for Fabrication Activities to

address all items included in the Attachment.

3.6 QUALITY MANAGEMENT IN PROJECT EXECUTION

During All phases of the Project (Engineering, Procurement and Construction) quality assurance

is addressed as follows:

 A Project Quality Manager will be assigned full time to the Project and will be

responsible for monitoring the development and implementation of the Project Quality

System

 30 days after Contract award the Project Quality Manager, on the basis of the scope of

the Project, develops a specific Project Quality Plan

 Specific project procedures will be prepared and approved in line with Contract

requirements and CONTRACTOR Project execution practices

 Project Quality Manager in close cooperation with the Project Director and relevant

Project Managers will develop a Project Quality Audit Schedule

 Schedule Q of OOK and IK Contract shall be reviewed and implemented as requested

by the Contract throughout all Project execution life

3.7 RISK ASSESSMENT AND MANAGEMENT

Risk and Opportunity Management Plan is a process composed of four essential steps,

identification, qualification, quantification and follow up / monitoring, with the lowing approach:

 Full integration of the Risk Management into the overall Project Management Process.

 Pro-active and early identification, evaluation and management of risks in all phases and

at all levels of the project. Anticipation and management of risks are always preferred to

corrective actions.

 Continuous control & monitoring of the risks and opportunities and detailed associated

reporting.

 Promote communication to facilitate problem-solving

During the risk identification process, specific attention will be given to all “Lesson Learned” by

CONTRACTOR in the execution of past Projects in Saudi Arabia.

An essential feature for the correct application of the method is the assignment of each

identified risk to a nominated individual.

identified. The nominated owner collaborates with the Risk Engineer and Project Managers to

further identify and evaluate risks, to propose and implement appropriate risk mitigation actions.

Each Risk Owner is then responsible for monitoring the progress of his risk in collaboration with

the Risk Engineer.

4.

EXECUTION OF THE WORK

4.1 CONTRACT DOCUMENTS REVIEW

The review of the technical documentation enclosed in the Contract Documents is a key activity

for the successful completion of the project. The main objectives of this activity are:

 Check the documentation to define missing information, data and criteria;

 Review design solutions against contractual design criteria to verify completeness and

consistency;

 Establish a comprehensive documentation for the critical design and field activities that

can be on the critical path for the project implementation, such as field surveys; such

field activities may also include the collection of existing documentation at SAUDI

ARAMCO premises;

 Identify the CONTRACTOR’s corporate applicable engineering and procurement

Projects procedures, complete of document specimen for Client review and approval

prior any massive detailed engineering activity (these specimen will be used as guideline

for the entire project);

 Establish a project Vendor List selecting the most suitable IK and OOK Vendors for

project purposes;

 Set-up to project requirements, if necessary, the internal work procedures and tools such

as, but not limited to, drafting manual, document register, co-ordination procedure, etc.;

 Define technical engineering interfaces and set-up procedures and work plan to be used

for the interface engineering;

 Identify areas where contractual scope of work has to be updated and modified as per

conclusions of activities above; proposed solutions, backed-up with all the necessary

documentation, will be discussed and agreed with COMPANY Representative and used

for detailed engineering activities accordingly.

4.2 DETAILED ENGINEERING AND DESIGN

During the detail engineering, CONTRACTOR activities are tailored towards the issue of the

necessary documentation for procurement of itemized equipment and bulk materials, and,

subsequently, the issue of the construction drawings and documentation to build-up the facilities

in accordance to the contractual specifications, requirements and Company Standards.

The main objectives to be met throughout the completely engineering process in order to fulfil

all the contractual requirements can be summarized as follows:

Engineering for Procurement:

Perform the detailed Engineering in order to issue technical documentation for material

procurement (enquiry, technical evaluation of the bids, purchase orders, etc.) concerning all

items including the critical items.

Engineering for Construction:

Perform the detailed Engineering in order to:

 complete the Procurement activities

 assure the availability of technical documentation and fabrication drawings for the

execution of the Structural, Mechanical, Electrical and Instrumentation and other related

works

 Assure the availability of technical documentation (IFC Drawings, etc.) and materials on

site as planned to support smooth execution of construction.

Engineering during Construction:

Ensure that works are performed according to the Project Documentation and the materials are

in compliance with the technical specifications.

Resolve any problems (if any) caused by modifications during construction and/or

non-conformity/re-work.

Prepare and issue the pre commissioning procedure

Obtain the “Mechanical Completion certificates”.

4.3 DISCIPLINE

ACTIVITIES

The activities, which will be carried out by the various disciplines involved in the execution of the

Project, are summarized here below.

4.3.1.1 Process

Engineering

 Prepare and issue of PFD’s

 Prepare and issue, in collaboration with the other involved disciplines, the P&IDs.

 Prepare and issue the fire protection drawings.

 Cooperate with the other involved disciplines to define and prepare the technical

specifications and data sheets for equipment, packages, instrumentation, electrical and

DCS.

 Complete the HAZOP study as required.

 Prepare and issue the cause and effect diagrams.

 Support the Technical Departments for Bids Technical Evaluation.

 Revise technical documents according to ordered material.

 Issue the preliminary edition of the following documents relevant to the scope of work:

o PRECOMMISSIONING GENERAL SPECIFICATIONS

o PROJECT RECORD BOOKS

 Resolve any NON CONFORMITY during construction.

 Organize and carryout all the activities relevant to the pre-commissioning (Auxiliary

systems only).

 Assure technical assistance during pre-commissioning.

 Issue the “AS BUILT” Documentation.

4.3.1.2 Machinery

and

Packages

 Cooperate with Process Department to finalize the P&ID’s.

 Cooperate with involved Departments to finalize mechanical specifications.

 Define the items and packages specifications.

 Issue data for Classification of Hazardous Locations.

 Issue the Preliminary Electric Load List.

 Issue the Material Purchasing Specifications, General Specifications, etc.

 Define the layout of Machinery and Packages.

 Check and approve the supplier’s Construction Drawings and support Inspection

Department for Workshop tests.

 Revise technical documentation to fully comply with purchased equipment.

 Carry out the Detailed Engineering according to the Vendor’s engineering.

 Provide the Construction Department with quantities, drawings, etc.

 Cooperate to the following documents:

o FIELD QUALITY CONTROL PLAN

o PRECOMMISSIONING GENERAL SPECIFICATIONS

o PROJECT RECORD BOOKS

 Assure the technical assistance during the construction activities.

 Resolve any NON CONFORMITY during construction.

 Assure technical assistance during pre-commissioning.

 Issue the “AS BUILT” Documentation.

4.3.1.3

Piping and mechanical equipment engineering

 Cooperate with Process Department to define the P&ID’s.

 Cooperate with involved Departments to define the mechanical Specifications.

 Issue project piping specifications.

 Issue technical specification for Painting, insulation and anti-corrosive coatings.

 Issue the Plot Plans, prospective views, sections.

 Define the piping system layout.

 Issue data for Classification of Hazardous Locations.

 Perform the Stress Analysis.

 Issue the Material Purchasing Specifications, General Specifications, etc.

 Issue Requisition for Quotation, and Technical Evaluation of material to be purchased.

 Check and approve the Supplier’s Construction Drawings.

 Carry out the Detailed Engineering to fully comply with the purchased materials.

 Define and issue the technical documentation required for construction activity (Piping

Layouts, DWG’s required for piping prefabrication and erection, piping isometric

drawings etc.).

 Provide the Construction Department with quantities, drawings, particular specifications,

etc.”

 Cooperate to the following documents:

o FIELD QUALITY CONTROL PLAN

o PRECOMMISSIONING GENERAL SPECIFICATIONS

o PROJECT RECORD BOOKS

 Assure technical assistance during the Construction activities.

 Resolve any NON CONFORMITY during construction.

 Assure technical assistance during pre-commissioning.

 Issue the “AS BUILT” Documentation.

4.3.1.4 Electrical

Engineering & Cathodic Protection

 Cooperate with involved Departments to define mechanical specifications.

 Finalize and confirm ETAP Studies (Load Flow, Short Circuit current, Grounding

System)

 Define cable runs, protection coordination studies and diagrams, relay protection and

one line diagrams.

 Define in detail the cathodic protection system and the Anode Ground bed Locations.

 Issue the Material Purchasing Specifications, General Specifications, etc.

 Issue Requisition for Quotation, and Technical Evaluation of material to be purchased.

 Check and approve the supplier’s Construction Drawings and support Inspection

Department for Workshop tests.

 Revise technical documentation to fully comply with purchased materials.

 Carry out the Detailed Engineering according to the purchased material.

 Define and issue the technical documentation required for construction activity (Cable

run and road crossing details, lighting systems, cable interconnection diagram).

 Provide the “Construction Department” with quantities, drawings, etc.

 Cooperate to the following documents:

o FIELD QUALITY CONTROL PLAN

o PROJECT RECORD BOOKS

 Assure the technical assistance during the construction activities.

 Resolve any NON CONFORMITY during construction.

 Assure technical assistance during pre-commissioning.

 Issue the “AS-BUILT” Documentation.

4.3.1.5 Instrumentation

and automation engineering

 Cooperate with Process Department to define P&ID’s.

 Cooperate with involved departments to define mechanical specifications.

 Define

cable

runs.

 Issue technical specification and data sheets of instruments.

 Issue data for Classification of Hazardous Locations.

 Issue the Preliminary Electric Load List.

 Issue the Material Purchasing Specifications, General Specifications, etc.

 Issue Requisition for Quotation and Technical Evaluation of material to be purchased.

 Check and approve the supplier’s Construction Drawings and support Inspection

Department for Workshop tests.

 Revise technical documentation to fully comply with purchased materials.

 Carry out the Detailed Engineering according to the purchased material.

 Define and issue the technical documentation required for construction activity (Cable

run and road crossing details, instrumentation and RTUs, cable interconnecting diagram,

instrument primary and secondary connection sketches).

 Provide the Construction Department with quantities, drawings, etc.

 Cooperate to the following documents:

o FIELD QUALITY CONTROL PLAN

o PRECOMMISSIONING GENERAL SPECIFICATIONS

o PROJECT RECORD BOOKS

 Assure the technical assistance during the Construction activities.

 Resolve any NON CONFORMITY during construction.

 Issue the “AS BUILT” Documentation.

4.3.1.6 Structural

Engineering

 Issue all deliverables for the strengthening of structures, as defined in the scope of work.

 Perform design calculations of all the structures.

 Implement the 3D Tekla™ model of the structure and export it into PDS for the purpose

of interface checks.

 Extract from 3D Tekla™ model the 2D General Arrangement drawings.

 Issue the fabrication Drawings and Material Take-Offs.

 Cooperate to the following documents:

o FIELD QUALITY CONTROL PLAN

o PROJECT RECORD BOOKS

 Assure the technical assistance during the Construction activities.

 Resolve any NON CONFORMITY during construction.

 Issue the “AS-BUILT” Documentation.

4.3.2 ONSHORE PIPELINES DESIGN

Detailed engineering, which includes the site surveys activities and the procurement support,

will be executed in accordance with the following general sequence:

The onshore pipeline detailed engineering will be sub-contracted to an ARAMCO approved

GES/Engineering Firm operating in the Kingdom of Saudi Arabia having a valid engineering

licence and with a proven experience in pipeline design (for gas and liquid hydrocarbons

transportation).

Site surveys and Project data collection of the existing facilities will be included in the Sub

Contractor scope of work and constitute the primary and early design activities to be performed:

 Site survey in Abu Ali (for the MV composite cable route and connection)

 Pipeline Topographic Survey (along the proposed route: shore tie-in with offshore

pipeline, pipeline corridor crossing, pipeline route definition for the alignment sheets

preparation, interface with Wasit Gas Plant)

 Geotechnical investigation (scraper facilities area, beach valve station, soil resistivity

measurement for cathodic protection system design)

4.3.3 OFFSHORE

SEALINES

DESIGN

4.3.3.1

Flow Assurance Engineering

The following main activities will be carried-out:

 Preparation of the Flow Assurance Design Basis according to the performed status of

the Preliminary Design (Company provided) and the input data collection.

 Fluid property characterization

 Implementation of Simulation Models for the following transport systems:

o Arabiyah

Production

System:

pipelines

gathering network from Arabiyah WHPs

to the onshore arrival at WGP via Arabiyah TP;

o Hasbah Production System: pipelines gathering network from Hasbah WHPs to

the onshore arrival at WGP via Hasbah TP;

o MEG Injection System from WGP to Arabiyah and Hasbah TPs via the IIP;

o Elemental Sulfur Solvent Injection System from WGP to Hasbah WHPs via the

IIP and the Hasbah TP.

 The following battery limits will be considered for the flow assurance analysis:

o The simulation models for both Arabiyah and Hasbah pipelines gathering

networks will be implemented for the overall transport system including the infield

flowlines and the export trunkline, from the X-Mas Tree onboard each satellite

well head platform up to the delivery point at the onshore receiving trap

(upstream the onshore treatment plant);

o The simulation model for MEG Injection System will be implemented from the

onshore launching trap (downstream the onshore MEG regeneration plant) up to

the injection points along Arabiyah and Hasbah trunklines (i.e. at the onshore

beach valve stations, at the trunklines subsea tie-in and onboard each TP);

o The simulation model for Elemental Sulfur Solvent Injection System will be

implemented from the onshore launching trap (downstream the onshore plant) up

to the injection points at Hasbah WHPs (at well-heads, upstream the choke

valves).

 Performance of the following simulations for both Arabiyah and Hasbah Production

Systems:

o Steady state transport simulations.

o Transient

simulations.

 Development of the Hydrate Management Strategy for both Arabiyah and Hasbah

Production Systems.

 Performance of the following simulations for MEG Injection System:

o Steady state simulations to verify the MEG system capability to transport the

MEG design flowrate.

o Transient simulations for identification of high pressure transients.

 Performance of the following simulations for Elemental Sulfur Solvent System:

o Steady state simulations to verify the Elemental Sulfur Solvent system capability

to transport the design flowrate.

o Transient simulations for identification of high pressure transients.

 Preparation of process input data (P, T, density, velocity profiles, etc.) for interfacing with

other disciplines such as pipeline mechanical and corrosion design, material selection

and receiving process (e.g. flow rate and temperature at the onshore plant) and for any

other external interfaces to the Contractor Scope of Work.

 Preparation of the following deliverables covering used input data, methodology, results

and recommendations for each performed activity:

o Steady State Thermo-Hydraulic Analysis for Arabiyah Production System;

o Transient Analysis for Arabiyah Production System;

o Steady State Thermo-Hydraulic Analysis for Hasbah Production System;

o Transient Analysis for Hasbah Production System;

o Hydrate Prevention Strategy for Arabiyah and Hasbah Production Systems;

o Steady State Thermo-Hydraulic Analysis for MEG and for Elemental Sulfur

Solvent Injection Systems;

o Transient Thermo-Hydraulic Analysis for MEG and for Elemental Sulfur Solvent

Injection Systems.

4.3.3.2

Subsea Rigid Pipelines Detailed Design

The detailed design engineering of rigid pipelines will include the following main activities:

 Preparation of the Offshore pipelines design basis, including all the main data required

for the different engineering activities and the relevant criteria

 Pipelines routing; verifying the compliance of the surveyed corridors to any given

constraint/crossings, adjusting and optimizing the routes taking into consideration all

surveys data

 Pipelines wall thickness analysis;

 Pipelines on-bottom stability analysis;

 In-service buckling analysis

 Walking

assessment;

 Spool/riser

design;

 Pipelines free-span analysis;

 On-bottom roughness analysis and intervention works definition;

 Intervention works design;

 Crossing design;

 Shore approaches and shore crossing design;

 Preparation of Issue for Construction drawings (alignment sheets, platform approach,

spool and riser layouts etc.)

4.3.3.3

Offshore Pipeline Cathodic Protection Design

The cathodic protection design will include the following main activities:

 Preparation of the cathodic protection philosophy for offshore pipelines; identifying all the

main data and criteria, design methodology and interface with other cathodic protection

systems

 Preparation of the cathodic protection design report

 Development of the anodes specification and drawings

 Preparation of the material requisition and material take off for anodes

 Preparation of the anode installation specification and drawings

 Technical evaluation and follow on of the suppliers

4.3.3.4

Subsea Flexible Pipelines and Subsea Structures Detailed Design

The subsea flexible pipelines and subsea structures design will include the following main

activities:

 Definition of the MEG injection valve skid configuration

 Valve skid detailed design

 Valve protection cover design

 Alignment frames design

 Preparation of the specifications for order (technical specification, scope of work, MTO

and data sheets);

 Technical evaluation and follow-on of the selected Vendor engineering, manufacturing,

testing and delivery activities of the required subsea items;

 Assist the fabrication contractor during fabrication and test of the structures and the

relevant piping;

4.3.3.5

Materials Engineering

The material engineering will include the following main activities:

 Review of the Company specifications for carbon steel and clad linepipe, bends and

flanges and identification of additional requirements

 Preparation of the Material requisition for linepipes, bends and flanges

 Development of the negotiations with the vendors and Technical bid evaluations

 Follow on of the suppliers

4.3.3.6

Pipelines Coating Engineering

The pipeline coatings engineering will include the following main activities:

 Preparation of the requirements for internal coating laboratory testing

 Review of the Company specifications for pipeline internal and external coatings and

identification of additional requirements

 Development of additional coating specification as required

 Preparation of the Material requisition for internal, external, concrete coating for

linepipes, bends and flanges

 Development of the technical negotiations with the vendors and Technical bid

evaluations

 Follow on of the suppliers

The corrosion engineering will include the following main activities:

 Preparation of the requirements for corrosion inhibitor compatibility tests

 Review and development of corrosion management philosophy

 Preparation of material selection report

4.3.4 SUBMARINE COMPOSITE CABLES & SUBSEA UMBILICALS ENGINEERING

The submarine composite cables and umbilicals engineering will be carried out by the

CONTRACTOR in close liaison with the COMPANY to finalise the design and will include the

following main activities:

 Preparation of the Submarine Composite Cables & Umbilicals Material Requisition

package including:

o Definition of the Scope of Supply,

o Definition of design, manufacturing and testing requirements functional lines and

structures,

o Definition of the documentation and certification to be produced by the Suppliers

o Definition of submarine composite cables and umbilicals load out, transportation

and installation requirements

 Submarine Composite Cables and Umbilicals Bid Technical Evaluations and preparation

of the BTE reports to the COMPANY

 Review and updating of the Design Basis relevant to the submarine composite cables

and umbilical system including:

o The basic design data

o The design criteria

Starting point for the development of the design criteria will be the documentation

developed during FEED, including any follow-up from the endorsement phase.

To ensure that the design of the submarine composite cable and umbilical

systems meet the specified requirements, the basic engineering design data

relevant to the submarine composite cables and umbilicals present in the ITT

documents will be verified and updated as necessary with the data collected from

Pre-Engineering survey on existing facilities.

All data used in the submarine composite cables and umbilicals design including

the environmental, meteocean, seabed soil data will be provided with references

to their sources and will be part of the revised Design Basis produced in

agreement with the COMPANY and kept updated throughout the development of

the project.

As part of this activity, the design criteria, functional and technical requirements

for the submarine composite cables and umbilicals, the ancillary equipment

(J-tube pull in head, hang off assembly, bend restrictors and J-(J-tube centralisers) and

for the topside termination enclosures (topside electrical splice cases and

on-shore splitter box, fibre optic junction boxes, topside umbilical termination unit for

sulphur solvent injection) will be developed for use in the Detail Design.

Starting point for the development of the design criteria will be the corresponding

ITT documentation, including any follow-up from the endorsement phase.

As far as concern the submarine composite cables, the subsea umbilicals and the

related ancillary equipment design, manufacturing, testing installation and

pre-commissioning, the Saudi Aramco material specifications and international

standards will be considered as the primary design codes

 Detail design including:

o Review and assessment of the power cores sizing and fiber optic budget.

o Review and assessment of the sulphur solvent injection lines sizing.

o Review and assessment of the submarine composite cables and subsea

umbilicals design and project documentation performed and generated by the

relevant Suppliers.

o Review and assessment of the submarine composite cables and umbilicals

routing report

o Assessment of seabed stability and allowable span for the submarine composite

cables and umbilicals.

o Review and assessment of the submarine composite cables and umbilicals

onshore and platforms approaches.

o Interfaces and installability assessment of the submarine composite cable and

umbilical systems equipment

o Definition of all technical and functional interfaces

o Definition of the submarine cables and umbilicals mechanical completion

(pre-commissioning) requirements and all necessary equipment, tools consumables

and personnel.

 Follow-up of the selected Suppliers detail design, fabrication, testing, offshore services

and documentation supply activities.

4.3.5 ENGINEERING

INTERFACES

Overview

The effective control of Interfaces is considered to be one of the key issues to ensure the

successful execution of the Project. Accordingly, CONTRACTOR organization includes senior

personnel to ensure that both Internal and External Interfaces are closely monitored and well

managed.

External Interfaces

External Interfaces are under the responsibility of the Interface Manager.

Internal Interfaces

Internal Interfaces are under the responsibility of the respective Project Managers.

Key Interface Points

Management and resolution of External and Internal Interface requires good co-ordination and

communication between the concerned parties.

For this reason, the interfaces will be discussed during internal co-ordination meetings and

specific meetings as necessary. To manage internal interfaces, CONTRACTOR will develop, at

the beginning of the project, interface matrix between engineering centers, engineering

disciplines and between engineering center and construction sites .

The External Interfaces Register will be maintained and continuously updated as the work

progresses. The Register will be reviewed during the Interface meetings organised on a regular

basis and it will be updated and issued to COMPANY

CONTRACTOR will issue the Plan for Interfaces Coordination defining the plans and

procedures to be followed for the management and control of the External interfaces.

4.3.6 CONSTRUCTABILITY

CONTRACTOR will develop a Constructability Program to optimize engineering, detail design,

engineering planning, procurement and safety objectives.

The constructability objectives are to ensure safety, to take an active part in environmental

concerns, to enhance quality (reliability, operability and maintainability), and to optimize overall

schedule and costs by utilizing construction knowledge and experience in planning, design,

procurement, and field operations.

The activities are applied to all personnel involved in the Project with the intent that all

engineering, procurement, and construction activities and all disciplines responsible for

executing these activities will incorporate constructability to achieve overall project objectives.

No constructability suggestion should be implemented if it increases total project cost or extends

the schedule. Suggestions should only be considered that result in lower overall cost or

shortened schedule. A suggestion could result in an increase in engineering hours but yields

construction savings that more than offset the increase in engineering.

CONTRACTOR will ensures that the construction experiences and previous project lesson learn

shall be taken into consideration in every stage of the project – management, engineering,

procurement and construction – in order to achieve the project goals.

Key activities:

 Organize spew-out and brainstorming sessions to identify the most critical

construction issues – the ones that strongly affect overall time, cost and quality;

 Build an action plan to turn the critical issues into opportunities;

 Organize follow-up sessions to update the action-plan;

 Organize Sequencing meetings to identify the best construction sequence using

visual aids;

 Update the Constructability guidelines according to the methodology evolution.

4.3.7 PRELIMINARY DESIGN VERIFICATION

CONTRACTOR will perform the verification of the COMPANY provided Preliminary Design as

per Contract requirement Schedule H section 1.4.

During the 120 days Verification Period, CONTRACTOR will review and evaluate the

Contractual COMPANY provided Preliminary Design to verify for any conflict with drawing,

specifications and applicable Standards. Any conflict will be notified to COMPANY and a report

will be issued within 120 days from Contract effective date.

Depending on the extent of the findings and their impacts, the Verification Period shall be

extended, as agreed with COMPANY, to complete the review in order to allow the detailed

design, engineering development in accordance with the FACILITIES performance

specifications.

4.3.8 ENGINEERING ORGANIZATION MATRIX

The CONTRACTOR organisation for the performance of the overall engineering Scope of Work

will be as per Attachment 1 to this WEPP Engineering Organization Matrix.

4.4 PROJECT

CONTROLS

The Project Control Manager, as part of CONTRACTOR Project Management Team, shall be

responsible for all project control activities.

For planning and scheduling, PRIMAVERA software (P 6) will be used.

The activity will be carried out as described in relevant Project Control Procedures to suit the

Scope of Work foreseen for both the Contracts 6600026283 (OOK) and 6600026284 (IK).

 00-ZA-E-09800 Work Breakdown Structure

 00-ZA-E-09801 Planning and Scheduling

 00-ZA-E-09803 Progress Measurement

 00-ZA-E-09804

Project

Reporting

4.4.1 OVERVIEW

The Planning and Control are cross processes involving all the various stages (Design,

Procurement, Fabrication, Transportation, Installation and Pre-Commissioning) of the Project.

The aim is to assure the best support to the Project Management, by the use of professional

techniques and procedures, and by the latest computer technology and software, for monitoring,

analysing, and taking, if necessary, the right corrective actions, in order to reach all the

Contractual objectives.

The purpose of the Reporting is to inform the CONTRACTOR Project Management Team and

COMPANY PMT on the status of the Project, on the scored Progress, to describe the activities

in progress and forecasted, highlighting the problems and the areas of concern.

CONTRACTOR will develop the Project Control Procedures and contained tools (Software and

Reporting) for monitoring of the Project. Once approved by the COMPANY, they will be

regularly updated and issued to COMPANY in compliance with established cut-off dates

(Project Reporting Procedure), across the whole Project life.

4.4.2 WORK

BREAKDOWN

STRUCTURE

The definition of the WBS (Work Breakdown Structure) of the Project is the first step of the

Project Control System setup. The WBS is a hierarchical structure splitting up the Project, which

allows the monitoring of the scope of work at the synthesis/detail rate required by the various

involved parties. One of the key activities of the WBS development process is the weighting of

the breaking down elements in accordance to the Contractual Pricing Breakdown.

In order to suite CONTRACTOR Organization and Scope of Work pertinence, the WBS will be

developed and implemented with the purpose of guarantee the appropriate overall consolidation

and also to ensure the development of the Overall Schedule.

The WBS will be developed as follows:

 1st Level – Phases (Design, Procurement, Fabrication, Mobilization, Installation and

Pre-Commissioning)

 2nd Level – Onshore and Offshore Facilities (i.e ARBI-4 Wellhead Deck , 12” Gas

Flowline ARBI-9, etc)

 3rd Level – Disciplines for the Offshore Structures (i.e Electrical, Instrumentation, etc)

and Components for Pipelines (i.e. Cables, Flowlines, CRA Cladded Pipes, etc)

4.4.3 PLANNING

AND

SCHEDULING

Development of the Schedule is the step following the definition of the WBS.

At this stage, the CONTRACTOR Lead Planning Engineer acting as coordinator of various

Planning Engineers working for each of the 5 Main Work Packages, by interfacing with the

Project Managers, Engineering, Procurement, Onshore Fabricator, Operations and

Pre-Commissioning department/expertises identifies activities and develops the schedule for

activities to be directly performed by CONTRACTOR at various levels, by following a pyramidal

top-down logic consistent with the WBS. For activities to be subcontracted, after having

identified the span period for execution of the Subcontracts, a detailed schedule is required from

potential subcontractor and verified for consistency with the Overall Schedule

Level 1: Project Milestones and Key Dates

Contractual Milestones and Key Dates. Summary of one Page

Level 2: Project Summary Schedule by Phases and Sub-Phases.

Contractual Milestones and Key Dates. Start and completion dates by Phases (Engineering,

Procurement, Onshore Fabrication, Transportation and Installation, Hydro-testing &

Pre-Commissioning) and sub-phases: Discipline/ Equipment for Engineering and Procurement;

Work Disciplines and Structures such as Jackets, Topsides, Pipelines, Cables, Facilities and

whatever other Structures foreseen in the Scope of Work for Fabrication; Work

Areas/Structures, Pre/Post Surveys Spreads, Shore Approaches Spread, Offshore Operations,

Transportation Spreads, Diving Support Spread, Modifications Support, Cable Spread vessel

and whatever other Spread foreseen for Transportation and Installation and

Hydro-testing/Pre-commissioning. Summary of 10-15 Pages.

Level 3: Critical Path Method (CPM) Detailed Work Schedule

At this level, activities are sized to allow estimation of duration and identification of logical links

and sequences. In addition, resources/manhours requirement shall be evaluated at this level.

Level 4: Detailed Deliverables Schedule

List of Document for Engineering (Master Document Register); List of Material to be procured by

discipline/Type of material for Procurement (Procurement Status Report / Material Status

Report). Discipline Pre-Fabrication steps for Onshore Fabrication (Fabrication Production

Control).

The level four Detailed Deliverables will be grouped to be compatible with level three. These

lists will be managed using Spreadsheets/databases formats. WBS for Schedule development

will be included in “Project Planning & Scheduling” Procedure.

Estimation of time, allocation to approximated period, responsible for execution of the activities,

the contractual Milestones and the Contractors/SAIPEM Key dates (ex: Barges availability, etc)

are some of the key elements to be considered.

During level four development process, network analyses and optimisation of resources are

carried out by SAIPEM Planning Engineer until a satisfactory result is attained.

Once completed the development, SAIPEM will submit the whole Planning package to

COMPANY. Upon approval the Planning package, composed by Project Schedules, Progress

“S” Curves and Histogram will be frozen to become the baseline for monitoring of the

performance.

4.4.4 PROGRESS

MEASUREMENT

A Progress Monitoring System is set up based on the WBS that has been developed in

consistence with the Contract Pricing Breakdown, at the required level of detail.

The methodology, structure, logic, steps of progress linked to specific events and samples

adopted to develop the System to measure the progress for each Work Package and entity in

accordance to the WBS, will be produced within the “Progress Measurement System”

Procedure and submitted to COMPANY for approval.

The followings Level 4 specific Tools for Progress Measurement will be used:

 ‘Master Document Register’ for Design Deliverables and Installation Engineering

progress calculation, managed by Database EIM (Engineering Integrated Management)

 ‘Material Status Report’ for Post Order Activities for Procurement progress calculation,

 ‘Fabrication Production Control’ for Onshore Fabrication progress calculation, managed

by Database FAB&MAN

These above-mentioned are univocally linked to the network activities and constitute the

database for updating programs and calculating the progress with a bottom-up approach at

various level of the WBS

.

4.4.5 PROJECT

REPORTING

The system for Progress Reporting will be described through the Procedure “Project Reporting”

and submitted to COMPANY for approval. It will contain proposed Calendar of Cut-Off dates

and formats for Weekly and Monthly Reports to be also approved by COMPANY. It will be

regularly issued by the Project Manager across the whole Project life, in respect of the above

Progress Reporting Calendar. These Reports, whose indexes are approved by the COMPANY,

will contain the Schedules, Curves, Histograms, etc. updated at the established cut-off dates,

together with other narrative and reporting parts, highlights, area of concerns, analyses, and

any specific information that will be agreed through the Project Procedures between SAIPEM

and the COMPANY

CONTRACTOR will prepared and distributed an internal Flow Chart for the purpose of

coordinate the operative sites (FANO/Pipeline & Cable Design, DAMMAM/Onshore Engineering

& Construction and the Fabrication Sites) in the process of consolidating the

Information/Narrative, Graphs (Barcharts/Histograms/Progress Curves),

Consolidated reporting is reviewed within the Weekly Internal coordination meeting on Monday

and approved by the Project Director

Progress “S” Curves

Resources, quantities and weight points are associated to each baseline activity. Weighting of

level 3 an 4 activities will be described in the “Progress Measurement” Procedure and is done

on the basis of contract values, budgeted costs, man-hours or Quantities (steps of progress

linked to specific events), the Baseline Progress ‘S’ Curves are drawn at the contractual

required level of detail.

The Curves are then frozen and represent the reference for the following scored Progress

Values

Resource Histograms

Resource Histograms, Baseline and Actual are produced by discipline in accordance to

COMPANY requested level of detail for Engineering and Onshore Fabrication Phases

4.5 PROCUREMENT

The Project Procurement Manager, as part of CONTRACTOR Project Management Team, will

be responsible for all procurement activities for the Project including:

 The timely delivery of the equipment and materials, fully in compliance with project

designs, specifications, quality requirements, and at the construction site fully protected

and properly documented to fully support the construction schedule.

 The timely delivery of all Vendor Documentation to allow detailed engineering to proceed

in accordance with the project schedule.

CONTRACTOR will develop Project Procurement Plan describing applicable procurement flow

and procedures.

The Procurement Team will take advantages of the worldwide procurement network that

Saipem have since long time established.

The CONTRACTOR’s general strategy for purchasing will be to competitively bid.

For several Project commodities such as Steel Structures, Piping and Electrical Material, if

proved competitive, it is CONTRACTOR standard Purchasing policy to procure materials on the

basis of what are called Master Agreements or Project Agreements, i.e. pre negotiated price

lists which will allow CONTRACTOR to place actual Purchase Orders without having to pass

through the usual path foreseeing Inquiry/Bidding/Evaluation of Vendors bids.

CONTRACTOR may decide to proceed with single source negotiation. Single source

negotiations and Master/Project Agreements application or will be always carried out in the

respect of contractual requirements such as application of the Regulated Vendor List and Saudi

Manufacturers Participation requirement.

Single source negotiation will be managed on “case by case” basis.

CONTRACTOR will expedite each purchase order in order to control the scheduled, forecast

and actual date. The Project Material Coordinator (PMC) is responsible for checking and

monitoring Expediting and Shipping Departments or Agency performance and inspection.

CONTRACTOR will appoint expediters responsible for the following activities:

 carry out the first expediting action in respect of Vendor in order to ascertain that the

order has been received and taken over;

 summon and attend the kick-off meetings

 request from vendors a detailed construction schedule, check it and when needed

request the necessary changes;

 request from vendors of main equipment an up-to date and detailed Monthly Status

Report and progress for each activities (design, procurement, materials manufacturing

and test).

 issue on periodic basis the A.S.O (Actual Status of the Purchase Order) to inform the

Project Management about the status of the PO

 ascertain that materials are available for shipment and all requested contractual

documents are received. Receive shipping documents and check them for

completeness;

CONTRACTOR PMC will closely monitor expediting reports and will provide instruction in order

to recover or mitigate any delay.

The Quality Procurement Manager will be responsible to organise inspections according to

approved QA/QC plans and contractual obligations.

4.6 CONSTRUCTION

MANAGEMENT

The overall fabrication scope of work for platforms and sealine items will be split among the

three CONTRACTOR fabrication Yards as follows:

FACILITIES DESCRIPTION SAIPEM KARIMUN Indonesia STAR KSA SNAMPROGETTI Fab Yard KSA NOTES ARBI 4 – 5 – 6 – 7 – 8 – 9

WELL HEAD DECKS X X(note)

Some prefabrication will be executed in SnamProgetti Yard ARBI-TP-1 TIE-IN PLATFORM: TOPSIDE X ARBI-TP-1 TIE-IN PLATFORM: JACKET AND PILES

X X(note)

Part of JKT (Boat landing, etc) will be fabricated at SnamProgetti Yard ARBI TP-2 INTERMEDIATE

INJECTION PLATFORM: TOPSIDE

X X(note)

Some prefabrication will be executed in SnamProgetti Yard ARBI TP-2 INTERMEDIATE INJECTION PLATFORM: JACKET X X(note)

Part of JKT (Boat landing, etc) will be fabricated at SnamProgetti Yard ARBI BRIDGE SUPPORT

JACKETS X X(note)

Some prefabrication will be executed in SnamProgetti Yard

ARBI FLARE

X X Will be decided based on

the Yards work-load ARBI BRIDGES

X X Will be decided based on