KẾ HOẠCH THỰC HIỆN dự án overall project execution plan

The objective of this document is to provide an overall view of how the Contractor shall plan, execute and manage the Project to get it completed efficiently, timely and economically with the highest quality and in accordance to the requirements of the Company. The Attachments to this document are issued for reference or information only and revisions to them shall be issued as individual documents on an asrequired basis, but it is not the intent to reissue this PEP to incorporate any of the abovementioned revisions. In addition to this document, Contractor shall issue individual execution plans and procedures for key phases of the project, these documents shall include but not be limited to the following:  Engineering Execution Plan  Procurement Plan  Fabrication  Onshore Precommissioning  Loadout and seafastening

REVISION RECORD SHEET

No Rev No Content of revision Date of Revision

1 A Issued for Qualification 07 Nov 2014

TABLE OF CONTENT

1.1 PROJECT DESCRIPTIONS 5

1.2 BRIEF SCOPE OF WORK 6

1.3 OBJECTIVE OF THIS DOCUMENT 6

1.4 DEFINITIONS/ ABBREVIATIONS 7

1.5 REFERENCE DOCUMENTS 8

2 PROJECT SCHEDULE 8 3 PROJECT MANAGEMENT 12 3.1 OVERALL PROJECT MANAGEMENT 12

3.2 DETAIL ENGINEERING MANAGEMENT 14

3.2.1 ENGINEERING ACTIVITIES 17

3.2.2 PROJECT ENGINEERING 17

3.2.3 PROCESS ENGINEERING 17

3.2.4 STRUCTURAL ENGINEERING 18

3.2.5 PIPING ENGINEERING 18

3.2.6 MECHANICAL ENGINEERING 19

3.2.7 ELECTRICAL ENGINEERING 19

3.2.8 INSTRUMENT ENGINEERING 20

3.2.9 SAFETY ENGINEERING 20

3.2.10 INTERFACE AND COMMUNICATION 20

3.3 CONSTRUCTION ENGINEERING MANAGEMENT 21

3.4 PROCUREMENT MANAGEMENT 22

3.4.1 PROCUREMENT PLAN 22

3.4.2 PROCUREMENT SYSTEM 23

VENDORS LIST/ SUPPLY CHAIN MANAGEMENT: 23

PROCEDURES: 23

SUPPLIER SELECTION METHODOLOGY: 23

EXPEDITING AND TRACKING: 24

INSPECTION AND TESTING: 24

LOGISTIC AND INTERFACE/MANAGEMENT OF FREIGHT FORWARDER(S): 25

3.5 FABRICATION/CONSTRUCTION MANAGEMENT 28

3.6 ONSHORE TESTING AND PRE-COMMISSIONING 39

3.7 LOAD-OUT AND SEAFASTENING 40

3.8 TRANSPORTATION 41

3.9 QUALITY MANAGEMENT (QAQC) 41

3.10 HSE MANAGEMENT 45

1 INTRODUCTION

1.1 Project Descriptions

The COMPANY, formed by Eni Ghana E&P Limited, Vitol Upstream Ghana Limited and Ghana National Petroleum Corporation (GNPC), is undertaking Ghana OCTP Development Project, FPSO The OCTP (Offshore Cape Three Points) block is located in the Offshore Ghana in 600-900 meters of water depth and about 60 km from the coast Facilities within FPSO Contract Package include the installation of a FPSO conversion unit and tie-in to facilities belong to other project packages (P1, P3, P4) via pipeline and submarine cable system

PTSC M&C Co Ltd received the ITB for Supply of Topside Process Modules (M04, M05, M10, M12 and M13) for the project (hereinafter referred to as the "EQUIPMENTS" and “SERVICE”) The design basis for the Modules was conducted by Eni S.p.A Exploration & Production Division and Global Process Systems Pte Ltd

The Modules comprise the following key components/sub-packages:

- MEG Regeneration Package

- Produced Water Treatment Unit

- Sand Separation and Cleaning Package

- Seawater Treatment Unit

- Cooling Medium System

- Displacement/Centrifugal Pumps

- PIG Launchers & Receivers

- Manual valves, Barred Tee, 3D Bends

- Instrument valves (SDV, BDV, Choke valves, PSV, MOV)

- Field instruments (transmitters, gauges, etc.)

- Spare parts, lifting gears (if any), etc

This Procedure demonstrates a general plan for engineering, procurement, fabrication and execution of the EQUIPMENTS and SERVICE and shall be read in conjunction with other Project Procedures and Specifications

1.2 Brief Scope of Work

The Scope of Work to be performed by Contractor under this Contract is Detail Engineering, Procurement, Construction/ Fabrication, Onshore testing/ pre-commissioning, Load-out & Seafastening and Transportation of these modules to Singapore nominated port (EPC) of 05 FPSO Process Modules M04, M05, M10, M12 and M13,

Details Scope of Works are in accordance to Company’s latest ITB (Instruction to Bid) and up to date Company’s provided documents

1.3 Objective of this Document

The objective of this document is to provide an overall view of how the Contractor shall plan, execute and manage the Project to get it completed efficiently, timely and economically with the highest quality and in accordance to the requirements of the Company

The Attachments to this document are issued for reference or information only and revisions to them shall be issued as individual documents on an as-required basis, but it is not the intent to re-issue this PEP to incorporate any of the above-mentioned revisions

In addition to this document, Contractor shall issue individual execution plans and procedures for key phases of the project, these documents shall include but not be limited to the following:

 Engineering Execution Plan

 Procurement Plan

 Fabrication

 Onshore Pre-commissioning

 Load-out and seafastening

Such individual execution plan shall be issued in sufficient time to allow review and approval by Company prior to commencement of the particular work component

1.4 Definitions/ Abbreviations

Following definitions/abbreviations will be referred to in this document:

Project EPC FOR FPSO PROCESS MODULES

Company Yinson Production PTe/FPSO Owner/Operator

Client ENI Ghana or its Affiliates

Contractor PTSC M&C

PTSC M&C PTSC Mechanical and Construction Co Ltd

FEED Front-End Engineering Design

DE Detailed Engineering

EPC Engineering, Procurement, Construction

PEP Project Execution Plan

TBA To be Advised

PMT Project Management Team

QA.QC Quality Assurance/Quality Control

MTO Material Take Off

TR Technical Requisition

RFQ Request for Quotation

TBC Technical Bid Clarification

TBE Technical Bid Evaluation

CBC Commercial Bid Clarification

CBE Commercial Bid Evaluation

LLI Long Lead Item

AR Award Recommendation

MR Material Requisition

PO Purchase Order

OS&D Overage, Shortage and Damage

LTI Lost Time Injury

ISO International Organization for Standardization

OHSAS Occupational Health and Safety Management

System HSE Healthy, Safety, Environment

MDR Master Document Register

MWS Marine Warranty Surveyor

KPI Key Performance Indicator

PMT Project Management Team

FPSO Floating Production Storage and Offloading

NDT/NDE Non-destructive Testing/Examination

CTR Cost and Time Resources

1.5 Reference documents

The following, documents have been referenced when compiling this PEP document:

 ISO 9001-2008 Quality Management System Requirements

 ISO 14001-2004 Environmental Management System

 OHSAS 18001-1999 Occupational Health and Safety Management System

 Environment Quality Act and Regulations

2 PROJECT SCHEDULE

Some proposed preliminary key milestones of the Project are as follows

KEY MILESTONES

1 Project Team Mobilization Completed 01 Nov 14

2 Start Engineering 10 Nov 14

3 Start Construction 02 May 15

4 Mechanical Completion (MCD) for Modules M04, M05 06 Dec 15

5 Loadout and Sea-fastening Modules M04, M05 Completed 10 Dec 15

6 Mechanical Completion (MCD) for Module M10, M12,

7 Loadout and Sea-fastening Module M10, M12, M13

8 Deliver M04, M05 to Singapore at nominated port 14 days after ID 4

9 Deliver M10, M12, M13 to Singapore at nominated port 14 days after ID 6

Note: The above key milestones will be updated as per the approved project schedule

Because of the scale of the Project, the Project Engineer will mainly work with Level 3 and Level

4 of planning, i.e Contract Control Schedule and Contract Detailed Schedule Level 3 defines critical path activities on day to day basis while Level 4 includes and identifies all deliverable elements, e.g CTRs, drawings/documents, each piece of equipment, each spool, etc

To start with Project Planning, the work activities shall be developed following a Work Breakdown Structure (WBS) with three levels:

For the WBS Level 3 – Activities/Sub-Activities, work activities within each discipline shall be

identified according to Level 3 of Planning, such as activities required to execute the work can be monitored on daily basis Then, the Level 3 schedule shall clearly identify all the detailed activities along with all the milestones given in the Contract Activities concerned to project management, supervision, planning administration and quality assurance shall be shown as separate “hammock” activities without specified duration Each activity in the network shall be attached with the following information:

- Activity number

- Activity description

- Planned activity duration excluding holidays

- Early/Late Start & Finish dates

Phase ID Description Assigned Weightage

Progress for Engineering and Technical deliverables is counted basing upon typical milestones as follows:

Milestone ID Description Earned Progress

02 Inter-Discipline Check (IDC) 40%

03 Issued for Review 30%

04 Approved for Construction/Approved

for Bid/Approved for Purchase

20%

Earned progress for Procurement activities is counted basing upon typical milestones as follows:

Milestone ID Description Progress

Milestone ID Description Progress

01 Received vendor data 15%

02 Returned comments on vendor data 25%

03 Received amended vendor data 30%

04 Received final vendor document 30%

Progress for production activities is calculated as follows:

Progress Reporting

Progress reporting includes Fortnightly & Monthly Progress Reports:

All Progress Report will include the following:

- Total man-hours/cost achieved

- Achievement for the past week(s)

- Percentage completion (plan vs actual)

- Catch-up plan (when required)

- Work schedule (Plan vs Actual) i.e bar chart

- Areas of Concern

- Action plan for the next coming week(s)

Fortnightly Progress Reports will be issued every 1st and 15th day of the month, based on a week basis Cut-off is based on COB of Friday for that two-week period

two-Monthly Reports will be issued every 3rd day of the month, based on the last 31th or 30th day of the month cut-off For the week where the Monthly Report is issued, the respective Fortnightly Report for the previous two week period will not be prepared

3 PROJECT MANAGEMENT

3.1 OVERALL PROJECT MANAGEMENT

PTSC M&C will be responsible for the overall management of the project including development and implementation of overall project procedures, project plans and systems

The project shall be managed and directed by Project Director, he shall be the project representative from PTSC M&C as prime contact point with Company, Company’s other Contractor and with Sub-Contractors to manage all aspects of the project work scope Directly under his command is Project Manager who will be responsible for each aspect of the project such as: Engineering, Procurement, Construction, HSE and Quality Management

The Project Manager will be assisted by his nominated deputy managers, and other functional departments such as engineering, procurement, fabrication, pre-commissioning, quality and safety Each functional department will be responsible for the work within its scope to ensure the project will run smoothly and efficiently

For the purpose of overall management of the project, the following procedures will be developed:

Doc No Document name

To be advised Overall Project Execution Plan

To be advised Overall Project Schedule

To be advised Progress Reporting Procedure

To be advised Weight Reporting Procedure

To be advised Project Planning, Scheduling Procedure

To be advised Load-out Planning

To be advised Contract Administration & Change Control

Procedure

To be advised Project Control Procedure

To be advised Cost Control Procedure

To be advised Accounting Procedure (Invoicing

Procedure)

To be advised Contract Coordination Procedure

To be advised Interface Register

To be advised Data Exchange procedures

To be advised Project Progress Measurement Procedure

To be advised Quantities Re-Measurement Procedure

To be advised PTSC M&C Project Procedure Register

Office facilities

PTSC M&C is responsible to supply the office facilities for PTSC M&C and Company personnel

at the PTSC M&C yard in Vung Tau

At the fabrication yard, the office for the project will be set up based on the requirements of the Company in order to provide a good working environment for the project personnel of Company and PTSC M&C

All project team office includes client team, engineering team and construction team shall be located in close vicinity in order to communicate and exchange directly during execution of the work

Additionally, PTSC M&C will provide temporary offices for onshore completions, commissioning, and vendor personnel as necessary

pre-PTSC M&C Project Personnel:

PTSC M&C is responsible to supply all the necessary manpower resources for execution of the works under PTSC M&C scope (excluding the manpower for the subcontracting works that will

be provided by the subcontractors) The manpower includes the direct and indirect manpower The quantity of indirect manpower is provided in the Project Personnel Mobilization Plan with the detail of mobilization dates All the personnel that present in the Project Personnel list will work dedicatedly for Project unless otherwise noticed by PTSC M&C

A list of PTSC M&C Project Key Personnel and their CVs will be submitted to Company for approval

3.2 DETAIL ENGINEERING MANAGEMENT

PTSC M&C shall perform Engineering, Procurement, Construction and Testing the EQUIPMENTS in-house in accordance with Project specification and Company requirements For Licenser packages (i.e MEG Regeneration, Produced water treatment package), an Engineering Licenser Sub-contractor (i.e NGLTech) shall be engaged for supporting the following activities:

-Detailed Design deliverables

-Key vendor data

-FAT procedure

-Commissioning procedure

 To provide Technical/Field Engineering assistance on:

Prepare Master Document Register Design Discipline

Contract Document / Client

Start

Identify/Review Design Input Design Changes

Perform Design

Prepare/Revise Design Deliverable

Review by Lead Engineer / Draftsman

Issue Design Deliverable for Client Approval

Issue Final Design Deliverable to Client & Third Party, if required

No

Design control, review, verification and validation activities within the engineering discipline to ensure that specific design requirements are met shall be in accordance with PTSC ISO 9001:2008 compliant Quality Management System procedure – Design and Development Procedure

Drawing review and control shall be in accordance with the PTSC ISO 9001:2008 compliant Quality Management System procedure – Engineering Drawings Review and Control Procedure

3.2.1 Engineering Activities

Upon contract award for EQUIPMENTS and SERVICE, detailed engineering for this project will

be executed along the following main outlined tasks:

3.2.2 Project Engineering

The responsibilities of the project engineering group are to:

- Project milestone schedule maintenance

- Monitor, control and reporting of manhours and progress

- Scheduling of engineering deliverables

- Day-to-day engineering activities

- Engineering review meetings

- Resource allocation

- Change control

- Monitoring of progress

- Identification and resolution of problem areas

The Project Engineering Manager/Package Coordinator will participate in the Project Review meetings which will be attended by key members of the project teams from both COMPANY and PTSC M&C

3.2.3 Process Engineering

Process work will start with review and verification of specification for the EQUIPMENTS The main objective of the review process is to learn requirements of Company and to advise parameters for sizing of all related equipments and components in the process (line, choke valves, hydro-actuated valves, etc.)

The P&IDs will then be reviewed and re-drawn with latest updates whenever necessary P&ID will be issued for Inter-disciplinary checks (IDC) After incorporating all comments from disciplines checks and advices from senior engineers, the drawings will be issued in new ref (IFR) and submitted for Company review and approval

Process simulation will be carried out using Hysys Simulation results are used for subsequent calculation such as line sizing, choke valves and hydro actuated valve sizing, etc

Obtained process data for equipments will then be incorporated to the equipment datasheets Process data for instruments are also inputs to the instrument datasheets

Process discipline will provide technical support to Procurement in terms of TBE (Technical Bid Evaluation) and will incorporate third party and vendor information into P&IDs

Process for EQUIPMENTS will be designed complying all standards required by Company

3.2.4 Structural Engineering

- The structure team is supposed to perform the following engineering tasks:

- Analysis for Frame of EQUIPMENTS with in-place

- Analysis for Frame of EQUIPMENTS with lifting

- Analysis for Lifting lug of EQUIPMENTS

- Analysis for Spreader bar

- Analysis for Lifting lug of Spreader bar

- Weight analysis and COG control

Besides, structural MTO shall be issued for further procurement and construction steps

Location of nozzles for the packages and cable termination will be adopted from the vendor drawings in the PDMS model Piping and cable trays, as applicable, shall be tied-in accordingly Pipe Stress Analysis Engineer will prepare the critical line list and carry out the stress analysis based on the Stress Analysis Criteria Stress analysis will be carried to fulfil various load case requirements Changes in the pipe routing, if required, will be identified for the stress analysis model and the support type will be specified Stress Analysis Report will be prepared and issued for the applicable critical lines

The AIV subcontractor (TBA) will be provided (if required) with necessary documents to enable them to perform and carry out the study The draft report will be reviewed by the Senior Piping-Mechanical engineer and recommendations will be discussed as required

The 3D model will be updated on the recommendations from the AIV study and Stress Analysis 3D model will be reviewed together with the Company engineers

Clash checks and walk through will be performed regularly during the model development phase The clashes will be resolved by discussions with structural, electrical and instrumentation engineers as necessary 2D plan and section drawings by area wise will be produced

The piping isometrics with MTO will be prepared after completion of the above activities

Piping item list, specialty item list, data sheets and TRPs will be prepared by the engineers The activity will also include special items Sub-Vendor documents will be reviewed and approved when available The documents TRPs will follow QA procedures in developing the documents and will be issued to Company for review as per the contract The TRPs will be updated with Company coments and will be issued for inquiry Vendor drawing review for the piping items will ensure compliance to the project specifications

3.2.6 Mechanical Engineering

After the project is kicked-off, the Lead Engineers along with other mechanical engi-neers will review through the Basic Engineering package and generate deliverable list

As indicated above the mechanical engineers in the team will be assigned equip-ment/packages to

be handled by each one The engineer responsible for this activity will prepare specifications and TRPs The TRPs will follow QA procedures in devel-oping the documents and issue to PTSC for Company review as per the contract The TRPs will be updated with Company comments and will

be issued for enquiry

Mechanical engineers will carry out technical evaluations, issue technical queries, review vendor replies to achieve compliance to the TRPs Purchase specification shall be prepared for the selected vendor Vendor information will be distributed to the concerned discipline as input Discipline requirements will be coordinated with the vendor

The Lead Mechanical engineer will coordinate with the HAZOP team with regards to the packaged equipment vendor date input for HAZOP study

The material handling study will be initiated after the equipment layouts are available for review The recommendation of the material handling study will be closely followed by the piping study and 3D modeling team The final report will be issued after the 3D model has matured

For package PTSC M&C proposes to do itself, Mechanical team shall take responsi-bility in generating engineering deliverables which shall go throught review/approval proceces with involvement of interest parties (i.e Company, CA, AIA)

Mechanical equipments shall be designed complying to Company Technical Standard, ASME vessel Codes and relevant Standards

3.2.7 Electrical Engineering

Electrical engineering team has less activity than other team in this project When Basis of Design from COMPANY is available, electrical team will review all electrical related requirements The electrical team will next start preparation of the electrical bulk MTO and TR Packages for the

other Electrical Equipments (Lighting, Cable Glands, Cable Ladder, Cable Trays, Earthing Material and other Accessories & Misc)

Electrical team is also involved in reviewing documents received from Vendors to ensure compliance to the project specification

Electrical design shall include issuing of electrical heat tracing MTO for all modules Heat tracing material shall include one interface panel for each module and shall be shipped loose to Company

as part of Contractor’s primary scope

3.2.8 Instrument Engineering

Upon receipt of the updated Basis of Design from Company, Specification for EQUIPMENTS, the instrument team will begin reviewing its content that related to Instrumentation & Control, i.e Scope of Work, general technical requirements, P&ID drawings, preliminary datasheets and reference codes & standards Comments on P&ID (if any) will be sent to Process team to revise it prior to submit to Company

The Instrument Cable Block Diagram will be firstly prepared culminating in the basis for other detail engineering drawings and documents

PFD, P&ID’s Process data, and G.A drawings are the key documents based on which the instrumentation detail engineering starts Priority will be given to prepare procurement packages

of long lead items (Shutdown Valves, Control Valves, Pressure Safety valves and all electronic transmitters)

Parallel activities shall also continue to prepare documents which are required for interface with control & shutdown system of the FPSO topside These are the I/O List, Instrument Index, and Junction Box location & termination diagrams

Upon receipt of vendor data, hook-up, termination and other installation drawings shall be prepared along with location plans & routing drawings of cable trays Since Instrument bulk materials are not long lead items, the Bulk MTO will be prepared at a later phase

3.2.9 Safety Engineering

Safety engineering work shall include preparation of safety deliverables (i.e fire water demand calculation) and participation of Safety study workshops (HAZOP, HAZID, Alarp, RAM Study & PDMS Model review, etc)

3.2.10 Interface and Communication

All project communication (internal/external) shall follow project procedures approved by Company

A dedicated Interface Coordinator is responsible for external interface (with Company’s CA and others) and Project Engineer is responsible for Internal Interface coordination

3.3 CONSTRUCTION ENGINEERING MANAGEMENT

For the fabrication of the contract objects, PTSC M&C has the responsibility to carry out all the construction engineering works such as: design of Loadout Support Frame, design of the temporary supports, foundations, lifting of decks analysis, shop drawings works, 3D modeling, redline markup and as built documentation…

PTSC M&C will utilize all the existing software for the construction engineering works such as: AUTOCAD, PDMS 12.0, PDMS Review, PDMS MDS, SACS version 5.2 & 5.3, CADWorx, CAESAR II, NAPA-NUPAS-CADMATIC, PV Elite, BOCAD, SAP 2000 Version 12.0, TEKLA STRUCTURE V15, Flarenet, IN-TOOL, PLAXIS, CMS and Materials Management

Weekly report for the construction engineering works will be prepared by the Construction Engineering Manager and it will be submitted to Company’s representatives for information

PTSC M&C has developed a Construction Engineering Control Procedure which describes the method to develop further design support for fabrication and shop drawing production which are included but not limited as below:

- Development of shop drawing for fabrication

- Review, approval and distribution of drawing for fabrication

- Control and issue of site changes during fabrication phase

- Design & Engineering support for construction such as: Lifting, Roll-up, load-out

- Method for preparation of “As-Built” drawings

Some key factors that affect the progress of construction engineering works of PTSC M&C:

- Early or late issuance of AFC drawings from Detail Engineering

- Interface between PTSC M&C and Company in review of the engineering documents

Construction engineering procedures:

Basically, the following construction engineering procedures will be developed during the construction engineering phase at PTSC M&C fabrication yard:

Doc No Document name

TBA Drawing Control Procedure TBA Heavy Lifting Procedure TBA Site Technical Query Procedure

TBA Load-out Support Frame Calculation TBA Weight Control Procedure

TBA Load out and Sea Fastening Procedure Above procedures are preliminary procedures required for the engineering works during fabrication of the contract objects, any other engineering calculations, analysis, designs… required for fabrication will be developed and updated accordingly by PTSC M&C

3.4 PROCUREMENT MANAGEMENT

3.4.1 Procurement plan

Procurement of permanent materials and equipment of the Project except COMPANY Provided Items Materials and equipment will be carried out by Project Procurement Department, which is established as a part of the overall Project Management Team (PMT) and located at the same office with other departments of the Project such as Engineering, QAQC, Project Control and Construction

PTSC M&C Procurement Department will be responsible for all aspects of purchasing, expediting, inspection coordination, transportation, logistic, delivery and receipt of materials and equipment for the project It includes procurement team, subcontracting team, expediting team, payment team and logistic team All the members of the Project Procurement Department including Team Leaders, Buyers, Expeditors, Logistic staffs, Subcontract administrator work under management of a Project Procurement Manager, who is authorized by PTSC M&C Director to make decisions related to project procurement in accordance with applicable procedures; interface with Clients for procurement-related issues

Given the fast-track nature and tight schedule requirements of this project, below elements within Procurement team are considered critical to success of the project procurement:

 Competent and experienced procurement team

 Realistic procurement plan and suitable procurement strategies

 Effective procurement system including organization, vendors list/ supply chain management, procedures and interfaces among relevant departments and parties

In order to ensure the success of procurement, PTSC M&C plan to handle the above critical elements as below:

Personnel resources

The project procurement team will be staffed with the most skillful and experienced procurement leads, senior buyers, expeditors, logistics staffs and subcontract administrator

Procurement Plan and scheme for schedule critical package

PTSC M&C’s plan for procurement work of main materials/equipment for the Project is described in details in the Procurement Plan that is attached herewith for your reference Attachment #4 – Procurement Plan

3.4.2 Procurement system

Vendors List/ supply chain management:

PTSC M&C maintains and develops its own vendors/ manufacturers list based on its suppliers/ subcontractors performance assessment system from project to project For this Project, the Bidders list of each package (Exhibit H – Subcontractor) shall be made from PTSC M&C Approved Vendor List and then submitted to Company for approval

Procedures:

The Project Procurement Procedure will be developed and submitted to Company for approval in bidding stage This Project Procurement Procedure describes in details sequence and required steps to perform the procurement works including issue of Technical Requisition; development of Tender Plan & ITB/RFQ documents; determination of Bidders List and procurement methodology; issue of ITB/RFQ to invited bidders; receipt of Bid Proposal; carrying out Bid Clarifications and Evaluation; finalizing award recommendation and issue of Purchase Order to selected bidder

The procedure also includes all the required templates to be used for procurement of the Project such as RFQ package, Commercial/ Technical Bid Clarification, Commercial/ Technical Bid Evaluation report, Form of Purchase Order, General Terms and Conditions

In addition, interfaces among departments involving in procurement process of the Project is also identified and described in details

Supplier Selection Methodology:

Pursuant to the (i) Vietnam Law on Tendering and (ii) related Guidelines and Decrees, International Limited Tender method shall be applied to the procurement activities of EPC for 05 FPSO PROCESS MODULES iii) project for all of packages except where the below other methods are applicable This method is also based on

the tight schedule requirement of the project, which requires a suitable strategy enabling bid evaluation process to be conducted and completed within a very limited period

Other Supplier(s) selection method such as Single Source, Direct Purchasing may be used on a case-by-case basis When these methods are considered suitable, Company shall give PTSC M&C its instruction and/or PTSC M&C shall provide Company with justifiable reasons to substantiate its recommended method in accordance with the (i) Vietnam Law on Tendering and (ii) related applicable Guidelines and Decrees Report:

Generally, PTSC M&C procurement team shall prepare and submit to the Company

on a weekly basis the following reports:

 Procurement report

 Procurement Expediting Plan and Goods status report

Expediting and Tracking:

After a Purchase Order is issued, Expeditor in charge will take over Buyer in managing the PO in conjunction with an assigned Package Engineer Expediting shall

be carried out by Expeditors who are have experiences and expertise in international expediting In conjunction with Engineering team and Planning team, Expeditor will finalize with suppliers the approved manufacturing schedule, collecting information concerning the vendor’s progress to determine whether the vendor is manufacturing the Goods in accordance with the agreed manufacturing schedule As part of the process, the Expeditor detects, investigates, and reports problems that adversely affect the schedule Expeditor also coordinates with Detailed Engineering Team in VDR/ VDI, monitors and expedites vendor’s submission of vendor data, Package Engineer’s review/ approval and turnaround of vendor data to suppliers on time

Expeditors also coordinate with QAQC in site inspection at critical phases of manufacturing progress and arrange for testing witness as per the approved ITP Visits to vendor manufacturing facilities will be carried out either by in-house inspector or an assigned third party source inspector as and when required When it is close to completion of manufacture, Expeditors will pass relevant information to Logistic team for shipment preparation and coordination Both “desk” expediting and field expediting will be carried out by Expeditors to ensure that purchased items are delivered by promised dates PTSC M&C has planned to utilize third party service for field expediting

Inspection and Testing:

Inspection of materials and equipment is conducted by either in-house quality inspectors or source inspection subcontractors Depending on the nature of the equipment, criticality of equipment in terms of quality and inspection requirements,