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Bahja Flowline Replacement Contract C311496, South Oman C6.3 Design Service Specifications, Rev.

PETROLEUM DEVELOPMENT OMAN L.L.C.


C311496 BAHJA FLOWLINE REPLACEMENT CONTRACT SOUTH OMAN C6.3, Design Service Specifications

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Bahja Flowline Replacement Contract C311496, South Oman C6.3 Design Service Specifications, Rev.0

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Introduction .............................................................................................................................................. 3 General ...................................................................................................................................................... 3 Design Office and Service....................................................................................................................... 3 Design Service for Wellhead Hook-up Replacements ......................................................................... 4 General ................................................................................................................................................. 4 Deliverables .......................................................................................................................................... 6 Design ....................................................................................................................................................... 6 Materials.................................................................................................................................................... 6 Document Submittal ................................................................................................................................ 7 Documents for Review ............................................................................................................................ 7 Discipline Controls and Assurance Framework (DCAF) ...................................................................... 8 Asset Integrity Process Safety MANAGEMENT (AI-PSM) ................................................................ 8

Table of Contents

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Bahja Flowline Replacement Contract C311496, South Oman C6.3 Design Service Specifications, Rev.0

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Introduction
Contractor shall undertake all activities necessary to provide sufficient and adequately qualified Personnel to execute the Design Services in a timely manner and to Company's specifications. Contractor shall use Company approved Design consultants with ISO9001 certified, and or Contractor who are certified / approved for limited Design by the Company. Notwithstanding the above, Contractor's Design Service personnel shall as a minimum fulfil the qualifications as listed in Document 6.11, Personnel Specifications and be approved by the Company. Design Services may be sub-contracted or carried out in-house; in both cases the Design capability shall be accredited to ISO-9000 series. This Specification describes the requirements and the limitations of the Design Service. It should be noted that the requirements are for a Site based service with emphasise on Site surveys and production of drawings for flow line routings, replacement pipe work and minor works. Process engineering input, HAZOP, shall be applicable for: Design Service for flowlines and headers replacements. Design Service for Wellhead Hook-Up replacements.

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General
Contractor shall execute the Design Service in accordance with Company's approved standards as listed in Document C6.1, Technical Specifications and Drawings. Contractor shall note that, irrespective of the fact that some of the drawings / documents will be approved by Company, it is the responsibility of the Contractor to provide a safe and technically sound solution, which meets the intent of the Scope of Services. In addition, Contractor shall take the leading role in the performance of the Design Service. If at any stage during the performance of the Design Service, Contractor encounters a problem, Contractor shall submit (and justify) a recommended solution to the problem for Company's endorsement. Contractor shall be responsible for obtaining all relevant drawings, documents and Site information that are required to fulfil the Design Service. Contractor shall always verify the actual Site condition by means of a Site visit(s). Any request by Company to submit a quotation, where applicable, shall not bind Company to award any Design Service work to Contractor. Any award of Design Service by Company to Contractor does not bind Company to award Procurement and / or Construction Service of the job to Contractor. Contractor's Design Service activities shall be accredited to ISO 9001; refer to Quality Specification, Document C6.2, Quality Specifications. Upon completion of the Design Service, Contractor shall submit to Company 10 (ten) copies of the AFC (Approved for Construction) packages. Detailed Design (DD) for Flowlines, Headers and Wellhead Hook-ups replacements shall carried out through Third Party Services.

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Design Office and Service


Design office(s) shall be equipped with computer and IT facilities. Company reserves the right to award the design services to other contractors, in the event that the design services provided by the Contractor are sub-standard.

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Bahja Flowline Replacement Contract C311496, South Oman C6.3 Design Service Specifications, Rev.0

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Design Service for Wellhead Hook-up Replacements


This section details the requirements and the limitations of the Design Service for Flow line Header and Hook-up replacements and depending on the type of well, the Design Service for Flowline, Header and Wellhead Hook-Up replacements will comprise some or all of the following Design aspects: Hook-up of any type of well at the well pad (e.g. Oil / Gas / Water, Free Flowing, Gas Lifted, ESP, Injection Wells, Disposal Wells, Positive cavity Pump (PCP), etc.) with various combinations of materials like carbon steel with Fusion Bonding Epoxy (FBE) coatings, HDPE lining, internal coating and rotolining) and associated utilities support (Electrical, Instrumentation). Hook-up of any type of Flow line(s) and Header(s) from well pad to Facility / Manifold / MSV. Flowlines and Headers of various combinations of materials like carbon steel PE lining and internal coating) Buried and underground Flowlines and Headers road crossings. All other associated works.

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Contractor's Scope of Service will be defined by Company approved "Flow line and Wellhead Hook-Up" form and drawings, which detail, amongst others: Well location. The type of well. The required size of replacement Flowline or Header size. Any other specific requirements, if required.

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The intention of the Design Service for replacement of Flow line, Header and Wellhead HookUp is to prepare a specification to allow a Contractor to route the flow line, prepare shop drawings, and construct the line. A gas lifted well with gas lift line and oil flow line is considered a single Flow line / Wellhead Hook-Up. Contractor shall use Company standard package for well pad hook-up for each type of hookups, with minimum Design input (Refer Document C6.1, Technical Specifications and Drawings). General Contractor shall use Company's standards during the Flow line, Header and Wellhead Hook-Up replacements related Design Service (Refer Document C6.1, Technical Specifications and Drawings). Majority of Company's standard drawings are 'typical' drawings and some Design Work is required by Contractor to tailor these drawings to the specific situation at Site. Such Design Work may include but is not limited to taking copies of standard drawings, renumbering drawings, renumbering instrument tags, and updating actual operating parameters. Any such Design work required is deemed to be part of the Design Service for replacement of Flow line, Header and Hook-Up. Basis for the Design Service shall be a Company issued Scope of Service. Depending on the nature of the work a narrative, sketch(es), marked-up drawing(s) or inspection may be issued instead of the Scope of Work. Contractor shall check whether the Scope of Service provides enough information to define the required Design Service. If not, Contractor shall ask Company to clarify the Scope of the Design Service Work. Replacements will always be on a 'like for like' basis to the original or current piping specifications. Other minor projects will not entail modification to P&IDs. For redesign or

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Bahja Flowline Replacement Contract C311496, South Oman C6.3 Design Service Specifications, Rev.0

process modifications the requirement in section 4 shall be followed. Note that Company approved Design consultants with ISO9001 certified shall perform such activity. 2.26 In case a type of wellhead hook-up is not yet covered by Company's standard drawings, and no project specific drawing package is issued by Company, Contractor shall revert to Company. In such case Company will normally advise Contractor to base the Design Service on: 2.27 Company standard drawings for a similar hook-up, or Company general or project specific drawings for a similar hook-up.

General or project specific drawings produced previously by Contractor for a similar hook-up.

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Deliverables Minimum Mandatory Deliverables per phase shall be as specified in Document C4, Scope of Services. These shall be provided, at the appropriate level of definition for all Flowline, Header and Wellhead Hook-up replacements / scope at the appropriate phase of the Work. If no deliverables are specified then the Contractor shall propose the deliverables based upon SP-1211.

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Design
Once the Purchase Order for the Design Service has been issued, it shall be solely Contractor's responsibility to complete the Design Service in time and to Company's specifications. For Flow line Header and Hook-up replacements, the Contractor shall specify the pipework to be replaced including break points and tie in points such that: shutdown of oil production related facilities is minimised, hot work at a hydrocarbon bearing facility is minimised, HSE exposure in minimised, and overall Construction costs (for Company) are minimised.

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The method of Construction shall be agreed with the Purchase order originator, or Area Construction / Operations Representative during the Site visit(s). For minor projects, Contractor shall take the Company supplied Scope of Service and produce a drawing package such that it can be confirmed by Company that the package will meet the intent and requirement of the Scope of Service. The drawing package shall be such that the minor project could be constructed by any competent Construction Contractor. Contractor shall submit the drawing package for Company's approval once complete.

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Materials
Contractor shall prepare a material take off for individual discipline, as part of the Scope for replacement flowlines, headers and hook-ups as part of Sourcing and Logistics activities Scope. The material specifications shall be as per Company standards & specifications. Contractor may propose new supplier for materials, that is cost benefit to Company and Contractor shall obtain Company approval prior to placing orders. Contractor shall be fully responsible for materials specifications, subsequent, technical evaluation of materials specification, approval of technical specification, any variance shall be approved by the Company with sufficient justification, technically fit for purpose. Material take-off (MTO) / Bill of Materials (BOM) for individual discipline: Contractor shall, where possible, use Company standard, fully SAP-coded items on his MTO / BOM. Requisitions shall be prepared in accordance with Company's standards (refer to ERD10-04) making use of Company's remote requisitioning facilities. Contractor shall note Company's requirement to prepare attachments to requisitions of non-SAP-coded items using Company's standard requisition sheets (DEP30.10.01.10-Gen). All requisitions shall be submitted to Company for review and approval. Material PDO involvement

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Requisitions:

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Document Submittal
Document review by Company will be limited in view of the Contract intent that Contractor shall establish its own internal controls to ensure compliance with the Technical Specifications, Scope of Work and quality requirements. Companys predominant role shall be one of Audit to check that Contractors internal controls comply with the Specifications, Scope of Work and quality requirements and to check that these controls are properly implemented. Thus, Contractor shall be fully responsible for ensuring that the Work is carried out in accordance with the Specifications, Scope of Work and quality requirements. Contractor shall ensure that all those documents of Contractor, Sub-Contractors, and Supplier(s) that are to be reviewed by Company shall first be reviewed for adequacy, suitability and correctness and endorsed by the Contractor prior to submitting to Company.

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Documents for Review


Contractor shall be responsible for obtaining all necessary approvals from Company and any other relevant parties as and when required. Contractor shall allow for a minimum of 10 working days for any review of Drawings and / or documents by the Company. Contractor shall include for any time spent by them for incorporation of Companys comments and re-submit any Drawings and / or documents for subsequent review. The re-submitted Drawings and/or documents will also be subject to a minimum of 10 working days for Companys review. If Company returns the documents to Contractor with comments, Contractor shall implement all comments by Company unless Contractor disagrees with the comments in which case the comments in question shall be discussed and the follow up requirements agreed with Company prior to their implementation. When implementation of the comments results in substantial modifications to documents, Contractor shall reissue the modified documents that shall be clearly marked REISSUED FOR COMMENTS. In instances where Contractor is of the opinion that compliance with Companys comments would constitute a Variation to Purchase Order (as defined in Document C3, General Conditions for Engineering Service Contracts) Contractor shall immediately notify Company thereof by returning a written advice. Thereafter, the comments in question shall be the subject of mutual consultation. If such notification of Variation is not received within seven days from the date of submission of comments it shall be deemed that the comments do not constitute a Variation to Purchase order. The fact that a document may or may not have been commented upon shall not relieve Contractor of its responsibilities under the Contract. Company reserves the right to request re-submission FOR COMMENT at no extra cost to Company. Companys comments and / or approval of Contractor, Sub-Contractor and Supplier(s) documents do not relieve the Contractor of its Contractual obligations. All non-compliances deficiencies or omissions revealed at any stage during execution of the Contract shall be rectified / corrected / restored by the Contractor at no extra cost to the Company. Such resources Shall include, but not necessarily be limited to, Personnel, offices, telecommunication systems, electronic mailing systems, Computer systems- Hardware and software, dedicated telephone link(s) for data transfer to and from the Company, conventional Design and Drawing office facilities, printing, scanning, rapid duplication, collation and binding of documents and Drawings, electronic storage, back-up and retrieval systems, CD writers, modern conference facilities including overhead projectors capable of direct display from computer files, video players, Digital cameras suitable for use in Interior facilities while personnel are on a Site visit for collection of Site details, vehicles, storage facilities and overseas head office support.

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Discipline Controls and Assurance Framework (DCAF)


Company operates a Discipline Controls and Assurance Framework (DCAF) system that identifies and lists business critical decisions/controls and deliverables requiring sign-off by authorised individuals (i.e. Technical Authorities). Technical Authorities are individuals assessed to be competent to sign off decisions and deliverables within their applicable discipline and approved scope. Contractor shall propose and submit for approval Technical Authorities (TA2 & TA3) to the Company Engineering Team Leader and relevant Company Corporate Functional Discipline Heads (CFDHs), i.e. the Technical Authority level 1, in accordance with GU272 and SP-2061 Engineering and Operations Technical Authorities System.

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10.0 Asset Integrity Process Safety MANAGEMENT (AI-PSM)


2.52 Asset Integrity Process Safety Management (AI-PSM) describes the way in which Company manages its Assets to ensure that their physical and operational integrity is maintained and that the chance of a major incident occurring is as low as reasonably practicable. AI-PSM is underpinned by effective design, operation, maintenance, management systems and leadership at all levels and all stages of the asset lifecycle. As such, effective Process Safety is directly linked to effective business performance where people and management systems are fundamental to successfully delivering sustained performance. Companys AI-PSM management system is therefore based on the following key elements: 2.55 Design integrity design in a manner that ensures risks are As Low as reasonably Practicable (ALARP). Technical Integrity (safeguards). constructing and maintaining the hardware barriers

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Operating Integrity operating the facilities within specified limits and Personnel and Contractors are competent and compliant. People and Systems establishing and maintaining Company core values, behaviours and management processes required for the effective management of AI-PSM.

Company has dedicated significant resources to AI-PSM embedment, which is led at Directorlevel. This AI-PSM champion holds overall accountability for AI-PSM improvement in the Company and is supported by the Asset teams and AI-PSM Working Group who ensure that annual business plans and KPIs for AI-PSM are implemented to address the four areas of AIPSM. Implementing these plans ensure improvements are made in key areas such as the Permit to Work (PTW), Live Operating Envelopes, Alarm Management, Integrity management and Assurance. Effective management of AI-PSM will reduce major accident risks, ensure stakeholder confidence in the business and provide assurance for the delivery of safety and production goals. AI-PSM controls are embedded in Companys DCAF system (see section 12 above). However, Company management requires assurance that AI-PSM controls are delivered and approved by the appropriate Technical Authorities for all projects that involve Process Safety hazards (e.g. hydrocarbon gas, crude oil, natural gas liquids, significant concentrations of Hydrogen Sulphide, etc). Throughout the delivery of Services Contractor is required to comply fully and collaborate with the AI-PSM controls imposed by the Company.

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