Document No Rev

JX Nippon Oil & Gas Exploration (Malaysia)

Limited (993414-U)
THE–LFPSO–00–GN–PEP-00006 AB

PROVISION OF EPCIC AND LEASING FOR FPSO LAYANG

TOWING/SAILAWAY,
TRANSPORTATION AND
INSTALLATION PLAN

AB 8 Apr 2015 Final Doc SP LZ JRM

C 24 Feb 2015 Issued for Approval SP LZ JRM

B2 12 Sept 2014 Re-Issued for Review MAB LZ KSM

B1 18 July 2014 Re-Issued for Review MAB LZ KSM

B 11 Jun 2014 Issued for Review MAB LZ KSM

A 17 April 2014 Inter Disciplinary Check PMT LZ KSM

Prepared Checked Approved
Rev Date Status NIPPON
by by by

TH HEAVY ENGINEERING BERHAD

THE-LFPSO-00-GN-PEP-00006 Rev. AB
TOWING/SAILAWAY, TRANSPORTATION AND INSTALLATION PLAN

TABLE OF CONTENTS

1 TOWING/SAILAWAY, TRANSPORTATION AND INSTALLATION PLAN.............................7

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REVISION SUMMARY

Rev. Section Description

A IDC
B Issued for Review
B1 Re-issued for Review
B2 Re-issued for Review
B3 Re-issued for Review
C Issued for Approval
AB Final Doc

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ABBREVIATIONS

AFR Audit Finding Report

BOD Board of Directors
CBE Commercial Bid Evaluation
CIDB Construction Industry Development Board
CIF Cost, Insurance and Freight
CLASS Classification Society
COW Crude Oil Washing
CPFF Cost Plus Fix Fee
CPN Critical Path Network
CSU Commissioning Support Unit
CV Curricular Vitae
DCR Daily Charter Rate
DCS Distributed Control System
DDE Detailed Design Engineering
DOSH Department of Occupational Safety and Health
EPCIC Engineering, Procurement, Construction, Installation and Commissioning
ESD Emergency Shutdown
FEED Front End Engineering Design
FPSO Floating Production Storage and Offloading
HAZID Hazard Identification Study
HAZOP Hazard and Operability Study
HIP Helang Integrated Platform
HIT Hazard Identification Tools
HP High Pressure
HSE Health, Safety and Environment
HVAC Heating Ventilation and Air Conditioning
ITB Invitation To Bid
ITP Inspection Test Plan
ITR Inspection Test Record
JPJ Jabatan Pengangkutan Jalan (Ministry of Transportation)
JSA Job Safety Analysis
KPI Key Performance Indicator
LLI Long Lead Item
LOA Letter of Award
LOI Letter of Intent

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LQ Living Quarters
LSR Life-Saving Rules
LV Low Voltage
LWP Layang Wellhead Platform
MC Mechanical Completion
MDR Master Deliverables Register
MOM Minutes of Meeting
MPR Monthly Progress Report
MV Medium Voltage
NCR Non Conformance Report
NIOSH National Institute of Occupational Safety and Health
NOCH Notification of Change
OIC Offshore Installation Contractor
P&I Protection & Indemnity
PCS Project Completion System
PCSB Petronas Carigali Sdn Bhd
PDMS Plant Design Management System
PEQP Project Execution and Quality Plan
PLC Programmable Logic Controller
PO Purchase Order
PPE Personal Protective Equipment
PQMP Project Quality Management Plan
PSP Project Specific Procedure
QA Quality Assurance
QC Quality Control
QRA Quantitative Risk Assessment
RAM Reliability, Availability and Maintainability
RFSU Ready for Start Up
RLEC Repair, Life Extension and Conversion
SOLAS Safety of Life at Sea
TBE Technical Bid Evaluation
THHE TH Heavy Engineering Berhad
TQ Technical Query
WBS Work Breakdown Structure
WPR Weekly Progress Report
WPS Welding Procedure Specification
WQT Welder Qualification Test
WRR Work Readiness Review

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TOWING/SAILAWAY, TRANSPORTATION AND INSTALLATION PLAN

DEFINITIONS

CONTRACT CONTRACT FORM and the attached Exhibits for Lease &
EPCIC Contract

FACILITY FPSO Layang

FPSO SITE location or locations where the FPSO is to be positioned as

required by NIPPON

NIPPON JX Nippon Oil & Gas Exploration (Malaysia) Limited

OWNER TH Heavy Engineering Berhad

SUBCONTRACTOR any party having a contract with OWNER directly or indirectly as

approved in writing by NIPPON for the performance of any
portion of the WORK or part thereof any includes vendors and
suppliers.

SERVICES provision of the FPSO in accordance with this CONTRACT by

OWNER, the charter of the FPSO by OWNER to NIPPON and
all other services and work to be provided by OWNER in
accordance with Good Industry Practice as specified necessarily
implied in this CONTRACT

VENDOR Supplier of Equipment and Spare Parts

WORKSITE(S) the lands, waters and other places on, under, in or through
which the WORK is to be performed including FPSO SITE,
offshore platform, office, workshop and places where
equipment, materials or supplies are being obtained, stored or
used for the purpose of this CONTRACT

WORK means SERVICES

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1 TOWING/SAILAWAY, TRANSPORTATION AND INSTALLATION PLAN

1.1 General

1.1.1 The FPSO will be towed to Layang offshore field with a manned tow,
who will be operating and fine tuning the vessel systems, and
monitoring all systems and areas of the FPSO for problems and
failures. The towing/sailaway plan will be as per below:

i. Towing from Dubai to Designated Place of Integration to install

and integrate the Topsides Module on the vessel. Estimated
duration of tow is 28 days with manned tow

ii. Towing from Designated Place of Integration to Layang offshore

field for the offshore installation. Estimated duration of tow is 5
days with manned tow

1.1.2 Owner will separately fabricate, transport, install, Hook-Up, pre-

tension, inspect, test, the Mooring System ready at Layang offshore
field for connection with the FPSO to the coordinates specified in
Section 5.1 of Basis of Design document in APPENDIX I-2 –
NIPPON LISTOF TECHNICAL DOCUMENTS AND
DRAWINGS. Owner will ensure that this activity is coordinated
and completed prior to arrival of FPSO in Layang field.

1.1.3 The EPCIC of Flexible Riser is not included in OWNER’s Scope of

WORK, and it is a Scope of Pipelines Contractor’s work. OWNER
scope shall be limited to providing support to Pipelines Contractor
for the installation of flexible riser as detailed at Section 1.10 of this
document.

1.1.4 Owner will ensure that all activities related to their scope of work on
Sailaway, Tow, and installation of FPSO and mooring systems are
carried out under intimation and approval of Classification and
approved Marine Warranty Surveyors appointed for the operation.

1.2 Scope

1.2.1 OWNER will supply all Transportation, marine Vessels, engineering,

labour, equipment, tools, material, consumables, Construction
equipment, support facilities, supervision, scheduling, inspection,
QA/QC, safety SERVICES, insurance, transport Vessels, ocean-
going tugs, rigging and interface coordination with all involved parties
to transport the fully integrated FPSO and all ship-loose items to the
FPSO SITE, and install the FPSO at the FPSO SITE along with the
mooring system.

1.2.2 Prior to the Sailaway Date, OWNER will complete all conditions as
specified in EXHIBIT XVII – HANDOVER CONDITIONS and obtain
NIPPON’s formal endorsement on the FPSO SAILAWAY
CERTIFICATE in accordance with EXHIBIT VI – PROJECT
ADMINISTRATION PROCEDURE.

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1.2.3 OWNER will be responsible for the Transportation of the FPSO

including, but not be limited to rigging, main and emergency tow
bridles, plates and all lights and markings required on the tugs and
barges during the tow.

1.2.4 All Vessels and equipment shall be in first class working condition
and regularly and properly maintained. OWNER will provide to
NIPPON the results of the last Annual Marine Survey for all Vessels
to be utilized for the WORK.

1.2.5 OWNER will obtain the necessary marine clearances and permits
etc., which are required for OWNER to conduct its normal operations
within Malaysia, at least thirty (30) days prior to the Sailaway Date.
All costs associated with obtaining such clearances and permits shall
be to the OWNER’s expense. All Vessels shall comply fully with
international and Malaysian regulations and copies of all certificates
(i.e., Registry, Class, Radio Safety, etc.) are to be submitted to
NIPPON. Tugs, crew boats, supply boats and Hook-Up barges shall
be equipped with operational two-way radios capable of inter-Vessel
communications at all times. Detailed specifications and technical
information for all proposed Vessels shall be submitted to NIPPON
for review and endorsement.

1.2.6 OWNER will arrange for a joint inspection of the vessel by NIPPON
and a Third Party Marine Warranty Surveyor prior to the Sailaway.
OWNER take note that NIPPON endorsement shall take into account
HSE standards on the Vessels, including hygiene and sanitation.
Maintenance logs for all mechanical and Electrical Equipment shall
be made available for NIPPON’s review. Vessels not in compliance
with the Marine Warranty Surveyor’s certification requirements shall
not be approved.

1.2.7 OWNER will obtain all necessary approvals for Vessels to WORK in
Malaysian waters. All costs associated with obtaining such approvals
shall be borne by the OWNER.

1.3 Safety

1.3.1 Sailaway, Transportation and Installation of the FPSO will be in

accordance with plans, drawings, CONTRACT Specifications and
documents developed by OWNER.

1.3.2 OWNER will have full and complete responsibility for all OWNER
activities being performed on the FPSO and for the safety and
security of all personnel on-board the FPSO.

1.3.3 OWNER will maintain a safe and healthy working environment during
the transfer of the FPSO to the FPSO SITE and the subsequent
Installation of the FPSO.

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1.3.4 OWNER will perform a HAZID prior to the Sailaway Date to identify
and assess all hazards associated with the transfer, Installation and
Hook-Up activities, and to ensure controls and recovery measures
are in place. The HAZID shall address the hazards to life, health, the
environment and assets.

1.3.5 All agreed recommendations will be fully implemented prior to the

commencement of the tow.

1.3.6 OWNER will engage MWS and perform pre-hire suitability

inspections to the Construction Barges intended to be used for
mooring and FPSO installations to ensure the Construction Barges
are substantially capable of performing the WORK under the worst
weather conditions possible in the time planned for Installation
WORK. Any Construction Barges which are not confirmed their
suitability to perform the WORK shall not be allowed to enter the
Block SK-10.

1.3.7 OWNER will comply with all IMO regulations regarding marine
transport.

1.4 Marine Warranty Surveyor (MWS)

1.4.1 OWNER will appoint a Third Party Marine Warranty Surveyor from
among those nominated Marine Warranty Surveyors by OWNER’s
insurance policies and NIPPON shall endorse the appointment of the
Marine Warranty Surveyor. The appointed Marine Warranty Surveyor
shall review and approve all Transportation Calculations, Stability
Analysis, towing arrangements and Mooring Systems, as required
and issue appropriate certificates to comply with the requirements of
the OWNER’s insurance policies.

1.4.2 The appointed Marine Warranty Surveyor scope of WORK shall

include but not be limited to:

1.4.3 Audit, inspection and issue recommendation of each marine Vessel

proposed for the WORK;

iii. Review and approve all OWNER’s marine procedures, relating

to Transportation and installation of permanent material;

iv. Witness the loadout for all permanent materials and provide
Sailaway Certificate for their Transportation

v. Review of all shipping documents, Vessel/tugs, barge and

towing gear certification;

vi. Assessment of weather conditions and issue recommendation

to secure safe working condition for structures, Vessels, crew
and the like; and

vii. Provision of certificates of compliance to NIPPON confirming

that preparation of Sailaway, Sea-fastening, Sailaway, and lifting
are in accordance with the approved procedures.

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1.4.4 OWNER will modify and adapt its procedures as required by the
Marine Warranty Surveyor and/or NIPPON. The Marine Warranty
Surveyor shall issue a certificate to OWNER stating that all marine
operations are approved including all on-hire surveys of barges, tugs,
and tow hardware, inclusive of tow bridals and navigation aids.
OWNER will ensure all the specific activities and certificates of
approval and attendances required by the MWS and those specified
in the insurance warranty are being complied with. All costs
associated with the employment of the marine warranty surveyor for
the purpose of complying with the insurance warranty requirements
shall be on OWNER’s expenses.

1.5 Marine Procedure Manual (MPM)

1.5.1 OWNER will prepare a Marine Procedure Manual (MPM) and

Installation Procedure for NIPPON review prior to submission to
Marine Warranty Surveyor, and any government agency having
jurisdictional authority. This manual shall describe, in detail, all
Sailaway, Tow-out, Transportation and mooring connection, marine
operations and associated activities. The MPM shall include, but not
be limited to:

viii. Roles and Responsibilities

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ix. Environmental conditions for the planned route (stating specific

weather windows where appropriate);

x. Tow route description, including identification of safe havens;

xi. Towing plan and procedures;

xii. Safety procedures;

xiii. Marine Vessel requirements and details including Standby and

support Vessels.

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xiv. Stability and Sea keeping calculations;

xv. Longitudinal strength calculations, including bending moments

and shear forces during tow;

xvi. Details of Sea-fastening of loose items and voyage protection

details;

xvii. Ballasting procedures and calculations;

xviii. Criteria for readiness for Sailaway and Transportation;

xix. Transport supervision, authorities, and communication

procedures;

xx. Transport inspection plans; before, during and post tow;

xxi. Navigation aids, lighting, etc.;

xxii. Anchoring and mooring facilities;

xxiii. Lifts (if any);

xxiv. Fendering;

xxv. Emergency procedures and contingency plans;

xxvi. Time schedules, including bunkering plans;

xxvii. Applicable Metocean data and Weather forecasting plans;

xxviii. Reporting of Tow Program.

1.5.2 The MPM shall be in accordance with the requirements of and

contain necessary information in sufficient detail as required by the
class, Marine Warranty Surveyor, all authorities having jurisdiction,
and insurance underwriters.

1.5.3 OWNER will verify that all acceleration forces, bending moments and
shearing forces in the FPSO during Transportation are within
acceptable limits, and will submit transport calculations to NIPPON
and Marine Warranty Surveyor.

1.5.4 The Marine Procedure Manual (MPM) shall provide a seamless

transition into the Installation Procedure manual for the handover of
the tow to FPSO Installation. The Marine Procedure Manual shall
contain necessary information in sufficient detail as required by the
necessary authorities and insurance underwriters. OWNER will
complete the Marine Procedure Manual for submission to Marine
Warranty Surveyor as well as any Government agency having
jurisdiction authority over any part of the tow route.

1.6 Navigation

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1.6.1 OWNER will comply with relevant National and International

Government regulations applying to entering and working within
territorial waters and rivers of foreign countries.

1.6.2 OWNER will also fully comply with Malaysian navigation

requirements while within its territorial and coastal waters.

1.7 FPSO Sailaway and Transportation

1.7.1 Preparation of Equipment for Transport

xxix. All modules, structures, equipment and other components on

the FPSO shall be adequately prepared prior to the Sailaway
Date to prevent damage from debris, rain, wind, sea water and
motion-induced loads that could occur during marine
Transportation. OWNER shall develop a detailed procedure for
preservation of modules, equipment and components for
Transportation and storage.

1.7.2 Ship-loose Items

xxx. A detailed listing of ship-loose items shall be developed. The

listing shall be organized by system and shall include the
following:

a. Piece number;

b. Location of stored item;

c. Detailed description of reference drawings, sketches,

method to reinstall, any required testing, verification and
the like.

xxxi. The listing shall include all pipe spools, couplings, electrical
components, lighting fixtures, instrumentation components, and
the like.

1.7.3 Sea-Fastening

xxxii. OWNER will sea-fasten any ship loose items onto OWNER’s
marine transport Vessels in accordance with accepted marine
practice to the satisfaction of the MWS.

xxxiii. The transport Vessel being utilized shall be cleared of all non-
essential materials and debris prior to towing. All loose
materials and equipment left on the transport Vessel shall be
secured for the tow by either welding or lashing to the deck. All
Sea-fastenings between modules, decks or internal
components to transport Vessels shall be designed considering
the most severe condition that may be encountered during
transportation.

1.7.4 Preparation of the FPSO for Sailaway

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xxxiv. OWNER will make all towing arrangements compatible with

OWNER’s design and provide all tow rigging (i.e., towing bridle,
emergency tow wire, etc.) required to tow the FPSO. OWNER
shall design, fabricate and install all Vessel towing fittings.

xxxv. Sailaway of the FPSO shall be contingent upon:

a. The FPSO being completed in accordance with the

approved design, fabricated, assembled, installed,
constructed, reconstructed, hooked-up, inspected and
tested;

b. NIPPON and/or its representatives, the Classification

Society and where applicable the NIPPON Verification
Body verifying that the required inventories, tests,
inspections and the pre-operating Pre-Commissioning and
Commissioning (if applicable) have successfully met or
exceeded the requirements;

c. Where required by SUBCONTRACT, such

SUBCONTRACTOR certifying in writing that they have
observed, inspected and/or supervised the Installation of
their equipment or subsystems and were present during
whatever performance testing and Commissioning that
was conducted and they are satisfied that their equipment
and/or subsystem shall meet the requirements of NIPPON
Supplied Documentation;

d. The FPSO is delivered to the level of completion required

for a safe tow/sail out and is in all respects seaworthy for
such a tow/sail out as required by the Marine Warranty
Surveyor and the Classification Society;

e. Any required seaworthiness or regulatory requirement

tests have been completed;

f. Towing fixtures and fittings are as per Classification

Society requirements and independently verified by the
Marine Warranty Surveyor;

g. Satisfactory arrangements have been established to

ballast the FPSO to the required draft for the tow/sail out;
including pumps, initial ballast, ballast adjustments under
tow, and fuel for Ballast System;

h. Towing tug(s) and Vessel(s), towing arrangements (both

primary and emergency), planned tow route, weather
contingencies and legal formalities for safe departure have
been set in place and independently verified by the Marine
Warranty Surveyor;

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i. Receipt of documentation from the flag state, port

clearance, Classification Society, including required
certifications, indicating that the Hull was designed and
built in accordance with their respective classification
requirements and all legal requirement for port clearance
has been fulfilled;

j. An independent survey of all key aspects of the Hull and

tow has been carried out by OWNER and approved by the
Marine Warranty Surveyor. The Marine Warranty Surveyor
shall provide a copy of certification document to NIPPON.

k. Once agreed, for other than emergencies, no deviation to

the tow/sail out plan may be made without the approval of
the Marine Warranty Surveyor.

1.7.5 Transport / Towing Vessels

xxxvi. OWNER will provide all transport/towing/escort Vessels required

for the transport/ tow/ escort of the FPSO to the SITE.
Transport/towing/escort Vessels shall be kept in Class at all
times, and all certificates shall be current and valid for use in
the WORK. All tugs utilized by OWNER during Transportation
WORK shall be of sufficient horse power and bollard pull to
maintain headway with the tow in sea conditions as approved
by the Marine Warranty Surveyor. Tugs shall not depart their
tow except with confirmation that the barge is securely moored.

xxxvii. OWNER will design, furnish, fabricate, install and inspect any
transport/ towing/ escort Vessel Sailaway grillage required for
Sailaway of components. OWNER will make a report available
for NIPPON review on suitability of marine Vessels including
specification, specific layout and marine Vessel survey. Tug
towing equipment and towing arrangement shall be approved
by the Marine Warranty Surveyor and shall include as minimum:

a. One main towing line of adequate strength and length

together with one spare towing line shall be available on
board. The minimum acceptable continuous length is 610
meters;

b. At least two wire towing pennants of breaking strength

equal to 90 percent of the breaking strength of the main
towline shall be on board (complete with valid certificate);

c. Hard eye thimbles to be used for every connection in

towline;

d. Shackles shall be commensurate with all other parts of the

towing configuration (but not less than twice working load
of the main towline, complete with valid certificate);

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e. A motorized Work Boat shall be carried by the tug to

enable men and equipment to be transferred to the barge
without the tug going alongside the barge. (Inflatable
dinghy with hardboard bottom powered by an outboard
motor may be acceptable.) Adequate means of launching
and boarding Vessels shall be provided;

f. Each tug shall be manned with a qualified Master, officers

and seamen;

g. OWNER will at all times during the tow have a

Transportation crew member assigned the sole duty of
watching the tow to report any mishap. The Tow Master
shall immediately take corrective action; and

h. OWNER will furnish all pertinent information relating to the

assumptions for the basis of each tow within ninety (90)
days before the Sailaway Date.

1.7.6 Completion Criteria for FPSO Sailaway, Transportation shall be as

follows:

xxxviii. NIPPON formally accepts all deliverables reviewed and

approved by Third Party Marine Warranty Surveyor;

xxxix. NIPPON formally signs off all Punch List items except those
mutually agreed by NIPPON to be implemented later;

xl. NIPPON formally accepts all preparation WORK for FPSO

Sailaway fully completed;

xli. NIPPON formally endorses FPSO SAILAWAY CERTIFICATE;

and

xlii. No outstanding technical issues remain unresolved.

1.7.7 Pre-mobilization Meeting

xliii. Ten (10) days prior to the Sailaway Date of the FPSO, OWNER
will coordinate, chair, minute and participate in a Pre-
Mobilization meeting. The meeting shall be attended by the
relevant Key Personnel of OWNER, NIPPON and NIPPON’s
Other Contractors. The aims of the meeting include, but are not
limited to:

a. Ensure alignment of all Parties of the WORK at the

Installation SITE;

b. Clarify the communication protocol between OWNER,

NIPPON and NIPPON’s Other Contractors;

c. Transmit requests for further information or scope

clarification; and

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d. Identification of critical issues that is likely to impact

schedule or costs.

xliv. OWNER will prepare minutes of the meeting and issue to

NIPPON for approval within three (3) days of the meeting.

1.7.8 Progress Reports and Towing Records

xlv. OWNER will inform NIPPON on a daily basis by telex or fax and
email the progress of the tow(s). Items to be reported include
tow position, average speed, estimated time of arrival, weather
conditions and other events occurring during tow.

xlvi. OWNER will keep complete towing records indicating all events
occurring during tow(s) and will submit these records to
NIPPON as part of the final documentation.

1.7.9 Damage

xlvii. OWNER will be responsible for any damage to equipment,

material, assembly, sub-assembly or component during
Sailaway (after the Sailaway Date) or transport and will repair or
replace the damaged component at no additional cost to
NIPPON.

1.8 Installation Spreads of Mooring and FPSO

1.8.1 General

xlviii. OWNER will furnish all labour, material, equipment,

consumables, supervision, inspection, scheduling, support
facilities and interface coordination necessary to fabricate,
transport, install, Hook-Up, pre-tension, inspect and test to
make the Mooring System ready for connection with the FPSO
to the coordinates specified in Section 5.1 of Basis of Design
document in APPENDIX I-2 – NIPPON LIST OF TECHNICAL
DOCUMENTS AND DRAWINGS. The Mooring System will
comply in all respects to the Classification Society requirements
and NIPPON Supplied Documentation.

xlix. The selection of Mooring System is included in this Scope of

WORK, and OWNER will study the type of mooring system with
requirement in NIPPON’s Supplied Documentation. As stated in
EXHIBIT I SCOPE OF WORK, NIPPON supplied geophysical
and geotechnical survey report shall be read as reference only.
OWNER shall perform its own geophysical and geotechnical
survey at its own cost at the locations where the Mooring
System shall be installed before starting Mooring System
Design.

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l. OWNER will supply all necessary Vessels, equipment,

SERVICES and Personnel required connecting the FPSO to the
Mooring System at the FPSO SITE. Offshore Installation shall
be in accordance with the requirements of OWNER’s Project
Execution and Quality Plan. OWNER will submit for review a
report on Installation methodology demonstrated by sequence
sketches, illustrating the FPSO and marine Vessel activities
involved.

li. The scope shall include, but not be limited to:

a. Selection study for Mooring type;

b. All FPSO SITE surveys necessary to obtain a complete

Mooring System; Manage and support Pipelines
Contractor for Riser System design;

c. All Mooring System engineering, Fabrication engineering,

computer analysis and testing;

d. All activities leading to the classification of the Mooring

System;

e. Procurement and Installation of all Mooring System

equipment and materials;

f. Fabrication of the turret and mooring structures and

appurtenances;

g. Fabrication and Installation of all required piping, Piping

Equipment and piping supports on the FPSO;

h. Installation of all Electrical and Utility Equipment on FPSO;

i. Installation and Hook-Up of all Instrumentation and Control

Systems Painting, coating, and insulating as required;

j. All inspection, testing, and functional testing;

k. Pre-Commissioning and testing the installed equipment,

systems, and utilities to the greatest extent possible prior
to Offshore Installation;

l. Provision of Vessels for Offshore Installation including

Mobilization and Demobilization;

m. Offshore Installation, inspection, and testing of Mooring

System so that the Mooring System is left ready and
prepared for connection to the FPSO.

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lii. OWNER will also provide all Mobilizations, temporary facilities

required during Fabrication, transport, Installation, inspection,
testing and Commissioning, including removal of all temporary
facilities and its components including winches, fairleads, pull-in
lines and chain stoppers. OWNER will also provide all
Mobilizations/ de-Mobilizations of temporary facilities, including
removal of temporary facilities, required to accomplish the
WORK.

1.8.2 Transportation and Installation of Mooring Spreads

liii. OWNER will specify the minimum vessel specifications for

SUBCONTRACTOR vessels required to perform the WORK.
Particular attention should be paid to items such as power
generation capacity, length, diameter of anchor wires, anchor
winches and deck cranes operating capacities (including man
riding certification).

liv. OWNER will provide an equipment list and mooring procedure

for the nominated vessel for each WORK location. The
documentation shall include each of the following elements:

a. Anchor pattern and vessel location superimposed on the

latest edition of the SK-10 chart;

b. Actual size and length of the vessel’s anchor wires,

Material Certificates and Test Certificates;

c. Breaking strength of the vessel’s anchor wires. Values

quoted shall include de-rating if necessary for wear;

d. Details of the anchor winches, including maximum line

pull, stall capacity and maximum weight of anchor, which
can be utilized;

e. Details of the anchors to be used, including sketches

and/or photographs. For each type of anchor to be
deployed, a statement should be made on expected
holding power in hard and soft seabed conditions. Details
of pennant wires and buoys should also be provided;

f. Details of any proposed Mid Line Buoys (MLB) required to

suspend anchor wires and prevent catenary contact with
pipelines and other subsea structures. Catenary
calculation sheets shall be provided for all proposed MLB
locations;

g. Details of the threshold weather conditions which would

cause the construction spread vessel to cease operations
and/or move away from the WORK SITE for each mode of
the operations covered under the scope of WORK. In
addition, maximum anchor tensions for adverse sea
conditions;

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h. Details of electronic positioning (surveying) equipment and

personnel; including, number of units, power supply, radio
frequency and proposed locations for remote stations; and

i. The method of anchor handling, setting up the vessel and

moving vessel within the anchor pattern. Particular
attention shall be paid to anchor handling vessel details,
anchor handling winch capabilities and crane age details if
required for anchor handling.

1.8.3 Detailed Towing Plan

lv. OWNER will submit to the Marine Warranty Surveyor for

approval a detailed Towing & Installation Plan for each loaded
barge associated with the Transportation Vessels. A copy of the
Towing Plan shall be sent to NIPPON. These plans shall
include, but not be limited to the following:

a. Size, number, name and certification of tugs to be used for

tows;

b. Detailed sketches and calculations showing proposed

schedule of tank ballasting to achieve draft and trim for
barges;

c. Detailed sketches and calculations showing sizes and

arrangements for tow bridles including emergency pickup
line;

d. Description of manoeuvring plans and additional tugs, if

required, to clear the harbour;

e. Proposed route of the tow and contingency plans in case

of equipment failure, and safe anchorage/ shelter area in
the event of poor weather conditions;

f. Transit schedule to the FPSO SITE;

g. Communication plans during tow, including methods of

getting information to NIPPON;

h. Security provisions during the tow;

i. Anticipated weather data along route and the weather

forecasting SERVICES prior to and during tow with which
OWNER shall provide to tug boat captains;

j. Special instructions to the tow Masters (if any); and

k. Planned inspection of cargos during tow.

1.8.4 Transportation Barges

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lvi. The Transportation Barges will be sea-going type, of adequate

size to accommodate the Mooring System and Riser System,
as applicable and any other equipment and materials required
for the Installation WORK. The Transportation Barges shall be
supplied together with sufficient crew and officers to permit
operation on a continuous twenty-four (24) hours basis for the
duration of the WORK.

lvii. OWNER will ensure that all Transportation Barges are

inspected and approved by a Marine Warranty Surveyor, both
prior to and after the Sailaway Date and Sea-fastening.
OWNER shall be responsible for all preparation WORK,
including but not be limited to all inspections, maintenance,
repairs, modifications and tests as required by the Marine
Warranty Surveyor. Inspection and approval of the
Transportation Barges shall take place thirty (30) days prior to
the Sailaway Date. The OWNER will notify NIPPON of any
change in the Vessels. Any such changes shall be subject to
NIPPON and Marine Warranty Surveyor approval. OWNER will
be responsible for any re-WORK regarding engineering and
Installation Procedures should the change of Vessel be
endorsed by NIPPON.

lviii. Towing bridle arrangements and emergency tow lines shall be

approved by the appointed Marine Warranty Surveyor.

lix. OWNER will furnish the required transport stability calculations

for the barges no later than sixty (60) days before the Sailaway
Date.

1.8.5 Construction Barge

lx. For the purpose of anchor position monitoring, all Construction

Barges shall be fitted with the following equipment, without
exception, in the anchor control room:

a. Anchor winch television monitors

b. Anchor tension indicators

c. Anchor line out indicators

lxi. Calibration Certificates will be provided for anchor tension

monitors and line out indicators and shall be less than twelve
(12) months old. Should failure of any of the equipment listed
above occur in the field, NIPPON reserves the right to stop
operations until the failure is corrected. Any standby cost
incurred for the entire spread shall be on OWNER’s account.

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lxii. All anchors locations will be fixed by the electronic positioning

system prior to placing anchor on the seabed, summarized in
daily operations report and submitted to NIPPON. If the
Electronic Positioning System becomes inoperative or
malfunctions, all anchoring operations shall cease until the
failure is corrected. Any standby cost incurred for the entire
spread shall be on OWNER’s account.

lxiii. Prior to lifting any anchors form the seabed, the location shall
be surveyed to confirm that the anchor has not slipped.

lxiv. When anchor handling vessels are running or retrieving

anchors, the anchor shall be within 20 meters of the sea surface
before barge winching commences. Cable or pennant wires
shall not be allowed to trail on the seabed.

lxv. As a minimum, the Construction Barge shall have the following

surveying equipment and personnel on board.

a. Electronic positioning equipment accurate to +- 2meters,

complete with the necessary computer hardware to
generate a continuous hard copy X, Y plot of the location
from the electronic signals;

b. OWNER will provide the necessary sets of the above

referenced equipment, to ensure that on each is provided
for the Construction Barge, each Anchor Handling Vessels
and one back-up;

c. Most up to date SK-10 Field layout provided by NIPPON to

OWNER shall be utilized by the survey personnel, and
careful regards should be made to existing and future
facilities shown on drawings; and

d. A minimum of four (4) surveyors and two (2) technicians

are required for a twenty-four (24) hours operation. The
personnel shall be completely familiar with the survey
systems employed and experienced in using same.

1.8.6 Progress Reports and Towing Records

lxvi. OWNER will inform NIPPON on daily basis by telex or fax and
email the progress of the tow(s). Items to be reported include
tow position, average speed, estimated time of arrival, weather
conditions and other events occurring during tow.

lxvii. OWNER will keep complete towing records indicating all events
occurring during tow(s) and shall submit these records to
NIPPON as part of final documentation.

lxviii. OWNER will assume all risk for any time lost due to waiting on
weather during Transportation and Installation of the Mooring
System

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1.8.7 Mooring System Installation and Inspection

lxix. OWNER will be responsible for the complete Installation of the

Mooring System in the field and Hook-Up of the Mooring
System to the FPSO. OWNER shall complete the following:

a. Pre-Installation survey;

b. Preparation of Installation Procedures;

c. Tow-out and Installation of the Mooring System;

d. Installation and positioning of the mooring lines including

tensioning;

e. Lay-up of the mooring lines until arrival of the FPSO on-

site; and

f. Inspection of the installed system.

lxx. OWNER will be responsible for the Sailaway, Sea-fastening and

Transportation of the Mooring System together with any
necessary tools, labour, plant, machinery and consumables, as
required to complete the Offshore Installation. OWNER shall be
responsible for all engineering calculations and will prepare all
required drawings and detailed step-by-step procedures in
accordance with the requirements of CONTRACT Specifications
for the design of Sea-fastenings and any other temporary
WORK that may be required for the Sailaway and
Transportation of the Mooring System.

lxxi. OWNER will participate in a Pre-Sailaway Review and meeting

with NIPPON and OWNER, which shall include an inspection of
the Mooring System. The meeting shall be held at least seven
(7) days prior to the commencement of any Sailaway activity.

lxxii. The Mooring System shall be installed in accordance with the

Installation Procedures developed by OWNER and in
accordance with Classification Society, MWS and NIPPON
Supplied Documentation.

lxxiii. OWNER’s Installation shall include deployment of all off-Vessel

components, load testing of all off-Vessel components and
temporary abandonment of mooring lines ready for FPSO
Hook-Up.

lxxiv. All Installation equipment shall meet the component

requirements and shall comply with standard industry practices
for acceptable handling of mooring components.

lxxv. For Mooring System using driven or suction piles, a test load
shall be determined based on the consideration of eliminating
slack in the grounded mooring lines and detecting damage to
the mooring components during Installation.

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lxxvi. OWNER will complete a final inspection of the installed Mooring

System to ensure that no damage occurred during handling,
that all components are in the proper orientation and that no
kinks or twist exist in the chain.

lxxvii. All piles and mooring legs locations shall be fixed by Electronic
Positioning System. OWNER shall update the SK-10 field map
showing all piles, mooring legs, and any other subsea items
installed by OWNER and submit to NIPPON as one of As-Built
Records.

1.8.8 Mooring and Installation of FPSO.

lxxviii. Upon arrival of the FPSO at the SITE, the OWNER will:

a. Moor the FPSO Hull to the pre-installed mooring lines and

pre-tension the Mooring System, FPSO location
adjustment, final pre-tensioning of Mooring System and
any intermediate steps necessary to complete the
Installation of the FPSO;

b. Check, report and repair any damages incurred during

tow; and

c. Permanently install all “ship loose” items.

d. After Installation of the FPSO is complete, OWNER will

dispose of any and all debris in accordance with local
regulatory requirements where the disposal is to occur.
Debris will be removed by OWNER from the Installation
SITE.

1.8.9 Weather Down Time

lxxix. OWNER will assume all risk for any time lost due to waiting on
weather during Installation of FPSO.

1.9 Logistics Support

1.9.1 OWNER will provide all logistical support required to support all its
offshore activities. The SERVICES shall be provided for the duration
of the WORK at the location involved. This support shall include, but
not be limited to the following:

lxxx. Local Service Base (Shore Base)

a. If necessary, OWNER will provide a suitable shore base

for the support of its offshore activities, along with an
appropriate logistical support organization.

lxxxi. Supply Boat Service

a. OWNER will arrange for adequate supply boat SERVICE

to support its operations prior to First Gas intake.

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lxxxii. Offshore Communications

a. OWNER will provide its own means for offshore

communications during the time the WORK is in progress
prior to First Gas intake.

lxxxiii. Security Services

a. OWNER will provide for maintenance and security of the

FPSO during transit from the SITE to the FPSO SITE.
OWNER will maintain the FPSO in a safe condition during
the tow/Sailaway and ensure all essential support
equipment required for immediate use by OWNER and
NIPPON Personnel are operational once the FPSO has
been moored at the SITE.

lxxxiv. Onshore Medevac Procedures and Services

a. OWNER will develop and implement a Medevac Program

for all Personnel. OWNER will make prior arrangements
for Medical SERVICES that are appropriate for its
requirements.

lxxxv. Crew Boat SERVICE

a. OWNER will provide all offshore marine Transportation,

and standby Vessels required for OWNER Personnel, for
materials and supplies.

lxxxvi. Temporary Construction Camp

a. OWNER may use the FPSO accommodations for

subsistence of its Personnel and administrative purposes
when the accommodation is complete. OWNER will
provide additional accommodations as required for Hook-
Up, Commissioning and Start-up.

lxxxvii. Transportation for Personnel To/From Conversion Site/Yard

a. OWNER will provide its own Transportation for its

personnel and equipment within Malaysia, both onshore
and offshore. OWNER shall not be allowed any air traffic
to and from the SITE without advance approval from
NIPPON and appropriate Malaysian authorities. Obtaining
such approvals shall be the responsibility of OWNER.

lxxxviii. Interface with Other Contractors

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a. OWNER will interface with Other Contractors and provide

support as needed per the agreed NIPPON interface
matrix. OWNER and its SUBCONTRACTOR will ensure
that scheduling of the Installation has been fully detailed
and identified with a clear definition of each party’s
responsibilities and undertakings. OWNER will provide
assistance to Other Contractors including, but not be
limited to:

1. Maintenance of access, egress from all WORK and

accommodation areas, and standards of on-board
housekeeping consistent with safe working practices
and NIPPON requirements; and

2. Logistics support as required.

1.10 Flexible Risers Installation

1.10.1 General

lxxxix. The EPCIC of Flexible Riser is not included in OWNER’s Scope

of Work, and it is a Scope of Pipelines Contractor’s work.
Owner will support Pipelines Contractor on the following scope,
but is not be limited to:

a. All FPSO SITE surveys necessary to obtain design and

other information for all Engineering,
Conversion/Fabrication Engineering, model creation and
testing;

b. Procurement and/or Fabrication and Installation of all

equipment, appurtenances and materials;

c. Installation and Hook-Up of all Instrumentation and Control

Systems;

d. Interface during all Inspection, Testing, and Functional

Testing;

e. The Transportation of the completed structures and

appurtenances to SITE, including Sea-fastening, marine
warranty survey and any requirement for safe passage to
SITE;

f. Installation of Risers and end terminations necessary for

setting the system in place and marked by suitable marker
and/or anchoring system;

g. Offshore Installation, inspection, and testing of system so

that the system is left ready and prepared for flow to/from
the FPSO, including all logistic, Installation Vessel, DSV,
marine Vessels, etc. necessary to complete the WORK;

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h. Any testing Pre-Commissioning and Commissioning,

including but not be limited to hydro-test, underwater
survey, exact location, route survey etc.;

i. The supply and Offshore Installation of all Flexible Risers;

and

j. The hydro-testing of the completed Riser System.

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