Equipment Storage and Preservation Meeting

MoM # 11 24th January 2008

Attending:
1) Dave Outhwaite: EGP3 Lead QA Engineer – l9esc1087@chevron.com
2) Karim Sarhan: EGP3 E & I Inspector – l9esc1341@chevron.com
3) Nalin Jha: HHI Electrical QC Engineer – jha_nalin@rediffmail.com
4) Solomon Okobara: HHI Mechanical Engineer – solomon1@hhi.co.kr
5) Jim Yamas: EGP3 Construction Engineer – L9Esc1111@chevron.com
Not attending c.c. for info:
Nigec EGP3 Onshore Const MGR – l9esc991@chevron.com
EGP3 Site Construction Manager – l9Esc1250@chevron.com
H.S. Kim: HHI E&I Manager – kimhs@hhi.co.kr
B.W.Lee: HHI QAQC Manager – bwlee@hhi.co.kr
S.R.Park: HHI Logistics Manager – srpark@hhi.co.kr
Williamson, N V Vince – nvwi@chevron.com
Y.G. Park: HHI Mechanical Engineer – hhipark@hhi.co.kr
DelGrego, Gary T – gtde@chevron.com
Webb, Joseph – webj@chevron.com
C.H. Chang: HHI E & I QC Engineer – chuhoan@hhi.co.kr
Y.I.Lee: HHI Electrical Manager – bytylee@hhi.co.kr
Agenda Items:
- Control List of all equipment designated for climate controlled storage/preservation.
o Equipment type/description
o Storage/preservation requirements

Action: Y.G.Park
- Liaise with HHI Engineering Seoul for detailed list of all equipment in shipment, identifying
contents of each box. In progress, complete by 12-Nov.
Master List completed and submitted for review.
- Develop Master List for control of received items, list to specify the manufacturers
recommendations for storage/preservation conditions for each item. In progress, complete by 12-
Nov. Each item to be identified: stored outdoors, stored indoors, or stored climate controlled,
Completed.
-All Solar items identified for storage indoors or outdoors per manufacturers recommendations.
HHI confirmed no requirement for climate controlled storage for any items of Solar equipment,
HHI Preservation Plan for Solar Equipment is to be revised/re-submitted to reflect confirmed
requirements. Ongoing -Preservation Plan still to be revised, awaiting input from HHI Seoul. 6
Dec. update - Preservation Plan to be re-submitted by 14 Dec. 13-Dec update – preservation
requirements clarified with Solar Rep at site, ancillary equipment such as Control Consoles and
VFD’s shall be kept in climate controlled storage, these items shall be placed in Sub-station 200,
which is A/C’d 27 Dec update – ancillary equipment has been placed in S/S-200. Preservation
Plan to be submitted by 7 Jan 08. 3 Jan. update – not actioned. 10-Jan update: Revised
Preservation Plan to be completed by next meeting. Jan-17 update: HHI Confirm 12 boxes stored
in S-200 contain all the items recommended by Solar Rep for AC storage. Complete.
Action: Y.I Lee

Page 1 of 6
 Equipment Storage and Preservation Meeting

MoM # 11 24th January 2008

Printed circuit boards and modems require special consideration to prevent moisture and
condensation. Discuss with Barry Hutton and Solar Rep to develop recommendations, awaiting
Solar Representative at site. 6 Dec. update - Solar rep from Port Harcourt ETA Site 10 Dec. 13-
Dec update – As above, Control Consoles and VFD’s shall be placed in SS-200 for climate
controlled storage. 27 Dec update – actioned. Complete.

24-Jan. update: Solar packing/preservation seals will be broken as GTG equipment is set on
foundations per installation schedule. Preservation procedure for the period after installation on
foundations and before full operation is to be clarified.
Action: Solomon Okobaro
Investigate requirements/recommendations, report by next meeting.

- Identify location and storage conditions for each item of listed equipment.
Locations and storage condition identified.

Action Y.I.Lee
-2 x Oil Transformers currently stored uncovered on soft ground in Equipment lay-down area.
Oil Transformers to be installed on foundations or stored on firm level base, solidly connected to
ground, oil level and nitrogen pressure to be verified per procedure, transformers to be covered
with dust protection only. 6 Dec update – Action to be commenced 6 Dec. 13-Dec update –
transformers have been installed on temporary base, ground rods have been installed, oil &
nitrogen levels still to be checked. 27 Dec update – S/S-200 2 x TXformers S/S-100 4 x
TXformers to be installed on structure, schedule TBA. Levels to be verified after installation.
3 Jan update - No change. 10-Jan update: Still no schedule for installation. Oil level and nitrogen
pressure checks shall be carried out in storage area by next week. 17-Jan update: Oil level and
nitrogen pressure checks carried out but not recorded, Karim and YI Lee to review and verify.
HHI advise 6 x oil transformers will be installed next week. 24-Jan. update: Installation of six
transformers is in progress. Two will remain in storage area, checks have been completed, N²
pressure recorded low on one transformer.
Action: Nalin/YI Lee
N² re-charge this week to specified preservation pressure.

- Verify commencement date of Solar equipment 24 month warranty period.

HHI advised warranty start date 27-Oct.2006, confirmed by e-mail from Solar. Copy of Solar
confirmation to be submitted for CNL review. Warranty commencement date 27-Oct.2006
verified by Solar ‘Notification of Readiness to Ship’ document.

- Terms and Conditions of Solar warranty to be fully understood and applied.

Action: Y.G. Park
Review terms and conditions of Solar warranty. Y.G. Park to discuss and agree with Barry
Hutton. 6 Dec update: no change. 13-Dec update: Barry now on leave, action is outstanding. 27
Dec update: await Barry’s return. 10-Jan update: Barry back from leave, to resolve with YG Park.
17-Jan update: Complete.

Page 2 of 6
 Equipment Storage and Preservation Meeting

MoM # 11 24th January 2008

- Name/position of individuals with responsibility for storage/preservation of equipment e.g.

Coordinator/Focal Point, Storekeeper, QC Inspector.
QC Inspector with responsibility for monitoring compliance with storage and preservation
requirements is confirmed Mr. C.H. Chang.
S.R. Park (Logistics Manager) has been delegated responsibility for coordinating all equipment
preservation activities including transportation and customs clearance.
HHI designate responsible for Sulzer equipment preservation, includes keeping preservation
check-list during temporary storage at Warri is M.L. Kim – Logistics Engineer (Warri).

Action: Y.G. Park/H.S. Kim,Y.I.Lee

Checklists for Fired Heaters to be weather protected and attached to equipment external surface
for periodic update. 13 Dec update – prepared checklists to be submitted to CNL for review. 27
Dec update: Mechanical checklists developed, await E&I checklists. 10 Jan update – No change.
Two E&I checklists remain outstanding, discuss with HHI Seoul, expedite urgently. 17-Jan
update: Remaining E & I checklists have been drafted and issued for use in Escravos, pending
formal issue by HHI Seoul. 24-Jan.update: All checklists now complete, to be confirmed by QC
audit.

Action: B.W. Lee /C.H. Chang

Responsibilities for maintenance of checklist requirements for all equipment shall be identified in
Quality Management Plan for Preservation of Equipment. 6 Dec update – Preservation QMP
updated, awaiting HHI Construction Group approval of checklists. 13 Dec update – No change. 27
Dec update - Mechanical checklists: partial scope developed, await E&I checklists.
3 Jan update – No change. Jan-10 Update: Completed. Individual responsibilities identified in
QMP (outstanding checklist issues dealt with below). Complete.
- Manual of Storage/Preservation Procedures and Manufacturers Recommendations, issued
to responsible persons.
Action: C.H. Chang /B.W. Lee/Y.I.Lee/Y.G.Park
Review HHI Quality Management Plan for Special Processes, and ensure Equipment Preservation
content is adequate and complete. In progress, complete by 15-Nov. Still in progress, S. Rose to
review and advise, complete by 18-Nov. Still in progress. CNL clarified that the Quality
Management Plan should list all relevant preservation plans, check-lists and procedures, also
identify individual responsibilities and allocated storage facilities. 29-Nov update - QMP for
Equipment Preservation submitted for review. 6 Dec update: QMP reviewed & commented by
CNL returned and revised by HHI, awaiting approved checklists. 10-Jan update: still awaiting
completion of Mechanical checklists and two outstanding E&I checklists. HHI Discipline
Managers shall request urgent action by HHI Seoul, alternatively develop remaining checklists
locally in Escravos, following vendors recommendations. To be closed out by next week. Jan-17
update: All checklists now in place, QMP is complete, Complete.

Prepare a suite of relevant procedures, instructions and recommendations for controlled issue to
all persons with allocated responsibilities. In progress, complete by 15-Nov. Still in progress,
S.Rose to review and advise, complete by 18-Nov. Still in progress. CNL clarified: a Preservation
Procedure Manual including all the preservation plans, checklists and procedures listed in the

Page 3 of 6
Equipment Storage and Preservation Meeting

MoM # 11 24th January 2008

Quality Management Plan should be issued to each person with responsibilities defined in the
Plan. Nov-29 update, still in progress awaiting Construction disciplines input. 6 Dec update – still
awaiting Construction disciplines input. 13 Dec update – in progress. 27 Dec update - Mechanical
checklists: partial scope developed, await E&I checklists. 3 Jan update – No change. 10-Jan
update: Checklists remain outstanding, refer previous action item. To be closed out by next week.
17-Jan update: All checklists now in place, Manual of Preservation Procedures still to be issued.
24-Jan.update: Still to be issued.

Audit and review implementation of procedures. Awaiting preparation of equipment master list.
Master list complete, preparation of audit checklist to be commenced, S. Rose to review and
advise, complete by 20-Nov. Still in progress. Audit to be scheduled following completion of
Quality Management Plan and issue of Preservation Procedure Manual. Nov-29 no update. Dec 6
update – Awaiting approved checklists. 13 Dec update – still awaiting checklists. 27 Dec update –
still awaiting E&I checklists. 3 Jan update – No change. 10-Jan update: Checklists remain
outstanding, refer previous action item. To be closed out by next week. 17-Jan update: Audit
schedule to be finalized and presented by next week. 24-Jan.update: Audit schedule presented for
CNL review. QC Audits on Equipment Preservation to be commenced first week of Feb-08.
- Details of contact/liaison arrangements with Solar Representative for monitoring customs
inspection and warranty protection.
Action: John Munday - CNL
HHI advised no service contract agreement is in place with Powell switchgear supplier, this is
currently being negotiated. Dec 6 update – RFI submitted to CNL to negotiate with Powell.
Dec 13 update – John Munday, CNL to follow up. Dec 27 update - await John Munday’s return
from leave. 3 Jan update: No change. 10-Jan update: Service agreement not required for
preservation phase, commissioning only. See previous comment below, highlighted yellow.

Action: Y.G. Park

Investigate terms of service agreement with Solar. CNL requires assurance the terms of
agreement confirm the availability of qualified Solar Rep within the time-frame limitations
imposed by the Solar warranty. HHI advised services of Solar Rep at PH is available under
current service agreement. Confirmation required from Solar: Is Rep available for travel to
Escravos within warranty timeframe limit if customs inspection breaks equipment seals?
CNL advised RFI will be submitted today 15-Nov for damage observed to box 1C, immediate
involvement of Solar Rep is required. No response to RFI.
HHI update: Solar Rep has been informed of box damage and now requires to verify on site. HHI
confirmed terms of current agreement with Solar do not permit Solar Rep travel to Escravos at this
time. HHI Procurement (Ulsan) currently re-negotiating with Solar. 27 Dec update – actioned,
completed.

Action: Y.G. Park

Contact HHI procurement, urgent requirement for Solar Rep at site in Escravos. With HHI
agreement, Barry Hutton proposed to contact Solar Rep in PH to facilitate earliest possible move
to Escravos. Commercial issues still not resolved; service agreement not yet in place. Barry
Hutton to discuss with C.H. Park. Dec 6 update – Solar rep ETA Site Dec 10. 13-Dec update,
Solar rep at site PM, site inspection of damage crate revealed a small tear in the sealing bag, this
Page 4 of 6
Equipment Storage and Preservation Meeting

MoM # 11 24th January 2008

has been repaired and no further action is required. Full report from the Solar rep to follow. 27
Dec update – Solar Rep. report issued – completed.

Investigate status of Powell service agreement. CNL requires assurance the terms of agreement
confirm the availability of qualified Rep within the time-frame limitations imposed by warranty.
HHI advised Powell Rep has been requested to mobilize to site 17-Nov. Service agreement not
yet signed, awaiting CNL response to RFI ONS-EPC-HHI-CNL-R-1586 0Q issued 6-Nov. HHI
Still awaiting CNL response to RFI. HHI suggests there is no requirement for Powell Rep to be at
site during storage period of equipment. CNL requires assurance this would not compromise
Powell warranty.

Action: Y.I.Lee
Review terms and conditions of warranty. Confirm with Wesco exactly when the presence of the
Rep is required at site. Telecon CNL/Wesco/HHI confirms that Powell Rep is advisable, but not
essential, at site. Validity of warranty is assured subject to full compliance with all requirements
of preservation plan/procedure. 13-Dec update - Completed
- Power supply and arrangements for preservation of S/Station buildings.
Freshening charge is required for batteries within 90 days to comply with warranty conditions.
Considering loading, shipment, clearance and unloading, estimate warranty timeframe will expire
early December. Sub-station buildings unlikely ready and alternative arrangements required.
Action: Y.I. Lee
Plan and prepare contingency temporary power supply to A/C’s and space heaters in lay-down
area. In progress. Still in progress. HHI advised battery freshening charge is due 6-Dec and S-
100 structure expected complete by mid-December. HHI to finalize plan, assure availability of
power supply and capability to charge batteries by 6-Dec. Karim to liaise with Y.I. Lee, review
proposal and provide guidance. HHI submitted Installation & Preservation Plan for CNL review.
Feed-back next meeting. S-100 schedule significantly behind, CNL is concerned power supply
must be available by 6-Dec. CNL require all HVAC and space heaters to be connected. 6-Dec
update: Battery charging to commence on S-100 today. 13-Dec update: S-100 battery charging
completed, S-100 A/C Installation expected <7days, pending skid and building installation, S-200
A/C Installation completed, S-200 preparing for battery charging. 27-Dec update: S-200 battery
charging completed, S-100 building and walkways erected 26 Dec, HVAC to be operable on
temporary power ASAP following stairs & access way installation. 3-Jan update: Scaffolding in
progress for access. 10-Jan update: Total 3 out of 14 HVAC units currently installed in S-100,
only 1 operating. CNL requires all units to be installed in S-100 and operated as necessary to
maintain stable temperature conditions during preservation phase. HHI to confirm. 17-Jan update:
Total 16 HVAC units installed in S-100, of which 3 are continuously operating with sufficient
capacity to maintain temperature control during preservation. Jan-24 update: HHI requested to
advise maintenance schedule for HVAC units in use during preservation phase.

CNL informs that building S/S-200 was observed leaking through 2 x door seals.
Action: Y.I. Lee
Install weather protecting canopies over S/S doors. 13 Dec update – Same. 27 Dec update – same,
in addition all building joints shall be correctly sealed at roof walls and floors. 3 Jan update – No
Page 5 of 6
Equipment Storage and Preservation Meeting

MoM # 11 24th January 2008

change. 10-Jan update: HHI advised this action is completed for SS200. Shall be checked during
or after heavy rainfall. 17-Jan update: Pending check during or after heavy rainfall, this action is
now complete.

Action: Mike Deere/Y.I. Lee/B.W. Lee/Y.G. Park/C.H.Chang

CNL requested HHI to prepare an Equipment Preservation Register, containing all equipment,
static and rotating and detailing all preservation requirements and inspection frequencies, in order
to ensure that we have the capability to measure progress for checklist development, ensure that
all critical preservation activities are captured and mitigate the chance of duplicated checklist
activities. Suggestion from CNL was to prepare an A3 size M/S Excel spreadsheet in landscape
format, with the equipment in rows and the preservation, storage & inspection frequency criteria
in columns. 27 Dec update – still to be actioned. Specific mechanical checklists are being
developed. 3 Jan update - CNL once again stressed that development of the Equipment
Preservation Register is critical to the development of the checklists in order to ensure that we
have the capability to measure progress for checklist development, ensure that all critical
preservation activities are captured and mitigate the chance of duplicated checklist activities. CNL
Lead QA Engineer agreed to develop a draft format to expedite the process, (draft to be prepared
by 4th Jan). 10-Jan update: Draft register completed and passed to HHI for development.
Mechanical Equipment Preservation Register has been completed and is ready for use, E&I
Equipment Preservation Register still under development. To be completed and ready for use by
next week. 17-Jan update: Mechanical Equipment and Electrical/Instrumentation Equipment
Registers both now complete and ready for use. Complete.

Action: Y.G. Park / B.W. Lee

Preservation Checklist for Cold Boxes to be expedited. 27 Dec update – Checklist shall be
developed by 3 Jan 08. 3-Jan update: Draft copy of checklist tabled during this meeting, soft copy
to be sent to CNL Lead QA Engineer for circulated review. 10-Jan update: Action Completed.

Jan-24 New Item: CNL has issued an RFI regarding salt water contamination of cooler equipment
due to damaged tarpaulins during ocean transit. Response from HHI due 22-Jan. not yet received.
Action: Solomon Okobaro
Review/respond by next meeting

Jan-24 New Item: Scaffolding is in progress in support of piping activity on vessels. Careful
coordination required, Mechanical Group to ensure no vessel is opened without authorization.
Action: Solomon Okobaro
Review/advise by next meeting

FOLLOW UP MEETING TO REVIEW PROGRESS:

DATE – Thursday 31st January 2008
TIME – 09:00
LOCATION – CNL Lead QA Office.

All Attendee’s take note, your input and update is required.

Page 6 of 6