Oil & Gas

Kick-off Meeting Report: KOG 09NL005 Author:

Projects Department
Stef van Dillewijn

Distribution: Akakus Oil Operation (AOO) Krohne O&G (KOG) 16. April 2009
Abdula Owen Stef van Dillweijn
Alejandro Rodriguez John de Viet
Hassan Elhamdi Paul Hodgkinson
Omar Massoud Waleed Aborawi
Anwar Mohamed
Dave Moore
Harry Dukes

Subject : NC-115 Zawia Terminal Export Metering Station Replacement

Item Description Action

1 Introduction & Communication

Focal point and project manager Krohne Oil and Gas;
Stef van Dillewijn,
tel: +31-76-7112122
e-mail; s.v.dillewijn@krohne-oilandgas.com

All correspondence shall be addressed to him and CC John de Viet

(j.d.viet@krohne-oilandgas.com)

Details Akakus
Anwar Mohamed, project manager.
All correspondence shall be addressed to him and CC Alejandro Rodriguez
(arodriguez@akakusoil.com)

For review/For approval documentation to be submitted as 3 hardcopies and 1

KOG
softcopy by e-mail.

Monthly progress report to be submitted as per KOG format/template. If alterations

are required Akakus will comment/mark-up. A second progress meeting is not KOG
foreseen.

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Projects Department
2 Technical Comments & Queries
AOO
Akakus will issue updated preferred vendor list

KOG explained the difficulties executing water draw on such large volume provers.
Akakus accepted the proposed calibration method using a master meter in
combination with a water draw reference can. Both procedures are in full compliant
with API guidelines and common practice in the Oil & Gas industry. There are no
cost implications as the master meter was already included in the proposal from
Krohne.

Akakus will review & return KOG documents submitted with KOG transmittals TM- AOO
005-09NL005, TM-004-09NL005, TM-003-09NL005 and TM-002-09NL005 (copies
handed over to Akakus during meeting) next week.

Technical Queries as submitted 26/3:

Akakus expects prover capacity to cover the full flow range Altosonic V, being
376.800 bbl/day. KOG will update prover volume calculations and design to suit KOG
this requirement.

Akakus confirms one quick closure at prover (as quoted) is sufficient.

Vent valve may be installed on prover barrel instead of on the quick closure.

Tag of thermal relief valves will remain; PSV

Akakus confirms the requirement of 2” flanged thermowell nozzles

Akakus confirms the acceptance of the FM component approval of the large size
US-built 4-way diverter valve.

Hydrotest on assembled prover is acceptable if the welds are unpainted. After

hydrotest the welds shall be touched up.

As per KOG offer the comm. Spares were expected to be included. KOG agreed to KOG
absorb the Euro 6,150.- costs and will supply free of charge. KOG
Akakus will provide details about nozzle size at note 6 of P&ID, while returning this
reviewed document.
AOO
Technical Queries as submitted 12/3:

Corrosion allowance is not applicable, read 0 mm.

API 5LB piping material for the prover is acceptable, however wall thickness to be
confirmed by strength calculations.

10% NDE is compliant with spec and hence acceptable

Single TRV is sufficient

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 Oil & Gas

Monoblock instrument isolation valves are acceptable

Projects Department
3 Flow Control Skid
It has be discussed and in principle agreed to integrate the separate flow control
skid into the metering skid. This has several advantages such as;

1) Cost reduction for not supplying 6x 12” 150# gate valves

2) Cost reduction for not supplying the headers and base frames

3) From the above cost reductions, Krohne will be able to supply 4 new
butterfly flow control valves fully integrated in the metering skid.
rd
4) Site work will be significantly less as the 3 skid is already integrated and
fully wired/tested into the metering system

5) Cost reduction due to lesser interconnection pipe work and smaller slab
requirements on-site.

6) The FCV’s will be installed downstream each flow meter which enables the
operator to control the flow through each meter run.

7) Operation metering skid becomes fully compliant with API guidelines/

8) Flow control through prover can be regulated with these per stream
installed FCV’s which allows deleting the FCV and 2x 12” Gate valves
downstream the prover. For safety and maintenance reasons a new 16”
Gate Valve will replace the above valves.

Krohne to provide detail cost break down of the above mentioned reductions and KOG
new equipment and functionality (also in relation with the existing loading pumps)

4 Control System Functionality

The metering system is used for BATCH loading operations and the Metering
System Supervisory Computer (MSSC) shall include batch start/stop function and
Batch report printing. This is currently not included in the RFQ. Batch control,
loading plans etc are all done manually.

The auto sampler is a stand alone unit and requires no control from the MSSC.
Manual. The MSSC shall allow manual entering of the BS&W value.

The density transmitter is a stand alone unit and requires no control from the
MSSC. The MSSC shall allow manual entering of the density value.

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 Oil & Gas

Projects Department
5 Bank Guarantees
Akakus clarified not to accept any bank guarantee charges from any vendor,
where KOG explained based on their experience in worldwide trading not to expect
these costs either. In view of the long and positive relationship with Akakus, it has
agreed that KOG accepts the additional costs of around Euro 11k, where Akakus
agreed to expedite payment (upon receipt of the corrected BG) to minimise further
delay in processing the invoice.
nd
For the 2 down payment (@ FAT) KOG will consider the possibility to postpone
this invoice to delivery and hence avoid issuing a second BG.

6 Site Visit

During site visit no dedicated metering skid lighting was observed, on this basis it
was agreed not to include additional skid lighting in the Krohne scope of supply. KOG

During site visit no dedicated sunroofs were observed, on this basis it was agreed
that Krohne will include sunroofs at their own recommendation (implying local roofs
above critical instrumentation)

Auto Sampler and density meter are installed and running. The take-off is
upstream and outside current metering skid boundaries. The take-off nozzles will KOG
be removed from P&ID. No action required from Krohne.

Sphere hoist as per existing system to be included in the Krohne scope of supply.

Water draw unit will be permanently installed.

Colour base frame, black. Colour piping; white. Colour equipment, manufacturer
standard.

Various options were discussed how to temporary by-pass (without field welds) the
existing metering system. These options will be further discussed between KOG
and AOO. After installing this temporaty by-pass, the removal of the existing
system and installing of the new one will not interfere with regular operation. After
testing the temporary by-pass will be exchanged by interconnection spools to the
new system.

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