COPA Barossa,

FEED Project,
Supplier Briefing
Agenda

2
Agenda

• About MODEC

• Commitment to AIP Plan

• MODEC’s Supplier Prequalification

• MODEC’s Preliminary Opportunities for Australian Industry

Participation

• Use of ICN-NT

3
About MODEC

4
MODEC – General
Overview

Our lives ~ our oceans ~ our future

5
MODEC – General
Overview

6
MODEC – General
Overview

MODEC’s worldwide networks :

7
MODEC’s Commitment to AIP
Plan

8
MODEC’s Commitment
to AIP Plan

MODEC is committed to supporting the ConocoPhillips Australian

Industry Participation (AIP) Plan to ensure all Suppliers are given a
Full , Fair and Reasonable Opportunity to participate in the
development of the ConocoPhillips Barossa Project.

MODEC will comply with all the requirements as stated in the

ConocoPhillips AIP Plan and the Australian Jobs Act 2013 throughout
the project and for all future Projects within the territories of Australia.

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MODEC’s Supplier
Prequalification

10
MODEC Supplier
Prequalification

Supplier Prequalification Summary and Background

The following slides explain the process through which Suppliers and Sub-suppliers are
prequalified to bid / supply products for MODEC International, Inc. and / or its affiliates
(henceforth the “Company”) For FPSO proposals and projects that meet Company
specifications, Quality standards and Compliance requirements.

Company facilities must meet minimum Industry standards to ensure that Health, Safety,
Environmental, Quality, Operations, and Compliance goals with the applicable laws are
attained. Standard procedures are used to communicate the minimum requirements within
the Company as well as to Suppliers and Contractors. This document is a Company
standard procedure.

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 MODEC Supplier
Prequalification
Prequalification – MODEC’s Tiers of Vendors.
Level Type of Order Requirement for approval and award to supplier
Company Purchase Orders Must be on the Company's ASL, otherwise approval must be obtained
Tier 1
(Critical Components List) (technical, financial, QA/QC, and HSE (where applicable).
Sub-suppliers for very CriticalMust be on the Company's ASL. If not, then approval must be obtained
Tier 2
sub-orders (technical, financial, QA/QC, and HSE-where applicable).
Company preference is to name Sub-suppliers on the Company ASL
subject to Supplier due diligence on the basis of compliance, but the
project may use sources outside the Company ASL at the project level
based on the following:
A Company assessment showing the qualification/assurance of the
Supplier shall be completed by the project either by a desk review or site
Sub-suppliers for Critical Sub- audit performed by the Company’s QA/QC and a technical review
Tier 3
orders confirming that the equipment/material is fit for the application. The
completed Supplier audit form shall be raised by the Company’s Project
QA/QC Manager with input provided by the Company’s Package
Engineer regarding technical compliance / fit for the application. The
completed form shall be kept by the Project Team in accordance with
project-specific filing procedures and shall be uploaded to the
Company’s SharePoint site by the Company’s Project QA/QC Manager.
Supplier and Sub-suppliers for
lower level items not defined as Free to award to Supplier of choice subject to Supplier due diligence on
Tier 4
very critical or Critical Sub- the basis of compliance.
orders
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MODEC Supplier
Prequalification
Supporting Data Required for Prequalification & Assessment Criteria
Type of
Supporting Data Required
Assessment
Brochures, Detailed Relevant Project Experiences (include Project Name and Description, Product/Equipment
Description, Year), End-user Reference for satisfactory performance of equipment/product, Information regarding
Technical the specific application of equipment, Information regarding Supplier’s ability to provide local content in countries,
Supplier relationship with Prime Sub-suppliers for the relevant product component (include technical information,
component usage and past performance of sub-supplier), Engineering Manpower Chart, Organization Chart

Procurement Procedure, Supplier Qualification Procedure, Supplier Performance Measurement System/Procedure,

Commercial
Qualified Supplier List

Consolidated/audited financial reports for the past 3 years , Dun and Bradstreet report and/ or equivalent financial
Financial
report

QMS Manual, Valid ISO certification for category of supply from an accredited certification body, Other Certifications
for Product( e.g., ASME, API) , Organization Chart, completed Company Questionnaire (Supporting data may be
Quality
accepted in lieu of the questionnaire if the Reviewer finds the data provided is sufficient), Details of Supply to
MODEC Projects ( If applicable) , Details of Project, Client in the relevant industry in the past 3 years

Current 14001 Certificate, HSE Policy, etc. (This is required for packages that include fabrication or critical
HSE
components that pose an HSE risk to personnel), OSHA 18001 Certificate

Compliance Executed Supplier Due Diligence Questionnaire Form 13

 MODEC Supplier
Prequalification

Suppliers prequalification levels determination are based on Critical Components List.

Not Applicable – Does not apply to the specific category of Supply or Supplier
Acceptable – Acceptable assessment will apply in the following situations:
- The Supplier responded to questions/clarifications and is deemed compliant with the Company’s
HSEQ Management System and Standard Operating Procedure requirements.
- The Supplier is deemed to be a satisfactory source of supply for goods and/or services.
Unacceptable – Unacceptable Assessment will apply in the following situations:
- The Supplier has not met the Acceptable level.

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 MODEC Supplier
Prequalification
Supplier Vetting Levels

Requirement for approval and award to

Level Type of Order
Supplier

Domestic and foreign Suppliers that supply standard and usual

Level 1 products and other customary goods and services. Must be vetted and approved with level 1 due diligence

Suppliers who are located or operate in a country considered

by the MODEC Group to be high risk or listed on Transparency
International’s Corruption Perception Index (“CPI”) with a CPI
score of 49 or lower; require an advance payment, a letter of
credit and / or large credit limit; are known to be owned or
Level 2 affiliated with a Public Official or customer; engage in business Must be vetted and approved with level 2 due diligence procedure
development, marketing or other sales related functions; have a
known change in senior management, ownership and / or
business structure since the last date of completed due
diligence; or are otherwise considered a significant risk.

Supplier who is reasonably likely to interact with government The requirements in the Group Third Party Intermediary and
Level 3 entities or Public Officials on the MODEC Group’s behalf. Business Partner Policy must be met

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MODEC Supplier
Prequalification
Supplier Compliance Approval Levels
Per the MODEC Group Accounts Payable Supplier Vetting Policy, the following approval
levels:

Active Authorized Vendor – A supplier that has been properly vetted according to the
Vendor Vetting Policy

Approved for Vendor Master File Set–up – A supplier is not an active Authorized Vendor,
but proper vetting has occurred and appropriate approvals are documented from the Supplier
Prequalification Procedure perspective

Additional Due Diligence Required – A supplier is under review and currently does not
meet the criteria to be added to the Vendor Master File

Rejected – A supplier has submitted their Vendor Due Diligence Questionnaire and Red
Flags or other compliance risk exist whereby the CCO rejects the Entity from being a Vendor
on behalf of the Company

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Preliminary Opportunities for
AIP

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Preliminary
Opportunities for AIP
Opportunities for Supply of goods and Services
A Goods A Goods
A.1 Paint A.19 Turbo Expander - Compressor
A.2 Anodes A.20 MEG Unit
Offloading Hose Reel and Tandem Mooring A.21 CO2 Removal System
A.3
System A.22 CO2 Compressors
A.4 Offloading Hose A.23 Mercury Removal Beds
A.5 Accommodation HVAC System A.24 Thermal Oxidizer
A.6 Essential Generator A.25 Chemical Injection Skid
A.7 Fire Water Pump A.26 Waste Heat Recovery Unit
A.8 Cargo Pumps (Electric Motor Driven) A.27 Nitrogen Generator Skid
Submersible Deepwell Pump Package A.28 Gas Turbine Generator Package
A.9
(Chemical Pumps) A.29 Electrochlorinator Skid
A.10 Inert Gas Generator Package A.30 Instrument / Utility Air Compressor Package
A.11 Cargo Valves & Others (Hydraulic Remote) A.31 Miscellaneous Pressure Vessels
A.12 Deck Cranes A.32 Pumps (ASME/ANSI)
A.13 Thrusters A.33 Filters and Coalesces
A.14 Produced Water Treatment System A.34 Field Transmitters
A.15 Flash Gas Compressor A.35 Crude Oil and Gas Metering System
A.16 LP Compressor A.36 Facility Control System
Gas Dehydration and TEG Regeneration
A.17
System
A.18 Export Gas Compressors (Centrifugal) 18
Preliminary
Opportunities for AIP
Opportunities for Supply of goods and Services
A Goods B Services
A.37 Machinery Condition Monitoring System B.1 Engineering and Procurement
A.38 Control Valves B.2 Shipyard Services
A.39 Switching Valves B.3 Geophysical Surveys
A.40 Shutdown, Blowdown & On/Off Valves B.4 Skid Fabrication
A.41 Subsea HPU, SEDV & WCR Panel B.5 Offshore Installation (Mooring)
A.42 Telecommunication System
Inmarsat Ka-Band / C Ku-Band V Satellite
A.43
System
A.44 E-house with Switchgear
A.45 E&I Cables
A.46 Light Fixtures for Topside Modules
A.47 Mooring System

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Industry Capability Network &
Time Frame

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 Industry Capability
Network & Time Frame

Industry Capability Network

MODEC is committed to using the Industry Capability Network (ICN) to assist in identifying
capable Australian companies for consideration and inclusion in MODEC’s PQ.

We will use ICN Gateway as the primary mechanism for delivering relevant contract and
procurement information to Australian Industry including posting EOI’s for RFQ packages.

Time Frame of RFQ packages

As Current design is ongoing equipment list are still being developed and will continue to
be developed.
The RFQ packages are likely to be posted on ICN Gateway for EOI's (i.e. prior to issue of
RFQ's).
Distribution of RFQ packages are expected in Late October to Early November of 2018

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Industry Capability
Network & Time Frame

MODEC’s Contacts – AIP Program

FEED EPCI – Ovie Beltran (Ovie.Beltran@modec.com)

FEED Ops & Maint – Hari Hananto (Hari.Hananto@modec.com)

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Q&A

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