VIETNAM NATIONAL OIL AND GAS GROUP PETROVIETNAM TECHNICAL SERVICES CORPORATION 5" Floor, PetroVietnam Tower, 1-5 Le Duan Street, District 1, Ho Chi Minh City, S.R Viet Nam ‘Tel: (84.28) 39102828 ; Fax: (84.28) 39102929; Website: www.ptse.com.vn Sa FACSIMILE TRANSMISSION To Nghi Son Refinery & Petrochemical LLC. Fax +84 .24 37726427/ +84 23 78738557 Attn: Mr, Mitsuru Yamanaka — Chief Executive Officer Ce : Mr, Turki Al-Ajmi— Deputy Chief Executive Officer Mr. Dinh Van Ngoc ~ Deputy Chief Executive Officer Mr. Seiichiro Fguchi — Acting Division Manager, Operation Division Mr. Phan Thanh Hai — Acting Manager of Section 6, Operation Division Mr. Ho Khai Hoan — Procurement Section Manager From PetroVietnam Technical Services Corporation (PTSC) ce Mr. Phan Thanh Tung - PTSC President and CEO Ref 40 'PTSC-TNS Date: October 19", 2017 ‘Total no. of Page: 02 pages + attachment ( CF pages) Subject: Maritime Services Project - Extension of delivery date of New-built Vessels Dear Sir, First of all, PTSC would like to express our sincere thanks to you and NSRP for having supported PTSC in implementation of the Project and wish to receive your continued supports to successfully complete the Contract with NSRP. [As you are aware the status of new-built Vessel progress that mentioned in our recent correspondent with NSRP, our approved shipbuilder Triyards SSY and its affiliates/parent company have been facing with financial difficulties due to the downturn of oil and gas industry. Such financial difficulties seriously affect the schedule for completion and delivery of the Vessels by Triyards SSY fas required in the shipbuilding contract with PTSC. It has been such a long time since the shipbuilding contract was signed yet Triyards SSY had not been able to find any acceptable banks to finance for the 8 Vessels building Project and as a result PTSC was unable to proceed with any payments for them to execute the Project even though Triyards SSY had proposed to subcontract to Triyards SMV (Triyards Strategic Marine Vietnam) who is an associated company of Triyards SSY, with 100% assets, equity belonged to/under Triyards Holdings Limited and deemed to have capabilities and experiences in EPC shipbuilding, better financial position and available credit line With BIDV to finance for 8 Vessels building Project for PTSC. However, BIDV finally failed to provide required services for the Project at the last step due to its non-compliance with the Project cash flow management method which was already agreed by other parties. Basing on that, PTSC was not able to make payments to Triyards SSY/SMV to execute the Project and accordingly, ‘Triyards SSY/SMV could not make payment for its suppliers. Furthermore, due to its own discretion, Triyards SSY/SMVeeased the execution of whole work for the Project from 18 Sept 2017. ‘As a contingency and back-up plan, PTSC considered the option to rebid for selection of another capable shipbuilder to continue the building Project in case Triyards SSY/SMV could not find any Page 1 of 2 BM.HD.PTSC.VP.01.24-15/7/2014 TWbanks to support on the finance capacity. With this option, we anticipated that the progress of building the vessels for NSRP would take 14-16 months or longer as the time being because of the new law enacted and effective as of 01" July 2017 for selection of the shipbuilder which is more stringent, complicated and time-consuming. However, given the strong technical capability of Triyards SSY/SMV in shipbuilding practice, PTSC could not find any better choices to build the Vessels and make delivery to NSRP as soon as possible, earlier or with minimal delay than continuity with this shipbuilder in case they can find a bank to support on their project financing. Furthermore, Triyards SSY/SMV also completed about 18% of the Vessels building using their own resources. Therefore, PTSC had tried our best to support Triyards SSY/SMY to work with several banks in Viet Nam to find a suitable bank to support them with this Project. On 27" Sep 2017, we were informed that Orient Commercial Joint Stock Bank (OCB) finally accepted to finance for the whole Project and after thoroughly studied on catch-up plan from Triyards SSY/SMV and further requests for due undertakings from OCB, Triyards Holdings Limited and Triyards SSY/SMV to assure the finance capacity and continuity for the Project until its completion, PTSC recognizes that we have no better choice but suppose to continue the building of Vessels with Triyard SSY/SMV as originally accepted by NSRP. PTSC also made Advance Payment for Triyards SSY/SMV to resume the NSRP’s Vessels building works for a week to this date In order to support PTSC and to ensure the new-built Vessels’ availability for NSRP’s operation at the soonest, PTSC would like to propose the below for NSRP’s kind consideration and approval: - Extension of the deadline for delivery of all new-built Vessels to 31" October 2018 instead of 1 December 2017 for 7 Vessels and 17" July 2018 for the SPM Line & Hose Handling Vessel. The extension of delivery date is due to difficulties as explained in this letter herein and in shipbuilding works caused by abnormal and long-remained of low crude oil price. Detailed delivery of each Vessel is as attached herewith for your perusal = PTSC fully commits to maintain our current Substitute Vessel(s) and experience crews for the smooth operation of NSRP during the time of building and completing the new-built Vessels, to the satisfaction of NSRP under the same terms and conditions of the signed Contract with NSRP. = The extension of delivery date for new-built Vessels as well as maintaining the current Substitute Vessel(s) will not result in any additional cost or expense to NSRP; = To ensure the schedule and quality of the Project, PTSC would like NSRP to delegate your team for close coordination, supervisory and control with PTSC during the construction of the new-built Vessels, including but not limited to FAT, arrangement of monthly meeting for building portion at the shipyard. PTSC is looking forward to NSRP’s understanding and kind support on the above proposal so that we can complete and deliver the new-built Vessels to the satisfaction of NSRP while keeping the smooth operation of Maritime Services for the Refinery. Thank you very much for your kind cooperation. Yours faithfully, Le Chien Thang Project Director Page 2 of 2 BM.HD PTSC.VP.01.24-15/7/2014NEW PROPOSED DELIVERY DATE FOR NEW-BUILT VESSELS NSRP MARITIME SERVICES PROJECT No | Vessel Name New Delivery date at NSRP Port 1 | SPM tugboat (H1065) 31-Aug-2018 2. | SPM Guard boat (#1066) 30-Oct-2018 3. | Harbour Tugboat 1 (H1067) 31-Aug-2018 4 | Harbour Tugboat 2 (H1068) 31-Aug-2018 5 | Harbour Small Line Handling Vessel (H1069) 30-Jun-2018 6 | Harbour Big Line Handling Vessel (H1070) 30-Jun-2018 7 | SPM Transfer Speed Boat (H1071) 30-Apr-2018 8 | SPM Line and Hose Handling Vessel (Azimuth) 30-Oct-2018 Page 1 of |PISCASRP TUGHOAT NEW-BUILDING PROJECT MASTER SCHEDULE FOR 8 VESSELS7 - ~ PTSC-NSRP TUGBOAT NEW-BUILDING PROJECT ~ - ] awe aR =e ——— — : =a —. ao TFRITR Dee + t ie 3 = [SaasPISCASRP TUGBOAT NEW-BUILDING PROJECT » MASTER SCHEDULE FOR VESSELS a ed ao = See ig Faget ate — & ‘Camu _ 3 taht gat iw har 25 segs eres 6 alts Bae a aaa HE ea spot nn EL SIRE nee 2 eee ee ae —e ml fae - pee er oe et eer ~ - ane Serge mayPESC-NSRP TUGHOAT NENW-BUILDING PROJECT MASTER SCHEDULE FOR 8 VESSELS BM une Handieg Vesa Tet SoMa A Sati [aap eo [| =PTSC-NSRP TUGHOAT NEW-BUILDING PROJECT MASTER SCHEDULE FOR 8 VESSELS. 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