EPC4 Weekly Report

22 February 2011 Teamwork at its Highest

Key Points
 No SHE incidents reported in this period
 Witnessed successful performance test of Train 2 Compressor and successful gas leak test of Train
1 Compressor.
 Completed installation of sewage tank for Tokaju Camp
 Completed fence work for Main Construction Camp, Phase 1
 Worker Grievance Process issued by Contractor

Weekly Progress
 Incremental Plan: 0.4%
 Incremental Actual: 0.4%
 Cumulative Plan: 11.4%
 Cumulative Actual: 13.0%

Weekly Work Stoppages Summary

Upcoming Events
 Construction Risk Assessment Workshop (22 February 2011)
 Workshop with DPE to discuss Permit-to-Construct (early March)
 Main Generator String test (to commence week of 21 February 2011).

Photographs for this period

HGCP SITE
 EPC4 Weekly Report
22 February 2011 Teamwork at its Highest

Workers with hard hats, eye protection and gloves

Working at heights
EPC4 Weekly Report
22 February 2011 Teamwork at its Highest

Back of Living Quarters

 EPC4 Weekly Report
22 February 2011 Teamwork at its Highest

Narrative

Summary
 Overall progress for week ending February 11th, Planned 1.45%, Actual 1.50%.
 Evaluating flare area settlement option to optimize earthworks and flare location.
 Attended Drilling/Operations PNG Subsurface Workshop in Melbourne (Process Eng / Ops)
 Provided action plans (28) and close outs (14) to items identified in the HGCP Site Seismic Risk
Assessment (Civil Eng)
 Witnessed successful gas leak test of train 1 compressor on 14 Feb 11.
 PO’s place for API 675 Injection Pumps and Non Process Utility Pumps.
 Final recommendations issued RA’s for CCR, Security Fence changes and Community Affairs
building changes.
 Engineering audit at 60%progress-Singapore carried out and 1 observation raised.
 Received Post-Weld Heat Treatment ITT for review
 Completed installation of sewage tank for Tokaju Camp
 Completed fence work for Main Construction Camp, Phase 1 (razor wire remaining)
 Held safety awareness training on Lock-Out / Tag-Out and Isolation
 Prepared safety training material for fire warden and fire extinguishers
 Reviewed and commented on Tokaju Camp Management Plan
 Worker Grievance Process issued by Contractor
 Deugro issued PoM Wharf-to-Jackson Airport Route Survey report
 Procurement status: 130 of 144 RFQs issued; 124 bids received; 90 bid evaluations completed; 76
purchase orders issued. 3 Spare Orders placed v. 10 planned (of 106 total).
 Subcontract status: 38 of 66 subcontracts executed; 30 Individual Subcontract Plans approved; 16
packages in progress.
 Near Term Activities:
o Complete foundations for Tokaju Pioneer Camp.
o Solar string tests for Units 1& 2 commence in San Diego week of February 21st.
o Award purchase orders for ball valves, prefab steel buildings, permanent fencing and sewage
treatment plant.
o Award Storage Tanks, Piling subcontracts

Safety, Health & Security

 CBI/Clough - 726,073 Man-Hours Total Recordable Incident free (Cat 1, Cat 2 and NS)
 ExxonMobil Staff Contractors - 68,216 Man-Hours Total Recordable Incident free
 ExxonMobil Employees - 39,088 Man-Hours Total Recordable Incident free
 Total Project MH - 833,377
 Developed draft Emergency Response Plan for monitoring staff welfare in emergency conditions
 Issued Tokaju Pest Management Plan
 Health provided input to Tokaju DWQMP

Environmental & Regulatory

 Held review with C1 on status of environmental Interface Agreements
 Regulatory planned inspection of Tokaju Camp electrical wiring by PNG Power
 Submitted 4 TQ responses to DPE in relation to the Permit-to-Construct
 Reviewed NLR Spill Risk Assessment report

Engineering
 Overall progress for week ending February 11th, Planned 1.45%, Actual 1.50%.
 Evaluating flare area settlement option to optimize earthworks and flare location.
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22 February 2011 Teamwork at its Highest

HAZOP Closeout Status

Items Closed week ending February 18th 6

Items Closed February 2011 12
Total Open Items Remaining For Design 29
Total Open items Remaining (including Ops, Vendor
Hazops, etc.) 71

Technical Queries / Spec Deviations

Technical Queries Open February 18th 13

Technical Queries Late 7
Spec Deviations Open February 18th 6
Spec Deviations Late 4

Process
 Produced Water IFC-H P&IDs issued (tank farm interconnectivity completed)
 MEG System IFC-H P&IDs issued
 Systems Description Manual - Upstream Facilities reviewed with comments
 Firewater Biocide Injection Package datasheet reviewed with comments
 Returned comments on 41 SDV Datasheets for purchase.
 Attended Drilling/Operations PNG Subsurface Workshop in Melbourne.
o Reached alignment on Annulus monitoring and venting.
o Reached alignment on HGCP compatibility for well start-up - No facilities modifications required

Piping
 Reviewed isometric comments from construction, engineering and DCC with CBI Piping group to
incorporate into latest format
 Reviewed material handling with operations and maintenance
 Completed review of piping line class specifications

Mechanical
 Completed pre-award HVAC technical clarification with Vendor.

Instrumentation / MICC
 Establishing a weekly and monthly set of metrics to include in management reports.

Electrical
 Solar string tests for Units 1& 2 commence in San Diego on February 21st.

Civil Structural
 Clarified concrete testing requirements and clarification of tank foundation leak detection
requirements.
 Provided action plans (28) and close outs (14) to items identified in the HGCP Site Seismic Risk
Assessment
 Continuing study for flare area possible optimization. CV report with potential impacts due for
Company review 24/2.
 Infrastructure bulk earthworks:
o reviewing proposed alternative laydown locations
o Outstanding earthworks drawings (70) planned to be complete in 1-3 weeks.

Rotating Machinery
 Conducted workshop visits to Florence on 14 Feb 11 and Massa workshop visit on 17 Feb 11.
 Witnessed successful gas leak test of train 1 compressor on 14 Feb 11.
 Found Train 1 compressor Drive End Secondary seal Stationary face damaged (crack) during visual
inspection. Seal sent back to Flowserve for detailed inspection and RCA. Report expected 22 Feb
11.
 Witnessed successful Train 2 Compressor Performance test on the 18 Feb 11.
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22 February 2011 Teamwork at its Highest

 Working with CV to resolve:

o finding with associated with seal gas panel gasket and piping minimum design temperature on
o Material issue with lube oil console pumps.
 Conducted successful lube oil console flushing and functional test inspection on 18 Feb 11.
 Attended 18 Feb 11 conference call with EM Houston (J. Kobayashi) and GE to finalize RM&D
functionalities.
 Stabilizer Overheads Compressor - HAZOP dates now confirmed 28/3/11. Pre Inspection Meeting
dates confirmed for 11/12 April.
 GE Pipeline Compressors - Testing/flushing of LO cooler and LO console in progress.
 Review of vendor data ongoing for Air Compressors, Work shop air compressors, Firewater pumps
and API 610 pumps.
 PO’s place for API 675 Injection Pumps and Non Process Utility Pumps.
 CPI Separator - Tech Bid evaluation in progress.
 Produced Water Injection Pumps - Discussions are ongoing with reservoir team regarding
appropriate injection pressure.
 Noise Modeling – Meetings being held

Risk Management / Loss Prevention

 Final recommendations issued RA’s for CCR, Security Fence changes and Community Affairs
building changes.
 Risk Register under revision to include all latest risk action items.
 Preparing for Construction Risk Assessment which was held as planned on February 22 in
Brisbane.

Quality Management
 No NCR/CAR reported this period
 Audit observations close out follow up
 Engineering audit at 60%progress-Singapore carried out and 1 observation raised.
 Pre-Inspection Meetings are ongoing as per agreed schedule
 CV quality inspectors sourcing/interview/ hiring under progress.
 Engineering & Procurement quality surveillance checks are on going

Procurement
 76 Purchase Orders issued.
 130 RFQs issued; 124 bids received; 91 bid evaluations completed.
 3 Spare Orders placed v. 10 planned (of 106 total)

Subcontracting
 Bid evaluation in progress for Storage Tanks
 Received Post-Weld Heat Treatment ITT for review
 Reviewed subcontract ‘punch-list’ to clarify remaining subcontracts to develop and execute
 16 packages in progress.
 30 Individual Subcontracting Plans approved.
 39 of 66 subcontracts awarded

Logistics
 Onshore logistics continue to support construction activities on site. Kentz inventory storied at 11
Mile for security and maintenance reason
 Convoy #15, #19, # 17 and #18 dispatched from 11 Mile
 Deugro initiated AN124 marshalling yard land survey at Jackson Airport, POM
 Deugro issued PoM Wharf-to-Jackson Airport Route Survey report

Interface Management
 Final C1 drawings for Area 41 partially received, Area 40 now due late March.
 Plans underway to visit OSL to get as-built information to finalize layout of Wellpad E.

SELCA
 EPC4 Weekly Report
22 February 2011 Teamwork at its Highest

 Worker Grievance Process issued by Contractor

 Issued EPC4 Social Monitoring Plan for review / comment

Construction Site Activities

 Held safety awareness training on Lock-Out / Tag-Out and Isolation
 Prepared safety training material for fire warden and fire extinguishers
 Continued installation and assembly of furniture in Tokaju Camp
 Completed installation of sewage tank for Tokaju Camp
 Progressed smoke detector installation at Tokaju Camp
 Completed fence work for Main Construction Camp, Phase 1 (razor wire remaining)
 Began formwork for footings at Main Construction Camp Site
 Continued planning of laydown strategies for EPC4 Camp and HGCP Pioneer Camp

Construction Office Activities

 Progressing Final Human Factors in Construction and Constructability Issues
o 1 Issue/Opportunity being assessed
o 131 Issues/Opportunities closed to date
 Reviewed and commented on Tokaju Camp Management Plan
 Prepared revised manpower histogram and camp plan for Upstream Management review
 Reviewed and approved Purchase Order packages for early construction equipment
 Reviewing Scaffolding Strategy/Plan

Systems Completion
 Reviewed SC CP2 Organizational Model with PMT
 Commenced Turnover of Systems Completion Database to Contractor
 Developed draft Venture Level Systems Completion FAT Coordination Schedule
 Working with JV on processes and procedures to be used during Static Commissioning
 Contractor SC deliverables under review: Guidelines (Temporary Overrides, Flange Management);
TCPs (Utility/Instrument Air, Fuel Gas, Potable Water, Waste Water Treatment).

Operations Readiness
 Attended HAZOP Action Closeouts sessions
 Participation in weekly Model Review
 P&ID review of changes
 Participated in Sub Surface workshop in Melbourne (16/17th Feb)
 Review/comment System Description Manual draft sections
 Evaluating Lube/Chemical storage & handling requirements
 Review Diesel custody transfer, metering and Gas Chromatograph standardization opportunities
 MICC- progressing alarm management/prioritisation
 Input of Spares/PO data into SPID
 Creation and loading of Equipment Templates into SPID
 Train CB&I Material CoOrds input process to SPID; review RSPL submittals from vendor
 Conducted joint CBI/EM Manual Handling and dropped Object Review (Pilot Exercise)