Santos Sole:

Location : Gippsland Basin

The project Scope contains total 6 connectors, Vertical connectors Size VCCS 400-6'' =2sets and Horizontal connectors size
HCCS-12-450, 12'' =1set at base case.

Scheudle stragety

Hi Guys,

I have been talking to Caroline and wanted to clarify the strategy here.

Early Deliverables have been defined by the AE team and will commence on contract award, the following
deliverables will be accounted for in this period:

Note – these are accommodated in the CTR developed by our local AE and as yet to be approved.
6.001 Functional Design Specification - Connection System IFA TBA 30D

6.002 Scope of Supply Drawing - Connection System IFA TBA 45D

6.003 HCCS GA Drawings IFI TBA 45D

6.004 VCCS GA Drawings IFI TBA 45D

6.005 BOM IFI TBA 30D

6.006 Equipment Datasheets IFI TBA 45D

6.007 Material Selection IFA TBA 45D

This engineering effort will then STOP at the end of the 3-month period.  Engineering will only commence again at
the time required to meet the customer delivery date.  This is absolutely critical to the strategy for this project. 

The early deliverables will form part of the overall project assessment that goes into FID (Final Investment
Decision).  If this gate is not passed the project will not proceed and the equipment delivery will not happen.  It is
also critical to identify the hours required for early deliverables as a key tenant of the strategy is to recover the
early deliverables cost in the equipment delivery, as such our cost (risk) exposure must be well understood. 

As such the intent is to minimise any expenditure before the nominated FID date (everyone is using 31 st October
2016), this will meet the customer requirement to minimise their costs pre-FID and also restricts our risks profile
and maintains our competitiveness.

Please DO NOT add float at the back end of the schedule.  Essentially the start date for equipment delivery is 31st
October 2016, and for the connections scope I would expect that all activities can occur after this date and still
enables us to make the nominated delivery date.  If any activities do need to occur before the 31 st of October they
must be minimised (and clearly identified) or our competiveness will be undermined.
If you have any questions please don`t hesitate to contact me.

Overall:

Description:
Scope includes Engineering , procurement and Fabrication of Connectors,

Project Strategy : Early Engineering deliverables will commence after the contract award and the work
will be STOPPED after 3 months. Then work will be resume on FID 31st October 2016(Final Investment
Decision) and delivery of all connectors required on Aug'17 which is 10month from FID date.
However Connectors for XT required on Jun'17 so its required to start 4 weeks prior to FID.

VCCS 400 - It is based on the ONGC Vashistha part no so there is no engineering considered for VCCS.
.
Risk1 : The early Engineering deliverables will form part of the overall project assessment that goes into
FID, If this gate is not passed the project will not proceed and the equipment delivery will not happen.

Risk2 : If any change in VCCS - Vashistha part no stratedy then we need to start engineerin 6 weeks
prior to FID.

Procurement:

Description:

Procurement activities can start only after FID decision.

Forging

Procurement of forging will be done from Europe.

PO should be placed in FID + 2 weeks to meet the XT connector delivery.

Lead time for Forging is 12 weeks and 2 wks. transport duration from Europe to SG by airfreight considered .

Pipe:

Pup-piece for XT Connectors is GE Scope & 16 Wks. Lead times considered.

For Other connectors pup-piece is considered CPI or Variation Order

Connectors Assembly:

All connectors scope is as turn key Singapore supply.

The lead times for machining welding is 12wks, and assembly/test is 4wks consider.

Structure procurements is considerd local in Singapore and lead times is 16wks.

Description: Engineering work will be done by standard way.

Engineering actiivites starts from CA for Early Deliverables and then then STOP at the end of the 3-month period.
Engineering will only commence again at the time required to meet the customer delivery date. This is absolutely
critical to the strategy for this project.

Pipe interface information for free issue pipe is required FID + 2 weeks.

Assume XT is also manuftured in Singapore.

No Qualification is considered on the Schedule

Risk 1: 2 Weeks to place the PO forging is very critical. Normal lead time is CA + 8weeks. It is the schedule driver.
Risk 2 : Air freight is considered for the forgings & pipe so we dont thave the buffer/float in the tail end activities.

Risk 3 : If XT manufacturing location change in OTR, it will impact the XT connector delivery.

Husky Liuha :

The Liwan Gas Project is the first deepwater development offshore China.
Located approximately 300 kilometres southeast of the Hong Kong Special Administrative Region (SAR), the US$6.5 billion project
is a partnership between Husky Energy and CNOOC Limited and will supply natural gas to markets in mainland China and
potentially the Hong Kong SAR.
The Liwan Gas Project (Liwan) consists of three deepwater fields: Liwan 3-1, Liuhua 34-2 and Liuhua 29-1. The fields share a
subsea production system, subsea pipeline transportation and onshore gas processing infrastructure.
Liwan has taken approximately seven years from discovery to first production and is considered one of the fastest developments in
the world for a large-scale gas project in deep water.

The Husky Liuha Scope contatins 8 Slot Production Manifold (Single Header 12")=1off with Controls, Loose
Connectors, Test Equipment, ROV Tooling and SIT.

The Connectors scope is VCCS 450 upfacing Size 12"=4off, 8+2"=8off & 6"=2off for Manifold and upfacing
12"=9off, Downfacing 12"=5off, 8"=7off, 6"=2off for free issued connectors to customer .

Overall Risk:

Description: The schedule is developed based on MCS MEL Rev 01 and the CA on 1-July-2016.

The delivery requirements of manifold is CA+24 and Incoterm is DDP china (Desired Port delivery is missing )

Fabricator assumed to be COOEC China so no SRT duration or transportation is included

Free Issued Connectors - CA+17months.

Risk 1 :We have no sufficient floats to accommodate delivery to client specific location and SRT if Fabricator is
changed during OTR

Engineering:

Description: Detail Engineering work will be done from GE Norway. (Norway is the Tech COE and Req COE will be
identified based on the fabricator selection).

Risk 1: XT not GE Supply

Risk 2: XT already installed.

Risk 3: 3rd parties need to agree with client to release suitable documentation for manifold design such as SCM
interface drawing. There is a risk that client does not receive authorization of parties to release drawings.

will delay manifold Delivery. The critical interface lists are added in the plan with need date (CA+6 wks).
Engineering confirmed that there is no risk to release the Fab. PO beause of this.

Manufacturing

cription: The Manifold fabrication is planned to be executed in China.

Manifold Schedule received from COOEC, McDermott , Jutal , Nymo which meets our dates. COOEC China is the
preferred tenderer for this project. COOEC schedule meets our dates.

Valve at site in CA+16 months ( Sourcing confirm on 15months)

Connection at site in CA+16months

PCS for build (mounting base, stab plates etc.) at site in CA+17months

PCS for EFAT at site in CA+18 months.

Fabricator will do the first cut off steel PO+6 Months after procurement and weld qualification . ( First cut is
moved to PO+8 months)

The Fabrication Leadtime is 10 months considered and 6 months from Valves reached at site .

Risk 1: GE & Fabricator DOR to be agreed prior to CA.

Risk 2:Subcontract negotiation and PO to be finalized by CA+4months.

Risk 3 : Engineering should be completed to release the Fab SOW to meet the PO date in 4 months. Engineering
confirmed that there is no risk to release the Fab. PO beause of interface.

Connection:

Description: The procurement is based on the turn key solution by Singapore.

Forging

Procurement of forging will be done from Europe by SG.

PO should be placed in CA+2Months

Lead time for Forging is 20 weeks and 6 wks. transport duration from Europe to SG by sea is considered .

Connectors Assembly:

All connectors scope is as turn key Singapore supply.

The lead times for machining is 12 wks. , welding is 8 wks, and assembly/test is 4wks and

Structure procurements is considered on china and lead times is 22wks.

Pup-piece is GE Scope & 16 Wks. Lead times considered.

No Qualification on Connection.

2wks transportation from SG to China considered. ( changed to 4wks duration)

Free issue connectors as well as Manifold connectors , VCCS 450, size 6",8+2"&12", total =36 nos will be
delivered from CA+15 to CA+16 Months.

Risk 1: Interface delay from 3rd Parties. eg PLET . (The critical interface lists are added in the plan with need date
(CA+6 wks).

SIT

Description: GE is responsible for Manifold EFAT & SIT preferably in 3rd party fabrication yard, China.

6 Wks duration considered for EFAT / SIT of Manifold.

Mechanical - 4w

Controls - 2w

Control Equipments like SCM,SRM for SIT are provided by Company

Risk 1: Delay in CPI Items Impact SIT Completion.The CPI List are captured on the plan with need date

Transportation:
Description: GE is responsible for delivery to designated port in China but but specific port of delivery is missing.

The delivery requirements of manifold is CA+24 and Incoterm is DDP china (Desired Port delivery is missing )

Fabricator assumed to be COOEC China so no SRT duration or transportation is included

Risk 1: No sufficient floats to accommodate delivery to specific location if Fabricators changed during OTR

Anadarko:

Region: SSA – East Africa

Customer: Anadarko (Anadarko Mozambique Area 1 Ltd.)

Project: Mozambique LNG Development Project - Golfinho

Product line: MCS

Valve:

7 off – 6 slot Production Manifold Module.

Connector scope size varies from 300 to 720 , contains total Quantity of 393nos of inboard and outboard
connectors in which VCCS-580-16"=57off, VCCS-450-10"=235off, VCCS-300-4"=58off , HCCS-450-10"=6off &
HCCS-720-22"=37off including Caps,Seals & Tools.

Description: Contract award assumed on 1 Aug 2015. Schedule developed for base and one optional manifold.

Each scope is considered as separate package.

Manifold is Package 3.

Connection size less than 16 " is Package 6.

Connection size equals 22" is Package 7.

Customer needs dates for Manifold (7 Off).

First Manifold delivered on CA+21M.

Final Manifold delivered on CA+26M. One Manifold for each month.

Delivery requirement for Connectors:

* 50% of the order for each line item to be delivered 15 month from CA (195off)

* 80% of the order for each line item to be delivered 21 month from CA (118off)

* 100% of the order for each line item to be delivered 26 month from CA (80off)

Description:From schedule side it is challenge to meet the first manifold in CA+21 months considering our track
records.

Similarly for connection we have to start deliver 50 connectors per month from CA+12 M.

From the planning perspective it is good to get this contract as the EPC rather than Work packages because of the
Free issue items which shall drive our sourcing/fabrication activities.

Risk: On time delivery.

Description: Lead time for large bore valves - 50 WW from PO for1st batch.
PO placement in CA+1.5month

No Qualification considered.

Risk: Delay in valve delivery will reduce the fabrication lead time of 5.5 Months & 2 Months EFAT/SIT duration.
Zero float on the valve delivery.

n:Connection sourcing will be done in Europe and Free issue connectors are considered as Ex work.

Freeze the interface information (Hup /pup specification ) on before CA+2wks to place PO for Forging
CA+1.5month and lead time for forging assumed 5months.

Engineering release & PO for machining in CA+4months

Engineering release & PO for structural fabrication CA+4months, lead time for structural assembly assumed
4months.

Hub machining & hub/pup welding will be executed at the same vendor’s facilities.

No Qualification considered.

Pup pieces are considered as the Free issue from the company be required from CA+7th moth onwards.

For WPQ pup pieces are considered as GE scope.

Batch1 is critical and zero float because of the 195 Off connectors.

4 wks float in Batch 2 & 3 delivery.

Risk: Supplier capacity to be validated to meet the first batch delivery in CA+15M.

Pup piece information and delivery of the pup piece shall affect the welding of the connectors.

Tender Projects worked