CSPC NANHAI PETROCHEMICALS PROJECT

PRESSURE EQUIPMENT/PIPING-

SUPPLIER SURVEILLANCE

SP-8440-0000-0002

Project Management Contractor (PMC)

NO DATE REVISION BY CHK’D APPR.

A 10.08.01 Issued for Comment PLL PW PW
00 29.10.01 Issued for ITB PLL PW PW
01 21.11.01 Revised for ITB PW PLL PW
CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

PRESSURE EQUIPMENT/PIPING-SUPPLIER SUREILLANCE

TABLE OF CONTENTS

1.0 SCOPE 3

2.0 PURPOSE 3

3.0 DEFINITIONS 3

4.0 RESPONSIBILITIES 4

5.0 REFERENCED DOCUMENTS 5

6.0 MINIMUM SURVEILLANCE LEVELS 5

6.1 Pressure Vessels and Heat Exchangers 5

6.2 Rotating Equipment 6

6.3 Piping 6

TABLE 1 Minimum EP/C Contractor Surveillance Requirements for Pressure Vessels and
Heat Exchangers

TABLE 2 Minimum EP/C Contractor Surveillance Requirements for Pumps

TABLE 3 Minimum EP/C Contractor Surveillance Requirements for Compressors

TABLE 4 Minimum EP/C Contractor Surveillance Requirements for Sub-Supplied Pump

and Compressor Main Components

TABLE 5 Minimum EP/C Contractor Surveillance Requirements for Pressure Containing

Piping.

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

1.0 SCOPE

1.1 This specification defines the minimum level of surveillance to be applied to the work
of suppliers of pressure containing equipment and piping fabrication contractors by
EP/C Contractors during the implementation phase of the CSPC Nanhai Project.

1.2 This specification shall be applied to fabricated equipment, such as pressure vessels,
heat exchangers, pumps, compressors and to fabricated piping systems.

1.3 Although not specifically covered by this specification, EP/C Contractor shall develop
similar surveillance requirements for other items such as reciprocating compressors,
steam turbines, gas turbines, fired-heaters, boilers, valves, piping bulks, in-line items
such as mixers and strainers etc.

2.0 PURPOSE

The purpose of this specification is to establish a common approach to surveillance of

suppliers of pressure containing equipment and piping by the EP/C Contractors
across the whole of the CSPC Nanhai Project.

3.0 DEFINITIONS
CSPC CNOOC and Shell Petrochemical Company Ltd.
BSF Bechtel SEI and Foster Wheeler, the Project
Management Contractor
BDEP Subcontractor Engineering and design contractor engaged to
generate designs, drawings and documents to be
included in the project Basic Design Engineering
Package (BDEP).
EP/C Contractor Engineering and construction contractor engaged to
carry-out detailed design and construction of the
plant.
Definition Phase The phase of the project in which the BDEP is
prepared
Implementation The phase of the project in which detailed design and
Phase construction is carried-out.
Criticality Rating A method of assessing the importance of an item with
respect to it’s design, manufacture and consequence
of failure.
Surveillance Monitoring by EP/C Contractor of suppliers’ design,
inspection and test activities to ensure compliance to
Project and Statutory requirements.
PMI Verification of nominal alloy composition by means of
instrumentation.

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

Tagged Item Equipment or special piping item allocated a unique

tag number e.g. pressure vessel, heat exchanger,
pump, compressor, packaged unit, control and relief
valves, expansion joint, and any other items listed in
equipment list, special piping item list or instrument
schedule
Bulk Items Materials purchased in bulk where individual items
are not allocated a unique tag number, e.g. plate,
random length pipe, valves, fittings, flanges, non-
process traps and strainers
W Witness point
I Random inspection
H Hold point
H* Hold point when defined in SP-8410-0000-0001,
otherwise surveillance shall be by witness.
R Document review

4.0 RESPONSIBILITIES

4.1 EP/C Contractor is responsible for specification of inspection and test requirements to
Suppliers and for ensuring that such requirements are in accordance with Project
requirements.

4.2 Responsibility for execution of the inspection and testing shall be the responsibility of
the Supplier or Sub-contractor on whom the purchase order or sub-contract is placed.
Irrespective of any requirements for EP/C Contractor surveillance the Supplier or sub-
contractor shall retain responsibility for mechanical design, fabrication, inspection and
test.

4.3 EP/C Contractor shall, in review of Supplier/Subcontractor Quality Plans, consider the
minimum surveillance requirements and indicate required Hold, Witness, Inspection
and Review points. It is emphasised that the requirements specified herein are
minimum requirements and take no account of supplier performance or of cost or
schedule impact to the Project. Where items are identified as cost or schedule critical
it shall be EP/C Contractors responsibility to set the level of surveillance. All such
cases shall be subject to BSF/CSPC review.

4.4 EP/C Contractor shall develop surveillance requirements for other pressurised items
not specifically covered by this specification such as reciprocating compressors,
steam turbines, gas turbines, fired-heaters, boilers, valves, piping bulks, in-line items
such as mixers and strainers etc. for review by BSF/CSPC. Such surveillance
requirements shall take account of all inspections required by the Project

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

Specification and applicable DEP’s and shall be set at levels equivalent to those
covered by this specification.

4.5 BSF/CSPC shall review the surveillance levels proposed by the EP/C Contractor for
all equipment and piping and shall advise any Hold, Witness and Review points
required by BSF/CSPC.

5.0 REFERENCED DOCUMENTS

DEP 31.29.02.30-CSPC Centrifugal Pumps (Amendments/supplements to

API 610).

DEP 31.29.02.11-CSPC Pumps-Type Selection

DEP 31.29.40.10-CSPC. Compressor Selection, Testing and Installation

DEP 31.38.01.31-CSPC. Shop and Field Fabrication of Piping

SP-8410-0000-0001 Mechanical Equipment Design Specification

6.0 MINIMUM SURVEILLANCE LEVELS

6.1 Pressure Vessels and Heat Exchangers

For pressure vessels and heat exchangers the extent of surveillance of suppliers
quality activities shall be based on the following categorisation of vessels:

Category 1 shall be selected if one or more of the following conditions apply:

 Very toxic substances ;
 Liquefied gas;
 Hydrogen service;
 A Lower Design Temperature below 0 °C;
 Vessels operating at a pressure exceeding 5 bar (ga) and with a P*V value
exceeding 100 MJ (1000 bar (ga) m3);
 Vessels operating in cyclic service;
 Nominal wall thickness > 35 mm;
 Cr-Mo steels and other ferritic alloy steels and carbon steels having a tensile
strength greater than 460 N/mm2;
 Austenitic stainless steel and nickel alloys (design pressure > 20 bar (ga));
 Vessels which operate in the creep range of the materials of construction.

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

Category 2 shall be selected for all services which are not covered by either Category
1 or Category 3.

Category 3 shall be selected for:

 Utilities (low pressure steam < 10 bar (ga), air, water, inert gas);
 Atmospheric (storage) vessels.

The minimum extent of surveillance shall be as described in Table 1.

6.2 Rotating Equipment

For pumps the extent of surveillance of suppliers quality activities shall be based on
the Service Categories (Vital, Essential, Non-essential) as defined in DEP
31.29.02.11-CSPC.

For Compressors and drivers the extent of surveillance of suppliers quality activities
shall be based on the Service Categories (Vital, Essential, Non-essential) as defined
in DEP 31.29.40.10-CSPC.

EP/C Contractor shall establish the service categories for each item.

The minimum extent of surveillance shall be as described in Table 2 for pumps and
Table 3 for compressors and SP-8410-0000-0001.

For any centrifugal pumps supplied in accordance with Shell Procurement Initiatives,
the agreed scope for testing requirements shall apply.

In addition to the above, the minimum surveillance levels for pressure containing
casings shall be as defined in Table 4. The inspection class for pump casings shall be
determined in accordance with DEP 31.29.02.30-CSPC paragraph 4.2.2.

6.3 Piping

For piping, the extent of surveillance of Piping Contractors quality activities shall be
based on the Inspection Classes for Piping as defined in DEP 31.38.01.31-CSPC.
The minimum extent of surveillance shall be as defined in table 5.

For the purposes of surveillance, Inspection Category I shall be all classes requiring
100% radiography in accordance with Appendix 4 of DEP 31.38.01.31-CSPC.
Inspection Category II shall apply to all other piping classes.

These piping surveillance activities shall apply to piping from suppliers and sub-
contractors and also to process/pressure piping supplied as part of packages.

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

TABLE 1 Minimum EP/C Contractor Surveillance Requirements for Pressure

Vessels and Heat Exchangers

INSPECTION/ SURVEILLANCE EXTENT OF SURVEILLANCE

STAGE
Vessel Vessel Vessel
category 1 category 2 category 3

PRIOR TO ORDER Review Quality Manual R R R

Appraise Quality System and H H H

Technical Competence

Appraise Typical Quality Plan R R R

PRIOR TO Review and approve drawings H H H

MANUFACTURE

Review and approve H H H

calculations

Approve Quality Plan H H H

PRE INSPECTION Pre Inspection Meeting H H H

MEETING

MATERIALS Material Certificates R R R

Material identification/transfer of W I/R R

marking

Supplementary mechanical R R R
properties

Sub-orders R R R

QUALIFICATIONS Welders/operators H H W/R

PQR’s H/R W/R R

NDT operators R R R

PROCEDURES WPS’s H H H

NDT/PMI R R R

Manufacturing R R R

Heat Treatment H H R

Repair R R R

(continued)

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CSPC Nanhai Petrochemicals Project
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TABLE 1 (continued)

INSPECTION/ SURVEILLANCE EXTENT OF SURVEILLANCE

STAGE
Vessel Vessel Vessel
category 1 category 2 category 3

NON- PT/MT W I I
DESTRUCTIVE
TESTING UT W I I

RT & radiograph review R R R

Ferrite/hardness checks W I I

PMI H H H

DESTRUCTIVE Production Test Coupons W I R

TESTING

FABRICATION Corrective actions for non- W I R

conformities

Weld prep/fit-up/tack weld H W I

Back gouging H W I

Welding parameters I I I

Weld repairs I I I

Forming I R R

PWHT H W R

Dimensional/Visual H/W H/I H/I

Pressure test H/W H/W H/W

PREPARATION Shot blasting/painting I I R

FOR SHIPMENT
Drying/preservation W I I

Packing/marking W W I

EQUIPMENT DATA Equipment data book H/R H/R H/R

BOOK

INTERNALS Installation W I I

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

TABLE 2 Minimum EP/C Contractor Surveillance Requirements for Pumps

INSPECTION/ EXTENT OF SURVEILLANCE

SURVEILLANCE STAGE
Vital Service Essential Non-Essential
Service service

PRIOR TO ORDER Review Quality Manual R R R

Appraise Quality System and H R R

Technical Competence

Appraise Typical Quality Plan R R

PRIOR TO Approve Quality Plan H H R

MANUFACTURE

Review and approve drawings H R R

PROCEDURE Material ID, Marking, PMI H H H

APPROVAL

NDT R R R

Heat Treatment R R R

WPS’s/PQR’s H R R

Inspection and test procedures H R R

Preservation, Packing and R R R

Transportation

QUALIFICATIONS Welders W/R W/R R

NDT operators R R R

SUBSUPPLIERS Approve Quality Plan’s H H R

Pressure Casings See Table 4

Procedure approval as per R R R

above for major sub suppliers

PRE INSPECTION Pre Inspection Meeting H H I

MEETING

(continued)

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

TABLE 2 (continued)

INSPECTION/ EXTENT OF SURVEILLANCE

SURVEILLANCE STAGE

Vital Service Essential Non-Essential

Service service

DURING Quality Audits I I -

MANUFACTURE
Monitor Supplier QC I I I

Monitor Sub-supplier QC I I -

Material ID Checks W I R

Material Certification checks R R R

PMI H W W

Material traceability I I -

Monitor NDT W I R

Heat treatment W I R

witness pressure test H H* W

witness dynamic balancing W W R

Measure and record Pump W W R

Impeller Clearances

Noise and vibration tests H H* R

Witness NPSH tests H H* R

Final Visual Inspection W W W

Witness performance test H H* R

Check Main dimensions W W W

Check Mechanical Seals I I I

Blasting and Painting I I -

Handling, cleanliness, I I I
preservation, packaging and
identification.

EQUIPMENT DATA Equipment data book H/R H/R H/R

BOOK

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

TABLE 3 Minimum EP/C Contractor Surveillance Requirements for Compressors

and Special Purpose Steam Turbines

INSPECTION/ EXTENT OF SURVEILLANCE

SURVEILLANCE STAGE
Vital Service Essential Non-
Service Essential
service

PRIOR TO ORDER Review Quality Manual R R R

Appraise Quality System and H R R

Technical Competence

Appraise Typical Quality Plan R R -

PRIOR TO Approve Quality Plan H H R

MANUFACTURE

Review and approve drawings H R R

PROCEDURE Material ID, Marking, PMI H H H

APPROVAL

NDT R R R

Heat Treatment R R R

WPS’s/PQR’s H R R

Inspection and test procedures H R R

Preservation, Packing and R R R

Transportation

QUALIFICATIONS Welders W/R W/R R

NDT operators R R R

SUBSUPPLIERS Approve Quality Plan’s H H R

Pressure Casings See Table 4

PRE INSPECTION Pre Inspection Meeting H H I

MEETING

DURING Monitor Supplier QC I I I

FABRICATION
Monitor Sub-supplier QC I I -

Material ID Checks W I R

Material Certification checks R R R

PMI H H W

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

TABLE 3 (continued)

INSPECTION/ EXTENT OF SURVEILLANCE

SURVEILLANCE STAGE

Vital Service Essential Non-

Service Essential
service

Material traceability I I -

Monitor NDT W I R

Heat treatment W I R

witness pressure test H H* W

Main dimensions W W W

Flange finish W W R

Casing Wall thickness W W R

Measurement of running W W R
Clearances

Visual inspection (workmanship W W W

and finish)

Taper fits with matched plug and W W R

ring set

Machinery alignment W W R

Dynamic balance test W/R W/R R

Performance and mechanical H H* W/R

run test

Blasting and Painting I I -

Handling, cleanliness, I I I
preservation, packaging and
identification.

EQUIPMENT DATA Equipment data book H/R H/R H/R

BOOK

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CSPC Nanhai Petrochemicals Project
Bechtel – SEI – Foster Wheeler PMC

TABLE 4 Minimum EP/C Contractor Surveillance Requirements for Sub-Supplied

Pump, Compressor and Special Purpose Steam Turbines Main Components

FABRICATION EXTENT OF SURVEILLANCE

SURVEILLANCE ACTIVITY Pump casing Pump casing Compressor

Inspection Inspection Casing
Class I Class II

PRIOR TO SUB- Review Sub-supplier Quality R R R

ORDER Manual

Appraise Quality System and R R R

Technical Competence

Appraise Typical Quality Plan R R R

PRIOR TO Approve Sub-supplier Quality H H H

MANUFACTURE Plan

SUB-SUPPLIER Material ID, Marking, PMI R R R

PROCEDURE
APPROVAL NDT R R R

Heat Treatment R R R

WPS’s/PQR’s H H H

Inspection and test procedures R R R

Preservation, Packing and R R R

Transportation

SUB-SUPPLIERS Welders W/R R W/R

QUALIFICATIONS
NDT operators R R R

SUBSUPPLIERS Approve Quality Plan’s H R H

DURING Material ID Checks W I R

MANUFACTURE

Material Certification checks R R R

PMI H H H

Monitor RT W/R - W/R

Monitor PT/MT R R R

Monitor UT R - R

Review repairs (Major and W/R R W/R

minor)

(Continued)

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TABLE 4 (Continued)

FABRICATION EXTENT OF SURVEILLANCE

SURVEILLANCE ACTIVITY

Pump casing Pump casing Compressor

Inspection Inspection Casing
Class I Class II

DURING Monitor Visual Inspection I I I

MANUFACTURE

Dimensional check W R W

Handling, cleanliness, I I I
preservation, packaging and
identification.

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TABLE 5 Minimum EP/C Contractor Surveillance Requirements for Pressure

Containing Piping.

PIPING FABRICATION EXTENT OF

SURVEILLANCE
SURVEILLANCE ACTIVITY
Category I Category II

REQUIREMENTS Review Quality Manual R R

PRIOR TO ORDER

Appraise Typical Quality Plan R R

REQUIREMENTS Develop and Approve Quality Plan H H

PRIOR TO PIPE
FABRICATION Attend Pre-production Meeting H H

PROCEDURE Material Identification, transfer of marking, R R

REVIEWS traceability, PMI

WPS/PQR’s H R

NDT H R

Pipe bending and forming R R

Heat treatment R R

Pressure test R R

Handling, preservation, packing, transportation R R

Chemical cleaning R R

Approve welder qualification records W/R R

Approve NDT Operators Qualification Records W/R R

(Continued)

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TABLE 5 (Continued).

PIPING FABRICATION INSPECTION

CATEGORY
SURVEILLANCE ACTIVITY
Category I Category II

REQUIREMENTS Review material certification and marking W R

DURING PIPE
FABRICATION/
ERECTION

Monitor PMI activity W R

Monitor material traceability activity (where R R

required)

Monitor repair rates R R

Monitor welder performance records R R

Monitor weld prep, fit-up and tack welding W/I I

Monitor welding I I

Monitor NDT I R

Monitor bending and forming I R

Approve heat treatment charts W/R R

Final Visual Inspection W W

Final erection PMI W W

Monitor chemical cleaning (witness acceptance) W W

Witness pressure test W W

Check main dimensions W I

Check pipe supports I I

Monitor weld repairs and associated NDT W R

Inspection Release H H

REQUIREMENTS Review and Approve Data Dossier H H

PRIOR TO
HANDOVER

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