Acronmyns Abbreviations and Definitions Rev 3

McDermott Operational Excellence through Core Values MDR-GLOBAL-GUIDE-MGT- 001 Rev 3 February 2011

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Integrated Management

System

This document contains listings of the common acronyms, abbreviations and definitions used throughout JRM. Please send any additions/corrections to this list to Mike Rees ([email protected])

Use the search facility to scan the document for specific references

See also the Acronyms and Abbreviations document issued by Houston Engineering at the following link Houston Engineering Acronyms and Abbreviations

DIRECTORY OF ACRONYMS, ABBREVIATIONS AND DEFINITIONS

USED WITHIN McDERMOTT

mailto:[email protected]

http://jrmintranet.mcdcorp.net/C11/Houston%20Operations%20Center/Document%20Library/Acronyms-Abbreviations.pdf

McDermott Operational Excellence through Core Values MDR-GLOBAL-GUIDE-MGT- 001 DIRECTORY OF ACRONYMS, ABBREVIATIONS AND DEFINITIONS USED WITHIN JRM Rev 3 February 2011

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ACCRONYM, ABBREVIATION OR

TERM EXPLANATION/DEFINITION

A&R Abandonment and Recovery

ACCIDENT An undesired event resulting from a contact with an energy source beyond the threshold limit of

the body or structure. (also see incident)

ACCOUNT CODE

A twenty-three (23) character alphanumeric code used for identifying, categorizing, allocating and collecting project costs. The example Account Code A-1011-1477-59340-12345-2315 is comprised of the following elements:

A1011 – Contract Number

1477 – Entity Code

59340 – Job Number Code

12345 – Sub-function Code

2315 – Feature Code

These codes are developed for the WBS/CBS established for a project.

ACCOUNTING ENTITY Those accounting entities described in Section II of the Corporate Accounting Manual.

ACE Authorization of Capital Expenditure

ACGIH American Conference of Governmental Industrial Hygienists. ACGIH develops and publishes recommended exposure limits for chemical substances and physical agents.

ACTION PLAN The operational plan for a given incident.

ACTIVE DUTY Full-time service in the Uniformed Services of the United States of America.

ADEQUATE To meet the basic intent of a predetermined criteria

AFB Approved for Bid

AFC Approved for Construction

AFC ESTIMATES Approved for Construction Estimates - An evolving definition of scope, in terms of man-hours, based on updated design information. Normally reviewed on a monthly basis

AFD Approved for Design

AFE Authorization for Expenditure

AFF Approved for FEED

AFFILIATED COMPANY

A company which is controlled by, controls, or is under common controls of the parent company. Any joint venture or partnership is included even if the company's interest is a minority interest. And, in the case of a corporation, the parent company usually controls, directly or indirectly, a 20% or more but less than a majority of the voting securities.

AGC Assistant General Counsel of JRMSA

AISC American Institute of Steel Construction

ALARP As Low As Reasonably Practicable. Reasonably practicable indicates that the effort or expenditure to mitigate the risk is justified by the potential return or reward.

ANNUAL TRAINING SESSIONS (MILITARY

A scheduled Leave of Absence, normally for two weeks duration, necessary to fulfill the training obligations associated with enrollment in the Uniformed Services of the United States of America.


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LEAVE)

ANSI

American National Standards Institute. A non-profit voluntary membership organization that coordinates the U.S. Voluntary Consensus Standards System and approves American National Standards.

AOC Award of Contract

APCA Air Pollution Control Association

APD Area Procurement Director

API American Petroleum Institute

AS SOLD BUDGET (Original Budget)

The cost basis for the As Sold Pricing updated to include any changes in scope and or execution plan that have occurred after submittal of the proposal. In the Monthly Project Review this value is the Original Budget cost. Typically on a large project a period of 3 months is allowed for development of the As Sold Budget.

AS SOLD PRICING The pricing included in the contract. This is the bid/proposal pricing updated to include any

changes in scope and any changes which occurred during contract negotiations. In the Monthly Project Review this value is the Original Budget revenue.

ASCE American Society of Civil Engineers

ASM Area Subcontracts Manager - The administrative head of the local Subcontract Group reporting to the Area Procurement Director (APD)

ASME

American Society of Mechanical Engineers. ASME is a professional organization focused on technical, educational and research issues of the engineering and technology community. ASME sets internationally recognized industrial and manufacturing codes and standards that enhance public safety.

ASNT American Society of Non-destructive Testing

ASQ American Society for Quality

ASSE American Society of Safety Engineers

ASTM American Society for Testing & Materials

AUT Automatic Ultrasonic Test

AUTHORIZED EMPLOYEE (HSES)

Authorized employees are those employees that initiate lockout / tag-out procedures. Any employee servicing or maintaining equipment becomes an authorized employee and shall follow the lockout / tag-out procedures. Every employee working on the equipment shall be considered an authorized employee.

AWS American Welding Society

BACKCHARGE A charge or holdback from JRM to a supplier as a result of supplier non-performance. The back-

charge amount may be used to complete unfinished work, to correct work of insufficient quality, to ensure timely completion of the works, or other justifiable reason.

BBSM Behavior Based Safety Management. A peer to peer observation system that aims to alter at risk behavior through constructive feedback.

BCP Business Continuity Plan


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BDV Blow Down Valve

BID PROPOSAL A formal offer by the Company and/or its entities, in accordance with specifications for a project, to do all or a phase of the work at a certain price in accordance with stated terms and conditions.

BOJ Bottom of Jacket

BOM Bill of Materials

BOS Bottom of Steel

BSI British Standards Institute

BTU British thermal unit of heat value

BU Business Unit

BUDGET MANAGER Person appointed by the JRM Project Manager to be responsible for a discrete element of a

project’s Control Budget. This function includes the approval of expenditures, approval of invoices, identification of variances and EAC preparation and approval.

BUDGET SHIFT

A shift of cost from one charge number to another without changing the overall (Current) Budget.

Note - Budget Shifts are only executed if there is a change in execution strategy which affects

the manner in which costs were budgeted. Budget transfers shall NOT be executed to simply

fund one account that might be overrunning with funds from an account that might be under

running.

BUSINESS GROUP

A combination of two or more Business Units. They include:

Caspian / Black Sea and North Sea

Asia Pacific and Middle East

Atlantic (Morgan City and Mexico)

BUSINESS TRAVEL Travel required to conduct business on behalf of the Company.

BUSINESS UNIT

A Business Unit consists of geographical areas where the Company conducts operations. They include:

Caspian / Black Sea

North Sea

Asia Pacific

Middle East (including India)

Morgan City

Mexico

BUYER The person designated to lead the procurement process from receipt of a requisition through

placement of a Purchase Order, to include maintenance of the Purchase Order and expediting, if required.

BV Bureau Veritas

BW Butt Weld

CAA Civil Aviation Authority

CAD Computer Aided Drafting

CADD Computer Aided Drafting & Design


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CALM Catenary Anchor Leg Mooring System

CAPABILITY The ability of JRM (including joint venture partners, subcontractors and suppliers) to execute a selected strategy.

CAPEX Capital Expenditure: Expenditures or commitments for fixed assets as defined in Section III of the MII Accounting Manual, Financial Policy/Procedure 001, "Accounting for Fixed Assets"

CAPITAL EXPENDITURES

Expenditures or commitments for fixed assets as defined in Section IV of the Accounting Manual, Financial Policy/Procedure 001, "Accounting for Fixed Assets".

CAPITAL LEASE

Any lease which fulfills one or more of the following criteria: a. The lease transfers ownership of the property to the lessee by the end of the lease term. b. The lease contains a bargain purchase option. c. The lease term is equal to 75% or more of the estimated economic life of the lease property.

However, if the beginning of the lease term falls within the last 25% of the total estimated economic life of the lease property, including earlier years of use, the criterion shall not be used for purposes of classifying the lease.

d. At the inception of the lease, the present value of the minimum lease payments equals or exceeds 90% of the fair market value of lease property after deducting any investment tax credit retained by the lessor.

CASH EQUIVALENT Gift card, charge card, gift certificate, savings bond

CASH FLOW

A graphical (and tabular) presentation of the incremental and cumulative project revenues and costs distributed over the scheduled project duration. During project execution, the actual/forecast revenues and expenditures are updated to provide management with an indication of current and future Cash Flow (positive or negative) position of the project.

CBE Commercial Bid Evaluation

CBS Cost Breakdown Structure

CC Command Center

CCLP Compliant Composite Leg Platform

CCTV Closed Circuit Television

CFM Client Furnished Materials

CFR

Code of Federal Regulations: Official publication of the US Government which defines law for many industries, services & products.

Can also mean Cost & Freight

CG, COG Center of Gravity

CHANGE ORDER, CO

Contractual document prepared to identify and quantify the cost and schedule impact of a change initiated by the client which results in a variation to the agreed scope of work. The project’s Current Budget is updated to reflect the value of approved Change Orders. Note – the term ―variation orders‖ is sometimes used and is synonymous.

CHARITABLE CONTRIBUTIONS

Gifts and donations made for benevolent purposes (such as cultural, religious, educational, medical, civic, and philanthropic). Generally includes gifts to churches or associations of churches, educational institutions, colleges, universities, hospitals or medical research organizations and community foundations (e.g., United Fund, Red Cross, etc.).


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CHART OF ACCOUNTS

A list of codes organized in a hierarchal structure that is designed to facilitate the collection of cost information in a consistent, standardized manner. The sub-function component of these codes should be global and is generally not intended to be project specific. Some flexibility, however, is available within the coding structure (primarily in the job number code) for projects to address unique cost collection or reporting requirements.

CI Continual Improvement

CIE Computer Integrated Engineering

CIF Cost, Insurance & Freight:: Term normally used to indicate that the cost of an item includes transportation & insurance to a specified point of delivery.

CII Construction Industry Institute

CIR Computer Input Request

CL Center Line

CLIENT / CUSTOMER The entity with whom Company/Contractor has entered into a Contract for a defined scope of work

in a Project. Also termed ‖Owner‖ and/or ―Operator‖ of the facility when JRM enter a contract with the owner and/or operator of the facility.

CM Construction Manager

CMMS Computerized Maintenance Management System

CNG Compressed Natural Gas

CO See change order

COB Close of Business

COBC Code of Business Conduct

CODE OF ACCOUNTS

The comprehensive list of Account Codes developed for a project. A project’s Control Budget is equal to the sum of Control Budgets of the project’s Account Codes. The Code of Accounts is comprised of the codes that are selected from the overall Chart of Accounts that are identified as applicable to the project.

COI Certificate of Inspection

Or

Conflict of Interest

COMM Commissioning

COMMITMENT

Agreed amount to be paid for equipment; materials; and services, as specified in a purchase order, subcontract or other agreement. Commitment types include letters of intent, purchase orders and subcontracts. The committed value for a lump sum item includes the entire value within the purchase order or subcontract (including all Change Orders and modifications). The committed value for a reimbursable or unit rate subcontract is defined as contractual unit rate x forecasted quantities. Commitments for other costs (i.e., not subcontracts/purchase orders) are reported as Committed = Expended. This typically includes Engineering labor, Construction labor, and Major Work Barges (when owned by JRM).

COMMUNITY RELATIONS The planned involvement of the Company and its employees in selected local affairs and prudent participation in those local events which preclude planning so as to create and maintain a favorable basis of communication between the Company and the local residents.


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COMPANY J. Ray McDermott, S.A. and its subsidiaries and affiliates

COMPANY MEMBERSHIP

Membership in business, professional, technical and trade organizations which the Company, or certain entities of the Company subscribe to through dues, fees, donations, assessments, etc. These organizations are non-profit and are primarily business or industry oriented. They provide service for the industry rather than to any particular Company and include Chambers of Commerce, industrial development groups, trade organizations and specific technical societies and associations (e.g., The American Welding Society). Company memberships shall not include the membership dues, fees, donations, assessments, etc., of any individual.

COMPANY SERVICE Time spent in the continuous employ of the Company. Company service may be adjusted due to certain interruptions. Employees who resign and are rehired will have their Company service time computed from the date of rehire.

COMPETENT PERSON

A person who has acquired through training, qualification, experience or a combination of these, the knowledge and skills necessary to perform the task required.

CONSTRUCTION MANAGER

Person appointed by JRM to be the Construction Manager on a project

ConstructSIM 3D Model interface program used for construction planning and work packaging

CONTINGENCY (ESTIMATE)

A provision or set aside of funds to cover unforeseen costs related to the original (or current) budget estimate. Cost overruns caused by increases in quantities, unit rates, labor rates, etc. are funded by this type of contingency

CONTINGENCY (RISK)

A provision developed from Monte Carlo simulation analysis for unusual conditions that could adversely affect the cost and schedule of a project. It covers the associated cost and time impact of events that normally are not likely to occur during project execution. Examples of these unusual conditions would be labor disputes, extreme weather conditions, force majeure events and financial risks to the project not covered under the contract.

It can also take the form of a provision to cover possible failures in meeting liabilities and guarantees set by the terms and conditions of the Contract. These types of conditions might include process and performance guarantees, penalty clauses specific to project liabilities and damages.

CONTINGENT ITEM (Forecast)

An existing condition, situation, or set of circumstances involving uncertainty that may, through one or more related future events, result in an increase or decrease to profit. [In the context of this procedure refers to items that OU management include in the forecast in order to present (in their judgment) the most likely financial outcome.]

CONTRACT NUMBER CODE

A five (5) character numeric code assigned to JRM contracts. This code is assigned by Accounting at the proposal phase of the project. When a project is awarded the first character of the code is revised to reflect the primary JRM location or business unit responsible for project execution. Altamira projects, for example, are identified by ―A‖ as the first character.

CONTRACT(S) All Company contracts in the broadest sense, including without limitation contracts between

Company and its customers, subcontractors, vendors, and suppliers

CONTRIBUTIONS COMMITTEE

A committee consisting of the Chief Executive Officer, the Chief Financial Officer, the Executive Vice President, Human Resources, Health, Safety & Environment, and the Corporate Compliance Officer.

CONTROL BUDGET

The recast of the project estimate and includes all items for the entire scope of work. This will include items required for offshore assistance, subcontract oversight etc. The man-hours required to build all the items in the scope of work should be in the AFC estimates. If there are any changes in the quantity to be fabricated, they shall be reflected in the AFC estimates. The ―man-hour factor‖ to be used in calculating the AFC man-hours should be the same as what was approved at the bid stage. If the quantities change then adjustments are made to the Progress Budget.


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CONTROL SCHEDULE

The Baseline Schedule (typically delivered to the client 60 days after award) is not the Control Schedule.

On an EPIC project the Control schedule is the schedule update after issuance of AFC P&ID’s. That is the point in time where we know what all the equipment looks like; we know the instrumentation, etc.

On a non- EPIC project the ―Control Schedule‖ is the schedule update at approximately the 30% of Prefab.

CONTROLLED FOREIGN CORPORATION

Any foreign (non-U.S.) corporation of which more than 50% of the total combined voting power of all classes of stock entitled to vote is owned by the U.S. shareholders on any day during the taxable year of such foreign corporation. For this purpose, a U.S. shareholder is one who owns at least 10% of the foreign corporation's voting stock.

COQ

Cost of Quality - measures that quantify the cost of prevention, appraisal and lessons learned related to failures in meeting product quality requirements. The purpose of the COQ is to quantify cost of prevention related to the cost of failure in order to establish cost effective measures to avoid re-occurrence

CoreWorx J Ray McDermott’s selected solution for an Electronic Document Management System

COST BREAKDOWN STRUCTURE (CBS)

Structure developed to organize and control the equipment, materials, labor, subcontracted services, in-directs and other expected cost elements within a project.

COST CENTER MANAGERS

The person designated and authorized by JRM to manage a specific Department or Budget

COST ENGINEER

Person appointed by JRM to be responsible for performance of the cost control function on a project including budget preparation, cost Commitment monitoring and reporting, the assignment of Account Codes to ensure the accurate collection of project costs, identifying and quantifying budget variances and preparation of the project’s EAC.

COST MANAGEMENT JRM cost system used on projects – usually CCTS or Proliance.

CP Cathodic or Corrosion Protection

CPM Critical Path Method

CPU Central Processing Unit – Physical portion of, or a device within, a computerized system that manipulates data.

CRA

Corrosion Resistant Alloy Or Construction Risk Assessment

CRITICAL JOBS

A task which is essential for accomplishment of the unit mission, successful individual skill performance, and/or to maintain the integrity of the facility. These tasks require specific training and evaluation.

CRITICAL LIFTS ONSHORE

For the definition of all onshore lifts refer to the Global level 2 procedure JRM/GLOBAL/EM-004 Onshore Lift Management

CSA Consulting Services Agreement

CSAT Construction Site Acceptance Test

CSB Construction Schedule Baseline


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CSI

Cost Severity Index. A Department of Energy metric that has been adopted throughout JRM. The metric indicates overall HSE performance and includes all reportable incidents in the calculation. The formula used for the calculation is:

Total number of restricted days x 400 + Total number of lost work days x 1,000 + Total number of recordable incidents x 2,000 + Total number of permanent transfers x 500,000 + Total number of fatalities x 1,000,000 subtotaled x 100 then divided by the number of man hours worked

CSO

Company Security Officer as required by ISPS Code. A person designated by the Company for ensuring that a ship security assessment is carried out; that a ship security plan is developed, submitted for approval, and thereafter implemented and maintained, and for liaison with port facility security officers and the ship security officer.

CSV Construction Support Vessel

CTOD Crack Tip Opening Displacement

CTR Cost, time, resource

Or

Certified Report

CURRENT BUDGET The Current Budget is comprised of the Original Budget + Budget Shifts + Approved Change Orders

CURRENT SALES PRICE The consideration received or expected to be received when the asset is sold.

CUSTOMER The owner of a project which JRM has contracted to perform (See Client/Customer)

CY Calendar Year

CYE Calendar Year Ending

DAYS AWAY FROM WORK

Number of calendar days an employee is unable to work as a result of work related injury or illness (Lost Time Incident), regardless of whether or not the employee is scheduled to work on those day(s);

Weekend days, holidays, vacation days or other days off are included in the total number of days recorded if the employee would not have been able to work on those days because of a work-related injury or illness;

The count of days starts with the first day away from work (excluding the day of the injury / illness) and ends when a physician or other licensed health care professional recommends the employee:

Return to work

Retires

Leaves the company

Is permanently reassigned to another job as a result of the injury or illness

The count of total days away from work for any one injury or illness may be capped at 180 days.

DB Derrick Barge

DBD Design Basis Document

DBMS Database Management System

DCS Distributed Control System

Or

Document Control System


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DDU Delivered Duty Unpaid (an Incoterm)

DE MINIMIS A benefit that is infrequent and has so little value that accounting for it would be unreasonable or impractical.

DEFERRED PAYMENTS

Commercial terms of payment which create a temporary cash deficiency when compared to standard terms of payment. Such standard terms of payment must reflect the forecasted schedule of costs incurred. Standard terms of payment require the approval of the CEO after consideration of corporate working capital requirements or may be developed in accordance with other corporate policies on standard terms of payment.

DG Dangerous Goods

DIRECT LABOR Includes all costs (including benefits and insurance) for craftsmen and manual labor (foreman

level and below) directly hired by the company that are associated with facility fabrication and assembly or installing equipment and/or materials which become a permanent part of the facility.

DIRECT MATERIALS Purchased hardware which is intended to become a permanent part of the facility. This includes commodities and pre-fabricated equipment. First fills are also included in this category.

DISCIPLINE

Grouping of employees within the same function or expertise.

The term Discipline is used on direct projects for estimating, budgeting, collecting actual costs and forecasting man-hours and labor costs. Progress control, manpower planning, earned value calculations, reporting and performance analyses are often performed at this level.

DISCIPLINE PRODUCTION ENGINEER

Person appointed by JRM to perform Operational Engineering activities on a project associated with a particular Discipline/phase. Production Engineers have a line of reporting to Senior Operations Engineers on projects.

DISPOSAL (OF ASSETS) To relinquish ownership of a fixed asset by sale, abandonment, obsolescence, trade-in, or a permanent withdrawal from service or other voluntary/involuntary conversion. Transfer of assets between entities of the Company is not considered to be a disposal.

DJR Daily Job Report

DkT Dekatherm = 10 million BTU heat value

DLB Derrick/Lay Barge

DNV, DnV Det Norsk Veritas

DOA Delegation of Authority

DOE

US Department of Energy Or Direct Operating Expense

DOT US Department of Transportation

DP Dynamic Positioning

DPA

Designated Person Ashore. As per the ISM Code, to ensure the safe operation of each ship (vessel or barge) and to provide a link between a company and those onboard. Every company, as appropriate, shall designate a person or persons ashore having direct access to the highest level of management. The responsibility and authority of the designated person or persons shall include monitoring the safety and pollution prevention aspect of the operation of each ship and ensure the adequate resources and shore-based support are applied, as required.

DPPS Dynamic Position Propulsion System


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DPR Daily Progress Report

DPS Dynamic Positioning System

DPV Dynamic Positioned Vessel

DSF Deck Support Frame

DSV Diving Support Vessel

DTCMS Desk Top Change Management System - The system used for managing Change on a project.

DWT Deadweight Tonnage – Carrying capacity of a vessel, including cargo bunkers & stores, in long tons

E & I Electrical and Instrumentation

E & M Equipment and Machinery Group of J. Ray McDermott

E & P Exploration and Production

EA Environmental Assessment. The critical appraisal of the likely effects of a proposed project, activity, or policy on the environment, both positive and negative.

EAC

Estimate at Completion: The Expended resources in hours, quantities, cost and revenues forecast at project completion for the total project scope based on the project’s current assessment. The EAC is the Original Budget + Approved Budget Shifts + Approved Change Orders + Approved Trends. Note – also referred to as ―Forecast‖.

EAC

The Expended resources in hours, quantities, cost and revenues forecast at project completion for the total project scope based on the project management's current assessment. The EAC is the Original Budget + Approved Budget Shifts + Approved Change Orders + Approved Trends. Note – also referred to as ―Forecast‖.

EBS Executive Bid Summary

ECA Engineering Criticality Assessment

ECM Engineering & Construction Management

ECS Electrical Control System

EDMS Electronic Document Management System

EEMUA Engineering Equipment & Materials Users Association

EF Early Finish

EMCA Emergency Management and Control Assessment. The critical appraisal of the organizations

ability to manage exposure to a significant event that has the potential to affect the organization on a broad front. The assessment shall consider both preparedness and response capabilities.

EMPLOYEE Anyone who is directly employed by JRM (on the company payroll) and any contractors working under the day-to-day supervision of a JRM employee.


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EMT Emergency Medical Technician

EN European Norm: Standards developed and maintained by CEN, the European Committee for Standardization or Comite Europeen de Normalization

ENERGY ISOLATION DEVICE

An energy isolation device is a mechanical device that physically prevents the transmission or release of any type of energy. These devices are capable of receiving a lockout device and a tag. Examples of energy isolation devices include:

Circuit breakers

Disconnect switches

Line valves, blocks or any other similar devices

Push buttons or selector switches or other similar control circuit devices are not considered isolation devices.

ENTITY CODE A four (4) character numeric code assigned to JRM locations, e.g. the Entity Code for Altamira is 1369.

ENVIRONMANTAL SPILL

Any un-permitted and / or unintentional discharge of a pollutant regulated by an applicable local, state or federal government into any environmental media (air, water, land).

ENVIRONMENT Surroundings in which the facility or vessel operates, including air, water, land, natural resources, flora, fauna, humans and their interrelation.

ENVIRONMENTAL ASPECT

Element of a facility or vessel's activities, products or services that can interact with the environment

ENVIRONMENTAL IMPACT

Any change to the environment, whether adverse or beneficial, wholly or partially resulting from an organization's activities, products, or services.

EOB End of Business – Usually meant to refer to end of business day

EOM End of Month

EOU Engineering Operating Unit

EPA, USEPA US Environmental Protection Agency

EPCI, EPC, EPIC Engineering, Procurement, Construction, Installation – letters may be combined in a number of

ways

EPIRB Emergency Position Indicator Radio Beacon

EQUIPMENT DAMAGE Damage to any assets including buildings, equipment and / or vehicles.

ERB Enclosed Rescue Boat

ERC Emergency Response Coordinator

ERD Emergency Response Director

ERT Emergency Response Team

ESA Engineering Services Agreement


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ESD Emergency Shutdown

ESDV Emergency Shut Down Valve

ESTIMATING DEPARTMENT

The department responsible for producing AFC estimates that are the basis of Progress budget.

ETA Estimated Time of Arrival

ETD Estimated Time of Delivery (or Departure)

ETLP Extended Tension Leg Platform

EUR ING European Engineer (term equivalent to PE, used mainly in the European Union)

EVA Earned Value Analysis

EW Erector Weld

EXCAVATION Any man made cut, cavity, trench or depression in an earth surface in excess of 6 inches formed by earth removal

EXCEPTION REPORT Management information, based in the reporting system, which is utilized to analyze abnormal conditions

EXECUTIVE OPERATING COMMITTEE (EOC)

A committee consisting of the following individuals:

Chief Executive Officer

Chief Operating Officer

Operating Group Heads

Chief Financial Officer

General Counsel

Highest ranking Officer for Human Resources

EXPENDED COST The total of all costs incurred (actual costs and accrued costs) as of the specified reporting date.

EXTERNAL COSTS

Costs for which the Project Manager does not have execution control.

Examples of External Costs are currency exchange rate fluctuations, JRM standard cost allocation changes (e.g., over/under recoveries) and consequential changes (e.g., changes in the barge execution schedule). This cost reporting category provides additional detail regarding the project’s profit profile as it identifies those costs incurred by the project that are deemed to be beyond the Project Manager’s control.

F Fahrenheit

F & D Faced and Drilled

F & G Fire and Gas

F to F Face to Face (see also F-F)

FAC First Aid Case. A work related injury or illness resulting in first aid treatment. This is not a recordable incident.

FACS Frame & Cable System (Telecom)

FAP Fire Alarm Panel


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FAS Free Alongside (an Incoterm)

FAT Factory Acceptance Test

Or

Fatality

FB Flat Bar

FBD Function Block Diagram

FBE Fusion-Bonded Epoxy (Epoxy Based Pipe Coating)

FBM Field Bus Module

FBP Final Boiling Point

FC Fail Closed

FCA Free Carrier

FCAW flux-cored arc welding (arc welding process in which the welding rod contains an inert gas to protect metal from burning during fusion)

FCC Federal Communications Commission

FCCT Formation Control Capability Test

FCCU Fluid Catalytic Cracking Unit

FCV Flow Control Valve (sometimes Choke Valve)

FDA US Food and Drug Administration

FDDI Fiber Distributed Data Interface

FE Flanged End

Or

Finite Element

FEA Finite Element Analysis

Or

Fire & Explosion Analysis

FEATURE CODE A four (4) character numeric code used to identify cost types such as materials, labor, etc. For example, feature code 2315 is used for costs related to air travel.

FEDERAL LEGISLATION Any bill, regulation, etc., which if passed would become a part of the Federal laws of the United States.

FEE Front End Engineering

FEED Front End Engineering and Design

FEEP Front End Engineering and Procurement


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FEER Fire, Explosion, & Escape Review

FEL Front End Loading (Same as FEED)

FEM Finite Element Model

Or

Finite Element Method

FERA Fire & Explosion Risk Assessment (or Analysis)

FF Flat Faced

F-F Face to Face (see also F to F)

FFD Full Field Development

FGMS Fire & Gas Monitoring System; see also PFGMS

FGS Fire and Gas System

FIM Free Issued Materials

FIRST AID TREATMENT

Any one-time treatment and any follow-up visit for the purpose of observation of minor scratches, cuts, burns, splinters and so forth, which do not ordinarily require medical care. Such a one-time treatment and the follow-up visit for the purpose of observation are considered first aid although provided by a physician or registered medical professional.

FIT Formation Integrity Test

FIXED ASSETS

Fixed assets are those assets having physical properties and: 1. an estimated economic useful life of longer than one year, and 2. for domestic entities, a unit cost of $1,500 or more for all classifications of assets; and for foreign entities, a unit cost of $3,000 or more for all classifications of assets.

FLA Full Load Amperes

FLNG Floating LNG Production, Storage and Offloading

FLS Fatigue Limit State

FMEA Failure Modes & Effects Analysis

FO Fail

FO Fail Open

Or

Fiber Optic

FOAK First of a Kind

FOB Free on Board; Term indicating that the stated price of an item includes loading onto a carrier at a specified location

FOC Free of Charge

Or


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Fiber Optic Cable

FOI

Floating Offshore Installation

Or

Fiber Optic Installer

Or

Field of Interest

Or

Field Operations Intelligence

Or

Fleet Operational Investigation

Or

Freedom of information

FOS Factor of Safety (see also FS)

FOT Free on Truck

fp Freezing Point

FP&S Fire Protection and Safety

fps Foot Pounds-second

Feet Per Second

FPS Floating Production System

FPSO Floating Production, Storage and Offloading (system or unit)

FPSU Floating Production & Storage Unit

FPU Floating Production Unit

FPV Floating Production Vessel

FRA Fire Risk Analysis

FRP Fiberglass-Reinforced Plastic

FS Forged Steel

Or

Factor of Safety

FSO Floating Storage & Offloading (system or unit)

FTB Flow-line Tie-in Base

FTHP Flowing Tubing Head Pressure

FTR, FTRS Functional Test Record (or Requirement), Functional Test Record (or Requirement) Sheet

FUCAT Fuel and CATering


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FULL-TIME EMPLOYEE

An individual hired to perform work on a continuing basis for an indefinite period. Such work to be performed for the minimum number of scheduled full-time employment hours as determined within each division (facility), e.g., 40 hours per week on a continuing basis. Such work is not to be considered an implied contractual commitment of employment.

FUNCTION OR FUNCTIONAL HEADS

Those employees that manage functional rather than operational activities of the Company. They consist of:

The Chief Financial Officer

The General Counsel & Corporate Secretary

The highest ranking corporate officer for Human Resources

The Corporate Compliance Officer

The head of Corporate Development and Strategic Planning

The head of Quality, Health, Safety and Environmental Services

The head of Global Services and Technology

The head of Global Marine Services and Technology

The head of Business Development and Operational Strategy

FVF Formation Volume Factor

FW Fire Water

FY Fiscal Year

FYE Fiscal Year Ending

GA General Arrangement

GALV, Galv ` Galvanized

GBS Gravity Based Structure

GENERAL COUNSEL The Executive Vice President and General Counsel of MII

GENERAL PURPOSE SCAFFOLDING

This category may include:

All tube and coupler scaffolding

Fixed frame, modular scaffolding above six (6) feet (2.0 meters) in height

Any scaffolding other than low-level scaffolding

GG Gauge Glass

GLDU Gas Lift Distribution Unit (Manifold)

GLIM Gas Lift Injection Manifold

GMAW Gas Metal Arc Welding (arc welding process in which an inert gas is supplied in a gaseous form from an outside source)

GMDSS Global Maritime Distress & Safety System

GOM, GoM Gulf of Mexico

GOSP Gas & Oil Separation Plant (or Platform)

GPM Gallons Per Minute


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GPS Global Positioning System: Satellite positioning & navigation network developed by the US Department of Defense

GRN Goods Received Note

GROSS BOOK VALUE The amount at which the asset is recorded in the fixed asset register of the entity disposing of the asset before application of any accumulated depreciation.

GROSS PROFIT MARGIN

The calculated difference between Revenue and Financial Cost (Class 4) (excluding corporate and local G&A costs and interest expenses).

GROUP LOCK

This is where a locking hasp is used and the first lock that is placed is placed by the Maintenance Supervisor (Chief Engineer for Offshore), and is the first lock on and the last lock off. It remains in place throughout the entire servicing or maintenance operation. The group lock is issued where there are multiple crafts involved in the operation (e.g., fitters' mechanics and electricians).

GROUP LOCKOUT

Group lockout is when a supervising authorized employee follows the steps outlined in the procedures section of this document in order to lockout equipment for a group of authorized employees. This facility is available where it is not necessary for each of the authorized employees to place his / her personal lock on the isolation device(s); however, all authorized employees must sign on and off the register.

GRP Glass-fiber Reinforced Plastic

Or

Glass Reinforced Piping

GTAW Gas Tungsten Arc Welding

GTAW Gas Tungsten Arc Welding

GTG Gas Turbine Generator

HAT Highest Astronomical Tide

HAZ Heat Affected Zone

HAZAN Hazard Analysis

HAZARD The inherent property or ability of something (a physical condition, act or omission) to cause

harm; the potential to interrupt or interfere with a process or person, which is or may be causally related to an incident by itself or with other variables

HAZID

A hazard identification assessment; a technique for analysis of potential hazards and quantification of the risks associated with a planned project; the risk of loss to personnel, operations, the environment or company reputation from these hazards; and the identification of controls that will be used to mitigate the risk to ALARP

HAZMAT Hazardous Materials

HAZOP A hazard and operability (study or analysis): A technique for analysis of potential deviations from a design intention

HC Hydrocarbon Molecule

HFD Hydro test Flow Diagram

HIC Hydrogen Induced Cracking

HIPPS High Integrity Pipeline Pressure (Protection) System


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HIPS High Integrity Protection Shutdown System

HOC Houston Operations Center

HPU Hydraulic Power Unit

HR Human Resources

HSES Health, Safety, Environmental and Security (Also HSE, HSSE, EHS EH&S)

HSES OBJECTIVE

A statement relating to HSES that is written in terms of specific measurable time-based and verifiable outcomes that challenge the originator (vessel, facility, Operating Unit, etc.) to achieve the desired goals. Dependent upon usage, GOALS are general in nature, while OBJECTIVES are specific, measurable and time-based.

HSES POLICIES Statement by the company of its intentions and principles in relation to its overall HSES

performance which provides a framework for action and for the setting of HSES objectives and targets.

HSES TARGET Detailed (quantified) performance requirements that are developed in order to achieve established HSES objectives.

HURDLE RATE

The minimum rate of return satisfactory to management used (i) to discount a series of cash flows for the purpose of calculating the net present value of an investment (―NPV‖), and (ii) to compare to the internal rate of return (―IRR‖) of a series of cash flows. Negative net present values determined using the hurdle rate or IRRs below the hurdle rate would be unacceptable, hence the ―hurdle‖. The hurdle rate is generally the weighted average cost of capital of the company as agreed by management from time to time, but can be adjusted up or down to account for risk or lack thereof specific to a given situation. For example, the hurdle rate for new technology would be higher than the hurdle rate for a monopoly investment.

HV Hand Actuated Valve

HVAC Heating, Ventilation & Air Conditioning

IACS International Association of Classification Societies

IADC International Association of Drilling Contractors

IC Incident Commander: the person that assumes overall responsibility for coordinating management support for an emergency

ICP Integrated Contingency Plan

ICSS Integrated Control and Safety System

ID Inside Diameter

IDC Inter-discipline Check

Or

Internal Design Check

IDLH Immediately dangerous to life and health. Conditions that pose an immediate threat to life or

health or conditions that pose an immediate threat of severe exposure to contaminants, such as radioactive materials, which are likely to have adverse cumulative or delayed effects on health.

IE Industrial Engineer


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IEEE Institute of Electrical & Electronics Engineers

IFA Issued for Approval

IFI Issued for Inquiry

IFP Issued for Purchase

IFR Issued for Review

IMO International Maritime Organization, a specialized agency of the United Nations devoted to Maritime affairs.

IMPACT (CHANGE) Assessment and identification of the effect that change will have on factors such as personnel, cost, assets, reputation, environment, productivity, systems, safety, quality etc.

IMPACT (RISK) The result should the risk or opportunity event occur, expressed in financial and/or time

measurements. If there is no management action taken to influence the event, the result is an unmanaged impact; if action is taken, the result is a managed impact.

IMS Integrated Management System

IMSAT Integrated Management System Assessment Tool – System of annual assessment to gauge compliance with JRM Management Guidelines

IMST Incident Management System Training – Emergency Response Planning and Control

INCIDENT An unplanned, undesired, event that can result in physical harm and / or property damage,

usually resulting from contact with a source of energy above the ability of the body or structure to withstand it. This also includes near miss or errors.

INDIRECT LABOR

Includes all labor which does not contribute directly to items that become a permanent part of the facility. This includes Project Management, field supervision above the foreman level (typical), scaffolding, crane and other construction plant operators, maintenance, warehouse personnel, etc.

INDIRECT MATERIALS

Non-permanent materials (e.g., consumables, PPE, etc.) which are required to complete the construction of the project, but will not remain behind as part of the physical plant after completion.

INDUSTRIAL CONTRIBUTIONS

Gifts and donations (exclusive of dues and/or subscriptions) made for the primary purpose of enhancing the Company's general business environment through support of the free enterprise system or specific industry aims. Generally includes contributions to Chambers of Commerce, trade associations and business or industry oriented political action groups.

INMARSAT International Marine Satellite System

IQA Institute of Quality Assurance

IRA Installation Risk Assessment

IRCA International Register of Certified Auditors

IRCD Inline Rate Control Device

ISM Institute of Supply Management

ISM CODE International Safety Management Code for the safe operation of ships and for pollution prevention.


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ISO International Standards Organization

ISOLATION HARDWARE

Hardware refers to any equipment that is used as physical isolation device or to denote isolation. This includes tags, locks, locking hasps, chains, blinds / spades, etc.

ISOLATION REGISTRATION SHEET

An isolation registration sheet (IRS) is a record of all isolations and de-isolations performed on a job or equipment under the jurisdiction of a work permit. An isolation registration sheet shall be used whenever isolation is to be taken.

ISPS CODE International Ship and Port Facility Security Code

ITB Invitation to Bid (see also ITT, RFP, RFT, RFQ)

ITR Inspection Test Record used in completions management where each ITR shall provide a discrete list of steps and scope definition or parameters to allow for the acceptance of the work

ITT Invitation to Tender (see also ITB, RFP, RFT, RFQ)

IWOCS Integrated Well Operation Control System

J RAY J. Ray McDermott and its subsidiaries and affiliates (externally)

JACKET Subsea Support Structure for a Topsides Complex

JBBS JRM Bug and Band Welding System

JIT Just in Time

JOA Joint Operating Agreement

JOB A sequential set of work tasks performed to complete a specific objective with a definable beginning and end.

JOB NUMBER CODE

A five (5) character numeric code assigned to WBS line items representing a breakdown of the project based on project phasing requirements, client requirements, or a logical segregation of project execution or financial elements, e.g, the identification of lump sum and reimbursable contract elements.

JRM J. Ray McDermott and its subsidiaries and affiliates (internally)

JRMAP J. Ray McDermott Asia Pacific

JRME J. Ray McDermott Engineering LLC

JRMMEI J. Ray McDermott Middle East & India

JV Joint Venture

KP Kilometer Post

KPI’s Key Performance Indicators – indicators used to provide measurements against targets providing

leading and lagging indicators for specific agreed processes in order to assess performance and look for continual improvement


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LAGGING INDICATORS

Statistical verification or the measurable results of HS&E system performance. Examples include:

Injury / illness rates

Medical and workmen compensation costs

Productivity losses

Costs and down time due to equipment damage

Government fines and penalties

LAT Lowest astronomical ide

LB Lay barge

LBP Length Between Perpendiculars

LD Liquidated Damages

Or

Lay down

LEADING INDICATORS

HS&E program statistics used proactively to drive continuous improvement. Statistics predict HS&E performance or effectiveness. Examples include:

Number of action items closed

Number of Leader men self-assessments

BBSM contact rates

LEASE AGREEMENT

A lease/rental/charter agreement conveying the right to use, direct the use of, or exercise physical control of an asset (land and/or depreciable assets) provided the asset is the predominant part of the agreement. This excludes inter/intracompany agreements and agreements in which the asset is incidental to the rendering of a service or technical service labor (e.g., janitorial services, diving services, x-ray services, etc.).

LEASE AMOUNT

The payments the lessee is obligated to make or can be required to make in connection with the lease agreement. The lessee's obligation to pay excludes executory costs, such as insurance, maintenance or taxes, and any other associated expenses in connection with the leased property. The lease amount for property leased on a month-to-month rental agreement (without minimum or maximum time restraint) shall be determined assuming a minimum twelve (12) month lease period.

LEASED EMPLOYEE

The type of employee who is obtained from, and whose payroll functions are provided by, an outside leasing agency; and who meets all of the following criteria established by Internal Revenue Code Section 414 (n) (2): 1. The services rendered by the individual are provided through an agreement with a third

party; 2. The individual has performed services for the Company on a substantially full-time basis for

a period of one (1) year or longer; and 3. The services performed are the type historically performed by the employees of the

Company. Leased employees are not eligible to participate in any Company sponsored employee benefits program.

LEAVE OF ABSENCE An unpaid leave of absence taken with the permission and approval of the Company.

LEGAL REVIEW

An assessment of a lease to determine business liabilities and obligations. A legal review includes, but is not limited to, an assessment of legal considerations, tax and insurance liabilities, peripheral and attendant expenses and risks, compliance with Corporate mandated policy, by-laws or charter, city, state or federal laws, rules, or regulations, common legal practices, etc.

LEL Lower Explosion Limit

LIFE OF THE Document defining Legal Department involvement during all phases of a project


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PROJECT LEGAL SERVICES

LL Lessons Learned

LNG Liquefied Natural Gas

LOA Length Overall: Length of a ship from extreme points on either end

LOCKOUT DEVICE

A lockout device is a device that utilizes a positive means such as a combination or keyed lock to hold an energy isolating device in the safe position so as to prevent energizing of equipment. Examples of lockout devices include, but are not limited to the following: combination or keyed locks and / or chains, bolted slip blinds, blank flanges, locking hasps or locking cabinets in which a master key may be placed.

LOI Letter of Intent

LOPA Layers of Protection Analysis

LOSS

Loss is the negative impact (downgrade of the business process) due to events such as:

Personnel Injury

Environmental release or spill

Property Damage

Loss of production

Litigation

Poor product quality

Poor performance quality

LOW LEVEL SCAFFOLDING

Is scaffolding that consists of any scaffolding built up to a maximum height of four feet. This scaffold consists of a fixed frame or modular scaffold

LPG Liquefied Propane Gas

LPT, PT Liquid Penetrant Test

LQ Living Quarters

LR Lloyds Register

LTI Lost Time Incident. An incident resulting in days away from work.

LTIR Lost Time Incident Rate. (LT! / Man hours x 200,000)

MAOP Maximum Allowable Operating Pressure

MARPOL International Convention on Marine Pollution

MCCI McDermott Caspian Contractors Inc.

McDERMOTT McDermott International, Inc.


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MCS Material Control System ( a sub-component of MMS)

MCS Master Control System for Subsea Architecture

MCSAFE McDermott System Analysis and Facility Evaluation. An audit protocol against the HSES

Guidelines to establish a star rating for each facility based on their implementation of the requirements of the HSES Guidelines.

MEDEVAC Medical Evacuation

MEDIA Any form of communication of news, ideas, reports, or other forms of information to the public by any means. Print media includes newspapers, magazines, trade and business journals. Electronic media is television and radio.

MEDICAL TREATMENT

The management and care of a patient to combat disease or disorder. Some examples of Medical Treatment includes second applications of antiseptics for infections, second or third degree burns, sutures, a physicians removal of a foreign body that has penetrated the eye, more than one dose of prescription medications, fractures, loss of consciousness (regardless of follow-up treatment) and is further defined in OSHA 29 CFR 1904.

MEG Mono-ethylene Glycol

MeOH Methanol

MFD Mechanical Flow Diagram (see also P&ID)

MFEA Multiple Failure Effects Analysis

MicroSAS Microcomputer Structural Analysis System, McDermott proprietary software

MIG Metal Inert Gas (welding)

MII McDermott International, Inc.: Parent company of J Ray McDermott

MILITARY LEAVE OF ABSENCE

A furlough by reason of service in the Uniformed Services.

MMS US Minerals Management Service

Or

Materials Management System

MOBILE PLATFORM A mobile platform or stage that is driven up or down by mechanical / hydraulic means

MOC Management of Change (including any major or significant changes to systems, process/method,

procedures, equipment, products, materials, laws, regulations and standards)

MODU Mobile (or Modular) Offshore Drilling Unit

MODV Mobile Offshore Drilling Vessel

MOU Memorandum of Understanding

MPSV Multi Purpose Support Vessel


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MPT, MT Magnetic Particle Test

MRO Maintenance, Repair and Operations

MRO Maintenance, Repair and Operations

MRS Material Requisitioning System

MSA Master Services Agreement

MSDS Material Safety Datasheet

MSF Module Support Frame

MSR Material Status Report

MSV Multi-Purpose Support Vessel

MTC Medical Treatment Case. A recordable work related injury or illness resulting in medical treatment

MTN Material Traceability Number

MTO Material Take-off

MTPA Million Tons Per Annum (Capacity of LNG liquefaction)

MWS Marine Warranty Surveyor

NACE National Association of Corrosion Engineers

NAVAIDS Navigational Aids

NC Normally Closed

Or

Non-conformance

NDE Non-Destructive Examination

NDT Non-Destructive Testing

NEAR MISS Incidents with no injury, property damage, environmental damage or other form of loss but having

the potential to cause injury, property damage, environmental damage or any form of loss under slightly different circumstances. This could include an unsafe act.

NFPA National Fire Protection Association is a worldwide organization providing scientifically based

consensus codes / standards, research, training and education to reduce fire and other associated hazards.

NGO Non Government Organization

NO Normally Open

NOK Next of Kin


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NOLA J Ray McDermott New Orleans

NON-ROUTINE JOB A job that is infrequently performed or a situation whereby the job hazards significantly change with its location.

NON-U.S. RELATED ENTITY

Any division of a foreign (non-U.S.) corporation that is at least 50% owned by McDermott International, Inc., or a subsidiary of McDermott International, Inc.

NPV Net Present Value

NRV Non-Return Valve (Sometimes Check Valve)

OD Outside Diameter

OEM Original Equipment Manufacturer

OFE Owner Furnished Equipment: Equipment specified & procured by the owner or contractor acting

on behalf of the owner (usually tagged)

OFI Owner Furnished Information

OI Operating Income

OLIVES Payables sub-component of MMS

OME Order of Magnitude Estimate

OPERATING LEASE Any lease which is not a capital lease.

OPERATING UNIT Area of operation under the control of a Vice President or General Manager that reports as a consolidated unit.

OPERATIONS UNIT A functional area within an operating unit (e.g., Offshore Operations, Fabrications Operations, Engineering, etc.)

OPEX Operating Expenditure

OPPORTUNITY Any event (or series of events) of unknown certainty, the occurrence of which could positively affect the overall performance of the project.

ORGANIZATION CHART A graphic representation showing the reporting relationships of the entities and/or functional activities of the Company. Organization charts do not include the degree of responsibility assigned to an individual or organization.

ORGANIZATION RESPONSIBILITY

A Corporate entity has "organizational responsibility" for an employee when it has an indefinite functional assignment for the employee and it records and disburses the employee's payroll. NOTE: A local employee or an employee on "Main Office" payroll for confidential reasons is interpreted to have his payroll recorded and disbursed by the corporate entity which has an indefinite functional assignment for the employee.

ORIGINAL BUDGET The ―as sold‖ estimate as adjusted and redistributed by project management to reflect the Project

Execution Plan or updated project requirements. This establishes the original cost baseline for the project and is signed/approved by the Project Manager and distributed to the project team

OS&D Overages, shortages & damages: Applies to the receipt of materials and goods in comparison to the PO

OSCP Oil Spill Contingency Plan


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OSHA United States Occupational Safety and Health Administration. The regulatory arm of the US

Department of Labor, which promulgates safety and health standards, facilitates training programs, and enforces regulations on work sites.

OSV Offshore Support Vessel

OU Operating Unit: A P&L entity within the Company

OUT OF SEQUENCE WORK

A change in work process that reduces the float on any of the top 3 critical paths by more than 2 weeks (or causes it to go negative).

A change in work process that reduces the float on the specific critical path (not the top 3) to less than a month.

All measurement is to the ―Control Schedule‖ and is before ―work-arounds‖.

OWNER The customer for a project which JRM has contracted to perform

P&ID Piping & Isometric Diagram (see also MFD)

P/L Punch-list

PACA Proposed Acquisition of Additional Capital Assets – MII procedure 0606-003 establishes approval

requirements for PACA requests and guidelines for the submission and approval of these requests. (see also Capital Expenditures)

PANCAKE Fabricated Desk Level

PART-TIME EMPLOYEE

An individual hired to perform work on a continuing basis for an indefinite period. Such work to be performed for less than the minimum number of scheduled full-time employment hours per week as determined within the division (facility). Such work is not to be considered an implied contractual commitment of employment.

PAYBACK PERIOD The length of time required from time of startup for the undiscounted net cash flows to reflect a break-even condition (cash in = cash out).

PCE Project Cost Engineer

PCM Project Controls Manager

Or

Project Completion Module

PCS Process Control System

PCV Pressure Control Valve

PD Project Director

PDF Portable Document File (format)

PDMS Plant Design Management System, 3D Request for Proposal (see also ITB, ITT, RFT) CADD System

PDS Similar to PDMS except developed by Intergraph

PE Project Engineer


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PEG Procurement Executives Group

PEM Project Engineering Manager

PEP Project Execution Plan

PERSONAL LOCK

A lock assigned to one specific authorized employee. This lock may be assigned by checking it out from a lockout board, or an employee may be permanently assigned a lock. Locks shall be uniquely keyed, and that the person placing the lock is the only one who will have control of all keys specific to that lock. The lock is used only to protect the individual authorized employee that is the owner of the lock and shall be removed at the end of the shift or whenever the job is completed, whichever comes first.

PFD Process Flow Diagram

PFSO Port Facility Security Officer as required by the ISPS Code: The person designated as

responsible for the development, implementation, revision and maintenance of the port facility plan and for liaison with the ship security officers and company security officers.

PH Pre-Heat

PIMS Project Information Management System

PIN Personal Identification Number

PIP Pipe in Pipe

PL Pipeline

PLC Programmable Logic Controller

PLEM Pipeline End Manifold

PLET Pipeline End Termination

PM Project Manager

PMI Project Management Institute

Or

Positive Material Identification

PMT Project Management Team

PO Purchase Order

POB Persons (or personnel) Onboard

POLITICAL CONTRIBUTIONS

Gift or donations which directly or indirectly are donated: 1. For political purposes on behalf of candidates for political office(s), political parties and/or

elected incumbent office holders at the federal, state or local level; or, 2. To support, oppose or take a public position with respect to propositions submitted for public

approval or other non-partisan matters for legislation affecting the Company, its employees, or its shareholders.

Such contributions may include payment of Company funds, loans, advances, gifts of Company assets or services, use of facilities or personnel, etc. Political contributions must be made in strict compliance with the Revised SEC Consent Decree and FCPA Compliance Manual as well as any


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updates or addendum thereof.

POR Purchase Order Requisition (Requisition)

PPM Project Procurement Manager - The individual responsible for the successful execution of the procurement scope of a specific project and assigned by Procurement

PPP Project Profit Plan

PQR Procedure Qualification Record (Welding procedure)

Pre-Comm Precommissioning

PREVENTION OF POLLUTION

Use of processes, practices, materials or products that avoid, reduce or control pollution, which may include recycling, treatment, process changes, control mechanisms, efficient use of resources and material substitution. The potential benefits of prevention of pollution include the reduction of adverse environmental impacts, improved efficiency and reduced costs.

PRIME CONTRACT A mutual binding agreement between Client/Customer and Company/Contractor for a defined scope of work in a Project.

PROBABILITY The likelihood of the occurrence of the risk or the potential for achievement of the opportunity.

PROCEDURE A written statement of the work steps taken by people to accomplish a particular task or job. It documents the interactions of people that are required to carry out the broader policies of the corporation and its operating units.

PROCUREMENT DEPARTMENT

The department designated to lead in the inquiry process and following through to complete the procurement process with appropriate operations or Cost Center Manager concurrence/approvals including maintenance of the purchase order, expediting and managing any change negotiations with the supplier.

PROGRESS BUDGET The Control Budget plus all approved Variances (Revision Orders).

PROGRESS REPORTING SYSTEM

A management system which combines the progress measurement functions [earned hours] with actual hours expended [time card records] to provide a measurement of efficiency on yard executed work. Examples include the Field Construction Budget [FCB] as used in Jebel Ali / Batam and the AMS as used in Morgan City

PROGRESS STATUSING SYSTEM

A system developed to monitor and report progress in the designated fabrication disciplines. This can be in the form of a propriety system such as the Project Information Management System [PIMS] where the primary function is completions management but when enabled is used to monitor at a detailed count level

PROJECT The facility or pipeline constructed in fulfillment of the contract.

PROJECT ACCOUNTANT

Person appointed by JRM to be responsible for the performance of all project requirements regarding client invoice preparation, financial and accounting reporting, the monitoring and reporting of actual costs, preparation of project Cash Flow status, monitoring and EAC preparation for overhead expenditures.

PROJECT CHANGE COORDINATOR

Person appointed by JRM to be the focal point for coordinating the preparation of all variances

PROJECT CONTROLS MANAGER

Person appointed by JRM to be responsible for ensuring that the cost control system is

implemented and methodologies/practices are conducted in accordance with corporate and client

requirements

PROJECT DIRECTOR / MANAGER

Person designated and authorized by the Company/Contractor to manage and execute the Project

to the required standards of quality, safety, cost, schedule and ethics. This person shall have full


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financial accountability for the Project’s profit and loss.

PROJECT PROFIT

The calculated difference between the Revenue and Full Project Cost (Class 1) EAC (including corporate and local G&A costs and interest expenses). Note: for the purpose of the monthly Project Review process this Project Profit is exclusive of project costs due to external impacts. These External Costs are reported as a separate line item.

PROJECT UNDERWRITING

Direct financing by, or third-party financing arranged by, McDermott International, Inc., its subsidiaries or affiliated companies, for a customer relative to the customer's funding requirements for the applicable project wherein:

Repayment of financing is to be from the cash flows generated by the project; and

The primary credit risk recourse is the cash flow and assets of the project; and

Direct financing or third-party financing arranged for the customer is in respect of the total project and not limited to the scope of the work being performed by the Company.

PROM Project Risk / Opportunity Management

PROPOSAL / BID Company/Contractor’s offer to perform the work required by the Client/Customer.

PROPOSAL MANAGER

Person responsible for and the development of a specific proposal in response to a Client’s Invitation to Bid (or similar request). Coordinates input from functional departments and reviews cost estimate, schedule, clarifications, etc. prior to submission to Management for review. Also coordinates responses to post bid pre-award clarification requests.

PROVISIONAL SUM A contractual cost element (item or activity) for which a definitive cost estimate can not be

established during the project proposal phase. An estimated budget is included in the contract with the agreement that the amount is to be adjusted during project execution.

PSV Pressure Safety Valve (Sometimes Relief Valve)

Or

Platform Supply Vessel

PT, LPT Liquid Penetrant Test

Or

Pressure Transmitter

PTMI PT McDermott Indonesia

PTW Permit to Work

PUBLIC RELATIONS Selective involvement of the Company in political, business and social problems of current and future corporate concern, including the initiation, planning, coordination, implementation, and measurement of publicity, advertising, community relations and employee communications.

PUBLICITY Dissemination of information to the media. News publicity is generally released on a selective basis and provided to specific media to achieve a particular purpose.

PURCHASE ORDER A Purchase Order is a legal document detailing the required scope of supply of materials or equipment and the conditions under which they will be supplied from a selected supplier.

PVT Pressure Volume Temperature (Lab Sample)

PWHT Post Weld Heat Treatment

QA/QC Quality Assurance/Quality Control

QI Quality Indicator – A metric devised from the Key Performance Indicators to indicate the level of quality being achieved on a project

QP Quality Plan

Or

Quality Procedure


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QUALIFIED PLAN AWARD

An employee achievement award made under a written plan or program that does not discriminate in favor of highly compensated employees.

Quantity Surveyor Person assigned on a project to perform material quantification and pricing (remeasurements) on a project. Role is typically found on unit rate projects.

R/O Risk / Opportunity

R/O STRATEGY The methods and actions the Project Team plans to use to manage or reduce the risk or achieve the opportunity.

RECORDABLE OCCUPATIONAL INJURIES OR ILLNESSES

Any work-related injuries or illnesses which result in:

Fatalities, regardless of the time between the injury and death or the length of the illness

Days away from work

Restricted work or transfer to another job

Medical treatment beyond first aid

Loss of consciousness

Any other significant work-related injury or illness diagnosed by a physician or other licensed

health care professional, even if it does not result in one of the above conditions (i.e., hearing

loss)

ReGAS Degasification

REGISTERS AND LISTS

Used to monitor and report progress at a detailed count level in designated fabrication disciplines

REPORTING UNIT A foreign or domestic accounting office, designated by the Vice President, Tax Administration, which issues inter-company billings.

REQUISITION, Req’n Document used to initiate the procurement of goods and services not available in warehouse inventory

REQUISITIONER Individual authorized to requisition goods and/or services

RESIDUAL VALUE Residual value can be assumed to be equal to the Net Book Value, but consideration must be given to the impact of inflation, taxes, if applicable (consult with the Tax Department), technological developments and obsolescence, unusual dismantling or shutdown costs, etc.

RESTRICTED WORKDAYS

Work that occurs when a physician or other licensed health care professional recommends, as the result of a work-related injury or illness, that an employee is kept from performing one or more of the routine functions (work activities employee regularly performs at least once per week) of their job, or from working a full workday that they would otherwise have been scheduled to work. The incident did not involve any days away from work and the count of restricted days is done in the same way as "Days away from work".

Restricted work days include:

Temporary assignment whereby the employee is assigned to another job due to occupational injury or illness.

The employee worked at a permanently assigned job but could not perform all the duties connected with their job due to occupational injury or illness.

REVISION ORDER A change in the Progress Budget where the change is a growth in the work scope is not the

result of change in AFC estimates. It includes both abortive work and out of sequence work.

RFP Request for Proposal (see also ITB, ITT, RFT, RFQ

RFQ Request for Quotation


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RFT Request for Tender (see also ITB, ITT, RFP, RFQ)

RISK Any event (or series of events) of unknown certainty, the occurrence of which could adversely

affect the overall performance of the project. A list of risks common to JRM’s operations is included in the Risk Inventory.

RISK EXPOSURE An expression of potential negative impact to the execution of a project. Determined similarly to Risk Event Contingency but applies only in the project execution (not proposal) phase.

ROMAP Risk / Opportunity Management Action Plan — The actions by a specific individual or entity taken at a designated time to eliminate or reduce a risk achieve an opportunity.

ROS Required on Site Date

ROUTINE JOB A job that is performed at least one or more times per week and where the location of the job does not significantly change the job hazards.

ROV Remotely Operated Vehicle: Self propelled diving/inspection vessel used for subsea surveys, subsea work operations & remote measuring operations

RT Radiographic Test

RWC Restricted Work Case. Restricted Work Case. A recordable work related injury or illness resulting in restricted work days.

SAFETY Freedom from unacceptable risk or harm (or a judgment as to the acceptability and tolerability of risk).

SAFETY AND HEALTH PROGRAM

A plan to provide for the safety and health of the Company's employees and the general public in relationship to the Company's operations. Primary objectives of the program are the reduction of accident frequency and severity and a safe and health working environment.

SALE AND LEASEBACK AGREEMENT

A transaction which involves the sale of property by the owner and a lease of the same property back to the seller.

SALES/CUSTOMER FINANCING

Financing excluding PROJECT UNDERWRITING, arranged by McDermott International, Inc., its subsidiaries and affiliated companies for a customer relative to the customer's:

Purchase of goods and/or services from McDermott International, Inc., its subsidiaries or affiliated companies; or

Project funding requirements wherein McDermott International, Inc., its subsidiaries or affiliated companies are providing the turnkey or project management services.

SAW Submerged Arc Welding

SBM Single-Buoy Mooring

SCADA Supervisory Control and Data Acquisition

SCBA Self Contained Breathing Apparatus

SCM Subsea Control Module

SCR Steel Catenary Riser

SCSSV Surface Controlled Subsea Safety Valve

SDC Single Discipline Check

SDR Specification Deviation Request


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SDV Shut Down Valve

SENIOR FABRICATION OPERATIONS ENGINEER

Person appointed by JRM to be in charge of all Fabrication support activities for a specific project assisting the Construction Manager.

SERVICE IN THE UNIFORMED SERVICES

The performance of duty on a voluntary or involuntary basis in a uniformed service, including active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, funeral honors duty performed by National Guard or reserve members, absence from work for an examination to determine a person's fitness for any of the types of duty listed herein.

SIL Safety Integrity Level (Ref IEC 16508)

SIMOPS Simultaneous Operations

SIMPLE LOCKOUT Simple lockout is when each authorized employee servicing or maintaining the equipment places his / her own personal lock on the energy isolating device

SIV Subsea Isolation Valve

SMAW Shielded Metal Arc Welding

SOLAS

International Convention for the Safety of Life at Sea developed by IMO. The contracting governments undertake to promulgate all laws, decrees, orders and regulations and to take all other steps which may be necessary to give the present Convention full and complete effect, so as to ensure that, from the point of view of safety of life, a ship is fit for the service for which it is intended

SOPEP Standard Oil Pollution Emergency Plan – as required by IMO Resolution MEPC 54(32) to

International Convention for the Prevention of Pollution from Ships (MARPOL) Regulation 26 Annex 1 as issued by the International Maritime Organization (IMO)

SOX Sarbanes Oxley Act

SPEC Specification

SPECIAL PURPOSE SCAFFOLDING

Special purpose scaffolding shall be designed by a competent engineer

SPM Single Point Mooring System

SPMT Self Propelled Mobile Transporters

SPORTS

Standard Procurement Ordering, Requisition, and Tracking System. SPORTS is a proprietary software system used for the management of the acquisition of goods and services. It is the main repository of all purchasing and related expediting, shipping, receiving and supplier information and is used by all JRM Operating Units.

SQ Site Query

SS Semi-Submersible

SSE Short Service Employee, Employees who are new hires, rehires that have less than 1 years service since last hire, and employees transferring to new crafts


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SSO

Ship Security Officer as required by the ISPS Code: Person on board ship, accountable to the Master, designated by the company as responsible for the security of the ship, including implementation and maintenance of the ship security plan, and for liaison with the company security officer and port facility security officer.

STCW International Convention on Standards for Training, Certification & Watch-standing

SUBCONTRACT

A Subcontract is an agreement between JRM and a third party to provide a specific item of work which includes performing actual labor at our facilities, the owner’s facilities, offshore, or other sites. Agreements covering the procurement of equipment or materials that do not include installation services are not Subcontracts

SUBCONTRACTOR CLAIMS

A formal notice from a Subcontractor that they have incurred costs outside the scope of the Subcontract, in specific amount and detail, due to the actions or inactions of JRM or a Force Majeure event

SUBCONTRACTOR(S) Company/Contractor appointed ‖Third Party/Parties‖ to provide the services to execute a specific portion of the work.

SUB-FUNCTION CODE A five (5) character alphanumeric code assigned to further define work activity or cost elements

within job numbers for cost collection and reporting purposes.

SUBSIDIARY A company in which the parent company controls more than 50% of the voting securities or has a right to elect a majority of the board of directors.

SUPPLIER Any company that provides goods and/or services (includes subcontractors)

SWL Safe Working Load

SWLB Shallow Water Laybarge

SWOT Strength, Weakness, Opportunity, Threat: A subjective analysis technique used to quantify & evaluate alternative solutions

T&C Terms and Conditions of a contract

T/O Turnover

TAGOUT DEVICE A tag out device is a tag that is securely attached to an energy isolating device so as to indicate that the device may not be activated and that the equipment may not be operated.

TAX SENSITIVE TRANSACTIONS

A transaction which takes place wholly or partially within a foreign entity and country but, because of its special nature, may have direct income tax or income tax reporting consequences to the U.S. or another country.

TBE Technical Bid Evaluation

TCV Total Contract value

TEG Tri-ethylene Glycol

TEMPORARILY ASSIGNED

An employee is "temporarily assigned" to a corporate entity when the employee has functional responsibility to that entity for a limited period of time without that entity having responsibility for recording and disbursing the employee's payroll.

TEMPORARY EMPLOYEE

An individual hired to perform work which is not on a continuing basis, e.g., summer employees, etc. Such temporary work must be in a specific assignment and generally not to exceed three (3) months in duration. However, an assignment may be extended upon recommendation of the cost center manager and where authorized by the local Human Resources manager for subsequent periods not to exceed six (6) months. The total period of temporary employment status (initial period plus extension) must not exceed six (6) months, except for formalized Cooperative


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Education Programs which are established for a specific duration. Temporary work may be, but need not be, performed for the location’s minimum number of full-time employment hours. Any temporary full-time employee who remains employed on a continuing basis for six (6) months shall be reclassified as a regular full-time employee.

TENDER Inquiry received by Company/Contractor for work to be executed for a Client/Customer.

TENDER DOCUMENT Documents received from the Client/Customer to enable Company/Contractor to prepare a Bid/Offer/Proposal.

THIRD PARTY SERVICES

Services to be provided by an organization or other party not within the JRM or client organizations

TIFR Total Incident Frequency Rate. (FAC + MTC + RWC + LTI + Permanent Transfers + Fatalities) / Man hours x 200,000.

TL Tangent Length

TLP Tension Leg Platform

TLR Tension Leg Riser

TOF Time of Flight (Ultrasonic Test Term)

TOS Top of Steel

TRA

Task Risk Assessment is the process of evaluating jobs performed at a facility or vessel by a qualified team whereby sequential tasks are listed for each job and the hazards, risks and controls are identified for each task for reducing risk to ALARP. This is documented on a TRA form.

TRADE-IN ALLOWANCE The value received in consideration upon an asset exchange.

TREND Document prepared to identify and quantify the cost and schedule impact of an internal change which results in a variation to a discrete cost element’s current Estimate at Completion.

TRIR Total Recordable Incident Frequency Rate. (MTC + RWC + LTI + Permanent Transfers + Fatalities) / Man hours x 200,000.

TSA Thermal Sprayed Aluminum

TT Temperature Transmitter

TTR Top Tension Riser

U.S. RELATED ENTITY Any U.S. corporation or division thereof that is at least 50% owned by McDermott International, Inc. or a McDermott International, Inc. subsidiary.

UID Unique Identifier

UNIFORMED SERVICES

Service in the United States Army, Navy, Marine Corp, Air Force, Coast guard, and the Public Health Service commissioned corps as well as the reserve components of each of these services. Federal training or service in the Army national Guard and the Air National Guard as well as any other category of persons designated by the President in time of war or emergency are included in the uniformed services.

UNIT OF MEASURE (UOM)

The UOM identifies the units for which quantities related to a specific sub-function code are expressed (e.g. - cm. ft, mhr, ea, kg, m, etc.)


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UNRECORDED FIXED ASSET

An asset which is not recorded on the Fixed Asset Ledger of a company unit (i.e., at the time of acquisition, the asset did not meet the Company's fixed asset capitalization requirements).

USCG US Coast Guard

UT Ultrasonic Test

VENDOR RESPESENTATIVE

Services provided by a supplier to assure the proper functioning of their supplied materials and/or equipment.

VT Visual Test

WBS Work Breakdown Structure

WC Produced Water Cut

WORK BASKET JRM definition is that is a basket used to hoist or lower personnel by crane while working aloft

WORK BREAKDOWN STRUCTURE (WBS)

Structure developed to organize the project into controllable elements from a management perspective in either physical areas, facility components, construction phases, process systems, disciplines, work packages or any combination of these.

WORK ENVIRONMENT

The establishment and other locations where one or more employees are working or are present as a condition of his / her employment. This does not include when an employee is off duty on a vessel / company compound or at a hotel during work-related travel where the employee is considered to have established a "home away from home."

WORK PACKAGE A defined scope of work with all associated deliverables and material requirements

WORK RELATED INJURY OR ILLNESS

An event or exposure in the work environment that caused or contributed to the condition or significantly aggravated a pre-existing condition.

WOW Waiting of Weather

WP Work Point

WPS Welding Procedure Specification

XOV Crossover Valve in Subsea Tree

XV Remotely Actuated Valve

YTD Year to Date

ZERO TOLERANCE

Immediate suspension pending investigation of personnel who violate any policy procedure and / or hazard control system which results in an actual or potential high severity injury, asset damage, environmental spill, and / or damage to the company's reputation. The Investigation Team may recommend termination of employment, as appropriate, for personnel found to have made a willful and knowing violation..

Δ MONTH/ΔQTR The variance between the project’s current EAC cost and revenue compared to the previous

month’s and/or quarter’s EAC cost and revenue. A positive figure indicates an increase of the forecast and a negative figure indicates a decrease.


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o Classic Spar o Hydro Test – Hydortest o JAWS o JBBS o Jack-up o Turret o Truss Spar o Truss Semi

F&G fire and gas detection / alarm system

F&G fire and gas detection

COPYRIGHT CLAUSE © No part of these presents may be reproduced or transmitted in any form or by any means including photocopying and recording without the written permission of the copyright holders, application for which should be addressed to J. Ray McDermott S.A., 757 N. Eldridge Parkway, Houston, Texas 77079, McDermott CASPIAN CONTRACTORS INC., 370083 Baku, Azerbaijan, J. Ray McDermott MIDDLE EAST, INC., P.O. Box 16961, Dubai, UAE., J. RAY McDermott S.A., P.O. Box 188, Morgan City, LA 70381 and J. RAY McDermott Asia Pacific Pte Ltd., 11 Lorong 3, Toa Payoh Block A #01-01, Jackson Square, Singapore 319579. Such permission must also be obtained before any part of these presents is stored in any retrieval system of any nature.

(Printed Copies of this Document are uncontrolled unless otherwise notated)

Acronmyns Abbreviations and Definitions Rev 3

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Transcript of Acronmyns Abbreviations and Definitions Rev 3