Hill International BCA Africa Oil and Gas Capability Statement Rev 8

The Global Leader in Managing Construction Risk

Oil & Gas Capability Statement October, 2014

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Oil, Gas & Petrochemical Experience

Statement of Qualifications

TABLE OF CONTENTS

Binnington Copeland & Associates and Hill International ................................................................................... 3

Binnington Copeland’s Approach & Africa Organisation ..................................................................................... 5

Introduction .......................................................................................................................................................... 7

Relevant Experience ............................................................................................................................................. 8

Project Profiles ...................................................................................................................................................12

Contacts ..............................................................................................................................................................29

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The Global Leader in Managing Construction Risk

Binnington Copeland & Associates and Hill International

Binnington Copeland & Associates has, for many years, been the leading commercial and contractual service provider within the countries making up the Southern African Development Community (SADC). This professional practice of construction professionals, including professional engineers, quantity surveyors, architects, project managers, lawyers and building specialists provides commercial and contractual advice, drafting and dispute management services. Binnington Copeland is also recognised as the leading contract and commercial risk trainer in the region offering training to professional service providers and contractors in the building and construction industry.

The practice was founded in 1985 by Bill Copeland and Chris Binnington and has a wide reputation for its expertise in the fields of construction law, negotiation and drafting of complex contracts, dispute resolution, the preparation and evaluation of claims, and training in all these fields through public and in-house seminars.

In June 2013, Binnington Copeland was acquired by Hill International, a world leader in providing construction claims and consultancy services to its clients, including owners, contractors, subcontractors, architects, engineers, law firms, insurance and surety companies, commercial and investment banks.

Through this acquisition, Hill International now brings its extensive experience in project management and construction claims consulting services to Africa. This experience includes participation in over 10,000 project assignments with a total construction value of over $500 billion wherein Hill has managed all phases of the construction process, from concept through to completion. Engineering News-Record magazine recently ranked Hill as the 8th largest construction management firm in the United States. The Project Management Group is complemented by a world renowned Construction Claims Group, which has participated in over 50,000 disputes valued in excess of $100 billion.

Construction owners and contractors alike turn to Hill to help minimise risk and deliver projects on time, within budget and to the highest quality deliverable.

As a result of this extensive experience, clients worldwide often select Hill as construction consultants to provide simple solutions for their most complex problems. Each client has unique needs and goals, yet we believe Hill remains their first choice due to our track record of understanding their needs, preventing problems, minimising risks and eliminating surprises. Meeting our clients’ diverse needs and exceeding their highest expectations is our mission at both Binnington Copeland and Hill International.

Serv

ice

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Claims Consulting

Claims Consulting

Litigation Support

Expert Witness Testimony

Cost and Damages Assessment

Delay and Disruption Analysis

Adjudication

Lender Advisory

Risk Management

Forensic Accounting

Fraud Investigation

Project Management

Program Management

Project Management

Construction Management

Project Management Oversight

Troubled Project Turnaround

Staff Augmentation

Project Labour Agreements

Management Consulting

Commissioning

Estimating and Cost Management

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Together, Binnington Copeland and Hill International have considerable experience in the evaluation and development of management processes and contract procedures. Our project consulting expertise provides our clients with an objective assessment of, and recommendations for, improved procurement strategies/construction delivery systems, resource allocation, productivity and project controls. It is only by closely working with our clients that we fully understand and react to the specific risk and business drivers that are of greatest importance to our clients. We therefore seek to understand the main issues which are of concern to our client, and then concentrate our efforts in gathering and analysing the data which allows us to provide comprehensive and focused deliverables. Now in partnership, BCA/Hill boasts even greater diversity in its team of professionals, and offers a broader range of skills with the ability to assist in virtually every aspect of the construction process in Africa. In particular our service offering includes Project Audits, Contract Preparation and Review, Claims Analysis, Dispute Avoidance/Resolution, Litigation/Arbitration Support Services and Expert Testimony, Construction/Project Management, ADR Services, Project/Programme monitoring services, Due Diligence and Asset Valuation. Having served a global, distinguished and diverse list of clients, we understand Employers’ and Contractors’ interests, issues, considerations and risk factors. We are therefore uniquely positioned to provide support, advice and astute solutions with respect to all technical and commercial aspects with the delivery of large-scale construction projects, anywhere in the world. What makes us different from other firms is that construction consulting is our core business, and that we are global market leaders in project management as well as construction dispute resolution. This allows us to approach projects with an in-depth knowledge of what can go wrong, and allows us to offer solutions which are designed to avoid cost overruns, delays and quality issues on construction projects.


Binnington Copeland’s Approach & Africa Organisation BCA/Hill’s approach to providing comprehensive contract and claims consultancy services is to work in partnership with its clients, with particular emphasis on problem solving by becoming part of the client’s team. Based on similar current and past assignments worldwide, we thoroughly understand the nature of the work involved and can assemble a bespoke team from within the BCA organisation or from our network of worldwide consultants that can accomplish each task. This includes expertise in all aspects of dispute resolution, contract analysis, claims management/avoidance procedures, and forensic delay and cost analysis. BCA/Hill has the necessary resources available to add consultants as necessary to effectively manage the fluctuating needs of projects. As a result, the team will not be working independently from the rest of BCA but will have full and complete access to all of BCA’s engineering, specialist consultants, all levels of claims consultants, and IT resources.

Senior Vice President and Managing Director – David Merritt. David has over 28 years of experience in the construction and engineering industry and is Masters qualified from London University. He is a Fellow of the Royal Institution of Chartered Surveyors, Institute of Civil Engineering Surveyors; Chartered Institute of Arbitrators and a Member of the Chartered Institute of Building. He is a qualified Barrister (non-practicing), a CEDR Accredited Mediator and a CIArb approved Adjudicator. He has extensive international experience and has been involved in major projects and claims in the UK, Europe, Hong Kong, China, Middle East, and Africa. David frequently provides expert evidence in

matters concerning quantum in construction and engineering disputes. His areas of expertise covers building, civil engineering, transportation, industrial, infrastructure, mechanical and electrical, rail and power stations. David is a recognised expert on the FIDIC form of contract and has lectured regularly in the UK and Africa.

Senior Vice President Africa : Chris Binnington. Chris Founded Binnington Copeland and Associates in 1985, and has been providing consultancy services and advice in relation to disputes on construction and engineering projects for over 30 years. A Mechanical Engineer by discipline and a Fellow of the Institution of Mechanical Engineers, Chris served as Chairman of both the Association of Arbitrators (Southern Africa) and the Disciplinary Committee of the Engineering Council of South Africa. Chris is also a Life Fellow of the Association of Arbitrators. He is a published commentator and author and often contributes articles to construction journals, in addition to his busy practice as a

lecturer and trainer on commercial and contractual matters. Chris regularly accepts appointments onto Dispute Adjudication Boards and is a respected authority on FIDIC matters among his peers.

Joint Managing Director, /Africa : Tinus van Rensburg. Tinus matriculated from Hoërskool Florida in 1979. He studied mechanical engineering with a bursary from the Johannesburg City Council, and was appointed as Mechanical Engineer at Orlando Power Station, hereafter he joined Babcock Africa where he was assigned to manage a diverse range of projects, ranging from petrochemical, power generation, materials handling, and process plant projects. Tinus then joined Howden Africa as manager of the contracts department at Howden Power, amongst others to manage the Arnot Power Station demothball contract. He joined Kelmech Projects, which was later integrated under Buildtech Ltd, he was appointed as director and general manager of Kelmech Projects, and as director on

the boards of BCE Construction, Mmila Construction, and Carbon 12 Mining Ltd (Buildtech subsidiary


companies), and he was the overall projects manager and business unit manager (foam technology) of Buildtech Ltd. Tinus has spent over 20 years in the management of industrial projects, some of which include interalia; Stacker Reclaimers & Conveyors, Boiler re-tubes, Air heater replacements, Coal pulverizing plant, Stock Feeders, Lurgi Steam Reformers. Tinus has consulted to major companies such as Mossgas, Kumba, Eskom, Sappi, De Beers, Sasol and Petronet SA.

Director: John Hughes. John has 32 years’ experience in the construction and engineering industries providing construction / project management, estimating, forensic delay analysis and claims management services to clients in the UK and internationally. He has a Masters in Construction Law and is a member of the Chartered Institute of Arbitrators. John has major claims experience in the UK, Middle East and Africa. He has worked on a number of high profile oil & gas, power plant, civil engineering, building construction and transport infrastructure disputes. His construction experience spans residential buildings, industrial and manufacturing facilities, nuclear & power plant

facilities, rail and transit, schools, roads and highways, office buildings, hotels, retail, sewage treatment plants, urban and community development, religious buildings, military facilities, and civil buildings in the UK, UAE and South Africa.

Regional Manager – Southern Africa: Mark Cockcroft. Mark is a contracts and commercial consultant with a career in the construction and engineering industry spanning 26 years. Mark has a BSc in Quantity Surveying and is a member of the Association of Arbitrators South Africa. His experience includes contractual advice and opinions, preparation of and defence of claims, as well as negotiating settlements and preparation of dispute resolution submissions. This includes adjudications, arbitrations and where required, assisting counsel in preparation for litigation. Mark’s construction and claims experience covers a diverse portfolio of projects extending across four

continents including South East Asia, Southern and East Africa and the Americas including the countries such as the USA and Brazil. Mark has been actively involved in a number of major civil projects including road, rail and bridge projects, underground power stations, hydroelectric schemes as well as heavy mechanical and electrical projects in the power generation and mining sectors.


Introduction

BCA/Hill together have significant experience in the oil, gas and petrochemical sector, including offshore and onshore facilities, pipelines, process plants and refineries. Clients include Banks and Investors, Major Resource Holders, International Oil Companies, Independents and EPC contractors. Our BCA/Hill experts consult on all aspects of oil, gas and petrochemicals — with an emphasis on an integrated client-consultant approach.

BCA/Hill offer a unique and tailored service blending engineering, project management, claims management and dispute resolution, and have provided consulting services on some of the most complex and technically innovative projects throughout the world.

BCA/Hill provides a level of technical and commercial expertise not available elsewhere, and can offer clients professional consulting services necessary to successfully manage all aspects of capital projects from feasibility through to decommissioning.

Consulting Services Overview


Relevant Experience Cost Estimates

BCA/Hill have prepared cost estimates on oil, gas and petrochemical projects ranging in value from thousands to billions of dollars and these estimates support planning, design, construction, operations and maintenance, change order negotiations, and claims support. BCA/Hill develops budgetary cost estimates in accordance with our client’s standards and further assures accurate estimates of construction costs through the involvement of the client and engineering staff. BCA/Hill solicits vendor quotes, where appropriate, and obtain material costs from suppliers as well as deriving labour productivity rates from project experience and history.

BCA/Hill can benchmark cost estimates oil, gas and petrochemical projects using standard industry software such as Que$tor® and Oil and Gas Manager (OGM)® depending on the purpose for which they will be used and the quality of input data available.

OPEX estimation approaches can be adjusted to client requirements and financial parameters. BCA/Hill typically makes sure that the delivery of OPEX estimates can be used going forward. OPEX estimates include chemicals, fuel, logistics, operator staff, inspection, repair and maintenance activities, etc.

Due Diligence BCA/Hill can perform due diligence for the acquisition of oil, gas and petrochemical assets, at any stage of the asset lifecycle. BCA/Hill can undertake due diligence for oil and gas assets by augmenting (where necessary) in-house expertise with carefully selected consultants. The key consideration is the ability of the asset to operate at the rates forecast; and BCA/Hill will consider all aspects of the acquisition including the design, operability, capacity, constraints, safety, HSE, risks, availability, costs, economics, commercial, organisational and socio-political aspects for the proposal. More importantly BCA/Hill will provide confidence to our client that the proposed target will realise the value stated.

Economic Analysis BCA/Hill can perform economic valuation and optimisation of oil, gas and petrochemical projects for concessionary or contractual fiscal regimes. BCA/Hill can integrate engineering, cost estimation and financial modelling to enable rapid delineation of a client’s project reducing risk and saving time.

Benchmarking BCA/Hill can assist clients to determine whether the key performance indicators (KPI’s) associated with an oil, gas asset or petrochemical project are consistent with similar projects taking into account factors such as reserves, production rate, capital cost, operating cost, project schedule, location, region and complexity amongst others.


Risk Analysis

BCA/Hill has expertise in identifying and assessing the technical and commercial risks associated with oil, gas and petrochemical projects, and can perform Quantitative Risk Analysis (QRA) when required by augmenting in-house expertise with carefully selected consultants.

Schedule Analysis BCA/Hill has significant experience and great understanding of the key drivers behind schedule, work breakdown structure, planning and life cycle costs and economics. BCA/Hill has that experience backed by state-of-the-art software, tools and databases. Schedule estimates for different regions require special attention to subjects such as drilling, logistical constraints, risks, decision points associated with peer review, benchmarking, uncertainties and sensitivities and adjustments to take account for special conditions.

Reviews and Audits In addition to due diligence, BCA/Hill can provide a similar service to independently review and audit any aspect of an oil, gas and petrochemical project at any stage of its lifecycle. This includes cost recovery agreements between Owner and Operator where addition costs associated with design growth, contractor variations and disputes settlements for example, are sought through the process.

Project Management BCA/Hill has developed a proactive approach based on extensive project management assignments and claims experience. This gives us a unique and in-depth understanding of what can go wrong on a project and this knowledge is used to identify potential trouble spots on a project before they develop into problems and to recommend or initiate preventive action through strategic planning and controls. BCA/Hill vigilantly watch over all aspects of a project, from design review and long-lead items through schedule and budget updates and inspection during construction. As Owner’s Representatives, BCA/Hill manages all phases of projects from pre-FEED through execution, including cost/ budget controls, scheduling, estimating, expediting, contract administration, inspections, and control of contractors and suppliers.

Commercial / Procurement BCA/Hill provides contract commercial and procurement expertise to assist clients in successfully delivering a project on time and on budget. BCA/Hill can assist owners in EPC or EPIC type contracts by acting as an Owner’s Agent to monitor the EPC/ EPIC contractor. BCA/Hill is also frequently called upon to prepare, monitor, manage, and closeout both FEED and EPC/ EPIC contracts.

BCA/Hill procurement personnel assist owners and contractors with the purchasing of equipment, materials and services for oil, gas and petrochemical projects. Procurement personnel can assist in a number of capacities, including preparation of purchase orders and their management, logistics management and contract closeout.


Project Controls BCA/Hill provides project controls systems which incorporate schedule, budget and contract administration meeting the needs of clients for successful control of and timely, accurate information on cash flow needs, costs, schedules, changes, progress, claims, material, equipment, and labour.

Claims Consulting As a world leader and innovator in the field of construction claims management, BCA/Hill has participated in the analysis of thousands of construction claims. Even the most carefully planned construction project can encounter claims. How those claims are handled can make a significant difference to the success of the project.

BCA/Hill’s approach to claims is broad-based and relies on the participation of BCA/Hill’s multi-disciplined staff of engineers, architects, contract administrators, construction managers, accountants and scheduling specialists. Such a range of expertise is essential in analysing the often-complex liability, causation and damage components of a claim, and BCA/Hill’s technical and contract experts conduct a detailed analysis of the claims, break them down event-by-event and issue-by-issue, to help facilitate resolution. By reviewing and analysing all relevant project documents and performance data, the BCA/Hill team can help get to the root of any problem.

Dispute Resolution BCA/Hill’s services include claims resolution, case strategy, issue analysis, establishing causation, cost recovery, damage analysis, delay analysis, litigation support, expert witness testimony, alternative dispute resolution and other management support as required.


Training Services Overview

Contract Law (1 and 2 day versions) New Engineering Contract (Black Book) (incl. NEC Short Contract)

Advanced Contract Law NEC – Early Warnings, Compensation Events & the Risk Register

Construction Adjudication NEC – Professional Services Contract & PSC Short Contract

Construction Claims Practical Approach NEC – Supply Contract & Supply Short Contract

Construction Contracts Insurances and Liabilities NEC – Term Service Contract & Term Service Short Contract

Contract Comparisons: FIDIC : GCC: JBCC : NEC Principles of Construction Management & Administration

Delay Disruption & Extension of Time Professional Negligence Liability & Risk

Advanced FIDIC Project Planning, Scheduling & Control

A 2 day FIDIC Workshop Project Risk Assessment Workshop

FIDIC Claims Workshop Subcontracting Do’s & Don’ts

FIDIC Plant Design & Build (Yellow Book) The Principal Agent: Roles & Responsibilities

GCC (General Conditions of Contract) 2nd Edition 2010

JBCC Series 2000 Principal Building Agreement & N/S Sub Contract Agreement

JBCC Edition 6.1 2014 Principal Building Agreement & N/S Sub Contract Agreement


Selection of Africa Project Experience Profiles

Project Name: Melut Basin Oil Development Project

Location: Sudan

Client: NF Energy Sudan

Service: Claims Analysis

Project Value: $1 Billion

BCA/Hill was appointed by various Malaysian EPCC Contractors to provide advice on EOT & Loss & Expense Claims, Change Order Claims and Retainer Services. The project involved Process Facilities, Pipelines, Pumping Stations and Port Facilities.

Project Name: Nigerian National Origin West Belt Geophysical Survey

Location: Nigeria

Client: Fugro Engineers


Project Value: $15 Million

BCA/Hill reworked the client’s claim/application for additional payment in connections with this contract for the on-shore and off-shore geotechnical and geophysical investigations for the construction of a major LNG installation complete with breakwater, and provided on going advice.


Project Name: Arzew Desalination and Power Plant

Location: Oran, Algeria

Client: Alarko Contracting Group


Project Value: $22.4 Million

Arzew is an industrial zone on the Mediterranean coast of Algeria, located 40 km east of Oran, and the second largest city in the country. This desalination plant has a capacity of 86,000 m3/per day, in which one third serves as the coolant for the power plant and the rest is used as drinking water.

BCA/Hill carried out a detailed review and provided advice to the contractor on the merits of claims and counter-claims to assist in the achievement of a commercial settlement.

Project Name: New Multi-Product Pipeline

Location: Durban to Johannesburg, South Africa

Client: NMPP Alliance

Service: Delay and Disruption Analysis

The NMPP project, the largest single project in Transnet’s portfolio, encompasses the replacement and expansion in capacity of the Durban to Johannesburg Pipeline (DJP) which transports refined petroleum from the two refineries in Durban as well as imports of refined petroleum products from the storage facilities at Island View, in the Port of Durban.

BCA/Hill has provided a number of different services to this project including; assistance with finalization of Project Baseline Schedule, Project Schedule Risk Analysis (Risk Workshops and detailed Risk modeling using Pertmaster) and High level Delay Analysis as well as providing temporary Management of the Planning department.


Project Name: Ambatovy Project

Location: Madagascar

Client: Consolidated Contractors Company

Service: Arbitration and Claim Analysis

The Project involves the development of an open pit mine, an ore slurry preparation plant at the mine site, a 220 km pipeline to move the ore slurry to the coast, a pressure acid leach processing plant, a metals refi-nery, and all the necessary infrastructure, including water, power and steam generation, acid production, tailings disposal, and port facilities.

Following receipt by client of attorney advice, Hill is to develop internally prepared time and cost claims into arbitration ready claim submissions and support potential arbitration proceedings in Toronto, Canada.

Project Name: Inogate Support

Location: Various Locations; Europe, North Africa and Middle East

Client: EIR Development Partners

Service: Technical Support

The EU-funded INOGATE Program stands for Interstate Oil & Gas Transport to Europe. The Program’s overall objective was to improve the security of Europe’s energy supply by promoting the regional integration of the oil and gas pipeline systems and facilitating their transport both within the region and towards the export markets of Europe, while acting as a catalyst for attracting private investors and international financial institutions to these pipeline projects.

The overall objective of the Inogate Support Group Project was to facilitate co-operation, disseminate and coordinate information, and promote investment amongst key players of the INOGATE Program; namely, beneficiary countries, INOGATE contractors and potential investors. This project was a function of a long-term EU energy strategy aiming at a diverse, secure, environmentally friendly and cost-effective EU energy supply. The project focused on three major objectives: Facilitating and reinforcing co-operation with producer, transit, and consumer countries with a view to supporting the achievement of the INOGATE Program’s specific objectives; ensuring an effective flow and co-ordination of information by establishing a network of regional INOGATE Officers; and promoting European investments in transport and production of oil and gas pipeline systems.

For the most part, activities included preparation of Terms of Reference for new INOGATE projects, organization or participation in working group meetings, preparation of technical documentation, updating of member countries energy profiles, preparation of proposals for future action programs, evaluations of proposals during tendering, and assisting and participating in exhibitions, conferences, and campaigns.


Project Name: Erha Deepwater

Location: Nigeria

Client: ESSO

Service: Claims Analysis Contract Administration

BCA/Hill provided contract administration for the recording, valuing and recovery of change orders and variations with regards to the construction, mechanical completion, pre-commissioning and commissioning of topside facilities and hull appurtenances at the Erha Deepwater site. Contractual and commercial advice for preparation and evaluation / defense of claims from subcontractors for extension of time and acceleration was also provided. Hill drafted contractual correspondences and researched and investigated for the provision of specific legal opinion on contentious matters under the contract utilizing Hill UK in-house law library and legal professionals.

Project Name: Citadel Capital Hydro-Cracker Project

Location: Egypt

Client: Egyptian Refining Company (ERC) S.A.E

Service: Project Management

BCA/Hill provided project management services for the PMT of Phase I & II of the Citadel Capital Hydro-Cracker project. During phase I Hill prepared an independent Bench Mark Estimate to validate the investment target of the unit. Phase II will be the management of FEED. The client retained two FEED contractors to develop the technology to be used and obtain two prices for the EPC contractor.


Project Name: El Mex Refinery

Location: Alexandria, Egypt

Client: Alexandria Oil Company


BCA/Hill provided claim preparation and administration services to a Tank Farm in Egypt, plus similar installations in Saudi Arabia, Oman, and Kuwait.

Project Name: Eskom Medupi Power Station

Location: Limpopo Province, South Africa

Client: Eskom Holdings SOC Limited

Service: Multi-discipline Services

Medupi Power Station is a coal-fired power plant comprising of six units rated in total at 4,788 MW installed capacity. It is expected to become the largest dry-cooled coal fired power station in the world. This project will include super critical plant, which is able to operate at higher temperatures and pressures than previous generation boilers and with greater efficiency. The supercritical design is a first for Eskom, and with the higher efficiency, will results in better use of natural resources, like water and coal for example, and will have improved environmental performance.

BCA/Hill provided claims analysis, negotiation and mediation, delay analysis, expert witness and program management services for the project.


Project Name: Egas Natural Gas Compression Station

Location: Dahshur, Egypt

Client: Egyptian Natural Gas Holding Company

Service: Project Management


BCA/Hill will provide project management services for a new $200 million natural gas compression station in Dahshur, Egypt. The one-year contract has an estimated value to Hill Petrol of $1.0 million.

The new compression station will help EGAS meet the increasing industrial demand for natural gas in Egypt and allow access to new fields. The station will enable maintenance of the required pressure in the Upper Egypt Pipeline to ensure the continuous supply of natural gas to industrial and commercial users along the pipeline route.

Project Name: Kusile Power Station

Location: Witbank, South Africa

Client: Eskom

Service: Arbitration, Claims Analysis, DAB Services, Delay and Disruption Analysis, Expert Testimony, Mediation and Program Management

BCA/Hill provided claims analysis, negotiation and mediation, delay analysis, expert witness and program management services for the Kusile Power Station Project.

Eskom’s Kusile Power Station project is a 4,800 megawatt (MW) supercritical, coal-fired power station under construction near Witbank, South Africa. It is the first coal-fired power station in South Africa to use the advanced environmental technology of Flue Gas Desulfurization (FGD) wet scrubbers and air-cooled condensers. This will ensure that a sustainable, cleaner source of base load electric energy is available for South Africa and the wider African continent far into the future. Complexity is a natural component of a project of this magnitude and the construction is centered on 395 hectares (976 acres). The Project employs over 12,000 workers simultaneously during the construction peak.

BCA/Hill’s team also assists Eskom with the provision of a comprehensive skills and knowledge transfer programme in respect to the professional evaluation of quantum and delay claims. This will serve to build the skill base of the current / future Kusile Execution Team in accordance with The Black Economic Empowerment programme that gives previously disadvantaged groups of South African citizen’s economic privileges previously not available to them.


Project Name: Merowe Dam

Location: Khartoum, Sudan

Client: CCMD Venture


Hill is providing claims management services for construction of multi-purpose dam for power generation and irrigation.


Selection of Global Project Experience

Project Name: Kashagan Development

Location: Kazakhstan

Service: Strategic Advisory Services


The Kashagan Field is an offshore oil field situated in the northern part of the Caspian Sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000 and was one of the larger discoveries in that decade, it is estimated that the Kashagan Field has commercial reserves from 9 billion to 16 billion barrels of oil, and is considered the world’s largest discovery in the last 30 years. BCA/Hill has been engaged by the Republic of Kazakhstan since 2007, in a continuing expert consulting role to support it in its dealings with the Consortium Contractor, on the Kashagan Oil Field Development. BCA/Hill has provided the following Services:

Support and representation in negotiation meetings between the Contractor and Republic of Kazakhstan;

The on-going provision of strategic commercial and technical advice directly to senior members of the Republic of Kazakhstan team;

The preparation and submission of a number of Commercial/ Technical Reports, these reports included the review and analysis of a large amount of data, in order to furnish expert opinions and recommendations in connection with the following:

- The current implementation status of the projects and compliance with the Approved Kashagan Development Plan and Development Budget and Approved Amendments.

- A study and review of the implementation of the Contractor’s Annual Work Programs and Budgets for the period 2008 – 2011 and the alleged incurred cost over said period.

- Expert opinion regarding causes and justification of rising costs and reasons for delays in project implementation.

- To review the latest Amendment to the Approved Kashagan Development Plan and Development Budget proposed by the Contractor from an economic and technical view point.

- Expert opinion as to whether the Kashagan Development


objectives can be achieved in the specified time.

- Expert opinion concerning the effectiveness of the Contractor’s contract management decisions and whether they comply with the International Good Oil Field Practice.

Hill conducted an audit of the Contractor’s systems, controls, process and contract, commercial and project management of the Kashagan Development.

Hill prepared an expert report detailing the results, findings and recommendations following our audit, this included Expert opinions in connection with 16 major contracts following a analysis to determine issues relating to cost, changes in scope and causation of extended contract duration;

Hill reviewed options for Phase 2 of the Kashagan Development as proposed by the Contractor, providing expert opinion as to whether or not the proposals were technically and economically justifiable.

BCA/Hill continues to play a major role in assisting the Republic of Kazakhstan in order to ensure the commercial and technical interests are maintained and advanced as appropriate. This is achieved by detailed professional analysis and proactive client management, whilst working to exacting performance requirements.


Project Name: South East European Pipeline

Location: Romania and France

Service: Strategic Advisory Services

PHARE project 586.04.08.04, The Technical and Economic Study for Oil Pipeline in Romania, was implemented to assess the feasibility of constructing of a crude oil transit pipeline from the Black Sea port of Constanta in Romania to the Adriatic Sea, with a link to the Trans Alpine Pipeline network at Trieste. The project addressed all key issues concerning the pipeline as whole and specific issues concerning the realization of the pipeline in Romania. The findings were presented in six task reports. The Final Report summarized the finding of each task. The project was undertaken by a consortium led by BCA/Hill and was executed between April 2004 and February 2005. The Ministry of Economy & Commerce’s Directorate for Programs with International Organizations controlled implementation and the Commission was contracted by the CFCU of the Ministry of the Public Finance. Project funding was provided under the European Union’s Phare program. The main objectives of the project were:

To review previous feasibility studies, utilizing all available data on route selection to prepare the detailed design for each section.

To select a viable route for the pipeline, and to give inputs from technical and environmental considerations.

To define the geological challenges, and to engineer for the transit through a seismic region.

To ensure that the economics of the project allowed the construction of a pipeline to be feasible.

To ensure Health and Safety issues are addressed and implemented

To ensure that the route selected had the minimum impact on people, land-use and environmentally sensitive areas.

To assist with applications to the IFC’s for finance


Project Name: Pluto LNG

Location: Australia

Service: Independent Audits

Project Value: AU$12 Billion

Woodside’s Pluto LNG Project is set to become the fastest developed LNG project, from discovery of the gas field in 2005 to first gas from the field in late 2010 and first LNG in 2011 Hill conducted integrity audits for the Pluto delivery team to confirm contract scope, timing, and logic linkage, that the critical path was reasonable, planning methodology and assumptions were appropriate, and confirmed engineering, procurement, fabrication and installation were correctly modelled. Project progressing methods and data were audited to confirm the reliability of schedule forecasting. Change Orders, Carryover Work, and Growth Work were audited to determine if these items were included and accurately modelled in the program. Commissioning and Start-up planning were audited for alignment between onshore and offshore efforts. Hill also reviewed and audited the Schedule Risk register to confirm completeness of schedule related risks.


Project Name: Azurite FDPSO Conversion Project

Location: Singapore



Prosafe was awarded a US$330,000,000 contract by Murphy West Africa Ltd , a subsidiary of Murphy Oil Corporation for the conversion and operation of a Floating Drilling, Production, Storage and Offloading unit (“FDPSO”) on the deepwater Azurite development in the Mer Profonde Sud Block offshore the Republic of the Congo. This is the first time an FPSO was developed comprising a mobile drilling rig. Murphy Oil issued a large number of variation orders, which included the addition of a moonpool and a drilling facility causing substantial delays and approximately $90,000,000 cost overruns. BCA/Hill prepared an extension of time claim for the client. The assignment included a review of the Level III Program and developing it as required insuring that it was adequately resourced and would respond reactively to variations introduced into the programme. BCA/Hill then impacted the program by introducing the numerous variations instructed by Prosafe’s client to establish Prosafe’s entitlement to an extension of time. A follow-up task involved updating the program with the latest progress records to determine the revised Completion Date for Vessel Departure.


Project Name: Pearl GTL

Location: Qatar

Service: Procurement Support Claims Analysis Commercial Advisory


Pearl GTL is the world‘s largest source of gas-to-liquid (GTL) plant, capable of producing 140,000 barrels of GTL products each day. The plant can also produce 120,000 barrels of oil per day of natural gas liquids and ethane. Hill provided a number of services throughout the project including: 1. Pre-Contract Management - The work typically included in

respect of a number of the packages:

Prepare terms and conditions, bonds, warranties and guarantees in contract documents as part of a tender package.

Examine non-compliant bids (qualifications) received. Prepare summary spreadsheets of proposed amendments by each of the bidders (irrespective of commercial offer in the bid).

Prepare for and attend meetings on terms and conditions with each of the bidders. Respond to proposed amendments by asking bidder to revert and comply fully with the contract documents as sent out. Bidder required to price for that position. Any variance to that position had to have approval from the client.

Where changes approved in principle either check drafting proposed or draft amendment to document(s) for approval.

On selection of package contractor prepare Agreement (including terms and conditions, warranties, bonds and guarantees) for execution.

Check all executed Agreements and all related documents including insurance certificates.

2. Contract Management – Hill committed a total of 13 staff to

undertake various contract management tasks. The work undertaken involved pre-contract work and award negotiations on 30 – 40 implementation contracts, handover of implementation contracts from UK to the site in Qatar, including all sundry advice necessary to execute the implementation contracts.

3. Contract Review - Hill undertook a review associated with the


late supply of temporary site utilities. The Scope of Work involved:

A detailed report on the potential validity of the Contractor’s extension of time submittal together with an order of magnitude cost evaluation of the potential risk / exposure and potential exposure to project delay.

Establishment of strategy for defence of ‘claim submittals’.

Report on the impact/potential risk to contract schedules intimated by the Contractor resulting from changes in the work / intimated breaches of contract (forensic examination / critical path analysis focusing upon major events).

4. Project Health checks - Hill undertook health checks. The Scope of Work undertaken comprised a review of claims management techniques, preparation of a commercial and contractual audit including recommendations.

5. Claims Management / Support – From August 2010, Hill provided contract specialists and delay analysts into the project Assets Delivery Team working alongside client staff to capture delay event details affecting progress and timely delivery.

Delay events we processed and analysed and the findings provided in report format to Senior Management to enable prompt and effective management of Contractor’s claims.


Project Name: Conversion of Molly Brown FPU

Location: Singapore



The Molly Brown (formerly known as Petrobras XXIV) is a twice-upgraded semisubmersible production unit, with existing processing trains for up to 60,000 barrels of oil per day and 36 million cubic feet of gas per day, total power output of 8,000 kW, as well as 24 slots for riser connection and accommodation for 94 men The unit was originally built as a drilling rig in Brownsville, Texas, and named Penrod 72. In 1987, the rig scored an industry first in the US Gulf of Mexico when Placid Oil Company converted her into a floating production unit and deployed her in the Gulf as the region’s first floating production facility. She was further upgraded in 1992 for Brazil’s national oil company Petrobras to work in the Albacora oilfield. Hill provided contractual and commercial advice on procurement, contract strategy and oversight during project conversion phase in Malaysia, Singapore and China. Hill also drafted a suite of Contract & Purchase Order standard terms and conditions to be used during conversion. In addition Hill performed negotiation and settlement with vendors for final accounts.


Project Name: Oil & Gas Infrastructure Reconstruction Program

Location: Afghanistan

Service: Estimating Management Consulting Program Management Training / Seminars


Under the administration of The World Bank, Hill performed a feasibility study for infrastructure reconstruction and private sector investment in Afghanistan’s Oil and Gas Sector. The objective of the project was “evaluation of options for the development of oil and gas production infrastructure in Afghanistan”. The project included development of options for rehabilitation of natural gas processing and fertilizer plants, evaluation of the feasibility of constructing a small refinery in country, preparation of a gas utilization analysis for Kabul and surrounding areas, and evaluation of the feasibility of constructing a gas pipeline from the Mazar-iSharif region to Kabul to provide natural gas operations at a power plant in the Kabul area. Economic, strategic and financial considerations were evaluated for each option. The various options were also being evaluated under three different scenarios of high, medium and low over the economic life of the facilities. Options for promoting private sector investment included a comparative analysis of Joint Venture partnership (with and without Government participation), Build-Own-Operate; BuildOwn-Operate and Transfer; and others. A Human Resources and Organizational structure assessment was performed for the Ministry of Mines and Industry (MMI). Ministry Capacity Building was provided under a “twinning program” involving members of the Ministry of Mines and Industry and local plant technical and operations personnel, in addition to formal training programs with internal institutions. Preparation of the appropriate regulations, pricing policies and structures, and a regulatory institution and process were included, as well as an extensive technical and managerial training program toward capacity building within the Ministry and at the plants.


Representative Clients Hill has performed advisory and monitoring services for a wide range of clients, including banks and financial

institutions, governments and developers. A partial listing of our past and current clients is provided below:

ABB Lummus Global BV

Abu Dhabi National Oil Company (ADNOC)

ADCO

Allied Lyon

Allseas BV

AMPCO Services

Anadarko

BP

Bechtel

Chevron

Chicago Bridge & Iron

China Light & Power (China)

Chiyoda

Clough Engineering

Consolidated Contractors Intl. Co.

Dolphin Energy

Dywidag International GMBH

ENI

Exxon Corporation

Federal Energy Regulatory Commission

Fluor

Japanese Gas Corporation (JGC)

KazMunai Gas Corporation, Kazakhstan

Kellogg Brown & Root

M.W. Kellogg Company

NPCC (Abu Dhabi)

Petro Canada

Petrofac International

Petroleum Co. of Trinidad & Tobago

Petronas

Qatar General Petroleum Corp.

Samsung Engineering & Construction

Saipem

Shell

Stone & Webster

Sunoco

Takreer

Talisman Energy

Techint Engineering & Construction

Technip, France

Tecnicas Reunidas, SA

The World Bank

Vopak Limited

State Oil Company of Azerbaijan

Verwater EMEA B.V.


Contacts Should you have any questions or require any clarification, please do not hesitate to contact our office. Contact E-mail

Tinus Van Rensburg Managing Director – Sub-Saharan Africa Chris Pedersen Senior Vice President – Oil and Gas Andy Hogan Director

[email protected] [email protected] [email protected]

Africa Offices

Johannesburg: Binnington Copeland & Associates P O Box 84325 Greenside 2034 Johannesburg South Africa Tel: +27 11 888 6141 Fax: +27 11 8881068

Cape Town: Binnington Copeland & Associates P O Box 278 Newlands Cape Town 7725 South Africa Tel: +27 21 689 1540 Fax: +27 21 689 5972

Pretoria: Binnington Chiba Consultants Unit 10 E 24 Akkerboom Street Centurion Pretoria 0002 Tel: +27 12 941 1070

Other Regional Offices

Europe, Russia and CIS Hill International (UK) Ltd. 11 Pilgrim St London, EC4V 6RN England Tel: +44 207 618 1200 Fax: +44 207 618 1201 E-mail: [email protected] E-mail:[email protected]

Middle East and Africa Hill International (Middle East) Ltd. Suite 501, 5th Floor Sultan Business Center P O Box 31450 Oud Metha Dubai, UAE Tel: +971 4 337 2145 Fax: +971 4 3356077

Asia Pacific Hill Construction Consultancy Pte. Ltd. 331 North Bridge Road #12-01/02, Odeon Towers Singapore 188720 Tel: +65 6338 2455 Fax: +65 6339 8568

mailto:[email protected]

mailto:[email protected]

Hill International BCA Africa Oil and Gas Capability Statement Rev 8

Documents

Transcript of Hill International BCA Africa Oil and Gas Capability Statement Rev 8