AICO Job No: 4/T/2/S/1685

Report No.-NWC/SEDER/WMEPC-02 MONTHLY

Job For: Seder Group Company for Trading and Contracting

Project : Riyadh Strategic Water Supply SchemeCoating Applicator: Welspun Middle East Pipes Coating LLC.-Dammam

For additional Information contactEngr. Fadul Al-Imam

Description of the Job : Third Party Inspection ServicesReference Notification No: E-Mail

Place of Intervention : Welspun Middle East Pipes Coating LLC-Dammam

Date (S) Of Intervention : May 1st TO 31st May /2011-MONTHLY

Inspection Engineer : Engr.Mohammad Sazid Alam-1,2,3,4,5,7,8,9,10,11,12,14, 16,17,18,19-May/2011 Engr. Astan Jr Abao -28,29,30/May-2011 Engr. Allan.R.Abdullah-31May/2011-1 day Only Inspected Items : External 3Layers Polyethylene Coated Spiral Welded Carbon Steel Pipes.

Specification : Specification#M02-REV-03. Dated-03.09.2007 MITPS/CP/10-11/006-01 REV.00 Dated-07.02.2011

Distributions:

1. NWS/Seder Group Company for Trading andContracting.

Conclusion :Inspection carried out for production of 3 layers polyethylene coating on steel pipes as per Client Specification M02/Rev-03 and as per MITPS/CP/10-11/006-01 Rev.00/Dated 07.02.2011.WEMEPC LLC. STARTED PRODUCTION WITH MPQT FOR (64” DIAX W.T.9.5MM XGRADE-X52 )FROM DATED 14/05/11TOTAL PIPES EXTERNAL COATED-397 PIPES Including 3 MPQT pipes.TOTAL FINAL ACCEPTED PIPES- 406 PIPESIncluding from previous coated pipes.TOTAL RELEASE PIPES IN THIS MONTH:-388 PIPES.

Engr. Mohammad Sazid Alam Engr. Fadul Al Imam Inspection Engineer Technical Manager

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INSPECTION REPORT

CLIENT : NATIONAL WATER COMPANY

PROJECT : Riyadh Strategic Water Supply Scheme

CONTRACTOR : Seder Group Company for Trading and Contracting

SUB CONTRACTOR : AZIZ EUROPEAN PIPE FACTORY-DAMMAM

SUB-SUB CONTRACTOR : Welspun Middle East Pipes Coating LLC.

MATERIAL : 3 Layers polyethylene Coated Carbon Steel Pipes.

SPECIFICATION : Specification#M02-REV-3-Dated 03.09.2007

MITPS/CP/10-11/006-01 REV.00 Dated-07.02.2011

DATE OF INSPECTION : 1st May to 31st May -2011/-DAY SHIFT ONLY

INSPECTION ENGINEER : Engr. Mohammad Sazid Alam Engr.Allan R Abdullah

Engr. Astan Jr. Abao

1. INSPECTED ITEMS:- External 3-layers Polyethylene coating on spiral welded carbon steel pipes. (88ӯ X 12.7mm W.T.X-Grade X52)& (64ӯ X 9.5mm W.T.X-Grade X52)

2. APPLICABLE STANDARD OF INSPECTION:

Project Specification No. M02/Rev. 03 Surface Preparation Standards (SS-EN ISO 8501-1:2007) Inspection and Test Plan Document No. MITPS/CP/10-11/006-01Rev 0 Dated 07.02.2011 ILF- QC10 – H – 042 Rev 03 Dated 03.09.2007

3. SCOPE OF INSPECTION:

Review of Documents. Check of climatic condition, equipment calibration and visual inspection of bare pipe for any surface

defects. Surface preparation (compress air contamination, abrasive blast contamination, residual surface chloride,

surface salt level, phosphoric acid, fresh water, surface profile). 3 Layers coating application (pipe drying, pre-heating, and FBE, copolymer, PE application). Visual check and coating thickness inspection. End cut back and cleaning. Holiday detection test. Stenciling and cut back Primer application Peel test, cathodes disbandment, penetration.

Contd. /page-2

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4. INSPECTION ACTIVITIES PERFORMED: REVIEW OF DOCUMENTS:

• Reviewed material certificates for blast abrasive, the products (FBE, Copolymer, and polyethylene) used for the coating.

• Checked and reviewed the calibration certificates for the equipments

Results: Found Satisfactory after getting the confirmation for shelf life of material and calibration date was valid for the equipments used.

CLIMATIC CONDITION, EQUIPMENTS CALIBRATION AND VISUAL INSPECTION OF BARE STEEL SURFACE DEFECTS:

•Checked climatic condition (temperature, relative humidity, dew point, steel temperature etc.) are recorded at the specified intervals.

•Performed visual inspection external surface of bare pipe before blasting of gouges and other defects likely to have a detrimental effect on coating are removed by grinding without reducing the wall thickness.Results: Satisfactory

•The pipes are then blasted to a cleanliness of SA2 1/2 and blast profile was measured Acceptance criteria 50-100 micrometers-results found within acceptance range.

•Air supply check, abrasive contamination test, no contamination detected. Residual surface chloride before blasting –found satisfactory (required < 2 μg/cm2) and after blasting found satisfactory (required: N/A), salt level before blasting found satisfactory (required 3≤ μg /cm2) and after blasting found satisfactory.

Results: Satisfactory

PHOSPHORIC ACID WASH, PIPE DRYING / PRE-HEATING AND FBE, COPOLYMER, PE APPLICATION:

Checked the PH for acid wash, PH for total dissolved solids (TDS), for fresh water residual acid on the pipes for:

Phosphoric acid wash (The pipes are washed with acid solution as they pass through the acid application booth for the removal of contamination from the pipes).Results:Ph of phosphoric acid wash found satisfactory within acceptance criteria (required <2 Ph)

PH & TDS fresh waterResults: Ph of fresh water found satisfactory (required ≥6 and ≤8 Ph)

TDS-found satisfactory (required ≤200 ppm) Water chloride found satisfactory within acceptance range (required ≤50 ppm)

Residual acid on pipeResults: Ph found satisfactory (required <2 Ph)

Contd. /page-3

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• Residual rinse waterResults: Ph found satisfactory within acceptance criteria (required ≥ 6 and ≤8 Ph)

• Checked acid contact time, pipe drying, pre-heating

• Checked the pre-heating (found between 200 – 220 0 C)

Results: Inspection results within tolerance Satisfactory for the blasting requirements and the pipe surface found OK for coating application.

5. THREE LAYERS COATING APPLICATIONS:

After ensuring heating of pipe checked FBE / Co-polymer and polyethylene application

START PIPE: As per ITP, before the startup of production, 5 pipes were proceed, 1 pipe fully coated with epoxy, 1 pipe partly coated with epoxy, adhesive (co-polymer),and polyethylene and the rest of three pipes ware coated with full 3 layer polyethylene coating system.Visual inspection of FBE & co-polymer is carried out on the pipe and production was started after satisfactory results on test pipe.After satisfactory results on test pipe, it is ensured that the same thickness of FBE, co-polymer thickness is measured checked on partially coated pipe (whenever there is breakdown in production) and found satisfactory results.

VISUAL CHECK AND COATING THICKNESS INSPECTION:

FBE Acceptance criteria 250- 300 micrometer – Found within acceptance range-Satisfactory.

Copolymer Acceptance criteria 150-250 micrometers – Found within acceptance range-Satisfactory.

Polyethylene Dry Film Thickness found between 3.5mm for weld to 4.60 mm for body. Acceptance criteria 3.5mm minimum on pipe body and 3.25mm minimum on weld seam – Found Satisfactory.

End cut back, cleaning, painting and stenciling.Checked stenciling and found as per the specification

Checked cut back found between Acceptance criteria (150+10/-10 mm) Results: Within range – Satisfactory

Contd. /page-4

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6. TESTING:

Holiday Detection Test Holiday was carried out at 30 KV on 3 Layer polyethylene coated pipesHoliday was carried out at 1.25 KV on Fusion Bonded Epoxy pipe.Results: No holiday found

Adhesion and Peel Test Adhesion was checked sharp knife and two incisions were made in the form of X and at the intersection of X an attempt was made to force the coating to remove from the steel surface with the knife point.Peel test at 20±5ºC for 3 layers PE found within acceptance limit (required > 100 N/cm)Peel test at 50±5ºC for 3 layers PE found within acceptance limit (required > 50 N/cm)Results: Satisfactory.

Cathodic Disbondment Sample were taken with coating and kept in salt solution for 48 hours @ 65 +20 C at voltage – 1.50 volts DCResults: Average disbondment found within acceptance range (acceptance criteria ≤15 mm)

7. REMARKS:

Total 130 Pipes (88ӯ X 12.7mm W.T.X-Grade X52) External coated in this Month.Total Pipes accepted in Final/TPI cleared-149 pipes in this Month including from previous coated pipes.

Total Coated Released Pipes (88”Ø X 12.7mm W.T.X-Grade X52)-170 pipesTwo Coated Pipe rejected –Pipe no.-E11001316 due to DFT & Pipe no.-F11-001056 due to End open.

Total 267 Pipes (64ӯ X 9.5mm W.T.X-Grade X52) External coated in this Month.Total Pipes accepted in Final/TPI cleared-257 coated pipes

Total Coated Released Pipes (64ӯ X 9.5mm W.T.X-Grade X52)-218 pipes.Four coated pipe rejected due to low film thickness and due to Ends open.

Pipe No.-F11-001601 rejected due to DFT and Pipe No.-F11-001486, F11-001338,F11-001460, F11-001448 rejected due to Ends Open.

Note:-Pipe (64”dia X W.T.-9.5mm X Grade-X52 accepted by TPI in final subject to satisfactory MPQT28 Days cathodic Disbondment test (CD TEST) to be completed that started from 17/05/11.

Attachment: ---(1.) Monthly Report(2.) Release certificates with MTC(3.) Daily Inspection report

ENGINEER MOHAMMAD SAZID ALAM AICO-INSPECTOR