18th-June-08

PIPELINE REPAIR AT KP 110 – KP 133 KUALA TUNGKAL TO PANARAN TGI OFFSHORE PIPELINE

FEED Handover Meeting Agenda

1. Project Introduction

2. Problem Definition

3. Design Basis

4. Pipeline Mechanical Design

5. Pipeline Outline Installation Analysis

6. Repair Methodology

7. Cost Estimate and Schedule

8. Valve Skid Design

9. EIA Review

10. HAZID & HAZOP Action Items

11. Prof. Andrew Palmer’s Review

12. Closeout Report

13. Discussion and Close Out

Project Introduction

KP 133.5

KP 110.5

FEED OBJECTIVES

Engineer a feasible repair method that can be executed by available installation contractors in the region

Develop a method based on use of industry proven equipment and procedures

Review the method with potential EPCC contractors to get feedback on their construction risks.

Develop a method which offers no or minimum stoppage of Gas to the consumers

Develop a method which enables restoring the gas flow to the full design pressure as early as possible

Conduct risk work shop and identify risks that should be managed by PMT

Identify long lead items for procurement so that repair work can be executed as early as practically possible

Project Introduction

Details of Damaged Section (KP110.5 to KP133.5) • Total of 19 buckles along the damaged section

• Maximum deformation of buckle – 7.59% of OD

• Water depth at damaged section – 35m

Project Introduction

Design Basis of Replacement Pipeline

DESCRIPTION UNIT PARAMETERS

Approximate Length km Approximately 23.0

Pipeline OD mm 711.2 (28”)

Material - Carbon Steel

Line Pipe Specification - API 5L X65, manufactured to DNV OS-F101

Pipeline Wall Thickness mm 15.9 (.625”)

Service - Dry Sales Gas

Pipeline Corrosion Allowance mm 0.0

Internal Coating - 80 micron DFT Epoxy Coating

External Corrosion Coating - 3 Layer PE

External Corrosion Coating Thickness mm 2.1

Concrete Weight Coating Thickness mm 94

Design Pressure Barg 113.8 (1650 psig)

Operating Temperature °C 40.6

Hydrotest Pressure Barg 136.7 (1983 psig)

Maximum Operating Pressure Barg 103.4 (1500 psig)

Product Density Kg/m3 63.0

Pressure Rating of Pipeline Components - ANSI Class 900

Design Basis of Replacement Pipeline

Pipeline Mechanical Design

Pipeline Mechanical Design

Pipeline Mechanical Design

Pipeline Mechanical Design

Pipeline Mechanical Design

Pipeline Mechanical Design

Pipeline Mechanical Design

Pipeline Installation Analysis

Pipeline Installation Analysis

Final Repair Method

Repair Method

• Zero Downtime Method Microsoft PowerPoint Presentation

Schematic Diagram

Comparison Between Both Methods

Flange Connections/

KaMos GasketsHot Taps STOPPLE

BarredTees

5D Bend

GateValve

Shut-down Time

Cost

HardwareCost

ConstructionCost

TotalCost

CM – ReducedDowntime

Nil6

(4 in-place)4 Nil Nil Nil 4 – 6 Wks US$3.3 US$30M US$33.3

ZeroDowntime

Method6

8(6 in-place)

4 2 42 x 28”2 x 16”

Nil US$9.6M US$40M US$49.6

Note:

1. CM – Conventional Method

2. The hardware cost stated above includes 10% for transportation cost.

Comparison Between Both MethodsReduced Downtime Method Zero Downtime Method

Advantages • No flange connections along the pipeline

• Involves less construction and diving work

• Zero Shut-down time and any delay in construction will not disrupt flow to the consumers

• Restoration of full design pressure before completion of repair

• Equipment procured offers flexibility to switch to reduced down time method

Disadvantages • Stoppage of gas supply to consumers for 4 to 6 weeks

• Delay in construction work will result in more stoppage of gas supply to consumers

• After commissioning sales gas will have some water till complete dryness is achieved

• Equipment procured does not offer flexibility to switch to zero down time method

• 4 In-place hot-tap clamps

• 6 flange connections

• Involves more construction / diving work

• 6 In-place hot-tap clamps

Material Cost US$3.3M US$9.6M

Construction Cost US$30.0M US$40.0M

Comparisons of Risks

Reduced Downtime Method Zero Downtime Method

1. Emergency Response Plan required 1. Emergency Response Plan required

2. Gas Freeing the abandoned pipeline 2. Gas Freeing the abandoned pipeline

3. Potential of buckling the pipeline during above water tie-in

3. KaMOS gasket failure

4. Presences of large amount of water and air pockets in the pipeline while restoring the flow

4. Experienced Hot-tap contractor should be engaged

5. Gas supply shut down time can increase due to construction delays

6. Experienced Hot-tap contractor should be engaged

Shut-Down Time for Reduce Downtime Method

Overall Schedule for Zero Downtime Method – Best Scenario

Overall Schedule for Zero Downtime Method - Realistic

Potential EPCC Contractors

Pipelay Subsea

Cal Dive

Saipem

Global

Acergy

Technip Subsea 7

Valve Skid Design

Valve Skid Design

Valve Skid Design

Valve Skid Design

EIA Action Plan

EIA Action Plan

EIA Action Plan

HAZID & HAZOP Action Items

HAZID Action Items –

HAZOP Action Items – Adobe Acrobat 7.0

Document

Adobe Acrobat 7.0 Document

Dr Andrew Palmer’s Review and Actions Required

Dr Andrew Palmer’s Review and Actions Required

Dr Andrew Palmer’s Review and Actions Required

Project Status – Engineering

Pipeline Mechanical Design

S/N Activities Status Further Actions

1. 28” Pipe WT and Concrete Thickness

Done -

2. 16” Pipe WT and Stability Done EPC Contractor to check suitability of the available 16” pipe from Stockist. For a !6” dia 11.1 mm thick a 40mm concrete is required. EPC Contractor to proposed method to ensure stability of pipeline if 16” pipe is not concrete coated.

3. Small Diameter Pipings, WT and Stability

Done EPC Contractor to check suitability of the available 6” pipe from Stockist. EPC Contractor to ensure stability of piping during operation.

4. Cathodic Protection Design Done No CP is proposed for the temporary piping as it is exposed to sea water for a short period only. There is enough margin on the anodes provided on the permanent facilities to take care of the temporary piping.

5. Pipelay Analysis Done EPC Contractor to perform detailed dynamic lay analysis based on their proposed pipe laybarge

6. Bottom Roughness Done EPC Contractor to perform pre-engineering survey and update the Bottom Roughness Analysis. Span rectification if required.

7. Overall Schematic Done EPC Contractor to perform final HAZOP and HAZID and update overall schematic.

Project Status – Engineering

Installation Methodologies

S/N Activities Status Further Actions

1. Zero Downtime Method Done EPC Contractor to develop a detailed execution plan and procedures for this method

2. Reduced Downtime Method Done -

3. Comparisons between Methods Done -

4. HAZID and HAZOP Done EPC Contractor to perform HAZID and HAZOP based on the execution plan and procedures developed by EPC Contractor

Project Status – Engineering

Valve Skid Design

S/N Activities Statue Further Actions

1. Piping Analysis - Caesar II Model

DoneEPC Contractor to carry out detailed design of Valve Skids .

EPC Contractor to re-check installation analysis and design installation aids based on the final skid design and equipment / vessel proposed for installation.EPC Contractor to develop detailed fabrication drawings.

2. Structural Analysis - SACS Model

Done

3. Drawings Done

Project Status – Engineering

Material Specifications

S/N Activities Status Further Actions

1. Flanges, Bolts, Nuts, Gaskets and Fittings

Done -

2. Subsea DBB Expandable Gate Valves / Gate Valves

Done -

3. 5D Induction Bends Done

4. Subsea Mechanical Connectors & Hot Tap Assembly

Done EPC Contractor to attend all FAT testing for both mechanical connectors and hot tap assembliesEPC Contractor to perform mock testing before the actual installation works

5. Field Welding and NDT Done EPC Contractor to prepare welding and NDT procedures

6. Construction Materials Not Done All non-long lead and construction materials to be procured by EPC Contractor

Project Status – Engineering

Installation Specifications

S/N Activities Status Further Actions

1. Pipeline Installation Done EPC Contractor to develop all necessary installation procedures

2. Survey and Monitoring Done EPC Contractor to develop detail survey and monitoring procedures.

3. Pipeline Cleaning, Gauging, Pigging and Hydrotest

Done EPC Contractor develop detail pre-commissioning procedures. Final HAZOP and HAZID need to be performed

Project Status – Engineering

Drawings

S/N Activities Status Further Actions

1. Pipeline Alignment Done EPC Contractor to update based on pre-engineering survey and identify locations where span rectification is required

2. Tie-in Arrangements Done EPC Contractor to update based on final arrangement proposed and approved by PMT / TGI EPC Contractor to perform HAZOP and HAZID based on the final arrangement and make necessary adjustments

3. Valve Skid Details Done EPC Contractor to include details of installation aids and prepare fabrication drawings.

Discussion and Close Out