towingsailaway transportation and installation plan

JX Nippon Oil & Gas Exploration (Malaysia)Limited (993414-U)

Document No Rev

THE–LFPSO–00–GN–PEP-00006 AB

PROVISION OF EPCIC AND LEASING FOR FPSO LAYANG

TOWING/SAILAWAY, TRANSPORTATION AND

INSTALLATION PLAN

AB 8 Apr 2015 Final Doc SP LZ JRM

C 24 Feb 2015 Issued for Approval SP LZ JRM

B2 12 Sept 2014 Re-Issued for Review MAB LZ KSM

B1 18 July 2014 Re-Issued for Review MAB LZ KSM

B 11 Jun 2014 Issued for Review MAB LZ KSM

A 17 April 2014 Inter Disciplinary Check PMT LZ KSM

Rev Date Status Prepared by

Checked by

Approved by NIPPON

TH HEAVY ENGINEERING BERHAD

THE-LFPSO-00-GN-PEP-00006 Rev. AB

TOWING/SAILAWAY, TRANSPORTATION AND INSTALLATION PLAN

TABLE OF CONTENTS

1 TOWING/SAILAWAY, TRANSPORTATION AND INSTALLATION PLAN...........................7

of 27



REVISION SUMMARY

Rev. Section DescriptionA IDCB Issued for ReviewB1 Re-issued for ReviewB2 Re-issued for ReviewB3 Re-issued for ReviewC Issued for Approval

AB Final Doc

of 27



ABBREVIATIONS

AFR Audit Finding ReportBOD Board of DirectorsCBE Commercial Bid EvaluationCIDB Construction Industry Development BoardCIF Cost, Insurance and FreightCLASS Classification SocietyCOW Crude Oil WashingCPFF Cost Plus Fix FeeCPN Critical Path NetworkCSU Commissioning Support UnitCV Curricular VitaeDCR Daily Charter RateDCS Distributed Control SystemDDE Detailed Design EngineeringDOSH Department of Occupational Safety and HealthEPCIC Engineering, Procurement, Construction, Installation and CommissioningESD Emergency ShutdownFEED Front End Engineering DesignFPSO Floating Production Storage and OffloadingHAZID Hazard Identification StudyHAZOP Hazard and Operability StudyHIP Helang Integrated PlatformHIT Hazard Identification ToolsHP High PressureHSE Health, Safety and EnvironmentHVAC Heating Ventilation and Air ConditioningITB Invitation To BidITP Inspection Test PlanITR Inspection Test RecordJPJ Jabatan Pengangkutan Jalan (Ministry of Transportation)JSA Job Safety AnalysisKPI Key Performance IndicatorLLI Long Lead ItemLOA Letter of AwardLOI Letter of Intent

of 27



LQ Living QuartersLSR Life-Saving RulesLV Low VoltageLWP Layang Wellhead PlatformMC Mechanical CompletionMDR Master Deliverables RegisterMOM Minutes of MeetingMPR Monthly Progress ReportMV Medium VoltageNCR Non Conformance ReportNIOSH National Institute of Occupational Safety and HealthNOCH Notification of ChangeOIC Offshore Installation ContractorP&I Protection & IndemnityPCS Project Completion SystemPCSB Petronas Carigali Sdn BhdPDMS Plant Design Management SystemPEQP Project Execution and Quality PlanPLC Programmable Logic ControllerPO Purchase OrderPPE Personal Protective EquipmentPQMP Project Quality Management Plan PSP Project Specific ProcedureQA Quality AssuranceQC Quality ControlQRA Quantitative Risk AssessmentRAM Reliability, Availability and MaintainabilityRFSU Ready for Start UpRLEC Repair, Life Extension and ConversionSOLAS Safety of Life at SeaTBE Technical Bid EvaluationTHHE TH Heavy Engineering BerhadTQ Technical QueryWBS Work Breakdown StructureWPR Weekly Progress ReportWPS Welding Procedure SpecificationWQT Welder Qualification TestWRR Work Readiness Review

of 27



DEFINITIONSCONTRACT CONTRACT FORM and the attached Exhibits for Lease &

EPCIC Contract

FACILITY FPSO Layang

FPSO SITE location or locations where the FPSO is to be positioned as required by NIPPON

NIPPON JX Nippon Oil & Gas Exploration (Malaysia) Limited

OWNER TH Heavy Engineering Berhad

SUBCONTRACTOR any party having a contract with OWNER directly or indirectly as approved in writing by NIPPON for the performance of any portion of the WORK or part thereof any includes vendors and suppliers.

SERVICES provision of the FPSO in accordance with this CONTRACT by OWNER, the charter of the FPSO by OWNER to NIPPON and all other services and work to be provided by OWNER in accordance with Good Industry Practice as specified necessarily implied in this CONTRACT

VENDOR Supplier of Equipment and Spare Parts

WORKSITE(S) the lands, waters and other places on, under, in or through which the WORK is to be performed including FPSO SITE, offshore platform, office, workshop and places where equipment, materials or supplies are being obtained, stored or used for the purpose of this CONTRACT

WORK means SERVICES

of 27



1 TOWING/SAILAWAY, TRANSPORTATION AND INSTALLATION PLAN

1.1 General

1.1.1 The FPSO will be towed to Layang offshore field with a manned tow, who will be operating and fine tuning the vessel systems, and monitoring all systems and areas of the FPSO for problems and failures. The towing/sailaway plan will be as per below:

i. Towing from Dubai to Designated Place of Integration to install and integrate the Topsides Module on the vessel. Estimated duration of tow is 28 days with manned tow

ii. Towing from Designated Place of Integration to Layang offshore field for the offshore installation. Estimated duration of tow is 5 days with manned tow

1.1.2 Owner will separately fabricate, transport, install, Hook-Up, pre-tension, inspect, test, the Mooring System ready at Layang offshore field for connection with the FPSO to the coordinates specified in Section 5.1 of Basis of Design document in APPENDIX I-2 – NIPPON LISTOF TECHNICAL DOCUMENTS AND DRAWINGS. Owner will ensure that this activity is coordinated and completed prior to arrival of FPSO in Layang field.

1.1.3 The EPCIC of Flexible Riser is not included in OWNER’s Scope of WORK, and it is a Scope of Pipelines Contractor’s work. OWNER scope shall be limited to providing support to Pipelines Contractor for the installation of flexible riser as detailed at Section 1.10 of this document.

1.1.4 Owner will ensure that all activities related to their scope of work on Sailaway, Tow, and installation of FPSO and mooring systems are carried out under intimation and approval of Classification and approved Marine Warranty Surveyors appointed for the operation.

1.2 Scope

1.2.1 OWNER will supply all Transportation, marine Vessels, engineering, labour, equipment, tools, material, consumables, Construction equipment, support facilities, supervision, scheduling, inspection, QA/QC, safety SERVICES, insurance, transport Vessels, ocean-going tugs, rigging and interface coordination with all involved parties to transport the fully integrated FPSO and all ship-loose items to the FPSO SITE, and install the FPSO at the FPSO SITE along with the mooring system.

1.2.2 Prior to the Sailaway Date, OWNER will complete all conditions as specified in EXHIBIT XVII – HANDOVER CONDITIONS and obtain NIPPON’s formal endorsement on the FPSO SAILAWAY CERTIFICATE in accordance with EXHIBIT VI – PROJECT ADMINISTRATION PROCEDURE.

of 27



1.2.3 OWNER will be responsible for the Transportation of the FPSO including, but not be limited to rigging, main and emergency tow bridles, plates and all lights and markings required on the tugs and barges during the tow.

1.2.4 All Vessels and equipment shall be in first class working condition and regularly and properly maintained. OWNER will provide to NIPPON the results of the last Annual Marine Survey for all Vessels to be utilized for the WORK.

1.2.5 OWNER will obtain the necessary marine clearances and permits etc., which are required for OWNER to conduct its normal operations within Malaysia, at least thirty (30) days prior to the Sailaway Date. All costs associated with obtaining such clearances and permits shall be to the OWNER’s expense. All Vessels shall comply fully with international and Malaysian regulations and copies of all certificates (i.e., Registry, Class, Radio Safety, etc.) are to be submitted to NIPPON. Tugs, crew boats, supply boats and Hook-Up barges shall be equipped with operational two-way radios capable of inter-Vessel communications at all times. Detailed specifications and technical information for all proposed Vessels shall be submitted to NIPPON for review and endorsement.

1.2.6 OWNER will arrange for a joint inspection of the vessel by NIPPON and a Third Party Marine Warranty Surveyor prior to the Sailaway. OWNER take note that NIPPON endorsement shall take into account HSE standards on the Vessels, including hygiene and sanitation. Maintenance logs for all mechanical and Electrical Equipment shall be made available for NIPPON’s review. Vessels not in compliance with the Marine Warranty Surveyor’s certification requirements shall not be approved.

1.2.7 OWNER will obtain all necessary approvals for Vessels to WORK in Malaysian waters. All costs associated with obtaining such approvals shall be borne by the OWNER.

1.3 Safety

1.3.1 Sailaway, Transportation and Installation of the FPSO will be in accordance with plans, drawings, CONTRACT Specifications and documents developed by OWNER.

1.3.2 OWNER will have full and complete responsibility for all OWNER activities being performed on the FPSO and for the safety and security of all personnel on-board the FPSO.

1.3.3 OWNER will maintain a safe and healthy working environment during the transfer of the FPSO to the FPSO SITE and the subsequent Installation of the FPSO.

of 27



1.3.4 OWNER will perform a HAZID prior to the Sailaway Date to identify and assess all hazards associated with the transfer, Installation and Hook-Up activities, and to ensure controls and recovery measures are in place. The HAZID shall address the hazards to life, health, the environment and assets.

1.3.5 All agreed recommendations will be fully implemented prior to the commencement of the tow.

1.3.6 OWNER will engage MWS and perform pre-hire suitability inspections to the Construction Barges intended to be used for mooring and FPSO installations to ensure the Construction Barges are substantially capable of performing the WORK under the worst weather conditions possible in the time planned for Installation WORK. Any Construction Barges which are not confirmed their suitability to perform the WORK shall not be allowed to enter the Block SK-10.

1.3.7 OWNER will comply with all IMO regulations regarding marine transport.

1.4 Marine Warranty Surveyor (MWS)

1.4.1 OWNER will appoint a Third Party Marine Warranty Surveyor from among those nominated Marine Warranty Surveyors by OWNER’s insurance policies and NIPPON shall endorse the appointment of the Marine Warranty Surveyor. The appointed Marine Warranty Surveyor shall review and approve all Transportation Calculations, Stability Analysis, towing arrangements and Mooring Systems, as required and issue appropriate certificates to comply with the requirements of the OWNER’s insurance policies.

1.4.2 The appointed Marine Warranty Surveyor scope of WORK shall include but not be limited to:

1.4.3 Audit, inspection and issue recommendation of each marine Vessel proposed for the WORK;

iii. Review and approve all OWNER’s marine procedures, relating to Transportation and installation of permanent material;

iv. Witness the loadout for all permanent materials and provide Sailaway Certificate for their Transportation

v. Review of all shipping documents, Vessel/tugs, barge and towing gear certification;

vi. Assessment of weather conditions and issue recommendation to secure safe working condition for structures, Vessels, crew and the like; and

vii. Provision of certificates of compliance to NIPPON confirming that preparation of Sailaway, Sea-fastening, Sailaway, and lifting are in accordance with the approved procedures.

of 27



1.4.4 OWNER will modify and adapt its procedures as required by the Marine Warranty Surveyor and/or NIPPON. The Marine Warranty Surveyor shall issue a certificate to OWNER stating that all marine operations are approved including all on-hire surveys of barges, tugs, and tow hardware, inclusive of tow bridals and navigation aids. OWNER will ensure all the specific activities and certificates of approval and attendances required by the MWS and those specified in the insurance warranty are being complied with. All costs associated with the employment of the marine warranty surveyor for the purpose of complying with the insurance warranty requirements shall be on OWNER’s expenses.

1.5 Marine Procedure Manual (MPM)

1.5.1 OWNER will prepare a Marine Procedure Manual (MPM) and Installation Procedure for NIPPON review prior to submission to Marine Warranty Surveyor, and any government agency having jurisdictional authority. This manual shall describe, in detail, all Sailaway, Tow-out, Transportation and mooring connection, marine operations and associated activities. The MPM shall include, but not be limited to:

viii. Roles and Responsibilities

of 27



ix. Environmental conditions for the planned route (stating specific weather windows where appropriate);

x. Tow route description, including identification of safe havens;

xi. Towing plan and procedures;

xii. Safety procedures;

xiii. Marine Vessel requirements and details including Standby and support Vessels.

of 27



xiv. Stability and Sea keeping calculations;

xv. Longitudinal strength calculations, including bending moments and shear forces during tow;

xvi. Details of Sea-fastening of loose items and voyage protection details;

xvii. Ballasting procedures and calculations;

xviii. Criteria for readiness for Sailaway and Transportation;

xix. Transport supervision, authorities, and communication procedures;

xx. Transport inspection plans; before, during and post tow;

xxi. Navigation aids, lighting, etc.;

xxii. Anchoring and mooring facilities;

xxiii. Lifts (if any);

xxiv. Fendering;

xxv. Emergency procedures and contingency plans;

xxvi. Time schedules, including bunkering plans;

xxvii. Applicable Metocean data and Weather forecasting plans;

xxviii. Reporting of Tow Program.

1.5.2 The MPM shall be in accordance with the requirements of and contain necessary information in sufficient detail as required by the class, Marine Warranty Surveyor, all authorities having jurisdiction, and insurance underwriters.

1.5.3 OWNER will verify that all acceleration forces, bending moments and shearing forces in the FPSO during Transportation are within acceptable limits, and will submit transport calculations to NIPPON and Marine Warranty Surveyor.

1.5.4 The Marine Procedure Manual (MPM) shall provide a seamless transition into the Installation Procedure manual for the handover of the tow to FPSO Installation. The Marine Procedure Manual shall contain necessary information in sufficient detail as required by the necessary authorities and insurance underwriters. OWNER will complete the Marine Procedure Manual for submission to Marine Warranty Surveyor as well as any Government agency having jurisdiction authority over any part of the tow route.

1.6 Navigation

of 27



1.6.1 OWNER will comply with relevant National and International Government regulations applying to entering and working within territorial waters and rivers of foreign countries.

1.6.2 OWNER will also fully comply with Malaysian navigation requirements while within its territorial and coastal waters.

1.7 FPSO Sailaway and Transportation

1.7.1 Preparation of Equipment for Transport

xxix. All modules, structures, equipment and other components on the FPSO shall be adequately prepared prior to the Sailaway Date to prevent damage from debris, rain, wind, sea water and motion-induced loads that could occur during marine Transportation. OWNER shall develop a detailed procedure for preservation of modules, equipment and components for Transportation and storage.

1.7.2 Ship-loose Items

xxx. A detailed listing of ship-loose items shall be developed. The listing shall be organized by system and shall include the following:

a. Piece number;

b. Location of stored item;

c. Detailed description of reference drawings, sketches, method to reinstall, any required testing, verification and the like.

xxxi. The listing shall include all pipe spools, couplings, electrical components, lighting fixtures, instrumentation components, and the like.

1.7.3 Sea-Fastening

xxxii. OWNER will sea-fasten any ship loose items onto OWNER’s marine transport Vessels in accordance with accepted marine practice to the satisfaction of the MWS.

xxxiii. The transport Vessel being utilized shall be cleared of all non-essential materials and debris prior to towing. All loose materials and equipment left on the transport Vessel shall be secured for the tow by either welding or lashing to the deck. All Sea-fastenings between modules, decks or internal components to transport Vessels shall be designed considering the most severe condition that may be encountered during transportation.

1.7.4 Preparation of the FPSO for Sailaway

of 27



xxxiv. OWNER will make all towing arrangements compatible with OWNER’s design and provide all tow rigging (i.e., towing bridle, emergency tow wire, etc.) required to tow the FPSO. OWNER shall design, fabricate and install all Vessel towing fittings.

xxxv. Sailaway of the FPSO shall be contingent upon:

a. The FPSO being completed in accordance with the approved design, fabricated, assembled, installed, constructed, reconstructed, hooked-up, inspected and tested;

b. NIPPON and/or its representatives, the Classification Society and where applicable the NIPPON Verification Body verifying that the required inventories, tests, inspections and the pre-operating Pre-Commissioning and Commissioning (if applicable) have successfully met or exceeded the requirements;

c. Where required by SUBCONTRACT, such SUBCONTRACTOR certifying in writing that they have observed, inspected and/or supervised the Installation of their equipment or subsystems and were present during whatever performance testing and Commissioning that was conducted and they are satisfied that their equipment and/or subsystem shall meet the requirements of NIPPON Supplied Documentation;

d. The FPSO is delivered to the level of completion required for a safe tow/sail out and is in all respects seaworthy for such a tow/sail out as required by the Marine Warranty Surveyor and the Classification Society;

e. Any required seaworthiness or regulatory requirement tests have been completed;

f. Towing fixtures and fittings are as per Classification Society requirements and independently verified by the Marine Warranty Surveyor;

g. Satisfactory arrangements have been established to ballast the FPSO to the required draft for the tow/sail out; including pumps, initial ballast, ballast adjustments under tow, and fuel for Ballast System;

h. Towing tug(s) and Vessel(s), towing arrangements (both primary and emergency), planned tow route, weather contingencies and legal formalities for safe departure have been set in place and independently verified by the Marine Warranty Surveyor;

of 27



i. Receipt of documentation from the flag state, port clearance, Classification Society, including required certifications, indicating that the Hull was designed and built in accordance with their respective classification requirements and all legal requirement for port clearance has been fulfilled;

j. An independent survey of all key aspects of the Hull and tow has been carried out by OWNER and approved by the Marine Warranty Surveyor. The Marine Warranty Surveyor shall provide a copy of certification document to NIPPON.

k. Once agreed, for other than emergencies, no deviation to the tow/sail out plan may be made without the approval of the Marine Warranty Surveyor.

1.7.5 Transport / Towing Vessels

xxxvi. OWNER will provide all transport/towing/escort Vessels required for the transport/ tow/ escort of the FPSO to the SITE. Transport/towing/escort Vessels shall be kept in Class at all times, and all certificates shall be current and valid for use in the WORK. All tugs utilized by OWNER during Transportation WORK shall be of sufficient horse power and bollard pull to maintain headway with the tow in sea conditions as approved by the Marine Warranty Surveyor. Tugs shall not depart their tow except with confirmation that the barge is securely moored.

xxxvii. OWNER will design, furnish, fabricate, install and inspect any transport/ towing/ escort Vessel Sailaway grillage required for Sailaway of components. OWNER will make a report available for NIPPON review on suitability of marine Vessels including specification, specific layout and marine Vessel survey. Tug towing equipment and towing arrangement shall be approved by the Marine Warranty Surveyor and shall include as minimum:

a. One main towing line of adequate strength and length together with one spare towing line shall be available on board. The minimum acceptable continuous length is 610 meters;

b. At least two wire towing pennants of breaking strength equal to 90 percent of the breaking strength of the main towline shall be on board (complete with valid certificate);

c. Hard eye thimbles to be used for every connection in towline;

d. Shackles shall be commensurate with all other parts of the towing configuration (but not less than twice working load of the main towline, complete with valid certificate);

of 27



e. A motorized Work Boat shall be carried by the tug to enable men and equipment to be transferred to the barge without the tug going alongside the barge. (Inflatable dinghy with hardboard bottom powered by an outboard motor may be acceptable.) Adequate means of launching and boarding Vessels shall be provided;

f. Each tug shall be manned with a qualified Master, officers and seamen;

g. OWNER will at all times during the tow have a Transportation crew member assigned the sole duty of watching the tow to report any mishap. The Tow Master shall immediately take corrective action; and

h. OWNER will furnish all pertinent information relating to the assumptions for the basis of each tow within ninety (90) days before the Sailaway Date.

1.7.6 Completion Criteria for FPSO Sailaway, Transportation shall be as follows:

xxxviii. NIPPON formally accepts all deliverables reviewed and approved by Third Party Marine Warranty Surveyor;

xxxix. NIPPON formally signs off all Punch List items except those mutually agreed by NIPPON to be implemented later;

xl. NIPPON formally accepts all preparation WORK for FPSO Sailaway fully completed;

xli. NIPPON formally endorses FPSO SAILAWAY CERTIFICATE; and

xlii. No outstanding technical issues remain unresolved.

1.7.7 Pre-mobilization Meeting

xliii. Ten (10) days prior to the Sailaway Date of the FPSO, OWNER will coordinate, chair, minute and participate in a Pre-Mobilization meeting. The meeting shall be attended by the relevant Key Personnel of OWNER, NIPPON and NIPPON’s Other Contractors. The aims of the meeting include, but are not limited to:

a. Ensure alignment of all Parties of the WORK at the Installation SITE;

b. Clarify the communication protocol between OWNER, NIPPON and NIPPON’s Other Contractors;

c. Transmit requests for further information or scope clarification; and

of 27



d. Identification of critical issues that is likely to impact schedule or costs.

xliv. OWNER will prepare minutes of the meeting and issue to NIPPON for approval within three (3) days of the meeting.

1.7.8 Progress Reports and Towing Records

xlv. OWNER will inform NIPPON on a daily basis by telex or fax and email the progress of the tow(s). Items to be reported include tow position, average speed, estimated time of arrival, weather conditions and other events occurring during tow.

xlvi. OWNER will keep complete towing records indicating all events occurring during tow(s) and will submit these records to NIPPON as part of the final documentation.

1.7.9 Damage

xlvii. OWNER will be responsible for any damage to equipment, material, assembly, sub-assembly or component during Sailaway (after the Sailaway Date) or transport and will repair or replace the damaged component at no additional cost to NIPPON.

1.8 Installation Spreads of Mooring and FPSO

1.8.1 General

xlviii. OWNER will furnish all labour, material, equipment, consumables, supervision, inspection, scheduling, support facilities and interface coordination necessary to fabricate, transport, install, Hook-Up, pre-tension, inspect and test to make the Mooring System ready for connection with the FPSO to the coordinates specified in Section 5.1 of Basis of Design document in APPENDIX I-2 – NIPPON LIST OF TECHNICAL DOCUMENTS AND DRAWINGS. The Mooring System will comply in all respects to the Classification Society requirements and NIPPON Supplied Documentation.

xlix. The selection of Mooring System is included in this Scope of WORK, and OWNER will study the type of mooring system with requirement in NIPPON’s Supplied Documentation. As stated in EXHIBIT I SCOPE OF WORK, NIPPON supplied geophysical and geotechnical survey report shall be read as reference only. OWNER shall perform its own geophysical and geotechnical survey at its own cost at the locations where the Mooring System shall be installed before starting Mooring System Design.

of 27



l. OWNER will supply all necessary Vessels, equipment, SERVICES and Personnel required connecting the FPSO to the Mooring System at the FPSO SITE. Offshore Installation shall be in accordance with the requirements of OWNER’s Project Execution and Quality Plan. OWNER will submit for review a report on Installation methodology demonstrated by sequence sketches, illustrating the FPSO and marine Vessel activities involved.

li. The scope shall include, but not be limited to:

a. Selection study for Mooring type;

b. All FPSO SITE surveys necessary to obtain a complete Mooring System; Manage and support Pipelines Contractor for Riser System design;

c. All Mooring System engineering, Fabrication engineering, computer analysis and testing;

d. All activities leading to the classification of the Mooring System;

e. Procurement and Installation of all Mooring System equipment and materials;

f. Fabrication of the turret and mooring structures and appurtenances;

g. Fabrication and Installation of all required piping, Piping Equipment and piping supports on the FPSO;

h. Installation of all Electrical and Utility Equipment on FPSO;

i. Installation and Hook-Up of all Instrumentation and Control Systems Painting, coating, and insulating as required;

j. All inspection, testing, and functional testing;

k. Pre-Commissioning and testing the installed equipment, systems, and utilities to the greatest extent possible prior to Offshore Installation;

l. Provision of Vessels for Offshore Installation including Mobilization and Demobilization;

m. Offshore Installation, inspection, and testing of Mooring System so that the Mooring System is left ready and prepared for connection to the FPSO.

of 27



lii. OWNER will also provide all Mobilizations, temporary facilities required during Fabrication, transport, Installation, inspection, testing and Commissioning, including removal of all temporary facilities and its components including winches, fairleads, pull-in lines and chain stoppers. OWNER will also provide all Mobilizations/ de-Mobilizations of temporary facilities, including removal of temporary facilities, required to accomplish the WORK.

1.8.2 Transportation and Installation of Mooring Spreads

liii. OWNER will specify the minimum vessel specifications for SUBCONTRACTOR vessels required to perform the WORK. Particular attention should be paid to items such as power generation capacity, length, diameter of anchor wires, anchor winches and deck cranes operating capacities (including man riding certification).

liv. OWNER will provide an equipment list and mooring procedure for the nominated vessel for each WORK location. The documentation shall include each of the following elements:

a. Anchor pattern and vessel location superimposed on the latest edition of the SK-10 chart;

b. Actual size and length of the vessel’s anchor wires, Material Certificates and Test Certificates;

c. Breaking strength of the vessel’s anchor wires. Values quoted shall include de-rating if necessary for wear;

d. Details of the anchor winches, including maximum line pull, stall capacity and maximum weight of anchor, which can be utilized;

e. Details of the anchors to be used, including sketches and/or photographs. For each type of anchor to be deployed, a statement should be made on expected holding power in hard and soft seabed conditions. Details of pennant wires and buoys should also be provided;

f. Details of any proposed Mid Line Buoys (MLB) required to suspend anchor wires and prevent catenary contact with pipelines and other subsea structures. Catenary calculation sheets shall be provided for all proposed MLB locations;

g. Details of the threshold weather conditions which would cause the construction spread vessel to cease operations and/or move away from the WORK SITE for each mode of the operations covered under the scope of WORK. In addition, maximum anchor tensions for adverse sea conditions;

of 27



h. Details of electronic positioning (surveying) equipment and personnel; including, number of units, power supply, radio frequency and proposed locations for remote stations; and

i. The method of anchor handling, setting up the vessel and moving vessel within the anchor pattern. Particular attention shall be paid to anchor handling vessel details, anchor handling winch capabilities and crane age details if required for anchor handling.

1.8.3 Detailed Towing Plan

lv. OWNER will submit to the Marine Warranty Surveyor for approval a detailed Towing & Installation Plan for each loaded barge associated with the Transportation Vessels. A copy of the Towing Plan shall be sent to NIPPON. These plans shall include, but not be limited to the following:

a. Size, number, name and certification of tugs to be used for tows;

b. Detailed sketches and calculations showing proposed schedule of tank ballasting to achieve draft and trim for barges;

c. Detailed sketches and calculations showing sizes and arrangements for tow bridles including emergency pickup line;

d. Description of manoeuvring plans and additional tugs, if required, to clear the harbour;

e. Proposed route of the tow and contingency plans in case of equipment failure, and safe anchorage/ shelter area in the event of poor weather conditions;

f. Transit schedule to the FPSO SITE;

g. Communication plans during tow, including methods of getting information to NIPPON;

h. Security provisions during the tow;

i. Anticipated weather data along route and the weather forecasting SERVICES prior to and during tow with which OWNER shall provide to tug boat captains;

j. Special instructions to the tow Masters (if any); and

k. Planned inspection of cargos during tow.

1.8.4 Transportation Barges

of 27



lvi. The Transportation Barges will be sea-going type, of adequate size to accommodate the Mooring System and Riser System, as applicable and any other equipment and materials required for the Installation WORK. The Transportation Barges shall be supplied together with sufficient crew and officers to permit operation on a continuous twenty-four (24) hours basis for the duration of the WORK.

lvii. OWNER will ensure that all Transportation Barges are inspected and approved by a Marine Warranty Surveyor, both prior to and after the Sailaway Date and Sea-fastening. OWNER shall be responsible for all preparation WORK, including but not be limited to all inspections, maintenance, repairs, modifications and tests as required by the Marine Warranty Surveyor. Inspection and approval of the Transportation Barges shall take place thirty (30) days prior to the Sailaway Date. The OWNER will notify NIPPON of any change in the Vessels. Any such changes shall be subject to NIPPON and Marine Warranty Surveyor approval. OWNER will be responsible for any re-WORK regarding engineering and Installation Procedures should the change of Vessel be endorsed by NIPPON.

lviii. Towing bridle arrangements and emergency tow lines shall be approved by the appointed Marine Warranty Surveyor.

lix. OWNER will furnish the required transport stability calculations for the barges no later than sixty (60) days before the Sailaway Date.

1.8.5 Construction Barge

lx. For the purpose of anchor position monitoring, all Construction Barges shall be fitted with the following equipment, without exception, in the anchor control room:

a. Anchor winch television monitors

b. Anchor tension indicators

c. Anchor line out indicators

lxi. Calibration Certificates will be provided for anchor tension monitors and line out indicators and shall be less than twelve (12) months old. Should failure of any of the equipment listed above occur in the field, NIPPON reserves the right to stop operations until the failure is corrected. Any standby cost incurred for the entire spread shall be on OWNER’s account.

of 27



lxii. All anchors locations will be fixed by the electronic positioning system prior to placing anchor on the seabed, summarized in daily operations report and submitted to NIPPON. If the Electronic Positioning System becomes inoperative or malfunctions, all anchoring operations shall cease until the failure is corrected. Any standby cost incurred for the entire spread shall be on OWNER’s account.

lxiii. Prior to lifting any anchors form the seabed, the location shall be surveyed to confirm that the anchor has not slipped.

lxiv. When anchor handling vessels are running or retrieving anchors, the anchor shall be within 20 meters of the sea surface before barge winching commences. Cable or pennant wires shall not be allowed to trail on the seabed.

lxv. As a minimum, the Construction Barge shall have the following surveying equipment and personnel on board.

a. Electronic positioning equipment accurate to +- 2meters, complete with the necessary computer hardware to generate a continuous hard copy X, Y plot of the location from the electronic signals;

b. OWNER will provide the necessary sets of the above referenced equipment, to ensure that on each is provided for the Construction Barge, each Anchor Handling Vessels and one back-up;

c. Most up to date SK-10 Field layout provided by NIPPON to OWNER shall be utilized by the survey personnel, and careful regards should be made to existing and future facilities shown on drawings; and

d. A minimum of four (4) surveyors and two (2) technicians are required for a twenty-four (24) hours operation. The personnel shall be completely familiar with the survey systems employed and experienced in using same.

1.8.6 Progress Reports and Towing Records

lxvi. OWNER will inform NIPPON on daily basis by telex or fax and email the progress of the tow(s). Items to be reported include tow position, average speed, estimated time of arrival, weather conditions and other events occurring during tow.

lxvii. OWNER will keep complete towing records indicating all events occurring during tow(s) and shall submit these records to NIPPON as part of final documentation.

lxviii. OWNER will assume all risk for any time lost due to waiting on weather during Transportation and Installation of the Mooring System

of 27



1.8.7 Mooring System Installation and Inspection

lxix. OWNER will be responsible for the complete Installation of the Mooring System in the field and Hook-Up of the Mooring System to the FPSO. OWNER shall complete the following:

a. Pre-Installation survey;

b. Preparation of Installation Procedures;

c. Tow-out and Installation of the Mooring System;

d. Installation and positioning of the mooring lines including tensioning;

e. Lay-up of the mooring lines until arrival of the FPSO on-site; and

f. Inspection of the installed system.

lxx. OWNER will be responsible for the Sailaway, Sea-fastening and Transportation of the Mooring System together with any necessary tools, labour, plant, machinery and consumables, as required to complete the Offshore Installation. OWNER shall be responsible for all engineering calculations and will prepare all required drawings and detailed step-by-step procedures in accordance with the requirements of CONTRACT Specifications for the design of Sea-fastenings and any other temporary WORK that may be required for the Sailaway and Transportation of the Mooring System.

lxxi. OWNER will participate in a Pre-Sailaway Review and meeting with NIPPON and OWNER, which shall include an inspection of the Mooring System. The meeting shall be held at least seven (7) days prior to the commencement of any Sailaway activity.

lxxii. The Mooring System shall be installed in accordance with the Installation Procedures developed by OWNER and in accordance with Classification Society, MWS and NIPPON Supplied Documentation.

lxxiii. OWNER’s Installation shall include deployment of all off-Vessel components, load testing of all off-Vessel components and temporary abandonment of mooring lines ready for FPSO Hook-Up.

lxxiv. All Installation equipment shall meet the component requirements and shall comply with standard industry practices for acceptable handling of mooring components.

lxxv. For Mooring System using driven or suction piles, a test load shall be determined based on the consideration of eliminating slack in the grounded mooring lines and detecting damage to the mooring components during Installation.

of 27



lxxvi. OWNER will complete a final inspection of the installed Mooring System to ensure that no damage occurred during handling, that all components are in the proper orientation and that no kinks or twist exist in the chain.

lxxvii. All piles and mooring legs locations shall be fixed by Electronic Positioning System. OWNER shall update the SK-10 field map showing all piles, mooring legs, and any other subsea items installed by OWNER and submit to NIPPON as one of As-Built Records.

1.8.8 Mooring and Installation of FPSO.

lxxviii. Upon arrival of the FPSO at the SITE, the OWNER will:

a. Moor the FPSO Hull to the pre-installed mooring lines and pre-tension the Mooring System, FPSO location adjustment, final pre-tensioning of Mooring System and any intermediate steps necessary to complete the Installation of the FPSO;

b. Check, report and repair any damages incurred during tow; and

c. Permanently install all “ship loose” items.

d. After Installation of the FPSO is complete, OWNER will dispose of any and all debris in accordance with local regulatory requirements where the disposal is to occur. Debris will be removed by OWNER from the Installation SITE.

1.8.9 Weather Down Time

lxxix. OWNER will assume all risk for any time lost due to waiting on weather during Installation of FPSO.

1.9 Logistics Support

1.9.1 OWNER will provide all logistical support required to support all its offshore activities. The SERVICES shall be provided for the duration of the WORK at the location involved. This support shall include, but not be limited to the following:

lxxx. Local Service Base (Shore Base)

a. If necessary, OWNER will provide a suitable shore base for the support of its offshore activities, along with an appropriate logistical support organization.

lxxxi. Supply Boat Service

a. OWNER will arrange for adequate supply boat SERVICE to support its operations prior to First Gas intake.

of 27



lxxxii. Offshore Communications

a. OWNER will provide its own means for offshore communications during the time the WORK is in progress prior to First Gas intake.

lxxxiii. Security Services

a. OWNER will provide for maintenance and security of the FPSO during transit from the SITE to the FPSO SITE. OWNER will maintain the FPSO in a safe condition during the tow/Sailaway and ensure all essential support equipment required for immediate use by OWNER and NIPPON Personnel are operational once the FPSO has been moored at the SITE.

lxxxiv. Onshore Medevac Procedures and Services

a. OWNER will develop and implement a Medevac Program for all Personnel. OWNER will make prior arrangements for Medical SERVICES that are appropriate for its requirements.

lxxxv. Crew Boat SERVICE

a. OWNER will provide all offshore marine Transportation, and standby Vessels required for OWNER Personnel, for materials and supplies.

lxxxvi. Temporary Construction Camp

a. OWNER may use the FPSO accommodations for subsistence of its Personnel and administrative purposes when the accommodation is complete. OWNER will provide additional accommodations as required for Hook-Up, Commissioning and Start-up.

lxxxvii. Transportation for Personnel To/From Conversion Site/Yard

a. OWNER will provide its own Transportation for its personnel and equipment within Malaysia, both onshore and offshore. OWNER shall not be allowed any air traffic to and from the SITE without advance approval from NIPPON and appropriate Malaysian authorities. Obtaining such approvals shall be the responsibility of OWNER.

lxxxviii. Interface with Other Contractors

of 27



a. OWNER will interface with Other Contractors and provide support as needed per the agreed NIPPON interface matrix. OWNER and its SUBCONTRACTOR will ensure that scheduling of the Installation has been fully detailed and identified with a clear definition of each party’s responsibilities and undertakings. OWNER will provide assistance to Other Contractors including, but not be limited to:

1. Maintenance of access, egress from all WORK and accommodation areas, and standards of on-board housekeeping consistent with safe working practices and NIPPON requirements; and

2. Logistics support as required.

1.10 Flexible Risers Installation

1.10.1 General

lxxxix. The EPCIC of Flexible Riser is not included in OWNER’s Scope of Work, and it is a Scope of Pipelines Contractor’s work. Owner will support Pipelines Contractor on the following scope, but is not be limited to:

a. All FPSO SITE surveys necessary to obtain design and other information for all Engineering, Conversion/Fabrication Engineering, model creation and testing;

b. Procurement and/or Fabrication and Installation of all equipment, appurtenances and materials;

c. Installation and Hook-Up of all Instrumentation and Control Systems;

d. Interface during all Inspection, Testing, and Functional Testing;

e. The Transportation of the completed structures and appurtenances to SITE, including Sea-fastening, marine warranty survey and any requirement for safe passage to SITE;

f. Installation of Risers and end terminations necessary for setting the system in place and marked by suitable marker and/or anchoring system;

g. Offshore Installation, inspection, and testing of system so that the system is left ready and prepared for flow to/from the FPSO, including all logistic, Installation Vessel, DSV, marine Vessels, etc. necessary to complete the WORK;

of 27



h. Any testing Pre-Commissioning and Commissioning, including but not be limited to hydro-test, underwater survey, exact location, route survey etc.;

i. The supply and Offshore Installation of all Flexible Risers; and

j. The hydro-testing of the completed Riser System.

of 27

towingsailaway transportation and installation plan

Documents