HAZARD & OPERABILITY (HAZOP) STUDY

TECHNICAL & COMMERCIAL PROPOSAL

TO

TUV RHEINLAND SINGAPORE PTE LTD

FOR

PROYEK LANGIT BIRU CILACAP

PT PERTAMINA
Prepared for: TUV Rheinland Singapore Pte Ltd
Proposal No: ABSIV/TUVR/1023202/2012/ Rev 0

Prepared By:
ABSIV India Pvt.Ltd.
10th Floor Lakhani's Centrium Plot 27, Sector 15.
CBD Belapur Navi Mumbai 400 614
Tel No. +91-22-41734173 Fax No. +91-22-41734174
www.absconsulting.com

16 April 2012
Contents
INTRODUCTION .........................................................................................................................................................3
SCOPE OF WORK .......................................................................................................................................................4
PROCESS DESCRIPTION ...........................................................................................................................................5
BASIC HAZOP METHODOLOGY .............................................................................................................................8
DELIVERABLES AND SCHEDULE ........................................................................................................................ 19
PROJECT TEAM ........................................................................................................................................................ 20
COMMERCIAL .......................................................................................................................................................... 21
GENERAL TERMS AND CONDITIONS ................................................................................................................. 27
INTRODUCTION

We refer to email requests between ABS Industrial Verification (India) Pvt. Ltd.
(ABSIV) and TÜV Rheinland Singapore Pte Ltd regarding undertaking a Hazard and
Operability study (HAZOP) for the PROYEK LANGIT BIRU CILACAP for PT. Pertamina’s
Cilacap Refinery in CentralJava, Indonesia.

The existing Cilacap Refinery has operated commercially since 1976. Fuel Oil Complex
(FOC) I & II produce fuel products; Lube Oil Complex (LOC) I, II, & III produce lube base
oil & asphalt, and the Paraxylene Plant produces paraxylene and benzene. Other
facilities supporting RU-IV operations are offsite and utilities facilities.

Crude oil processing capacity of Crude Distillation Unit (CDU) - I in FOC-I was 100,000
BPSD with crude from Middle East and of Crude Distillation Unit (CDU) - II in FOC-II was
200,000 BPSD to process domestic crude. After the implementation of the Cilacap
Refinery Debottlenecking Project in 1998/1999, the capacity of CDU-I have been
increased to 118,000 BPSD and that of CDU-II has been increased to 230,000 BPSD.

The main scopes of Proyek Langit Biru Cilacap (PLBC) are revamping of existing
unit and build new units as follows:

1. Revamp will include the following units:

• Fuel Oil Complex (FOC) – I, Semi-regen Platforming Process Unit (Unit-14)

• Fuel Oil Complex (FOC) – II, CCR Platforming Process Unit Reformate Splitter
(Unit-014)

• Cilacap Paraxylene Plant Aromatic Complex Sulfolane™ Process Unit (Unit-85)

2. Build the new Units:

• Light Naphtha Hydrotreatment (Unit-120)

• Light Naphtha Isomerization (Unit-140)

3. Utility Expansion Units:

• Steam Generation Unit

• Steam Turbine Generator

• Cooling Water Supply

• Reverse Osmosis

• Instrument Air & Plant Air

• Nitrogen Plant

4. Offsite Facility

• Flare System for New Units

• Waste Water Treatment for New Units

The HAZOP is to be carried out in Jakarta, Indonesia.

ABSIV will provide an experienced Facilitator for undertaking the HAZOP, and a
scribe for recording the workshop proceedings.

SCOPE OF WORK

The scope of work includes carrying out the HAZOP Study for:

• Inside Battery Limit / ISBL units ( UOP License for Revamping Platforming
FOC I / Unit 14 ,
• Revamping Sulfolane Unit / Unit 85 KPC , New Reformate Splitter
Platforming FOC II / Unit 014 and AXENS License for Light Naphtha
Hydrotreatment /Unit 120 , Light Naphtha
• Isomerization / Unit 140 ) and Outside Battery Limit / OSBL units ( Non-
Licenses Unit, New
• Utilities System and Offsite Facility ) of Proyek Langit Biru Cilacap / PLBC
The intended objectives of HAZOP are as follows:

• The HAZOP process is used to identify potential hazards and operational

problems in terms of plant design .
• To evaluate plant design of the revamping project on integration new system
to the existing refinery for safe and reliable operation.
• To identify the causes of all deviations from the design that cause hazard
and operability problems
• To mitigate the action that required to control the problem and ensure all
decided action are implemented.

PROCESS DESCRIPTION

1. Revamping.

PERTAMINA operates an existing Platforming Process Unit (FOC-I) at Cilacap,

Indonesia.

The Unit was originally designed by UOP to operate as a fixed bed (semiregen) unit.

In order to increasing the operating capacity of the Unit and reformate octane, and
converting the unit to the CCR (continuous catalyst regeneration) mode of operation,
PERTAMINA will revamp the existing Platforming Process Unit (FOC-I).

In order to improve quality of Benzene content in Reformate product which produced

from Platforming Unit I (FOC-I) and Platformate product which produced from
Platforming Unit II (FOC-II), new FOC-II Reformate Splitter will construct at this project.

This unit will be a part of Platforming Unit II FOC-II (Unit 014). The capacity of new FOC-
II Reformate Splitter is 2711 MT/D.

PERTAMINA operates an existing Sulfolane Process Unit at its aromatics complex in

Cilacap (Kilang Paraxylene Cilacap-KPC), Indonesia. The unit was originally designed
by UOP to process Reformate Splitter overhead and Tatoray Unit Benzene Column
overhead.
PERTAMINA is interested in increasing the operating capacity of the Sulfolane Unit to
take additional feed from the new FOC-II Reformate Splitter overhead. The capacity will
increase 1548 MT/D.

2. New Units

A. Naptha Hydrotreater.

The purpose of the Naphtha Hydrotreating section is to produce a clean desulfurized

Naphtha cut able to be processed in the Isomerization section after removal of all
impurities which are currently poisons for catalysts (sulfur, nitrogen, water, halogens,
diolefins, olefins, arsenic, mercury and other metals) by eliminating or reducing to an
acceptable level.

The treating process is achieved by passing the naphtha over a fixed bimetallic catalyst
bed in an adiabatic reactor in the presence of hydrogen.

B. Naptha Isomerization.

Isomerization of the light hydrotreated naphtha is carried out in a series of two fixed bed
reactors. Isomerization is the conversion of hydrocarbons to their isomers, which have
the same molecular formula but a different arrangement of molecules. The C5 /C6
Isomerization Unit specifically converts the normal C5 / C6 paraffins to their isomers, i.e.
to a higher octane branched arrangement, over a proprietary platinum catalyst in the
presence of hydrogen. The conversion per pass of the normal paraffins to their isomers
is determined by the reaction equilibrium at the reactor operating conditions. The low
octane methyl-pentanes and the unconverted n-hexane are recycled back to the
isomerization reactors to achieve the objective of a RON clear 87.4 according to the feed
case (guaranteed value).

A Deisohexanizer tower is used for recovering and recycling the low octane
methylpentanes and the unconverted n-hexane from the reactor effluent. The
Deisohexanizer distillate and bottoms streams are combined to produce the final
isomerate product. A stabilizer is used for removing light ends from the reactor effluent,
before sending it to the Deisohexanizer. The Stabilizer vent gas contains hydrogen and
chloride which is removed by neutralisation with caustic soda in a Caustic crubber.
The flow scheme is identical for both the SOR and EOR operation, however, the
operating conditions are different, and this variation is discussed in the Design Basis
section.

The unit consists of the following sections:

1) Reaction

2) Stabilizer

3) Deisohexanizer

4) Caustic Scrubber

5) Dryer Regeneration

6) Chloride Injection Facility

3. Utility Facilities

To fulfill utility requirement of the revamping project, PERTAMINA will install and
construct new utility facility at area 500 as follows:

1) Cooling Water Intake Pump (Unit 530)

2) Cooling Water Tank and Cooling Water Pump (Unit 530)

3) Reverse Osmosis Unit (Unit 540)

4) Additional De-aerator Feed Pump (Unit 520)

5) Additional HP BFW Pump (Unit 520)

6) Boiler / Steam Generator – (Unit 520)

7) Steam Turbine Generator (Unit 510)

8) Instrument Air and Plant Air System (Unit 560)

9) Interconnection new utility facility to the related existing system

 4. Offsite facilities.

To fulfill offsite facility requirement of the revamping project, PERTAMINA will install and
construct new offsite facility as follows:

A. Flare System (Unit 100)

This facility will service for new Naptha Hydrotreater Unit , new Naptha Isomerization Unit.

B. Nitrogen Plant (Unit 110)

This facility will service refinery nitrogen requirement and interconnected to the refinery
nitrogen distribution system existing. This plant is completed with new nitrogen liquid
storage.

C. Nitrogen Compressor (Unit 10)

This facility will service to fill Nitrogen Cylinder Rack.

D. Interconnection new Nitrogen and Flare system to existing Process Unit.

BASIC HAZOP METHODOLOGY

The HAZOP analysis will be performed by an experienced HAZOP facilitator who is familiar
with typical oil & gas equipment and facilities. The process/methodology that will be
followed will be in compliance with IEC 61882 (2001) “Hazard and Operability Study
(HAZOP) – Guidelines”, which is better expanded on in the UK IChemE’s “HAZOP: Guide to
Best Practise”.

The Hazard and Operability Study (HAZOP) will specifically address the process and utility
equipment associated with the specific project, with the objective of demonstrating that the
design of the equipment is adequate for all possible normal and emergency operating
conditions. This will be achieved in a workshop setting using with a HAZOP team of experts
in their own field.

Deviations from normal operation will be used to prompt the HAZOP team to assess each
part of each plant. Deviations will consist of parameters (such as flow, level, temperature,
and pressure) and guidewords (such as No, More, Less, Reverse). Refer to Table 1.
 The systematic approach of a HAZOP study requires that deviations (guideword +
parameters) be uniformly applied to all sections under study. The key process
parameters will be applied to each section of the system (node) to generate deviations
from the design (normal) operation. For example, the deviation “NO FLOW” would
prompt the leader to ask the team, “What could cause no flow in this section or line
segment?”. The “Possible Cause” and “Potential Consequence” scenario will then be
discussed and documented. A cause needs to be one that will/can occur within the
node being considered. In contrast, the consequences should be global and look at
what happens to upstream and downstream nodes, and outside of the HAZOP scope.

For scenarios involving significant risk, “Recommendations” that the team believes may
further reduce risk or improve the operability of the facility will also be documented. This
is to establish if adequate safeguards are provided in the design to minimize the
likelihood of the deviation occurring or mitigate its consequences.

General issues associated with such things as Operations, Maintenance,

Instrumentation, Sampling, Corrosion/Erosion, Service Failure, Leakage, Static, Spare
Equipment, Safety will be covered under General Parameters with the guideword “More
Issues”, in addition to such things as: Relief, Inerting/Purging, etc.

Table 1 – Deviation Matrix

GUIDEWORD
MORE
DESIGN
PART OTHER THAN (AS
PARAMETERS NO LESS MORE REVERSE
OF THAN WELL
AS)
Contamin
Composi
More Reverse Misdirect ation /
FLOW No Flow Less Flow tion
Flow Flow ed Flow wrong
change
material
More
TEMPERATURE Less Temp
Temp
Less More
PRESSURE
Pressure Pressure
More
LEVEL Less Level
Level
Less More
VISCOSITY
viscosity viscosity
GENERAL (with
Instrumentation, Sampling, Corrosion/Erosion, Service Failure, Leakage, Maintenance,
guideword “Other
Static, Operations, Spare Equipment, Safety, Relief, Inerting/Purging, etc.
Than”)
Table 2 below helps to expand the meanings of the guidewords that are used in a
HAZOP study and how they are applied.

Table 2 – Guideword Meanings

GUIDEWORD MEANING COMMENT
NO (or NOT or The complete negation of the design No part of the intentions is achieved
NONE) intentions and nothing else happens.
LESS Quantitative decreases of any
relevant parameters
MORE Quantitative increases of any These refer to quantities + relevant
relevant parameters physical properties such as flow
rates and temperatures.
REVERSE The logical opposite of the intention This is mostly applicable to activities
for example, reverse flow or
chemical reaction.
PART OF A qualitative decrease Only some of the intentions are
achieved; some are not.
MORE THAN (or A qualitative increase All the design and operating
AS WELL AS) intentions are achieved together with
some additional activity.
OTHER THAN Complete substitution No part of the original intention is
achieved. Something quite different
happens.

The guideword approach is used for complex and higher risk process systems (oil & gas,
hydrocarbons, etc) and often results in redundancies, in that many “Possible
Cause/Potential Consequence” scenarios can be identified from an evaluation of two or
more deviations. For example, a pipe rupture/leak may be a cause for “MORE FLOW” in
a line segment. Later in the study, as the HAZOP team moves on to “REVERSE FLOW”
the study team may determine that a cause of “REVERSE FLOW” in the same line
segment would be a pipe rupture. Thus, a pipe rupture may cause both “MORE FLOW”
and “REVERSE FLOW for the line segment under study. In such an instance, the
cause/scenario is fully developed and documented under the first, and simply referred to
in the second, as no new initiating cause has been identified. (As another example,
causes which affect Flow also affect Pressure.)

The “Safeguards” that reduce the risk associated with the specific cause/consequence
scenarios are then discussed and documented. Consequences and safeguards outside
the section are then discussed and documented. For scenarios involving a significant
risk, “Recommendations” that the team believes at the time may further reduce risk or
improve the operability of the facility are also documented.
 (The “What-If” approach, explained in more detail later in this document, is more useful
for lower risk and utility systems and involves a more time effective means to HAZOP a
process/facility, with less duplication and time required. This is the process that would be
used for the majority of the Utility systems.)

The specific steps of the HAZOP methodology to be used in this study will be as follows,
and as shown in Figure 1:

• Identify discrete “nodes” within the drawings included in the HAZOP and then work
through the process from front to end, one node at a time.

• Apply a deviation (guideword + parameter) to the node.

• Brainstorm all causes of the deviation (staying within the node).

• Look at each cause and develop global consequence(s) of the cause.

• Identify all existing safeguards associated with each cause.

• Qualitatively assess the risk of the consequence scenario.

Figure 1 - HAZOP Process for Each Node/Section

Describe design
intention, operating
conditions etc.

Consider first or
next guideword or
deviation

Identify all causes

and records

Identify all consequences

and record

Identify all safeguards

and record

Risk Ranking to determine if

Agree anyareactions
recommendations necessary Expanded on
necessary and record next sheet

No Last
guideword?

Yes

Take next section

After assessing the ultimate consequences and safeguards that are in place, the scenario is
then risk-ranked and evaluated based on how serious the potential consequences will be (its
“Severity”), and how probable it was that the scenario would fully develop to those
consequences (its “Likelihood”).

It is always beneficial to use a risk-ranking matrix to provide an overall qualitative risk ranking
This guides the HAZOP team to when recommendations are required and also allows for
prioritising the HAZOP recommendations after the workshop. During the HAZOP, each
developed cause/consequence scenario is rated with an SLR, S representing severity, L
representing likelihood, and R representing risk. For scenarios with risk rankings of 8-16 the
HAZOP team is required to propose Recommendations (also known as proposed Actions)
that they feel will eliminate the potential cause of the scenario or reduce the likelihood that the
scenario would fully develop to the ultimate consequences predicted. For scenarios with risk
ranking of less than 8 (1-6), the risk is considered less significant and the need for
recommendations is left to the discretion of the HAZOP team.

When required by the Risk Matrix, “Recommendations” are suggested to reduce risk and/or
improve the operability of the system.

This process is repeated for each node and each deviation relevant to a number of
parameters (such as flow, pressure, temperature, level, etc) until the planned scope of the
work has been analysed.

In some cases, the team may propose recommendations that might improve the safety or
operability of the operations without fully developing a cause/consequence scenario. This will
typically occur when the severity or likelihood of the consequences are difficult to predict. In
many cases Recommendations are also made when the Risk Ranking is already Low.

By undertaking such an analysis, albeit qualitative, an assessment that the risk is As Low As
Reasonably Practicable (ALARP) can be made for each Deviation/Cause which is identified.

During the HAZOP workshop a master set of drawings will be displayed on walls/boards
around the HAZOP venue and these will be marked up as the HAZOP progresses to indicate
the systems/lines having been covered with suitable notations made to record and corrections
to the P&IDs, safety related recommendations, items requiring other study, and items on
“Hold”.
Typical HAZOP requirements:

For information and assistance in preparing for the HAZOP, the following requirements should
be provided.

A quality HAZOP will typically require the following personnel as full-time HAZOP team
members:

• Operations specialist with detailed knowledge of the process and facility.

• Design/Process engineer with detailed knowledge of the design/process technology

(from both the facility designer and the operator/client)

• Mechanical engineer with detailed knowledge of specific mechanical designs (from

both the facility designer and the operator/client)

• Instrumentation engineer with detailed knowledge of the instrumentation philosophy

(from both the facility designer and the operator/client)

Please note that the process, mechanical and instrumentation engineer disciplines should be
represented from both the facility designer and the operator/client.

In addition, the following personnel may be called upon by the HAZOP team to participate in
the study on a limited basis, as required:

• Structural engineer (from designer)

• Package enginer (from designer for any major vendor packages)

• Health/safety/fire protection representative (from operator)

• Environmental representative (from operator)

Further, the following information is needed to ensure the HAZOP is carried out efficiently and
effectively without having to refer or hold-over issues, questions, etc:

• A brief description of the process (including mitigation systems such as fire protection,
deluge systems and detectors).

• One set of full size (A1 size) up-to-date P&ID’s with symbols of the facility and a
reduced set (A3 size) for each study team member – latest release, fully marked up
with any changes.
 • Process operating procedures, including startup, normal operation, shutdown and
emergency shutdown, for the unit or for similar units.

• Information regarding hazards of process materials, intermediates, and products

(MSDS - material safety data sheets).

• Previous HAZOP, PHA (Process Hazards Analysis) or HAZID (hazard identification)

report(s) - if available

• Plot plan and Hazardous Area Classification drawings.

• Process control intent/philosophy details, with all Cause & Effect drawings and logic
diagrams.

• Emergency, interlock and safety shutdown system descriptions and criteria

philosophies.

• Piping specifications and materials of construction details for the process.

• General arrangement drawings or photographs if available.

• Design basis information (i.e. temperature, pressure, etc. ratings).

• Equipment data sheets, including all relief valve sizing criteria, and vendor-supplied
details (if available).

All drawings should be provided to ABSIV in PDF format. Documents can be in Word,
Excel, or PDF format.

The HAZOP should be attended by personnel familiar with the design of the facilities and the
operation of the systems, but numbers should be limited to not more than 10-15 persons to
ensure the meetings can be conducted efficiently. ABS will provide a facilitator for the
meetings familiar with the process of HAZOP. The HAZOP will be documented using a
specialized HAZOP recording tool on a laptop computer. TUV Rheinland are required to
provide a overhead projector, screen and standard connectors for a laptop to allow the
HAZOP software to be displayed and enable participants to view comments as they are being
recorded.

In order to minimize the schedule time for the HAZOP review and to achieve the best overall
results from the effort, P&IDs) must be issued to all team members ahead of the review.
 There are also several key housekeeping points that need to be made regarding the HAZOP
team:

• All of the team members must have the necessary background and knowledge to
contribute to the overall team efforts.

• Open and frank discussion is encouraged – there must be no hint of recrimination or

aftermath for people in raising relevant information or issues. The review must be held
in a supportive environment in order to achieve the best results.

• The key members must be present throughout the HAZOP with little or no substitution
to attend to other priorities – a full time commitment is essential.

• Mobile phones and pagers must be turned off at all times during the HAZOP.

What-if analysis

For parameters that are not directly part of the oil and gas process and for utilities and
services, a slightly different approach can be used, called the “What-if” (or Checklist) analysis.
The “What-If” analysis is an internationally recognized technique for using in Risk Assessment
(UK IChemE, AIChemE, & API) and is generally part of most HAZOP. The use of “What-If” for
any parts of the plant will be reviewed with the HAZOP team before its use to ensure all
parties are comfortable with its use for the section of plant being covered. This will be
generally be used for Utility Systems (air, water, effluent treatment, condensate, steam, etc).

Similar to the guideword HAZOP, the What–if/Checklist method involves experienced staff
brainstorming a series of question that begin with “What if….”. Each question represents a
potential failure in the facility or mis-operation of the facility. The response of the process
and/or operator is evaluated to determine if a potential hazard can occur. If so, the adequacy
of any existing safeguards is weighed against the likelihood and severity of the potential
scenario to determine whether modifications to the system should be recommended.

The steps in a ‘What-If” analysis are

• Identify activity/system to be covered (the ‘node’)

• Brainstorm a list of “What-If…..” questions

• Identify the consequences of the What-If

 • List the safeguards in place

• Rank the Risk

• Identify Recommendations (if needed)

HAZOP Analysis Consultancy Resources

ABSIV will normally provide a facilitator, scribe, laptop, and specialist software for recording
the HAZOP sessions. The HAZOP and any What-if analysis Reports will be documented
using the specialized HAZOP software (PHA works) recording the session onto a laptop
computer. This software is used to display the HAZOP sessions as they proceed, and to
generate reports for the overall HAZOP (generally known as the Worksheet), as well as
special reports that only cover the Recommendations.

TUV Rheinland are required to provide a venue for the HAZOP, an overhead projector,
screen and standard connectors for a laptop to allow the HAZOP software to be
displayed and enable participants to view comments as they are being added. Further,
TUV Rheinland are required to provide suitable refreshments and food/meals for the
HAZOP team during the workshop period.

Examples of the output Worksheet and Recommendations reports are shown in Table 3 and 4
on the following page.
 Table 3 – Example of HAZOP Worksheet Report

Session: March 23, 2003

Node: 1
Drawings: XXX-PID-01
Intention: Flow of LPG from AA to BB at 100 deg F, and 200 psig.
Parameter: Pressure

Guideword Deviation Causes Consequences Safeguards S L R Ref Recommendation yAction

# By

More Higher Closed Line rupture with Hi pressure 1 3 2 1.1 Consider installation
Pressure valve release of alarm of PSV on line 1234-
flammable liquid A-4” on P&ID ABC-
resulting in 123 Rev 1 set above
vapour cloud and Hi-Hi Hi-Hi pressure
possible VCE pressure interlock to provide a
interlock second level of over
pressure protection

S = Severity
L = Likelihood
R = Risk Ranking

Table 4 – Example of HAZOP Recommendations Report

Session: March 23, 2003

Node: 1
Drawings: XXX-PID-01
Intention: Flow of LPG from AA to BB at 100 deg F, and 200 psig.
Parameter: Pressure

Deviation Causes L R Ref Recommendation Action

# By

Higher Closed valve 3 2 2 1.1 Consider installation of PSV on line 1234-A-4” on P&ID
Pressure ABC-123 Rev 1 set above Hi-Hi pressure interlock to
provide a second level of over pressure protection

S = Severity
L = Likelihood
R = Risk Ranking

Recommendations will be recorded clearly in such a way that it is obvious what is being done
and why it is being done.
DELIVERABLES AND SCHEDULE
Deliverables:

ABSIV shall prepare the final document as project deliverables such as but not limited to:

a. HAZOP report completed with nodes list, worksheet, all mark up drawing and notes
discussed during the hazop study.

b. HAZOP recommendations.

c. List of additional safety facility and modification system.

The final document shall provided in 5 (five) set hardcopy and one (1) set electronic copy in
CD ROM.

The electronic document shall be delivered in narrative file and PDF file completed with
worksheet and nodes list file.

ABSIV will also provide the software (PHA works) only for the HAZOP Study for the purpose
of recording the findings of the HAZOP Study.

Project Schedule:

Team 1- 2nd May to 12th May 2012

Team 2- 6th May to 19th May 2012

Progress in the HAZOP depends on how familiar those attending are with the design, the
speed and accuracy of the scribe, any ‘contentious’ design/operating issues that have sop far
not been resolved, as well as any hidden agendas attendees bring to the HAZOP. One of the
key roles (and challenges) of the facilitator is to make sure that these issues do not have a
significant impact on the progress of the HAZOP workshop.

An initial draft report of the HAZOP Study report will be issued to TUV Rheinland for review (in
soft copy only) within 3 working days of HAZOP workshop being completed, and the final
report will be issued in soft and five (only) hard copies within five (5) working days of
comments on the draft report being received by ABSIV. Hard copies will be sent out by
courier.
 Note: at least four (4) weeks advance notice is required for any change to the start date/timing
of the HAZOP in order to ensure we can provide a suitable facilitator and scribe for the
required timing.

PROJECT TEAM

Team-1

Dr.Badami-Chairman

Ms.Priya Nair-Scribe

Team-2

Mr.CVC Rao-Chairman

Mr.Proteep Gosh-Scribe

Both of the above-nominated facilitator and Scribe have extensive HAZOP experience with oil
and gas operations, including extensive knowledge of process plants and Refineries.

CVs for the facilitator and scribe proposed are attached.

TUV Rheinland are responsible for providing transport from Jakarta Airport to the hotel where
the HAZOP team would be staying upon arrival, transportation to/from the hotel to the HAZOP
venue each day (if needed), and also transport back to Hotel at the end of the HAZOP.
COMMERCIAL
The lump sum cost for the PROYEK LANGIT BIRU CILACAP Project, as detailed to ABSC in
the preliminary P&ID proved, is as detailed below:

Team-1

Per Man-day Total Cost (in

Sr.
Particulars UOM Cost ( in USD) USD)
No.

1 Chairman Cost 15.5 Man-days 1000 15500

2 Scribe Cost 15.5 Man-days 600 9300

Total Cost –Team-1 24800

Estimated Man-days Break-Up of Chairman & Scribe: Team-1

Travel from India to Jakarta 0.75 day

Data Collection & Preparation 4.00 day
HAZOP Workshop 6.00 days
Travel time back to India 0.75 days
Draft Report 3.00 days
Final Report 1.00 days

Total days 15.5 days

Team-2

Per Man-day Total Cost (in

Sr.
Particulars UOM Cost ( in USD) USD)
No.

1 Chairman Cost 18.5 Man-days 1000 18500

2 Scribe Cost 18.5 Man-days 600 11100

Total Cost of Team-2 29600

Estimated Man-days Break-Up of Chairman & Scribe: Team-2

Travel from India to Jakarta 0.75 day

Data Collection & Preparation 4.00 day
HAZOP Workshop 9.00 days
Travel time back to India 0.75 days
Report 3.00 days
Final Report 1.00 days

Total days 18.5 days

 Total Cost of the Project:

Sr.No. Teams Total Cost in USD

1 Team-1 24800

2 Team-2 29600

Total Cost of the Project 54400

Other terms and Conditions:

This price is based on schedule provided by client.

Client will do the arrangements for travelling i.e. Return Air fare as well as local
transportation within Indonesia, lodging, food expenses.

Any other project related travelling and lodging expenses incurred by team will be
charged at actual.

Should the HAZOP scope not be able to be completed within the allotted days for
the project, additional labour and expense charges may apply at pro rata basis
as per mutual agreement.

This price excludes any and all taxes from India (i.e. service tax @ 12.36% will be
charged as applicable) and/or Indonesia (GST, VAT, with-holding, etc) and
represents the net payment to ABSIV for the work to be undertaken. All taxes
are the responsibility of TUV Rheinland.

This pricing does not include any requirement, which may exist, to pass this work
through an Indonesian PT company. If required, then additional charges will
need to be levied on the above cost, including consideration of any tax
implications (especially with-holding tax) for this method of invoicing.
Payment terms are strictly 30 days maximum. Refer to Appendix II for ABSIV
General Terms and Conditions.

Payment Terms:

1. 30% advance along with the work order

2. 40% after completion of workshop and issue of draft report
3. 30% after submission of final report.
 APPENDIX I

CVs for Facilitators

(Refer to separate files)

 APPENDIX II

ABSIV - General Terms and Conditions

 GENERAL TERMS AND CONDITIONS

INDEPENDENT CONTRACTOR - In performance of the services, hereunder, it is agreed that ABS Industrial
Verification India Pvt. Ltd. (hereinafter “ABSIV”) is and shall be and remain at all times an independent contractor and
that neither ABSIV nor any of its officers, employees, servants, agents or subcontractors shall be or act as the
employee, servant or agent of any other party hereto in its performance of any of the terms and conditions hereof.

ACCESS - The party or parties requesting the services of ABSIV (hereinafter the “Client”) will arrange for ABSIV, its
officers, employees, servants, agents and subcontractors to have access to all plans and specifications necessary to
conduct the contract services and to all places where the materials, equipment, components and parts are being
manufactured, stored, packed, loaded, fabricated or otherwise prepared. It is expressly understood that all plans,
specifications or other documents furnished to ABSIV hereunder are and shall remain the sole property of the Client and
ABSIV shall treat all such material as confidential.

RESPONSIBILITY - ABSIV shall designate its representative(s) to the facilities specified by the Client where items
related to the project are being kept, processed, manufactured, assembled and/or fabricated to examine, inspect, check
and witness tests as specified hereunder and to confirm conformity of completed items with the requirements specified
hereunder.

NOTICES - The Client will arrange to provide ABSIV with sufficient notice of required attendance at the inspection
site.

INSURANCE - ABSIV shall arrange for and at all times maintain adequate insurance for its employees and servants
against any and all accidents, illness, injuries or other occurrences in conformity with any and all Workers’
Compensation statutes or other similar laws. Nothing herein contained shall be deemed to effect or enlarge upon the
rights of any employee, servant, agent or subcontractor of ABSIV.

LIABILITY - The Client or his assignee or successor in interest agrees to defend, indemnify and hold harmless ABSIV
from and against any and all claims, demands, lawsuits or actions for damages, including legal fees to persons and/or
property tangible, intangible or otherwise which may be brought against ABSIV incidental to, arising out of or in
connection with the work to be done, services to be performed or material to be furnished hereunder except for those
claims caused solely and completely by the negligence of ABSIV, its directors, officers, employees, agent or
subcontractors.

Under no circumstances whatsoever shall ABSIV be liable for any injury or damage to any person or property occurring
by reason of any defect in the design, materials, machinery, equipment or other items other than such defects as are
ascertainable by normally accepted inspection and testing standards and only for defects in those items which it is the
responsibility of ABSIV to inspect under the terms specified hereunder. Nothing herein contained shall be deemed to
relieve any seller or manufacturer of its warranties, express or implied.

In the event ABSIV is proven negligent in any respect, the liability of ABSIV, its agents, employees and subcontractors,
for Client’s claims of loss, injury, death or damage, including, without limitation, Client’s claims for contribution and
indemnification with respect to third party claims, shall not exceed: (1) The greater of the total sum of $100,000* or
twice (2 times) the sum actually paid ABSIV for services alleged to be misperformed, deficient or omitted; (2) The
total sum of $1,000,000 for injury, loss or damage caused by negligence, or other causes for which ABSIV has any
legal liability, other than as described in item (1).

* The limit of $100,000 for purposes of item (1) above may be increased up to a limit of $1,000,000 upon
receipt of Client’s written request at or before the time of entering into this Agreement and upon the payment
by Client of an additional fee of 1% of any increase in the limit.

Client shall defend, indemnify and hold ABSIV harmless against any claims in excess of the limits set forth above.

CONSEQUENTIAL DAMAGES - In no event shall either ABSIV or Client be liable for consequential damages,
including without limitation loss of use or loss of profits, incurred by one another or their subsidiaries or successors,
regardless of whether such claim is based upon alleged breach of contract, willful misconduct, or negligent act or
omission, whether professional or nonprofessional of either of them or their employees, agents or subcontractors.

TAXES - In the event that any imposts or taxes shall become due and payable by virtue of the performance of the
services specified hereunder, including any imposition of a value added tax, then the amount of such taxes shall be
added to ABSIV’S invoice and shall be paid by the Client in accordance with the terms specified hereunder.
TERMINATION - Except as otherwise provided herein, this Agreement may be terminated only upon written consent
of both parties, and only upon mutually agreed terms, always providing however, either party hereto may cancel this
Agreement upon thirty (30) days’ written notice to the other.

MODIFICATION - Every modification to this Agreement will be considered valid if issued in writing by the Client and
agreed upon in writing by ABSIV. ABSIV reserves the right to revise prices if modifications affect the cost of the
services specified hereunder.

DISPUTES - ABSIV and the Client will make every effort to settle any dispute amicably. In the event an amicable
resolution is not achieved, any and all differences and disputes of whatsoever nature arising out of this Agreement shall
be put to arbitration in the City of Houston, Texas pursuant to the Rules for Conciliation and Arbitration of the
International Chamber of Commerce, before a board of three arbitrators. Arbitrators shall be selected one person by
the Client, one by ABSIV and the third by the two arbitrators previously selected. The decision of any two of the three
on any point or points shall be final. Until such time as the arbitrators finally close the hearings, either party shall have
the right by written notice served on the arbitrators and on an officer of the other party to specify disputes or differences
under this Agreement for hearing and determination. The arbitration is to be conducted in accordance with such rules
and procedures as may be selected by the arbitrators. The arbitrators may grant any relief other than punitive damages
which they, or a majority of them, deem just and equitable and within the scope of the agreement of the parties,
including, but not limited to, specific performance. Awards made pursuant to this clause may include costs including a
reasonable allowance for attorney’s fees and judgment may be entered upon any award made hereunder in any court
having jurisdiction. Both parties hereby mutually waive any and all claims to punitive damages in any forum.

Client shall be required to notify ABSIV within thirty (30) days of the commencement of any arbitration between it and
third parties which may concern ABSIV’s work in connection with this Agreement and shall afford ABSIV an
opportunity, at ABSIV’s sole option, to participate in the arbitration.

CONTROVERSIES - If upon completion of the services hereunder ABSIV is requested to assist the Client in any
dispute between the Client and its suppliers, the Client will pay ABSIV any and all costs for the time ABSIV spends on
such disputes as additional compensation. ABSIV will assist only in those disputes in which the object of controversy is
the material and/or equipment inspected by ABSIV.

PAYMENTS - For all work in progress, ABSIV will submit invoices to the Client in conformance with this Agreement.
Unless otherwise provided, all fees hereunder shall be payable in United States Dollars at the office of ABSIV Inc. in
Houston, TX and are due and payable within 30 days of the date of invoice. If there should be a dispute over the
invoice amount, the undisputed portion of the invoice shall be paid and an explanation of the dispute shall accompany
payment so that action may be taken to resolve the dispute. In addition, ABSIV shall have the right to annually increase
its costs and/or fees and will provide Client with notice of the same.

Upon default in payment for a period in excess of thirty (30) days from the date of the invoice, the Client shall be
liable for a late charge of one and one-half (1-1/2) percent per month thereafter. Should ABSIV be required to take
any action for the collection of fees hereunder, there shall be added to the invoice amount all costs and expenses of
such action, including reasonable attorneys’ fees and ABSIV may take judgment for the entire amount due.

HIRING PROHIBITION - The Client shall not, at any time or in any manner, nor for any purpose whatsoever, entice,
either directly or indirectly, any person employed by ABSIV or under contract with ABSIV or its subcontractor, or
employ any person who has resigned or has been discharged from the service of ABSIV or its subcontractor until after a
period of not less than twenty-six (26) weeks after the effective date of resignation or discharge of such person.
EXPENSES - Unless otherwise expressly stated in this Agreement, all direct expenses of ABSIV representatives
incidental to the performance of the services specified hereunder, shall be borne by the Client, including, but not limited
to travel, subsistence and lodging, telephone and other expenses.

TRAVEL TIME CHARGE - Unless otherwise provided for in this Agreement, representatives’ travel time will be
charged for at the regular attendance hourly rate.

SCHEDULED COMPLETION - Any fixed or lump sum fee quotations are based on a definite schedule completion
date at the time of the entry into this Agreement. Should this Agreement for services be extended beyond the
anticipated completion date, the Client shall be liable for additional charges in accordance with the then current fees.

ASSIGNMENT - In performance of this Agreement, ABSIV may at its discretion designate one or more sub-contractors
to perform all or any part of its duties hereunder.

DEFAULT - In the event of a default in performance on the part of the Client or in the event of termination, all plans,
drawings, specifications, information and reports or any property of the Client in possession of ABSIV shall be subject
to lien for the payment of all fees and expenses due and owing by virtue of this Agreement, the termination hereof, or
default hereunder and ABSIV will have the right to withhold reports on any projects from the Client.

MULTIPLE AGREEMENTS - When there is more than one Agreement in force at any time between ABSIV and the
Client, all such Agreements shall constitute a service and upon the default in performance of any one of the Agreements
by the Client, ABSIV shall, at its sole discretion, have the right to treat all such Agreements as being in default or to
enforce said Agreement in accordance with the terms thereof and ABSIV will have the right to withhold reports on any
projects for the Client.

ENTIRE AGREEMENT - This Agreement entered into by and between ABSIV and the Client, constitutes the entire
Agreement between the parties. None of the Terms and Conditions contained herein may be added to, modified,
superseded or otherwise altered except by written instrument signed by an authorized representative of ABSIV and the
Client.

TIME BAR TO LEGAL ACTION - Any statutes of limitation notwithstanding, Client expressly agrees that its right to
bring or to assert against ABSIV any and all claims, demands, or proceedings whether in arbitration or otherwise, shall
be waived unless (a) notice is received by ABSIV within ninety (90) days after the Client had notice of or should
reasonably have been expected to have had notice of the basis for such claims; and (b) arbitration or legal proceedings,
if any, based on such claims or demands of whatever nature are commenced within one (1) year of the date of such
notice to ABSIV.

NON-WAIVER - No waiver by either party of any breach of any of the terms of this Agreement shall be construed as a
waiver of any subsequent breach, whether of the same or of any other term thereof. No delay or omission on the part
of ABSIV in exercising any right or remedy under this Agreement, shall impair that right or remedy or operate as or be
taken to be a waiver of it, nor shall any single, partial or defective exercise by ABSIV of any such right or remedy,
preclude any other or further exercise under this Agreement, or that or any other right or remedy. The remedies
provided in this Agreement are cumulative and are not exclusive of any remedies provided by law.

SEVERANCE - If at any time, any of the provisions of this Agreement, is or becomes illegal, invalid or unenforceable,
in any respect under any law or regulation of any jurisdiction, neither the legality, validity and enforceability of the
remaining provisions of this Agreement nor the legality, validity and enforceability of such provisions under the law of
any other jurisdiction, shall be in any way affected or impaired, as a result.

GOVERNING LAW - The validity, interpretation and performance of this Agreement shall be governed by the laws of
the State of New York.

FORCE MAJEURE - Neither party hereto shall be liable to the other for default or delay in performing its obligations
hereunder if such default or delay is caused by fire, strike, riot, war, act of God, delay of carriers, governmental order
or regulations or any other similar or different occurrence beyond the reasonable control of the party so defaulting or
delaying, except that cancellation for such causes may not be made without reimbursement to ABSIV for expenditures
actually incurred for labor and materials upon the authority of this agreement prior to the transmission of such
facsimile, or deposit in the mails of a letter giving such notice PROVIDED ALWAYS that notice of such occurrence is
given within seven (7) days after the occurrence.

GUARANTY - If Client owns fifty percent or more of the stock of another company or fifty percent or more of its own
stock is held by another company, such other companies shall guarantee the liability and payment provisions hereof.