WE PROVIDE QUALITY SERVICES

COMMERCIAL & TECHNICAL PROPOSAL

FOR

FLANGE MANAGEMENT - BOLTING SERVICES

 WE PROVIDE QUALITY SERVICES

Contents

1 Company Introduction ...................................................................................... 4

2 Basis of Proposal ............................................................................................. 10
2.1 Contacts Details .............................................................................................. 10
2.2 Scope of Work ................................................................................................. 10
2.3 Scope of Supply............................................................................................... 11
2.3.1 PT ASPAC Scope of Supply ............................................................................. 11
2.3.2 Client Scope of Supply .................................................................................... 11
2.4 Project Schedule ............................................................................................. 11
3 Technical Proposal .......................................................................................... 13
3.1 Torque Tightening (Hand & Hydraulic) For Bolting & Flange Management . 13
3.2 Joint Inspection Certificate ............................................................................ 16
3.3 Joint Completion Certificate ........................................................................... 17
3.4 Project Reference List..................................................................................... 18
4 Commercial Proposal ...................................................................................... 20
4.1 Cost Commercial Overview for Flange Management (Bolt Tightening)
Services .......................................................................................................... 21
4.2 Definition of Rates: ......................................................................................... 22
5 PT ASPAC QHSE Policy Statement ................................................................. 25
6 Acceptance ...................................................................................................... 31

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SECTION 1

COMPANY INTRODUCTION

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1 Company Introduction

PT ASPAC – Pipeline Nitrogen Services is one of the leading service providers in all
aspects of the pipeline and process services from pre-commissioning through
commissioning to de-commissioning using the latest developments and state of the art
equipment.
PT ASPAC head office is located in the Emmen (Netherlands) and has subsidiaries in
Germany, United Kingdom, Italy, France, Libya, Singapore, Indonesia, Saudi Arabia and
Russia.

PT ASPAC - Pipeline Nitrogen Services Company was formed offering all specialized
services to the pipeline and process industry, specialized services included; Inspections,
cleaning, (pre-) commissioning and Abandonment of Pipelines and Process plants.

PT ASIA PASIFIC Engineering & Construction, from where all operational activities will be
coordinated including the activities that are managed by the individual subsidiaries, is
strategically based in Singapore. Established in 2007, as Duplex Energy, the company has
gone from strength to strength since our inception. Inspired by our core values; “We
Believe in Quality Services” means as a client, you will receive exceptional services from a
dedicated team who have decades of combined industry experience. As well as having a
global presence, with contracts awarded worldwide, we also pride ourselves in having an
operation which remains communicative, well managed and can deal responsively to the
potential for change, a requirement that our clients often demand. Unlike most of our larger
competition, profitability is not our only interest. Our personnel commit to a project and
make it work following our high standards in procedure, construction, risk management and
follow through into project execution.

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SECTION 2

BASIC OF PROPOSAL

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2 Basis of Proposal

Introduction

PT. ASIA PACIFIC Engineering & Construction (TRANSERVE International Group)

has identified a requirement for PNS to conduct Flange Management (Bolt Tightening)
Services for RTN FPSO _CARIGALI PETRONAS Project at BUKIT TUA II, MADURA -
EAST JAVA, Indonesia.

The purpose of this document is to describe the scope of work, schedule duration and work
force requirements for this project.

2.1 Contacts Details

TRANSERVE International Group

PT. ASIA PACIFIC Engineering & Construction

Operational Address : Jl. Jend Sudirman Komplek "KARA" Junction Blok A 10-11
BatamCentre 29432 Batam - Indonesia

Tel: +62 778478731

Fax: +62 778478931
Email: aspacengineering@transervegroup.com

2.2 Scope of Work

PT ASIA PACIFIC Engineering & Construction is pleased to submit our

proposal to perform the services as follows;

To perform the Flange Management (Bolt Tightening) Services for RTN FPSO _CARIGALI
PETRONAS Project.

Total number of joints: 212 Joints

Estimated time to complete the project: 25 days
Crew composition: Supervisor (1pax), Technician (2pax)
Working Hours: 12hours per day

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2.3 Scope of Supply

2.3.1 PT ASPAC Scope of Supply

Project Management
 Supply of experienced project supervisors to be responsible for ensuring the scope
of work is carried out in a safe professional manner.
 Planning, supervision and execution of the scope of work in conjunction with the
client.
 Recording and reporting progress daily/weekly as required by the client.
 Financial/commercial reporting as required by client
 Compiling detailed records of scope of work completed and issuing certification for
all work completed & us ensuring complete traceability.
 Preparation of an overall project schedule based on an estimated duration for the
completion of each test.
 Identification of all torque values for the tightening of the joints.
 Issue of flange make up check sheet for all joints.
 Compile a Flange Register recoding all joints to be tightened.
 Issue Certification.
 Supply of all necessary calibrated equipment / tools to carry out the scope of work.
 Supply of project technicians for test preparation and test execution.

2.3.2 Client Scope of Supply

 Clean, safe and secure accommodation in site.

 Bolts / Nuts / Gaskets
 Cranes / Forklifts / Scaffold if required
 Water, Diesel & Adequate lighting
 Instrument and electrical Technician for system preparation (if required)
 Riggers / Pipe-Fitters
 Certified Rigging Equipment
 Emergency medical evacuation / medical support
 Communication access (fax / phone / e-mail)
 Organisation of Client mandatory courses for site access

2.4 Project Schedule

The start date of this project is estimated around Middle of July-2016; however the final
start date may vary since there are a large amount of potential variables that could impact
on the schedule at this stage.

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SECTION 3

TECHNICAL PROPOSAL

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3 Technical Proposal

3.1 Torque Tightening (Hand & Hydraulic) For Bolting & Flange Management

- This is the most widely used/recognized form of tightening. This is due to the diverse
range of tooling available which enables accurate tightening of awkward and
straightforward flanges alike and requires no specialist bolting (e.g. longer studs as
required with Tensioning).

- By utilizing the elastic properties of the bolting materials, gasket manufacturers seating
stresses, and lubricant specific coefficient of friction, we can calculate and apply the
correct torque to achieve the desired bolt load to guarantee a long term leak free joint.

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Flange Management Typical Work Flow Chart

Joint Integrity / Flange Management – Temporary Tag

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A dedicated onsite team managing all bolting works and compiling all data on mechanical
joints. The team consists of the following personnel depending on the size and
requirements of the Project:-
1) Project Manager / Project Coordinator.
2) Bolting Engineer.
3) Site Bolting Inspectors.
4) QA/QC’s.
5) FM administrator.
Documents populated include but are not limited to the following:-
1) Joint Completion Matrix – comprehensive traceable detailed data for all joints.
2) Generating unique joint numbers based on MTO and Iso Metric Drawings.
3) JIR – Joint Inspection Report (see attached)
4) JCC – Joint Completion Certificate. (see attached)
Software – SPX Flange Pro
Recommended Torque Value will be based on the above software after all datas has
been keyed in.

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3.2 Joint Inspection Certificate

At satisfactory completion on of each joint, PNS will issue a Certificate.

The certificate will contain all required information, related to this particular joint.

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3.3 Joint Completion Certificate

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3.4 Project Reference List

Onshore/
Year Country Client Service Description
Offshore
2010 Indonesia PT BAKRIE Construction Offshore N2/ Helium Leak Testing & Flange Management Hess Ujung Pangkah Development Offshore Phase II Project
2011 Singapore Single Buoy Moorings Inc. Onshore N2/ Helium Leak Testing & Flange Management Aseng FPSO Project

2011 Indonesia PT Tima Suplindo Engineering & Construction Offshore N2/ Helium Leak Testing & Flange Management Premier Oil Anoa Phase 4 Compression Reconfiguration

2013 Malaysia Turcomp Engineering Services Sdn. Bhd Offshore N2/ Helium Leak Testing & Flange Management Kikeh FPSO at Labuan Project

2013 Malaysia Turcomp Engineering Services Sdn. Bhd Onshore N2/ Helium Leak Testing & Flange Management Kikeh FPSO at Lumut Project
2015 Indonesia Global Process System Pte Ltd Onshore Flange Management Varanus Island Compressor Project (B827)

2010 ABU DHABI Single Buoy Moorings Inc. Offshore Bolt Tightening Services Encana Topside Platform Project
2014 Indonesia United Global Force Pte Ltd Onshore Bolt Tightening Services Batam GPS Yard project
2015 Indonesia Global Process System Pte Ltd Onshore Bolt Tightening Services TEN Development Project: FPSO Package
2013 Singapore Single Buoy Moorings Inc. Onshore Flange Management & Bolt Tightening Services OSX2 FPSO Project

2013 Indonesia PT.Heat Exchangers Onshore Flange Management & Bolt Tightening Services SPRC Plant 16 Project
2013 Singapore Bumiarmada Onshore Flange Management & Bolt Tightening Services Armada Claire FPSO

2016 Indonesia VME Process Asia Pacific Onshore Flange Management & Bolt Tightening Services Ghana OCTP Development Project

2013 Singapore Reliant Oilfield Products Pte Ltd Onshore Flange Management & Flange Testing Services 5K API Flange Testing Project

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SECTION 4

COMMERCIAL PROPOSAL

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4 Commercial Proposal

Scopes of work is limited to the work located at BUKIT TUA II, MADURA -East Java,
Indonesia.
Should additional work be required, PT ASPAC reserve the right to re-quote the work
based on the cost of operations in another region.
Commercial proposal does not include the following:

- Tenderer will not supply any other forms of consumables not stipulated in this
proposal
- The Customer shall supply free issue for the duration of the works: safe access, bolts,
and nuts, gaskets, compressed air supply 7 barg 150cfm, water supply & disposal
facilities, electrical supply and site welfare facilities.

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4.2 Definition of Rates:

1. Equipment and Personnel rates apply from the date of departure from PT ASPAC
Base until the date of return to ASPAC base.
2. Day Rates will be charged for a 24 hour period, from midnight to midnight, or part
thereof, where PT ASPAC personnel and/or equipment are on site.
3. Equipment Standby rates are defined as when the equipment is in transit from the
base to the client site (or vice versa) where this occurrence takes more than a 24
hour period, defined as midnight to midnight, and where no PT ASPAC personnel
are in attendance.
4. Equipment Operational rates are defined as any 24 hour period, midnight to midnight,
or part thereof, where PT ASPAC personnel are in attendance on site.
5. PT ASPAC Personnel day rates are based on a 12 hours working day, inclusive of
meals and break times. Hours worked in excess of the basic hours must be
authorised by a nominated client representative before commencement of work.
All hours worked in excess of this will be recharged on a pro-rata basis, as per
formula; (Day Rate/12) x 1.5 x number of additional hours or part thereof.

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Personnel:

1. Final Crew composition will be determined based on actual operational

requirements (12 hours operation, 24 hours operation, etc.)
2. The client will be responsible for securing VISAS or Work Permits for PT ASPAC
staff if applicable at their sole cost.
3. PT ASPAC reserve the right to reassign staff duties within a project, in-line with
project personnel allocations as stipulated in the contract.

Equipment:

1. Any item lost in transit, or damaged beyond repair shall be recharged at full
replacement value, documented cost +15%
2. All consumables will be charged for as delivered to site
3. Mobilisation/demobilisation pricing is subject to market rates at the date of
deployment. PT ASPAC reserve the right to amend pricing accordingly in
consultation with the client

Payment Details:

1. Personnel & Equipment day rates and consumable usage will be based on daily
time sheet signed by the Client Representative and charges apply accordingly.
2. Personnel, equipment and consumable costs will be invoiced monthly and
preliminaries will be invoiced on completion of the activity at month end.
3. Payment terms are 30 days after receipt of original invoice. PT ASPAC shall be
entitled to charge monthly interest at an annual rate equal prime rate for the United
States of America then quoted in the money section of the New York edition of the
Wall Street Journal plus 2%.
4. Customer shall pay Contractor the invoiced amount within 45 days of the invoice
date. In the event of a legitimate dispute, Customer shall inform Contractor within
20 days of receiving the invoice that there is a dispute relative to that specific
invoice. Customer shall pay Contractor the undisputed amount within the above
stated time limit, and shall provide Contractor with substantiation in writing of the
disputed portion. Both Parties shall negotiate in good faith to resolve the disputed
portion.
Any invoices not disputed by Customer within the 20 days period, must be paid in
full within the above stated time limit of 30 days.

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SECTION 5

PT ASPAC QHSE

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5 PT ASPAC QHSE Policy Statement

The QHSE policy of Well Services BV, together with its subsidiary companies Coil
Services, PT ASPAC and Slickline, is – within the framework of legal obligations and
company regulations – aimed at providing services to the agreed requirements and
specifications of its customers in the best possible way to assure continuous customer
satisfaction.
The management of PT ASPAC hereby declares that with the preparation, development
and execution of the general company policy, it has taken the following considerations
with regard to Health, Safety, Environment and Quality assurance into account:

• Comply with all applicable laws and regulations

• Make available provisions necessary for setting up, implementing, maintaining and
continuously improving the management system
• Establish standards, in consultation with clients, suppliers and external specialists, with
regard to safety and environmental requirements
• Assign (financial) resources and trained personnel for execution of procedures and
verification activities such as internal and external audits
• Involve employees and inform them about the objectives and resources for health,
safety, environmental and quality management
• Deal with and assess health, safety, environmental and quality issues on an equal
footing with financial, economic, social, technical and commercial decisions
• Ensure a competent workforce
• Create a work environment in which we prevent personal injuries as well as material
and environmental damage
• Make provisions to limit any damage to the environment in the event of accidents and
incidents
• Ensure the safety of third parties
• In consultation with specialists, provide suitable work for personnel returning to work
after an accident or long-term absence
• Review the policy at least annually and adjust it as a result of internal and/or external
developments whenever necessary

Management and staff have a wealth of experience in upstream, midstream and

downstream pipeline and process services all having worked for various service
companies. They therefore contribute years of knowledge about job preparation, job
execution, safety and quality. We rely on good staff. All our employees are dedicated,
trained and retrained according to our Safety and Quality Management System.

Besides executing a pre-job and post-job meeting after every job, regular brainstorm
sessions are held with all personnel in order to find out where we can improve on
preparation, safety, training, equipment, design and organizational performance. By doing
this we are collecting all (operational) knowledge and experience and this is shared with all
other operations within our company and obviously our clients. A structured way of
collecting lessons learned, but also by the creation of a platform, where these lessons are
learned (out of other jobs and/or other branches), this is shared with the operational staff.

Our people are highly motivated and committed to respond quickly to customer
requirements without compromising safety. The versatile staffs are able to work in a wide
range of disciplines. Demonstrating why our company group is the best choice in selecting
a service provider.

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Organizations in the Oil and Gas sector are realigning on good people in the field to meet
their core business objectives. It’s a truism that the best asset that most organizations
have are their people. At PT ASPAC, COIL and Slickline we fully understand above
situation and have setup an extensive training program for Process, Pipeline and Well
services.
This training programme is for new employees who just joint this industry but also for our
existing staff to strengthen their knowledge and expertise. It is not only theory practice in a
classroom but real hands-on at our in-house test-loop facility. This test-loop is not only for
internal use. We believe it is important that our business partners can fully understand and
discuss problems and solutions with us on a high quality level. Therefore we also invite our
customers and partners to register for a practical training course.
The following appendices highlight how PT ASPAC operates to ISO standards and
is a partner in the bizSafe Safety program.

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APPENDIX 1
PT ASPAC’s Quality Management System (QMS) had been accredited to be in full
compliance to ISO 9001:2008 for Provision of Pressure Testing and Bolts Tightening
Services.

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APPENDIX 2

PT ASPAC's Environmental Management System had been accredited to be in full

compliance to ISO 14001:2004 for Provision of Pressure Testing including the use of
nitrogen and Bolts Tightening Services.

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APPENDIX 3

PT ASPAC’s Occupational Health and Safety Management System had been accredited to
be in full compliance to BS OHSAS 18001:2007 and SS506 Part 1:2009 for Provision of
Pressure Testing including the use of nitrogen and Bolts Tightening Services.

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APPENDIX 4
PT ASPAC’s Health, Safety and Environmental Management System (HSEs) had been
accredited to be in full compliance to bizSAFE.

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6 Acceptance

Both parties have agreed to the above proposal and conditions:

For PT ASIA PACIFIC Engineering & For PT. M3KS

Construction (TRANSERVE
International Group)
Signature Signature

Name William HIOE Name

Title Business Development Director Title

Date 04 July 2016 Date

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