Halliburton Int .Inc., Russia 693012 Yuzhno-Sakhalinsk Ukrainskaya St.37 Tel.

reception +7 4242 453600, fax +7 4242453693

Halliburton Bid Ref: 22-PPS-SAK-25/08/2011

25 August 2011. ENL 3rd floor, 24B, Kommunisticheskliy Ave 693000 Yuznho-Sakhalinsk

For the attention of Jack Renfrow

Proposal to Supply: Nitrogen Purging Services at Oduptu. Client Ref: N/A Halliburton International Limited Sakhalin thanks ENL for the opportunity to quote for the above service and is pleased to present the enclosed proposal for your consideration and evaluation. All prices quoted are in US Dollars and are valid until 25th September 2011 Should you have any questions or require any clarifications to this proposal, please do not hesitate to contact our Operational Manager Alfie Hay +7.914.759.8487 or e-mail alfie.hay@halliburton.com

Yours faithfully, For and on behalf of Halliburton International Limited.

Raymond Patrick Halliburton PPS Engineer raymond.patrick@halliburton.com +79147598472

ENL

Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

Halliburton Budgetary Proposal for

Performance of Nitrogen Purging at Odoptu Facilities

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# 22-PPS-SAK-25/08/2011

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

Table of Contents
1 2 Scope of Work................................ ................................ ................................ ........................... 3 Basis of Tender Technical ................................ ................................ ................................ .....4 2.1 2.2 General ................................ ................................ ................................ .......................... 4 Halliburton Supply................................ ................................ ................................ ........5 2.2.1 Equipment ................................ ................................ ................................ ........5 2.2.2 Personnel................................ ................................ ................................ ..........5 2.2.3 Consumables ................................ ................................ ................................ ....5 Client Supply ................................ ................................ ................................ ................ 6

2.3 3

Basis of Tender Commercial ................................ ................................ ................................ 7 3.1 Estimated Costings ................................ ..................... Error! Bookmark not defined. 3.1.1 Engineering ................................ ................................ ................................ ......7 3.1.2 Mobilisation ................................ ................................ ................................ .....7 3.1.3 Demobilisation ................................ ................................ ................................ .7 3.1.4 Consumables ................................ ................................ ................................ ....8 3.1.5 Equipment... 8 3.1.6 Personnel. 8 Estimated Budget Costs (For ENL budgeting purposes) ................................ ............. 9

3.2 4

Contractual ................................ ................................ ................................ ............................. 10 4.1 Conditions of Offer ................................ ................................ ................................ .....10

Company Information................................ ................................ ................................ ............11 5.1 5.2 About Halliburton ................................ ................................ ................................ .......11 Pipeline and Process Services Provided Globally................................ ....................... 12

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

1 Scope of Work
Halliburton Pipeline and Process Services (HPPS) scope of work is understood as performing Nitrogen Purging Operation at ENL Odoptu Facilities, based on performing 4 purge cycles to reduce the hydrocarbon gas concentration (LEL) to 2% minimum requirement. The Halliburton work scope includes the supply of suitable and certified equipment, instrumentation, hoses, relief systems etc, in adequate numbers and capacities to complete the work in a timely and safe manner. Skilled personnel are to be fielded for the purposes of equipment safe operation.

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

2 Basis of Tender Technical

2.1 General
This proposal is designed to perform the Nitrogen Purging Operation at ENLs Odoptu facility and is based on the following supplied information: 1. 2. 3. 4. 5. 6. System Volume = 170.000 scf Number or Purges at 1 bar cycles = 4. Total Volume = 680.000scf Rate required = 1500 to 2500cfm Max concentration of hydrocarbon gases (LEL) = 2% Operation Commence : 20/09/2011

HPPS propose to dedicate a Multi Skilled Supervisor, experienced in carrying out similar work, to interface with the client and co-ordinate all aspects of the work scope. HPPS will submit a final report upon completion of work scope. The report will contain a detailed log of all activities carried out and contain all necessary charts, data sheets on job report sheets, instrument calibration certificates.

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

2.2 Halliburton Supply 2.2.1 Equipment

Halliburton will supply the following items of equipment:

Item

Qty

Description

1 2 3 4 5 6 7 8 9

1 1 1 1 2 1 1 1 4

Test Cabin 6K Hose Package 6K Fittings Kit Pressure Recorders Pressure Gauges 180K Nitrogen Pump Unit Air Hoses Skid Over Pressure Protection Skid 2000 USG LN2 Storage Tank

2.2.2 Personnel
Halliburton will supply the following experienced personnel to carry out the work based on one 12 hour shift:
Item Qty Position

1 2

1 2

Shift Supervisors (expat) Multi Skilled Technicians

2.2.3 Consumables
Item Qty Unit Description

25

Tonnes

Liquid Nitrogen

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

2.3 Client Supply

Halliburton request that the following services and items of supply are issued free of charge by SEIC or their Client:

Item

Description

1 2 3 4 5 6 7 8 9 10 11 12

Electric Power, 220V, to site cabin Air source minimum 7 bar at 50 meters max distance from the test area Suitable lighting in Equipment Operating Area if Night shift will be required Medical Assistance (if necessary) Site ablution/toilets All passes and permits to allow free entry and departure from site of personnel, vehicles and equipment, including supply tankers Permits to work in the operating area. Cranage/forklifts for offloading, positioning and reloading equipment (Max wt 40 Tones) Safe working areas, including any Gas Testing. Designated person for liaison regarding the works, responsible for coordinating with the Owner/Engineer. Fire and site safety equipment Access to telephone, internet and fax facility for business use

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

3 Basis of Tender Commercial

3.1 Estimated Costing

3.1.1 Engineering
Item Description Cost (US$)

Engineering fee (generation of method statements, site visit, planning, reports etc)

$5000

3.1.2 Mobilisation
Item Description Cost (US$)

1
Item

Mobilisation of Expat Supervisor

Description

$3.300
Cost (US$)

Mobilisation of Russian Operators (2)

$1400

Item

Description

Cost (US$)

1
Item

Mobilisation of 180K Nitrogen Unit from Siberia

Description

$18.000
Cost (US$)

Mobilisation of Equipment from Yuznho

$18.103

3.1.3 Demobilisation
Item Description Cost (US$)

1
Item

De-mobilisation of Expat Supervisor

Description

$3.300
Cost (US$)

1
Item

De-mobilisation of Russian Operators (2)

Description

$1.400
Cost (US$)

1
Item

Demobilisation of 180K Nitrogen Unit to Siberia

Description

$18.000
Cost (US$)

Demobilisation of Equipment from Odoptu

$18.103

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

3.1.4 Consumables
Item Description Cost (US$)

25 Tonnes of Nitrogen.

$ 62.133

3.1.5 Equipment
Item Qty Description Days Day Rate Total Cost

1 2 3 4 5 6 7 8 9

1 1 1 1 2 1 1 1 4

Test Cabin 6K Hose Package 6K Fittings Kit Pressure Recorders Pressure Gauges 180K Nitrogen Pump Unit Air Hoses Skid Over Pressure Protection Skid 2000 USG LN2 Storage Tank

15 15 15 15 15 15 15 15 15

$94 $155 $85 $21 $20 $1,208 $31 $94 $190

$1,406 $2,325 $1,275 $315 $600 $18,113 $469 $1,406 $11,400

Estimated Cost

$37.309

3.1.6 Personnel

Item

Qty

Description

Days

Day Rate

Total Cost

1 2

1 2

Shift Supervisors (Expat) Multi Skilled Technicians

15 15

$1,200 $650

$18,000 $19,498 $37,498

Estimated Cost

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

3.2 Estimated Budget Costs Basis in 15 days

Item Qty Description Total Cost

1 2 3 4 5 6 7 8 9 10

1 1 1 1 1 1 1 1 1 1

Engineering Equipment Personnel 25 Tones of Liquid Nitrogen Personnel Mobilization Personnel Demobilization Mobilization from Siberia Mobilization from Yuznho De-Mobilization from Siberia De-Mobilization from Yuznho Total

$ 5,000.00 $ 37,308.75 $ 37,497.60 $ 62,132.50 $ 4,700.00 $ 4,700.00 $ 18,000.00 $ 18,103.45 $ 18,000.00 $ 18,103.45 $223,545.75

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

4 Contractual
4.1 Conditions of Offer
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

14.

All work will be charged as per Unit Rates quoted in Section 3. All resources are subject to availability at time of the contract award. Mobilisation is based on delivery of equipment, personnel & consumables to site on Client written instruction. Should there be any delays for any reason out with of Halliburtons control the applicable daily rates will apply for equipment and personnel and unit rates for consumables. The proposal has been based on limited information to hand, and should any significant changes to that previously supplied Halliburton reserves the right to review this tender. All charges for equipment are exclusive of VAT which will be invoiced separately. Equipment charges shall apply from the day it leaves Yuzhno and ceases upon its return. All Partial days shall be charged as full days. Customer or its appointed Contractor is responsible for supplying equipment to move Halliburton equipment at work location at no cost to Halliburton. Customer should provide three days notification to Halliburton prior to any equipment mobilization or demobilization. If any delays are incurred due to the availability of crane operations or weather conditions the standby rates will apply. Halliburton will load 25 Tonnes of Liquid Nitrogen in Russia Mainland all transportation loses due to evaporation, will be assumed by ENL. Halliburton have organized logistics to carry out the operation starting from 20th of September 2011 provided the official confirmation (PO, Letter of Intent, etc) is received by Halliburton from ENL no later than 26th of August. Should operation be cancelled and mobilization has been in progress, mobilization charges will be invoiced to ENL.

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

5 Company Information
5.1 About Halliburton
y Halliburton has been providing Process and Pre-commissioning services in the Middle East for over 30 years. y Halliburton has a strong track record in providing controlled bolting, video inspection, cleaning, chemical cleaning, oil cleanliness and N2 / He leak testing services to the oil and gas, process industries. y Halliburton is the Market Leader in the Pre-commissioning, Commissioning, Chemical Cleaning and Decommissioning Industry Worldwide.

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Nitrogen Purging at Odoptu facility.

Services Client Tender # 22-PPS-SAK-25/08/2011

5.2 Pipeline and Process Services Provided Globally

2007 Halliburton. All Rights Reserved.

In the Middle East, Halliburton Pipeline and Process Services have offices and yards in the United Arab Emirates, Qatar, and Saudi Arabia but have carried out the above mentioned services in most of the Middle East countries with the support of our many oilfield camps which are located through-out the region. Furthermore, HPPS operates worldwide including the USA, Gulf of Mexico, United Kingdom, The Netherlands, Norway, Asia Pacific, Venezuela, Brazil, Australia, Egypt, West Africa and Azerbaijan.

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