Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

COMP3 - NFPS OFFSHORE RISER/WELLHEAD PLATFORM & INTRAFIELD PIPELINES PROJECT

COMPANY Contract No.: LTC/C/NFP/5129/20 CONTRACTOR Project No.: 033764

ASSET

: NFPS

Document Title

: PROJECT QUALITY PLAN

COMPANY Document No.

: COMP3-SPM-QM-PLN-00001

CONTRACTOR Document No.

:

033764-Z-Z-00-SPM-QA-P-10001

Discipline

: QUALITY MANAGEMENT

Document Type

: PLAN

Document Category/Class

:

1

Document Classification

:

Internal

A

18-OCT-2024

Issued for Review

L.Ciccarelli

C.Chiappini

F.Eterno

REV.

DATE

DESCRIPTION OF REVISION

PREPARED BY

REVIEWED BY

APPROVED BY

Saipem S.p.A

www.saipem.com

THIS DOCUMENT IS PROPERTY OF QatarEnergy LNG. THIS DRAWING OR MATERIAL DESCRIBED THEREON MAY NOT BE COPIED OR DISCLOSED IN ANY FORM OR MEDIUM TO THIRD PARTIES, OR USED FOR OTHER THAN THE PURPOSE FOR WHICH IT HAS BEEN

PROVIDED, IN WHOLE OR IN PART IN ANY MANNER EXCEPT AS EXPRESSLY PERMITTED BY QatarEnergy LNG.

COMP3-SPM-QM-PLN-00001_A

Page 1 of 56

Luca CiccarelliDigitally signed by Luca Ciccarelli DN: cn=Luca Ciccarelli, email=luca.ciccarelli@saipem.com, c=US Date: 2024.10.24 13:17:39 +02’00’

Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

COMP3 - NFPS OFFSHORE RISER/WELLHEAD PLATFORM & INTRAFIELD PIPELINES PROJECT

PROJECT QUALITY PLAN

REVISION HISTORY

Revision

Date of Revision

Revision Description

A1

A

01-OCT-2024

18-OCT-2024

Issued for Inter-Discipline Check

Issued for Review

HOLDS LIST

Hold No

Hold Description

nil

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TABLE OF CONTENTS

6.1.2.1 6.1.2.2

6.1.1.1 6.1.1.2

1

2

3

INTRODUCTION …6 1.1 PROJECT OBJECTIVE …6 1.2 PROJECT SCOPE …6 DEFINITIONS AND ABBREVIATIONS …9 2.1 DEFINITIONS …9 2.2 ABBREVIATIONS …9 REFERENCE, RULES, CODES AND STANDARDS … 11 3.1 COMPANY REFERENCES … 11 3.2 PROJECT DOCUMENTS … 12 3.3 STANDARDS … 13 PURPOSE … 13 AREA OF APPLICATION … 13

4 5 6 PROJECT QUALITY MANAGEMENT SYSTEM (COMMON FOR HOME OFFICE AND SITE OFFICE) … 14 6.1 MANAGEMENT RESPONSIBILITIES … 14 6.1.1 COMPANY FOCUS & QUALITY MANAGEMENT REPORTING … 14 COMPANY focus … 14 Quality Management System Reporting … 14 6.1.2 PROJECT QUALITY POLICY & OBJECTIVES … 15 PROJECT Quality Policy … 15 Objectives … 15 6.1.3 PROJECT ORGANIZATION … 16 Quality Organization Chart … 17 Functions & Responsibilities … 17 6.1.4 PROJECT QUALITY MANAGEMENT REVIEW (P-QMR) … 23 General… 23 6.1.5 QUALITY MANAGEMENT SYSTEM … 24 Quality Management System Processes Interface … 24 6.2 CONTRACT REVIEW … 27 6.2.1 REVIEW … 27 6.2.2 AMENDMENT TO THE CONTRACT … 28 6.2.3 RISK ASSESSMENT, MANAGEMENT & CONTINGENCY PLANNING FOR ENGINEERING, PROCUREMENT, MANUFACTURING, FABRICATION & OUTSOURCING … 28 6.3 PROJECT QUALITY AUDITS … 29 6.4 CONTROL OF NON-CONFORMING PROCESS/PRODUCT (CORRECTIVE ACTION) … 29 6.5 CONTROL OF POTENTIAL NON-CONFORMING PROCESS (PREVENTIVE ACTION) … 29 6.6 CONTROL OF PROJECT DOCUMENTS … 29 6.7 TRAINING & HUMAN RESOURCES … 30 6.7.1 TRAINING IN HOME OFFICE … 30 6.7.2 TRAINING IN SITE OFFICE … 30 6.7.3 PERSONNEL SELECTION, COMPETENCY MEASURES & PERFORMANCE EVALUATION … 30 6.8 CONTROL OF TESTING, MEASURING & MONITORING EQUIPMENT FOR PRODUCT CONFORMITY … 31 DESIGN & ENGINEERING … 31 7.1 GENERAL … 31 7.2 DESIGN PLAN … 32

6.1.3.1 6.1.3.2

6.1.5.1

6.1.4.1

7

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7.2.1 ORGANIZATIONAL AND TECHNICAL INTERFACES … 32 7.3 DESIGN INPUTS … 32 7.4 DESIGN OUTPUTS … 33 7.5 DESIGN REVIEW … 33 7.6 DESIGN VERIFICATION … 33 7.7 DESIGN VALIDATION … 34 7.8 DESIGN CHANGES … 34 7.8.1 TECHINCAL QUERY (TQ) OR SITE QUERY (SQ) … 34 7.8.2 SPECIFICATION DEVIATION REQUEST (SDR) … 35 7.9 PROCESSES REQUIRING VALIDATION … 35 7.10 DOCUMENTS & DATA CONTROL … 35 GENERAL … 35 7.10.1 CONTROL OF DOCUMENTED INFORMATION … 36 7.10.2 7.10.2.1 General… 36 7.10.2.2 Creating and updating … 37 7.10.2.3 Control of documented information … 37 PROCUREMENT … 39 8.1 GENERAL … 39 8.2 OUTSOURCED PROCESSES … 40 8.3 QUALIFICATION & EVALUATION OF VENDORS (CRITICAL VENDORS) … 40 8.3.1 CRITICAL VENDORS MONITORING & CONTROL … 41 8.4 VENDOR’S RE-EVALUATION … 42 8.5 PURCHASING DATA … 42 8.6 VERIFICATION OF OURCHASED PRODUCTS … 43 8.7 PROCUREMENT QUALITY RECORDS … 44 8.8 CONTROL OF COMPANY ASSIGNED ITEMS… 44 8.9 PRODUCT IDENTIFICATION & TRACEABILITY … 45 8.10 PACKAGING, PRESERVATION AND DELIVERY … 45 CONSTRUCTION / FABRICATION / INSTALLATION … 45 9.1 GENERAL … 45 9.2 CONSTRUCTION / FABRICATION / INSTALLATION PLANNING … 46 9.3 CONSTRUCTION / FABRICATION / INSTALLATION REQUISITION … 46 9.4 SELECTION OF SUBCONTRACTORS … 47 9.5 CONSTRUCTION / FABRICATION / INSTALLATION CONTROL … 47 9.6 WELDING CONTROL … 48 9.7 INSPECTION & TEST AT SITE … 50 9.7.1 RECEIVING INSPECTIONS FOR EQUIPMENT & MATERIALS … 50 9.7.2 RECEIVING CUSTOMER-SUPPLIED PRODUCTS AT SITE … 50 9.7.3 FIELD INSPECTION & TESTING … 50 Quality Control Team during Fabrication/Construction (including Sub-Contractors) … 51 Quality Control Team during Installation (On-Board Vessels) … 51 9.7.4 EQUIPMENT FOR INSPECTION, MEASURING & TESTING … 51 9.7.5 FINAL INSPECTION AND TESTING … 52 9.7.6 INSPECTION & TEST RECORDS … 52 9.7.7 QUALITY WALKS … 53 9.8 PRE-MECHANICAL COMPLETION … 53 9.9 CONTROL OF NON-CONFORMING PRODUCTS … 53 9.10 HANDLING, WAREHOUSING, PRESERVATION … 53 HANDLING … 53 9.10.1 WAREHOUSING … 54 9.10.2 PRESERVATION … 54 9.10.3 QUALITY METRICS … 54 CONTINUOUS IMPROVEMENT PROCESSES & TOOLS … 54

9.7.3.1 9.7.3.2

8

9

10 11

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APPENDICES Appendix 1

Project Quality Policy

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1

INTRODUCTION

The North Field is the world’s largest natural gas field and accounts for nearly all the State of Qatar’s gas production. The principal objective of the NFPS projects is to sustain plateau from existing QatarEnergy LNG Operation – S1, S2, S3, N1 and N2 , production areas by implementing an integrated and optimum investment program consisting of subsurface development, pressure drop reduction steps and compression.

NFPS projects comprise 3 main investment programs:

1. Investment #1: Drilling and Associated Facilities [WHP12S/ WHP13S/ WHP14S/

WHP12N/ WHP13N]

2. Investment #2: Trunk line Looping and Intra-field pipeline looping [32” PL1LN, 32”

PL1LS, 38”PL610LS]

3. Investment #3: Compression Complexes and associated facilities [Phase 1 CP6S & CP7S;

Phase 2: CP8S & CP4N; Phase 3: CP4S & CP6N Phase 4: CP1S & CP1N]

Drilling and Looping, Investments #1 and #2, projects are in execution phase and are being executed as I1P1, EPCOL Projects except for WHP13N, which will be part of NFPS Compression Projects execution which compromises total up to 9 COMPs.

1.1 Project Objective

The objective of this Project includes:

• Achieve standards of global excellence in Safety, Health, Environment, Security and

Quality performance.

• Sustain the Qatarenergy LNG North Field Production Plateau by installing new RPs and one WHPs to support new Compression Complex facilities CP6S & CP7S and pre- installed facilities for future Compression Complex facilities including but not limited to CP4N & CP8S tie-in with integration to the existing facilities under Investment #3 program.

• Facility development shall be safe, high quality, reliable, maintainable, accessible,

operable, and efficient throughout their required life.

1.2 Project Scope

The Project Scope includes detailed engineering, procurement, construction, brownfield modifications, transportation & installation, hook-up and commissioning, tie-in to EXISTING PROPERTY and provide support for start-up activities of the following facilities and provisions for future development. The WORK shall be following the specified regulations, codes, specifications and standards, achieves the specified performance, and is safe and fit‐for‐purpose in all respects.

Facilities - 1A

• RP5S RP with 2 x 28” CRA clad pipelines to RP7S and 2 subsea composite Cables and

associated J tubes from RP7S to RP5S & from CP7S to WHP13S.

• New Fuel Gas 8” CRA Spur-lines and flanged risers from Subsea skid to RP7S

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• Hook-up and brownfield modification at WHP5S/RP5S bridge connection & WHP13S/CP7S Composite cable tie-in and E&I integration including RGA Control modification

• Pipeline decommissioning of 28” CS PL5S including associated demolition work at

WHP5S

Facilities - 2A

• RP6N RP with 1x28” CRA clad pipeline to WHP13N, 2 Subsea composite cables and

associated J tubes from WHP12N to RP4N and RP6N to WHP13N. • New fuel gas spur-line and flanged riser from subsea skid to RP6N • WHP13N Topside • Hook-up and brownfield modification at WHP6N/RP6N, RP4N- HPU-Umbilical and tie-in, WHP12N-new J tube installation, E&I migration, WHP6N/RP4N/WHP4N-E&I migration (Pre-CP4N), WHP13N and RP6N interconnection to NFB.

Facilities - 3A

• RP9S RP with 1x28” CRA clad pipeline to RP4S, • Hook-up and brownfield modification at RP4S/WHP9S, Modifications to integrate RP9S to

the RGA control network.

• Pipeline decommissioning of 28” CS PL9 to WYE on existing 38” trunkline PL48 including

associated demolition work at WHP9S.

Facilities - 1B

• New fuel gas spur-line and flanged riser from subsea skid to RP4N • Fiber Optic Cable from RP6N to onshore LFP East, RP6N to RP4N and RP6N to LQ6S. • Hook-up and brownfield modification at RP6N Composite and FO Tie-ins NFB-PU Power & Control modifications, LQ6S/LFP (East)/BVS (East)- FO Tie-in Controls/Telecoms Integration

Facilities - 2B

• RP5N RP with 2 x 28” CRA clad pipelines to RP4N, 1 x 28” CRA clad pipeline to RP6N and 2 subsea composite Cables and associated J tubes from WHP12N to RP5N & from RP6N to RP5N.

• Hook-up and brownfield modification at WHP5N- RP5N Bridge connection, WHP12N Composite cable tie-in, RP4N Intrafield pipeline Hook up PL54 N/LN and E&I integration including NFB-PU Power & Control modifications

• Pipeline decommissioning of 2 x 16” PL56/PL54 Subsea Spur line from WHP5N to

reducing barred tee in subsea tie-in skid on PL6 / PL4.

Facilities - 3B

• 2 subsea composite Cables from RP4S to RP9S & from RP4S to WHP12S (with J-tube) • New Fuel Gas 8” CRA Spur-lines and flanged risers from Subsea skid to RP4S • Hook-up and brownfield modification at WHP12S/ RP9S/ RP4S Composite cable tie-in,

Spurline riser installation at RP4S RGA Power & Control modifications.

Facilities - 4B

• 2 subsea composite Cables from CP8S to RP11S & from RP8S to RP11S (with J-tube),

FO Cable from RT2 to Barzan WHP1.

• New Fuel Gas 8” CRA Spur-lines and flanged risers from Subsea skid to RT2.

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• Hook-up and brownfield modification at WHP8S/ WHP11S for Test separator Internal Upgrade and MEG system modification, Spur lines, Power & Control Tie-ins on RP8S, RP11S/WHP11S-Tie-in (Power and Control), RGA Power & Control modifications.

Facilities - 5B

• 2 subsea composite Cables from RT2 to WHP3S & from RT2 to WHP2S (with J-tube) • New Fuel Gas 8” CRA Spur-lines and flanged risers from Subsea skid to RP8S • Hook-up and brownfield modification at BRZ-WHP1 – FO cable tie-in, WHP2S/ WHP3S/ RT&RT2 Composite cable tie-in and associated modification, RGA Power & Control modifications.

Facilities - 6B

• RP3S RP with 1x24” CRA clad pipeline to RT2 with Stalk on risers, • Hook-up and brownfield modification at RT2 for 24” Intrafield pipeline and Composite/FO cable Hook-up, WHP3S for Production diversion and Utilities, Power and ICSS Hook-up, WHP2S for Composite Cable Tie-ins and Power & Control Integration RGA Power & Control modifications.

• Decommissioning at topside existing and In-situ abandonment of existing Topside/subsea

Composite Cables RT-WHP2S, RT-WHP3S, Topside/Subsea FO cable RT-BRXWHP1.

Figure 1.2.1: NFPS Compression Project COMP3 Scope

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2 DEFINITIONS AND ABBREVIATIONS

2.1 Definitions

Definition

Description

COMPANY

QatarEnergy LNG.

CONTRACTOR

Saipem S.p.A.

DELIVERABLES

FACILITIES

MILESTONE

PROJECT

SITE

All products (drawings, equipment, services) which must be submitted by CONTRACTOR to COMPANY at times specified in the contract. All machinery, apparatus, materials, articles, components, systems and items of all kinds to be designed, engineered, procured, manufactured, constructed, supplied, tested and permanently installed by CONTRACTOR at SITE in connection with the NFPS Project as further described in Exhibit 6.

fabricated,

A reference event splitting a PROJECT activity for progress measurement purpose.

COMP3 - NFPS Offshore Riser/Wellhead Platform & Intrafield Pipelines Project

(i) any area where Engineering, Procurement, Fabrication of the the CPS6S and CP7s Compression FACILITIES related Complexes are being carried out and (ii) the area offshore required for installation of the FACILITIES in the State of Qatar..

to

SUBCONTRACT

Contract signed by SUBCONTRACTOR and CONTRACTOR for the performance of a certain portion of the WORK within the Project.

SUBCONTRACTOR

Any organization selected and awarded by CONTRACTOR to supply a certain Project materials or equipment or whom a part of the WORK has been Subcontracted.

WORK

Refer to article 2 of CONTRACT AGREEMENT.

WORK PACKAGE

The lowest manageable and convenient level in each WBS subdivision.

2.2 Abbreviations

Code

Definition

CAR

CM

Corrective Action Request

Construction Manager

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Contract Manager

Corrosion Resistant Alloys

Document Controller

Document Distribution Matrix

Electronic Document Management System

Engineering, Procurement, Construction

HSE Manager

Interdisciplinary Check

Installation Manager

Inspection and Test Plan

Management of Change

Monthly Quality Report

Non-Conformity

Preventive Action

PROJECT Control Manager

PROJECT Director

PROJECT Engineering Manager

PROJECT Execution Plan

PROJECT Fabrication Manager

PROJECT Manager

PROJECT Onshore Construction Manager

PROJECT Operations Manager

PROJECT Procurement Plan

PROJECT Procurement Manager

PROJECT Quality Manager

PROJECT Quality Management System

PROJECT Quality Plan (the present document)

PROJECT Material Manager

CONM

CRA

DC

DDM

EDMS

EPC

HSEM

IDC

IM

ITP

MOC

MQR

NC

PA

PCM

PD

PEM

PEP

PFM

PM

POCM

POM

PPRP

PPRM

PQM

PQMS

PQP

PMM

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PQT

PR

PO

PSL

PTS

PTSC

PVA

QCM

QCMP

QCP

QLWM

RFQ

SDR

TM

TQ

VEMO

WPS

WQT

PROJECT Quality Team

Purchase Request

Purchase Order

PROJECT Specialist Leader

Pipe Tracking System

PTS Coordinator

Preparation / Verification / Approval

Quality Control Manager

Quality Control Manager - Procurement

Quality Control Plan

Welding and Material Quality Lead

Request for Quotation

Specification Deviation Request

Technical Manager

Technical Query

Vendor Performance Monitoring and Site Assistance department

Welding Procedure Specification

Welder Qualification Test

3 REFERENCE, RULES, CODES AND STANDARDS

3.1 Company References

S. No

Document Number

Title

Exhibit 5 - Final Contract

PROJECT Instructions

Exhibit 6 - Final Contract

Scope of Work

200-20-CC-PRC-00094

Specification for preservation

200-20-QM-PRC-00098

Quality Assurance Requirements for SUPPLIERs

200-20-QM-PRC-00099

Quality Control Requirements for SUPPLIERs

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PRM-PJM-PRC-004

Major Projects Quality Plan

PRM-PJM-PRC-013

Project Quality Management System

PRJ-000-PRC-008

Lessons Learned

COMP-QG-QM-PLN-00002

Procurement Criticality Matrix

COMP-QG-QM-PLN-00003

Procurement Quality Surveillance Plan

PRJ-PJL-PRC-049

Project Acceptance Procedure

Information Handover, Verification and

3.2 Project Documents

S. No

Document Number

Title

TBD

TBD

Project Lesson Learned Procedure

Master Document Register

COMP3-SPM-PM-PLN-00001

Project Execution Plan

TBD

TBD

TBD

TBD

TBD

Project Procurement Plan

Project Quality Audits Program

Project Non-Conformity Management Procedure

Project Quality Audits Procedure

Project Quality Requirements for Suppliers

COMP3-SPM-PN-PLN-00002

Risk Management Plan

COMP3-SPM-IM-PRC-00001

Document control procedure

TBD

Vendor And Subcontractor Documentation Management Procedure

COMP3-SPM-PM-ORG-00001

Project Organization Chart

TBD

TBD

TBD

TBD

TBD

TBD

TBD

TBD

Project HSE Plan

Project Quality Requirements for Subcontractors

Source Inspection Procedure

Engineering Management Plan

Flange Management & System Completion Plan

Procedure For Pipe Tracking System And Weld Numbering

Project Change Management Procedure

Project Interface Management Plan

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3.3 Standards

S. No

Document Number

Title

ISO 9000:2005

Quality management systems - Fundamentals and vocabulary

ISO 9001:2015

Quality management systems – Requirements

ISO 19011:2011

Guidelines for Auditing Management Systems

ISO 10005:2005

Quality Management – Guidelines for Quality Plans

4 PURPOSE

This Project Quality Plan describes the Quality Program that shall be used for the COMP3 Scope of Work including Engineering, Procurement, Construction, and Installation as described in the COMP3 project specifications.

The major Sub-Contractor (s) for Fabrication Activities shall comply with the Project Quality Requirements. Project Specific Quality Plan (PQP), pertaining to their scope of work shall be prepared by both the Sub Contractors and submitted for CONTRACTOR/COMPANY REVIEW & APPROVAL in execution stage.

5 AREA OF APPLICATION

The document applies to the supply of services and fabricated works for the NFPS Offshore Riser Platforms & Intrafield Pipelines Project - COMP3.

All requirements prescribed within this document shall be flowed down the supply chain by the SUBCONTRACTOR to their TIER-SUBCONTRACTORS/SUB-SUPPLIERs for on the base of their relevant Scope of Supply and Scope of Work. The Project Quality Plan provides description of the key arrangements established within Contractor for the planned and systematic delivery of project Quality performance. The plan includes the following Appendices;

All project team members should have access to the latest version of the plan through Contractor EDMS Page.

Project Quality Plan Involvement Matrix

Prepare/ Revise

Check Approve Implement

Function/Organization

Project Director

Project Quality Manager

Project Managers

Project Deputy Quality Manager

✓

Quality Control Managers/Coordinators

Project Team

Company

✓

✓

✓

✓

✓

✓

✓

✓

✓

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6

PROJECT QUALITY MANAGEMENT SYSTEM (COMMON FOR HOME OFFICE AND SITE OFFICE)

6.1 MANAGEMENT RESPONSIBILITIES

CONTRACTOR Top Management and, within their competence, the PD / PQM shows their leadership and commitment by developing the following activities:

• communicating to the functions involved in the PROJECT the importance of complying with contractual and applicable regulatory requirements and of meeting COMPANY expectations and enhance COMPANY’s satisfaction;

• establishing the PROJECT Quality Policy and Key Performance Indicators; • ensuring risks and opportunities are identified and managed at PROJECT level. • conducting management reviews and promoting improvement actions at PROJECT

level;

• ensuring the availability of skilled resources; • assuring the implementation of this PQP;

6.1.1 COMPANY FOCUS & QUALITY MANAGEMENT REPORTING

6.1.1.1 COMPANY FOCUS

The needs and expectations of COMPANY are identified and satisfied by means of :

• Compliance with Contractual requirements defined by the COMPANY and the applicable

statutory and regulatory requirements;

• Periodic review of the processes during PROJECT execution determining and addressing risks & opportunities through periodic Project Risks Workshops coordinated by the Project Risk Engineer.

• Communication and involvement of the functions concerned regarding the above

requirements;

• Focusing on improvement actions of Quality Management System processes as

described in Sect.11.0 of this document.

6.1.1.2 QUALITY MANAGEMENT SYSTEM REPORTING

CONTRACTOR’s QA department shall prepare weekly and monthly reports detailing the status of Quality activities carried out in the reporting period; the report shall address the following areas:

1. Executive Summary highlighting areas where the QA department is currently involved, accomplishments for the reporting period, plans for next reporting period and, key issues
2. Status of Quality Audits and findings (Open, Closed, Aging) Including Observation Internal and external.
3. NCR Status Summary Table / Charts for Procurement and Construction (Open, Closed, Aging) and relevant narrative on closure plans
4. Quality Management status for each Major Construction, Fabrication Site and for each Vendor supplying criticality ratings 1-3 materials or equipment. Status reporting will include for each Site or Vendor:

a. Key quality issues during the reporting period; b. NCRs and CARs opened or closed during reporting period;

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c. Inspections status (accepted and rejected for the reporting period and project-to-date) by Major Construction Sites and for each Vendor supplying criticality ratings 1-3 materials or equipment; d. NCRs and CARs status and closure plans; e. Key outstanding quality document reviews; f. Quality Walk-Through status / Results (major construction and pipe storage sites only); g. Weld reject rates by Major Construction Site; h. Other Quality metrics, KPIs and analysis; i. Quality Staffing (Plan vs actual); l. SDR, TQ and SQ Status; m. Updates to the Procured Items Inspection and Construction Inspection databases.

Note: NCR and CAR reporting above will be segregated by the originating / tracking entity as follows: VENDOR, CONTRACTOR and COMPANY.

6.1.2 PROJECT QUALITY POLICY & OBJECTIVES

6.1.2.1 PROJECT QUALITY POLICY

The PROJECT Management, in accordance with CONTRACTOR’s quality policy, shall establish, implement and maintain an effective Quality Policy for the duration of PROJECT.

The Quality Policy implemented by the CONTRACTOR during PROJECT execution aims to ensure a commitment to satisfy applicable requirements, setting quality objectives and provide Top Management commitment to continual improvement.

The PD, supported by PQM, shall

•

implement all the actions needed to pursue the Quality Policy throughout PROJECT execution;

• ensure

the Quality Policy

is communicated, understood and applied within

CONTRACTOR PROJECT organization;

• Be responsible for the implementation of continual improvement of the PROJECT Quality System in order to achieve COMPANY and Stakeholders satisfaction and the established objectives.

PROJECT Quality Policy is defined in Appendix 1.

6.1.2.2 OBJECTIVES

CONTRACTOR establishes, reports, trend analyzes and takes necessary actions on the PROJECT Key Performance Indicators (KPI), consistently with the PROJECT Quality Policy and based on Appendix Y of Exhibit 5 PROJECT INSTRUCTIONS. PROJECT Team concurs to the achievement of Quality objectives, under the guidance and the control of the PD and PQM. The KPIs shall be monitored at predefined frequency and reported to COMPANY in Monthly Project Report. The PQM, with assistance from other functional heads and PMT members, shall define actions to improve negative trends for any KPI by root cause analysis and improvement plans.

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Procurement, Fabrication and Installation Quality Surveillance 7

Performance Requirement

No Quality Management / General 1

Monitoring of QMS implementation

2

Ensure effective resolution of non- conformance

4

3

Concessions resulting from NCR’s could indicate a potential down-grade in the quality of fabricated/installed material/equipment. Quality Inductions are important to personnel understanding the project requirements Engineering Quality 5

High quality documents requiring few edits due COMPANY comments are indicative of good CONTRACTOR understanding of contract requirements

6

Engineering Surveillance activities

Vendor shop surveillance points (H.W.S.R) as required in the approved ITP shall be respected and inspection request shall be well prepared. COMPANY shall be notified reasonably in advance. Traceability and status of conformity shall be ensured. Vendor supplied items released with pending exceptions shall be minimized.

Fabrication and installation surveillance points (H.W.S.R) as required in the approved ITP shall be respected and inspection request shall be well prepared. COMPANY shall be notified reasonably in advance. Pipeline weld rejection rate shall be monitored to the lowest value due criticality of CRA welds Unfavorable quality walk through results at fabrication, construction or pipe lay vessel sites may signal a decay in quality Weld rate during fabrication shall be monitored to ensure the lowest rejection rate is achieved

Material Management 13

Preservation shall be monitored to ensure good condition of stored material/equipment at every stage. Quality of Materials received at site in fit-for-purpose state.

8

9

10

11

12

14

Metric

Target

Frequency

review conducted VS planned Timely Audit Report submission (5 days after Audit completion)

95 %

Monthly

Response to COMPANY NCR (5 days after received) CAR and NCR close-out rate (closed VS total) % of overdue CARs and NCRs Number of concessions granted as result from NCRs Number of specification deviations granted

95% 95 % 95% < 10 % < 1% Report

Weekly

Monthly Monthly

All project personnel to receive a Quality Induction within 30 days of 1st day on project

100%

Monthly

% MDR documents Issued for Review (IFR) Review Code 1 or 2 within execution schedule allowance. % MDR documents Issued for Design (IFD) Review Code 1 or 2 within execution schedule allowance. Time-cycle to resolve Comment Response Sheet (CRS)

Detailed Design Monthly Engineering Surveillance Reports issued VS planned

Pre-inspection Meeting Attendance as required by equipment criticality % Hold points respected per approved ITPs % Minimum contractor Witness point participation % On time COMPANY inspection notifications % Rejected Request for Inspection (RFI) versus issued* Inspection release issued for criticality 1;2;3 materials % Inspection release With Zero Punch List Items Receiving Inspection NCR/Punch Lists

% Hold points respected per approved ITPs % Minimum CONTRACTOR Witness point participation % On time COMPANY inspection notifications % Rejected Request for Inspection (RFI) versus issued*

90%

Monthly

95%

1 cycle ≥ 95%

Monthly

100%

Bi-weekly

100% 80%

90% < 2% 100% 95% Zero

100% 80%

90% < 2%

Monthly

Bi-weekly

% Offshore weld rejection rate (aggregate)

< 5%

Daily

% Weekly walk-throughs reporting deficiencies (weekly and PTD aggregate reporting by site and vessel)

< 15%

Weekly

% weld rejection rate (Aggregate)

< 5%

Daily

Number of preservation routines carried out versus scheduled

100%

Monthly

All materials to be inspected on arrival at site

100%

Monthly

6.1.3 PROJECT ORGANIZATION

The set-up of an organization dedicated to implement a PROJECT, implies adopting a matrix organizational structure where the resources assigned to the PROJECT have dual reporting lines:

• hierarchical and functional, reporting to their own permanent organizational structure. Through optimization of the task, availability of levels of expertise and specialization as well as working methodologies and tools, this system guarantees the quality of the solutions adopted by the personnel assigned to the PROJECT.

• operational, reporting to the PROJECT organization.

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6.1.3.1 QUALITY ORGANIZATION CHART

6.1.3.2 FUNCTIONS & RESPONSIBILITIES

The responsibilities of the key personnel involved in the PROJECT are described in the respective Professional Role defined by CONTRACTOR’S Corporate Top Management and available in the CONTRACTOR online database (SharePoint). Copy of Professional Roles can be provided to CPY upon request. The departments of the permanent structure inside the CONTRACTOR organization are responsible for the following:

•

•

•

to ensure the conformance of their activities/products to the requirements of the CONTRACT and of approved PROJECT procedures; for the technical accuracy of documents and for all the activities within their discipline such as technical assistance to inspections and tests, construction, pre-commissioning, commissioning, etc.; to ensure adequate training and competence of the resources assigned to the PROJECT

With specific regards to quality management, the main functions and responsibilities are detailed as follow:

• Project Director

• Single point of contact with COMPANY for all matters pertaining to the CONTRACT.
• Authorize all external communications.
• Ensures that the level of performance is in accordance with the CONTRACT requirements

and with all the stakeholders’ expectations.

• Authorize all Expenditures and Procurement Requests related to the PROJECT.

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• Has the ultimate responsibility for the correct implementation of the Quality and HSE programs within the Project with the cooperation of all functions, specifically with Project Quality Manager.

• Ensuring that processes needed for quality management system are established,

implemented, and maintained.

• Ensuring promotion of awareness of COMPANY requirements within the Project.

• Project Manager

• Coordinate the engineering and constructions activities consulting with relevant disciplines’

managers.

• Support the Project Director in the coordination of the procurement activities.
• Manage subcontracts.
• Represent Contractor towards Clients, Licensors, Partners, and Subcontractors managing

Involved in Interface management both external and internal.

also contractual aspects.

• Behave in accordance with the Contractor leadership Model and make sure the full PMT

does the same.

• Ensure the proper analysis and the review of contractual documents.
• Ensure the implementation of methodologies related to risk/opportunity, knowledge

management, lessons learned, cost of non-quality.

• Ensure the implementation of the project strategies and the project activities planning (Project Execution Plan, Quality Plan, Procurement Plan, HSE Plan, Fabrication Plan, Installation Plan, etc.).

• Supervise all project activities with regards to Quality, HSE and Sustainability topics

supported by the other project organization roles.

• Stay abreast of the evolution of and implement the project management tools and

methodologies.

• Ensure the issue and the implementation of all required home office and project procedures Approve and supervise planning and cost control activities supported by the other project organization roles, implementing the corrective actions needed to achieve the established project objectives and ensure the issue of project reports (including the economics).

• Facilitate generation of Project and Portfolio Dashboards / reports to the Division

Management.

• Supervise home office engineering and procurement activities supported by the other

project organization roles.

• Supervise site/yard and offshore activities supported by the other project organization roles.
• Negotiate with the Client to reach agreement on the outstanding pricing, commercial,

contractual, and technical aspects of the variation orders.

• Ensure the issue of project reports to the Client.
• Maintain a valuable trusting relationship with the Client and monitor its satisfaction,

supported by the other project organization roles.

• Monitor final back charges to be applied to any third party (vendors, subcontractors, etc.).
• Ensure the collection of project feedbacks issuing final project reports (e.g., Close-out

Report, root cause analysis, etc.).

• Ensure the issue of completion and delivery certificates.
• Ensure the assistance to the Client during the guarantee period.

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• Project SHES Manager

• Responsible for all SHSE related activities in cooperation with Project Director and all

functions.

• Prepares all HSE documentation.
• Ensures continual improvement through the preparation and execution of audits.
• Manage on site SHSE personnel.
• Has the authority to halt operations if not performed in compliance with required SHSE

requirements.

• Project Quality Manager

• Ensure the definition and implementation of the Project Quality Management System and the identification, preparation and distribution of needed Project Quality Plans and procedures in accordance with the Project requirements.

• Ensure that the integrity of the Company QMS is maintained when changes are made to

the system for the project.

• Ensure that the correct implementation of the Project QMS is checked and monitored

through the planning of a quality audits.

• Ensure that the correct implementation of planned quality audits, taking in account all

project processes, including the issue of relevant audit reports.

• Conduct external audit to Vendors and Subcontractors QMS.
• Ensure, within the project organization, the planning of activities aimed at promoting the

applicable Contractual Quality Requirements.

• Plan and allocate Quality resources to the various area of the project, managing them in

liaison with involved Quality functions.

• Support the Project Manager in relations with the Client and with the Authorities responsible

for quality matters.

• Participates to Project Management meetings, to ensure coordination between Quality

activities and Project Management activities.

• Ensure the preparation and issue of QC specifications for the works, coordinating and

agreeing the checks by the Technical Departments and Client.

• Ensure the issue of quality requirements to be incorporated, in the contractual documents,

with Vendors and Subcontractors and organizations in charge of works.

• Ensure the Site QC activities implementation, including the monitoring of QC management

tool updating.

• Ensure management of nonconformities.
• Promote appropriate actions to prevent or eliminate potential non-conformities and their

causes

• Ensure the management of Cost of Non-Quality process.
• Ensure knowledge and awareness of Quality requirements within the Project Team, also

performing Quality Training activities.

• Collect and analyze project quality data also to organize and lead the Project Quality

Management Review.

• Facilitate the management of lessons learned process.
• Ensure Customer satisfaction process implementation.
• Report Project information and data to Company’s Quality Manager by means of Corporate

methodologies and tools and keep the Project Quality Reporting tools updated.

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• Project Quality Engineer

• Support the PQM / QCM in defining the Project Quality Control System and in identifying needed project quality control plans and QC procedures in accordance with the Company Quality Management System

• Support the PQM / QCM in planning and allocating Q C Supervisor functions to the various

area of the project, ensuring coordination of assigned personnel

• Review Quality Control Plans, verify that tests, controls, and inspections are conducted according to Quality Control Plans/Inspection Test Plans and that personnel have access to all required project documentation

• Check procedures and equipment to be used in tests, controls and inspections and agrees

on the applicable operating procedures with the organization in charge of the works

• Review applicable QC procedures, including those relating to special processes
• Check that material and equipment are correctly received, stored, identified, traceable

preserved and handled (if needed)

• Verify the implementation of the inspection, control, and test notification process
• Check documents certifying tests, controls and inspections conducted and their orderly

collection and management, mechanical completion included

• Verify that tests, controls, and inspections are conducted by contractors
• Verify the correct implementation and application of Quality Tools
• Provide specialist support to the PQM / QCM in interfacing with the Client and third parties
• Verify the correct application and, whenever necessary, the update of site Quality Control

Plans/procedures

• Ensure training of Site Personnel on QC topics
• Verify proper Non-Conformity detection and recording, as well as relevant corrective actions

implementation

• Verify the preparation of the Quality section of the final dossier. In case of subcontracted

activities, verify the QC section of the dossier is properly collected

• Verify that inspection/control/test reports are verified, recorded, filed and traceable
• Collect and analyze project QC data to be provided to PQM / QCM, also in view of the

Project Quality Management Review preparation

• Support PQM / QCM in the management of lesson learned process
• Report Project QC information and data to PQM / QCM by means of Corporate

methodologies and tools.

• Business Manager

• Support the Project Team in the CONTRACT and SUBCONTRACT management.
• Coordinate Quantity Surveyors.
• Prepare Invoices to COMPANY defining the needs of back up documentation and

Implement COMPANY invoicing procedure.

consulting with Project Control function.

• Consult with Corporate legal department in case of legal disputes related to the

CONTRACT.

• Project Control Manager

• Manage planning, cost control, risk management and document control activities.

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• Prepare the Progress Control and Monitoring Procedure defining planning scheme, WBS

and weighting in accordance with the CONTRACT.

• Prepare weekly and monthly reports.
• Prepare and keep updated the control budget.
• Collect and provide backup documentation for all projects related costs.
• Control progress against baseline schedule providing estimates to completion.
• Collects information and statistical data on the completed project to increase the Project

Management and Engineering database.

• Supply Chain Manager

Issues the project procurement procedure in accordance with the CONTRACT.

• Prepare and keep updated the procurement plan.

• Define VENDOR lists and subcontracting strategy.

• Manage and implement the procurement process granting competitive solutions; Manage procurement of material until the material is delivered to site (incl. expediting, logistic and quality) and subcontracting till the signature of the subcontract.

• Prepare Procurement Packages for COMPANY APPROVAL.

Issue Purchase Orders and Subcontracts gathering authorization in accordance with CONTRACTOR’s Proxy of Authorities.

•

Project Engineering Manager

• Verification of COMPANY data completeness and definition of Technical Queries.
• Design activities in accordance with contractual requirements, including Preliminary Design

Verification, Design REVIEWs and Studies.

• Development of engineering documentation for Detail engineering and material / packaged equipment procurement (calculation notes, IFC & As Built drawings, procedures, reports, MR, data sheets, project specifications).

• Coordination of Engineering Internal Interfaces between the relevant facilities within the

PROJECT, in liaison with relevant Project Managers.

• Coordination of Engineering external interfaces with other parties / facilities and interaction

with COMPANY.

• Consolidation of internal and external interface matrix.

• Quality Control Manager - Construction:

• Management and coordination of relevant Fabrication Yard activities.

Implementation of CONTRACTOR’s and COMPANY’s Quality requirements during all Fabrication activities.

• Preparation of the Fabrication Inspection and Test Plans and Quality inspection procedures.
• Coordination of site Quality inspection.
• Liaise with onsite COMPANY Rep.
• Report to Project Quality Manager.

Implementation of Quality Training program to all site personnel. Implementation of the Quality Walk program.

• Quality Control Manager - Installation:

• Management and Coordination of Offshore Installation Vessels activities.
• Preparation of the Installation Inspection and Test Plans and Quality inspection procedures.

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Implementation of CONTRACTOR’s and COMPANY’s Quality requirements during all Installation activities. Implementation of Quality Training program to all site personnel.

• Ensures implementation of the Quality Walk program.
• Report to Project Quality Manager.

• Quality Control Manager Procurement

• Responsible for the implementation of CONTRACTOR’s and COMPANY’s Quality

requirements during all procurement activities

• Plan and implement the quality activities in compliance with Project Procurement Quality

Plan.

• Ensure the quality of all material requisitions prior to submittal for COMPANY REVIEW.
• Ensure VENDOR/ SUPPLIER ITP & Quality Control Procedures are in compliance with

requirement specified in related APPROVED Purchase Order.

• Ensure and coordinate Inspection Assignment Package for COMPANY APPROVAL, Pre- Inspection Meeting and Contractor or COMPANY APPROVED third party inspectors.
• Report to Project Quality Manager project information and data in line with project

requirement.

• Consult with counterpart from COMPANY.
• Evaluation of suppliers and qualification of new suppliers as needed.
• Consult with COMPANY counterpart to ensure the TPI inspector from COMPANY and

Contractor are different and only approved TPI’s are utilized.

• Welding & Material Quality Lead

• Responsible for the implementation of CONTRACTOR’s and COMPANY’s Quality

requirements for all material and welding activities

• Plan and confirm welding procedures required on the project based on material and design

configurations.

• Ensure all Welding procedures and inspection procedures are qualified in accordance with

international standards and Company specifications.

• Ensure all weld procedures from suppliers and sub-contractors are reviewed and are in

compliance to project specifications.

• Verify that materials for fabrication and procurement comply with Company specifications
• Lead audits and assessments of welding and inspection activities,
• ensure lessons learned related to welding and inspection are implemented during all

phases of the WORK

• provide training to inspection teams to ensure compliance to requirements.
• Report to Project Quality Manager
• Consult with counterpart from COMPANY onsite.

• VENDOR Inspectors

• Conduct inspections at Manufacturers/VENDORs Premises with respect to APPROVED

ITP.

• Assist Procurement QA/QC Coordinator for planned and scheduled inspections at

VENDORs/manufacturers locations.

• Coordinate with COMPANY’s Inspector for conductance of inspections with planed

inspection schedule.

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• Reporting Quality Control Manager: Procurement.

• Quality Steering Group

A Quality Steering Group shall be established which shall include senior members of COMPANY & CONTRACTOR PMT, including as a minimum Project Managers, Quality Managers, Construction Managers. The Quality Steering Team shall meet on a monthly basis through all project phases to:

▪ Review quality performance metrics and key quality issues including:

o Key Performance Indicators o Non-Conformance Reports o Audit Performance

▪ Identify quality program improvements and suggestions ▪ Agree priorities for Flawless Quality initiatives and training

6.1.4 PROJECT QUALITY MANAGEMENT REVIEW (P-QMR)

6.1.4.1 GENERAL

Quality system management reviews are performed during the PROJECT implementation to assess the suitability, adequacy and effectiveness of the PROJECT quality management system.

The PROJECT Quality Management Review Meeting is organized once per year by PD, with the support of PQM, gathering the discipline Key/Management personnel involved in the PROJECT. The following inputs shall be taken in consideration:

a) the status of actions from previous management reviews; b) changes in external and internal issues that are relevant to the quality management system; c) information on the performance and effectiveness of the quality management system:

the extent to which quality objectives have been met;

• customer satisfaction and feedback; • • process performance and conformity of products and services; • nonconformities and corrective actions; • audit results; •

the performance of external providers;

d) the adequacy of resources; e) status of opportunities for improvement.

The outputs of the management review shall include decisions and actions related to:

a) opportunities for improvement; b) any need for changes to the quality management system; c) resource needs.

As required by EXHIBIT 5 – PROJECT INSTRUCTIONS CONTRACTOR will form a Quality Steering Team, which shall include, but not be limited to, project, engineering, and construction management. CONTRACTOR shall make provisions to allow COMPANY participation in the

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Quality Steering Team. Quality Steering team meeting can be held in lieu of Project Quality Management Review meeting.

6.1.5 QUALITY MANAGEMENT SYSTEM

6.1.5.1 QUALITY MANAGEMENT SYSTEM PROCESSES INTERFACE

Project Quality Team shall conduct its own Kick-off meetings (KOM), Contract Assessment and Pre-inspection meetings (PIM) with COMPANY representatives at each WORKSITE and SITE, and for each Project Phase and shall issue formal MOM and an Actions List from each event to COMPANY.

Typical minimum interfaces for CONTRACTOR include conduct Kick-off meetings (KOM) and Contract Assessment/Pre-inspection meetings (PIM) with SUBCONTRACTORs and SUPPLIERs. CONTRACTOR shall issue meeting agenda and provide formal notification for COMPANY attendance.

Typical interfaces between CONTRACTOR and COMPANY quality activities include, but are not limited to:

Contractor project activity

Supplemental activity requirements

Company interface actions

1. Prepare and submit a project specific quality plan within 30 days of contract award (PQP)

Refer to exhibit 5, appendix U (example EPC project quality plan).

APPROVE plan. Conduct periodic quality audits to verify compliance.

2. Update / prepare and submit project specific control procedures and a listing of procedures that will be used by Contractor to control the work.

Refer to quality specifications and requirements in the Project Exhibit 6, Appendix H Contractor’s deliverables.

Instructions. Refer

to

3. Perform pre-qualification / pre- bid assessments of Sub- Contractors.

As per approved prequalification procedures and AGREEMENT requirements.

4. REVIEW and APPROVE design output.

REVIEW

Company.

and Technical APPROVAL matrix for Contractor Quality and of representative for technical quality compliance requirements, of inspection and test requirements.

REVIEW specifications with REVIEW

5. Conduct design REVIEW and (Plot Plan, HAZOP, verification HAZID, SIL, 3d Model, P&ID etc.).

6. Control design changes.

Specific types of REVIEWs including HAZOPs, required, milestone REVIEWs etc. Prepare design verification plan.

Contractor’s control procedures to Company with interface specification and requirements.

APPROVE control procedures prior to start of work. Conduct periodic to verify quality assessments compliance.

Assess procedure implementation and compliance with AGREEMENT requirements. APPROVE Sub- Contractor prior to sub-contract issuance.

formats. document REVIEW Identify APPROVAL requirements. REVIEW technical specifications, inspection, and test requirements.

REVIEW design REVIEW plan / schedule. Participate in REVIEWs and verifications.

APPROVE procedure and individual changes.

design

change

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7. Assess and / or prequalify Sub- Contractors / Vendors.

Refer to Exhibit 5 section 4.3 for pre-qualification of Vendors.

8. Prepare RFQ/ITB packages for procurement of materials, equipment, and construction.

To include REVIEW by quality professional for compliance with quality requirements.

9. Assess Sub-Contractor/Vendor bids, prepare bid summaries, and select qualified Contractors.

To include REVIEW by quality professional for compliance with quality requirements.

10. Prepare Contracts.

POs

and

Sub-

11. Establish change control for POs and subcontracts.

To include REVIEW by quality professional for compliance with quality requirements.

Contractor’s control procedures to interface with company. To include REVIEW by quality professional for compliance quality requirements.

with

list

APPROVE pre bid assessments. APPROVE and bidders’ prospective subcontractors. Assess compliance with procedure and requirements. CONTRACT APPROVE the Contractor’s procedure for assessing and / or prequalifying Sub-Contractors / Vendors / Suppliers

REVIEW RFQ/ITB package technical and quality compliance.

for

technical and

for REVIEW bid quality compliance. Endorse and Sub-Vendor selection.

Sub-Contractor/Vendor

REVIEW POs/contracts, technical and quality elements.

verify

Audit change control practices.

12. REVIEW and APPROVE Sub- Contractor and Vendor Quality Plans, Inspection and Test Plans, and control procedures.

to Project

Instructions - Refer Exhibit 5 – Section 8 (Quality Management System Requirements) and Exhibit 5, appendix U (EPC Project Quality Plan – Typical Contents).

APPROVE all Quality Plans, Inspection and Test Plans, and control procedures prior to start of work. Conduct periodic quality assessments & surveillance to verify compliance.

13. Prepare and submit project audit plans and schedule.

14. REVIEW APPROVE CONTRACTOR’s proposed Sub- Contractor’s and Vendor’s pre-bid.

and

Audit schedule to include design selected Sub-Contractors, Vendors, Sub- and Contractor Contractor(s) activities.

construction

As per APPROVED project procedure.

APPROVE and audit schedule and participate as needed.

plans

bid

APPROVE list. Vendors proposed to supply equipment for facilities must be selected from AVL

15. REVIEW RFQ/ITB packages prior to issue.

and

APPROVE

16. REVIEW and APPROVE Sub- Contractor/Vendor bid summary and assist in selection of qualified Contractors.

17. REVIEW and APPROVE POs and contracts prior to issue.

18. Monitor changes to POs/ RFQs

To include REVIEW by quality professional for compliance with quality requirements.

REVIEW RFQ/ITB package technical and quality compliance.

for

To include REVIEW by quality professional for compliance with quality requirements.

REVIEW bids for technical and quality compliance. Endorse Sub- Contractor/Vendor selection.

To include REVIEW by quality professional for compliance with quality requirements.

To include REVIEW by quality professional for compliance with quality requirements.

REVIEW POs/Contracts, technical and quality elements.

verify

REVIEW changes for technical and quality compliance.

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19. Conduct pre-inspection meetings with Sub-Contractors and Vendors and participate in pre- inspection meetings conducted by contractor.

20. Conduct compliance assessment prior manufacturing

Vendor’s

PO to

Agenda to be prepared in advance and copy provided to company. quality Specification management for sub-contractors and Vendors to be followed.

requirements

for

for

quality Specification management for sub-contractors and Vendors to be followed.

requirements

21. Define and conduct Vendor inspection activities.

Refer to quality specifications in project instructions.

Attend pre-inspection meetings. REVIEW PIM agenda and provide additional company agenda items if any

Participate critical equipment/materials

in assessments

for

execution inspection REVIEW procedure. contractor’s Verify inspection activities. Add company intervention points onto all ITPs.

22. Prepare contractor’s inspection procedures.

Refer to specification for quality requirements for contractors.

APPROVE contractor procedures.

inspection

23. REVIEW Vendor’s quality record book

and

APPROVE

24. Oversee field engineering.

procurement, field 25) Oversee including selection, Vendor APPROVAL, oversight planning and execution.

site

storage

26. Verify and preservation of equipment and materials during construction and pre-mechanical completion activities.

is 27) Oversee and verify PMI conducted where by contract and traceability maintained.

required

28. Provide procedure, control/verification, critical components are weighed.

weight conduct

control weight ensure

and

to

specification

for Refer generation of Vendor’s quality record books

REVIEW and requests/technical requests for information (RFIs).

APPROVE queries,

List of Vendors and intended scope of work. Field procurement, including Vendor selection shall be done as described in Exhibit 5 section 4.3

Manufacturer’s recommendation for site storage and preservation. Requirements & activities shall be per the APPROVED preservation procedure (in line with company specification).

PMI and traceability requirements via technical specification.

Monitor alignment of Vendor’s quality record books to company requirements.

REVIEW technical queries, RFIs for technical and quality compliance.

REVIEW Vendor selection. Monitor critical Vendor activities and inspection of implementation execution procedure.

implementation. Conduct Monitor periodic and/or assessments surveillance to verify compliance. APPROVE preservation procedure for quality requirements.

results/monitor activity. REVIEW Conduct periodic assessments and/or verify compliance. APPROVE contractor, Sub-Contractor, & Vendor. PMI procedures.

surveillance

to

Criteria frequency technical specifications.

for components and via

for weighing

REVIEW and verify procedure. REVIEW results.

29. Oversee witness qualification of welding procedures, welders.

and

Qualification technical specifications.

requirements

via

30. Monitor welder performance evaluation.

As per APPROVED procedure.

control

Monitor welder procedure qualification programs. APPROVE welding procedures.

and welding

REVIEW require records and retraining/ requalification to correct adverse trends.

31. Monitor dimensional activities elements completed items).

control for critical and primary and

(subassemblies

Criteria for acceptance, timing, and frequency technical via specifications.

REVIEW reports.

dimensional

control

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32. Witness production welding, inspection, and testing.

REVIEW code and company requirements technical specifications. Include verification of production welding parameters in line with company specifications.

via

Monitor welding performance REVIEW inspection/testing results.

33. Conduct audits

per

As procedure, quality audit schedule.

APPROVED and

audit APPROVED

APPROVE quality audit procedure and audit schedule. Monitor audit schedule performance, REVIEW audit results and required follow-up. in Contractor’s Audits.

Participate

and

34. Control non-conforming product and processes, REVIEW and APPROVE Sub- Contractor and Vendor NCR dispositions.

contractor,

As per approved NCR and CAR and preventive action procedures.

35. Provide quality status monthly.

As per project APPROVED quality metrics procedure.

APPROVE NCR dispositions where “repair” or “use-as-is” is proposed. Monitor disposition and resolution of “corrective actions (CARs)”. Resolution of “preventive action request (PAR)”

APPROVE NCR, CAR, PAR and quality procedures. APPROVE metrics report.

metrics

36. Monitor and verify control of special processes, PWHT (local & furnace), NDE etc.

37. Provide as-built drawings and job data book.

Applicable code and specifications.

technical

process REVIEW monitor/oversee implementation.

procedures,

Technical specifications.

REVIEW

38. Prepare specification deviation request (SDR) procedure

Refer to Exhibit 5 instructions) appendix T.

(project

APPROVE procedure. SDR REVIEW all SDRs and APPROVE those that are acceptable and verify closure per defined conditions.

6.2 CONTRACT REVIEW

6.2.1 REVIEW

The requirements for the PROJECT are specified by the COMPANY in the contractual documentation, with or without direct references and amendments to applicable International Codes and Standards.

The PROJECT requirements are:

• Requirements specified by the COMPANY in the contract; • Statutory and regulatory requirements; • Requirements necessary but not specified by the COMPANY.

CONTRACTOR PROJECT TEAM with expertise from each functions and disciplines thoroughly reviews the contract in order to assess the practicability and feasibility of the PROJECT with reference to CONTRACTOR’s capabilities, resources and schedule to complete it. Specifically, the review applies to:

• The contractual documents: documents related to management, economic and financial aspects such as: contract, scope of WORK, prices, penalties, financing, insurance, legal aspects, obligations of the CONTRACTOR and COMPANY, commercial agreements

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•

such as joint ventures, pre-bidding agreements, letters of intent, licensing agreements, confidentiality agreements, etc. technical documents: drawings and specifications, block diagrams, other diagrams, technical data, environmental information, programs, codes, standards, regulatory laws and regulations.

• The above review allows the development of the “Coordination Procedure with

COMPANY” and of the “Basic Engineering Design Data” respectively.

6.2.2 AMENDMENT TO THE CONTRACT

Change can occur in several ways and recognizing and reporting the change, is the duty of all PROJECT personnel. Change can occur for:

• Scope or procedure changes introduced by the COMPANY. • Any alterations requested, and unavoidable, by SUPPLIERs and/or Construction

CONTRACTORs.

• Changes introduced by the PROJECT for strategic, schedule or cost saving reasons. • Change due to rework or inefficiencies that require additional effort from the base plan

to overcome.

• Change to the base estimate due to an omission or estimating inaccuracy causing a cost. • Change to COMPANY operating system parameters, procedures, or design.

Changes will be managed in accordance with provisions set forth in Exhibit 5, Sect.6.7

6.2.3 RISK ASSESSMENT, MANAGEMENT & CONTINGENCY PLANNING FOR ENGINEERING,

PROCUREMENT, MANUFACTURING, FABRICATION & OUTSOURCING

CONTRACTOR has established a systematic approach to risk to operate actively rather than reactively to prevent or reduce undesired effects and to promote continual improvement. Risk Management shall be accomplished based on the Project Risk Management Procedure. Risk Register shall give details of discipline wise identified risks, their risk score calculated based on probability of realization and impact in case of realization, classification, mitigating action plan for critical and high risks, responsible person / department for mitigating action, schedule, risk score after mitigating action. Risk register shall be REVIEWED periodically along with COMPANY.

Macro-actions taken by CONTRACTOR in order to address risks and opportunities, can be considered as:

implementing a PQMS;

• • addressing risk from different points of view; • assigning responsibilities to personnel through risk ownership for the implementation of

risk-treatment actions;

• continuously discover new risks and opportunities, registering and tracking; • employing tools for assessing risks, evaluating inherent risks, and defining risk-treatment

actions in operational activities.

• managing lessons learned; • PROJECT quality audits.

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6.3 PROJECT QUALITY AUDITS

Quality audits are planned and performed on main/most critical CONTRACTOR’s internal processes and externally provided processes, products and services in order to ensure conformance of the requirements. Audits will be performed in accordance with approved Audit Schedule (Doc.No.TBD) showing extent of audits to CONTRACTOR, SUBCONTRACTORS, VENDORS and SUB-VENDORS. Audits are carried out by qualified personnel with no direct executive responsibility for the activities being audited. The selection of auditors and the execution of audits must ensure objectivity and impartiality of the process. COMPANY shall be informed of all scheduled audit on a monthly basis and shall be copied on all audit reports. COMPANY shall be given the opportunity to participate as part of the audit team or as an observer for all scheduled audits. CONTRACTOR shall ensure a notification for each audit as per approved schedule is communicated to COMPANY 10 days prior to the audit and reported within 5 days of audit completion. The detailed CONTRACTOR’s quality management audit processes are detailed in “PROJECT QUALITY AUDITS PROCEDURE” (Doc. No. TBD).

6.4 CONTROL OF NON-CONFORMING PROCESS/PRODUCT (CORRECTIVE ACTION)

Non-conforming process/product may be identified during routine surveillance, as a result of audit or through normal inspection and testing in accordance with approved Inspection and Test Plans. It could also be the output from root cause analysis for closure of NCs. Management of Non- Conforming Process and Product are detailed in the Project Non-Conformity And Corrective Action Management Procedure” (Doc. No. TBD).

6.5 CONTROL OF POTENTIAL NON-CONFORMING PROCESS (PREVENTIVE ACTION)

CONTRACTOR PROJECT Quality Management shall adopt a preventive approach towards non- conforming processes throughout the PROJECT execution by fielding the following activities:

• Training to impart necessary awareness and skills to effectively perform quality critical

tasks. Training component is detailed in Section 6.8 of this PQP

• Quality Surveillance activities • Tracking Quality metrics as detailed in Section 10 of this PQP • • Promoting improvement initiatives as detailed in Section 11 of this PQP • Managing Lessons Learned process

Initiating action plans in case of negative trends in metrics parameters

in accordance with

relevant procedure

(Doc.No.TBD)

6.6 CONTROL OF PROJECT DOCUMENTS

to external parties

PROJECT Documents shall be numbered, distributed, reviewed, assigned review code, transmitted the PROJECT “Documentation Management Procedure” (Doc. No. TBD). The objective of the above procedure is to ensure that all controlled documents issued for NFPS PROJECT are managed effectively and efficiently, in a way to ensure traceability, distribution and validation, archiving of superseded/cancelled documents and secure storage of originals until final handover (refer to section 7.10 for further Document Control details).

including COMPANY as described

in

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6.7 TRAINING & HUMAN RESOURCES

6.7.1 TRAINING IN HOME OFFICE

PQM along with HR Department shall implement an ongoing induction training program for home office to introduce and familiarize all PROJECT personnel with the PROJECT quality requirements for their area of responsibility.

Project Quality Induction shall include

• Brief Overview of PROJECT scope of WORK, COMPANY etc. • Project Quality Policy • Project Quality Organization • Brief Overview of Project Quality Requirements, Acceptance Criteria and Acceptance

protocols and documentation requirements

• Major SUBCONTRACTORs

Records of induction and training shall be kept at the quality department of the work location

6.7.2 TRAINING IN SITE OFFICE

PQM along with Fabrication Yard Management (for yards) or Offshore Vessel Management (for offshore marine spread) shall implement an ongoing induction training program for Quality resources joining respective Quality teams in order that these resources are introduced and familiarized with the PROJECT quality requirements in their area of responsibility. PQM develops and implements a specific PROJECT Quality Training Program in order to ensure the awareness of personnel about quality activities and how they contribute to the achievement of quality objectives. CONTRACTOR will provide orientation session relating to the awareness and familiarization of the objectives and operation of the PQMS. In particular, CONTRACTOR will develop a Quality and Flawless Training Program to address critical topics (e.g. cleanliness, flange management, protection and preservation, etc.) in order to ensure that ongoing construction activities to do not impact on completed Works or adjacent activity, and avoids any disruption during commissioning and startup. The Quality and Flawless Training Program will be implemented by all Construction Supervision team who shall have responsibility for implementing program including conducting regular surveillance patrols, and taking immediate action to rectify observed deficiencies Records of induction and training shall be kept at the quality department of the work location

6.7.3 PERSONNEL SELECTION, COMPETENCY MEASURES & PERFORMANCE EVALUATION

CONTRACTOR’s Recruitment and Personnel Selection process, even when the services of external companies are used, is driven by established HR procedures. The skill evaluation system has the aim to identify the Skill Profile of the employee in order to individuate strong and weakness skills and foresee possible job mobility between different functions or in other job activities; in particular, the aim of the system is:

•

identifying technical and professional skills and competencies of people with reference to those requested and expected for their professional roles;

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• driving development & management actions of people, supporting their self-development

and internal communication;

• assigning and certifying the professional role of people and their seniority in order to assure an effective coverage of the role in terms of skills, know-how and competencies owned by people and maximizing professional development opportunities;

• giving input for training plans and knowledge management systems; •

identifying know how owner people and defining focused communication and compensation policies to support their motivation and the further professional development.

The process of performance management is activated each year during the first four months of the year, a period during which objectives are assigned for the year underway and the results of the previous year are evaluated.

6.8 CONTROL OF TESTING, MEASURING & MONITORING EQUIPMENT FOR PRODUCT

CONFORMITY

PQM and Site Quality Managers/Coordinators collectively shall be responsible for control of testing and control of Measuring and Monitoring Equipment used for inspection and testing at that work location. Such inspection and tests include those required in ITPs and QCPs like dimensional test, functional tests, leak tests, operational tests, proof tests and pressure tests.

Test Procedures shall be established prior to the test with acceptance criteria, sequential steps of testing, monitoring, and measuring test equipment details, calibration status, test operative competence requirements, test preparation criteria, acceptance specifications and standards, Job Safety Analysis, Certification Authority, and its acceptance protocols.

CONTRACTOR at its work locations, as well as SUBCONTRACTORs and VENDORs at their premises/work location, shall maintain a list of Measuring and Monitoring tools and equipment that shall be used to perform inspections and checks as required in the applicable Inspection and Test Plan(s). The list shall include all Measuring & Monitoring tools and equipment that may impact conformity of the process output in relation with the acceptance criteria.

The details of such list shall include:

• Description of the test tool or equipment • Unique Identification Number • Latest Calibration date / Calibration Document Number • Next Calibration Date • Calibration Procedure

7 DESIGN & ENGINEERING

7.1 GENERAL

Appropriate measures are established to ensure that design is executed, reviewed, verified and validated in a controlled manner, to ensure the subsequent provision of products and services in compliance with Contractual requirements.

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Appropriate procedures define, for each activity, the various work process, the information required, the documents issued, the checking and approval criteria, specifying the responsibilities, both for single discipline and multidisciplinary activities. CONTRACTOR’s quality team in conjunction with COMPANY representatives will periodically assess compliance to requirements and effectiveness of design and engineering control processes described herein. These control processes will also be part of CONTRACTOR’s audit program.

7.2 DESIGN PLAN

The execution of Engineering Design is detailed CONTRACTOR’s Engineering Execution Plan (Doc. No. TBD); specifically the plan aims to:

through PROJECT execution

in

• define the rules and set the principles to develop the Engineering Execution Plan in order to conduct the engineering activities in accordance with the contractual scope of work and

• consistent with the PROJECT objectives and strategy under a well-coordinated and

optimized organisation.

• establish the roles and responsibilities of the parties involved. • ensure uniformity in engineering criteria and methodologies.

The Engineering Execution Plan explains how coordination of multi-centre activities (e.g. home office, site office, satellite engineering centres, etc.) is assured, how inter-discipline coordination among the various technical disciplines is assured, drawings and documents control system, plans for quality, safety and technical reviews of the engineering work, proposed management of change procedure and the description how delegating engineering to subcontractors/vendors can effectively work in the PROJECT .

7.2.1 ORGANIZATIONAL AND TECHNICAL INTERFACES

Design phase interfaces would be managed using PROJECT specific Interface Management Plan (Doc.No.TBD). There would be an interface management register with pertinent details of the external and critical interfaces recorded and updated with status.

Eternal SUBCONTRACTOR interfaces and other contractors working for COMPANY in the same field.

include COMPANY design

interfaces, VENDOR

interfaces would

interfaces,

Internal interfaces would include interfaces with other functions like procurement, sub-contracts, fabrication, transportation and installation, as well as within different engineering disciplines.

7.3 DESIGN INPUTS

CONTRACTOR’s design inputs are based on contractual requirements as specified in Exhibit 6 SCOPE OF WORK specifically:

• Legal and other requirements • COMPANY supplied FEED deliverables • COMPANY supplied contract specifications and standards • CONTRACTOR internal standards and procedures International codes, standards and specifications •

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• Outputs from IDR, CER, DRR HAZOP and HAZID that will impact the design integrity as

part of the Design Inputs

CONTRACTOR manages design inputs through its Document Management Procedure (Doc.No.TBD). Discipline leads or managers ensure design inputs and updates are communicated to appropriate personnel by updating CONTRACTOR’s document distribution matrix and/or departmental meetings.

7.4 DESIGN OUTPUTS

The design and development outputs are planned on the Master Document Register which is issued at the beginning of the PROJECT and updated regularly.

Design outputs include:

• Process Flow Diagrams (PFD), Piping & Instrument Diagrams (P&ID) • Bill of Quantities (BOQ), Material Take-Offs • Detailed final design • Material Requisitions, Technical Bid Evaluations • Purchase specifications, sub-contract and SoW specifications • Data Sheets • Fabrications specifications, offshore T&I specification and procedures • Special processes (e.g. Welding, NDE, Coating) specifications

CONTRACTOR manages design outputs through processes described in sections 7.5 through 7.8 of this PQP.

7.5 DESIGN REVIEW

The design reviews aim to identify and solve critical aspects of the PROJECT through an analysis of the solutions adopted, the optimization measures taken and the feasibility within the established times and costs.

These REVIEWs are conducted in accordance with applicable quality management procedures, considering PROJECT objectives, requirements and needs.

The REVIEW meetings are called, co-coordinated and recorded by the Technical Manager and/or the PM and are attended by all CONTRACTOR’s personnel/positions concerned, as described in the Project Engineering Management Plan (Doc.No.TBD)

There are inter-discipline design checks (IDC) carried out by distributing documents and drawings among disciplines.

7.6 DESIGN VERIFICATION

The verification and APPROVAL of PROJECT documents are conducted according to the methods and responsibilities defined in the Project Engineering Management Plan. The criteria, verification methods and documented evidence are defined in specific CONTRACTOR’s standards for each specialist department.

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There are variety of in‐house, purpose‐built software’s, specialized externally purchased and licensed software’s used during process of design verification.

Multi‐disciplinary checks, process simulation using software, verification of calculations using software are some means applied while performing design verification. Evidence of design verification will be kept by Project Technical Manager.

7.7 DESIGN VALIDATION

The final design validation is conducted, whenever applicable, after the successful completion of test runs of the plant or parts of it. The above validation is formalized by the PROJECT Engineering Manager in the “Close out Engineering Report.” This report states the results achieved, the problems encountered and the adopted solutions, and is distributed to the CONTRACTOR’s Department Managers and COMPANY (if applicable).

7.8 DESIGN CHANGES

The identification and indication of the need for a design change, which does not deviate from PROJECT specification requirements, can be made by anyone involved in the PROJECT.

The design changes can be originated by the following causes:

• Requests from the COMPANY. • Variations in design solutions. • Work processes or operating methods different from the established program. • Changes or delays in the activities of a department that could impact the activities of

other departments

• Specification Deviation Requests processing at the design change.

Activities regarding the change cannot start before the PD/PM’s/Engineering Management Team APPROVAL, which is granted after an inter-disciplinary REVIEW addressing all aspects and consequences of change. On completion of the design change the “Design change register” is updated under the responsibility of the Technical Manager. The specific forms to be used and the WORK process to be followed are described in the PROJECT specific procedure Design Change Management (Doc.No.TBD)

7.8.1 TECHINCAL QUERY (TQ) OR SITE QUERY (SQ)

Technical query to be used to clarify interpretation of the design basis or to resolve a technical matter with the COMPANY in a formal documented manner.

Guidelines for TQ/SQ management are described in “Technical Query Procedure” (Doc. No. TBD); TQ/SQ shall be submitted to COMPANY through Page EDMS Transmittal and BOX notification using transmittal system as further detailed in “Documentation Management Procedure” (Doc. No. TBD). CONTRACTOR’ DC shall be responsible to maintain a TQ/SQ register in order to track COMPANY’s response and TQ/SQ status. Following resolution and return TQ/SQ by COMPANY, CONTRACTOR will review the response and inform all parties involved of the outcome and ensure that the agreed action is implemented followed by updating the status in the register.

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7.8.2 SPECIFICATION DEVIATION REQUEST (SDR)

SDR procedure for the PROJECT shall follow COMPANY requirements set forth in Exhibit 5, Appendix T. A Specification Deviation Request shall be submitted when CONTRACTOR, VENDOR or SUBCONTRACTOR proposes a deviation, alternate proposal or exceptions to Project Specifications during Engineering, Procurement, Construction and Pre-Mechanical Completion stages. SDR management process is described in “Specification Deviation Request Procedure” (Doc. No. TBD). SDR shall be submitted to COMPANY through Page EDMS Transmittal and BOX notification using transmittal system as further detailed in “Documentation Management Procedure” (Doc. No. TBD).

CONTRACTOR shall be responsible to maintain a SDR register in order to track COMPANY’s response and SDR status. Following resolution and return from COMPANY, CONTRACTOR will review the response and inform all parties involved of the outcome and ensure that the agreed action is implemented followed by updating the status in the register. SDRs and TQs are tracked through a database maintained by CONTRACTOR’s DC.

PROJECT TM has the authority to validate TQs or SDRs for transmission to COMPANY. Periodic and ad-hoc meeting will be held to discuss with CPY draft TQs and SDRs before formal transmission.

7.9 PROCESSES REQUIRING VALIDATION

CONTRACTOR shall identify processes requiring validation or special processes, such as welding, heat treating, non-destructive testing, pressure testing, coating, painting and cleaning, etc., which require controls such as procedure qualification and qualification of the personnel using them. Procedures shall be in accordance with applicable codes and specifications. Qualifications of special processes, personnel performing special processes and equipment shall be recorded and available during implementation of the processes.

.

7.10 DOCUMENTS & DATA CONTROL

7.10.1 GENERAL

The PROJECT document management process, including documents from external sources, is identified in the specific PROJECT “DOCUMENT MANAGEMENT PROCEDURE” (Doc. No. TBD) and in “VENDOR AND SUBCONTRACTOR DOCUMENTATION MANAGEMENT PROCEDURE” (Doc. No. TBD) respectively. The valid revision and distribution of PROJECT documents are controlled through a dedicated software application at PROJECT level. PAGE. The software covers the measures for identification, controlled distribution of the documents and drawings, their approval and revisions in compliance with the identification and verification principles of the quality system. Distribution, filing and storage are carried out in accordance with PROJECT procedure. “Documentation Management Procedure” (Doc. No. TBD). The software application manages both the issue and revision of all PROJECT documents and the storage of electronic files; this eliminates the possibility of using obsolete documents or revisions.

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7.10.2 CONTROL OF DOCUMENTED INFORMATION

7.10.2.1

GENERAL

reference

With Information Management/Document Control Plan, the structure of the PROJECT Quality Management System is represented here below.

INSTRUCTIONS Section 3.2

to EXHIBIT 5 PROJECT

Input:

CONTRACT

PQMS PROJECT Documents:

PROJECT QUALITY PLAN & PROJECT EXECUTION PLAN Documents that specify processes, procedures and resources will be applied for a specific PROJECT.

PROJECT PROCEDURE A document issued at the PROJECT level that specifies roles, responsibilities, resources and interfaces associated with a specific process in addition to / modification of the CONTRACTOR QMS System.

PROJECT SPECIFICATION (REQUIREMENTS) Document detailing the technical aspects of a particular mono-or multi-disciplinary PROJECT aimed at detailing those requirements to external organizations (Suppliers, Subcontractors, etc.).

OTHER DOCUMENTS Technical PROJECT deliverables such as: drawings, data sheets, red-marked copies, etc.

Supporting Documents:

CONTRACTOR STANDARD DOCUMENTS (procedures, templates, work instructions, criteria, forms, etc.).

PROJECT Execution Plan, Engineering Execution Plan and PROJECT Quality Plan are developed to cover all the primary and support processes of the PROJECT.

Each process will develop its own PROJECT procedures, specifications and/or requirements.

According to PROJECT scope, other PROJECT documents include:

• contractual documents; • PROJECT management plans and procedures • • correspondence between Contractor and other parties (e.g., Company, Suppliers, Subcontractors, Third Parties, Authorities), including reports and minutes of meetings;

technical and construction documents and drawings;

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7.10.2.2

CREATING AND UPDATING

The PROJECT document management process, including documents from external sources, is identified in the specific PROJECT “DOCUMENT MANAGEMENT PROCEDURE” (Doc. No.TBD) and in “VENDOR AND SUBCONTRACTOR DOCUMENTATION MANAGEMENT PROCEDURE” (Doc. No. TBD) respectively.

7.10.2.3

CONTROL OF DOCUMENTED INFORMATION

Distribution, filing and storage of documents are carried out in accordance with appropriate PROJECT procedures.

The PROJECT procedure “Documentation Management Procedure” (Doc. No. TBD) outlines the measures that have been established by CONTRACTOR to control issuance, retrieval and revision of documents (e.g., drawings, procedures, instructions) including changes to such documents, so that to preclude the possibility of using outdated or inappropriate documents in the performance of the work.

The valid revision and distribution of PROJECT documents are controlled through a dedicated software application (EDMS). The software covers the measures for identification, controlled distribution of the documents and drawings, their approval and revisions in compliance with the identification and verification principles of the quality system. Changes to documents are prepared, verified and approved by the same functions that performed the original review and approval of the document. The software application manages both the issue and revision of all PROJECT documents and the storage of electronic files; this eliminates the possibility of using obsolete documents or revisions.

Controlled document management processes ensure:

traceability;

• • correctness of the content of the document; • document development and revision status; • availability of current documentation to all personnel; •

filing and storage.

The development and revision status of PROJECT documents are recorded in the PROJECT Electronic Document Management System (EDMS) that can be accessed by all personnel involved. Documents prepared by CONTRACTOR will be submitted for COMPANY review through Page EDMS Transmittal and BOX notification as per COMPANY distribution matrix’s using transmittal system as further detailed in “Documentation Management Procedure” (Doc. No. TBD). Company will return Reviewed/Approved/Rejected documents to CONTRACTOR utilizing a Comment Response Sheet; Each Comment Response Sheet will be returned to CONTRACTOR indicating the REVIEW/APPROVAL/REJECTED status as per below code list:

1. Code A – Approved without comments: document can be issued at the next revision level
2. Code B – Approved with minor Comments: CONTRACTOR implements comments and may

issue to final revision

3. Code C – Returned with Comments: CONTRACTOR implements comments and issue next

revision for another Review cycle

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4. Code D – Rejected with Comments: Document is not ready to pass next revision step. CONTRACTOR shall re-issue with subsequent revision index after implementing all comments

5. Code I – Information Only: Document does not require review

Changes to document during revision process shall be tracked and highlighted. Specific records are taken and kept in a controlled way to provide objective evidence of compliance with requirements and to guarantee the implementation of the management system. Records shall be legible, easily identifiable and retrievable.

Records required to provide evidence of conformity to requirements and of the effective operation of the quality management system are retained for a minimum of five years.

PROJECT records are managed according to the following table:

Normative Reference (ISO 9001:2015) 7.1.5.1/7.1.5.2 – Monitoring and measuring resources / traceability

Normative Reference (ISO/TS 29001)

8.2.4 – Monitoring and measuring of product

7.2 – Competence

6.2.2 – Competence

8.1 – Operational planning and control

7.1 – Planning of product realization

8.3.1 – Review of requirements for products and services

7.2.2 – Review of requirements related to the product

8.3.3 – Design and development inputs

7.3.2 – Design and development inputs

8.3.4 – Design and development control

7.3.4 – Design and development review

8.3.5 – Design and development outputs 8.3.6 – Design and development changes

7.3.3 – Design and development outputs 7.3.7 – Control of design and development changes

8.4.1 – Control of externally provided processes, products and services

7.5.1 – Control of production and services provision

Document

Monitoring and measurement device records

Curriculum Vitae – Training records

Responsibil ity

PMM / PQM

PD / PQM

• • • •

Engineering program Procurement program Construction program Installation program

TM PPRM CM IM

PROJECT Execution

Design Basis

• Plan • Contract requirements Design Basis issued by disciplines (as applicable)

Minutes of design review

Calculation printouts,

• meeting • verification check lists • Engineering drawings and specifications

Final PROJECT report

Design change record

Check-lists Vendor list - Vendor

• • prints and data • • Construction Reports

Inspection Release Note Fabrication and

PM TM

PM TM

PSL PSL PM

TM

TM

PSL PPRM / PSL PMM / PIC QCM / CM

8.5.2 – Identification and traceability

7.5.3 – Identification and traceability

• • •

Material traceability list Pipe Tracking System Welding map

PSL PTSC WES

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Normative Reference (ISO 9001:2015) 8.5.3 – Property belonging to Company or external providers

8.5.6 – Control of changes

8.6 – Release of product and services

Normative Reference (ISO/TS 29001)

7.5.4 – Customer Property

7.3.7 – Control of design and development changes

8.3.1 – Release or acceptance nonconforming product

Document

Anomaly records Shortage, Damaged Material Report Design change record, Variations, Concessions (Waivers)

Inspection Release Note Quality control report

8.7 – Control of nonconforming products

8.3 – Control of nonconforming products

Nonconformity reports: • • finding register) •

Materials (NC register) Audit report (Audit

Site (NC register)

Responsibil ity

PM

TM / CONM / PM

PMM / QCM

PMM PQM QCM

9.1.1 – Monitoring, measurement, analysis and evaluation

8.2 – Monitoring and measurement

9.2.2 – Internal audits 9.3.3 – Management review outputs

8.2.2.1 – Internal audits 5.6.3 – Management review outputs

10.2.2 – Nonconformity and corrective action

8.5.2 – Nonconformity and corrective action

KPIs PROJECT Quality

• • Management Review Reports Audit reports PROJECT Quality Management Review Reports

PQM / QCM

PQM

PQM

• Audit report, nonconformity report, CAR •

Claims

PMM / PQM / QCM PM

8 PROCUREMENT

8.1 GENERAL

The Procurement activities will be carried out in compliance with EXHIBIT 5 PROJECT INSTRUCTIONS Section 4.3.

which details the CONTRACTOR’s main procurement and post order processes as follow:

• Procurement strategy and planning. • Award of contracts. • Contract management and post-order activities. • Management of Vendors and Sub-Contractors. • Reporting, control and document management.

In addition, CONTRACTOR-VENDOR quality engagement will be driven by materials or equipment criticality and will be conducted in accordance with Exhibit 5, Appendix W.

At commencement of the PROJECT the PPRM, in conjunction with PROJECT Function Leads, prepares the PROJECT Procurement Plan (Doc. No. TBD) which contains:

• Complete requisition received from CONTRACTOR’s engineering or construction

functions;

• Bid list issued for APPROVAL; •

Invitation to Bid (ITB) issued for APPROVAL;

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Issue of ITB to bidders;

• • Proposal due date; • Technical Bid Evaluation (TBE) due date; • TBE and award recommendation issued for APPROVAL; • Placement of Purchase Order (PO); • PO Delivery Date; • Expected Delivery Date; • Required Delivery Date at site;

The PPRP is a living document which will be kept up to date by the PPRM to track and ensure Procurement and Post Order progress.

8.2 OUTSOURCED PROCESSES

The two main Project Quality Specifications “Quality requirements for SUPPLIERs” and the “Quality requirements SUBCONTRACTORs” have been issued and shall be included by the PMT in the bidding/purchasing documentation.

These documents define the minimum level of quality requirements to be implemented by Construction VENDORs/SUBCONTRACTORs to ensure full compliance with the requirements of the Purchase Order/Contract relevant to quality, regular monitoring and coordination of testing and inspections during construction/fabrication activities

These processes would be controlled using:

• Strict use of Approved VENDOR List

(Exhibit 5, Appendix O) during

VENDOR/SUBCONTRACTOR selection for bidding

• For VENDORs not included in the AVL, VENDOR qualification protocols shall be followed before placing subcontract as specified in PROJECT VENDORs and SUBCONTRACTORs Qualification Procedure Doc.TBD

• Their performance shall be continuously monitored throughout their service using inspection coverage as per criticality rating assigned to the material under manufacturing through periodic reporting of procurement status, as specified in Section PQMS of this PQP.

8.3 QUALIFICATION & EVALUATION OF VENDORS (CRITICAL VENDORS)

The VENDOR qualification is coordinated by the PROJECT Procurement Department, supported by other competent departments. The Department also ensures the recording of qualification in the CONTRACTOR’s Corporate information system and the filing of records in specific archives.

The objective is to evaluate and qualify the capability of SUPPLIERs to satisfy CONTRACTOR’s requirements, through the acquisition and management of information on the VENDORs themselves, according to objective and documented criteria. Project Procurement Manager carries overall responsibility of Procurement function and its deliverables – compliance with specifications and schedule.

The equipment, materials, services, and construction activities to be purchased are grouped into product classes, according to Criticality Ratings and Inspection Levels assigned by COMPANY and the list of VENDORs qualified by CONTRACTOR is regularly updated.

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8.3.1 CRITICAL VENDORS MONITORING & CONTROL

CONTRACTOR shall be responsible for the performance of required source inspection to verify the quality of product purchased by CONTRACTOR, and shall document its procedures, processes, and controls in a Source Inspection Procedure.

CONTRACTOR Procurement QC Manager will play a key interface role with COMPANY and VENDOR QA/QC Representatives in implementing the Procurement Quality Surveillance Program at Worldwide VENDOR Locations.

CONTRACTOR has in place an inspection database updated and communicate updates to COMPANY on a weekly basis.

Important steps of VENDOR monitoring and control are:

• Procurement Kickoff Meeting KOM

• Pre-Production Procurement Contract Meeting clarifying person(s) responsible for the execution of contract, Engineering, manufacturing, QA/QC, documentation from VENDOR side,

• Confirmation of PO requirements, technical and QA/QC requirements,

• details of communication channel from parties involved in Inspection and testing,

• Schedule confirmation,

• VENDOR reporting requirements,

• design documents submission protocols and schedule, number of prints and formats,

• Confirmation of sub-VENDORs

• Pre-Inspection Meeting PIM

• This shall be conducted regardless of Inspection Level of the purchased item.
• This shall be attended by COMPANY, CONTRACTOR, VENDOR, and major Sub

VENDORs.

• The suggestive agenda for PIM is as below. The detail agenda shall be developed prior

to PIM based on VENDOR, quality requirements of products.

Introductions and sign-in Inspection Notification process flow chart, contact points

▪ Preview (number, change orders, line items, etc. ▪ ▪ ▪ Shop/Plant walk-through ▪ Engineering status ▪ Drawings, codes, and specifications ▪ REVIEW of sub-orders ▪ Primary / Sub- SUPPLIER QC responsibilities (REVIEW ITP’s, hold points) ▪ Shop / Plant safety and accessibility controls ▪ Primary / Sub- SUPPLIER manufacturing, production & testing milestones ▪ Material traceability control ▪ Material substitutions ▪ Welding procedures and operator qualification controls ▪ NDE procedures and operator qualification controls ▪ Control of non-conforming product / material ▪ Welding repairs ▪ Post welding heat treatment requirements and controls

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▪ Protective coatings, linings, and painting ▪ Control of inspection, measuring, test equipment ▪ Tagging, marking, and packing requirements ▪ Special and/or long-term storage requirements ▪ VENDOR data / doc. Requirements (main & sub- SUPPLIERs) ▪ Purchaser’s hold and witness points ▪ Exceptions taken and concessions granted ▪ Action points ▪ ▪ PO compliance Audits ▪ Quality Walk / Alert Program ▪ Preparation and distribution Periodic Procurement Quality Report

In process and final Inspections as per APPROVED d Inspection and Test Plans

8.4 VENDOR’S RE-EVALUATION

CONTRACTOR uses a dedicated software for VENDOR Re‐evaluation which is managed by Corporate Office in Milan. Procurement Manager fills evaluation sheet for each Purchase Order after completion which has various criteria. Some of these criteria for re‐evaluation include:

• Schedule compliance • Cost Compliance • Quality Performance • HSE Performance

Based on these evaluations, VENDOR is ranked by the software in the system into one of the various categories like Highly Recommended, Recommended, Not recommended and Black‐ Listed. These rankings are used for future use of the VENDOR in PROJECT procurement work.

8.5 PURCHASING DATA

Requesting PROJECT function shall prepare a Material Requisition (MR) or Scope of Work (SOW) in order to describe the material or service to be procured respectively and activate the Procurement function to inquiry potential Vendor/Subcontractor through a Request For Quotation (RfQ). The minimum information describing the product or service shall be:

• materials, equipment, or services; • Applicable PROJECT codes, standards, and design specification requirements; •

Inspection and Testing Requirements Sheets (ITRS) which contain inspection and testing requirements for individual equipment and system components such as machinery, piping, and electrical distribution systems.

• Specifications, drawings, references to regulations and standards; • Requirements for Quality; • Requirements for HSE; • Commercial Terms & Conditions; • Ethical Policy; • Sustainability Policy; • Requirements for packing, marking, shipping of the goods; • Requirements for Documentation.

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8.6 VERIFICATION OF OURCHASED PRODUCTS

The activities involved in the Quality Control process are carried out with the support of the Company Integrated Business Information System (SAP).

Instructions Exhibit 5, Based on Appendix W Materials Criticality List of PROJECT CONTRACTOR’s multidiscipline team of engineers, quality control, procurement, and construction/installation personnel shall identify the levels of shop and field inspection following instructions specified in Exhibit 5, Section 8.8.2.

Inspection Levels are identified as follow:

Inspection Level

Level 1+

Generic Definition

Resident Inspection: Full Stage Inspection as below plus full-time resident Inspector(s)

Level 1

Level 2

Level 3

Full Stage Inspection: Minimum 2 inspection visits per week and all selected ITP points

Systematic Stage Inspection: Minimum 1 inspection visit per week and all selected ITP Points

Selected Stage Inspection: Selected ITP points, Factory Acceptance Test & Final Inspection

Level 4

Final Inspection only

No Inspection

No Source Inspection - Document REVIEW Only

Typical relation to Purchasing Criticality Rating

I

I or II

II

III

IV

IV

The QCMP supported by the PMM, assigns the PO to internal inspectors and/or inspectors from qualified external agencies based on workload, type of materials, the geographical area where the Goods are being prepared and PROJECT strategies. The external inspectors can only belong to agencies that have been qualified in accordance with CONTRACTOR’s procedures. All inspectors are subject to COMPANY review and approval.

Only when internal resources are not available (i.e. workload, specific technical skills/expertise) the inspection/testing activities (Vendor documentation review and/or Inspection at Vendor workshops) can be assigned to external resources. The decision to assign the activities to an external qualified Agency has to be taken by the PMM in accordance with QCMP. The Inspector Coordinator, designated by the PMM, takes charge of Purchase Orders checking the inspection class type as indicated in the PR and provides the appointed Inspector with the Inspection Assignment Package (IAP) that includes all of the technical and Quality Control documentation to support inspection activities. The documentation specifies the required technical characteristics, the inspection and testing requirements and the type of certification to be provided. The IAP has to contain the following:

• Purchase Order without prices (last applicable revision); • Material Requisition including all technical specifications for the order and attachments

last applicable revision;

• approved Inspection Data Sheet (IDS);

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• approved Inspection Test Plan (ITP).

Note: approved with comments (with comments clearly identified) is acceptable to start inspection accordingly;

• all applicable main contract specifications; • all applicable drawings and procedures necessary to perform the inspection (last

applicable revision);

Inspection are carried out to verify:

• Conformity of material or equipment with the requirements of Purchase Order; • Fabrication and workmanship shall meet standards of COMPANY specifications, standards and specified procedures and plans in Inspection Assignment Package; • Testing shall meet requirements of Purchase Order and COMPANY specifications as

well as applicable International Standards;

• Packing and shipping shall meet COMPANY specifications and Purchase Order

specifications;

• Non conformities are identified, recorded, acted upon and resolved;

8.7 PROCUREMENT QUALITY RECORDS

Inspector shall keep accurate records of each inspection visit with proper documentation which includes inspection report, visit report, test report, calibration report, material test certificates, photographs, drawings etc. These documents shall be clearly identified with inspector name, signature, date, PROJECT number, contract number, PO number, PO item number and other pertinent details.

Inspection Reports will be reviewed by QCMP to ensure early identification and resolution of Quality issues and, to steward CONTRACTOR Inspector performance. Inspection results will be collected and analyzed to enable reporting and stewardship of relevant Quality KPIs.

Vendor inspection status will also be tracked and reported using a Procured Items Inspection Database meeting the minimum requirements of Contract Exhibit 5, Section 8.8.6.

8.8 CONTROL OF COMPANY ASSIGNED ITEMS

With the purpose of identifying responsibilities related to COMPANY’s property and to protect its value, CONTRACTOR manages parts or components provided by COMPANY that are incorporated in the final product and/or COMPANY’s intellectual property including specifications, drawings, and confidential information in compliance with contract specifications.

Therefore, CONTRACTOR:

identifies COMPANY’s property.

• • verifies if COMPANY’s property is damaged. • keeps records of the damage and notifies COMPANY. • protect COMPANY’s property, as specified in specific PROJECT procedures, VENDOR recommendations, CONTRACTOR internal guidelines and PROJECT preservation matrix.

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8.9 PRODUCT IDENTIFICATION & TRACEABILITY

is responsible

for maintaining product

This section establishes the system and instructions for product identification and traceability. It applies to all materials, in-process materials, products and final products purchased and delivered to fabrication yard, onshore site or offshore vessel and installed / assembled as the final plant handed to the COMPANY. VENDOR/SUBCONTRACTOR identification and traceability throughout its manufacturing/service process according with applicable PROJECT specifications (Material Traceability and Documentation Doc. No. TBD) requirements and approved VENDOR/SUBCONTRACTOR’s traceability procedures. Identification and traceability shall be ensured during in-process and final inspections by VENDOR/SUBCONTRACTOR’s Quality department, CONTRACTOR’s and COMPANY’s inspectors. For all materials, parts and components, including partially fabricated assemblies directly managed by CONTRACTOR (i.e. line pipe), specific PROJECT procedures for material identification and traceability are developed (i.e. Procedure For Pipe Tracking System And Weld Numbering Doc. No. TBD). Identification of material, part and component shall be ensured at any SUBCONTRACTOR’s Warehousing / Marshalling yards used by CONTRACTOR during transportation and handling of PROJECT material, ensuring that the identification details of products received at the respective location allows easy traceability of records. These records shall remain traceable after delivery to site and during incorporation into the final assembly.

identification and

8.10 PACKAGING, PRESERVATION AND DELIVERY

CONTRACTOR shall ensure that handling, storage and preservation processes of Project material/equipment are in compliance with Company requirements detailed in Exhibit 5, Sect.8.13. The same requirements apply when Project material/equipment is managed by VENDOR and SUBCONTRACTOR during implementation of their supply/scope of work. Dedicated Method Statement or procedure for the correct handling, storage and preservation of equipment and material shall be developed by CONTRACTOR/VENDOR/SUBCONTRACTOR with particular attention on the preservation of CRA items. Inspection and Test Plans to detail handling, storage and preservation inspection requirements shall be prepared (where needed), in order to ensure conformity with the above listed specifications.

9 CONSTRUCTION / FABRICATION / INSTALLATION

9.1 GENERAL

The PROJECT Execution Plan (PEP) identifies and defines the main activities required during construction in order to achieve the successful completion of the PROJECT; activities include fabrication in the yard, onshore / offshore installation, brownfield modification, hook up and commissioning. CONTRACTOR and SUBCONTRACTORs shall establish and maintain a fabrication database to monitor the engineering tagged items during various fabrication activities and associated Inspection Test Reports. The fabrication database shall be presented and agreed by CTR and CPY prior implementation.

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9.2 CONSTRUCTION / FABRICATION / INSTALLATION PLANNING

The Construction PROJECT schedule will be developed in a cooperative effort with discipline leads, PROJECT management personnel, construction management and involved SUBCONTRACTOR(s).

The overall control and publishing of the progress schedules and manpower plans for the PROJECT will be through the PROJECT control team dedicated as part of the task force.

In addition, the following breakdown of PROJECT Schedule will be prepared:

• Level 1 Global PROJECT Planning (Contract Master Schedule) • Level 2 Detailed PROJECT Planning • Level 3 Detailed PROJECT Schedule

The PROJECT Planner will collect the individual manpower plans from each PROJECT discipline lead on a monthly basis to enable monitoring of the planned, actual and forecast manpower loadings. This information will be fed back into the PROJECT team organization to allow the respective discipline managers to support the PROJECT manning levels and resolve any issues. All manpower forecasts will be based on the principle of a 12 week look-ahead to ensure sufficient mobilization time is available. Equipment and vessel requirements will be coordinated with CONTRACTORs fabrication yard and marine division. PROJECT vessel required will be booked at the start of the PROJECT and the overall CONTRACTOR’s marine vessel plan will be monitored for change. Similarly, equipment needs will be planned in advance of any fabrication and marine activity in order to allow time to determine hire requirements.

Prior to the start of Onshore and Offshore installation campaigns and prior to the start of Fabrication yard activities, CONTRACTOR will conduct construction quality readiness reviews to ensure required quality manpower levels and competencies, procedures, equipment and materials are in place.

9.3 CONSTRUCTION / FABRICATION / INSTALLATION REQUISITION

During construction activities the Quality Control Manager, with the support of QC Supervisors, ensures the following:

• assessment and approval of quality control personnel (also supported by the PROJECT

Quality Manager)

• Coordination of CONTRACTOR QC Team and coordination with SUBCONTRACTORs

Site Quality Management (in case of subcontracted activities);

• Preparation and/or verification/approval of Quality Control Plans (also supported by the

PROJECT Quality Manager)

• verification of qualification of the special process’s procedures, • verification of SUBCONTRACTOR’s quality resources qualification, • Verification of correct receipt, storage, conservation and handling of PROJECT materials

and equipment

• Verification of correct identification and traceability of materials, • implementation of the inspection notification process (RFI/IN), • evaluation and recording of inspection results,

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• controlling measuring and testing equipment calibration status, • definition and implementation of the site nonconformity management process. • collection and reporting of site Quality metrics versus relevant Quality KPIs. • ensuring performance and effectiveness of Quality Walk program, • ensuring materials and equipment preservation activities are taking place and are

effective, particularly for corrosion resistant alloy materials, • monitoring use and effectiveness of Site Query procedure.

9.4 SELECTION OF SUBCONTRACTORS

Sub‐contractors and critical lower tier VENDORs and SUBCONTRACTORs shall be selected from COMPANY Approved VENDOR List as given in Exhibit 5 Appendix O and CTR AVL as per CTR procurement process. For sub‐contractors, vendors and sub‐vendors not on the project’s AVL, CONTRACTOR shall submit for COMPANY APPROVAL a Pre‐Qualification Plan including evaluation, qualification and dis‐qualification criteria for the proposed CONTRACTOR’s sub‐ contractors, vendors and sub‐vendors in accordance with Exhibit 5 Section 4.3 and Section 8.

Proposed SUBCONTRACTOR shall be assessed for below aspects through assessment using multi‐disciplinary team of CTR and CPY either visit or review of documents:

Is ready, capable, and willing to supply the intended service.

• • Has demonstrated ability to consistently meet the delivery dates/schedule required by

the PROJECT.

• Has demonstrated technical competence and quality management of products and

services.

• Has demonstrated relevant experience in providing what is being subcontracted and

delivered within cost constraints.

• Has demonstrated ability of the SUBCONTRACTOR’s specific manufacturing location with respect to the above including shop load (both engineering and production) and shop capacity.

• CONTRACTOR’s and/or COMPANY’s prior experience and history with any potential

SUBCONTRACTOR.

• Has demonstrated capabilities and acceptability of the SUBCONTRACTOR’s commonly used major sub‐VENDORs and/or SUBCONTRACTORs. Depending on the criticality of the service being obtained from a potential sub‐VENDOR/SUBCONTRACTOR, CONTRACTOR shall qualify such lower tier VENDORs/SUBCONTRACTORs to the same standard as the VENDOR

9.5 CONSTRUCTION / FABRICATION / INSTALLATION CONTROL

Construction control (Offshore/Onshore Installation, Brownfield modification and Fabrication) is implemented trough Quality Control activities aimed to ensure the fulfillment of COMPANY, CONTRACTOR and applicable International Standards requirements.

Construction control process is organized into the following phases:

a)

Planning: definition of the activities to be carried out before starting quality control activities, such as resource planning, activity planning and coordination, checking of documents, availability of valid measuring equipment, etc.

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b)

Preliminary process control: quality control activities performed prior to start the construction such as: preliminary checks on qualified resources, validation of special processes, materials and consumable control.

c) Quality controls: control activities carried out at defined intervals of construction completion to ascertain conformity of process and product, preparation and collection of inspection and testing reports and the management of non-conformities. These controls will include development and maintenance of a construction inspection database to report all completed and pending construction inspections throughout the PROJECT.

d) Quality records: documents capturing the results of inspection and testing providing

evidence of conformity to stated requirements.

During construction activities the Quality Control Managers, with the support of QC Supervisors, ensures the following:

• assessment and approval of quality control personnel (also supported by the PROJECT

Quality Manager)

• Coordination of CONTRACTOR QC Team and coordination with Subcontractors Site

Quality Management (in case of subcontracted activities);

• Preparation and/or verification/approval of Quality Control Plans (also supported by the

PROJECT Quality Manager)

• verification of qualification of the special processes procedures, • verification of construction personnel qualification, • Verification of correct receipt, storage, conservation and handling of PROJECT materials

and equipment

• Verification of correct identification and traceability of materials, • implementation of the inspection notification process (RFI/IN), • evaluation and recording of inspection results, • controlling measuring and testing equipment calibration status, • definition and implementation of the site nonconformity management process. • collection and reporting of site Quality metrics versus relevant Quality KPIs, • ensuring performance and effectiveness of Quality Walk program, • ensuring materials and equipment preservation activities are taking place and are

effective, particularly for corrosion resistant alloy materials,

9.6 WELDING CONTROL

Specifically for welding activities, CONTRACTOR will put in place a comprehensive welding control program considering:

1. PROJECT Planning (labor forecasts, scheduling, workspace availability and adequacy including site conditions and constraints, process selection and application, identification of critical welds and components, contingency planning, communications, permits)

2. Weld drawings (drawing numbers, revision control, process sequence, weld maps,

special notes)

3. Weld consumables (inventory management, material

testing, traceability, storage, Issue of material, reuse, monitoring, disposal)

identification and

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4. Training and Competence (welders, welding operators, welding coordination personnel,

weld engineers, welding inspectors, NDE technicians)

5. Fabrication Performance (production planning, weld qualification, welder qualification, welding procedure specifications, procedure qualification records, surface preparation, cutting, back gouging, grinding, repairing, use of special methods, environmental conditions, pre, in-situ, and post weld inspection and testing)

6. Equipment (power sources, welding systems, wire feed systems, pre and post-heating, gas delivery, temperature indicators, ventilation, ovens and quivers, surface preparation, inspection and measuring devices, preventive maintenance, calibration and certification)

7. Welding documentation (record of requirement/technical review; material; welding consumables; welding-procedure specifications; equipment maintenance records; welding-procedure qualification records ; welder or welding-operator qualification certificates; production planning; heat-treatment procedure specification and records; status reports, materials testing procedures and reports; dimensional and inspection reports, reports; concessions, distribution)

repairs and non-conformance

reports, deficiency

records of

8. Crack Management: Involvement of welding engineer and root cause analysis discussed

and agreed with CPY

9. Welder performance review: Weekly review and corrective actions (disqualification, re-

training, follow-up improvements, etc.)

In accordance with welding standards, inspectors shall inspect the below reportable variables as applicable:

• Joint design and configuration • Root Spacing • P-number of the base metal • Welding position • Welding process • Presence or absence, and type of backing • Bevel preparation • Pre-heat • Alignment, max and min • Maximum and median interpass temperature • Speed of travel • Amperage • Polarity • Voltage • Gas flow rate • Wire feed rate • Field Transitions (pipe to forging, C/S to CRA, C/S to Clad, diameter change, thickness

change, bends)

• Consumables and welding equipment (size, type, manufacturer name, certification) • Post weld heat treatment (type, hold time, temperature) • Special processes and considerations

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Actual values of the reportable variables used in the production of each weld shall be recorded on a weld inspection reports, including at a minimum the following:

• Date of welding • Welder(s) identification • Pre-weld fit up verification (max and min) • Inspector(s) identification • Quality review and acceptance

Weld repair rates and repair causes will tracked and reported by worksite, repair causes will be analyzed and reported accordingly.

9.7

INSPECTION & TEST AT SITE

9.7.1 RECEIVING INSPECTIONS FOR EQUIPMENT & MATERIALS

Receiving inspection on equipment and materials at fabrication yard shall be performed along with COMPANY inspection personnel.

Equipment and materials shall be identified as per documentation, test certificates supplied and identification details on the equipment or materials. These products shall be visually inspected for damages, overall dimensions, and preservation checks.

Once documentation is reviewed and found satisfactory, Material inspection report shall be signed by all involved parties. These details with heat ID / identification shall be logged in the inspection database.

Periodic preservation checks shall be performed, and preservation check sheets and calendars shall be updated accordingly.

9.7.2 RECEIVING CUSTOMER-SUPPLIED PRODUCTS AT SITE

Purchase Order of Items for which COMPANY has initiated procurement prior to effective date of the agreement have been novated to CONTRACTOR and, as such, will be subject to inspection as detailed in Section 10.7.1 of this PQP.

9.7.3 FIELD INSPECTION & TESTING

PQM is responsible for arranging the mobilization of QCMs and Quality Control team (QC supervisors, QC the contractual inspectors, Pipe Tallies, etc.), depending on involvement/responsibility, on actual activities to be carried out and on-site mobilization planning (Mobilization Plan / HR Schedule).

Details of field QC Teams’ activities is explained hereunder:

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9.7.3.1 QUALITY CONTROL TEAM DURING FABRICATION/CONSTRUCTION (INCLUDING SUB-

CONTRACTORS)

The PQM defines a QC Team in order to monitor CONTRACTOR’s and SUBCONTRACTOR’s activities, witness inspections as planned in relevant Inspection and Test Plan(s), review resulting records and perform quality walks as deemed necessary. Typically, the QC Team is setup as follows:

• Quality Control Manager:

coordinates QC

supervisors,

SUBCONTRACTOR’s QC manager on any Quality related inspections and monitors/reviews assembly of QA/QC dossier;

liaises with issue, coordinates

• Quality Control Supervisor(s): the number and competence of QC Supervisors are determined by the extent and the complexity of the subcontracted service and are agreed with PM, on the basis of HR mobilization plan.: QC Supervisors monitor the correct implementation of the QCPs, coordinate QC Inspectors within their field of expertise, witness inspections as planned, review and endorse resulting Quality Records, ensure the availability and completeness of all QC records for the QA/QC dossier for their discipline and support QC Manager as per competence.

• Discipline Inspectors: responsible to carry on inspections according with background and

qualification

9.7.3.2 QUALITY CONTROL TEAM DURING INSTALLATION (ON-BOARD VESSELS)

With reference to Installation activities on-board CONTRACTOR’s vessels, the PQM shall define the QC Team depending on actual scope of work and COMPANY’s requirements. The following QC structure normally applies:

• Vessel Quality Coordinator / Quality Control Supervisor: coordinate QC inspectors, monitor calibration of measuring equipment, ensure proper implementation of ITP(s), collect/file/distribute resulting Quality Records, liaise with COMPANY’s Representative on any Quality related issue, monitor on-board SUBCONTRACTOR’s activities, plan inspections/audits and monitor/review assembly of on-board SUBCONTRACTOR’s Final As-Built (As-Installed, As-Removed, etc.) dossier;

• Quality Control Inspectors: during Pipeline Installation, the typical QC team is composed

as follows:

o Welding Inspectors; o o o

(Field Joint) Coating Inspectors; Pipe Tally clerks; Discipline Inspectors (as applicable).

In addition to the above, QC Supervisor maintains a close link with NDT Supervisor in order to ensure proper execution of NDT activities versus ITP(s) and proper issue of all relevant Quality Records. NDT Personnel is coordinated by NDT Supervisor.

9.7.4 EQUIPMENT FOR INSPECTION, MEASURING & TESTING

Inspection and testing as identified in the Inspection and Test Plan(s) shall be carried out using appropriate measuring and monitoring equipment to validate the results; CONTRACTOR shall identify, maintain, control, adjust, and calibrate tools, gauges, instruments and other measuring and testing devices used for activities controlling quality at all location where PROJECT activities are carried out (Fabrication site, Onshore site, Vessels and offshore Platforms). Calibration are performed at established periods as required by device Manufacturer against certified equipment or references, or valid national standards where these exist.

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At all PROJECT locations an “Instrument Calibration Status Log” shall be established and maintained to detail the available measuring and monitoring equipment, their status and the periodic calibrations requirements; specifically, the log shall contain: instrument type;

•

• manufacturer;

•

•

•

•

•

•

•

serial number;

type of calibration;

instrument uncertainty / resolution / measuring range ad declared by the calibration certificate;

reason for calibration: certificate expired, damages or out of calibration, calibration not adequate to the purpose, first calibration, other;

last calibration date;

calibration certificate expiry date;

remarks.

Prior to use in any inspection, the QC Team shall ensure that monitoring and measuring equipment have a valid calibration and that equipment are not visibly damaged. Monitoring and measuring equipment found out of calibration or unsuitable for use shall be adequately identified and segregated in order to prevent its usage. Where PROJECT activities are subcontracted, the SUBCONTRACTOR is responsible to provide all required test and monitoring equipment properly calibrated and maintained. CONTRACTOR QC Team is responsible the SUBCONTRACTOR’s equipment management. CONTRACTOR will assess to SUBCONTRACTOR’s adherence to equipment calibration requirements via periodic assessments and verifications.

verify

9.7.5 FINAL INSPECTION AND TESTING

Final inspection and testing of fabricated items shall include, but not be limited to:

structural completeness,

assembly of all items and appurtenances,

completion of dimension check and resolution of OOTs,

completion of all activities as per approved inspection and test plans,

completion checks completeness, ITRs documentation completion,

resolution of any NC / punch list

• Fabrication completion IRN signature

During Construction/Installation, final inspection and tests shall include, but not be limited to:

completeness of inspection records, in accordance with relevant ITPs completeness of traceability records and relevant as-built data availability of any installation report and mark-up drawing resolution of any NC / punch-list

9.7.6

INSPECTION & TEST RECORDS

Records to be produced during inspection and test activities are identified in the applicable Inspection and Test Plan(s); for each inspection the ITP shall identify the type of records and the template to be used according with PQMS. The original records of inspections carried out at site are systematically collected, kept and registered under the responsibility of the QCM, which assures, by daily checking, the implementation of this collection and recording.

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COMP3 - NFPS OFFSHORE RISER/WELLHEAD PLATFORM & INTRAFIELD PIPELINES PROJECT

PROJECT QUALITY PLAN

Inspection and test records shall then be included in the As-Built Dossier providing evidence of conformity to specified PROJECT requirements. The As-Built Dossier will be progressively and concurrently developed with the progress of the work.

9.7.7 QUALITY WALKS

CONTRACTOR Quality Personnel and Site Management shall conduct and participate in a Site quality walk at each fabrication or construction location on a weekly basis and shall provide to COMPANY a report on identified gaps, recommendations, good practices, findings and plan to correct and/or prevent any noticed/potential deficiency. A Quality walk schedule shall be defined and submitted to COMPANY for APPROVAL prior to commencement of fabrication, installation and Construction activities

9.8 PRE-MECHANICAL COMPLETION

CONTRACTOR shall ensure that all requirements for Mechanical Completion are met (all ITRs/Check Sheets have been issued and logged into the SCDB. all relevant Discipline Completion Certificates have been issued and approved, Mechanical Acceptance Packages are complete), in accordance with Exhibit 6, Section 5.9.

Specifically, CONTRACTOR shall verify that:

• Sub-system Discipline Completion Certificates are signed
• Mechanical Completion ITRs (‘A’ check sheets) are signed
• Document Review and Walk down by COMPANY and CONTRACTOR are performed

“X” and “Y” punches are closed “Z” punches are transferred as “A” punches

9.9 CONTROL OF NON-CONFORMING PRODUCTS

Non‐confirming products identified in any PROJECT phase shall be processed using CONTRACTOR procedure Doc.No TBD Non‐Conformity And Corrective Action Management Procedure. This procedure explains methods for identification, recording, analysis and disposition of non‐conforming products. The system also includes methods to identify, control and isolate the product from fabrication / installation process till non‐conformity is resolved.

NCR metrics shall be continuously tracked as per Section 6.1.2.2 of this PQP and periodically reported to CPY.

PQM shall review quality issues and concerns identified by CTR Quality as well as following COMPANY reviews, audits, surveillance, inspection, Quality walks or assessments and potential issues for preventive action. Based on criticality of issues, appropriate action plan including Root Cause Analysis will be fielded and implemented in consent with CPY and CTR PMT. Remedial action plans for critical issues and NCRs will be implemented after approval from CTR internal departments and CPY. Appropriate evidences will be collected and attached with NCR along with signatures from CTR and CPY representatives for closing the issue.

9.10 HANDLING, WAREHOUSING, PRESERVATION

9.10.1 HANDLING

VENDOR of critical items shall submit its packing, shipping, handling, storage, and preservation procedure for CONTRACTOR review and acceptance. Compliance with such procedure compliance shall be ensured by CONTRACTOR appointed inspectors at VENDOR premises.

Once in the yard, fabrication organization’s warehouse representative shall ensure these items are inspected, documented, handled, and stored in the warehouse as described in the VENDOR procedure.

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

COMP3 - NFPS OFFSHORE RISER/WELLHEAD PLATFORM & INTRAFIELD PIPELINES PROJECT

PROJECT QUALITY PLAN

Handling of in‐process material during fabrication shall be in accordance with Materials Handling and Storage Procedure (Doc.No. TBD). This includes handling of structural modules, tubulars, etc. using cranes, fork‐lifts and other methods. Sufficient quality of international standard‐compliant tools and tackles used for such purpose shall be ensured by CONTRACTOR fabrication team in the yard.

CONTRACTOR shall ensure that vessels used for marine installation purpose are provided with duly certified lifting tools and tackles in sufficient quantity. Lifting cranes are in good repair and are of capacity for the installation work intended. This is part of inspection in pre‐sail away checklist for each vessel. Handling and lifting operations shall be conducted under strict supervision of HSE and installation departments as per PROJECT specific approved procedures.

Linepipes and Subsea cables will be handled, stored and protected in accordance with requirements detailed in “Specification for Stockpiling and Handling Materials”, Doc.200-20-MO-SPC-0009.

Welding Consumables will be handled in accordance with provisions set forth in “Storage and Handling of Welding Consumables”, (Doc.No. TBD).

9.10.2 WAREHOUSING

Equipment and materials storage at fabrication yard’s or construction/installation site’s warehouse shall be done as per VENDOR’s procedures. Temperature/humidity controlled atmosphere, periodic oiling, rotation, cleaning shall be performed (as applicable) and recorded on preservation calendars and check‐sheets. This shall be ensured by random check and/or audits by CONTRACTOR fabrication team and quality team.

Welding Consumables and Painting/Coating materials will be stored in accordance with relevant PROJECT specific procedure.

9.10.3 PRESERVATION

VENDOR of critical items (e.g. instruments, electrical items, etc.) shall have their preservation procedure which shall be followed for preservation during transport, warehousing, erection and commissioning. Temperature/ humidity controlled environment, periodic oiling, cleaning, greasing, rotating mechanical parts (as applicable) shall be performed and recorded on preservation check‐sheets and calendars.

10 QUALITY METRICS

PROJECT performance shall be monitored through PROJECT implementation in order to asses:

• • • • •

COMPANY satisfaction; effectiveness of the processes; conformity to PROJECT quality requirements achievement of the CONTRACTOR’s performance objectives; identify areas of potential improvement

Specific Key Performance Indicator (KPI) are established by CONTRACTOR based on EXHIBIT 5 Appendix Y as described in Section 6.1.2.2.

11 CONTINUOUS IMPROVEMENT PROCESSES & TOOLS

CONTRACTOR shall determine and select opportunities for improvement and implement any necessary actions to meet COMPANY requirement. This shall include but not limited to the followings,

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

COMP3 - NFPS OFFSHORE RISER/WELLHEAD PLATFORM & INTRAFIELD PIPELINES PROJECT

PROJECT QUALITY PLAN

Analysis and Evaluations of:

a) Lessons Learned

b) Audit Findings

c) NCR

d) Corrective Actions & Preventive Actions

e) COMPANY satisfaction

f) Quality Objectives and Performance Metrics

g) The effectiveness of actions taken to address risks and opportunities

h) Performance and effectiveness of the Quality Management Systems

Issues and Complaints raised during the projects

i)

j)

Improvement action plans and completed action reports with evidence shall form part of MQR and those shall be distributed internally and to the COMPANY on periodic basis..

As part of Improvement process, CONTRACTOR will form a PROJECT Quality Steering Team, involving the key personnel of the PMT with the aim to:

• Meet on a monthly basis during all PROJECT execution phases Review quality performance metrics and key quality issues • Identify quality program improvements and adjustments to resources • Promote quality awareness •

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

COMP3 - NFPS OFFSHORE RISER/WELLHEAD PLATFORM & INTRAFIELD PIPELINES PROJECT

PROJECT QUALITY PLAN

Appendix 1

PROJECT QUALITY POLICY

CONTRACTOR’s Quality Policy for the implementation of COMP3 PROJECT is based on the following principles:

• commitment to achieving COMPANY satisfaction and market success by fully meeting quality, time and cost requirements and by collecting and analyzing COMPANY feedback;

• commitment to guaranteeing shareholder satisfaction and increasing business profitability by promoting and implementing continual improvement plans and by adopting a process-based approach designed to ensure the effectiveness and efficiency of the Quality Management System;

• commitment to enhancing, through training and information, awareness of personnel with regard to their contribution to process improvement and effective implementation of the Quality Management System;

• commitment to implementing a Risk Management approach;

• commitment to conducting business with loyalty, fairness, transparency, honesty and integrity and in compliance with applicable laws, regulations, mandatory requirements and international standards and guidelines;

• commitment to a mutually beneficial relationship between CONTRACTOR and its VENDORS/SUBCONTRACTORS in order to enhance the ability of both to create value and meet COMPANY expectations.

CONTRACTOR has consequently adopted a PROJECT Quality Management System in accordance with ISO 9001:2015 Standard as a tool for PROJECT management.

In order to pursue continual improvement and ensure factual approach to decision-making, the following are recognized as essential:

• definition of company process performance indicators and targets, which shall be measurable, communicated to all personnel involved, monitored and updated;

• internal and external customer satisfaction monitoring system.

In addition to the statements within this Quality Policy, the process performance indicators and targets and the analysis of customer satisfaction constitute inputs for the PROJECT management review and allow the identification of actions to be taken and areas for improvement.

PROJECT Director

Date

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Project: Q-32705 - Saipem COMP3 Folder: RFQ Files