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COMP3 SPM QM PRC 00002_B

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

: SOURCE INSPECTION PROCEDURE

COMPANY Document No.

: COMP3-SPM-QM-PRC-00002

CONTRACTOR Document No. :

033764-Z-Z00-00-SPM-QA-P-10003

Discipline

: QUALITY MANAGEMENT

Document Type

: PROCEDURE

Document Category/Class

:

1

Document Classification

:

Internal

B

13-Apr-2025

Issued for Approval

A 03-NOV-2024

Issued for Review

Florin Georgescu Proj. Inspection Coordinator Suresh Thorati / Luca Cicarelli

Jeyaraman Ramasamy Jeyaraman Ramasamy Procurement QC Manager

Caleffi Giacomo

Francesc o Eterno

Digitally signed by Francesco Eterno DN: cn=Francesco Eterno, o=Saipem SpA, ou, email=francesco.eterno@s aipem.com, c=AE Date: 2025.04.16 13:22:50 +03’00’

ETERNO Francesco

Project Director

ETERNO Francesco

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-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

REVISION HISTORY

Revision

Date

Revision Description

A1

01-OCT-2024

Issued for IDC

A

B

03-NOV-2024

Issued for Review

13-Apr-2025

Issued for Review

HOLDS LIST

Hold No

Hold Description

nil

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

TABLE OF CONTENTS

1

1.1

1.2

2

2.1

2.2

3

3.1

3.2

3.3

4

5

6

6.1

6.2

6.3

6.4

6.5

6.6

7

INTRODUCTION … 5

Project Objective … 5

Project Scope … 5

DEFINITIONS AND ABBREVIATIONS … 8

Definitions … 8

Abbreviations … 10

REGULATIONS, CODES AND STANDARDS … 11

Company References … 11

Project Documents … 12

Standards … 12

PURPOSE … 13

AREA OF APPLICATION … 13

RESPONSIBILITIES … 13

PROJECT MANAGER (PM) … 14

PROJECT MATERIAL MANAGER (PMM) … 14

PROJECT QUALITY MANAGER (PQM) … 14

QUALITY CONTROL MANAGER PROCUREMENT(QCMP) … 14

PROJECT SPECIALIST LEADER (PSL) … 15

CONTRACTOR’S ASSIGNED INSPECTOR … 15

QUALITY CONTROL REQUIREMENTS FOR SUPPLIER’S … 16

7.1 PRE-INSPECTION MEETING (PIM) … 16

7.2 MATERIAL CERTIFICATION, IDENTIFICATION AND TRACEABILITY………………………18

7.3 INSPECTION AND TEST PLAN (ITP) … 19

7.4 INSPECTION LEVEL ASSIGNMENT … 20

7.5 INSPECTION AND TEST ADVANCE NOTICE … 21

7.6 INSPECTION WORKS … 22

7.7 TEST REPORTS (CERTIFICATES) … 23

7.8 NON-CONFORMITY MANAGEMENT … 2424

7.9 INSPECTION AT SUPPLIER’S PREMISES … 25

7.10 MANAGING PUNCH LIST / INSPECTION RELEASE NOTE … 26

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

7.11 MANUFACTURING RECORD BOOK…………………………………………………………27

7.12 PROCUREMENT INSPECTION DATA BASE … 2827

8

9

TPI ASSIGNED BY SUPPLIER … 28

INSPECTION AND TESTING REQUIREMENTS … 28

9.1 INSPECTION AND TESTING … 28

9.2 INSPECTION NOTIFICATION (IN) … 2928

10

CONTRACTOR’S TPI SOURCING PROCESS … 3029

10.1 SOURCE INSPECTION PROCESS … 3029

10.2 SOURCE INSPECTION FLOW CHART … 3131

11

ANNEXES … 3434

11.1

INSPECTION RELEASE NOTE SAMPLE (MINIMUM REQUIREMENT) … 3534

11.2 NON-CONFORMITY REPORT SAMPLE (MINIMUM REQUIREMENT) … 3736

11.3 PUNCH LIST FORM SAMPLE (MINIMUM REQUIREMENT) … 3938

11.4

INSPECTION NOTIFICATION FORM SAMPLE (MINIMUM REQUIREMENT) … 4039

11.5

ITP TYPICAL FORMAT FORM SAMPLE (MINIMUM REQUIREMENT) … 4241

11.6

INSPECTION REPORT SAMPLE (MINIMUM REQUIREMENT) … 4342

11.7 PRE-INSPECTION MEETING REPORT SAMPLE (MINIMUM REQUIREMENT) … 4645

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

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]

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

PL1LS, 38”PL610LS]

  1. 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

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

• 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 (East)- FO Tie-in

(East)/BVS

Power & Control modifications, LQ6S/LFP 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.

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

• 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. topside existing and

In-situ abandonment of existing Topside/subsea Composite Cables RT-WHP2S, RT-WHP3S, Topside/Subsea FO cable RT-BRXWHP1.

• Decommissioning at

Figure 1.2.1: NFPS Compression Project COMP3 Scope

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

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.

DELIVERABLES

GOODS

All products (drawings, equipment, services) which shall be submitted by CONTRACTOR to COMPANY at times specified in the contract. Material, component, device, functional unit, machine, equipment, subsystem or system manufactured by a SUPPLIER and required to carry out Saipem Group activities.

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

Inspection and Test Plan

Inspection Release Note

Inspection Report

Material Certificates

MAY

Non-Conformity Report (NCR)

Notification of Tested Material

Packing List

Project Material Manager

Punch List

Purchase Order (P.O)

Quality Control Manager Procurement

SHALL

SHOULD

The list of inspection activities provided by SUPPLIERs, completed with reference documents, acceptance criteria, verification documents, inspection frequency and witnessing parties Document identifying Goods that have passed the inspection and the purchase order requirements (drawings and that meet specifications). The document issued by inspector which describes the surveillance activities performed by the inspector; it shall be issued after each examination, inspection, or test visit. Documentation and certificates issued by the SUPPLIERs after intermediate and ITP, final Specification, QG and International Standard

tests, as required by approved

Verbal form used to indicate a course of action permissible within the limits of the document.

Document prepared and issued by the Inspector showing the non- conformities observed, the possible solutions and the clearance of the corrective actions. Upon acceptance of material and receipt of IRN from Inspector, Contractor shall issue Notification of tested material acceptance to SUPPLIER for further shipment. Document containing all the information related to the shipment (lot numbers, weight, size, marking, packaging, description of items, etc.). Person within a project responsible for planning and coordinating post order management for materials up to their delivery to the site. The Project Material Manager also ensures the integration of these activities with project objectives, liaising with the Project Manager, the Procurement, Engineering, Management and Construction functions and their representatives on the project, as well as with the Client. Document issued by the Inspector during inspections in order to track the missing activities that need to be completed on the Material prior to shipment or accepted by the CONTRACTOR to be completed at Site with open NCR Document issued by the Procurement Department for the purchase of materials and equipment. This document and relevant attachments, defines the parties’ mutual obligations of CONTRACTOR and SUPPLIERs. Person within a project responsible for Purchased Materials Quality Control activities.

Verbal form used to indicate requirements strictly to be followed to conform to the document.

Verbal form used to indicate that among several possibilities one is recommended as particularly suitable, without mentioning or excluding others, or that a certain course of action is preferred but not necessarily required.

Technical Documents

Drawings, calculations, specifications, procedures, technical reports, etc.

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

SUPPLY / WORK

The provision of goods / the performance of services, or both.

SUB-SUPPLIER/ SUB-SUPPLIER

SUPPLIER/ SUPPLIER

A person, company, or group that is the recipient of an “indirect” purchase order who sells materials and equipment that are manufactured, fabricated, assembled, and / or packaged for a SUPPLIER. A person, company, or group that is the recipient of a “direct” purchase order who sells materials and equipment that are manufactured, fabricated, assembled, and / or packaged for COMPANY through CONTRACTOR. In this context, a “direct” order is one issued to a Supplier by a CONTRACTOR or COMPANY; an “indirect” order is one issued by a Supplier (recipient of a direct order) for materials and equipment, fabricated components or sub-assemblies to another Supplier.

2.2 Abbreviations

Code

Definition

FTC

IRN

ITP

KOM

MR

MRB

NCR

NDT

NTM

PM

PMI

PMM

PMT

PCR

PD

Final Test Certificate

Inspection Release Note

Inspection Test Plan

Kick Off Meeting

Material Requisition

Manufacturing Record Book

Non-Conformity Report

Non-Destructive Testing

Notification of Tested Material

Project Manager

Positive Material Identification

Project Material Manager

Project Management Team

Procurement Criticality Rating

Project Director

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

PIM

PM

PMC

PO

PQM

PR

PSL

QCMP

RFQ

QA

QC

QMS

SAP

TM

WPS

PQR

TPI

Pre-Inspection Meeting

Project Manager

Project Material Classification

Purchase Order

Project Quality Manager

Purchase Request

Project Specialist Leader

Quality Control Manager - Procurement

Request for Quotation

Quality Assurance

Quality Control

Quality Management System

Integrated company software system

Technical Manager

Welding Procedure Specification

Procedure Qualification Record

Third Party Inspection Organization

3 REGULATIONS, CODES AND STANDARDS

3.1 Company References

S. No

Document Number

Title

LTC/C/NFP/5129/20

Contract Agreement

EXHIBIT 5

Project Instructions

PRJ-PJL-PRC-004

PRJ-PJL-PRC-005

Facilities Engineering Numbering Procedure

and SUPPLIER Document

Facilities, System and Unit Number Codes and Descriptions Procedure

PRJ-PJL-PRC-006

Project Information Handover Procedure

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

PRJ-PJL-PRC-048

PRJ-PJL-PRC-049

Facilities Documentation Metadata Requirements Procedure

Project Information Handover, Verification and Acceptance Procedure

3.2 Project Documents

S. No

Document Number

COMP3-SPM-QM-PLN- 00001

COMP3-SPM-QM-PRC- 00004

COMP3-SPM-QM-PRC- 00003

3.3 Standards

PROJECT QUALITY PLAN

MANAGING NON-CONFORMANCE PROCEDURE

PROJECT QUALITY REQUIREMENTS FOR SUPPLIERS

S. No

Document Number

Title

ISO 9000:2015

Quality Management Systems Vocabulary

  • Fundamentals and

      ISO 9001:2015
    

Quality Management Systems - Requirements

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

4 PURPOSE

This document describes the Source Inspection Requirements defined by Contractor that are to be followed and complied to ensure that the level of Quality specified for the Scope of Supply will be achieved.

The purpose of this procedure defines the criteria and functional responsibilities for planning, implementation, and execution of QA/QC activities during Manufacturing, Inspection and testing at SUPPLIERs locations and to ensure that all purchased equipment, materials and services required for this project are fully in compliance with project specification and quality requirements.

In addition to above, SUPPLIERs shall comply and ensure that pertinent information, documents and records are made available to the various involved functions on the project and to the CONTRACTOR and COMPANY Representative.

SUPPLIER shall notify Contractor for resolution, if there is a conflict between this procedure and other applicable documents / projects specification.

This document shall be made available to all project personnel including SUPPLIERs / Third parties / agencies and shall be attached to Material purchase requisitions.

5 AREA OF APPLICATION

This document applies to all Quality Requirements for SUPPLIER/SUPPLIER activities to be conducted during this project execution and shall be updated according to project needs if necessary.

This document shall be considered as an integral part of the PO/ MR along with documents herewith referenced in Section 3.

6 RESPONSIBILITIES

SUPPLIER is responsible for the implementation and management of the work process for Quality Assurance and Quality Control relevant to his work scope on the Project and to apply the Quality Requirements stated in this document and in the COMPANY/Project documents referenced in the Purchase Order between Saipem and SUPPLIER and in the Project Documentation.

It is supplier responsibility to control and supervise their sub-suppliers that Sub-supplier comply with the quality requirements. CONTRACTOR to ensure and supervise that SUPPLIER(s) comply with the Quality requirements expressed in this document.

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

6.1 PROJECT MANAGER (PM)

He is responsible for the following:

  • Coordinate the engineering and construction activities liaising with relevant disciplines

mangers.

  • Support the Project Director in the coordination of the procurement activities.
  • Manage subcontracts.

Involved in Interface management both external and internal.

6.2 PROJECT MATERIAL MANAGER (PMM)

Reporting to Supply Chain Manager,

He is responsible for the following:

  • Planning and coordinating post order management for materials up to their delivery to the

site.

  • Ensures the integration of these activities with project objectives, liaising with the Project Manager, Procurement, Engineering, Management, Construction functions and their representatives on the project, as well as with the Client.

  • Ensures delivery of project material to site as per project schedule.

6.3 PROJECT QUALITY MANAGER (PQM)

Reporting to Project Director,

He is responsible for the following:

  • The Quality Manager is responsible for overseeing of all quality-related activities of the

CONTRACTOR in particular, his responsibilities include the following:

  • Plan and Implement Project Quality Management System activities within the project.
  • Plan and ensure the project quality Control activities implementation.
  • Act as focal point for quality related matters within the project

6.4 QUALITY CONTROL MANAGER PROCUREMENT(QCMP)

Reporting to Project Quality Manager,

He is responsible for the following:

  • Manage and coordinate with all Procurement QC Supervisors assigned to the project.
  • Review and assign Inspection level as per Procurement Criticality rating for materials.
  • Review and update PCR during Monthly meeting and liaise with COMPANY for risk

assessment findings.

  • Communicate / coordinate with QG Representative for all procurement quality related issues

and suggestions for improvement.

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

  • Coordinate with project personnel and SUPPLIERs / manufacturer for discussion and resolution of non-compliances arising with SUPPLIERs and manufacturers Communicate inspection results with QG and also recommend corrective actions, if any

  • Shall ensure approval of any repair procedure from COMPANY prior to commencement of

repair work.

  • Shall ensure any disposition to “USE-AS-IS” is approved by COMPANY and documented on

a concession request.

6.5 PROJECT SPECIALIST LEADER (PSL)

  • Reporting to Technical Manager
  • He is responsible for the following:
  • Manage Engineering Project team and technical documentation.
  • Ensure timely issue and approval of MR and relevant technical procedures / plans,

Specifications, Drawings etc. Issue of correct PRs & TBEs.

  • Ensure all technical, quality & Inspection requirements are included in MR/PR/PO.
  • Suggest and approve Corrective actions for the non-compliances, if any.

6.6 CONTRACTOR’S ASSIGNED INSPECTOR

Contractor’s assigned inspector at SUPPLIER/sub-SUPPLIER premises shall report to the Contractor’s Inspection Officer / Quality Lead / QCMP. Within the limits of the relevant specialization and qualifications, his responsibilities include but are not limited to below:

  • Verify the established quality on materials and equipment.
  • Verify the implementation of the applicable inspection requirements as per approved ITP,

Purchase order and CONTRACTOR material requisition.

  • Attending Pre-Inspection Meetings as applicable and witnessing the inspections and tests to

monitor the work performance at the manufacturer’s shop.

  • Demonstrate by documented records that the work has been carried out and inspected to

satisfy the required technical prescriptions.

  • Verify the adequacy of SUPPLIER’s QC activities and methods used during manufacture

and inspection.

  • Sign and endorse all the inspection and test records and issue inspection reports &

inspection release notes.

  • Contractor’s assigned inspector shall use inspection report format attached to this document

as attachment # 6 to issue the inspection report.

CONTRACTOR Inspector shall submit Inspection report to CONTRACTOR with results of all inspection activities performed in accordance with approved Inspection and Test Plan with in 48hrs of inspection date.

INSPECTOR assigned on behalf of CONTRACTOR shall sign the Interim, FAT and Final Inspection assessment check list / SUPPLIER Test reports (prepared by the SUPPLIER) as per Inspection Test Plan and submit along with Inspection Reports to CONTRACTOR.

CONTRACTOR Inspection Report/s shall be submitted weekly to COMPANY.

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

7 QUALITY CONTROL REQUIREMENTS FOR SUPPLIER’S

The execution by SUPPLIER / SUPPLIER Quality Control shall be in accordance with, but not limited to, the requirements and instructions of all applicable Company requirements, International Codes and Standards, and project specifications mentioned in the purchase order including requirements specified under the clause 8 of Exhibit 5.

All activities shall be fully documented and finalized to the scope of inspection as per purchase order requirements.

SUPPLIER shall ensure all works necessary for the preparation and performance of inspections, examinations and tests, including equipment, tools (i.e.: pressure gauges, temperature measuring equipment, NDE equipment, measuring device, etc.), scaffolding and protection to enable CONTRACTOR / COMPANY representatives to safely witness the activities.

SUPPLIER shall issue inspections, examinations and tests reports immediately after the completion of each activity. All reports shall be approved by the SUPPLIER QA/QC approved personnel prior submission to CONTRACTOR for REVIEW or APPROVAL. The signature of CONTRACTOR or other Parties on the inspection, examination and test documents (certificates, records, etc.) do not release the SUPPLIER from its responsibilities.

SUPPLIER shall make available to CONTRACTOR / COMPANY representative the applicable international standards / codes required for the execution and validation of inspection, examination and tests.

SUPPLIER shall not commence any QC activities until the relevant Quality Control procedures are at least approved with Code B (approved with comments) by CONTRACTOR.

When local laws apply, SUPPLIER shall be responsible to comply with all mandatory regulations and provide relevant certification to the full satisfaction of local authorities.

7.1 PRE-INSPECTION MEETING (PIM)

The purpose of the meeting is to promote and co-ordinate effort by CONTRATOR and SUPPLIER, to transfer previous experiences and to prevent problems which might result in rejection or Non- Conformance such to compromise the quality level and the final delivery schedule. Also, to verify and highlight, if any, potential discrepancies among the order requirements, specifications, and SUPPLIER interpretation of those requirements. The meeting is also intended to clarify and confirm all requirements and criteria for any inspection and tests before commencement of fabrication, should any queries unresolved.

Prior to the commencement of any inspection work the CONTRACTOR shall call for a Pre- Production/Pre-Inspection Meeting with participation of SUPPLIER and SUB-SUPPLIER as applicable goods failing under for Inspection Level 1+, 1, 2, and 3.

SUPPLIER shall notify the PIM 15 calendar days in advance using project notification form. COMPANY’S Engineering and Quality representants shall be called for the PIM.

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The meetings shall be held at SUPPLIER location or, where decided by QCMP, may be performed at major Sub-SUPPLIER premises.

This meeting shall take place when sufficient Engineering / Quality Procedure(s) have been developed by the SUPPLIER, ITP issued and approved (or approved with comments) and always prior to commence of any inspection work.

It is a SUPPLIER duty to have appropriate personnel available (specialist engineer and QC representative) for the PIM.

Fabrication or manufacturing activities shall not start prior to Pre-Inspection Meeting.

A typical PIM agenda is as follows:

Introduction

Inspection Notification

➢ ➢ Safety Induction by SUPPLIER ➢ Project Organization, presentation and registration of the persons responsible for PO. ➢ ➢ Third party Inspection Authority involvement ➢ PO review and completeness with applicable specifications. ➢ Document Status and review (Design and Engineering activity status) ➢ Review application

SUPPLIER’s QA

system

and

this

of

to

P.O.

Review of QC system (Procedures, Method Statement, etc.) applicable for the PO.

➢ Review of inspection and test plan (ITP) status. ➢ SUPPLIER’s traceability and certification of parts and products. ➢ List of sub-suppliers and sub-order schedule used for this P.O. ➢ Production & test schedule (Monthly progress report issue/review) ➢ Welding procedures / qualification and welder’s records ➢ Equipment testing procedure. ➢ Concession Request Procedure (exceptions / deviation) ➢ NCR procedure ➢ MRB Index and SUPPLIER Engineering Documentation. ➢ Any other business ➢ Lessons learned (if any) ➢ Shop tour

QCMP/Quality Lead with the assistance of the specialist inspectors, should amend and/or adapt the agenda as necessary to reflect the specific type of materials/equipment in question. Refer to the typical Pre-Inspection meeting form attached to this document in Chapter 11.7. Decisions taken during the PIM must be accepted and confirmed in writing by all the parties involved: SUPPLIER, CONTRACTOR, COMPANY and any THIRD PARTIES. All actions decided and agreed during the PIM must be tracked and monitored, with status updates provided in the inspection reports during the fabrication phases, until the actions are completed.

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7.2 MATERIAL CERTIFICATION, IDENTIFICATION AND TRACEABILITY

SUPPLIER shall develop effective procedures for the material management and material identification and traceability in accordance with the relevant standards, project specification requirements, SUPPLIER recommended storage and preservation requirements for materials, parts and components, including partially fabricated assemblies. Identification shall be addressed either by using tags, stamps, color coding, stencils and labels or by traceability records throughout fabrication / assembly, erection, installation, repair, modification and use of materials and equipment’s.

Where full traceability is a specified requirement, SUPPLIER shall maintain, control and record the unique identification of the origin of materials and components throughout fabrication, erection, installation, repair, modification and use. The procedure shall require that verification of traceability of material and components be made prior to assembly / installation.

SUPPLIER shall provide sufficient and dedicated personnel to monitor and be in-charge of the receipt, handling, loading, unloading, transportation, inspection, storage and Installation of all MATERIALS and equipment.

Steel materials & welding consumables shall be supplied with certification in accordance with EN 10204:2004, either 3.2, 3.1, 2.2 & 2.1 as specified in the COMPANY specification 200-20- QM-PRC-00099 and Material Requisition. Traceability shall be maintained throughout the manufacturing process. Traceability records shall be kept and maintained for inclusion in the MRB.

The SUPPLIER shall verify all mill / product certificates. Mill certificates shall be submitted for CONTRACTORs REVIEW / acceptance before the start of production (cutting in manufacturing workshop).

Prior to incorporation into the work, SUPPLIER shall remain responsible for ensuring that all material certificate and material inspection documents of the type specified in the purchase order, or sub-contract, are produced, and that the specified traceability levels are achieved.

This responsibility extends also to SUB-SUPPLIERS and STOCKISTS.

SUPPLIER shall guarantee the traceability of any QC document (material certificates and test reports).

Each QC documents relevant to material specified in the purchase order or sub-contract shall be identified, as minimum, bearing Contractor’s Job number, Contractor’s Purchase Order number and Purchase Order item number.

All records shall be traceable to the equipment/instruments via equipment serial number(s) and shall be identified by equipment serial number, part number and description etc.,

Material test reports shall fully specify the results of all tests i.e., mechanical, chemical and visual that were carried out for each supply.

Relevant heat, cast and test number for each item supplied shall also be stated.

For all POs relevant to bulk material, independently from the relevant Inspection Levels

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associated, before each Material Shipping, SUPPLIER shall send by email to Material Manager the full Material Traceability Record.

This action is required in order to obtain a complete traceability/correspondence among materials and relevant documents:

  • Order N.

  • Order Item No#

  • Manufacturer

  • Packing List N.

  • Material Description

  • Heat Number

  • Material Certification Number

  • Other Certifications (if applicable)

7.3 INSPECTION AND TEST PLAN (ITP)

SUPPLIER shall issue an Inspection and Test Plan (ITP) as per the requirement and instructions of the applicable Codes and Standards, Contractor’s specifications and other requirements called for in the Purchase Order. Refer TO THE typical ITP form presented in Chapter 11.5.

SUPPLIERs shall identify the minimum inspection and testing requirements to ensure that all purchased equipment, material and services are fully compliant with specified requirements. SUPPLIER shall submit for each material, equipment or part of it, the inspection notification at least 15 days in advance for every agreed ITP’s Hold and Witness points where there is not a resident inspector.

The form to be used shall be such to accommodate in chronological way / construction sequence from initial drawing to final testing the appropriate activities including, for each of them:

• Controlling specifications

• Acceptance criteria

• Certification / documentation / verifying records required

• Frequency of inspections / tests

•

Involvement of various parties including hold and witness points.

Provision shall be made for mark-up for Company, Third Party Certification Agency (if any), CONTRACTOR, SUPPLIER related witness, review and hold points.

SUPPLIER’s and Sub-SUPPLIER’s ITP shall be submitted to CONTRACTOR and COMPANY for review and approval prior to starting of manufacturing activities.

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The Inspection Release activity shall be a ‘HOLD POINT’ for CONTRACTOR in all SUPPLIER Inspection and Test Plan.

The following categories of “intervention / governance” points shall be used on the Inspection Test Plan (ITP) for all involved parties:

N°

Inspection Point

ID

1

Hold Point

H

2

Witness Point

W

3

Surveillance Monitoring

SM

4

Review

R

Description

CONTRACTOR/COMPANY, and other involved party, shall be formally notified by the SUPPLIER with a contractually agreed forward notice regarding the time and place of performance of the inspection or test; unless the SUPPLIER receives a written waiver in this respect, such inspection or test shall be performed only with the attendance of the notified party. 100% Witness. CONTRACTOR/COMPANY, or other involved party, shall be FORMALLY notified by the SUPPLIER with a forward notice regarding the time and place of performance of the inspection(s) or test(s); SUPPLIER shall perform the inspection or test irrespectively of the non- attendance of the notified party. No notification and the COMPANY presence is not mandatory. CONTRACTOR/COMPANY may choose to attend at its own discretion. SUPPLIER and CONTRACTOR can proceed in absence of CPY representative. 100% REVIEW. SUPPLIER shall submit for REVIEW the indicated documentation and/or quality records.

5

Approval

A

SUPPLIER shall submit for Approval the indicated documentation.

7.4 INSPECTION LEVEL ASSIGNMENT

Inspection level shall be assigned based Procurement Criticality Rating (PCR) derived from the procurement criticality matrix. The type and amount of source inspection required are defined by the inspection level that is assigned to each product.

CONTRACTOR shall determine inspection levels and obtain approval of inspection levels from COMPANY prior to placement of purchase order.

Procurement Criticality rating and Inspection level shall be specified in MR and made as part of RFQ, Purchase order documents.

Procurement Criticality rated (I) through to (IV) with corresponding COMPANY and Contractor Inspection Levels. A combination of which; are used to prioritize Contractors and COMPANY oversight and surveillance for procured equipment and materials as per below table.

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PCR Inspection

Level

Inspection Level Definition

COMPANY

CONTRACTOR

Lead QC Inspector:

Resident Inspection:

I

1+

Documentation verification and attends all ITP points

Full stage Inspection as below plus full-time resident Inspector(s)

QC Inspector:

Full Stage Inspection:

I or II

1

Documentation verification and attends all ITP points

Minimum 2 inspection visits per week and all selected ITP points

QC Inspector:

Systematic Stage Inspection:

II

2

Documentation verification and attends selected ITP points

Minimum 1 inspection visit per week and all selected ITP points

III

3

QC Inspector:

Selected Stage Inspection:

Random visits for documentation and the witness of selected ITP points and tests.

Selected ITP points, Factory Inspection Test & Final Inspection

IV

4

QC Inspector:

FAT and final inspection

FAT and Final Inspection only

IV

No Inspection

Document review where required

No Source Inspection – Document review only (No Issuance of IRN)

COMPANY reserves the right to increase inspection levels at its sole discretion with no cost or schedule impact.

7.5 INSPECTION AND TEST ADVANCE NOTICE

SUPPLIER shall notify CONTRACTOR’s Inspection Coordinator / Quality Control Manager / PMM about equipment/materials readiness for testing.

Notification requirements are as follow:

SUPPLIER shall submit for each material, equipment or part of it, the inspection notification in

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advance for every agreed ITP’s hold and witness intervention points.

For all Witness points, SUPPLIER shall provide 15 Calendar days advance notice where there is no resident CONTRACTOR/COMPANY Inspector or 24 hours’ notice where there is a resident CONTRATOR/COMPANY inspector.

For all Hold points, SUPPLIER shall provide 15 Calendar days advance notice where there is no resident CONTRACTOR/COMPANY Inspector, or 48 hours’ notice where there is a resident CONTRATOR/COMPANY inspector.

For all Monitoring / Surveillance Point, SUPPLIER shall notify CONTRACTOR as per agreed ITP, however CONTRACTOR / COMPANY may choose to attend activity at any time at its own discretion, SUPPLIER may proceed with activity.

It is CONTRACTOR’S responsibility to inform Company and any other attendant about schedule and confirm to the SUPPLIER the agreed date of intervention.

Notification of inspection shall be done via e-mail by means of the attached Inspection Notification Form. Supplier shall use inspection notification form attached to document as presented in Chapter 11.4.

Any delay or impact arising from late SUPPLIER’s notification/cancellation shall be at SUPPLIER responsibility and charges.

SUPPLIER and Sub SUPPLIERs shall grant free access to working place and relevant premises to Contractor/Company representative/inspector, or any nominated Third-Party Inspection Agency entrusted by Contractor/Company for all QC activities relevant to the work.

7.6 INSPECTION WORKS

SUPPLIER, as a minimum, shall carry out and certify all the inspection activities required in the approved ITP to ensure effective control at required quality level. Contractor, Company, Third Party Inspection Agency when foreseen by the ITP, will attend the inspection and tests.

SUPPLIER to provide VDR with list of applicable documents to inspector during inspection assignment including earlier approved deviations/ concession request / TQ if any and it is responsibility of supplier to ensure and use correct latest approved documents/drawings during the inspection and verified by Inspector.

SUPPLIER shall provide approved copy of ITP, technical documentation, procedures, and any other document pertinent to the inspection and test to the inspector.

Contractor will determine the levels of inspection to be implemented, by the use, service, safety criteria, complexity of the equipment and materials based on Company procurement criticality matrix and requirement.

In cases where an operating and/or performance test is required, SUPPLIER shall issue for Contractor/Company review and acceptance, a Factory Acceptance Procedure which details description, methodology and acceptance criteria.

Prior to performing any weld repair on wrought material or any major weld repair on cast material, the SUPPLIER shall submit details of the proposed weld repairs for Contractor/Company approval

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along with the relevant Welding Procedure Specification (WPS) and Procedure Qualification Record (PQR).

If required by the specific material specification, after weld repair the material shall be suitably heat– treated and shall undergo the required NDT.

The Contractor/Company or their TPI may require that additional Inspection and testing be made in the event of:

➢ A material used in the project cannot be identified. ➢ A reasonable doubt exists about its authentically of its identity.

7.7 TEST REPORTS (CERTIFICATES)

SUPPLIER shall issue all certificates/reports for the performed tests.

SUPPLIER shall submit all the certificates/reports and Quality records listed and referenced in the ITP(s) to the Contractor’s Inspector for review & sign-off.

The Test Report/Certificates shall be filled up with all information required to record the details of the Test activity performed. For this purpose, the Certificates/Test Report shall be compiled with all information below indicated, as well as traceability and numbering information and data relevant to the test performed such as but not limited to:

➢ Test checklist. ➢ Test details and condition. ➢ Applicable parameters. ➢ Reference acceptance criteria. ➢ Tolerances. ➢ Test results and/or evaluation. ➢ Test date. ➢ etc.

The Certificate shall be univocally coded.

SUPPLIER shall distribute copies of Certificate to all signatory and provide for an orderly collection, filing and distribution of all Certificates and prepare quality records for final documentation hand over.

Any certificate produced after inspections shall be color scanned at the minimum resolution of 300 dpi, producing a PDF file. This is also applicable to all scanned documents to ensure documents readability.

SUPPLIER shall scan the certificates daily, just after the last signature, and send them immediately to CONTRACTOR’ Quality department by the means agreed at their facility, (EMAIL, CD Rom, etc..) for the electronic filing.

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SOURCE INSPECTION PROCEDURE

7.8 NON-CONFORMITY MANAGEMENT

All non-conformities on materials and/or equipment detected during fabrication will be handled in accordance with CONTRACTOR PROJECT MANAGING NON-CONFORMITY PROCEDURE- COMP3-SPM-QM-PRC-00004 issued for this project.

All non-conforming materials or products must be recorded, with the root cause identified and corrective actions implemented to prevent recurrence, as applicable.

Material physical deficiencies related to procurement shall be recorded on a Non-Conformity Report, this shall record all relevant details including but not limited to location, system, sub-system, specification requirements, actual situation, proposed solution.

CONTRACTOR to maintain a log of non-conformities for the NCRs issued to the SUPPLIERs. The log shall include the material and/or equipment identification, the description of the non- conformity, the originator, the location, non-conformity disposition and corrective action description, NCR issuing status and close out dates.

SUPPLIERs shall segregate all non-conforming materials and assemblies to a clearly designated rejection area or, as appropriate, to ensure identification and traceability of the item subjected to non-conformity procedure.

SUPPLIERs shall rework or repair and re-inspect items in accordance with approved non-conformity disposition and CONTRACTOR approved method statement and procedures.

SUPPLIER NCRs with resolution as “Accept as it is“ shall be approved by CONTRACTOR and COMPANY through concession request.

If SUPPLIER fail to identify, record or act on non-conforming or defective Work, then CONTRACTOR reserves the right to issue a Non-Conformance Report against the SUPPLIER, Contractor’s assigned inspector or representative shall use the NCR form as directed in COMP3-SPM-QM-PRC- 00004 (refer to the NCR form presented as sample in Chapter 11.4).

Non-conforming items detected by the SUPPLIER shall be addressed by issue of a supplier’s own internal Non-Conformity Report and shall be managed in compliance with supplier internal non - conformity management procedure. The supplier shall maintain a project dedicated NCR Control Log for all NCR issued. Any eventual corrective action shall be identified, recorded, authorized, and REVIEWED by competent qualified personnel and forwarded to CONTRACTOR.

The CONTRACTOR Assigned Inspector shall:

  1. Prepare the Non-Conformity Report as per project NCR template and attach the relevant inspection reports detailing the occurred non-conformity and possible solution. All non- conformity materials or products found must be recorded, identifying the root cause and corrective actions to prevent recurrence. Products or materials with non-conformity status must be clearly identified and separate from use. All non-conformities are to be effectively closed out before delivery of goods.

  2. Issue the Non-Conformity Report directly to the Manufacturer/SUPPLIER.

Manufacturer/SUPPLIER shall propose its action within 48 hours and send copy of NCR to

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QCMP & Responsible Function.

  1. Verify that the SUPPLIER has taken all action required to solve the non-Conformity and

report it.

  1. Ensure that Manufacturer/SUPPLIER follow NCR disposition and sign the NCR after

satisfactory check.

  1. Send copy to QCMP and Responsible Function for final NCR file close out.

  2. Ensure that close out NCR is received, signed by the Responsible Function and QCMP

and included in the dedicated section of the MRB.

Note: - When NCR is raised by the CONTRACTOR Assigned Inspector, SUPPLIER representative shall sign the report to acknowledge receipt whether he agrees with the content or not.

The QCMP shall:

  1. Evaluate with Project Specialist Leader the proposed SUPPLIER solutions, as for their

impact on final quality of materials and their conformity.

  1. Inform MM, Expediter, PQM about non-conformity and shall copy it to the Company for approval before commencing the further activity. The Corrective Action and Preventive Action shall be included in the NCR for COMPANY review and approval.

  2. Ensure that the non-conformity has been managed in a controlled manner.

  3. Approve the NCR.

  4. Sign the NCR close-out and send / transmit a copy of NCR closeout to Company for information. All closed out NCRs are subject to be audited/review by CONTRACTOR and/or COMPANY prior to any FAT or IRN issuance.

  5. Ensure that, the SUPPLIER repair of non-conforming item(s) shall be in accordance with

documented procedure acceptable to the Contractor and Company.

Non-conformance shall be resolved by one of the following actions:

  1. Reject and replace.

  2. Rework to a conforming standard and re-inspect.

  3. Repair to an acceptable standard and re-inspect – a Method Statement or Quality Procedure shall be prepared for each repair method, including acceptance criteria, and submitted for Contractor and Company approval.

  4. Accept as-is as a Concession. This shall be documented on a Concession Request

which shall be submitted for Contractor and Company approval.

7.9 INSPECTION AT SUPPLIER’S PREMISES

During the manufacturing phase when the inspections are foresees as per approved inspection and test plan, SUPPLIER shall issue the inspection notification to CONTRACTOR project inspection

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coordinator with schedule of inspection activities, agrees frequency / Interventions and dates of inspection as per approved inspection and test plan.

The internal and/or Agency Inspector carries out the inspections/tests assigned, ensures the inspection status of inspected Goods can be identified and stamps/signs the Test Report issued by the SUPPLIER and relevant Material Certification. Inspector then prepares a complete Inspection Report using the appropriate project inspection forms and sends it to the project inspection coordinator.

The project inspection coordinator is responsible to check, enter in system and distribute IR.

The IR result can be:

Acceptable – If the outcome of the inspection / test is positive.

Not complete - missing activities and/or materials, missing or non-approved documentation and/or unresolved issues emerge during inspection/testing, if it is the final inspection the inspector issues a Punch List, refer to below paragraph 7.10.

Not ready (pending) - it is not possible to perform the inspection/test, the internal/Agency Inspector must promptly inform the project inspection coordinator and report to him the reasons why these activities could not be carried out. The project inspection coordinator alerts Expediter in charge of PO, records and enters the no-inspection and the reasons on the system. project inspection coordinator agrees with the SUPPLIER on the new date on which the activities will be carried out, and supplies instructions to the internal/Agency Inspector accordingly,

Not acceptable – If the outcome of the inspection /test is not positive, and if required / applicable, it is requested the issuance of an NCR, refer to paragraph 7.1.7

Material/Inspection Release Note (IRN) shall be prepared by CONTRACTOR after the verification that the results of relevant tests are in conformance to Purchase Order requirements. This verification is performed on the results of witnessed tests and/or SUPPLIER documentation review.

Contractor’s assigned inspector shall use IRN form with a sample presented in Chapter 11.1.

Inspection Release activity shall be a ‘Hold Point’ for CONTRACTOR/COMPANY Inspector.

7.10 MANAGING PUNCH LIST / INSPECTION RELEASE NOTE

Punch List issued by Inspector during final Inspection/Testing lists the activities to be completed by the SUPPLIER. This punch list is to be signed by the SUPPLIER and the Inspector during final inspection in order to agree and common understanding of the actions to be performed by SUPPLIER at its own cost to complete the PO technical requirement. The Punch List is attached to the Inspection Report. In this case IR is issued as “not ready / pending”.

Inspection Release Note and NTM shall be issued only when, SUPPLIER has provided evidence that the pending issues in the Punch List have been closed out, if deemed necessary by the CONTRACTOR, once an additional inspection has been performed with a positive outcome.

In the event of any incomplete or non-conforming work is required to be transferred to Site, this shall require prior authorization by be clearly documented on a Punch List and shall

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CONTRACTOR/COMPANY.

Any outstanding work shall be captured on an approved Punch List, a Carry-over Work Plan and shall be documented in MRB unless otherwise instructed by CONTRACTOR/COMPANY.

CONTRACTOR shall submit outstanding or carry-over work punch list to Company prior to Release. CONTRACTOR & COMPANY inspector shall verify and endorse the Punch List.

CONTRACTOR shall ensure all the SUPPLIER documents are approved as minimum in Code A or at least in Code B. In case, the documents are still in Code B, CONTRACTOR & SUPPLIER shall ensure that Code B comments are implemented & fulfilled. CONTRACTOR shall also ensure that all the ITP stages are fully verified and NCRs/SDRs if any are closed prior to issuance of IRN.

All IRN’s shall be reviewed, signed, and approved by CONTRACTOR representatives prior to release from SUPPLIER Facilities.

Notification of tested material acceptance (NTM) shall be issued only after issue of Inspection Release Note (IRN) stamped and signed by the Contractor, and by Company representative only when Company’s intervention is envisaged.

Punch list will be categorized as below based on the agreement between the involved parties.

CAT : A- To be closed at vendor facility which are relevant to the FAT/Performance.

CAT : B- To be closed at Yard site.

CAT- B Punch Point: - Work Transfer Authorization

(In the event of any incomplete or non-conforming work is required to be transferred to Site, this shall be clearly documented on a Punch List and shall require prior authorization by CONTRACTOR).

Responsible Function Signatory for WTA: -

Vendor QC

Vendor Engg / Project Manager

Saipem Inspector

Saipem Project Manager / Package manager / Project Engineer

Saipem Materials Manager

Saipem Construction management

CPY representatives

7.11 MANUFACTURING RECORD BOOK

SUPPLIER shall prepare the Manufacturing Record Book, which shall consist in a compilation of

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quality control documentation, representative of the products manufacture, fabrication and test history of the ordered product and installed material.

The purpose of the MRB will be to ensure that quality documents and quality records originating at procurement, fabrication stages from multiple sources (SUPPLIER, Manufacturers, and their respective SUB-SUPPLIERS) will be retrievable in order to provide evidence that material used comply with the contract requirements at each step of the work till completion.

MRB shall be supplied by SUPPLIER to give evidence of the satisfactory results of all QC requirements and to document the relevant activities accordingly. The book shall provide sufficient information to demonstrate the product integrity, the quality of the workmanship and the conformity to the purchase order requirements.

The QC Manufacturing Data Book shall be compiled as the work is progressing to avoid delays in completion and consequent delays in equipment release.

SUPPLIER shall submit a proposed MRB Index to the CONTRACTOR for REVIEW and APPROVAL after purchase order award prior starting the fabrication.

7.12 PROCUREMENT INSPECTION DATA BASE

CONTRACTOR shall establish and maintain a Procurement Inspection Data base as required by COMPANY. Procurement Data base shall contain minimum:

➢ A list of all tagged equipment numbers ➢ Their associated purchase order number ➢ Criticality level for engineering and inspection ➢ Suppliers (and sub-suppliers) name and manufacturing location ➢ Forecast fabrication start and finish dates. ➢ Anticipated inspection and test dates ➢ Reference to any NCRs raised including disposition status.

CONTRACTOR shall update and submit an overall Project Procurement Inspection Status Report to COMPANY on weekly basis.

8 TPI ASSIGNED BY SUPPLIER

Supplier shall ensure that, whenever TPI is being assigned by Supplier for their scope of work including 3.2 material certification (as applicable), it shall not be in any conflict (Conflict of Interest) with CONTRACTOR & COMPANY TPI.

9

INSPECTION AND TESTING REQUIREMENTS

9.1 INSPECTION AND TESTING

The SUPPLIER shall prepare documented procedures consistent with the requirements of Purchase

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Order (PO). The procedures shall incorporate the methodology and quantitative / qualitative acceptance criteria and shall specify acceptance criteria for all testing activities applicable to the work scope.

Activities that are identified as special processes shall be controlled via specific procedure. These procedures shall be reviewed and approved by the CONTRACTOR prior to commencement of the activity.

Factory Acceptance Tests (FAT) shall not be conducted prior to the REVIEW and APPROVAL by the CONTRACTOR of all Testing Check Lists and relevant FAT Procedures / Work Instructions.

Site Acceptance Tests (SAT) shall not be conducted prior to the REVIEW and APPROVAL by the CONTRACTOR of all Testing Check Lists and relevant SAT Procedures / Work Instructions.

9.2 INSPECTION NOTIFICATION (IN)

Inspection Notification shall be issued via e-mail thru the Inspection Notification (IN) Form, refer attachment # 4.

IN shall be numbered progressively. The IN shall be identified with Project name (COMP3), PO Number (#), Progressive numbers - (5 digit)” (e.g.: COMP3-(PO #)-IN-0000X) and SUPPLIER shall submit to CONTRACTOR the Inspection Notification by filling up the IN Form. Any delay or impact arising from late notification / cancellation by the SUPPLIER shall be at SUPPLIERs cost.

The SUPPLIER and any SUB-SUPPLIERs shall grant free access to workplace and relevant premises to the CONTRACTOR, COMPANY representative / inspector, or any nominated Third- Party Inspection Agency entrusted by CONTRACTOR or COMPANY for all QC activities relevant to the work.

The CONTRACTOR, COMPANY representative / inspector, or any nominated Third-Party Inspection Agency entrusted by CONTRACTOR or COMPANY shall be provided access to photograph any part of the work scope being undertaken as part of the Purchase Order (PO). Every effort shall be taken to prevent photographs or images containing other work of the SUPPLIERs and/or customers.

The SUPPLIER shall provide office accommodation to CONTRACTOR, COMPANY representative / inspector, or any nominated Third-Party Inspection Agency entrusted by CONTRACTOR or COMPANY in SUPPLIER’s or TIER-SUPPLIERS/SUB-Suppliers’ premises where the work is being undertaken.

The SUPPLIER shall provide the relevant Contract documentation, applicable codes, standards, ITP’s and procedures, including calibrated instruments and measuring tools for CONTRACTOR, COMPANY representative / inspector, or any nominated Third-Party Inspection Agency entrusted by CONTRACTOR or COMPANY for all QC activities relevant to the work as deemed necessary.

All relevant testing certificates & records shall be available in the SUPPLIERs / TIER- SUB- SUPPLIERs s works for REVIEW and / or checking as required by the CONTRACTOR, COMPANY representative / inspector, or any nominated Third-Party Inspection Agency entrusted by CONTRACTOR or COMPANY.

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

10 CONTRACTOR’S TPI SOURCING PROCESS

10.1 SOURCE INSPECTION PROCESS

Overall source inspection process is mapped down in the form of representation of “FLOW CHART”.

➢ Source inspection activity start with Purchase Order review process.

➢ Review of purchase order along with material requisition including its associated

specification.

➢ Review / Define and assign the inspection level based on criticality rating of equipment/item.

➢ Selection of Inspection agencies by CONTRACTOR.

➢ Selection & approval of Inspectors CV based on competency verification and their related

domain experience based on the scope of work.

➢ Submission of Inspector CV to COMPANY for Information.

➢ Assignment of Inspectors at SUPPLIER premises based on notification issued by

SUPPLIER.

➢

Issuance of IN/NOI to COMPANY for review and COMPANY’s inspector assignment.

➢ Perform Inspection at designated location/ supplier/ sub-supplier premises.

➢ CONTRACTOR records the inspection result in the inspection report. Based on the satisfactory result, CONTRACTOR will issue the IRN to COMPANY for information. If the inspection is not in compliance with ITP and/or relevant specification, then SUPPLIER shall rectify/replace/rework the respective material / equipment / item to ensure compliance with the ITP/Standard, and SUPPLIER shall re-propose thru official IN for Final Inspection CONTRACTOR and COMPANY.

➢ After IRN issuance/release, CONTRACTOR provides the Notification of Tested Material

(NTM) to Expediting and Shipping Department for further shipment and delivery.

➢

➢

Items procured through Ex-Stock are considered as Level 4 as per the MR. The Source Inspection activity shall be carried out at SUPPLIER location accordingly.

ITPs (as/if applicable) provided by the Ex-Stock suppliers shall be reviewed by CONTRACTOR and submitted to COMPANY for Approval. Inspections shall be carried out as per the ITP interventions.

➢ For the items supplied under “No Source Inspection” category, where Inspection is Not Applicable, Material Test Certificates and Test Reports shall be Reviewed by CONTRACTOR and shall provide the Notification and Tested Material (NTM) to Expediting and Shipping Department for further shipment and delivery.

Note- All documents and drawings shall be in English language.

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

10.2 SOURCE INSPECTION FLOW CHART

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

11 ANNEXES

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

11.1 INSPECTION RELEASE NOTE SAMPLE (MINIMUM REQUIREMENT)

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

11.2 NON-CONFORMITY REPORT SAMPLE (MINIMUM REQUIREMENT)

COMP3-SPM-QM-PRC-00002_B

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Page 2 of 2

Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

11.3 PUNCH LIST FORM SAMPLE (MINIMUM REQUIREMENT)

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

11.4 INSPECTION NOTIFICATION FORM SAMPLE (MINIMUM REQUIREMENT)

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

11.5 ITP TYPICAL FORMAT FORM SAMPLE (MINIMUM REQUIREMENT)

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

11.6 INSPECTION REPORT SAMPLE (MINIMUM REQUIREMENT)

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

Page 44 of 50

Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

Page 45 of 50

Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

11.7 PRE-INSPECTION MEETING REPORT SAMPLE (MINIMUM REQUIREMENT)

COMP3-SPM-QM-PRC-00002_B

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Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

Page 47 of 50

Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

Page 48 of 50

Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

Page 49 of 50

Classification: Internal

NORTH FIELD PRODUCTION SUSTAINABILITY (NFPS) PROJECT

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

SOURCE INSPECTION PROCEDURE

COMP3-SPM-QM-PRC-00002_B

Page 50 of 50

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


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