REHABILITATION OF FPSO MYSTRAS METERING SYSTEM IN OKONO

FIELD OML 119

TENDER NUMBER: AM/OML119/TD/0618/0103F

Morpol Engineering Services Limited DATE: 22th August, 2018.

WORK APPROACH / METHODOLOGY

GENERAL CO-ORDINATION OF THE PARTIES

MORPOL has prepared a Tender schedule of Works, as requested in the Tender Document. This program
is included in the Tender submission herewith. The program will be expanded and detailed on award of
contract, as specified in the Tender Documents and Contract Conditions. Monitoring formats to be used in
rehabilitation works, Pre-commissioning and commissioning of the job are enclosed herewith.

The execution of Project operations will be carried out in full compliance with Contract Conditions and
Specifications and in full consultation with NPDC to achieve the required quality and target completion date.
 DESIGN & ENGINEERING WORKS

Upon award of contract, a quick review and updating of all existing design/engineering documentation on
the project shall be undertaken for NPDC approval. We are aware of the confidentiality requirements of the
Contract in terms of issuing documentation and information and will ensure that this aspect is well enforced
among our staff.

The Engineering team would review the vendors returned bids technically, and including all drawings to
ensure full compliance with the Contract specifications and conditions prior to placing orders.
Specifications and procedures for Pre-commissioning and commissioning checks, integrity testing and
system startup of each streams will be prepared during the engineering stage. NPDC approval will be
sought to secure smooth operation.

The Project commissioning Engineer will supervise the activities of the Pre-commissioning/Commissioning
Team.
 PROCUREMENT

The priority will be given to placing order with the Suppliers of the long lead equipment. We will therefore
secure NPDC approval to the selected Vendors immediately following the Effective Date of Contract.

MORPOL will ensure that all Vendors are ISO certified. This work will take place at the Project Head
Office, which undertakes all procurement works for the Company. Procurement activities will be handled by
the Project’s procurement/purchasing personnel under the control of the Project Manager, to purchase
materials and equipment from local and foreign manufacturers/suppliers. These activities will follow strict
procedures as defined in the Company QA Manual. Once Vendors quotations are received, the
Procurement Manager evaluate Commercial offers and will forward Technical offer to the Engineering
Department for evaluation. Witness tests (if required by client) would be scheduled and communicated to
NPDC. We will secure from Vendors all Test Certificates and data books that will be audited by the QA
Manager and submitted to NPDC at completion stage.

We undertake to seek supplies of materials/equipment available in Nigeria from local

suppliers/manufacturers provided competitive prices, and without compromising technical specifications,
are offered.

Permanent materials and equipment, which are part of our scope of supply, will be transported by
trailers/trucks and barges using tug boats to storage areas. All materials/equipment will be checked for
Quality at the off-loading areas. Protective measures and precautions will be taken in accordance with
contract specifications. The storage areas will be secured and guarded 24 hours a day.
 REHABILITATION

Rehabilitation
Rehabilitation will be carried out in such a manner that NPDC’s operation of the facilities will not be
hampered in any way that could lead to shutdown of the platform. To achieve this, all pieces required to tie
in to the existing facilities would have been fully pre-fabricated, tested pre-assembled and ready for minimal
welding or bolting to the facility upon shut down of each streams. This is to achieve the desired project
schedule.

Also, NPDC rehabilitation and Commissioning shall be carried out in accordance with the relevant
standards, specifications, codes and safety procedure. Our aim shall be to strictly adhere to the work
schedule under the supervision of the experienced personnel as given in our project organization chart and
in full consultation with the client or his representative to achieve the required quality and target completion
date. The program will be submitted for the client or its representative’s approval prior to commencement of
supply / construction activities.

Morpol will check all materials/equipment for quality at the off-loading areas. Protective measures and
precautions will be taken in accordance with contract specification.

Since safety is paramount to our works, we would adhere strictly to all safety rules and regulations according to
the Industrial Safety Act.
 TESTING AND COMMISSIONING

Following total completion of the works, necessary equipment and sub-systems/components testing shall be
carried out in accordance with the manufacturer’s specifications.

As a further step, and in association with the Vendors for the equipment, MORPOL Engineering team will
prepare commissioning procedures including personnel organization and qualifications, safety codes of
practice, emergency procedures, tests to be performed and check lists. In addition, the following
considerations, among others, shall be instituted for the commissioning activities of the system;

1. MORPOL will appoint a qualified commissioning Engineer to lead a team.

2. Performance tests will be carried out to ensure that all installations are as per contract requirements.

3. Special inspection will be carried out as specified by NPDC.

4. All non-conformances will be immediately relayed to the Project Manager for corrective action.

5. Results of these operations will be recorded and documented following approved procedures.

However, commissioning procedure to be adopted shall be forwarded to NPDC before the

actual commencement of this exercise. The commissioning sequence shall thus be with
respect to the activity sequence enumerated in work schedule of our Technical Proposal.
 COST CONTROL

MORPOL will develop a cost control system in accordance with the contract conditions and in agreement
with NPDC. This system will allow for Milestone Payment Certificate to be produced and agreed upon in a
timely manner. Monthly progress report will contain Cost Control Charts/Graphs and Tabulations to allow
NPDC to assess financial status Vs work progress.

Cost Control Procedure

MORPOL has planned to bring one Cost Estimation Engineer reporting to the Planning Engineer. The
prime responsibility of Cost Estimation Engineer is to estimate any variation order or any extra work coming
from client inspection report. He will be mobilized one week prior to site hand-over and remain at site until
all the issues related to any variation or extra works are agreed with the client.

MORPOL understands that all the work inspection report will be finally issued through NPDC planning to
MORPOL planning. Our planning after reviewing the inspection report, will identify whether the work fall
under lump-sum price or the variable work category and in case of the later, whether the Unit Rates pre-
identified or needs to be approved by NPDC. He will then proceed to raise a Variable Work Authorization
Form (VWF), the format of which will be developed after award of the contract. If the rates are not pre-
agreed in the Contract, he shall send the VWA through the Project Manager to the NPDC Engineer for his
approval, after whose concurrence he will proceed to plan and execute the work. During execution of extra
works, the concerned planner of that area will note down the actual quality of man-hours consumed and
extent of repair. This information will be passed on to the Cost Estimation Engineer for his evaluation of the
job. Once the price is finalized, it would be reviewed by the Planning Engineer in conjunction with the
Project Manager, for onward submission to the client. The estimation of any extra or variation order will be
based upon the unit rates or as per variable rates provided in our compensation proposal (priced).

MORPOL, without prior written approval from NPDC, will not start any extra or variation job.
 PLANNING AND SCHEDULING

MORPOL will appoint, for the whole duration of the contract, a qualified planning Supervisor, with
experience in Microsoft project software to undertake this work.
He will be equipped with the specified Hardware and Software to enable him to fulfill his tasks as required
by Contract specifications.

MORPOL Planning Supervisor will prepare the Contract Execution Plan and procedures for NPDC approval
within fourteen (14) days of issuance of the letter of intent as required in section 1.1.1.1 Part 1, Vol. 1B of
the ITB.

An Execution Program will also be prepared in the form of a Critical Path Network (CPN) in Precedence
Technique detailing all the activities in the Project. The planning will follow NPDC - specified job order form
and completion targets.
 PROGRESS REPORTING

MORPOL considers monitoring progress as a major task, which is fully integrated in the functions of each
of Project Engineer, Site Supervisor, Planning Supervisor and Discipline Technicians.

Proper monitoring and analysis of project data enables the Site Supervisor to assess and address
problems at an early stage, pre-empting situations, avoiding delays and keeping the project on track in
terms of completion target date and budget. This is especially important on such fast track Project
considering the period involved. Once the detailed Critical Path Network has been prepared and approved
by NPDC, the program in Bar chart format is distributed to all Supervisors with emphasis on their respective
work areas. All Supervisors shall report to Project Manager on regular basis about their progress vis-à-vis
their sub-programs, with reasons for deviations (if any) and measures taken to recover situation.
 INVOICING

MORPOL shall ensure that all invoicing activities are strictly in compliance with the “Contract Price and
Terms of Payment”, as stated in Vol.II of the ITB document. Invoices based on completed milestones shall
be submitted for processing and approval by the Client.