SCHEDULE 'B'

REPLACEMENT 5 KMS OF 24” SIRTICA PIPELINE (BEDA JUNCTION –ASSIDA

JUNCTION)

SCHEDULE AND TERMS OF PAYMENT

A. COMPANY FURNISHED SERVICES AND MATERIALS

1. Air Transportation from Tripoli to site work/site work to Tripoli for CONTRACTOR's
supervisors (as requested by COMPANY) per COMPANY's normal flight schedule,
subject to seat availability.

2. Construction Inspector acting on behalf of COMPANY as well as all NDT

requirements including ultra sonics and radiography. Safety Officer to oversee hot
activities on live lines.

3. In the event that CONTRACTOR requests limited use of COMPANY's facilities for
living accommodation and provided the camp is physically capable of providing the
requested service, the following rates will apply:

Mess Only LD 70.000 man/day

Room Only LD 70.000 man/day
Complete Accommodation LD 140.000 man/day

4. It is specifically noted that COMPANY will not supply electricity for use at the
CONTRACTOR's camp. Potable water will be supplied free to 100 L per person per
day at COMPANY's area . All supply, connections and transportation are to be
provided by CONTRACTOR. Any additional amounts will be charged to
CONTRACTOR in accordance with COMPANY's standard billing rate for third
parties. For further details CONTRACTOR may contact COMPANY's General
Accounting Department for up to date advice.

Potable water for concreting will be issued free of charge, transportation by

CONTRACTOR

5. MATERIALS:

i) Line Pipe (quantity is subject to revision, however all line pipe will be supplied
by COMPANY) :

Approximately 5,200 meters of new, unbevelled 24" diameter( 5L X 52 Grade

0.375" wall thickness) linepipe with average length of 12.0 meters for lump sum
items. If COMPANY decides to carry out the optional section replacements the
required additional quantities will also be supplied but the unit price will be
strictly prorated to the lump sum price.

iii) All new 24” flanges, bolts, nuts and gaskets.

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 iv) Hot Tapping and Stoppling Equipment, including flanged 20” by-pass line,
which requires only erection and pup piece welding to fit site condition.

Equipment and materials for this scope of work are available at Ras Lanuf.
However, a list will be given to CONTRACTOR at the Kick off Meeting in
order to carry out a final material comparison. CONTRACTOR shall review and
check this list and advise any shortage found. (Ref. Sched. A, Section 1, point
3.A.u).
If CONTRACTOR fails to identify such shortages prior to starting the
installation, COMPANY will not compensate CONTRACTOR for the purchase
and delivery of the missing item(s). CONTRACTOR shall also be responsible
for any associated delay.

B. CONTRACTORFURNISHED SERVICES AND MATERIALS

1. All items as referred to in Schedules 'A' and 'B' of this Contract Document inclusive of
all services, consumables and materials permanent or temporary in nature for
completion of the work except those listed in paragraph 'A' above shall be furnished by
BIDDER.

2. Sufficient personnel to gather sample and record as built data as well as submit final
report and as built drawing to COMPANY for pipeline replacement and berm
rehabilitation work. Report shall include:

i) All required machine and hand wrapping tape inclusive of primer, mastic
compound and 24” insulation flange complete with insulation kit, gasket, bolts
and nuts..

ii) Pipeline section tie in locations.

iii) One reinforced concrete box

iv) General soil characteristics at dig test sites as encountered by CONTRACTOR.

v) Other pertinent information as directed by COMPANY.

3. i) One TD Williamson Technician to supervise each hot-tapping and stoppling

operation (or COMPANY approved alternative) provided by CONTACTOR
without any extra cost to COMPANY.

ii) In case CONTRACTOR has detected shortage in COMPANY supplied TD

Williamson equipment and material, or it becomes inadequate to safely complete
the contracted scope, CONTRACTOR shall procure and deliver to site in a
timely manner at CONTRACTOR's risk the missing item(s). Such procured
items shall be approved by COMPANY and the relevant cost will be born by
COMPANY according to the procedure mentioned in Schedule 'A', Section I,
Item 3.A. u.

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 4. Two (2) desert equipped 4 x 4 pick-up trucks Toyota Land Cruiser or equivalent, for
COMPANY use on the project including routine maintenance and repair costs for same
throughout the construction period. These vehicles shall be air conditioned and supplied
with two spare desert tyres/each. These vehicles shall be fully insured.

5. Software and hardware components as described in details in Schedule A. Section I.

Point 6. B. item a)

6. Full board Accommodation in separate furnished and air conditioned rooms, complete
for two COMPANY Inspectors in CONTRACTOR's fly camp througout the whole
construction period. Site lunch for COMPANY Engineers, Safety representatives and
NDT Inspectors in C CONTRACTORfly camp ( Total 300 lunches, in addition to the
above full board supply).

C. SUPPLEMENTARY PROJECT MANAGEMENT REQUIREMENTS OF BIDDER

In addition to the Schedule of Payment and costs contained herein, CONTRACTORare requested
to provide with their bid submissions a Work Program Forecast including project resource
allocation and construction execution details as described below:

1. Schedule I - Bar Chart of Activities

- The Bar Chart shall be based on quantities as per Sch. A Sections II and III
and shall show all major construction activities including:

- mobilization
- right-of-way preparation
- pipe haul & string
- bending
- welding
- coat/wrap
- lower in/backfill
- pigging & hydrostatic testing
- hot tapping, stoppling
- tie-ins
- de-oiling of abandoned sections
- clean-up of right-of way
- reinforced concrete box
- installation of split sleeves if required

- The bar chart shall show start and finish time durations in weeks along the
horizontal axis, shall indicate 24” diameter pipeline work activities separately
as well as the anticipated work phase on each line.

- The information on the bar chart shall take into account any special
circumstances which might have an influence on the progress of the work,
such as climatic conditions or major obstacles such as wet or rocky areas.

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 2. Schedule II - Work Program:

- The work program shall be a brief, descriptive narrative describing how

CONTRACTOR shall carry out the work. This narrative shall describes such
issues as camp locations, direction of work, sequence of work, procurement
receipt and allocation of materials, services provided by BIDDER, etc.

- CONTRACTOR shall state if he intends to use a subcontractor to carry out

the scope. oe part of the scope of work. Subcontracting the scope will be
subject to COMPANY’s approval.

The work program shall also briefly describe the undertaking of major
construction activities with respect to labour, equipment and resource
allocation.

3. Schedule III - CONTRACTOR's Organization

- Bidders shall submit an organization chart indicating how they propose to

organize the work from head office through project office through to the field
organization.

- Bidders shall also give the names of the key personnel they intend to employ
on the Contract with details of their experience ( CV’s). Such names shall
cover down to Site Manager level including key Foremen where appropriate.

4. Schedule IV - CONTRACTOR's Equipment

- Bidders shall submit a comprehensive listing of construction equipment

proposed to carry out the work. This listing shall include all major items
including rolling stock and present total number of equipments for all major
work phases as listed under Schedule I herein.

5. Schedule V - CONTRACTOR's Labour

- Bidders shall submit a comprehensive listing of proposed construction labour

forces. This list shall include total number of skilled worker or helper
employed for all major work phases ( especially for various welding
activities). Senior Supervisors shall be approved at the discretion of
COMPANY.

- In addition to providing the information indicated by the preceding schedules,

bidders shall, if requested, provide construction man-hour S-curves for all
labour up to Senior Foreman level.

4. Description of water supply proposals, see Exhibit 'B'.

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D. SCHEDULE OF PAYMENT

For the faithful, full and satisfactory performance of the WORK, as based on the provisional
quantities as per Schedule 'A', and in accordance with the terms of the CONTRACT,
COMPANY shall pay CONTRACTOR the lump sum price of Euro ……….. plus LD………..
(say Euro………………plus Libyan Dinars………………………only) in accordance with the
cost breakdown contained in Article "I" below.

This price shall be subject to change by mutually agreed upon reductions and/or additions to the
WORK in accordance with authorized change orders as per the CONTRACT conditions.

Payment shall be made within thirty (45) days of submission of a tax registered invoice backed
up by COMPANY approved progress reports for the work performed by CONTRACTOR during
the preceding calendar month, as per the terms of payment noted below. CONTRACTOR shall
not invoice any payment representing 5% or less of the CONTRACT lump sum, except final
payment.

E. NON-COMPLETION PENALTY

Pursuant to Article 7 of Schedule ‘A’, CONTRACTOR agrees to complete the work within …..
calendar days from the date of CONTRACT signature herein and with due diligence, unless said
completion date is extended pursuant to Article 17 and 23 of said contract. COMPANY
reserves the right to review/revise the execution period if the Scope of Work changes
significantly.

Should CONTRACTOR fail to complete the work on or before the completion date, COMPANY
may deduct the sum or sums to be paid to CONTRACTOR, an amount calculated at the rate of
1% (one percent) for each week period of delay beyond said completion date or prorata thereof
up to a maximum of 5% (five percent) of the total contract sum.

Payment of penalty by CONTRACTOR or deduction thereof shall not be in lieu of, or does not
prejudice the rights of COMPANY as stipulated in this contract or as per governing Law.

However, COMPANY may deduct said penalty from the sum or sums to be paid to
CONTRACTOR.

F. TERMS OF PAYMENT

Payment to be made as follows for the Contract Price of Euro …………..+ LD……….. as in
Item "D" above.

90% against monthly progressive invoices.

The balance as per Article 37 as follows:

5% upon completion and acceptance of the Work by COMPANY.

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 5% upon expiration of the guarantee period mentioned in Article 26

G. LABOUR UNIT RATES

The following labour rates shall apply to extra work ordered or requested by COMPANY to be
performed at unit rates. These rates shall include all small tools furnished with the labour and
shall include overtime, insurance, burdens and benefits, overheads, supervision and profit and
said rates shall constitute the entire cost to COMPANY with respect thereto.

Rate Per Hour

Euro + Libyan Dinars
Job Supervisor
Foreman
Pipe Fitter
Welder
Structural Worker
Mason
Carpenter
Operator
Electrician
Instrument Fitter
Driver
Semi-skilled Worker
Semi-skilled Helper
Any other discipline shall be listed by Bidder

H. EQUIPMENT UNIT RATES

The following equipment rental rates shall apply to extra work ordered or directed by
COMPANY to be performed at unit rates. The rates shall be all inclusive of gas, fuel, oil, grease,
supplies, repairs, maintenance, overhead, supervision, profit and all other costs relating to
ownership and operation of the equipment. These rates shall exclude operating labour and said
rates constitute the entire cost to COMPANY with respect thereto. Equipment rental shall not be
charged for small tools having a new value of $1,000.00- or less.

Rate Per Hour

Euro + Libyan Dinars
Crane 20 ton
Excavator
Concrete Mixer Truck
Front Loader
Truck 10 ton
Tractor and Trailer
Welding Machine
Pump Set
Electric Generator Set
Air Compressor
Bus

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 4WD Vehicle
Any other equipment shall be listed by Bidder

I. BUILD UP OF CONTRACT PRICE AND SCHEDULE OF UNIT RATE PRICES FOR

THE WORK

I. The following prices shall be reflected in the all inclusive Lump Sum Price as
stipulated in Schedule B Section D - Schedule of Payment and Section F - Terms of
Payment contained herein.

The following unit prices shall also be used to determine additional payment for any
similar extra work or reduction in payment for deletion or omissions of work all as
specified in Article 24 of the Contract herein.

I.1. LUMP SUM ITEM – 24” SIRTICA PIPELINE (BEDA JUNCTION - ASSIDA
JUNCTION)

UNIT PRICE TOTAL

DESCRIPTION QUANTITY
EURO+LD EURO+LD
1. Mobilization, Demobilization, of all equipment,
CONTRACTOR supplied materials and
manpower inclusive temporary desert Camp Lump Sum
establishment

2. Right of Way grading and preparation for 5,200 m / meter

pipeline replacement
3. Haul & String 24” Pipe 5,200 m / meter
4. Bevelling both ends of 24” pipe spools 868 / each
5. Stringing and Welding including bending as 5,200 m
required /meter
6. Trenching (Soil characteristic is provisional
subject to remeasurement 5,200 m / meter

Berm construction and covred by oily saned as

7. per Sketch S-3 (The section shall be measuring 1,200 m / meter
during site survey)
8. 24” insulation flange complete with insulation 1 sect
kit, gasket, bolts and nuts.
9. Prepare/Prime/Wrap & Lower In 5,200m / meter
10. Backfill Including sand padding, Provisional
Subject to remeasurement 5,200 m / meter
24” Normal
11. Clean-Up ROW after Line Replacement 5,200 m / meter
12. Tie-Ins to 24” Replacement Section 1 sect.
13. Testing per Specifications and as detailed in
Exhibit "B" including gauging, pigging,
hydrotesting, dewatering etc. with water for
hydrotest provided by CONTRACTOR at all

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 replacement sections.
a) Mobilization and Demobilization of Specialist Lump Sum
etc.
b) Testing operations as specified 1sect LS/ section
24" Dia. Repl. Section Km 00,00 – Km 5,2
c) CONTRACTOR supplied water for
hydrotesting including any necessary drilling, 1sect LS/ section
loading, transport-ing, and discharging.
24" Dia. Repl. Section Km 00,00 – Km 5,2
14. Hot Tapping & Stoppling Operation (Two
positions including 20" dia. by pass erection) 2 / each
2 full operations
15. New Concrete Box erection with covers, ladder 1 / each
and crash barrier (KM 5,2)
16. De-Oiling and venting abandoned pipeline
Sections inclusive of preparatory and clean up
work 1 / section
24” at Section Km 00,00 – Km 5,2
17. Testing & Bonding Station – 1 No. 1 / each
18. Pipeline markers - 2 No. 2 / each
19. Any other items not listed above but which
CONTRACTOR is required to fulfil the scope
of work shall be itemized and priced by
CONTRACTOR
Price per Item

If no itema are identified and priced by

CONTRACTOR the priced items will be
deemed to include all requirements to meet the
defined scope of work according to the scope
and specifications herein.
20. Full board and accommodation for two
COMPANY Inspectors at CONTRACTOR's fly Lump Sum
camp for duration of the entire project
21. Complete “ As-built” documentation for the
entire project, including software and hardware Lump Sum
supply.
22. Lump sum price for CONTRACTOR provided t
Lump Sum
4x4 pick up truck for duration of the entire
project
23. Training for four (4) company engineers for two LS Included in the above price
(2) weeks each
24. Site Lunch provided for COMPANY Engineers 300 / each
300 lunch (Provisional Quantity)
25. 24” TOTAL CONTRACT PRICE : EURO + LD

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II. UNIT RATES

In addition to above prices CONTRACTORshall receive payment for additional or substitute

items of Work should the WORK be performed in accordance with the Contract Document and
specifications at the following unit rates.

DESCRIPTION QUANTITY EURO + LD

1. Rebevelling of pipe end where end(s) have been

damaged prior to placement in temporary COMPANY
stockpiles.
No payment is warranted for this item unless pipe has bevel
been inspected and confirmed as condemned as such by
COMPANY and CONTRACTORprior to pipe being
removed from stockpiles - 24”
2. Cut out and replace welds as directed by COMPANY each
which are subsequently found to be sound -24”
3. Installation of additional CONTRACTORsupplied Each
pipeline marker posts c/w foundation
4. Berm construction and installation of new pipeline /m
section in this berm ( instead of trench) as per Sketch S-3
5. Apply inner and outer machine (or hand) wrap at 55%
overlap to 24" buried pipeline /m

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