Quality Surveillance & Support Services- Execution Plan

Issue: 3.0

ITP: Inspection & Test Plan

IVB: Independent Verification Body

KOM: Kick Off Meeting

MWS: Marine Warranty Surveyor

MDR: Manufacturer’s Date Report

NCR: Non Conformance Report

NDT: Non Destructive Testing

PIM: Pre Inspection Meeting

PMI: Positive Material Identification

QA Quality Assurance

QC Quality Control

GL ND Contracting Country (GL ND CC): The GL ND country (entity) holding the

contact and contracting with the client. In this instance the Contracting country is GL ND
Australia

GL ND Performing Country (GL ND PC): Any overseas GL Country (to Australia)

where the work is to be carried out, with the Performing country reporting back to the
GL ND CC

3 Introduction

3.1 Background to the Ichthys Project

In August 1998, INPEX CORPORATION was awarded a petroleum exploration permit for permit
area WA-285-P in the northern Browse Basin about 200km north-west of Western Australia’s
Kimberley coast, at the western edge of the Timor Sea. That same year, the subsidiary company
INPEX Browse, Ltd. was established.
INPEX’s exploration drilling program from March 2000 to February 2001 resulted in a significant
gas and condensate discovery in what is now called the Ichthys Field. Based on that discovery,
INPEX commenced the Ichthys Gas Field Development Project (the Project).
In August 2006 INPEX transferred a 24% participating interest in the Project to TOTAL E&P
Australia (TOTAL). TOTAL has had a long-standing partnership with INPEX elsewhere in the
world and also has in-depth experience and expertise with oil & gas projects, including liquefied
natural gas (LNG).
In September 2008 the Ichthys Joint Venture (between INPEX and TOTAL) announced the
selection of Blaydin Point on Middle Arm Peninsula in Darwin Harbour as the site for the onshore
LNG processing facilities (refer to Figure 1-1).

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Figure 1-1: Location of the Ichthys Field Showing the Proposed Gas Export Pipeline Route

3.2 Development Description

Offshore, INPEX intends to install a floating Central Processing Facility (CPF) to develop the
Ichthys Field. The greater part of the condensate will be transferred from the field via a
subsurface pipeline to a nearby Floating Production, Storage and Off take (FPSO) facility where
it will be treated and transferred to off-take tankers for export (refer to Figure 1-2). Natural gas
from the field will be directed through an approximately 850km long gas export pipeline from the
field to the onshore facilities in Darwin for processing into LNG and LPG. A small percentage of
the condensate
will also be sent via the gas export pipeline and shipped from Darwin after treatment at Blaydin
Point.
The most likely resource estimates of the Ichthys Field are 12.8 trillion cubic feet of natural gas
and 527 million barrels of condensate. The Project is expected to produce more than 8 million
tonnes of LNG and 1.6 million tonnes of LPG per annum. It will also produce 100,000 barrels of
condensate per day at peak.

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Figure1-2: Indicative Schematic of the Offshore Floating Facilities

The Project’s infield facilities, including the offshore component of the subsea pipeline, fall under
Commonwealth jurisdiction, while the near-shore and onshore facilities in Darwin fall under
Northern Territory jurisdiction.
The onshore facilities at Blaydin Point will include a 6-km-long onshore pipeline corridor from the
shore-crossing area to the Blaydin Point gas-processing plant site; two gas liquefaction trains,
each capable of producing approximately 4.2 Mt/a of LNG; an LPG (propane and butane)
fractionation plant; a condensate stabilisation plant; seven storage tanks (two for LNG, three for
condensate, one for propane and one for butane); and associated utilities and administration
facilities. Figure 1-3 is an indicative schematic of the main components of the onshore and near
shore infrastructure at Blaydin Point, showing the processing plant, the module offloading facility
and the product loading jetty in the foreground.

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Figure 1-3: Indicative schematic of the onshore and near shore infrastructure at Blaydin Point

4 Overview of the Scope of Works

4.1 Company Surveillance Strategies

Dependent on whether the Purchase Order is direct to manufacturer or awarded and executed
by an EPC contractor, the Company Surveillance programme will be applied with varying levels
of responsibility and application (as defined below) :

4.1.1 Direct Purchaser Surveillance

The GL Noble Denton (on behalf of the Company) will directly oversee and verify the
manufacturer QC applications and will attend key hold point, witness and inspection events
during manufacturing, testing, certification and ship loading in order to verify that the Suppliers
execution of the Purchase Order is compliant with the Project Quality Plan technical and
verification requirements. GL Noble Denton (on behalf of the Company) may be required to
observe and report on vendor HSE practices, performance; AQIS quarantine requirements and
general expediting progress to achieve schedule.

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4.1.2 Verification Surveillance

The GL Noble Denton (on behalf of the Company) will verify EPC GL Noble Denton QC
coverage by selective criticality based intervention of key manufacturing and testing activities.
The GL Noble Denton (on behalf of the Company) may be required to observe and report on
suppliers HSE practices, performance, and general progress to schedule.

4.1.3 Field QC Assignments

The GL Noble Denton may be requested to support Company with site / field based construction
and commissioning surveillance activities for EPC packages of work. This may include QA, QC
and other specialist technical support activities including PMI, welding engineering, etc.

4.2 Core Services and Additional Support Services

GL Noble Denton will be required to supply services in accordance with the below conditions

Perform Planning, Coordination, Supervision, Inspections, Expediting and associated Reporting

responsibilities on behalf of, and as coordinated with the Company Inspection Coordinator.

Quality Surveillance duties will be provided based on criticality assessments and in accordance
with the Purchase Order, project specifications, specifically assigned Inspection and Test Plans,
and on whether the surveillance is performed as purchaser representative or verification of EPC
procurement responsibilities

Additional support services such as site QC personnel, quality audits, NDT cross-checking,
welding engineering and other special processes may be called off by Company as required.

4.3 Overall Project Work Scope for Vendor Surveillance

The work will fall under the 6 main categories, each comprising surveillance services at the
vendors/fabricators premises

• Umbilicals, Risers and Flowlines (URF)

Provision of Vendor Quality Surveillance on behalf of the Company during

procurement, manufacture, construction and installation of subsea equipment.
Likely locations to be considered for Vendor Quality Surveillance services include:

Europe, Japan, South East Asia

• Subsea Production System (SPS)

Provision of Vendor Quality Surveillance on behalf of the Company during supply

of production manifolds, Xmas Trees, well jumpers, controls systems and
associated subsea equipment. Likely locations to be considered for Vendor
Quality Surveillance services include:

Europe, USA, South East Asia

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• Gas Export Pipeline (GEP)

Provision of Vendor Quality Surveillance on behalf of the Company during

manufacture, coating and installation of the Gas Export Pipeline from the Ichthys
Field to Darwin. Likely locations to be considered for Vendor Quality Surveillance
Services include:

Manufacturing and coating – Germany, Malaysia, Indonesia

• Central Processing Facility (CPF)

Provision of Vendor Quality Surveillance on behalf of the Company during EPC

Contract for supply of semi-submersible hull, moorings and topsides. Likely to be
considered for Vendor Quality Surveillance services include:
Procurement – worldwide Note: The work does not include fabrication of the hull,
topsides, moorings etc, only the surveillance at vendor’s works for the supply of
equipment which will be incorporated into the build and construction of the CPF

Construction and at shore commissioning – South Korea

• FPSO (FPSO)

Provision of Vendor Quality Surveillance on behalf of the Company during EPC

Contract for supply of FPSO hull, moorings and topsides. Likely locations to be
considered for Vendor Quality Surveillance services include:
Procurement – worldwide: Note: The work does not include fabrication of the hull,
topsides, moorings etc, only the surveillance at vendor’s works for the supply of
equipment which will be incorporated into the build and construction of the CPF
• Onshore Facilities

Provision of Vendor Quality Surveillance on behalf of the Company during

procurement activities relating to plant and materials for the onshore LNG plant to
be located at Blaydin Point, NT Australia. Likely locations to be considered for
Vendor Quality Surveillance include:

Procurement - worldwide

5 Detailed Project Work Scope for Vendor Surveillance

5.1 Vendor Quality Surveillance Responsibilities

• Coordinate and execute vendor inspection assignments as requested via the
Company Inspection Coordinator and Inspection Request process.

• Attendance at Kick off, Pre Inspection, Pre Production, Progress meeting events as
required by the Company.

• Surveillance of all key manufacturing and testing processes and verify the QC
application by the Suppliers and or EPC organisation.

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• Attendance to monitor or witness Inspection and Testing events as determined

by the Project Quality Plan and approved Inspection and Test Plans (ITPs)

• Preparation and timely delivery of reporting to the Company of the Vendor

progress and surveillance activities performed.

• Monitor and track all reported product or process deficiencies or Non

Conformance's through to a satisfactory and formal closeout.

• Verify completion of the packaging and transportation readiness processes

and participate in the Final Inspection Release process,

• Monitor and report to the Company on the storage and transportation status of
consignments despatched from vendors.

• Coordinate and execute expediting visits as requested by Company - provide

reporting on equipment or MDR Dossier status as per agreed format and
content details.

• Provide accurate and timely reporting on all assignment activities to the

Company with look ahead forecasting of key manufacture, testing and
inspection events.

• Attend (as required by the Company) any inspection, audit, or investigative

event at the Manufacture and Test facility or load out site,

• Progressively expedite, review and endorse the supplier's compilation and

final and presentation of completed MDR dossier deliverables for the subject
order.

• Participate in the Initial (works complete) Inspection Release processes.

• Provide other support services as required including audits and specialist services
such as PMI and NDT cross checking

Organisation
GL Noble Denton will establish a project team for the delivery of the above described
Scope of Works. See below the proposed organisation chart Fig G.1 Contained in
Appendix G.1.

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