Document Identification Number

NON CONFORMANCE PROCEDURE NG-018-XX-PNL-430902

Revision : 05 Status: AFC
Document Type : PRC System/Subsystem: 00 Discipline : QUA Rev Date : 09-July-2013
Contractor document number Page 1 of 9

Joint Venture Asset

OFON PHASE 2 PROJECT

CONTRACT DO29 - Tie In & Integration

NON CONFORMANCE PROCEDURE

05 AFC 09-July-2013 Approved For Construction I. Imuka G. Shumann JB Zimmermann

04 AFC 11-Jun-2013 Approved For Construction I. Imuka JB Zimmermann B Lamoussiere

03 AFC 17-Apr-2013 APPROVED FOR CONSTRUCTION I. Imuka S. Ghosh B. Lamoussier

02 AFC 13-Mar-2012 APPROVED FOR CONSTRUCTION PC AP AM

01 AFC 20-Dec-2011 APPROVED FOR CONSTRUCTION LD JPC JPC

00 IFR 14-Nov-2011 ISSUED FOR REVIEW LD JPC JPC

Rev. Status Date Revision memo Issued by Checked by Approved by

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 Document Identification Number

NON CONFORMANCE PROCEDURE NG-018-XX-PNL-430902

Revision : 05 Status: AFC
Document Type : PRC System/Subsystem: 00 Discipline : QUA Rev Date : 09-July-2013
Contractor document number Page 2 of 9

REVISION table

PAGE REVISION PAGE REVISION APPENDIX REVISION

00 01 03 04 00 01 00 01 03
1 X X X 26 1 X X
2 X X X 27
3 X X 28
4 X X X 29
5 X X 30
6 X X X 31
7 X X 32
8 X 33
9 X 34
10 X 35
11 X 36
12 X 37
13 X 38
14 X 39
15 X 40
16 41
17 42
18 43
19 44
20 45
21 46
22 47
23 48
24 49
25 50

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 Document Identification Number

NON CONFORMANCE PROCEDURE NG-018-XX-PNL-430902

Revision : 05 Status: AFC
Document Type : PRC System/Subsystem: 00 Discipline : QUA Rev Date : 09-July-2013
Contractor document number Page 3 of 9

TABLE OF CONTENTS
1. GENERAL ........................................................................................................................................................ 4

1.1 DEFINITION ........................................................................................................................................ 4

1.2 REFERENCE DOCUMENTS .............................................................................................................. 4
1.3 PURPOSE ........................................................................................................................................... 4
1.4 RANGE OF APPLICATION ................................................................................................................ 4
2. RESPONSIBILITIES ........................................................................................................................................ 5

2.1 DETECTION OF NON CONFORMANCE .......................................................................................... 5

2.2 NON CONFORMANCE VALIDATION ................................................................................................ 5
2.3 NON CONFORMANCE FOLLOW UP ................................................................................................ 5
2.4 NON CONFORMANCE REPORT ...................................................................................................... 6
2.5 The COMPANY representative signs off this action (div. 6).Clarifications concerning
stage 4 "Final decision" ................................................................................................................... 7
3. RECORDS ....................................................................................................................................................... 7

4. APPENDIX ....................................................................................................................................................... 8

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 Document Identification Number

NON CONFORMANCE PROCEDURE NG-018-XX-PNL-430902

Revision : 05 Status: AFC
Document Type : PRC System/Subsystem: 00 Discipline : QUA Rev Date : 09-July-2013
Contractor document number Page 4 of 9

1. GENERAL

1.1 DEFINITION

COMPANY: means TEPNG ± Total E&P Nigeria Ltd and, on behalf, OFON
PHASE 2 PROJECT.

CONTRACTOR: means PNL ± Ponticelli Nigeria Ltd and Ponticelli Upstream that
have been awarded the CONTRACT by COMPANY.

CONTRACT: means the document linking COMPANY and CONTRACTOR within the
framework of OFON 2 Project.

CORRECTIVE ACTION An action taken to eliminate the causes of an existing non-conformity,

defect or other undesirable situation to in order prevent recurrence

SUBCONTRACTOR: Means the companies that have been awarded by PONTICELLI

WORKSITE: Means the site where the construction part of the work will be held

WORKSHOP: Means the site where the prefabrication will be held

1.2 REFERENCE DOCUMENTS

ISO 9001 V2008 : Quality management systems Requirement

CONTRACT: OFON2/D029 EPCI5

Deviation procedure : NG-018-XX-PNL-024014

1.3 PURPOSE

The purpose of this procedure is to define the system to be used to ensure the control of non
conform items.

1.4 RANGE OF APPLICATION

This procedure applies to PONTICELLI Limited designated areas and personnel involved in
OFON 2 project.

This procedure is non applicable:

- to welding repairs,
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 Document Identification Number

NON CONFORMANCE PROCEDURE NG-018-XX-PNL-430902

Revision : 05 Status: AFC
Document Type : PRC System/Subsystem: 00 Discipline : QUA Rev Date : 09-July-2013
Contractor document number Page 5 of 9

- to the free issued material (COMPANY material) for which reports are established.

2. RESPONSIBILITIES

2.1 DETECTION OF NON CONFORMANCE

Any member of the team when discovering that a non conformance has taken place will be
responsible for reporting the non conformance to the appropriate Hierarchical Manager:
Hook up Manager, Onshore Manager or Technical Manager and Quality Manager.

2.2 NON CONFORMANCE VALIDATION

The Hierarchical Manager: Installation Manager, Onshore Manager or Technical Manager

- shall confirm the status of non conformance

- shall detail any non conformance to the local QA/QC

- take the necessary and sufficient steps to isolate the non conforming item,

- shall propose a solution to solve the nonconforming item (repair, acceptance with non
conformance, declassification, reject) and get COMPANY to approve them,

- shall implement remedial action in accordance with the remedial action, validated by
Company, described in the non conformance report.

1RUHSDLUVKDOOEHFDUULHGRXWZLWKRXW&203$1<¶VDSSURYDO5HSDLUVVKDOOEHZLWQHVVHGE\
COMPANY.

2.3 NON CONFORMANCE FOLLOW UP

In each location, the Local QA/QC Manager is responsible for following up all local non
conformances and to inform the Project QA/QC Manager.

For each non conformance, the Local QA/QC Manager is responsible for:

- Establishing, numbering and recording the required non conformance report (see
Appendices 1).

The non conformance reports are numbered chronologically from 001 to 999.
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 Document Identification Number

NON CONFORMANCE PROCEDURE NG-018-XX-PNL-430902

Revision : 05 Status: AFC
Document Type : PRC System/Subsystem: 00 Discipline : QUA Rev Date : 09-July-2013
Contractor document number Page 6 of 9

- Identifying the non conform items (marking, quarantining).

- Issuing if necessary (see a and b) to the Customer Quality Manager for review decision, the
non conformance report.

a) Internal treatment

Costuction shall implement the corrective action specified by appropriate Hierarchical Manager

Any non conformance of products that leads to scrap, or compliance of products with
relation to procedure requirements is handled internally.

$OO 1&5¶V RI LQFRUSRUDEOH materials or equipment, deviations to General Specifications

have to be issued to COMPANY;

COMPANY may witnesses those processes.

b) External treatment

Vendors / Subcontractors is in charge of the treatment and the following of the NCR related to
this activities.

The following Steps will be taken:

- The Non Conformance will be transmitted to the appropriate Hierarchical Manager who will
make the decision on the remedial action to be taken

- The Subcontractor/Contractor shall implement the corrective action specified by appropriate

Hierarchical Manager
- Inspect the repaired or reworked item in accordance with the applicable procedures.
- If the results are acceptable, close out the non conformance and update the NCR Register
Return a copy of the Non Conformance Report to the Supplier Quality Manager (External
Treatment only).

When COMPANY identify a Non Conforming situation they will instruct the contractor to
issue an NCR.

Non-Conformances are raised by Contractor, Sub-Contractor, Vendors and Suppliers.

Any Non Conformances Raised giving rise to the acceptance condition or repair of an external
manufactured product, will require a special procedure which will incorporate (The Supplier
documentation and a specific procedure). This will be submitted to COMPANY prior to any
agreements/decisions being made. See Deviation procedure NG-018-XX-PNL-024014

2.4 NON CONFORMANCE REPORT

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 Document Identification Number

NON CONFORMANCE PROCEDURE NG-018-XX-PNL-430902

Revision : 05 Status: AFC
Document Type : PRC System/Subsystem: 00 Discipline : QUA Rev Date : 09-July-2013
Contractor document number Page 7 of 9

a) Non conformance report with internal treatment

The Hierarchical Manager concerned confirms that the required actions have been put into
effect (div. 5).

The local QA/QC confirms that these action have been put into effect (div. 6), and request
COMPANY signature on closed NCR.

b) Non conformance report with external treatment

The concerned Hierarchical Manager confirms the effectiveness of the required actions
(div. 5).

2.5 The COMPANY representative signs off this action (div. 6).Clarifications concerning
stage 4 "Final decision"

It is necessary to favour a solution that has the approval of the interveners. However:

- In the case of persistent disagreement the final decision belongs to the Hierarchical
Manager concerned;

- in the case of proceeding with derogation the final decision obligatory rests with the Project
QA/QC Manager or the local QA/QC and agreement by COMPANY. (Par 2.3b)

3. RECORDS

All non conformance reports will be included in the final as built construction documentation.

A non conformance register shall be prepared and updated each time a non conformance report is
issued.

This register shall contain as minimum:

- The actiYLW\3LSLQJ6WUXFWXUH3DLQWLQJ«

- The purpose,

- The solution proposed,

- The chronological number,

- The opened date of the non conformity,

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 Document Identification Number

NON CONFORMANCE PROCEDURE NG-018-XX-PNL-430902

Revision : 05 Status: AFC
Document Type : PRC System/Subsystem: 00 Discipline : QUA Rev Date : 09-July-2013
Contractor document number Page 8 of 9

- The closed date.

This register shall be transmitted to COMPANY on a monthly basis.

4. APPENDIX

APPENDIX 1 ± Non conformance Report Form

APPENDIX 1 :

NON CONFORMANCE REPORT FORM

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 NON-CONFORMANCE REPORT

N°: .................................................

Client: TEPNG......................................................... Contract: OFON2.DO29

Client order N°: .....N/A................................................. PON order N°.......N/A............................................

REPORT Sender

'DWH«. / «.... /« .........

Visa :

Addressee: .....................................

SOLUTION PROPOSAL

Solution proposed by :
Name : «««««««««««

Date : ««««««««««««

Visa :.

Addressee: .....................................

Notice given by:

3- QUALITY ASSURANCE NOTICE /CLIENT Name : ................................
Internal treatment Agreement on solution proposed Date : ......... / ......... / .........
:LWKFOLHQW¶VDJUHHPHQW Disagreement on solution proposed
Visa :

Addressee: .....................................

Decision taken by :
4- DECISION (by the supervisor of the activities concerned by N.C.R.) Name : ................................
Solution proposed under-taken
Date : ......... / ......... / .........
Another proposal attached to NCR
Visa :

Addressee: .....................................

5- INTERNAL EXECUTION REPORT Noted by :

Repair carried out Name : ................................

Product rejected ................................................... Date : ......... / ......... / .........

Visa :

Addressee: .....................................

Noted by :
6- &/,(17¶6(;(&87,215(3257
Name : ................................
The solution has been carried out YES NO
Date : ......... / ......... / .........

Visa :

Final decision: Sender

........................... ..............................
........................... ..............................