EXHIBIT “C”

STANDARD SPECIFICATION FOR

WELDING OF PIPELINES AND FACILITIES

SSP-87-M-002

HAROUGE OIL OPERATIONS B.V., LIBYAN BRANCH

 STANDARD SPECIFICATION FOR
WELDING OF PIPELINES AND FACILITIES - SSP-87-M-002

TABLE OF CONTENTS

Page No.

1. SCOPE 1

2. GENERAL SPECIFICATION 1

3. QUALIFICATION OF WELDING PROCEDURES 1

4. QUALIFICATION OF WELDERS 5

5. DESIGN AND PREPARATION OF A JOINT FOR PRODUCTION WELDING 5

6. INSPECTION AND TESTING OF PRODUCTION WELDS 10

7. STANDARDS OF ACCEPTABILITY 10

8. REPAIR OR REMOVAL OF DEFECTS 11

 STANDARD SPECIFICATION FOR
WELDING OF PIPELINES AND FACILITIES - SSP-87-M-002

1. SCOPE

This Article covers the minimum requirements for welding of circumferential welds of pipes,
fittings or associated pipeline components performed on the construction Right-Of-Way or in
CONTRACTOR’s field fabrication shop.

2. GENERAL SPECIFICATION

All welding shall be carried out in accordance with API-1104 "Standard for Welding Pipelines
and Related Facilities", latest edition, except where amended here below.

3. QUALIFICATION OF WELDING PROCEDURES (Ref. API-1104 Sect. 2.0)

CONTRACTOR may adopt COMPANY’s standard welding procedures without obligation on the
part of COMPANY and notwithstanding CONTRACTOR’s responsibility to replace or repair all
defective workmanship under the terms and condition of the Contract.

ALTERNATIVELY

3.1 CONTRACTOR shall submit its proposed welding procedures in writing to COMPANY for
review and approval. A test based on the approved procedures shall then be carried out by
CONTRACTOR and witnessed by COMPANY and all the relevant data shall be recorded.
Thereafter, if satisfactory to COMPANY, the procedures shall be adopted on all field welds.

3.2 In formulating its welding procedures CONTRACTOR shall be guided by the following points
which shall be read in conjunction with Clause 2.3, API Standard 1104 (latest edition)

Other points shall be at CONTRACTOR’s option.

3.2.1 Reference API 1104

i) Process

2.3a Metal arc fusion welding shall be employed.

ii) Pipe and Fitting Material

2.3b All pipe and fittings to be supplied will be in accordance with the specifications
given in the list of PROJECT MATERIALS supplied by COMPANY.

2.3c Material grade, diameter and wall thickness indication for which
the submitted procedure specification is being qualified. Changes
require new procedure qualifications.

Exhibit C/Standard Specification for 1

Welding of Pipelines and Facilities
 iii) Joint Design

2.3d The angle of bevel will be 30o plus 5o minus 0o. The root face will be
1.6 mm (1/16") plus or minus 0.8 mm (1/32").

For vertical downhill welding the root gap shall not be more than 2.4
mm (3/32") and not less than 0.8 mm (1/32"). For vertical upward
welding the root gap shall be not less than 2.4 mm (3/32") and not more
than 4.0 mm (5/32").

iv) Filler Metal and Number of Beads

2.3e The size and classification numbers of filler metal and the minimum number and
sequence of beads shall be submitted in tabular form to COMPANY for approval, prior
to the welding procedure test.

Filler metal shall be in accordance with NACE MR 01-75 (max. 1% Ni).

v) Electrical Characteristics

2.3f The current, polarity, voltage and amperage for each size of electrode shall be
submitted to COMPANY in tabular form for approval, prior to the welding procedure
test.

vi) Positions

2.3h Separate procedures shall be submitted for downhill welding and uphill welding.

Pipe 12" diameter and larger shall be welded in the horizontal fixed position (5G),
smaller diameter pipe may be qualified in the 6G position (45o to the horizontal). Roll
welding of all pipe in the 1G position shall not be permitted.

vii) Direction of Welding

2.3i Downhill welding may be employed on off plot works and cross country
pipelines. The uphill method of welding may be used for fittings, tie-in welds in the
trench, small diameter pipe, and on plot works. The welder carrying out this work shall
be qualified for downhill or uphill welding a appropriate.

viii) Time Lapse Between Passes

2.3j The root bead shall be cleaned immediately after deposition and the second pass
carried out within the time period recorded and approved in the procedure test.

Likewise the second bead shall be cleaned after deposition and the third pass carried out
within the time period recorded and approved in the procedure test.

Any joint started shall be completed within the same working shift, i.e. no partially
completed welds shall be left overnight.

Exhibit C/Standard Specification for 2

Welding of Pipelines and Facilities
 ix) Type of Line-Up Clamps

2.3k Internal line-up clamps shall be used except at tie-ins, fittings and other points
where their use is impracticable. Under these circumstances an external line-up clamp
shall be used.

Hydraulic and screw jacks shall not be used.

x) Removal of Line-Up Clamps

2.3l Internal line-up clamps shall be removed after the root bead is 100% completed.
External clamps may be removed when the root bead is 50% complete and equally
spaced around the circumference.

xi) Cleaning

2.3m Power operated rotary tools approved by COMPANY shall be used for cleaning
between weld passes.

xii) Preheat

2.3n Refer to Art. 1.5.8 of this Specification.

xiii) Number of Welders

2.3o If the downhill welding technique is employed the root bead and second pass for
12" O.D. pipe and over shall be deposited by a minimum of two welders working
simultaneously one on either side of the pipe, starting topside.

xiv) Tack Welding

Where tack welding is necessary it shall be subject to the approval of

COMPANY and each tack shall be of the same quality as the final weld,
fully penetrating and of a minimum length of 50 mm. Where tack welds
are used there shall be a minimum of 4 in number equally spaced around
the circumference of the pipe. Tacks shall be thoroughly cleaned of
scale and incorporated in the final weld by enlarging the end craters at
each end of all tack welds to assist continuity of root penetration or
alternatively be ground out as welding proceeds. Where downhill
welding is carried out, tack welds shall be used and the clamps kept in
position until the root bead is applied.

xv) Striking an arc on the pipe at any point other than the welding groove shall not be
permitted. Any section of pipe, which has been arc burned shall be cut out and replaced
at CONTRACTOR’s expense.

xvi) Where the use of double sided welding, internal sealing runs to correct misalignment,
local internal repairs or the use of fittings requiring backwelding, etc., will result in
untempered weld beads on the process side, CONTRACTOR shall either submit its

Exhibit C/Standard Specification for 3

Welding of Pipelines and Facilities
 proposals to show that the specified hardness limits have been met or shall post weld
heat treat the welds concerned. In either case weld qualification procedures shall be
carried out.

3.3 Pipes of highest carbon equivalent shall be welded under full-simulated conditions.

Visual and radiographic examination of the circumferential weld is to be performed prior to

sectioning for mechanical testing.

If the weld does not pass this examination, mechanical testing shall not be performed.

Test specimens of butt welded joints shall be cut from the joint at the locations shown in
attachment 2 to the Article. The number of specimens and the tests to which they are subjected
are given in Attachment 1 to this Article. The performance of testing and the cost involved shall
be for CONTRACTOR’s account.

Qualification test pieces shall be retained until such time as the respective welders may be
requalified.

3.3.1 Tensile test specimens shall be machined so that the sides are smooth and parallel
Attachment 7).

3.3.2 Root, face, nick break and side bend tests shall be performed on specimens as indicated
in Attachments 2, 6, 5 and 1. The preparation method and requirements shall be as stated
in 2.6 of API 1104.

3.3.3 Sets of three Charpy-V-Notch impact specimens (in accordance with ASTM A 370-74
and E 23-72) are to be taken from the four locations as shown in Attachment 2. Tests are
to be carried out at 0 oC and results are to meet impact properties shown under Article
1.7.9.

3.3.4 Macro specimens are to be examined for hardness and defects.

The specimens shall be as indicated in Attachment 1.

The hardness of the weld metal or heat-affected zone and the base material shall not
exceed 248 HV 10.

3.3.5 If the results of the welding procedure qualification are unsatisfactory the following
procedure shall be performed:

 Two additional tests of the type that failed shall be made, both of which shall meet
the said requirements.

 If one of the impact test specimens gives an unsatisfactory result and is obviously
caused by a local defect, a second test specimen may be taken and tested; only one
such replacement is permitted per set. If the test joint fails to meet the minimum
requirements for reasons other than defective preparation of specimens a new
procedure specification shall be established and the qualification test repeated.

Exhibit C/Standard Specification for 4

Welding of Pipelines and Facilities
4. QUALIFICATION OF WELDERS (Ref. API 1104 Sect. 3.0)

4.1 A welder qualification test form shall be completed and submitted to COMPANY for each
welder.

COMPANY or a designated qualified representative shall witness the test and judge the
specimens.

A welder may be disqualified at anytime during the test, if his performance is judged
unsatisfactory.

4.2 A welder shall be qualified by visual, non-destructive and/or destructive testing of his welds on
all phases in accordance with the specifications.

CONTRACTOR shall furnish all welding equipment and prepare all nipples to be used in the
testing of welders. COMPANY shall only furnish the pipe.

CONTRACTOR shall bear all costs in connection with the tests. COMPANY shall be supplied
by CONTRACTOR with a full radiographic film and report of each test weld. Each welder will
be required to make a position weld on a pipe nipple of the same dimensions and specification to
be used in the lines.

Downhill and uphill welders shall be qualified separately. The number and location of
destructive test specimens are given in Attachments 3 and 4. In addition to these tests a Vickers
hardness test (HV 10) may be carried out, see Attachment 9.

Test methods to be used for these specimens are stated in Article 3.3 of these specifications and
API Standard 1104.

4.3 All welders employed on the WORKS shall be tested to the satisfaction of COMPANY on pipe
of the specification and dimensions to be used in the WORKS. No welder shall be permitted to
perform welding until written notification is given.

4.4 All welders shall be allocated a unique identification.

5. DESIGN AND PREPARATION OF A JOINT FOR PRODUCTION WELDING

(Ref. API 1104 Sect. 4.0)

5.1 Pipe-ends when prepared for welding shall be regular and beveled to the correct angle. No
manual cutting will be allowed, and when pipe is cut by a flame-cutting machine, it shall be
dressed smooth by filing or grinding.

A zone at least 10 mm wide on the outside and inside surface of the pipe measured from the
welding edges shall be cleaned. If moisture is present, the joint shall be dried by use of an oxy-
fuel torch.

Welds joining the sections of the pipeline, or similar welds classed as tie-in welds shall be made
in the trench.

Exhibit C/Standard Specification for 5

Welding of Pipelines and Facilities
 Otherwise the alignment and welding shall be made alongside the ditch with the pipe supported
on skids, pads or other suitable means at least fifty centimetres above the ground and as approved
by COMPANY.

5.2 Immediately prior to the line-up of the pipes CONTRACTOR shall inspect the uncoated pipe
ends internally and externally for nicks, dents, general damage, laminations or other surface
defects.

5.3 If materials of different thicknesses are to be welded together, the welding ends shall be prepared
as shown in Attachment 8.

5.4 The radial offset (misalignment) is to satisfy the following requirements:

5.4.1 If the internal misalignment exceeds the allowable tolerance 1 : 4 internal beveling may
be employed. If CONTRACTOR proposes to use backwelding or internal welding, a
suitable procedure shall be submitted and qualified prior to production to ensure
satisfactory hardness values are obtained.

Backwelding after joint is completed shall not be allowed, unless

approved postweld heat treatment is carried out.

5.4.2 The pipe shall be laid in such a way that the longitudinal seam is situated on the 90 o top
sector of the pipeline, except in sag or overbend when the seam will be situated at the
side of the pipe, see Article 16 of these specifications. When a new pipe is welded on,
the longitudinal seam of this pipe shall be rotated through at least 100 mm relative to the
preceding pipe. A longitudinal joint should pass an appurtenance of a structural element,
at a distance of 50 mm minimum. In this case the minimum distance between the
staggered joints should be 50 mm at least.

5.4.3 The maximum "high low" allowed is 1.6 mm (1/16") and any greater misfit shall be
distributed about the periphery or swaged to fit with a bronze faced hammer, 5 kg
maximum or by any other methods as approved by COMPANY. Cold dressing shall be
held to an absolute minimum.

5.5 The use of internal line-up clamps for all nominal pipe sizes of 12" and larger is mandatory.

For making tie-in welds, and special welds joining valves, flanges, fittings, etc., where an
internal line-up clamp cannot be used, an external line-up clamp shall be used. The adjoining
lengths of pipe shall be accurately spaced before applying the stringer bead.

Pipe ends shall be spaced according to Article 3.2 (iii). The internal line-up clamp shall be held
firmly in position until the root bead is completed and the pipe has been supported properly. The
hot pass shall be applied in accordance with Article 3.2 (viii), and shall be completed before the
next pipe length may be moved into position, aligned and clamped to the pipe string.

5.6 When an external line-up clamp is used, the total length of the first pass shall be at least 50
percent of the total circumference and shall be equally distributed around the circumference
before the clamp is removed.

The pipe shall not be moved until both the first pass and the second pass have been completed.

Exhibit C/Standard Specification for 6

Welding of Pipelines and Facilities
5.7 For the angle of bevel see 3.2 (iii).

Damaged ends of pipe that are bent, cut or otherwise mutilated to an extent where in the opinion
of COMPANY faulty alignment or unacceptable welding would result shall be straightened,
repaired or cut off and rebeveled with a beveling machine of type approved by COMPANY.
After cutting, bevels may be checked by ultrasonics if required.

No extra compensation shall be paid to CONTRACTOR for such required repair or cutting and
beveling, unless the damage has been reported by CONTRACTOR prior to its acceptance of
PROJECT MATERIALS.

5.8 Pre-heating shall be carried out with prior approval of COMPANY and according to the
following guidelines:

5.8.1 When the ambient temperature is 0 oC (32 oF) or less, a preheat of 70 oC (158 oF) shall be
maintained during deposition of the first and second layers.

5.8.2 When the ambient temperature is less than 10 oC (50 oF), or when moisture has
condensed on the pipe, a hand warm preheat shall be applied.

5.8.3 Preheat may be required when any condition exists which might affect weld ability.
Examples of such conditions are:

 When heavy sections such as valves, special fittings or heavy wall pipe are being
welded.
 Where the hardness requirements cannot be met without some heat treatment.
 When small repair welds are being made.

When preheating is required, the following shall be taken into consideration:

Preheating shall be carried out in such a manner that a band extending at least 100 mm
on both sides of the welding edges around the entire circumference of the pipe is kept at
a constant and uniform temperature. The preheating temperature shall be checked using
temperature indicating crayons and shall be at the desired level, when welding
commences.

If the welding work is interrupted for more than 15 minutes before the required number
of passes have been made, the preheating temperature shall again be checked.

If the temperature is not up to the required level heat shall be reapplied.

Additional requirements may be specified if, in COMPANY’s opinion, conditions prevail

which might adversely affect the quality of the weld. In this case the preheating
procedure will be established by COMPANY and made known to CONTRACTOR.

Postheating may be necessary depending on the welding procedures used, and the eat
should be applied immediately upon completion of the weld.

Exhibit C/Standard Specification for 7

Welding of Pipelines and Facilities
 Postheating, like preheating, is an essential part of the welding procedure to be applied.
The method of applying heat and the temperature required will be established and
checked as part of the qualification of the welding procedure.

In the case of wind or rain, the welding shall be performed under proper shielding.
Covering of the open pipe end at the start of the string is required.

COMPANY reserves the right to discontinue all welding in the event of nonfulfilment of
the above-mentioned requirements.

5.9 Production welding shall be performed as follows:

 First Weld Pass (stringer bead).

Stringer beads shall be made by two or more welders (if pipe size is over 12 ").

They shall work simultaneously on opposite sides of the pipe (see also Article 3.2.8.

 Second Pass (Hot Pass)

The second pass shall be deposited immediately after deposition of the first pass has been
ground and cleaned and before the joint has cooled down.

 Filler and Finish Weld Pass (3rd, 4th, etc.)

The filler and finish passes shall be deposited, using as many welders as required to
maintain the desired progress.

 Maximum interpass temperature shall be 300 oC.

 Maximum weave to be three times rod diameter.

 All slag and excessive weld build-up shall be removed before deposition of each succeeding
weld pass.

 All weld passes shall be completed before commencing the succeeding weld pass.

 The starts and stops of weld beds from weld pass to weld pass shall be staggered. All slag
and scale shall be removed by power tools from each bead for visual inspection immediately
after each bead.

 After completion of the finish weld pass, the completed weld shall be thoroughly cleaned of
all slag, weld spatter and rust over a distance of 7 times the wall thickness.

 The finish welds shall be built-up from 0.5 mm to 2 mm above the surface of the pipe. The
welds must extend or overlap the outside of the V-groove not more than approximately 1.6
mm on each side.

 Should a section of the line, containing unfinished welds, fall from the skids,
CONTRACTOR shall immediately report the same to COMPANY.

Exhibit C/Standard Specification for 8

Welding of Pipelines and Facilities
  Each welder shall be required to mark that section of the weld he has worked on with his
code umber. Marking shall be done with weatherproof chalk (crayon). The use of stamps
for marking the welds is not allowed. The welder who makes the root pass shall write his
code at the top of the pipe; if, however, more than one welder welds the root pass, each
welder shall mark the top of the pipe with his identification code on the side on which he
has worked.

 Subsequent welders shall write their identification codes below the first code in the sequence
in which they work.

The identification marks may no be removed until after the welds have been inspected both
visually and non-destructively.

If any welder leaves the work his mark shall not be re-assigned to nor used by any other welder.
CONTRACTOR shall prepare and maintain weld history sheets (see Attachment 11).

The total length of a pipeline shall be divided in sections. CONTRACTOR shall give each weld
a number within the section and mark these numbers and sections on the DRAWINGS and on the
pipe adjacent to the weld. The pipe mill identification number of pipe joints one either side of
the weld shall also be recorded.

The identification system shall be approved by COMPANY.

5.10 For the number of welders working simultaneously on a girth weld see Article 3.2. (xiii).

5.11 All filler metals shall conform to the relevant American Welding Society (AWS) Specification
and must be approved by COMPANY. Copies of the consumable certificates shall be made
available to COMPANY for each lot or batch.

During storage and handling of welding consumables, care is to be taken to avoid contamination
by moisture, dirt, grease, oil, etc.

The storage recommendations for low hydrogen electrodes shall follow manufacturer’s
instructions and containers, ovens, etc. Shall be supplied by CONTRACTOR.

Any possible rebaking of low hydrogen consumable is to be carried out by agreement and
according to the manufacturer’s instructions.

Consumables, which have been contaminated are to be discarded. Heated quivers shall be used
for storage of electrodes during welding.

Unless otherwise specified by manufacturer, the following instructions shall apply for cellulose-
coated electrodes:

 No direct exposure to sun radiation.

 Protection from rain and splash.

Exhibit C/Standard Specification for 9

Welding of Pipelines and Facilities
5.12 Subject to the instructions of COMPANY, a pipeline shall be continuously constructed in
accordance with the agreed programme. Breaks shall be left for the purpose of testing as
required.

The minimum length of matching pieces ("pups") shall not be less than 1000 mm or two
diameters, whichever is the larger.

5.13 Roll welding may be permitted for certain shop fabrications. All procedures and welders shall be
approved by COMPANY and by qualification testing.

6. INSPECTION AND TESTING OF PRODUCTION WELDS (Ref. API 1104, Sect. 5.0)

6.1 The welds shall be visually inspected during welding and after the weld has been completed.
Non-destructive testing shall be carried out only on completed welds.

6.2 All circumferential welds joining pipes and appurtenances shall be fully radiographically
inspected unless otherwise staged or agreed upon in writing. If necessary, COMPANY will
determine when and in what way any further inspection of the welds shall take place. Welds
wherein the wall thicknesses at the welds differ by more than 50 percent of the lesser wall
thicknesses or are 30 mm or more may not only be tested radiographically but also ultrasonically.

Where pipe is cut out due to bad welding, damage to the pipe, buckles or faults discovered in the
pipe, the rebeveled ends will be examined by ultrasonics and wet MPI to a minimum of 50 mm
each side of the cut out.

Ultrasonic examination reports shall be made with a marked up sketch, indicating the item or
piece number, identification and qualification of the operator, device and calibration and shall be
signed and retained. All defects shall be noted.

6.3 COMPANY shall be privileged to cut out test pieces from the line so that at least one weld may
be tested for each welder employed. The cost for cutting out and restoring the pipeline as well as
the cost for testing will be borne by CONTRACTOR.

6.4 The internal pipe surface at the location of welds of all joints which are accessible for the
purpose shall be inspected throughout their circumference, full use being made of suitable optical
instruments, e.g. introscopes for quality acceptance.

7. STANDARDS OF ACCEPTABILITY (Ref. API 1104, Sect. 6.0)

7.1 Any weld which, as a result of radiographic examination exhibits imperfections greater than the
limits stated in the API Standard 1104 Section 6, if not superseded in this paragraph, shall be
considered defective and shall be so marked with an identifying paint marker and Article 8.2
shall apply.

7.2 Any individual instance of excessive stringer bead deposition shall not exceed 4 mm and shall
not be longer than 20 mm.

The total length of excessive stringer bead deposits in any 300 mm length of weld shall be
separated by at least 150 mm of sound weld metal.

7.3 Welds containing cracks regardless of size or location shall be unacceptable.

Exhibit C/Standard Specification for 10

Welding of Pipelines and Facilities
7.4 Inadequate penetration of root bead shall be unacceptable.

7.5 Incomplete fusion between root and bevel shall be unacceptable.

7.6 Unrepaired burned through areas shall be unacceptable. Radiographs of the repaired burn
through shall show proper repair.

7.7 Tensile strength tests shall meet the minimum ensile requirements.

7.8 Root-, face-nick break and side bend tests shall meet the requirements as set forth in 3.3.2.

7.9 The Charpy-V-notch impact test at 0 oC shall result in a minimum average energy (of 3
specimens) of 53 joules; individual minimum of the specimen shall be used preferably. If small
specimens are used straight interpolation is permitted.

7.10 Hardness values shall be 248 HV 10 maximum.

7.11 Nickel content in weld deposits shall not exceed 1%.

8. REPAIR OR REMOVAL OF DEFECTS (Ref. API 1104, Sect. 7.0)

8.1 Prior to welding CONTRACTOR shall submit for COMPANY’s approval full details of the
repair welding procedures to be adopted.

This shall include method of exploration and removal of defects, any preheat, postheat and
interpass temperature requirements, etc.

The repair procedure shall be qualified by making a repair procedure test weld, one for downhill
and one for uphill welding, if required.

The test weld shall be subjected to the same inspection, NDT and mechanical testing as for the
welding procedure qualification.

8.2 Production welds which do not comply with the Standards of Acceptability will be rejected and
cut out unless COMPANY approves repair of same.

8.3 All repairs shall be carried out the day after examination or earlier.

8.4 If grinding is performed the minimum grinding length shall be 100 mm.

8.5 After repair of a girth weld the whole circumference of the weld shall be re-radiographed.

8.6 All costs for remedial work including radiography and any other NDT shall be for
CONTRACTOR’s account.

8.7 All rejected weld cut-outs shall be clearly identified and stored by CONTRACTOR until
COMPANY confirms in writing that same may be disposed of a pup piece shall be installed in
place of the rejected weld at CONTRACTOR’s cost.

Exhibit C/Standard Specification for 11

Welding of Pipelines and Facilities