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RasGas Venture

Weekly Report – Week ending December 13 06, 2007


1. EXECUTIVE SUMMARY
Highlights
 Positive trend for Train 6 direct construction work continues with the sixth week of week-on-week
improvement, but this week’s progress (1.21%) is still below plan (1.67%). CCIC progress was lower
than the previous week, while Dodsal continues the improving trend. Work-front availability
continues to increase, but structural steel modification and rework in fabrication shops has impacted
further improvements in progress. Additional resources are in place to address these issues.
Contractor focus on further resource mobilization and opening of work-fronts continues.
Concerns
 CTJV performance on Train 6 continued to improve last week compared with previous weeks, but
remains below plan. Train 6 overall (total) construction progress for the week was 72% of the weekly
plan vs. 73% of weekly plan for the previous week. Overall (total) construction progress for Train 7
was 37% of the weekly plan while AKG-2 achieved 57% of plan. Common theme for all projects is
lack of progress on piping erection due to personnel shortages and lack of work-fronts.
 McDermott lay-barge KP1 mobilized to the field this week with plans to and is currently
setting up on location
to and start installation of the sleepers for the Dolphin offshore crossing
based on a recently improved weather forecast. ; early next week, depending
on continued favorable weather . Derrick-barge DB27 (transport affected earlier by poor weather)
arrived in Jebel Ali on December 9th for inspection/audit prior to mobilizing for the beach pulls.
2. SAFETY, HEALTH & ENVIRONMENT
This Week Year-to-Date 2007 Year 2006
First Aid Cases 0 124 77
Medical Treatment Incidents 30 22 19 7
Restricted Work Incidents 2 25 4

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Lost Time Incidents 0 8 8
Motor Vehicle Accidents 0 10 8
End-December 2006
Exposure Hours (end-November 2007) - 66.7M 41.8M
TRIR - 0.15 0.091
LTIR - 0.02 0.038

RGX2 Offshore:  Three Medical Treatment Incidents occurred:


  On December 9, a worker sustained lacerations to his right hand
fingers while attempting to re-position a 12-inch pipe spool to rest
on wooden skids in the Jebel Ali Fabrication Yard;  the pipe end
dropped trapping the IP's hand between the edge of the pipe and
the wooden skids,  the IP was wearing cotton gloves. 
 On December 11, a worker sustained a laceration to his right index
finger while clearing metal shavings from a pipe beveling machine
at the onshore pipeline installation site in Ras Laffan Industrial
City; the worker was wearing leather gloves. 
 On December 12, a worker sustained a laceration to his left index
finger in the pipe shop at the Jebel Ali Fabrication Yard; the IP's
finger came in contact with an electric grinder disk still in
decelerating motion; the IP was wearing leather gloves. 
RGX2 Onshore: Two Restricted Work Incidents occurred:
 On December 2, a worker sustained a laceration to his finger while attempting to place a wooden
wedge against a pipe; the pipe rolled slightly and pinched worker’s finger, he was wearing gloves.
 On December 6, a worker sustained a laceration and fracture to his fingers after his hand got
trapped between a running pulley and the safety bar of a crane drum while reeling a cable on to the
drum; he was wearing gloves.
In both cases medical treatment was administered and the workers were assigned to light-duties. Direct
Cause: Improper position for the task, failure to identify hazard/risk, failure to communicate. Immediate
Corrective Action: Passed the information on how to place a wedge and avoiding pinch-points to all
workers, included pinch-point in start-card meeting, circulated start card specific to lifting and rigging in

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lay-down area. In the second incident, root-cause investigation is in progress. Immediate Corrective
Action: Focus on hand safety on safety walk; site-wide hand injury campaign issued.
3. PROJECT MANAGEMENT
 Staffing:-
Plan 1) Actual Variance + / -
Offshore 2) 34 32 30 -4 -2
RGX2 235 195 -40
Offplot Projects 102 88 -14
Barzan 6 4 -2
Venture Functional Support 70 62 -8
TOTAL 445 379 -66
1) End-December Plan through VOC #37 – 07.
2) Plan through VOC #39-07
Plan Actual
Ve nture Sta ffing
395 414 430 436 445
357 365 379 379
400 340

200

0
De c. 2006 M ar . 2007 Jun. 2007 Se p. 2007 Cur r e nt

10,000 9 ,0 3 2 9 ,2 8 7
9 ,19 6
Offshore
8,000

Onshore (RGX)
6,000

4,000
2 ,76 2 2 ,8 6 6 3 ,0 3 8 666 Onshore (RGX2)
2 ,2 4 2 2 ,4 59
2 ,18 6
2,000
590 645 651 Offplots

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0
4 Weeks ago 3 Weeks ago 2 Weeks ago Last week

4. PROJECT CONSTRUCTION PROGRESS (WEEK-ENDING DECEMBER 6TH NOVEMBER 29TH)


Project Week Actual % Week Planned % Cum Actual % Cum Planned %

RGX2

Train 6

Onshore 1) 1.02% 1.43% 60.90% 77.34%

Offshore
WH6 Deck Fabrication 2) 1.6% 1.8% 73.5% 72.2%
WH8 Deck Fabrication 2) 0.5% 0.6% 66.6% 66.7%
Train 7

Onshore 3) 0.35% 0.94% 27.18% 27.06%

AKG-2

Onshore4) 0.45% 0.79% 23.25% 35.38%

AKG-1Option 4a (Ethane Recovery)

Onshore 5) 2.68% 1.54% 25.91% 63.44%


6)
Common Offplot Projects 1.30% 1.70% 48.00% 56.10%
1)
Train 6 Construction progress reporting based on CTJV latest 36 month to MAC, Level 4 (Rev 3) schedule. Calculated value
is based on 85% Physical Direct Construction and 15% Physical Construction Services.
2)
Train 6 (WH6 and WH8) deck fabrication progress calculation was revised to incorporate additional works
awarded to McDermott (agreed change orders) including Flow Assurance Upgrade workscope (i.e., permanent MEG
tanks) etc. Reporting is based on the revised basis.
3)
Train 7 plan aligned with original contractor Level 3 schedules; direct and indirect weightings under review. Level 4 Schedule
under review by PMT.
4)
AKG2 plan aligned with Contract Exhibit 7 (37 months); draft Level 4 Schedule under review by PMT.
5)
AKG-1 C2 Recovery schedule aligned with Contract (32 months). The “Plan Progress” being reconciled with the
Level IV schedule.
6)
Cum Actual progress figures have been re-weighted due to re-forecasting quantities based on IFC drawings.

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5. TRAINS 6 & 7
ONSHORE & OFFSHORE
 Accomplishments
- Offshore
 Cumulative WH6 deck fabrication progress is slightly ahead of plan: WH8
cumulative progress is essentially on revised plan.
 The following key equipment has been received to support deck
fabrication: three (of 8) 38-inch high pressure ball valves and
the WH8 instrument air package all arrived at the port in Dubai
and has cleared customs. The WH6 instrument air package
was received in Jebel Ali.
 The WH6 wye piece for the subsea flange assembly on the 38-
inch export pipeline has arrived at the port in Dubai.
- Onshore
Train 6
 Progress shortfalls continue to put pressure on mechanical completion.  Detailed schedule
analysis including Level 4 Schedule optimization workshops completed. Final timeline and
strategy for schedule assurance action plans implementation will be finalized by CTJV and
Company by mid-December.
 CCIC Construction metrics for the week:
CCIC This Week Last Week
Plan Basis – Recovery Forecast Plan Actual % Achieved Plan Actual % Achieved
Direct construction 1.50% 0.98% 65 1.56% 1.13% 72
Structural Steel Erection - Ton 160 126 79 196 190 97

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Pipe Fab - Welder Dia. Inch 10,344 11,692 113 10,344 14,212 137
Pipe Erection- Welder Dia. Inch 16,335 8,177 50 16,296 8,123 50
Electrical Cable Terminations 1) 147 165 112 144 165 115
1)
Main cable pulling completed Aug ’07.
 CCIC construction performance comments:
Piping erection continues to improve compared to previous weeks, but remains below plan.
Positive progress trend is expected to continue due to increased work-front availability. Total
number of welders for piping erection on Site is 290 vs. Recovery Plan of 393. Contractor
focusing on welder qualification process to ensure sufficient qualified welders to take full
advantage of available work-fronts.
Piping fabrication trending positively and achieved the planned weld dia. inch for the week.
Total number of pre-fabrication welders working in fabrication shop is 174 vs. a recovery
plan of 93.
Erection of small steel members (high manhour/ton) negatively impacted steel erection
progress. Pipe stanchion erection work is essentially complete.
 Dodsal construction metrics for the week:
Dodsal This Week Last Week
Plan Basis – Recovery Forecast Plan Actual % Achieved Plan Actual % Achieved
Direct construction 2.07% 1.24% 60 1.75% 1.22% 70
Structural Steel Erection - Ton 315 282 90 327 327 100
Pipe Fab - Welder Dia. Inch 13,197 8,151 62 13,660 6,010 44
Pipe Erection- Welder Dia. Inch 8,432 5,204 62 8,350 5,084 61
Electrical Cable Pulling - Meters 22,607 765 3 22,729 2,641 12
 Dodsal construction performance comments:
Completion of civil and structural works being expedited to open new work-fronts. Dodsal
continues mobilizing additional resources to further improve progress.
Structural steel progress lower than the previous week. Steel erection on hold in some
areas due to civil works and underground piping which, in turn, are receiving higher priority
in order to provide access for paving.
Progress on electrical and instrument cable pulling continues to be impacted by lack of
access to trenches.
Dodsal Managing Director and other senior staff toured site at PMT request to look at critical
path work areas and were asked to address ways to remove barriers to completing them
more quickly.
 YOC Controls Self Assessment completed on December 7; no significant findings.
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 Nitrogen Liquefaction Storage Skid delivered by airfreight to Doha utilizing Antonov 124 heavy-
lift aircraft on December 6.
Train 7
 Total construction progress was 0.35% for the week vs. 0.94% plan, while cumulative
construction progress was 27.2% actual vs. 27.1% plan.
 Impact of progress shortfalls on mechanical completion is under analysis, while Contractor is
producing detailed construction plan and schedule. Total construction progress anticipated to
fall behind plan next week based on current trends; cumulative direct construction progress has
been behind plan for several months.
 Current draft Train 7 Level 4 Schedule is of poor quality, lacks logic ties, and is heavily copied
from outdated Train 6 information. CTJV has been advised that schedule must be updated and
reissued for review. PMT working with CTJV in Train 7 Level 4 schedule optimization
workshops to understand contractor’s basis for schedule and to develop mitigation plans. PMT
continues to monitor to original Level 3 schedule until CTJV completes and delivers acceptable
Level 4 schedule.
 Emerging Issues
- Offshore
 The investigation report surrounding the non-conformance report issued onregarding
McDermott’s onshore pipeline subcontractor Medgulf has been completed and McDermott are
currently incorporating RasGas comments into the report for
final issue. have presented their investigation report. which is under review by RasGas
Offshore PMT. The McDermott remedial action proposal / plan and schedule has have
been received which is also under reviewed by Offshore PMT and is being finalized.
Replacement of affected welds from the pipeline has commenced. No impact to the respective
WH6 and WH8 mechanical acceptance dates expected due to this issue.
- Onshore
 Ucarsol Regeneration Gas Tower which was damaged during loading at Port of Masan, Korea

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has been returned to manufacturer Doosan for repair. Manufacture of replacement head is in
progress. Vessel is expected to ship from Doosan works in late-January, with arrival on Site
early-March, 2008.  CTJV studying heavy-lift schedule to mitigate delivery delay.
 Cargo damaged in transit on MV Rickmers Mumbai still is being evaluated. CTJV’s Force
Majeure claim remains open pending completion of damage assessment.
- Interpec – Sundyne Pump insurance inspection of damages scheduled began December 3
and planned to complete December 10.
- Union Pump – Boiler Feed Water Pump (one w/motor and one w/turbine): Insurance
inspection held December 6. CTJV and PMT awaiting full damage report, repair plan and
estimated time of arrival for repaired pumps at Site.  
 Belleli progress declined from last week at 1.1% actual for the week vs. 2.0% (Level 4 Rev. 4)
plan. Overall progress remains below plan primarily due to deferral of hydrotesting and painting
works to allow Dodsal access for civil and pipe support works.
 Near Term Plans
- Offshore
 The lift and installation of the WH6 helideck into final position is currently scheduled for
December 20th, per revised plan.
 Complete installation of the sleepers for the Dolphin Offshore
crossing.
 Construction risk assessment of the beach pull activities with
the DB-27 vessel is scheduled for December 23 rd. Target
mobilization for the beach pull is January 2 nd 2008.
 Operations manual for WH6/WH8 Platforms is being developed
by McDermott and is expected to be issued for review by year-
end.
- Onshore
 Train 7 Level 4 Schedule is expected to be issued by CTJV on December 10.
 Energize Substation SS-601 on December 12.
 CTJV Executive Meeting scheduled for December 13, in Doha.
 Start erection of main refrigerant compressor piping on December 15.
 Interconnecting piperack constructability workshop scheduled for December 16.
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6. AKG-2
ONSHORE & OFFSHORE
 Accomplishments
- AKG-2 passed through RGPMS Gate 4.
- Offshore
 Pre-Qualification Test (PQT) for the 28-inch Linepipe Fusion
Bonded Epoxy (FBE) Coating was carried out at Socotherm in
Qatar with satisfactory results.
 Pre-Inspection Meeting for the 28-inch and 24-inch valve
actuators was held with the vendor in Italy; no significant
issues.
- Onshore
 AKG-2 (Base Case) total construction progress was 0.45% for the week vs. 0.79% plan;
cumulative construction progress was 23.3% actual vs. 35.4% plan. Overall progress continues
to be affected by lack of resources for structural steel and piping works; l imited access due to
ongoing Train 6 and underground works impeding progress.
 CCIC construction metrics for the week:
CCIC This Week Last Week
Level 4 schedule (Rev.1) Sept ’07  Plan Actual % Achieved Plan Actual % Achieved
Total Direct Construction 0.83% 0.47% 57 0.77% 0.51% 66
Structural Steel Erection - Ton 79 36 46 130 86 66
A/G Pipe Fab - Welder Dia. Inch 19,803 5,985 30 17,263 7,054 41
A/G Pipe Erection-Welder Dia. Inch 714 196 27 483 142 29
Electrical Cable Pulling - Meters 2,625 0 0 2,221 0 0
 Dodsal construction metrics for the week:

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Dodsal This Week Last Week
 Level 4 schedule (Rev.1) Sept ’07  Plan Actual % Achieved Plan Actual % Achieved
Total Direct Construction 1.45% 0.44% 30 1.31% 0.32% 24
Structural Steel Erection - Ton 90 19 21 95 70 74
A/G Pipe Fab - Welder Dia. Inch 3,950 1,677 42 3,969 933 24
A/G Pipe Erection-Welder Dia. Inch 212 17 8 227 0 0
Electrical Cable Pulling - Meters 1,205 0 0 402 0 0
Civil works in Process Area progressed ahead of plan for the week. Progress for Utility, Inlet
Facilities and Slug Catcher areas remain behind plan due to access issues with ongoing Train
6 works.
Structural Steel: Process area main pipe rack erection works affected by modifications to
prefabricated structure fabricated by Hanmaek. CTJV working with Hanmaek to identify the
extent of rework/modifications required on structures and corresponding action plan.
Backfilling and ground assembling of structures being prioritized for main pipe rack erection
works in order to mitigate access issues related to ongoing underground works.
Above ground piping erection being negatively affected by slow progress in main pipe rack
installation.
Piping fabrication continues to be behind plan due to shortage of resources and availability of
work-fronts. Follow-up continues to mobilize additional resources for progress improvement.
 Change Orders: Four Bulletin 34 (inclusion of Train 6 design changes up to ‘Issue for HAZOP’
stage into the AKG-2 design basis) change orders approved last week and last two received this
week.
 Final 3D Model Review for YOC scope commenced on November 26 and is on track for
completion on December 14.
 AKG-2 Option 4a AKG-1 Ethane Recovery
- Construction progress was 2.68% for the week vs. 1.54% plan while cumulative construction
progress was 25.9% actual vs. 63.4% plan.
- Equipment erection continued this week with six items erected as planned. This will open up
work-fronts for equipment structures and piping.
 AKG-2 Option 4 –RLC Small Sales Gas
- Construction and punch list ‘A’ items completed, and CTJV issued request for Mechanical
Acceptance Certificate (MAC) on November 28, 2007 as per plan. Request for MAC currently
under review by PMT.
 Emerging Issues

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 Progress at Korean vessel fabricators Ilsung and Sungjin continues to slip behind schedule.
CTJV monitoring the situation and applying strong expediting efforts.
 Offgas Compressor retest was successful and vibration issue is now closed.
 Delays in delivery of late-identified additional structural steel may negatively impact project
schedule. Fabricator (Hanmaek) is implementing agreed mitigation measures (as reported
previously). CTJV and PMT monitoring the situation closely.
 CTJV submitted draft Level 4 construction schedule with EPC duration of 39.5 months (vs.
Contract 37 months). Following a review by PMT, CTJV and CCIC, a revised schedule was to
be issued by CTJV on December 6, but only partial and preliminary information was provided.
Timetable for formal submission of complete schedule is uncertain.
 Near Term Plans
- Offshore
 AKG-2 Offshore Construction Readiness Review (CRR) to be
held in early 1Q2008.
- Onshore
 Interconnecting Piperack constructability workshop scheduled for December 16.
7. RGX2 SPECIAL PROJECTS
 Accomplishments
Wet Gas Flow Assurance Upgrade
 Completion of Phase 1 Flow Assurance Upgrade facilities continue per plan with Onshore
Priority 1 supplemental water filtration and remaining MEG injection/heat tracing and insulation
facilities completed and handed over to Operations, along with the kinetic hydrate tank nitrogen
blanketing and MEG storage & injection facilities on WH9 and WH5.
 MEG
Offshore actual cumulative progress is 70% vs. planned cumulative of 96%.
systems installed and commissioned on three RGX platforms
(WH5, WH7, WH9). MEG system for WH4 completed and in

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process of being handed over. N2 systems installed and
commissioned on all four platforms. Hose reels installed on all
RGX platforms and hook-up complete on WH4.
 Held clarification meeting with Chiyoda for Phase 1b Onshore FEED.
 Tank A handed over to Flow Assurance Upgrade project for piping tie-ins.
Beach Valves
 Received “No Exception” taken response, from Kahramaa to RG plans for QPower to supply
power, and progressing for obtaining Letter of No Objection.
RGX Close out
 All outstanding change orders (total value $18M) approved. One remaining change order
($100K) expected to be approved by early-December.
 Issued Final Completion Certificate (FCC) for the Offshore WH7
Platform and Pipeline Facilities.
TOR Wells
 Completed fabrication of NFR 5-12 flow line tie-in spool for the
TOR Wells.
 Near Term Plans
Wet Gas Flow Assurance Upgrade
 Prepare for Gate 2 review for Phase 1b early-December.
 Complete handover and commissioning of WH4 MEG system
and hose reel hook-up on WH5, WH7 and WH9.
8. COMMON OFFPLOT PROJECTS
 Accomplishments
General

Completed the factory acceptance test for control systems of Distribution Control System (DCS),
Process Emergency Shutdown (PESD) and Fire & Gas System (FGS) for all COP projects, as
per plan.

Completed installation of all main transformers in Condensate Phase 1 area and of zig-zag type
transformers in LPG area.
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Engineering
 Engineering: 272 of 369 punch list items remain open.
Site works progress: 48.0% complete vs. 56.1% plan; this week 1.3% actual vs. 1.7% plan.

Tanks (CB&I): cumulative progress is 62.0% complete vs. 69.2% plan; progress for the week
1.3% actual vs. 1.2% plan. Completed construction activities on Plant Condensate tank T-
102A/B. Hydro-test process on Naphthenic Caustic Tank T-111 in progress. Continued working
punch list items and touch-up painting on Plant Condensate tanks T-102C/D.

Civil, Concrete & Underground Piping (Al-Hajri): cumulative progress is 65.1% complete vs.
64.3% plan; progress for the week 1.5% actual vs.1.2% plan.

Control Buildings and Substations (Astaldi Arabia): cumulative progress is 98.3% complete vs.
99.5% plan; progress for the week 0.7% actual vs. 0.3% plan. Energization and commissioning
of Local Control Building (LCB-02) instrument systems in progress.

LNG Buildings (Nasser Al-Hajri): cumulative progress is 44.0% complete vs. 41.7% plan;
progress for the week 1.4% actual vs. 2.2% plan.

Mechanical, Electrical and Instrumentation (Nasser Al-Hajri): cumulative progress is 26.2%
complete vs. 43.7% plan; progress for the week 1.3% actual vs. 2.2% plan. Completed
installation and air-test of all piping on the LPG Flare. Improved production rate for cable
trenching and pulling continued for the week.
 Emerging Issues

Lack of progress by Nasser Al-Hajri on the mechanical, electrical & instrumentation (MEI) work –
subcontractor manpower is currently 3,634 and still behind the recovery plan. For the week
some increase in progress rate. Currently pursuing plans to add 25 superintendent-level
positions to assist Nasser Al-Hajri in work planning and execution; of the additional staff, 5 have
been mobilized.

Equipment transport incident - damage occurred to a Siemens motor cooler for LPG
Compressor C when it fell off the truck transporting it for installation. Tap-Root investigation and
repair-plans are underway.

Shaw-Nass spool production behind recovery plan - Fluor/RasGas senior management will be
making weekly visits to Shaw-Nass’s facility to monitor production. Shaw-Nass schedule

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recovery with strategic transfer of work to Nasser Al-Hajri fabrication yard in Saudi Arabia is
under discussion.

Kahramaa now indicating February 20, 2008 timing for shutdown of IPP to tie-in RL 2 Sub-
station. Impact on COP mechanical completion dates for CCS&L Phase 1 and LPG Phase 2
likely. PMT have requested Kahramaa to air-freight the test equipment that they require to
shorten the mobilization time from 10 weeks to 5 weeks and mitigate any slippage in COP
schedule.
 Near Term Plans.

Complete Condensate bypass by end-December, 2007.

Complete Astaldi work on Storage Central Control Building (SCCB) by mid-December.

Complete hydro-test program on Condensate Phase 1 Tanks by mid-December.

Gate 5 IPR planned for mid-February 2008.
9. BARZAN PROJECT
ONSHORE & OFFSHORE
 Accomplishments
General

Continuing to progress Gate 2 deliverables to support release of the Early Project Execution
Plan (Rev. A) and Project Design Memorandum (Rev. A) for review the week of December 17.
- Offshore

Proposal for jackets and drilling templates engineering received from McDermott on December 7
and under evaluation.

Meeting held with McDermott on December 2 in Doha to discuss topsides/pipeline Request for
Proposals and potential strategies for procurement, construction and installation award of the
jackets and drilling templates.

Topsides and pipelines FEED Request for Proposal issued to McDermott on December 7.

Draft report for additional Living Quarters at RasGas Alpha issued confirming technical feasibility
of either roof-top or cantilevered expansion options. Related EPC cost estimates developed by
McDermott are under review.

Concept Design Risk Assessment/HAZID workshop held on December 3 & 4; no new significant
issues identified.

Meeting held on December 11 between the Offshore PMT and
the Barzan team concerning execution strategy of the jackets
and drilling templates work scope.
- Onshore

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FEED Invitation to Tender bidders meetings in progress at contractor’s home offices December
3-10. At first four bidders meetings, contractors expressed strong interest in submitting FEED
proposal.

Met with QP to review Residue Gas Compressor Study (driver and steam update) and H2S
Flexibility Study.

Award recommendation from WGI for Site Geotechnical and Topographical Survey work with
EM for approval. Targeting placement of work order through WGI by December 17.
 Emerging Issues

Optimize operations support for offshore facilities (shore-based vs. RGA Living Quarters
expansion).

Timely completion of shareholder commercial agreements to avoid schedule impact.

Timely availability of staffing during a period of high industry activity.
 Near Term Plans

Finalize development and approval of FEED organization plan by year-end at Gate 2 approval.

Barzan Project Steering Committee meeting scheduled for December 13 in Doha.

Onshore Layout Workshop with QP in Doha January 9-10 (proposed).

Gate 2 IPR rescheduled to January 28 – February 1.

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