Project Execution Plan

East Condensate Injection System Improvement

PEP Number
Date August 3rd, 2007
Charge Center
Priority Medium
Required Completion Date: 30 April 2008
Target Completion Date: 31 March 2008
Estimated Cost: US$ 107,800

Prepared by: Requested Reviewed by Reviewed by Reviewed Approved by: Approved by:
by: by:

Elias Hari Adrian Maintenance Terry S Rex D.G. Newell

Sinuraya Widianto Supt. Indra Soeparjadi

Background:

The current operating condition of the east condensate injection system which serves
Units 4/5/6 creates high O&M cost due to the operation of the water distribution
pump driven by diesel engine in addition to the operation of CIS-P-28 and P-29.
To improve the O&M cost, the one condensate pump that has enough capacity to
handle the current operation has been selected. During normal operation, P-28 and P-
29 is planned to be put in stand by mode.

Project Objective

Reduce the current operating cost of the east condensate injection system to
approximately US$ 96,000 per year and reduce CO2 releases by eliminating the diesel
engine usage.

Project Description

Perform engineering design and manage project implementation to install the new
condensate pump and all associated piping, electrical and instrumentation system
adjacent to the existing system. The tie-in works will be designed and executed in
such a way to ensure minimum process loss of the running units.

Scope of Work

 Develop mass balance to determine the condensate flow to be injected.

 Revise PFD and PID of the existing system.
 Perform pressure loss calculation to ensure that the preliminary design is
sufficient.
 Perform hydraulic calculation for equipment selection.
 Perform calculation for flow control valve sizing.
 Design and construct pump pedestal.
 Design and execute electrical and instrumentation modification on the existing
system to accommodate new pump.
 Prepare project execution plan and budget
 Perform Hazard Analysis
 Getting approval of project execution plan and budget
 Prepare MRF to purchase required material
 Construct the facility
 Provide as built drawing
 Commissioning and turnover to operation
 Lesson learn
 Closing the project

Team Member and Responsibilities

Endorser : Rex Soeparjadi

Decision Executive : D.G. Newell

Decision Review Board : Terry S Indra, Acting Maintenance Supt., Agus

Soedarsa.

Project Manager : Hari Widianto

Team Members : Plant Engineering group: Adrian, Otto Hari

Karyawan, Elias Sinuraya, Agus Setiawan.
E&C group: Aristo Joeristanto, Djumirin, Dahono
O&M: Production Supervisor and Rijadi Budiman

Project Economics

This project is not subjected to return of investment, but will reduce the current
operating cost approximately US$ 96,000 per year. The project DPI is calculated at
10.24. The total initial costs to purchase and install all materials required with 10%
contingency is US$ 107,800

Project Cost Control

The cost estimate is attached. The cost estimation was based on preliminary
engineering. The cost may change as a result of market price. All CRF, Work request,
Material requisition developed to support this project shall be reviewed and sign by
the project coordinator.

Project Schedule

The project duration for this phase is approximately 30 days for administration work
and 4 (four) months for purchasing and construction work. For detail schedule of this
project, please see the schedule in the attachment.
Safety Issue

General safety rules must be applied. All workers must wear the necessary safety
gears as follow: hard hats, safety boots, hand gloves and goggles as appropriate. Lock
out/tag out procedure must be followed as necessary.

Quality Control Issues

The system shall be designed and built according to the specification and standards set
by CGS. Special attention shall be given to the following:
1. Welder Qualification / Welding procedure
 Ensure the validation of the Welding Procedure Specification (WPS), Procedure
Qualification Records (PQR) and Welder’s Performance Qualification (WPQ)
 Utilize Certified Welder, verify MIGAS welding certification.

2. Material Availability
 Schedule work based on material availability
 Inspect material as it arrives on site
 Mill certificate for all valves, pipes and fitting shall be provided
 Condensate pump documents shall be provided

3. Safety Inspection
 Conduct safety inspection of construction sites weekly
 Review contractor’s record of safety inspection and meetings conducted in the
field.
 Ensure that the contractor is in compliance with the company safety policy and
contractor requirements.

4. Completion of Construction Phase / Punch List

 Inspect project to determine if it was built to specifications.
 Conduct a joint walk through with field personnel and review punch list non-
conformance.

Hazard Analysis Screening

See Appendix D

Project Risk Management

To minimize risk and to provide safety and protection for:

 Personnel
 Equipment
 Company asset
 Environment
A hazard analysis (job safety analysis), will be performed for each non-routine task or
project in the field, and a Process Hazard Analysis will also be performed should there
be any changes to a previous design.

Appendix

A. Project economic analysis

B. Cost estimation
C. Project schedule
D. Hazard screening / hazard analysis
E. Project checklist
F. Project PFD.
 Attachment A – Project economics.

Ec o no mic Analys is (NPV)

Alte rnative 3 - Current Operatio n s e tting vs . Ne w pump

No. De s cription Year
Curre nt Se tting (P-28, P-29 and WDS) 2008 2009 2010 2011 2012 …… …….2034 2035 2036 2037 2038 2039 2040
1 Ca pita l cos t 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
2 O&M cos t $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00
Total $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00 $188,131.00

New s e ttings (Ne w pump)

1 Ca pita l cos t $107,800.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
2 O&M cos t $32,800.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00
Total $140,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00 $65,600.00

$47,531.00 $122,531.00 $122,531.00 $122,531.00 $122,531.00 $122,531.00 $122,531.00 $122,531.00 $122,531.00 $122,531.00 $122,531.00 $122,531.00
NPV @ 10% ra te $47,531.00 $144,475.29 $236,534.64 $320,224.96 $396,307.08 $1,063,664.37 $1,072,161.08 $1,079,885.36 $1,086,907.44 $1,093,291.14 $1,099,094.51 $1,104,370.30
DPI 10.24