DECREE OF THE DIRECTOR GENERAL OF OIL AND NATURAL GAS

Number : 84.K/38/DJM/1998
CONCERNING
GUIDELINE AND PROCEDURE FOR WORK SAFETY INSPECTION ON
INSTALLATIONS, EQUIPMENT AND TECHNIQUES USED IN OIL AND
NATURAL GAS MINING VENTUES OPERATION AND THERMAL RESOURCE
ENTERPRISE

THE DIRECTOR GENERAL OF OIL AND NATURAL GAS,

Considering: whereas in the effort towards the smooth implementation of work

safety inspection on installations, equipment and techniques used in
oil and natural gas mining ventures and thermal resource enterprise
and as a further implementation of Regulation of the Minister of
Mining and Energy Number 06 P/0746/M.PE/1991 dated 19
November 1991, it is regarded as necessary to stipulate a Guideline
and Procedure for Work Safety Inspection on Installations,
Equipment and Techniques Used in Oil and Natural Gas Mining
Ventures and Thermal Resource Enterprises in a Decree of the
Director General of Oil and Natural Gas;

In view of: 1. Law Number 44 Prp of 1960 (State Gazette Year 1960 Number
33, Supplementary State Gazette Number 2070);
2 Law Number 8 of 1971 (State Gazette Year 1971 Number 76,
Supplementary State Gazette Number 2971);
3 Mijn Politie Regrement 1930 (Sb. 1930 Number 341);
4 Government Regulation Number 11 of 1979 (State Gazette
Year 1979 Number 18, Supplementary State Gazette Number
3135);
5 Presidential Decree Number 22 of 1981 dated 1 June 1981
juncto Presidential Decree Number 45 of 1991 dated 11
October 1991;
6 Presidential Decree Number 374/M of 1995 dated 23
November 1995;
7 Regulation of the Minister of Mining and Energy Number
02/P/M/Pertamb/1975 dated 10 March 1975;
8 Decree of the Minister of Mining and Energy Number
02/P/M/Pertamb/1979 dated 30 June 1979;
9 Decree of the Minister of Mining and Energy Number
521/Kpts/1979 dated 20 June 1979;
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 10 Regulation of the Minister of Mining and Energy Number 06
P/0746/M.PE/1991 dated 19 November 1991;
11 Decree of the Minister of Mining and Energy Number
300.K/38/M.PE/1997 dated 28 April 1997;
12 Regulation of the Director General of Oil and Natural Gas
Number 43P/382/DDJM/1992 dated 19 September 1992;

HAS DECIDED ;

To stipulate: DECREE OF THE DIRECTOR GENERAL OF OIL AND NATURAL

GAS ON GUIDELINE AND PROCEDURE FOR WORK SAFETY
INSPECTION ON INSTALLATIONS, EQUIPMENT AND
TECHNIQUES USED IN OIL AND NATURAL GAS VENTURES
AND THERMAL RESOURCE ENTERPRISES.

Article 1
(1) Every definition or meaning used in this Decree shall be the definition or
meaning as referred to in Article 1 of Decree of the Minister of Mining and
Energy Number 06P/0746/M.PE/1991 dated 19 November 1991.
(2) In addition to the provision set in paragraph (1), referred to in this Decree by:
a. Certificate of Feasibilility for Use is an approval issued by the Director
General on the operation or use of an Installation and Equipment upon
performance of a Work Safety inspection, in the form of an Installation
Use Feasibility Certificate (SKPI) and Equipment Use Feasibility
Certificate (SKPP);
b. Directorate General is the Directorate General of Oil and Natural Gas;
c. Director is the Technical Director of Oil and Natural Gas Mining;
d. Technical Directorate is the Technical Directorate of Oil and Natural Gas
Mining;
e. Mining Inspector Head is the Head of Oil and Natural Gas Mine
Inpection;
f. Mine Inspection Proceedings is a Directorate General official appointed
by the Director General;
g. Company is Pertamine, Contractor of Production Sharing Contract,
Technical Assistance Contract, Joint Operating Body, and other Pertamina
working partners in an Oil and Natural Gas operation and Joint
Operation Contract in Thermal Resource Enterprise;
h. Service Company is a Technical Inspection Service Company engaged in
oil and natural gas mining and thermal resource enterprise that has
received an appointment from the Director General.

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 Article 2
(1) A Work Safety inspection must be performed on the Installations and
Equipment in an oil and natural gas mining operation.
(2) Work Safety inpection as referred to in paragraph (1) shall be performed on an
Installation and Equipment which:
a. Is about to be installed or constructed;
b. Is being installed or constructed;
c. Has been installed or constructed.
(3) Work Safety inspection on any equipment which has been made to order rather
than mass-produced may be performed at the site of the equipment
manufacturing.

Article 3
Installations and equipment subject to mandatory Work Safety inspection shall be as
specified in Appendix I to this Decree.

Article 4
(1) Work Safety Inspection on Installation and Equipment as referred to in Article
2 shall be performed by the Mine Inspector and or by a Service Company.
(2) Procedure for Work Inspection on Installations and Equipment shall be as
specified in Appendix II to this Decree.

Article 5
(1) Installations and Equipment on which a Work Safety inspection has been
performed shall be issued an Installation Use Feasibility Certificate (SKPI) and
Equipment Use Feasibility Certificate (SKPP) by the Director General.
(2) Installation Use Feasibility Certificate (SKPI) and Equipment Use Feasibility
Certificate (SKPP) as referred to in paragraph (1) shall be valid for a period of
five (5) years for SKPI and three (3) years for SKPP, or less than the
aforementioned period if the Installation and Equipment has been modified or
has shown dubious capacity.
(3) After the expiry of the period referred to in paragraph (2), a Work Safety
inspection must be performed on the installation and Equipment as referred to
in Article 2.

Article 6
After an evaluation is performed on the technique to be used as referred to in
Appendix I letter C, the Director General cq the Director shall grant an authorization.
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 Article 7
The fee for Work Safety inspection on an installation and Equipment performed by a
Service Company shall be determined based on the mechanism of the oil and natural
gas labor market.

Article 8
Within six (6) months after the applicability of this Decree, any Company that has
already been in operation or used Installations and Equipment and have not
observed the provisions and this Decree shall be obligated to submit an application
for Work Safety inspection on the Installations, Equipment and Techniques to be
used to the Directorate General cq. Technical Directorate.

Article 9
In the event of any shortcomings at the Installation or Equipment upon performance
of the Work Safety inspection, the Company must, in the time frame set by the
Director, make corrections or adjustments so that the Installation and Equipment
with comply with the requirements of the prevailing laws and regulations.

Article 10
This Decree shall come into force on its stipulation date.

Stipulated in Jakarta
On 19 August 1998

Director General of Oil and Natural Gas,

Oepraptono Soeleiman

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Appendix I Decree of the Director General of Oil and Natural Gas
Number: /38/DJM/1998
Date:

INSTALLATIONS AND EQUIPMENT SUBJECT TO MANDATORY

WORK SAFETY INSPECTION

A Installation
1. Exploration and Exploitation Installation :
a. Drilling installation;
b. Production installation;
c. Collection installation;
d. Other installation relevant to Exploration and Exploitation
activities.
2. Refinery and Treatment Installation
a. Refinery and Treatment Installation;
b. Loading and Unloading;
c. Other installation relevant to Refinery and Treatment activities,
either directly or indirectly related to the activity in question.
3. Stockpiling and Marketing Installations in question are:
a. Seafed Depot Installation;
b. Inland Depot Instalation;
c. Aircraft Loading Depot Installation (DPPU);
d. Terminal Transit Installation;
e. Public Petroleum Refueling Station (SPBU) and Gas Refueling
Station (SPBG);
f. Other installation related to stockpiling and marketing activities.
B Equipment
1. Safety Valve is a device that serves to protect the equipment and facility
in question including:
a. Safety Valve ;
b. Relief Valve ;
c. Safety Relief Valve ;
d. Thermal Relief Ralve ;
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 e. Pilot Operated Safety Valve ;
f. Vacuum Relief Valve.
2. Pressure vessel and similar equipment, i.e., equipment that works with
the working presure inside the equipment exceeding ½ atmospheric
pressure (gauge), or a vacuum vessel with a working pressure inside the
equipment being less than 1 Atm absolute.
3. Lifting Device is an equipment to move, transport goods vertically and
horizontally over a specified distance, including:
a. Moving Lifting Device ;
b. Stationary Lifting Device ;
c. Overhead Lifting Device ;
4. Electrical Equipment is equipment that generates, distributes and control
the electrical system including:
a. Power Generator Unit;
b. Power Transformer Unit;
c. Sweachgear Unit;
d. Motor Control Center Unit.
5. Rotary equipment is equipment that serves to move or compress oil, gas
and geothermal power including:
a. Compressor Unit;
b. Pump Unit.
6. Distribution pipes are pipelines and other related facilities used to
channel and to distribute oil and natural gas and geothermal power.
C Technique to Be Used
Technique to be used is the procedure to be used in an oil and natural gas
mining operation including:
1. Welding Procedure Specification (WPS) and Procedure Quality Record
(PQR) ;
2. Welder/Welding Operator Work Record (Certificate);
3. Distribution Pipeline Pressure Testing Procedure;
4. Lifting Device Weight Testing Procedure;
5. Repair, Modification and Alteration Procedure.

Stipulated in Jakarta
On, 1998
Director General of Oil and Natural Gas
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Soepraptono Soeleiman

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DOG84-1998.PDF 7
Appendix II Decree of the Director General of Oil and Natural Gas
Number : /38/DJM/1998
Date :

PROCEDURE FOR WORK SAFETY INSPECTION ON INSTALLATIONS AND

EQUIPMENT

I. INSTALLATION WORK SAFETY INSPECTION

A Installation Work Safety Inspection includes planning review with an
examination of the data on:
1. Process equipment, utility and waste processor;
2. Measuring gauges and meters;
3. Pipelines;
4. Instruments;
5. Safety devices;
6. Stockpiling tank;
7. Fire prevention and control system;
8. Environmental pollution prevention and monitoring system;
9. Other equipment;
10. Process flowchart and pipeline & instrument diagrams;
11. Equipment layout;
12. Civil work;
13. Hazardous area classification;
14. Electrical one line diagram ;
15. Grounding lay-out;
16. Cause & effect diagram/SAFE Chart;
17. Equipment operation working procedure;
18. Emergency evacuation procedure;
19. Approval or recommendation from the competent authority for the
Environmental Protection Management and Monitoring program.
B Physical inspection
Physical inspection includes:
1. Installation Inspection to verify the Installation's compliance with the
planned specifications, manufacturing and installation procedure.
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 2. Inspection of Equipment Quality Comprehensiveness, Work Safety
Technique and Environmental Protection, including:
a. Fire extinguisher;
b. Fire, heat, smoke, and hazardous gas detectors;
c. Personal safety and protection equipment;
d. Communication system;
e. Emergency shutdown system);
f. Stairway, lamps, balustrade and handrail inspection;
g. Flaring ;
h. Rock Muffler ;
i. Environmental pollution prevention and control equipment;
j. System to eliminate static electricity and other electrical current
hazards;
k. Work safety signs, such as: warning signs, prohibitions, color codes,
and other signs.
3. Inspection of the Comprehensivenes of Equipment Use Feasibility
Certificate, Platform Construction Feasibility Certificate and Permission
for Use from the Technical Agency such as;
a. Safety valve
b. Pressure vessel and other similar equipment;
c. Rotary equipment (pump unit and compressor unit);
d. Electrical Equipment;
e. Lifting Device;
f. Distribution Pipeline;
g. Offshore Rig Structure;
h. Boiler & Steam Vessel, Navigation Aids, Measuring Devices &
Meters, Balances, Helideck, Radioactive Substances, Explosives,
etc.;
i. Personal safety and protection equipment.
4. For the special case of drilling Installations, regular inspection must be
performed in accordance with the Implementation Guideline for Safe
Onshore and Offshore Operation in Indonesia (KK-01-DJM)
5. Pre-Commissioning, Commissioning dan Startup Inspection.
C Reporting
Preparing the entire technical inspection results into a document for
submission to the Director of the Technical Directorate of Oil and Natural
Gas as evaluation material for the issuance of the Installation Use
Feasibility Certificate.
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II. WORK SAFETY INSPECTION ON EQUIPMENT:
A WORK SAFETY INSPECTION ON SAFETY VALVES
Technical inspection on safety valves includes :
a. Document Study
– P&ID (Piping & Instrument Diagram)
– Safety valve doments
– Name plate
– Safety valve types:
* Conventional
* Pilot
* Balance
– Test bench use Feasibility Certificate
– Pressure gauge/indicator Calibration Record
– Cold diff test pressure calculation, to determine actual
opening pressure
b. Test proceedings
– Opening pressure test.
– Leakage Test.
c. Test Result Record
Test result record is completed based on the sfety valve documents,
name plate data and testing data as evaluation material for the
issuance of the Equipment Use Feasibility Certificate.
d. Sealing
Safety valve sealing shall be performed by the Mining Inpector on
safety valve controls tested with good results using a Migas Seal.
B WORK SAFETY INSPECTION FOR PRESSURE VESSELS AND
SIMILAR EQUIPMENT
Technical Inspection for pressure vessels and similar equipment is
differentiated into three (3) parts:
1. New and or uninstalled pressure vessel and similar equipment
2. Old and or installed pressure vessel and similar equipment
3. Repaired/altered/modified pressure vessel and similar equipment.
B.1. Technical inspection of new and or uninstalled pressure vessels and
similar equipment.
a. Data study including:
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 – Construction plan and pressure vessel calculation;
– Specification of the material to be used;
– Welding procedure specification and procedure qualification
record and welder/welding operator working qualification
record (certificate);
– Non-destructive testing procedure and its personnel
qualification;
– Repair procedure;
– Posst-welding heat treatment procedure (if required);
– Pressure test procedure;
b. Physical inspection including:
– Verification of manufacturer's quality control system;
– Identification of the material to be used;
– Verification of vessel construction;
– Verification of interface installation;
– Verification of welding preparations;
– Welding result inspection and non-destructive test result
verification;
– Vessel dimension measurement and internal inspection;
– Leakage test and pressure test;
– Verification of manufacturer's form and vessel name plate.
c. Pressure test;
– Inspection of measuring device and pressure meter
calibration record, including the permitted reach for the test
pressure concerned, in which the maximum indicator cale for
the equipment in question should be 1.5-4 times the test
pressure.
– Pressure test shall be performed by raising the pressure
gradually and recording it with the pressure meter until the
predetermined test pressure, then the pressure is kept for a
minimum of two (2) hours and afterwards the pressure is
released gradually.
d. Reporting
The entire technical inspection result shall be prepared in document
form to be submitted to the Director of the Technical Directorate of
Oil and Natural Gas Mining as evaluation material for the issuance
of the Equipment Use Feasibility Certificate.
B.2. Technical inspection of old and or installed pressure vessel and similar
equipment
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 a. Data study including:
– The Equipment Use Feasibility Certificate to be renewed;
– Vessel use history record;
– Vessel construction plan (as-built drawing);
– Copy of name plate or other hard marking;
– Safe working procedure for the inspection.
b. Physical inspection includes;
– Vessel condition visual inspection
– Verification of most recent vessel thickness measurement
result by the Company.
– Vessel thickness measurement.
– Non-destructive test (if required).
– Verification of vessel well leftover calculation result
c. Reporting
Preparing the entire technical inspection result in document format
for submission to the Director of the Technical Directorate of Oil
and Natural Gas Mining as evaluation material for the issuance of
the Equipment Use Feasibility Certificate.
B.3. Technical inspection of repaired/altered/modified pressure vessels and
similar equipment.
a. Data study including:
– The Equipment Use Feasibility Certificate to be issued and or
renewed;
– Vessel use history record;
– Building and vessel construction plan;
– Copy of name plate or other hard marking;
– Safe working procedure for the inspection;
– Repair/alteration/modification procedure;
– Repair/alteration/modification calculation;
– Substitute material specifications;
– Welding procedure specifications and procedure qualification
record and welder/welding operator work qualification
record (certificate);
– Non-destructive test procedure and its personnel
qualification;
– Post-welding heat treatment procedure (if required);
b. Physical inspection, including :
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 – Verification of manufacturer quality control system;
– Identification of the material to be used;
– Verification of vessel construction;
– Verification of interface installation;
– Verification of welding preparations;
– Welding result inspection and non-destructive test result
verification;
– Vessel dimension measurement;
– Leakage test and pressure test (if required);
– Verification of manufacturer's form and vessel name plate;
– Verification of vessel thickness measurement result by the
Company;
– Vessel thickness measurement;
– Verification of remaining vessel age calculation result;
c. Reporting
Preparing the entire technical inspection result in document format
for submission to the Director of the Technical Directorate of Oil
and Natural Gas Mining as evaluation material for the issuance of
the Equipment Use Feasibility Certificate.
C WORK SAFETY INSPECTION FOR LIFTING DEVICES
Work safety inspection for lifting devices include:
a. Document study
• Planning specification and weight table
• Planning calculation
• Planning graph
• Material to be used
• Interface specifications
• Power source to be used
• Operation Manual
b. Physical inspection
• Interface inspection
• Load holder hook inspection
• Moving and rotating parts inspection
• Hydraulic/pneumatic system inspection

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 • Wire rope condition inspection including cover ties and
number of twists
• Verification of indicator functions
• Body dimension verification
• Counterweight verification
• Test preparation inspection
– Test site preparation
– Test procedure
– Test aid preparation including:
- Load cell
- Test weight
- Other measuring devices
• Qualified operator
c. Test proceedings
– Weightless function test
– Weight test according to the weight test procedure authorized
by the Director.
d. Post-testing inspection
Inspection of the entire weighted and moving or stationary parts to
identify possible deformities, cracks, loosened bolts and or other
defects.
e. Special inspection.
– If the lifting device is damaged or has a doubtful capacity.
– If a principal correction or alteration has been made on the
lifting device.
f. Test result record
Test result record is completed based on the lifting device data and
test result.
g. Reporting
Preparing the entire technical inspection result in document format
for submission to the Director of the Technical Directorate of Oil
and Natural Gas Mining as evaluation material for the issuance of
the Equipment Use Feasibility Certificate.
D WORK SAFETY INSPECTION FOR PUMP UNITS, COMPRESSOR
UNITS AND THEIR MOTOR.
Technical inspection of pump units, compressor units and their motor
includes:
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 a. Evaluation on the construction of the pump unit, Compressor unit
and its motor by undertaking data planning;
– Planning specifications;
– Planning graph and calculation;
– Specifications of the material to be used;
– Specifications of the interface to be used;
– Specification of the main and supporting components and the
safety devices used;
– Operation and maintenance guideline.
b. Manufacturing evaluation by executing an inspection report study
performed by an independent Third Party at the manufacturer,
consisting of:
– Identification of materials;
– Verification of instrument pipes;
– Verification of main component testing;
– Balance test result;
– Hasil uji balans ;
– Alignment inspection result for the coupling and
pump/compressor axis with its motor;
– Result of the factory acceptance test performed at the
manufacturer;
– Inspection of the motor system.
c. Physical inspection, i.e., inspection that follows an installation
process for the pump unit/ compressor unit and its motor at the
installation site by:
– Equipment and component identification;
– Foundation condition and structure inspection;
– Measuring device and safety device comprehensiveness
inspection;
– General inspection on the installation condtiion of the Pump
unit/compressor unit and its motor;
– Mechanical, electrical and instrumental testing;
– Safety device tryout
– Start-up execution inspection
– Capacity testing.
d. Reporting

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 Preparing the entire technical inspection result in document format
for submission to the Director of the Technical Directorate of Oil
and Natural Gas Mining as evaluation material for the issuance of
the Equipment Use Feasibility Certificate.
E WORK SAFETY INSPECTION FOR DISTRIBUTION PIPELINE
Technical inspection for distribution pipelines include:
a. Document study :
– General
• Location
• Construction completion schedule
• Planning specifications
• Welding procedure specification and procedure
qualification record and welder/welding operator
working qualification record (certificate);
• Repair procedure
• Specifications of the material to be used
• Operation and maintenance procedure
• Drying and cleaning procedure
• Safety device data
– Construction design
• Distribution pipeline map study including:
* Maximum and minimum depth of distribution
pipeline (specifically for offshore distribution
pipeline)
* Slope
* Trench depth
* Maximum supported breadth
* Right of Way (ROW)
• On-site pipe bend method study include:
* Pipe diameter
* Pipe thickness
* Pipe bend radius
• Distribution pipe weight study
* Operational weight, including own weight,
internal and external pressure, buoyancy heat
expansion, etc.

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 * Environmental weight, e.g. tide, current, wind,
earthquake, etc.
* Installation weight, such as buckling, residual
stress occurring during pipe installation.
• Distribution pipe strength calculation study, such as:
* Tension occurring on the distribution pipeline,
buckling, on-bottom stability (specifically for
offshore distribution pipeline)
* Distribution pipeline support calculation
* Calculation of the test pressure to be applied.
• Corrosion control calculation study include:
* Corrosion characteristics
* Corrosion control method
* Coating specifications and dimension
* Required corrosion control
• Study of related facilities and instrumentation sytem
such as:
* Related pipeline e.g. riser, pig launcher, pig
receiver, sistem metering etc.
* Reinforcement station
* Instrumentation system e.g. emergency shutdown
system, safety valves, etc.
• Study of approval or recommendation from the
competent agency for environmental protection
management and monitoring program.
– Operation plan data study
• Service
• Specific gravity
• Incoming normal pressure
• Outgoing normal pressure
• Maximum operating pressure
• Operating temperature
• Operating flow rate
b. Physical inpection includes:
– Identification of the material to be used;

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 – Inspection of the distribution pipeline location to verify the
area classificaiton, construction type and safe distance
available;
– Inspection of welding preparations, axis unity and pipe
connection alignment;
– Inspection of support system and trenches;
– Study of non-destructive test result
– Condition and record of corrosion control and pipe weight
system test result (specifically for offshore distribution
pipeline);
– Inspection of cleaning and drying in the distribution pipeline;
– Inspection of safety device comprehensiveness;
c. Pressure test proceedings inspection
– Comprehensiveness of test equipment consisting of;
– Dead weight tester (DWT)
– Pressure meter
– Temperature meter
– Pressure recorder
– Temperature recorder
– Pumps
The meters and recorders should be calibrated prior to use, and the
maximum indicator scale shall be 1.5-4 times the test pressure.
d. Pressure test
Pressure test shall be performed by raising the pressure gradually
up to the test pressure and keeping it teady for a minimum of
twenty four (24) hours for onshore distribution pipeline, eight (8)
hours for offshore distribution pipeline, and two (2) hours for
thermal team distribution pipeline.
e. Reporting
Preparing the entire technical inspection result in document format
for submission to the Director of the Technical Directorate of Oil
and Natural Gas Mining as evaluation material for the issuance of
the Equipment Use Feasibility Certificate.
F WORK SAFETY INSPECTION FOR POWER GENERATOR UNITS,
TRANSFORMER UNITS, SWITCHGEAR UNITS AND MOTOR
CONTROL CENTER UNITS
Electrical Equipment technical inspection includes:
a. Document study

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 • Standard to use;
• Electrical equipment unit specification/ data sheet
(Generator, Transformer, Switchgear and Motor Control
Center);
• Planning graph;
• Planning and construction specifications ;
• Materials specificatons;
• Planning calcultion (when required);
• Maintenance operation procedure;
• Area classification;
• Safety devices;
• Isolation class.
b. Physical examination includes:
• Equipment and component inspection
• Name plate verification
• On-site installation condition general inspection
• Classification area assembly layout inspection
• Control panel inspection
• Main cable terminal and neutralizer inspection
c. Testing includes:
• Isolation resistance testing
• Control panel testing
• Hi-pot cable testing
• Safety relay setting
• Synchronization testing
• Automatic start unit emergency testing
• Weightless and weighted testing
• Reception evaluation (test value)
• Pre-commissioning and commissioning
d. Reporting
Preparing the entire technical inspection result in document format
for submission to the Director of the Technical Directorate of Oil
and Natural Gas Mining as evaluation material for the issuance of
the Equipment Use Feasibility Certificate.

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 Stipulated in Jakarta
On 1998

Director General of Oil and Natural Gas

Soepraptomo Soeleiman

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