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Pelikan & Naga

Project Execution Plan

DOCUMENT No. CO-10-100-100-00-AA-G-001

Rev Issue Date Pages Rev Description Prepared Checked Approved


No.
A 10th June 2010 Issued for Concept Selection IS PJ PJ
Gate
B 10th March 2011 Issued for Project Sanction IS RI PJ
C 29th Feb 2012 Re-issued for Project GA PJ AML
Sanction
D 16th Aug 2012 Updated to Reflect Latest GA PJ AML
Project Status
PREMIER OIL INDONESIA
Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

TABLE OF CONTENTS

1.0 INTRODUCTION.......................................................................................................4
1.1 Document Purpose...............................................................................................4
1.2 Premier Oil’s Operations in Natuna Block A..............................................................4
1.3 The Pelikan and Naga Fields...................................................................................5
1.4 Project Objectives.................................................................................................5
1.5 Project Management.............................................................................................6
2.0 PROJECT STATUS...................................................................................................7
2.1 Project Pre Sanction Milestones.............................................................................7
2.2 BPMigas Communication.......................................................................................7
2.3 Joint Venture Partner Communication....................................................................7
3.0 PROJECT SCOPE OF WORK.....................................................................................9
4.0 HSE STRATEGY....................................................................................................11
4.1 Environment.......................................................................................................11
4.2 Project Risk Identification and Mitigation...............................................................12
4.3 Process and Operational Safety............................................................................12
5.0 CONTRACTING STRATEGY....................................................................................14
5.1 Overall Contracting Strategy.................................................................................14
5.2 Long Lead Item (LLI) Procurement.........................................................................14
5.3 Final Investment Decision (FID).............................................................................14
5.4 Local Content.....................................................................................................14
5.5 EPCI Structure and Bidding...................................................................................15
6.0 PROJECT SCHEDULE.............................................................................................16
7.0 GENERAL PLAN FOR EACH PROJECT STAGES...........................................................17
7.1 Engineering........................................................................................................17
7.2 Procurement......................................................................................................18
7.3 Onshore Fabrication and Construction and Pre-Commissiong/Commissioning...........19
7.4 Offshore Installation............................................................................................20
7.5 Naga and Pelikan Offshore Hook-Up and Commissioning.........................................21
7.6 GBCPP Modification............................................................................................21
8.0 OPERATIONS STRATEGY.......................................................................................23
9.0 PROJECT RESOURCING.........................................................................................24
9.1 Internal Resource Requirements...........................................................................24
9.2 Cost Estimate.....................................................................................................24
10.0 PROJECT CONTROLS............................................................................................25
10.1 Project Execution Management Standard..............................................................25
10.2 Project Procedures and Controls:..........................................................................25
10.2.1 Project Interface and Co-ordination Procedure......................................................25
10.2.2 Reporting........................................................................................................... 25

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PREMIER OIL INDONESIA
Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

10.2.3 Meetings............................................................................................................ 25
10.2.4 Change Control...................................................................................................26
10.2.5 Document Control...............................................................................................27
10.2.6 Risk Management Plan........................................................................................27
10.2.7 Project Quality and Verification Plan.....................................................................27
11.0 REFERENCES.......................................................................................................28

1.0 INTRODUCTION

1.1 Document Purpose

The purpose of this document is to define the Project Execution Plan (PEP) for the Pelikan
and Naga development project.

1.2 Premier Oil’s Operations in Natuna Block A

Premier Oil entered Block A in 1996 by acquiring Sumatra Gulf Oil. At the time the Anoa
field was an oil producing asset. In 1999 Premier Oil, as part of the WTNS consortium,
signed the first gas sales supply agreement (GSA1) to export gas to Sembgas (Singapore)
through a 650km pipeline.

KERAPUPSC
T H A IL A N D o o o

1 0 2 E 1 0 4 E 1C
0AK
6ALAN
EGPSC

NATUNASEA
BLOCKA(AreaI)
PremierOil BARONANGPSC
Proposed
F Petronas Lawit Je rne h
Sem angkok NORTH-W EST
Keroh
Genting
Bali ng NATUNASEA
Sungei Patan i BLOCKA(AreaII)
Kuala Ker ai PremierOil
Guntong
Ta pis KAKAP
Gerik (NorthernBlock) NATUNASEA
An oa CS tarEnEergy
LYD BLOCKA(AreaV)
Bu tterworth
Kuli m Temengor Kuala Trengg anu
PremierOil
P e n a n g KAKAP
Bertam NATUNASEA (SouthernBlock) NILAPSC
Parit Buntar BLOCKA(AreaII) StarEnergy COPI NATUNASEA
Marang PremierOil Ka ka p BLOCKA(AreaIV)
PremierOil
Taiping
Duyong NILAPSC o

Po rt Weld So tong COPI 5 N


S.NATUNASEA
BLOCKBPSCEXTENSION
Terang
K uala Dung un
ANAMBASI (AreaIII)
Sanyen COPI S.NATUNASEA
Ipoh Gua Musang
BLOCKBPSCEXTENSION
Pa ka
(AREAII)
M erapoh S.NATUNASEA COPI
C O N OC O
Pengkala n Batu Gajah BLOCKBPSCEXTENSION
Baru K e r te h (AREAII) SOUTHNATUNASEA
Chi gar Perah
COPI BLOCKB(AreaI)
COPI
P E N I N S U L A R 4 x 250 MMCFd SOUTHNATUNASEA
Proposed 2 x 500 BLOCK‘B’PSCEXT.(AREAII)
Tapah
LP G COPI
L umut
Kuala L ipis
M A L A Y S I A S

M TBE LPG Exp ort Termin al


Telok 55,000 DWT
Bidor
Anson
Sg. Lembing
Sungkai Jeruntu t
K uantan
Jeran song
SOUTHNATUNASEA
Paya Besar BLOCKBPSCEXT. (AREAIV)
Bagan Datoh
Tanjong M alim
Krau
Gambang COPI N a tu n a S ea
Ku ala Kubub aru
Bentong
ta tio n

Pekan
Temerl oh
Kuala Selangor K g. Bharu
Tra n sp or

Sultan Salahudd in Nenasi


Abd. A ziz
K u a la Lu m p u r
Cannaugh B ridge o
Shah Alam Kuala Kelawang
K elang 3 N
tu n a

Petoh
A n a m b a s
We st N a

Seremban Is l s .
Kuala Rompin

Rembau Gemas
Port Dickson Endau
Tamp in
M ersing
Alor G ajah
Labis

Melaka B ekok Jemaluang


Bagan S iapiapi

Muar
P aloh

K eluang

Reng gam
Batu Pahat
Ko ta Tinggi
Kulai

Guntu ng
Senai Tebrau

Jo h o r B a r u Pasir gudang

Sunga i Paknin g
ge
Bar

B in t a n
B a ta m

Danai

Burung

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PREMIER OIL INDONESIA
Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

Figure 1: Natuna Sea Block A and WTNS Pipeline Route

Gas from the Anoa, Pelikan, Bison and Gajah Putri fields are sold under GSA 1. In 2001 the
first GSA1 production asset – the AGX platform - was bridge linked to the Anoa platform
and began gas export into the WTNS pipeline

In 2008 a second gas sales agreement was concluded with Sembgas (GSA 2). GSA 2
covers gas sales from the Gajah Baru, Naga and Iguana fields. On the back of this gas sale
the Gajah Baru project was initiated.

On completion in Q4 2011 the Gajah Baru production asset has the capability to deliver
up to 215 mmscfd of gas into the WTNS pipeline. In addition the Gajah Baru facilities will
act as a compression hub for future fields (Pelikan, Naga, Iguana and Bison).

1.3 The Pelikan and Naga Fields

The location of the Pelikan and Naga gas fields in relation to the Gajah Baru (GB) facilities
are shown in Figure 1. Pelikan is located 31km south west of Gajah Baru while Naga is
19km south of Gajah Baru.

It is noted that Pelikan and Naga are just two fields within a southern gas accumulation
which also includes the Bison and Iguana discoveries and the Laba-Laba and Bekantan
prospects. Bison and Iguana are 10km and 16km south of Pelikan respectively.

Figure 2: Natuna Sea Block A Prospects Map

1.4 Project Objectives

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PREMIER OIL INDONESIA
Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

 To deliver safe and reliable production facilities that will contribute positively to the
corporate ALARP objectives.
 To achieve a zero LTI record throughout the project.
 To obtain JVP, Premier Corporate and Governmental approval for the project within
Q1 2012.
 To maximise the value of the Block A Asset, consistent with meeting Premier Oil PLC
strategic objectives and those of its Joint Venture Partners and the government of
Indonesia.
 To deliver a robust engineering solution that will satisfy the respective GSA sales
requirements in terms of volumes, availability and reliability through life of field. In
particular the facilities and maintenance requirements shall be consistent with those
of a Normally Unmanned Installation.
 To deliver the project on schedule and within budget

1.5 Project Management

The indentified PONSBV project management for the Naga and Pelikan Development
Project is shown below.

Role Name
Project Sponsor Mr Patrick Jennings

Gate Keeper Mr Zahid Mir

Project Manager Mr Ghulam Aziz

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PREMIER OIL INDONESIA
Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

2.0 PROJECT STATUS

2.1 Project Pre Sanction Milestones

To the following pre-sanction activities have been completed:

Activity Consultant / Company Date


In house /
Concept Engineering May–Sept 2010
Genesis Oil and Gas Consultants
Geophysical and Geotechnical Site
PT Pageo Oct–Dec 2011
Surveys
Facilities FEED Engineering PT Technip Indonesia Dec 2010-Mar 2011

Pipeline FEED Engineering PT Wood Group Indonesia Dec 2010-June 2011

EPCI Tender July 2011-April 2012

Full Project Sanction April 2012

The Naga-Pelikan EPCI tender completed in April 2013 and consortium Swiber-SMOE was
selected as the successful Bidder.

2.2 BPMigas Communication

Initiation

The project was introduced to BPMigas at a workshop held in Bogor on the 30 th of April
2010. It was established that Pelikan could be progressed under the 1997 GSA 1 POD
while Naga could be conducted under the 2008 GSA2 POD.

Contracting Strategy

 On 16th December 2010 PONSBV socialized single EPCI contracting strategy to


BPMigas. As a result of this meeting, and at the request of BPMigas, a
Contracting Strategy Paper was written and submitted to BPMigas in January
2011 [Ref 1].

 At a further meeting held on (22nd February 2011) BPMigas agreed to proceed


with a single EPCI contracting strategy (see Section 5.0).

 In preparation of the EPCI and LLI Tender Plan submissions a FEED progress
workshop was held with BPMigas on the 3 rd of March 2011.

 The LLI procured by PONSBV includes primary and secondary structural steel,
jacket anodes, line pipe material, riser material and tie-in valves at Gajah Baru.

 An existing TSSC Contract can be utilized to provide required resources and


services during execution of the project.

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Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

BPMIGAS approved project AFEs in August 2011 and AFE revision to reflect EPCI tender
result was also approved by BPMIGAS in July 2012.

2.3 Joint Venture Partner Communication

Partners were introduced to the project at a partners meeting held in Jakarta on June 8 th
2010. Further updates have been given at regular OCM / TCM meetings with the latest
conducted on February 23rd 2012.

All Partners have approved AFEs and sanctioned the project prior to signing of EPCI
Contract.

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PREMIER OIL INDONESIA
Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

3.0 PROJECT SCOPE OF WORK

The detailed Scope of Work (SOW) is defined in the ITB contract documentation. The ITB
package includes the detailed SOW, Basis of Design (BOD) (including comprehensive
exhibits and attachments).

In summary however the Concept and FEED engineering has established that the Pelikan
and Naga fields can be developed with two Normally Unmanned Wellhead platforms
connected to the Gajah Baru compression platform via multiphase carbon steel pipelines.
Power and communications will be supplied to these platforms via subsea umbilicals.

Each wellhead platform has the following features / systems:

 Helideck integrated into the platform main deck


 Small boat landing
 5MT pedestal crane
 Duplex stainless steel flow lines and production header (rated to well pressure)
 WHCP / HPU
 Vent header
 Closed Drain header
 Closed Drain Vessel and Pump
 Wet gas metering
 A light weight tripod jacket
 Umbilical termination
 Power distribution
 Corrosion / Methanol Injection
 Allowances for future subsea developments (import risers, J-Tubes, additional
switchgear etc)

The Pelikan subsea equipment has the following features:

 12” x 31 km of linepipe with protective coating


 31km of Power & Communications umbilical
 A WTNS crossing for both the pipeline and umbilical (Pelikan crosses the main
WTNS pipeline)
 Pipeline Subsea Isolation Valve (SSIV - incorporated into a common PLEM) at
Gajah Baru

The Naga subsea equipment has the following features:

 14” x 19 km of linepipe with protective coating


 19 km of Power & Communications umbilical
 A WTNS crossing for both the pipeline and umbilical (Naga crosses the Kakap spur
line)
 Pipeline Subsea Isolation Valve (SSIV - incorporated into a common PLEM) at
Gajah Baru

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PREMIER OIL INDONESIA
Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

To tie into the Gajah Baru Facilities the following works are required.
 Installation of the incoming Naga and Pelikan flow lines
 Installation of the Naga and Pelikan Pig receivers
 Tie in of the GSA1 and GSA2 slug catchers
 Re-wheeling of Train A and B Compressors
 Re-commissioning of the Train C Compressor
 Installation of the GSA1 and GSA3,4 allocation gas metering
 Installation of the HPU to provide hydraulic system to SSIVs from Naga and
Pelikan .
 Tie-in of umbilical to newly installed Gajah Baru TUTU with electrical cable
subsequently connected to the extended Gajah Baru MV switchgear and
communication cable is connected to ICS marshalling system in the CCR.
 Update Gajah Baru ICS logic to accommodate Naga-Pelikan control logic and
associated logic changes at Gajah Baru.

The EPCI contractor will be responsible for the engineering, procurement (except for LLI
procured by PONSBV), construction, installation, hook up and pre commissioning of all
systems / facilities prior to hydrocarbon introduction. The EPCI contractor will also be
responsible for the engineering, procurement and installation of all Gajah Baru brown
field modifications.

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PREMIER OIL INDONESIA
Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

Figure 3 – Proposed Naga and Pelikan Wellhead Platforms, Pipelines and Umbilicals Schematic

4.0 HSE STRATEGY

4.1 Environment

Both Pelikan and Naga have been considered under the existing AMDAL prepared for
Gajah Baru (ref. “Additional Environmental Management Plan (RKL) and Environmental
Monitoring Plan (RPL)”; October 2009). Both developments are listed within this body of
work as wellhead platform tie-backs to Gajah Baru. However, the referenced Additional
RKL/RPL approval did not cover subsea umbilicals for Naga and Pelikan development as
they were not anticipated as part of project scope when the Additional RKL/RPL was
submitted.

A meeting involving Ministry of Environment (MOE), BPMIGAS and PONSBV regarding


subsea umbilicals for Naga and Pelikan project was conducted on February 14 th 2012. In
the meeting, for simplicity purpose MOE suggested to include description and
environmental impact of Naga and Pelikan subsea umbilicals into Anoa Phase-4

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PREMIER OIL INDONESIA
Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

Additional RKL/RPL which will be submitted for MOE approval in March 2012. However,
unlike Anoa Phase-4 project which requires approval of Anoa Phase-4 Additional RKL/RPL
in March 2012, approval of Additional RKL/RPL covering description and environmental
impact of Naga and Pelikan subsea umbilicals needs to be secured not later than January
2013. As insertion of description and environmental impact of Naga and Pelikan subsea
umbilicals into Anoa Phase-4 Additional RKL/RPL as suggested by MOE will jeopardize
timely approval of Anoa Phase-4 Additional RKL/RPL, it was decided that Naga-Pelikan
project need to have separate submission of Additional RKL/RPL to MoE. Preparation for
the submission is carried out by an independent party with extensive experience in the
same business.

4.2 Project Risk Identification and Mitigation

Project risk assessment exercises were held on June 17 th 2010, December 1st 2011 and
February 8th 2012in Jakarta. It is planned to have a risk assessment at the end of August
2012. The objective was to identify the major project risks (commercial, regulatory,
technical, HSE) and to log these into a project risk register.

The risk register is a live document which will be regularly reviewed and updated for
tracking the project and is located in the following folder:

N:\P&D\Naga&Pelikan\09. PMT Proc and Admin\03 Risk Management\Risk Register and


Definition Sheets

The major risks currently identified are:


 WTNS pipeline crossing
 Contractor performance, including HSE performance
 Project resourcing
 GBCPP Modification works

4.3 Process and Operational Safety

The project will follow the Premier Oil Process Safety Review (PSR) system, details of
which can be found in [Ref 2], with the following timeline:
 PSR-1 was completed on 25th August 2011.
 PRS-2 was performed from 5th to 8th December 2011
 PSR-3 will be performed immediately after onshore construction activities
commence and is now scheduled for September 2012.
 PSR-4 will be performed before offshore installation activities commence (March
2013)
 PSR-5 will be performed before offshore precommissioning/commissioning
activities commence (June 2013)
 PSR-6 will be performed not later than 6 months after handover to Operation
team (January 2014 for GBCPP Modification and August 2014 for Naga and
Pelikan platforms)

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Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

The facilities FEED included both facilities HAZID and HAZOP. Both workshops were
independently chaired by Nobal Denton. A detailed design HAZOP and HAZID was
conducted in the week commencing 23 rd July with report is registered, reviewed and
actioned through SHEAMS.

Naga and Pelikan will follow a safety case regime similar to the UK safety case
regulations.   During the EPCI execution, a design safety case will be developed by project
team.  Germanischer- Lloyd Noble Denton has been appointed as an independent
verification body (IVB) to review and endorse the list of safety critical elements and their
associated performance standards.  The design safety case will have to be approved by
Premier HSE Corporate

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Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

5.0 CONTRACTING STRATEGY

5.1 Overall Contracting Strategy

The Naga and Pelikan Development project will be executed under a single lump sum
EPCI contract with selective Long lead Item (LLI) procurement. BPMigas has accepted this
recommendation.

The above strategy makes sense for a number of reasons not least the large number of
engineering, procurement, construction and installation synergies that can be achieved
by executing very similar platform / subsea scopes at the same time.

5.2 Long Lead Item (LLI) Procurement

Project scheduling indicates that to achieve Pelikan and Naga “Ready for Drilling” in
September 2013 primary and secondary steel will be required as a LLI. PONSBV has - as
much as possible - limited the procurement packages conducted by PONSBV.
Procurement in Indonesia is subject to BPMigas PTK 007 process and it requires
considerable resources to be conducted effectively. Given the Jakarta organisation
workload (Gajah Baru, Phase 4, Anoa support) it is considered prudent to move as much
of the procurement into the EPCI contract as possible.

The primary / secondary steel will be ordered at the end of the facilities FEED and free
issued to the EPCI Contractor. Jacket anodes, riser material, line pipe material and Naga-
Pelikan tie-in valves in GBCPP are also included into LLI which will be ordered by PONSBV
and free issued to the EPCI Contractor. All other long lead equipment including cranes,
subsea isolation valves, umbilicals and allocation gas meters will be procured under the
EPCI contract.

5.3 Final Investment Decision (FID)

The EPCI LOI is expected to be awarded in early Q2 2012. Therefore the FID decision will
be required late Q1 2012.

Prior to project sanction LLI will be procured with payments required before the FID.
Separate AFEs for these LLIs will be submitted to Corporate and JV partners. For
BPMIGAS, the LLIs has been included in the already approved Facilities and Subsea AFEs
as well as in the 2011 and 2012 BPMigas Work Progress and Budget.

5.4 Local Content

BPMigas targets 35% local content for new Greenfield CAPEX development. The nature
of the Naga and Pelikan development is that this figure will be difficult to achieve. Much
of the cost on Naga and Pelikan is associated with materials procurement and installation
– neither of which will result in high local content. Larger projects can obtain higher local
content through significant engineering and fabrication components. These aspects will
form a smaller percentage of the Naga and Pelikan scope.

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Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

The successful Naga-Pelikan EPCI Contractor has committed to a local content of more
than 35%. Local content assessment will be conducted during execution of project to
ensure Contractor meet the commitment. It is planned to have the assessment in Q1
2013 and Q1 2014.Currently there is an issue in Indonesia regarding the cabotage law
requiring all commercial vessels operating in Indonesia to be Indonesian flagged. Latest
development on this issue is that Government of Indonesia postpones implementation of
the law until 2015. Naga and Pelikan project will not be impacted by the cabotage law.

5.5 EPCI Structure and Bidding

A single lump sum EPCI contract will be employed for all Naga and Pelikan facilities.

The EPCI contract will follow the Gajah Baru contract template. Several articles in
contract exhibits have been revised based on lesson learned during exection of the Gajah
Baru project. As an initial basis the following exhibits to the General Terms and
Conditions will be produced (as required).

Contract
GTC Articles 1 - 45 inclusive
EXH I Scope of WORKS
EXH II Basis of Design Package
EXH III Administration Procedures
EXH IV Parent Company Guarantee
EXH V Performance Bond
EXH VI Transfer Agreement
EXH VII Lease Agreement (Not Used)
EXH VIII Joint Venture Declaration
EXH IX Key Milestones
EXH X Contract Price and Payment
EXH XI Organisation and Key Personnel
EXH XII Subcontractors and Subcontract plan
EXH XIII Quality Assurance Statement and Plan
EXH XIV Project Execution Plan & Schedule
EXH XV Method Statement
EXH XVI Acceptance of WORKS
EXH XVII Health, Safety and Environment
EXH XVIII Services for COMPANY & COMPANY Available Facilities
EXH XIX Procurement Plan
EXH XX Marine Warranty Surveyor
EXH XXI Design Plan
EXH XXII Fabrication Facilities
EXH XXIII Offshore Installation and Hook Up Plan
EXH XXIV CONTRACTOR’s Company Particulars
EXH XXV Workload
EXH XXVI Indonesian Local Content
EXH XXVII Letter of Intent
EXH XXVIII Declaration no Tech / Commercial Exceptions/ Qualifications
EXH XXIX Not used

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Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

EXH XXX COMPANY Furnished Material

There is a brown field component to the EPCI contract i.e. the Gajah Baru modification
works. As normal, this brown field work is bid on a reimbursable basis. During
execution, Request For Service (RFS) will be issued to the eventual EPCI Contractor for a
certain scope of the GBCPP Modification Work. If a lumpsum price is agreed for the RFS
then scope under that RFS will be executed on lumpsum basis.

The contract will be tendered under the PTK 007 system using a two stage process.
Therefore final EPCI pricing will be submitted after 1 or 2 rounds of technical
clarifications. The project schedule allows six months for the tender and award of the
EPCI contract.

6.0 PROJECT SCHEDULE

The current level three project schedule is given Appendix I. Key milestones are listed
below.

Milestone Date
EPCI Effective Date of Contract 13 Apr 2012

Pelikan Fabrication and Load Out Complete 23 Aug 2013


Pelikan Jacket and Deck Installation Complete 27 Aug 2013
Pelikan Subsea Installation Complete 09 Sep 2013
Pelikan Ready for Drilling 12 Sep 2013
Pelikan Drilling Complete 26 Jan 2014
Pelikan Mechanical Acceptance 12 Mar 2014
Pelikan First Gas 18 Mar 2014

Naga Fabrication and Load Out Complete 23 Aug 2013


Naga Jacket and Deck Installation Complete 30 Aug 2013
Naga Subsea Installation Complete 18 Sep 2013
Naga Ready for Drilling 30 Sep 2013
Naga Drilling Complete 18 Jun 2014
Naga Mechanical Acceptance 30 Jun 2014
Naga First Gas 06 Jul 2014

GBCPP Modification Mechanical Completion 30 Sep 2013

Overall Project Final Acceptance 31 Jul 2014

The project schedule assumes that all facilities are installed before the 2013/2014
monsoon weather window. Both Naga and Pelikan platforms are scheduled to achieve
“Ready For Drilling (RFD)” state in September 2013. “Ready for Drilling” shall mean that
the platforms have been installed, hooked up to the respective pipelines and umbilicals,
commissioned (non hydrocarbon) as much as practical, and both pipelines and umbilicals
have been completely commissioned such that only final well tie-ins and Well Head
Control Panel commissioning are required post drilling. Well tie-ins include piping,

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Block A – Pelikan and Naga Project Execution Plan
16th August 2012 REV D

instrument, and tubing to Christmas Trees. As Naga and Pelikan platforms will be
monitored and controlled from Gajah Baru CPP, all modification works related at GBCPP
with Naga and Pelikan tie-ins must be completed in order to achieve RFD for both
platforms.

The baseline for drilling schedule is to immediately mobilize drilling rig to Pelikan
platform as soon as Pelikan RFD is achieved and drill 3 wells at Pelikan over the
2013/2014 monsoon weather window. Drilling at Pelikan will complete at the end of
Janury 2014 and whilst it is still in the midst of monsoon season the drilling is not
expected to move straight to Naga platform. Depends on weather, drilling rig may be
moved to exploration well before mobilized to naga platform. In such scenario,
mobilization of drilling rig to Naga platform is expected to occur in March 2014 to drill 3
wells until June 2014.

Post drilling hook-up and commissioning at Pelikan platform can only be performed after
2013/2014 monsoon season is over. Assuming mobilization commences on March 1 st
2014, Mechanical Acceptance for Pelikan platform can be achieved on March 12 th 2014
with First Gas from Pelikan to follow on March 18 th 2014. For Naga platform, post drilling
hook-up and commissioning can be performed immediately after drilling activities
complete. Mechanical Acceptance for Naga platform can be achieved on June 30 th 2014
with First Gas scheduled for July 6 th 2014. This scenario requires two mobilizations of
post drilling hook-up and commissioning campaign at different period which is not cost
effective. The Naga-Pelikan EPCI Contract is set so that PONSBV can request single
mobilisation of post drilling hook-up and commissioning campaign when Naga drilling
completes. Cost will be saved with single campaign on the expense of later first gas from
Pelikan than two campaigns scenario. Decision will be made later by considering amount
of cost saving and gas demand in 2014.

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16th August 2012 REV D

7.0 GENERAL PLAN FOR EACH PROJECT STAGES

7.1 Engineering

Detail engineering is executed by Saipem from its office at Setiabudi Building, Jakarta.
The only exception is detail engineering for offshore Transportation and Installation (T&I)
and umbilical engineering which will be done by PAPE, a specialized engineering
subcontractor which is subsidiary of Swiber. Interfaces between those disciplines and
other disciplines will be carried out by EPCI Contractor’s Engineering Manager at Saipem
office.

PONSBV engineering team was mobilized to Saipem office within one month of Contract
Effective Date. Focus of engineering upon commencement of detail engineering activities
includes:
 Engineering deliverables required to support commencement onshore fabrication
and construction within 3 months after Contract Effective Date. With basic
structural design has been frozen, fabrication drawings can be immediately
produced and used for onshore fabrication.
 Engineering deliverables associated with EPCI Contractor’s LLI which includes
cranes, umbilicals, SSIVs and allocation gas meters.

Other functions which will also be mobilized to EPCI Contractor’s engineering office are:
 QHSE – will provide QA/QC and safety consideration into design.
 Operation Interface Coordinator – will provide feedback related with operation
and maintenance of the facilities during detail design.
 Project Control – will monitor progress of engineering and overall project.
 Procurement coordinator – will oversee procurement activities performed by
EPCI Contractor (discussed in more detail in Section 7.2)

Through TSSC Contract, PONSBV has secured an umbilical engineering service from a
third party specialized company. This is an on-call type contract service to review
umbilical engineering deliverables produced by EPCI Contractor and umbilical vendor,
visit umbilical vendor manufacturing facility at various stages of umbilical manufacturing
process including FAT and provide engineering support during installation and
commissioning of the umbilical. The same type of contract service is also in place for
subsea engineering.

A safety engineering consultancy contract has been placed with Arcadis-Vectra in UK. The
scope includes development of QRA model and report, execution of transportation risk
study, demonstration of facilities ALARP, review of safety engineering deliverables issued
by Contractor and any future safety engineering consultancy for this project. Contractor
has selected Bureau Veritas as its safety engineering consultant to execute various safety
engineering works as part of its project scope.

7.2 Procurement

Procurement activities is carried out mainly from Saipem office so that interface with
engineering can be optimized. In fact, EPCI Contractor will use Saipem office as a base for
execution of Naga-Pelikan project until completion of engineering and procurement

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stages upon which EPCI Contractor may, with PONSBV approval, relocate the base to an
office in Jakarta.

The main tasks for PONSBV procurement team are:


 Ensure the EPCI Contractor uses an effective procurement and subcontract
monitoring system outlining status of each equipment, material and service
required for the project. The monitoring system shall be operation within one
month after effective date.
 Ensure that EPCI procurement plan incorporates all equipment, material and
services required for the project and that technical bid evaluation procedure
involving PONSBV engineering team and operation interface coordinator is
adhered.
 Ensure PO for EPCI Contractor’s LLIs (umbilical, crane, allocation gas meter and
SSIV) are placed within the specified time as per the master schedule. PO for tag
items and bulk material shall be placed in accordance with ROS date for
fabrication.
 Ensure the EPCI Contractor has sufficient resources to handle procurement
workload including PO follow-up activities.

An overview of EPCI Contractor’s LLI:


 Umbilical – Several technical issues have caused slippage of issuance of PO for
umbilical which was originally targeted for mid June 2012. JDR is the potential
bidder with LoI is now targeted to be issued by 24 th August 2012. The SSIV
umbilical will be completed and delivered earlier in order to meet SSIV overall
function test in Batam in May 2013. JDR current plan is to complete the inter-
platform umbilical ex work by end of April which still meets offshore umbilical
installation schedule of July 2013.
 Gas Allocation Meters –LoI for gas allocation meters was issued at the end of May
2012 as plan.
 Cranes – LoI was issued on 3rd August 2012. It took longer to complete detail
engineering for the crane as longer boom than FEED design was encountered.
However, the promised delivery date is still within the expected Required On Site
(ROS) date.
 SSIVs –LoI was issued at the end of July 2012 with delivery of mid May 2013 in
Batam for function test. The surface HPU for SSIV is ordered under similar
package.

7.3 Onshore Fabrication and Construction and Pre-Commissiong/Commissioning

Mobilization of PONSBV team to EPCI Contractor’s fabrication yard commenced within


one month of Contract Effective Date. This is required to meet target of first steel cutting
within 3 months of Contract Effective Date. Activities which need to be completed before
first steel cutting include:
 EPCI Contractor has to collect structural steel procured by PONSBV from
temporary storage in Batam within one month of Contract Effective Date.
 EPCI Contractor has to perform WPS and welder qualification witnessed by
MIGAS as well as competency assessment evaluation for all skilled labours.

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 Fabrication procedures, QA/QC procedures and HSE procedures required to


commence fabrication must have been reviewed and approved by PONSBV.
 Equipment, tools and fabrication facilities required to for fabrication must have
been inspected by PONSBV and all major findings have been properly addressed.
This includes validity of operator’s certificate and equipment/tool maintenance
program.

Eventhough Pelikan platform is required earlier than Naga platform, onshore fabrication
and construction for both platforms will run in parallel resulting in only 2 weeks gap
between completion of Pelikan platform and Naga platform. Whilst this approach offers
an advantage in term of construction management, it almost does not allow lesson-
learned from fabrication of Pelikan platform to be implemented on Naga platform. An
experienced site support team who mostly worked for PONSBV in the Gajah Baru project
will be recruited through TSSC Contractor to minimize mistake during fabrication.

Onshore fabrication and construction of subsea structures and spools may take place at
different yard. PONSBV site support team is responsible to ensure that project
specifications and requirement is strictly adhered during onshore fabrication and
construction of subsea structures and spools. Depends on workload of site support team
at main yard at the time, a dedicated inspector may need to be stationed at the yard
fabricating subsea structures and spools.

In addition to their normal requirement to visit fabrication yard, discipline engineers are
encouraged to visit fabrication yard to promote safety. Their presence in the yard will be
more intensive when onshore pre-commissioning/commissioning commences in Q1 2013
and their roles change to pre-commissioning/commissioning discipline engineers. The
onshore pre-commissioning/commissioning activities will be coordinated by
Commissioning Manager.

Onshore pre-commissioning/commissioning will be performed as much as practical to the


extent that can be carried out without the introduction of live hydrocarbons. This shall
include testing of all ESD/PSD and F&G logic to the latest revision onshore. However, as
Naga and Pelikan platform is controlled and monitored from Gajah Baru CPP, final logic
test including communication between GBCPP ICS and Naga/Pelikan ICS can only be
performed offshore after umbilicals connecting Naga and Pelikan platforms with Gajah
Baru CPP have been hooked up.

7.4 Offshore Installation

Offshore installation campaign for Naga-Pelikan project will start in April 2013 and
includes pipelay work, jackets and topsides installation, umbilical installation and subsea
spools and PLEM installation. PONSBV will appoint Company Site Representatives (CSR),
who will lead PONSBV offshore team and acts as PONSBV single point of contact offshore,
onboard the main barge during offshore installation stage. Daily report will be produced
and along with MoM of daily meeting offshore they will be distributed to EPCI Contractor
and PONSBV project personnel in Jakarta. Formal teleconference meeting between
Jakarta and offshore will be made on required basis.

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A preliminary suitability survey to major offshore barges including DSV, pipelay barge,
HLB and accommodation barge will be conducted. Detail barge inspection and marine
crew competency assessment as per IMCA requirement will be performed with the
involvement of PONSBV appointed Marine Warranty Surveyor once the barge is deemed
suitable for the work. Whenever possible and applicable, requirement from various
institutions of Government of Indonesia to visit foreign barges which will work in
Indonesia will be combined with either the preliminary survey or detail inspection.

Offshore installation works which are considered from safety point of view include:
 Pipeline and umbilical crossings with WNTS pipeline at two locations - Execution
will be administered using WNTS and PONSBV Permit To Work (PTW) system.
 Works within 500 m of GBCPP - Execution will be administered using PONSBV
PTW system.

Other than the above works, Gajah Baru HOPO will issue a blanket permit while detail
daily activities will be administered by Contractor’s Installation Manager and PONSBV CSR
using Contractor’s PTW system.

7.5 Naga and Pelikan Offshore Hook-Up and Commissioning

In PONSBV, offshore hook-up falls under Offshore CSR roles and offshore commissioning
is Commissioning Manager’s role. In Contractor’s side, a dedicated Offshore Hook-Up
and Commissioning Manager is appointed.

Eventhough onshore commissioning has been conducted as much as practical, there is


still substantial commissioning works to be done offshore to achieve Naga and Pelikan
RFD states. This is because full loop and actual logic testing can only be done after
umbilical has been completely hooked up and GBCPP logic has been updated with Naga
and Pelikan logic. The pre-drilling commissioning works start in August 2013 and shall be
completed at the end of September 2013.

Arrangement for report and meeting will be similar as offshore installation except for
commissioning activities post drilling when daily teleconference meeting between Jakarta
and offshore will be required. Detail PONSBV PTW will be implemented for post drilling
HUC works whilst PONSBV blanket PTW will be issued for pre-drilling commissioning
works with detail daily activities will be administered by Contractor’s HUC Manager and
PONSBV CSR or Commissioning Manager using Contractor’s PTW system.

7.6 GBCPP Modification

Considering criticality of GBCPP Modification works, PONSBV requires EPCI Contractor to


appoint a dedicated GBCPP Modification Project Engineer which is considered as
Contractor’s Key Personnel. His role is basically to coordinate all activities required to
execute GBCPP Modification in a safe and timely manner. To closely oversee Contractor’s
activities and provide necessary support, PONSBV appoints a PONSBV GBCPP
Modification Project Engineer.

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Post EPCI award, EPCI Contractor will need to conduct site survey to GBCPP. This is
required by EPCI Contractor to respond RFS issued by PONSBV as described in Section 5.5
and to prepare GBCPP Modification detail schedule which shall be submitted for PONSBV
review within 3 month of Contract Effective Date.

Several constraints regarding GBCPP Modification


 Mechanical Acceptance (MA) has been set for 30-Sep-2013
 Compensation is by reimbursable, cost estimate is based on “60 days of
accommodation barge”
 Reinstallation and/or re-commissioning of GTC-2700 engine is not included in the
estimate for “60 days of accommodation barge”.

Major works which require presence of accommodation barge is planned to be


completed in mid Sep 2013 as completion of major works at GBCPP. With 60 days
accommodation barge time, the accommodation barge needs to be mobilized to GBCPP
in mid July 2013. Prior to mobilization of the accommodation barge, 1 month of
preparation work at GBCPP is allocated. This is to execute works which can be completed
prior to arrival of accommodation barge.

There are several tie-in points from Naga-Pelikan at GBCPP where manual valves can be
installed at during GBCPP routine shutdown in 2012. These manual valves are procured
by PONSBV as part of LLI to anticipate the opportunity to install them in 2012. By having
these valves installed, future piping tie-in works at GBCPP will not require shutdown and
as such will minimize requirement of GBCPP shutdown in 2013. In addition, Naga-Pelikan
piping works at GBCPP in 2013 will be a lot flexible as they are independent of shutdown
schedule.

In the event the manual valves can be installed in 2012, requirement to have total GBCPP
shutdown in 2013 is limited to when the new GBCPP logic is uploaded into GBCPP ICS.
The new logic shall cover Compressor A and B new logic in HP/LP mode and Naga-Pelikan
logic. In theory, the new logic can be uploaded when GBCPP is operational. However,
with the risk of having unplanned shutdown it is reasonable to shutdown the plant in a
controlled manner, upload the logic, perform logic test and start-up the plant. In general,
work sequence related with GBCPP compressor re-wheeling is as below:
 Recommissioning Compressor C as part of preparation work before arrival of
accommodation barge and make it ready to operate under HP/LP mode.
 After accommodation barge arrives, Compressor B is deactivatet and isolated for
re-wheeling. At this point, Compressor A is normally running under HP mode with
rated throughput of 144 BBtu/d. In the event it trips and unable to start,
Compressor C can be put on operation under LP/HP mode with rated throughput
of 72 BBtu/d.
 After re-wheeling of Compressor B has been physically completed, GBCPP is
shutdowned. The new logic is uploaded during this shutdown and logic test that
can only be done during GBCPP shutdown is performed. The shutdown is
estimated to take 3 days maximum.
 Upon restart, GBCPP operates with Compressor B and C run under LP/HP mode
with rated throughput of 72 BBtu/d each. At this point, Compressor A is
deactivated and isolated for re-wheeling with its logic already set for LP/HP
mode.

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 After re-wheeling of Compressor A has been physically completed, it can be put


on operation with rated throughput of 72 BBtu/d.

Operation involvement is very crucial for the success of GBCPP Modification. Since
engineering stage, project planning until execution of the work at GBCPP, this part of
Naga-Pelikan project scope requires close coordination with and continuous support from
Operation team.

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8.0 OPERATIONS STRATEGY

Naga-Pelikan operations and maintennlance will be integrated with the existing Gajah
Baru Field operations.  Naga-Pelikan will be managed by the same onshore support
team.  The facilities will use the Premier Oil operating, maintenance and safety
management systems.

An Operation Interface Coordinator will act as representative of Operation team in the


Naga-Pelikan project organization until the end of the project. Size of Operation team in
the project may vary from time to time depends on requirement. There is an objective
for Ops team to have system owner integrated into project @ fabrication 30% completed.

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9.0 PROJECT RESOURCING

9.1 Internal Resource Requirements

The RTPK for Naga-Pelikan project management Team (PMT) is shown in Appendix III.
BPMigas approval for these positions was obtained in February 2012.

The estimated cost of the Project Management Team - for the duration of the project - is
USD 27 MM. The cost breakdown is supplied in Appendix III. The cost estimate is subject
to the positions being approved by BPMigas.

It is assumed that the majority the PMT resources will be sourced from the existing GB
PMT. In Q4 2011 when GB has achieved first gas, the GB project has been progressively
de-manning its resources and personnel was transferred to the N&P team as required.
Any shortfall will be met by recruitment or short term resourcing under the TSCC
contract.

9.2 Cost Estimate

The project cost estimate is provided in Appendix III.

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10.0 PROJECT CONTROLS

10.1 Project Execution Management Standard

The Premier Project Execution Management Standard, details of which can be found in
[Ref 3], will be followed

The following gate milestones have been achieved:

Gate Date Passed


Project Initiation 7th May 2010

Concept Selection 28th June 2010

LLI Sanction Gate 28th June 2011

Full Project Sanction April 2012

10.2 Project Procedures and Controls:

The following Management Procedures will be developed / employed by the Project


Team as required.

10.2.1 Project Interface and Co-ordination Procedure

The control and management of interfaces is an important function in any EPCI project.
An Interface Management Plan will be developed by the EPCI Contractor for review and
approval by PONSBV.

10.2.2 Reporting

A standard and established series of reports will be developed for summary progress
measurement within a Work Breakdown and a Cost Breakdown structure.

During the EPCI, the principle elements to be reported will be the EPCI contractor
manpower and hours spent, progress against schedule, safety performance and
procurement progress. It is expected the Naga and Pelikan project will closely follow the
reporting systems developed and utilised on Gajah Baru.

10.2.3 Meetings

To ensure that the project is meeting its objectives on schedule, monitoring will occur
through weekly EPCI contractor meetings (including weekly engineering meeting, weekly
procurement and expediting meeting and weekly construction/fabrication meeting as
applicable) and weekly Project Management meetings. A monthly detail project control
review with the EPCI Contractor with emphasis on review of next 3 months program will
be conducted ahead of monthly Project Management meetings.

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10.2.4 Change Control

All contractors, sub contractors and engineering companies will be required to comply
with the procedures set out in the contract for Change Orders. Again it is expected that
the procedures established on Gajah Baru shall be utilized. The procedure will be
socialized to Naga-Pelikan project team member prior to EPCI Contract award and to EPCI
Contractor’s Key Personnel as applicable post EPCI Contract award.

10.2.5 Document Control

All contractors and sub contractors will incorporate an auditable system which will track
original issue and subsequent amendments in a chronological order for all issued
documentation throughout the project duration.

The internet based Teambinder document management system will be employed for the
transfer and tracking of documents between the contractors and PONSBV.

10.2.6 Risk Management Plan

In line with Premier Oil’s corporate polices, a risk register has been established to
highlight the major risks to the project. Regular risk review meetings will be held to
review the risk register and identify the major risks, ensuring suitable and effective
mitigation strategies are in place.

10.2.7 Project Quality and Verification Plan

The HSEQ Manager in conjunction with the Project Manager and discipline engineers will
produce a quality and verification plan in line with best practise and PONSBV principles.

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11.0 REFERENCES

1. BPMIGAS Contracting Strategy Paper


2. Premier Corporate Project Safety Review
3. Premier Project Execution Management System

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APPENDIX I – Project Schedule

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APPENDIX II
–PMT Resource Requirements

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APPENDIX III –
Project Cost Estimate

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Description Current Forecast Original Over/(Under)


(Amounts in US$s) 2010+2011 2012 2013 2014+ Total Budget Budget

EPCI + LLI COSTS


Pelikan Wellhead Platform Facilities - 20.18 24.19 5.19 49.55 49.55 -
Pelikan Subsea Facilities - 17.48 25.57 9.34 52.40 52.40 -
Naga Wellhead Platform Facilities - 20.27 23.77 4.66 48.70 48.70 -
Naga Subsea Facilities - 16.25 20.68 5.44 42.37 42.37 -
Total EPCI + LLI 74.18 94.21 24.63 193.02 193.02 0.00
Other Common Costs
Owner Costs - 11.20 13.15 9.30 33.65 33.65 -
Certification - 0.10 0.45 0.58 1.14 1.14 -
G&G Site Survey 2.61 - - 2.61 3.78 1.17
J- Tubes 0.91 - - - 0.91 0.60 -0.31
FEED Costs 3.32 0.08 - - 3.40 4.01 0.60
Total Other Common Costs 6.83 11.38 13.60 9.88 41.70 43.17 1.47
UNALLOCATED PROVISION (UAP)
UNALLOCATED PROVISION - - 11.85 9.96 21.80 21.80 -
Total Naga & Pelikan Facilities Costs 6.83 85.57 119.65 44.47 256.52 257.99
DRILLING COSTS
Drilling 48.17 78.21 126.38
Total Naga & Pelikan Development Costs 6.83 85.57 167.83 122.67 382.90 257.99

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