1.

Team introduction:

Refer Graziana Haifa Presentation

2. Strategy for Manpower:

Team four more resources to be included and two resources from Milan.

LOGISTICS: Total No.4 resources required.

No. 2 Logistics method and execution (*) (Job code 308008) with 15-20 years of experience

No. 2 Shipping and Customs Officer (Job code 308007) with 10 years of experience.

In addition to the above there will two more resources from Milan for transport management

3. Current Activities being handled by Logistics Team:

Preparation of Logistics Execution Plan in coordination with clough Team.

4. Key highlights of the LEP:

Yard location to be finalized

Various port at destination

Map for Modules & stick-builts discharge at Australia.

Incoterms / Strategy to execute award separate frame agreement contracts

“FCA Sell Vendor’s Works <named place>” or

“FOB <named port>” conform ICC Incoterms 2020.

In specific cases (for instance heavy and oversized goods), different ICC Incoterms may be more
beneficial to the project. e.g.,

“FAS <named port>” can be evaluated

Saipem Classification - General Use

 S.N Shipments From To Incoterm Mode Of Frame
o s Shipments Agreements
1 Modules Various Yards Dampier FOB Heavy-Lift Ro-Ro To be discussed
(WA) multi-purpose - if a freight
dry cargo ship forwarder
would be
engaged or we
enter into a
direct charter
with the owner
of vessels.
2 Stick-Built Various Yards Dampier FOB Container Freight
(WA) Shipments Forwarder to be
engaged
3 Stick-Built Items Various Origins Yard / FOB / FCA Container Separate Frame
(Free Issue Australia Shipments Agreement- FF
Materials) to be engaged.
4 Stick – Built Various Origins Yard / FCA Air Shipments
Items Australia
5 Stick – Built Vendor Locations Site DAP Road Separate Frame
Items at Australia Transportation Agreement – for
by various types destination
of Trailers. activities
6 Stick – Built Vendor Locations Site FCA Air Shipments
Items at Australia
Note:

For activities shipments covering under 1 & 2 suggested to nominate a Freight Forwarder to handle both
the activities simultaneously – Open to discussion.

Storage and Warehousing:

The storing and warehousing will be one of the key evaluation criteria’s during the Technical Evaluation
phase of the logistics vendors.

As storage in seaports is relatively expensive, the plan is to move the goods to jobsite at the earliest
opportunity. It may also be beneficial to look at the possibility of a Bonded storage facility in the vicinity
of the ports.

We need to explore during the Technical evaluation phase if there are possibilities of;

a. additional laydown area in Dampier.

b. identifying a Main Consolidation Center (MCC) which can probably be used for temporary
staging and pre-dressing of large equipment. This facility will be utilized as staging, storage, sorting and
inspection area for the likes of bulk materials, consumables, cable drums, E&I equipment, hazardous
chemical storage, instruments, telecoms equipment and mechanical equipment.

Saipem Classification - General Use

Different types of storage which are required at site Warehousing and Laydown Areas:

 Engineered storage for heavy items (Compacted, load spreading, transport beams and stools)
 Covered storage for Goods sensitive to water, sand, or sunlight
 Climate controlled storage for Goods sensitive to temperature changes or extremes
 Protected storage for fragile Goods
 Secure storage for high value Goods of minimal dimensions and weight (e.g.,
pneumatic/hydraulic fittings and valves)
 Hazardous Goods storage separately with appropriate preventive measures such as ventilation,
spill protection, firefighting, etc., in compliance with international and national standards,
regulations and laws.

Custom Clearances:

S.N Shipment From To Incoterm Mode Of Custom Clearance

o Of s Shipments Export Import
1 Modules Various Dampier FOB Heavy-Lift Ro- FAB will SCJV through the
Yards (WA) Ro multi- deliver nominated Freight
purpose dry FOB with Forwarder at
cargo ship Custom destination.
2 Stick-Built Various Dampier FOB Container Clearance
Yards (WA) Shipments in their
scope
3 Stick-Built Various Yard / FOB / FCA Container Material  For Import
Items (Free Origins Australia Shipments Supply at Yard
Issue Vendors Locations -
Materials) Material FAB
4 Stick – Built Various Yard / FCA Air Shipments Supply  At
Items Origins Australia Vendors Destination,
WA - SCJV
5 Stick – Built Vendor Site DAP Road NA NA
Items Locations at Transportation
Australia by various
types of
Trailers.
6 Stick – Built Vendor Site FCA Air Shipments
Items Locations at
Australia

FAB – Yard Fabricator

Duty

Saipem Classification - General Use

Duty where applicable, is payable on the FOB value of the goods. Typically, where Duty is applicable the
rate is 5% - there are however concessions which are based on origin of goods where Australia has a
free trade agreement (FTA) with that country and also if the materials are not manufactured in Australia,
they could be entitled to a tariff concession order (TCO). Refer to sections below for FTAs and TCOs.

Example Customs Duty Calculation

Customs Value USD 2000.00- FOB Value from Vendor
Customs Duty USD 100.00- 5% of FOB Value

GST

GST is applicable at a rate of 10% of the landed value of the goods – i.e., CIF Value of the goods. This
includes International Freight Cost + Insurance + Duty paid.

Tariff Concession Orders (TCO)

To minimize import duty in Australia it is essential that the CONTRACTOR employs the services of a
customs specialist (potentially through the freight forwarder) to apply for tariff concession orders (TCO).

TCOs are an Australian Government revenue concession that exists where there are no known Australian
manufacturers of goods that are substitutable for imported goods. For duty exemption (duty free)
materials and equipment are to be classifiable to the tariff classification to which the TCO is keyed to and
must precisely meet the description given in the TCO.

If there are no existing tariff concessions orders (TCO) in place for a piece of equipment where there are
no known manufacturers in Australia, then the project will need to apply for a TCO. Preliminary
investigations have been performed on assessing the likelihood of obtaining concessions for the types of
equipment and several historical TCOs were identified for Urea manufacturing plants. Albeit these TCOs
have expired it is highly promising that these can be used as the basis to grant new TCOs.

BIOSECURITY:

In regard to wooden packaging, the guidelines and standards to be followed are clear which shall be
marked in accordance with ISPM 15, a standard established by the International Plant Protection
Convention (IPPC) to prevent the transfer of phytosanitary pests amongst countries.

All ISPM 15 instructions are to be read and understood in conjunction with “The Department of
Agriculture, Fisheries and Forestry” (DAFF) Biosecurity guidelines.

With regard to Transportation of Modules, preliminary investigation with Freight Forwarder reveals that
Australian Quarantine Inspector shall be brought to yards prior to commencement of shipments. He shall
inspect the modules and certify its compliance to Australian Quarantine requirements.

Saipem Classification - General Use

Vessel Selection Criteria:

Proper deck carrier.

Classification

IMO / solas convention

Age

Load out – Load in:

Review of Method Statement

Stowage plan

Grillage Layout

Sea fastening design & Calc

HSE & QUALITY

EVALUATION CRITERIA FOR SPMT

Identification of Storage yard close to berth with transport beams

Saipem Classification - General Use