PDVSA

RT48S Conversion

PDVSA
BUDGETARY PROPOSAL
FOR
Upgrade of RT48 to RT48S

RT48 Turbocompression packages

Turbine Serial Numbers
249,250, 259, 270, 290, 291, 330, 361, 366, 375 & 376 - RT

submitted by

Rolls-Royce
Proposal Number CSB-685
October 18, 2005

PROPRIETARY INFORMATION

This proposal is submitted in confidence for evaluation purposes only and its contents are proprietary to Rolls-Royce.
Unless previously approved in writing by Rolls-Royce, any use, disclosure, transmission in any form, reproduction or
revision of this document, its attachments or any part thereof is specifically prohibited.

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RT48S Conversion

Table of Contents

1. Executive Summary

2. Scope of Supply

3. Engineering and Project Management

4. Budgetary Pricing Summary

5. Contract Terms and Conditions

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RT48S Conversion

1. EXECUTIVE SUMMARY

PDVSA has purchased 11 power RT48 Power Turbine based Coberra 2000
packages for compression applications on various platforms at Maracaibo,
Venezuela. These date back to the 1970’s. To improve the efficiency, reliability and
maintainability of these units the best option is to zero hour these units and convert
them to current Rolls-Royce standard RT48S configuration.
To save site downtime, PDVSA as an alternative, have requested Rolls-Royce for a
proposal for complete new RT48S Power Turbines assembled and shipped on a
base for replacement with the current RT48 Power Turbines. Rolls-Royce proposal is
based on the replacement program.

Replacing the existing RT48 units to RT48S with all new components has numerous
benefits including horsepower gains, reduced maintenance, and better parts
availability. If the full current standard RT48S is implemented, spares will be
interchangeable with the other RT48S units, including the rotor.

The ISO rating of the current std RT48S power turbine is approx, 20,000HP at rated
rpm at ISO conditions. The RT48S model is rated at 5500 rpm vs. the original RT48
configuration of 5200 rpm. While the RT48S does not have to run at 5500 rpm, the
full horsepower and efficiency potential will not be attained at the lower speeds.
When considering the operation of the RT48S, the driven equipment should also be
evaluated. If PDVSA determines that they are able to operate these units at the
higher speed, there will be gains in horsepower and efficiency compared to operation
at current speeds.

When a power turbine has accumulated 100,000 hours, inspections at every 25,000
hour intervals are recommended to insure the components within the rotor have
maintained their integrity. With the new RT48S the components that would be
examined at these inspections would be replaced and the exchange would bring the
unit back to new condition. The maintenance and inspection cycle starts over as
though the unit were new. Hence no major overhauls or inspections would be
required until the next 100,000 hours of operation are achieved. Another benefit to
consider with the RT48S conversion is parts pricing and availability. Since the RT48
components are no longer in standard production, the availability and lead times are
longer and more costly than the current production RT48S components.

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RT48S Conversion

RT48 vs. RT48S

The main differences between the RT48 vs. the current RT48S are explained below.

The original RT48 blade tips were unshrouded or “open blade”, meaning the tips of
the blades are not inter-connected.

Typical unshrouded blade

The RT48S blades are inter-connected, or shrouded (hence the ‘S’) which provides
better blade tip stability and the ability to seal between the blade tips and the blade
casing. With more air being channeled across the blades and less air escaping
around the tips, horsepower and efficiency are increased.

Typical shrouded blade

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RT48S Conversion

The original configuration includes lubricated gear type couplings, which are quickly
becoming obsolete. To match the new shaft end of the RT48S, the main drive
coupling between the power turbine and the gear box would be required to be
changed. A new dry, diaphragm type coupling with the polygon hub to interface with
the new power turbine shaft end as the current standard. This new coupling would
also be rated to accommodate the available higher speeds and horsepower of the
RT48S. New set of pusher tool with hydraulic pump would be required on a one set
per site basis for installation of this new coupling.

The original bearing configuration of the RT48 compression units does not match the
newer RT48S units. The old configuration is based on early design which located the
thrust bearing close to the coupling end of the shaft. All Rolls-Royce power turbines
now have the thrust bearing located between the two journal bearings. This locates
the thrust bearing more toward the axial center of the shaft and the journal bearing
closer to the main drive coupling. Both of which lend to better shaft stability and
better load capacity. The bearing housings would be required to be replaced with the
new style housings which will have further benefit of matching up bearings across all
of the PDVSA RT48S units. With this conversion, not only would the rotors
interchange but the bearings would also interchange.

Conclusion

With the replacement option, PDVSA would receive a complete new power turbine.
All of the assemblies, including bearings, rotors, and instrumentation, would be
interchange able and all of the units would share common spares. The new
diaphragm couplings requires no maintenance and will last the life of the unit. The
new power turbine would require no major tear downs for inspections until it has
achieved next 100,000 hours of operation. The unit will be capable of higher speeds,
horsepower and efficiency.

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RT48S Conversion

2. SCOPE OF SUPPLY

Power Turbine (This proposal is for one(1) complete RT48S power turbine)

1. Rotor Assembly
2. Inlet Nozzle Vane Assembly
3. Exhaust diffuser and hood assembly
4. Bearing case
5. Bearing assemblies
6. Instrumentation
7. Conduit seal improvements

8. Main drive coupling

For material specs of RT48S components please see Attachment 1 and for cross
section view please see Attachment 3.

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RT48S Conversion

1. Power Turbine Rotor Assembly

A complete new power turbine rotor will be supplied. The new shaft will be built to
conform to the newer bearing configuration.

2. Inlet Nozzle Assembly

A complete new assembly will be provided including:

• Inner inlet diffuser

• Outer inlet diffuser
• All turbine casings
• First and second stage vanes
• Exhaust diffuser assembly

All components shall be new. A further investigation would be required to make

sure that the first stage components are matched to operate with the relevant
Avon gas generator marks at respective sites. This shall be confirmed as part of
firm proposal.

3. Exhaust Diffuser and Hood assembly

New Exhaust diffuser assembly shall be supplied. This has improved material and
also re-designed interface and supports to improve sealing at the bearing case
thus reducing the risk of oil leakage into the power turbine and also improving
efficiency and thermal stability.

A maintenance friendly exhaust hood with three piece design and with a hatch for
maintenance access shall be provided.
Any additional changes to the enclosure due to this have not currently been
envisaged and hence any modifications if required may have price implications.

4. Bearing housing

A new main bearing housing will be provided to accommodate the new shaft and
bearing configuration. All new turbine supports are included as well.

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RT48S Conversion

5. Bearing Assembly

The journal bearing configuration will be updated to the newer RT48S

configuration to accommodate the possibility of higher horsepower and higher
thrust loads. A nine pad thrust bearing will replace the original six pad thrust
bearing currently installed in the unit. This new thrust bearing is included in the
pricing for this new PT.

6. Instrumentation

All new instrumentation will be provided

• Bearing RTD’s
• Vibration probes
• Hot gas path thermocouples
• Speed probes

New Electrical overspeed upgrade is included. This replaces the mechanical

overspeed governor and the related unreliability and maintenance issues.

7. Conduit seal improvements

The new configuration allows a leak free seal of the RTD connection thru the
bearing case via a cannon type connection. (See attached RF30-588-1) The
second seal offered is for the vibration wiring. Both of these seals are the current
standard for all new units.

Example of New RTD Hermetic Seal

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RT48S Conversion

8. Main drive coupling

A new, non-lubricated diaphragm type flexible coupling is quoted for this

conversion. This coupling will accommodate the new shaft design type rotor and
will also be rated to handle the higher horsepower and speed ratings of the
RT48S. The coupling guard has been included to ensure proper interfacing with
the new coupling.

3. ENGINEERING, PROJECT MANAGEMENT AND INSTALLATION

AND COMMISSIONING / SITE SUPPORT

This scope of supply include the following:

1. New and or updated assembly drawings

2. Amendments to the Operations and Maintenance Manuals Maintenance

manuals are can also be available on CD.

3. Engineering and Drafting work to modify assembly drawings, as required.

4. Project Management for the complete scope of supply, including but not
limited to, all material deliveries, project schedule management, reporting, QA
and HSE.

5. Rolls-Royce Field service technicians shall be made available for swapping of

the PT at site. Client shall be responsible for providing skilled labor and
necessary available site tooling. The installation time is estimated to be about
1 week with 1-2 R-R technicians and 1-2 skilled labor for support. Standard
agreed daily field service rates shall be applicable for the actual duration of the
site work by R-R FSR’s.

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RT48S Conversion

4. BUDGETARY PRICE SUMMARY

New Power Turbine RT48S

per item 2 scope of supply above ………………. 1,925,000 USD
(Each Power Turbine)

LS coupling and guard assembly ………………. 50,000 USD

(required due to new shaft design see note 1)

Field Service and installation support

At site ………………. Per off-shore
R-R FSR rates

Notes:

1. New set of pusher tool with hydraulic pump would be required on a one set per site
basis. These tools have already been quoted by Rolls-Royce via proposal
numbers CSB-567 in June 2005 and CSB-509 in Feb 2005.

2. The price is based on 2006 price levels.

3. The price is exclusive of site supervision, freight, transit insurance, foreign taxes,
Tolls, government imposts, VAT, Customs duties, port handling charges,
clearance costs, local transport to site and other mandatory charges levied in the
country of import.

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RT48S Conversion

5. CONTRACT TERMS AND CONDITIONS

Rolls-Royce standard Terms and Conditions for Engineered Solutions shall be
applicable as per Attachment 2.

Payments Terms

30 Days Net Upon Milestones - Milestones are defined as the following:

Payment shall be charged based on the equipment/assembly value per the PO price
prorated based on below milestones:

ƒ 15% upon issue of a Purchase Order.

ƒ 20% upon receipt of major turbine rough stock
ƒ 55% upon completion of assembly, testing & prep for Ex-Works delivery.
ƒ 5% upon completion of installation and commissioning at site (but no later than
120 days from Ex-Works delivery).

• Price quoted is for delivery Ex-Works Rolls-Royce, USA facility.

• Any Transportation to be arranged to site by Roll-Royce will be charged back to

PDVSA at cost + 15%.

Delivery Schedule

• The delivery of the Turbine Components from receipt of an acceptable PO

or an acceptable letter of intent………………………….52-54 weeks ex-works.
(Subject to prior sale)

A 4-week stagger between units shall be applicable on delivery for multiple unit
Order.

Above delivery is Ex-Works USA, Mt Vernon and does not include transportation
upto site, which will be additional 2-3 weeks.

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