Conocophillips Indonesia Inc. LTD.: B IFB FJS TR KD 03 June 05

CONOCOPHILLIPS INDONESIA INC. LTD.
NORTH BELUT DEVELOPMENT PROJECT
PROCEDURE
PROCUREMENT AND MATERIALS

MANAGEMENT PROCEDURE
84508-9700-9P-002
REV ISSUE PREPARED BY REVIEWED BY APPROVED BY ISSUE DATE

B IFB FJS TR KD 03 June 05
NORTH BELUT DEVELOPMENT
PROJECT
SPECIFICATION
TITLE DOCUMENT NUMBER REV DATE PAGE
PROCUREMENT PROCEDURE 84508-9700-9P-002 B 03 Jun 05 2 of 29
REVISION CONTROL SHEET

LATEST REV DATE ISSUED PREPARED REVIEWED APPROVED COMMENTS
AI 06 May 2005 FJS TR KD
B 03 June 2005 FJS TR KD
Paper Copies are UNCONTROLLED - Check with Document Control for latest available
Revision – CONTROLLED copies should be RED stamped
PROJECT
SPECIFICATION
TABLE OF CONTENTS
1. INTRODUCTION ....................................................................................................... 4
2. PURPOSE.................................................................................................................. 4
3. SCOPE ....................................................................................................................... 4
4. RESPONSIBILITIES ................................................................................................. 4
5. DEFINITIONS AND ABBREVIATIONS .................................................................... 4
6. REFERENCES .......................................................................................................... 5
7. PROCUREMENT AND MATERIALS MANAGEMENT ........................................... 6
7.1 Procurement Overview ................................................................................................................. 6

7.2 Materials and Equipment / Supplier Selection ........................................................................... 7
7.3 Procurement Infrastructure........................................................................................................ 10
7.4 Procurement Activities ............................................................................................................... 12
7.5 Subcontractor / Supplier Performance Report ........................................................................ 29
PROJECT
SPECIFICATION
1. INTRODUCTION
This document sets out the principles, plan procedure, in accordance with Company’s
requirements for the procurement and management of equipment and materials,
associated logistics arrangements and site services for the North Belut Development
Project.
2. PURPOSE
To document the procurement and materials management that will be implemented for
the North Belut Development Project and further to provide direction and to assist the
Contractors in preparing plans, procedures, systems etc. for implementation of the
procurement and materials management scope for the North Belut Development Project.
3. SCOPE
This document covers the procedure for procurement of all reimbursable materials.
Contractor shall review the document and clearly advise any errors or omissions within
14 days of the Effective Date. Any non-compliance found, by any party, after 14 days
from the Effective Date shall be rectified immediately by Contractor.
4. RESPONSIBILITIES
The Company Project Procurement Specialist is responsible for ensuring that the
Contractor is in full compliance with the requirement set down in this procedure.
5. DEFINITIONS AND ABBREVIATIONS
ADP List Appreciation of Domestic Products list

AML Approved Manufacturers List document number 84508-9700-9W-001
Buyer Any entity working under a contractual agreement with Company,
Contractor, Consortium Member, Alliance Partner, Subcontractor or
Supplier who will procure items that will form a permanent part of the
Contract Object.
Contract The Contract entered into between Company and Contractor for works
associated with the North Belut Development Project.
Contractor The contractor appointed by Company to perform the works as
stipulated in the Contract.
CAR Company’s project Construction All Risk insurance policy
Company ConocoPhillips Indonesia Inc.Ltd.
CPP Central Processing Platform
PROJECT
SPECIFICATION
Direct Access The facility for Project Team members to directly view “live” data on
contractor’s system on a read only basis. This includes both within a
Project Team Office and a site location.
ETA Estimated Time of Arrival

FES Field Expediting Schedule
Lump Sum Items procured by a Contractor for its own account and for which is
compensated by Company on the basis of fixed lump sum pricing.
Master List The materials importation list to be prepared by Contractor in
accordance with the Contract document
MTO Material Take Off
OS&D Over, Short and Damage report
PIB Pemberitahuan Import Barang (importation notice)
PO Purchase Order
PMI Positive Materials Identification
PMS Procurement Master Schedule
Reimbursable Items procured by a Contractor on a reimbursable basis (Company
having a significant role in Subcontractor / Supplier selection
approvals)
RFC Request For Change
RFQ Request For Quotation
RIB Rencana Import Barang (importation plan reference number)
SDRL Supplier Documents Requirement List
SS Sole Source
Subcontractor An entity working under a contractual agreement with a Contractor, a
Supplier or another Subcontractor, for the manufacture, fabrication or
construction of any equipment or physical facilities.
Supplier Any entity supplying manufactured equipment or other items to
Company, a Contractor, a Subcontractor, or another Supplier.
WHP-C Wellhead Platform at North Belut Field
WHP-D Wellhead Platform at North Belut Field
6. REFERENCES
Approved Manufacturer’s List, document number 84508-9700-9W-001

The Contract in place between Company and Contractor
PROJECT
SPECIFICATION
7. PROCUREMENT AND MATERIALS MANAGEMENT
7.1 Procurement Overview

Contractor shall provide resources to immediately procure, expedite, inspect and
transport all materials and equipment necessary for completion of the Work in
accordance with the Contract. Contractor’s scope includes preparation of bid/supplier
lists, requests for quotations, Subcontractor/ Supplier evaluation, bid evaluations, issue
of purchase orders, expediting, inspection, vendor documentation, packing, load-out,
receipt, transportation, offloading, importation, etc. as stipulated in the Contract.
Contractor procured materials and equipment shall be new and supplied complete with
Supplier certifications or other acceptable documentation, as appropriate, in compliance
with project specifications and procedures. All of Contractor’s Supply shall be of high
standard and good quality and shall be obtained from reputable Suppliers that are
recognised on an international basis as providers of products that meet the foregoing
requirements. Contractor shall ensure that sources of raw materials are in line with the
applicable standards and fully meet the relevant specifications etc. Company shall have
the right to reject any Supplier proposed by Contractor without giving justification or
reason.
Company shall have the right to inspect all Contractor procured materials and equipment
and its certifying documentation and to reject any item not in compliance with project
specifications. Contractor shall replace rejected material/equipment. Such replacement
work shall be performed in compliance with all applicable requirements of this Contract,
and Company shall have no obligation to grant an extension in schedule for any delays
caused by said replacement.
Contractor shall manage all Subcontractor/ Supplier interfaces including engineering,

documentation, inspection, expediting, shipping, correction of any and all damage,
loading, handling and proper storage as applicable under the Contract.
Contractor shall provide all items necessary for completion of the Work with the sole
exception of Company Furnished Material as set in section 7.0 of the Contract Document
Contractor shall provide required personnel, systems, facilities and other resources as
may be required to efficiently perform all procurement and related activities for
Contractor’s Supply. Generally, Contractor shall:
(i) Prepare a PMS

(ii) Prepare all procurement and materials management related plans and
procedures.
(iii) Prepare bid lists based on the Migas ADP List, Approved Manufacturers List
and after consultation with Company.
(iv) Prepare requests for quotation, and all other procurement-related documents.
(v) Perform technical/ commercial bid evaluations.
(vi) Issue purchase orders/ subcontracts in a timely manner.
(vii) Expedite all Contractor’s Supply and related items such as Supplier technical
data for use by Contractors Engineering.
PROJECT
SPECIFICATION
(viii) Obtain all Supplier document requirements for the Company’s data collection
tool.
(ix) Comply with it’s obligations with regard to importation of items into the Republic
of Indonesia e.g. Master List, PIB, RIB
(x) Arrange for delivery of all materials and equipment to Sites.
(xi) Expedite Supplier’s final data and documentation
(xii) Provide suitable storage instructions for all materials and equipment
(xiii) Maintain a suitable efficient materials management system
(xiv) Arrange required Supplier services and the like.
Reimbursable Items and Lump Sum Price Items
(1) Contractor’s Supply includes Reimbursable items for WHP, CPP Platforms,
Flowlines and Subsea Equipment.
(2) Company shall compensate Contractor for the procurement of Reimbursable

items set out in Section 5.0 of the Contract document.
7.2 Materials and Equipment / Supplier Selection
7.2.1 Materials and Equipment Selection

All materials and equipment furnished by Contractor as part of Contractor’s Supply that is
intended to form a permanent part of the Contract Object shall be new and free from
defects in design, materials, and workmanship and shall have been produced, tested,
and shipped in accordance with the provisions of the Contract.
All materials and equipment shall be procured from a reputable source i.e. direct from the
manufacturer or from the manufacturers authorized agent. Any items purchased from
any other source than the manufacturers or their authorized agents, as specified in the
AML shall be removed and replaced at Contractors cost unless expressly agreed in
writing by Company.
All materials and equipment purchased by Contractor or Contractor’s Suppliers and
Subcontractors shall be purchased from manufacturers and Suppliers approved by
Company. Contractor shall seek and obtain Company written approval for any proposed
bidders not included in the AML.
Where Suppliers or Subcontractors are purchasing like materials e.g. field instruments,
Contractor shall ensure that Suppliers and Subcontractors are advised of the Project
approved manufacturer to enable all like materials to be standardized and delivered from
common manufacturers. Special attention shall be paid to instrument fittings where the
choice of manufacturer shall be passed on to all Suppliers and Subcontractors. For
safety reasons only one type of instrument fitting shall be used throughout the North
Belut Development Project.
There are certain items that have been deemed as mandatory sole source by Company.
These items are highlighted in the AML as SS. Company has agreements in place with
SS Companies with regard to price and terms and conditions that are available for use
by Contractor, Subcontractors and Suppliers. Contractor and Contractor’s
PROJECT
SPECIFICATION
Subcontractors and Suppliers shall make use of those agreements. Agreement numbers
and contact information can be found in the AML.
7.2.2 Supplier Candidates

By exception Contractor may propose additional or substitute Supplier candidates in
addition to those listed in the Approved Manufacturer’s List provided that there is a real
and tangible benefit to Company. In such event, Contractor shall provide to Company in
a timely manner, as a minimum, the following information before soliciting a formal bid
from the proposed Supplier candidate:
• A full description of the items for which Company’s consideration is requested;
• Reasons for proposing such Supplier candidate;
• Real and tangible benefits to Company
• The name, address, telephone number and fax number of the proposed Supplier
candidate;
• The manufacturing or fabrication/ construction location;
• Nearest service support facility;
• Contractor’s previous experience of the proposed Supplier candidate, with a
reference list of other clients for whom the Supplier candidate has provided similar
items or services;
• The required Site need date of each item;
• A copy of the results of the pre-qualification and quality audit performed by
Contractor, identifying any non-conformances and actions taken;
• In the case of a manufacturers agent a copy of the authorization from the
manufacturer showing that the agent is authorized to supply the items on behalf of
the manufacturer;
Company, at its sole discretion, has the right to accept or reject any additional or
substitute Supplier candidates proposed by Contractor, including proposed candidates
for the supply of items not shown in the AML.
Contractor shall allow for the possibility of Company not approving Contractor’s
recommendation of the proposed Suppliers and should allow as a minimum 6 weeks
from the planned RFQ issue date for Company to review documentation and arrange an
audit where necessary. Where Contractor fails to give the required notice period
Company may be unable to fully consider the substitute or additional Suppliers.
If Company accepts Contractor’s additional or substitute Supplier candidates, including
those for the supply of items not shown in the “AML, Contractor shall update the
document accordingly, for Company’s approval. Contractor shall procure all items of
Contractor’s Supply only from companies that Company has approved, as described
above, as bidders.
Any such approval by Company shall not relieve Contractor of it’s obligations under the
Contract.
PROJECT
SPECIFICATION
7.2.3 Appreciation of Domestic Product (ADP) List

In the selection of bidders for goods and services, Contractor shall fully consider on all
occasions the ADP list. It is normal practice for MIGAS to issue ongoing supplements to
the ADP list and Contractor shall keep itself informed of any supplements issued.
Contractor is specifically referred to the Contract document wherein certain
representations regarding ADP listings are set out.
In the preparation of bidders lists for all goods and services, Contractor shall fully
consider relevant companies on the ADP list. Providing that companies on the ADP list
are technically acceptable, such companies should be included on the bidders lists. This
requirement shall apply irrespective of whether or not companies are included in the
AML. Contractor shall provide relevant information on each proposed Supplier in line with
section 7.2.2 above.
7.2.4 Commonality / Standardization of Materials

There may be benefits to Company, Contractor and Company’s other contractors, where
certain materials, compensated on both an Reimbursable and on a Lump Sum basis,
allow a degree of commonality / standardisation between the CPP, and WHP Contract
Objects. Such benefits may be realized in terms of safety, operability, technical interface,
reduced cost, schedule and a reduction in the required amount of spare parts to be held
in stock.
Where procurement is carried out in more than one location Contractor shall interface
with it’s other offices, consortium members, alliance partners or sub-contractors, as may
be applicable to ensure commonality of all like materials for the CPP and WHP Contract
Objects.
Where Suppliers or Subcontractors are purchasing like materials e.g. field instruments,
Contractor shall ensure that Suppliers and Subcontractors are advised of the Project
approved manufacturer to enable all field instruments to be standardized and delivered
from common manufacturers. Special attention shall be paid to instrument fittings where
the choice of manufacturer shall be passed on to all Suppliers and Subcontractors. For
safety reasons only one type of instrument fitting shall be used throughout the North
Belut Development Project.
Contractor shall actively interface with Company’s other contractors and Contractors
other offices, consortium members, alliance partners and sub-contractors to ensure
commonality / standardisation between Contractor’s Supply and items procured by
Company’s other contractors. Contractor shall review procurement documentation from
Company’s other contractors, e.g., procurement plan, proposed bidders list etc.
Contractor shall submit like documentation to Company’s other contractors and attend
procurement interface meetings as required, as part of the work.
In addition there may be a need for commonality / standardisation with existing spare
parts held in stock for Block B operations. Contractor shall interface with Company on
this matter.
PROJECT
SPECIFICATION
7.3 Procurement Infrastructure
7.3.1 Resources
Contractor shall implement a procurement organization consistent with the organization
chart included in the Contract document. The organization chart shall clearly identify
which personnel are deployed full time to the North Belut Development Project.
Company will periodically review the organization charts and may instruct Contractor to
add additional resources as deemed necessary to complete the scope of work.
All staff shall be experienced, capable and qualified to the position held and work to the
high ethical standards expected by Company and Contractor. Any person found to be
working in anything but the highest ethical standards shall be removed from the Project
immediately and replaced in accordance with Contract.
Contractor has submitted CV’s for approval by Company for all Procurement and
Materials Administration positions e.g. procurement, materials control, expediting,
logistics and warehouse for both the engineering location and site locations. Approved
candidates shall not be removed from the Project unless expressly agreed in writing by
Company. Any removal of Key Personnel shall be compensated to Company in line with
the Contract.
The agreed organization chart is included in the Contract.
7.3.2 Procedures
Contractor shall issue procedures for procurement, expediting, materials control,
warehousing and logistics within 20 Business Days of the Effective Date for review and
approval by Company. Contractor shall clearly state that the procedures are based on
document number 84508-9700-9P-002.
All bidder lists, RFQ documents etc. shall be reviewed and approved by Company prior
to issue. All quotations with an expected value above US$20,000 shall be submitted
under sealed bid conditions and opened in the presence of a Company representative.
Weekly meetings shall be held between Contractor and Company procurement and
materials management personnel to discuss progress and any issues that may arise.
Minutes will be prepared and issued by Contractor to Company within 3 Business Days
of the date of the meeting for approval.
7.3.3 Procurement Plan

Contractor shall have a detailed Procurement Plan available as of the Effective Date.
The Procurement Plan shall set out the philosophy, organization, scope, systems,
procedures and the like that shall apply to Contractor’s procurement activities and how
they shall be managed and effected in an efficient manner. Company will review and
approve the format and content of the Procurement Plan within 20 Business Days of the
Effective Date.
7.3.4 Procurement Master Schedule (PMS)

Within 20 Business Days of the Effective Date, Contractor shall update its Project
specific PMS showing all known materials, equipment and services to be procured.
Contractor shall specifically highlight all items having a limited amount of schedule float.
For details of the requirement of the PMS see section 7.4.3 a.
PROJECT
SPECIFICATION
7.3.5 Field Expediting Schedule (FES)

Within 30 Business Days of the Effective Date, Contractor shall issue a preliminary FES
for the known scope of work. Schedule to show expected purchase dates, expected lead
times and required on site dates in line with the Contract Master Schedule. Contractor to
clearly detail planned field expediting visits for Company’s review. Company will review
the FES and may instruct Contractor to add additional resources as deemed necessary.
The schedule can be a stand-alone document or included in the PMS. For details of the
requirement of the FES see 7.4.3 b.
7.3.6 Materials Management

Contractor shall utilize proven systems and procedures, facilities and sufficient resources
to identify, purchase, manage and report on MTO requirements, shortages, materials
look ahead requirements, material-receipt, materials reconciliation, transportation,
storage and warehousing, issuing and in-storage maintenance and security of all
Contractor’s Supply.
Contractor shall have at least one dedicated materials co-ordinator (MC) based at the
engineering office who will liase and resolve problems between sites and the Project
office. The MC shall review shortage reports, overdue reports, look-ahead reports, OS&D
reports etc. and actively expedite receipt of materials and report findings through the
materials management system. The MC, or other person(s), shall closely monitor and
coordinate the movement and shipment of materials and equipment ensuring that all
personnel that duly need to be informed of the transportation activities (supplier, agents,
Sites) are well informed in a timely manner.
7.3.7 Contractor Materials System

Contractor shall have proven systems and procedures, facilities and sufficient resources
to identify, manage and report on MTO requirements, material-receipt, transportation,
storage and warehousing, issuing and in-storage maintenance and security of all
Key requirements:
All bulk materials shall be given a stock number that will be fed to the Contractor’s
materials system to allow ease of identification and grouping. For equipment the project
tag number shall be utilised.
System shall be linked to the design system to be able to calculate complete MTO
requirements from the engineering information, e.g. piping isometrics.
System shall detail each and every line/area where a specific bulk item will be installed.
System shall be linked to the Contract Master Schedule to be able to advise delivery
required for each item and identify an overall requirement list for each stock/tag number.
System shall be linked to the purchasing and expediting system to be able to confirm that
materials have been purchased. P.O delivery and current delivery date should also be
shown to highlight any delivery slippage
System shall be linked to the stores system to enable the system to show that materials
have been received and accepted. OS&D materials should also be detailed
PROJECT
SPECIFICATION
System shall be able to highlight any materials deliveries later than planned required
date.
System shall be able to produce reports that advise as a minimum. Full MTO by stock
number or line/area, materials received list, shortage list by stock number, lines / areas
where all materials have been received, material deliveries later than planned required
date, material look ahead reports, surplus materials report, OS&D report, reconciliation
report.
Contractor shall have adequate personnel in the engineering / procurement office to
continually monitor material requirements and the effect on the plan of any advised
shortages. Contractor shall issue to Company regular materials look ahead reports
detailing shortages and their effect on the plan.
Company shall be given direct access to the materials management system of the
Contractor.
7.4 Procurement Activities
7.4.1 Long Lead Materials

For schedule or commercial reasons, Company carried out certain preparatory activities
prior to the Effective Date, to allow Contractor to expedite the selection of certain items of
Contractor’s Supply. Contractor shall issue the corresponding purchase orders for such
items as soon as practicable after the Effective Date taking into account the Contract
Master Schedule. Contractor shall liase closely with Company to ensure a smooth
transition, with minimum loss of momentum, from the preparatory activities performed by
Company in each case to Contractor’s performance of all subsequent activities in relation
to Contractor’s Supply. Contractor shall promptly issue all required purchase orders,
which will include order-specific terms and conditions based on Company’s Purchase
Order Terms and Conditions that have been agreed by Company with bidders.
Contractor to highlight with their proposal details of any purchased equipment or
materials that show a negative or limited amount of scheduled float based on Contractors
review of the schedule.
7.4.2 Schedule-Critical Procurement Activities

Contractor shall implement schedule-critical procurement activities within five (5)
Business Days of the Effective Date. During the period from the Effective Date until
Contractor’s PMS has been approved by Company and issued for implementation,
Contractor shall:
• Obtain Company’s agreement to Contractor’s proposal for schedule-critical
procurement activities that Contractor will need to perform prior to finalization of its
procurement plan;
• Issue its Contract-specific procurement and materials management procedures to
Company for Company’s review and approval;
• Proceed with procurement of schedule-critical long-lead items;
PROJECT
SPECIFICATION
• Ensure that it secures Company’s acceptance of procurement activities performed

prior to Company’s acceptance of Contractor’s Contract-specific procurement
procedures.
Contractor shall address in its Contract-specific procurement procedures the need to use
in all purchase orders, and other contractual documents for the procurement of items of
Contractor’s Supply, Company’s standard Purchase Order Terms and Conditions
(Document No 84508-9700-9P-001), and Company’s standard Terms and Conditions for
Seller’s Site Services (Document No. 84508-9700-9P-003). Contractor shall obtain
Company’s approval for any exceptions on a case-by-case basis.
7.4.3 Control Documents

Contractor shall prepare, issue for Company’s review, update to take account of
Company’s comments, obtain Company’s acceptance of, and subsequently use the
following control documents, as further defined hereunder for the management and
monitoring of all procurement to be performed as part of the Work:
• Procurement master schedule;
• Field expediting schedule
• Other relevant documents reasonably required by Company, or otherwise required
by Contractor’s management and internal control systems and procedures.
a) Procurement Master Schedule (PMS)
The PMS shall be submitted to Company for Company’s review and approval within 20
Business Days from the Effective Date. Contractor shall incorporate Company’s
comments and re-submit to Company for approval. Upon Company’s approval,
Contractor shall promptly issue the PMS
Contractor shall keep the PMS continuously updated throughout the Contract Term.
Contractor shall keep Company fully informed of any potential deviation from the PMS
and of the action already taken, or being taken, by Contractor to avoid any adverse
impact on the Contract Schedule.
Either Company or Contractor may propose amendment of the PMS for specific reasons
beneficial to the Work. Any such Contractor proposal shall be submitted to Company in
sufficient time to allow Company to review and comment without this affecting the
feasibility of beneficial amendments. Within 10 Business Days from receipt of
Contractor’s proposals, Company shall notify Contractor of its acceptance or rejection. In
making its proposals, Contractor shall allow for Company’s acceptance or rejection of
Contractor’s proposal without detriment to the Contract Schedule.
The PMS shall detail all items of Contractor’s Supply, showing the planned, actual and
current timing of all procurement-related activities for each line item. All materials that
are subject to the commonality requirements shall be clearly identified. The full sequence
of relevant activities shall be shown, beginning from the start of preparation of proposed
bidders lists, receipt of engineering requisition and invitation to bid documents, and
ending with delivery to the Site where the items will be incorporated into the Contract
Objects. All site need dates and planned float shall be clearly identified within the PMS.
Contractor shall keep the PMS fully updated at all times and issued to Company on a
monthly basis. The Company’s Project Team shall have direct access to the PMS. In it’s
planning, Contractor shall allow for the possibility of Company not approving Contractor’s
PROJECT
SPECIFICATION
proposed subcontracting or Contractor’s recommendations of Subcontractors or

Suppliers.
The PMS shall be compatible with the Contract Master Schedule. Contractor shall
ensure that prompt corrective action is taken if at any time procurement-related activities
shown on the PMS could become inconsistent with the Contract Master Schedule.
The PMS shall identify all items of Contractor’s Supply and other goods, services and
items required for the Work including all:
• Subcontracts;
• Engineering Studies;
• Specialist Services;
• Equipment Items;
• Bulk Materials;
• Temporary and consumables items;
The PMS shall schedule the procurement activities to meet all Contract and field need
date requirements and shall take into account the time required for:
• Preparation, issue and approval of bidders list
• Preparation of technical inquiry package by engineering.
• Receipt of technical inquiry package from engineering
• The issue of formal enquiries and receipt of tenders.
• Tender Evaluation
• Delivery periods that may be anticipated from bidders, and ensure that every such
delivery period can be accommodated in its overall planning of the Work
• Promised, current and actual delivery dates (with due consideration to site need
dates).
• Recommendations to Company (technical and commercial).
• Company’s review and approval of bidders lists, enquiry documents,
recommendations for award, and final drafts of purchase orders and subcontracts. In
its planning Contractor shall allow for the possibility of Company not approving
Contractor’s proposed subcontracting or Contractor’s recommendations of
Subcontractors or Suppliers.
• Expected, current and actual inspection dates
• Supplier Document requirements and Document review cycle.
• Site need date determined by the Contract Master Schedule. Contractor shall
specifically highlight all items having a limited amount of schedule float.
• Timing of award of subcontracts or issue of purchase orders to provide for realistic
delivery periods.
PROJECT
SPECIFICATION
• Comments column showing latest status, expediting comments etc.

The PMS shall also address:
Contractor’s plan for liaison and co-operation with Company’s other contractors with
regard to investigating and actioning beneficial commonality of items. Such liaison and
co-operation shall address selection of common Suppliers of like items, subject to
Company’s approval, and such matters as potentially securing joint benefits for
Contractor and Company’s other contractors from more favourable Supplier pricing
based on larger purchase volumes across several contracts.
Provision for Contractor to accommodate selection of particular Suppliers to allow for
beneficial commonality of items among Contractor and Company’s other contractors.
Contractor’s plans for liaison and co-operation with it’s other offices, consortium
members, alliance partners or sub-contractors who will be responsible for procurement to
ensure commonality of all like materials within the Contract Objects.
b) Field Expediting Schedule

Within 30 days of the Effective Date Contractor shall prepare an expediting schedule and
issue to Company for approval. Schedule shall show which packages will be field
expedited by Contractor and the frequency of the visits.
Company’s minimum field expediting requirements for a tagged equipment and main
bulk purchase order e.g. piping and manual valves have been split into 3 categories and
are as follows;
Category 1 - Current / expected delivery date (on site) is equal to or less than 6 weeks
from ROS Date. Minimum weekly desk expediting calls, twice monthly vendor progress
reports, monthly field expediting to vendors works (office / site) to commence 1 week
prior to initial documentation submittal date, regular field expediting to main sub-
suppliers, resident expediting if slippage occurs. Weekly report to be issued from the
Contractor’s expediting department. Involvement by Contractor’s senior management
where deemed appropriate.
Category 2 - Current / expected delivery date (on site) is between 6 to 12 weeks from
ROS date. Minimum requirements, Initial visit to vendor’s works 1 week prior to due
submittal of initial documentation, 1 visit 3 weeks prior to FAT. Regular desk expediting
to decide if further visits required, monthly progress reports from Vendor.
Category 3 - Current / expected delivery date (on site) is greater than 12 weeks from
ROS date. Minimum requirements regular desk expediting, monthly progress reports
from vendor, field expediting to vendors works 1 week after initial documentation
submittal date if documents have not been received.
Upon approval Contractor shall carry out all intended visits. Reports for all visits made
shall be formally submitted to Company no later than 3 business days from the date of
the visit. Highlights from the report shall be entered into a live database e.g. PMS and
shall be available for direct access by Company.
Contractor and Client shall have weekly meetings to discuss status of all packages and
change categories as deemed necessary
PROJECT
SPECIFICATION
c) Other Documents
Other documents include but are not limited to procurement and logistics related
procedures, reports, vendor assistance documentation, cost reports, technical data,
certification, independent studies etc.
7.4.4 Frame Agreements

Particular items may be purchased utilizing Company’s frame agreements with
Suppliers, which Company has established with agreed terms and conditions.
Contractor shall utilize the frame agreements for the procurement of relevant items.
Contractor shall indicate to the specific manufacturer that the materials will be purchased
in accordance with the applicable Company agreement, citing the number of the
agreement as provided by Company in the AML. The resulting purchase orders entered
into by Contractor must make reference to the applicable agreements in order that the
agreed prices are obtained. The Contractor shall issue a monthly report detailing which
frame agreements have been utilized.
Company has identified certain items as a mandatory sole source for reasons of safety,
operability or standardization, which shall be purchased using the agreements in place.
Company shall provide Contractor with a copy of all Agreements in place.
7.4.5 Bid Solicitation

Contractor shall:
(i) Prepare a bidders list, with primary consideration to the AML and specific to each
RFQ and present to Company for approval;
(ii) Prepare RFQ’s and submit to Company for Company’s review and comment;
(iii) Simultaneously with RFQ preparation, prepare bid evaluation criteria and submit for
Company’s review and comment;
(iv) Incorporate Company’s comments;
(v) Issue RFQ’s to qualified and Company approved bidders of items of Contractor’s
Supply.
Contractor shall receive, log in, and reply to, after requesting, receiving and incorporating
Company’s comments, any questions received from bidders during the bid period and
shall receive, log in, reproduce as necessary, and distribute the bids for evaluation.
(i) Bidders Lists

Contractor shall prepare (with primary consideration to the AML) and issue for approval a
separate bidders list for each package within 6 weeks of the estimated RFQ issue date.
Within 10 Business Days from receipt of Contractor’s proposals, Company shall notify
Contractor of its acceptance or rejection.
Under no circumstances shall any Supplier that has not been approved by Company be
issued an inquiry for the supply of any goods or services related to the North Belut
Project.
PROJECT
SPECIFICATION
(ii) RFQ Issue

Contractor shall prepare and issue for Company approval a draft (model) RFQ document
within 15 days of the Effective Date
Contractor shall issue the RFQ for each package for Company approval prior to issuing
to bidders. Within 10 Business Days from receipt of Contractor’s proposals, Company
shall notify Contractor of its acceptance or rejection. Contractor should allow for the
possibility of Company rejecting the RFQ and should allow sufficient time for comments
to be incorporated and document reissued for approval.
RFQ’s shall be issued by Contractor in a timely manner in line with the Contract Master
Schedule.
RFQ’s shall only be issued to bidders approved by Company for the specific package.
In the event that RFQ’s are sent to manufacturer’s agent then proof of authorization from
the manufacturer shall be obtained and submitted to Company.
Sufficient time should be available for bidders to prepare a quality bid.
Clear instructions that all materials with an expected value above $20,000 shall be
procured under sealed bid conditions. Pre printed address labels shall be issued to all
bidders clearly identifying the package number. Bidders shall be informed that any
deviation to the requested method of submittal will be rejected.
All correspondence to and from the bidders shall be copied to Company.
Response to any queries received from any bidders that may have an effect on the
proposals of others shall be copied to all bidders.
Contractor shall prepare requisition packages, which shall include:
a) Commercial Requirements
Contractor shall incorporate Company’s Purchase Order Terms and Conditions and
Terms and Conditions for Seller’s Site Services as a part of Contractor’s RFQ / PO.
All reimbursable material with an expected value above US$20,000 shall be conducted
under a sealed bid regime
b) Technical Requirements
Assemble packages including supply scope specifications, drawings, data sheets, bills of
materials, operation and maintenance manuals and any other information required to
specify the technical requirements for the particular material/ equipment.
c) Inspection, Test, and Supplier Data Requirements
Requirements for quality control, inspections, testing, hold points, and Supplier data shall
be defined for the specific items.
d) Capital, Commissioning / Operational Spare Parts and Construction/ Start-up/
Commissioning Consumable Requirements
Contractor shall request technical and commercial information on capital spares,
operational spares, and construction/ start-up/ commissioning consumables in its RFQ.
As applicable, PO’s shall contain:
PROJECT
SPECIFICATION
• Pricing of construction/ start-up/ commissioning consumables;

• Pricing of capital spares and 2 years spare parts recommended for operations valid
until 2006 and a stipulation that Company, at its sole discretion, may purchase such
spare parts directly from the Supplier under the terms and conditions of the purchase
order.
In its evaluation and comparison of bids for Contractor’s Supply, Contractor shall include
the estimated cost of all capital and operating spares and construction/ start-up/
commissioning consumables likely to be required for each of these three categories.
Contractor shall review Suppliers recommendations for all spares with exception of
operational spares and make a recommendation to Company after commercial
negotiations are complete. Company’s Operations group will review Supplier’s
recommendations for operations spares
Company’s purchase of capital and operations spares is for Company’s own operational
reasons. It shall not relieve Contractor or Supplier of any of their warranty obligations in
respect of Contractor’s Supply. Such obligations include the replacement, at
Contractor’s cost, of such spares used to replace defective or nonconforming items of
All procurement of spare parts will be carried out by Contractor with exception of
operations spares which may be purchased by Company.
Construction/ Start-up/ Commissioning Consumables
Contractor shall develop, jointly with the Suppliers, a list of consumable items (such as
filters, gaskets to be prudently replaced, etc.) recommended for construction, start-up
and commissioning activities in relation to Contractor’s Supply. Contractor shall review
the Supplier’s recommended list and establish the level of construction, start-up and
commissioning consumables for Company review and comment. Contractor shall
incorporate Company’s comments in all requisitions for such consumables prior to
purchase. Provision for purchase of any required consumables shall be included in the
original purchase order.
Capital Spares and Operating Spares
Contractor shall obtain:
• Bidders’ recommendation and prices for capital spares and operating spares for two
year’s operation;
• The Supplier’s updated recommendation of such spare parts when the equipment
design has progressed to the point that specific spares with part numbers are known.
Contractor shall submit its recommendations for Company review and comment, and
thereafter shall incorporate Company’s comments. Company may require Contractor to
procure capital and operating spares under a separate order cross-referenced to the
original purchase order.
If Company requires Contractor to procure capital and/ or operating spares, Contractor
shall be responsible for managing and controlling these items through delivery to
Company. The capital and operating spares recommendation shall identify:
• The equipment tag number;
PROJECT
SPECIFICATION
• A detailed description of each item of spares with dimensions;

• Sketch/ diagram/ data sheet as applicable to each spare;
• The manufacturer’s reference number (s) for each spare;
• The unit cost for each spare part;
• The name, address, telephone and fax number for contact, and e-mail address of the
actual manufacturer of each spare item.
Pipeline and Flowline Construction Spares
Contractor shall procure sufficient construction, test and installation spares as directed
by Company.
7.4.6 Technical Bid Proposals and Evaluation

Contractor shall provide a copy of all technical proposals to Company. Contractor shall
evaluate bidders’ technical proposals and submit its conclusions in a recommendation to
Company. The technical evaluation shall address each bidder’s compliance with the
technical requirements set forth in the requisition, effects of any non-complying parts of
the bid, and recommendations based on Contractor’s experience as well as the bid itself.
Of particular interest is the reliability data specified for packaged equipment in
accordance with Company specification. In addition, Contractor shall recommend any
required modifications to bidders’ technical proposals and prepare modifications to
equipment specifications for Company’s approval. For reimbursable materials the
technical bid evaluation shall be submitted as a joint technical and commercial
recommendation.
7.4.7 Commercial Bid Evaluation

All commercial bids with an expected value above US$20,000 shall be submitted by
Bidder’s in a sealed envelope, (quoting package number, bidder and bid closing date),
provided by Contractor.
All sealed bids shall be opened in the presence of a Company representative.
Contractor shall advise Company at least 2 Business Days in advance of the scheduled
bid opening date.
In the event that any bidder has declined to quote a copy of the correspondence stating
that they decline shall be available for review prior to the bid opening.
Contractor shall prepare a bid opening report that shall show as a minimum;
• Package number,
• Package description
• Budget price
• All bidders that inquiries were issued to
• Total package price for each bidder
• Signature column for Company and Contractor.
PROJECT
SPECIFICATION
A copy of the bid opening report and 1 priced and 1 un-priced copy of each quotation
shall be issued to Company within 1 business day of the bid opening
Contractor shall carry out the commercial evaluation of bids, including complete
tabulation of all received bids, and present its conclusions for Company’s consideration,
and comments, and acceptance following Contractor’s incorporation of Company’s
comments. Company shall have the right to participate in the commercial evaluation,
and Contractor shall obtain Company’s acceptance of the response to all queries from
bidders before they are issued.
Commercial evaluations shall take into account:
• Shipping costs,
• Payment terms including present value analysis of progress payments where
applicable. For large value Purchase Orders Company will consider progress
payments in line with work completed e.g. 10% upon acceptance by Buyer of defined
critical documents, 50% upon a defined milestone equalling 50% of the work
completed, 25% when goods have passed inspection and are ready for dispatch,
15% upon acceptance of final documentation. Company recognises that some
packages may require additional payment milestones. These can be discussed and
agreed on a case by case basis.
• life cycle cost considerations including spare parts costs;
• Construction, start-up, and commissioning consumables;
• Site(s) services;
• Details of nearest service support facility;
• Training costs;
• Inspection costs;
• Exceptions to the purchase order terms and conditions;
• Clearly defined cancellation schedule
• Normalization adjustments to take account of any exceptions by bidders;
• Any costs adjustment related to reliability data:
• Standardization/commonality of materials, etc., between the separate contract
objects;
• Any development /clarification of process shall be fully recorded to document the
reasons for any adjustments to the price;
• Any areas where agreement has not yet been reached or still requires clarification;
• Any other significant cost adjustments warranted.
Contractor’s evaluation of each bidder’s proposed delivery schedule shall consider:

• Its ability to deliver in accordance with the Contract Master Schedule;
• Shipping time to the relevant Site;
PROJECT
SPECIFICATION
• The schedule for furnishing Supplier data conforming to technical requirements.

Contractor shall make every reasonable endeavour to accommodate delivery times
quoted by bidders. Contractor shall not be entitled to rule out a bidder offering
favourable pricing, in preference for another bidder offering an earlier delivery, but a
higher price, unless it can show conclusively that it cannot accommodate the longer
delivery. If timely delivery is particularly important, this must be clearly explained to all
bidders as part of the notified bid evaluation criteria, and Contractor shall plan its
procurement activities to avoid disqualification of potential bidders solely on the grounds
of unacceptable delivery dates.
All commercial information shall be treated as strictly confidential. Access to bidders
commercial information shall be limited to personnel directly involved in the evaluation.
Technical personnel to evaluate based on un-priced copies of quotations.
Contractor shall operate a clean desk policy. All confidential information should be stored
in a locked cabinet when not being worked on. Company shall carry out unannounced
inspections of the work place.
7.4.8 Recommendation –
Following full technical and commercial evaluation of bids, Contractor shall:
• Prepare a technical and commercial recommendation document (format to be agreed
between Company and Contractor) for all materials and submit to the Bid Committee
for review.
Recommendation to include as a minimum
1) Narrative explaining the bid process
2) Scope of Supply
3) Primary bidders for RFQ
4) Receipt of formal quotations
5) Selection of short list bidders
6) Clarification and evaluation of short list bidders
7) Package budget
8) Purchase Award recommendation
9) Package forecast
10) Payment Schedule
11) Warranty
12) Delivery period
13) Delivery terms
14) Terms and conditions with qualifications and exceptions identified*
15) Technical evaluation with qualifications and exceptions identified*
16) Details of reliability data
PROJECT
SPECIFICATION
17) Agreed SDRL

18) Quality evaluation
19) HSE evaluation
20) Commercial evaluation
21) Details of nearest service support facility
* any qualifications and exceptions of significance shall be passed to Company as identified
• Provide a presentation to the Bid Committee showing reasons for selection of
proposed bidder.
• Prepare its recommendations related to award of the purchase order.
• Compile a list of any technical and commercial issues outstanding and requiring
clarification.
• Discuss and agree categories of all documentation requirements and agreed
submittal dates and include as an attachment to the technical evaluation.
NB
Bid committee members shall consist of Technical and Commercial personnel from
Company.
Company shall review Contractor’s recommendations and comment accordingly.
Contractor shall:
• Incorporate Company’s comments prior to resolving all outstanding issues with the
bidder;
• Obtain a precise definition, and delivery date, of the Supplier data to be provided by
the bidder.
Upon resolution of any outstanding items and Company acceptance, Contractor shall
promptly send a confirming commitment to the Supplier and promptly finalize the
purchase order.
7.4.9 Purchase Order Award

Contractor shall prepare the purchase order for issue to the selected Supplier,
incorporating the agreed resolution of clarifications. Contractor shall issue to supplier
and Company a priced purchase order for the agreed scope of supply within 5 business
days of Company’s acceptance.
7.4.10 Purchase Order Changes

Contractor shall submit all requested changes to purchase orders that have price or
delivery implications in a Request For Change (RFC) document for Company review
(format to be agreed between Company and Contractor). Document shall include as a
minimum;
• PO / package number
• Current PO value
PROJECT
SPECIFICATION
• Value of change
• Revised PO value
• Original delivery date
• Revised delivery date
• Details of change (all supporting documentation to be included)
• Reason for change (all supporting documentation to be included)
• Contractor’s recommendation
• Contractor’s approval signature
• Company comments section
• Company’s acceptance / rejection section
• Company signature section
Contractor to issue to Supplier and Company a PO Change Order or reason for rejection
within 5 business days of Company’s response.
7.4.11 Expediting
a) Supplier Progress Reporting
All suppliers of tagged equipment and significant bulk materials e.g. and as a minimum
piping materials, valves, major electrical and Instrument bulks etc. shall be required to
submit a progress report monthly or more frequently as required by Company. The report
shall include:
• PO agreed delivery date
• Current delivery date (ex works and ETA Site)
• Site need date
• A narrative explaining the work carried out in the period
• Details of any slippages to the schedule and corrective action to be taken.
• Details of work to be carried out in the next period
• A narrative explaining the current status of all major sub orders
• Details of any expediting visits carried out in the period
• Details of any expediting visits scheduled for the next period
• Updated copy of the manufacturing, fabrication and assembly schedule
• An updated copy of the sub-order schedule (format to be agreed between Company
and Contractor)
PROJECT
SPECIFICATION
b) Field Expediting
Contractor shall arrange field expediting as per the Company accepted agreed FES. This
is regarded as the minimum requirements. Any further visits deemed necessary due to
supplier’s failure to meet any part of the agreed schedule shall be subject to Company
approval.
Contractor may sub-contract the field expediting scope of work to an Expediting agency
approved by Company
At Company’s option, Company may assist Contractor’s expediting of critical items.
Company shall have right of access to all suppliers and sub-suppliers and services for
any expediting, inspection or auditing purposes, this requirement shall be stipulated in all
Purchase Orders / Subcontracts.
Company’s representatives shall visit Suppliers’ assembly shops from time to time to
observe progress of Contractor’s Supply and to participate in discussions between
Contractor and Suppliers, as may be required, to assure uninterrupted schedules and
timely delivery in accordance with the purchase order provisions, this requirement shall
be stipulated in all Purchase Orders / Subcontracts.
C) Desk Expediting
Contractor shall deploy desk expeditors permanently allocated to the Project during the
procurement and document completion phase. Expeditors shall carry out all expediting to
ensure timely completion of manufacturing and delivery of Contractor’s Supply, as
follows:
• Maintain contact and liaison between Contractor and Supplier during manufacturing;
• Ensure Supplier has established a production schedule that will meet the purchase
order delivery date;
• Expedite and review supplier’s monthly progress reports;
• Arrange and coordinate field expediting;
• As early as possible identify problem areas or delays in manufacturing, and assist
Supplier with remedial action;
• Monitor and control the preparation and delivery of Supplier data; and
• Track and assure timely resolution of all Supplier deviation requests.
Information received shall be entered into a live database e.g. PMS and shall be
available for direct access by Company.
7.4.12 Supplier Data

Contractor shall expedite, receive in a timely manner, log, and review all Supplier data
for Contractor’s Supply to verify its completeness and compliance with purchase order
requirements.
Supplier data shall be controlled in accordance with Contractor’s document/ information
management procedures approved by Company.
Contractor shall identify and ensure timely delivery of supplier data required for evolution
of the design engineering. Planned dates and need dates shall be included in the PMS.
PROJECT
SPECIFICATION
The desk expeditors shall closely monitor supply and review of supplier data such that
the design engineering is not disrupted.
Contractor shall, in a timely manner, provide supplier documentation to the various Sites
as required for it to properly receive, handle, store, install and commissioning the
respective materials and equipment.
Contractor shall copy, file, and retain copies of the final Supplier data for inclusion in
dossiers or transmittals to Company at such times as Company may require. Contractor
shall deliver all Supplier data to Company for the purposes of commissioning and start-
up of the Contract Objects.
Contractor shall make Supplier data available for Company review and comments.
Company, at Company’s discretion will review and comment on Supplier data.
a) Data Required
Contractor shall provide all “submitted for approval” drawings and documentation during
fabrication, and all certified drawings, diagrams, mill certificates, operating and test
certificates, operating and maintenance instructions, spare parts lists, and any other
relevant Supplier documentation for Contractor’s Supply, in the format set out in
document number 84501-9200-9T-001. Of particular interest is the reliability data
specified for package equipment in accordance with Company specifications.
Contractor shall clearly identify on the Supplier Documents Requirements List (SDRL)
documents required for
1) Review
2) For information only
3) Engineering and design
4) Fabrication
5) Data required for Company
Contractor shall fully discuss and agree dates for submittal of all vendor documentation
prior to award of any Purchase Order. A Copy of the agreed SDRL shall be included in
the technical evaluation and Purchase Orders.
b) Dossiers
Contractor shall provide dossiers for all items of Contractor’s Supply, which shall include
all final Supplier data. Each individual Contract Object shall have its individual set of
dossiers, which will be multiple volume, fully bound documents. Contractor shall propose
for Company’s approval the proposed organizational format of Supplier data into sets of
dossiers. Dossiers shall be identified by the purchase order number(s) of the equipment
and/ or material detailed in each volume. Each volume shall have an index with a cross-
reference to equipment tag numbers, description and Supplier, and shall include all
Supplier information.
c) Company Specifications.
Contractor shall ensure that the Data and Documents specified in a and b above shall
comply with Company specifications 84501-9200-9T-001 Supplier Data Requirements
Master Listing, 84501-9200-9L-003 Engineering data Collection and Transfer, 84501-
9200-9L-002 Final Documentation and 84501-9200-9L-001 Document Numbering.
PROJECT
SPECIFICATION
7.4.13 Inspection
Contractor shall develop, initiate and administer the inspection and testing procedures for
equipment in Supplier premises and fabrication yards for review and approval by
Company. Detailed requirements for the extent of inspection are included in the
individual equipment specifications prepared by Company, Equipment Criticality Ratings
and Quality Programme Requirements document number 84501-9200-9P-005,
Inspection and Test requirements for equipment and material document number 84501-
9200-9P-0006.
Contractor shall arrange inspection to verify the quality of materials, workmanship and
final testing of all manufactured items. Contractor shall promptly submit inspection
reports to Company personnel in accordance with agreed distribution.
Company’s representatives shall have access at all reasonable times to manufacturing
locations, fabrication yards and other working areas. Contractor or the Supplier shall
provide proper facilities for observation and inspection by Company representatives. This
requirement shall be stipulated in all Purchase Orders / Subcontracts.
Company’s representatives shall have the right to reject any part of Contractor’s Supply
that fails to comply with the applicable specifications.
The acceptance of Contractor’s Supply, and the release thereof for shipment, shall in no
way relieve Contractor of any responsibility for compliance with the applicable
specifications, Company Supplied Data and the Contract at large.
Company’s representatives shall visit Suppliers’ assembly shops from time to time to
observe progress of Contractor’s Supply and to participate in discussions between
Contractor and Suppliers, as may be required, to assure timely delivery in accordance
with the purchase order provisions.
Upon request from Contractor, Company may waive inspection requirements in some
cases, but this waiver shall not be construed to be a blanket waiver of all such
requirements, nor shall such waiver create a precedent. At Company’s option, Company
may control and approve inspection of some critical items. In such cases, Company will
approve the proposed test programme and witness all tests at the Subcontractor’s or
Supplier’s shop and assure itself that the completed items will meet the stated
requirements.
7.4.14 Test Witnessing

Witnessed performance tests, hydrostatic tests, dimensional verification, verification of
positive material identification (PMI), etc., are required for certain items of Contractor’s
Supply in accordance with the equipment specifications and shall be defined in the
purchase orders. Requirements for witnessing of performance test procedures and
required hold points shall be defined in the purchase enquiry, when possible. Contractor
shall submit test procedures for Company comments and approval in respect of all major
and critical equipment.
Contractor shall ensure that all applicable Contractor’s Supply complies fully with the
requirements of MIGAS, including those related to witness testing by or on behalf of
MIGAS.
PROJECT
SPECIFICATION
7.4.15 Packing & Delivery

Following inspection, testing, acceptance and certification of items of Contractor’s
Supply, Contractor shall ensure that they are properly packed and transported from each
Supplier’s location to the destination Site.
Contractor shall use a computerised material movement tracking system to ensure that it
has full control over the movement and shipment of materials and equipment. In a timely
manner, Contractor shall produce a procedure for review and approval by Company that
addresses the preparation, organization, movement, receipt, handling, storage and
preservation of materials and equipment.
7.4.15.1. Contractor’s system should cover up to the point of confirmed receipt and full
acceptance by fabrication Contractor.
7.4.15.2. Importation and Receipt
Contractor shall arrange for, and oversee, the receipt of all material at the port of entry
for the destination Site(s), expediting them through customs, and transporting them to
their designated Site. Contractor’s responsibilities include:
a) Importation and exportation
(i) Securing and preparation of documents required for clearance and
customs.
(ii) Release of goods.
(iii) Expediting shipments through customs for discharge and transportation to
destination.
(iv) Arranging for cargo handling equipment.
(v) Supervising the handling and movement of cargo.
(vi) Arranging inland deliveries.
(vii) Arranging temporary imports
(viii) Bonded warehousing.
(ix) Payment of all duties, fees, etc.
b) Transportation to Site
Arrange all transportation from the port of entry to the designated Site.
c) Material Receiving at Site

Arrange examination of all items upon receipt at the destination Site. Company shall be
notified immediately of any damage to equipment or materials. All items shall be
examined for compliance with the purchase order and issue material receiving reports
(MRR). Over, short, and damage (OS&D) reports shall be prepared accordingly.
Contractor shall resolve all OS&D issues promptly. Copies of all OS&D reports with full
details of the inadequacy and the plan for their resolution shall be submitted to Company.
All materials shall then be handed over to Contractor’s Site material control personnel
who will be responsible for warehousing and inventory control.
PROJECT
SPECIFICATION
7.4.16 Vendor Services

Contractor shall prepare and issue for Company approval a “Vendor Services Planning
and Control Procedure” within 90 Days of the Effective Date. .
Contractor shall be responsible, in all respects, for all visas, importation / re-importation
of all tools and equipment and the like.
Contractor to prepare and submit to Company for approval a site service request for any
reimbursable vendor assistance visits. Service Request to be issued at least 6 weeks
prior to vendor required on site date. Service request to include as a minimum;
• PO Number
• Vendor (actual vendor who will be performing the work)
• Details of the work to be carried out
• Expected date required on site.
• Number of personnel required
• Expected duration
• Who will be responsible for vendor while they are on site
• Details of agreed costs
• Expected total cost
• Copy of Punch list of outstanding work (If applicable)
Upon Company approval of the site service request Contractor shall send out and obtain
agreement from the vendor. Documentation to be submitted to vendor at least 4 weeks
prior to expected date required on site.
Explain procedure for calling out vendor i.e. who will decide vendor required on site date,
how this information will be passed to the vendor. How the vendor’s response will be
advised to the requisitioner.
Explain how work will be allocated to the vendor once he arrives on site
Explain how Contractor will ensure that any punch list work is not claimed against the
site service budget.
Vendors will be required to issue a report detailing all work completed on site (both
vendor assistance and punch-list work). Report to be issued prior to any time-sheet
being signed.
Contractor shall prepare and issue a monthly vendor assistance schedule showing
expected date/s that vendors’ will be required on site.
Company shall sign off vendor timesheets for any vendor support compensated under a
reimbursable arrangement.
Contractor shall have at least one (1) Vendor Services Coordinator based on Site who
will manage vendor’s representatives on site
PROJECT
SPECIFICATION
7.5 Subcontractor / Supplier Performance Report

Contractor shall prepare and issue for Company comments a Performance Report in line
with procedure 84501-9200-9P-011.

Conocophillips Indonesia Inc. LTD.: B IFB FJS TR KD 03 June 05

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Conocophillips Indonesia Inc. LTD.: B IFB FJS TR KD 03 June 05

Uploaded by

Copyright:

Available Formats

CONOCOPHILLIPS INDONESIA INC. LTD.

NORTH BELUT DEVELOPMENT PROJECT

PROCUREMENT AND MATERIALS

REV ISSUE PREPARED BY REVIEWED BY APPROVED BY ISSUE DATE

REVISION CONTROL SHEET

B 03 June 2005 FJS TR KD

5. DEFINITIONS AND ABBREVIATIONS .................................................................... 4

7. PROCUREMENT AND MATERIALS MANAGEMENT ........................................... 6

7.1 Procurement Overview ................................................................................................................. 6

5. DEFINITIONS AND ABBREVIATIONS

ADP List Appreciation of Domestic Products list

ETA Estimated Time of Arrival

Approved Manufacturer’s List, document number 84508-9700-9W-001

7. PROCUREMENT AND MATERIALS MANAGEMENT

7.1 Procurement Overview

Contractor shall manage all Subcontractor/ Supplier interfaces including engineering,

(i) Prepare a PMS

Reimbursable Items and Lump Sum Price Items

(2) Company shall compensate Contractor for the procurement of Reimbursable

7.2 Materials and Equipment / Supplier Selection

7.2.1 Materials and Equipment Selection

7.2.2 Supplier Candidates

7.2.3 Appreciation of Domestic Product (ADP) List

7.2.4 Commonality / Standardization of Materials

7.3 Procurement Infrastructure

7.3.3 Procurement Plan

7.3.4 Procurement Master Schedule (PMS)

7.3.5 Field Expediting Schedule (FES)

7.3.6 Materials Management

7.3.7 Contractor Materials System

7.4 Procurement Activities

7.4.1 Long Lead Materials

7.4.2 Schedule-Critical Procurement Activities

• Ensure that it secures Company’s acceptance of procurement activities performed

7.4.3 Control Documents

proposed subcontracting or Contractor’s recommendations of Subcontractors or

• Comments column showing latest status, expediting comments etc.

b) Field Expediting Schedule

7.4.4 Frame Agreements

7.4.5 Bid Solicitation

(i) Bidders Lists

(ii) RFQ Issue

• Pricing of construction/ start-up/ commissioning consumables;

• A detailed description of each item of spares with dimensions;

7.4.6 Technical Bid Proposals and Evaluation

7.4.7 Commercial Bid Evaluation

Contractor’s evaluation of each bidder’s proposed delivery schedule shall consider:

• The schedule for furnishing Supplier data conforming to technical requirements.

17) Agreed SDRL

7.4.9 Purchase Order Award

7.4.10 Purchase Order Changes

7.4.12 Supplier Data

7.4.14 Test Witnessing

7.4.15 Packing & Delivery

c) Material Receiving at Site

7.4.16 Vendor Services

7.5 Subcontractor / Supplier Performance Report

You might also like