PETROCHEMICAL COMPLEX IN SOUTH OF VIETNAM:

PACKAGE A1 – OLEFINS PLANT

MANAGEMENT DISCUSSION
FOR
SUBCONTRACT

06-June-2024
AGENDA
1. AGREED AMOUNT BY PARTIES
APPROVED ACCOUNTING LEDGERS, CRSWO&CRCWO,…

2. EXPENSES OF PTSC & TPSK

CLAIMS, BACK-CHARGES, WE-UD PAID, MANPOWER, HOLIDAYS WORKING

3. DIFFERENT AMOUNT
BOLTING, INLINE INSTUMENT, CRSWOs

Batches 1~2

4. SUMMARY
AGREED + SETTLED DIFFERENT AMOUNT

5. DISCUSSIONS & CONCLUSIONS

1. SUMMARY OF AGREED VALUE BY PARTIES:

AGREED VALUE BY
NO DESCRIPTIONS REMARK
TPSK/PTSC
A QUANTITY PERFORMED 2,509,173,425,742 All-in + Direct + Indirect

B CHANGE ORDERS 423,415,279,540 Direct Only + Lumpsum

C TOTAL (A) + (B) 2,932,588,705,282

D UTILITIES CONSUMPTION (3,118,450,230)

E GRAND TOTAL (E) = (C) + (D) 2,929,470,255,052 ~ $ 126,719,575

 This value agreed by Parties according to i) approved Accounting

Ledgers (AL), ii) approved Change Request (CRSWO&CRCWO), and iii)
agreed utilities consumptions;
 Indirect Amount is updated as per contractual X/Y Formula

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2. EXPENSES OF PTSC & TPSK:
NO DESCRIPTIONS PTSC EXPENSES NO DESCRIPTIONS TPSK EXPENSES
CLAIMS BACKCHARGE
1 225,617,088,319 1 153,927,272,265
(Batch 1~2, excl. 300 Mpw) (Batch 1~6)
300 MANPOWER WE-UD PAID
2 23,231,345,407 2 50,145,244,429
(TPSK deducted) (Direct Amount)
DISCOUNT 25% RENTAL
3 11,468,377,970 3 CGC INCENTIVE 10,088,222,864
SCAFFOLDING
MANPOWER SUPPORT
4 FROM PTSC HEAD 188,007,890,825 4 HOLIDAYS WORKING 1,800,000,000
QUARTER

5 SUPPORT FROM LSP 18,595,776,800

6 TOTAL PTSC 466,920,479,320 5 TOTAL TPSK 215,960,739,558

 To reach the Project current success, PTSC spend total actual cost 466,9
billions VND
 PTSC assume TPSK spend total 215,9 billion VND for Subcontract related
Backcharge, WE-UD Paid, CGC Incentive and Holidays working paid to PTSC
 Parties to find solutions for alignment these two figures

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3. DIFFERENT AMOUNT:
TPSK AGREED PTSC PROPOSED
NO DESCRIPTIONS REMARK
AMOUNT (*) AMOUNT
TPSK agreed: 40%, but reduce
1330 BOLTING
1 8,874,323,136 13,311,484,704 Backcharge
(Direct + Indirect)
PTSC proposed: 60% to AL approval
TPSK agreed 100%but reduce
2230 INLINE INSTRUMENT
2 2,501,930,471 2,501,930,471 Backcharge
(Direct + Indirect)
PTSC proposed: 100% to AL approval
CRWO-0594 TPSK agreed: 17,5% (=50%*35%)
3 3,001,681,724 8,576,233,498
(Repair Jacketing Damages) PTSC proposed: 50%
CRWO-0771
4 714,619,060 714,619,060 Closed
(Steam Trap)
CRWO-0776
5 998,349,333 2,142,798,568 TPSK removed Tower Scaff.
(Scaffolding for TML)
CRWO-0377 TPSK rejected
6 0 2,554,904,296
(Ceramic Fiber Insulation) PTSC proposed 100% workdone
7 TOTAL 16,090,903,724 29,801,970,596

 PTSC is ready to discuss and finalize with TPSK together with Section 2 –
Expenses Amount of each Party
 Note (*) TPSK agreed Direct Amount 13,499,022,540 VND. The added Indirect
Amount is calculated as per contractual X/Y Formula for each discipline

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4. SUMMARY:
NO DESCRIPTIONS TPSK AMOUNT PTSC AMOUNT FINAL AMOUNT (*)
AGREED AMOUNT
1 2,929,470,255,052 2,929,470,255,052 2,929,470,255,052
(See Section 1)

SETTLED DIFFERENT
2 AMOUNT 16,090,903,724 29,801,970,596 TO BE UPDATED
(See Section 3)
3 TOTAL 2,945,561,158,776 2,959,272,225,648 TO BE UPDATED
3 IN USD ($) $126,719,575 $127,309,432

 Parties have showed all efforts, full responsibilities for settlement period.

 PTSC is willing to settle with TPSK for Project closure on amicable approach

 Note (*) upon settlement, Parties shall mutually release and forever

discharge of each other from, any and all claims and howsoever and

whenever arising whether past, present or future

 PAC dated 29-Mar-24 shall be signed off for warranty period

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Thank you