QUALITY CONTROL / INSPECTION REPORTThis report highlights the basic role of each consultant in regards to the Egbaoma Gas Processing Plant project. This report covers the quality control inspection activities, integrity check and analysis, design surveillance activities.

Quality Control Strategy

The quality control of the GTL project focuses primarily on the GTL project acceptable standards and performance. The quality performance standards for the GTL Project are in accordance with the organizational standards of performance. However, there are several project-specific quality standards which were established specifically for the GTL Project. Physical measurements will be conducted on the project to ensure compliance with established quality standards.

The project team will perform all physical measurements and will provide the results. The quality group will ensure all physical and performance standards are met, perform audits, and assist the project team with creating or updating all documentation related to project quality.

The Project Manager along with both Project Controls and Quality Control Engineers will regularly schedule project, management, and document reviews. In these reviews, an agenda item will include a review of projects, any discrepancies and/or audit findings from the quality manager, and a discussion on project improvement initiatives.

It is imperative to the success of the project that all of the established physical and performance standards are met. By doing so, the GTL Project Team will ensure that the project achieves the high level of customer satisfaction anticipated in line with budget and resource allocations

PROCESS

Steps to solving quality control problems

. Identify the

problem

2. Analyse the

problem

3. Identify the root

cause

4. Record solutions

5. Prioritise solution

action plan

6. Implement

solution

7. Evaluate progress

Description of the process is presented in the chart below:

PROJECT QUALITY CONTROL CHART

Test Criteria

Acceptance Criteria

Project Goals Implementation

User Acceptance

System Test

Develop Solution Component

Select Solution

Define Project Requirements

Project Initiation

Egbaoma Site Inspection by GTL:

Quality inspectors on site follow up installation activities based on approved Inspection and Test Plans (ITPs) and ensure that all work done comply with Company rules and industry standards and specifications.

The Site Quality Inspectors perform monitoring and surveillances of contractor/ subcontractors site activities e.g. The Civil Inspectors check the integrity, foundation details and dimensional control of the Foundation of NGL tanks (On-plot and Off-plot). The Civil Inspector (GTL/LINKSO) ensures that the concrete mixture and curing integrity is up to standard as per the industry specification.

The Welding Inspectors check the material, welding and installation of mechanical construction activities on NGL tanks, e.g. the material grade for conformity, the approved WPS is followed in welding as per standards/ drawing, the dimensional check as per drawing, and welding consumables storage is at approved temperature.

On Egbaoma site, the Civil Foundation of NGL Tanks (on-plot and off-plot) has been completed and tested. The Annular plates for the tanks has been put into place. The Bottom floor plate for NGL Tank On-plot has been fabricated. The structural ladders and structural roof drums for the tanks has been completed

BUREAU VERITAS – BV is a world leader in Testing, Inspection and Certification services -Third Party Inspection Team Bureau Veritas is present in 140 countries

BV Employs the services of ASME Inspectors to oversee specific equipment (the pressure vessels and packaged skids) fabricated at SPEC fabrication yards, for statutory insurance. The ASME Inspectors follow up the step by step inspection/test of each equipment based on the approved ITP and signed it off on satisfactory completion.

The BV ASME Inspectors (Since they are certified ASME inspectors) and SPEC Quality Engineers are mainly supervising the fabrication and inspection for the Bulk Materials (Equipment and Packaged units) at SPEC yard in DUBAI.

At SPEC fabrication yard, the following vessels and skids has been fabricated. NGL Stabilizer, NGL Reboiler, Propane Receiver, CPI Separator, Water

Degassing Boot has been fabricated and successfully hydrotested. Their related Skid has been fabricated, awaiting Factory Acceptance Test (FAT)

The fabrication of Gas/Gas Exchanger, Gas/Liquid Exchanger and Regeneration Gas Cooler and their associated skids is in the final stage of completion, for hydrotest and Factory Acceptance Test (FAT).

Design Quality Surveillance:

GTL wanted to have a competent engineering company which can review basis of design and all engineering deliverables for this project, so following companies were engaged.

A) ALEC which is a foremost engineering company and whose area of expertise includes engineering designs, construction and project management along with procurement services, it represented and showed us that they have all the requisite to deliver on the objectives.

B) XODUS also an engineering company having skills in Process and instrumentation engineering was approached for this project.

An alliance was formed called as XODUS – ALEC consortium for this project delivery.

Till date this consortium has reviewed all:

Design philosophies and made appropriate comments and recommendations for incorporation into final design documents.

Also have reviewed, participated in HAZOP and final submission has been done.

All calculations, drawings and required engineering deliverables has been produced, reviewed and given final approval.

Today, engineering is above 94%.

ROYAL HASKONING, Doing feasibility study for whole project

The objective of the work was to assess the Egbaoma Gas Processing Plant in Nigeria through review of all information made available to Haskoning DHV Nederland BV (Royal Haskoning DHV).

For carrying out due full-fledged feasibility study they did the due diligence by referring all,

Platform Annual Report of Reserves , Egbaoma Field Gas Reserves Update & Gas Compositional Analysis Report , All Sales and Purchase Agreement, EPC

Contract , Gas Train Ltd Project Execution Plan and Contractor Project Execution Plan , Design Basis , P&IDs , Project Schedule – level 4, All the philosophies for this project, All procedures and process of GTL

PROJECT QUALITY SURVEILLANCE - NEON TOUCH LIMITED

After financial Closing and commencement of project execution, project will be monitored by doing the following:

Review project documentations against established plans and milestones

Provide report to Union Bank & Undertake site visitation over the project duration

Monitoring will be carried out in the following stages:

Stage 1 Project Kick-off

Stage 2 Detailed Engineering

Stage 3 Procurement /FAT

Stage 4 Construction

Stage 5 Commissioning / Start-up