EPC CPF PHASE 2 AT BADRA OILFIELD, IRAQ

Method Statement for Fabrication & Installation & Hydro-Test Works of U/G Metallic Piping

Doc No.: GB090-2614-250-PI-MS-0001Rev. : APage : 2 of 16

EPC CPF PHASE 2 AT BADRA OILFIELD, IRAQ

Method Statement for Fabrication & Installation & Hydro-Test Works of U/G Metallic Piping

Doc No.: GB090-2614-250-PI-MS-0001Rev. : APage : 16 of 16

DOCUMENT DETAILS

EMPLOYER CONTRACT NO.: 090-13-BD-205-00

PROJECT: EPC CPF PHASE 2 AT BADRA OILFIELD, IRAQ

EMPLOYER: Gazprom Neft Badra B.V.

CONTRACTOR JOB NO.: GB090

CONTRACTOR: Samsung Engineering Co. Ltd

CONTRACTOR JOB NO.: SG-2614

DOCUMENT NO. : GB090-2614-250-PI-MS-0001

REVISION NO.: A No. of pages (incl. sheet) : 16

DOCUMENT DESCRIPTION: Method Statement for Fabrication & Installation & Hydro-Test Works of U/G Metallic Piping

AIssued for ReviewA.RenatusW.Y.BaekB.K.KimD.N.Kim

RevDescriptionDatePreparedCheckedApprovedSM

Electronic Filename : GB090-2614-250-PI-MS-0001_A.docx Doc Size : A4

EPC CPF PHASE 2AT BADRA OILFIELD, IRAQ

Doc. No. GB095-BA01-300-PC-PP-003PROGRESS MEASUREMENT PROCEDURERev : A Date: 22.05.12Page: 3 / 5

CPP

SUMMARY OF DOCUMENT REVISIONS

Rev.Date RevisedSection RevisedRevision Description

AIssued for ReviewIssue for Employers Review

TABLE OF CONTENTS1 Scope and Purpose51.1 Scope51.2 Purpose52 Definitions and Abbreviations52.1 Definitions52.2 Order of Precedence62.3 Abbreviations63 References73.1 International Codes and Standards73.2 Project Specifications and Procedures74 Responsibilities74.1 Construction Manager (CM)74.2 QA/QC Manager84.3 Discipline Engineer (SI)84.4 HSE Officers85 Material Handling85.1 Loading, Unloading and Transportation85.2 Handling and Storage85.3 Site Storage96 Pipe Fabrication96.1 General96.2 Pipe Cutting96.3 Beveling of the Edge96.4 Welding106.5 Final Correction107 Installation of Underground System107.1 Visual Inspection for Piping Component107.2 Trench Construction107.3 Precondition of Piping Installation107.4 Pipe Laying107.5 Back Filling118 Pre-Hydro-Test Requirements118.1 Testing Section118.2 Equipment119 Hydrostatic Testing129.1 Process Chart129.2 Cleaning129.3 Testing Medium139.4 Testing Pressure139.5 Preparation for Construction139.6 Fabrication of Hydro Testing Cap139.7 Strength Test139.8 Tightness Test149.9 Releasing Pressure159.10 Hydro Testing Record159.11 Reinstatement15

10 Safety Requirements1510.1 Safety (HSE PLAN)1510.2 Supervision1610.3 HSE Requirements16

1 Scope and Purpose

1.1 Scope

Method Statement covers basic requirements for handling of underground metallic piping materials (amine drain system, closed drain system and glycol drain system) prefabrication, installation, testing and handover of all underground metallic piping work.

1.2 Purpose

This Method Statement provides direction to field engineering, supervision personnel, planning, controlling, inspection and handover of underground metallic piping installation work.

2 Definitions and Abbreviations

2.1 DefinitionsPROJECT:EPC CPF PHASE 2 AT BADRA OILFIELD, IRAQ

EMPLOYER:Gazprom Neft Badra B.V. (GPNB)

CONTRACTOR:Samsung Engineering Co., Ltd.

CONTRACTORS JOB NO.:SG-2614

FEED CONTRACTOR:TECHNIP

LICENSOR:JACOBS

SUBCONTRACTOR: any company or person to whom CONTRACTOR has subcontracted any part of the WORK

SUPPLIER:any person, firm or company, which manufacture or supply equipment or services for the performance of any item of the WORK

WORK:means the works and/or services entrusted by CONTRACTOR under the Contract with EMPLOYER

2.2 Order of PrecedenceIn the event of apparent technical conflict occurring in applying this specification and reference documents, the following order of precedence shall apply;1. Iraqi Local Regulations2. Purchase Requisition of Contractor (with Note 1)3. Equipment datasheet4. International codes and standards as mentioned in the Project specification (with Note 2)5. Contractors Project SpecificationsNote 1: No technical specification shall be defined herein which conflicts or alters the Contractors Project specificationNote 2: For cases where requirements of Contractor Project specification is superior/exceed requirements set forth in the codes and standards, the former shall be considered as mandatory requirement for this Project.Exceptions to and deviations from this specification and any other referenced documents shall not be implemented without written approval by EMPLOYER2.3 AbbreviationsThe following abbreviations are used in this document:APIAmerican Petroleum Institute

ISOInternational Organization for Standardization

ASMEAmerican Society of Mechanical Engineers

ASNTAmerican Society for Nondestructive Testing

SAWLStraight Arc Welding Line

SMLSSeamless

PWHTPost Weld Heat Treatment

QCQuality Control

U/GUnderground

ITPInspection Test Plan

HTHydrostatic Test

3 ReferencesIn conjunction with this specification, the codes, standards, regulations and references listed below shall also be applicable. Equivalent alternatives may be offered; however these shall be identified and based on agreement with Employer / Contractor.

3.1 International Codes and StandardsUnless otherwise specified, reference to any standard or code shall mean the latest edition of that standard or code including addenda, supplements or revisions as follows.ASME B31.3Process Piping

NACE MR 0175/ISO15156Petroleum and natural gas industries - Materials for use inH2S-containing environments in oil and gas production

3.2 Project Specifications and ProceduresFor the following Project Specifications, Approved (code-1) revision shall be referred.GB090-2614-250-PI-LL-0001Line List

GB090-2614-250-PR-DL-0002Fluid List

GB090-2614-250-PI-SP-0002Piping Material Specification

GB090-2614-250-QA-SP-0002Welding of Carbon Steel Piping and Equipment in Wet H2S Service

4 ResponsibilitiesContractor (SECL) shall be responsible for delivering all material at site in good condition,according to the requirements of the project, and handover to Subcontractor (SC). Contractor shall ensure that Subcontractor secure all the necessary and approved drawing prior to commencing the job.4.1 Construction Manager (CM) CM has to ensure that all material, drawings and necessary documentation is ready to start the job.CM has to ensure coordination between all discipline engineers who will help for the timely and successful completion of anticipated activities.CM has to ensure that all necessary IDS and permits for the equipment access are arranged.4.2 QA/QC ManagerQA/QC manager shall confirm that the project quality plan to be incorporated, perform systematic monitoring and inspections. Coordinating with the anticipated discipline in case of non-conformance, ensure that all necessary inspection are carried out, and the results documented as per project requirements.4.3 Discipline Engineer (SI)It is the responsibility of discipline engineer to ensure that the job is performed according to the latest revision drawings, to inform any problems, mismatches discovered at field to the Construction Manager.Discipline engineer is responsible for incorporating all safety procedures, and work permit requirements.Discipline engineer has to coordinate the whole job between all other related departments towards the end of the activity.4.4 HSE OfficersHSE has to ensure that all works are done according to the project specific work permits and coordinate with discipline engineer. In case of any concern, explain the site crew with related job hazards. Systematically training and educating the site personnel to incorporate all safety rules and regulations of the project5 Material Handling5.1 Loading, Unloading and Transportation5.1.1 Pipes, fittings and prefabricated parts (spools) have to be transported by suitable trucks. These trucks must have flat floors. Check for and remove any projections or nails etc. before each load. Materials must be secured for example by using wedges and wooden supports, avoiding sharp edges. 5.1.2 Usually the materials are tied using pliable nylon or canvas slings. Chains or steel cables may not be used under any circumstances. Standard pipe lengths shall be picked up at two supporting points. Tag line will be tied to both ends of the pipe to guide the pipe safely. Small pipes that are bundled shall be offloaded in bundle but individually.5.1.3 The best way for fittings to be transported is in crates or onto pallets. Direct contact between products during transport must be avoided.5.1.4 Pipe ends and machined parts must be protected, for example, by means of straw mats covered by polyethylene sheet or polyethylene netting. 5.1.5 Any part of the truck has to be protected by wood or rubber wherever in contact with the products. If pipes are handled by a forklift truck, the forks must be covered with rubber or plastic.5.2 Handling and Storage5.2.1 In order to avoid damage to the stocked pipes, fittings and bends the following rules must be observed: a) Do not lay the pipes directly on the ground, onto rails or concrete floors. Provide a flat surface, i.e. compacted sand. b) Suitable supports shall be used for example wooden blanks. To avoid damage to pipe ends, stocking shall be undertaken with care.c) Pipe stacks shall have side supports or blocks to prevent rolling or slipping of the stack.d) Unprotected flange-faces shall never be placed directly on the ground or on concrete floors.f) Wrapping and coating materials shall be stored in original packing with caps inside containers/shade at temperature which is specified in the instruction of vendor.g) Glass-fiber materials will be stored in the container at ambient temperature covered with polythene sheets.h) The pipe accessories like the gaskets, bolts, nuts and others must be kept dry out of moisture and sunray.i) The pipe surface must be protected by using polyethylene or other suitable materials to avoid the pipes touch each other.j) Materials should be classified and stored in good condition5.3 Site Storage5.3.1 Distribution along the trenchIt is preferable to unload pipes alongside the trench directly from the truck. If the trench is opened, string out the opposite side to the excavated earth. Allow sufficient space between pipes and the trench for excavator, cranes, etc. Avoid placing the pipes where they can be damaged by traffic or blasting operations. Pipes shall be stored on soft level ground, timber bearers, or sand bags.5.3.2 Storing in stock pilesCare must be taken that the storage surface is levelled, firm, and clear of rocks or solid objects that might damage the pipes. If it is necessary to stack pipes, it is best to stack on flat timber supports.Wooden wedges, which are used in order to prevent the pipe stack from sliding, should be placed on both sides of the stack on the timber bearers.6 Pipe Fabrication6.1 General A part of the process pipes blasting cleaning and welding, pipe fittings and mating flanges may be prefabricated at fabrication area (workshop) instead of field welding, the other shall be fabricated on site. Before prefabrication, materials and fittings shall be carefully checked in order to identify quality, thickness, type and specification. Any deformed pipe fittings or damaged face of flange and valve shall be recorded and replaced; all unqualified materials shall be kept in the area clearly marked to avoid being misused for next time.6.2 Pipe Cutting6.2.1 Cutting of pipes may be done either by mechanical means or by flame cutting or plasma cutting when the following is taken into account6.2.2 For carbon steel, flame cutting and beveling is acceptable only if the cut is reasonably smooth and all oxides are removed from the surface by grinding to bright metal.6.2.3 For low and intermediate alloy steel, flame cut bevels are acceptable only if machining and water cutting is not feasible. After flame cutting approximately 2 mm of material shall be removed from surface of the bevel by grinding.6.2.4 For stainless steel and alloy pipe, flame cutting is not allowed but plasmamechanical grinding or water cutting may be applied, as end profiles of pipes and fitting to be butt-welded in accordance with WPS. Beveling is not required when a makeup length is provided pipes for socket weld joints shall be cut square.6.2.5 Marking shall be transferred on each section of the cut material. Clearly mark, check material quality, and the heat number which will be transferred to each cut material for traceability.

6.3 Beveling of the Edge6.3.1 Bevel shall be processed by machine or flame welding, scales shall be removed by grinder, and bevel angle shall meet WPS. Water, oil or other foreign materials shall be removed by wire brush or cotton waste before welding. X`6.4 Welding 6.4.1 For pipe alignment, the clearance and angle between bevels shall be done in accordance with WPS. Prior to aligning pipe, all paints, rust, dirt shall be removed before welding, small size pipe shall be purged by compressed air and large size pipe shall be cleaned by cotton or cloth, etc. Both ends of pipe shall be capped after cleaning, cutting and alignment.6.4.2 Spot welding and welding shall follow the requirements of WPS.6.4.3 After welding is completed, the surface of welds shall be cleaned and the slag must be removed.

6.4.4 Welding surface and geometric size shall comply with WPS.6.4.5 NDT shall be carried out according to NDT Procedure.6.5 Final Correction If final corrections cannot be avoided they shall be carried out as much as possible by re-welding .If corrections are required after fabrication they may be carried out by any suitable method before the PWHT work.7 Installation of Underground System7.1 Visual Inspection for Piping ComponentIt is important to inspect all the pipes and fittings or any components, which are to be used in the system prior to the assembling of joints. All pipes and fittings shall be visually inspected for damages that may have occurred during shipment. One hundred percent of the exterior surface shall be inspected visually including its internal surface where accessible. Damaged pipes, fittings shall not be used in the system. If the damages are reparable, repair work shall be carried out as per material specification and specified codes. However the criteria for repair cannot be specified as a general practice. The repair procedure shall be assessed and specified based on the condition and on a case to case basis.7.2 Trench Construction7.2.1 The civil subcontractor will open the trenches as per the civil works drawings. The trench dimensions should comply with the requirements specified in pipe installation specification.7.2.2 The pipe trench shall be smooth, regular and free from stones or any other hard objects, which may damage the pipe or cause stress concentrations.7.2.3 The surface of the bedding layer should be at the same elevation as the pipe invert level.7.3 Precondition of Piping Installation7.3.1 All civil works related to piping have to be checked and accepted by EMPLOYERS REPRESENTATIVE.7.3.2 Prior to installing, pipe and fittings shall be cleaned acceptable, and the records shall be completed as per QA ITP document.7.3.3 All equipment connected to be pipe by connecting flanges are aligned, secured and accepted.7.3.4 All valves and fittings have been checked and accepted. 7.4 Pipe Laying7.4.1 The pipes/spools will be laid according to the coordinates and the elevations specified in the approved isometric drawings.7.4.2 All pipes shall be carefully inspected for damage before installation. Damaged pipe / fittings shall not be used for erection until damage is repaired as per the approved procedure and repair accepted by responsible inspection parties.7.4.3 Each pipe, fittings or spools shall be internally blown out with air or otherwise manually cleaned to ensure inside is free from dust, dirt, sand etc. prior to lowering into the trench / support.7.5 Back Filling7.5.1 The surface of the bedding layer should be at the same elevation as the pipe invert level.7.5.2 The lines will first be released for partial backfilling. The joints will be NDT and coated and accepted by QA/QC. It is important that partial backfilling follows closely the pipe installation as covered pipes will not expand Due to thermal variations.7.5.3 After the successful completion of hydro test, CONTRACTOR will release the tested lines for complete backfill up to the grade level. The same release note will be used for the partial backfill release also.7.5.4 Backfilling shall be carried out in accordance with the procedures mentioned in pipe manufacturers installation manual and the procedure GB090-2614-250-CV-RP-0001 Underground Services Philosophy.8 Pre-Hydro-Test Requirements8.1 Testing Section The testing sections shall be divided compositely according to the grade of piping design requirements.8.2 Equipment8.2.1 General Requirement

Test equipment will be tested during the test operations shall be designed for a working pressure not less than the test pressure. These components shall have material certificates and the equipment shall have data sheets from the manufacturer. The test equipment shall be cleaned internally and shall be fit for service

All temporary connections fitted to enable the hydrostatic test to be performed shall be adequate to handle the test pressures involved and should be of rigid construction.The test equipment shall be adequately protected against lightning and accumulation of static electricity e.g. by earthing.8.2.3 Hydro Testing Equipments Centrifugal pump, discharging capacity 200m3/h, lifts 200m; Submersible pump, discharging capacity 100m3/h; Pressurizing pump: Plunger pump, 30MPa, discharging capacity 60m3/h; Mini type hydro testing pump; 8.2.4 Auxiliary EquipmentsThe major auxiliary equipments involved in the testing are as follows: Hydro Testing Cap Temporary piping and valves Portable tanks provide a continuous supply of water to the pump during pressurizing. Communication equipment suitable for a continuous connection between the beginning and the end of thetest section and with the inspection team along the line.

9 Hydrostatic Testing9.1 Process Chart

FailFailU/G piping Mechanical Completion / Lowering in pipe and backfilling Filling water & bleeding air and gas mixturesHydro strength testHydro tightness testDepressurization, Dewatering, FlushingDepressurization& searching for leaks, Defect repairingCleaningPressurizationThermal stabilizationFail

The hydrostatic test diagram shall indicate the test sections, profile of ground elevation along the pipeline, line pipe wall thickness and length of each test section, minimum test pressure and allowable equivalent pressure to create maximum 90% SPECIFIED MINIMUM YEILD STRESS at the highest and lowest point of test section and their relationship to the test point. The hydrostatic test diagram shall also indicate the location of fittings, valves, instrumentation, thermocouples, temporary test headers and other connection details including size and pressure rating. Location of the test point can be either at the start or end point of the test section.Each U/G piping system shall be hydrostatic tested separately in different section according to the different pressure classification. Final test sections will be defined by the pressure classification according to drawings approved by the EMPLOYER.9.2 Cleaning9.2.1 Cleaning of PipingRemove the possible contaminants and corrosion products during fabrication, assembly, storage, erection, and testing.Remove of contaminants to prevent sticking of valves or blockage of piping and small cavities such as to remove all mill scale, rust, sand, etc. by compressed clean air.

9.3 Testing MediumThe strength and tightness test use clean water as testing medium. Water resource can be obtained from the rivers nearby or by means of shifting water. In order to avoid foreign materials such as sand or soil from entering pipeline, settling pool shall be established. Besides, filter shall also be installed at the inlet of feeding pump.9.4 Testing Pressure9.4.1 Hydrostatic Test of Piping SystemThe hydrostatic test pressure segments with different pressure class will be isolated in a metallic piping system and they shall be tested separately according to the different pressure classifications according to Doc. No. GB090-2614-250-PR-DL-0002 FlUID LIST. The strength test shall not less than 1.5 times the design pressure as require in ASME 31.3.The pressure for tightness test equals to the design pressure of pipeline.9.4.2 Hydrostatic Test of Piping with Vessels as a SystemWhere the test pressure of piping attached to a vessel is the same as or less than the test pressure for the vessel, the piping may be tested with the vessel at the piping test pressure.(b) Where the test pressure of the piping exceeds the vessel test pressure, and it is not considered practicable to isolate the piping from the vessel, the piping and the vessel may be tested together at the vessel test pressure, provided the owner approves and the vessel test pressure is not less than 77% of the piping test pressure calculated in accordance with ASME B31.3 para. 345.4.2(b).9.5 Preparation for ConstructionThe strength and tightness test shall be done after the whole section has finished welding NDT, wrapping holiday test.Technical clarification must be updated to the personnel involved in the construction prior to the start of construction work.Prepare the equipments, materials and calibration certificates concerned for the hydro testing..9.6 Fabrication of Hydro Testing CapThe pressure testing cap mainly consists of pressure sealing cap, needle valve, valve, etc, as indicated in the following sketch.The pressure sealing cap used for pressure testing shall be in accordance to the safety requirements. After the hydro testing cap welding is finished, it shall go through NDT. Welding and testing of hydro testing cap and pressure pipe shall be performed according to the project documents concerned. The hydro testing cap shall perform pressure test at 1.5 times of design pressure prior to use. The hydro testing cap will be qualified if the pressure keeps steady for 4 hours without any leakage after the pressure reaches the level of testing pressure. The testing records shall be submitted to Supervisor or EMPLOYER representative prior to the activity of water feeding. For easy identification, all hydro testing caps shall be numbered, and the matching number shall be reflected on the pressure record.9.7 Strength TestConfirmation before increasing pressureBefore increasing pressure, the hydro testing technicians shall check and confirm the followings:The testing section has been isolated from other pipe sections.The testing pipeline has fully filled with water, air has been discharged completely.All the instruments and gauges used for testing have to be calibrated and the calibration certificates have been approved by Supervisor or EMPLOYER representative. All equipments and facilities are in good conditions for hydro testing. All warning notices, isolation belts, protecting barriers and other safety equipments are in correct position. The testing personnel involved has to be informed about the emergency procedures.After the installation is completed before start increasing pressure, operators shall check the equipments are in good conditions and functioning properly.Pressure shall be increased while Supervisor or EMPLOYER representative are present at site. The pressure will be increased at a constant rate while the pressure gauge connected to the hydro testing cap.The pressure shall be increased in accordance to the following procedures: Increase the pressure to 30% of the testing pressure, keep it steady for 30 minutes, check valves and all the connections for leakage then proceed to the next step if no leakage is observed. Increase the pressure to 60% of the testing pressure and keep it steady for 30 minutes, check valves and all the connections for leakage proceed with the next step if no leakage is observed. Pressure testing will be completed as indicated in the following sketch: The duration time of test shall in compliance with ASME 31.3.

120.50.530% Pstrength test60% Pstrength testTime (Hour)Pstrength testPtightness test4P

During the process of increasing pressure, if water quantity needed to increase the pressure by one unit is twice that of the former water quantity, pressure increasing should be stopped no matter the testing pressure has reached or not. Supervisor or EMPLOYERS REPRESENTATIVE shall analyze the causes together with the hydro testing engineer to find leakage points and repair accordingly.When pressure is getting close to the final testing pressure, operator shall watch the pressure indications constantly and shut down the pressure testing pump immediately when the pressure reaches 100% of testing pressure. In the pressure stabilization process, either water discharging or feeding shall be prohibited. 9.8 Tightness Test After strength test is completed, open the control valve slowly to discharge the testing water and drop the pressure to the level of tightness testing. When the required pressure is reached, close the control valve and remove pressure increasing equipments, keep the pressure steady for designed or required duration time to test the tightness. Water discharging or feeding shall not be allowed in this process.During the pressure stabilization, record the pressure indication every 30 minutes; in the rest of the time, record the pressure indication every 1 hour. Make pressure/time curve accordingly. Meanwhile, water temperature will also be recorded. If any leakage is found, pressure testing will be stopped immediately, Supervisor or EMPLOYER representative will discuss with the hydro testing engineer.9.9 Releasing Pressure After site hydro Supervisors accepted the hydro test qualified, the pressure shall be released in a certain speed to avoid any vibration. Special attention will be paid during pressure relieving. The water discharging valve shall be operated slowly to avoid water hammering load from the damaging pipes. The valves shall not be opened completely to release pressure. A certain positive pressure shall be maintained at the high point of the testing section.9.10 Hydro Testing RecordOnce all the above procedure have been successfully completed, a final hydrostatic test report shall be compiled including all relevant data, detailing each hydrostatic pressure test.A complete final hydrostatic test report signed by Contractor and the EMPLOYER shall be submitted upon completion of the hydrostatic test for each test section.9.11 ReinstatementAfter completion of testing, all system shall be reinstated as per drawings and specificationRemove of all temporary materials such as spades and blinds with gaskets and temporary supports used during erection and hydro testing etc.

10 Safety Requirements10.1 Safety (HSE PLAN)Subcontractor has to ensure that the job is executed safely and in accordance with Contractor work permit procedure. Permits should be obtained prior to the start of any activity. Subcontractor has to ensure that it has the necessary qualified personnel to obtain the required permit. The work permit receiver has to have full knowledge of the work execution mechanism of the related activity and hence obtain the proper permit. While doing cutting, grinding and laminating, the following personnel protection shall be used to avoid skin irritation and inhaling problemsa) Dust maskb) Safety glassesc) Hand glovesd) Coveralle) Safety Shoesf) Safety helmet The chemicals are potentially flammable. Resins and hardeners must be stored in a dry area away from direct sunlight and fire hazards. SMOKING is not allowed in all areas where lay ups are being made and fire extinguisher should be available near by the layup area. Follow any safety rules as strictly enforced on the end users and the client.10.2 SupervisionSite Representative shall be responsible for the execution of all activities at site.Supervisor shall be responsible for execution of the job.10.3 HSE RequirementsFollow the project procedures, HSE Plan.Proper communications must be available to the personnel working in the remote area.Adequate quantity of water is available at site.All employees are wearing proper PPE (Safety Helmets, goggles, working gloves, safety harness, face masks, safety shoes, ear plugs etc.).All equipments are fitted and safe to use.Check lifting gears are functional and suitable for hoisting operations.Pipes are located on support and secured properly.Fire extinguisher should be available at workplace.All electrical tools & equipment are in good conditions.Safe distance is maintained between the machine in overhead and underground services.Good housekeeping is implemented after the job is completed.Environmental policy adhered.Site kept clean & tidy after completion the work.