MECHANICAL COMPLETION DOCUMENTS

HANDLING PROCEDURE

PROYEK :

PEMILIK PROYEK

:

LOKASI :

NO. DOKUMEN PERTAMINA

:

NO. DOKUMEN KONSORSIUM

:

NO. KONTRAK :

0 Issued for Approval ‘12-Jan-10 EM IMR

REV Description Date Prep Check App. Client App.

LEMBARAN CATATAN REVISI (REVISION SHEET)

REV No. DATE DESCIPTION

0 12/01/10 Issued for Approval

CONTENTS

No. Description Page No.

1 SCOPE

2 FINAL CONSTRUCTION STAGE

2.1 2.1 Mechanical Completion Package

2.2 2.2 Punch List

3 MECHANICAL COMPLETION

3.1 Notice of mechanical completion

3.2 Exception List

3.3 Notice for Confirmation of Mechanical Completion

4 REMAINING TURN-OVER DOCUMENTATION AND PROCEDURES

5 TURN-OVER OF PART/MATERIAL/EQUIPMENT/TOOL/KEYS ETC.

6 SCHEDULE

7 ATTACHEMENT

Attachment - 1 Mechanical Completion Package

Attachment - 2 Punch List

Attachment – 3 Overall Mechanical Completion Check List

Attachment - 4 Notice of Mechanical Completion

Attachment – 5 Exception List

Attachment – 6 Mechanical Completion Acceptance Procedure

Attachment – 7 Turn-over Material/ Part List

Attachment - 8 Mechanical Completion Package Tentative Schedule

1. SCOPE

This procedure cover the final construction stage through the issueance by Pertamina

of the official notice of confirmation of Mechanical Completion in accordance with the

requirement of Article 11, Section 11.1 of the Agreement for EPC Project

“Peningkatan Fleksibilitas Operasionl Naphtha Processing Unit” (hereinafter called –

PFNPU), RU-VI Balongan for PT. Pertamina (Persero) at Balongan, Indramayu, West

Java.

2. FINAL CONSTRUCTION STAGE

2.1. Mechanical Completion Package

Approximtely 2 or 3 week prior to anticipate respective Mechanical Completion date a Mechanical Completion Package will be issued by Konsorsium KE-SBS to PERTAMINA with a duplicate copy being issued directly. The packages and the respective sub-areas/sub-systems are indicated in Attachment No. 1. The content of each packagae shall generally be in accordance with the requirement of Section PGG-PG-A-006.

2.2. Punch Lists

Using the information contained in the Mechanical Completion Packages, Konsorsium KE-SBS shall prepare Punch Lists for each of the relevant packages. These Punch Lists shall generally be of the format indicated in Attachment No. 2. In addition to listing construction defects and deficiencies the Punch Lists will also be used to list any deviations from the requirement of the “Overall Mechanical Completion Check List’ set forth in Attachment No. 3.

The Punch Lists will indicate the current category of each item, A or B.

- Category “A” items are to be cleared before Mechanical Completion.

- Category “B”item should be cleared if possible prior to Operation Acceptance, otherwise before Final Acceptance.

3. MECHANICAL COMPLETION

3.1. Notice of Mechanical Completion

Konsorsium KE-SBS shall progressively perform corrective measures to remove the Punch List item until such time that only “B” category items remain.

At this time, but not later than 15 days prior to the anticipated date of Mechanical Completion, Konsorsium K-SBS shall, in accordance with the requirements of Article 11. Section 11.1.2 of Agreement, officially notify Pertamina that Konsorsium KE-SBS believes that the relative Mechanical Completion Packages (Discrete Units) are complete.

The notification will be in the format of the letter Attachment No. 4 and may be submitted with and ‘Exception List’ for all outstanding items.

3.2. Exception List

The Exception List will be in the format of Attachment No. 5. The exceptions will be basically consist of Category ‘B’ items remaining from the respective ‘Punch List’ plus any other items (defect and deficiencies) subsequently discovered. The Exception Lists shall include the Scheduled date for the completion of each item, the acceptance of which by Pertamina shll be a prior condition to the granting of Mechanical Completion. The exceptions shall only be considered acceptable if the following criteria are met.

(1) The items do not affect plant safety/reliability/capacity/efficiency.

(2) The item can and will be safety completed prior to Final Acceptance of project works, subject to provision of free and unrestricted access and availability of the facilities in convenient conditions.

Should Pertamina identify items on the submitted Exception List that Pertamina Consider are not legitimate and do not comply with the above qualifying criteria, such item shall be considered Defects and Deficiencies which required completing before Mechanical Completion and shall be treated in accordance with the procedure indicated in Section 2.1.3 of Procedure PGG-PG-A-005 and as further illustrated by Attachment No. 6 hereto.

3.3. Notice of Confirmation of Mechanical Completion

Pertamina shall issue a notice confirmation of Mechanical Completion within 15 days after the relevant facilities are mechanically complete. The date of Mechanical Completion indicated on this notice will reflect the actual date of such Mechanical Completion. Attached to this notice may be an approved exception list indicating any items which can be completed after the date of Mechanical Completion and the scheduled date for their completion.

4. REMAINING TURN-OVER DOCUMENTATION AND POCEDURES

The documentations and procedures to be used for the remaining phases of the turn-over of the project works, namely :

- Mechanical Completion of the facilities as a whole

- Operation Acceptance

- Final Acceptance of the Work

Shall all be in accordance with the requirement of PGG-PG-A-006.

5. REMAINING TURN-OVER DOCUMENTATION AND POCEDURES

Any items such as Part, Material, Equipment, Tool, Keys, etc. which are to be turned over to Pertamina as separate items shall be turned over to Pertamina before Mechanical Completion using the document Attachment No. 7 hereto.

6. SCHEDULE

The current schedule of the anticipated Mechanical Completion date is indicate in Attachment No. 8 of this procedure. It is understood that this schedule is tentative and that changes may be necessary and that changes may be necessary as a result of changes in the relevant in schedule and operational requirements.

If such change in schedule become necessary then discussions will be held between Konsorsium KE-SBS and PERTAMINA to determine a mutually acceptable course of action based on the interest of the turn-over effort.

MECHANICAL COMPLETION ACCEPTANCE PROCEDURE (flow chart)

CONTRACTOR ACTION PERTAMINA ACTION

APPLICATION

Mechanical Completion of each package applied for

+Punch List Advised

CORRECTION

Defects and Deficiencies attended to.

VERIFICATION

Application considered d shall be accepted, with each package being automatically deemed

approved and mechanically complete unless refusal is confirmed with defects and deficiencies being officially advised within 15 days of the initial or 7 days of all subsequent applications that may be

made.

REFUSAL

Defects and Deficiencies shall be officially advised within 15

or 7 days as above

APPROVAL

Unless previously recognized, each package shall be accepted and deemed

mechanically complete as of the 15th or 7th

days following application, subject to the above condition.

PLANNING

Exceptions list updated, rescheduling for completion

and advised officially

CONFIRMATION

Mechanical Completion of each package shall be officially confirmed with a

notice issued within 15 days of it being deemed accepted and approved

OVERALL MECHANICAL COMPLETION

Mechanical Completion at al package achieved and a notice shall be issued for the facilities as

a whole, on or before Feb. 9th 2010 and coincident with the confirmation issued for the

last of the package-Milesone no.8.