Presentation of ERA-CROSS

Group of Companies

2

TABLE OF CONTENTS 1. Presentation purpose

2. Structure and resources of the Group of Companies

3. Work experience

4. Occupational and industrial safety

5. Applicable Quality Management System

6. Construction arrangement and mobilization plan

7. Transport and communication means

8. Local resources

9. Temporary buildings and structures

10.Detailed description of construction activities

11. Interface management at construction

12.Arrangement of logistics and materials delivery

13.Works acceptance procedure

14.Appendices

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1. Objective of the Presentation

Using acquired experience in

implementation of major projects

under High North conditions

Applying advanced management

methods, technologies and own

resources

ERA CROSS Group of Companies is able to accomplish installation

and commissioning works on electrical devices and networks, low

current systems and automation systems in a timely and qualitative

manner!

To show that:

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2.1. Structure of ERA CROSS Group of Companies ERA CROSS Group of Companies incorporates a number of engineering, manufacturing, installation

and setup facilities forming an integrated organization specializing in implementation of major

projects in the oil and gas industrial sector of the Russian Federation.

ERA CROSS ENGINEERING

SZMA COMPANY

Engineering

SZMA Trust

UNITOK

Installation Setting-to-Work and

Commissioning

Leningrad Pilot Production Plant

ERA-CROSS ENERGIA

Production

Structure of Era Cross Group of Companies

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2.2. Resources Finances

As of year-end 2013, total revenue was 1.5

bln RUB.

1,5

2,3

3,1

0

1

2

3

4

2013г. 2014г. 2015г.(П) bln

RUB

Company's stock of orders is 2.3 bln RUB for

2014 and 3.1 bln RUB for 2015.

Human Resources

Regular staff of ERA CROSS Group of

Companies exceeds 1700.

ERA CROSS has branch offices in

industrial centers of the Russian Federation

and Belarus.

Facilities for manufacturing installation and cabinet products, warehouses

Administration and manufacturing building, offices

Construction machinery, mobile buildings and special tools

Specialized machining equipment and software

Metrology and electrical laboratory, pool of reference instruments

Non-Human Resources

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3. Work Experience in Similar Projects

* For implementation of Tobolsk project the company employed over 700 employees.

6

PROJECT CUSTOMER DESCRIPTION OF WORK YEAR

Baydaratskaya compressor

station

Yamal peninsula

Gazprom

Delivery, installation: Electrical control and instrumentation, electrical devices and power networks, electric heating, integrated security systems and communication systems

2014–2015

Crude distillation units, thermal cracking plants, atmospheric distillation units and other facilities, Ryazan oil refinery company (Ryazan)

Rosneft

Delivery, installation:

Automated process control systems, electrical control

and instrumentation, power supply system

2014

Propane dehydrogenation

unit, polypropylene plant

Tobolsk*

SIBUR Design, delivery, installation: Automated process control system, electrical control and instrumentation, electrical devices and power networks

2011–2013

Field wells, Phases 2 and

3, Kust 108 Kharyaga, Nenets Autonomous Okrug

TOTAL

Design, delivery, installation: Detailed documentation for connection of bottom hole pumps, electrical control and instrumentation, power supply system, integrated security systems and communication systems, heating and ventilation

2003–2013

Ice resistant platforms LSP-

1 and LSP-2, Astrakhan Lukoil

Design, delivery, installation:

Automated process control system, electrical control and

instrumentation, electrical devices and power networks

2008–2012

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4.1. HSE Measures General requirements to SUBCONTRACTOR'S management system:

Assuring safety, planning environmental protection measures, assessing and monitoring environmental impact Developing HSE programs Observing Project and Contractor's rules, requirements and procedures, applicable HSE regulations including general

rules (Project procedures, Contract) and Contractor's rules for specific on-site conditions

HSE management at construction site: To ensure effective HSE monitoring and management at construction site the SUBCONTRACTOR assigns a trained and certified leading engineer. Supervision over the employees is carried out by HSE engineers assigned on the basis of 1 engineer per 50 persons working at construction site.

Principal duties of HSE engineer: Consulting Participation in planning of safe work practices Inspection of work compliance with relevant project execution plans

(PEP), JSA and work authorizations Interruption of work in hazardous situations Condition monitoring of transport vehicles, electric tools, installation

equipment etc. Participation in briefings as a trainee or an instructor Participation in investigation of incidents as a member of the commission

Fitter's Personal Protective

Equipment

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4.2. HSE Measures

Falling from height Crushing Hit by a falling or flying object Burns or frostbite Electric shock trauma Occupational diseases

Potential

risks:

Waste

management: Trained and certified waste handling specialists Waste management plan, waste disposal, monitoring of waste transportation and disposal

Training:

General HSE induction briefing and special training Periodic assessment of knowledge and repeated briefing Instructions required for accomplishment of specific tasks

Preventive measures: Aimed at prevention of accidents Aimed at mitigation of consequences Equipment (grounding circuits, protective casings, fall protection harnesses, etc.) Procedures (vaccination, hoisting equipment inspection, interlocking and warning marking of

electric equipment) Providing all necessary personal protective equipment and checking correctness of its use and

storage Optional insurance of risks and damages to third parties

Risk

mitigation:

Work at heights

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5.1. Applicable Quality Management System

The Project management system is implemented by the SUBCONTRACTOR to achieve

the required level of quality and to ensure safety and reliability at all work phases (see

page 6).

Assigned employees are in personal charge of all management functions stated in the

organizational chart and of work results. A quality management representative

reporting to the Director General is assigned to ensure quality management

independence of line managers.

The companies making part of ERA CROSS Group of Companies has used the Quality Management System (QMS) since 2008. The ISO 9001:2008 certificate of QMS conformity covers the following activities:

ISO 9001:2008 Certificate

1. Designing and completing (packaged supply):

Automated control and emergency protection systems for various branches of

industry

Power supply systems, power equipment, electric lighting of industrial and civilian

facilities

Gas monitoring systems, fire detection, security and fire alarm systems, automatic

fire extinguishing systems

Dispatching, CCTV, communication, public address and other MEP systems of

buildings

2. Manufacturing (assembling) of low voltage packaged devices (cabinets, boards,

panels)

3. Construction, installation and commissioning work management, setting-to-work,

guarantee and service maintenance of electric equipment, power supply systems,

automated control systems, low current and other MEP systems

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5.2. Applicable Quality Management System

Periodic reporting to the CONTRACTOR includes:

Status of quality control inspections in accordance with Plan(s) of inspections and tests

Status of activities on non-conformity reports (categories A, B, C; number of revealed/remedied non-

conformities) issued by the CONTRACTOR;

Status of concession requests

Status of change requests

Progress of as-built documentation preparation

The SUBCONTRACTOR plans the project execution under controlled conditions including:

Availability of verified detailed documentation as well as standard technical documentation, project execution

plans and flow charts

Documented QMS procedures

Use of operable, calibrated equipment and accessories

Availability of certified specialists with appropriate qualification

Incoming inspection of equipment and materials, acceptance inspection of works performed

Monitoring and measurement of works performed

To perform the listed measures, the SUBCONTRACTOR uses self-developed procedures and organization

standards.

The SUBCONTRACTOR cooperates with and provides the possibility to inspect works performed and to audit the

QMS to CONTRACTOR'S auditors.

The SUBCONTRACTOR develops and agrees the Project Quality Assurance Plan with the CONTRACTOR. The plan

is to include the following:

Organization and resources necessary at the site, full names and qualifications (CV) of key personnel,

descriptions and lists of required equipment

Plans of inspections and tests for main works

For a preliminary Project Quality Assurance Plane, see Appendix 2 hereto.

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6.1. Construction Arrangement and Mobilization Plan List of services on the construction site

Construction management Interaction (interface) management Design estimates management Construction and installation works Storage and inspection of materials Logistical and unloading operations, customs

clearance Planning, promotion and expenditure control Quality assurance and quality control HSE management Commissioning and acceptance tests First aid treatment Construction and protection of temporary warehouses

and temporary buildings and structures

According to the site conditions, the SUBCONTRACTOR expects

board and lodging for its personnel in the construction camp of

the CONTRACTOR/CUSTOMER.

Delivery of the equipment, materials and wiring items, except

urgent orders, at the CONTRACTOR's specific request is not

provided.

Project Manager: interaction with the CONTRACTOR's

management, assignment of tasks, schedule and project

expenditure control, coordination of delivery and logistics.

Construction Manager: management of the

SUBCONTRACTOR's activity during the construction,

acting as a SUBCONTRACTOR's authorized

representative.

Quality Assurance/Quality Control Manager: quality

control of the installation and setup works carried out

by the SUBCONTRACTOR on the construction site.

Foreman: control of installation and setup works at the

given section(s) of the construction site.

Project Administrator/Secretary: record of

correspondence, as-built documents, keeping of time sheet

on the construction site.

Planning Manager: preparation of permits, PEP, periodic

reports and detailed work schedules.

HSE Leading Engineer: conductance of scheduled

briefings, inspection and monitoring of provisioning the

personnel departing to the construction site with overalls.

Procurement Manager: procurement, delivery and storage

of materials, overalls and tools on the construction site.

Foreman of the installation and blank section:

preparation of composite and large pre-assembled units as

per the drawings from the site.

Construction Management Functions

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6.2. Construction Arrangement and Mobilization Plan SUBCONTRACTOR's Preliminary Organizational Chart

Director General

Era-Cross Engineering

Company

Project Manager Customer's

Representative

Construction Manager

Quality Assurance/Quality Control Manager

Planning Manager Foremen

Procurement

Manager

HSE

Leading

Engineer

Cost Engineer

Planning Engineer

Work Control

Engineer

Foreman of the installation

and blank section

Equipment

Engineer

HSE

Engineer

Quality Control Engineer

Handover Documentation

Engineer

Administrator

Construction site

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Mobilization Plan

Monthly bar chart of the personnel efforts on the

example of the Tobolsk Polymer Project:

0

10

20

30

40

50

60

70

80

фев

.11

мар

.11

апр

.11

май

.11

ию

н.1

1

ию

л.1

1

авг.

11

сен

.11

окт

.11

но

я.1

1

дек

.11

янв.

12

фев

.12

мар

.12

апр

.12

май

.12

man

-ho

ur

(th

ou

san

d)

косвенные трудозатраты на скрытую часть работ кол-во трудозатрат рабочих специалистов -прямые общие трудозатраты трудозатраты специалистов субподрядчика нижней ступени

Perfo

rmance p

erio

d

The composition of the team that will work under a rotation system at each stage of construction depends on the scope and breakdown structure of works planned for the next period. The specialists will be sent to the construction site on 45/15 basis as per the schedule approved by the CONTRACTOR. Duration of stay and composition of the rotation shift will be specified a week before the specialists' departure.

6.3. Construction Arrangement and Mobilization Plan

indirect labour cost for concealed work

labour cost (workers)

total labour cost

labour cost (low level subcontractor’s specialists)

Feb.1

1

Mar.

11

Apr.

11

May.1

1

Jun.1

1

Jul.11

Aug.1

1

Sen.1

1

Oct.11

Nov.1

1

Dec.1

1

Jan.1

2

Feb.1

2

Mar.

12

Apr.

12

May.1

2

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List of Construction Machinery and Tools

Materials from the CONTRACTOR's warehouse will be

delivered on trucks. Own crane trucks with lifting capacity

of max. 25 t will be used for handling operations.

The same equipment will be used for installation of

transformers and switchgears as well as for installation of

cable reels on rollers and cable jacks.

Metal castings are prepared by welding at the fitting and

blank section.

Metrology and electrical laboratories are equipped with

instruments and test equipment.

Knock-down scaffolds will be used for installation of

equipment at heights and for mounting of cable trays from

trestles to input terminals of electrical receivers / local

equipment and modular equipment rooms.

6.4. Construction Arrangement and Mobilization Plan

No. Description Manufacturer, brand

1 Truck GAZ 2705

2 Truck GAZ 33023

3 Truck Hyundai 57HD02

4 Crane truck up to 25 t KAMAZ

5 TIG welding machine УДГ-161

6 Argon welding machine Picotig 170Lf

7 Welding rectifier Forsage-160

8 Set for gas cutting

9 Diesel power plant АСП Т180-5/220 ВЯ-С

10 Welding transformer TDM-303 (380 V)

11 Welding generator АСПДТ 200-6/220 ВЛ-С

12 Stationary diesel generator FG Wilson type Р200Н 200 kVA

13 Power meter (for fiber-optic cable) Rubin-201

14 Twin power supply (for fiber-optic cable) Rubin-103,-104

15 Set for installation of HV couplings Press, burner

16 Set of cable jacks ДК-2, ДК-5В

17 Sets of 16 m scaffold

18 Threader Ridgid

19 Wiring winch

20 Angle grinder Bosch

21 Hammer drill (drill) Bosch

22 Screwdriver Bosch

23 Lift Compact-10 h-10 m, 200 kg

24 Petrol pump

25 Certified electrical laboratory instruments Measurements and tests

26 Metrology laboratory instruments Measurement, calibration

27 Fan heaters

28 Living wagons

29 Scaffold tower ВТ-200 B, 10.2 m

30 Mobile temporary storage tents

31 Heated temporary storage warehouse

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7. Transport and Communication Means

The SUBCONTRACTOR will provide transport to deliver its personnel to the construction site and ensure warehouse

storage and lift-and-carry processing of equipment, materials and tools, which make part of the SUBCONTRACTOR's scope

of services.

The SUBCONTRACTOR will ensure compliance with the CONTRACTOR's requirements as regards transportation to the

construction site. Heated parkings will be arranged together with the vehicle service stations.

The SUBCONTRACTOR is responsible for all communication and telecommunication means and will bear the respective

expenses including installation, consumption, servicing, etc.

The SUBCONTRACTOR is absolutely responsible for receipt and sending its correspondence.

Transport and Communication Means

Equipment transportation

Personnel transportation

UHF real time communication means

Yamal 401 satellite channels used for

control

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8. Local Resources The SUBCONTRACTOR is a Russian company using local personnel and equipment and acting in full compliance with the requirements of the Russian laws and regulations. The company's headquarters is located in Saint Petersburg and branch offices are located in industrial centers of Russia and Belorus. The SUBCONTRACTOR can deliver the Russian equipment, construction materials, goods and services which meet the requirements of the specifications and are competitive as regards price, reliability and quality. Considering remoteness of the construction site, the list of the local resources (Saint Petersburg, Arkhangelsk, city of Novy Urengoy, Yamal peninsula) may include the following:

Furniture and office equipment Water, fuel, engine oils Food Rolled steel, steel structures Cement, crushed rocks, sand, lumber Welding electrodes and consumables Cars and buses, electric generators Hotels and transportation Mobile buildings for temporary buildings and

structures, tents Machines, special tools

Era-Cross Group of Companies

Headquarters

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9. Temporary Buildings and Structures The SUBCONTRACTOR will provide temporary buildings and structures to accommodate the construction management headquarters, erection crews, laboratories, workshops, warehouses, sanitary spaces on its own by start of mobilization according to the requirements and the construction schedule.

Demand for temporary buildings and

structures

The administrative buildings as well as warm up facilities, drinking points and portable toilets of the SUBCONTRACTOR will be located in mobile prefabricated premises on the construction site due to remoteness of the stationary office buildings and climatic conditions.

Demand for storage areas

The dimensions of the storage areas and warehouses are calculated based on the weight of metal structures, equipment and materials. (For the calculation method, see Appendix No. 1 – Preliminary Construction Plan)

Water and power supply

Temporary drinking water supply is provided in temporary buildings and structures. Hot water is provided by electric boilers placed indoors. General demand for drinking water depends on the personnel capacity and

working conditions. (For the calculation method, see Appendix No. 1 –Preliminary Construction Plan)

Temporary buildings and structures are heated by electric heaters. The total capacity of heaters is determined for the maximum personnel capacity on the construction site. (For the calculation method, see Appendix No. 1 – Preliminary Construction Plan)

Water disposal Water is disposed of from the temporary buildings and structures by buried

sewage pumping stations. Demand of the temporary buildings and structures for water disposal is determined by parameters of the respective water supply systems.

First aid room The SUBCONTRACTOR will equip the first aid room on the territory of the temporary buildings and structures according to the SUBCONTRACTOR's Occupational Safety and Medical Care Plan for the Construction Site.

Special-purpose tent for electric

works

Installation of temporary sanitary

spaces

For the total area and specifications of temporary buildings and structures, see Appendix No. 3

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10.1. Detailed Construction Activity Description

1. Prior to commencement of works on construction site:

а) The Authorization Certificate is to be drawn up as per the form of the

Building Code SNiP 12-03-2001 with the list of measures ensuring work

safety. The Authorization Certificate determines the following:

SUBCONTRACTOR's work zones, places for warehousing of

materials and arrangement of machines and mechanisms

Boundaries and types of railing for the work zone

Entry/exit points to/from the work zone

Presence of dangerous and harmful factors in the work zone

b) Materials are to be delivered to the SUBCONTRACTOR’s warehouses.

Workshops, stations and warehouses are brought to the operating state.

Machines and special tools are prepared for operation.

2. The SUBCONTRACTOR accepts the equipment to be installed and

equipment delivered by the CONTRACTOR and performs the incoming

quality inspection (see page 13).

3. Induction briefing on Health, Safety & Environment (HSE) and initial

briefing on work safety are carried out.

4. All the SUBCONTRACTOR's workers admitted to work on the Project

objects are to be instructed on PEP and flow charts.

Construction Commencement Procedure

Installation Works on the Site

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Installation methods All installation works are carried out in accordance with PEP and flow charts for separate operations.

Flow charts cover the following:

• Step-by-step execution of installation and preparatory operations

• List of special tools and appliances for each operation

• Installation work quality control techniques, safety precautions, etc.

(For the List of flow charts on electric installation works, see the Appendix)

Electric Installation Work Procedure

Work type Work procedure

Preparatory operations

To be carried out in parallel with construction works when completed. Preparatory

operations include the following:

- Accepting spaces and structures for installation

- Providing the equipment for installation zones

- Taking HSE measures

Acceptance of buildings

and structures for

installation

The CONTRACTOR shall ensure:

- Roads for delivery of materials and structures to the installation zone

- Power networks for work execution

- Sanitary fittings

- Fire access roads and necessary fire extinguishing means

- Temporary electric lighting of installation zones

- Check of embedded parts, holes and installation openings

10.2. Detailed Construction Activity Description

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Work type Work procedure

Acceptance of the

equipment for further

installation and

preparation of installation

zones

Inspection of electrical equipment to be forwarded for installation by the SUBCONTRACTOR Remedy of defects by the CONTRACTOR Delivery of big-sized equipment to the installation zone as per the work schedule by the

SUBCONTRACTOR Delivery of containers with items and materials to the installation zone as per the work schedules Incoming inspection of accompanying documents Incoming inspection of containers, packages, external damages, marking, completeness

First and second stage

operations of construction

and installation works

Electric installation works are carried out in two stages:

1. Installation of support structures for electrical equipment, cables and wires, installation of wiring

tubes and installation of grounding networks. The works are carried out as per the combined

schedule with general construction works

2. Installation of electrical equipment, laying of cables and wires, connection of cables and wires to

leads of electrical equipment. In electrical rooms of the facility the works of the second stage are

carried out upon completion of general construction and finishing works or installation of process

equipment, electric motors, etc.

Installation works To be carried out after acceptance of rooms for installation.

Installation of pipelines

Holes and embedded parts to be checked for compliance with drawings The ends of tubes running to boards and floor-mounted cabinets are to rise to a height of 100 mm

from the finish floor level, in all other cases, unless otherwise specified in the drawings, to a height of 200 mm. Penetrations are to be protected with sleeves.

Installation of cable structures, boxes and chutes

Cable structures are installed in accordance with flow chart No.3.

10.3. Detailed Construction Activity Description

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Work type Work procedure

Installation of control

boards, units and stand-

alone equipment

Power cabinets and stand-alone equipment are installed in accordance with flow chart No. 1.

Cable laying

The cables are to be laid in strict compliance with the project and flow chart No. 4 for installation

of power and control cables.

Installation of lights

Positions of lights are to be checked by height and linearity Electrical equipment is to be installed at a height from the floor level: switches: 1.5 m;

transformers ЯТП: 1.2 m; sockets: 0.8 m; boards: 1.8 m (board top).

(Installed lighting equipment is accepted stepwise)

Installation of grounding

Grounding lines are installed in accordance with requirements of the flow chart for grounding of

installations

Internal grounding contours (metal wiring chutes, etc.) are connected to grounding devices in at

least 2 points.

10.4. Detailed Construction Activity Description

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Risk Assessment of Installation Works In accordance with the Labour Code of the Russian Federation and the Federal Law No. 421-ФЗ the employer at his

own expense shall assess the working conditions of the workplaces and then certify the same, including the

construction site.

Assessment certificate shall be drawn up for each group of workplaces of similar operations and working conditions.

This certificate outlines dangerous and harmful production factors forming the working conditions on the given

workplace in accordance with the Building Code SNiP 12-04-2002.

When taking into account the dangerous and harmful production factors, the extent of their hazard is estimated with

consideration of their probability and severity as per paras. 4.8 to 4.9 of the Building Code SNiP 12-03-2001.

To assess the workplace for compliance with state normative requirements, the following is taken into consideration:

а) Extent of preparation of the construction site and workplaces for safe execution of works

To be ensured on the basis of solutions contained in the organizational and process documentation, construction

method statement and PEP meeting the requirements of Para. 4.18 of the Building Code SNiP 12-03-2001 and Code of

Practice SP 12-136.2002.

b) Protection of workers on the workplace against dangerous and harmful production factors, including the ones

attributed to workplace location

Guard railing is the most widespread type of collective protection of workers. The use of the safety belt for builders as

per GOST R 50849-96* is allowed provided that an appropriate work permit is available (Para. 6.2.18)

c) Fitness of the workplace for the work to be carried out: Workplace dimensions; availability of access to the workplace

and escape route in case of emergency; availability of scaffolds in the work zones; correspondence of machines,

equipment and tools to the working conditions; compliance of the system for feeding and storing materials and

structures on the workplace with the requirements of labour safety; availability of lighting and ventilation.

The probability of affect of these dangerous factors on the workers depends on efficiency of safety precautions taken

which is characterized by reliability of used protection means. To increase the efficiency of safety precautions, the use

is made of technical facilities, which ensure a more reliable response than occupational safety precautions taken by the

personnel.

10.5. Detailed Construction Activity Description

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1. Use of handling equipment with the cable linkage

and heating of the main hydraulic actuator

2. Use of only electrically driven tools

3. Use of self-propelled hoist for work on trestles

4. Storm securing of hoisting equipment on anchor

lines

5. Guard rails on trestles to secure workers' safety

belts

6. Periodic heating of cabling and wiring products prior

to installation in electrically heated boxes

7. Electrically heated boxes for heating the personnel

(e.g., for 15 min per hour)

8. Laying of cable in shelters (enclosures)

9. Transportation of the personnel in heated crew

buses

10. Electrically heated shelters for cable termination in

cabinets

11. Reserve power supply (diesel-generators)

Installation specifics under Arctic conditions

Winterized boxes, tents

for work in freezing weather

Overalls for work in freezing weather

10.6. Detailed Construction Activity Description

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11. Interface Management on Construction Site

Coordination with the Headquarters

The SUBCONTRACTOR will appoint the Headquarters specialists who participated in preparation of tender offers for contract works, construction procedures, construction plans, PEP, etc. to the key construction management positions.

Information Infrastructure and IT

The CONTRACTOR will use the following IT on the construction site to enable effective management and reaching the Project objectives: HSE database Quality control database to check the state of requests for inspection (RFI) Detailed documentation (in “for construction” revision), suppliers' documentation, correspondence Software for monitoring project progress, etc.

Management of Modifications

The SUBCONTRACTOR shall assign a field engineer or other representative responsible for receiving, recording, storage and transfer “in production” of updated drawings making part of detailed documentation. The CONTRACTOR shall forward the modifications along with the accompanying letter to the attention of the project manager or the SUBCONTRACTOR's representative under the contract. The SUBCONTRACTOR representative shall promptly organize the study of modifications and determine the results of such modification in the schedule and cost of works. The Construction Manager shall receive instructions of the CONTRACTOR's representative on the construction site to suspend the operations and inform the Headquarters of the consequences of such decision and modifications. The procedure of modification introduction is described in the corresponding contract clauses. In any case the Construction Manager shall receive the instructions of the SUBCONTRACTOR's Project Manager prior to any actions on work suspension or modification introduction.

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12.1. Logistics and materials delivery The transportation routes are selected based on reliability, operational efficiency

and cost-effectiveness of cargo transportation

Primary route:

Route advantages:

Year-round transportation via the shortest Northern Sea Route approx. 2000 km long

Reduced transportation time and costs (no payment for vessel passage, queues, risk of

pirate assault)

No vessel size limitations

From Saint Petersburg station – Bovanenkovo station – Sabetta port. By railway from

Saint Petersburg station – Obskaya (Labytnangi) station – Bovanenkovo station,

2600 km. Then by motor transport via “winter road” from January till April, or by water

from June till September.

Personnel transportation and delivery of priority cargoes by air transport to Vorkuta

or Novy Urengoy airport and then by chartered helicopter to the destination point.

2. The major transportation is by railway from Saint Petersburg station to Arkhangelsk

station and then further by the Northern Sea Route from Arkhangelsk port to Sabetta

port.

1. The cargo to be transported is prepared for container or carload shipment at the

SUBCONTRACTOR’s warehouse on the territory of the Leningrad Pilot Production

Plant.

Alternative route:

4 to 6 weeks

6 to 8 weeks

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12.2. Logistics and materials delivery

Logistics and materials delivery scheme for YAMAL LNG Project

Saint Petersburg

Arkhangelsk

Labytnangi

Novy Urengoy

Sabetta

Bovanenkovo

3000 km

3200 km

1100 km

Northern Sea Route 1900 km

1100 km 1000 km 800 km

570 km

Rail transportation

River / sea

Road

Air

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13. Delivery/Acceptance Procedure

Acceptance of the construction and technological readiness of the facility for installation

The CONTRACTOR (as per Building Code SNiP 12-01-2004) informs the SUBCONTRACTOR's Construction Manager of the facility readiness for installation. The foreman in charge of installation work in the given area shall muster the facility and accept it as per the certificate (arbitrary form).

Acceptance of equipment and documentation

The SUBCONTRACTOR's Construction Manager organizes: Incoming inspection of the equipment, items and materials received from suppliers Check of accompanying documentation for compliance with GOST 24444-87, availability of

manufacturers' datasheets and certificates and conformity certificates (for import products) Check of validity of suppliers guarantees, data on individual tests and completeness Pre-installation check of instrumentation Storage of products in accordance with requirements of manufacturers; logbooks, datasheets,

operating and other technical documentation for the received products.

In-process acceptance of works The stages of installation works execution are stipulated by the Contract, detailed documentation, specifications, PEP and flow charts

Installation delivery-acceptance

Upon completion of installation at the facility the special certificate is drawn up and the production documentation is handed over to the CONTRACTOR. The production documentation is handed over in copy. The composition of production documentation is determined by normative documents (by types of installed systems) specified in the Building Code (SNiP).

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Thank you for your

attention!

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14. APPENDICES:

No. 2 Quality Assurance Plan

No. 1 Construction Plan

No. 3 Total Occupied Area and Characteristics of Temporary Buildings and Structures