Sakhalin Energy Investment Company, Ltd. Controlled Document

(Template rev 6)

P1 P Issued for Comments E. McCourt

C. Brummelkamp

C. Mustoe (SEIC) 01 Issued for Design E. McCourt

C. Brummelkamp

This document contains proprietary information and is intended for use by Sakhalin Energy Investment Company, Ltd. (SEIC) authorised personnel or companies only. The copyright of this document is vested in SEIC. All rights reserved. The contents of this controlled document shall not be altered without formal approval of the document Custodian.

Sakhalin II Phase II Project Facilities Design

Project

Origin

Module

Discipline

Doc Type

Doc No.

Sheet No.

Rev No.

1000 S

90 01 S 0017

00 01

Document Number:

Title:

SPECIFICATION FOR

SPARE PARTS INTERCHANGEABILITY RECORDS (SPIR)

Custodian: Chris Mustoe (SEIC) P Preliminary – For Comment/Information Issue Purpose AFD Approved for Design AFC Approved for Construction T TEOC Approval Document

Originator: Name (Company) Signature

Checked by: Name (Company) Signature Rev Issue

Purpose Description

Approved by: Name (Company) Signature

Date

C. Mustoe (SEIC)

1000-S-90-01-S-0017-00-01.tif

SPECIFICATION FOR SPARE PARTS

Rev 01

Document No. 1000-S-90-01-S-0017-00 Page 2 of 6

REVISION CHANGE DETAILS

Rev

Location of Change

Brief Description of Change

SPECIFICATION FOR SPARE PARTS

Rev 01

Document No. 1000-S-90-01-S-0017-00 Page 3 of 6

TABLE OF CONTENTS

1 INTRODUCTION ................................................................................................ 4 1.1 PURPOSE ......................................................................................................... 4 1.2 DISTRIBUTION AND INTENDED USE ................................................................ 4 1.3 DEFINITIONS .................................................................................................... 4 1.4 ABBREVIATIONS............................................................................................... 4

2 SCOPE OF SUPPLY.......................................................................................... 5 2.1 GENERAL ......................................................................................................... 5 2.2 COMMISSIONING SPARE PARTS ..................................................................... 5 2.3 INITIAL SPARE PARTS ...................................................................................... 5 2.4 SPARE PARTS FOR NORMAL OPERATION ...................................................... 6 2.5 INSURANCE SPARE PARTS ............................................................................. 6

SPECIFICATION FOR SPARE PARTS

Rev 01

Document No. 1000-S-90-01-S-0017-00 Page 4 of 6

1 INTRODUCTION

1.1 PURPOSE

This document defines the minimum technical requirements for spare parts for onshore and offshore production facilities to be operated by Sakhalin Energy Investment Company, Ltd (SEIC).

The Supplier’s bid proposal submissions shall include sufficient spare parts data to allow the equipment to be evaluated against the Project requirements and the Total Cost of Ownership to be incurred.

1.2 DISTRIBUTION AND INTENDED USE

Unless otherwise authorised by SEIC, the distribution of this document is confined to the nominated Contractors and Suppliers.

1.3 DEFINITIONS

1.3.1 General definitions

The Contractor is the party, which carries out all or part of the design, engineering, procurement, construction, commissioning or management of a project or operation/maintenance of a facility. The Principal may undertake all or part of the duties of the Contractor.

The Supplier/Manufacturer is the party, which manufactures or supplies equipment and services to perform the duties specified by the Contractor.

The Principal is Sakhalin Energy Investment Company, Ltd. (SEIC) - the party, which initiates the project and ultimately pays for its design and construction. The Principal will generally specify the technical requirements. The Principal may also include an agent or consultant authorised to act for, and on behalf of, the Principal.

The Purchaser is the party, which buys the equipment and its auxiliaries for its own use or as an agent for the Principal. The Purchaser may either be the Principal or the Contractor.

The term Vendor shall be considered to be synonymous with the term Manufacturer or Supplier as defined above.

The word shall indicates a requirement.

The word should indicates a recommendation.

1.3.2 Specific definitions

Commissioning Spares - All spare parts and consumables required for Construction, Pre-Commissioning, and Commissioning.

Initial Spares - All spare parts to safeguard the operation and equipment for a period of one year after Commissioning (alternatively known as First Year Spares).

Normal Operation Spares - All spare parts required to cover adequately, the day-to-day maintenance of equipment following the first year of operation.

Insurance Spares - Insurance spares are those parts of equipment, equipment assemblies or complete items of equipment that are required for replacement of items not subject to deterioration by normal use but failure of which is critical for long term availability of the plant.

1.4 ABBREVIATIONS

SPIR- Spare Parts and Interchangeability Record

SPECIFICATION FOR SPARE PARTS

Rev 01

Document No. 1000-S-90-01-S-0017-00 Page 5 of 6

2 SCOPE OF SUPPLY The Supplier shall have single point responsibility for all aspects of the provision of spare parts, spare parts data and spare parts documentation, inclusive of all components sub-contracted or purchased from other parties.

2.1 GENERAL

Vendor shall complete the Electronic Spare Parts and Interchangeability Records (E -SPIR 2000). Software to be used for preparation of E-SPIR's and further instructions for the completion of the electronic spare parts is available for the vendor on internet: www.e-spir.shell.com. The program can be downloaded free of charge.

E-SPIR can be transferred electronically between Vendor and Contractor. E-SPIR data can be exported for data upload in other systems as and where required, subject to appropriate conversion if necessary.

The supplier’s module of E-SPIR 2000 shall be used by the Vendors to complete the E-SPIR with their recommendations.

By using the E-SPIR, the spare parts data shall be submitted by Vendor in a standard format, which will support the process of reviewing, selecting and ordering spare parts. The E-SPIR Advisor program will collect all spare parts for equipment supplied in a common database, whereby possible interchangeability of equipment can be assessed.

Spare parts shall meet the same technical specifications and quality requirements as applicable to materials covered by the relevant Purchase Order.

2.2 COMMISSIONING SPARE PARTS

Commissioning spare parts are parts required to cover Vendor responsibility up to the completion of equipment commissioning. Vendor shall define, supply, and transport to site all commissioning spare parts.

2.3 INITIAL SPARE PARTS

The actual and directly related cost of the Purchase Orders for initial spare parts is not part of the Vendor scope of supply. For initial spare parts, the following steps shall be taken:

Vendor shall ensure that the appropriate part of the E-SPIR form (refer to instruction given in www.e-spir.shell.com) is completed. Vendor shall ensure that a priced list and documentation of spare parts recommended for initial operation, as well as for normal operations are sent to Contractor. The documentation shall include all drawings referenced on the E-SPIR.

Vendor shall ensure that the recommendation also includes spares for materials bought from sub vendors, such as auxiliary equipment and accessories. For this type of equipment the SPIR form shall show the original data of the manufacturer including original equipment manufacturer part numbers and drawing references. Vendor shall complete his part of the SPIR form, by determining his proposed quantities.

Vendor shall submit to Contractor the duly completed SPIR form, showing quantities proposed by Vendor in col. 13/15 for Contractor review.

Principal’s consent is required for the finalised E-SPIR form, which shall show the quantities of initial spare parts required, taking into account any interchangeability between equipment and shall include coding of the listed spare parts.

Upon receipt of Company consent, Contractor shall place a Purchase Order for and on behalf of Principal for initial spares with Vendor or his sub-vendor(s). If Contractor procures spare parts from the Original Equipment Manufacturer the Suppliers warrantee shall not be effected.

SPECIFICATION FOR SPARE PARTS

Rev 01

Document No. 1000-S-90-01-S-0017-00 Page 6 of 6

Initial spare parts shall be packed separate from the main order. Each item shall be durably marked with the Purchase Order, applicable code number and spare parts identification numbers.

2.4 SPARE PARTS FOR NORMAL OPERATION

For normal operation (beyond the first year of operation) spare parts Vendor shall evaluate and present to Company the recommendations and listing of slow wearing and consumable parts and the supply of relevant cross-sectional drawings or exploded views complete with relevant parts list and detailed spare parts lists.

2.5 INSURANCE SPARE PARTS

Where required Insurance spare parts shall be supplied by Vendor as part of the relevant main Purchase Order and shall be delivered to the Site prior to the relevant unit mechanical completion.