PETROVIETNAM MARINE SHIPYARD al MOBILE SELF-ELEVATING DRILLING RIG PROJECT. (Goontrotied Copy 17 tt note PYAES Cup @XOO1 Pra inoooooooooc00 b [eee eee sees [- (H) MOC Approved | 15-1 ay Rew ] [Revise for approval | Obdea yg =| | 08/07/09 | Issue for approval This procedure is the property of PVMS C the consent of the Managing Director or Management Representative. Rev. | Issue 7a Prepared Checked Approved | Objective | No. | Date PVMS | : : i Total page: 17 Document No.: GiK001-GE-PP-003 | (including cover page) Notes: ‘ompany. It shall not be copied in whole or part withoutGK001-GE-PP-003 7 16/11/2009 TABLE OF CONTENTS 1.0 PURPOSE 2.0 SCOPE.. 3.0 REFERENCES 4.0 DEFINITION 5.0 PROCEDUR!I 5.1 Quality Policy. 5.2 General Project Information 5.3. Correspondence/Communication 5.4 Control of the Project Quality Plan 5.5. Manpower / Organization Chart... 5.6 Responsibilities and Roles of Key Personnel 5.7 Contract Review .. 5.8 Design Control... 5.9 Document and Data Control. 5.10 Procurement. 5.11 Material Acceptance/ Receiving Inspection . 5.12 Material Handling, Storage, Packing, Preservation And Delivery. 5.13 Material Identification & oa 5.14 Process Control ... 5.15 Inspection And Testing... 5.16 Control of Inspection, Measuring And Test Equipment 5.17 Inspection And Test Status . 5.18 Control of Non-Conforming Product.. 5.19 Corrective and Preventative Actions . 5.20 Control of Quality Records 5.21 Internal Quality Audit 5.22 Safety 5.23 Training 5.24 Statistical Reports. 5.25 Serving / Warranty... 5.26 Final Documentation / Project Quality Record. 5.27 PBB’s Supplied Materials / Equipment. 5.28 QA Programmed... 6.0 SPECIAL REQUIREMENT 7,0 RECORDS.. 8.0 LIST OF QA/QC FO) were e IIIb ARAL Rev: Page 1 of 16GKO01-GE-PP-003 16/11/2009 1.0 PURPOSE This procedure describes PVMS’s practice and specific quality programs in achieving quality standard of NEW BUILDING OF A 60M WATER DEPTH OFFSHORE MOBILE SELF-ELEVATING DRILLING RIG PROJECT as to meet PYN’s requirements. 2.0 SCOPE The procedure covers all the activities related to the works during Design, Procurement, Fabrication and Commissioning until the project delivery. It covers all discipline of administrative and productive works. 3.0 REFERENCES Quality Manual (STCL/CTGK) 4.0 DEFINITION PVN - Vietnam National Oil and Gas Group. PBB - PetroVietnam Drilling Platform Building Board PVMS _ - PetroVietnam Marine Shipyard Company POP - Project Quality Plan QA - Quality Assurance ac - Quality Control Qus ~ Quality Management System QMR - Quality Management Representative NDT - Non Destructive Testing ITP - Inspection and Test Plan WPQT _ - Welding Procedure Qualification Test wot - Welder Qualification Test EDMS _ - Electronic Data Management System PDMS __ - Plan, Design and Management System JSA - Job Safety Analysis NCR - Non Conformance Report Rev: 1 Page 2 of 16GK00I-GE-PP-003 : 1G/1 1/2009 5.0 PROCEDURE 5.1 Quality Policy Being established by industry leading groups in Vietnam including VIETNAM NATIONAL OIL & GAS GROUP, LILAMA, VINASHIN and 5.2 BIDV, PetroVietnam Marine Shipyard Company is to implement and accomplish the long term strategy of Vietnamese Government in developing rig building industry in Vietnam with Quality up to international standard. Quality statement: “Prestige - Quality - Efficiency” PETROVIETNAM MARINE SHIPYARD COMPANY commits > v ‘To Clients: To fulfill our client’s demands and expectations with high and consistently improving quality products and services. To Employees: e To train, to retrain the employees to master industry technology as well as international working practice. ° To establish a professional working environment, working facilities in order to maximize employees capabilities and contribution. © To establish, implement, maintain and continuously improve a Quality Management Systems in accordance with ISO 9001:2008 Standard. To social community: To fulfill all social responsibilities as well as actively contribute to community and society development. This Quality Policy is issued & circulated among all PetroVietnam Marine Shipyard employees. We are committed to pursuit this Policy. General Project Information Project Title: New Building A 60: Water Depth Ofishore Mobile Self-Elevating Drilling Rig Contract No.: 526/HD-DKVN Rev: 1 Page 3 of 16GKO01-GE-PP-003 16/11/2009 5.3 54 55 5.6 Award Date: 21% Feb, 2009 Project Duration: 32 months from 21" May, 2009 Fabrication Location: PVSHIPYARD YARD — VUNG TAU - VIETNAM Correspondence/Communication For more detail refer to Project Coordination Procedure (GK001-GE-PP- 002) and Document Control Procedure (GK001-GE-PP-004) Control of the Project Quality Plan This plan shall be reviewed and revised as required to cater for changes and improvement. When revision is made, the revised copy shall be dispatched to all holders of Controlled Copy of this plan for replacement and implementation. Key personnel of the project managements shall be given controlled copy of this plan. Uncontrolled copy of this plan may be issued, upon request for information purpose only. A register for issue of uncontrolled copy recipient shall not be kept and hence the recipients are not informed of any amendment of the plan. Manpower / Organization Chart ‘The manpower for this project shall be filled by qualified and experienced personnel. The project organization chart shall be prepared and maintained by Project Manager. For more detail refer to Project Coordination Procedure (GK001-GE-PP- 002) Responsibilities and Roles of Key Personnel 5.6.1. Project Manager (Refer to Project coordination procedure ~ Doc. No.: GK001-GE-PP-002) 5.6.2. Construction Superintendent A (Refer to Project coordination procedure - Doo. No.: GK001-GE-PP-002) 5.6.3. QA/QC Manager (Refer to Project coordination procedure ~ Doc. No.: GK001-GE-PP-002) Rev. T Page 4 of 16GK001-GE-PP-003 16/11/2009 5.6.4.. Procurement Coordinator AN (Refer to Project coordination procedure - Doc. No.: GK001-GE-PP-002) $.6.5. HSE Coordinator D\ (Refer to Project coordination procedure ~ Doc. No.: GK001-GE-PP-002) 5.6.6. Engineering Manager (Refer to Project coordination procedure ~ Doc. No.: GK001-GE-PP-002) 5.6.7. Commissioning Manager (Refer to Project coordination procedure ~ Doc. No.: GK001-GE-PP-002) 5.6.8. Planning Manager (Refer to Project coordination procedure ~ Doc. N 5.6.9. Welding Engineer > Reports directly to Project QA/QC Manager. GK001-GE-PP-002) > Prepares /Carties out the qualification of welding procedure specification (WPS) and welder qualification test procedure (WQTP) in accordance to applicable codes / standard and specification. > Assists the construction team in preparing of welding sequence and resolving other problems / activities related to the welding. > Evaluates materials (metallurgical, mechanical, physical properties) based on mill certificates and applicable standards and specification. > Witnesses welders’ performance / qualification test, issues welders’ pass and certificate as necessary and monitors the performance of these welders. > Monitors and maintains records of welders’ performance, welder’s certificate and welding repair rate. > Maintains records of welding qualification test (PQR, WPS) 5.6.10. Discipline Supervisor > Reports directly to Project Superintendent. AN > Shall coordinate with his subordinates for the execution of the work in his discipline as well as with other disciplines. Rev: 1 Page 5 of 16GK001-GE-PP-003_ 16/11/2009 > Shall ensure design integrity and construction quality for his discipline work in accordance to specification and classification practice, > Shall be able to discuss with PBB representative on the progress and resolve any issue arise at site. 5.6.11. Material Coordinator / Controller > Liaise with PMT, Procurement Department and PBB on the procurement and expediting of the material / items ordered > Ensure that all material / items delivered are properly stored and preserved prior to delivering, > To compile all documentation required for the procured material. (Refer to Material control procedure ~ Doc. No.: GK001-QA-PP-001) 5.6.12. Safety Officer A Assist Project Safety Coordinator in promoting safety at construction site. > Advice project management on preventing injury to employees, health, environment and property damage in accordance with safety programmed. > Carry out site safety inspection to ensure that safe methods of work are being carried and initiate a safety report. > Carry out accident/incident investigation and determine the causes and recommend preventive measures. > Prepare safety report as required » Organize and conduct Weekly Safety Tool Box Talks & induction courses to new employees. > Promote safety to all levels of employees by safety promotion activities and safety campaigns. > Keep up to date on safety statistic board, bulletin boards, recommended code of practices, safety information. ® Inspect physically, with the applicant of work permit, the area of intended work, especially in compartment or pipelines. Rev: 1 Page 6 of 16GKO01-GE-PP-003 = 16/11/2009 5.7 5.8 59 > To be on site at all times whilst work is in progress, enforce safety & stop any work or operation that violates any safety procedures or instruction or would endanger life & property. Contract Review The contract shall be reviewed for adequacy and capability to meet the PBB’s requirements . If the contract has any discrepancy or changes, it shall be raised by Procurement Manager. Details shall be described in: Plan package (GK001-PL-PP-001), Item Change control of Coordination procedure (GK001-GE-PP-002) Design Control (Refer to Design control procedure — Doc. No.: GK001-EG-PP-001) Document and Data Control Control of document shall follow Document Control Procedure - Doc. No.: GK001-GE-PP-004. That procedure describes how all documents are reviewed and checked prior to issuance by the originator’s department. It is also to ensure that the latest revision is used by the relevant personnel and department at all time. 5.10 Procurement Rev Purchasing of material is initiated by Design Department through Preliminary Purchase Requisition. Procurement and expediting activities for this project is coordinated by the Procurement Coordinator, which shall control the purchasing of material from PBB approved vendor. Upon completion of the project, the Procurement Dept. shall appraise the vendor on their performance during project execution. Apart from purchasing, the coordinator also provides information for sourcing and costing of material to facilitate the preparation of quotation. Details refer to: Quy trinh mua sim vat tw thiét bi va dich vu (GK001-PC- PP-001), Quy trinh kiém soat va thuc hign hgp déng (GK001-PC-PP-002) Page 7 of 16GKO01- °P-003__ 1/1/2009. 5.11 Material Acceptance/ Receiving Inspection Upon receipt of materials (inclusive of PBB’s supplied materials) to the yard, Material Inspector shall liaise with Store to conduct Material Receiving Inspection Report (MRIR) of the new arrived materials or equipments. Inspection is based on the physical check as well as quantity and quality of the goods. Only accepted materials will be delivery for the fabrication. Details refer to: Material Control Procedure (GK001-QA-PP-001) 5.12 Material Handling, Storage, Packing, Preservation and Delivery Materials arrived at PVMS shall be protected and stored in a manner to preserve them. Handling and transportation from the warehouse to the site areas shall be supervised and monitored so as to avoid damages of misidentification. Details refer to: Material Control Procedure (GK001-QA-PP-001) 5.13 Material Identification & Traceability Materials used for the fabrication shall be identified systematically either by marking or tagging (or by positive material identification if required) for traceability. This identification will be extended to all materials, components and processes. Marking of heat number and piece/spool number shall be by low stress stamping method. Details refer to: Material Control Procedure (GK001-QA-PP-001) 5.14 Process Control 5.14.1, Planning Project Planner shall be responsible on planning for works He shall also be responsible for preparation of progress status and progress reporting. Project Manager shall be informed of the delay and shall analyze the actual progress against the plan and establish necessary action plan to maintain the target date. Details refer to: Planning Package (GK001-PL-PP-001) Rev: T Page 8 of 16GKO001-GE-PP-003 16/11/2009 5.14.2. Welder/ Welding Operator Qualification Test Prior to commencement of work, PVMS shall qualify all welders, according to Welder’s Qualification Test Procedure. All welders engaged for this Project shall be tested under close supervision by and engaged by PVMS and witnessed by Authority third party. Or pre-qualify welders who have valid certificates from authority third party shall be mobilized for welding works. Details refer to: Welder & welding operator qualification test procedure (GK001-QA-PP-006) 5.14.3, Subcontractor Control To ensure the effective implementation of QMS, Project Manager shall brief the subcontractors on the system and project requirements as to communicate the quality and safety awareness to all personnel. All sub-contractors of this project shall fully comply to all PBB requirements in term of safety and quality. PVMS shall ensure only skilled, experienced workers are employed for this project. 5.14.4, Control of Production Equipment Works and Facilities Dept. shall provide necessary facilities and equipment to the Project such as welding machines, cranes, forklift and electrode ovens etc. Regular maintenance shall be conducted to ensure their fit for use condition. All equipments have identification and certificate which indicate their expiry and condition. For details refer to: Equipment Calibration Procedure (GK001-QA-PP- 020) 5.15 Inspection and Testing 5.15.1. Inspection and Test Plan ‘The Inspection and Test Plan (ITP) and Quality Control Flow Chart shall cover all inspection activities relevant to fabrication i.e., incoming, in- process and final inspection. ITP shall identify details of inspection/ test activities, related documents and acceptance criteria. Rev: I Page 9 of 16GKO01-GE-PP-003 16/11/2009 For details refer to individual ITP: - ITP for piping Fabrication & Erection (GK001-QA-IT-004) - ITP for structural Fabrication & Erection (GK001-QA-IT-005) - IEP for Coating Operation (GK001-QA-IT-006) ITP for electrical & instrumentation (GK001-QA-IT-002) ITP for mechanical (GK001-QA-IT-001) ITP for dimension (GK001-QA-IT-007) ITP for Heating, Ventilation and Air Conditioning (GK001-QA-IT-003) ITP for Jack-up Inclining test (GK001-CM-IT-001) ITP for Testing and Pre-commissioning (GK001-CM-IT-002) ITP for Commissioning (GK001-CM-IT-003) 5.15.2. Source Inspection PVMS shall utilize its QC inspectors or appoint qualified Third Party Inspection Agency (TPI) to carry out inspection of the materials or equipments which were manufactured or fabricated away from PVMS jobsite. 5.16 Control of Inspection, Measuring and Test Equipment All measuring and test equipment shall be calibrated and maintained in an orderly manner. PVMS will engage a “Third Party” (ie. QUATEST 3 or Petrol Vietnam Manpower College), a calibration body to calibrate Master equipment/tape. For measuring tapes and pressure gauges, welding equipments... calibration may be done by QA/QC Dept of PVMS. For details refer to: Equipment Calibration Procedure (GK001-QA-PP- 020) 5.17 Inspection and Test Status All inspection and test status shall be identified, maintained and documented as per ITP and approved procedures. The inspected items shall be marked directly to the materials by crayons, colored paint or by using identification tags. ‘Rev: T : a Page 10 of 16GKOOI-GE-PP-003 16/11/2009 Il the inspections and testing activities shall be recorded in the formats as per attachment in specific procedure. Other relevant inspection formats shall be complied with the project standard procedures. 5.18 Control of Non-Conforming Product Control of non-conformance and corrective actions shall follow Non Conformance Control Procedure. QC inspectors or PBB’s representatives shall conduct Non-Conformance Report (NCR) for Non ~conformity of all items e.g. materials, products, services, process, etc. with Drawing, PBB Specification and code. Base on the report, Discipline engineer shall propose a remedial action to decide whether the items are to be: Rejected, Repaired, Reworked or Accept-As-Is. Copies of NCRs shall be forwarded to PBB for review. For details refer to: Non-conformance contro! Procedure (GK.001-QA-PP- 019) 5.19 Corrective and Preventative Actions Any non-conformance of the products, services or processes shall be investigated to find the nature and root causes, Discipline Supervisors/Engineers shall liaise with QA/QC Engineer and propose @ corrective action to correct the non-compliances. Once root cause has been identified, it shall be eliminated to prevent the non-conformities’ occurrence For details refer to: Non-conformance control Procedure (GK001-QA-PP- 019) 5.20 Control of Quality Records All inspection and testing reports shall be indexed, filed, documented and kept updated by QC Division. in an orderly manner. These records shall reflect full traceability to the actual inspection activities and PVMS shall provide full access of records upon PBB request. Page 11 of 16GK001-GE-PP-003. 7 16/11/2009 5.21 Internal Quality Audits PVMS shall plan and carry out Internal Quality Audit to ensure the adequacy and effective of Quality System. The audit findings shall be extended to the fabrication subcontractors for their implementation and correction The audit shall cover but not limited to: i Engineering Every 6 months 2 | PQP Procedure Every 6 months 3 Relevant Procedures Every 6 months | 4 Material Receiving / Storage ~ | Every 6 months 5 Site Preparation a ~ | Bvery 6 months | 6 ' Subcontractors (If any) Every 6 months [7 Consumables and Electrodes Every 6 months 8 Handling Every 6 months feeeeS Welding Control | Byery 6 months 10 Paint Material / Application Every 6 months ul Project Implementation Every 6 months 12 | Inspection Reports & Progress Every 6 months 13. |NDT ce [Every 6 months 14 Safety Measures Every 6 months ‘Note: The first internal audit will be hold after contract takes effective 06 ‘months. 5.22 Safety PVMS is fully committed to uphold safety within the company. Requirements of PVMS Manual and HSE Plan shall be the basic for implementing the safety programs. Rev: T Page 12 of 16GK001-GE-PP-003 7 16/11/2009 During project execution, detailed safety programs are being planned for all personnel, subcontractors. 5.23 Training In line with company’s quality objective on Human Resources development PVMS shall provide relevant training courses to personnel involved in the project. A 5.23.1. Morning Safety Training / Briefing This briefing for fabrication workers shall be conducted weekly or as necessary and coordinated by the Safety Promoters, Safety Officers and QA/QC Dept. This briefing is conducted for all personnel, subcontractors and PBB’s personnel. 5.23.2. Tool Box Briefing This briefing will be conducted either by PVMS foreman or sub-contractor supervisor on relevant discipline before performing their duties. Topics discussed are basically on safety, quality, workmanship as well as housekeeping, 5.23.3, Job Safety Analysis Training Activities that required Job and Safety Analysis, PVMS Safety Coordinator shall ensure that personnel are trained and briefed prior to conducting the tasks. Job Safety Analysis shall be implemented and submitted for PBB approval. 5.23.4. Scaffolding Training A Personnel involved in construction of scaffolding shall be fully trained and equipped with safety harness. 5.23.5. QA/QC Training In order to have smooth implementation of the project, all personnel involved shall be fully trained and aware of PVMS Project quality objective. In doing so, PVMS QA/QC Department shall train, brief and instill quality awareness on all subjects related to the project. A “Rev: 1 Page 13 of 16GKOO1-GE-PP-003 16/11/2009 5.24 Statistical Reports One way to measure the performance of the project as overall is through measuring its performance in selected areas such as: a) Welding Repair Status b) Welder Performance ©) Project Progress Report @) Audit and NCR Status e) Safety Statistics/Analysis ) Weld and NDT Summary 5.25 Serving / Warranty Upon handling over the whole package, items ot equipment classified and identified to have a warranty period, PVMS shall provide services and assistance where required as spelled out in contract requirements. 5.26 Final Documentation / Project Quality Record Final Documentation shall be compiled and stored in a manner to ease for retrieval. These documents must be retained for at least 3 years or contractual duration, PVMS shall confirm in writing that documents to be retained are completed and available for review by agreed dates. 5.27 PBB’s Supplied Materials / Equipment Upon starting of the project, PVMS Project Manager shell request from PBB a material list of PBB’s supplied materials/equipment. The list shall then be forwarded to Material Coordinator for monitoring and follow up. Details of inspection and segregation of PBB’s materials and equipments shall refer to Material Control Procedure. Surplus materials are off-cut materials which are one meter or more. PVMS shall identify and segregate the surplus materials from others. A list of surplus shal] be updated and submitted to PBB upon request. Off-cuts which are less than one meter length are considered as scraps and shall not be mixed with the surplus. Other materials that are good for future use shall be stored and kept for handover to PBB. “Page 14 of 16GKOO1-GE-PP-003__ 16/11/2009 5.28 QA Programmed PYMS shall implement a comprehensive and approached quality program in order to meet project quality objective. Such quality programs are QA/QC meeting, Too! Box, Quality Audit, Welders Performance and Non- Conformance Analysis to name a few. 6.0 SPECIAL REQUIREMENT Not applicable 7.0 RECORDS QA/QC Manager or his representative shall be responsible on overall documentation and retention of quality records. All records shall be retained and filed as specified in CONTRACT documents. 8.0 LIST OF QA/QC FORM i 2 y~aunew Project Procedures Index A Project Management Team Organization Chart (Key Personnel) Material Receiving Inspection Report Piping Material Traceability Record Structure Material Traceability Record A Inspection Report Format - Welding Summary For Structure Inspection Report Format - Welders Repair Rate Report For Structure Inspection Report Format - Visual For Structure Inspection Report Format - Welding Summary For Piping Inspection Report Format - Welders Repair Rate Report For Piping Inspection Report Format - Visual For Piping Inspection Report Format - Fit-up For Piping (ifany) A Inspection Report Format — PWHT Report (if any) Inspection Report Format - Hardness Test Report (if any) Rev: Page 15 of 16GKOOI-GE-PP-003 err 16/11/2009 15 16 17 18 19 20 21 22 23 24 25 Non-conformance report Non-Conformance Report Register Request for Flushing and Hydrotesting Hydrostatic Pressure Testing Record Flushing Certificate Request for Valve Leak Test Valve Leak Test Data Sheet Blasting and Painting Inspection Report Painting Summary Acid Cleaning Report Inspection Report Format ~ Leveling and Dimensional Control Report (Before and After Welding) Rev: 7 Page 16 of 16