ABU DHABI

OIL REFINING COMPANY

PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

QUALITY REQUIREMENTS FOR

SUBCONTRACTOR

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 1 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

REVISION LOG

REV. REVISED
REV. DATE REVISION DESCRIPTION
NO. PAGE

B 01/18/2010 2,5,11,12,13 Incorporated COMPANY Comments.(Ref. No. T-PASH/5578-E1/1.5.5/005)

0 16/03/2010 N/A Document number changed & Issued for Construction at Rev.0

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 3 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

TABLE OF CONTENTS

1. PURPOSE------------------------------------------------------------------------------------------- 5

2. DEFINITION--------------------------------------------------------------------------------------- 5

3. QUALITY REQUIREMENTS------------------------------------------------------------------ 5

4. INSPECTION AND TEST------------------------------------------------------------------------ 8

5. PROCESS CONTROL-------------------------------------------------------------------------- 11

6. NONCONFORMANCE AND REMEDIAL ACTION------------------------------------ 12

7. CORRECTIVE / PREVENTIVE ACTION------------------------------------------------- 13

8. QUALITY RECORDS--------------------------------------------------------------------------- 13

9. INSPECTION REPORTING------------------------------------------------------------------- 14

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 4 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

1. PURPOSE

This procedure is the minimum requirements for a Subcontractor’s Quality Control System
of the Project. The subcontractor shall provide SKEC, access to their facilities to verify and
determine quality of work, records, and material during construction period.

The subcontractor shall provide necessary information, facilities, and equipment to perform
the required tests/inspections. Subcontractors may use their internal quality control system,
in lieu of this procedure, providing that system accomplishes the intent of SKEC and
complies with the applicable requirements

2. DEFINITIONS

1) COMPANY : Abu Dhabi Oil Refining Company(TAKREER)

2) CONTRACTOR : SK Engineering & Construction Co., Ltd. (SKEC)
3) PROJECT : Ruwais Refinery Expansion Project
4) ITP : Inspection and Test Plan.

3. QUALITY REQUIREMENT

3.1 Quality Control Program

The Subcontractor shall establish and maintain Quality Control System which satisfies the
project quality requirements and ISO 9000:2000. The Quality Control System shall be
described by a project Quality Control Program which describes the required sequence of
events and the relevant procedures developed, to implement the Quality Control System
within subcontractors scope of work activity.

The Subcontractor shall comply with the project agreement requirements during all phase of
the work.

3.2 Quality Control Group

The Subcontractor shall maintain within its organization the Quality Control Group which
comprises an adequate number of sufficiently qualified, experienced and capable individuals
to perform quality control activities, such as monitoring, supervisions, inspections and tests.

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 5 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

The Subcontractor shall appoint a quality control manager who will be responsible for
execution of the QC system and all quality requirements and for resolving the quality
problems in a timely manner. He shall be able to communicate in English and agreed by
the CONTRACTOR. Qualification records of QC personnel shall also be submitted and
agreed by the CONTRACTOR.

The Quality Control Group shall be given sufficient authority by the top management of the
Subcontractor to implement the quality control activity.

The Quality Control Group shall fulfill its QC role by planning the necessary quality control
activities.

The CONTRACTOR reserves the right to request the subcontractor to remove any person
who is not competent for quality control. In this case the subcontractor shall remove him
from the construction site within 24 hours.

3.3 Audit

Subcontract shall develop and execute a program of planned and documented quality audits
to verify whether performance of work complies with planned arrangements and to
determine the effectiveness of the quality system in Subcontractor’s own organization.
Copies of all audit reports shall be forwarded to CONTRACTOR.

The CONTRACTOR and the COMPANY reserve the right to perform an audit, at any time,
throughout the work of the QC effort of the Subcontractor.

3.4 Qualification for Quality Staff (Min. Requirement)

Quality Assurance / Quality Control Manager

1) 10 years related to management Quality Systems with the Oil & Gas Industry
2) Qualified lead Auditor
3) B.Sc. in Technical Discipline

Quality Control Engineer

1) 10 years related to QA/QC within an Oil & Gas Project Environment

2) Qualification in Welding/ Non Destructive Test(NDT)/ Coating / Painting.
3) Knowledge of Auditing

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 6 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

4) B.Sc. in Engineering

Quality Inspector

1) 5-10 years experience in Oil & Gas Project Industry

2) CSWIP (senior) 3.2
3) AWS Inspectors
4) ASNT Level II (NDT)
5) Certified to the discipline in Quality

Note;

1) ASNT Certification will be reviewed and approved by CONTRACTOR and/or

COMPANY

2) Alternative equivalent qualifications may also be acceptable, subject to CONTRACTOR

and/or COMPANY approval

3.5 Submission of Quality Records

All quality activities shall be incorporated into the Project Quality Plan and shall be
identified in associated Project schedules and planning documents. This shall include as a
minimum:

1) Preparation and approval of Project Quality Plan and Quality procedures

2) Preparation and approval of Quality Control Plans for each activity
3) Quality Audit and Reviews

3.6 Acceptance of QA/QC Personnel

Subcontractor shall formalize the acceptance of the personnel to the appointed specifically
for QA/QC tasks and shall seek the approval of CONTRACTOR and/or COMPANY before
confirming their assignments.

Subcontractor shall obtain approval from CONTRACTOR about the schedule and
growth/reduction of the initially assigned QA/QC Organization in order to ensure adequate
schedule of resources.

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 7 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

4. INSPECTION AND TEST

4.1 General

The Subcontractor's QC Group shall perform independent inspection and test, in order to
verify that the work is being done in accordance with the requirements specified in following
documents.

1) Contract Specifications and Technical Norms

2) The CONTRACTOR’s Specifications Applicable Codes and Standards
3) Local Government, statutory and insurance party's requirements as may be required
4) Drawings, procedures, and instructions
5) Licensor’s requirements
6) Other quality related documents.

The CONTRACTOR's and COMPANY representatives shall have the right to freely access
to the Subcontractor's work area, at all times, in order to enable to exercise their right
regarding inspections and audits of the work.

The CONTRACTOR reserve the right to appoint an independent third party inspection
agency to carry out inspection and/or audits on their behalf, although this shall not relieve
the Subcontractor of his obligation of inspection.

Inspection and/or acceptance by the CONTRACTOR's and/or COMPANY representatives

shall not relieve the Subcontractor of its responsibility for ensuring the correctness of the
work.

Any inspection test, supervision, certification or witnessing where required by Abu Dhabi,
UAE law and regulations, and insurance party shall be arranged by the Subcontractor.

The Subcontractor shall arrange for the necessary inspection testing, measuring, and
calibration tools, at the time of inspection by CONTRACTOR and/or COMPANY.

The CONTRACTOR's and COMPANY representatives shall have the right to reject any
work, if it does not conform to the project quality requirements. In this case the
Subcontractor shall immediately remedy the work at their own cost.

The Subcontractor shall be wholly responsible for performing the inspection/ test delineated
in the ITP and shall report the result to the CONTRACTOR unless otherwise directed in the

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 8 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

subcontract documents. Such inspections and/or tests (pre inspection) shall be performed by
his own inspection group before submitting the notification for inspection to the
CONTRACTOR and COMPANY

The subcontractor shall notify the CONTRACTOR of inspections and tests in a timely
manner as required by this procedure. All preparations for inspections and tests including
scaffolding necessary for the witness of CONTRACTOR and COMPANY shall be made by
the Subcontractor

4.2 Inspection and Test Plan

The Subcontractor shall prepare and submit the inspection and test plan, which shall include
all the inspection and test activities required in the documents stipulated in Para. 4.1 of this
procedure for each system of the work, to the CONTRACTOR, at least 4 weeks prior to
commencement of the inspections. Unless otherwise, CONTRACTOR’s ITP shall be
followed.

The major disciplines of construction subject for drawn up of Inspection and Test Plan (ITP)
in site as follows;

1) 5578-E1-ITP-PC-001 : Civil Work

2) 5578-E1-ITP-PC-002 : Architecture Work
3) 5578-E1-ITP-PC-003 : Equipment Work
4) 5578-E1-ITP-PC-004 : Steel Structure Work
5) 5578-E1-ITP-PC-005 : Tank Work
6) 5578-E1-ITP-PC-006 : Above Ground Piping Work
7) 5578-E1-ITP-PC-007 : Under Ground Piping Work
8) 5578-E1-ITP-PC-008 : Electrical Work
9) 5578-E1-ITP-PC-008 : Instrument Work
10) 5578-E1-ITP-PC-010 : Painting Work
11) 5578-E1-ITP-PC-011 : Insulation Work

The subcontractor’s quality control system shall assure compliance with engineering
drawings, manufacturing process specifications and quality standards during all phases of
fabrication and testing of product. Subcontractor inspection should assure full compliance
with the project specification

The inspection items which will mainly be designated by the CONTRACTOR and/or
COMPANY are following activities, but not be limited to ;

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 9 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

Civil and Building Work

1) Earth work Compaction Tests
2) Pile Driving Work
3) Concrete Cube Tests
4) Slump Tests
5) Grouting Checks
6) Re-bar Installation before concrete placement
7) HVAC Functional Tests
8) Visual Checks

Mechanical Work
1) Welding Procedure and Welder Qualification Test
2) Structural Steel Erection Inspection
3) Equipment Erection Inspection including internals
4) Welding Visual Checks
5) NDE
6) Rotating Equipment Inspection
7) Level and Alignment Checks
8) For Partial or Complete Assembly of Equipment, at Site, e.g, Vessels, Tanks, Furnaces,
the Third Party Inspection will be applicable.
9) Internal Inspection & Final Boxing-up, Final Inspection

Piping Prefabrication and Installation

1) Welding Procedures Specification,
2) Welder Qualification Test
3) NDE
4) Heat treatment
5) Hydrostatic Testing/Pneumatic Testing

Electrical Work
1) Installation Inspection Tests for Continuity, Insulation, Earthing, Phasing
2) Testing of Electrical Equipment, etc.

Instrumentation
1) Installation Checks
2) Calibration of Instruments
3) Loop Checks on Systems
4) Pressure Testing of Air Supplies and Instrument Piping

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 10 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

5) Pressure Test Procedure Checking

Painting, Insulation, Wrapping, Fire Proofing and Refractory

1) Surface Preparation Checks Painting Procedure Checking
2) Dry Film Thickness Checks Insulation
3) Correct Materials and Installation
4) Wrapping procedure checking and Holiday Test
5) Fire Proofing Inspection
6) Refractory Materials Works

Pre-commissioning and Commissioning

1) Project Pre-commissioning and Commissioning Procedures Checking
2) Flushing / Cleaning, Dry out & Purge, Leakage Test
3) Performance Testing

The Subcontractor is responsible for submitting an application for inspection, two days prior
to the inspection, to the CONTRACTOR for their witness or those witness and hold points
designated by the CONTRACTOR. The application for inspection shall include followings,
but not limited to;

1) Name of the Subcontractor

2) Inspection Item or System to be inspected
3) Location
4) Date and Time, and

The Subcontractor shall provide the Contractor and/or COMPANY’s representatives with
personnel, inspections tools and material assistance during their witnesses.

The Subcontractor shall prepare and submit the weekly schedule of inspection and test which
are intended to perform within 2 weeks.

5. PROCESS CONTROL

5.1 Procedure

The subcontractor shall establish and maintain written procedures defining its Quality
Control system in accordance with and compliant to ISO 9000:2000.

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 11 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

5.2 Drawing and Change Control

The subcontractor shall maintain a system for the control of drawings and specifications to
assure that only current and latest revisions are available to operating personnel. The
subcontractor shall not incorporate any changes to SKEC drawing, specification, or
Engineering Change Order unless authorized

5.3 Procurement

The subcontractor shall assume the responsibility for the quality of all purchased materials
and services. The subcontractor shall provide an effective system for the control of:

1) Selection of procurement sources;

2) Obtaining certified test reports and/or certificates of compliance;
3) Subcontractor corrective action when requested.

5.4 Raw Material

Raw material procured by the subcontractor shall be inspected certified and must conform to
requirements of the applicable project specification, contract or Purchase Order. Material
shall be procured on the basis of physical and chemical tests and no deviations or
substitutions shall be made without written approval from

5.5 Process Control

The subcontractor shall have an adequate system for the control of special processes.
Objective evidence shall be kept on file verifying the qualification of the process.
Personnel performing special processes controlled by SKEC specifications (i.e.: welding,
electrical bonding, soldering, nondestructive testing) shall be trained in this activity and shall
be examined for proficiency by the subcontractor. Records of qualification date and re-
qualification date shall be maintained for each individual

6. NON-CONFORMANCE AND REMEDIAL ACTION

6.1 If, during the inspections, tests or checks, the CONTRACTOR's, or COMPANY’s
representatives identify unsatisfactory work, the Subcontractor shall remedy those faults
immediately at no cost to the CONTRACTOR.

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 12 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

6.2 In case that the inspection by the CONTRACTOR's and COMPANY’s representative’s
shows faulty they will be entitled to reject the work.

6.3 The Subcontractor's remedial procedures shall be reviewed and agreed by the
CONTRACTOR in writing before the remedial work is allowed to proceed, If necessary.

7. CORRECTIVE / PREVENTIVE ACTION

7.1 A corrective Action Request (CARs) shall be raised by Project QA/QC Manager as a result
of Nonconformance Reports of a repetitive nature or of a single significant occurrence, Audit
Finding Reports (AFRs) which indicate an adverse quality trend and/or when significant
quality related problems are detected during the execution of the work.

7.2 CAR Issue of Project QA/QC Manager

Project QA/QC Manager shall prepare CAR (Corrective Action Request) within project
organization in head office and Site for the following cases.

1) In case the quality system element or the requirements of the Project Quality Plan and
Project Quality Procedures are not implemented.

2) In case the problems discovered during the monitoring are not resolved without any
special cause.

3) In case the similar types of Client complaints are recurring by the same reason

4) In case of observation or minor nonconformities are found, 3 or more times, by the same
reason

5) In case the completion due date of corrective action for external or Project quality audit
findings is exceeded without any cause.

7.3 CAR shall be approved by the Site Manager and Project QA/QC Manager before issue. The
reason for not approving the CAR shall be documented and retained in the project files.

8. QUALITY RECORDS

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 13 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

8.1 The Subcontractor shall provide the CONTRACTOR with reports of all inspections/tests in
accordance with the required project specification and/or approved ITP

8.2 The Subcontractor shall also maintain all other inspection/test reports generated through the
construction period and submit the originals of all the reports to the CONTRACTOR for
review together with the status log which be summarized the inspection and test activities
performed. these reports shall be compiled into a handbook over packages when his works
are completed.

8.3 The quality records shall be made available to the CONTRACTOR's and COMPANY’s
representatives, at any time, upon request, for evaluation, audit or verification.

9. INSPECTION REPORTING

9.1 The Subcontractor shall prepare and submit the inspection and test status report to the
CONTRACTOR on a weekly basis.

9.2 The Subcontractor shall establish a computerized database program(SKEC Program shall be
used) for obtaining following major outputs (for piping work only);

Piping Joint Control System (PJCS)

The report (Welding Joint Control Log) obtained from this system shall contain piping
line/ISO dwg. No, joint No, material heat number, size, weld type, WPS No, Welder ID,
visual/NDT, PMI, PWHT, Hydro test, dates of those etc, as necessary to trace, to the
maximum extent, any activity done or to be done at the construction site.

This system shall be able to offer various kind of status of reports, such as welding
inspection/test, welder qualification, rejection rate, progress status and others as required for
the control.

Daily Welding Report with Weld Map

The Subcontractor shall provide the CONTRACTOR with the daily welding report with
weld maps which show the welding inspection status, together with corresponding weld
number on a isometric drawing basis every week.
Punch Listed Item Control

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 14 OF 15

 ABU DHABI
OIL REFINING COMPANY
PROJECT PROCEDURE

QUALITY REQUIREMENTS FOR

RUWAIS REFINERY SUBCONTRACTOR
EXPANSION PROJECT
Rev. 0
EPC WORKS Doc. No. 5578-E1-QA-PA-007
AGREEMENT NO. 09-5578-E-1

The report (Punch Listed Item Control Log) obtained from excel or system shall contain area
code, Subcontractor code, disciplines, item No, item description, initiator, verifier, date, and
etc. This system shall also be able to make various outputs by sorting as required for the
control.

The Subcontractor is responsible for inputting all necessary data along with supply of any
required hardware and software.

One USB or diskette together with two hard copies of each updated output report shall be
submitted to the CONTRACTOR every Friday.

SK ENGINEERING & CONSTRUCTION CO., LTD. PAGE 15 OF 15