GEA do Brasil Intercambiadores Ltda, Estrada SP 354, Km 43,5, Franco da Rocha, 07803-970

Ref.: GEA Project GEA/26/10.064-05 STEEL STRUCTURE I-RM-5290.00-2313-455-GBR-001 rev.B Purchase Order: 845040828

TECHNICAL REQUIREMENTS CLARIFICATION

Name Marcio Valquiato Orlindo Silva Rocha Nguyen Anh Tuan Luu Tri Phu Mr. Duc

Company GEA do Brasil GEA do Brasil Posco Posco Posco

Department Project Engineering Technical assistance Quality Quality Project Manager

Signature

GEA do Brasil Intercambiadores Ltda

Estrada SP 354, Km 43,5 Serra dos Cristais, Franco da Rocha, So Paulo, Brasil CEP: 07803-970 - Caixa Postal 520 Tel. +55 11 4447 8800, www.geadobrasil.com.br

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1- REQUIREMENTS ACCORDING TO MATERIAL REQUISITION I-RM-5290.00-2313455-GBR-201=B

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Posco confirms that knows and follows the scope of supply according to items 2.1 and 2.2; Posco: The respective structure tag shall be identified in all components in accordance with drawings. Those components shall be marked with a steel punch; Posco:Yes confirm Posco confirms that received the drawings indicated according item 6 and their respective reviews; Posco: GEAs engineering showed and explained to Posco about each Petrobras standard according to item 7. Posco shall confirm that will follow that standards; Please confirm. Posco: Yes confirm Posco shall provide the documents indicated as for comments to GEAs approval. All documents shall contain this RM number, GEA purchaser order number and GEA drawings part-list; Please confirm. Posco: Yes confirm The data book shall be deliver together structure, considering as indicated below: Please confirm. Certificates of components and raw-materials; Certificates of welding consumables; Certificates of the measure instruments and equipment (as applicable); Welding documents (procedures, welding operator qualification, welding operator report); NDT reports (RT, UT, PM, LP); Hardness measure report (where applicable); Visual and dimensional inspections reports; Surface treatment and painting inspection report.
GEA do Brasil Intercambiadores Ltda

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note: 1 (one) electronic copy shall be send to GEAs approval before structure delivery; Posco: Yes confirm 1.7Supplier shall have welding procedures and welding operators qualified by Standard AWS-D1.1. All procedure qualifications tests will be followed and qualified by: Please confirm.
A-) Professional certified, by the standard AWS-D1.1, by international agencies fitting into the requirements of CEN standard EN-45013/ISO/IEC 17024 (in this case prior approval by GEA is required); or; B-) Level 2 welding inspector certified by CSWIP (TWI), for the standard AWS-D1.1 (note 1). C-) Supplier shall keep welding inspector level 1 (qualified by CSWIP) in your site to follow all steps of the welding process. Indicate below, an approximate correlation among qualifications of the diverse systems. The exact activities that each inspector can perform are only those detailed in the respective qualification standards:

Note 1 CSWIP (TWI), England, has qualification examination centers or applies exams in other countries. The issued certificates are widely recognized in USA, Europe, and other regions and are acceptable taking in consideration the equivalent level correlation. Posco: Posco havent inspector qualified by CSWIP .We have inspector qualification by Posco 1.8The suppliers NDT procedures shall be qualified by: Please confirm. A) inspectors for non-destructive testing for visual, liquid penetrant, magnetic particle, radiographic, ultrasonic and eddy current testing, qualification and certification shall be according to the Brazilian System of Personnel Qualification and Certification in NDT, in conformity with standard ABENDE (Brazilian Association for Non-Destructive Testing) NA 001 or by independent international entities that meet requirements in standards EN 45013/ISO 17024 and that operate in conformity with standards ISO 9712 or EN 473. B) acceptable situations for Non-Destructive Testing: All entities indicated with Yes for standards ISO 9712 or EN 473

GEA do Brasil Intercambiadores Ltda

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Note 1 All entities listed in the Mutual Recognition Agreement Schedule 2 Registered Certification Bodies document, published by EFNDT European Federation on Non Destructive Testing are acceptable. However, it is important to observe that there are other acceptable entities that are not listed in this document, as DGZfP and SECTOR Cert, from Germany. Note 2 ACCP ASNT Central Certification Program is an ASNT personnel qualification centralized program, and it is acceptable. Another ASNT qualification program that uses the ASNT SNT-TC-1A practice is not acceptable because it is a self-certification system (certification is given by the employer himself for inspectors Levels 1 and 2, and in some cases, for Level 3 inspectors, according to the examination criteria).
GEA do Brasil Intercambiadores Ltda

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Note 3 PCN/BINDT, England, has qualification examination centers in all these countries. The issued certificate is from PCN/BINDT, which is widely recognized in Europe, as detailed in Note 1. Carefully observe the certification issued by PCN/BINDT, because this entity also issues certifications according to other standards, including by ASNT SNT-TC-1A, which is not acceptable. It is necessary to verify each inspectors certificate, in order to evidence certification according to ISO 9712 or EN 473 standards. Note 4 Not all certificates already issued by JSNDI are in accordance with the ISO 9712 standard. It is necessary to verify each inspectors certificate, in order to evidence certification according to the ISO 9712 standard. Note 5 EN 45013/ ISO 17024 standards just specify the general requirements for bodies operating certification of persons (quality management requirements and administrative requirements). They do not state the technical requirements for qualification and certification. These are detailed in other technical standards such as ISO 9712 and EN 473. So, the compliance with EN 45013/ ISO 17024 is not sufficient for the acceptance of a qualification/certification system. Note 6 ATTENTION: We had received certificates, that are not acceptable for PETROBRAS, with the following approximate content Certificate: As a Recognized Third Party Organization Entity A has approved Person X to perform NDT tests on pressure equipment in categories III and IV in accordance with Annex I, section 3.1.3, of the European Pressure Equipment Directive 97/23 EC. This approval relates to the performance of Penetrant Testing Level 2/Level 3, Level 2/Level 3 as defined by EN 473 or ISO 9712. a. These certificates do not certify that the persons are Level 2 or Level 3 Professionals qualified and certified in accordance with EN 473 or ISO 9712 standards. In fact, these are certificates issued by Entity A that state that Entity A, as a RTPORecognized Third Party Organization approved that said persons perform NDT testing in pressure vessels as Level 2/Level 3 (Level 2/Level 3 as defined by EN 473 or ISO 9712), on pressure equipment in categories III and IV in accordance with Annex I, section 3.1.3, of the European Pressure Equipment Directive 97/23 EC. That is, the certificates are sufficient for the European Community, which require that the certification of NDT personnel, even those performed by the supplier itself (1st. Part) or by a 2nd. Part, has to be evaluated by an RTPO. But the certificates do not comply with PETROBRAS requirements, because these certificates do not certify that the persons are certified by an independent certification board and in accordance EN 473 or ISO 9712 standards. Posco:Yes NDT operator qualification following EN473 or ISO 9712

GEA do Brasil Intercambiadores Ltda

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Dimensional Control Inspectors for mechanical, pressure vessels-pipingmetallic structures, machine assembly and industrial topography, qualification and certification shall be by Petrobras/ENGENHARIA/SL/SEQUI according to N-2109, or by independent international entities that meet requirements in standards EN 45013 / ISO/IEC 17024; Please confirm; Posco:No We havent

1.10- Painting inspectors (when applicable) qualification and certification shall be by Petrobras/ENGENHARIA/SL/SEQUI, according to N-2004, or by independent international entities that meet requirements in standards EN 45013; Please confirm. Existing situations for Industrial Painting Inspection:

Note 11 Qualification performed by NACE in conformity with the detailed description at NACEs site. Although NACEs qualification is not strictly in accordance with the EN 45013 / ISO 17024 standard, we consider the qualification as acceptable within the approximate correlation below. Note 12 Qualification performed by CWIP in accordance with the CSWIPBritish Gas BGAS/ER1 standard. Although the CSWIP qualification is not strictly in accordance with the EN 45013/ ISO 17024 standard, we consider the qualification as acceptable within the approximate correlation below. The exact activities that each inspector can perform are only those detailed in the respective qualification standards:
Acceptable situations Industrial Painting Inspection:

GEA do Brasil Intercambiadores Ltda

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Posco:Yes We have Nace Level certificate

1.11- Inspection and tests shall be done in the Supplier, photography register shall be done before of the structure expedition due to check whether all components or its conditions as well as specifications. The structure set delivery shall be done only after issue of the release term by GEAs inspector or its authorized inspector, according to Technical Instruction CQ IT IS 153. Please confirm. Posco:Yes confirm
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GEA asks to Posco to develop machines or sub-sub-supplier to make angle details according to indicated on drawing n 1-GEA-26-10.064-16-013=D CMARA PLENA+ANEL E GRADE. Please confirm. Posco:

1.13- GEA inform that, the best delivery time to its projects is around 120 days, Posco shall analyze and to confirm that on next project; Posco: 1.14- Posco has informed us about dimensional control indicated on GEAs drawings, because they cannot do that. GEA recommends for Posco that inform us what can they do? So we can analyze if it is acceptable or not acceptable. Posco: 1.15- Posco has informed us about dimensional control indicated on GEAs drawings, because they cannot do that. GEA recommends for Posco that inform us what can they do? So we can analyze if it is acceptable or not acceptable. Posco:

GEA do Brasil Intercambiadores Ltda

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1.16- Posco has informed us about PO and drawing language, dimensional control indicated on GEAs drawings, because they cannot do that. GEA recommends for Posco that inform us what can they do? So we can analyze if it is acceptable or not acceptable. Posco:

1.17- Posco has asked for all drawings and other documents to be written in English language.

1.18- Posco confirms that structures will provide with primer painting to avoid sea corrosion. Please confirm. Posco: 1.19- Posco shall confirm that will provide the structure package suitable for container with components protection crates (with fumigated wood) or other, to avoid excessive corrosion due to marine enviroment and any damages (scratches, dents, etc.).Please confirm.Posco confirms that structures will be provide with package suitable to container and sea transportation according material requisition item . Please confirm. Posco:

2- REQUIREMENTS FOR STRUCTURE QUOTATION IN THE FUTURE 2.1- GEA recommends to Posco that on next quotation for new projects / business, to be followed according to below: GEA sends RFQ (Required for quotation) with all technical specification to Posco; Posco shall analyzes all documents; In case of any technical or scope deviation, Posco shall inform to GEA together with the technical proposal; GEA will make a technical clarification (if applicable) and sends to Posco answered; After all technical parts and scope to be clarify to both sides, Posco will be able to provide structure for GEA.

Posco:

Eng Marcio Valquiato

GEA do Brasil Intercambiadores Ltda

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Project and sales Engineering Tel.: (11) 4447-8818 Fax: (11) 4447-8830 E-mail: marcio.valquiato@geagroup.com

GEA do Brasil Intercambiadores Ltda