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October 6, 2010 SENT VIA E-MAIL Attention: Mr. Abu El-Nil Senior Procurement Dept.

Manager Consolidated Contractors International Company Plants Engineering Department, CCC Yard Corniche Road Street No. 7 Mussafah Industrial Area West 2 Plot No. 2B P.O. Box No. 45014, Abu Dhabi, UAE GASCO Habshan Sulphur Pipeline SEET Tyco Thermal Controls Proposal 1-10-S5318-22634 Priced Commercial Offering for SEET System

Reference:

Dear Mr. El-Nil: In conjunction with Tyco Thermal Controls (TYCO) technical proposal submitted to you on August 24, 2010, we are pleased to submit this priced commercial proposal for Heat Management System (HMS) Supply for the Habshan Sulphur Station and pipeline project for GASCO. This commercial proposal is based on the Scope of Work presented herein and any further requirements given to us during meetings with TYCO personnel thereafter. Please refer to the detailed Scope of Supply Matrix for the proposed products and services offered in our proposal. As you are aware, Tyco Thermal Controls has been involved in various development stages of this project and was recommended as the most qualified company to undertake the SEET (Skin Effect Electric Trace) project. Tender documents have established several stringent design conditions to make the proposed pipeline more reliable and safe. These requirements include: SEET system operating voltage (maximum 2,000V.) Sulphur flow assurance capability at minimum pipeline flow conditions Upset pipe temperature conditions (232C ) for thermal insulation design and pipe design. Sulphur re-melt program and strategy Fibre optic based independent distributed temperature monitoring system Requirement for pre-insulated piping system to assure homogenous thermal profile along the entire pipeline As stated in our previous technical proposal, we believe TYCO is the only company with experience in incorporating all these critical design features in past projects. We have successfully implemented all these requirements for the last two major sulphur projects CNRL pipeline in Canada; Qatargas CSP pipeline in Ras Laffan, Qatar. No other company has the experience in bundling the technologies or incorporating the design features specified in the GASCO documents. In addition we have incorporated several unique features to enhance the

GASCO Cover Letter Commercial Bid 06Oct2010-CCC.docx

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Habshan Sulphur Pipelines SEET

October 6, 2010

installation and performance of the FO based distributed temperature sensing system. Our remelt strategy includes features considered to be proprietary to TYCO. Our commercial offer includes three priced options for an E/P scope of work and two options for an EPC scope of work. We have included our proprietary (U.S. patent pending) hybrid composite insulation system for sulphur pipelines in two of these options, We understand that a homogenous thermal profile is a critical performance criteria for the insulated sulphur pipelines. Our offer includes pre-insulated piping supply as part of our Lump Sum price to achieve this requirement. In addition, we would like to offer various types engineered thermally isolated pipe supports, based on pipe stress calculation data and other pipeline design details to be furnished by you at a later date. We hope our extensive experience in the design and implementation of heated sulphur pipelines, our ability to incorporate technologies, and the superior performance of our past projects will be favourably considered in evaluating our bid. We look forward to an opportunity to discuss our commercial proposal with you and offer further clarification, if necessary. Thank you for giving us this opportunity to work with you, and your interest in the products and services offered by TYCO. Best Regards,

Franco Chakkalakal Global Director - SEET Technology Tyco Thermal Controls

Vincent Amy Head of Sales ME- India Tyco Thermal Controls, UAE

GASCO Cover Letter Commercial Bid 06Oct2010-CCC.docx

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Commercial Proposal
For

Habshan Sulphur Pipelines Skin Effect Electric Traced (SEET) System

GASCO PROJECT No. 5264 Tyco Thermal Controls Proposal # 1-10-S5318-22695 Rev. 0, October 5, 2010

Proprietary & Confidential

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. EXECUTIVE SUMMARY ......................................................................................................... 3 BASIS FOR BID ...................................................................................................................... 6 SCOPE OF SUPPLY ............................................................................................................. 10 PRE-INSULATED PIPE DESIGN & SUPPLY .................................................................... 25 CONSTRUCTION AND FIELD SERVICES ........................................................................... 27 SEET SYSTEM WARRANTY ................................................................................................ 33 THERMALLY ISOLATED PIPE SUPPORTS DESIGN & SUPPLY .................................... 34 TECHNICAL CLARIFICATIONS / DEVIATIONS ................................................................... 36 COMMERCIAL CLARIFICATIONS ....................................................................................... 41

10. PRICE BID............................................................................................................................. 42

ATTACHMENTS: Attachment 1 SEET System Layout Sketches Attachment 2 SEET Preliminary E/P and EPC Schedules Attachment 3 Inspection Test Plan (ITP) for Pre-manufactured Pipe Spools Attachment 4 Field Services Rate Sheet Attachment 5 SEET Field Construction Organizational Chart

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

1. EXECUTIVE SUMMARY Tyco Thermal Controls has prepared this commercial proposal based on FEED documents and additional requirements supplied by the EPC contractor (CONTRACTOR), and our detailed technical proposal submitted to you earlier. We have attempted to offer a proposal that is in full compliance with the scope of supply stated in the FEED documents (GASCO 13526701-A.1 General Project Description; Section A.1.7) and also based on specific requests communicated by you. The summary table below is included for your easy reference and evaluation. Refer to Section 10 for pricing. Table 1 Summary of Commercial Offerings
E/P or EPC

ITEM #

THERMAL INSULATION SYSTEM Pre-insulated Composite - Inner layer: Expanded Perlite - Outer layer: Hi-temp polyurethane foam - Outer Jacket: Extruded HDPE - Mechanical protection: Aluminum (field installed) Multi-layer Factory Installed Nanogel - All insulation layers: Nanogel technology - Outer Jacket: Extruded HDPE - Mechanical protection: Aluminum (field installed) Pre-insulated Hybrid Composite (PROPRIETARY) - Inner layer: Expanded Perlite / high density Mineral Wool - Outer layer: Hi-temp polyurethane foam - Outer Jacket: Extruded HDPE - Mechanical protection: Aluminum (field installed) Pre-insulated Composite - Inner layer: Expanded Perlite - Outer layer: Hi-temp polyurethane foam - Outer Jacket: Extruded HDPE - Mechanical protection: Aluminum (field installed)

DESCRIPTION / SCOPE Design, Engineering & Supply of SEET, FO, Pre-insulated piping system; field Quality Assurance Inspection; Pre-commissioning; Commissioning Same as Base Bid described above, except thermal insulation material will be factory installed Nanogel material Same as Base Bid described above, except with proprietary hybrid composite insulation described in Section 2 of this proposal. Includes all items described in Base Bid proposal and field installation of these materials as described in this proposal

COMMENTS Field Services are offered on a Daily Rate basis, as construction schedule is not available at this time. Nanogel insulation will require insulated pipe supports for the entire pipeline

BASE BID

E/P

ALTERNATE #1

E/P

ALTERNATE #2

E/P

Most costeffective E/P proposal, with proprietary composite insulation

ALTERNATE #3

EPC

This EPC proposal offers a "Warm Pipe Warranty" and single source responsibility

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

ITEM #

E/P or EPC

THERMAL INSULATION SYSTEM Pre-insulated Hybrid Composite (PROPRIETARY) - Inner layer: Expanded Perlite / High density Mineral Wool - Outer layer: Hi-temp polyurethane foam - Outer Jacket: Extruded HDPE - Mechanical protection: Aluminum (field installed) N/A

DESCRIPTION / SCOPE Scope of Work as stated above for Alternate #3, except the insulation system will be hybrid composite described in Section 2 of this proposal. As per Spare Parts List included in the proposal Several types of engineered pipe supports

COMMENTS

ALTERNATE #4

EPC

Most costeffective single source EPC proposal for the complete SEET system For 2-year Operational Spares Unit Rates will be given upon supply of pipe stress calculations from EPC contractor

SPARE PARTS PIPE SUPPORTS

EPC

SUPPLY

N/A

We have offered both E/P and EPC proposals for your consideration. While our E/P supply offer includes all SEET components and field quality assurance inspection requirements, our EPC proposal not only includes high quality SEET system components successfully proven in the Middle East environment, but it also offers a single source responsibility for the complete installed SEET system. Our EPC offer includes a full Warm Pipe Warranty for the sulphur pipeline. As we highlighted in our Technical Proposal, there are several special design requirements incorporated in the FEED documents to enhance the safety and reliability of the SEET system for this critical sulphur pipeline. These special requirements include: a) Limitation of maximum operating voltage of the SEET circuits to 2,000V (GASCO document no. RP-5264-X044-PL-016) b) SEET design flow assurance at minimum flow conditions during failure of both SEET circuits in a pipe segment (GASCO doc. no RP-5264-X044-PL-017) c) Thermal insulation system design to meet 232C upset pipe temperature (GASCO document no. SP-5264-X044-PL-007) d) 300C rated fiber optic based distributed temperature sensing system (GASCO document no. RP-5264-X044-PL-017) e) Design of the SEET system with capability for re-melt time less than 100 hours (GASCO document no. RP-5264-X044-PL-017) Tyco confirms that our design and material meets or exceeds these requirements. This proposal also includes a project execution schedule for the SEET / Fiber Optic system for your evaluation and reference. We have developed this schedule based on our experience in successfully completing the 35 km CSP sulphur pipeline project for Qatargas. However we realize that this SEET installation schedule must meet your overall project execution schedule and are ready to modify the proposed schedule to meet your requirements, if needed.
GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

This proposal is prepared based on our experience in executing single source, turnkey Heat Management System projects around the globe in the past 25 years. In addition, we wish to highlight our experience as the only company to execute SEET systems for sulphur pipelines with a fiber optic based Distributed Temperature Sensing (DTS) system which will result in a SEET system that will meet and exceed your expectations for the on-time completion and superior system performance.

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

2. BASIS FOR BID A. Basis for SEET Design and Commercial Proposal Pipeline design information and SEET performance criteria were selected from this projects FEED documents and can be found in TYCOs technical proposal, which was submitted previously. In addition, our commercial proposal is based on the sulphur pipeline quantities listed herein, along with the technical clarifications that are included. Below are the descriptions of three different insulation systems offered for the project. These systems are specified to be pre-insulated in a factory setting per the FEED documents. B. Pre-insulated Composite (BASE BID & ALTERNATE #3) This insulation system includes the following layers: x x Expanded Perlite inner layer High temperature Polyurethane Foam (PUF) outer layer

Refer to pipe cross section and thermal insulation details described below and Bill of Materials shown in the Scope of Supply section of this proposal.

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Table 2 Design Summary


8 Sulphur Service: From / To: Thermal Insulation type Inner layer / thickness Outer layer / thickness Heat loss Liquid Sulphur Habshan 1-4 to 5 Multi layer-Pre-insulated Expanded Perlite / 88 mm (3.5) High temperature foam / 88 mm (3.5) 41.1 watts per meter 12 Sulphur Liquid Sulphur Habshan 5 to Station Multi-layer Pre-insulated Expanded Perlite / 76 mm (3.0) Hi temperature foam / 63 mm (2.5) 59.6 watts per meter

C. Multi-layer Factory Installed Nanogel (ALTERNATE #1) This insulation system includes the following layers: x Multiple layers of Nanogel technology

Refer to pipe cross section and thermal insulation details described below and Bill of Materials shown in the Scope of Supply section of this proposal.

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Table 3 Design Summary


8 Sulphur Service: From / To: Thermal Insulation type Inner layer / thickness Outer layer/ thickness Heat loss Liquid Sulphur Habshan 1-4 to 5 Multi layer-Pre-insulated Nanogel / 30 mm (1.18) Nanogel / 20 mm (0.79) 38.6 watts per meter 12 Sulphur Liquid Sulphur Habshan 5 to Station Multi-layer Pre-insulated Nanogel / 30 mm (1.18) Nanogel / 20 mm (0.79) 53.2 watts per meter

D. Pre-insulated Hybrid Composite (ALTERNATE #2 & #4)

(CONFIDENTIAL & PROPRIETARY)


This insulation system includes the following layers: x x Expanded Perlite / High density Mineral Wool inner layer High temperature Polyurethane Foam (PUF) outer layer

Refer to pipe cross section and thermal insulation details described below and Bill of Materials shown in the Scope of Supply section of this proposal.

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Table 4 Design Summary


8 Sulphur Service: From / To: Thermal Insulation type Inner layer / thickness Outer layer / thickness Heat loss Liquid Sulphur Habshan 1-4 to 5 Multi layer-Pre-insulated 12 Sulphur Liquid Sulphur Habshan 5 to Station Multi-layer Pre-insulated

Expanded Perlite & Min. Wool / Expanded Perlite & Min. Wool / 76 mm (3.0) 63 mm (2.5) High temperature foam High temperature foam / 63 mm (2.5) / 50 mm (2.0) 40.3 watts per meter 59.9 watts per meter

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

3. SCOPE OF SUPPLY A. Scope of Supply TYCOs Commercial Proposal includes two types of Scope of Supply offerings, as stated below: 1. E/P proposals for supply of SEET system design, engineering, supply and field Quality Assurance inspection activities for the project, as listed in the Scope of Supply Matrix. Three E/P proposals are offered: x E/P proposal with composite pre-insulated piping system with Expanded Perlite inner layer and high temperature foam outer layer x E/P proposal with nanotechnology based pre-insulated thermal insulation system x E/P proposal with a hybrid composite pre-insulated piping system with Expanded Perlite / high density Mineral Wool inner layer and high temperature foam outer layer 2. EPC proposals for single source responsibility for design, engineering, supply, installation and quality control, testing and pre-commissioning of the SEET system, as listed in the Scope of Supply Matrix. Two EPC Single source turnkey SEET system proposals are offered, as identified below: x EPC proposal for a turnkey, single source responsibility system with composite preinsulated piping system of Expanded Perlite inner layer and high temperature foam outer layer x EPC proposal for a turnkey, single source responsibility system with hybrid composite pre-insulated piping system of Expanded Perlite / high density Mineral Wool inner layer and high temperature foam outer layer

B. Scope Of Supply Matrix For E/P Proposals The following matrix describes in detail the responsibilities by TYCO in our E/P commercial bids. Table 5 Detailed Scope of Supply Matrix for E/P Offerings
LEGEND: D = DESIGN S = SUPPLY I = INSTALL TYCO THERMAL CONTROLS
PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR Page 10 of 47

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

A 1 2 3

Engineering SEET Design Engineering SEET Specifications SEET Thermal Insulation Specifications

D D D

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Company Confidential - DO NOT COPY

GASCO

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

LEGEND: D = DESIGN S = SUPPLY I = INSTALL

TYCO THERMAL CONTROLS


PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR D D D D S I I I S/I I D/S/I D/S/I I I I D/S/I Page 11 of 47

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

4 5 6 7 8 9 10 11 12 13 14 15 16 B 1 2 3 4 5 6 7 8 9 10 11 12 13

Fiber Optic (F.O.) Design Engineering F.O. Specifications SEET Equipment Specifications Finite Element Analysis (FEA) Transient Finite Element Analysis Sulphur Heatup / Cooldown / Remelt Calculations SEET Sulphur Remelt Procedure for Operations Sulphur Pipeline Design Sulphur Pipeline grounding design Sulphur Pipe Stress Analysis, (incl. deflections) Insulation Recommendations at High Movement Locations SEET & FO Tube Welding Spec. SEET Pipe Spool Fabrication Drawings SEET System & Equipment SEET 1" Heat Tube Supply (for Sulphur pipeline) SEET Power Connection / End Boxes SEET Transition Boxes for Power Wiring to P.C. Boxes SEET Pull/Splice Boxes SEET 1" Tube Couplings / Guides Field Welded @ Pipe Joints Low Pressure Air Testing of Welded 1" SEET Tube at Site SEET RTD Temperature Sensor SEET Wire between SEET Panel & Power Connections on Pipe SEET RTD Wire between SEET Panel & RTDs on Pipe SEET Wire Splice Kits SEET Transformers, Scott-T, Oil-filled SEET Switchgear & Control Panels w/ PLC - set equipment Interconnect Wiring between SEET Transformer & Panel

D D D D D D D

D D

D D D D D D D S S S S S

I I

D D D

S S S

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Company Confidential - DO NOT COPY

GASCO

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

LEGEND: D = DESIGN S = SUPPLY I = INSTALL

TYCO THERMAL CONTROLS


PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR D/S/I D/S/I D/S/I S I S/I I I I I I D/S/I D/S/I D/S/I D/S/I S S D S/I D D/S/I D/S/I D/S/I D/S/I I S/I Page 12 of 47

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

14 15 16 C 1 2 3 4 5 6 7 8 9 10 11 12 13 D 1 2 3 4 5 6 7 8 9 10

Hardware For Wire Terminations (cable glands) Interconnecting Communications to DCS Indoor Location for SEET Control Panels FO Temperature Monitoring System Fiber Optic 1" Tube Supply (for Sulphur pipeline) Fiber Optic Pull Boxes Fiber Optic 1" Tube Coupling / Guides Low Pressure Air Testing of Welded 1" F.O. Tube at Site Fiber Optic Sensing Cable on Pipeline Fiber Optic Transit Cable F.O. Transit Cable / Fiber Splice Box Fiber Optic DTS Cabinet Customized Graphical User Interface (GUI) for DTS Fiber Optic Strain Monitoring System Power to F.O. DTS Cabinet Indoor Location for DTS Cabinet Interconnecting Communications to DCS Pre-Fabricated Pipe for SEET Carrier Pipe - Supply Carrier Pipe Bends and Elbows Carrier Pipe End Preparation for Field Welds - bevel Carrier Pipe Surface Prep. / Painting Shop Butt Welding of Carrier Pipe in Field Carrier Pipe Surface Prep. / Painting @ Joints - Field Carrier Pipe Non-destructive Testing Carrier Pipe Hydrotest SEET & F.O. Component Welding to Pipe in Shop - (see B & C above) Thermal Insulation w/ Polymer Jacket -

D D D D D D D D D S S S S S S S

I I

S/I

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Company Confidential - DO NOT COPY

GASCO

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

LEGEND: D = DESIGN S = SUPPLY I = INSTALL

TYCO THERMAL CONTROLS


PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR S/I S/I S I D/S/I D/S/I I I S/I D/S/I S/I D D/S/I I D/S/I D S/I D/S/I D/S/I Page 13 of 47

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

Shop 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E 1 2 3 4 5 6 7 F 1 2 3 SEET 1" Heat Tube Welding of Couplings @ Field Joints Fiber Optic 1" Tube Welding of Couplings @ Field Joints Thermal Insulation @ Field Joints Thermal Insulation w/ Polymer Jacket @ Field Bends Pre-Insulation (Shop) Quality Control / Quality Assurance Pipe - Aluminum Outer Cladding Aluminum Outer Cladding @ Field Joints Aluminum Outer Cladding @ Bends Required Insulation Testing Field Insul. Quality Control / Quality Assurance High Temp. RTV Sealant at Insul. Cladding Seams - Field Self-adhesive Electric Trace Labels for Pipe Cladding Schedule Delivery of Pipe Spools to Meet Construction Needs Freight, Shipment and Logistical Support of Pipe Spools to Location SEET Pre-commissioning Fiber Optic DTS Pre-commissioning Start-up Assistance (sulphur introduction) SEET Operations & Maintenance Training Fiber Optic Operations & Maintenance Training Sulphur Re-melt Test SEET and Fiber Optic O&M Manuals D D D

D D D

S S

Pre-Commissioning & Startup (per Daily Rates) D D D D D D D

S S S S S S S D

Thermally Isolated Pipe Supports & Anchors Pipe Support Specifications Pipe Support vs. Insulation Deflection Load Testing Thermally Isolated Pipe Support Design

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Company Confidential - DO NOT COPY

GASCO

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

LEGEND: D = DESIGN S = SUPPLY I = INSTALL

TYCO THERMAL CONTROLS


PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR D/S/I D/S/I D/S/I D/S/I D/S/I D/S/I D/S/I D/S/I D/S/I D/S S S Page 14 of 47

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

& Supply 4 G 1 2 3 4 5 6 7 8 H 1 2 3 4 I 1 2 3 J 1 2 3 Freight & Shipping - SEET Materials and Equipment Export packaging and crating Freight to jobsite D Thermally Isolated Pipe Anchor Design & Supply Auxiliary Items Substation Buildings All Civil Work Non-SEET Electrical Equipment Heating for Non-SEET items Power Supply to SEET Transformers Power Supply to F.O. DTS Fiber Communication between F.O. DTS Stations along Pipeline Communication / Control Wiring Between DCS and SEET Panels SEET Home Office Support Project Management Project Controls - Cost & Scheduling Status RE/Porting Material & Equipment Logistical Support D D D D S S S S

SEET / F.O. Construction Quality Assurance Inspection Preparation of SEET / F.O. Quality Control Program SEET / F.O. Quality Assurance D S Inspection (per Daily Rates)

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Company Confidential - DO NOT COPY

GASCO

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

C. Bill Of Materials for E/P projects Below is a preliminary Bill of Materials to be supplied by TYCO for the project; this will be finalized upon completion of engineering design of the SEET and Fiber Optic systems. This Bill of Materials is the quantitative basis for TYCOs commercial offering. TABLE 6 Preliminary Bill of Materials for SEET System QTY UNIT ITEM / DESCRIPTION

1) SEET System:
151,600 12,404 12,404 2,486 305 64 64 64 1 75,800 2,000 1,242 112 6,202 6,202 3 32 32 192 3,200 4,800 14,400 32 3 4 2 1 meter each each each each each each each lot meter meter each each each each each each each each meter meter meter circuits DTS units pipelines sessions lot SEET Wire, 250C, 2500V SEET Coupling, 1" SEET Heat Tube Guide, 1" SEET Pull Box, 1" SEET Wire Splice Kits SEET Power Connection Box, 316 S.S. SEET Transition Box, 316 S.S. SEET End Termination Box, 316 S.S. SEET Accessories (Tools for Construction) Fiber Optic Sensing Cable Fiber Optic Transit Cable Fiber Optic Pull Box, 1" Fiber Optic Cable Splice Box, 316 S.S. Fiber Optic Tube Coupling, 1" Fiber Optic Tube Guide, 1" Fiber Optic DTS Unit in Free-standing Cabinet SEET Transformer, 450kVA, Scott-T, Oil-filled SEET Switchgear & Control Panel w/ PLC SEET RTD temperature Sensor SEET Transformer to Panel Power Cabling SEET Panel to Connection Box Power Cabling SEET Control (RTD) Cabling SEET Pre-commissioning Fiber Optic DTS Pre-commissioning Start-up Assistance (Sulphur introduction) SEET & Fiber Optic Operations & Maintenance Training SEET / FO Installation & Testing Tools

2) F.O. Temp. Monitoring System:

3) SEET Electrical Equipment:

4) SEET & F.O. Pre-commissioning, Start-up & Training: (Per Daily Rates)

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

QTY
1

UNIT
lot

ITEM / DESCRIPTION
Spare Parts for Commissioning/Start-up and 2-yr. Operations

5) Engineering (preliminary):
1 2 2 1 1 1 1 1 1 N/A N/A 32 400 160 320 96 50 12 20 50 32 10 1 1 ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea Master Document Register (MDR) FEA Analysis Transient FEA Analysis Heat Loss Calculation RE/Port Thermal Insulation Optimization RE/Port Heat-up/Cool-down Calculation RE/Port Re-melt Analysis and Re-melt Procedure RE/Port Re-melt Test Run Procedure SEET Calculation RE/Port Pipe Spool Details Pipe Spool Layout Drawings Single Line Diagrams SEET Zone Drawing Fiber Optic Zone Drawings Panel Drawings Transformer Drawings Power Distribution & Controls Drawings Electrical Details Fiber Optic DTS Cabinet Drawings General Drawing and Details (Schedules, Block Diagrams, etc.) SEET Control Panel PLC Configuration & IO Table SEET & FO Operation & Maintenance Manual SEET & FO Project Bill of Materials SEET & FO Spare-Parts List (Commissioning & 2-yr Operations)

TABLE 7 Pre-insulated Pipe Bill of Materials for E/P Offerings QTY UNIT ITEM / DESCRIPTION

1) SEET Prefabricated & Pre-insulated Pipe:


0 0 151,600 75,800 meter meter meter meter SEET 1" Heat Tube, (supplied by others) FO 1" Tube, (supplied by others) SEET 1" Heat Tube Welding - Shop FO 1" Tube Welding - Shop

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

QTY
2,456 1,308 28,800 47,000 0 0 2,400 3,920 0 0 28,800 47,000

UNIT
each each meter meter each each each each each each meter meter

ITEM / DESCRIPTION
SEET Pull Box / Power Conn. Box / Term. Box Welding - Shop FO Pull & Splice Box Welding - Shop 8" Pipe, Thermal Insulation w/ Polymer Jacket - Shop 12" Pipe, Thermal Insulation w/ Polymer Jacket - Shop SEET 1" Heat Tube Welding - Field Joints FO 1" Tube Welding - Field Joints 8" Pipe, Thermal Insulation w/ Polymer Jacket - Field Joints 12" Pipe, Thermal Insulation w/ Polymer Jacket - Field Joints 8" Pipe, Thermal Insulation w/ Polymer Jacket - Elbows 12" Pipe, Thermal Insulation w/ Polymer Jacket - Elbows 8" Pipe, Aluminum Outer Jacket - Field 12" Pipe, Aluminum Outer Jacket - Field

NOTE: Carrier pipe and heat tube and FO tube is supplied by others.

D. Engineering The engineering deliverables listed previously should be considered preliminary and are based on TYCOs past experience for a SEET system utilizing pre-insulated piping. A final Master Documents Register will be prepared once TYCOs project role is established and prior to final contract signing with CONTRACTOR. E. Scope Of Supply Matrix For EPC Proposals The following matrix describes in detail the responsibilities by TYCO in our EPC commercial bids. Table 8 Detailed Scope of Supply Matrix for EPC Offerings
LEGEND: D = DESIGN S = SUPPLY I = INSTALL TYCO THERMAL CONTROLS
PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

A 1 2 3 4

Engineering SEET Design Engineering SEET Specifications SEET Thermal Insulation Specifications Fiber Optic (F.O.) Design Engineering

D D D D Page 17 of 47

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Company Confidential - DO NOT COPY

GASCO

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

LEGEND: D = DESIGN S = SUPPLY I = INSTALL

TYCO THERMAL CONTROLS


PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR D D D S I S/I

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

5 6 7 8 9 10 11 12 13 14 15 16 B 1 2 3 4 5 6 7 8 9 10 11 12 13 14

F.O. Specifications SEET Equipment Specifications Finite Element Analysis (FEA) Transient Finite Element Analysis Sulphur Heatup / Cooldown / Remelt Calculations SEET Sulphur Remelt Procedure for Operations Sulphur Pipeline Design Sulphur Pipeline grounding design Sulphur Pipe Stress Analysis, (incl. deflections) Insulation Recommendations at High Movement Locations SEET & FO Tube Welding Spec. SEET Pipe Spool Fabrication Drawings SEET System & Equipment SEET 1" Heat Tube Supply (for Sulphur pipeline) SEET Power Connection / End Boxes SEET Transition Boxes for Power Wiring to P.C. Boxes SEET Pull/Splice Boxes SEET 1" Tube Couplings / Guides - Field Welded @ Pipe Joints Low Pressure Air Testing of Welded 1" SEET Tube at Site SEET RTD Temperature Sensor SEET Wire between SEET Panel & Power Connections on Pipe SEET RTD Wire between SEET Panel & RTDs on Pipe SEET Wire Splice Kits SEET Transformers, Scott-T, Oil-filled - set equipment SEET Switchgear & Control Panels w/ PLC - set equipment Interconnect Wiring between SEET Transformer & Panel Hardware For Wire Terminations (cable glands)

D D D D D D

D D D

D D D D D D D D D D D D D D S S S S S S S S I I I I I I I I S S S S I

I I

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Company Confidential - DO NOT COPY

GASCO

Page 18 of 47

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

LEGEND: D = DESIGN S = SUPPLY I = INSTALL

TYCO THERMAL CONTROLS


PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR D/S/I D/S/I S I S/I D/S/I D/S/I D/S/I D/S/I S Not incl. D S/I D D/S/I D/S/I D/S/I D/S/I I S S/I S/I

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

15 16 C 1 2 3 4 5 6 7 8 9 10 11 12 13 D 1 2 3 4 5 6 7 8 9 10 11

Interconnecting Communications to DCS Indoor Location for SEET Control Panels FO Temperature Monitoring System Fiber Optic 1" Tube Supply (for Sulphur pipeline) Fiber Optic Pull Boxes Fiber Optic 1" Tube Coupling / Guides Field Welded @ Pipe Joints Low Pressure Air Testing of Welded 1" F.O. Tube at Site Fiber Optic Sensing Cable on Pipeline Fiber Optic Transit Cable F.O. Transit Cable / Fiber Splice Box Fiber Optic DTS Cabinet - Set Panel Customized Graphical User Interface (GUI) for DTS Fiber Optic Strain Monitoring System Power to F.O. DTS Cabinet Indoor Location for DTS Cabinet Interconnecting Communications to DCS Pre-Fabricated Pipe for SEET Carrier Pipe - supply Carrier Pipe Bends and Elbows - supply Carrier Pipe End Preparation for Field Welds - bevel Carrier Pipe Surface Prep. / Painting - Shop Butt Welding of Carrier Pipe in Field Carrier Pipe Surface Prep. / Painting @ Joints - Field Carrier Pipe Non-destructive Testing Carrier Pipe Hydrotest SEET & F.O. Component Welding to Pipe in Shop - (see B & C above) Thermal Insulation w/ Polymer Jacket Shop SEET 1" Heat Tube Welding of Couplings @ Field Joints - Field

D D D D D D D D D S S S S S I I I I I S S

I I

D D

S/I

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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GASCO

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

LEGEND: D = DESIGN S = SUPPLY I = INSTALL

TYCO THERMAL CONTROLS


PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR S/I D/S/I D/S/I S/I D/S/I D/S/I S/I D/S/I D/S/I D/S/I

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

12 13 14 15 16 17 18 19 20 21 22 23 24 E 1 2 3 4 5 6 7 F 1 2 3 4 G

Fiber Optic 1" Tube Welding of Couplings @ Field Joints - Field Thermal Insulation @ Field Joints - Field Thermal Insulation @ Field Bends - Field Pre-Insulation (Shop) Quality Control / Quality Assurance Aluminum Outer Cladding - Straight Pipe Aluminum Outer Cladding @ Field Joints Aluminum Outer Cladding @ Bends Required Insulation Testing Field Insul. Quality Control / Quality Assurance High Temp. RTV Sealant at Insul. Cladding Seams - Field Self-adhesive Electric Trace Labels for Pipe Cladding Schedule Delivery of Pipe Spools to Meet Construction Needs Freight, Shipment and Logistical Support of Pipe Spools to Location

D D I S

D D D

I I

S S

I D/S/I D

Pre-Commissioning & Startup (per Daily Rates) SEET Pre-commissioning, D (included in L.S.) Fiber Optic DTS Pre-commissioning, D (included in L.S.) D Start-up Assistance (sulphur introduction) SEET Operations & Maintenance Training Fiber Optic Operations & Maintenance Training Sulphur Re-melt Test SEET and Fiber Optic O&M Manuals Thermally Isolated Pipe Supports & Anchors Pipe Support Specifications Pipe Support vs. Insulation Deflection Load Testing Thermally Isolated Pipe Support Design & Supply Thermally Isolated Pipe Anchor Design & Supply Auxiliary Items D D D D

S S S S S S S

I I

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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GASCO

Page 20 of 47

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

LEGEND: D = DESIGN S = SUPPLY I = INSTALL

TYCO THERMAL CONTROLS


PRE-INSULATED PIPE MFGR.

OTHER RESPONSIBLE PARTIES


EPC CONTRACTOR D/S/I D/S/I D/S/I D/S/I D/S/I D/S/I D/S/I D/S/I S S

INSTALL

SUPPLY

DESIGN

TASK (Description of Scope Item)

1 2 3 4 5 6 7 8 H 1 2 3 4 I 1 2 3 J 1 2 3

Substation Buildings All Civil Work Non-SEET Electrical Equipment Heating for Non-SEET items Power Supply to SEET Transformers Power Supply to F.O. DTS Fiber Communication between F.O. DTS Stations along Pipeline Communication / Control Wiring Between DCS and SEET Panels SEET Home Office Support Project Management Project Controls - Cost & Scheduling Status RE/Porting Material & Equipment Logistical Support D D D D S S S S

SEET/ F.O. Construction Quality Assurance Inspection Preparation of SEET / F.O. Quality Control D Program D SEET / F.O. Quality Assurance Inspection

S S

Freight & Shipping - SEET Materials and Equipment Export packaging and crating Freight to jobsite

F. Bill Of Materials for EPC projects Below is a preliminary Bill of Materials to be supplied by TYCO for the project; this will be finalized upon completion of engineering design of the SEET and Fiber Optic systems. This Bill of Materials is the quantitative basis for TYCOs commercial offerings.

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

TABLE 9 Preliminary Bill of Materials for SEET System QTY UNIT ITEM / DESCRIPTION

1) SEET System:
151,600 12,404 12,404 2,486 305 64 64 64 1 75,800 2,000 1,242 112 6,202 6,202 3 32 32 192 3,200 4,800 14,400 32 3 4 2 1 1 1 2 2 1 meter each each each each each each each lot meter meter each each each each each each each each meter meter meter circuits DTS units pipelines sessions lot lot ea ea ea ea SEET Wire, 250C, 2500V SEET Coupling, 1" SEET Heat Tube Guide, 1" SEET Pull Box, 1" SEET Wire Splice Kits SEET Power Connection Box, 316 S.S. SEET Transition Box, 316 S.S. SEET End Termination Box, 316 S.S. SEET Accessories (Tools for Construction) Fiber Optic Sensing Cable Fiber Optic Transit Cable Fiber Optic Pull Box, 1" Fiber Optic Cable Splice Box, 316 S.S. Fiber Optic Tube Coupling, 1" Fiber Optic Tube Guide, 1" Fiber Optic DTS Unit in Free-standing Cabinet SEET Transformer, 450kVA, Scott-T, Oil-filled SEET Switchgear & Control Panel w/ PLC SEET RTD temperature Sensor SEET Transformer to Panel Power Cabling SEET Panel to Connection Box Power Cabling SEET Control (RTD) Cabling SEET Pre-commissioning, (incl. in L.S.) Fiber Optic DTS Pre-commissioning, (incl. in L.S.) Start-up Assistance (Sulphur introduction) SEET & Fiber Optic Operations & Maintenance Training SEET / FO Installation & Testing Tools Spare Parts for Commissioning/Start-up and 2-yr. Operations Master Document Register (MDR) FEA Analysis Transient FEA Analysis Heat Loss Calculation RE/Port
Page 22 of 47

2) F.O. Temp. Monitoring System:

3) SEET Electrical Equipment:

4) SEET & F.O. Pre-commissioning, Start-up & Training: (Per Daily Rates)

5) Engineering (preliminary):

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

QTY
1 1 1 1 1 100 400 32 400 160 320 96 50 12 20 50 32 10 1 1

UNIT
ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea

ITEM / DESCRIPTION
Thermal Insulation Optimization RE/Port Heat-up/Cool-down Calculation RE/Port Re-melt Analysis and Re-melt Procedure RE/Port Re-melt Test Run Procedure SEET Calculation RE/Port Pipe Spool Details Pipe Spool Layout Drawings Single Line Diagrams SEET Zone Drawing Fiber Optic Zone Drawings Panel Drawings Transformer Drawings Power Distribution & Controls Drawings Electrical Details Fiber Optic DTS Cabinet Drawings General Drawing and Details (Schedules, Block Diagrams, etc.) SEET Control Panel PLC Configuration & IO Table SEET & FO Operation & Maintenance Manual SEET & FO Project Bill of Materials SEET & FO Spare-Parts List (Commissioning & 2-yr Operations)

TABLE 10 Pre-insulated Pipe Bill of Materials for EPC Offerings QTY UNIT ITEM / DESCRIPTION

1) SEET Prefabricated & Pre-insulated Pipe:


0 0 151,600 75,800 2,456 1,308 28,800 47,000 0 0 2,400 meter meter meter meter each each meter meter each each each SEET 1" Heat Tube, (supplied by others) FO 1" Tube, (supplied by others) SEET 1" Heat Tube Welding - Shop FO 1" Tube Welding - Shop SEET Pull Box / Power Conn. Box / Term. Box Welding - Shop FO Pull & Splice Box Welding - Shop 8" Pipe, Thermal Insulation w/ Polymer Jacket - Shop 12" Pipe, Thermal Insulation w/ Polymer Jacket - Shop SEET 1" Heat Tube Welding - Field Joints FO 1" Tube Welding - Field Joints 8" Pipe, Thermal Insulation w/ Polymer Jacket - Field Joints

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

QTY
3,920 0 0 28,800 47,000

UNIT
each each each meter meter

ITEM / DESCRIPTION
12" Pipe, Thermal Insulation w/ Polymer Jacket - Field Joints 8" Pipe, Thermal Insulation w/ Polymer Jacket - Elbows 12" Pipe, Thermal Insulation w/ Polymer Jacket - Elbows 8" Pipe, Aluminum Outer Jacket - Field 12" Pipe, Aluminum Outer Jacket - Field

NOTE: Carrier pipe and heat tube and FO tube is supplied by others.

G. Engineering The engineering deliverables listed previously should be considered preliminary and are based on TYCOs past experience for a SEET system utilizing pre-insulated piping. A final Master Documents Register will be prepared once TYCOs project role is established and prior to final contract signing with CONTRACTOR. H. Spare Parts If desired, TYCO can supply Spare Parts for the SEET and FO systems. A price option to supply Recommended Spare Parts is included in TYCOs offering for the Bills of Material shown below: x Commissioning and Start-up x 2 years of Operation

TABLE 11 Recommended Spare Parts


QUANTITY Commissioning
500 1 1 0 0 2 500 0 0 2 0 0 0 2

2-yr Operation
1,000 2 8 2 2 2 1,000 400 2 2 1 1 2 8

UNIT
meter each each each each kit meter meter each each kit each kit each

ITEM / DESCRIPTION
SEET Wire, 250C, 2500V. SEET Pull Box SEET Wire Splice Kits SEET Power Connection Box, 316 S.S. SEET End Termination Box, 316 S.S. SEET Accessories Fiber Optic Sensing Cable Fiber Optic Transit Cable Fiber Optic Pull Box Fiber Optic Cable Splice Box, 316 S.S. Fiber Optic DTS Cabinet - Spare Kit SEET Transformer, 450kVA, Scott-T, Oil-filled SEET Switchgear & Control Panel - Spare Kit SEET RTD Temperature Sensor

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

4. PRE-INSULATED PIPE DESIGN & SUPPLY A. PermaPipe in Fujairah, UAE TYCO has entered into an exclusive agreement with Perma-Pipe, to supply pre-fabricated / preinsulated pipe spools to the Habshan Sulphur Pipelines project from their Fujairah plant in UAE. Located in Fujairah, UAE, Perma-Pipe has an established manufacturing facility that has completed many projects in the Middle East region, including the recently completed 35 km molten sulphur pipeline for the Common Sulphur Project in Ras Laffan, Qatar. Perma-Pipes close factory proximity to the project site will allow for faster delivery and less damage from transport due to the short haul distance. Activities which can take place in a factory setting for pre-fabricated / pre-insulated pipe spools include: 1. Welding of 1 SEET and FO tubes to carrier pipe 2. Surface preparation and painting 3. Pre-insulation 4. Application of HDPE outer protective cover 5. Schedule coordination / Spool Management 6. TYCO contract management of Perma-Pipe 7. TYCO factory Quality Assurance of manufacturing process to meet SEET design

B. Why Pre-Insulated Pipe? Transporting sulphur through insulated and heat traced pipelines is one of the most stringent heating applications due to the narrow temperature range at which the sulphur remains liquid in the desired viscosity range. 1. Quality Control In a pre-insulated system over 90% of the work is performed in a clean factory controlled environment. By performing the work indoors, the adverse effect of changing weather is eliminated. The pipe can be kept free of dirt and contamination to improve the product. The welding of the heat tubes and the fiber optics tube is performed by skilled technicians again under factory controlled conditions using jigs and fixtures to keep the tubes properly aligned and semi-automated welding machines to improve productivity. It is extremely important to have enough weld material to transfer the heat between the tubes and the pipe, but not too much heat input from welding to severely bend the pipe. PermaPipe has experience in how best to balance the heat input to minimize pipe bending and also how to straighten any pipe that has excessive bending before applying the insulation. The inner layer of perlite insulation requires precise cutting of pipe cover pieces to fit between the tubes. The tolerances of both the insulation and the tube location must be closely controlled for proper fit-up. This is done much better in a factory. It is also important to have tight fit-up between all joints in the perlite, so as not to transfer heat directly from the pipe to the foam insulation.

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Factory applied foam insulation is higher quality than field applied foam. PermaPipes factory uses automated machinery for spraying foam insulation. By controlling all aspects of the process results in foam with the best cell structure for both strength and heat transfer coefficient. In the factory, a thin seamless waterproof high density polyethylene (HDPE) vapor barrier can be extruded directly on the foam. This layer will insure that no moisture can ever penetrate to the foam. The 0.032 thick (0.8 mm) aluminum jacketing will be applied over the HDPE in the field. 2. Cost Since most of the work is performed indoors, efficiency is improved by eliminating variances in the weather. Cost is also reduced by having fixed work stations where the work is repeatable much like an assembly line. The automated foaming machine reduces both labor and material costs. Labor is reduced by the high throughput rate of the machine and material cost is minimized by controlling both the density and thickness of the foam. Finally, waste is reduced to an absolute minimum because scrap materials are recycled and reused. 3. Improves Project Schedule The high throughput that is possible in a factory environment also improves the schedule. PermaPipes Fujairah factory has two automated machines for applying foams and they can be run on two shifts. The processes of welding and insulating are faster in the factory, and throughput can be increased by adding additional work stations. By pre-insulating in the factory a substantial amount of field labor is removed from the project. This can mean that project completion risk is reduced.

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

5. CONSTRUCTION AND FIELD SERVICES A. Benefits of Single Source Accountability The SEET system is a very complex construction project. There are many components that contribute to its functionality. It is our experience that the heat management system (HMS) execution can be streamlined by utilizing an integrated approach to construction of these various components. Tyco Thermal Controls (TYCO) is keenly aware of all of the details and component inter-relationships of this Habshan Sulphur Project. By selecting TYCO to construct the SEET system, you gain an invaluable warranty, an experienced specialty contractor that has installed thousands of similar heating systems. If CONTRACTOR is seeking a Warm Pipe Warranty from TYCO for the sulphur pipeline heating system, we can offer an appropriate Scope of Supply to offer this type of Warranty see later section. By awarding the key integral HMS components to a single supplier, TYCO, the risk to the project is minimized. As the designer of the SEET and FO systems, TYCO knows intimately the complex synergy between the electrical, insulation and pipe support systems. It is critical that all components are designed, manufactured and installed in a manner that ultimately supports the performance criteria for the HMS. B. Coordination Between Suppliers / Subcontractors An expanded Scope of Supply by TYCO can eliminate the need for CONTRACTORs coordination and/or conflict resolution between multiple subcontractors and suppliers. For example, the design and supply of pre-insulated pipe in TYCOs Scope of Supply will require us to provide ample management and Quality oversight of the pre-insulation manufacturer to ensure that the mechanical contractors task of joining SEET heat tube and Fiber Optic (FO) tube field couplings will go smoothly. The benefit is that CONTRACTORs contractual interfaces are minimized, requiring less management of multiple subcontracts and subcontractors/suppliers. C. Turnkey EPC Offering The commercial offering herein by TYCO includes a full turnkey approach. The benefit to CONTRACTOR is the advantage of single source accountability and TYCOs Warm Pipe Warranty for the SEET system. D. Safety Safety Mission Statement Tyco Thermal Controls commitment to safe working practices is evidenced by our Environmental, Health & Safety Mission Statement: To Achieve World Class EH&S Performance. Safety First Culture One of the most important aspects of TYCOs construction services is our ability to perform the job safely. TYCOs Safety Program includes standard procedures and reporting, but it really starts with a safety culture in each of our employees, from superintendent down to the field hands. We have an outstanding safety record and have been recognized with various awards by numerous organizations over the years.
GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Company Confidential - DO NOT COPY

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Realizing that safety is, to a large extent, a state of mind, we feel that it is our obligation to create an atmosphere in which both management and workers perceive safety as an integral part of their work. Managers must aim to achieve safety as well as quality and productivity and workers must commit themselves to work for their own personal safety as well as for the safety of their fellow workers. TYCO firmly adheres to the following principles, namely, that:
x x x x

All accidents/injuries can be prevented. Management and employees together are responsible for maintaining safe working conditions and for preventing injuries. Working safely is as equally important as working efficiently and productively. It is the company's responsibility to commit the necessary resources to provide adequate job training and education, and a safe work environment.

TYCO will hold all levels of management, from top executive to first-line supervisor, accountable for the implementation of these principles of safe work performance. Safety Goal TYCO believes that all accidents are preventable. Our ZERO ACCIDENTS logo reinforces this message throughout our organization. Our target is to cause Zero Harm and achieve 100% success in: x x x Commitment to EH&S management from directors, managers, supervisors, and team leaders. Completion of Audits of on the job EH&S & quality performance from our supervisory, management and sales teams. Completion of TYCO Safe Systems of Work before work commences or changes Risk Assessments, JSAs, Permits, Training, Safe Work Plans, Method Statements and Ensure Worker Understanding. Correct Use of Personal Protective Equipment at all times. Use of Safe Work Procedures. Use of the Skills & Training received. Reporting and investigating of all and incidents and near-misses. Safe use & care of company vehicles, tools and equipment. Effective Communications of EH&S matters. Delivery of the EH&S & quality we promise to employees and customers Cause no harm to the environment

x x x x x x x x

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

E. Quality The ultimate performance of the SEET system is predicated on the installation of a system that matches the design criteria. It is a very complex, difficult heating project that requires the utmost diligence in terms of installation quality. The performance predictability of the heating system will depend largely on adherence to TYCOs design specifications and drawings. TYCO offers a wealth of experience installing skin effect heating systems. As such, we have developed detailed work processes to install reliable systems and to document quality at certain milestones of the construction process. Our Quality Program includes: x Highly qualified and experienced personnel x Proven Quality Plans & Procedures x Documentation O&M Manual, complete with as-built drawings and start-up test logs Construction Quality Assurance (CQA) Inspection The responsibility for Construction Quality Control rests with the installer of any system. As part of TYCOs scope of supply, we will develop a Construction Quality Plan, (including Quality signoff forms). TYCO will provide Quality Control and Quality Assurance Inspection during construction to verify that the installation activities are adhering to its Quality Plan. TYCO will monitor and report the status of the sign off forms and report any issues that may affect the quality of the project. For the manufacture of pre-insulated pipe, PermaPipe will be responsible for putting together a detailed Inspection Test Plan (ITP) outlining a series of tests conducted during manufacturing, including witness and hold points; (see Attachment 3 Preliminary ITP for Pre-manufacture of Pipe Spools). This is imperative to ensure the manufacture of pre-insulated pipe spools perform to the projects thermal and mechanical criteria. Similarly, for construction of the SEET system, it is the installing contractors responsibility to create an ITP, follow it, and keep the proper project documentation. As SEET system constructor, TYCO can reduce its overall cost of quality and offer a significant cost savings benefit to the project. By assigning single source accountability to TYCO, third party Quality Assurance requirements for the project would be reduced substantially by the fact that many contractor interfaces (work handoffs) are eliminated. This cost avoidance will result in a lower Total Installed Cost to the project, and should enhance project schedule. Much of the Quality Control (Q.C.) and Quality Assurance (Q.A.) during construction would occur simultaneously. The result is lower costs. Project Controls Another aspect of our Quality Program is TYCOs standard cost and schedule reporting. Our Project Controls systems are second to none, and we have received numerous compliments from our clients with regards to our project reporting procedures and deliverables. TYCO has included the necessary Project Controls for this project, both on-site and including home office support see discussion in later Section regarding Organizational Chart for Construction. Progress shall be maintained daily in the field using a Field Progress Database (FPD) that captures both quantities released and quantities installed. The database applies standard Rules of Credit to calculate earned progress. Earned quantities installed are then transferred weekly to the Progress and Productivity Analysis Report (PPA).

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

The Construction PPA reports both weekly and cumulative progress, productivity and manpower. The PPA is initially set up to include original estimated quantities and man-hours, as well as a planned work release schedule prior to mobilization. The PPA is then maintained on a weekly basis to include actual quantities installed and man-hours expended in order to analyze progress and productivity by project Work Breakdown Structure. Project schedules shall be created and maintained in accordance with customer requirements. Schedules are updated regularly and communicated as an integral component of change management to include typically a three-week look-ahead. In addition, a Cost Report shall be provided to the customer to communicate costs incurred to date and forecast changes as required, typically on a weekly or monthly basis. F. Construction Organizational Chart It is TYCOs intent to utilize a combination of skilled personnel from its Houston, Texas USA home office and from our TYCO affiliate offices located in Asia, Middle East and Europe. TYCO will employ experienced and qualified field supervisors, field engineers, project controls and quality control personnel to ensure the pipelines SEET system is installed correctly. Craft labor and helpers will be employed from the local labor pool, pending availability. Our EPC proposals have included the necessary personnel to supervise installation concurrently at multiple locations along the pipeline. Additionally, we will position one Coordinator in PermaPipes facility during their portion of the work. Refer to Attachment 5 Field Construction Organizational Chart. G. Preliminary Schedule / Manpower Planning Preliminary Baseline Schedule Preliminary project schedules for both E/P and EPC are included as Attachment 2 SEET Project Schedule. Because the overall project pipeline construction activities start and duration are not known, this is included for reference only. We have optimized our construction schedule to perform the outlined Scope of Work in the most cost-efficient manner. TYCO has planned its work on the basis that many of the SEET field activities for the pipeline work at the jobsite can occur concurrently. That is to say, TYCO will have an available work front for the duration of the project to minimize fluctuation in our manpower staffing. TYCOs schedule assumes: x 6 week mobilization x 12-month field construction period, including pre-commissioning x Continuous work front x 4 week demobilization At a later date, a more detailed assessment should be undertaken to integrate TYCOs work activities into the overall CONTRACTOR project schedule. In particular, it is important to understand CONTRACTORs planned rate of placement for the 12-inch pipe, in order to effectively schedule our work and deployment of personnel. TYCOs mobilization date to the jobsite will be dependent upon how much pipe CONTRACTOR can release to us each week, and how much backlog work must be waiting for us initially.

GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Preliminary Manpower Planning Based on the required man-hours, and assuming a 54-hour work week (six 9-hour days), we believe that our craft labor will peak at about 80 men. This is contingent on a continuous work front. H. Post-Construction Field Services Pre-Commissioning For the pre-commissioning phase of the GASCO project, TYCO will perform the programming, setup, and activation of the SEET and F.O. systems. Pre-commissioning deliverables include ascommissioned circuit reference readings and customized reports, based on individual customer or project needs. Pre-commissioning activities are performed on empty pipe; (i.e., no sulphur product in pipeline). The objective is to validate working aspects of electrical design and installation, and validate the thermal performance of installed pipeline insulation system. A high level summary of the steps accomplished during pre-commissioning include: 1. Review Quality Control records for the installation of the heat tube, wire and splices (wire & splice records include the dielectric test results. The wire and splice dielectric tests are required for review before energizing the system; the heat tube records may be reviewed at any time, but preferably before energizing the system for heat up. 2. A thorough inspection of the pipeline installation is performed. This includes a visual inspection of the entire pipeline, paying particular attention to the power connections, end terminations and RTDs. The purpose is to check insulation completion and integrity, heat sinks, grounding and electrical connection boxes. The power and end connection boxes should be opened for inspection of the connections. One or two splice boxes should be opened for inspection of the splices, if possible. 3. Inspection of the panel and transformer installation, including initial power up of the panel and verification of basic control functions. 4. Apply power to the heater, observing voltages and currents carefully. System currents should be within the range specified in the SEET design. Any transformer tap adjustments that may be required to obtain proper operating parameters are made at this time. 5. Allow the system to heat up, monitoring and logging performance. 6. Allow system to operate on automatic control overnight and log performance. TYCO has included all required SEET and F.O. pre-commissioning activities in its EPC Lump Sum price. Sulphur Re-melt Test Tyco Thermal Controls in conjunction with the EPC contractor will conduct a full Solidification and Re-melt Test Run after the SEET and Fiber Optic systems have been pre-commissioned. After sulphur is introduced into the line, there will be a pre-planned, methodical procedure to allow molten sulphur to solidify and then be re-melted. This is required by the project specifications to verify SEET system operational functionality.
GASCO Commercial - Combined Proposal Rev0 05Oct2010

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

The length of the pipeline for this test run shall be selected in association with TYCO. However, TYCO will have no responsibility to supply any materials for this Test Run which is to be conducted in conjunction with the CONTRACTOR. It is the CONTRACTORS responsibility to introduce sulphur into the line after all SEET and F.O. pre-commissioning tests are completed. TYCO, in association with CONTRACTOR, will direct the re-melt operation from the standpoint of SEET operational control. Major activities to be undertaken by the EPC contractor prior to the re-melt test run are given below: x Complete the final commissioning tests x Pre-heat pipeline to maintenance temperature till temperature is stabilized x Introduce sulphur into the pipeline at well above the minimum flow rates. x Stabilize the flow and check the pipeline temperature from DTS readings and from local control panel x Allow a minimum of two hours to stabilize sulphur temperature inside the pipeline. x Stop flow of sulphur in the pipeline and allow sulphur to reside inside the pipeline under stagnant condition x Switch off the SEET power to the segment of the pipeline selected for test run and allow sulphur to cool down below 119C and solidify x Start the re-melt program as detailed in the Re-melt Procedures and Strategy submitted as part of the engineering deliverables Since it is not possible to predict the timing or duration of this activity, TYCO has included Daily Rates (Attachment 5) for these services. Training for Operations & Maintenance Personnel Tyco Thermal Controls will prepare a training program to be held in conjunction with final precommissioning and turnover of the SEET system. The training sessions will include a combination of classroom and hands on training at the various SEET control panels. Training will also include the DTS (Distributed Temperature Sensing) system. There are many components and operating scenarios which must be properly understood for efficient operation of the SEET and Fiber Optic systems. Therefore, certain parts of the training would be conducted on a personalized level, to create a sense of familiarity with the operation of the system. Below are the main topics to be covered: x Heating system technology overview x SEET system x SEET control panels and transformers x Fiber Optic temperature sensing system TYCO will provide multimedia presentations using PowerPoint slides, training videos and occasional printed handouts. (Note: some of these materials may include proprietary information and cannot be left behind). If desired, a brief multiple choice exam can be administered at the end of each major training session; questions would cover key operational aspects and fundamental concepts presented in that session. Since neither the training activities nor the duration are known, TYCO has included Daily Rates (Attachment 4 Field Services Pricing) for these services.

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

6. SEET SYSTEM WARRANTY The type of heating system warranty offered by TYCO will depend on the scope of work undertaken by Tyco. A. Warranty for E/P scope of work For SEET System If Tycos scope of work is limited to design, engineering and supply of heating system components, Tyco will offer a Thermal Design Performance warranty. The exact scope and duration this warranty will be decided based on mutual agreement, after award of contract. B. Warranty for EPC scope of work For SEET System If Tycos scope of work includes design, engineering, supply and installation and commissioning of the SEET system, Tyco will offer their most comprehensive Warm Pipe Warranty for the sulphur pipelines covered under the contract. The details, including the duration of this warranty will be decided based on mutual agreement, after award of contract.

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

7. THERMALLY ISOLATED PIPE SUPPORTS DESIGN & SUPPLY A. Importance of Thermally Isolated Pipe Support to SEET System To optimize a Heat Management System for molten sulphur, a homogenous thermal profile is critical for performance. Firstly, this requires a high integrity and consistent insulation system. Secondly, it is imperative that any additional metal appurtenances in contact with the pipe wall are eliminated or minimized. Any additional metal contact represents a location for unwanted heat loss, commonly known as heat sinks. Heat sinks can be pipe flanges, valves, instruments or pipe supports. The SEET system is compromised when there is metal to metal contact between pipe wall and structural pipe support, (sleeper beam). This can be avoided by the design and implementation of thermally isolated pipe supports. B. What is a Thermally Isolated Pipe Support? A thermally isolated pipe support does not include any metal to metal contact with the pipe wall, as is found in conventional welded T-supports. It allows the piping thermal insulation system to continue across the support location without any change in cross section or thermal properties. The design of a support includes a curved supporting plate or cradle, rolled to the exact diameter as the O.D. (outer diameter) of the pre-insulated pipe spools. This vertical support occurs over approximately 120 degrees of the bottom of the pipe. With the proper insulation system, the cradle support can carry ample vertical and moderate lateral loads. An engineered slide plate assembly of Teflon and polished stainless steel allows the pipe to move easily when pipe growth occurs from heat-up and cool down of the line. One half of the assembly is shop welded to underside of the cradle pipe support and the other half is welded to the pipe sleeper beam in the field to create a slide plate. Similarly, there are pipe anchor points that require a thermally isolated engineering design. Because anchors must transfer significant axial loads from the pipeline to the sleeper beam support, the design is quite different and complex. Load transferring carbon steel lugs are welded to the pipe wall, and axial loads are transferred through a series of high density inserts within the thermal insulation cross section. These inserts prevent metal to metal contact, but provide the desired level of mechanical strength and thermal insulating characteristics to thermally isolate the pipe anchor.

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

C. Proper Pipe Support Design The design of the pipe supports is dependent on many factors, including: x Pipe stress analysis vertical, lateral and axial loadings x Expected axial pipe movement x Factor of Safety requirement x Clear distance between adjacent pipes x Width of sleeper beam When selecting pipe supports types it is also important to ensure that the pipe insulation cross section contains adequate mechanical strength (i.e., compressive strength) to support the maximum pipe loadings. For example, a combination of Expanded Perlite and Polyurethane Foam (PUF) insulation possess enough compressive strength to sufficiently transfer pipe loads through the insulation system to the steel pipe cradle base. Softer, flexible insulations exhibit much lower compressive strengths, and under the anticipated pipe loadings significant deformation of the insulation thickness could occur. This compromises the thermal insulations integrity and may also cause pipeline alignment issues. For this reason, TYCO believes strongly recommends the testing of actual pipe insulation systems in a cradle support. The bearing strength of the proposed insulation system cross section can be determined through empirical testing. This critical aspect of the project should not be left to chance, but should be intentionally designed to operate properly under all operating scenarios. TYCO would propose to conduct full scale testing of both the insulation system and pipe support designs in a 400,000 lb. mechanical press to verify performance is acceptable. Depending upon the final pipe stress analysis (by others), the following types of supports may be required: x x x x x Low load sliding supports High load sliding supports Low load laterally guided supports High load laterally guided supports Pipe anchor supports

TYCO can supply these to the project if desired after pipe stress analysis is completed and the loadings/displacements are known.

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

8. TECHNICAL CLARIFICATIONS / DEVIATIONS A. SEET / F.O. Systems 1. Supply of some SEET related materials would be supplied by others; see the Scope of Supply Matrix for E/P and EPC offerings in this proposal. (applicable to E/P and EPC) 2. Heat Management System includes all main sulphur pipelines. In-line block valves, instrumentation, or small diameter piping attached to the pipeline are not shown in the tender documents. Hence, no engineering design or materials are included for these items. (applicable to E/P and EPC) 3. TYCOs SEET design assumes thermally isolated pipe supports along sulphur pipelines. (applicable to E/P and EPC) 4. Maximum 250C heat tube temperature shown on tender document (SP-5264-X044-PL-007) is assumed to be a typographical error, as this operating condition will not exist and is not compatible with the other temperature data shown on the same document. (applicable to E/P and EPC) 5. Pipeline design and pipe stress analysis is by others. (applicable to E/P and EPC) 6. Solidification of sulphur in the pipeline and re-melt of solidified sulphur is an upset condition and all upset conditions will be managed by skilled operators, not an automated standard operation. (applicable to E/P and EPC) 7. SEET and F.O. system lengths and layout sketches (TYCO-HS-SK-01 and TYCO-HS-SK-02) depicted in Attachment 1 are preliminary and may vary during detailed design. (applicable to E/P and EPC) 8. SEET and FO guides and couplings will be installed and air tested by the EPC contractor. (applicable to E/P and EPC) 9. No Supervisory Monitoring and Control system (SMC) is included. SMC interface for SEET and Fiber Optics is by others. (applicable to E/P and EPC) 10. Fiber Optics distributed temperature monitoring is a stand-along system, and does not control SEET heating system. Fiber optics are not incorporated into the SEET control system configuration or part of control panels. (applicable to E/P and EPC) 11. One P.C. with software will be supplied for each DTS unit, three total. Fiber Optics system includes customized graphics for the GASCO assets and energization shutdown relays for shutdown of the plant DCS. (applicable to E/P and EPC) 12. Fiber Optic cable (fiber) splices are included. (applicable to E/P and EPC) 13. Fiber Optics strain monitoring is not included. (applicable to E/P and EPC) 14. A separate fiber optic based leak detection system is not considered as a part of the SEET system and not included in our proposal. (applicable to E/P and EPC) 15. TYCO has included the setting of major SEET and FO equipment in this proposal transformers, SEET control panels and FO DTS cabinets. Locations will be provided by the EPC contractor, including all civil work and concrete foundations. CONTRACTOR will provide lift equipment and operator, as required. (applicable to EPC only) 16. SEET transformers are assumed to be 50 meters or less distance from SEET control panels; TYCO will install and terminate power cables in cable tray or conduit supplied by others.

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Supply and installation of primary power to SEET transformer is by others. (applicable to EPC only) 17. Interconnect wiring between SEET control panels and SEET power connections / RTDs at pipe are assumed to be not longer than 75 meters each. TYCO will install and terminate power cables in cable tray or conduit supplied by others. (applicable to EPC only) 18. FO transit cable between DTS cabinet and Fiber Optic connections at pipe are assumed to be not longer than 75 m. each. TYCO will install and terminate FO cables in cable tray or conduit supplied by others. (applicable to E/P and EPC only) 19. SEET equipment may be different than shown on typical SEET substation drawings Ref: DW-1000-16-30-080 & DW-1000-16-30-082. (applicable to EPC) 20. Actual SEET transformer sizes and voltage levels shall be per TYCOs final design; these are preliminarily sized to be 450KVA. (applicable to E/P and EPC) 21. Factory Acceptance Testing is included for major equipment items SEET transformers; SEET control panels; F.O. (DTS) panels. (applicable to E/P and EPC) 22. Supply and installation of data highway (fiber backbone) is by others. (applicable to E/P and EPC) 23. No CFD (Computational Fluid Dynamics) flow analysis is included in this proposal. Simplifying assumptions can be made for a sulphur pipeline that preclude the need for CFD flow analysis; see GASCO # RP-5264-X044-PL-041 (Section 6.2.5.1 on page 17 of 54). (applicable to E/P and EPC) 24. Engineering is confined to TYCOs home office. However, this proposal does include time and expense for three persons travelling to CONTRACTORs office to attend a SEET engineering kickoff meeting, to last no longer than five days. Additional off-sites Engineering to be invoiced per Daily Rates included herein. (applicable to E/P and EPC) B. Field Insulation 1. Aluminum jacketing will be applied 100% in the field. Stucco embossed aluminum cladding with a thickness of 0.032 (0.8 mm) is included in this proposal. (Note: this is a variance to SP-5264X044-PL-007; Section 12.3.2 which states 1mm). (applicable to E/P and EPC) 2. Field Joint surface preparation and field coatings of carrier pipe and heat tubes shall be performed by CONTRACTOR. (applicable to E/P and EPC) 3. Proposal assumes that free and clear road access is available to all portions of the pipeline at all times. (applicable to EPC only) 4. The following items will be supplied by CONTRACTOR; (applicable to EPC only): o o o Scaffolding to perform elevated work at pipe bridges, etc. Facility to house fabrication equipment for insulation and metal jacketing Storage facilities for Field Joint insulation and aluminum jacketing materials

5. TYCO believes that an equivalent shrink sleeve is not required at the Field Joints; it is excluded in this proposal. (Ref: SP-5264-X044-PL-007; Section 17 Field Joints). (applicable to E/P and EPC)

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

6. TYCO believes that RTV sealant (caulk) is not required at metal jacketing seams for above ground pipelines and is therefore not included in this proposal. (applicable to E/P and EPC) C. Pre-insulated Pipe 1. This proposal assumes free issue of the carrier pipe to the PermaPipe Fujairah UAE factory. Pipe shall be supplied in double random lengths with the appropriate bevel. (applicable to E/P and EPC) 2. This proposal assumes free issue of 1 diameter heat and FO tube to the PermaPipe Fujairah UAE factory. Tube shall be supplied in double random lengths. (applicable to E/P and EPC) 3. Proposal includes supply of full length, double random manufactured pipe spools to the project; no cuts or partial lengths are included. (applicable to E/P and EPC) 4. This proposal does not include any fabrication or carrier pipe welding for expansion loops, as no pipeline design is included in the inquiry documents. These will be priced after receiving all relevant data and design details of pipeline from CONTRACTOR. (applicable to E/P and EPC) 5. CONTRACTOR will supply, free of cost, all offloading equipment (and labor) for manufactured pipe spools along pipeline or at designated jobsite laydown area(s). (applicable to E/P and EPC) 6. SEET pre-insulated pipe spool engineered drawings are not included in this proposal and shall be supplied by the EPC contractor in coordination with the pre-insulated factory procedures and details. (applicable to E/P only) 7. This proposal includes the continuous welding on one side of all three tubes, (SEET heat tubes and F.O. encasement tubes), to the carrier pipe segments. (applicable to E/P and EPC) 8. This proposal includes all TSA shop coatings as required per the specifications. (applicable to E/P and EPC) 9. This proposal does not include installation of pipeline drains and/or vents as no design or requirement was specified. These should be installed by the installing contractor at open joint sections. (applicable to E/P and EPC) 10. Field Joint surface preparation and field coatings shall be performed by CONTRACTOR. (applicable to E/P and EPC) 11. All types of pipe supports and guides are assumed to be supplied and installed by CONTRACTOR unless TYCO is contracted to supply these items as an additional option to the contract. (applicable to E/P and EPC) 12. Pipe anchors are assumed to be supplied and field installed by the CONTRACTOR; no shop welding of anchor plates (or other appurtenances) to pipe is included in this proposal. (applicable to E/P and EPC) 13. This proposal includes handling and stacking of the pre-insulated pipe on flat bed trucks supplied by the CONTRACTOR at the Fujairah facility. Proposal assumes 1,000 flatbed loads would be required for this project. (applicable to E/P and EPC) 14. The project insulation specification for liquid sulphur pipelines (SP-5264-X044-PL-007) has several areas that are in conflict or are not possible to comply with for an above ground sulphur pipeline. The paragraph numbers with comments are as follows; (applicable to E/P and EPC).
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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

a. 12. 2.1 Layer 1. For TYCOs Alternate #1 the 30 mm Nanogel thickness is not enough to reach the outside diameter of the SEET tubes. The OD of the tubes is 33.4 mm. This minor difference can be accommodated between the first and second layer to achieve the total required thickness of the combined two layers b. Table 4. This table requires a maximum flame and smoke rating of 75 for the polyurethane (PUF). No commercially available PUF is rated even close to these values. Since the finished system is covered with an aluminum jacket this rating should not be required. c. 12.3.3 Adhesives and Accessories. No adhesive is required on an above ground system with the specified insulation options. d. 13.4 Testing of Complete Thermal Insulation System. This paragraph requires testing in accordance with EN 253. The specified insulation options do not meet EN 253. EN 253 only applies to polyurethane foam systems where the foam is bonded to both the steel pipe and the HDPE jacket. e. 14 Procedure Qualification Testing. Again the testing in Table 7 for the insulation refers to EN 253. 15. Pre-insulation is to be stopped 0.25 meter from end of pipe; (Note: this is a variance to SP5264X044-PL-007; Section 12.3.2 which states 100 mm). (applicable to E/P and EPC)

D. General Construction (EPC offering for SEET) 1. TYCO assumes that all costs for housing and meals for Direct Field Labor (craft) will be provided by CONTRACTOR in the projects man camp, free of cost. (applicable to EPC only) 2. Proposal includes cost of travel, meals, and incidentals for project supervisory staff and professionals. Accommodations for the duration of TYCO involvement, and suitable to TYCO standards (or acceptable to TYCO), are to be provided by CONTRACTOR, free of cost. (applicable to EPC only) 3. The following will be supplied by CONTRACTOR; (applicable to EPC only): o o o o o o All concrete, trenching and civil work All site mechanical work, including welding Supply and installation of control buildings Offloading of materials at jobsite Site facilities TYCO office trailers (complete w/ utilities, phone line, fax line, etc.), storage/laydown facilities sanitary facilities; water, ice, Reliable internet connection

4. Proposal assumes 12 month field construction duration. (applicable to EPC only) 5. Proposal assumes one mobilization and one demobilization. (applicable to EPC only) 6. Proposal includes manual redlined as-built engineering drawings as a final construction deliverable. CAD as-built drawings can be supplied, if desired by CONTRACTOR. (applicable to EPC only)

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

E. Post-Construction Site Services 1. The following site activities are to be performed based on Daily Rates, as outlined in Attachment 4 Field Services Unit Rates: a. Pre-commissioning / System Turnover. (applicable to E/P only) b. Commissioning / Start-up. (applicable to E/P and EPC) c. Training. (applicable to E/P and EPC) d. Sulphur Re-melt Test. (applicable to E/P and EPC) 2. Sulphur Re-melt Test will be done in conjunction with CONTRACTORs start up program. The pipe segment length of the proposed test run shall be no more than one of the SEET system circuits. The test run shall be carried out on the 8 pipe. (applicable to E/P and EPC)

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

9. COMMERCIAL CLARIFICATIONS 1. TYCOs proposal is based in US dollars. 2. Execution of a Non-Disclosure Agreement between CONTRACTOR and Tyco Thermal Controls is a condition of acceptance of this Commercial Proposal. 3. In the absence of Terms and Conditions within the RFQ, Tyco Thermal Controls (TYCO) reserves the right to review and negotiate customers contractual terms and conditions or offer to provide TYCOs standard T&Cs for use on this project. Aspects of this proposal (including, but not limited to, pricing) may change based on the final, negotiated contract terms enacted between CONTRACTOR and Tyco Thermal Controls. 4. Pricing is based on the Bill of Materials developed from TYCOs preliminary SEET design and based on the pipe lengths given in the GASCO documents and Scope of Supply matrix in this commercial proposal. In the event of changes to the Scope of Work, (due to additional details and/or pipe routing), changes in quantities will be to CONTRACTORs account. 5. In the event CONTRACTOR desires to change the scope of supply or services presented in this commercial proposal, these changes shall be clearly marked and identified on the Scope of Supply Matrix in this proposal and agreed to by TYCO. A revised Scope of Supply Matrix will be issued by TYCO and a revised price bid will be submitted. 6. Terms of payment are Net 30 against a Schedule of Values with prior credit approval and through an irrevocable letter of credit issued by a bank acceptable to TYCO. 7. Proposal validity for acceptance is one hundred eighty (180) days. 8. The freight terms shall be EXW (Ex-Works per Incoterms 2000). Freight charges including export crating, packaging, duties, customs fee, etc. will be invoiced at cost plus 5% administrative fee. 9. All taxes, duties, tariffs, and any other transportation or importation-related expenses are not included. To the extent that these costs apply to this scope of product/service, they are assumed to be arranged for and paid for by CONTRACTOR. 10. All phases of the project will be billed as follows: 10% upon award, 10% upon mobilization, and the remainder 80% of the project per a progressed Schedule of Values, to be established upon contract award. For materials supplied, 90% of line item will be invoiced upon TYCOs submittal of shipping documentation. 11. TYCO assumes that CONTRACTOR will provide assistance and facilitation in the securing of visas and all governmental permits associated with TYCO ex-pats and DFL entering country.

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

10. PRICE BID A. Base Bid and Alternatives Lump Sum pricing for both E/P and EPC offerings are shown below based on the various thermal insulation options: Table 12 Pricing for E/P and EPC Offerings ITEM # Base Bid Alternate #1 Alternate #2 Alternate #3 Alternate #4 E/P or EPC E/P E/P E/P EPC EPC DESCRIPTION SEET / FO system w/ Pre-insulated Composite SEET / FO system w/ Multi-layer Factory Installed Nanogel SEET / FO system w/ Pre-insulated Hybrid Composite (PROPRIETARY) SEET / FO system w/ Pre-insulated Composite SEET / FO system w/ Pre-insulated Hybrid Composite (PROPRIETARY) PRICE (USD) $ 33,649,907.00 $ 48,698,945.00 $ 31,790,255.00 $ 40,776,589.00 $ 38,916,937.00

B. Other Products and Services Pricing for additional services and pipe supports, guides and anchors are shown below: Table 13 Pricing for Other Options ITEM 1 2 3 4 5 6 DESCRIPTION Recommended Spare Parts Thermally Isolated Pipe Supports (Note 1) Pre-commissioning empty pipe (Note 2) Start-up / Commissioning full pipe Sulphur Re-melt Test Training $ PRICE 232,995.00 TBD Per Daily Rates Per Daily Rates Per Daily Rates Per Daily Rates

NOTES: 1. Pipe support design and pricing can be supplied by TYCO after formal pipe stress analysis is completed by others. 2. This activity is included in Alternate #3 and #4 EPC Lump Sum pricing.

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Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Attachment 1
SEET System Layout Sketches

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DTS No.

DTS Location SEET No.

Channel No. Panel Location Line

Line

SEET Length [m]

LEGEND:
SCP: SEET CONTROL PANEL ST: SEET TRANSFORMER DTS: FO DISTRIBUTED TEMPERATURE SENSOR : 8" SULPHUR PIPELINE : SEET HEATER : FIBER OPTIC CABLE
PC E

DTS HS 3 SEET Substation HS14 02 SEET Substation HS14 03 SEET Substation HS14 04 SEET Substation HS14 05 8" Habshan14 PRIM 8" Habshan14 SEC 11 kV, 3 SEET Substation HS14 06 4800 4800 4800 8" Habshan14 SEC 4800 8" Habshan14 PRIM 4800 8" Habshan14 SEC

SEET Substation HS14 03

FO DTSHS3 P1 FO DTSHS3 P2 FO DTSHS3 S1 FO DTSHS3 S2 SEET Substation HS14 01 4800 8" Habshan14 PRIM

8" Habshan14 PRIM 8" Habshan14 PRIM 8" Habshan14 SEC 8" Habshan14 SEC

SEET HS14 01A SEET HS14 01B SEET HS14 02A SEET HS14 02B SEET HS14 03A SEET HS14 03B SEET HS14 04A SEET HS14 04B SEET HS14 05A SEET HS14 05B SEET HS14 06A SEET HS14 06B 11 kV, 3

11 kV, 3

: SEET POWER CONNECTION BOX : SEET END TERMINATION BOX


RTD

By Others ST HS14 03A


450 kVA, Scott T 450 kVA, Scott T

ST HS14 01A

ST HS14 05A : RTD TEMP. SENSOR


FO

By SEET Vendor

450 kVA, Scott T

: FIBER OPTIC SPLICE BOX

SCP HS14 01A (S.S. HS14 01)

(S.S. HS14 03) DTS HS 3 SCP HS14 03A

SCP HS14 05A (S.S. HS14 05)

(Typ. 3)

(Typ. 3) RTD

RTD (Typ. 3) RTD E E


FO FO

RTD (Typ. 3) PC PC E 2400m E 2400m

(Typ. 3) RTD

RTD (Typ. 3) PC PC 2400m E

2400m

PC

PC

2400m

2400m

HABSHAN 14
E E 2400m
(Typ. 3) RTD

E 2400m RTD (Typ. 3)

2400m

PC

PC PC E

2400m

PC

2400m
(Typ. 3) RTD

PC

PC RTD (Typ. 3)

2400m

HABSHAN 5

(Typ. 3) RTD

RTD (Typ. 3)

FOR INFORMATION ONLY NOTES:


SCP HS14 03B (S.S. HS14 03) SCP HS14 05B (S.S. HS14 05) 1) SEET AND FO LAYOUT IS TYPICAL FOR TWO PIPELINES (PRIMARY AND SECONDARY). 2) SEET CIRCUIT & FO CHANNEL LENGTHS ARE PRELIMINARY AND MAY VARY DURING DETAIL DESIGN. ST HS14 05B
450 kVA, Scott T

SCP HS14 01B (S.S. HS14 01)

By SEET Vendor

ST HS14 01B

ST HS14 03B
450 kVA, Scott T

450 kVA, Scott T

By Others 11 kV, 3 11 kV, 3

HABSHAN 1 4 TO HABSHAN 5 SULPHUR PIPELINE SEET AND FIBER OPTIC LAYOUT SKETCH GASCO SHR HABSHAN PROJECT TTC HS SK 01

11 kV, 3

DTS No. SEET Substation HS5 01 SEET Substation HS5 02 SEET Substation HS5 03 SEET Substation HS5 04 SEET Substation HS5 05 SEET Substation HS5 06 SEET Substation HS5 07 SEET Substation HS5 08 SEET Substation HS5 09 SEET Substation HS5 10 11 kV, 3 11 kV, 3 4700 12" Habshan5 SEC 11 kV, 3 4700 12" Habshan5 PRIM 4700 12" Habshan5 SEC 4700 12" Habshan5 PRIM 4700 12" Habshan5 SEC 4700 12" Habshan5 PRIM 4700 12" Habshan5 SEC 4700 12" Habshan5 PRIM 4700 12" Habshan5 SEC 4700 12" Habshan5 PRIM

DTS Location SEET No.

Channel No. Panel Location Line

Line

SEET Length [m]

LEGEND:
SCP: SEET CONTROL PANEL ST: SEET TRANSFORMER DTS: FO DISTRIBUTED TEMPERATURE SENSOR : 12" SULPHUR PIPELINE : SEET HEATER : FIBER OPTIC CABLE
PC E RTD
FO

DTS HS 1

Habshan Station

DTS HS 2

SEET Substation HS5 03

FO DTSHS1 P1 FO DTSHS1 S1 FO DTSHS2 P1 FO DTSHS2 P2 FO DTSHS2 S1 FO DTSHS2 S2

12" Habshan5 PRIM 12" Habshan5 SEC 12" Habshan5 PRIM 12" Habshan5 PRIM 12" Habshan5 SEC 12" Habshan5 SEC

: SEET POWER CONNECTION BOX : SEET END TERMINATION BOX : RTD TEMP. SENSOR : FIBER OPTIC SPLICE BOX

SEET HS5 01A SEET HS5 01B SEET HS5 02A SEET HS5 02B SEET HS5 03A SEET HS5 03B SEET HS5 04A SEET HS5 04B SEET HS5 05A SEET HS5 05B SEET HS5 06A SEET HS5 06B SEET HS5 07A SEET HS5 07B SEET HS5 08A SEET HS5 08B SEET HS5 09A SEET HS5 09B SEET HS5 10A SEET HS5 10B 11 kV, 3

11 kV, 3

By others ST HS5 03A


450 kVA, Scott T 450 kVA, Scott T 450 kVA, Scott T

ST HS5 01A

ST HS5 05A

ST HS5 07A

ST HS5 09A
450 kVA, Scott T

By SEET Vendor

450 kVA, Scott T

SCP HS5 01A ( ) (S.S. HS5 01)

(S.S. HS5 03) DTS HS 2 SCP HS5 03A

SCP HS5 05A ( ) (S.S. HS5 05)

SCP HS5 07A ( ) (S.S. HS5 07)

SCP HS5 09A ( ) (S.S. HS5 09)

(Typ. 3)

DTS HS 2
RTD (Typ. 3)
(Typ. 3) RTD

DTS HS 1
(Typ. 3) RTD

(Typ. 3) RTD

RTD (Typ. 3) PC PC E PC E 2350m E PC E 2350m 2350m 2350m

RTD

RTD (Typ. 3)

RTD (Typ. 3) PC PC 2350m E E

(Typ. 3) RTD

RTD (Typ. 3) 2350m PC PC 2350m E


FO

2350m

PC

PC

2350m

2350m

HABSHAN 5
PC 2350m RTD (Typ. 3)
(Typ. 3) RTD

FO

FO

E 2350m RTD (Typ. 3) 2350m

2350m

PC

PC E PC E

2350m

E PC PC

2350m

2350m
(Typ. 3) RTD

PC

PC RTD (Typ. 3)

2350m

2350m
(Typ. 3) RTD

PC

PC RTD (Typ. 3)

2350m

DTS HS 1 HABSHAN STATION

(Typ. 3) RTD

RTD (Typ. 3)

(Typ. 3) RTD

ISSUED FOR INFORMATION ONLY NOTES:


SCP HS5 03B (S.S. (S S HS5 03) SCP HS5 05B (S.S. (S S HS5 05) SCP HS5 07B (S.S. (S S HS5 07) SCP HS5 09B (S.S. (S S HS5 09) 1) SEET AND FO LAYOUT IS TYPICAL FOR TWO PIPELINES (PRIMARY AND SECONDARY). 2) SEET CIRCUIT & FO CHANNEL LENGTHS ARE PRELIMINARY AND MAY VARY DURING DETAIL DESIGN. ST HS5 07B
450 kVA, Scott T

SCP HS5 01B (S.S. (S S HS5 01)

By SEET Vendor
450 kVA, Scott T

ST HS5 01B

ST HS5 03B

ST HS5 05B
450 kVA, Scott T

ST HS5 09B
450 kVA, Scott T

450 kVA, Scott T

By Others 11 kV, 3 11 kV, 3 11 kV, 3 11 kV, 3

HABSHAN 5 TO STATION SULPHUR PIPELINE SEET AND FIBER OPTIC LAYOUT SKETCH GASCO SHR HABSHAN PROJECT TTC HS SK 02

11 kV, 3

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Attachment 2
SEET Preliminary Project Schedules

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Page 44 of 47

Company Confidential - DO NOT COPY

GASCO SEET E/P Only - Habshan Sulphur Pipelines Finish Duration (Weeks)

05-Oct-10 16:45

Activity ID

Activity Name

Start

2011 2012 2013 2014 c Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

GASCO SEET E/P Only - Habshan Sulphur Pi... S A1000 Notification of Contract Award 0 31-Oct-11 31-Oct-11 30-Aug-11 30-Mar-11 29-Jul-11 31-Aug-11 30-Mar-12 30-Nov-11 30-Dec-11 31-Oct-11 30-Mar-12 31-Jul-12 08-Jul-11 31-Aug-11 23-May-12 21-Jun-12 31-Jul-12 31-Jan-13 01-May-12 31-Jul-12 30-Nov-12 30-Jul-12 30-Nov-12 28-Aug-12 31-Jan-13 27-Jun-13 29-Mar-13 29-Mar-13 30-May-13 30-May-13 10-May-13 03-May-13 27-Jun-13
Summary WBS Summary Activity

03-Jan-11 43 43 17 13 22 30 44 26 31 17 30 75 20 26 48 43 57 57 9 30 31 30 31 17 48 21 8 8 9 9 6 5 4
Page 1 of 1 Primavera Systems, Inc.

27-Jun-13 Engineering

130

GASCO SEET E/P Only - H

03-Jan-11

Engineering Enginee

03-Jan-11

A1010 SEET Design / F.O. Design

03-Jan-11

A1020 Equipment Specifications A1030 Finite Element Analysis

02-May-11 03-Jan-11

A1040 Other Studies SEET Equipment Procurement

01-Mar-11

A1050 IFC Pipe Spool Drawings

01-Feb-11

SEET Eq Equipment Procurement

01-Jun-11

A2000 SEET Transformers A2010 SEET Control Panel

01-Jun-11 01-Jun-11

A2020 Fiber Optic Cable

01-Jul-11

A2030 Fiber Optic DTS

01-Sep-11

Pre-Insulated Pipe Production / Pipe Supports Pre-Insu

21-Feb-11

Pre-Insulated Pipe P duction / Pipe Supports re-In a d p Production t i p r

A3000 Carrier Pipe Procurement

21-Feb-11

A3010 Raw Materials Procurement A3020 Pre-Insulated Pipe Production

01-Mar-11 23-Jun-11

A3030 Spool Delivery

24-Aug-11

A3040 Pipe Supports

01-Jul-11

SEET Construction Co

03-Jan-12

SEET Construction E T Co t

A4000 Mobilization

01-Mar-12

A4010 Heat tube coupling welding (by others) 03-Jan-12 A4020 SEET Wire Installation 01-May-12

A4030 F.O. tube coupling welding (by others)

03-Jan-12

A4040 F.O. Cable Installation

01-May-12

A4050 SEET Equipment Installation

30-Apr-12

A4060 Field Joint Insulation

Startup and Commissioning

01-Mar-12 01-Feb-13

Startup and Commissioning

A5000 SEET System Pre-commissioning

01-Feb-13

A5010 Fiber Optic System Pre-commissioni...

01-Feb-13

A5020 SEET Site Acceptance Test

01-Apr-13

A5030 Fiber Optic Site Acceptance Test

01-Apr-13

A5040 Sulphur Re-melt Test A5050 Operator Training

01-Apr-13 01-Apr-13

A5060 Demobilization

30-May-13

Remaining Level of Effort

Actual Work

Critical Remaining Work

Project Start: 03-Jan-11 Finish: 27-Jun-13 Data Date: 03-Jan-11

Actual Level of Effort

Remaining Work

Milestone

GASCO SEET EPC - Habshan Sulphur Pipelines Finish 2011 2012 2013 c Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Duration (Weeks)

28-Sep-10 16:59

Activity ID

Activity Name

Start

Jul Aug Sep Oct

GASCO SEET EPC - Habshan Sulphur Pipeli... S A1000 Notification of Contract Award 0 31-Oct-11 31-Oct-11 30-Aug-11 30-Mar-11 29-Jul-11 31-Aug-11 30-Mar-12 30-Nov-11 30-Dec-11 31-Oct-11 30-Mar-12 23-May-12 0 22-Aug-11 09-Feb-12 23-May-12 29-Dec-11 13-Nov-12 24-Jan-12 10-May-12 02-Oct-12 10-May-12 02-Oct-12 28-Aug-12 13-Nov-12 20-Feb-13 12-Dec-12 12-Dec-12 23-Jan-13 23-Jan-13 23-Jan-13 16-Jan-13 20-Feb-13
Summary WBS Summary Activity

03-Jan-11 43 43 17 13 22 30 44 26 31 17 30 56 16 32 38 26 57 6 30 36 30 36 17 38 18 8 8 6 6 6 5 4
Page 1 of 1 Primavera Systems, Inc.

20-Feb-13 Engineering

112

GASCO SEET EPC - Habshan

03-Jan-11

Engineering Enginee

03-Jan-11

A1010 SEET Design / F.O. Design

03-Jan-11

A1020 Equipment Specifications A1030 Finite Element Analysis

02-May-11 03-Jan-11

A1040 Other Studies SEET Equipment Procurement

01-Mar-11

A1050 IFC Pipe Spool Drawings

01-Feb-11

SEET Eq Equipment Procurement

01-Jun-11

A2000 SEET Transformers A2010 SEET Control Panel

01-Jun-11 01-Jun-11

A2020 Fiber Optic Cable

01-Jul-11

A2030 Fiber Optic DTS

01-Sep-11

Pre-Insulated Pipe Production / Pipe Supports Pre-Insu

02-May-11

Pre-Insulated Pipe Production / Pipe Supports

A3000 Carrier Pipe Delivery (by others)

01-Jul-11

A3010 Raw Materials Procurement A3020 Pre-Insulated Pipe Production

02-May-11 01-Jul-11

A3030 Spool Delivery

01-Sep-11

A3040 Pipe Supports

01-Jul-11

SEET Co Construction

14-Oct-11

SEET Construction

A4000 Mobilization

13-Dec-11

A4010 Heat tube coupling welding (by others) A4020 SEET Wire Installation

14-Oct-11 24-Jan-12

A4030 F.O. tube coupling welding (by others)

14-Oct-11

A4040 F.O. Cable Installation

24-Jan-12

A4050 SEET Equipment Installation

30-Apr-12

A4060 Field Joint Insulation

Startup and Pre-commissioning

21-Feb-12 16-Oct-12

Startup and Commissioning

A5000 SEET System Pre-commissioning

16-Oct-12

A5010 Fiber Optic System Pre-commissioni...

16-Oct-12

A5020 SEET Site Acceptance Test

12-Dec-12

A5030 Fiber Optic Site Acceptance Test

12-Dec-12

A5040 Sulphur Re-melt Test

12-Dec-12

A5050 Operator Training

12-Dec-12

A5060 Demobilization

23-Jan-13

Remaining Level of Effort

Actual Work

Work by Others

Project Start: 03-Jan-11 Finish: 20-Feb-13 Data Date: 03-Jan-11

Actual Level of Effort

Remaining Work

Milestone

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Attachment 3
Inspection Test Plan for Pre-manufactured Pipe Spools

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Page 45 of 47

Company Confidential - DO NOT COPY

INSPECTION AND TEST PLAN FOR THERMAL INSULATION & JACKETING FOR LIQUID SULPHUR PIPE LINE SYSTEM

September 30, 2010 Issued for Comments Change / Revised Description

Revised sections under 4B2 & 4B3

DM DM Prepared By

RD RD Reviewed By

RD KK Approved By

September 04, 2010

Date

Revision

Title:

Last Updated:

ITP for Thermal Insulation & Jacketing for Liquid Sulphur Pipe Line System September 30, 2010 Rev. No.: 1

Ref. No.: Owner: Pages:

QAD-PLN-002-020-10-REV1 QHSE -1-

1. INTRODUCTION

The purpose of this Perma-Pipe document is to identify the work and the associated inspections, tests, and quality control to be performed by Perma-Pipe (PPME) & client from receipt of line pipe and fittings items through final product shipment. This ITP provides assurance that contract and specification requirements have been met.

2. ABBREVIATION
N/A OD PO PPME PU QA QC TDS Quality Control Technical Data Sheet Quality Assurance Polyurethane Perma-pipe Middle East Purchase Order Outside Diameter Not Applicable

ASTM

American Society for Testing of Materials

CCC

Closed Cell Content

CoC

Certificate of Conformity

HDPE / PE

High Density Polyethylene

ISO

Isocyanate

ITP

Inspection & Test Plan

k-Value

Thermal Conductivity Value

MSDS

Material Safety Data Sheet

MTC

Mill Test Certificate

C.S.

Customer specification : Thermal Insulation System for Liquid Sulphur Pipelines Doc. No.: SP-5264-X044-PL-007 Rev. 0

3. DEFINITION

H - Hold

Do not proceed past hold point without PPME QC Inspectors or Clients Representatives inspection as applicable. Unless otherwise noted, 100% inspection is to be performed.

A Actual Inspection

Client representative to be notified. PPME QC Inspectors or Client Representatives inspection is required as applicable. 1: 100%; 2: 10%.

M - Monitor

Activity can proceed. PPME QC and Client Representative will maintain surveillance of process by observation or audit of the process.

R Document Review

In addition to any other quality or inspection activity, Perma and Client Representative will review the completeness and correctness of the documentation associated with the process. 1: 100%; 2: 10%.

W - Witness Title:

Witness ITP for Thermal Insulation & Jacketing for Liquid Sulphur Pipe Line System September 30, 2010 Rev. No.: 1 Ref. No.: Owner: Pages: QAD-PLN-002-020-10-REV1 QHSE -2-

Last Updated:

4. INSPECTION AND TEST PLAN


RESPONSIBILITIES PPME QC CLIENT

Sl. No.

Inspection/ Test Activity Acceptance Criteria

Performed By

Quality Characteristic Inspection/Test

Client Ref/ Perma-Pipe reference Verification Documents

4A
1. Visual Inspection of pipes and fittings. 2. Document Review. No physical damages Delivery Note from the supplier 1. Raw Material Inspection Report 2. Mill Test Certificate 1. Manufacturers Batch certificate 2. TDS 3. MSDS 4. Raw Material Inspection Report. 1. Manufacturers Batch certificate 2. TDS 3. MSDS 4. Raw Material Inspection Report. 1. PO requirements 2. C.S.: Doc. No. SP-5264X044-PL-007 Rev. 0 1. Manufacturers Batch certificate 2. TDS 3. MSDS 4. Raw Material Inspection Report. Ref. No.: ITP for Thermal Insulation & Jacketing for Liquid Sulphur Pipe Line System September 30, 2010 Rev. No.: 1 Owner: Pages:

RAW MATERIALS
A1/R1

4A.1

Receipt of Line pipes, heat and optical tubes

QC Inspector

4A.2

Receipt verification of PUR foam insulation materials

QC Inspector

1. Verify polyol and isocyanate bulk material conforms to requirements of PO and data sheets 2. Average density shall be 50kg/m3 Conformance of batch bulk manufacturers Batch Certificate 1. PO requirements 2. C.S.: Doc. No. SP-5264X044-PL-007 Rev. 0 1. Verify mineral wool conforms to PO and data sheets 2. Density shall be 168187 kg/m3 Conformance of Manufacturers Batch Certificate 1. PO requirements 2. C.S.: Doc. No. SP-5264X044-PL-007 Rev. 0

A1/R1

4A.3

Receipt verification of Mineral Wool

QC Inspector

A1/R1

4A.4

Receipt verification of Perlite insulation material

QC Inspector

1. Verify perlite material conforms to PO requirements and data sheets 2. Density shall be 160210 kg/m2.

Conformance to carton markings, contents, manufacturers CoC

A1/R1

Title:

QAD-PLN-002-020-10-REV1 QHSE -3-

Last Updated:

RESPONSIBILITIES PPME QC A1/R1 CLIENT

Sl. No.

Inspection/ Test Activity Acceptance Criteria

Performed By

Quality Characteristic Inspection/Test

Client Ref/ Perma-Pipe reference Verification Documents 1. PO requirements 2. C.S.: Doc. No. SP-5264X044-PL-007 Rev. 0 1. Manufacturers Batch certificate 2. TDS 3. MSDS 4. Raw Material Inspection Report.

4A.6

Receipt verification of HDPE / Aluminium external jacket materials Verify Aluminium sheet conform to the requirements

QC Inspector

Verify HDPE bulk material conforms to requirements of PO and data sheets

Conformance of shipping package marking, contents.

4B

THERMAL INSULATION & JACKETING

4B1 Check whether the pipes, heat and optical tubes are free from any damages during transit, any coating damages. Check for visible cleanliness and dryness Pipes shall be free of dirt, sand, oil, grease or water- otherwise cleaned Damages/cracks/gaps during transit to be filled with Perlite material No significant coating damages, no dents on the pipes and tubes. -

INNER LAYER OF PERLITE INSULATION & OUTER LAYER WITH POLYURETHANE FOAM (PUR) INSULATION M

4B1.1

Visual Inspection of incoming pipes, heat and optical tubes for any damages.

Insulation supervisor / QC Inspector

4B1.2

Visual inspection of incoming pipes for cleanliness

Insulation supervisor / QC Inspector Visual Inspection of Perlite

4B1.3

Inspection of perlite segments prior to installation

Insulation supervisor / QC Inspector

Perlite Fixing inspection Report

A1/R1

4B1.4

Installation inspection of perlite segments on pipes

Insulation supervisor / QC Inspector

C.S.: Doc. No. SP-5264-X044PL-007 Rev. 0 1. All gaps, seams, and openings (if any) filled with filler cement 2. For 8 pipeline system: Perlite Cross-sectional

1.Tight fit of perlite segments to pipe, with minimum gaps 2. Perlite thickness measurement.

Perlite Fixing inspection Report

A1/R1

Title:

ITP for Thermal Insulation & Jacketing for Liquid Sulphur Pipe Line System September 30, 2010 Rev. No.: 1

Ref. No.: Owner: Pages:

QAD-PLN-002-020-10-REV1 QHSE -4-

Last Updated:

RESPONSIBILITIES PPME QC CLIENT

Sl. No. thickness shall be 89mm. For 12 pipeline system: Perlite thickness shall be 64mm. Tight fit of aluminum tape to perlite without gaps or major wrinkles Perlite completely covered without gaps or major wrinkles A1/R1 Drawings

Inspection/ Test Activity Acceptance Criteria

Performed By

Quality Characteristic Inspection/Test

Client Ref/ Perma-Pipe reference Verification Documents

4B1.5

Wrap seran wrap and aluminum tape over perlite outer surfaces All activity mentioned above is completed Perlite Fixing Inspection Report

Insulation supervisor / QC Inspector

4B1.6

Release of Perlite applied pipes for PUR insulation

QC Inspector

Perlite Fixing Inspection Report

A1

4B2 Temp. Measurement Pipe surface Temperature shall be >30C above dew point. Visual and Dimensional acceptability PU thickness shall be as per product code mentioned in different options Foam density shall be 50 kg/m2.

POLYURETHANE FOAM (PUR) SPRAY INSULATION & PE JACKETING Process Inspection Report A1

4B2.1

Atmospheric Condition, twice/shift Witness spray of first pipe

QC Inspector

4B2.2

Witness PUR spraying on the pipes

QC Inspector

Process Inspection Report.

A1

4B2.3

Density Checking of PUR Spray sample taken before start up.

Prodn. Supervisor / QC Inspector

Check that the Density conforms to the requirement

PPME Test Procedure on Density. Test Method as per ASTM D 1622 / 792

Test Records

Title:

ITP for Thermal Insulation & Jacketing for Liquid Sulphur Pipe Line System September 30, 2010 Rev. No.: 1

Ref. No.: Owner: Pages:

QAD-PLN-002-020-10-REV1 QHSE -5-

Last Updated:

RESPONSIBILITIES PPME QC A1 CLIENT

Sl. No.

Inspection/ Test Activity Acceptance Criteria Density 50 kg/m3 PPME Test Procedure on Density. Test Method ASTM D 1622 / 792 PPME Test Procedure on Compressive strength. Test Method ASTM D 1621. PPME Test Procedure on Closed Cell Content. Test Method ASTM D 6226 PPME Test Procedure on Thermal Conductivity Test Method ASTM C 518 PPME Test Procedure on Water Absorption. Test Method BS EN 253 Water absorption < 10% Test Records Test Records

Performed By

Quality Characteristic Inspection/Test

Client Ref/ Perma-Pipe reference Verification Documents

4B2.4

Verify PUR spray foam properties once per shift

QC Inspector

Density of spray foam from any one pipe randomly selected, once per shift.

4B2.5
c 300

Verify PUR spray foam properties once per shift KPa.

QC Inspector

Compressive strength ( c) of spray foam from any one pipe randomly selected, once per shift.

A1

4B2.6

Verify PUR spray foam properties once per shift

QC Inspector

Closed cell content (CCC) of spray foam from any one pipe randomly selected, once per shift.

CCC 88 %

Test records

A1

4B2.7

Verify PUR spray foam properties once per shift

QC Inspector

Thermal Conductivity (kvalue) of spray foam from any one pipe randomly selected, once per shift.

k-value 0.023 W/m-K @ 23.50C

Test Records

A1

4B2.8

Verify PUR spray foam properties once per shift

QC Inspector

Water absorption of spray foam from any one pipe randomly selected, once per shift

Test Records

A1

Title:

ITP for Thermal Insulation & Jacketing for Liquid Sulphur Pipe Line System September 30, 2010 Rev. No.: 1

Ref. No.: Owner: Pages:

QAD-PLN-002-020-10-REV1 QHSE -6-

Last Updated:

RESPONSIBILITIES PPME QC A1 CLIENT

Sl. No.

Inspection/ Test Activity Acceptance Criteria

Performed By

Quality Characteristic Inspection/Test

Client Ref/ Perma-Pipe reference Verification Documents Process Inspection Report

4B2.9

Finish units after PUR spray.

Prodn. Supervisor / QC Inspector Check whether the thickness meets the requirement PU thickness shall be as follows For 8 pipeline system: 75 mm For 12 pipeline system: 60 mm C.S.: Doc. No. SP-5264-X044PL-007 Rev. 0 Cross-sectional Drawings Process Inspection Report.

Check the OD of the finished pipe measured by using a Pi-Tape

Final OD shall be as per the customer requirement

4B2.10

Apply PUR spray onto the pipes

QC Inspector

A1

4B2.11

Finish units after PU spray and extruded HDPE jacket application every pipe.

Prodn. Personnel

Cutback length cut and remove PU and PE excess.

Visual & Dimensional Inspection Report

A1/R1

4B3

INNER LAYER OF A COMBINATION OF PERLITE & MINERAL WOOL AND OUTER LAYER OF POLYURETHANE FOAM (PUR) INSULATION

Please refer to sections 4B1 for Perlite installation & 4B2 for PUR insulation except for thickness. Testing of PUR spray foam properties are as per 4B2.

4B3.1

Apply Mineral Wool above the tracer tubes upto th 3/4 of the pipe circumference 2. Ensure that the heat and optic tubes are covered

QC Inspector

1. Ensure tight fit of mineral wool onto the pipes

Mineral Wool thickness shall be as follows: For 8 pipeline system: 76 mm. For 12 pipe line system: 64 mm.

1. C.S.: Doc. No. SP-5264X044-PL-007 Rev. 0 2. Crosssectional Drawings

Inspection Report

Title:

ITP for Thermal Insulation & Jacketing for Liquid Sulphur Pipe Line System September 30, 2010 Rev. No.: 1

Ref. No.: Owner: Pages:

QAD-PLN-002-020-10-REV1 QHSE -7-

Last Updated:

RESPONSIBILITIES PPME QC A1/R1 CLIENT

Sl. No.

Inspection/ Test Activity Acceptance Criteria

Performed By

Quality Characteristic Inspection/Test

Client Ref/ Perma-Pipe reference Verification Documents 1. C.S.: Doc. No. SP-5264X044-PL-007 Rev. 0 2. Crosssectional Drawings Perlite Fixing inspection Report

4B3.2

Installation of perlite segments on the bottom side covering balance 1/4th of the pipe circumference

Insulation supervisor / QC Inspector

1.Tight fit of perlite segments to pipe, with minimum gaps 2. Perlite thickness measurement.

1. All gaps, seams, and openings filled with filler cement 2. For 8 pipeline system: Perlite thickness shall be 76mm. For 12 pipeline system: Perlite thickness shall be 64mm. Perlite completely covered without gaps or major wrinkles Cross-sectional Drawings

4B3.3

Wrap with seran wrap and aluminum tape over the mineral wool and perlite surfaces Check whether the thickness meets the requirement PU thickness shall be as follows For 8 pipeline system: 75 mm For 12 pipeline system: 60 mm Cross-sectional Drawings

Insulation supervisor / QC Inspector

Tight fit of seran wrap and aluminium tape

A1/R1

4B3.4

Apply PUR Spray onto the first layer of insulation

QC Inspector

Process Inspection Report.

A1

4B4 Check for jacket surface conditions randomly on 10 pipes per shift.

FINAL INSPECTION

4B4.1

Inspect units for acceptance 10 pipes / shift.

Prodn. Supervisor / QC Inspector Title:

Visual appearance of jacket.

Visual & Dimensional Inspection Report Ref. No.:

A1/R1

ITP for Thermal Insulation & Jacketing for Liquid Sulphur Pipe Line System September 30, 2010 Rev. No.: 1

QAD-PLN-002-020-10-REV1 Owner: Pages: QHSE -8-

Last Updated:

RESPONSIBILITIES PPME QC A1 CLIENT

Sl. No.

Inspection/ Test Activity Acceptance Criteria

Performed By

Quality Characteristic Inspection/Test

Client Ref/ Perma-Pipe reference Verification Documents Visual & Dimensional Inspection Report

4B4.2

Measure OD of insulated and jacketed units 10 pipes / shift.

Prodn. Supervisor / QC Inspector

Measure OD from FINAL inspection table at 3 equidistant locations, using a -tape on selected pipes. Each pipe shall be identified according to customer requirements Labels and stamps shall be legible. C.S.: Doc. No. SP-5264-X044PL-007 Rev. 0 Release note from customer

As per Customer specification

4B4.3

Marking in preparation for shipment

End finishing Supervisor

A2/R1

4B4.4

Release pipe for storage / shipment

QA/QC dept

All production and ITP activity have been completed and verified

All required production activity, inspections, and measurements meet requirements and spools have been recorded on tally sheet.

This ITP

1.) Visual & Dimensional Inspection Report. 2.) Release Note

H/R1

Title:

ITP for Thermal Insulation & Jacketing for Liquid Sulphur Pipe Line System September 30, 2010 Rev. No.: 1

Ref. No.: Owner: Pages:

QAD-PLN-002-020-10-REV1 QHSE -9-

Last Updated:

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Attachment 4
Field Services Rate Sheet

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Page 46 of 47

Company Confidential - DO NOT COPY

Attachment 4 - Field Services Pricing for GASCO Project

Effective: September 1, 2010

Services Field Support Services (FSS)

US dollars

FIELD SUPPORT SERVICES Tyco FSS representatives provide a suite of Field Support Services including Quality Assurance Representative, Audits, Pre-Commissioning, Commissioning, Start-Up, Training, Troubleshooting, Heat Trace System Consultation, and customized technical assistance to customers in all areas of Heat Trace System installation, operation, and management.

FIELD SERVICE RATES North America Ex-pat Base Rate - 8 hour day; (minimum daily charge is 8 hours) Middle East Regional Ex-pat - 8 hours day; (minimum daily charge is 8 hours) North America Ex-pat Overtime - 1.5X Base Rate for all service time in excess of 8 hrs/day or 48 hrs/week Middle East Regional Ex-pat Overtime - 1.5X Base Rate for all service time in excess of 8 hrs/day or 48 hrs/week Standby service time is considered normal work hours as per service rates. Expedite rates (service required with less than 10 days notice) 1.5X Above Applicable Rate for all service TRAVEL RATES All North America Ex-pat travel hours (except company holiday) will be billed portal to portal All Middle East Regional Ex-pat travel hours (except company holiday) will be billed portal to portal All North America Ex-pat travel hours on company holiday will be charged at 2X the standard travel rate All Middle East Regional Ex-pat travel hours on company holiday will be charged at 2X the standard travel rate Travel hours billed will not exceed 16 hours per trip per person EXPENSES All travel, rentals and lodging expense will be billed at cost, plus a 15% administration charge. All meals and incidental costs will be billed at a $50/day per diem. No receipts will be supplied. SERVICE POLICY Terms Per final contract agreement. Tyco Thermal Controls shall in no case be liable for loss or injury to persons or property (including the equipment installed) caused in whole or in part A) - by purchaser, its employees, contractors, or their employees, agents, or subcontractors, B) - by failure to observe the Tyco FSS representative instructions, C) - by failure or malfunctioning of any tools, equipment, or facilities not furnished by Tyco, or D) - by failure of equipment, the installation of which was not observed or approved by Tyco FSS representative. The purchaser shall, without cost to Tyco, provide access to the work by disassembling, removing, and replacing any equipment, materials, or structures to the extent necessary to facilitate the work. Tyco Thermal Controls reserves the right to select the appropriate global ex-pat to accomplish the purchaser requested scope of work. $ 175.00 /man/hour $ 38.50 /man/hour $ 350.00 /man/hour $ 77.00 /man/hour $ 2,000.00 /man/day $ 440.00 /man/day $ 375.00 /man/hour $ 82.50 /man/hour

Tyco Thermal Controls Confidential

Page 1

Tyco Thermal Controls Proposal No.: 1-10-S5318-22695 Rev. 0, October 5, 2010

GASCO Habshan Sulphur Pipelines SEET.

Attachment 5
SEET Construction Organizational Chart

GASCO Commercial - Combined Proposal Rev0 05Oct2010

Page 47 of 47

Company Confidential - DO NOT COPY

SKIN EFFECT ELECTRICAL TRACE (SEET) Field Construction Organizational Chart

Project Manager

SEET Global Product Manager Site Manager Site Safety Officer

Executive Sponsor

Labor Logistics / Human Resources Field Electrical Superintendent


Metal Cut & Roll Field Joints / Elbows Pipeline Cladding Supplemental Heating

Project Controls / Project Accounting Field Insulation Superintendent

On-Site Materials Mgmt / Logistics Coordinator


Fabrication Facility Warehouse Mgmt. Crew Support

Field Quality Assurance


Heat Tube & Couplings SEET Wiring Insulation Fiber Optics

Pre-Insulation Coordinator
Q.A. Oversight Materials Mgmt. / Logistics Contract Mgmt. Scheduling / Sequencing

Permits Work Visas Travel Coordination

Progress Reporting Cost Reporting Invoicing Scheduling

SEET Major Equipment


Wire Pull Splices Terminations

SEET Electrical

Fiber Optics
DTS Fiber Pull Pre-commissioning & Turnover

SEET Panels Transformers Pre-commissioning & Turnover

ATTACHMENT 5

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