ENL 22-PPS-SAK-25-08-2011 V1

Halliburton Int .Inc.,Russia 693012 Yuzhno-Sakhalinsk Ukrainskaya St.37 Tel. reception +7 4242 453600, fax +7 4242453693

Halliburton Bid Ref: 22-PPS-SAK-25/08/2011

25 August 2011.

ENL 3rd floor, 24B, Kommunisticheskliy Ave693000 Yuznho-Sakhalinsk

For the attention of Jack Renfrow

Proposal to Supply: Nitrogen Purging Services at Oduptu.Client Ref: N/A

Halliburton International Limited Sakhalin thanks ENL for the opportunity to quote for the above service and is pleased to present the enclosed proposal for your consideration and evaluation.

All prices quoted are in US Dollars and are valid until 25th September 2011

Should you have any questions or require any clarifications to this proposal, please do not hesitate to contact our Operational Manager Alfie Hay +7.914.759.8487 or e-mail [email protected]

Yours faithfully,For and on behalf of Halliburton International Limited.

Raymond PatrickHalliburton PPS [email protected]+79147598472

mailto:[email protected]

mailto:[email protected]

ENL Nitrogen Purging at Odoptu facility. Services – Client Tender # 22-PPS-SAK-25/08/2011

Halliburton Budgetary Proposal for

Performance of Nitrogen Purging at Odoptu Facilities

CONFIDENTIAL© 2010 Halliburton All Rights Reserved

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Table of Contents

1 Scope of Work..........................................................................................................................3

2 Basis of Tender – Technical....................................................................................................4

2.1 General.........................................................................................................................42.2 Halliburton Supply.......................................................................................................5

2.2.1 Equipment........................................................................................................52.2.2 Personnel.........................................................................................................52.2.3 Consumables....................................................................................................5

2.3 Client Supply................................................................................................................6

3 Basis of Tender – Commercial................................................................................................7

3.1 Estimated Costings......................................................Error! Bookmark not defined.3.1.1 Engineering......................................................................................................73.1.2 Mobilisation.....................................................................................................73.1.3 Demobilisation.................................................................................................73.1.4 Consumables....................................................................................................83.1.5 Equipment…………………………………………………………………...83.1.6 Personnel…………………………………………………………………….8

3.2 Estimated Budget Costs (For ENL budgeting purposes).............................................9

4 Contractual.............................................................................................................................10

4.1 Conditions of Offer....................................................................................................10

5 Company Information...........................................................................................................11

5.1 About Halliburton.......................................................................................................115.2 Pipeline and Process Services Provided Globally......................................................12


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1 Scope of Work

Halliburton Pipeline and Process Services (HPPS) scope of work is understood as performing Nitrogen Purging Operation at ENL Odoptu Facilities, based on performing 4 purge cycles to reduce the hydrocarbon gas concentration (LEL) to 2% minimum requirement.

The Halliburton work scope includes the supply of suitable and certified equipment, instrumentation, hoses, relief systems etc, in adequate numbers and capacities to complete the work in a timely and safe manner.

Skilled personnel are to be fielded for the purposes of equipment safe operation.


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2 Basis of Tender – Technical

2.1 General

This proposal is designed to perform the Nitrogen Purging Operation at ENL’s Odoptu facility and is based on the following supplied information:

1. System Volume = 170.000 scf2. Number or Purges at 1 bar “cycles” = 4.3. Total Volume = 680.000scf4. Rate required = 1500 to 2500cfm5. Max concentration of hydrocarbon gases (LEL) = 2%6. Operation Commence : 20/09/2011

HPPS propose to dedicate a Multi Skilled Supervisor, experienced in carrying out similar work, to interface with the client and co-ordinate all aspects of the work scope.

HPPS will submit a final report upon completion of work scope. The report will contain a detailed log of all activities carried out and contain all necessary charts, data sheets on job report sheets, instrument calibration certificates.


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2.2 Halliburton Supply

2.2.1 Equipment

Halliburton will supply the following items of equipment:

Item Qty Description1 1 Test Cabin2 1 6K Hose Package3 1 6K Fittings Kit4 1 Pressure Recorders5 2 Pressure Gauges6 1 180K Nitrogen Pump Unit7 1 Air Hoses Skid8 1 Over Pressure Protection Skid9 4 2000 USG LN2 Storage Tank

2.2.2 Personnel

Halliburton will supply the following experienced personnel to carry out the work based on one 12 hour shift:

Item Qty Position1 1 Shift Supervisors (expat)2 2 Multi Skilled Technicians

2.2.3 Consumables

Item Qty Unit Description1 25 Tonnes Liquid Nitrogen


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2.3 Client Supply

Halliburton request that the following services and items of supply are issued free of charge by SEIC or their Client:

Item Description

1 Electric Power, 220V, to site cabin2 Air source minimum 7 bar at 50 meters max distance from the test area3 Suitable lighting in Equipment Operating Area if Night shift will be required4 Medical Assistance (if necessary)5 Site ablution/toilets

6All passes and permits to allow free entry and departure from site of personnel, vehicles and equipment, including supply tankers

7 Permits to work in the operating area.

8Cranage/forklifts for offloading, positioning and reloading equipment (Max wt 40 Tones)

9 Safe working areas, including any Gas Testing.

10Designated person for liaison regarding the works, responsible for co-ordinating with the Owner/Engineer.

11 Fire and site safety equipment12 Access to telephone, internet and fax facility for business use


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3 Basis of Tender – Commercial

3.1 Estimated Costing

3.1.1 Engineering

Item Description Cost (US$)

1Engineering fee (generation of method statements, site visit, planning, reports etc)

$5000

3.1.2 Mobilisation

Item Description Cost (US$)1 Mobilisation of Expat Supervisor $3.300

Item Description Cost (US$)1 Mobilisation of Russian Operators (2) $1400

Item Description Cost (US$)1 Mobilisation of 180K Nitrogen Unit from Siberia $18.000

Item Description Cost (US$)1 Mobilisation of Equipment from Yuznho $18.103

3.1.3 Demobilisation

Item Description Cost (US$)1 De-mobilisation of Expat Supervisor $3.300

Item Description Cost (US$)1 De-mobilisation of Russian Operators (2) $1.400

Item Description Cost (US$)1 Demobilisation of 180K Nitrogen Unit to Siberia $18.000

Item Description Cost (US$)1 Demobilisation of Equipment from Odoptu $18.103


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3.1.4 Consumables

Item Description Cost (US$)1 25 Tonnes of Nitrogen. $ 62.133

3.1.5 Equipment

Item Qty Description Days Day Rate Total Cost1 1 Test Cabin 15 $94 $1,4062 1 ½ 6K Hose Package 15 $155 $2,3253 1 6K Fittings Kit 15 $85 $1,2754 1 Pressure Recorders 15 $21 $3155 2 Pressure Gauges 15 $20 $6006 1 180K Nitrogen Pump Unit 15 $1,208 $18,1137 1 Air Hoses Skid 15 $31 $469

8 1Over Pressure Protection Skid

15 $94 $1,406

9 42000 USG LN2 Storage Tank

15 $190 $11,400

Estimated Cost $37.309

3.1.6 Personnel

Item Qty DescriptionDays Day

RateTotal Cost

1 1 Shift Supervisors (Expat) 15 $1,200 $18,0002 2 Multi Skilled Technicians 15 $650 $19,498

Estimated Cost $37,498


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3.2 Estimated Budget Costs Basis in 15 days

Item Qty Description Total Cost

1 1 Engineering $ 5,000.00 2 1 Equipment $ 37,308.75 3 1 Personnel $ 37,497.60 4 1 25 Tones of Liquid Nitrogen $ 62,132.50 5 1 Personnel Mobilization $ 4,700.00 6 1 Personnel Demobilization $ 4,700.00 7 1 Mobilization from Siberia $ 18,000.00 8 1 Mobilization from Yuznho $ 18,103.45 9 1 De-Mobilization from Siberia $ 18,000.00 10 1 De-Mobilization from Yuznho $ 18,103.45

Total $223,545.75


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4 Contractual

4.1 Conditions of Offer

1. All work will be charged as per Unit Rates quoted in Section 3.2. All resources are subject to availability at time of the contract award.3. Mobilisation is based on delivery of equipment, personnel & consumables to site on

Client written instruction. 4. Should there be any delays for any reason out with of Halliburton’s control the applicable

daily rates will apply for equipment and personnel and unit rates for consumables.5. The proposal has been based on limited information to hand, and should any significant

changes to that previously supplied Halliburton reserves the right to review this tender. 6. All charges for equipment are exclusive of VAT which will be invoiced separately.7. Equipment charges shall apply from the day it leaves Yuzhno and ceases upon its return.8. All Partial days shall be charged as full days.9. Customer or its appointed Contractor is responsible for supplying equipment to move

Halliburton equipment at work location at no cost to Halliburton.10. Customer should provide three days notification to Halliburton prior to any equipment

mobilization or demobilization. 11. If any delays are incurred due to the availability of crane operations or weather conditions

the standby rates will apply.12. Halliburton will load 25 Tonnes of Liquid Nitrogen in Russia Mainland all transportation

loses due to evaporation, will be assumed by ENL.13. Halliburton have organized logistics to carry out the operation starting from 20th of

September 2011 provided the official confirmation (PO, Letter of Intent, etc) is received by Halliburton from ENL no later than 26th of August.

14. Should operation be cancelled and mobilization has been in progress, mobilization charges will be invoiced to ENL.


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5 Company Information

5.1 About Halliburton

Halliburton has been providing Process and Pre-commissioning services in the Middle East for over 30 years.

Halliburton has a strong track record in providing controlled bolting, video inspection, cleaning, chemical cleaning, oil cleanliness and N2 / He leak testing services to the oil and gas, process industries.

Halliburton is the Market Leader in the Pre-commissioning, Commissioning, Chemical Cleaning and Decommissioning Industry – Worldwide.


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5.2 Pipeline and Process Services Provided Globally

In the Middle East, Halliburton Pipeline and Process Services have offices and yards in the United Arab Emirates, Qatar, and Saudi Arabia but have carried out the above mentioned services in most of the Middle East countries with the support of our many oilfield camps which are located through-out the region. Furthermore, HPPS operates worldwide including the USA, Gulf of Mexico, United Kingdom, The Netherlands, Norway, Asia Pacific, Venezuela, Brazil, Australia, Egypt, West Africa and Azerbaijan.


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Documents

ENL 22-PPS-SAK-25-08-2011 V1