CONTRACT No. 6600026167 BI No. 10-00914-002JOB No. 11049D PROJECT CODE 41108

MOHAMMAD AL-MOJIL GROUPMOHAMMAD AL-MOJIL GROUP

WASIT GAS DEVELOPMENT PROGRAM PACKAGE-1WASIT, SAUDI ARABIA

MANAGEMENT REVIEW MEETING REPORTMANAGEMENT REVIEW MEETING REPORT

In accordance with clause 4.1 of schedule “Q” and clause 5.6 of ISO:9001, Management Review of the Project Specific Quality System was carried out on November 28, 2012 at above referred project site.

Attendees of the meeting:

Mr. Reynaldo Dimatatac Projects Area Director

Mr. Ramesh Babu M. Site QC Manager

Mr. Nathaniel Llaneras Site Engineering Manager

Mr. John Maeto Site PCD Manager

Mr. Cesar Pajel Construction manager

The objectives of the meetings were:

1. To verify that the quality control activities were in compliance with the project quality requirements in order to continued effectiveness for the project quality system.

2. To verify that the fabrication and construction is in accordance with the documents, drawings, specification and reference codes and standards.

As part of strategy to achieve quality objectives, the following topics form the meeting agenda:

1. Result of Audits2. Customer Satisfaction3. Process Performance and Product Conformity4. Preventive and Corrective Reports 5. Non Conformance Reports6. QC Inspection & Surveillance Reports7. QC Personnel Approval8. Status of RFI’s 9. Method Statements10. Waivers

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11. Quality Awareness Training12. Recommendation for Improvement

RESULT OF AUDITS

Two Audits have been conducted since the project started.

The first audit on 15% construction phase completion was conducted on November 15, 2012 by Client Auditor (SK E&C) at Wasit Gas Plant Project site office. The overall conclusion was that the general requirements of the quality system were maintained and a good commitment towards quality was being displayed by the concerned personnel and strong leadership was demonstrated by the project management.

(Attachment 1.0)

15% construction phase completion audit by MMG was conducted in accordance with schedule “Q” clause 7.3.2 requirements for the design, procurement & construction work and MMG QA program to ascertain that MMG / Wasit Gas Project Package-1 project activities are carried out in accordance with the documents, drawings, specification and referred codes & Standards and also the requirements of ISO: 9001 – 2008 . This audit was conducted in two locations on 19, 20 & 21 November 2012 - Wasit Gas Project Site and Dammam Steel Factory

The audit identified 13 Corrective Action Reports and 8 Observations for Site and Steel Factory which will be addressed immediately. The overall conclusion of the audit for site and steel factory was that with exception of the findings, the quality was being maintained by the personnel involved and by the project management.

(Attachment 2.0)

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CUSTOMER FEEDBACK

Customer feedback with regard to ongoing overall quality performance is well documented in the various minutes of meeting, project correspondence and thru logbook entries.

In general and applying across all discipline, when MMG QC accepts any work at stage inspection, raise RFI for inspection by our client. The instances of rejection are minimal, but some RFIs were rejected due to non-completion of works or items offered for inspections were not ready.

PROCESS PERFORMANCE AND PRODUCT CONFORMITY

The management review agreed that there were sufficient and suitable project procedures, specifications, method statements and test plans in place to ensure monitoring project quality management processes were achieved and planned results in a phased manner. The findings of audits and periodical training program & toolbox talk to Foremen & Technicians confirmed MMG’s awareness and commitment to improved process performance.

It was agreed that the adherence to the excellent Aramco system of SATIP, SATR and SAIC with their comprehensive references to all applicable codes and standards formed a sound basis to ensure all aspects of product conformity.

CORRECTIVE AND PREVENTIVE ACTION

Corrective and Preventive actions are identified and recorded in QC INSPECTION REPORTS, section of internal logbook reports complied by all QC inspection personnel.

These internal observations are evaluated periodically by QC manager and Project manager, and where necessary, actions were taken to eliminate the potential nonconformity and to find root cause analysis for non-conformance.

During discussions on this topic, corrective actions on drawings control raised concerns as construction site were using obsolete drawings without controlled copy seal and superseded drawings were found in construction site. Document control should be applied to construction site.

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NON-CONFORMANCE REPORTS

Review of the NCR reporting and register confirmed that in general NCR’s raised were relevant and justified, and their disposition was in timely manner. (some structural item NCRs still awaiting for closure by sub-contractor Hidada Ltd. While observing nature of NCRs, there are some items with recurring nature which should be controlled -

viz. concrete curing, backfilling of trenches without required Field Density Tests, mis-fabrication of structural items, hydro test leaking in RTR U/G piping because of piping materials and workmanship of joint bonding, delivery of civil materials to site without lab test reports especially marl, sub-base, base coarse, sand and CMU.

(Attachment 3.0)

QC INSPECTION REPORTS

QC Inspection Reports forms part of surveillance, which were reviewed and found that all inspection reports issued by MMG were recorded and most of the findings were closed out in timely manner.

Attachment 4.0

QC PERSONNEL

QC Personnel approval verified and their tentative demobilization dates are maintained.

Attachment 5.0

STATUS OF RFI’s

Request For Inspection (RFI) log was reviewed by the QC Manager and found that RFI status updated and maintained with their latest status (some Civil RFIs are pending for test result from third party laboratory)

Attachment 6.0

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METHOD STATEMENT

Availability and approval of method statement for various construction activities have been verified with Engineering control system and noticed that some required method statements are still in-process. Engineering should follow-up for approval of method statements. List of method statements under various stages are attached for reference.

Attachment 7.0

WAIVERS

Management has verified with Engineering department for waivers raised for specific activities in the project, it was noted that no waiver has been requested till date.

TRAINING

Management has reviewed the training program rendered to skilled workers especially RTR joint bonders, concrete group, structural steel erection group, piping installation group and welders. Training was conducted on different phases and documented.

Attachment 8.0

RESOURCE REQUIREMENT

Shortage of QC personnel raise concern. There is immediate requirement of 4 Civil QC Inspectors, 3 Piping QC Inspectors, 1 Valve Testing Inspector, 1 NDT Coordinator and 2 Computer Operators for welding data entry in PJCS.

There was concern over pending civil test reports from third party laboratory.Site management is coordinating for speedy release of civil test reports to clear RFI reports. Shortage of 2 civil third party lab and site technician.

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RECOMMENDATION FOR IMPROVEMENT

The following recommendations were deemed to be necessary in order to achieve quality standards and ensure project commitment.

1. Continuous quality awareness in-house training for QC personnel on Quality Requirements, Procedures, Codes, Standards and Applications.

2. More tool box meetings and quality orientation for construction group on quality workmanship and project requirements.

3. Adequate surveillance of QC personnel at construction site will enhance quality aspects and adherence of quality requirements.

4. Document controlling system at site satellite office should be maintained as a minimum requirement to avoid obsolete drawing and documents

5. Non-conformance of repeated type, especially backfilling without required compaction test shall be investigated and root cause to be analyzed. Preventive measures should be implemented to avoid re-work and further non-conformance of recurring nature and adverse impact on project completion schedule.

There should a relentless strive to maintain the minimum requirements as stipulated in Schedule ‘Q’ of Saudi Aramco Quality Plan.

It is the stated directive of the Executive Management that MMG employees at all levels shall be familiar with the quality requirements defined within the Corporate Quality Manual to ensure the desired quality achievement.

Prepared by: Noted by:

RAMESH BABU MADDIPOTI REYNALDO A. DIMATATACSite QC Manager Projects Area Director

Concurred by:

DEBASHISH TAPADARQuality Audit Manager

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