Technical - PSN Submission

Document T-4: Data To Be Provided By TenderersTender no. Y08/085Provision of Maintenance and Engineering Services Contract (MESC) for SPEX

DOCUMENT T- 4

DATA TO BE PROVIDED BY TENDERERS

CONTENTS

COMMERCIAL APPENDICES

CA-1 SCHEDULES OF PRICES AND RATES

TECHNICAL APPENDICES

TA-1 QUALIFICATIONS TO THE ITT DOCUMENTSTA-2 PROPOSED ALTERNATIVESTA-3 UNPRICED SCHEDULE OF PRICES AND RATESTA-4 TENDERER’S PROPOSED CONTRACT MANAGEMENT AND ORGANISATION SET-UPTA-5 CURRICULUM VITAE OF PROPOSED KEY PERSONNEL TA-6 AVAILABILITY OF KEY PERSONNELTA-7 MOBILISATION PLANTA-8 TENDERER’S PROPOSED ADMINISTRATION OFFICE/ BASE, ENGINEERING SUPPORT

OFFICE, MINOR FABRICATION YARD AND EQUIPMENTTA-9 TENDERER’S PROPOSED MAINTENANCE / CONSTRUCTION EQUIPMENT AND TOOLSTA-10 PROJECT EXECUTION PLANTA-11 PREVIOUS AND CURRENT WORK EXPERIENCE & CAPABILITYTA-12 TENDERER’S PROJECT MANAGEMENT CAPABILITYTA-13 TENDERER’S PROJECT PLANNING CAPABILITYTA-14 PROPOSED SUBCONTRACTOR TA-15 TENDERER’S SUPPORT FROM CORPORATE HEAD QUARTERSTA-16 PROPOSED QUALITY ASSURANCE/ CONTROL PLANTA-17 COMPLIANCE WITH SHELL’S TERMS AND CONDITIONSTA-18 COMPLIANCE WITH SGBPTA-19 TENDERER'S FINANCIAL INFORMATIONTA-20 TENDERER REGISTRATION TA-21 HSE EVALUATION QUESTINNAIRE TA-22 TENDERER’S LOCAL CONTENTTA-23 TENDERER’S COMPUTER CAPABILITIES AND CMMS OR EQUIVALENTTA-24 COMPLIANCE WITH PART 11 - HSETA-25 ADMINISTRATION INFORMATIONTA-26 TENDER BULLETINS

Tenderer’s Company Name: PSN PRODUCTION SERVICES NETWORK PHILIPPINES CORPORATION

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Tenderers shall complete in full, the following Technical and Commercial Tender Appendices and include them within either the Technical or Commercial Submission as directed in each Appendix:

COMMERCIAL APPENDICES

CA-1 SCHEDULES OF PRICES AND RATES

TECHNICAL APPENDICES

TA-1 QUALIFICATIONS TO THE ITT DOCUMENTSTA-2 PROPOSED ALTERNATIVESTA-3 UNPRICED SCHEDULE OF PRICES AND RATESTA-4 TENDERER’S PROPOSED CONTRACT MANAGEMENT AND ORGANISATION SET-UPTA-5 CURRICULUM VITAE OF PROPOSED KEY PERSONNEL TA-6 AVAILABILITY OF KEY PERSONNELTA-7 MOBILISATION PLANTA-8 TENDERER’S PROPOSED ADMINISTRATION OFFICE/ BASE, ENGINEERING SUPPORT

OFFICE, MINOR FABRICATION YARD AND EQUIPMENTTA-9 TENDERER’S PROPOSED MAINTENANCE / CONSTRUCTION EQUIPMENT AND TOOLSTA-10 PROJECT EXECUTION PLANTA-11 PREVIOUS AND CURRENT WORK EXPERIENCE & CAPABILITYTA-12 TENDERER’S PROJECT MANAGEMENT CAPABILITYTA-13 TENDERER’S PROJECT PLANNING CAPABILITYTA-14 PROPOSED SUBCONTRACTOR TA-15 TENDERER’S SUPPORT FROM CORPORATE HEAD QUARTERSTA-16 PROPOSED QUALITY ASSURANCE/ CONTROL PLANTA-17 COMPLIANCE WITH SHELL’S TERMS AND CONDITIONSTA-18 COMPLIANCE WITH SGBPTA-19 TENDERER'S FINANCIAL INFORMATIONTA-20 TENDERER REGISTRATION TA-21 HSE EVALUATION QUESTINNAIRE TA-22 TENDERER’S LOCAL CONTENTTA-23 TENDERER’S COMPUTER CAPABILITIES AND CMMS OR EQUIVALENT TA-24 COMPLIANCE WITH PART 11 - HSETA-25 ADMINISTRATION INFORMATIONTA-26 TENDER BULLETINS

Tenderers are advised that the COMPANY may decline to consider any tender in which the required Appendices are not completed in full or are included in the wrong Submission. Tenderers shall complete all Appendices even if they have already done so in respect of other recent tenders for COMPANY work and even if they are currently under contract to the COMPANY.

Tenderers are advised that they may include any supplementary or continuation sheets deemed necessary to provide all of the information requested by the Tender Appendices.

In the event of a CONTRACT being awarded the relevant completed Tender Appendices shall may thereupon become part of the CONTRACT DOCUMENT.


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NOTE TO TENDERER

Enclosed is a table of criterion and documented proof COMPANY is expecting from Tenderer in order to be consideration for the CONTRACT.

Tenderer are advise to study the criterion and document proof required by COMPANY carefully before proceeding to complete each of the technical appendices.


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COMMERCIAL APPENDIX CA-1: PART 3 – SCHEDULE OF PRICES AND RATES

1. The Tenderer shall enter its prices and rates into Document C - PART 3 headed SCHEDULES OF PRICES AND RATES and submit this in full as Commercial Appendix CA1 together with the FORM OF TENDER. The prices and rates included in CA1 shall be based on a tender validity period of Two Hundred Ten (210) days from the Closing of Tenders.

2. The Tenderer shall not insert any undisclosed qualifications in the Commercial Submission. All such qualifications shall be stated in the Technical Submission under Technical Appendix TA-1: Qualifications to the ITT Documents. COMPANY reserves the right to disqualify any bid, which contains undisclosed qualifications in the Commercial Submission.

3. Tenderers shall not make any unauthorised changes to the Tender Documents. Changes, if any, will be issued by COMPANY through Tender Bulletins and/ or Technical Clarifications. Unauthorised changes to the pricing format in PART 3: SCHEDULE OF PRICES AND RATES may render the bid invalid.

4. Tenderers will be provided a soft copy of PART 3 - SCHEDULE OF PRICES AND RATES. The Tenderer shall use this soft copy to complete PART 3 - SCHEDULE OF PRICES AND RATES and return it in a CD together with the original signed hard copy. The return soft copy in CD shall be in it’s native form i.e. Microsoft word. The CD shall be label Commercial Submission: Priced Schedule of Prices and Rates. The Tenderer shall insert its Company name and initial on each page of the SCHEDULES OF PRICES AND RATES. The SCHEDULES OF PRICES AND RATES in the set marked “ORIGINAL” must contain the original signature of the Tenderer in order to be valid. In the event that any discrepancy between the original signed hard copy and softcopy, the original signed hard copy shall take precedence.

5. The COMPANY shall have the right to review the prices and rates submitted by the Tenderer and revise same prior to signing of the CONTRACT. This shall be done with the consensus from Tenderer to correct any errors, discrepancies, inconsistent rates and/or pricing and the like.

6. The Tenderer shall price all items. If any items are not priced, it shall be deemed that the cost of same has been included elsewhere in other priced items. Tender shall not enter “cost-plus” or “no quote” against any item. If Tenderer is unable to price an item for any reason, Tenderer shall inform COMPANY under TA-1: Qualifications to the ITT Documents.

7. If there are any cost impacts arising from technical clarifications, Bidders shall submit these in separate sealed envelopes. Prior to opening of the commercial packages, COMPANY will ask bidders to submit a list of all the cost impacts that they have submitted. As part of the technical clarification (last clarification). Bidders shall submit a full list of the cost impacts (list of letters only - no costs). Only these costs impacts will be taken into consideration by Company in its commercial evaluation. In the event no cost impact for compliance with the requirements of the technical clarifications is received by the commercial bid opening date, it will be deemed that the costs are already included in Bidder's original submissions.

8. The Tenderer shall complete the relevant prices and rates in the Schedules set out in Document C PART 3 SCHEDULE OF PRICES AND RATES.

The Tenderer shall review the invoicing pro-forma included in Document C PART 9 ADMINISTRATION INSTRUCTIONS and confirm or otherwise its agreement to the proposed application of Philippine taxes, if any, shown thereon. Where Philippine taxes do not apply, Tenderer is to sign Box C below.

A. Agree with proposed application of Philippine taxes

B. Disagree with proposed application of Philippine taxes

C. Philippine taxes do not apply

Signed: …………..……….. Signed: ………..…………… Signed: ……………....….

If B or C above, state reason: …………………..………………………………………………………

………………………………………………………………………………………………………………

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COMMERCIAL APPENDIX CA-1: PART 3 – SCHEDULE OF PRICES AND RATES (CONT’D)

9. Tenderer is expected to price and quote for the following section, in Document C, PART 3 SCHEDULE OF PRICES AND RATES without making any changes or amendment to the document content:

SCHEDULE NO. 1 - INITIAL ESTABLISHMENT FEES

SCHEDULE NO. 2 - MONTHLY MANAGEMENT FEES

SCHEDULE NO. 3 - MONTHLY FEES

SCHEDULE NO. 4 - ALL-INCLUSIVE HOURLY RATES FOR PERSONNEL

SCHEDULE NO. 5 - ALL-INCLUSIVE DAILY RATES FOR TOOLS & EQUIPMENT

SCHEDULE NO. 6 - ALL INCLUSIVE UNIT RATES FOR STEELWORK, WELDING, PAINTING & BLASTING, INSPECTION & TESTING AND LOGISTIC (AT CONTRACTOR’S MINOR FABRICATION YARD)

SCHEDULE NO. 10 - RATES FOR COMPUTER PROCESSING

10. The Tenderer shall insert its company name and initial each page of the SCHEDULES OF

PRICES AND RATES. The Tenderer is reminded that the SCHEDULES OF PRICES AND RATES in the set marked "ORIGINAL" must contain the original signature of the Tenderer in order to be valid.

11. Commercial Appendix CA1 shall be sealed and submitted in a separate envelope as part of the Commercial Submission

12. THIS APPENDIX SHALL BE INCLUDED IN TENDERER'S COMMERCIAL SUBMISSION ONLY.


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TECHNICAL APPENDIX TA-1: QUALIFICATIONS TO THE ITT DOCUMENTS

1. The offer to be made by the Tenderer in the Form of Tender is to be made in strict accordance with the terms and conditions of DOCUMENT C - CONTRACT. The COMPANY wishes the Tender to be made without qualifications.

IMPORTANT: Qualifications to Document C, Part 2 – General Conditions of Contract may result in disqualification of the Tender Submission.

2. If the Tenderer objects to a requirement contained in DOCUMENT C – CONTRACT and is unable to comply with such requirement at any price, the Tenderer is to state such qualification in this Technical Appendix. The Tenderer must state the full details of each such objection to the requirements as a qualification, including the precise wording for any proposed modification to DOCUMENT C – CONTRACT, and the reasons for the qualification.

If the Tenderer includes any qualifications in his Technical Submission, the prices and rates in Commercial Appendix No. CA-1: SCHEDULES OF PRICES AND RATES in his Commercial Submission shall be submitted on the basis that the COMPANY accepts such qualifications. Therefore, should the COMPANY be unable to accept any qualification and the Tenderer withdraws such qualification, the Tenderer may adjust the prices and rates in Commercial Appendix No. CA-1: SCHEDULES OF PRICES AND RATES by submitting a Commercial Addendum in a separate envelope at the time of submitting the Technical Clarification in which the qualification is withdrawn by the Tenderer.

3. If the Tenderer objects to a requirement contained in DOCUMENT C – CONTRACT, but is able to comply with such requirement at a price the Tenderer must comply with and price the requirement in his Commercial Submission. The Tenderer may then state the objection to the requirement as an alternative in Technical Appendix TA-2: Proposed Alternatives in his Technical Submission and state the reduction in price in his Commercial Submission should the COMPANY accept the alternative.

4. The Tenderer shall enter in Technical Appendix No. TA1 either:

(1) A statement in his Technical Submission as follows:

"This Tender is made with no qualifications".

or

(2) A statement in his Technical Submission as follows plus full details of all qualifications:

"This Tender is made subject to the following qualifications. These are the only qualifications to DOCUMENT C – CONTRACT DOCUMENTS of your Invitation to Tender."

5. Any qualification or conditions included elsewhere in the tender submitted by the Tenderer will not be taken into account.

6. The descriptions and reasons for exception/qualifications and alternative shall be presented in the format shown below. The table shall be attached in the proposal as per the instruction in this document. BIDDER IS ENCOURAGED TO USE BIDDER’S OWN SHEET WITH THE FOLLOWING FORMAT (TABLE 1-1, below).

7. The Tenderer shall enter its company name and sign each page of this Appendix.

8. THIS APPENDIX SHALL BE INCLUDED IN TENDERER'S TECHNICAL SUBMISSION ONLY.


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TECHNICAL APPENDIX TA-1: QUALIFICATIONS TO THE ITT DOCUMENTS (CONT’D)

TABLE 1-1

Item Company’s Terms & Specification Clause Reference

Clause Qualification

(Proposed modification, if any)

Reason for qualification

1.0Document C, Part 2 – Terms & Conditions

Clause No. 1.1

‘“COMPANY GROUP” shall mean and includes the Company, its Affiliates, and the officers, directors and employees foregoing.’

‘”COMPANY GROUP” shall mean and includes the Company, its other Contractors, its AFFILIATES, and officers, directors and employees of the foregoing.

Affiliates is now defined in capital letters. The Contractor requires the insertion of the company’s contractors as per the subcontractors in the Contractor Group definition.


Clause No. 7.9

New clause proposed as follows:

“In the event of any changes in the taxation laws, decrees, rulings, practices or regulations of the Philippines or the UK, or any changes in the application of these laws by the governing body, which are made, published or otherwise become effective after the Effective Date of the Contract and which cause either an increase or decrease to the Contractor’s Personnel rates and or prices Contractor and Company will review the effects of such changes and will, by mutual agreement, revise Contractors‘ rates and prices to reflect the associated changes in the Contractors’ costs.’

Contractor would request this is included in the event that there is a change in legislation which affects either the Company or Contractor.

3.0Document C, Part 2 – Terms & ConditionsClause No. 8.3

From any sum due to CONTRACTOR under this CONTRACT, COMPANY may deduct any amount, which it in good faith regards as being owed by CONTRACTOR to COMPANY under

Delete “or otherwise” at the end of the clause

The Contractor requests that any right of set-off is restricted to payments due under this contract only.


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this CONTRACT or otherwise.


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Clause No. 9.1

COMPANY or its authorised representatives shall have access at all reasonable times to all records of CONTRACTOR and of any SUBCONTRACTOR, their agents and servants which were issued, written or made in connection with the CONTRACT. These audit rights shall continue for a period of two (2) years after completion or termination of the CONTRACT. CONTRACTOR shall preserve and shall cause its SUBCONTRACTORS to preserve all documents for the same period.

Delete the final sentence and insert

“In relation to SUBCONTRACTORS, the CONTRACTOR shall ensure that they preserve all documents relating to the SERVICES provided by them for a period of two years from completion or termination of their contract for services with the CONTRACTOR.”

Given the length of this contract, the Contractor cannot expect their subcontractors to retain documents for the length of the contract with the company and two years thereafter and can only ensure that the subcontractors retain their documents for a period of 2 years from completion of their work


Clause No. 10.1 (c)

(a) Loss of or damage to the property of, or injury, including fatal injury and disease to, third parties,

Insert “if such loss, damage or injury is caused by the negligence or breach of duty of the CONTRACTOR GROUP” at the end of the clause.

The Contractor is in a position to accept responsibility for any loss or damage to third parties’ caused by the Contractors negligence however we would not wish to be responsible for all loss or damage regardless of cause.


Clause No. 10.1 (c)

(c) Loss or damage to the WORK / SERVICES

Contractor requests clarification of the meaning of this clause

If this clause intends to widen any indemnity for re-work/repairs under the Contractor’s warranty, we would request that this is deleted. If this clause intends to cover anything created or built under the contract, we would be willing to accept the indemnity but only subject to acceptance of qualification 11 below. Any property damage should be covered by the Company’s property indemnification so we are unsure what this indemnity is intended to cover.


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Signature:

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Clause No. 10.1

Whatsoever and howsoever arising, whether or not the negligence or breach of duty of COMPANY, its servants or agents has caused or contributed to such injury, loss or damage.

Insert “Except for sub-clause (b), the above indemnities shall apply...” at the beginning of the penultimate paragraph

The Contractor is in a position to accept responsibility for any loss or damage to third parties’ caused by the Contractors negligence however we would not wish to be responsible for all loss or damage regardless of cause.


Clause No. 10.1

In excess of that level, liability shall be determined by reference to applicable law.

Delete the final sentence of the final paragraph and insert “In excess of that level, the COMPANY shall hold the CONTRACTOR harmless for any losses, claims, costs and expenses regardless of negligence or breach of duty of the CONTRACTOR GROUP”

The Contractor requires a cap on indemnity regardless of negligence.


Clause No. 10.2

COMPANY shall assume entire responsibility for and shall defend, indemnify and hold the CONTRACTOR harmless against all losses, liabilities, claims, costs and expenses arising directly or indirectly out of or in connection with the execution of the SERVICES/ WORK and arising from

Insert “GROUP” after the word “CONTRACTOR” on the second line of the first paragraph.

The Contractor requests that any indemnities are passed to the whole group.

10.0

Document C, Part 2 – Terms & Conditions

Clause No. 10.2(c)

New clause proposed as follows:

“(c) Loss of or damage to the property of, or injury, including fatal injury and disease to third parties if such loss, damage or injury is caused by the negligence or breach of duty of the COMPANY GROUP”

The Contractor is in a position to accept responsibility for any loss or damage to third parties’ caused by the Contractors negligence and would request that the Company takes responsibility for its’ Group’s negligence in relation to the work


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11.0


Clause No. 10.2

Whatsoever and howsoever arising, whether or not the negligence or breach of duty of the CONTRACTOR, its servants or agents caused or contributed to such injury, loss or damage.

Insert “Except for sub-clause (c), the above indemnities shall apply...” at the beginning of the final paragraph

The third party indemnity as amended above must be excluded from this clause.

12.0


Clause No. 10.3(a)

Liability for Purchase of Goods

CONTRACTOR shall be liable (without formal notice of non-compliance being required) for any loss or damage incurred by COMPANY due to CONTRACTOR'S or its SUBSUPPLIER'S non-compliance with the terms and conditions of the CONTRACT.

Insert the following at the beginning of the clause:

“Subject to any indemnifications and limitation provided in the CONTRACT...”

The Contractor accepts full responsibility for the actions and omissions of its suppliers and subcontractors and SUBSUPPLIERS however this is subject to any indemnities given to the contractor group and any limitation of liability provided by the Company.

13.0


Clause No. 11.0

11.1 Limitation of CONTRACTOR’S Liability

Neither the CONTRACTOR nor its SUBCONTRACTORS shall be liable to the COMPANY, its associated companies or co-venture’s for indirect losses (including consequential losses), any loss of use of property or loss of production, revenue, profit or anticipated profit or contracts suffered by the COMPANY howsoever caused arising in connection with the CONTRACT except to the extent of any liquidated damages provided for in the CONTRACT, and in case of

Delete entire clause and insert:

“Notwithstanding any other provision to the contrary, each party shall save, indemnify, defend and hold harmless the other party’s GROUP from its own Consequential Loss, regardless of cause, even if caused or contributed to by the negligence, fault, strict liability, strict products liability, or breach of duty, statutory or otherwise of the other party and each party hereby releases the other in this regard”

The Contractor requests that a mutual Consequential Loss clause is inserted into the contract which applies equally to the contractor and the company without any exclusions for incidental losses and wilful acts/gross negligence. The Contractor also requests that each member of the parties’ GROUP is included in the indemnity.


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wilful act or gross negligence.


Signature:

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Item Company’s Terms & Specification Clause

Reference




The cost of repairs, replacements or inspection are carried out, any reasonable costs incurred by COMPANY including, but not limited to the costs of detection of the defect, inspection, removal, transport, repair, replacement, reinstallation and retesting of the GOODS, together with the cost of delay to work of COMPANY contractors, consultancies and cleaning up shall be for CONTRACTOR'S account and shall not be regarded as consequential damages.

11.2 Limitation of COMPANY’S Liability

The COMPANY shall not be liable to the CONTRACTOR or its SUBCONTRACTORS for indirect losses (including consequential losses), any loss of use of property or loss of profit or anticipated profit or revenue or contracts suffered by the CONTRACTOR or any SUBCONTRACTORS howsoever caused arising in connection with the CONTRACT.

For the purposes of this CONTRACT, “Consequential Loss” means (i) consequential loss under applicable law; and (ii) loss and/or deferral of production, loss of product, loss of use, exclusion and loss of revenue, profit or anticipated profit (if any), increased cost of working, loss of contract or business interruption or vessel downtime, whether direct or indirect, to the extent that these are not included in (i) and whether or not foreseeable at the date of commencement of the SERVICES”


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Reference




11.3 Applicability of Limitation

Any exclusion or limitation specified in the CONTRACT shall apply to claims in contract, tort or otherwise at law in respect of matters covered by such exclusion or limitation. The provisions of this Clause shall survive completion, expiry or termination of the CONTRACT for whatever reason.


Clause No. 12.1 (b)

(b) for any purpose, other than the performance of the SERVICES:

(i) not reproduce in any manner, copy or use any confidential information; and not disclose to, use on behalf of, or place at the disposal of, any third party any confidential information, except with the prior written consent of COMPANY.

Insert clause 3 from the Confidentiality Agreement annexed to the contract

The Contractor requests that the lawful exclusions are incorporated into the Contract for the avoidance of doubt as the terms and conditions prevail over the confidentiality agreement.


Clause No. 17.1

New proposed final paragraph as follows:

“All insurance carried by the COMPANY in relation to the activities under the CONTRACT shall name the CONTRACTOR as an additional insured and contain a waiver of subrogation in favour of the CONTRACTOR GROUP”

Given that the proposed indemnity regime is knock for knock regardless of negligence, the Contractor requests that the Company also provide the required additional insurance details.


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Reference





Clause No. 25.5

Proposed new clause as follows:

“In the event of a claim under the contract, the COMPANY agrees to utilise the Parent Company Guarantee, if possible and appropriate, prior to making any claim under the Bank Guarantee to be provided under this clause 25.0”

The most appropriate remedy under the contract is that included under the terms thereof however in the event of a un settled claim or dispute, the contractor requests that the PCG is utilised first as far as possible.


Clause No. 28.4.1

The guarantee provided under this clause shall apply to the WORK and all MATERIALS, EQUIPMENT, facilities and services to be incorporated into or used for the WORK, up to the end of the guarantee period specified in the SCOPE OF WORK for the WORK or particular part of the WORK, MATERIALS, EQUIPMENT, facilities and services, or 12 months from the COMPLETION DATE, whichever is later.

Please define SCOPE OF WORK or change to ‘Part-4 Scope of Services’.

This seems to be a misprint as SCOPE OF WORK is not a defined term


Clause No. 28.4.1

The Contractor requests discussion on this clause.

The Contractors maximum warranty period for work carried out on each part of the work is up to a maximum of 12 months. This clause implies that the warranty is up to the completion date of the contract which stands at 2016 at present.


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Reference





Clause No. 28.4.1.1

The guarantee period of the WORK and all MATERIALS, EQUIPMENT, facilities and services to be incorporated into or used for the WORK shall be extended by the same amount of time during which such WORK, MATERIALS, EQUIPMENT, facilities or services have been out of operation or their putting into operation has been delayed as a result of a defect to which this guarantee applies.

Insert “but to a maximum of 24 months from completion of the applicable part of the work” at the end of the clause

The Contractor suggests it is unreasonable to provide an evergreen warranty for goods, equipment and work. Including the delayed period, we would request that our maximum warranty period is 24 months


Clause No. 28.8

28.8 Consequence of Non-compliance

28.8.1 any reasonable costs incurred by the COMPANY as a consequence of the CONTRACTOR'S non-compliance with the RECTIFICATION clause shall be for the CONTRACTOR'S account. These shall include:-

28.8.1.1 the cost of detection of the defect, removal, transportation, repair, replacement, reinstallation, inspection, re-testing of the WORK, MATERIALS, EQUIPMENT, facilities and services in question;

Delete entire clause. The Contractors warranty is limited to repair or replacement of the defective item/service, it is unreasonable for Contractor to accept responsibility for all consequential losses attributable to any warranty claim.


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Reference




28.2.1.2 cost of the COMPANY'S own personnel together with the proven cost of delay to work of other contractors caused, subject to a maximum of ten (10) %, of the aggregate amount of such other cost or the CONTRACT value, whichever is less;

28.2.1.3 Other resulting loss or damage incurred by the COMPANY that is not excluded under LIMITATION OF LIABILITY or stipulated as the responsibility or liability of the COMPANY or the CONTRACTOR under LIABILITY AND INDEMNIFICATION.


Clause No. 28.10

28.10 Effect of Rectification or Repair by COMPANY

28.10.1 Any repairs or replacements carried out as described above shall be deemed to be effected and made by the CONTRACTOR, and the guarantee concerned shall remain in effect provided that:-

28.10.1.1 The same does not result in any detriment to the WORK, MATERIALS, EQUIPMENT, facilities and services in question; and The WORK, MATERIALS, EQUIPMENT, facilities and services in question shall be held available for inspection by or on behalf of the CONTRACTOR

Delete entire clause. It is unreasonable to expect the Contractor to guarantee work performed by others.


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for 45 days thereafter.


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Reference





Clause No. 28.13

Proposed new clause as follows:

“The foregoing remedies set out in Clause 28 shall constitute the COMPANYs sole remedy and the CONTRACTOR’s sole liability for any defects in the SERVICES, WORK, Equipment or any Materials incorporated into or supplied as part of the SERVICES and for the consequences of such defects. All other warranties, express or implied, statutory or otherwise of merchantability or fitness for purpose are expressly excluded herefrom”.

The Warranty for rework is the most appropriate remedy in the circumstances and Contractors warranty is limited in this regard.


Clause No. 29.5.1.2

The CONTRACTOR shall be responsible for all costs related to such initial investigations and opening up and such further investigations and further opening up of the WORK, and notwithstanding the provisions of CHANGES IN THE WORK, any VARIATION TO CONTRACT issued under this clause shall not entitle the CONTRACTOR to claim any extra cost or extension of time.

Insert “direct, reasonable and substantiated” prior to the word “costs” on the first line.

The Contractor requests that any inspection costs are mitigated as far as reasonably practicable.


Clause No. 29.7.1

Unless otherwise provided in this clause, the CONTRACTOR shall be responsible for all costs of uncovering, testing, inspection, repair, replacement and reinstating the WORK or MATERIALS,

Insert “direct, reasonable and substantiated” prior to the word “costs” on the second line.

The Contractor requests that any costs are mitigated as far as reasonably practicable.


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EQUIPMENT, facilities or services to be incorporated into or used for the WORK.


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Reference





Clause No. 38.2.3.2

In such event, the CONTRACTOR shall be liable for all costs and expenses incurred by the COMPANY as a result of the suspension.

Insert “direct, reasonable and substantiated” prior to the word “costs” on the first line.



Clause No. 39.4.1.1/39.4.1.2

36.4.1.1 any additional costs incurred by the COMPANY as a result of the default of the CONTRACTOR,

36.4.1.2 any costs incurred by the COMPANY in having the CONTRACT completed by another contractor in excess of the amount provided in the CONTRACT.

Insert “direct, reasonable and substantiated” prior to the word “costs” on the first line of each.

The Contractor requests that any costs are mitigated as far as reasonably practicable


Clause No. 41.2

If at any time there shall be evidence of any lien, attachment, charge or claim of which, if established, the COMPANY or its property might be subject and which is made against the CONTRACTOR, the COMPANY shall have the right to retain out of any payment to be made under the CONTRACT an amount sufficient to indemnify the COMPANY completely against such lien, attachment, charge or claim and set-off the same against any amount due to the CONTRACTOR under this CONTRACT or otherwise.

Delete “or otherwise” at the end of the clause.

The Contractor requests that any right of set-off is restricted to payments due under this contract only.


Clause No. 56

New Clause Proposed as follows:

“Save in respect of Clauses 10 and 17 and notwithstanding any provisions to the contrary elsewhere in the CONTRACT, the

The Contractor requests the insertion of an overall limitation of liability into the contract. It may be onerous for the Contractor to enter into the contract


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without the inclusion of a suitable cap on liability.


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Reference




CONTRACTOR GROUP’s total cumulative liability to the COMPANY, even if the liability asserted is based on negligence (whether active or passive) or other fault or strict liability and regardless of whether the action is based on contract, tort, statute or otherwise arising out of or in relation to the performance of the CONTRACT, for delay, defective performance, breach of warranty/indemnity, suspension and/or termination shall be limited in aggregate to [insert value]. Save in respect of Articles 10 and 17 COMPANY shall indemnify and hold harmless the CONTRACTOR GROUP from and against any liability of the CONTRACTOR GROUP to the COMPANY in excess of 50 per cent of annual Contract value irrespective of cause including the negligence (whether active or passive) or other fault or strict liability and regardless of whether the action or claim is based on contract, tort, statute or otherwise of CONTRACTOR GROUP”


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29.0Document C, Part 2 Appendix 1 – Confidentiality Agreement

Clause No. 4

In this Agreement “Affiliated Company” shall mean any company or legal entity which (a) controls either directly or indirectly a Party; or (b) which is controlled directly or indirectly by such Party; and (c) is directly or indirectly controlled by a company or entity which directly or indirectly controls such Party; and

Delete the 2nd and 3rd paragraphs (affiliates definition) and insert:

“In this Agreement “Affiliated Company” shall mean any subsidiary or parent or holding company of a Party on any co-venturer and any other subsidiary of such parent, holding or co-venturer company”

Given the shareholding in the PSN Philippines corporation, the current definition seeks to exclude PSN from the definitions and any of our affiliates involved in the work. This could prove onerous if PSN are actually carrying out the work and we could be in breach with any disclosure.


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Reference




“Control” shall mean the beneficial ownership or the right to exercise 50% or more of the voting shares or the equivalent rights of an entity to determine the decision of such entity.

30.0Document C, Part 2 Appendix 1 – Confidentiality Agreement

Clause No. 7

Subject to the last paragraph of this Clause and Clause 16, and without limiting the rights of the Disclosing Party at law, the Receiving Party agrees to indemnify and keep indemnified the Disclosing Party in respect of all claims, losses, liabilities, costs or expenses of any kind (including, without limitation, legal costs on a solicitor and own client basis) incurred directly (including, without limitation, in connection with the enforcement of this Agreement) or indirectly as a result of a breach by the Receiving Party of any of its obligations under this Agreement.

Insert “direct, reasonable and substantiated” prior to the word “claims” on the third line of the fourth paragraph


31.0 Document C, Part 2 Appendix 4 – Bank Guarantee

The Contractor requests that the Bank Guarantee is governed by English Law as the Contractor has a UK based bank.

32.0Document C, Part 3 – Schedules of Prices and Rates

Clause No. 1.5

Contractor acknowledges the Company requirement for rates to increase as per Philippine CPI. However if the CPI is not enough to meet market expectations Contractor may be unable to retain personnel.


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Reference




Contractor would therefore request that Company is willing to enter into discussions on adjusting rates, if CPI increase falls behind the market and personnel retention is prejudiced.


Clause No. 1.13

Insert a new sub-clause as follows:

Non availability of COMPANY provided permits to work.

Contractor can envisage a situation where permits may not be available and the Personnel are on ‘standby’.


Schedule 2.1

Please insert the following:

‘The Expat / Non Local portion of Part C, Schedules 2.1 are priced on the basis of Western Expatriate Personnel. The costs of these personnel are in GBP Sterling. The GBP: USD exchange rate used to convert the GBP costs to USD is 1GBP = 1.43USD. The Expat / Non Local portion of schedule 2.1 is 70%. In the event that the GBP:USD exchange rate fluctuates by more than +/- 2%, CONTRACTOR will reconcile it's billings taking cognisance of any currency fluctuation in excess of the 2%, on a quarterly basis. Contractor proposes to use www.oanda.com to find the average exchange rate over the quarter.

Contractor request fluctuation clause be inserted as Contractor believes it is unreasonable to ask Contractor to take significant currency risk.


Signature:

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http://www.oanda.com/



Reference





Schedule 3.1, 3.1 (additional) and 4.5.


‘The Expat / Non Local rates in Part C, Schedules 3.1, 3.1 (additional) and 4.5 are priced on the basis of Western Expatriate Personnel. The costs of these personnel are in GBP Sterling. The GBP: USD exchange rate used to convert the GBP costs to USD is 1GBP = 1.43USD. In the event that the GBP:USD exchange rate fluctuates by more than +/- 2%, CONTRACTOR will reconcile it's billings taking cognisance of any currency fluctuation in excess of the 2%, on a quarterly basis. Contractor proposes to use www.oanda.com to find the average exchange rate over the quarter.



Schedules 3.1, 3.2, 4.1, 4.2, 4.3 and 4.4


‘The Local rates in Part C, Schedules 3.1, 3.2, 4.1, 4.2, 4.3 and 4.4 are priced on the basis of Local Filipino Personnel. The costs of these personnel are in Philippine Pesos PHP. The PHP: USD exchange rate used to convert the PHP costs to USD is 1PHP = 0.2058USD. In the event that the PHP:USD exchange rate fluctuates by more than +/- 2%, on a quarterly basis. Contractor proposes to use www.oanda.com to find the average exchange rate over the quarter.



Signature:

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Reference




37.0Document C, Part 3 – Schedules of Prices and Rates, Schedule 7

Clause No. 5

Pursuant to clause 4 above, all claims in relation to performing services at off-base location must be substantiated with original receipts or invoices. COMPANY shall not be obliged to make any payment for off-base services claims until such original receipts or invoice has been received by COMPANY.

Please delete ‘original receipts or invoices’ and insert ‘copy receipts or invoices’.

Contractor requests that copy receipts are acceptable to Company for any expenses under this Clause as Contractor requires the originals for his own accounting purposes.


Schedule 4.1, 4.2, 4.3 & 4.4 In the event that COMPANY requests these positions to be filled by non-local then rates can be provided on an individual discipline basis.

TENDERER will deploy local personnel to fill these roles


Schedule 10.1 It would be PSN's intention to continue using vendors for this work with reimbursement at Cost + 12%.

PSN currently use outside vendors for some of the above packages as we do not hold these in house.

Note:

If there is any qualification, TENDERER shall submit the qualification in hardcopy as well as in a CD (either as word or excel files). The CD shall be label Technical Submission:

Qualifications.


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Signature:

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TECHNICAL APPENDIX TA-2: PROPOSED ALTERNATIVES

1. If the Tenderer wishes to submit an alternative offer based upon modifications to DOCUMENT C – CONTRACT, the Tenderer may include such alternatives in this Appendix. The Tenderer must state in the appropriate submission, the precise details of both the original requirement and the suggested alternative(s) together with the reasons for the alternative(s) and the effect, if any, on the prices and rates in Commercial Appendix No. CA1 - SCHEDULES OF PRICES AND RATES if the alternative(s) were to be accepted by the COMPANY. Alternatives must be clearly distinguished from Qualifications. Alternatives do not affect the offer made by the Tenderer in the FORM OF TENDER; they are alternative offers. A Tender would not be rejected because it contains alternatives.

2. The Tenderer is encouraged to develop and propose alternatives that will reduce the rates and prices or improve the services required by the COMPANY, however this can only be done after tenderer has submitted a Base Tender. Alternatives shall be presented in a manner that enables the COMPANY, at its sole discretion, to accept or reject any or all of the Tenderer's proposed alternatives.

3. The Tenderer shall enter in Technical Appendix No. TA2 either:

(1) A statement in his Technical Submission as follows:

"There are no alternatives proposed to this Tender".

or

(2) A statement in his Technical Submission as follows plus full technical details of all alternatives if the alternative is accepted by the COMPANY. Full details of the commercial/price implications of the alternative should be set out in Tenderer's Commercial Submission.

"The Tenderer proposes the following alternatives. You may accept or reject each alternative at your sole discretion."

Proposed Alternatives

PSN offer an alternative proposal for SPEX to consider, that can provide

potential cost reductions and performance efficiencies.

PSN would welcome the opportunity to further explore the following

proposal+ outlined below, and any which SPEX would wish PSN to

consider.

The following services are currently established and provided by PSN to

PSPC at the Tabangao Refinery. These facilities are established and could

be utilised to support the SPEX assets.

Medical staff cover

Medical facilities

Fabrication Shop resources

Insulation shop resources

Paint shop resources

PSN owned equipment utilisation

PSPC/SPEX owned equipment utilisation

General ground services (grass cutting, pest control, etc.)


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OGP/PSPC site supervision

Planning services

HR support

Training co-ordination

Construction supervision and support resources

The scope for shared services is greatest between PSPC Refinery and the

SPEX OGP due to close proximity of both sites, the PSN onsite

establishment, the similarities in the scope of the services required and

range of resources (personnel and equipment) available onshore.

The synergies offshore are less widespread but still significant. Offshore

requirements for some items of equipment are specific and would not be

relevant to that available in some cases onshore, e.g. diesel powered

equipment would need special features for use in Zone 2 areas offshore.

Synergies with personnel have been recognised previously when

fabrication work has been undertaken for SPEX by the PSN PSPC team and

offshore installation work has been undertaken on the Malampaya facility

by personnel from both PSN Batangas and PSN Melbourne.

The scope of service for the SPEX contract has may synergies in

organisation that would lend themselves to a shared environment as listed

above. We would suggest that an organisation defined to manage the

combined services would result in lower overall numbers of personnel

which would deliver reduced costs to the Shell group. Commercial

arrangements for charging would however have to be defined and agreed

between al parties.

The quantum of work within the SPEX contract is not at this stage

specifically defined. WE understand that SPEX are progressing to revise

maintenance strategies and routines. The organisations proposed in our

tender has been set by PSN at the indicative numbers provided by SPEX.

We would welcome an opportunity to review resource requirements

against more specific data on maintenance manhours and forecast

engineering requirements to determine the optimum resource

requirements and strategies which would give the most efficient use of

manpower and lowest cost options for forecast workscope.




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TECHNICAL APPENDIX TA-3: PART 3 - SCHEDULES OF PRICES AND RATES (UNPRICED)

1. Tenderers shall quote ALL the required prices and rates in DOCUMENT C, PART 3 - SCHEDULES OF PRICES AND RATES and submit the “UN-PRICED QUOTATION” as part of TECHNICAL PROPOSAL for COMPANY verification.

The un-priced quotation submitted in the TECHNICAL PROPOSAL shall only have the following quotation: -

"Q" For “QUOTED PRICE”."NQ" For “NO QUOTE” or “NOT AVAILABLE”“Indicate the number of Personnel” (for SCHEDULE NO. 1 only)“State the location of office(s) & nationality” (for SCHEDULE No. 4.5 only)

Our unpriced quotation is included in Attachment TA3.1

2. Modification, alteration, addition etc. to the COMPANY format in DOCUMENT C, PART 3 - SCHEDULES OF PRICES AND RATES is STRICTLY PROHIBITED and doing so will automatically disqualified Bidder's COMMERCIAL PROPOSAL submission.

3. The Tenderer shall complete the relevant prices and rates in the Schedules set out in Document C PART 3: SCHEDULE OF PRICES AND RATES.

The Tenderer shall review the invoicing pro-forma included in Document C PART 9 ADMINISTRATION INSTRUCTIONS and confirm or otherwise its agreement to the proposed application of Philippine taxes, if any, shown thereon. Where Philippine taxes do not apply, Tenderer is to sign Box C below.

A. Agree with proposed application of Philippine taxes

B. Disagree with proposed application of Philippine taxes

C. Philippine taxes do not apply

Signed: …………..……….. Signed: ………..…………… Signed: ……………....….

If B & C above, state reason: ……………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

4. The Bidder shall enter its company name and chop and sign each page of this Appendix.

5. THIS APPENDIX SHALL BE INCLUDED IN TENDERER’S TECHNICAL SUBMISSION ONLY.


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TECHNICAL APPENDIX TA-4: TENDERER’S PROPOSED CONTRACT MANAGEMENT AND ORGANISATION SET-UP

1. Tenderer shall provide organisation chart showing proposed structure, team members and reporting relationship with clearly defined roles and responsibilities. The organigram for the Maintenance and Engineering Services Contract (MESC) team showing job titles, categories, nationality (Local or Expat.) and reporting lines. The organigram should show all reimbursable key personnel and non-reimbursable personnel, and the relationships between the two. The organisation chart shall show all staff (CONTRACTOR’s plus SUBCONTRACTORS’ plus all agency staff).

2. The Tenderer shall provide a detailed narrative describing the roles and responsibilities for each team member.

3. The proposed organisation including the line responsibility / reporting shall as a minimum consist of the following:

Management team Engineering teamMaintenance team SAP support teamPost contract administration team for coordination & management of SPEX’s assigned

contracts and Tenderer’s sub-contracts.Minor fabrication team, etc

4. A tentative CONTRACTOR”s organisation envisage by COMPANY for this contract is attached as Figure 1 (below) for Tenderer’s reference and consideration. Tenderer may propose something similar or propose alternate Organisation chart that would best suit COMPANY’s needs. Tenderer is encouraged to propose a comprehensive organisation chart that best demonstrate effective line of communication with define roles and responsibilities as well as effective cooperate support from regional or head offices.

5. The Tenderer shall ensure that personnel proposed for the respective positions possess the necessary experience and qualification to enable them to carry out their work efficiently, effectively and professionally.

6. Tenderer proposed organisation charts shall have name individual to the proposed positions. The proposed CONTRACTOR’s organization chart shall clearly identify those that are part of the fixed monthly management fees, monthly salary and hourly rates personnel.

7. The proposed organisation shall demonstrate capacity to provide between 250,000 to 350,000 man-hours of services annually in accordance with the range of resources requirement.

8. The tentative category and base of service of tenderer’s proposed personnel as follow:

At Greater Manila Area: Project Management team, SAP supports, Engineering Lead, Maintenance Lead, etc.

At Onshore Gas Plant: Engineer, Lead technician, technician, trades, dual trades & craftsmen.

At SWP: Engineer, Lead technician, technician, trades, dual Trades & craftsmen.

9. The Tenderer shall also provide detailed information on the following

(a) Name(s), address(es), telephone/fax nos., e-mail and name(s) of contact person(s) of any principal, SUB-CONTRACTOR, joint-venturer, parent/associate/subsidiary company with whom the Tenderer is proposing to carry out any part(s) of the works;

(b) Distribution/allocation of responsibilities for execution of the WORK between the Tenderer and their principal, SUB-CONTRACTOR, joint-venturer, parent/associate/subsidiary company;


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TECHNICAL APPENDIX TA-4: TENDERER’S PROPOSED CONTRACT MANAGEMENT AND ORGANISATION SET-UP (CONT’D)

10. This information is required to enable the COMPANY to assess the Tenderer 's understanding of their responsibilities in execution of the WORK, their capability in organising their various resources in executing WORK onshore and offshore. The Tenderer may therefore, submit any other information it considers appropriate, to enable the COMPANY to have a complete understanding of their proposed organisation.

11. Tenderer to confirm whether Tenderer is a Domestic Corporation, Resident Foreign Corporation or Foreign Corporation.

- For Domestic and Resident Foreign Corporation, Tenderer shall provide evidence of registration with the Bureau of Internal Revenue (BIR) and Securities and Exchange Commission (SEC).

PSN can confirm we are a Domestic and Resident Foreign Corporation and

have attached copies of our BIR and SEC certificates in Attachment TA-4.11

- Tenderer is a Foreign Corporation bidder shall confirm commitment to set-up a legal entity in the Philippines and register with BIR and SEC within 4 to 8 weeks after award this tender (if any).

PSN has carried out a detailed review of the scope of work contained within

the SPEX ITT. We understand the business need to move the asset from a

reactive organisation to a proactive, top quartile performing organisation.

PSN proposes to implement an organisation that would drive the required

changes by capitalising on its corporate experiences both locally within the

Philippines and globally throughout the PSN network. The network has

strong links to recent success gained in the UK North Sea where two Shell

Central assets scored joint 1st and 2nd place in the global Operational

Excellence (OE) measures.

PSN has supported Shells Operational Excellence/Total Reliability journey

for a number of years and has learned that in order to drive the necessary

changes, both internally and externally within the Shell organisation, a

strong and proactive management team is required.

The proposed team lead by Alan Russell consists of 6 senior team

members, which have the necessary skills and competencies, required to

manage positive changes in the wider team both on and offshore. The

experience and qualifications of the team are shown in more detail in TA -

05.

The PSN team will help drive the required improvements by following the

Shell process guides contained within the OE’ framework. It is envisaged

that a number of the lead roles highlighted in the proposed organisation

would become ‘OE’ blade owners, thus putting clear ownership and

accountability into the PSN organisation. This approach is proven to

deliver measurable and sustained continuous improvement.


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Proposed organisational charts for :

1. Onshore Gas Plant -OGP

2. Offshore -Shallow Water Platform SWP

3. Onshore Manila Area Organisation


Signature:

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Signature:

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Signature:

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Organisational narrative for key roles

It is the intent to move towards high percentage localisation within the

Philippines throughout the contract life, this will be dependant on

achieving the necessary competencies locally.

Key positions within the proposed organisation are as follow:

Project Manager – Alan Russell is responsible for the safety of all

personnel and quality of services being offered to SPEX. Key points

are ensuring all aspects of the contract are followed and that all

personnel working within the PSN organisation or subcontract

support network are working within the rules set out and agreed.

Maximising PSN’s experience globally and taking forward solutions

to technical and organisational issues that will enhance the

Malampaya asset.

Maintenance Lead – Lee Dickinson is accountable in ensuring

both the onshore and offshore team is working in accordance to the

Operational Excellence frame work and that the quality of routine

and non-routine activity is to the correct standard. SAP is used to

drive reliability improvements by ensuring the work preparation and

scheduling is conducted. That all technicians have the correct skills

and competencies required to carry out their duties and that

support is available. The correct history is entered so the review

and improve loop can be sustained improving asset reliability and

uptime.

Engineering Lead – Euan Cameron is accountable ensuring that

the engineering quality locally is to the correct standard and that

the local Filipino engineers are being supported and mentored.

Engineering is entered in accordance with the planning process. As

the hours within the ITT are only estimates this position will be

reviewed depending on engineering through put.

HSEQ Lead – Tito Lejero will help ensure that Health, Safety,

Security, Environmental and Quality aspects of the PSN service at

SPEX locations is being upheld, and that we are an organisation

that is constantly seeking Zero incidents on a daily basis. Tito

would be a shared resource between PSPC and SPEX however

supported by a dedicated HSEQ focal point within the project.

OGP supported from PSPC Tabangao – John Padmore, on a daily basis,

will support the onshore gas plant maintenance supervisor, ensuring that

the PSN standards are being met and that efficiency gains between both

plants can be obtained.

Capacity - Shell estimate 250,000 to 350,000 hours per year


Signature:

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PSN has the ability to both grow and reduce the manpower requirements

to suit SPEX’s needs; this applies to both the maintenance and engineering

support services.


Signature:

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Locally the manpower fluctuations can be large and for short periods can

be challenging. PSN has a good working relationship with the local

Barangauy Captains in Batangas and we understand the rules associated

with employing local personnel.

One of the main foundations within PSN is the utilisation of the network

and the transfer of both manpower and expertise globally. Detailed plans

are set out in advance for large scale up man/down man requirements and

are controlled through the network. This can range from 1 to 500+ plus

people depending on the scope.

Specialised support services are also used to support the projects through

a number of larger hubs globally:

The engineering support model proposed for SPEX explains in detail

the use of the network and the ability to move either work or

resources to meet increasing demand at all levels of complexity.

(Ref TA-15)

PSN has a network of engineering offices which can quickly support

the Shell Malampaya asset. We have provided blended rates for

provision of services out-with the Philippines. This allows us to

utilise available engineering capacity in the PSN network, reducing

the response time for the client.

PSN since its separation from KBR has developed its engineering and

maintenance standards and processes from the foundation level. The

network has enabled the use of standard process and procedures globally.

2. Roles and Responsibilities

For details of the roles and responsibilities for our team members, please

refer to Attachment TA – 04.2.

9. PSN Sub-contractor Details

PSN Sub-contractor details can be found in Attachment – TA 14.2 located

in TA – 14.

11. PSN Philippine Entity

PSN can confirm we are a Domestic and Resident Foreign Corporation and

have attached copies of our BIR and SEC certificates in Attachment TA-4.11


Signature:

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Our methods for measuring and reporting performance allows us to

react quickly to ensure our shared objectives are met.Currently at the

PSPC refinery PSN over a 3 month period recruited 532 personnel on

direct hire and 76 personnel through a 3rd party subcontractor. In

preparation for the turnaround more than 550 individuals have received

training. The use of the training HSE SHELTER has played a key part in

ensuring all these additional personnel met our minimum safety





Signature:

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TECHNICAL APPENDIX TA-4: TENDERER’S PROPOSED CONTRACT MANAGEMENT AND ORGANISATION SET-UP (CONT’D)

FIGURE 1: NOTIONAL CONTRACTOR ORGANISATION

Note:

i). Tenderer shall expand on above notional contractor’s organisation and clearly indicate the number of personnel propose for each proposed position.

ii). Tenderer may also propose alternate organisation chart, which best meet MESC requirement.


Signature:

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TECHNICAL APPENDIX TA-5: CURRICULUM VITAE OF PROPOSED KEY PERSONNEL

1. Provide latest and detailed CV's for all Key personnel proposed for the MESC Team. Tenderer shall ensure that all key personnel meet the minimum requirements in terms of qualifications and experience as set out in DOCUMENT C – PART 7, SPECIFICATION and any additional requirements set out in these ITT Documents or subsequent Technical Clarifications.

2. In addition to the CVs, Tenderer shall provide a Summary of all the key personnel proposed for key MESC positions in the format as set forth in TABLE 5-1 as well as detailed individual CV as set forth in TABLE 5-2.

3. Tenderer shall provide the following key personnel for start within 60 days from Contract effective date.

No. Description

1.0 Project Manager

2.0 QA/QC Manager or lead *

3.0 HSSE Manager or lead *

4.0 Maintenance Lead *

5.0 Engineering Lead *

6.0 Maintenance Engineers (2 pax.)

7.0 SWP Lead Technician * (Mechanical, Electrical and Instrumentation – 2 pax. for each discipline. Total 6 Pax.)

8.0 OGP Lead Technician * (1 pax.)

Note: * Must be full time personnel

4. The Tenderer shall ensure that personnel proposed for the respective positions possess the necessary experience and qualification to enable them to carry out their work efficiently, effectively and professionally.

5. All personnel shall be subject to COMPANY's approval.




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TECHNICAL APPENDIX TA-5: CURRICULUM VITAE OF PROPOSED KEY PERSONNEL (CONT’D)

TABLE 5-1: SUMMARY OF KEY PERSONNEL

Item Position Name Age Nationality Qualifications Professional accreditation (if any)

Total experience (years)

Number of years in oil & gas

industry

Number of years in proposed

position

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

Item Position Name Age Nationality Qualifications Professional accreditation (if any)

Total experience (years)

Number of years in oil & gas

industry

Number of years in proposed

position

1.0 Assignment Manager

Alan Russell 33 British PG Cert, NVQ LV5

In management

Member of Management

Institute

16 16 4


Signature:

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2.0 Maintenance Lead

Lee Dickinson 35 British HND Member of Control & Automation

Institute

12 12 5

3.0 Engineering Lead Euan Cameron 46 British MSc, BEng, HND, HNC

- 25 25 2

4.0 HSE Manager Tito Lejero 40 Philippines

NEBOSH ASPP 13 10 10

5.0 Mechanical Engineer

Hugh Spiers 49 British City & Guilds - 33 27 12

6.0 Implementation Team Lead

Peter Walton 64 British OIM Qualification

NEBOSH

Member of Energy Institute

48 40 7

7.0 Business Services Manager

Ron Noakes 61 British ONC Member Association of Cost

Engineers

42 32 15

8.0 E&I Coach Kevin Docherty 27 British BEng - 33 27 12

9.0 Mechanical Coach

Niranjan Panchal

44 Indian BSc - 22 22 ?


Signature:

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TECHNICAL APPENDIX TA-5: CURRICULUM VITAE OF PROPOSED KEY PERSONNEL (CONT’D)

TABLE 5-2: FORMAT FOR CV OF PROPOSED KEY PERSONNEL

DESIGNATION:

NAME : PASSPORT NO.:

NATIONALITY: AGE:

MARITAL STATUS:

TELEPHONE NO :

ACADEMIC QUALIFICATIONS

SKILL PROFILES

WORKING EXPERIENCE (IN CHRONOLOGICAL ORDER, STARTING WITH MOST RECENT)

CURRENT DUTIES AND RESPONSIBILITIES


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DESIGNATION

ASSIGNMENT MANAGER

NAME :

Alan Russell

PASSPORT NO :

NATIONALITY :

British

AGE :

33

MARITAL STATUS :

Married

TELEPHONE NO:

+44 (0) 1224 777777


Working towards “Chartership Currently” in Management

Post Graduate Certificate in Business Management - RGU

NVQ Level 5 in Business Management

Higher National Modules in Engineering - RGU

BP Apprenticeship: Indentured Apprenticeship with BP

NVQ Level 3 Instrumentation & Maintenance

ONC Measurement & Process Control

ONC Mechanical Engineering

SKILL PROFILES

Experienced Maintenance & Engineering Team Leader, with proven track record in

managing all aspects of multi skilled teams and delivering against targets.

Committed to health, safety and environmental performance.

Proven leadership and enjoy working as part of a team and able to operate in

challenging and changing circumstances. A keen eye for detail, ensuring that

work is planned and completed to a high standard ensuring safety, asset integrity

and the environment is protected at all times.

WORKING EXPERIENCE (IN CHRONILOGICAL ORDER STARTING WITH THE MOST RECENT)

January 2004 to Date – PSN

Central Asset Delivery Manager

January 2001 to 2004 - KBR

Onshore Asset Focal Point – Asset focal points for 3 platforms owned by Shell

International

January 2000 to January 2001 - Brown & Root


Signature:

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A member of a technical support team supporting 5 assets for Shell.

Varco Rigtech - (May 1999 to December 1999)

Worked in Japan, Norway & France commissioning control systems on drill rigs,

worked in a team tackling software and hardware problems. Taking the project

from the design stage through to implementation managing a small team of

technicians

February 1998 to April 1999 - Brown & Root

A member of a maintenance / operations support team

April 1996 to February 1998

A member of Forties Charlie operations and maintenance team

1996 - BP Miller Production Platform

Instrument Technician

Onshore and offshore assets with BP 1992 to 1996 during the 4 year

Apprenticeship scheme


Currently the Central Asset Delivery Manager managing all aspects of both

onshore and offshore Engineering, Projects & Maintenance activities. The role is

both strategic and operational ensuring the offshore teams are working efficiently

on a daily basis and that the contract goals are being achieved and continuous

improvement forms part of the base business. Major Projects, Engineering CP’s

and Maintenance support are the main work groups working for the delivery

manager role.

Detailed below is a breakdown of the key responsibilities:

HSE – Play a lead role in achieving exceptional Safety Performance, through

taking an active role in improving the safety culture within Sigma3 and Shell. This

has involved ensuring that Shell’s Performance through HS&E and STOP

programmes are communicated effectively to all core and non-core personnel

involved in the onshore and offshore organisation. An important part of this is

regular visits offshore where I am able to convey the company message and my

own commitment to HSE.

Asset Integrity – Have achieved all KPI targets for Safety critical routine and non-

routine maintenance measures, this has been achieved by ensuring offshore team

leaders and maintenance technicians have clear accountabilities and

understanding the importance of the planning.

Cost and Planning – Responsible for developing and delivering the annual

maintenance & engineering budget circa $180 million for the Central Asset in

2008. Healthcare contracts and extraordinary maintenance items form part of the

budget management.

Reliability Improvements – Have driven reliability improvements to achieve high


Signature:

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asset utilisation, through the application of root cause analysis techniques. Other

techniques used are Equipment Improvement Team’s where the maintenance and

operations teams don’t just use the equipment but care for it and take ownership.

This is then audited against set criteria.

Leadership – Have considerable experience of managing organisational change

both onshore and offshore. My leadership style is lead by example setting

standards and creating an environment that people working with me feel

comfortable giving feedback openly honestly and with respect. I also like to make

people feel they make a difference regardless of their level within company.

Accountable for a core of 166 offshore team members and 70 onshore support

personnel, who include project managers, project engineers, engineers and

support services personnel.


Signature:

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DESIGNATION

MAINTENANCE LEAD

NAME :

Lee Dickinson

PASSPORT NO :

JA883501B

NATIONALITY :

British

AGE :

35

MARITAL STATUS :

Married

TELEPHONE NO:

+44 (0) 1224 777777


HND Electronics

HNC Instrumentation and Control

ONC Instrumentation and Design

T.T.E and Northumbrian Water Ltd. (4-year Instrumentation

Apprenticeship)

SKILL PROFILES

An enthusiastic Maintenance Engineer with significant management and technical

experience in the Energy Sector. Recently at the forefront of major business improvements

in maintenance for a major Oil company, where I worked my way from Technician to Lead

Engineer. Previously commissioning for major companies in the Rail, Petrochemical,

Pharmaceutical, Power, and Oil and Gas industries. Ambitious, and keen to further a career

in maintenance business improvement, and expand upon existing skills to meet future

challenges. Computer literate, with a working knowledge of most process control packages,

and the latest SAP E-Business platform.


January 2008 to Date - Sigma3, Shell Central Onshore Support

Maintenance Lead

April 2005 to January 2008 - Sigma3, Shell Gannet Onshore Support

Senior Support Engineer (Focal Point)

October 2004 to April 2005 - Sigma3, Shell Central Onshore Support

Instrument Maintenance Engineer

July 2004 to October 2004 - Sigma3, Shell Shearwater Onshore Support

Instrument Maintenance Engineer


Signature:

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January 2000 to July 2004 - AMEC Offshore Ltd, & KBR.

Instrument Maintenance Technician

Shell Shearwater Platform

September to January 2000 - Whessoe Ltd


DEPA LNG tanks, Revisthoussa Island, Greece

May to September 1999 - Marconi Communications

Integration Engineer

Jubilee Line Ext. London.

March to May 1999 - NES Ltd

C & I Technician

Killingholme ‘A’ Powerstation.

November to March 1999 - Wood Group Ltd

INSTRUMENT COMMISSIONING Technician

Shell St Fergus LNG Plant

July to November 1998 - AOC Brown And Root


ICI Aromatics 2 Shutdown

March to July 1998 - Das Island train 1 Shutdown.

Instrument Specialist

July to March 1998 - Watson Norie, Zeneca Huddersfield.


April to June 1997 - Costain, Das Island train 3 Overhaul.


November to April 1997 - Morgan Moore Ltd


Smithkline Beecham Project, Essex.

August to November 1996 - CIBA, Grimsby


Irgasan 500 Project.

July to August 1996 - M.W. Kellogg

Instrument Inspector


Signature:

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Conoco – VAC 3 Project.

April to July 1996 - Aeromatic-Fielder

Instrument Validation Technician

Pharmaceutical Project

March to April 1996 – Costain


Das Island LNG train 2 Overhaul, Abu Dhabi.


Onshore Maintenance Support Team to the Gannet, Nelson, Shearwater platforms,

and the Anasuria FPSO. Line report for the offshore Maintenance teams.


Signature:

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DESIGNATION

ENGINEERING LEAD

NAME :

Euan Cameron

PASSPORT NO :

NATIONALITY :

British

AGE :

46

MARITAL STATUS :

TELEPHONE NO:

+44 (0) 1224 777777


MSc Project Management (ongoing)

BEng (Distinction) Mechanical Systems Engineering

HND – Mechanical Engineering

HNC – Fabrication & Welding Engineering

SKILL PROFILES

25 years experience with both Oil & Gas Operator and Contractors and has a track

record of building motivating and managing teams to deliver customers

requirements in a safe and profitable manner. He has held Operational and

Management positions with increasing responsibility and accountability for

company business development, performance and profitability.

He has a good range of experience of International and UK offshore and onshore

industries which is complimented by a good engineering background and

experience in all areas of the oil & gas from conceptual studies, front end

engineering design, construction, hook-up & commissioning and operations &

maintenance.

WORKING EXPERIENCE (IN CHRONILOGICAL ORDER STARTING WITH THE MOST

RECENT)

April 2007 to Date - PSN

Senior Project Manager – International Operations

October 2006 to April 2007 - PSN

Project Manager – Engineering

BP Andrew Lower Cretaceous Field Development

EMAS Offshore Pte, Singapore


Signature:

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August 2003 to October 2006 - PSN

Project Manager - Operations & Maintenance

PTTEP BONGKOT & ARTHIT, Thailand

RE-ENGINEER

EEPCI, Chad

BAPETCO OBAIYED, Egypt

GUPCO, Gulf of Suez

BP SAQQARA, Egypt

CAIRN ENERGY, SANGU OPERATIONS Bangladesh

RWE NORTH IDKU, Egypt

YUKOS PRIOBSKOYE, Siberia

August 2002 to August 2003 - PSN

Integrity Technical Authority

ConocoPhillips ISC

October 1999 to August 2002 - PSN

Integrity Engineer

ConocoPhillips ISC

January 1999 to October 1999 - PSN

Construction Engineer

Total Dunbar MPP Project

February 1998 to December 1998 - PSN

Mechanical Engineer

Transco RCS Project

August 1997 to February 1998

Mechanical Engineer

Mobil Sage Terminal Extension Project

June 1993 to August 1997

Fabrications Engineer

Shell Brent LTFD Project

March 1993 to May 1993 - PSN

QC Engineer

Shell Nelson HUC Project


Signature:

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September 1992 to October 1992 - PSN

QC Engineer

Shell Gannet HUC Project

July 1992 to August 1992 - PSN

QC Engineer

BP Miller Development Project

October 1991 to June 1992 - Leuven Services (Aberdeen) Ltd

March 1992 to June 1992

QA/QC Surveyor

Mobil Beryl Alpha Gas Dehydration Project

January 1992 to March 1992

Vendor Inspector

Phillips Petroleum Co. and Unocal UK Ltd

October 1991 to January 1992

QC Inspector

BP Forties Artificial Lift Project

September 1991 to October1991 - AOC International Ltd

QC Inspector

Shell Fulmar FSU Structural Repair


Operations Manager responsible for contract implementation, execution and

performance of the following contracts:

Occidental Mukhaizna MVC Project, Oman – Provision of Commissioning and Close-

out Services

Kashagan East Experimental Programme Project – Hook-up and Commissioning

Services

Contract start-up Shell Gabon providing Engineering Services to Gamba, Toucan

and Rabi facilities

Responsible for provision of clear leadership and direction to project staff in the

provision of technical and operational support to both internal and external clients

ensuring alignment with Company core values and in particular Health & Safety.

Seconded to Middle East Operations, to assist with development of business

acquisition in the region - compilation of various proposals in response to

“Invitation to Tender” documents received, for various International Projects, for


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existing and potentially new clients, responsible for development from Pre-

Qualification through to Full Bid Submission.


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DESIGNATION

HSE MANAGER

NAME :

Tito Lejero

PASSPORT NO :

NATIONALITY :

Philippino

AGE :

40

MARITAL STATUS :

TELEPHONE NO:

(63)-9175044979


International General Certificate

Awarded with “Distinction” for NEBOSH-IGC 1, 2 & 3

National Examination Board for Occupational Safety & Health

Association of Safety Practitioners of the Philippines Inc

Association of Health, Safety, Security, Environmental Practitioners

SKILL PROFILES

Over eleven (11) years of experience in Petroleum & Lube-Oil Refinery

Maintenance, Hydro-Electric Plant Operation and Maintenance, Power Plant

construction, Industrial Plant construction with emphasis to Health, Safety,

Environment management, supervision and implementation. Background also

includes experience in strategy and formulation of applicable rules and

regulations in accordance with regulatory requirements for compliance. Have

worked closely with Engineering, Construction team, Operation & Maintenance,

client relations and HSE audit teams


May 2006 to Date – PSN

HSE Manager

August 1999 to April 2006 – KBR

HSE Manager

April 1996 to August 1999 – Manila Electric Company

Safety Engineer



Signature:

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Advising management in the formulation of Health, Safety and Environment Policy.

Administering the company’s Health, Safety and Environment Program.

Providing guidance to management in order to meet safety objectives.

Ensuring that the Company’s Health, Safety and Environment programs are in

compliance with Government regulatory requirements.

Formulate Pro-active Safety Programs.

Maintains an efficient accident record system.

Coordinate with Training Department for employee’s safety training requirements.

Waste minimization and management


Signature:

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DESIGNATION

MECHANICAL ENGINEER

NAME :

Hugh Spiers

PASSPORT NO :

NATIONALITY :

British

AGE :

49

MARITAL STATUS :

TELEPHONE NO:

+44 (0) 1224 777777


City & Guilds Craft I, II, III

City & Guilds Technicians I

ECITB Project Management

RGIT Offshore Safety & Fire Fighting, TOP-SET Incident Investigator

SKILL PROFILES

Since completing my apprenticeship with British Shipbuilders back in 1980 the last 28

years have been spent working in the onshore/offshore oil and gas industry. With a sound

construction background the last 10 years have been in senior engineering and

management roles within the UK and International assignments. Key positions held

include: Project Manager, Engineering Manager, Senior Project Engineer, Implementation

Focal Point, and Lead Development Engineer


November 2007 to Date - PSN

Engineering Manager

BP Onshore Compression & Terminals Integration Project


Topsides Project Manager

Gupco Rehabilitation Project, Cairo, Egypt


Senior Project Engineer/Engineering Manager

ExxonMobil SAGE Atlantic& Cromarty Project

January 2003 to August 2003 - KBR


Signature:

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Deputy Engineering Manager

December 1997 to December 2002

Senior Project Engineer

TFEE/HKBR ESC, Aberdeen

February 1996 to December 1997 – Brown & Root AOC

Lead Dev. Engineer/Implementation focal point

Shell Central ISC

June 1994 to January 1996 – Brown & Root AOC Ltd

Development Engineer

Shell Central ISC

December 1990 to May 1994 – AOC International Ltd

Development Engineer

Shell Central MMSC

January 1990 to December 1990 – AOC International Ltd, Great Yarmouth

Construction Engineer

Amoco ESD Valve/Platform Safety Project

July 1989 to December 1989 – AOC International Ltd, Peterhead

Fabrication Engineer

December 1988 to July 1989 – AOC International Ltd

Estimator

July 1987 to December 1988 – AOC International Ltd

Fabrication Supervisor

April 1984 to July 1987 – AOC International Ltd

Plater

October 1982 to April 1984 – AOC International Ltd (offshore)

Plater

September 1980 to October 1982 – Sea & Land Pipelines (SLP Ellon)

Plater

May 1980 to September 1980 - Oceanic Engineering/Crombie Fabricators,

Aberdeen

Plater

August 1975 to May 1980 - British Shipbuilders, Govan (Glasgow) & Hall

Russells (Aberdeen)


Signature:

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Apprentice Plater/Shipwright


Signature:

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The project scope includes installation of new gas compression, slug catchers,

liquid handling facilities, metering and new local equipment room to enable the

West Sole and Amethyst facilities to be integrated into BP Dimlington. This

includes the upgrade and replacement of existing equipment

Responsible for the direction, control, monitoring, supervision and co-ordination of

the engineering in accordance with the project, statutory requirements and

applicable engineering standards ensuring a consistent design philosophy and

standards by the engineering disciplines. Ensure the works were executed in

accordance with the agreed scope of work, budget and plan.

Promote effective communication and challenge within the engineering disciplines

in order to foster the production of safe, cost effective, fit for purpose and

constructible designs.

Ensure that long lead and critical packages are properly managed by the

responsible disciplines. Ensure technical compliance, cost control and scheduling

of engineering packages


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DESIGNATION

IMPLEMENTATION TEAM LEAD

NAME :

Peter Walton

PASSPORT NO :

NATIONALITY :

British

AGE :

64

MARITAL STATUS :

TELEPHONE NO:

+44 (1) 224 777777


NEBOSH Certificate

Management of Major Emergencies Offshore (MOME)

Onshore Emergency Response Leader (Risktek)

Accredited Auditor (Batalas Peteroleum, now lapsed)

Member of Energy Institute

SKILL PROFILES

WORKING EXPERIENCE (IN CHRONILOGICAL ORDER STARTING WITH THE MOST

RECENT)

2006 to Date - PSN (Bangladesh)

Senior Operations Manager

Sangu Gas Plant Dhaka, Bangladesh

2006 to 2006 - Upstream Petroleum (Australia)

FPSO Operations Manager

Crystal Sea Project. Mumbai, India

2005 to 2006 - Modec (FPSO Division)

FPSO Operations Manager

Elang/Kakatua EPS Pte Ltd, Jakarta, Indonesia

2004 to 2005 - Operations and Maintenance Support Services Ltd (UK)


Signature:

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Self employed consultant

2002 to June 2004 - AKER KVAERNER (E + C Singapore and SR Vietnam)

Operations and Maintenance Senior Project Manager

SR Vietnam (BP Nam Con Son Project)

2001 to 2002 - Aker Kvaerner Oil and Gas Limited

Country Manager, Malaysia

1998 to 2001 - Aker Kvaerner Oil and Gas Limited

Operations Manager, Aberdeen and Perth W Australia

1995 to 1998 - Bluewater Operations UK Ltd (Holland)

Offshore Installation Manager (OIM, FPSO) UK North Sea

1991 to 1995 - Health and Safety Executive (HSE), Offshore Safety

Division (OSD, Aberdeen)

Operations Inspector

1989 to 1991 - BP Exploration Ltd [FPSO OPV Seillean)

Offshore Operations Engineer

1987 to 1989 - BP Exploration Ltd (Belfast, Harland & Wolff, N. Ireland)

Senior Commissioning Engineer

1982 to 1987 - BP Exploration Ltd

Offshore Production Supervisor

1981 to 1982 - BP Exploration Ltd (Stornoway Shipyard)

Commissioning Supervisor


Junior Commissioning Engineer


Offshore Production Supervisor

1969 to 1976 - BP Refinery Kent Ltd

Relief Plant Operator

1959 to 1969 - HM FORCES

Attained the rank of Sergeant.


Managing Operations and Maintenance services, for Cairn Energy PLC. Facilities

comprise Offshore Gas Platform, pipeline and onshore Gas processing facility at

Chittagong


Signature:

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DESIGNATION

BUSINESS SERVICES MANAGER

NAME :

Ron Noakes

PASSPORT NO :

NATIONALITY :

British

AGE :

MARITAL STATUS :

TELEPHONE NO:

+44 (0) 1224 777777


ONC Business Studies

Member Association of Cost Engineers

SAP Process Expert

ORACLE Super User

SKILL PROFILES


April 1987 to Date – PSN

November 2006 to Date

Business Services Manager

BP Dimlington – OCTIP Project

April 2005 to October 2006


ExxonMobil A&C Project

November 2003 to March 2005

Project Controls / SAP Consultant

BNFL Sellafield

July 2003 to October 2003



Signature:

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ExxonMobil – Engineering & Construction

September 2000 to July 2003 / April 2002 to July 2003

Project Controls Manager

September 2000 to March 2002

SAP Consultant (Cost Management)

May 1999 to August 2002

SAP Key User (Project Systems (PMA - PEN)

August 1996 to April 1999

Project Services Manager - South Africa

March 1995 to August 1996

Cost Manager

March 1992 to March 1995

Project Services Manager

April 1991 to February 1992

Lead Cost Engineer

January 1990 to April 1991

Senior Cost Engineer

August 1987 to December 1989

Lead Cost Engineer

1985 to 1987 - Qatar General Petroleum Corp (QGPC)

Budget / Cost Control Engineer

1985 - Foster Wheeler Energy

Cost Control Engineer - Glaxo Pharmaceuticals, Annan

1984 to 1985 - Brown & Root International

Senior Cost Engineer

1980 to 1983 - Foster Wheeler Consultant (UAE)

Contracts Administrator - Zirku Island, Abu Dhabi

1977 to 1980 - Matthew Hall Engineering Ltd

Senior Cost Engineer - Drillmaster Conversion – Stornaway

1969 to 1977 – Foster Wheeler Power Products Ltd

1975 to 1977

Cost Engineer


Signature:

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1969 to 1975

Cost Controller

1966 to 1969 - Heortness Engineering Co. Ltd

Cost Accountant - Ship Repairers

1963 to 1969 – Kindbergs Ltd

Junior Accountant - Ship Repairers


Over thirty years experience in the Project Management and Control of

engineering and construction projects relating to onshore/offshore oil & gas,

pipelines, petrochem, pharmaceutical plants, power generation, paper and pulp,

breweries, soft drinks and mining. Contract types include lump sum, reimbursable,

partnering and alliance.

Overseas experience includes Abu Dhabi, Libya, QATAR, Dubai, South Africa,

Swaziland and Kenya.

Experienced in the use of both internal/external project management systems

including, Microsoft XP, ILS/Timeweb, HCMS, Primavera P3, SAP R2 and SAP R3

4.6d. SAP process expert and ORACLE Financials.


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DESIGNATION

ELECTRICAL AND INSTRUMENTATION COACH

NAME :

Kevin Docherty

PASSPORT NO :

099066134

NATIONALITY :

British

AGE :

27

MARITAL STATUS :

Single

TELEPHONE NO:

+44 (0)1224 777777


BEng Engineering (Honours)

BSc Instrumentation & Applied Physics

GSVQ III Industrial Plant Support

HND Measurement & Control Engineering

SKILL PROFILES

IOSH – Managing Safely (Awaiting Result OSMTD Mod 4)

NVQ Level III Maintaining Plant Support Instruments & Controls (MPSIC)

Low Voltage Electrical Safety Rules (Shell Expro)

Hazardous Areas (Comp Ex) (Expires 2011)

Root Cause Analysis (RCA)

Richard Jones Risk Assessment Coaches Course

OSMTD Module 1 Practical Supervision

OSMTD Module 2 Practical Communications

OSMTD Module 3 Employee Relations

OSMTD Module 4 Health & Safety

OSMTD Module 5 Planning, Quality & Control


September 2008 to Date - PSN

Operations & Maintenance Support Engineer

Exxon Mobil, BP, Cairn Energy, KNOC

October 2006 to August 2008 - PSN


Signature:

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Instrument & Electrical Lead

Exxon Mobil

May 2006 to October 2006 - PSN

Electrical & Instrument Maintenance Supervisor

Shell - Offshore Installation, Fulmar Alpha

March 2006 to May 2006 - Kellogg, Brown & Root

Electrical & Instrument Maintenance Supervisor

Shell - Offshore Installation, Fulmar Alpha

September 2004 to March 2006 - Kellogg, Brown & Root

Instrumentation Technician

Chevron Texaco, Exxon Mobil, Shell - Offshore Installations, Arthur Project, Horne

& Wren

Project

September 2004 to March 2006 - Kellogg, Brown & Root


Chevron Texaco, Exxon Mobil, Shell - Offshore Installations, Arthur Project, Horne

& Wren Project

June 2001 to September 2004 - AMEC Darlington/Aberdeen


BP, Shell - Refinery, Bonga FPSO

February 1998 to June 1998 - Neil Hart Electrical

Apprentice Electrician


I am involved with the onshore support for three projects. I am involved with

general onshore support and drawn into maintenance strategies and maintenance

builds for improved O&M site operations. I am also involved with preparing

technical documentation for projects. I have also been involved with the

Operations Delivery Frame Work (ODF) and Value Finder programmes. I have

been involved with CMMS for both Sap/Maximo on the project I am involved with.


Signature:

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DESIGNATION

MECHANICAL COACH

NAME :

Panchal Niranjan

PASSPORT NO :

NATIONALITY :

Indian

AGE :

44

MARITAL STATUS :

TELEPHONE NO:

+44 (0) 1224 777777


B.Sc Mechanical Engineering

SKILL PROFILES

Degree qualified mechanical engineer with 20 years field experience and a specialty in

rotating equipment.

Experience includes both onshore and offshore oil and gas production facility applications,

the majority of which has been on GT driven gas compression and GT driven. Power

generation packages but also includes static equipment packages.

Experience gained with a turbine OEM managing availability based service agreements for

packaged systems. Trained in Europe and fully familiar with international oil and gas

industry standards and Code of Practice.

Fully familiar with current maintenance practices focused on techniques to manage and

improve plant reliability and availability.

Experience managing teams of technicians providing troubleshooting, fault diagnosis and

maintenance and repair services to the oil and gas industry.


2007 to Date – PSN

Maintenance Support Engineer

January 2000 to January 2007 - Rolls Royce Pte Ltd, Singapore

Maintenance Engineer

January 1996 to January 2000

Rotating Equipment Consultant

January 1986 to January 1996

Mechanical Engineer


Signature:

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Technical authority on maintenance and technical support on production and

rotating equipments.

Mentor and develop site engineers and technicians.

Facilitate handover from projects to operation. Organizing start-up audit,

documentation and site performance tests.

Develop plans to map performance and integrity of critical equipments, control

systems and electric power distribution system to maximize availability of

equipments.

Issuing of guidelines for scheduled maintenance based upon OEM’s manuals and

maintenance criticality review report. Compilation of OEM information into the site

maintenance manuals, inspection check list and creation of training manuals

Identity spares, and tooling to ensuring optimum cost management .Develop

parts and tools preservation programme.

Develop computerized maintenance management system.

Develop quality check list to ensure on –site corrective maintenance being done

as per best engineering practices.


Signature:

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Signature:

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TECHNICAL APPENDIX TA-6: AVAILABILITY OF KEY PERSONNEL

1. Tenderer to provide a table setting out the start dates for each of each Key MESC team members. State their current location (and employer, if not currently employed by Tenderer) and when they are expected to complete their current assignments.

2. Tenderers are required to submit evidence that all personnel proposed are full time employees of the Tenderer or its proposed subcontractors. The evidence to be submitted shall include:

a. Latest tax deduction/ return slips or other official document that proof candidates are currently employed by Tenderer or its proposed Subcontractor.

b. If the proposed candidate is from a sister company: provide letter from the sister company confirming when the candidate will be available. (Note: Candidate is expected to be available within 60 days from contract effective date).

c. If the proposed candidate is from an agency: provide letter from the agency together with a SIGNED letter from the candidate confirming the candidate willingness to join this project if Tenderer is successful in this bid and when the candidate will be available (Note: Candidate is expected to be available within 60 days from Contract effective date) . The letter must include candidate’s personnel telephone/ contact number . Candidate shall in his or her letter, consent to Company contacting candidate to confirm candidate’s experience level and availability.

d. If the proposed candidate is not currently employed by Tenderer, provide a SIGNED letter from the candidate confirming the candidate willingness to join this project if Tenderer is successful in this bid and when the candidate will be available. (Note: Candidate is expected to be available within within 60 days from Contract effective date). The letter must include candidate’s personnel telephone/ contact number . Candidate shall also in his or her letter, consent to Company contacting candidate to confirm candidate’s experience level and availability.

Note: Failure to provide the necessary document proof may render Tenderer proposed candidate not being considered.

3, The Tenderer shall enter its company name and sign each page of this Appendix.

4, THIS APPENDIX SHALL BE INCLUDED IN TENDERER'S TECHNICAL SUBMISSION ONLY.

Availability of Key Personnel

Candidate Current

Location

Availability

Alan Russell Singapore Immediate

Lee Dickinson UKWithin 60 days of contact effective

date

Euan Cameron UKWithin 60 days of contract effective

date

Tito Lejero PhilippinesWithin 60 days of contact effective

date

Hugh Spiers UKWithin 60 days of contact effective

date

Peter Walton BangladedshWithin 60 days of contact effective

date

Ron Noakes UK Within 60 days of contact effective Tenderer’s Company Name: PSN PRODUCTION SERVICES

NETWORK PHILIPPINES CORPORATION

Signature:

Page T4/ 43


date

Kevin Docherty UKWithin 60 days of contact effective

date

Niranjan Panchal SingaporeWithin 60 days of contact effective

date

Please see overleaf letter confirming all candidates are full-time employees of PSN


Signature:

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Signature:

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TECHNICAL APPENDIX TA-7: MOBILISATION PLAN

1. The Tenderer shall submit as this Appendix their proposed mobilisation plan indicating the time frame required to be fully set-up and operational for the CONTRACT. COMPANY’s requirement is 60 days or 150 days maximum (as indicated against each item below) from contract effective date to be fully set up and operational for the CONTRACT.

2. For the purpose of this Tender, the MOBILISATION SCHEUDLE/ PLAN shall be based on the following tentative award dates:

Planned award date (tentatively): June/July 2009 Contract Effective date (tentatively): 1st September 2009 Contract Commencement date (tentatively): 1st October 2009 Full MESC team (tentatively): 1st January 2010 Contract Duration (tentatively): 7 years with an option for a further 3 years extension

3. The mobilisation plan shall detail all activities required to be completed prior to the mobilisation of the following: -

(i) Setting up of Administrative office/ base for Project Management Team within 60 days after Contract effective date. The administrative and corporate office base shall be within Greater Manila Area or Calabarzon.

(ii) Registered with the relevant government authorities within 60 days after award (for foreign corporation).

(iii) Mobilisation of all Key personnel within 60 days after Contract effective date.

(iv) Mobilisation of minimum of two (2) offshore maintenance/ construction crew and two (2) onshore maintenance/ construction crew within 120 days after Contract effective date or whenever crew change is most convenient.

(V) Setting up of the minor fabrication yard within 150 days Contract effective date. Please state whether own yard or SUBCONTRACTOR’S yard plus details of the yard. Yard shall be equipped with the following: -

i. Site Officeii. Workshop/covered areaiii. Open fabrication areaiv. Blasting and painting areav. Storage areavi. Scaffoldingvii. Equipment, etc

Note: Tenderer to demonstrate ability in setting up the necessary facilities, engaging and mobilised experience individual from within or from outside its organisation whether domestic or foreign to meet project needs. Tenderer shall demonstrate ability in managing proposed personnel welfare in term of applying for work permit (if foreign employee), arranging for flight, transportation, accommodation, etc. Tenderer submission for this appendix may be in narrative form or schedule or both, whichever is best suited to demonstrate Tenderer ability to meet the above requirement.

4. In addition to the mobilisation plan, Tenderer shall also provide COMPANY with a detail transition plan of critical activities in order to ensure a smooth transition of current philosophy of Primary Healthcare Contract (PHC) arrangement to future MESC arrangement.

Please refer to Attachment TA – 7.1 for a copy of our Mobilisation Schedule and TA

– 7.2 for a copy of our Transition Schedule.

Please see overleaf for a copy of our Transition Plan


Signature:

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Transition Plan

Introduction

PSN have significant recent experience of the management of contract transitions, with

clients including, Shell, ConocoPhillips, Chevron and ExxonMobil.

In all cases, the transitions have been successful and delivered on client expectations.

Our philosophy of building a unified culture of safety and excellence leads to a

seamless transfer of activities and incident-free operations. In PSN safety takes priority

and is our most important Core Value.

We will provide a team with experience of transition management to oversee the

transition and develop goal-directed management plans. Our plans will focus on safety,

minimisation of risk, continuity of operations and minimum disruption. We will treat the

transition phase as a specific project, and will provide:

a clear scope of work

an agreed schedule with milestones

a KPI scorecard

We manage safety risks so they are as low as reasonably practicable.

Our approach is to develop shared visions and values amongst our current people and

those transferring to us, with one common culture. Our HR processes and systems of

competence assessment and management encourage behaviours and attitudes that

deliver excellent performance and will help ensure a successful transition.

Treating people sensitively and alleviating uncertainty, with clear communication, good

quality information and consultation with employees undergoing transition, is a key

success factor. We have considerable experience of transferring staff within contract

transitions, and have achieved for a high level of project personnel retention after they

have transferred from the Incumbent Contractor to PSN. We aim to be the employer of

choice.


Signature:

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During the transitional period, we will focus on maintaining uninterrupted,

safe and effective production, delivering ongoing business with continuity

and stability.

Dan Byrne, ChevronTexaco CTUE Alliance Contract Coordinator: “The

commitment and effort shown by the PSN transition team was instrumental

in helping us achieve an incident-free transition. Having the right mix of

personnel within the PSN transition team was a key enabler to this

success”During the transitional period, we will focus on maintaining


Another key objective is the effective management of client business risks. We have

proven risk management methods that bring assurance that business risk will be as low

as reasonably practicable.

We understand SPEX business objectives, and our detailed transition planning, with

milestones identified in the plan, will ensure a seamless transition period. A transition

steering committee will oversee the execution of the plans, and ensure that we

undertake all necessary activities.

Goal Directed Plans

From our ‘lessons learned’ and continuous improvement processes, we know the

importance of effective planning. PSN uses a task based form of planning called “Goal

Directed Planning” (GDP). This process provides:

clarity of the task

clear timescales

a person responsible for the tasks

clear accountability for the goals

The following paragraphs explain in more detail how we will achieve a seamless

transition, with continuity of operations, maintained safety performance, and a

sensitive approach to people.

A typical example of a transition schedule which may be applicable to the SPEX

contract has been included in Attachment TA – 7.4.2 to indicate the scope and detail of

the PSN GDP process.

Experience

We have considerable experience with dealing with transfers of staff under contract

transition management situations and the subsequent harmonisation programmes that

follow.

Recent experience includes the transfer of employment of more than two hundred

people associated with a ConocoPhillips support contract. On our transition scorecard

we achieved maximum points across a wide range of measures signifying achievement

of all our agreed transition management targets.

For the Shell Shearwater contract transition, Shell and PSN jointly agreed a scorecard

prior to the start of the transition. The scorecard incentivised PSN on a risk and reward

basis, where PSN risked all its profit associated with the transition period in return for

reward for excellent performance.

PSN transitioned the entire Aker workforce across into the PSN family when Shell Expro

purchased Enterprise Oil in 2005. The Nelson Alpha platform has on it PSN,

Maintenance technicians, Engineering trades and Services support personnel. It was a

transition without incident or loss of production.


Signature:

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PSN gave a wider opportunity base to the team members and a number have

subsequently transitioned to other assets within Shell and PSN through succession

planning. Its worthy of noting that within 2-3 years of transition the team scored joint

1st place within the Shell global Total Reliability awards and the asset is now performing

within the top quartile criteria.

This scorecard covered key areas such as:

safety performance

meeting agreed milestone dates on the transition plan

personnel welfare

cost and schedule

quality of communication

PSN managed and controlled the transition of both of the above contracts successfully,

with no disruption to the business continuity of the assets.

Transition Policy

The key objective of transition management is to ensure the SPEX business plan is

maintained; we intend to achieve this by addressing to following key elements:

Transitions will be subject to a detailed risk assessment; the results of which are

recorded and mitigation actions tracked to completion.

Transitions are managed to ensure that risks to personnel and the business

remain as low as reasonably practicable.

Detailed transition plans identify milestones, accountabilities and deliverables

addressed during the transition phase; which we envisage will have an estimated

duration of three to six months.

Overall performance of the transition is subject to a steering committee overview

We will jointly develop transition objectives and performance measures with SPEX

for the contract transition

We will share our transition management ‘lessons learned’ database in defining

plans, targets, milestones and KPI’s for this phase of the contract.

We will review the transition performance at the end of the transition phase with

SPEX to ensure we capture any new lessons from this project

The PSN Project Manager is accountable for the successful delivery of the

transition against the agreed objectives.


Signature:

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hbb6757, 02/11/09,

Can we make similar positive statements about Exxon Chad//Cameroon and ChevronTexaco??

hbb6757, 11/02/09,

Can we confirm this duration or do we address coaching/competence verification phases timescales within this duration?


A PSN transition management team will be assembled which includes personnel

with previous experience of contract transitions. This team will work with

SPEX to ensure an integrated approach to the transition and operational

stability during the changeover period.

The transition team is responsible for a successful transition to the agreed plan

and schedule. The team will communicate their progress to all parties.

Respect for all people involved in, or affected by the transition, will remain

paramount

Business Plans

Our role is to provide the services that support the delivery of the SPEX business plan.

PSN will provide the people, processes, systems and procedures to ensure we deliver

the right service in accordance with the needs of the contract. We deliver our services

from an environment of continuous improvement, and challenging each aspect of our

business to deliver effective and efficient solutions.

During the transition phase of the contract, we will manage the continuous delivery of

services to ensure uninterrupted, safe, effective and efficient operations from all

offshore and onshore assets.

Change has the potential to impact on the business. To deliver “world class

performance in Operational Excellence” requires delivery of the SPEX business plans in

line with Shell Operational Excellence expectations. During transition and beyond our

main business objectives will be:

Safe and incident free operations

Delivering the SPEX business plan

Maximising platform uptime

Effective day to day cost management

Embedding the foundations of a PSN and SPEX culture within an integrated team

environment

Maximising the utilisation of national staff and subcontractors in a sustainable

manner

Transition Team

On contract award, we will assign a dedicated Transition Team to develop a goal

directed transition plan. We propose that Peter Walton will be seconded into this team

working under Alan Russell, the PSN Project Manager, with day to day responsibility to

manage the successful progress of the transition from the present incumbent

contractor to PSN. Other PSN Transition Team members will include representatives


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from the following disciplines; HSE, HR, Engineering, Maintenance IT, and our Project

Services group on an as-required basis.


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Additional members of the team will include representatives from SPEX and

subcontractors as appropriate. Weekly and monthly meetings will be held to review

progress against the transition plans and milestones.

Transition Team Workshop

One of the early activities that the transition team will carry out will be to facilitate a

joint workshop with SPEX. Its purpose will be to review and share the contents of the

transition plan and the risk assessment. Development of the SPEX transition plan will

include a first pass risk assessment.

The transition plan captures the individual Goal Directed Plans (GDPs) for HSE,

Communications, HR, and the Business activities (Operations, maintenance,

engineering and business services)

The GDPs will address the following:

Maintaining safe and incident free operations during and beyond the transition

phase

Focus on delivery of SPEX business plans for the SWP and OGP facilities

The provision of adequate staffing levels with the required competencies

Exploiting experience from all, including importing/exporting best practice from

current PSN Philippines support contract experience, AsiaPac contracts and the

PSN global network

Effective and ongoing communication with employees to gain and maintain

mutual trust and respect

Regular offshore visits by PSN management to build efficient and effective

relationships

Working with SPEX to identify key contractor resources ‘at risk’ from the change

in contract and finding agreed solutions to ensure the best chance of their

retention beyond the transition phase.

Retention and protection of key data/information

Secure and capture key business knowledge via PSN’s engagement and handover

process

Key Steps in the Transition Phase

Identify all activities to be included in the transition phase

Identify the risks involved in each activity and produce a risk register.

Identify how the risks and opportunities will be managed and by whom.


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Identify the costs and time involved in each activity and produce a cost estimate

and schedule

Develop goal directive plans for each element (HR, HESQ, Communications, O&M,

Engineering and Project Services).

Communicate the strategy and plans onshore and offshore to PSN and SPEX

personnel and contractors.

Transition Team

Steering Committee – Terms of reference

The steering committee, set up to manage and monitor the progress and performance

of the transition, will also coach and steer the transition team in order to deliver a

successful outcome. This committee contains senior representatives from SPEX and


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PSN. The committee will carry out periodic reviews and engagement with the transition

team to ensure that any significant issues or ‘blockers’ are dealt with quickly.

A key objective will be the creation of a trusting relationship where risks and rewards

are shared (share the gains but also share the pains). The development of a strong

culture is essential whereby there is respect for the individual and their corporate

identity along with a true belief that we can work in an integrated manner and in an

environment with no harm to our people.

Key Issues

During the transition phase, it is imperative that the following key issues are kept to the

forefront:

Keep people informed. This will consist of regular feedback sessions offshore

(once every two weeks), with both PSN and client personnel, to ensure that

everyone knows what the objectives for the transition period (and beyond) are.

This will also allow people to input any suggestions and/or concerns.

Detailed ‘Road Map’. A GDP showing the key activities during the transition

phase which can be in the form of a poster campaign, regularly updated desk

drops or a newsletter to inform the workforce of progress against the

transition plan. An example from a previous project is attached as Attachment

TA – 7.3

“Business as usual”. The intent during the transition phase is to ensure that all

the work carried out by the incumbent contractor is successfully completed

and handed over to PSN. We do not envisage implementing any changes

during the transition phase. Changes will be identified during this period but will

not be implemented until after the transition period and will be controlled

through adherence to the Management of Change procedures. We recognise

the risk to business performance that any change may introduce and will

ensure focus on Health Safety and Environmental performance as well as

production targets. Performance will be clearly cascaded and line

management will reinforce the message regularly.

Measure business performance. It is vital to ensure the above (business as

usual) is maintained throughout the transition period. This will be achieved by

closely monitoring existing business performance metrics throughout the

transition period.

Meet Transition Timeframe. The transition period will add to the overall cost

of the business and therefore the transition must be kept on track and fully

implemented within the agreed period

PSN has already selected its transition team members and they are ready to mobilise

Maintenance

ReviewTenderer’s Company Name: PSN PRODUCTION SERVICES


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A review team, with personnel from SPEX, PSN and incumbent maintenance personnel,

will be created to review current practices throughout the organisation. The main

objectives of the review team will be to:

Understand and identify the current maintenance strategies and philosophies

currently in place and implemented by the incumbent contractor.

Review changes which SPEX intend to introduce and the schedule for changes to

the maintenance system and strategies

Identify additional key steps from PSN experience that may support SPEX

objectives in achieving top quartile maintenance performance.

Establish areas where ‘quick wins’ can be achieved.

This exercise will involve interviewing key people from onshore and offshore across the

assets, and within both companies.

When the interviews and data gathering are completed, the review team will produce a

clear and systematic implementation plan in line with SPEX changes to the CMMS and

maintenance philosophies.

People

As part of our proposals for the organisation, we have included Filipino Maintenance

Engineers supported by expat Maintenance Coaches. This approach is in line with

similar actions implemented on other Shell contracts to support Shell’s Operational

Excellence (OE) vision. These Maintenance Coaches will manage the development and

competence of the national engineers to a point where competence to work

independently can be demonstrated to the satisfaction of SPEX and the PSN. At this

point the Maintenance Coaches will be demobilised. The transition schedule for

achievement of a national maintenance support organisation is expected to extend into

the operational phase of the contract. A nationalisation schedule will be agreed and

documented in conjunction with SPEX’ based on the competence gap and cultural

assessments of Filipino’s appointed to support roles within the Contractor organisation.

Our proposal meets and aligns with the nationalisation goals of SPEX and supports the

sustainability of the support service provisions.

The Maintenance Team Lead will be the focal point for all maintenance and inspection

related activities on the SPEX assets. He will have the crucial task of ensuring that the

new organisation has a common approach to maintenance embedded within it, and will

achieve this by:

Having all the onshore maintenance support personnel reporting directly to him

Holding regular meetings to communicate findings and co-ordinate actions from

the review process

Producing a monthly maintenance report to ensure similar language, definitions

and metrics are applied to both onshore and offshore assets


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Ensuring identification of and implementation of synergies, learnings and best

practices from other PSN contracts

Creating an onshore team that includes personnel who have previously provided

maintenance support on Malampaya

Driving an integrated approach with operations to the planning and scheduling of

maintenance tasks and the prioritising of resources.

Roles and Responsibilities

It is important that SPEX and PSN agree specific roles, responsibilities and

accountabilities of the integrated team.

Successful implementation of the maintenance policy requires co-operation between

the production and maintenance department and key sub-contractors.

There should be a clear understanding of who does what and who is responsible. We

will ensure this clarity in the definition of responsibilities and structure within the

maintenance department, with documentation that outlines the work, the plans,

required skills, job profiles and levels of authorisation for tasks.

It is important that there is good communications between the operations and

maintenance teams during the transition phase, so we can realise OE vision of ‘one

team’.

Processes

As part of the transition plan, our goal is to identify processes and procedures that will

be utilised to maximise business delivery for all the assets. This includes several

important areas:

Intimate knowledge of SAP

The CMMS system utilised is SAP and we are aware that SPEX are in the process of

modifying the system and the routines to reflect preventative and condition based

strategies to support the maintenance goals and visions stated in the tender.

The transition team will include a SAP specialist who will review the SPEX systems to

gain definition of the numbers, knowledge and competencies required within the

Contractor maintenance teams to support the CMMS system and the SPEX goals.

Where beneficial, the specialist will share information on the learnings from the PSN

database associated with CMMS system functionality, SAP PM Optimisation, and data

inputting, analysis and reporting which we believe add support the SPEX goals.

Common Planning Tools

Common planning tools and systems are essential. The tools used by PSN for planning

is. Primavera P3. This common platform will allow PSN to progress our own plans which

can be downloaded / imported directly to an integrated plan controlled and managed

by SPEX.Tenderer’s Company Name: PSN PRODUCTION SERVICES


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PSN would expect to utilise P3 for development of turnaround plans, fabrication

tasks, procurement activities, engineering activities, etc which fall within the

scope of the Contractor. These plans would be offered for integration with SPEX

plans once developed past the draft stage to a maturity level which details

activities down to level 3. Progress reporting would derive from these plans.

In our experience, systems based on a 90-day planning process are the most effective,

with a particular focus on the first 28 days of the plan. From this, a 14-day and 7-day

execution plan is developed to match the resources available offshore and allow for

specialist vendors.

Work orders are only put on this plan if all associated material has been delivered and

in the maintenance arena the work orders are set to execute.

Effective and Efficient Processes

PSN will work within the SPEX management systems. Our Assignment Manager and

others within the transition and support organisation have extensive experience of

Shell systems and procedures. They are well placed to ensure full compliance and

familiarity with these processes as they are rolled out and implemented across the

whole of the PSN team.

PSN have some internal processes and systems which we believe will add value to

the services. These have been developed from our continuous improvement

business approach and we would engage SPEX in a review and agreement for the

introduction and implementation of any Contractor processes which would offer

business improvements to SPEX.

Definitions

We will establish maintenance and engineering definitions and benchmarks and

ensure we apply them across the assets. For example, in the maintenance function

defining what is safety or production critical?, what constitutes a backlog? and how

many hours productivity per day (wrench time) is expected from the technicians

offshore and onshore?

Standardised Reporting

Formatting and presentation of reports will be compatible with and fully aligned to

SPEX reporting requirements. We anticipate that reports will show progress against

agreed maintenance KPI’s They will also show the effect of maintenance or

engineering activities on key production metrics such as plant efficiency and

uptime, therefore a consistent approach is vital to ensure the identification of best

practices.

Standardised Budget Information

The definition of maintenance or engineering budgets, and the type of activities

allocated to the maintenance budget line, often varies across companies. PSN are

fully aware of the SPEX requirement for daily cost reporting (YTT). Our Assignment


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Align please


Manager and others in the team have implemented these processes for PSN within

the Shell UK Sigma 3 contract. This embedded experience will ensure team

enrolment, commitment and full implementation on a fast track timeline.


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Maintenance and Engineering Interface

Maintenance and Engineering teams have an interface which must be consistent across

all assets. PSN’s LEAN Engineering and 4D engineering processes rely on integrated

working between engineering teams and the operations and maintenance teams to

deliver Tier 1 and 2 engineering tasks. Input for Tier 3 and 4 modifications is also

considered a key success factor in the design and installation for this scale of

engineering modification

Identified interfaces cover specifically the following areas:

Change Control

This refers to changes identified for both engineering design and safety reasons within

the maintenance and engineering interface.

Engineering changes may be major upgrades to plant, or the removal of redundant

equipment. It can also be a minor change controlled under the MOC process. Either

way, after any engineering change to plant and equipment, a structured process must

ensure that the Maintenance Department receives a copy of the change data so that

they can:

assess the effect to the current maintenance strategy

create, delete or amend routines

implement changes to the asset register and updates of manufacturer’s data

assess the effect of minor software changes, which can have a significant impact

resulting from a small change

Within a Safety Case regime, written schemes of examination developed from

performance standards drive all safety critical routine maintenance. The owners of the

standards reside within the SPEX engineering group and must be included in any

discussions regarding the applicability of safety critical maintenance. Safety critical

changes may come around after:

A maintenance review, which might challenge the current frequency of a safety

critical routine. In this instance, the performance standard owner must be

satisfied that the resultant maintenance will still be able to meet the requirements

of the performance standard.

Carrying out regular routine maintenance and not being able to achieve the

acceptance criteria specified in the performance standard. An example might

be the ability of a fire pump to achieve the desired flow rates. In this

particular example, a decision will be made on the suitability of the pump or

the suitability of the current standard criteria.

The key activities in transition maintenance are:

Exchange PSN safety expectations with the SPEX team regarding operations and

maintenance activities


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Review current operations and maintenance policies, operating standards,

strategies and procedures

Review maintenance performance/reporting i.e. compliance, backlog, breakdowns

Review platform performance i.e. uptimes, trips, outages planned/unplanned

Clarify SPEX team’s roles and responsibilities

Review key sub contractor performance with SPEX i.e. healthcare, fabric

maintenance, call-offs

Financial Control

Approval levels within the Contract

During the transition period, we will develop and agree a matrix of financial authority

levels. There are two sets of authorities required: one addresses SPEX approval for

expenditure within the contract; the other addresses PSN approvals for expenditure

being managed through PSN systems.

SPEX approvals

As the contractor organisation is established, we will establish an approvals matrix

which will control the ability to commit to expenditure related to the work to be

executed within the contract. SPEX will specify the levels in this matrix, in line with

their internal policies. However, there may be PSN personnel with authority within the

matrix to authorise requisitions, for example materials bought through SPEX SAP. We

would expect to be made aware of this authority and to discuss and agree the matrix

during the transition period.

PSN approvals

Notwithstanding the approval within the project under the SPEX authorisation process,

any expenditure incurred through PSN procurement processes will require authorisation

under the PSN authority matrix. Specific PSN personnel in Contractors team will have a

level of authority to cover these requirements within the PSN financial limits. On

occasions where values exceed these internal limitations authorisation will be required

from more senior PSN management.

Cost control

Cost Control of Transition

The costs associated with the transition process will be separately identified and

accounted for. We will achieve this within PSN cost systems arranging for all time-


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writing and other transactions (e.g. travel, accommodation) to be coded appropriately.

The agreed invoicing process will apply to those elements of these costs billed to SPEX.

Project Cost Control

Our cost control process follows our management system and is summarised in the

following diagram:

During the transition period, we will develop and agree the details of cost reporting with

SPEX. The cost control process and basic reporting will be in place and operating by

the end of the transition.

The foundations of daily reporting will be agreed and set up for PSN reporting during

the transition in conjunction with SPEX reporting system. Any information, training etc

required to facilitate daily reporting across the whole team will be identified and actions

agreed to ensure the necessary tools are in place to implement efficiently.

In addition to initiating regular cost control reporting, we will apply a specific transition

process to capture cost information that relates to partly completed work-in-progress

taken over from the outgoing incumbent contractors or required to be completed by

them. This is required to enable total cost-to-date figures to be available as we go

forward, so that the cost reporting can reflect the complete picture. Establishing the

process for obtaining these figures will requirethe full support of SPEX and their

confirmation will be an early transition task.

Engineering Change Control Activities

Approvals and Verification processTenderer’s Company Name: PSN PRODUCTION SERVICES


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Do we want to stick with this wording or can we give better commitments based on timewb, Oracle and the daily reporting SPEX aspire to??


Crucial to the successful transfer of engineering activities across SPEX assets to PSN

contract, is the need to maintain a specific focus of attention on ongoing work and to

keep control of the current management of change processes in place.


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Until full and clear authorities are in place in the new integrated organisation, we will

use and maintain current asset Management of Change (MOC) databases. We will

address the consolidation of MOC databases as part of the transfer of engineering

activities.

The following stages define our strategy for managing the transfer of engineering

activities into a single delivery team. These would be highlighted in the Goal Directed

Plan:

We will need to establish a technical approval and verification model aligned to

SPEX Management System.

The first stage of engineering transition is to establish a joint working group with SPEX

to review the engineering workscopes. We assume workscopes have already been

completed for all work envisaged for the 2010 turnaround we will establish the current

status of engineering and procurement at the start of the transition phase confirm

where current Independent Competent Person (ICP) functions are being provided and

how the technical requirements are currently being supported

While the joint working group is developing the technical approval and verification

team model, roles and responsibilities, expectations and boundaries for individual

positions within this team will be confirmed.

The steering committee will have responsibility to support the new contractor in

ensuring the incumbent completes the work for which they were contracted and

that liabilities for failures/issues remain with the incumbent contractor in

accordance with their contract with SPEX.

Our expectation is that any engineering work already in progress by the incumbent

contractor or his sub contractors will be completed within the limits of the original

intent. PSN will not take on partly completed engineering, fabrication or

construction activities nor responsibility for any costs associated unless

formally agreed with the incumbent contractor and SPEX

Any engineering mods, etc which have not yet been started and which SPEX would

require PSN to undertake will be identified within the first 4 weeks from

mobilisation of the transition team.

Technical queries

The allocation of clear responsibility and ownership for each current item of work during

the transition will ensure that technical queries in relation to all ongoing activities will

be directed to the appropriate person. The point of handover of responsibilities for

each activity will will be highlighted, agreed by all parties and visible to all parties

during the transition period.

Prior to the declared point of transfer of responsibility, all copies of technical queries

and respective answers raised in connection with work due to be transferred, will be


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copied to the relevant PSN focal point. This will assist the process of sharing current

knowledge and will build up the asset knowledge base in preparation for the actual

transfer of responsibilities.

Any technical queries raised in relation to new activities allocated to the new Contractor

during the transition phase will be directed into the new organisation.

The key activities in transition engineering are:

Identify technical authorities and engineering standards

Review technical control documentation

Manage knowledge transfer

Establish TQ procedure

Review work registers and identify maturity of work (at study phase, design

phase, construction, commissioning, close out

Carry out screening exercise on all work for need, safety, integrity and cost

Carry out ranking exercise for scheduling

Review resource requirements

Asset Turnaround Planning

We are aware of the intent for the facilities to be shutdown in early 2010 to allow

turnaround activity and modifications installation to resolve SPEX technical

maintenance issues. PSN are fully prepared to take ownership of all aspects of support

identified by SPEX as requiring progression during the transition period and the period

leading up to the scheduled turnaround

PSN are committed to the concept of integrated planning and will actively support this

type of scheduling by providing compliant input for activities within our control.

We use the integrated plan to set and manage dates for:

Anticipated or planned dates for package downtime and plant turnaround

Associated Interface management, e.g. crane barge; statutory testing.

General level of activity and bedding requirements or availability

Materials Management

During the transition period, risks to the business plan exist from the misplacement of

materials and equipment, non-return of equipment and planned services not

completed/actioned, all of which can result in additional and unnecessary cost to SPEX.

The transition management team will create a focus on material management to

ensure materials are available to meet objectives for work ongoing during a contract

transition and for critical maintenance or turnaround work in the early period after the

start of the new contract.


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Procurement

The PSN transition management team will ensure a procurement survey is initiated

from the SAP system and completed in a timely manner to verify all procurement

activities associated with contractor maintenance, engineering and turnaround work

and resultant actions are managed in line with the integrated plans in place.

The survey will ascertain the open purchase orders, for both materials and services.

This information will be collated into a procurement status report, which will be used as

a tool to ensure that appropriate action is taken to expedite the close out of orders by

verifying material deliveries and service completion.

Hired Equipment

The status of equipment currently on hire and/or in use will be checked and verified

within the SPEX equipment tracking database. We will ensure the hire contracts are

being managed by those responsible to ensure items which are no longer required to

be on site are returned to suppliers or warehouse where appropriate.

Organisational change

Potential turnover of personnel from existing incumbent contractor

Transfer of Personnel

The key to any successful project transition is to ensure that we identify and retain the

best personnel on the project. It is critical to gain the mutual trust and respect of all

people both during and following a project transition. To foster innovation and

collaboration, we must ensure that our leadership creates a culture that encourages

people to perform to the highest levels, whilst being rewarded and valued for individual

and team contributions.

Using robust processes, and with the benefit of extensive experience, the transition

team will ensure that we retain wherever possible within commercial constraints the

best performers.

Selection will be based on competency, the demonstration of effective behaviours, and

the willingness to work in a culture that challenges people to be the best they can be.

Gaining Trust and Respect

It is critical during a contract transfer to gain the trust and mutual respect of the

workforce. There may be numerous concerns during the change of an employer, such

as continuity of employment or changes to terms and conditions. For client staff, there

may be concerns associated with new contractor values, attitudes and support

capability to help them maintain their own teams’ performance.

Key learnings demonstrate that effective communication and consultation work

together to address potential issues and deliver a smoother transition.


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A key measure for a successful transition is that operations are not affected, and

personnel continue to perform at the highest level. We consider it ill-advised for any

employer to affect the terms and conditions of a workforce detrimentally if it wishes to

create a winning team.

The Need to Harmonise

Harmonisation is the process of introducing structure and transparency in the

conditions of employment for all employees.

PSN strive to follow a strategy of fair management and team culture whereby all

employees drive together in the same direction to meet the needs of the clients

business. Harmonisation is also critical to the retention and management of employees.

In our organisational model, we need common methods for grading personnel and

remunerating them based on performance and levels of competence.

On contract award, we will within an agreed period allocate each employee a grade

within the PSN competency model and highlighting scope for progress through the

grade and through to completion of competence assessments.

We understand the need to address Human Resource issues sensitively with a well-

planned approach that will safeguard the retention and motivation of valued

employees.

Site-specific knowledge / experience retention and loss of key individuals

Maintaining Site Specific Knowledge/experience

Maintaining site-specific knowledge and experience of key incumbent personnel is a

critical issue during transition, and for continuous successful operations. We recognise

that this needs management to assure the retention of knowledge.

PSN has extensive experience in transition, and proven success in achieving it. We

have done this by implementing good management practices and careful detailed

planning.

Within the goal directed transition plan, our transition process addresses these issues

through the following:

Assurance of adequate staffing and competency of staff

Staff retention strategy

Recruitment and selection process

Loss of key individuals

The overall people objective is to identify and retain the best people for the new

organisation. There may be several positions within the current incumbent organisation

that we would consider key to maintaining asset HSE and business performance. The


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PSN personnel selection process will identify the necessary competencies to carry out

the work, but we would request assistance from SPEX management as to its perception

and views of key positions and key individual performers.

Although we will manage the transition of people within the bounds of our contract

there is always a risk that some people may not wish to transfer to the new

organisation. If these individuals are categorised as ‘key’, then these

individuals/positions will have priority early on in the selection process so that buddying

can be arranged during the transition period to maximise key knowledge transfer to

new personnel.

Mobilisation strategy

PSN plan a phased mobilisation of personnel based on the skills required to meet the

highest risk priorities. The plan addresses key skills and experience requirements and

ensures experienced resource is mobilised when necessary. Several resources will be

provided from the PSN Corporate team and will support the transition on a part time

basis, providing direct support at key times including guidance and coaching local

national staff on a remote basis when appropriate.

A mobilisation schedule which includes which includes transition is included in

Attachment TA – 7.1

We have planned for the immediate mobilisation of the Assignment Manager and the

Transition Manager to provide confidence in a successful conclusion to the contract

transition.

As-Built Engineering and Project Closeout

PSN learnings from previous transitions has shown that a critical success factor for

transitions involving engineering and construction is that the incumbent Contractor

must complete work in line with contractual obligations and liabilities through to

completion of as building and close out of engineering and modification workpacks.

Liabilities for warranty and warranty repairs must be reinforced as the contractual

responsibility of the incumbent Contractor. PSN recommends that it is nominated to

have the responsibility to manage any such work on behalf of SPEX

HSE Guidelines on Organisational Change

The UK Health and Safety Executive has stated that there is a pressing need in the

industry to address organisational change. A paper was produced that tackled this

issue: “Draft Guidelines on Organisational Change and Major Accidents Hazards”.

(Paper No OIAC/02/06).

PSN’s transition management process meets the requirements of these guidelines. PSN

were actively involved with the sponsor of the guidelines to share best practice.


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5. The Tenderer shall enter its company name and sign each page of this Appendix. 6. THIS APPENDIX SHALL BE INCLUDED IN TENDERER'S TECHNICAL SUBMISSION ONLY.


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TECHNICAL APPENDIX TA-8: TENDERER’S PROPOSED ADMINISTRATIVE OFFICE/ BASE, ENGINEERING SUPPORT OFFICE AND MINOR FABRICATION YARD & EQUIPMENT

1. The Tenderer should indicate its willingness to provide the following facilities in the event the Tenderer is successful.

2. The ADMINISTRATIVE Office/ base MUST be put in place within sixty (60) days from Contract effective date.

3. The MINOR FABRICATION YARD COMPLETE WITH ITS EQUIPMENT MUST be put in place within one hundred fifty (150) days from Contract effective date.

4. Please tick the appropriate boxes below only.

(a) Established or proposed administrative base in Greater Manila Area or Calabarzon equipped with telephone, handphone, pager, fax/internet facilities:

Have access to established administrative base in Greater Manila Area or Calabarzon

Our administrative office address is at .............................................................................

Willing to set up administrative base in Greater Manila Area or Calabarzon within 60 days from Contract effective date

Our proposed administrative office address is at Insular Life Building,

Asean Drive, Filnvest City, Alabang

PSN propose to lease an unfurnished office in the Filnvest area of

Alabang. PSN have investigated several options and on contractual award

would secure the above available office accommodation.

The property identified comprises 250 sq m of self contained space requiring

minimal fit out other than the provision of IT systems, furniture and

equipment.

Once fitted out the office will be capable of accommodating circa 30 persons

with full IT capability including access to PSN’s network and applications.

Whilst the office will be managed locally, support will be provided centrally

as required. With close proximity to Shell’s main office, this is PSN preferred

option as it would significantly reduce the risk of employees having to travel

by car/bus for any meeting or face to face contact as it’s within close

walking distance.

Our proposed administrative office address is at .............................................................

Not willing to set up administrative base in Greater Manila Area or Calabarzon

(b) We will set-up or proposed Fabrication Yard complete with Equipment:

Have access to established Fabrication Yard in Philippines

Our fabrication yard address is at ...c/o Atlantic Gulf & Pacific of Manila Inc,

San Rogue, Bavan, Batangas. PSN subject to PSPC final approval propose that


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X

X


it utilises its established fabrication facilities at the PSPC Tabangao

Refinery.

Our fabrication yard address is at .............................................................................

Willing to set up Fabrication Yard in Philippines within 150 days from Contract effective date

Our proposed fabrication yard address is at .....................................................................

Not willing to set up Fabrication Yard in Philippines

(c) Established or proposed engineering support office equipped with telephone, handphone, fax/internet facilities:

Have access to established engineering office in the Philippines

Our engineering office address is at .............................................................................

Have access to established engineering office outside the Philippines

Our engineering office address is at...200 Cantonment Road, South Point,

Singapore

18 William Street, Melbourne, Australia..

Wellheads Place, Dyce, Aberdeen, Scotland, UK

Our engineering office address is at............................................................

Willing to set up an engineering office in the Philippines

Our proposed engineering office address is at.................................................

Not willing to set up an engineering office in the Philippines

Note: Company preference is for the engineering office to be based in the Philippines

5. The Tenderer shall enter its Company name and sign each page of this Appendix.



Signature:

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X

X


TECHNICAL APPENDIX TA-9: TENDERER’S PROPOSED MAINTENANCE/ CONSTRUCTION EQUIPMENT & TOOLS

1. Tenderer shall refer to PART 5 - PROVISION BY CONTRACTOR, APPENDIX 1 on LIST OF CONTRACTOR’S TOOLS AND EQUIPMENT, before completing TA-9.

2. Tenderer shall list down and provide evidence on all the available maintenance equipment & tools currently owned by Tenderer.

3. Tenderer shall list down the required maintenance equipment currently not owned by Tenderer but proposed to acquire through purchase, rental or lease.

4. Tenderer shall elaborate on how Tenderer will source, purchase, hire, maintain and mobilise the required equipment.

5. Tenderer to elaborate on Tenderer’s maintenance management system for tools and equipment i.e. in term of tracking inventory, validity of calibration certificates for equipment, tool maintenance routine, etc


THIS APPENDIX SHALL BE INCLUDED IN TENDERER'S TECHNICAL SUBMISSION ONLY.

1. PSN have referred to Part 5 – Provision by Contractor, Appendix 1 on List of Contractors tools and equipment prior to completing the TA-09.

2. PSN have made provision, in their cost model, to purchase rent or lease all tools and equipment detailed in Part 5 – Provision by Contractor, Appendix 1 of the ITT. Should PSN be successful with this bid, a review of the current plant and equipment used on the SPEX onshore and offshore sites will be conducted leading to discussions with the incumbent contractor to purchase the existing temporary Plant & Equipment or transfer the hire of rental equipment, should it be in a suitable condition. There is also an opportunity to enter into discussions with a view to setting up a central tools and equipment facility, which will provide potential savings and benefit for both PSPC and SPEX.

The following equipment and tools are currently available at the PSN operation at PSPC Tabangao.

Qty

General Plant & Equipment - Contractor Owned

Vacuum cleaner HD offer: shop –VAC 10 gals, Industrial type. 1

Heavy duty SS.Wet/Dry .VAC Mal 870-45 USA 1

Grinder, air 3/8”angle 4”Sp Air Japan 4

Drill, pneumatic ½” pistol grip 2

Contractor Supplied

Conventional spray with complete accessories 2

Chipping hammers 6

Compressor, Air 675 CFM 1


Signature:

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Qty

Sheet metal break Pexto 1

Lock former 24 1

Sheet metal Band roller 1

Easy Edger1 1

Rigging Equipment – Contractor Supplied

Sling Wires (3/8” to ½” dia)-Various lengths 34

Nylon Straps –Various lengths and widths 35

Chain block 2 ton 5

Chain block 3 ton 14

Chain block 5 ton 9

Structural Tools & Equipment – Contractor Supplied

Tube/Light wall pipe bender hydraulic c/w rams 1

Threading machine for pipe (electric)-2” to 6” 3

Welding & Cutting Tools & Equipment – Contractor Owned

Oven rod portable type 10B 240 V MDL.2, 2

300 degree F, 100W-Phoenix USA 4

Saw, Fien pneumatic (German air saw) 2

Contractor Supplied

Oven, welding electrode (Bench type-50kg) 2

Welding Machine, Diesel (300 to 400 amp) 8

Welding Machine, Electric (300 to 400 amp) 8

Blasting & Painting Equipment - Contractor Supplied

Clemco sandblasting pot w/cmplt accessories 4

Lifting & Positioning Equipment - Contractor Supplied

Shackle-0.5 to 10 Ton 31

Shackle 10-25 ton 13

Pumps and Compressors - Contractor Owned

Pump-High pressure hydrostatic 1

3000 psi max c/with hose and fittings 1

Contractor Supplied

Pump-hydro test-pneumatic (up to 10,000 psi) 2


Signature:

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QTY

Others

Jack hydraulic 10 ton “Enerpac RCS-101. 1

Mechanical Technician Toolbox Contents – Contractor Owned

AF Spanners 1/4" to 1, 7/16" – Combination Type 1 Set

Metric Spanners 6mm to 36mm – Combination Type 1 Set

Imperial Socket set - 1/2" Drive- available Socket Set with ¾” drive

1 Set

Metric Socket Set - 1/2" Drive-available – Socket Set with 1 to 1.5” drive

1 Set

Small Torque Wrench 5ftlb to 40ftlb – available upto 250lbs 1 Pc

Instrument Technician Toolbox Contents – Contractor Owned

Pipe Bender 1 Set

Pipe Cutter 1 Set

Cantilever Toolbox – 5 Tray 1 Unit

Metric Combination Spanners 1 Set

A/F Combination Spanners 1 Set

Imperial Socket Set 1 Set

Metric Socket Set 1 Set

3. Tenderer shall list down the required maintenance equipment currently not owned by Tenderer but proposed to acquire through purchase, rental or lease.

As previously stated in TA 9 – 2, for the purposes of this bid PSN are

assuming that all tool and equipment listed in the ITT shall be purchased,

rented or leased and have made a provision in their cost model for this.

A review of the current plant and equipment used on the SPEX onshore

and offshore sites will be conducted leading to discussions with the

incumbent contractor to purchase the existing temporary Plant &

Equipment or transfer the hire of rental equipment, should it be in a

suitable condition. There is also an opportunity to enter into discussions

with a view to setting up a central tools and equipment facility, which will

provide potential savings and benefit for both SPEX and PSPC.

4. Tenderer shall elaborate how Tenderer will source, purchase, hire, maintain and mobilise the required equipment


Signature:

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PSN have made provision in the cost model to purchase and hire all

equipment and tools required for the SPEX contract, however the following

strategies will be implemented upon contract award to enable savings and

benefits to be realised by SPEX:


Signature:

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Source:

The preferred option, following review, would be to take over the incumbent

contractors existing legacy, providing they are amicable and the equipment

is in a satisfactory condition. Existing stocks can be augmented by

additional sourcing from established vendor network.

Purchase:

PSN have a clear understanding of the local Philippine market for suppliers

and vendors and by using our existing network of QA verified, technical and

commercially evaluated suppliers and vendors, in accordance with the PSN

Corporate Procurement procedure PNM-PCM-006, PSN will deliver a proven

cost effective purchasing strategy.

Hire:

Following review of incumbents hire and leasing arrangements, PSN will

enter into arrangements for specialist, short term and project specific tools

and equipment from approved vendors on agreed rates, by following PSNs

rigid procurement procedures.

Maintain:

In accordance with the PSN suite of procedures, processes, reports and

registers, tools and equipment shall be inspected, maintained and re-

certified by our own technicians using workshop facilities where possible, or

by sub-contracted specialist maintenance/certification authority where

necessary.

Mobilise:

Equipment and tooling mobilisation and de-mobilisation will be controlled

and monitored by adherence to the PSN procedures, processes, reports and

registers, such as the asset register, shipping report, backload procedure

and equipment tracking procedure, listed Figure TA9.1. PSN also have an

understanding and experience of working with and adhering to the Shell

Operating Code of Practice (OCOP) 1.046 Temporary Equipment Process

5. Tenderer to elaborate on Tenderer’s maintenance management system for tools and equipment i.e. in term of tracking inventory, validity of calibration certificates for equipment, tool maintenance routine, etc

The management of both hired and purchased equipment requiring is

conducted in accordance with the Control of Temporary Equipment

Procedure OPM-PCM-030, (refer to Attachment TA – 9.5), along with a suite

of additional procedures, reports, registers and certification, all of which are

located in the PSN management system. An index of the relevant

documents can be found in Figure TA9.1 below copies of the documents can

be made available to SPEX if required.


Signature:

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PSN also have an understanding and experience of working with and

adhering to the Shell Operating Code of Practice (OCOP) 1.046 Temporary

Equipment Process


Signature:

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Figure TA9.1 - PSN MS Extract

PSPC Equipment Calibration Inspection Register PNM-FRM-064

PSPC Equipment Calibration Record PNM-FRM-065

PSPC Lost tool report PNM-FRM-053

PSPC Material Receiving Report PNM-FRM-055

PSPC Scaffolding Checklist PNM-FRM-056

PSPC Shipping Record PNM-FRM-054

PSPC Tool Abuse report PNM-FRM-057

PSPC Warehouse Issue Ticket PNM-FRM-052

Identification of Construction Plant & Equipment Requirements & Planning CON-PCM-006

Backload Materials from Offshore Locations PNM-PCM-012

Equipment Certification Control & Expiry Reporting PNM-PCM-021

Equipment Tracking (Scheduling) PNM-PCM-022

Equipment Testing & Vibration (HAVS) Testing PNM-PCM-024

Maintenance, Calibration and Control of Equipment PNM-PCM-023

Receipt of Equipment & Consumables PNM-PCM-026

Storage, Preservation & Handling of Materials / Equipment PNM-PCM-010

Third Party Equipment Repair & Maintenance PNM-PCM-020

Control of Incoming/Outgoing Equipment PNM-FRM-003

Equipment Inspection & Certification Template PNM-FRM-005

Equipment Requisition Form PNM-FRM-006

Equipment Disposal form PNM-FRM-007

Equipment Repair Form PNM-FRM-008

Annual Stock Check of Owned Equipment PNM-PCM-027

Control of Customer Supplied Product PNM-PCM-017

Control of Incoming/Outgoing Equipment PNM-PCM-028

Equipment Certification Control & Expiry Reporting PNM-PCM-021

Equipment Tracking (Scheduling) PNM-PCM-022

Equipment Testing & Vibration (HAVS) Testing PNM-PCM-024

Maintenance, Calibration and Control of Equipment PNM-PCM-023

Receipt of Equipment & Consumables PNM-PCM-026

Scrap/Disposal of Equipment PNM-PCM-025




Signature:

Page T4/ 78

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_025_Scrap_Disposal_of_Equipment.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_026_Receipt_of_Equipment_Consumables.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_023_UK_Maintenance_Calibration_Control_Equipment.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_024_Equipment_Testing_Vibration.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_022_Equipment_Tracking.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_021_UK_Equipment_Certification_Control_Expiry_Reporting.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_028_Control_of_Incoming_Outgoing_Equipment.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_017_Control_of_Customer_Supplied_Product.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_027_Annual_Stock_Control_of_Owned_Equipment.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_008_Equipment_Repair_Request_Form.doc

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_007_Equipment_Disposal_Form.doc

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_006_Equipment_Requisition_Form.xls

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_005_Equipment_Inspection_and_Certificate_Template.doc

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_003_Control_of_Incoming_Outgoing_Equipment.doc

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_020_Third_Party_Equipment_Repair_Maintenance.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_010_Storage_Preservation_Handling_of_Materials_Equipment.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_026_Receipt_of_Equipment_Consumables.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_023_UK_Maintenance_Calibration_Control_Equipment.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_024_Equipment_Testing_Vibration.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_022_Equipment_Tracking.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_021_UK_Equipment_Certification_Control_Expiry_Reporting.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_PCM_012_Backload_Materials_from_Offshore_Locations.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_006_Identification_of_Construction_Plant_and_Equipment_requirements_and_Planning.pdf

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_052_PSPC_Warehouse_Issue_Ticket.doc

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_057_PSPC_Tool_Abuse_Repot.xls

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_054_PSPC_Shipping_Record.doc

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_056_PSPC_Scaffolding_Checklist.xls

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_055_PSPC_Material_Receiving_Report.xls

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_053_PSPC_Lost_Tool_Report.doc

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_065_PSPC_Equipment_Calibration_Record.xls

https://psn09.psnworld.com/psnms/documents/procurement/PNM_FRM_064_PSPC_Equipment_Calibration_Inspection_Register.xls


TECHNICAL APPENDIX TA-10: PROJECT EXECUTION PLAN (PEP)

1. The Tenderer shall provide in narrative form an overall Project Execution Plan/ Method Statement describing how the WORK/ SERVICES will be executed. The Project Execution Plan/ Method Statement shall be in sufficient detail to demonstrate understanding of the overall Scope of Work/ Services with reference to details in PART 4, SCOPE OF WORK/ SERVICES.

SPEX Project Execution PlanIntroduction

PSN is uniquely placed to provide maintenance and engineering support services

to SPEX Malampaya Offshore Shallow Water Platform (SWP) and the Onshore Gas

Plant (OGP) assets. We will manage the transition to PSN from the Incumbent

Contractor using tried and tested plans that will avoid disruption to the operation

of the facilities and hence disruption to gas production and supply to the onshore

power generation plants. Our local presence in the Philippines and in Batangas in

particular, gives PSN a unique understanding and insight on how business is

undertaken in the Philippines. We have excellent knowledge and understanding of

the local engineering and fabrication support capability through PSN contracts

with local suppliers or through the utilisation of Shell contracts in place for the

PSPC, Tabangao refinery operation.

The combination of our manpower, knowledge of the Philippines market and our

proven Engineering and Maintenance support capability put PSN in a key low risk

position to deliver the SPEX vision to significantly improve facility availability,

maintain HSE performance, and drive reductions in operating costs while

increasing performance in integrity compliance and production.

We have selected to deploy key individuals from within our organisation regionally

and internationally with a track record of delivering within the Shell Operational

Excellence (OE) framework and we have proven ability to deliver the innovative

solutions and initiatives necessary to realise SPEX key objectives. This will ensure

a minimal learning curve that will support a smooth transfer of services from the

incumbent Contractor and subcontractors.

Execution Approach

PSN understand the factors that drive a successful contractual relationship on

contracts similar to the SPEX Maintenance and Engineering Support services. We

have set out our Execution Proposal in 3 phases to ensure we concentrate our

efforts on the key activities that will ensure no disruption to production.

As part of our commitment to continuous improvement the lessons learned from

previous contract start-ups have been captured and will be taken into account on

this contract. Our aim is to support a seamless sequence of events through each

of the 3 phases with a focus on detailed planning, structured communication and

mobilising the best people for the job.


Signature:

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This approach will appear throughout the execution proposal at the start of each

phase to summarise the content and to highlight the key activities necessary for

successful implementation of our services.


Signature:

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1.0 Phase 1 – Integration and Mobilisation Phase

Upon notice of award of the contract PSN will immediately begin the process of

planning and implementing the transition of the contracted services from the

Incumbent Contractor to the Maintenance and Engineering Support service model

detailed in the tender.

PSN has within our Management System guides and templates for project start up

and transition which will be utilised by the Assignment Manager to manage the

contract from award. These start up support documents have been developed and

improved from learnings documented from PSN’s global experience over the past

25 years of providing support services.

As outlined in our Transition Plan and as detailed in Figure 1.1 below, the first key

phase is to ensure we have a single team approach through the alignment of

shared business goals and values of reducing operating costs whilst increasing

performance in the areas of integrity management, safety, compliance and

production. We propose to work closely with SPEX and it’s contractors to create

this shared vision to maximise production and improve the pro active utilisation of

resources and costs without harm to people or the environment.

Efficient planning and reporting of all activities will be implemented to ensure that

PSN deliver on it’s contractual obligations.

Social Impact

PSN have over 13 years experience in working with the local communities through

our contract with PSPC Tabangao refinery. We will pay particular attention to

managing existing relationships and mitigate the sensitivity of any additional

impact deriving from the SPEX contract by forging new relationships where

necessary with the Baranguay and local communities. We will develop and

provide training opportunities for individuals within these communities. To date

many of those who have successfully completed our training program have

secured full time employment with our company or within other industries locally.


Signature:

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1.1 Strategic Alignment

We understand SPEX core business objectives are to optimise the performance of

their Assets in terms of HSE, Technical Integrity, Cost, Localisation of the

workforce and Production.

Initially we will propose a series of workshops to set objectives for the contract to

ensure we are strategically aligned. This will be achieved through:

A Steering Group at corporate level

Understanding and mitigating key business risks between both our

organisations

Business continuity

We envisage that alignment of objectives can be achieved through the PSN Core

Values as detailed below:

HSE – This is our principal core value and it is our goal to continue being the

safest contractor in the Philippines. Our reputation is based on a very proactive

approach to HSE and our culture is based on personal contact, extensive

communication and visible leadership.


Signature:

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PSN start up guidance and requirements require a risk assessment of new

contract start up which reviews risks associated with such things as security,

driving, crime, and health issues.


Signature:

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PSN’s experience in the Philippines provides excellent data for this review.

Facilities already in place for some aspects: for example medical support,

emergency (or crisis) response will be expanded rather than set up from new so

facilitating the transition for PSN.

People – We will minimise the risk to SPEX by retaining wherever possible the

existing incumbent Contractor personnel on the facilities who can satisfy our

competency requirements. Retaining this experience on your installations will

retain knowledge and help to protect production in the short term and maximise

production and reduce costs in the longer term. We will utilise our global training

and competency development model for the SPEX team as we have done at

Tabangao Refinery to develop our people to achieve world class standards. If PSN

are awarded this contract it presents SPEX the opportunity to bring in personnel

with fresh ideas and different experience that will supplement the knowledge of

existing personnel.

Integrity – Our stringent code of ethics sets minimum standards for our

behaviour. We expect this level of alignment from our customers and suppliers.

This assures that PSN’s and SPEX reputations are maintained to the highest

possibly standards promoting business continuity.

Relationships – Our business is built on long term relationships with customers

and suppliers e.g.

PSPC, Maintenance and Modification Services since 1996

Cairn, Sangu O&M services since 1996

Esso, Australia Engineering and Construction services since 1997

Shell, M&E services in the UK since 1981

BP, EPC in the UK since 1976

ConocoPhillips, O&M and EPC services in the UK since 1992

Establishing and maintaining these long term relationships have enabled a

collaborative environment to achieve aligned business objectives that has

delivered benefits to both our Clients and PSN.

Innovation - We are continually looking for performance improvement and

application of new technology in order to optimise availability, efficiency and

maximise production. By applying this culture and processes we were

instrumental in improving the efficiency of Chevron Captain FPSO from 63% to

93% and reducing Occidental Elk Hills Opex budget by $32million while

maintaining no lost time incidents over 5 years.

Localisation – We have an established network and infrastructure to support the

migration of an entire asset group. In our Philippines operations we have an

excellent record of recruitment, training and developing our local workforce. We

now only have one expat who is the PSN Plant Manager at PSPC Refinery. The

remaining 349 personnel are Philippines nationals.


Signature:

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hbb6757, 02/11/09,

Need to review update this listing with those appropriate to SPEX


We will transition into this contract by utilising our experience and knowledge of

the SPEX facilities gained from previous work we have undertaken for SPEX

offshore on the Malampaya asset as well as our local knowledge of supplying

maintenance and support services to PSPC Refinery. This integrated approach will

support a transfer of knowledge and development of personnel within the PSN

organisation and capability in the Philippines as we strive for excellence in our

support activities.

Financial Responsibility - Our experience in driving down client costs through

our tried and proven cost management processes will contribute to fiscal

prudence and support a managed reduction in client operating costs.

1.2 Mobilise Management Team

Immediately upon contract award we will:

- Mobilise the PSN Real Estate team to Manila, to finalise a lease contract for office

accommodation close to that of SPEX, in Manila. PSN has had initial discussions on

three sites with one the current preference and the remaining two as back up.

Finalisation will be dependent on accommodation review with regard to condition,

location, security, safety in the event of a fire, etc and of commercial negotiations.

- start to mobilise the following key personnel to Manila as detailed in our

transition plan:

Assignment Manager

Transition Manager

HSEQ Manager

Engineering Manager

Business Support Manager

HR Specialist

Planner

Accounts and cost ( back office support)

Administration support

Mobilisation of all personnel will be in line with our internal mobilisation and

demobilisation guidelines. For expat personnel, plans will be customised for the

Philippines taking into account security, visa requirements, meet and greet

services, family support services, medical arrangements, etc. Initial expat

mobilisation will be handled by PSN’s International Operations Travel team: a very

experienced team based in Aberdeen headquarters which includes a travel


Signature:

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hbb6757, 11/02/09,

Verify against org charts


coordinator. They ensure liaison with the Project Team and Pre-Arrival Mobilisation

packs are issued before travel commences. Additionally there is a back up team

process which supports peak work periods and any leave cover. A mobilisation

travel flow chart is included in shown below. All personnel will receive induction

and safety training on mobilisation to the contract.


Signature:

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The Management Team will work closely with SPEX personnel to ensure the key

activities are commenced including planning for the Shared Objectives Workshop,

development of business plans, early site visits, discussions with key sub-

contractors and ensuring we set-up good communication links and interfaces.

Soon after key individuals have been mobilised we will commence mobilisation of

additional members of the team in line with the proposed organisation charts.

During this early transition phase we will where necessary also draw upon the

support from our existing organisation located in Batangas.

We will establish and maintain relationships with the key contacts within SPEX and

ensure all systems, applications, documentation, and communication links are

established. These links will be outlined in an interface procedure to ensure the

roles and responsibilities are clear from the start. The benefits of mobilising this

team early are:

Review HSEQ plans procedures and ensure alignment with SPEX and the

relevant authorities (See Attachment TA – 10.6 for a copy of our draft

project HSEQ plan)

Establish relationships and define interface agreements

Deploy our management systems and applications and align with SPEX

systems

Development of the key deliverables as detailed on the transition plan

Commence facilities familiarisation and data collection

Quantify the extent of maintenance tasks and engineering tasks to confirm

resource requirements for 2010 and beyond

1.3 Shared Objectives Workshop

Critical to the successful start-up will be the definition of responsibilities and

scope from the outset. This will ensure that any areas of ambiguity are removed

and that there is clear accountability for all activities. This early effort will provide

the basis for clear alignment between SPEX, PSN and other stakeholders on all

mobilisation and transition requirements.

We have found from experience that implementing a series of workshops early

within any contractual relationships provides an effective means of

communicating key success factors and gaining alignment on critical tasks.

Some of the key objectives of these workshops would be to:

Set the Standard for HSE Excellence

Relationship building

Set high level goals and objectives

Defining and mitigating key risks


Signature:

Page T4/ 87

hbb6757, 11/02/09,

Think this needs to be changed to understanding SPEX mgt system and how we would integrate these with PSN procedures???


Qualifications and clarifications

Align all parties on SPEX drivers

Agree communication interfaces


Signature:

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Establish accountabilities and responsibilities

Address social impact

Agree transition close out check list

1.4 Transition and Risk Management/Mitigation

The risks associated with both the transition phase and the hand over phase will

be identified by means of a risk register. This will be managed by PSN using the

integrated coordination team through to closeout. Risks will be categorised into

focus areas. The mitigation actions shall be identified for implementation to

ensure safety is not compromised, knowledge is retained in the organisation, and

business continuity is assured for the asset.

Table 1.4.1 below identifies typical risks and mitigation actions identified for

transition.

Table 1.4.1 – Transition Risk Mitigation

Risk Focus Area ActionsKeep people safe – HSE

Instigate a safety campaign specifically designed

and targeted at the transition period

Focus on risks associated with personnel change and

non-routine operations

Carry-out on site duty of care and safety culture

assessment and include findings in PSN Induction

training

Keep people on the team informed - Communication

Implement the engagement strategy and a phased

communication plan for both onshore and offshore

personnel

Regular feedback sessions onshore and onsite to

provide an update on progress against the transition

plan

Ensure everyone knows the objectives for the

transition period and beyond

Implement a process that allows people to input any

suggestions and/or concerns

Business as usual – Continuity

We recognise the risk to business performance that

any change may introduce and will ensure focus on

Health Safety and Environmental performance as

well as business targets

Performance metrics and targets will be clearly

cascaded and line management will reinforce the

message regularly to all personnel


Signature:

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Risk Focus Area Actions

Ensuring continuity of existing asset knowledge

Agree hand-over points for existing maintenance

work with SPEX and the incumbent Contractor


Signature:

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Risk Focus Area ActionsBusiness as usual – Continuity

Agree IT and communications requirements for

onsite

To ensure no risk is introduced to ongoing

operations Competency profiles will be reviewed in

conjunction with roles and responsibilities, to ensure

that change management is effective

Measure business performance – KPI`s

Close monitoring of existing business performance

metrics throughout the transition period

Project manage the transition plan and ensure it is

fully implemented within the agreed period

1.5 Data Transfer

We have many years experience of successfully transitioning information and

data from other clients and contractors in various locations across the globe

including Chevron, CNR, BP, ExxonMobil and BHP.

PSN understand from the tender and subsequent clarification meeting that SPEX

have a system that will control the management of the operations and

maintenance data associated with the assets. This information is held at SPEX

Manila office and available within the SPEX intranet system.

PSN request a detailed list of inventory stock or spare parts that are available

either offshore or held within the SPEX warehouse to support transition.

It is essential that project documentation is managed and controlled in a way that

allows for an efficient management of data and of the contract transition through

to final handover.

1.6 Baseline Survey

PSN propose that we deploy a team of suitably qualified and experienced E&M

specialists to carry out a baseline survey on each of the facilities and the status of

engineering work currently being undertaken by the incumbent Contractor. This

baseline survey is a critical part of the transition process and necessary to

develop a clear understanding of the condition of facilities, plant and equipment

and to gain an understanding of SPEX O&M philosophy with regard to issues such

as asset integrity, maintenance backlog and optimal production operations. The

survey will be utilised for planning and scheduling of manpower requirements and

creating a database of potential improvement opportunities. Initial improvement

opportunities will be risk assessed and ranked in order of criticality.


Signature:

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PSN will introduce a structured review and develop a strategy for the transfer of

responsibilities of all third party services, equipment, tools, consumables and the

like from the incumbent contractor.


Signature:

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1.7 Integrated Management Systems

PSN will integrate SPEX Management Systems within all our support operations.

The PSN Management System is approved to ISO 9001:2000, ISO 14001:2004 and

OHSAS 18001:2007. All PSN personnel are familiar with robust management

processes and procedures and the responsibility of individuals in ensuring

compliance with these; for example as implemented by the PSN team at the

Tabangao Refinery.

Our management system is deployed throughout our business at all locations and

is electronically available on our network and through the internet.

We recognise that there will be a requirement to align with SPEX systems. We will

create management interface and bridging documents to ensure primacy is

understood at all levels of the business and information is communicated in an

accurate and efficient manner.

1.8 Organisation and Key Personnel

Our management team has been selected to ensure our personnel have the right

leadership behaviours and attitudes. We are committed to ensure the

organisation is right sized at all stages of this contract by continually challenging

the make up and competence of the team. CV’s can be found in Attachment TA –

5.1.

Our proposed organisation includes for the short term utilisation of a Maintenance

Coach for approx 12 months. This Coach will train and mentor the local national

Maintenance Engineers ensuring the maintenance support organisation uses SAP

to its full potential. He will drive the onshore support for the SWP and OGP effort

in planning and workpack preparation in line with the integrated plan and

maintenance schedules. The coach will be of competent SAP Super User status

with significant hands on experience as Maintenance Engineer and understanding

of the Shell Operational Excellence framework journey. He will manage the

development of local national staff appointed at the start of the contract through

an increasing level of competence to a point where both PSN and SPEX agree

competence of the local national personnel to work independently with remote

support from PSN specialists has been demonstrated and verified. At this point

the expat coach will be demobilized.

1.9 Consultation with Workforce

Key to any successful transition is ensuring that we identify and retain the best

personnel on the project. To foster innovation and collaboration, we must ensure

that our leadership creates a culture that ensures all personnel feel at ease and

will encourage people to perform to the highest levels.


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We recognise that open and honest communication is fundamental to ensuring

the transition is completed safely with no harm to personnel, and we will develop

a communication plan for the transition period and beyond.

One of the key risks during a transfer is uncertainty for employees. Our

communication processes will ensure individuals understand the process and we

are able to address any queries quickly, therefore keeping the employees focus

on their day to day responsibilities.


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Our Human Resources Transition Process follows four key stages to ensure the

effective management of the business transfer:

Preparation

Communication

Selection

Mobilisation

We will base selection on competency, the demonstration of effective behaviours,

and the willingness to work in a culture that challenges people to be the best they

can be.

We will manage the transition and mobilisation processes in accordance with

relevant Philippines legislation. We will make offers of employment to key

individuals who meet our selection requirements to match the proposed

organisation.

This will ensure that asset knowledge is retained within the contract. In parallel,

we will review internal transfers and external recruitment to ensure we can fill any

positions where incumbent Contractor personnel do not wish to transition to

employment with PSN.

1.10 Training & Competency

PSN’s strategy is to maintain a competitive advantage in the market by

maintaining an attractive remuneration package as well as a structured

development plan. As such we emphasize the need for strategic Human Resource

Planning, which encompasses job analysis, recruitment and selection, and

employee training and development as part of our human resource plan.

Maintaining site-specific knowledge of experienced/trained personnel is a critical

issue during transition, and necessary for continuing successful operation.

At the start of the contract, there may be different competence assurance

systems in operation.

PSN will introduce our established global assessment process and assess

incumbent contractor staff who are prepared to transfer to PSN on this basis

Our strategic approach to skills development is the same across all projects. At

the planning stages we will look at each projects’ specific requirements in order to

assess any additional or individual needs which are also to be considered and/or

adopted. This provides a consistently successful approach to localising our

workforces. The key steps in our global programme include:

1. Assessing the current levels of competence for all employees

2. Conducting a gap analysis against the set competence standards

3. The development of an individual training plan for each employee to meet

the standards setTenderer’s Company Name: PSN PRODUCTION SERVICES


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4. The provision of the training; including both technical and softer skills

training.

5. The implementation of a succession planning programme to act as the

vehicle for ultimately exchanging local employees for Expatriate

employees (where appropriate).

However it is important that changes to the competence systems are not

implemented too early in the contract, introducing a risk which might de-stabilise

the effectiveness of current systems. Therefore, during transition, it is our

intention to map the various competence systems to ensure that all personnel

meet our standards. Where there are discrepancies in an individual’s

competency, we will establish and implement a training plan. Examples of a

Training Matrix and a Nationalisation programme from one other contracts are

included in Attachments TA – 10.3.1 and TA – 10.3.2 to demonstrate the types of

plans and documents we will establish to manage these for the SPEX contract.

These documents also provide an indication of likely timescales for full

implementation. For the SPEX contract, planned timescales would be evaluated on

the baseline competence assessments and skills gap analysis for the personnel

deployed.

Within our HR Transition Process, we address these issues through the following:

Completion of a training & competency gap analysis against an agreed

matrix

Assurance of adequate supervision to staffing levels

Recruitment and selection process for new personnel.

Competence assurance system currently used in the Philippines

a. PSN use the National Centre for Construction Education and Research (NCCER)

for industry standard training and development. The NCCER is a training

system that is designed for the oil and gas industry. PSN have fully

implemented the NCCER training system on our maintenance and construction

contract in Batangas, Philippines.

b. The process develops the specialised knowledge and skills required of

craftworkers and technicians employed in construction projects. The NCCR

process can be used to implement a wide range of training methodologies that

range from traditional classroom based training through tasks in the

workplace, and multi-skills training. This is a competence based structure and

contains measurable objectives which are used to confirm competence in the

workplace following completion of the required training. Timelines for

completion of the training modules are set, enabling PSN to provide regular

monthly reports on training progress to the management team.


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Case Study: Shell – Batangas Refinery – Localisation:

Stage 1: Training/Localisation Plan

c. The initial stage of the training/localisation programme was to develop a

clear localisation plan, outlining how many Filipino nationals would be

trained and the timescale required, and outlining how progression would

be maintained.

Stage 2: People

d. Due to the volume of people on the programme, a Training Lead was

appointed to run the in-house training programme, with external training

providers and our PSN technical experts to ensure the smooth running of

the programme.

Stage 3: Assessments

e. In order to assign the right people to the right level of training, and to

establish the priority areas for training, continuous assessment is

undertaken. Assessments are conducted by the Training Lead and direct

supervisors, covering current skill levels and future potential.

Stage 4: Training

f. An on-going programme of training has been put in place focusing on

technical and soft skills training. Most of the technical training is on-the-

job with specific projects and tasks being assigned to the trainees relevant

to their required level of competence. A sample of the training plan for the

shell Batangas site can be found in Attachment TA – 10.3.2

PSN additional training support

Technical Training Alliance

To provide additional support to the training programme in the Philippines, PSN

has access to a number of high quality, externally accredited training

programmes which supplement the on-the-job training our people receive. These

include on-line training through a specialist e-learning provider and also our

technical training alliance organisation.

PSN has formed an alliance with Aberdeen Skills and Enterprise Training Limited

(ASET) in the UK which provides us with the experience and expertise of an

internationally acknowledged and accredited, specialist technical training

provider. This alliance currently supports several international training

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focus the training to the particular needs of a client and their operational

environment.

Additionally PSN has undertaken a recent review of training establishments and

facilities in the Philippines as part of our strategic plans and have good data and

contacts now with several establishments which can provide training, resources or

facilities for training independently or in conjunction with ASET in the UK.

Development Assignments

We have opportunities for development assignments in our offices across the

world, with geographical mobility becoming a key development tool at PSN.


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Case Study:

Graduate Mobility – Filipino Graduate in UK

In 2007, we hired a graduate structural engineer from the Philippines into our UK

business to complete the graduate training programme over a 4 year period.

Rosa has become an integral part of her UK project team and is learning key skills

and ‘the PSN way’ of working in the corporate headquarters. Over the next 3

years Rosa will be working towards Chartered Member status with the

internationally recognised UK Institute of Civil Engineers by developing her

technical portfolio in line with the Institute standards. Deployment to our

Singapore office to support regional business is an option currently in

consideration.

In 2008, we mobilised 50 high performing employees around the world on

development assignments.

Specialist Academies

Our innovative approach to ‘growing our own’ talent includes our own Design

Academy created in response to the growing demand for design experienced

personnel.

The Academy trains Electrical and Instrumentation, Structural and Piping Design

trainees and provides an accelerated professional development. This innovative

skills solution provides opportunities for students to achieve a SVQ Level 3

qualification in Drafting and Design through the Modern Apprenticeship initiative

using a combination of classroom and on-the-job training.

In 2008, the Design Academy model has been rolled out to our locations in

Kazakhstan, Azerbaijan, Sakhalin Island and Melbourne.

1.11 Onshore Support and Engineering Office

Our office in Manila will be equipped for the modern business environment,

including accommodation, support, communications and data links. The office will

have full-time receptionists during weekdays, and 24-hours. The PSN Real Estate

team mobilised to the Philippines at the award of contract will ensure that

accommodation contracts, IT infrastructure, security agreements, office fit out

and furniture, and support service contracts are in place in line with the required

and agreed schedule for the personnel numbers in our bid.

Information, Communication and Technology Network

The provision of Information Communication and Technology within PSN is

focused on operational excellence for the business.


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We will provide services for systems and data through the global application of

standard hardware and standard software solutions. The main benefits are to

drive down cost while maintaining appropriate availability and security of data.


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Hardware and Infrastructure

The network infrastructure based on Microsoft Windows 2003 server technology

and consists of standard hardware with core software based on Microsoft

products. These include Windows XP, Microsoft Office 2007 and Exchange 2007

mail services.

These processes and methodologies facilitate:

Better management and support services

Reduced risk of system failures

Elimination of incompatibility problems through the use of common file

formats

A common environment for roaming users

Significantly less interfaces

Global monitoring and support

Application Systems

We offer a standard set of integrated application systems. These include but are

not limited to the list below.

The strong advantage of using this standard suite is that they can be deployed

immediately from the start of a contract. No customisation is required as all

interfaces have already been developed. These applications are all currently in

use in various parts of our organisation.

Table 1.11.1 – Application Systems

FunctionTechnical Purpose

Software Used

Planning PRIMAVERA P3 (experience of

using Company P3E in previous

contracts)

Planning

Document

control

DOCUMENTUM Document control

Interface

management

PSNMS, Safety management

System

Interface management

Incident

reporting

Synergi Incident reporting

Shutdown On Track Managing Shutdowns

Quality

management

PSN MANAGEMENT SYSTEM (ISO

9001)

To act as the information

source, outlining the detail of


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hbb6757, 02/11/09,

This needs to be verified by IT now we are rolling out 2007 and the SPEX requirements


FunctionTechnical Purpose

Software Used

all processes


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Emergency Response

Whilst we have a comprehensive process for the management of emergencies

within the scope of our operations, on this contract SPEX will retain Primacy. PSN

will support this by ensuring an interface document is in place detailing the

integration of PSN procedures to those of SPEX and that our people are trained to

support SPEX Emergency Response team. Our people offshore will be trained to

facilitate Emergency Response requirements under the direction of SPEX.

Emergency Response facilities are presumed to be available and in place within

the SPEX Manila office as operator of the field.

PSN have an emergency response process to handle support of SPEX Emergency

Response Team and also to manage Relative Response Communications for our

employees.

For those nominated individuals who will have defined Emergency Response

duties, training needs will be identified on individual training matrices.

1.12 OPEX Budget Creation and Control

Asset budgets will be developed by SPEX. PSN will provide the necessary data and

forecasts required to support and manage costs as specified in the tender. PSN

are fully aligned with YTT reporting and have experience from other Shell group

support contracts.

In order to control the costs associated with the defined maintenance and

engineering activities a budget and cost management plan will be developed and

owned by budget holders. Spending authorisation limits will be in place as per

SPEX requirements and lines of communication on cost issues across the

workforce will be established.

1.13 Maintenance Management

PSN have extensive experience in the provision of maintenance services

aligned to specific client requirements in various locations around the

globe. We can develop, implement, execute and improve strategies

designed to maximise the profitability of assets by optimising balance

between production performance and lifting costs.

PSN fully understand the maintenance support requirements of the tender and the

execution model detailed in the tender document. We recognise the model as the

corporate global model and we have significant experience working to this within

other Shell contracts.

We have reviewed the indicative maintenance organisations for the Shallow Water

Platform (SWP) and the Onshore Gas Plant (OGP) and have made some minor Tenderer’s Company Name: PSN PRODUCTION SERVICES


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modifications to the organisation diagrams in line with our experience in the

Philippines and other countries where localisation is a high priority.


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The extent of the offshore and onshore maintenance work and the distribution

between disciplines has not been specified, therefore we propose a joint review of

the proposed organisation diagrams with SPEX against the scheduled

maintenance tasks and estimated hours within the SPEX Computerised

Maintenance Management System (CMMS) to agree resource numbers for each

discipline and final organisations which best fit the quantum of work projected. No

information has been provided of the SPEX organisations at the two locations

therefore the review should include the SPEX organisation diagrams and roles and

responsibilities which will clearly define roles of Contractor resources, interfaces,

reporting and approval responsibilities.

PSN expect to be able to retain key maintenance personnel from the incumbent

Contractor’s staff to provide continuity of knowledge and capability within the

maintenance teams. We will however plan to shadow key personnel as necessary

where incumbent staff have decided not to transfer to PSN to mitigate risks to the

operation at handover.

PSN will employ national staff in all maintenance positions but will include highly

competent and experienced expat personnel as maintenance coaches for the

initial period of the contract. These coaches will mobilise to the Philippines as

soon as we have PSN Maintenance Techs in place to commence a process of

coaching in PSN processes, systems and attitudes to maintenance excellence and

rigour and the needs of the SPEX Operational Excellence requirements. These

coaches will be responsible for the efficient development and assessment of the

national Maintenance staff and will work to a defined timetable of competence

achievement for key team members. Coaches will be demobilised at a point when

SPEX and PSN agree that the PSN local Maintenance staff have demonstrated the

necessary competencies to work independently with remote support as necessary

from PSN’s network of Maintenance Support professionals regionally and globally.

We have extensive experience within PSN of SAP PM through relationships with

various major and independent operators. PSN will share experience and learnings

collated from our cumulative experience should SPEX feel this beneficial to the

ongoing internal work to redefine preventative maintenance strategies and

routines for the facilities. Support for SAP will be provided within the local PSN

office and will be supported from our corporate Operations and Maintenance team

We will also propose the implementation of a joint review process looking for

improvement opportunities in areas that will support the desired equipment

availability target while moving the maintenance execution from a reactive to a

pro active and planned operation.

PSN follow continuous improvement processes in all our contracts as a basic

business tool. We will implement our internal processes (detailed below)

immediately and interface these with SPEX processes where necessary to ensure

full alignment with SPEX objectives and the Shell OE visions.

Maintenance management is cyclic by nature, constantly evolving and changing

throughout the life cycle of the asset and comprises of four key elements, of


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Practice, People, Performance and Progress (ref Figure 1.13.1). PSN will ensure

that all critical elements of the maintenance system are connected to support the

efficient delivery of the scheduled maintenance and promote the implementation

of a continuous improvement process.


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PSN will ensure strict adherence to SPEX integrated planning compliance. We will

ensure that any work to be scheduled into the integrated plan will have the

necessary approval, work pack, spare parts and resources available to facilitate

the work. Preparation of this detail will be the responsibility of the onshore based

maintenance team lead.

Figure 1.13.1 - Maintenance Execution Continuous Improvement Process

Our PSN internal management system ensures the necessary integration of these

four elements to form a single integrated management process designed to

deliver optimum performance throughout all phases of the asset life.

Practice

Performance requirements for the facilities will be determined and quantified

through the Asset Management process. We will ensure that all tasks are

monitored and compared to planned tasks and hours, consumables and spares

usage and availability expectations, total hours to wrench time, and other

monitoring and comparison data to highlight shortfalls in equipment capability or

availability as well as ensuring we deliver maintenance activities effectively,

efficiently, Right First Time.

Failures or non compliances will be analysed through root cause processes

to identify actions required to facilitate the necessary improvements to meet

SPEX improvement objectives. Actual processes which will be utilised will


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Diagram below needs Repsol name removed


vary dependent on the scale of the non compliance. The base process

deployed will be the ‘5 Why’s’ process.


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Monitoring can be facilitated through the CMMS reporting functions. PSN will offer

to share our experiences in this area and make available the SAP support

personnel where requested to create this functionality within the SPEX SAP based

CMMS. Our experience in set up of reporting from SAP based CMMS systems will

also be made available to SPEX.

People

We will execute maintenance activities through an assessed and competent, core

team, which will form the permanent backbone for maintenance and engineering

activities at SPEX offshore and onshore facilities. Where appropriate and agreed,

PSN will enrol the support of the current PSN maintenance support establishment

in the Philippines to create efficiencies in work management processes and find

synergies which can reduce overall costs to SPEX and PSPC Refinery alike

We will utilise our extensive experience of working in the Philippines to identify

potential resources in line with Philippines employment requirements and assess

and select personnel for our core teams. Our level of confidence and assurance is

supported by our experience in country of recruitment for personnel, sometimes

on a scale of several hundred at a time for short term turnaround requirements,

who meet our stringent requirements for technical ability and attitude to safety

and personal development. These efforts have been underpinned by the PSN

competency assessment and assurance programme supported by our training

needs and management process.

During periods of peak work activity, we are confident in our proven ability to be

able to supplement the core team with short term competent and suitably

experienced personnel. We are also confident in our ability to manage these

peaks efficiently and safely through our experience with the PSPC Refinery

support contract.

Any campaigns will pay particular attention to pre-planning especially before any

offshore visit, using pre-visit check lists and other relevant techniques we have

developed.

We propose that all personnel who will work on site will be required to attend

annually the Safety SHELTER training at PSPC Refinery and pass the required test

before being allowed to mobilise to any SPEX facility.

We will use rigorous safety screening of clearly defined work scopes before

mobilisation and ensure any risks identified are fully mitigated through working

practices. The outputs of the safety screening are then fed into the work place risk

assessments and through to the toolbox talks.

We have extensive experience in the day to day support of operations and

maintenance for a complete range of offshore and onshore facilities. We will share

and implement best practice across this project by utilising support from our

global network.


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People are recognised as PSN’s most valued asset and our processes are focussed

on maximising the development and competency of all employees no matter

where in the world we supply services to clients. This training ensures we keep all

employees focussed and aligned with client objectives and continue to work hard

to deliver work efficiently and on client expectations.


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Our Operations and Maintenance contract with Cairn Energy in Bangladesh

demonstrates that this strategy is as effective in a developing country as well as

in developed locations. The article, shown in Appendix 1, at the back of this PEP,

details the high level of alignment and commitment to delivery of value to our

client that Cairn has experienced at the Sangu facilities in Bangladesh

Performance

Performance reporting will form a central part of the overall contracted services.

Performance will be constantly monitored to ensure maximum efficiency is

sustained.

Within maintenance we will report performance for the asset in accordance with

SPEX requirements as part of the project monthly report. The main source of our

data will be in the SPEX SAP based CMMS and therefore we place a high degree of

importance on the quality of data input to the system. We will support SPEX in the

need to monitor the quality of the data supplied input on the CMMS system.

The reporting format will cover the main KPIs and other appropriate metrics with

respect to Maintenance and will from our experience typically cover:

Backlog status by criticality and work order type

Ratio of Routine maintenance man-hours vs. Corrective man-hours

Productivity of technicians (how many offshore hours are spent actually

performing maintenance)

Compliance (how many safety critical PM’s were planned and how many

were completed)

Performance against execution plans

Number of unplanned work orders created

Availability of key equipment

Types of defects experienced throughout the month

Production losses directly attributed to maintenance defects

Cost to date of maintaining key equipment

The PSN management team will review these figures monthly and will recommend

strategies in the monthly report to rectify any departures from the

targets/expectations set for each measure.

1.14 Integrated Planning

Essential to achieving Operations excellence is the ability to deliver planned

targets. In an offshore environment there are many activities competing for

limited space and resources. PSN are fully aligned to the need for integrated


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planning to manage these limited capabilities and are committed 100% to

supporting the SPEX Integrated planning process.


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PSN have mature and well-proven integrated planning systems and experience

and we are confident that this experience can be utilised to provide best possible

support to a SPEX Integrated plan. The PSN planner/schedulers will establish close

working relationships with the SPEX planners to ensure prioritisation and

efficiency of working to protect SPEX business objectives. PSN will develop

plans/schedules for maintenance, modifications or engineering and construction

activities in P3 which can be readily imported to the SPEX Integrated plan.

It is PSN philosophy to challenge all activities before it is finalised on any plan.

We envisage our main inputs to the various plans as follows:

5-year Plan – At this level the main key areas of interest are SPEX business

plan, the major shutdown activities, the level of maintenance (core crew and

specialist vendors) required and modifications or CAPEX workload envisaged

for the assets.

1-year Plan – this provides a detailed presentation of the activities

requiring major outages or overhauls is given, complete with an estimate for

corrective work.

90-day Planning – By the time the 90-day plan is issued the detail will be

at work order level for almost all of the activities. Greater focus is applied to

the first 28 days and ideally all the activities in this period will be frozen with

specialist vendor mobilisation confirmed and materials delivered.

28-day plan – This is the execution plan and it would normally have all the

work orders for the next 14-day period listed in order of priority.

Prioritisation is extremely important to ensure that the most important

safety critical tasks are completed within this period, and not left to fall into

backlog. Approval of the 28 day plan will ensure that all required materials,

vendors and personnel will be available for each activity.

1.15 Sub-Contract Management Plan

Our chosen subcontractors and suppliers are all experts in their field and

discipline. Our experience gained from 13 years working in the

Philippines with PSPC approved sub contractors provides us with the

additional knowledge of the key sub contractors and Ad Hoc vendors,

another factor that will facilitate a seamless transition.

All of our selected contractors have a working knowledge and extensive

experience of the Shell standards and procedures with which they will be

expected to comply.

Assess Needs


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At an early stage we will need to understand all SPEX and the incumbent

Contractor’s current sub contractors and their contract expiry dates. This will give

definition to the extent of the management effort and allow agreement between

PSN and SPEX on Contractor resources needed to manage the services supplied.

This will also define the extent of sub contracts which PSN may need to put in

place in the lead up to handover. PSN will work with all existing sub contractors

while developing a transition strategy for renewal or replacement of existing

contracts as they expire. This strategy will be issued for an interdisciplinary

review by all parties involved in receipt, management and delivery of the service.

Figure 1.15.1, shown below outlines the key activities which form our

subcontractor management strategy.

The selection of potential PSN subcontractors is a rigorous process which ensures

only the most suitable and capable vendors are considered for the work.

A key decision factor for sub contract award is HSE processes and performance.

We will also assess attitudes to safety and external audit by PSN or SPEX within

the decision making process.

PSN are committed to supporting local companies that do not comply with PSN

and Shell minimum requirements, but who have the potential to do so. We will

assist them in developing their skills base and competency levels that may enable

them to be considered for future contracts. PSN has a track record especially in

Chad and Bangladesh where we have assisted the development of local

companies.

Subcontract Management Cycle

Figure 1.15.1– Subcontract Management Cycle

Inventory Control

A review of the current inventory control systems is required in the early phases

of this contract. PSN assumes that the Inventory Management System is being Tenderer’s Company Name: PSN PRODUCTION SERVICES


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operated as a function of the Computerised Maintenance Management System.

PSN will require to obtain details of the inventory and location of spares and

consumables.

Data derived from the preventative maintenance monitoring program shall be

used to propose changes to the spares strategy, the procurement and usage of

spares and materials for the maintenance activities.


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Procurement

We will provide procurement services in a cost effective professional manner

however the extent and depth of information provided in the tender is insufficient

to define the resource required for this service. Further discussions are required

between PSN and SPEX to enable PSN to finalise procurement resources required

within the Contractor organisation to support engineering, modification and SPEX

ad hoc procurement demands.

PSN’s business operates under a Code of Business Ethics, and we require those in

the procurement function to annually confirm their strict compliance with this

code. Where we provide procurement on your behalf, compliance with this code

remains as a fundamental requirement for all those involved, and we have

monitoring systems in place for additional assurance.

We will deploy a PSN procurement resource into the PSN Philippines office in

Manila. Access to the SPEX SAP system will be required as all procurement will be

through the SPEX SAP system.

PSN has extensive experience of using client SAP systems for procurement of

materials and spare parts e.g. Shell, ConocoPhillips and Chevron.

Phase 2 - Takeover


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2.1 Implementation Overview

Once all the key transition issues have been resolved PSN will take over the

Maintenance and Engineering services for the SPEX facilities. Target date for this

milestone event is Jan 1, 2010.

In order to deliver the desired objectives of SPEX namely;

increased wrench time,

higher percentage of planned and preventative maintenance,

reduced operating costs,

improvement in competency,

improved equipment availability,

increased production, and

better modification engineering quality

SPEX require a “Step Change” in the way the maintenance and engineering

activities are delivered. PSN’s continuous improvement strategy and processes

along with our competency and training programs are the basis of achieving the

desired “Step Change”. The improvement process calls on various learnings

derived from Total Reliability, Lean, 5 Why’s, 4D and other well established

business improvement techniques designed to change mind sets and attitudes to

the way maintenance or engineering is implemented. Much of this experience has

been gained from work with operators such as Shell and Nexen. Tangible

improvements have been delivered through an integrated and aligned approach

to change management between PSN and our clients and targeted at the

integrated client contractor teams on the facilities.

PSN will commence implementation of agreed continuous improvement initiatives

aligned to those of SPEX immediately upon assuming responsibility for

maintenance and engineering support services. Initially we will focus on

protecting the existing production levels in a safe and prudent manner by

minimising changes to the maintenance process and team. This will allow time for

the transition of the maintenance support crews and services to PSN management

and for any new employees to understand their roles and responsibilities and their

individual importance in the achievement of the contract objectives. We will work

with SPEX to demonstrate the level of alignment and commitment of SPEX and

PSN to deliver these goals.

Engineering handover has its own issues with regard to handover. Other than at

completion of engineering and installation our experience of engineering support

transitions have identified that a close alignment is required between Company,

the Incumbent Contractor and the new Contractor to effect an effective and

efficient transition. We will therefore work with SPEX to identify which workscopes

currently being progressed by the incumbent Contractor should be progressed to

completion by the incumbent (including installation scope). Alternatively we will

identify and agree practical handover points for scopes which SPEX would like PSN Tenderer’s Company Name: PSN PRODUCTION SERVICES


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to take a over responsibility but agree the need for the incumbent contractor to

retain responsibility and accountability, for the efficacy of the design,

procurement and construction/commissioning support through to workpack close.

Engineering, planning and management of the 2010 facility turnaround will be

reviewed at the earliest practical time after award of the contract and may

necessitate provision of support services earlier than the planned Jan 2010

takeover date.

During the Contractors conference, SPEX highlighted the Total Improvement

Project with a planned shutdown of the Malampaya asset at the end of Q1, 2010.

PSN recognise the critical importance to SPEX to ensure the success of this

project. PSN has very limited information on the scope of the work and propose

that {PSN, SPEX and the Incumbent Contractor would meet early after contract

award to PSN to discuss roles and responsibilities to ensure project success.

In order to address the change required through out the life of the field the

organisation will be continually reviewed to match the desired operational

requirements. Safety and Integrity will remain paramount as the offshore and

onshore organisations change to meet the operational demands. All proposed

organisational changes will be controlled by the application of the SPEX

Management of Change (MOC) process.

2.2 Onshore Support Team

PSN onshore team will be manned by Philippine nationals selected and recruited

by PSN or transferred from the incumbent contractors team, where they are

considered competent and suitable. Our strategy is aimed at establishing a

national support capability from day one but recognises the need to manage

potential risks to SPEX business. These risks are managed and controlled to an

acceptable level by the inclusion of a highly experienced Maintenance Coach. The

coach is a competent and experienced expat resource capable of providing

support in his own right and of developing local national personnel in the

techniques, processes and capabilities associated with LEAN techniques. He will

have responsibility to manage the effectiveness of the PSN support and develop

the national engineers to a point where they have been assessed as competent

by both PSN and SPEX to work independently and sustain these work processes

and methods with remote support from the PSN global network.

Leading our team is the Assignment Manager; Alan Russell who has over 16 years

experience in the oil and gas industry with the last 10 spent in senior

management roles in the Shell Sigma3 JV contract in the UK.

Alan will have authority to commit PSN resources as required and is responsible

for all PSN’s project related activities. He will be the primary liaison with SPEX

management team. The Assignment Manager will be dual located in both SPEX

and the PSN Manila office.


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The onshore team will have an HSE Manager, Tito Lejero who will oversee the

reporting and delivery of safety initiatives on the contract. Tito has been the

driver of world class safety performance on our PSPC Tabangao contract. He has

been key in developing the Shell Safety Shelter concept into a critical safety

process for all permanent and short term hire staff working for PSN. The

development for the Shelter has been key to delivering safety performance and

he has been recognised within the Philippines through this work and other safety

initiatives as the best Safety Leader in the Philippines winning 5 awards including

individual GKK Gawad Kalusugan Kaligtasan (Occupational Health and Safety

Award) from the Philippine Department of Labour and Employment.

Leading the Transition Management effort is Peter Walton; Peter has over 30yrs

experience in the industry and extensive experience in project and contract

management. He also has experience in contract transition management

including engineering support and is well placed to apply his experience and PSN

learning’s to the transition management role for this contract.

We will use Peter to manage the Technical Improvement Project scope as a follow

on from the transition period. We recognise that this project is crucial for SPEX.

The appointment of a new contractor, timings and extent of the scope (which

have been locked in to an early 2010 implementation window) dictate that a

specific manager should be appointed for this work so as not to distract the

Assignment Manager from focussed management of the early phase of delivery of

the full contracted scope.

The Maintenance Team Lead proposed is Lee Dickinson; Lee has 14 years

experience predominantly in the O&G sector. He has progressed his career

through to his current position as Maintenance Lead and has become a lead figure

in the development and implementation of Shell’s TRilogy initiative in the UK. A

key player in Shell’ Central Asset top quartile performance achievement. The last

9 years of his experience has been within the Shell UK Sigma3 JV ensuring a deep

knowledge and understanding of Shell maintenance processes and procedures.

The Engineering Lead proposed is Euan Cameron; Euan has over 25 years

experience in Engineering and Maintenance. He has a wide range of experience,

which includes International, UK offshore and onshore industries. Euan has a

track record in delivering engineering activities and projects, along with the

development of his engineering staff. Euan brings experience from other parts of

Shells portfolio, having worked on major engineering projects within Shell UK.

CV’s for these personnel and nominations for other key posts are included in TA -

05 for SPEX review.

KPIs will be identified and agreed in line with the proposal areas in the tender with

SPEX to track performance in key metrics that are associated with SPEX business

objectives and the risk reward and bonus system proposed.

As well as providing the onshore and offshore crew with day to day Technical

Support, on an as required basis, the onshore support team will be responsible for

planning and preparation of maintenance activity. They will also monitor and Tenderer’s Company Name: PSN PRODUCTION SERVICES


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analyse maintenance performance of the PSN team on a regular basis to identify

improvements or corrective actions. They will also interface with the SPEX

planners and supervisors to ensure development of an integrated plan that

addresses SPEX business needs and priorities.

The Supply Chain team is responsible for contracting strategies and overseeing

the subcontractors used by PSN. Supply chain will handle all purchasing functions

and will have access to the SPEX procurement system


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The Administration team is responsible for all back office support including

administration, accounting, payroll, HR, and training. They will be located in the

PSN Manila office.

PSN will utilise corporate function personnel during the transition phase to ensure

we meet recruitment targets. The capabilities of the PSN team will be assessed

and managed through coaching and on job training to a point where competence

is embedded and verified within the national team and they can work

independently. Remote support from the coaches or the global support network

will be available.

2.3 Offshore Teams

PSN will have 100% national offshore workforce recruited from the incumbent

Contractor or through local recruitment efforts. The team will be trained and

coached in the new strategies and processes of maintenance and improvement

techniques by the onshore support team. Regular offshore visits will characterise

the support provided by the onshore support team to support and enhance

relationships and verify capabilities and development progress of the offshore

team. Field and site visits will also create the feedback necessary to the onshore

Maintenance Team Lead to generate the level of assurance of the competence of

the offshore teams and of the onshore field based team.

All offshore personnel will work 12 hours per day on a 14 days on / 14 days off

rotation providing:

Some first level preventive maintenance tasks such as greasing of valves

Follow-up of corrective actions defined by company internal and external

audits

Commissioning and start-up of new or modified facilities

Produce short-term activity planning based on required interventions and

optimisation of their impact on production operations. These interventions

could be related to production, maintenance, construction or other

Help to produce long-term planning by providing support to other

departments

YTT reporting input.

Our staff will have the knowledge and skills on the field equipment to ensure that

planned maintenance and other Tier 1, 2 and 3 maintenance activities are

performed as per the CMMS plan.

2.7 Reporting


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We will provide all necessary reporting of PSN activities in line with agreed

company requirements and ensure that the data is reliable and adequate for

eventual audit.

We will evaluate the reporting methods and look for efficiencies in the information

and the medium in which it is presented.


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Once per month the PSN management team will meet formally with SPEX

management representatives to discuss maintenance, engineering and

construction projects so that both PSN and SPEX are aware of all ongoing and

upcoming events.

During the meeting, PSN will present a detailed report summarizing the

activities of the previous month.

2.8 Budget Management

It is very important to have measures and reporting systems in place that give

clear visibility on support costs for maintenance and engineering activity. PSN will

support the SPEX YTT cost reporting process detailing costs and progress to

support efforts to reduce operating costs over time.

PSN will monitor the operating expenses for both engineering and maintenance

activities, comparing actual costs versus the budget and internally benchmarking

against our other global contracts.

All third party invoices for supplies, materials and services will be reviewed,

compared against the purchase orders, coded for payment, and approved by the

PSN management team. Invoices related to variable expenses will then be

transmitted to SPEX for processing.

Each month PSN will present to SPEX a detailed operating expense statement

summarising monthly expenditures, as well as a variance report discussing

significant deviations from the budget. This statement will be an integral part of

the Monthly Report and a topic of the monthly review meeting.

Through its Supply Chain group, PSN will pursue all opportunities to minimise

SPEX costs for third party services by finding alternate suppliers, and/or coupling

the work with other PSN managed services in the area.

All our sub contractors will be challenged to produce significant cost and

productivity improvements. Their performance will also be measured against

internal and external benchmarks and budgets. We will deploy all our processes

which monitor usage of consumables and provide information to avoid waste and

duplication.


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Phase 3 - Continual Improvement Phase


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3.0 Operational Excellence Implementation

Operational excellence is benchmarked by being best in class with respect to, HSE

Performance, Production Efficiency, Maintenance Efficiency and Operating Costs.

It is not just a technology issue but one that involves people, plant, processes and

production. In moving towards operational excellence, the driver is to safely

maintain and if necessary increase production without damaging the environment

while driving down lifting costs and driving up plant availability. In achieving these

goals field abandonment and decommissioning are deferred as far into the future

as possible.

3.1 Opportunities Register

We recognise that the capture and realisation of improvement opportunities is an

essential element of a learning organisation. Good ideas may come from many

sources and simple ideas put into practice realise significant benefits. This

concept is a cornerstone of our continuous improvement philosophy. We strive to

create a culture and environment of challenge, where innovation is actively

targeted, promoted, enabled and recognised.

An opportunities register will be created to capture all the potential improvements

for the asset with a strict compliance criteria set in order to rank entries. All

entries into the register will be criticality assessed as well as risk assessed for

business and HSE risks and then weighted against overall benefit to the company.

This will create a ranked list of opportunities that can be implemented based on

available Capex or Opex budget.

Employees will be encouraged to have opportunities entered into the

Opportunities Register and financial incentives will be paid for any items

implemented.

3.2 Continuous Improvement

With the required foundations in place PSN will work to deliver operational

excellence and technical integrity for the SPEX operation by:

Creating a Leadership focused on SPEX priorities and with a detailed

understanding of key business drivers. PSN leaders will consistently and

visibly drive performance improvements to meet strategic objectives.

Developing an organisation that is fully engaged and people empowered

across all levels of the organisation to deliver World Class performance.

Sharing and transferring best practice from all its worldwide operations.

Comprehensive management system that will enable safe management of

activities to complement those of SPEX and achieve continuous

enhancement of performance standards.


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Having the right people, with the right tools and processes, in the right job,

to meet operational needs. Competency development will be fully aligned

with future vision and technology requirements.


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Employing staff to provide support services competently within defined

operating envelopes, minimising production losses with routine equipment

monitoring and tracking of reliability performance.

Exploiting good reliability processes using value focused, proactive

maintenance, utilising condition monitoring and failure analysis tools to

optimise reliability.

Reporting on operational performance measures to enable effective

interrogation of performance indicators to aid decision making and where

necessary identify where appropriate improvement actions are to be

targeted

3.3 Performance Improvement

Continual performance improvement will be achieved by having efficient

reporting systems collecting key data that will be benchmarked against

similar operations.

Focus on planning and preparation will be rigorous

Capabilities of our people and their competence to deliver the services

identified will be a key process

Results of improvement actions will be made clearly visible in performance

reporting.

This process will enable any gaps in performance to be identified and allow

plans to be put in place to allow continued performance improvement.

PSN will seek to deliver regular performance break through based on latest

knowledge and implement new technology and processes.

PSN leadership encourages innovation and implementation as an accepted

part of our business excellence processes.

Our improvement process will have trends and data available to all.

Monthly/quarterly review and participation will take place at all

organisational levels. Peer challenge will be the norm.

Performance gap remedial actions will be included in business plans and

actively tracked to closure. Defect elimination will be a part of everyday life.

Action teams will be created when required to focus on particular areas for

improvement.

Stretch targets will be based on industry best-in-class benchmarks.

3.5 Spare Parts Rationalisation


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In the operational phase of the asset life cycle it is necessary to continually re-

evaluate and realign operations, maintenance, spare parts, procurement, and

other aspects to ensure they remain effective at delivering an optimum level of

service against changing production profile and asset economics.

This process is a fundamental part of PSN service delivery and we pride ourselves

on being able to deliver year on year improvements, delivering benefits to our

clients and extending the economic asset lifespan.

Root Cause Failure Analysis will be used continuously to identify problems and

improvements, and to justify equipment replacement. Our teams will be familiar

with problem solving. There will be routine supplier dialogue and equipment

appraisal.

There will be a cross-functional drive for improvement. Technicians will be skilled

in performance analysis, diagnostic and contingency planning and scheduling.

Focus will be on value and not solely on costs.

3.6 Opex Management

It is very important to have measures and reporting systems in place that give

clear visibility on unit lifting costs. i.e. the cost of producing one barrel of oil

equivalent (boe). PSN’s cost management process will endeavour to reduce costs

over time. Management of change of both equipment and organisation will be a

constant feature of our service provision as we work towards meeting the

constant cost challenges.

All our sub contractors will be challenged to produce significant cost and

productivity improvements. Their performance will also be measured against

internal and external benchmarks.

We will have tools and processes available to monitor usage of all consumables

and provide information that enables a rapid response by the operators and

budget holder.

3.7 Capex Management

During the life of field it is common to identify modifications to plant and

equipment that can either remedy previously unforeseen safety hazards or

improve overall operations efficiency. PSN will deliver a robust platform

modifications process that will determine if any proposed modifications meet the

criteria of either improving safety or have net positive value (NPV) that will satisfy

agreed business case metrics. Typical metrics would be capital efficiency and

return on capital employed.

4. Engineering and Modification Support Services


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PSN has extensive design, project management, construction and commissioning

experience with most of the major Operators in delivering a wide range of

Brownfield modifications. These services will be available from our regional

engineering support offices or from partner companies in the region.. Where

specialist engineering expertise is required this will be provided from our UK

based Central Engineering Support department or our Melbourne Engineering

Support Centre.


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Our approach to engineering has been characterised internally as Lean

Engineering. This approach challenges the need for engineering or modification

using our 4D system (Defer, Delete, Diminish, Different) and a 4 tier engineering

approach to engineering and installation/construction activities.

Tier 1 and 2 engineering are for minor works where field technicians and local

onshore support teams are competent to replace or alter systems through the

design and MOC process with verification approval through the main engineering

technical approval authorities. For SPEX this would typically be handled by the

maintenance and modifications support teams based in Manila and installed or

contracted by the fleld/site technicians.

Tier 3 & 4 engineering tasks would require qualified design engineering and

designer support. This would be channelled through our Singapore Engineering

Support Centre backed up as necessary by PSN Central Engineering group in

Aberdeen or our Engineering Centre in Melbourne. This support would be provided

on a remote networked basis or, where considered necessary by seconding

specialist engineers to the Singapore office for the basic and detailed engineering

design phase.

All engineering activity for all tiers will comply with PSN engineering standards

and procedures.

The Engineering Manager based in the PSN Manila office will be responsible for

the distribution of engineering support activity and the management of the work

and budgets for delivery of the work.


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Appendix 1

The below article details the high level of alignment and commitment to delivery

of value to our client that Cairn has experienced at the Sangu facilities in

Bangladesh


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2. If there is any scope in the PART 4, SCOPE OF WORK/ SERVICES, which Tenderer is unable or unwilling to provide. Tenderer shall indicate clearly under TA-1 QUALIFICATION TO ITT DOCUMENT.

3. The PEP as a minimum shall show methods in executing the works including but not limited to the following:

- Setting up of local office- Procedure for mobilising & demobilising of personnel to the Philippines- Management of the contract in term of local offices resources i.e. whether there is an

establish branch office in Philippines, location / address of branch office, existing facilities & services offer by the local branch office, etc.

- Interface between different contractor(s) or government organization such as applying for work permit for foreign employees, etc.

- Elaborate on resources available to CONTRACTOR (locally or abroad) and other meant in which CONTRACTOR can source for current and future maintenance and engineering services personnel requirement e.g. access to deep technical engineering capability (specialist support).

- Duration of the activities in meeting contractual mobilisation dates and target. - The PEP shall also cover welfare arrangement for Contractor’s personnel in term of

accommodation, transportation, emergency response plan, etc.- Sub-contracting plan - Plan for sourcing and engaging the required number of skill maintenance crews i.e.

lead technician and technician within the allocated time frame. - Daily Cost Management rollout schedule/ plan - Plan for continuous maintenance improvement and optimisation (e.g. provide

evidence to demonstrate tenderer capability to deliver continuous improvement aligned with the above, and provide evidence of situations which has been achieved when working in client organizations, if any)

- Training and development programme for all position in the proposed organisation in particular development for Filipinos.

- Time frame for knowledge transfer, Training plan, etc

4. Tenderer to elaborate on how the required number of skilled & unskilled manpower will be source and engage, whether these manpower will be from existing organisation. If not, how tenderer intend to engage these personnel within the time frame allocated i.e. whether via your recruitment programme, external manpower companies, affiliate, sister companies, etc.

5. Tenderer shall clarify on Tenderer’s medical arrangement for local and expatriate employees i.e. detailed medical plan / arrangement with recognise medical centre. Tenderer shall provide evidence of such arrangement.

6. In addition to the PEP, TENDERER shall also submit a preliminaries/ draft Contract HSE Plan in accordance with DOCUMENT C, PART 11, HSE for COMPANY reference & consideration.

a) Setting up of local office

Alabang Office

On award of contract the procurement and fit out of the office will be

handled by our Real Estate team who will immediately visit the location to

arrange to undertake a condition survey, agree on final lease terms and also

audit on the premises with particular reference to fire, safety and travel

before committing to the property.

Design of office layouts will be undertaken on the same visit followed by the

ordering of partitioning, furniture and equipment together with the

necessary IT infrastructure kit and equipment.


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This design and implementation will be done in an integrated manner

involving PSN’s T team and specialist service providers who will work closely

with the project group thus ensuring the office is up and running in a timely

manner in accordance with the mobilisation plan.

b) Detailed in item 1 of the PEP

c) PSN Propose establishment of the office @ Insular Life Building, Asean

Street, Finvest, Alabang, Philippines. The organization diagram details local

office resource provision, in TA - 04

d) Although in the Philippines our project is virtually entirely nationalised

with Filipino nationals, we have extensive experience of obtaining work

permits for foreign employees not just in the Philippines but in all of the

20 countries in which we work. We have a corporate travel and visa

department in our headquarters in the UK which co-ordinates short term

business visas for personnel visiting different countries, however for each

country has its own local procedures to support any visitors from other

countries.

In the Philippines work permits for foreign employees is managed by the

Department of Labour Employment (DOLE) and Bureau of Immigration

and Deportation (BID). We have relationships with these authorities and

are very familiar with the requirements for making work permit

applications, and the restrictions and limitations on work permits once

they are approved.

e) Detailed in item 1 of the PEP

f) Manpower utilisation is detailed in the Mobilisation Plan in TA -07

g) The welfare arrangements for PSN personnel and our subcontractors

relating to transport and Emergency Response are fully covered in the

HSE Plan in sections 5.6 and 5.1 respectively.

Welfare issues relating to accommodation for PSN personnel are

addressed via in-house safety and security assessments

conducted at time of entry to the accommodation.

h) Refer to table in Attachment TA – 14.2, located in TA – 14.

i) Upon approval of Requisition for Personnel, notify host Baranguay for

personnel requirement. Suitable candidates are identified, we are

contacted directly and interviewed to evaluate their technical

backgrounds, experience and abilities, as well as their aptness with our

organisation objectives.

We complete through verifying credentials and employment histories.

From this careful screening process we develop a list of

candidates who best match our candidate profile.


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There are five (5) communities within the host Baranguay, the first

community that must be notified is the Amblong community

regarding the positions available.


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This is done by letter and if they have suitable people to refer they put

forward their details as a recommendation and to contact directly. In

general, they are able to supply scaffolders and mechanical people

(generally not professional staff), for example, for this shut down

approximately one hundred and eight (108) people have been hired from

this community and a further two hundred (200) from the outlying

communities.

The outlying communities are contacted via letter after the first

community has been and at this point PSNPC may advertise in the

newspaper which is done directly. Newspaper of choice is the Bulletin

Today which is a nationwide. This is not done regularly as the

communities and word of mouth often fulfils the roles. For example, the

current shutdown requires approximately six hundred (600) people and

the team has not advertised in the newspaper and they have all but filled

the roles required (approximately twenty (20) still to find). The

community’s ability to fill roles depends on the disciplines required.

j) Daily Cost Management rollout Schedule/plan

PSN consider cost management a primary importance on a day to day

basis and that all personnel involved understand what the budget

allocation is for their area and how the budget is compiled, who the

budget owner is and who has access to spend against the set budget.

PSN consider that costs are not separate from any physical task but they

are base business.

PSN ensure that the entire team from senior management to technician

fully understands the cost impact of their day to day duties and how

efficiencies or inefficiencies impact the business.

In the current economic situation it is essential that every dollar spent is

monitored and spent correctly. PSN will promote the use of SAP to

ensure cost management is a daily activity alongside carrying out

maintenance tasks. Cost at work should be treated the same way as

costs at home, a budget is set and owned and daily management takes

place to ensure the facilities running safely and efficiently.

Daily cost tracking will be kept simple and localised allowing those

involved to have ownership of the process, with access to real-time data

(within a 24hr period) ensuring a realistic measure. Key actions will be

assigned and logged ensuring learning’s are captured and implemented.

Daily Cost Meetings key elements:

PSN ensure key team members have the knowledge and contribute to the

following:


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a. Knowledge of budget, spend and deviations

b. Labour, materials and services costs

c. Take interventions where necessary

d. Review performance


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The meeting will cover 5 key areas

1. Review current spend – linking into the Yesterday Today & Tomorrow

(YTT) meetings

2. Cost Intervention – Prevent further spend / discuss potential offset

3. Behavioural change – Explain why

4. Cost Tracker sheet – Assign actions/ track and close/ review daily

5. Waste Elimination – Now we understand what a task costs lets improve

PSN will develop a plan that consists of key activities over an agreed

timeline.

Key activities for the implementation plan

- Engage with the workforce so that they understand the need for

change, it’s no longer business as usual and they all play a key part.

This has been amplified with the current economic market place all

companies are in. Create the pull from the workforce that they

understand and want to improve

- Ensure leadership alignment and support is embedded

- Implement a change management programme which cover key roles

and responsibilities for all involved in the daily meetings

- Training on the tracking tool and SAP reports to support implementing

daily meetings

- Motivate and keep the key members engaged with the importance of

why daily cost management takes place

- Give positive feedback on savings gained

- Ensure all vendor/3rd party costs are being captured by accruals and

entered into SAP

- Ensure all time writing is captured and entered in a frequent basis

- Ensure total ownership is embedded and that it forms part of the daily

activities without external support

k) Continuous Maintenance Improvement

The prime objective of delivering Continuous Maintenance Improvement is

about undertaking tasks and activities to ensure that the current Practices,

People Performance, Plant Equipment and Production Efficiency are

performing at their optimum level with the end goal of operating in the High

Performance Maintenance Zone as indicated in the Maintenance Road Map

in figure 10.2.1, shown overleaf, and any changes that are made have a


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demonstrable benefit to facility safety integrity, availability or operability

targets.


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Figure 10.2.1-Maintenance Road Map

Implementing a Continuous Maintenance Improvement Plan, PSN has in

house tools such as Value Finder which alongside existing clients tools,

focus on reviewing the 4P’s detailed in Figure 10.2.2, shown overleaf, to

assess their current status against industry best practice status.

Follow on action is then to develop a Maintenance Improvement

Plan using known Strategies and Processes which we can supply

through our Operations Delivery Framework or in the case of SIGMA3

use of clients current OE Documentation.


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Figure 10.2.2 – Improvement Loop

The result of using Value Finder with a current client is indicated in Figure

10.2.3, shown overleaf, with the areas that require focus to resolve issues.

Further evidence of PSN involvement to assist a client’s drive in Continuous

Maintenance Improvement has been on the SIGMA3 project. Since 2004

PSN staff have been involved in working with Shell in the creation and

implementation of Maintenance and Integrity improvements, within the

Shell Exploration and Production Technical Team based in Rijswijk on their

TRilogy Journey.

Resulting from this close alliance was the great achievement of the Nelson

and Gannet platform, attaining joint First and Second in Class respectively

for Global Assets Performance. This was driven from closely working with

SHELL and the extensive use of SHELL OE documentation. Further

explained in Table TA - 11.1 shown on page T4/57.


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Figure 10.2.3 - Value Finder Results


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AS-IS Should-be


Figure 10.2.4 - Follow Up Actions

Value Finder

ValueFinder™ is a structured process that will identify both best practice

and gaps in the performance of an operations and maintenance program. It

has been developed by PSN, based on its world wide experience in the

petrochemical industry. The process probes the dominant issues that

underpin the successful and compliant operation of assets and defines the

opportunities for performance improvement. Data is gathered from

research, interviews and analysis of key issues.

Output from the assessment includes recommended actions and an

improvement plan to:

Establish sustainable Operational Excellence;

Create a team culture throughout the organisation

Identify and report performance measures

Comply with legal requirements, corporate policies and contractual

requirements


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Implement reliability and efficiency processes that focus on People and

Plant,

Processes and Production

Manage work through a process of planning and scheduling that is

priority driven

Apply a philosophy and strategies that support the business objectives

Monitor and audit compliance as directed by associated management

systems

Manage activities to ensure safe, healthy working conditions

Implement a process that assures continuous improvement

Through evaluation of the findings gathered by the ValueFinder™

assessment process, PSN can articulate the opportunities and the value of

performance improvement. The ValueFinder™ process provides a means to

identify which opportunities can add value, filter out false perceptions and

determine the actions that will lead to World Class Performance.

Operation Delivery Framework

The Operations Delivery Framework (ODF) is web based and contains the

policies, procedures, processes, guidance documents, tools and forms to

ensure people are equipped to deliver Operations and Maintenance

consistently across all projects.

The seven elements are based on sound principles. Industry experience

and academic sources identify these as fundamental pillars of a successful

operation.

All PSN support functions are incorporated into ODF ensuring complete

coverage of every area required to start up, manage, maintain and develop

Operations and Maintenance excellence.

The ODF is designed to support full facility management to provision of a

single service, the ODF framework provides a flexible structure to ensure

that the right services are used in the right way to continually deliver the

best possible performance as the asset moves through its operational life

cycle from concept through to disposal.

Continuous improvement is assured by constant research, review and

feedback from our worldwide network of resources.


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l) PSN’s approach to training and development

From the outset of a project, training and development is a key priority.

“We nurture local businesses and skills to encourage sustainable

community development”

We recruit and train local people who add to our global network by

bringing their experience, culture and diversity to our business. We are

committed to achieving high local content wherever we operate and take

pride in the ongoing success that can be seen in our people, projects and

the communities where we work. This is supported by our core values.

Training to achieve Localisation

Our strategic approach to skills development is the same across all

projects. At the planning stages we will look at each projects’ specific Tenderer’s Company Name: PSN PRODUCTION SERVICES


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requirements in order to assess any additional or individual needs which

are also to be considered and/or adopted. This provides a consistently

successful approach to localising our workforces. The key steps in our

global programme include:


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1. Assessing the current levels of competence for all employees.

2. Conducting a gap analysis against the set competence standards.

3. The development of an individual training plan for each employee

to meet the standards set.

4. The provision of the training: including both technical and softer

skills training.

5. The implementation of a succession planning programme to act as

the vehicle for ultimately replacing Expatriate employees with local

employees (where appropriate). These are included in the PEP.

m) Based on our experience of training our national workforce at the

Batangas refinery, we have developed an outline plan (see Attachment TA

– 10.3.1 for KP Philippines Training Technician program) which shows the

timeframe for knowledge transfer and the pace of progression through our

training programmes. This timeframe works in tandem with the sample

training plan (see Attachment TA – 10.3.2 Sample - PSN Philippine Training

Matrix 2009) to demonstrate our commitment to developing a local

workforce with sustainable skill sets.

4) With over 13 years experience of managing maintenance activities the

Philippines, PSN has an outstanding track record in sourcing and engaging

teams of skilled maintenance crews. Many of the candidates we identify

have worked for us previously due to our extensive history in the country,

so our use of external manpower companies for identification and supply of

manpower is very limited to only highly specialised skill-sets. Our plan

would be to use existing PSN personnel to fill key roles, whilst

supplementing les senior positions with candidates from the external

labour market.

Sourcing manpower in the Philippines is most frequently undertaken by

close engagement with local communities – the Baranguay’s. We have

well established relationships with the key personnel in many of the

Baranguay’s in Southern Philippines in which there is a proven talent pool

of technicians. Should this not provide enough candidates, then we source

from wider geographical areas and finally can undertake national

advertising campaigns if required. For a recent shutdown in early 2009 we

secured 580 out of 600 people from within the local Baranguay’s, across a

mix of skilled and unskilled trade and supervision disciplines.

Once candidates are identified, they enter our recruitment and

competency selection process. We have a global recruitment process

(HRS-PCM-002) which outlines our high level process across the company,

while locally in the Philippines, we have developed a country specific Tenderer’s Company Name: PSN PRODUCTION SERVICES


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screening, technical assessment and interview process to ensure the right

candidates are selected.

As detailed in the PEP, we will target current recruitment of incumbent

contractor staff to transition into PSN. In parallel however we have

already initiated discussions with the local communities regarding

recruitment for this contract and are gathering CV’s in readiness for award.

5) Please refer to Attachment TA – 10.5 for copies of our Medicard

Healthcare Programme.

6) Please refer to Attachment TA – 10.6 for a copy of our HSE plan.




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TECHNICAL APPENDIX TA-11: PREVIOUS AND CURRENT WORK EXPERIENCE & CAPABILITY

1. List relevant corporate experience in the past ten (10) years involving similar type of brown field engineering and plant integrity restoration services carried out in Philippines or overseas oil & gas industry (preferably for upstream activities). List of your experience shall be in accordance with the TABLE format set below.

2. Evidence of organisational expertise in LEAN or TPM (Total Plant Maintenance) and/or equivalent techniques deployed and lead by the tenderer to optimise maintenance preparation, planning, scheduling, and execution to achieve best in class standards of team performance. Previous case history of driving improvement in client maintenance organization, any mechanisms in place or developed to reinforce positive behaviours and results (if any). Identify who in the tenderer’s organisation is responsible for maintenance business excellence, and provide evidence of previous business improvements led by the tenderer.

3. Evidence of organisational expertise in LEAN/six sigma and/or equivalent techniques deployed and lead by the tenderer to optimise brownfield plant changes to achieve best in class standards of team performance, projects delivered to high standards of safety, right first time, quality and cost (if any). Previous case history of driving improvement in client maintenance organization, any mechanisms in place or developed to reinforce positive behaviours and results (if any). Identify who in the tenderer’s organisation is responsible for project performance business excellence, and provide evidence of previous business improvements led by the tenderer.

4. Demonstrate capability and track record in delivery maintenance and engineering performance excellence in HSSE, Quality, Time and Cost Management (if any).

5. Tenderer shall highlighted and provide detail description/ narrative of current or previous work performed in the Philippines (if any).

PSN Organisation and Experience in LEAN/TPM

The prime objective of maintenance is to carry out work which has a

demonstrable benefit to safety, facility integrity, availability or operability

targets. This is managed by following a robust Work Preparation, Scheduling

and Execution (WPSE) plan.

PSN provides a full range of managed maintenance services to offshore and

onshore facilities, globally, as part of our core business. Work Preparation,

Scheduling and Execution is a key part of what we deliver.

In delivering key Maintenance activities such as LEAN/TPM and a WPSE

plan, PSN has developed a series of services that we would use in

conjunction with the Shell Operational Excellence (OE) process focused on

enhancing SPEX current and future Maintenance requirements through:

Robust management system, processes and procedures (WPSE) that

comply with client corporate standards and local and international legislative

and regulatory requirements

Competent and experienced Maintenance staff, supervisors and

technicians

Robust training programs tailored to SPEX requirements

Long-term strong relationships with OEMs, subcontractors and vendors

Strong focus on cost awareness, cost management to agreed budgets


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Innovative solutions and cost-effective alternatives to challenge

traditional approaches

Integrated Planning

Established Planning/Scheduling Process – 7, 14, 90, 365 days develop

maintenance philosophy documents in line with key business drivers

Asset availability studies (e.g. Value Map, Choke Model, MAROS, RCA,

RCM, etc)

Pocket-sized maintenance guidelines booklet for every technician

Spares strategy based on criticality of equipment, local logistical

infrastructure and storage capacity at specific location.

PSN has used one or a combination of the above services during Numerous

Clients contract terms. These are summarised in Table TA - 11.1 below.

Expanding evidence where PSN has been involved with LEAN/TPM,

optimising maintenance preparation, planning, scheduling, and execution.

Table TA - 11.1 - Summary of current O&M services to Global Clients

MaintenanceSupport

TechnicalSupport

OperationsSupport

FacilitiesManagement

Provider of

Systems / Processes

PSN +Alliance +

Subcontract

PSN Technical +

Alliance

Client +PSN Client +PSN

Clients

PSPCChevronConocoPhillipsShellBPExxonMobilNexen PetroleumWest Australia Water CorpEnergy PartnersStone EnergyMarathonDubai PetroleumEastman / Lonza

ChevronConocoPhillipsShellExxonMobilWest Australia Water Corp.

ChevronNexenOccidentalCairn EnergyTotal

Cairn EnergyOccidentalTotalKNOC

Services Core team resources

OE Coaches Integrated

Planning Campaign

resources Competency

assurance Materials

management Work preparation

and scheduling Fabrication Maintenance

execution

Performance improvement

Start up and commissioning

Project engineering and management

Production support

Technical authority

Maintenance engineering

Training and development

Competency assurance

Performance improvement

Procurement Logistics

Operations and maintenance management

Engineering Modifications Integrity

management Emergency

response


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Equipment repair and overhaul

Functional SupportHSEQ – IT – HR – P&M – F&A – Contracts – Logistics


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3. PSN have used LEAN engineering practices since 2004 ensuring right size

solutions that allow us to focus on appropriate work scopes that add value to

our customer.

Initially we apply our 4D challenge either, deleting, deferring, diminishing

or using different techniques to reduce engineering costs and unnecessary

activity on each work scope.

Once this is complete and we have explored all options available we

categorise the work into one of four tiers:

Tier 1 - A 'like for like' change or maintenance support.

Tier 2 - A straight forward minor enhancement predominately, but

not necessarily only, a single discipline

Tier 3 Work -A major/complex enhancement involving a number of

disciplines

Tier 4 - A significant Asset development involving virtually all

disciplines

This categorisation then allows us to define the right level of work process

and resources appropriate to the level of work required to safely and

successfully deliver the work scope.

Examples where this has made significant savings is captured below

Example 1

A piece of work was originally estimated by a previous incumbent at

$250K, but we have been able to reduce this to $46K through deferment,

using the solutions challenge.

Example 2

A caisson cutting operation would have resulted in a platform shutdown

but we introduced an explosive cutting solution which resulted in a saving

to the client of almost $1million.

To facilitate improvement to project performance and business excellence

we have an Improvement delivery team who work with the business to

improve delivery of our service offerings by capturing best practices and

sharing these across the network.

This team also manages our INSIGHTTM database which is our performance

management database and allows us to benchmark individual projects

delivery.

Communication of Project Changes

Cost, schedule and risk will be managed through the consistent application

of the standard PSN project controls processes. Application of these

processes will ensure that any changes from the original basis of the

estimate are subject to an auditable change control process.


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Each Project, regardless of the quality of the original scope documents,

may experience changes that affect the cost and/or schedule of the

project. Changes will generally fall into two categories.


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A client initiated change - Shell will initiate this type of change for

additions or deletions to and from the baseline scope. Only Shell can

approve this type of change and it must be approved prior to PSN

starting the work. The PSN Job Responsible Person (JRP) will provide a

Project Change Notice (PCN) to Shell for approval.

A PSN Initiated Change - The PSN project engineer must approve the

change before issuing to Shell for approval. Shell must approve the

PSN change request prior to PSN proceeding with the work. The PSN

project engineer will provide a PCN to Shell for approval.

Throughout the Projects execution, revisions or changes to the project

scope will be controlled. No changes will be permitted unless authorized

and the effect upon the budget and schedule has been determined. Where

appropriate, the performance measurement baseline will be adjusted for

approved changes.

Change Management procedure and responsibilities will be minimal using

the PSN procedure “Project Change Control”, PRM-PCM-010.

4. One of our core values is innovation – it clearly states that “We actively

look for better ways of doing things, never satisfied with “good enough”. We

actively measure our project delivery performance through our INSIGHT™

performance database.

INSIGHT™ is our online tracking tool that enables project performance

(including engineering, construction, cost, quality, etc) to be trended

and compared with other projects around the network. A typical

example of the type of data we currently track is shown in Figure 1

below:

Figure 1 – Typical benchmark data from INSIGHT™

Tenderer’s Company Name: PSN PRODUCTION SERVICES


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This enables us to identify different levels of project delivery performance

excellence, opportunities for improvement and share best practice across

the network to achieve more consistent project delivery. Once the data is

reviewed and improvement action taken we then measure the

outputs to demonstrate the improvements gained. For example, using the

analysis of cost information we were able to make a 42% saving in costs in

2008 compared to our 2007 figures for the same project.

Time & Cost - Introduction

PSN has mature systems and processes for the effective management of

time and cost across our global contract portfolio. They were developed

initially for North Sea Hook-up and Commissioning projects and now we use

them across our complete business to manage engineering modifications,

shutdowns, and maintenance services contracts. The following documents

provide an indication of the standard procedures we use to underpin our

capability in effective planning and are an integral part of the PSN

Management System.

Document Number Scope

PRS-PCM-001 Prepare Systems

PRS-PCM-002 Develop Work Breakdown Structure

PRS-GLN-004 Planning and Scheduling

PRS-GLN-005 Cost Management

PRS-GLN-006 Systems, Tools and Processes

PRS-GLN-008 Estimating

OPM-PCM-007 Life Cycle Costing

OPM-GLN-007 Maintenance Planning

PSN proposes the adoption of the appropriate project controls processes

and guidelines from the PSN Management System to support the delivery

of effective time and cost management for the SPEX MESC contract as

follows.

Managing Cost

PSN will work with SPEX to understand your intended work scopes and

develop a contract Work Breakdown Structure (WBS) with you to enable us Tenderer’s Company Name: PSN PRODUCTION SERVICES


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to model these various scopes of work in an integrated manner in order to

define and manage approved cost budgets for agreed elements of work.

PSN’s WBS was selected over its partners systems and implemented in the

Sigma3 JV for work on the Shell UK North Sea Assets.

We typically agree budgets from the cost and manhour estimates which

we develop based on our understanding of the required scope, the level of

definition available, together with the application of our estimating norms

to provide visibility of the anticipated costs and required manhours for the

work.

Managing Time

Our approach to managing time is reflected in our planning processes. We

develop plans and schedules at appropriate levels of detail to reflect the

desired timing of execution and the resources required to successfully

complete the works associated with engineering modifications, shutdowns

and planned maintenance routines and non-routine maintenance activities.

We agree baseline dates for milestones and activities in order to provide

visibility of planned progress achievement for each activity over time.

Monitoring Cost and Schedule Status

Having established budgets and baseline schedules for agreed scopes of

work, we monitor committed costs and actual costs expended together

with actual progress achieved on a periodic basis to provide visibility of

actual versus planned performance in cost and schedule terms throughout

the life of the contract. The monitoring of cost and schedules will be

captured as part of the Daily (YTT) cost management process.

HSSE

Our Management System has demonstrated that it delivers Performance

excellence in the field of HSSE, PSN’s safety culture has enabled us to

consistently maintain high safety standards at locations worldwide. Our

notable milestone HS&E achievements include:

Azerbaijan BP Caspian (Engineering & Construction) 1 million work

hours LTI-free since contract award August 2004

Philippines Shell Tabangao Refinery (Maintenance) LTI-free (Lost

Time Incident) for 12 years (7 million work hours)


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UK Shell Anasuria FPSO (Engineering and Maintenance) 12

years LTI-free (2.3 million work hours) since start up

Bangladesh Cairn Sangu (Operate on behalf of Cairn Energy) 7

million work hours LTI-free (10 years) since contract award

June 1998 and over 3 years TRC-free (Total Recordable

Cases)

Kazakhstan TengizChevrOil Atyrau (Engineering) LTI-free for over

700,000 work hours

USA Occidental of Elk Hills (Operations, Maintenance and

Construction) 1.5 million manhours LTI-free

Cameroon COTCO (ExxonMobil) (General Maintenance and

Services) pipeline support 5 years LTI free

UK Mobil St.Fergus (Maintenance) Gas Terminal over 3

million work hours LTI-free

Canada HMDC Hibernia (Engineering and Construction)

platform LTI-free for 7 years

UK INEOS Fluor Rocksavage Refrigerants Plant Runcorn

(Maintenance and Shutdown support) 12 years LTI-free

USA BP America (Operations and Maintenance) LTI-free and

recordable incident free for 3 years

UK CNR Ninian North (Engineering and Construction) LTI-

free for 1 year including during 2 major shutdowns

Chad EEPCI (Esso) Pipeline (General Maintenance and

Services) 1 year LTI-free (2.8 million work hours)

Canada Petro-Canada Terra Nova FPSO (Engineering and

Construction) LTI-free offshore for over 2 years

5. PSN have been responsible for the Shell Tabango Refinery Operations &

maintenance contract since 1996, the following case study describes the scope

and highlights associated with this contract.

Case Study: Shell Tabangao Refinery, Philippines, Operations &

Maintenance

Project Profile

Client: Pilipinas Shell Petroleum Corporation (PSPC)

Duration of project: 1996 – 2010

Location: Batangas City, Philippines

Assets: Tabangao Refinery, which has a capacity of 110 000 barrels per

day


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Manhours: Between 670 000 and 850,000 per year

PSN people on the project: Approved core

workforce of 358, with additional 150 to 650 people

during major turnarounds

Scope of Services

We are responsible for planning, coordination and

execution of multi-discipline maintenance, shutdowns,

turnarounds, minor Capex and plant changes, scaffold,

insulation, grit blasting and painting.

In 1998, the SGEI refrigerated LPG terminal in Batangas and the Pililla lube

oil refinery in Rizal became part of our scope. The bitumen import facility

was added in 2003, and buildings and grounds maintenance were included

in 2007. We have also undertaken minor project work at the adjacent

Malampaya onshore gas plant.

Challenges

Filipino workers are in great demand globally and so while our turnover of

Senior Staff is low, recruiting replacements at Supervisor level and above

is very difficult.

Maintaining HSE excellence, turnaround planning and execution within

budget on schedule and with zero TRC incidents

PSN’s approach

Our focus on HSE excellence protects our people, our customer’s

reputation, and keeps performance levels high

The Shell Tabangao innovative training facility, SHELTER, receives visits

from PSN people and our customer’s colleagues around the world.

We are continuing to innovate our weekly toolbox meeting by using

interactive games with different safety themes.

In 2006, we ran a pipefitting course for twenty unemployed youths from

the local area; seventeen received on the job training and we hired two. In

2007 we have extended this initiative to include welder training with the

(TESDA) Technical Education and Skills Development Authority, for ten

unemployed underprivileged local youths and a further 10 pipe fitters in

2008.

Achievements

a. 12 years without lost time incident.

b. 8 million man hours without a lost time incident

c. 2 million man hours without a recordable case


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incident

d. 2 years without a Recordable case incident.

e. SPEX Methanol Tower Project


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6. Tenderer to tick the appropriate box below only:-

(i) Have completed brown field minor projects in offshore oil/gas or petrochemical industries.

(ii) Have not carried out any brown field projects in oil/gas or petrochemical industries.

If answer is 3 (i) above, please proceed to question (iii) below:-

(iii) Does any of the project scope of work involve integration between improvement and maintenance of existing facilities? Please tick appropriate box:

Yes – No -

(iv) If answer to 2 (iii) above is “Yes”, please provide the following information:-

(a) Name of project/service contracts, location and indicative value/ range(b) Description of Work performed including number of personnel deployed.(c) The Client Company.(d) Names of Contact Person for each project/service contracts.

See attachment TA-11.6(iv) for details of previous experience




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XX

X


9. Tenderer to tick the appropriate box below only:-

(v) Have completed brown field minor projects in offshore oil/gas or petrochemical industries.

(vi) Have not carried out any brown field projects in oil/gas or petrochemical industries.

If answer is 3 (i) above, please proceed to question (iii) below:-

(vii) Does any of the project scope of work involve integration between improvement and maintenance of existing facilities? Please tick appropriate box:

Yes – No -

(viii) If answer to 2 (iii) above is “Yes”, please provide the following information:-

(a) Name of project/service contracts, location and indicative value/ range(b) Description of Work performed including number of personnel deployed.(c) The Client Company.(d) Names of Contact Person for each project/service contracts.




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TECHNICAL APPENDIX TA-11: PREVIOUS AND CURRENT WORK EXPERIENCE & CAPABILITY (CONT’D)

A. Demonstrated experience and project management capability in providing the required services in a Brownfield environment for Maintenance and Shutdown related works. (Bidder to specify, if any) (e.g. evidence of expertise in LEAN /TPM and/or equivalent techniques deployed to drive maintenance management improvements to high standards of safety, right first time, quality and cost).

Project Client Name & Contact (if any)

Location of project

Type of Projecti.e. Greenfield, Brownfield or others

Year Completed

Total Man-hours & Number of personnel Deployed

Description of the Work/ Services

1.0 PSPC Shell

Contact:

Larry Lumanog

Philippines Brownfield Ongoing

(13 years)

750,000hrs per annum / 360 (plus 250 - 630 extra for turnarounds

Plan, co-ordinate and execute planned and emergency equipment maintenance, routine facilities maintenance, turnarounds and other related works at the Tabangao refinery Batangas

2.0 SIGMA3

JV

(Incl: previous Central Fields Contract)

Shell

Contact:

Anne Hart

North Sea Brownfield Ongoing

(19 years)

900,000hrs per annum / 200 (plus 500+ deployed for turnarounds)

Maintenance support services for the North Sea Central Field (Nelson, Shearwater and Gannet assets), O & M services including:

- Maintenance Management, planning and execution

- Maintenance core crew and campaign team

- Procurement and materials management

- Technical and Admin support/Fabrications services

- Supply of OE Coaches

Since 2004 PSN staff have been involved in the creation and implementation of maintenance and Integrity improvements within the Shell Exploration and Production Technical Team based in Rijswijk.

Using LEAN/6Sigma methodology the work has included: using the DMAIC methodology:


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Location of project


Year Completed



Defining standards – assistance in defining and establishing maintenance standards and integrity frameworks to develop the Maintenance Integrity management System (MIMS)Measurement of Performance – creation of review techniques for measuring performance against benchmarked world standards and leading the participation in Total Reliability reviewsAnalysis – participating in bi-annual Global Network conferences with the aim to identifying global performance gaps and driving forward business improvement processes.Improvements – implemented through participation in the developments of training in line with competency frameworks. PSN staff were involved with drafting competency assessment criteria for Work Preparation Scheduling & Execution and also recruiting coaches and running coaching workshops as part of the Trilogy programme.Control-concept design of SAP based automated reporting of performance indicators (Dashboard) along with control guidance documents.


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Demonstrated experience and project management capability in providing the Operation and Maintenance Services

Project Client Name Location of project

Year Completed



1 Elk Hills Occidental USA Ongoing(11 years)

440,000hrs per annum

Onshore asset management of the Elk Hills onshore gas production facilities, including:Maintenance management, planning and executionO&M core crewProcurement and materials managementTechnical and administrative supportWorkshop and yard servicesFabrication services Production operations and support/logistics Maintenance engineering servicesImplementation of TPM

2 Chad/Cameroon

Exxon Mobil Chad/Cameroon

Ongoing(7 years)

1,555,000hrs per annum

Operations and maintenance support service to the Chad-Cameroon pipeline transportation system, including:Maintenance management, planning and executionMaintenance core crewTraining of National WorkforceProcurement and materials managementTechnical and administrative supportWorkshop and yard servicesFabrication services Production operations and support/logistics Maintenance engineering services


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3 Sangu Cairn Energy Bangladesh Ongoing(13 years)


Sangu Field Facilities Management includingMaintenance management, planning and executionO&M core crewProcurement and materials managementTechnical and administrative supportWorkshop and yard servicesFabrication services Production operations and support / logistics Maintenance engineering services

4 Rong Doi KNOC Vietnam Ongoing(4 years)

80,000hrs per annum

Facilities management of the Rong Doi asset, O&M services including:Maintenance management, planning and executionO&M core crewProcurement and materials managementTechnical and administrative supportWorkshop and yard servicesFabrication services TrainingProduction operations and support/logistics Maintenance engineering services



Location of project

Type of Projecti.e. Greenfield, Brownfield or

Year Completed

Total Man-hours & Number of personnel



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others Deployed

7.0 WAWC Western Australia Water Company

Australia Brownfield Ongoing(12 years)

320,000hrs per annum / 160

Maintenance services for the Western Australia Water Corporation bulk water and waste water metropolitan assets, including:Maintenance management, planning and executionMaintenance core crewProcurement and materials managementTechnical and administrative supportWorkshop and yard servicesFabrication services Maintenance engineering services

8.0 Southern North Sea

ConocoPhillips UK North Sea

Brownfield Ongoing(21 years)


O&M services to Central & Southern North Sea assets (Theddlethorpe Gas Terminal, Jade, Jude, CMS, Viking, LOGGS, satellites), including:

Provision of Ops and Maintenance crew and campaign maintenance teams

Supply chain management Maintenance management and

implementation Maintenance engineering services Production operations and support Technical and admin support Materials Management


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Location of project

Year Completed



9.0 Alba/ Captain/ Erskine

Chevron UK North Sea

Ongoing 406,000hrs per annum

Maintenance management, execution and support services for the Alba, Captain (FPSO) and Erskine assets, including:

Maintenance management, planning and execution

Maintenance core crew and campaign team

Procurement and materials management Technical and admin support Integrity management services Maintenance engineering services Operations Support

B. Demonstrated ability to integrate the application of Client or Third party systems, in a process, which compliments the Clients infrastructure and business requirements. (Bidder to specify, if any)


Location of project

Year Completed



1.0 Sangu Cairn Energy Bangladesh 2008 3,000hrs / 5 Data cleansing and transition support of CMMS from Maximo to Oracle database

2.0Buzzard2 Nexen UK North

SeaOngoing 3,000hrs Hook-up and commissioning Including

development and implementation of interface tool to provide time and manage functionality of SAP CMMS build

3.0Rajasthan Cairn Energy India Ongoing 18,000hrs Import and upgrade of EPC availability

modelling for utilisation in maintenance stategy review and criticality assessments


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C. Demonstrated experience of workflow management in a SAP environment and effectively managing the Work Pack preparation and Schedule Integration from design through execution phases. (Bidder to specify, if any)


Location of project

Year Completed



1.0 SIGMA3JV(incl: previous Central Fields Contract)

Shell UK North Sea Central

Ongoing (19 years)


Mapping of Maintenance Management ProcessMaintenance Philosophy/Strategy DefinitionPreparation of Maintenance programmes Build/implementation of SAP Definition and Management of Integrated Maintenance Planning/Schedule systemsManagement of Change Procedures and Practices

2.0 Obaiyed Shell Egypt 2006 (2 years)

220,000hrs Mapping of Maintenance Management ProcessMaintenance Philosophy/Strategy DefinitionPreparation of Maintenance programmes Build/implementation of SAP Definition and Management of Integrated Maintenance Planning/Schedule systemsManagement of Change Procedures and Practices

3.0 Hibernia HMDC Canada Ongoing(15 years)


Mapping of Maintenance Management ProcessMaintenance Philosophy/Strategy DefinitionPreparation of Maintenance programmes Build/implementation of SAP

4.0 Alba/Captain Chevron UK Ongoing (16 years)


Mapping of Maintenance Management ProcessMaintenance Philosophy / Strategy DefinitionPreparation of Maintenance programmes Build/implementation of SAP Definition and Management of Integrated Maintenance Planning/Schedule systemsManagement of Change Procedures and Practices


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C. Demonstrated experience of workflow management in a SAP environment and effectively managing the Work Pack preparation and Schedule Integration from design through execution phases. (Bidder to specify, if any)


Location of project

Year Completed



5.0 Rajasthan Cairn India Ongoing(2 years)

80,000hrs per annum


6.0 SouthernNorth Sea

ConocoPhillips UK Ongoing(21 years)




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1. MAINTENANCE WORK/ EXPERIENCETECHNICAL APPENDIX TA-11: PREVIOUS AND CURRENT WORK EXPERIENCE & CAPABILITY (CONT’D)

D. Demonstrated understanding of the requirements of the Key Maintenance positions with suitable candidates available to mobilise to Greater Manila Area or Calabarzon location within 60 days of Contract effective date. (Bidder may refer to PEP or previous project experience to demonstrate how this criterion will be met. Bidder response can be in narrative, schedule and/or chart form)

Details can be found in TA - 04 – Tenderers proposed contract management and organisation set up

E. Ability to have a fully functional office established in Greater Manila Area or Calabarzon location within 4 - 8 weeks of Contract effective date. In the event of the Tenderer being successful, this may be inserted into Part 5 – PROVISION BY CONTRACTOR. (Bidder may refer to PEP or previous project experience and demonstrate how this criteria can be met. Bidder response can be in narrative, schedule and/or chart form)

Details are included in TA - 10 – Project Execution Plan

F. The organisational capacity to provide between 250,000 to 350,000 man hours of services annually in accordance with the identified range of resource requirements (Bidder may refer to PEP or previous project experience and demonstrate how this criterion can be met. Bidder response can be in narrative, schedule and/or chart form)

Details are included in TA - 10 – Project Execution Plan

G. Mobilisation Plan demonstrating credible ramp-up of the required capability in the Greater Manila Area or Calabarzon location within 8 - 17 weeks of award. (Bidder may refer to PEP or previous project experience and demonstrate how this criterion can be met. Bidder response can be in narrative, schedule and/or chart form)

Details are included in TA – 07 – Transition / mobilisation plan

H. Tenderer shall provide sample of maintenance execution and engineering procedure / work pack for Brownfield environment and sample shutdown plan.

Maintenance is always executed in accordance with our clients CMMS system. We can provide a demonstration of this during any visit to our offices during the tender phase.

Construction workpack development & Implementation Process – CON-PCM-002 is shown in Attachment TA – 11(h)

Shutdown Plan is shown in Attachment TA – 12.1g


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(A)Demonstrated experience and project management capability in providing the required services in a Brownfield environment for Maintenance and Shutdown related works. (Bidder to specify, if any) (e.g. evidence of expertise in LEAN /TPM and/or equivalent techniques deployed to drive maintenance management improvements to high standards of safety, right first time, quality and cost).

ProjectClient Name & Contact (if any)

Location of project

Type of Projecti.e. Greenfield,

Brownfield or others

Year Completed


Deployed


1.0 /

2.0 /

3.0 /

(B)Demonstrated ability to integrate the application of Client or Third party systems, in a process, which compliments the Clients infrastructure and business requirements. (Bidder to specify, if any)


Location of project

Type of Project i.e. Greenfield, Brownfield

or others

Year Completed

Total Man-hours& Number of personnel

Deployed


1.0 /

2.0 /

3.0 /

(C)Demonstrated experience of workflow management in a SAP environment and effectively managing the Work Pack preparation and Schedule Integration from design through execution phases. (Bidder to specify, if any)


Location of project



Year Completed

Total Man-hours Number of personnel

Deployed


1.0 /

2.0 /

3.0 /

1. MAINTENANCE WORK/ EXPERIENCE


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(D)Demonstrated understanding of the requirements of the Key Maintenance positions with suitable candidates available to mobilise to Greater Manila Area or Calabarzon location within 60 days of Contract effective date. (Bidder may refer to PEP or previous project experience to demonstrate how this criterion will be met. Bidder response can be in narrative, schedule and/or chart form)

(E)Ability to have a fully functional office established in Greater Manila Area or Calabarzon location within 4 - 8 weeks of Contract effective date. In the event of the Tenderer being successful, this may be inserted into Part 5 – PROVISION BY CONTRACTOR. (Bidder may refer to PEP or previous project experience and demonstrate how this criteria can be met. Bidder response can be in narrative, schedule and/or chart form)

(F)The organisational capacity to provide between 250,000 to 350,000 man hours of services annually in accordance with the identified range of resource requirements (Bidder may refer to PEP or previous project experience and demonstrate how this criterion can be met. Bidder response can be in narrative, schedule and/or chart form)

(G)Mobilisation Plan demonstrating credible ramp-up of the required capability in the Greater Manila Area or Calabarzon location within 8 - 17 weeks of award. (Bidder may refer to PEP or previous project experience and demonstrate how this criterion can be met. Bidder response can be in narrative, schedule and/or chart form)

(H) Tenderer shall provide sample of maintenance execution and engineering procedure / work pack for Brownfield environment and sample shutdown plan.

1. MAINTENANCE WORK/ EXPERIENCE (CONT’D)


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2. ENGINEERING SERVICES/ SUPPORT

A. Demonstrated engineering capability and experience in providing the required minor modification services in a Brownfield environment for Maintenance and construction work. (Bidder to specify, if any). (e.g. evidence of expertise in LEAN /TPM and/or equivalent techniques deployed to drive maintenance management improvements to high standards of safety, right first time, quality and cost).


Location of Project


Year CompletedTotal Man-hours & Number of personnel Deployed


1.0 /

2.0 Please refer to Attachment TA – 11.6(iv) for a list of projects /

3.0 /

B. Demonstrated understanding of the requirements of the Key engineering position with suitable candidates available to mobilise to Greater Manila Area or Calabarzon location within 60 days of Contract effective date. (Bidder may refer to PEP or previous project experience to demonstrate how this criterion will be met. Bidder response can be in narrative, schedule and/or chart form)

Details are included in our PEP in TA-10

PSN understands SPEX requirements in general terms for the Technical Improvement Project and for the likely minor modifications from general experience in supporting offshore oil and gas production facilities.No details have, however, been provided in the tender, of these requirements, therefore, PSN have made some assumptions as to the workscope for ongoing engineering support and for the Technical Improvement Project.PSN engineering support strategy is detailed within the tender submission, (shown in TA – 15 support for Corporate HQ) as is our 4-Tier approach to engineering requirements.We are confident our proposed Philippines based team, in conjunction with Shell personnel, will be able to undertake all the tier 1 & 2 scope. Additional resources, however, could be allocated from within the PSN organisation if required, should the tier 1 & 2 be excessive for the resources available in the PSN/SPEX integrated organisation. Mobilisation from Singapore or an alternative network location would be possible but dependant on other planned workload.

(A)Demonstrated engineering capability and experience in providing the required minor modification services in a Brownfield environment for Maintenance and construction work. (Bidder to specify, if any). (e.g. evidence of expertise in LEAN /TPM and/or equivalent techniques deployed to drive maintenance management improvements to high standards of safety, right first time, quality and cost).


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Location of project



Year Completed


Deployed


1.0 /

2.0 /

3.0 /

(B)Demonstrated understanding of the requirements of the Key engineering position with suitable candidates available to mobilise to Greater Manila Area or Calabarzon location within 60 days of Contract effective date. (Bidder may refer to PEP or previous project experience to demonstrate how this criterion will be met. Bidder response can be in narrative, schedule and/or chart form)

(C)Ability to have a fully functional design office established within 4 - 8 weeks of Contract effective date. In the event of the Tenderer being successful, this may be inserted into Part 5 – PROVISION BY CONTRACTOR. Note: bidder shall state location / address of design office. (Bidder may refer to PEP or previous project experience to demonstrate how this criterion will be met. Bidder response can be in narrative, schedule and/or chart form)

(D)The organisational capacity to provide between 8,000 to 35,000 man hours of services annually in accordance with the identified range of resource requirements. (Bidder may refer to PEP or previous project experience to demonstrate how this criterion will be met. Bidder response can be in narrative, schedule and/or chart form)

(E) Does Tenderer have any strategic partnership arrangement for specialist engineering support? (If yes, Bidder to elaborate on the partnership arrangement and provide strategic partnership documentation)

C. Ability to have a fully functional design office established within 4 - 8 weeks of Contract effective date. In the event of the Tenderer being successful, this may be inserted into Part 5 – PROVISION BY CONTRACTOR. Note: bidder shall state location / address of design office. (Bidder may refer to PEP or previous project experience to demonstrate how this criterion will be met. Bidder response can be in narrative, schedule and/or chart


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form)

Details are included in our PEP in TA – 10

PSN Engineering Strategy addresses the design office provision and details where design support can be provided immediately. Our plans for start up of this engineering provision remains our primary proposal with initial support through our working relationship with MES.

D. The organisational capacity to provide between 8,000 to 35,000 man hours of services annually in accordance with the identified range of resource requirements. (Bidder may refer to PEP or previous project experience to demonstrate how this criterion will be met. Bidder response can be in narrative, schedule and/or chart form)

Details are included in our PEP in TA - 10

E. Does Tenderer have any strategic partnership arrangement for specialist engineering support? (If yes, Bidder to elaborate on the partnership arrangement and provide strategic partnership documentation)

Details are included in our PEP in TA - 10


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TECHNICAL APPENDIX TA- 12: TENDERER’S PROJECT MANAGEMENT CAPABILITY

1. The Tenderer shall demonstrate based on previous project experience that it has proven Project Management Capability and can implement Project Management Systems and processes to manage minor projects in the event of award of the contract. Tenderer to submit the following documents/procedures to demonstrate such capability:

- Putting in place the required project management organization - Availability of a pool of resources to execute the identified projects including project management and

trade-skilled resources- Preparation of Roles and responsibilities of personnel in project management roles. - Project reporting systems- Project quality manual- Project HSE plan- Shutdown work management and procedures- Engineering procedures - welding, blasting/painting, hydro testing and construction equipment safety

certification.- Use of project quality plans



Introduction

The project management, engineering and execution of modifications to offshore

and onshore facilities under operating condition has been core to PSN’s business

for over 30 years, during which period we have successfully delivered over 300

million man hours of quality modifications.

Our customer base includes all majors, various National Oil Companies and other

Oil & Gas players in the UK and around the world.

We work closely with our clients to understand the full scope of their

requirements, by fully integrating our Project Management team and systems

with those of the client.

Projects

Specifically we have worked with Shell in the UK since 1977 on major contracts

for the original Brent field modifications and for the Brent LTFD project. We also

provide similar modifications services to SEIC on Sakhalin Island in Eastern

Russia and support for minor modifications at PSPC Tabangao Refinery for 13

years. We have recently been awarded an Engineering Support Contract by Shell

Gabon.

An example of work previously carried out for SPEX is the successful

replacement of the Methanol Tower in November 2005.


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Malampaya Methanol Tower Replacement

Project Scope:

The original Methanol Tower installed on the platform suffered extensive

corrosion such that the whole tower required premature replacement. The

corrosion was internal to the column and was caused by acidic compounds in

hydrocarbons.

PSN Melbourne was requested to provide design and management for:

Load-out of the Methanol Tower from point of fabrication in Kuala Lumpur,

via Port Kalang, Malaysia to Port Batangas, Philippines for offloading from the

cargo vessel M.V. Kamo

Tower transfer from Quayside in Batangas to a safe storage area for the

insulation phase at the Port

Preparation of the SPEX Vessel, Lady Guro, at Port Batangas for the Tower

transfer down to Malampaya Platform

Subsequent lift from the Lady Guro to designated storage area on

Malampaya

Final phase of up-righting the Tower and installation in position on the East-

Side of Malampaya Platform

Transport plan from the fabricator in Malaysia to Malampaya in Phillipines.

Transport Frame suitable for truck mounted and sea fastening to a workboat

Workboat sea fastening arrangement

Specification of lifting equipment

Development of lift plan for road transport.

Development of lift plan for sea transport

Development of lift plan from boat to platform.

Development of lift plan for rotation of the tower on the platform and lift in

position.

Supervision of all above lifts

The PSN scope was completed on 21st of November 2005.

Engineering was carried out by KBR Singapore for the new tower supports, piping

modifications and instrumentation.

Extended Services:

During the provision of the services, a Construction HAZID was required to be

run, utilising specialist services from PSN Melbourne (formerly KBR).

SPEX Client Contact:


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Initial Shell contact was Nathan Roberts. This was then handed over to Paul

Grant for execution.

Client Feedback:

An overall satisfaction rating of 9 out of 10 was given by Nathan Roberts with

comments as below.

Project Management Policies, Processes and Procedures

We employ a range of technologies in all of our modifications projects. These are

centred on our on-line ISO9001 accredited management system (PMS). This

contains all policies, process and procedures we use on every project worldwide.

These are based on experiences and lessons learned from around the world and

can be supplemented with project/customer specific processes.

The index of Project Management policies, processes and procedures is shown

for information, if required, individual documents will be made available to SPEX

during bid evaluation and clarification as requested.


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Project Management PCMs (PRM:PCM)

Handover of Project Information PRM-PCM-033

Project Change Control PRM-PCM-010

Project Queries PRM-PCM-023

Start-up Planning PRM-PCM-032

Work Execution - Tier 1 PRM-PCM-004




https://psn09.psnworld.com/psnms/documents/project_management/PRM_PCM_007_Work_Execution_Tier4.pdf




https://psn09.psnworld.com/psnms/documents/project_management/PRM_PCM_032_StartUp_Planning.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_PCM_023_Project_Queries.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_PCM_010_Project_Change_Control.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_PCM_033_Handover_of_Project_Information.pdf

https://psn09.psnworld.com/psnms/glossary.asp#p


https://psn09.psnworld.com/psnms/documents/misc/PCN_Tool.xls


Project Management Guidelines (PRM:GLN)

Conduct on Kick-off Meetings PRM-GLN-016

Construction, Commissioning, Operations and Maintenance Review PRM-GLN-011

CTR Structures and CTR Preparation PRM-GLN-026

Guidelines for JRP - Tier 1 Projects PRM-GLN-002

Guidelines for JRP - Tier 2 Projects PRM-GLN-003

Guidelines on Project Management for Tier 3 Work PRM-GLN-004

Guidelines on Project Management for Tier 4 Work PRM-GLN-005

Inputs to Estimates PRM-GLN-022

Input to Schedules PRM-GLN-023

Project Close-out PRM-GLN-018

Project Definition Rating Index PRM-GLN-008

Project Execution Plan guidelines PRM-GLN-020

Project Interface Management Plan guidelines PRM-GLN-014

Project Lessons Learned PRM-GLN-010

Project Objectives and Goals PRM-GLN-015

Projects Group Induction Pack PRM-GLN-001

Project Peer Reviews PRM-GLN-009

Project Procurement Plan guidelines PRM-GLN-012

Project Reporting & Project Reports PRM-GLN-017

Project Risk Management Plan guidelines PRM-GLN-013

Review of Standards and Specifications PRM-GLN-024

Right Size Solutions PRM-GLN-006

Scopes of Work PRM-GLN-019

Solutions Challenge PRM-GLN-007

Statement of Requirements PRM-GLN-021


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https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_021_Statement_of_Requirements_Guidelines.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_007_Solutions_Challenge.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_019_Scopes_of_Work_Guidelines.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_006_Right_Size_Solutions.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_024_Review_of_Standards_and_Specifications.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_013_Guidelines_for_Project_Risk_Management_Plans.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_017_Project_Reporting_and_Project_Reports.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_012_Guidelines_for_Project_Procurement_Management_Plans.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_009_Project_Peer_Reviews.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_001_Projects_Group_Induction_Pack.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_015_Project_Objectives_and_Goals.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_010_Lessons_Learned_Guidelines_for_Projects.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_014_Guidelines_for_Project_Interface_Management_plans.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_020_Guidelines_for_Project_Execution_Plans.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_008_Project_Definition_Rating_Index.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_018_Project_Closeout_Guidelines.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_023_Inputs_to_Schedules_Guidelines.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_022_Inputs_to_Estimates_Guidelines.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_005_Guidelines_on_Project_Management_for_Tier4.pdf




https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_026_CTR_Structures_and_CTR_Preparartion.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_011_Construction_Commissioning_Maintenance_Ops_reviews.pdf

https://psn09.psnworld.com/psnms/documents/project_management/PRM_GLN_016_Conduct_of_Kick_Off_Meetings.pdf

https://psn09.psnworld.com/psnms/glossary.asp#g



PSN Business Tools

In conjunction with the PMS a range of industry standard and bespoke

applications and tools are deployed to implement projects depending on size and

complexity. Amongst these, the following major initiatives have added value to

many of our customer’s modifications by helping to accelerate schedules and or

further drive down costs:

Right Sizetm Our Lean solutions suite of processes, procedures and

tools, challenges every aspect of engineering delivery to

provide an appropriate level of solution. This ranges

from Tier 1 ‘like for like’ replacement with simple

sketches and virtual work packs, through larger Tier 2

with minimal documentation and Tiers 3 and 4

(medium/major projects) with more formal l optimised

deliverables.

4D Solutions

Challengetm

All potential work scopes are critically reviewed to try to

Defer, Delete, Dimish scope/work effort or do things

Differently.

ImpActtm Our lessons learned database enabled solution sharing

across our entire global network of projects and

engineering centres.

INSIGHTTM This bespoke tool enables cross project performance

metric comparison and trending to proactively share

best practises across our network.

WPStm PSN’s Work Planning System provides a robust

foundation upon which to base all project work

breakdowns. PSN’s WPS was selected as the tool of

choice by the Sigma 3 partnership in preference to the

equivalent tools from the other partners.

CMStm Our Completions Management System brings together

all the engineering data required from design, through

to completion and operation. Our emphasis on an

integrated philosophy greatly facilitates the timing of

transition from an initial area build approach to more

optimal system completions, which is often too early for

construction and never early enough for commissioning.

OnTracktm Our unique process and tool enables shutdown

management and optimisation to be facilitated. Year on

year we have consistently delivered successful

hutdowns to schedule and within budget, often in

parallel for multiple customers, in the UK and

worldwide.


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OnTracktm VS@PSN is a programme of qualitative and quantitative

techniques, systematically brought together to identify

and deliver problem solving and enhanced value from

projects.

Fundamental to all Value System initiatives is an

understanding of the business or project drivers and an

appreciation of their relative importance. This is the

‘Value System’ Analysis. It provides the basis for

enhanced decision making and risk management.

Numerical modelling is a powerful tool to support

decision making. Typically this may provide insight into:

Project life-cycle costing and NPV economics

Risk based cost-benefit analyses

Risk based cost and schedule estimating

Risk based shutdown planning

Risk based budgeting

Reliability and availability management

Probabilistic investigations

The use of these tools gives PSN Project Managers much greater understanding

of their projects and permit more informed judgements to be made.

The following provides an example of where PSN Value Systems was employed

to solve the problem of identifying the optimal strategy for Making Safe,

Engineering Down and Module, Process and Utilities Separation (MS, ED & MPUS)

for the Brent Decommissioning Project.

Based on the major decision criteria of Platform Safety, the Campaign option was

observed to be dominant. Other significant contributions to the overall highest

scoring for the Campaign strategy are from Stakeholder Preference and

Minimisation of Abandonment Expenditure.


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The final outcome of the analysis is shown as follows:

PSN has been able to expand the use of “Tap Root” root-cause analysis

techniques from predominantly a HSE tool to apply throughout our business. We

have trained 350 PSN employees in Tap Root techniques and have 6 Tap Root

registered trainers. We have used the technique to help solve problems and to

identify opportunities for improvement in our processes and procedures.

In February 2008 we used “Tap Root” to analyse problems we were facing in

making payments to local employees in Sakhalin. Through this innovative

approach to the problem we quickly remedied the local issues and have made a

number of improvements to the process of how we pay our local employees in

overseas locations.

Project Management Organization

To establish the required project management organisation PSN draw on an

extensive experience base following the guidance, processes and procedures

contained within the PSN Management System (PMS). An example of one of the

key processes is Project Start-Up Planning (PRM-PCM-032), shown overleaf as

Figure TA – 12.1a, which defines the activities and responsibilities for individuals,

as PSN start up new assignments, contract or when starting up a new project

from within an existing contract/assignment. At a local management level

Business Managers, Assignment Managers and Project Managers are responsible

for the effective deployment of this process.


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Figure TA – 12.1a Project Start-Up Planning (PRM-PCM-032)


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The Project Start up plan serves as the basis for all PSN Project/Start-up

activities; it requires supplementary activities added by the respective Project

Manager following consultation and liaison with the client.


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Availability of a pool of resources to execute the identified projects

including project management and trade skill resources

PSN has carefully reviewed SPEX requirements for provision of Project

Management and engineering for its Malampaya Asset. Our strategy has been

developed to ensure that PSN deliver the right skills, as and when required, that

will meet key project dates.

Based in Manila there will be a number of support engineers who will be tasked

with responding to day to day problems and issues. They will work with the

designers to provide timely fit for purpose solutions to the immediate

requirements of operations in a Brownfield environment.

It is not our intention to develop a larger engineering support team in Manila.

Our experience has shown that it is not possible to attract and retain the correct

quality of Brownfield oriented staff with a workload that will be both variable in

size, type and uncertainty in timing.

It is therefore our intention to network to our other locations, Singapore,

Melbourne and Aberdeen in order to provide a cost effective service to SPEX. We

will develop an Interface Document for the project which will allow the decision

to be made as to which scopes will be kept in Manila and which will be

transferred to the other offices. The document will be developed to allocate

work to where it can be undertaken to the correct quality at an acceptable cost

and in a timely manner.

The table below highlights the global capacity for 2009 taking due consideration

of secured contracts and forecast pursuits pending.


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Distribution Engineering

At times of peak workload, if required, we have the capacity and proven

processes and controls in place to distribute discrete packages of work across

our global network of engineering centres.

The nucleus of this is a competent qualified team of 60+ personnel within our

Central Engineering Group based in Aberdeen who can provide stand-alone

services and/or cater for peak loading on all of our global projects on a ‘pay as

you use’ basis.

Our people are our business – we treat them with honesty, compassion and

respect. This is one of our company’s seven core values and it comes right after

safety because in our business keeping our people safe has to be the number one

priority. By making staff morale and motivation high priorities too, we provide

the best possible workforce to our customers, which in turn keep our people in

jobs and help us to grow our business.

Our customers need highly skilled people, capable of working in multi-national,

multi-discipline teams, in some of the most challenging environments on the

planet. Our industry has a constant challenge to attract newcomers with

sufficient expertise, in the face of an aging and retiring workforce; and taking

their knowledge with them.

We understand our customers’ concerns because we build relationships around

their businesses and priorities long before we bid for contracts to work with

them. Our execution plans structure regular open communication with our

customers at all levels of the business, to keep us in tune with their changing

needs. We have been working with many of our customers for over two decades

and have shared in the development of their businesses as they have shared in

ours.

Our employment strategy attracts the best people and keeps them, creating a

stable and engaged workforce. We are leaders in our industry at finding good

new people and training them in the skills our industry needs, so safeguarding

the future of our industry and that of our customers.

Preparation of Roles and Responsibilities of personnel in project

management roles

The project team Roles and Responsibilities are prepared around the

fundamental Core Competencies of each member of the team alongside specific

client requirements position. Embedded through the documentation within our

Management System are the guidelines for structuring the Roles and

Responsibilities, the fact that the information is not prescriptive affords the

flexibility to adapt as defined by the specific client and project requirements.


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Project Reporting Systems

The guidance for PSN personnel regarding Project Reporting is contained in PSN

guidance document PRM-GLN-017 Project Reporting and Reports, an extract is

shown below:

It is essential that the Job Responsible Person regularly reports, e.g. monthly, to

the Client and to Assignment / PSN Management on the status of the Work,

issues and concerns, progress, man-hours and costs and the forecasts for same.

It is anticipated that for preliminary / study work and Tier 1, Tier 2 and Tier 3 that

this report will form part of an overall Assignment report.

For Tier 4 work it is anticipated that, in addition to the Assignment report, a

‘stand-alone’ Project report will be prepared.

Assignment Reports shall be prepared and issued in accordance with the

relevant Assignment procedures.

Stand-alone Project Reports shall be prepared in accordance with the

requirements of this procedure and issued in accordance with the relevant

Assignment procedures.

Whilst all monthly Project Reports will be written reports the benefit of regular

face to face reporting to the Client for major Project should not be

underestimated.

In addition it is recommended that during the execution phase of major Projects

weekly progress reports are issued to the Client and to Assignment / PSN

Management.

The achievement of all milestones / targets should be highlighted to all

concerned including the Project Team.

Project reporting is an important element in the total Project Management effort.

Project reports are “upward” indicators to our Clients and to Corporate

Management that the desired project goals are being achieved.

Since Projects and the JRP’s performance are partially judged by these reports,

they must be accurate, concise, timely and easy to read. The reports are the

only project performance information seen by some readers.

On major Projects the Client may request a monthly report in a specific form.

The preparation of this report should not negate the preparation of a standard

Project Report for Assignment / PSN Management.

Monthly reports disseminate project status to the Client and PSN personnel are

distributed in accordance with the Assignment Co-ordination Procedure.


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Project Quality Manual

We have included as an Attachment our Project Quality index to indicate the

content of the current PSN management System (PMS) (Quality Manual), refer to

Attachment TA – 12.1e. The documents, policies, processes and procedures

contained within the PMS will be made available to SPEX during bid evaluation

and clarification as requested.

Project HSE Plan

Our goal at PSN is to sustain an incident free work environment. We believe that

all incidents and work related ill-health are preventable. Every person working

for PSN is responsible and accountable for working in a manner consistent with

this goal. To achieve this we:

Create a positive HS&E culture;

Encourage and support positive intervention;

Understand and manage HS&E risks;

Implement an effective HS&E Management System;

Manage HS&E performance;

Integrate HS&E into business planning.

Our aim is to comply with all applicable legislation and relevant industry

standards. In the absence of such regulatory controls we shall set standards

consistent with this policy.

We are a socially responsible employer. We work with our customers,

contractors, partners and suppliers to improve the efficiency of our operations by

conserving resources, reducing waste and emissions, and preventing

environmental pollution.

We seek sustainable solutions to business needs, balancing environmental,

social and economic considerations by engaging with employees, customers,

partners, suppliers and communities where we work.

The PSN Project HSE Plan will be produced, using the template located in Att-TA-

12.1f, during the project start-up phase in accordance with the following HSEQ

Planning Process (HSQ-PCM-001).


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Shut Down Work Management and Procedures

PSN have an industry-leading record of successfully planned

shutdowns/turnarounds. This is due to the experience and expertise of our

people assisted by our shutdown management system ONTrack™.

ONTrack™ shutdown management system encompasses management,

preparation, execution, and close-out. As it is regularly reviewed and updated, it

gives a clear focus for continuous improvement, without disrupting existing

strengths. Using ONTrack™, our ConocoPhillips teams in the Southern and

Central North Sea, have completed fifteen shutdowns on or ahead of schedule,

over the past three years.

This proprietary shutdown management system has reduced shutdown time on

some contracts by as much as 75%.

Pre-Engineering/ Preparation Plan

The approach taken by PSN prior to undertaking any major shutdown is to

develop a preparation plan. This has been successfully implemented on

numerous turnarounds for all our oil and gas major customers including BP,

Shell, ConocoPhillips and Chevron.

This is a separate plan from the integrated shutdown plan and is specific to the

preparation stage while the integrated shutdown plan is specific to the execution

phase. The purpose of this plan is to identify all of the key dates, activities,

deliverables and milestones in the preparation phase. The shutdown preparation

plan should address the following as a minimum:


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Operations requirements

Key milestones

Shutdown and start up sequences

Maintenance issues/ criteria

Scope package issue dates

Commissioning new equipment

Critical systems

The development of an integrated plan should follow the normal guidelines.

Please see Attachment TA – 12.1g for a sample shutdown plan.

Shutdown Activity Work List

The activity worklist should be discussed, reviewed and agreed. This information

will then be used as the basis for confirmation of the shutdown duration. It is

generally unacceptable at this stage for the shutdown duration to be longer than

previously commercially agreed.

As well as feeding the shutdown integrated plan, the information from the

activity worklist will also be used to form the traffic light tracking register as

detailed later.

Integrated Shutdown Plan

PSN utilise an integrated planning approach and process for the development of

all shutdown plans:

A structured approach to the development of the plan

Co-ordinating an integrated team to develop and refine the plan

Screening and controlling all inputs to the plan

Analysing and understanding the interfaces between each work activity in

the plan

Producing estimates for all work in the shutdown from common norms

Ensuring all work is estimated in the same way

Adding contingency to work activities during the planning process, not the

estimating process

Optimising the resources required to deliver to the plan

Ensuring shared resources are clearly identified and understood

Communicating the plan to all stakeholders in the shutdown

Setting a ‘Freeze’ date for the plan, i.e. stopping further inputs on an agreed

date and enforcing the freeze date.


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The INPUTS-PROCESS-OUTPUTS model, overleaf, shows the ideal flow of

information required to formulate a shutdown integrated plan:

INPUTS PROCESS OUTPUTS

Shutdown Activity

Request Form

Detailed Work scopes

Estimates based on:

- Common Norms

- No Contingency

- Construction sense

check estimate

Key Milestones

Key Project

Information

Key Maintenance

Information

Key Operations

Information

Key Vendor

Information

Screening the

inputs

Co-ordinating an

integrated

approach

Analysing the

interfaces

Contingency

Planning

Critical Path

Analysis

Optimising the

Resources

Identifying shared

resources/support

Communicating the

plan

Enforcing a ‘Freeze’

date.

Robust

Integrated

Shutdown

Plan

When the Integrated Plan has been refined to a robust level in terms of the work

content, the resources and supporting activities can be planned and scheduled

to optimise the manpower and supporting resources and facilities. The

Integrated plan should drive the:

Materials planning

Manpower planning

Transportation schedules

Accommodation planning

Mobilisation / demobilisation planning


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Structuring and Preparing the Work

The PSN process for developing detailed shutdown and pre-shutdown work

scopes is to utilise the work structuring and preparation model as detailed below.

For each workscope in the shutdown, it is normal to identify the necessary pre-

shutdown activities. Depending on the criticality of the shutdown workscopes an

the size of the work scope involved, consideration should be given to packaging

the pre-work in separate workpack using the same mode.

In a shutdown where all the critical work has been packaged in this way, it is

easy to focus on the site preparation work and ensure that it has been

completed prior to the shutdown start date.

Plant De-pressurisation and Isolation

The plant shutdown, TATS (Trip & Alarm Testing), Isolation and Purging must be

planned and challenged in detail at this stage in the integrated planning process

and be detailed step by step within the plan.

In addition, a thorough check of all shutdown critical isolations should be carried

out to ensure the integrity of plant or system isolations. Where doubt exists on

the integrity of any isolation, suitable contingency should be put in place.


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Traditionally crucial shutdown time can be lost during this period and it is

CRITICAL TO THE SHUTDOWN SUCCESS THAT THIS AREA IS MANAGED

EFFICIENTLY.

Engineering Procedures

In the PSN Management system (PSMS) a full range of engineering and

construction procedures are held, an example of the index for Construction and

commissioning is shown below with specific procedures for Blasting/Painting,

Hydro Testing are located in Attachment Att-TA-12.1.h and Construction

Equipment Safety Certification is enclosed within TA – 09, Attachment TA – 9.5

and Welding is located in TA – 16.6, Attachment TA – 16.6(v).

Construction & Commissioning PCMs (CON:PCM)

Bolt Torquing & Tensioning CON-PCM-014

Commissioning ITR's CON-PCM-009

Construction Site Completion & Close-out CON-PCM-020

Construction Site Execution CON-PCM-012

Construction Site Mobilisation & Preparation CON-PCM-001

Construction Workpack Development & Implementation CON-PCM-002

Develop Logical Systems/Areas Breakdown CON-PCM-005

Electronic Completions Management System CON-PCM-011

High / Low Voltage Isolations CON-PCM-017

Identification of Construction Plant & Equipment Requirements & Planning CON-PCM-006

Jobcard Process CON-PCM-003

Mechanical Isolations CON-PCM-018


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https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_018_Mechanical_Isolations.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_003_Jobcard_Process.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_006_Identification_of_Construction_Plant_and_Equipment_requirements_and_Planning.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_017_High_Low_Voltage_Isolations.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_011_Electronic_Completions_Management_System.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_005_Develop_Logical_Systems_Area_Breakdown.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_002_Construction_Workpack_development_and_Implementation.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_001_Construction_Site_Preparation_and_Mobilisation.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_012_Construction_Site_Execution.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_020_Construction_Site_Completions_and_Close_Out.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_009_Commissioning_ITRs.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_014_Bolt_Torquing_and_Tensioning.pdf


https://psn09.psnworld.com/psnms/glossary.asp#c


Mechanical Completions CON-PCM-019

Pre-Commissioning & Commissioning Procedure CON-PCM-016

Preparation & Approval of Method Statements CON-PCM-008

Pressure Leak Testing CON-PCM-015

Project Constructability Planning CON-PCM-004

Punchlist CON-PCM-010

Site Fabrication & Erection CON-PCM-013

System Completion, Acceptance, Handover & Start-up Support CON-PCM-022

Welding Control CON-PCM-007

Welding Procedure Development & Control CON-PCM-021


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https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_021_Welding_Procedure_Development_and_Control.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_007_Welding_Control.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_022_System_Completion_Acceptance_Handover_and_Start_Up_Support.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_013_Site_Fabrication_and_Erection.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_010_Punchlists.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_004_Project_Constructability_Plan.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_015_Pressure_Leak_Testing.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_008_Preparation_and_Approval_of_Method_Statements.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_016_Pre_commissioning_and_Commissioning_Procedures.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_PCM_019_Mechanical_Completions.pdf


Construction & Commissioning Procedures (CON:PRC)

Civils Works Procedure CON-PRC-001

Construction & Commissioning Manuals (CON:MAN)

Completions and Commissioning Manual CON-MAN-001

CMS User Manual CON-MAN-004

Hook-up & Preparation Manual CON-MAN-002

Supervisors Manual CON-MAN-003

Use of Project Quality Plan

The purpose of the PSN Project Quality Plan, the template for which can be found

in TA – 16, Attachment TA-16.2, is to describe how Production Services Network

satisfies both ISO 9001:2000 standards for Quality Management Systems (QMS)

and contractual requirements for any particular project.

This Quality Plan identifies the Management System (MS), the organisational

policies, activities, responsibilities, interfaces and performance management

implemented for the contract to assure the necessary quality requirements and

objectives are satisfactorily achieved. Maximising the use of the Production

Services Network Management System (PSMS) complimented by client standards

to comply with the contractual requirements relating to the scope of work

activities, the document will inform all personnel in the project management

organisation, processes, work methods and responsibilities applicable to the

project, and will form the basis for the internal quality audit programme /

schedule.

The Quality Plan is produced in accordance with the HSEQ Planning process map.

Scope

This quality plan covers the full scope of the project/contract, and will be subject

to periodic review, and where appropriate updated, to ensure that each

superseding stage is properly addressed.

Implementation of this quality plan will be achieved by:-


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https://psn09.psnworld.com/psnms/documents/construction/CON_MAN_003_Supervisors_Manual.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_MAN_002_HookUp_Preparation_Strategy_Manual.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_MAN_004_CMS_User_Manual.pdf

https://psn09.psnworld.com/psnms/documents/construction/CON_MAN_001_Completions_and_Commissioning_Manual.pdf

https://psn09.psnworld.com/psnms/glossary.asp#m


https://psn09.psnworld.com/psnms/documents/construction/CON_PRC_001_Civils_Work_Procedure.pdf




Systematic and responsive reporting, disposition and tracking of

preventative, corrective and improvement actions to ensure the continued

effectiveness of the PSN Management System;

Demonstrating clear understanding of the critical success factors and key

performance indicators and how these relate to the execution of the work

scope;


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Implementation of robust monitoring and measuring systems and controls to

ensure KPI delivery;

Establishment, communication and training of the PSN Management System

with responsibilities and controls appropriate to activities throughout all

phases of the project lifecycle;

Effective ongoing quality planning and anticipating activities as they

develop;

Timely completion and compilation of all quality records and verification data

associated with the implementation and monitoring of work scope.

Implementation of an audit and assessment programme based upon

criticality assessment of activities throughout the project lifecycle.

Communication and training to key management team personnel of this

Quality Plan;

A suitable Management Review programme at appropriate stages




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TECHNICAL APPENDIX TA- 13: TENDERER’S PROJECT PLANNING CAPABILITY

1. The Tenderer shall demonstrate evidence that it has effective Project Planning Capability in the event of award of the contract. Tenderer shall provide the following to demonstrate these capabilities:

(1) Planning Methodology

Tenderer to propose effective planning methodologies encompassing planning in both routine Maintenance and Shutdown work clearly specifying requirements in terms of work packaging, CTR preparation, integration of full work programs, critical path scheduling, resource histograms, optimization and reporting.

(2) Project Planning Tools

Tenderer to tick the appropriate box below:

(a) An active user of some software planning tool.

(b) Not an active user of any software planning tool.

If answer is (a) above, please specify planning tools used (Example: The software perform functions similar to/like PERT, CPM and S-Curve).

____________________________________________________________________

(c ) To specify which software planning tool/s it proposes to provide and use in the event of the Tenderer’s bid being accepted.

____________________________________________________________________

(3) Planning Resources

Tenderer must have access to planning expertise and resources from its Head Office. Tenderer to show evidence of access by submitting CVs of personnel from its Head Office that are responsible for and actively involved in planning.

(4) Interface between different Planning Tools

Tenderer to elaborate on previous experience in term of interfacing between different planning tools e.g. primavera with COMPANY’s SAP or CMMS system (if any).

1) Planning Methodology

Introduction

PSN has mature systems and processes for the effective delivery of planning and

control in various types of contract scope. We use them across our complete

business to manage engineering modifications, shutdowns, and maintenance

services contracts worldwide.

Table TA13.1 overleaf provides an indication of the standard procedures we use

to underpin our capability in effective planning and are an integral part of the

PSN Management System.


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Table TA13.1 – PSN Management System Planning Processes

Document Number Scope

PRS-PCM-001 Prepare Systems

PRS-PCM-002 Develop Work Breakdown Structure

PRS-GLN-004 Planning and Scheduling

PRS-GLN-006 Systems, Tools and Processes

PRS-PCM-005 PM Year Planning

PRS-PCM-006 90 Day Planning Cycle

PRS-PCM-007 Year Plan Process

PRS-PCM-008 Non-Routine Scheduling

PRS-PCM-009 Prepare Schedule

PRS-PCM-004 Progress Schedule

ENG-PCM-001 CTR Preparation

CON-PCM-003 Jobcard Preparation

CON-PCM-002 Workpack Preparation and

Implementation

PSN proposes the adoption of the appropriate planning and project controls

processes from the PSN Management System to deliver effective planning for the

SPEX MESC contract.

PSN will work with SPEX to understand the intended work scopes and develop

appropriate plans and schedules at appropriate levels of detail to reflect the

desired timing of execution and the resources required to successfully complete

the works. This will include maintenance activities; routine and non-routine

engineering modifications, shutdowns activities. We will develop a contract Work

Breakdown Structure (WBS) with SPEX to enable PSN to model these various

scopes of work in an integrated manner.

Integrated Asset Planning

We will implement an integrated asset planning service such that there is one

plan covering all required activities irrespective of where the work emanates

from. Contributors to the planning process will include SPEX, PSN and SPEX’s

other contractors/functions such as drilling, sub-sea, well engineering and

suchlike. The process and the supporting systems are described in Figure

TA13.2 overleaf.


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Figure TA13.2 – Integrated Rolling Plan

We will manage planning information within the context of a rolling plan, as

illustrated in Figure TA13.2 above. At its highest level, this plan will reflect the

SPEX long term field plan. As detail becomes available over time, we develop

the plan in progressively more detail such that its earliest parts are defined at

work execution level (job cards, plus Routine and Non-routine Work Orders) but

always within the single plan structure.

The information from this process is available for each user at the appropriate

level of detail depending on whether he is concerned with Year Plan, 90-day, 28-

day or 14/7-day detail.


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Single Integrated Live Plan

One single integrated live plan, covering all areas of work, which is owned and

maintained by all users, ensures best performance. Data sharing gives the

benefit of access and visibility both onshore and offshore, and reduced costs are

attained through no duplication of plans or processes.

It is preferable if each of the contributing areas maintains their own part of the

plan. The plan is progressed and updated weekly, such that asset-specific work

scopes are scheduled to optimise resources and to ensure equipment and

material availability.

The contributors to managing the plan are illustrated as shown in Figure TA -

13.3 below:

Figure TA – 13.3 Integrated Planning

We will develop this process with SPEX as we progress through transition by

focusing on the following:

Establishing the current planning situation with respect to OGP and SWP

Maintain focus on existing plans


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Arranging and achieving data transfers from existing systems where

required. This data will relate to CTRs and job cards, estimated hours,

progress percentage complete and expended hours

Maintaining continuity of service in the first instance

Identify future activities to populate integrated plans

Determine resource constraints/clashes and conflicts between assets

Establish reporting format, content, level and frequency

Establishing a review of the planning across the assets to identify existing

processes

Developing and promote best practices

Establishing a programme for the implementation of the integrated planning

service as described in the implementation plan

Asset Specific Planning for Modifications and Turnarounds

Modifications Planning

We will develop multi-level plans for Modifications and will agree the levels

of detail required for effective planning and control, and the frequency of

reporting to provide visibility of performance.

We will develop Cost Time Resource (CTR’s) sheets for all engineering scope

and we will develop workpacks and jobcards for all construction work

associated with modifications and their implementation. Each CTR will

record details of the scope of work, deliverables, assumptions, and inputs

required to commence the work together with an estimate of the manhours

required to complete the work.

Each CTR and jobcard will have an associated activity in the level-3 schedule

which will be updated with progress at agreed intervals. We suggest a

weekly progress update for modifications and turnaround works with daily

progress updates and reporting during turnaround periods.

Turnaround Planning

Turnaround (TAR) Planning will be undertaken utilising the same process of

integrating workscopes from contributing departments and sub-contractors. TAR

Plans will reflect the appropriate level of detail and activity durations to provide

the ability to schedule in hours rather than days and to provide daily schedule

updates and reporting.

The TAR plan will be executed as an integral part of the PSN Shutdown

Management System. The Shutdown/Overhaul schedules will be sequenced


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according to the scope of work with special attention paid to the following

phases:

Isolation

Hot Work Windows

Reinstatement Testing

De-Isolation/Start-up

We use the integrated plan to set and manage dates for:

Anticipated or planned dates for turnarounds

Associated Interface needs, e.g. drilling derricks repositioned; crane barges,

etc.

General level of activity and bedding requirements or availability

Maintenance

We will work with SPEX to understand the maintenance strategy and develop

and agree interface process to extract the required data from the Work

Orders / Planned Maintenance Routines (PMR’s) in the SAP PM Module in

order to develop an accurate annual Planned Maintenance Schedule.

From the annual plan we propose the development of a 90-day Lookahead

(90dLAH) schedule on a monthly basis in order to provide more detailed

visibility of the PMR’s due for implementation and their associated

materials, equipment, and specialist service requirements. The 90dLAH

schedule will be the basis of regular discussions between planning and

the operations and maintenance teams to agree the detailed priorities and key

requirements for the next period.

We also suggest the development of a more detailed 14-day Lookahead

(14dLAH) schedule on a weekly basis to provide the actual work lists for the

next 14 day period to the maintenance core team.

We suggest the adoption of a weekly progress update cycle for maintenance

related activities to enable updating of the plan, the analyses of performance

against the plan, the trending of maintenance compliance and key

measures, which helps with the analysis of capacity of implementation

opportunities and deferments.

This will support the SPEX Work Preparation and Scheduling process which

forms part of the Shell Operational Excellence Model.

Critical Path Scheduling

We will develop project schedules reflecting all the works in our planning and

scheduling software, Primavera. The schedule network will reflect the


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appropriate logic dependencies and sequences associated with the works to

enable the effective time analysis and resource allocation for the scope, to meet

key project dates.


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Resource Planning and Optimisation

We will produce resource histograms from this data to provide visibility of

forward looking resource requirements by engineering discipline, and

construction and maintenance trades.

Effective use of coding attributes of CTR’s jobcards and planning activities will

enable the production of manpower histograms by various splits, e.g. personnel

categories, disciplines, trades, project phases, areas, systems and sub-systems.

We will carry out resource scheduling of the planned scopes aligned to the

bedding availability and open work faces in order to produce a reasonably stable

crew mix. The intention is to schedule work for the crew consistent with

optimising productivity by developing and using platform schedules for both

routine and non-routine activities which will help drive maintenance compliance

figures and asset reliability.

Each jobcard will carry its own MTO which will enable accurate analysis of

materials requirements based on the schedule and the establishment of material

required by dates which reflect the jobcard’s parent Primavera P3 activity. This

will further enable effective analysis of materials availability/stock status and

allocation of material to jobcards in accordance with the schedule. We will use

this data to drive picking, bagging, and shipping of materials to suit the schedule

thereby increasing efficiency in the use of limited worksite storage and / or

craneage capacity.

Process Improvement

Figure TA13.4 overleaf illustrates the work flow whereby PSN’s planning process

provides the ability to analyze and improve decision making, to refine activities

for optimal schedule and project execution performance.

Figure TA13.4 – Process Improvement Loop


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Reporting

Our systems provide a flexible reporting capability to produce a variety of

standard summary and detail reports for all stakeholders at all levels of the

contract WBS. These reports will provide an indication of workscope progress,

manhour expenditure, performance and productivity analysis, schedule variance

analysis and forecasts at completion. Typically they will comprise:

Level one, two and three reports in the form of progressed bar charts (Gantt

charts), S-curves, histograms and tabular reports

Level four tabular reports providing a comprehensive analysis of the scope of

work in a selection of summaries covering quantity of work, progress and

productivity, expended hours

A Series of ad-hoc reports for various analytical requirements, e.g. the

accurate analysis of maintenance compliance statistics and backlog trends

and forecasts.

2) Project Planning Tools

We support delivery of the above by use of our standard planning and control

software tools

PSN Oracle

Primavera

PSN Work Planning System (WPS)

Time.web

PSN Oracle - Including the Oracle Projects Module providing cost control and

client invoicing based on the contract work breakdown structure (WBS) and cost

activities. The WBS for the agreed scopes of work are modelled in Oracle and

carried forward into the following related systems.

Primavera - is an industry standard third party supplied application from

Primavera Inc. It is the standard planning and scheduling package in use across

PSN. It is used to generate the project plan; with reference to the project

WBS from Oracle, and breaking this down into further detailed activities

where appropriate.

Project work calendars and resource availability profiles are developed within

Primavera and durations and dependent logic are applied to work activities.

Primavera uses Critical Path Analysis (CPA) to determine overall project duration

based on logic, durations and resources required to complete the work.


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The resultant project plans can be displayed in a variety of formats including:

CPA (or Logic Network)

Bar-charts or Gantt Charts

Manpower and Man-hour Histograms

Activity Listings

S-Curves of Planned Progress and Planned Man-hour Expenditure

PSN Work Planning System (WPS) – This is a bespoke PSN system that

controls information at level four detail, i.e. CTRs and jobcards. The WPS

application directly links to Primavera, and this combination provides an

extensive reporting function for both tabular and graphical output. A sub-

module manages the materials requirements associated with the jobcards.

PSN’s WPS was selected as ‘best in class’ amongst the Sigma3 partners for use

as the single shared work planning system to support Shell’s North Sea assets.

Time.web – This is a bespoke PSN labour time writing system that caters for all

labour types and provides input to the planning systems and to Oracle cost

control and invoicing processes.

3) Planning Resources

Planning is a key function within PSN’s Project Services organisation. We

presently have approximately 55 people employed in the planning function

based out of our Aberdeen headquarters, with a further 10 in our Melbourne

office. In addition we have key planning people assigned to other project offices

across the globe. Everyone in the PSN network has access to peers on other

contracts and in other locations.

4) Interfacing between different Planning Tools

Client Interfaces

Generally the interface requirements between the above systems are already

defined and available but any contract specific need can be considered.

Frequently interfaces between PSN systems and Clients systems are provided to

facilitate contract requirements or processes.

For SPEX MESC we will define an interface format to extract data from your SAP

PM module to populate Primavera P3 with the necessary maintenance schedule

information. We will refresh this periodically to ensure that the maintenance

section of the integrated plan reflects the current data residing in your

maintenance management system.


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We have significant experience of working with clients who use SAP PM as their

Computerised Maintenance Management System (CMMS). Currently we work in

Aberdeen with Shell, Chevron and ExxonMobil who all use SAP.

Indeed PSN were significant users of SAP from 1999 as its primary business

control tool until we migrated to Oracle E-Business suite in 2006.

Interfacing of Systems

The diagram presented in Figure TA13.5 overleaf represents the interfaces

provided between the above applications to achieve this integrated cost and

planning process:

Figure TA13.5 – Project Controls Interfaces

Summary

PSN has the systems, procedures and experience in place to deliver effective

work preparation and management through robust planning and control. The

process enables accurate scope identification, progress reporting, forecasting

and schedule lookaheads across various time horizons. We have the facility to

monitor change and identify potential project difficulties. We can readily develop

‘what-if scenarios’ to help mitigate any potential difficulties. These systems and

processes have been successfully implemented on various contracts throughout

PSN’s business portfolio including:

ConocoPhillips SNS Brownfield ModificationsTenderer’s Company Name: PSN PRODUCTION SERVICES


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BP Engineering, Modifications & Maintenance Services

Chevron Operations & Maintenance Services

ExxonMobil Engineering & Construction

Nexen Operations & Maintenance Services

Hibernia Engineering & Construction Services, Canada

PetroCanada Terra Nova Engineering & Construction Services, Canada

Esso Bass Strait Retrofit Modifications, Australia

TCO Engineering Kazakhstan




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TECHNICAL APPENDIX TA-14: PROPOSED SUBCONTRACTORS (IF ANY)

1. The terms and conditions under DOCUMENT C - PART 2, Clauses 35.0 shall apply.

2. The Tenderer will clearly indicate in the bid which part(s) of the scope of services is planned to be subcontracted to another party (either in part or wholly). The commercial arrangements (excluding price) shall be made known to the COMPANY.

3. The Tenderer shall provide sufficient details of its proposed subcontractor(s) to enable COMPANY to make a full assessment of their capabilities.

4. The Tenderer shall provide the name and designation of the personnel and narration of the activities carried out by the Tenderer to manage the Subcontractors.

5. All Subcontractors’ personnel shall be shown in the organisation under TA-4.

6. The Tenderer shall demonstrate that it has managed subcontractor(s) and has the necessary capability in these areas. Tenderer to submit the following documents as evidence of its capability:

a). Evaluation and selection processes/procedures for subcontractor(s)

b). Process/procedures for Managing HSE with subcontractor

c). Process/procedures for reviewing subcontractor’s capability and performance after completion of work/contract

d). Tenderer general policy on sub-contractors management.

1. This is confirmed

2. Please see Subcontracts Table, in Attachment TA-14.2

3. PSN Proposed Subcontractors

We have undertaken a prequalification exercise with all subcontractors identified

within Attachment TA14-2. As part of the prequalification exercise we asked each

company to complete a detailed questionnaire covering HSE management

systems, policies and organisation, quality management, policies and competence

assurance, capability and experience listings, financial status and other general

company and location information. This information will be evaluated to ensure

HSE & Q compliance with PSN standards, technical capability and financial stability

for all companies who we intend to subcontract work to, prior to any contract

award.

4. Subcontract Management

Based on the subcontracting requirements, PSN will recommend a Senior

Subcontracts Administrator to complete the overall subcontract strategy

development and the subsequent tender, evaluation and award activities. The

initial strategy development and pre-award activities should take place in the

Philippines by the Contracts Administrator and support can be provided from other

Contracts personnel as and when needed.


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Once the subcontracts have been placed it is anticipated that a Contracts

Administrator will carry out all the post award management and administration

including any new subcontract requirements. This can be performed in country

with ad hoc support provided as required.

PSN will use our Contracts personnel to administer COMPANY subcontracts in line

with COMPANY requirements including day to day administration and

management using the SAP system.

5. Please see Organisation Chart, in TA - 04 and Proposed Subcontractors Table

in Attachment TA-14.2.

6. a) Evaluation and Selection Processes/Procedures for

Subcontractors

Pre-award evaluation and eventual selection of subcontractors is a rigorous

process to ensure the service is delivered to the highest standards by a competent

and professional company. We use our Approved Supplier Register (ASR), as

shown in Figure TA-14.6a, to evaluate and approve subcontractors or suppliers for

use within PSN. Our ASR is a database of all PSN subcontractors and supplier.

Prior to inclusion in the ASR the subcontractor must be fully evaluated by our

technical teams, HSEQ department and finally approved by our Contracts or

Procurement Manager. The ASR evaluation process consists of a detailed

questionnaire, as shown in Attachment TA-14.6a, and audit covering; HSE, quality,

management system, capability, previous experience, capacity, Dunn and

Bradstreet solvency check and Denied Parties and Sanctioned Countries (barred

companies).

The ASR has the ability to hold a great deal of information on each company

including general address and contact information, ISO certification, insurance

expiry, PSN audits and other PSN project feedback and is available via the internet

to PSN employees.

Figure TA-14.6a – Approved Supplier Register (ASR)


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b) Managing HSE with Subcontractors

With Health and Safety being our number one priority, we employ a number of

methods to manage subcontractor HSE performance. These various approaches

are collated into a HSE Management of Subcontractors policy document and are

summarised below;

Goal Zero Philosophy : We are fully aware of and committed to the Shell Goal

Zero Philosophy and understand subcontractors management is identified as

a Must Win within Shell globally. The items below illustrate how we manage

subcontractor HSE performance and to further enhance this we will:

- Ensure Road Transportation Plans are in place with all relevant

subcontractors.

- Require subcontractors to fully commit to using appropriate, approved

and documented processes and procedures to perform their work at the

worksite, these will be referenced and agreed in the Subcontract

Management Plan.

- Agree consequences for violations of the agreed procedures, these may

be removal of personnel, fines or a reduction on KPI award.

Subcontract Management Plans (with key subcontractors): Includes; HSE

expectations, key risks and mitigating actions, agreed targets, reporting

requirements, feedback process and overall subcontract philosophy and

service drivers. Combines various important items into one agreed

document so all are agreed and understood early in the relationship.

Subcontract Focal Point: PSN and the subcontractor nominate an individual

to be responsible for the overall delivery of the service. These Focal Points

are in regular contact to build an open relationship to allow the other

activities to flow smoothly and for information to be shared regularly through

formal meetings and ongoing correspondence and conversations. These

individuals provide consistency and build a thorough knowledge of the

service throughout the period of delivery.

Regular Meetings: Provides a formal session to discuss HSE performance

and expectations along with other operational and commercial items.

Meetings have an agreed agenda with HSE as the first item.

HSE Interface Document (with key subcontractors): This is used in addition

to the Subcontract Management Plan and outlines the HSE philosophy &

expectations, incident reporting requirements, emergency response

arrangements and competency standards. A sample interface document has

been included in Attachment TA – 14.6b.1

Audits: Subcontractor audits are performed by our subcontracts team with

support from HSEQ and technical personnel as appropriate. The format of

each audit is based on our formal scoring matrix, as shown in Attachment

TA-14.6b.2, which includes a section on HSEQ performance, service quality

and competency of personnel. This process ensures subcontractors are Tenderer’s Company Name: PSN PRODUCTION SERVICES


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complying with PSN and our clients standards and performance is of the

highest standard.

Key Performance Indicators (for key subcontracts): Where appropriate we

can incentive subcontractors to deliver on their HSEQ expectations by using

KPI’s. There are various KPI methods from risk and reward, through

scorecards and bonuses. We have extensive experience in managing and

working under various incentive schemes and these can be tailored to each

service.

c) Review of Subcontractors Capability and Performance

Subcontractor performance and capability is reviewed and managed throughout

the course of the work being performed. Any issues in these areas would be

addressed at the regular meetings or if necessary at a one off meeting arranged

to tackle the specific problem. Subcontractors are fully evaluated prior to work

being awarded and any new vendors are paid particular attention to ensure no

problems arise.

Following completion of work by a subcontractor, the PSN technical focal point will

confirm they are happy with the work which has been performed by authorising

payment of the invoice and eventually the final account certificate. The

experience of the PSN technical focal point allows them to evaluate the

performance and confirm it meets the agreed scope.

d) PSN Policy on Subcontractors Management

PSN has a global suite of policies, codes of practice and procedures for the

execution of subcontract works. These processes cover all aspects of

subcontracts management from tender and evaluation, through post award

administration to close out. Specific modifications will be made, where

appropriate, to tailor the procedures to support the individual requirements of

each of our projects or locations.

Processes and procedures are contained in the PSN Management System,

accessed via our intranet and are contained within our response to TA 16 –

Proposed Quality Assurance/Control Plan. We train our personnel in the use of

these policies and procedures ensuring a consistent approach, using tried and

tested methods. The process maps outlining the subcontracts process are listed

overleaf:


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Subcontract – Preparation of BiddersPSN-CTS-PCM-

003

Subcontract – Bid EvaluationPSN-CTS-PCM-

004

Subcontract – Formal AwardPSN-CTS-PCM-

005

Subcontract – Requisition & Call OffPSN-CTS-PCM-

006

Subcontract – Request for QuotationPSN-CTS-PCM-

007

Subcontract – Back chargesPSN-CTS-PCM-

008

Subcontract – Processing Claims PSN-CTS-PCM-

009

Subcontract – AdministrationPSN-CTS-PCM-

010

Subcontract – Close Out Management PSN-CTS-PCM-

011

Subcontract – Performance &

Management

Under Review

PSN




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TECHNICAL APPENDIX TA- 15: TENDERER’S SUPPORT FROM CORPORATE HEAD QUARTERS

1. To ensure successful and smooth execution of the contract in the event of the Tenderer's bid being accepted, Tenderer must have strong support from its Head Office organisation. The following documents should be submitted as evidence for the strong support:

(a) Corporate or regional HQ address/ location.

(b) Corporate Business Profile and Organisation chart.

(c) Corporate HSE Management System.

(d) Corporate HR system & support

(e) Corporate training and development programme (documentation demonstrating regular review, training record of individuals, training policy and program, performance appraisal process with clear evidence)

(f) Corporate QM System, e.g. in compliance with ISO 9002 or equivalent, which include but not limited to the following procedures:

Quality System Documentation Training and upskilling Supplier Evaluation Purchasing Procedures Internal Quality Control Inspection and Test Procedures

(g) Existing corporate materials procurement organization (if any)

(h) Engineering capability including access to specialist engineering

2. The Tenderer shall enter its company name and chop and sign each page of this Appendix.

3. THIS APPENDIX SHALL BE INCLUDED IN THE TECHNICAL PROPOSAL ONLY.

(a) Corporate or Regional HQ Address/Location

PSN Global Headquarters

Production Services Network

Wellheads Place

Wellheads Industrial Estate

Dyce

Aberdeen

AB21 7GB

United Kingdom

Telephone No. +44 (0) 1224 777777

Fax No. +44 (0) 1224 777731


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PSN Asia Pacific

Production Services Network

200 Cantonment Road

04-03/04 Southpoint

Singapore 089763

Telephone No. +65 6501 0160

Fax No. +65 6220 5360

Contacts: Mr Alan Gordon

Operations Director, Asia Pacific.

Mr Wong Sing Sing

Business Development Director, Asia Pacific

(b) PSN Profile and Organisation Charts

Production Services Network (PSN) has provided services to the oil and gas

industry for over 30 years. Our scope of service provision covers project

management, engineering, construction, hook up, commissioning, facilities and

production management, operations and maintenance, to the oil, gas and process

industries. PSN currently provides these services through almost 8,000 personnel,

from 57 nationalities, working in most of the world’s major oil and gas basins.

PSN has a strong and diverse customer base, with long-term low-risk contracted

revenues and a strategy of developing the business and support network further.


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(i) - Corporate Organisation Chart

The management team consists of experienced directors that has led the

company to new levels of performance, and continue to grow the business as a

major international service contractor.


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Bob KeillerCEO Dean Hunter

HR Director

Peter BrownUK Ops Director

Bill NicholsonCommercial Director

John KearneyTechnical Director

Ali GreenBD Director

Duncan SkinnerCFO

Jerome LynchInternational Ops Director

Zeffrey LucasAmericas Ops Director


HR Director





Duncan SkinnerCFO




The operational directors have full profit and loss accountability for all projects

and contracts executed in the geographic area that they cover. They are

supported by the functions in a matrix organisation.

(ii) - International Operations Organisation Chart


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(iii) - Asia Pacific Organisation Chart

(c) Corporate HSE Management System

PSN has a comprehensive HSE management System that clearly sets out the

company’s expectations with respect to ensuring that ‘no-one gets hurt’. Our HSE

system is fully described in our response to SPEX HSE Capability questionnaire

(TA-21).

(d) Corporate HR System and Support

People are at the heart of our business, and are one of our core values; as such

we place great importance on having the right HR systems and support.

Human resources within PSN is now a global network of over 90 people; engaging

HR generalist practitioners and specialists in the areas of resourcing, employee

relations, training and development and employee reward. Most of our team are

chartered degree qualified professionals within PSN HR at all levels of

management.

We have a clear longer term HR strategy in place which helps us work towards

becoming the place where the best people want to work.

Recruitment and retention is what we do. We have found many innovative ways to

find the right people including sourcing competent people from the armed forces

with our industry acclaimed career conversion programme ‘Re-engineer’ through

to international road show success across Asia and other continents.


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PSN has an established HR team in the Philippines lead by Mr Jojo Faytaren. We

are currently setting up a manpower company in the Philippines in support of our

global growth strategy.

In terms of employee relations, we work across the globe with trade unions and

with voluntary employee forums. Regardless of location or trade union

involvement, we have a history of harmonious employee relations achieved

through high levels of management and HR communication and visibility.

When we set up PSN, we took time to agree our core values and they are at the

heart of our business. Unlike many companies they are not simply placed on

booklets or on conference room walls; they are embedded in the culture of the

organisation and help the HR team and line managers to ensure that we always

work to our best possible standard.

We talk to all of our people about what we expect from them. ‘Joining the network’

booklet tells our people what we expect from them and what they can expect

from us and ‘Managing the network’ booklet tells our managers how we expect

them to manage their teams to ensure employee relations are maintained.

HR Systems

We have a well established management system PSMS which incorporates all of

our people policies and processes. We work to a best practice standard and most

are global policies; however we must meet legal requirements of the different

jurisdiction in which we operate and this necessitates the need for some local HR

policies and procedures.

Oracle HR is our HR system of record and provides a global overview of our

workforce. Linked to this is our online web-based PSNjobs.com where potential

employees can apply direct to the company.


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Our People portal ‘HR online’ is the toolbox for managers and employees. This

portal is on the company intranet and holds all information around the following

key 4 HR areas:

People+review – our corporate, company wide performance management

section with information on the company’s competence based performance

management system and for manager on providing feedback.

People+career – information on all of PSN’s global job opportunities and

training courses that can help people reach their future career goals.

People+welcome – information for new starts on the company in the form of

an interactive induction programme.

People+reward – information for employees and managers on all matters

relating to compensation and benefits

(e) Corporate Training and Development Programmes

(i) - What can we do to help?

From a training perspective, we can do as much or as little to help depending on

the demands of the project. We develop standards and tools for the projects to

use and some of those are outlined below:

(ii) - PSN Competence Assurance Framework

From the basis of our Core Values, during 2008 we developed a PSN Competence

Management Framework based on our many years of competency development to

recognise and capture the skills and knowledge of our people and to demonstrate

to statutory bodies, and to our customers, that a healthy and safe workforce is our

greatest priority.

The system provides a comprehensive basis for nurturing the development of PSN

people’s skills throughout its global network.

Within the PSN Competence Management Framework we use the HSE definition of

Competence. This states “Competence is a combination of practical and thinking

skills, experience and knowledge, including a willingness to undertake work

activities in accordance with agreed standards, rules and procedures”.

We have experience of working with clients to ensure that their competence

requirements match with our own. We will use any existing client competence

assurance framework as the benchmark for ensuring the PSN Competence

Management Framework meets your requirements.

Benefits of our framework:

Flexibility – we can apply the framework to job roles from craft to

technician level, and will take prior experience and training into account.


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Risk ranking – we look at each job role individually and assign a risk

ranking which will influence the frequency of re-assessments giving you

reassurance that we have people with up-to-date skills

Assessing ‘ad hoc’ workers – a short competence assessment process

can be undertaken to ensure that workers who are only with us for up to

three months have a record of assessment.

(iii) - Deployment of the Framework

We engage our supervisors and managers in the process of deploying the

Competence Management Framework – they are key to the success of the

process. They provide their own people with an induction into the competence

assessment framework used on their own project, regardless of location. By

engaging our supervisors and managers, there is a clear link to the heart of our

operations.

(iv) - How does it work?

Site-based workers are assessed through a combination of self and supervisor-led

analysis on an on-going basis. We work with our clients to create training

matrices which reflect the training needs of each specific project.

The evidence generated by carrying out the work within the standards, which

must be auditable, is assessed by trained Assessors, and the quality and

consistency of these assessments is reviewed by trained Internal Verifiers.

Assessment Logbooks have been created to capture the results of the

assessments.

The Competence Management Framework is analysed through a process of risk or

priority ranking of each competence standard to ensure that the assessment

process is focused in the most appropriate direction for each job role within the

project, and outlining the requirements for re-assessment, e.g. low priority (risk) 3

yearly; medium priority (risk) 2 yearly and high priority (risk) annually.


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(v) - PSN Performance Review Process

People+ Review

We will implement our performance management process, People+ Review, on

the SPEX contract. People+ Review is our tool for ensuring that our people have

the feedback, development and recognition they need to succeed in their role and

have an eye to their future career development.

Training Records – A Common Standard

We set out a common standard for maintaining training records.

Corporate HR Visibility

The Philippines project is fully supported by the corporate Training team. The Asia

Pacific Training Adviser provides assistance with training and delivery plans and

ensures the project has access to and utilises both corporate and regionally based

training information to support their operational needs.

Case Study

Supervisory Skills Training

Our Asia Pacific Training Adviser spent time with our site Training Lead at the

Tabangao Refinery to share training materials on Supervisory skills. This followed

excellent feedback from our Client and our own project managers on the type of

training which was already offered at the PSPC Refinery. We were keen to share

the knowledge of this training and the corporate training packages which were

already available elsewhere in the network to create a comprehensive Supervisory

Skills package.


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The Network Knowledge

Visits from corporate team to our different sites help strengthen this relationship.

A recent visit to the Philippines by the UK Training Lead resulted in identification

of several local training providers who have links with the globally recognised

Offshore Petroleum Industry Training Organisation (OPITO). As OPITO is the

industry’s focal point for skills, learning and workforce development and are

responsible for setting industry training standards for offshore workers, the team

in the Philippines can now work with these local providers to understand and

deliver training that meets these standards.

Maintaining Standards

We have regular audits by clients and third party organisations. Currently the

corporate Training Team complies with the ISO9001:2000 requirements.

(f) Corporate Quality System

(i) - PSN Management System

PSN has an on-line management system (PSN MS) which includes a full range of

processes and procedures for all aspects of the services we provide. PSN MS is

certified to ISO 9001:2000 by Lloyds Register in the UK and Kazakhstan, by Quasar

in Canada, and DNV in Australia.

Please refer to TA-16.1 Quality Plan for Shell Malampaya for a comprehensive

listing of applicable Management System processes and procedures.

PSN use the industry respected Synergi and TapRoot systems for Incident

Management, to retain and classify incident information, generate incident

frequencies and analyse root causes. This can be at Corporate PSN wide level, or

regional, business unit and project level, allowing effective benchmarking of our

performance and lessons to be communicated across all of our projects.

(ii) - Training and Upskilling

Maintaining Standards

We have regular audits by clients and third party organisations. Currently the

corporate Training Team processes comply with the ISO9001:2000 requirements.

Additionally, the PSN Competence Management Framework is subject to the

following quality management processes:

Regular informal client review

Formal client audits

Internal audits and process health check reviews


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Feedback from awarding body external audits (e.g. OPITO)

Global Training Policies:

Employee Development Policy (HRM-POL-023)

Competence Development & Assessment Policy (HRM-POL-016)

Performance Review & Appraisal Policy (HRM-POL-032)

Competence Systems & Procedures Manual (HRM-MAN-

016)

Competence Assurance system Implementation

Framework

(HRM-PCM-040)

Onshore Competence Assurance (HRM-PCM-033)

Performance Review Process (People+ Review) (HRM-PCM-017)

Training Booking Administration (HRM-PCM-019)

Competence Management Induction Form (HRM-FRM-037)

Generic Competence Assessment Form (HRM-FRM-078)

Knowledge Tables (HRM-FRM-046)

Training Request Form (HRM-FRM-027)

(iii) - Supplier Evaluation

PSN has developed and implemented a supplier questionnaire and evaluation

process to ensure that all suppliers and sub-contractors used by PSN have

achieved the specific level of HSEQ, legislative and commercial competency

appropriate for the nature of materials and services provided. If a supplier is

accepted, the details of the materials and services provided are added to PSN’s

Approved Supplier Register (ASR) and thereafter, are regularly reviewed. We

maintain Individual supplier records in the PSN ASR. This is a web based system

which holds substantial detail and provides an invaluable tool for communicating

information and feedback on supplier performance. Vendor Evaluation and

Management Process PNM-PCM-003 can be found in Attachment TA-15.1.f(iii).

(iv) - Purchasing Procedures

PSN control procurement activities in each location by working to robust

documented procedures and adopting standard templates. Our primary objective

is to ensure the cost effective and timely provision of equipment, bulk materials

and services in accordance with all technical requirements. PSN select suitable

bidders using the ASR and client recommended sources. PSN procedures dictate

clear financial bidding thresholds and guidance on competitively bid work.


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We have a large number of competitive agreements in place with key suppliers,

which decrease tender timelines and deliver commercial and quality advantages.

Procurement is responsible for preparing commercial bid evaluation and a joint

recommendation for review and approval.

The bid evaluation and joint recommendation should consider factors pertinent to

the award including, but not limited to: technical and HSEQ acceptability, ability to

deliver in accordance with the schedule/procurement plan, cost competitiveness

and compliance with our terms and conditions. General Procurement Process PNM-

PCM-004 and Global Package Procurement PNM-PCM-005 can be found in

Attachment TA-15.1.f(iv).

(v) - Internal Quality Control

PSN conduct robust internal Quality Audit programmes across each of the PSN

managed projects and contracts. These are produced annually and the audit

outcomes are carefully scrutinised for root cause with subsequent findings and

recommendations being logged in the PSN continuous improvement tool –

“IMPact”. The actions are then tracked on a weekly basis and additionally at the

monthly Management Review. This ensures that Opportunities for Improvement

and Non-conformances maintain a high profile until satisfactorily closed out.

(vi) - Inspection and Test Procedures

The PSN Management System (PSMS) contains a comprehensive suite of

processes and procedures carefully designed to ensure that all project

manufacturing and service activities can be methodically managed with effective

reporting mechanisms in place. Each activity can be monitored and checked as

required. PSN have available the option to either call-off project discipline QA

Engineers to conduct inspections or alternatively PSN have frame agreements with

external inspection agencies, should there be a requirement to utilise their

services where project engineering time is restricted for various reasons. Third

party inspection agencies are subject to the relevant PSMS inspection and Test

procedural requirements.


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(g) Existing Corporate Materials Procurement Organization

(h) Engineering capability

PSN offer a shared engineering resource for those customers and projects where

demand does not warrant a dedicated team or until such time that we can deploy

a dedicated engineering team to the customer’s project site. Our Central

Engineering (CE) group provides the full range of services on a ‘pay-as-you-use’

basis. This enables our customers to benefit from these services without

committing to the full exposure of a dedicated project team, including project

services support.

We have a proven track record in providing cost effective, quality support to

operational assets both offshore, in oil and gas production facilities, and onshore

with oil and gas, refinery and LNG production and reception facilities and

petrochemical plants.

Our global workforce of more than 8,000 includes over 1,500 engineering, design

and drafting personnel, based in our network centres in the UK, Canada, Australia

and Kazakhstan. With over 30 years of experience across a broad client base, we

offer our customers a portfolio of support service provision which includes:

Project management

Capital developments

Brownfield facilities modifications management

Engineering, studies, design and procurement

Construction and shutdown management and services


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Hook-Up, commissioning and start-up

Structural integrity analysis

Integrated services contracts

(i) PSN Engineering Support Strategy for SPEX

Introduction

PSN has carefully reviewed SPEX’s requirements for provision of engineering for its

Malampaya Asset. Our strategy has been developed to ensure that PSN deliver

the right skills as and when required by the Asset that assures SPEX that we will

always be able to meet key project deadlines.

Manila

Based in Manila there will be a number of support engineers who will be tasked

with responding to day to day engineering activity. They will work with the

designers to provide timely fit for purpose solutions to the immediate

requirements of operations in a Brownfield environment.

It is not our intention to develop a larger engineering support team in Manila. Our

experience has shown that it is not possible to attract and retain the correct

quality of Brownfield oriented staff with a workload that will be both variable in

size, type and uncertainty in timing.

It is therefore our intention to network to our other locations in order to provide a

cost effective service to SPEX. We will develop an Interface Document for the

project which will allow the decision to be made as to which scopes will be kept in

Manila and which will be transferred to the other offices. The document will be

developed to allocate work to where it can be undertaken to the correct quality at

an acceptable cost and in a timely manner.

Singapore

We are currently developing our capability in Singapore focused on providing

Brownfield engineering to the market across Asia Pacific. We chose Singapore for

our regional engineering office on the basis of being able to attract, recruit and

retain a high calibre of skilled personnel. We are using personnel from our Central

Engineering group from Aberdeen to support the start up and to provide all the

base procedures, systems and control processes necessary to run our Brownfield

engineering activities.

Singapore will be our primary office for additional workload from Manila. As we

understand more of the requirements of SPEX both in terms of scope and timing

then we will bring in the appropriate disciplines to undertake the work.


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In the short term we have a relationship with a Singapore based company called

MES who have over 80 multi-discipline offshore experienced engineers who will

work with us to complete these early scopes in a timely manner.

In our Singapore office we will locate a PSN focal point who is experienced in

Brownfield modifications. The project focal point will ensure that work is received

from Manila and allocated to the correct group. One of the key tasks of the focal

point will be to ensure that the work is undertaken with a Brownfield focus

according to our bespoke systems and procedures.

Melbourne

Should we need to undertake more complex scopes and/or FEED then we would

propose to use our Melbourne office. We currently have over 300 engineers

located in our office in Melbourne. This office is a full multi-discipline engineering

procurement and construction based business. Currently the office is undertaking

work for ESSO, SEIC and ENL. We propose to use our senior manager Rob McEwen

as the focal point for the Melbourne scopes. Rob previously worked for SPEX and

has therefore a good knowledge of the Malampaya Asset.

Central Engineering Group

Based in Aberdeen we have a multi-discipline engineering and construction group

which also includes specialist engineering teams for pipe stressing, rotating

equipments, static mechanical equipments, HVAC , materials engineering etc.

Central Engineering (CE) is available to support projects on a global basis either by

undertaking scopes of work in Aberdeen or deploying teams in country for surveys

and preparing scopes. This team has experience of working with Shell through

supporting contracts in Sakhalin and Gabon. (see (ii) Corporate “Home Office”

Support for more detail).

Mumbai

As part of our Regional strategy we have been investigating the engineering

market in India and have selected a strategic Engineering partner for supporting

us across Asia Pacific. We have identified a company called Pyramid based in

Mumbai as our regional strategic partner. Pyramid are a multi-discipline

engineering house with experience of work in both the UK North Sea and the

Middle East, working to international engineering standards.

We are only in the early stages of developing our working relationship with

Pyramid, however PSN believes that once our working interfaces have been

developed we would be able to offer SPEX a substantial cost advantage over using

other locations. We hope that this option may be of interest to SPEX in the future.


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(ii) - Corporate “Home Office” Support

Engineering Resource

We have 80+ competent qualified multidiscipline personnel available within our

Central Engineering (CE) Department who can provide stand-alone services and/or

cater for peak loading on all of our global projects There are also dedicated

specialist resources available in the group These personnel would be available

short term in order to service your engineering requirements. The table overleaf

summarises the groups direct resources available.

Role / Position No Role / Position No

Project Manager / Engineering

Manager

2 Cost Specialist 1

Project Engineers 3 Planning Specialist 1

Process Engineers 5 Procurement &, Fabrication 1

Piping Engineers 3 Information Management 2

Piping Designers 3 Finance & Admin 3

Structural Engineers 4 HSEQ Engineer 1

Structural Designers 3 Safety & Environmental Engineer

(CSG)

10

Electrical Engineer 3 Vessel Specialists 4

Electrical Designers 2 Rotating Equipment Specialists 2

Instrument Engineering 4 Asset Integrity Engineers (AIG) 6

Instrument Designers 1 HVAC Engineer 1

Construction & Commissioning

Engineers

4 CAD Group 6

Pipe Stress Engineers 3 Metallurgy & Corrosion Engineers 2

CE is a fully functional project team covering all aspects of project work including

Engineering, Procurement, Construction & Commissioning and Project

Management. Unlike a dedicated project, CE services are provided on a ‘pay-as-

you-use’ basis, such that a customer will only pay for the personnel and functions

they actually need and when they use them.

Typical engineering support and project involvement by the team include:

Single discipline Checking/verification

Conceptual and FEED Studies

Mobilisation of engineers to supplement and support in country teams

Project delivery of Multi Discipline detail Design Scopes

Material Specifications, Procurement and delivery

Construction and Commissioning Management and Support

Safety and Environmental Studies


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Specialist Engineering Support to Operational Challenges

- Pressurised Vessels

- HVAC

- Pipe Stressing and Analysis

- Materials & Corrosion Consultancy

- Process CAD

On the Job Training & Development of National engineers

Asset Integrity analysis

The team has a proven track record supporting projects within the Network and

operate within a robust cost control and project reporting regime ensuring that

Management of Change is fully controlled and reported. The team has experience

in delivering on reimbursable, KPI and Lump Sum projects. A sample Central

Engineering (CE) Work Register can be found in Attachment TA-15.1.h.

To ensure personnel are available to meet different client schedules, scope is

scheduled in a production slot approach with delivery dates fixed into the

schedule once its been approved. Central Engineering resource manage via

integrated planning in Primavera. The Management of Change processes are

critical to successful resource management and are fundamental to the groups

operation.

In order to manage project, client and resource expectations there are a series of

project reviews established on a weekly basis and comprising weekly progress

reports, formal conference calls, minuted meetings as well as weekly cost,

planning and PCN reviews. Typical outputs are as per Figure TA15.1.1 overleaf:

Figure TA15.1.1 - Output


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(iii) - Specialist Resources

As well as technical resources to support ongoing multidiscipline engineering

Brownfield and Greenfield projects there is also extensive expertise available

within the “home office” support group, which provide the following specialist

services:

Structural Integrity Management

The structural integrity management process is designed to operate from

commencement of production until the end of field life and will be developed

around four fundamental processes:

Risk Assessment Process - to identify and communicate hazards.

Control Process - to manage hazards within an acceptable level of risk.

Continual Assurance Process.

Life Cycle approach to facilities integrity.

Structural Integrity Methodology will be developed to manage the ongoing

integrity of the structural systems during the operational life cycle of an asset. It

will be developed to demonstrate compliance with the appropriate regulations and

Standards, and to provide an auditable system. The methodology will utilise the

following:

Compliance with regulations

Structural Design Review.

Criticality based inspection.

Development of integrity assurance process.

Risk Based Integrity (RBI) Assessment

PSN extensively use risk based techniques to develop both internal and external

monitoring plans. This approach uses expert opinion to evaluate the probability

and the consequence of failure through a set of integrity threat guidelines.

This method can be applied to new or existing assets with the process of

continuous improvement to update and reflect the ongoing operation of the asset.

Corrosion Operational Support

PSN can provide general operational support to assignments, regarding

engineering solutions to challenges other than inspection related activities.

Possible activities include:

Corrosion monitoring implementation

Chemical optimisation/evaluation supportTenderer’s Company Name: PSN PRODUCTION SERVICES


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Protective coating selection/ evaluation / compliance

Total corrosion management implementation

Material selection consultancy for engineering modifications etc.

Engineering studies in support of clients requirements

Anomaly Management and Incident Investigation

Safety Engineering

Our Safety Engineering team have expertise in all areas of hazard management

from the preparation of design philosophies, at all stages of a project, through to

the quantification of risk using quantitative risk analysis techniques.

Our design philosophy capability covers areas such as:

Layout

Leak Prevention

Vent & Flare

Emergency Shutdown

Fire & Gas Detection

Fire & Explosion Protection

Temporary Refuge & Escape, Evacuation & Rescue (TR & EER)

Using bespoke packages, in house tools and specially selected third party

consultants we can provide guidance, advice and perform studies on:

Leak modelling

Gas dispersion modelling

Toxic gas analyses

Fire modelling

Explosion modelling (also

supported by third party

consultants)

Smoke and gas ingress analysis

TR & EER analyses

Complying with today’s legislation can involve adherence to many engineering

codes, national and international standards and codes of practice. We can prepare

all the necessary regulatory documentation for a project and act as the interface

between appointed bodies.

Loss prevention engineering is an integral part of the hazard management

process. Our particular area of expertise is in the design of active fire protection

systems. Our design experience covers UK and international onshore & offshore

sites with systems designed and operating to national and international codes and

standards.


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EIA &Environmental

Statement

ENVID

EnvironmentalOptimisation

Studies

Environmental Philosophy

Project / AssetAspects Register

Waste Management

Plan

EmissionsManagement

Plan

LifecycleAssessment

EnvironmentalAspectsRegister

EnvironmentalPerformanceEvaluation

ISO 14001EnvironmentalManagement

System


Our Loss Prevention engineers are experienced users of PIPENET, a fluid flow

analysis tool that can:

Solve general flow problems

Perform transient analyses to resolves design issues such as hammer and

determine hydraulic forces for pipe stress analysis

Design deluge, ring main, water curtain, sprinkler or foam concentrate

systems complying with NFPA and other codes

We can also provide a variety of expertise in the field of reliability analysis to

ensure that the hardware safety integrity requirements, as defined in BS EN

61511, are achieved for any Safety Instrumented System. The analysis includes:

SIL Assessments

Failure Modes, Effects and Criticality Analysis

Common Cause Failure Analysis

Reliability Block Diagrams

Fault Tree and Event Tree Analysis

Environmental Engineering

Identifying and assessing the significance of environmental impacts at an early

stage in the project allows appropriate management measures to be incorporated

within the design. Identification of environmental hazards (ENVID) uses a process

similar to that used for identification of safety related hazards, HAZID. At the start

of any project activity (design, construction, commissioning and operations), the

preparation of an environmental philosophy sets the requirements for

environmental optimisation studies, development of an Environmental Impact

Assessment (EIA), Environmental Statement and Waste and Emissions

Management Plans. Underpinning the assessment process is the preparation of

the Aspects Register which lists all the environmental aspects (positive or

negative) and describes how each aspect is managed through measures which

prevent, detect, control and mitigate the hazards. The diagram below details the

PSN environmental model.


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Our environmental engineering team can provide support and guidance at each

stage of the project lifecycle and conduct the aforementioned studies to support a

project.


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This also includes conducting baseline surveys and developing training and

communication programmes for both office based engineers and site personnel.

We can also assist the client by acting as an interface between projects and third

party consultants.

Other areas of expertise and regions in which in-house expertise exists include:

Development of contractual

documentation to ensure

compliance of third parties to

Company HSE requirements.

Co-ordination of socio-economic

strategy and reporting

Audits & inspections

UK, offshore and onshore

Tropical rainforest

Desert / arid regions

Coral reefs

Coastal and mangrove

ecosystems

Areas of conservation

importance

(iv) - Engineering Tool Kit

PSN has a number of innovative tools we have developed that ensures delivery of

value adding engineering solutions to its clients, these are described below:

4D Solutions Challenge - Providing Flexibility to the Modifications

Process

Every aspect of a proposed scope of work is interrogated to determine whether a

different solution might be more appropriate. Around the four central challenges

of Delete, Defer, Diminish, and Different, (4D approach) we question the real

value of the proposed work, the inherent feasibility of each task, and the

appropriate methodology, processes, and procedures. This leads to increased

creative thinking and practical innovation. For SPEX, this means that we can

routinely find opportunities to do things safer, better, faster and more cost

effectively.

The 4D Solutions challenge is more about behaviour than specific processes. It

comes from the top and it is a challenge we embed in all our employees, to unlock

previously undiscovered savings. We have provided value to our clients by

challenging the obvious solution and providing an improved value approach, which

seeks the following outcomes:

Delete: Challenge the concept,

challenge the necessity. Is it really required?

Defer: Challenge the timing. Is this

required now or can the spend be

deferred until later?


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Diminish: Challenge the scope of work. Is it optimal, does it achieve what

is required at the lowest cost?

Different: Could we do it differently. Is there another way to provide

the same solution that may be more cost effective?

Our innovative 4D – Solutions challenge framework, coupled with the Right Size™

tiered approach, significantly enhances the final value we add to your assets. We

already use the concept of solutions challenge throughout our business. In

practice, this means that our employees challenge all work, to ensure that you

receive the right solution and maximum value for money.

The solutions challenge tool will deliver maximum benefit during the feasibility

assessment, conceptual engineering, and FEED stage of engineering and

modifications. It will do so by identifying an innovative solution or by reducing or

eliminating workscope.

Right Size™ Tiered Engineering

We have developed a Right Size process to classify engineering modifications

work according to our tiered engineering process. The classification is based on

complexity and risk, which ensures our engineering costs are appropriate to the

modification.

The main elements that comprise the PSN Project Management process based

upon the Right SizeTM approach are shown in Figure TA15.1.2.

We achieve this focus by taking a tiered approach to engineering change and work

execution, based on asset integrity and technical scope requirements. At the

scoping and FEED stages, work would be defined to be implemented as either tier

1, 2, 3 or 4, with scaled deliverables to match.

The process is based around four tiers, which are normally defined as:

Tier 1 - Minor maintenance modifications/asset support

Tier 2 - Minor operations enhancement/ asset enhancement

Tier 3 - Significant operational enhancement

Tier 4 – Major projects/asset development

The established benefits of the Right SizeTM approach are as follows:

Improved delivery focus

Improved communication and direction within the work teams

Higher work throughput and reduced turnaround time

Faster response

Reduced engineering costs

Reduced business services costs in planning, progress and cost reporting


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Better performance on KPIs (Client scorecard)


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Figure TA15.1.2 – Right Size Solution Process

Tier Engineering Process

For tiers 1 and 2 work the engineering activity would initially be undertaken by our

in country Engineering team. Thereafter, as workload increased or larger tier 3 or

4 work arose the work would be executed via the Engineering Support office.

It would be incumbent on our planning team to monitor and plan this workload to

ensure regular activity for a core team.

As we reach tiers 3 and 4, where projects become more stand alone we would

form specific project teams within the engineering support office who would

manage the work under a pre-defined set of control mechanisms. Any specialist

design activity would be undertaken by our networked design / engineering team

and the execution on site would be managed by the by the local project team

linked to safety, budget and timetable.


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Close interface with the O&M teams on site will ensure we are delivering the

correct results, safely and on time, and will ensure that there was direct O&M

input into design and the final product meets the end user requirements.

Work Planning System - WPS

Our Work Planning System is the core of our work management process. We

developed it to complement our existing tools by adding baselines, historical

tracking, S-Curves, histograms and level four job cards. WPS also has a materials

control feature linking the job cards and the procurement process.

Shell selected this system above those of our competitors, for use on the Sigma3

Integrated Services Contract, a joint venture between PSN, AMEC and Wood

Group, for the management of modifications on their Northern North Sea

platforms.


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TECHNICAL APPENDIX TA- 16: PROPOSED QUALITY ASSURANCE/CONTROL PLAN

1. The Tenderer shall be required to establish a quality assurance/control programme and procedures in accordance with PART 2 - TERMS AND CONDITONS and in conformity with the quality assurance system as specified in TECHNICAL SPECIFICATION and/or SCOPE OF WORK

The attached draft quality plan (Attachment – TA-16.1 – Shell Malampaya Quality

Plan) has been submitted in line with the scope of work as described in Invitation

to Tender Document C – Part 4.

2. The Tenderer is required to submit with its Tender a brief synopsis of its intended Quality Assurance/Control Plan specifically design for this tender.

It has been structured in order to give the COMPANY a clear understanding of

PSN’s capabilities in this particular instance, and to be aware that the finalised

Quality Plan upon award would be robust in its ability to ensure that all the

necessary processes and procedures were in place thus establishing a sound

base from which the project can be referenced and successfully managed. Refer

to Attachment TA-16.2 for a Quality Plan Template.

3. Tenderer shall submit Tenderer's existing QA/QC Manual (for both engineering and maintenance services).

PSN operate an on-line management system. The submitted draft Quality plan

contains a comprehensive listing of both Maintenance and Engineering processes

and procedures. These have been developed over a number of years resulting in

a suite of robust discipline activities capable of ensuring full compliance to the

requirements of any relevant engineering/maintenance activity. The draft

Quality Plan can be found in Attachment TA-16.1 – The PSN Management System

Index can be found in Attachment TA-16.3.

4. COMPANY may perform pre-award assessment of technical and QA capabilities based on the QA requirements set out in this ITB.

PSN would extend the necessary time and expertise to allow the COMPANY to

perform a pre-award assessment of PSN’s Technical and Quality Assurance

capabilities.

5. Refer to Attachment 16-1.

The attached questionnaire shall be thoroughly completed by Tenderer for COMPANY to assess Tenderer 's compliance with requirements of the ITB.

Please refer to the Attachment TA-16.1 Quality Assurance/Control Plan for our

completed questionnaire.

6. The Tenderer shall submit the following procedures for Company Evaluation. Failing to submit this will jeopardise the Tender submission.


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i) Sub-Contracting Procedures


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Production Services Network has, within the Management System, under the

Contract Administration Section are a comprehensive suite of processes,

procedures and standard forms to manage the contract and sub-contract

activities on all PSN run contracts.

Please refer to Attachment TA – 16.6(i) for examples of sub-contracting

procedures / processes.

ii) Cost Plus and Purchasing Procedures

Please refer to Attachment TA-16.6(ii) for examples of purchasing procedures.

iii) Workpack Preparation & Planning & Control Procedures

PSN has within it’s Management System a number of processes and procedures

that are used for workpack preparation, planning and control. These can be used

in conjunction with client processes and procedures or stand alone.

Please refer to Attachment TA-16.6(iii) for examples of PSN’s Work pack

Preparation & Planning & Control procedures.

iv) Cost Monitoring and Cost Control Procedures

Production Services Network implements cost monitoring and cost control

processes and procedures as per the PSN Management System.

Examples are included in Attachment TA-16.6(iv).

v) Welding and Painting Procedures.

Production Services Network holds a Welding and Materials library of up-to-date

weld procedures and weld qualifications. It is to be noted that the Shell operated

North Sea Platform contract has been run by the Joint Venture Company –

Sigma3, of which PSN are a partner. All weld procedures and weld approvals held

by PSN are also utilised by Philippines Shell Production Company as appropriate.

Please refer to Attachment TA-16.6(v) for a range of current weld procedures. In

the case of Painting procedures, we develop Project specific paint procedures

where we are responsible for this activity based on the client painting


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specifications or the Manufacturers painting specifications providing it is

acceptable to PSN.

An example of this is on the Shell PSPC Contract where we provide maintenance

and modifications support to the Refinery in Tabangao, Batangas. We have

attached the project procedure and supporting pro-formas which we use on this

contract. The procedure references the following Shell DEP Painting and

Insulation specifications,

DEP 30.48.00.31 – Painting and Coating of New Equipment

DEP 70.80.10.10 – Maintenance Painting

DEP 30.46.10.31 - Thermal Insulation

DEP 3146.10.31 - Thermal Insulation

Copies of these of these are also attached which demonstrates our familiarity

with the Shell systems and specification in this area.” Refer to Attachment TA –

16.6(v).

7. The Tenderer shall enter its company name and chop and sign each page of this Appendix.



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APPENDIX 16-1

QUALITY ASSURANCE / CONTROL QUESTIONNAIRE

TENDERER TO ANSWER/PROVIDE INFO TO ALL OF THE FOLLOWING QUESTIONNAIRES.

This Questionnaire shall be completed by Tenderer for assessment of Tenderer’s Quality System and its ability to comply with the requirements of the ITT.

Please answer all questions as accurately as possible and if a particular question is not applicable, write “N/A”.

1.0 TENDERER DECLARATION

We confirm that COMPANY and/or its representative shall be given access for pre-award evaluation, if required.

We confirm the information provided is correct to the best of our knowledge.

Pat Bonner Global HSEQ Manager Production Services

Network Signature Name Title / Position Company

16th February 2009

_____________ ____________ ____________ ___________ _________ DateSignature Name Title / Position Company

Date

(To be signed by a senior member of Tenderer’s Management - QA Manager or equivalent).

2.0 (NOT USED)


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APPENDIX 16-1 (CONT’D)

3.0 QUALITY SYSTEM

3.1 What Quality System Standard is the basis for your Quality System?

ISO 9001:2000_______________________________________________________________________

3.2 When did you first establish a formal documented QA System?

_______________________________________________________________________ISO approval first achieved in May 1992

3.3 Does your Quality System meet the full QA requirement stated in this Bid?

____X______ ___________ Yes ____________ No,___________ Partly, Give details

3.4 Do you hold a valid certificate of Quality System approval from any authority or assessment agency?

____ X ______ ___________ Yes ____________ No,___________ Partly, Give details

If yes, please attach a copy of this certificate and state its validity date and the work coverage.

_______________________________________________________________________


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3.5 If you do not have Quality System accreditation from an internationally recognized authority or assessment agency, do you intend to obtain accreditation in future?

___________ Yes ____________ No,___________ Partly, Give details

If yes, please state when.

_______________________________________________________________________

3.7 Have you been audited by the COMPANY or its representative?

______X _ ______ ______________ Yes ______________ No

If yes, state date of last audit.

Reference Attachment 16-1 Quality Plan Section 3.7 – please be advised that

the PSN managed Sakhalin Energy Investment Company Ltd Project was audited

by the COMPANY on the 22nd and 29th October 2007 at PSN’s Melbourne office.

Additionally, the Shell PSPC contract in the Philippines was last audited

((HSSE)MS) by the COMPANY in January 2008.

_______________________________________________________________________

3.8 Is the QA Manual / System description submitted with this Bid an accurate description of your present organisation and the quality system?

_______YES______ Requirements fully implemented

_________________ Requirements fully implemented

_________________ Requirements partly implemented ; Give details :

Details of PSN QA manual / system are contained within the submitted

Quality Plan. Refer to TA16.1

______________________________________________________________________________

__________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

_____________________________________________________________________________


3.9 Are there any recent changes in the organisation or procedures that are not described in your QA Manual? Give details.

All changes whether to the organisation and / or procedures are addressed

at the time and subsequently PSN can confirm that our QA manual is up to

date.

_______________________________________________________________________


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_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_______________________________________________

3.10 Does the organisation have a nominated QA Manager / Representative?

Name : Pat

Bonner________________________________________

Job Title : Global HSEQ Manager

_______________________________

To whom does he report : Chief Executive

Officer_______________________________

(state position)


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What functions does he perform? (State all functions and not only those performed as a QA Representative).

Leading staff of HSE and Quality professionals

Managing HSE and Quality Budgets

Responsible for PPR of HSE and Quality Managers

Approving UK, International and US PSN HSE and QBE strategies and

plans and ensuring alignment with business strategies

Ensuring PSN Audit and Assessment expectations are implemented on

projects

Overviewing the quality of HSE and Quality input to International and UK

proposals

Resourcing key HSEQ personnel

Ensuring the implementation of the PSMS on PSN projects

Ensuring a continuous improvement culture is embedded in PSN and that

Continuous improvement tools are applied

Ensuring maintenance of ISO9001, 14001 and OHSAS18001 certifications

Participates in and disseminates information from industry forums

Leads the implementation of HSE risk management strategies

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________


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3.11 Has your QA Manager / Representative received any formal training in Quality Assurance? If so, please provide details (e.g. Training received, dates, etc).

Chartered Quality Professional (CQP) Status by CQI – September 2008

Member of Chartered Quality Institute – May 2007

Facilitator Training for Investment in Excellence (Pacific Institute) –

December 2005

“Tap Root” Cause Analysis Course – December 2005

Risk Analysis and Management Course (ECITB) – March 2003

Advanced EMS Auditing Course for Quality and Environmental Personnel

(IEME Approved) – July 2001

The Institute of Quality Assurance (MIQA) – Full Membership – February

1992

Institute of Quality Assurance Membership Group A3 Examination –

November 1991

Day Quality Auditing Course (Quality Management International) – June

1987

Numerous internal courses covering Auditing Continuous Improvement,

etc.


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_____________________________________________________________________________________

___________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

________________________________________________

3.12 Are Quality System Audits performed within your own organisation?

____X_________________Yes ___________No

If yes,

o State who performs these audits

o When was the last audit performed (Month / Year)

o Attach a sample copy of an audit report

o Attach a copy of your audit schedule

Audits performed by qualified auditors at both project and corporate level

Last audit performed on 9th January 2009

See attached sample audit report – Attachment TA16.1.3.12

See attached audit schedules for both corporate and projects – Attachment

TA16.1.3.12

_____________________________________________________________________________________

___________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

3.13 How do you evaluate / monitor your Sub-Contractor?

(Tick as applicable).

__ _ X _______ Quality surveys / QA system audits

___ X ______ Record of Sub-Contractor performance

___ X ____ __ Planned inspection visits to Sub-Contractors

_ _ X _ _____ Planned expediting visits to Sub-Contractors

___ X _______ Incoming inspection

____________ Quality surveys / QA system audits

____________ Record of Sub-Contractor performance

____________ Planned inspection visits to Sub-Contractors

____________ Planned expediting visits to Sub-ContractorsTenderer’s Company Name: PSN PRODUCTION SERVICES


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____________ Incoming inspection

___N/A_________ Other (specify):

________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

__________________________________________

PSN conduct a variety of methods for control of sub-contractors. This

basically is in line with the above methods and detailed in TA15.


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3.14 How do you evaluate / monitor your Vendors?

(Tick as applicable).

____X____ Quality surveys / QA system audits

____X____ Record of Sub-Contractor performance

____X____ Others (specify):

____X____ Planned expediting visits to Sub-Contractors

____X____ Incoming inspection

____N/A__ Others (specify):

__________ Quality surveys / QA system audits

__________ Record of Sub-Contractor performance

__________ Others (specify):

__________ Planned expediting visits to Sub-Contractors

__________ Incoming inspection

__________ Others (specify):

All of the above methods are utilised. Additionally PSN have an “Approved

Supplier Register” (ASR) which carries details of PSN approved suppliers

performance related to HSE, Quality and commercial activities.

________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

________________________________________________


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3.15 List Quality Procedures to be employed for this Contract (Identify)

A full list of Quality procedures is located in Attachment TA16.3

_____________________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

___________________________________


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TECHNICAL APPENDIX TA-17: COMPLIANCE WITH SHELL’S TERMS AND CONDITION

1. The SHELL’S TERMS AND CONDITIONS COMPLIANCE LIST is attached as TABLE below. Tenderer is to be duly filled in by means of "YES" or "NO" in the appropriate row and column.

If response is "Yes", the remarks column shall include the statement "Fully comply".If “NO”, please provide your reason(s) as part of your qualification to contract under TECHNICAL APPENDIX 1 – QUALIFICATIONS.

2. Tenderer shall enter its Company name and initial on this page.

3. THIS APPENDIX SHALL BE COMPLETED AND INCLUDED IN TENDERER’S TECHNICAL SUBMISSION ONLY

Item No.

SHELL’S TERMS AND CONDITION COMPLIANCE LIST

COMPLIANCE YES/NO

REMARK

1.0 Part 2, Clause 6.0 Prices and PaymentsYes Fully Comply

2.0 Part 2, Clause 7.0 Taxes and DutiesYes Fully Comply

3.0 Part 2, Clause 8.0 Term of Payments

Net 30 days upon receipt of correct invoice and all appropriate supporting documents.

Yes Fully Comply

4.0 Part 2, Clause 10.0 Liability and IndemnificationNo See Qualification

Table in TA1

5.0 Part 2, Clause 11.0 Limitation of LiabilityNo See Qualification

Table in TA1

6.0 Part 3, Clause 12.0 Confidential Information And IT Security Agreement

No See Qualification Table in TA1

7.0 Part 2, Clause 15.0 Business PrincipleYes Fully Comply

8.0 Part 2, Clause 16.0 Law, DisputesYes Fully Comply

9.0 Part 2, Clause 17.0 Insurance by ContractorNo See Qualification

Table in TA1

10.0 Part 2, Clause 24.0 Parent Company GuaranteeYes Fully Comply

11.0 Part 2, Clause 25.0 Bank Guarantee No

12.0 Part 2, Clause 27.0 Changes to The ServicesYes Fully Comply

13.0 Part 2, Clause 28.0 GuaranteeNo See Qualification

Table in TA1

14.0 Part 2, Clause 33.0 Personnel of the Contractor and Subcontractors

Yes Fully Comply

15.0 Part 2, Clause 37.0 Default of the ContractorYes Fully Comply


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Item No.

SHELL’S TERMS AND CONDITION COMPLIANCE LIST

COMPLIANCE

YES/NO

REMARK

16.0 Part 2, Clause 39.0 Discontinuance and TerminationNo See Qualification

Table in TA1

17.0 Part 2, Clause 40.0 Force MajeureYes Fully Comply

18.0 Part 2, Clause 47.0 Intellectual Property RightsYes Fully Comply

19.0 Part 2, Clause 52.0 CONTRACTOR’s Obligations for Safety, Health and Welfare

Yes Fully Comply


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TECHNICAL APPENDIX TA-18: COMPLIANCE WITH SHELL’S STATEMENT OF GENERAL BUSINESS PRINCIPLES

1. Tenderer shall study PART 2 – GENERAL CONDITIONS OF CONTRACT Clause 15 Business Principles and Shell’s Group Statement of General Business Principles (SGBP) attached below. Tenderer must complete the Questionnaire below fully.

2. Tenderer shall enter its company name & chop and sign each page of this Appendix.

3. THIS APPENDIX SHALL BE INCLUDED IN THE TECHNICAL SUBMISSION ONLY.

SHELL GENERAL BUSINESS PRINCIPLES (SGBP) QUESTIONNAIRE

Please tick ( ) as appropriate

Yes No

1.0 Have you read and understood Clause 15 - Business Principles, of Part 2 – General Conditions of Contract?

√

2.0 Do you understand the SGBP (a copy of which is attached to this Appendix)?If not, please explain why not.

√

3.0 Do you agree to comply fully with Clause 15 - Business Principles, of Part 3 – General Conditions of Contract?

√

If no, please provide your reason(s) as part of your qualification to contract under TECHNICAL APPENDIX 1 – QUALIFICATIONS.

4.0 In the event of a subcontract (if applicable), will you ensure that your appointed Subcontractor acknowledges and understands the SGBP?

√


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SHELL GROUP “STATEMENT OF GENERAL BUSINESS PRINCIPLES”

Introduction

The Shell General Business Principles govern how each of the Shell companies which make up the Shell Group* conducts its affairs. The objectives of the Shell Group are to engage efficiently, responsibly and profitably in oil, gas, chemicals and other selected businesses and to participate in the search for and development of other sources of energy to meet evolving customer needs and the world’s growing demand for energy. We believe that oil and gas will be integral to the global energy needs for economic development for many decades to come. Our role is to ensure that we extract and deliver them profitably and in environmentally and socially responsible ways. We seek a high standard of performance, maintaining a strong long-term and growing position in the competitive environments in which we choose to operate. We aim to work closely with our customers, partners and policy-makers to advance more efficient and sustainable use of energy and natural resources. *Royal Dutch Shell plc and the companies in which it directly or indirectly owns investments are separate and distinct entities. But in this publication, the collective expressions 'Shell' and 'Shell Group' may be used for convenience where reference is made in general to those companies. Likewise, the words 'we', 'us', 'our', and 'ourselves' are used in some places to refer to the companies of the Shell Group in general. These expressions are also used where no useful purpose is served by identifying any particular company or companies.

Our Values

Shell employees share a set of core values - honesty, integrity and respect for people. We also firmly believe in the fundamental importance of trust, openness, teamwork and professionalism, and pride in what we do.

Sustainable Development

As part of the Business Principles, we commit to contribute to sustainable development. This requires balancing short and long term interests, integrating economic, environmental and social considerations into business decision-making.

Responsibilities

Shell companies recognise five areas of responsibility. It is the duty of management continuously to assess the priorities and discharge these inseparable responsibilities on the basis of that assessment.

a. To shareholders To protect shareholders’ investment, and provide a long-term return competitive with those of other leading companies in the industry. b. To customers

To win and maintain customers by developing and providing products and services which offer value in terms of price, quality, safety and environmental impact, which are supported by the requisite technological, environmental and commercial expertise.

c. To employeesTenderer’s Company Name: PSN PRODUCTION SERVICES


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To respect the human rights of our employees and to provide them with good and safe working conditions, and competitive terms and conditions of employment.

To promote the development and best use of the talents of our employees; to create an inclusive work environment where every employee has an equal opportunity to develop his or her skills and talents. To encourage the involvement of employees in the planning and direction of their work; to provide them with channels to report concerns.

We recognise that commercial success depends on the full commitment of all employees d. To those with whom we do business

To seek mutually beneficial relationships with contractors, suppliers and in joint ventures and to promote the application of these Shell General Business Principles or equivalent principles in such relationships. The ability to promote these principles effectively will be an important factor in the decision to enter into or remain in such relationships. e. To society To conduct business as responsible corporate members of society, to comply with applicable laws and regulations, to support fundamental human rights in line with the legitimate role of business, and to give proper regard to health, safety, security and the environment.

Principle 1: Economics

Long-term profitability is essential to achieving our business goals and to our continued growth. It is a measure both of efficiency and of the value that customers place on Shell products and services. It supplies the necessary corporate resources for the continuing investment that is required to develop and produce future energy supplies to meet customer needs. Without profits and a strong financial foundation, it would not be possible to fulfil our responsibilities. Criteria for investment and divestment decisions include sustainable development considerations (economic, social and environmental) and an appraisal of the risks of the investment.

Principle 2: Competition

Shell companies support free enterprise. We seek to compete fairly and ethically and within the framework of applicable competition laws; we will not prevent others from competing freely with us.

Principle 3: Business Integrity

Shell companies insist on honesty, integrity and fairness in all aspects of our business and expect the same in our relationships with all those with whom we do business. The direct or indirect offer, payment, soliciting or acceptance of bribes in any form is unacceptable. Facilitation payments are also bribes and should not be made. Employees must avoid conflicts of interest between their private activities and their part in the conduct of company business. Employees must also declare to their employing company potential conflicts of interest. All business transactions on behalf of a Shell company must be reflected accurately and fairly in the accounts of the company in accordance with established procedures and are subject to audit and disclosure.


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Principle 4: Political Activities

a) Of companies

Shell companies act in a socially responsible manner within the laws of the countries in which we operate in pursuit of our legitimate commercial objectives.

Shell companies do not make payments to political parties, organizations or their representatives. Shell companies do not take part in party politics. However, when dealing with governments, Shell companies have the right and the responsibility to make our position known on any matters, which affect us, our employees, our customers, our shareholders or local communities in a manner which is in accordance with our values and the Business Principles.

b) Of employees

Where individuals wish to engage in activities in the community, including standing for election to public office, they will be given the opportunity to do so where this is appropriate in the light of local circumstances.

Principle 5: Health, Safety, Security and the Environment

Shell companies have a systematic approach to health, safety, security and environmental management in order to achieve continuous performance improvement. To this end, Shell companies manage these matters as critical business activities, set standards and targets for improvement, and measure, appraise and report performance externally. We continually look for ways to reduce the environmental impact of our operations, products and services.

Principle 6: Local Communities

Shell companies aim to be good neighbours by continuously improving the ways in which we contribute directly or indirectly to the general well-being of the communities within which we work. We manage the social impacts of our business activities carefully and work with others to enhance the benefits to local communities, and to mitigate any negative impacts from our activities. In addition, Shell companies take a constructive interest in societal matters, directly or indirectly related to our business.

Principle 7: Communication and Engagement

Shell companies recognise that regular dialogue and engagement with our stakeholders is essential. We are committed to reporting of our performance by providing full relevant information to legitimately interested parties, subject to any overriding considerations of business confidentiality. In our interactions with employees, business partners and local communities, we seek to listen and respond to them honestly and responsibly.

Principle 8: Compliance

We comply with all applicable laws and regulations of the countries in which we operate.


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Living by our Principles

Our shared core values of honesty, integrity and respect for people, underpin all the work we do and are the foundation of our Business Principles. The Business Principles apply to all transactions, large or small, and drive the behaviour expected of every employee in every Shell company in the conduct of its business at all times. We are judged by how we act. Our reputation will be upheld if we act in accordance with the law and the Business Principles. We encourage our business partners to live by them or by equivalent principles. We encourage our employees to demonstrate leadership, accountability and teamwork, and through these behaviours, to contribute to the overall success of Shell. It is the responsibility of management to lead by example, to ensure that all employees are aware of these principles, and behave in accordance with the spirit as well as with the letter of this statement. The application of these principles is underpinned by a comprehensive set of assurance procedures, which are designed to make sure that our employees understand the principles and confirm that they act in accordance with them. As part of the assurance system, it is also the responsibility of management to provide employees with safe and confidential channels to raise concerns and report instances of non-compliance. In turn, it is the responsibility of Shell employees to report suspected breaches of the Business Principles to Shell. The Business Principles have for many years been fundamental to how we conduct our business and living by them is crucial to our continued success.

Jeroen van der Veer, Chief ExecutiveAugust 2005 Shell International Limited 2005 Permission to reproduce any part of this publication should be sought from Shell International Limited. Permission will usually be given, provided that the source is acknowledged. The first edition of the Statement of General Business Principles was published in 1976. It was updated in 1984, 1988, 1990, 1994, 1997 and 2005.


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TECHNICAL APPENDIX TA19 - TENDERER'S FINANCIAL INFORMATION

1. The Tenderer and its Parent/Principal Company (where applicable) are required to submit the following as evidence of the Tenderer's credit worthiness and financial soundness:

(a) Certified copies of the Tenderer and Principal's audited report and accounts for the last 3 financial years i.e. audited financial report for 2005, 2006 and 2007.

Note: if audited financial report for 2007 is unavailable, tenderer shall provide unaudited financial report for 2007 or alternately provide audited financial for 2004.

(b) Unaudited financial statement ending September 2008 (if any)

(c) Latest bank balances declaration

2. Tenderer shall state the means by which Tenderer would finance the WORK. If financing is to be obtained from parties outside the Tenderer's own organisation, provide the following supporting documents:

(a) A statement from such parties that finance will be made available, such as:

(i) Banker's references. (ii) Letter of confirmation on financial support from Parent/Principal/other Company.

(b) Evidence of credit facilities from financial institutions.

(c) Financing from any other sources. (if any)

3. The Tenderer shall also submit details of its financial organisation and structure and of the financial links with the parent company and if applicable, the ultimate holding company.

4. The Tenderer shall state who will be providing the Parent Company Guarantee specified under PART 2 of DOCUMENT C. Tenderer shall provide a letter from its parent company of its willingness to provide such a guarantee. The guarantor shall have the technical and financial capacity to perform the WORK in the event of failure by the CONTRACTOR. Tenderer shall provide adequate information about the guarantor to demonstrate this.

Audited Financial Reports

Production Services Network (the Group) commenced trading on the 1st May 2006

and therefore does not yet have 3 years of audited financial statements.

Production Services Network (the Group) does, however, have audited accounts

for the 8 months ended 31st December 2006 and the 12 months ended 31st

December 2007.

Ernst & Young are Production Services Network’s Group auditors and it is expected

that the audited accounts for the period ended 31st December 2008 shall be

available during March 2009.

A copy of these accounts can be issued to SPEX as soon as they become available.

The Bank of Scotland funded a management buy-out (MBO) of the 25 year old

Kellogg Brown & Root (KBR) Production Services business. The financial

statements of the KBR division (Production Services) that was purchased by

Production Services Network are included within the Energy and Chemicals

division of KBR, whose financial statements are reported as part of the overall

Halliburton group financial results.


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Copies of these financial statements can be found on the Halliburton website at

www.halliburton.com.

Please refer to Attachments TA-19.1a for copies of our 2006 & 2007 audited

accounts.

Audited Financial Statement

Production Services Network prepares management accounts and presents these

accounts to the Board on a monthly basis.

Please refer to Attachment TA-19.1b for a copy of the summary September 2008

management accounts.

Latest Bank Balance Declaration

At the time of preparing these responses, the finance department of Production

Services Network are still in process of closing the December 2008 year end

accounts.

As a result the declared bank balance position of USD$45.4m is based on the

position as at 30th November 2008.

A breakdown of this balance can be found in Attachment TA-19.1c.

As described above, in 1a, a copy on the audited 2008 accounts will be issued to

SPEX as soon as they become available.

Bankers References

Production Services Network Ltd is the holding company of the Production

Services Network Group. If this work is awarded to Production Services Network

then it shall be financed through existing Group cash reserves without the need

for additional finance from external parties.

Evidence of Credit Facilities

Not applicable as the work would be financed from existing Production Services

Network Group reserves.

Finances

Not applicable as work would be financed from existing Production Services

Network Group reserves

Financial Organisation and Structure


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http://www.halliburton.com/


The Production Services Network entity that shall contract with SPEX (Shell

Philippines Exploration B.V.) in the event of an award will be PSN Production

Services Network Philippines Corporation.

Production Services Network Ltd is the ultimate holding Company of PSN

Production Services Network Philippines Corporation.

Confirmation of Issue of Parent Company Guarantee

Production Services Network Limited shall be providing the Parent Company

Guarantee should Production Services Network be awarded the SPEX provision of

maintenance and engineering services contract (MESC).

A copy of Production Services Network Ltd’s audited accounts for the eight months

ended 31st December 2006 and for the 12 months ended 31st December 2007 has

been provided. (See response to Question 1 a.

It should be noted that the Production Services Network business is mature and

operates in a stable market with significant barriers to entry. The Company has a

strong and diverse customer base with long term contracted revenues. Production

Services Network has a significant backlog balance which exceeds USD$2 billion

and the management team has a strategy for further developing the business.

The Bank of Scotland provided management with a single integrated finance

package. This finance package is a long term funding solution, with no exit

pressure.

As part of the integrated finance package, the Bank of Scotland also has a

minority equity position in the Company.

The Production Services Network business is not capital intensive as its principal

asset is the workforce, with its prime fixed asset being the headquarters in

Aberdeen. This can be found in Attachment TA-19.4

5. The Tenderer shall state the bank that will provide the Bank Guarantee specified under Part 2 of Document C. Tenderer shall provide a letter from its banker of its willingness to provide such a guarantee in the event of an award.

The Bank of Scotland shall provide the bank guarantee should Production Services

Network be awarded the SPEX work.

The Bank of Scotland details are as below:

The Bank of Scotland

3rd Floor

New Uberior House

11 Earl Grey Street

Edinburgh, EH3 9BN


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The Bank’s Reference Letter can be found in Attachment TA-19.5.

6. The Tenderer shall enter its company name and sign each page of this Appendix and any attachments appended thereto.



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TECHNICAL APPENDIX TA-20 - TENDERER REGISTRATION

1. Corporate Details

Tenderer shall complete and return the attached “Vendor Registration Form” with its tender.

Note: If tenderer have not yet set up a legal entity in the Philippines, tenderer may skip the Vendor Registration Form.

2. Affiliate(s) of Tenderer or Subcontractors (having intended responsibility or involvement in the Services)

At this stage, PSN Production Services Network Philippines Corporation

do not intend to use any Affiliates. However, if this becomes necessary

at a later time, any Affiliate would be a member of PSN’s global network.

All potential subcontractors are listed in Attachment TA-14.2

Tenderer's Affiliate/Subcontractor(s) name(s) ..............…..............…............................................. See Attachment TA-12.2 for list of Subcontractors

…………………………………………………………

If Affiliate, relationship to Tenderer ............................……...........................................

Affiliate/Subcontractor(s) intended responsibility/ involvement ………...............……………..............................….

…………………………………………………………




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Shell Philippines Exploration B.V.

SPEX Supply Chain Department19th Floor Asian Star Building

Asean Drive cor. Singapura LaneFilinvest Corporate City, Alabang

P.O. Box 171 Muntinlupa City1780 Philippines

Tel + 63 (2) 876 4000Fax + 63 (2) 850 5112Internet http://www.shell.com


SPEX Vendor Registration Form

CONTROL NO :

Create New Vendor Changes in Vendor Details Block Vendor Unblock Vendor Mark for Deletion Create Bank Master Maintain Bank Master

PART A – TO BE COMPLETED BY VENDOR :1. GENERAL DATAVENDOR NAME : PSN PRODUCTION SERVICES NETWORK PHILIPPINES CORPORATION

BLDG NAME/FLR./ ST.NUMBER : 12TH FLOOR, NET ONE CENTER 26TH STREET CORNER 3RD AVENUE CRESCENT PARK WEST BONIFACIO GLOBAL CITY, TAGUIG CITY, PHILIPPINES 1634

POSTAL CODE & CITY: 1634 TAGUIG COUNTRY PHILIPPINES

TELEPHONE NO. +63 2 819 4700 FACSIMILE NO. +63 2 816 0080, 728 7777

TEL & FAX NO FORMAT : WITHIN MANILA :632+NO OUTSIDE MANILA : 63X (AREA CODE)+NO.OTHER COUNTRIES : COUNTRY CODE AREA CODE + NO.

CONTACT PERSON & TITLE John Padmore – Senior Site Manager

EMAIL ADDRESS : [email protected]+63 43 723 0720 Office0917 626 0412 Mobile

TAX IDENTIFICATION NO. 0004-853-199-000 VAT NO. : 96-047-007131

IS VENDOR CURRENTLY INVOLVED IN CRIMINAL LAW SUIT(S)? Yes No

2. BANK DETAILS (NOT REQUIRED FOR VENDORS PAID IN PHILIPPINE PESO) CHEQUE IS PREPARED FOR PHP PAYMENT

BANK NAME : Hong Kong and Shanghai Banking Corporation

BANK COUNTRY PHILIPPINES

CITY Makati

STREET Ayala Avenue corner Paseo do Roxas

BRANCH NAME HSBG Makati

SORT CODE (UK & AU BANKS) – 6 DIGITS

FEDERAL WIRE (US BANKS) – 9 DIGITS

SWIFT CODE (OTHERS) – 11 DIGITS

Swift Code: HSBCPHMM

CURRENCY/ ACCOUNT NO: U.S.Dollar – 001-237270-130 and Philippine PESOS 000-622381-040

3. BRIEF DESCRIPTION OF WORK-/SERVICE OR SUPPLY OF GOODS TO BE RENDERED TO SPEX.

GOODS (INDICATE WHAT MATERIAL TO BE SUPPLIED ?, ETC.) √ SERVICE (PROVIDE DETAILS OF WORK SCOPE) RESIDENT OF THE PHILS NON RESIDENT OF THE PHILS.

NOTE :VENDOR MUST PROVIDE FULL DETAILS OF THE SERVICES OR MATERIALS OFFERED, EXPERIENCE & CAPABILITIES INCLUDING SAFETY & QUALITY ASSURANCE STANDARDS. COMPANY BROCHURE TO BE SUBMITTED FOR REFERENCE.

AUTHORISED BY VENDOR REPRESENTATIVE (FINANCE MANAGER, MANAGING DIRECTOR, PRESIDENT)NAME & SIGNATURE :

Alan S Gordon DELEGATION: Director


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mailto:[email protected]


DATE : 10th February 2009 TEL. NO : +65 9822 0878


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TECHNICAL APPENDIX TA-21 – HSE EVALUATION QUESTIONNAIRE

1. The Bidder shall answer all questions in the attached HSE Capability Questionnaire and submit as Appendix 21 of the TECHNICAL PROPOSAL. Incomplete return of the Questionnaire may render its Tender not being accepted.

2. The COMPANY may verify all answers given to the questions by a site visit to the Bidder’s premises and to interview the Bidder’s management and key personnel before any conclusive evaluation being made.




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TENDERER HSE CAPABILITY QUESTIONNAIRE

GUIDELINES FOR TENDERER FOR PREPARATION OF RESPONSE TO QUESTIONNAIRE

INTRODUCTION

1. The purpose of this Questionnaire is to obtain information from which we can assess the level of HSE Management System attained by your Company. See accompanying text on the summary of 8 elements of the HSE Management System.

2. Your answers should cover all your activities and not only those conducted on Shell sites.

3. This Questionnaire should be completed by your top management.

4. All questions must be answered. Please answer each question fully. We would stress the value and importance of substantiating your answers with a copy of supporting documentation as specified.

5. Your submission will be assessed and its value will be taken into consideration in the evaluation process leading to a contract award decision.

6. Following receipt of your submission, we may wish to further clarify it with your Management at a mutually convenient time. Company also reserves the right to conduct site inspection to verify the supporting evidence submitted

7. Appropriate HSE incentives will be agreed upon between Company and Contractor after the award of contract.

THE HSE MANAGEMENT SYSTEM

The questionnaire adopts the elements of a HSE management system designed to provide a feedback loop to achieve continuous improvement and which can be externally certified against an international standard. The requirements for each element are:

1. Leadership and Commitment

Management and supervision shall be regarded as being fully committed to HSE by all staff and contractors. They are to be seen as providing a leading role towards constant improvement through leadership and action planning. Management shall regularly review the suitability and effectiveness of the system.

2. Policy and Strategic Objectives

Companies shall each have an updated and signed HSE Policy.

The HSE objectives shall be challenging, understood by all and consistently incorporated in policies.

In setting objectives, management shall consider the overall risk levels of its activities and shall identify those critical operations and installations which require a fully documented demonstration that risks have been reduced to as low as reasonably practicable (ALARP). (see HEMP)

3. Organisation, Responsibilities, Resources, Standards and Documentation

The organisation and resources shall be adequate for its purpose. Responsibilities at all levels shall be clearly described, communicated and understood. Staff shall be developed following structured competency assessment and training systems. Adequate standards shall be in place and understood at the appropriate organisational levels. Preparation, review and distribution of all key reference documentation shall be adequately controlled.

4. Hazards and Effects Management Process (HEMP)

The process for those critical operations and installations shall include:

- an inventory of the major hazards to the environment and to the health and safety of people of all the activities, materials, products and services.


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- an assessment of the related risks, implementation of measures to control these risks and to recover in case of control failure.

Health risk assessment shall address physical, chemical, biological, ergonomic and psychological health hazards associated with work.

Examples of HEMP tool used include Permit to Work, Job Safety Analysis, etc.

5. Procedures and Planning

Adequate procedures shall be in place and understood at the appropriate organisational levels.

Emergency response procedures (including medical emergencies) shall be regularly tested.

6. Implementation and Performance Monitoring

HSE performance targets shall be set to ensure progression towards the long term goals of no harm to people and no damage to the environment. Performance indicators shall be established, monitored and results reported in a way that can be externally verified.

All HSE incidents and near-misses with significant actual or potential consequences shall be thoroughly investigated and reported.

7. Auditing and Review

An audit programme shall be in place to review and verify the effectiveness of the management system. It shall include audits by auditors independent of the process or facility audited.

Audit follow-up shall be timely, thorough and auditable.

8. HSE Management – Additional Features

Participation in relevant industry, trade and governmental organizations and any additional HSE features or arrangements not described elsewhere in your response to the questionnaire.


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TENDERER HSE CAPABILITY QUESTIONNAIRE

Section 1 Leadership and commitment

(i) Commitment to HSE through leadership

a) How are senior managers (General Manage/Managing Director) personally involved in HSE management? E.g. cascade HSE policy, HSE plans and expectations (including job responsibilities) to all employees and attendance at HSE events

Our Chief Executive Officer (CEO) Bob Keiller, has ultimate

responsibility for HSE in PSN. The first topic of the monthly PSN

Executive Committee meeting is devoted to reviewing the HSE

performance of the company and approving improvement

opportunities. Senior management demonstrate personal

involvement in HSE management by regularly visiting our

worksites and talking to our workforce about HSE, while promoting

our company’s core values. The PSN HSE core value is defined

below. All personnel are notified whenever the HSE policy is rolled

out and revised. The policy is posted on notice boards for

employee’s awareness and discussed in HSE meetings (also

available in the HSE Management System). HSE plans and

expectations are also discussed with employees during HSE

meetings. The management visit process is defined within the PSN

Management System.

The health and safety of our people is our greatest responsibility. This makes it our top priority with no room for compromise. Safety is at the heart of everything we do: the way we plan, the way we prepare, and the way we work. This goes beyond simply following rules and regulations. Our passion for safety extends to everyone who may be affected by our activities. We are proud of our reputation for health and safety yet we are never complacent and look for ways to improve. Learning from others is as important as sharing our own lessons with our peers. We expect every one of our people to be a leader in health and safety. It is everyone’s responsibility to assess, look for, intervene and stop any unsafe or potentially unsafe activity. Anyone who steps in to prevent a potential accident will be fully supported by the Company. To watch an unsafe act and do nothing is unacceptable.

b) Provide evidence of commitment at all levels of the organisation? (Minutes of meeting and evidence of attendance and communication e.g. email, letters or fax).

Two of the questions asked as part of the HSE culture surveys


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described below directly relate to establishing the levels of

commitment within the organisation.

The supervision/management is asked to score the “Commitment

level of workforce and level of care for colleagues”. The workforce

is also asked this question and in addition “Is the management

interested in communicating HSE issues with the workforce”.

The HSE culture surveys carried out over the past 12 months

indicate that there is a high level of commitment to HSE

throughout the organisation.

Over the past year we have conducted 5 extensive HSE cultural

surveys using industry standard tools. The surveys were carried

out with our workforce, supervision and management on our

projects in Chad, Cameroon, Singapore, Bangladesh and

Melbourne, Australia.

Using the Energy Institute “Hearts and Minds” material we have

established the safety cultures on these projects are very positive

and in addition the process also allows us to identify any areas

where improvement is required.

Within the Hearts and Minds process, HSE Culture is described as

having five levels of maturity with distinct behavioural

characteristics at each level; the five levels of Safety Culture are:

Pathological – who cares so long as we don’t get caught

Reactive – safety is important we do a lot every time we have an

incident

Calculative – we have systems in place to manage all hazards

Proactive – we work on problems that we still find

Generative – HSE is how we do business around here

The HS Culture maturity level was assessed for nine different

dimensions, for example (Commitment Level of Workers, Work

planning & PTW, and Worksite Safety Management Techniques).

Supervision and the workforce were given an assessment matrix

which gives examples of behavioural characteristics at each

maturity level and asked to choose the behavioural characteristic

which best fits their working environment, this was done for all

nine dimensions. An example of the workforce HSE culture in

Cameroon is provided in the graph below. The responses from the

workforce indicate that the HSE culture in proactive or generative.


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c)

PSN Executive Committee regularly send out emails to all

personnel covering all areas of the seven PSN core values but

primarily cover Health and Safety. The most recent example

attached was sent to all staff from the CEO Bob Keiller.

How do you promote a positive culture towards HSE matters for yourselves, and for both direct and subcontractors? E.g. training and recognition plan, money and time for training and safety campaigns, etc. Provide a list of proposed activities that senior management is involved that promote positive culture.


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c) How do you promote a positive culture towards HSE matters for yourselves, and for both direct and subcontractors? E.g. training and recognition plan, money and time for training and safety campaigns, etc. Provide a list of proposed activities that senor management is involved that promote positive culture.

Every employee working for PSN has received a “Joining the Network”

booklet that contains information on the way our company is run, what we

do and how we do it. It outlines behaviours and values that we expect

from everyone in our Network.

“The health and safety of our people is our greatest responsibility. This

makes it our top priority with no room for compromise” – extract from

Joining the Network.

All PSN leadership and supervision encourage and support a positive

safety culture in several ways:

Management visit schedule – where management visit work sites to

talk with the workforce on safety issues and promote the PSN core values.

Participation in safety meetings

Supporting the Safety Representatives.

Focussing on personal attitudes values and behaviours

For subcontractors working for PSN, an HSE induction is given where the

core values and HSE expectations are explained in detail. In addition,

where required, in-house HSE training is also provided to the

subcontractors e.g. PTW system, Risk Assessment etc. Managers do

regular visits to contractor’s worksite to verify whether HSE standards are

being adhered to or not.


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Section 2 Policy and Strategic Objectives

(i) HSE policy documents

a) Does your company have an HSE policy document? If the answer is YES please attach a copy.

Health and Safety is the first and highest of seven core values in PSN’s

business strategy. It is at the heart of everything we do; the way we plan,

the way we prepare, and the way we work. Our passion for safety

extends to everyone who may be affected by our activities. We expect

every one of our people to be a leader in health and safety. Anyone who

steps in to prevent a potential accident is fully supported by the

Company. “To watch an unsafe act and do nothing is

unacceptable”. Our HSE policy is communicated to all employees

during their induction and is posted on notice boards at all sites where we

operate. The HSE Policy is also available on the company intranet. Our

primary goal as defined in the policy is to sustain an incident free work

environment. We have included below a copy of our corporate Safety

Policy.

Figure 1.1 – HSE Policy


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b) Who has overall and final responsibility for HSE In your organisation?

Robert Keiller, Chief Executive Officer (CEO) has final responsibility

for PSN Global health, safety, security and environmental matters.

c) Who is the most senior person in the organisation responsible for this policy being carried out at the premises and on site where his employees are working? Provide name, title and experience.

As stated in section (b) above PSN CEO Robert Keiller has overall

responsibility to ensure that the HSE policy is observed but this

responsibility is delegated to the Business and Assignment

Managers.

For the SPEX contract the assignment manager has the

responsibility to ensure that the HSE Policy is observed by all PSN

employees and subcontractors.

Name: Alan Russell

Title: Assignment / Project Manager

Experience: Alan has 16 years Oil and Gas Industry experience

with 10 years Shell specific knowledge and experience in

Maintenance Engineering Management, culminating in the role of

Delivery Manager for Shell Central Assets North Sea (UK)

maintenance, engineering and major projects.

d) Are HSE Key Performance Indicators (KPIs) included in your HSE plan, incorporating incentive schemes to motivate employees? If YES, please provide HSE KPI list

Key Performance Indicators (KPI) are included in the HSE plans of various

projects. The KPIs are agreed with the client at the beginning of the year

and when achieved at year’s end, a monetary bonus is shared by the


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employees. Attached are the KPIs for one of our projects.

For samples of typical project KPI’s, please refer to Attachment 21(i)d,

located in Section 2 of TA 21.1 HSE Evaluation Questionnaire.


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e) Do you have a drugs and alcohol policy in your organisation? If so, does it include pre-employment and random testing?

Yes, the policy includes pre-employment and random testing, the

relevant section of the PSPC Tabangao Refinery Drug and Alcohol

Policy is shown below.


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(ii) Availability of policy statements to employees

a) Itemise the methods by which you have drawn your policy statement to the attention of all your employees?

At all PSN work locations new employees or visitors receive a HSSE

induction. The induction covers the basic information that the

individual requires to remain healthy, safe and secure and compliant

with our environmental standards while working or visiting the

location. The induction also covers PSN policies, processes and

house rules at the facility. The Policy is also posted on notice boards

and translated into the local language as required.

b) What are your arrangements for advising employees of changes in the policy?

Employees are informed of changes to our policies via email, notice

boards and the PSN intranet-based management system. Where

employees have no access to electronic media the changes to the

HSE policy are communicated to them at scheduled HSE site

meetings.


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Section 3 Organisation, Responsibilities, Resources, Standards and Documentation

(i) Organisation - commitment and communication

a) How is management involved in HSE activities, objective-setting and monitoring?

PSN management are constantly involved in HSE activities through

management visits, involvement with risk assessments, attendance

at tool box talk and other HSE meetings.

PSN management develop HSE objectives and targets annually. Our

objectives and targets are based on our strategic objectives and are

set at Corporate, Regional, Business unit and project level. An

example of the PSN International Operations HSE improvement Plan

can be found below.

Figure 3.1 – HSE Improvement Plan

Management are responsible for HSE performance monitoring.

Assignment managers are required to submit to head office in

Aberdeen a monthly report that contains the project incidents,

leading and lagging indicators and performance against their HSSE

Improvement Plan.


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a) How is management involved in HSE activities, objective-setting and monitoring?

b) How is your company structured to manage and communicate HSE effectively?Provide your company organogram and HSE Department organogram.

Figure 3.2 - PSN Company Organisation

Figure 3.3 – HSE Department Organisation


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HR Director





Duncan SkinnerCFO




HR Director





Duncan SkinnerCFO




The structure of the HSEQ organisation allows us to maintain the HSEQ

infrastructure and delivers the support the business requires and allows

us to manage and communicate HSE effectively.

We have defined roles and responsibilities for all members of the

“corporate” HSEQ team.

Roles and responsibilities for deployed HSEQ people are defined within

project documentation.

c) What provision does your company make for HSE communication meetings? Please attach a copy of minutes of HSE communication meeting

Our two-way communication of relevant safety information within PSN is a

prerequisite of our excellent safety performance. We have an established

safety meeting process that allows full participation of all employees.

Communication of relevant safety issues and information with office-based

personnel is via one or more of the following meetings:

a) Weekly or bi-weekly town hall meeting where all personnel attend

b) Monthly management operations meeting

c) Monthly office Health and Safety Committee meeting

d) Monthly Excom meeting

We hold worksite safety meetings to ensure all relevant safety issues and

information are communicated with personnel as follows:

a) Job start meeting, such as tool box talks, and pre-job safety brief

b) Special work activity meetings as required

Worksite safety meetings are designed to cover such things as:

Permits

Simultaneous operations

Interfaces

Job hazards

Alerts

Workscope

Minutes of safety meetings are recorded on the form Pre-start Safety

Meeting minutes.

We encourage all site personnel, including the management team, to

attend safety meetings where practicable. Our meetings are designed to


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provide a forum for personnel to discuss safety issues and be informed

about safety trends and corporate direction.

An example of HSE meeting minutes from one of our projects can be found

overleaf at Figure 21.3.4.

Figure 21.3.4 – Management HSE Meeting

From James McDaid Date 21st September 2008

Designation Installation Manager

Period Covered

September 2008

Location Conference Room

Health/Safety Moment: Safety moment was presented on having proper precaution to prevent incident

1. Review of Department HSE Meeting Minutes and Concerns Raised

Issue / query raised in HSE Meetings

Raised Action Agreed / Status

Action Party

Target Date


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d)

Examine structural integrity of the flare and telecom tower

17th December 2007

(Business Services meeting)

For flare and tower - maintenance

Strategy is available

C&P department is trying to find a suitable contractor

Maintenance Supervisor

20th October 2008

Training for welders and grinders

24th December 2007

(Operations and maint HSE meeting)

Identify and utilize suitable training provider to educate the workforce in upcoming months

Training and Competency Manager

November 2008

Organizing defensive driving training for Sangu drivers

September 2008

(Management HSE meeting)

In house training will be organized in quarterly basis

HSEQ Now Onward

2. Review of Incidents since last meeting and opportunities for improvement:

Three incidents were reported during the month of September 2008.

Sangu incident 20/08 (Road traffic incident)

At around 1615 hours on 23rd September, Sangu Mobile 2 (Sangu contracted vehicle) was on the way to Chittagong city to drop the Sangu personnel at their home. During the incident the Sangu vehicle was heading towards other side from GEC Factory end of the GEC circle. Suddenly a 3-wheeler vehicle, which was coming from the right lateral road of Sangu vehicle towards the intersection, attempted (illegally) to take a right turn to go to Central Plaza shopping centre and collided with Sangu vehicle. Sangu driver stopped the vehicle immediately but failed to prevent the accident


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Do your supervisors carry out weekly HSE meeting and daily Toolbox meetings for key activities? Are hazards and risks identified, reviewed and discussed during these meetings? If the answer is YES, please provide minutes of meeting and Log-book.

Sangu Incident 21 – 08 (Near miss )

A commercial vessel named Volisas Power informed control room

of Sangu Operations that due to the engine failure she was

drifting towards 500 meters of the sub sea pipeline. The vessel

conformed that she can't raise her anchor and requested to help

her to move away from the sub sea pipeline location. The

situation was informed to the Chittagong port authority and

request has been made to send a tug to assist the vessel. The

port authority declined as they don't have any vessel at that

moment. Later at 2355 hrs a vessel called Dynamic started from

Chittagong port location to assist Volisas Power. At 0100 hrs of

the following day Dynamic reached to the location of Volisas

Power and drifted her 2.5 nautical miles away from Sangu sub


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sea pipeline.

The Sangu incident statistics of 2008 stands as follows:

First aid case – 2

Near miss – 3

Property loss – 1

Property damage- 3

Road traffic incident – 3

Environmental incident – 3

Non work related – 1

General incident – 3

TRCF: 0

√ LTIF: 0

3.0 Review of CAR index

All the items of the CAR index were reviewed. At present 2

(two) action items are there at the CAR index.

Item – 1: Upgrade produced water treatment plant (Origin-

URS report)

Item – 2: Exposed (import) gas pipeline repair. (Origin Sangu

incident 10-07)

4.0 Review of Sangu HSE plan and monthly action plan

It was stated that Sangu had made 72 % progress against

the target of 72 % in terms of closing action items of HSE plan

of 2008

It was also mentioned that monthly HSE action plan was on

target


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5.0 Review of CARE card trending

It was mentioned that a total of 70 CARE cards were

submitted so far in the month of September “lack of awareness

and attitude” was the biggest contributor.

6.0 Environmental objectives of 2008 and CAR of CAR of ISO

14001 surveillance visit

All the environmental objectives of the 2008 and task

carried out so far regarding CAR of ISO 14001 surveillance

visit were discussed in brief.

5. HSE Themes of the month of September

Zero PTW target.

6. Health issue to be discussed

Workstation assessment.

Peptic ulcer awareness

7. Upcoming activities

• EMS internal audit

• Auditing service providers

Finalizing health promotion activities for the upcoming months

AOB:

List of Attendees:

Peter Walton ;James Mcdaid ;Babur Khan; Khaled Faruk; Tridib

Ghose; Mohsin Chowdhury; PK Rakshit; Nirupam Chanda; Rakibul

Kamal


d) Do your supervisors carry out weekly HSE meeting and daily Toolbox meetings for key activities? Are hazards and risks identified, reviewed and discussed during these meetings? If the answer is YES, please provide minutes of meeting and Log-book.

Weekly townhall meetings are held in various PSN projects while in others

a Daily Morning Meeting is held. These meetings are attended by respective

departmental managers along with the project manager where all

activities for the day and upcoming ones are discussed. The first topic

of the agenda is always HSE.

Before any activity commences, a toolbox meeting is held by the

supervisor along with the work party. During the pre-job toolbox

meetings, supervisors discuss in detail the hazards and risk of the activities to be undertaken including the measures to mitigate them.

e)

A copy of recent toolbox talk topic along with the attendance logs

for 3 PSN contracts in Singapore can be found in Attachment

21.3.i.d.

Do you have written HSE Roles and Responsibilities of General Manager/Managing Director, Supervisors, HSE officers and employees?If YES, please provide roles & responsibilities chart or description.

We have defined roles and responsibilities for all Directors,

Managers, Supervisors, HSE officers and employees.

Roles and responsibilities for deployed HSEQ people are defined

within project documentation.

Please refer to Attachment 3(i)e for a chart showing roles and

responsibilities from one of our projects.


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(ii) Competence and Training of managers/ supervisors/senior site staff/ HSE advisers

a) Have the managers and supervisors at all levels who will plan, monitor, oversee and carry out the work received formal HSE training in their responsibilities with respect to conducting work to HSE requirements?

If YES please give details. Where the training is given in house, please describe the content and duration of courses. Provide competence/training matrix for managers, supervisors and HSE advisor and HSE training matrix for all other employees and evidence of attendance implemented to date.

For personnel promoted to supervisory positions, we enrol our

supervisors on the following programme of training. This follows the

Supervisory Skills model provided by the Engineering & Construction

Industry Training Board (ECITB).

PSN has initiated a verification of Safety leadership capabilities of

senior staff on all projects. This process has been included as an

action for implementation in our 2009 HSE Improvement plan.

Supervisory Management Training & Development Programme

This programme of modules, available to PSN through the ECITB levy,

provides onshore and offshore personnel with comprehensive

supervisory training.

3 Day Foundation Module

Across three days, the initial module offers an introduction to the

following areas:

Learning and management

Achieving consensus and assertiveness

Motivation theory and application

Time management and delegation

Quality processes and continuous improvement

Effective communication and listening

Team meetings

Legal and HSE responsibilities

Employment law and practice

Industry Associations


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4 Day Managing Team and Individuals

This module is split into 10 sections and, across the four day period,

delegates will learn about the following areas:


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Section Name Learning Objectives of Section

1 Personal Development Delegates learn to assess their

competence and identify their

development requirements

2 Introduction to Emotional

Intelligence

Delegates gain an understanding of

emotional intelligence and its positive

impact on the working environment

3 How to use your

leadership style

effectively

Delegates are asked to analyse their

own leadership styles as well as those

of others in order to understand the

influence these styles have on others

4 Effectively managing

your team’s performance

Delegates will learn to recognise and

deal with stress, understand a diverse

team and how to gain their

commitment through influence and

creditability and how to solve problems

5 Selecting the right people This section explains the recruitment

and selection process including legal

implications, labour planning and the

impact of diversity and equality

6 Persuading & influencing

people

Delegates learn key negotiating and

mediation skills to reduce potential

conflict and resistance

7 Performance

Management

This section describes the importance

of how to manage your role as a

supervisor in a formal appraisal system

as well as advising on the value of

SMART objectives and how to conduct

an appraisal meeting

8 Effective Business Writing Preparation of well-structured reports

and developing business language

skills are discussed in this section


4 Day Achieving the Task




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9 Training & Development This section advises delegates on

identifying and analysing training

needs and skills gaps, understanding

the learning cycle and how people

learn, the effectiveness and measuring

the effectiveness of training and the

role of coaches in training

10 Getting your message

over in public

Delegate will gain an understanding of

how to present information effectively

and how to deal with diverse audiences


1 Managing Change Delegates learn to develop strategies

to deal with change including

identifying barriers and risks. This

section covers the importance of

communicating change effectively and

monitoring the impact of change

2 Managing Quality Delegates will gain an understanding of

quality of products, services and

processes and the impact they can

have on this. The section also advises

delegates on total quality management

and carrying out audits

3 Understanding Budgets This section introduces the

fundamental concepts of accountancy

and how these concepts are employed

in business. Delegates will be given

guidance on staying within budget and

how budgets are used to meet financial

objectives

4 Project Planning &

Control Part One

This section introduces delegates to

the principle of Pareto and gives

examples of applying this to project

planning and control


4 Day IOSH Training Course – Managing Safely




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5 Project Planning &

Control Part Two

Building on the first part of this section,

delegates are shown the benefits and

limitations of some of the tools utilised

in project planning and control. This

section also discusses network analysis

and provides training on statistical

techniques


1 Understanding your legal requirements

Delegates are asked to review their management responsibilities and accountability for and the key parts/regulations of Health & Safety

2 Assessing & controlling risk

This section teaches delegates to define risk management and perform risk assessment. It covers the methods for reducing risk and the impact of individuals’ behaviour on risk management

3 Identifying & controlling hazards in the workplace

In this section delegates develop an understanding of the regulations dealing with workplace hazards and how risk assessments can help control hazards including stress

4 Investigating accidents & incidents

Delegates learn the theory behind accidents and review accident investigation including lessons learned and making recommendations for the future

5 Managing Performance Delegates are provided with an understanding of measuring Health & Safety performance and how to manage this performance with both active and reactive monitoring

6 Protecting our environment

This section provides an understanding of global environmental responsibilities, industrial and commercial impacts on the environment and the importance of Environmental Management Systems


In addition, supervisory roles have additional training course

requirements as outlined on the project training matrices. Our training

matrices reflect the requirements of each project and will be tailored to

the client and the working environment. We can clearly demonstrate the

required progression from trainee to professional and supervisor levels.

This training is provided by external training providers approved to

deliver the specific training packages or may be delivered internally

depending on the subject matter of the course.

Records of completion of training is logged within the PSN HR database.

For international projects, each manager is responsible for ensuring

records are maintained for training and assessement and verification of

competance.

Supporting documents including training matrix and attendance sheets

are attached at Attachment 21.3(ii).a.

(iii) Competence and General HSE training


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a) What arrangements does your company have to ensure new employees have knowledge of basic industrial HSE, and to keep this knowledge up to date?

All new employees will receive a PSN induction. This introduces

employees to PSN and our core values, management systems and

organisational arrangements. This PSN induction will then be followed

by a project specific induction that details arrangements specific to

their project such as client and sub contractor details. It will also

include information about their new site and provides them with an

overview of the health and safety mechanisms and arrangements in

place, the particular office risks present, and what is expected of

them.

A typical project induction agenda will include the following:

1. Fire Safety Arrangements – Alarm sound, testing details, fire

assembly points, fire wardens, extinguisher locations and

emergency numbers

2. First Aid Arrangements – First aider contact details

3. Office Evacuation Procedures

4. Company House Rules

5. Safety Representatives and Committees

6. Housekeeping

7. Hazard Observation System – introduction and instructions

8. Specific Workplace Hazards – can include temporary examples

such as renovation and building works.


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The project induction presentation will be followed by an individual tour of

the employees work site with their line manager to explain local

emergency routes, exits and the location of firefighting equipment. All

new members of staff will also be given a green lanyard for their security

pass that designates them as new to, and unfamiliar with, the building.

Site Induction/Orientation

Safety promotion and awareness are part of our ‘continuous performance

improvement' culture, part of continually looking for better and safer

ways of executing our work.

On site, HSE promotion and awareness will be implemented as follows:

1. Initial Site Induction - All project personnel will be required to

undertake a specific site induction prior to the commencement of

work activities. The site inductions will cover the following areas

as required:

HSE Expectations

Project Overview, organisation, objectives and work scope

HSE Regulatory responsibilities and Community Concerns

Permit to work appreciation

Overview of HSE Management System (including this plan)

Occupational Health

Management of HSE Behaviours (Hearts & Minds)

Communications (e.g. Toolbox Meetings)

Manual Handling

Hazard Identification (HOC cards)

Incident reporting and investigation

Personal Protective Equipment (Selection, Use and

Maintenance);

Risk Management (e.g. JSAs and Stepback 5X5)

Emergency Response Plan;

Smoking Policy

Competency Assurance

Waste Management

Emissions and Spills to the environment

Environmental Laws and Regulations


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b) What arrangements does your company have to ensure new employees also have knowledge of your HSE policies and practices?

At all PSN work locations new employees or visitors receive a HSSE

induction. The induction covers the basic information that the

individual requires to remain healthy, safe and secure and compliant

with our environmental standards while working or visiting the

location. The induction also covers PSN policies, processes and house

rules at the facility.

New PSN employees are required to be familiar with the PSN

Management System and are provided with formal MS training as per

the attached Process Map, Management System Training and

Awareness MNT-PCM-004.


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c) What arrangements does your company have to ensure new employees have been instructed and have received information on any specific hazards arising out of the nature of the activities? What training do you provide to ensure that all employees are aware of company requirements?

At the outset of a piece of work, the training programme is devised

taking into account the requirements of the site / installation. For

example:

Induction requirements (PSN, Client, site and installation requirements

incorporated)

Site / Installation specific training:

Permit to work

Isolation and reinstatement

Confined space entry

Hazard Awareness:

Asbestos

Nitrogen

LSA / radiation

Noise and vibration

Emergency Requirements:

First aid

Fire fighting, fire warden

Emergency team (lifeboat crew, stretcher bearer etc)

The training plan defines the delivery method for the specific piece of

learning, for example taught courses, computer based training, one to

one instruction, and open learning. The duration can range from one

hour lunch and learn sessions, to long-term development

programmes.

The training plan is revised on a regular basis to ensure that new

personnel are incorporated, as well as changes in policy and

legislation, and the changing needs of the operation.

With respect to site safety training, the course content is tailored to

match the individual requirements of the specific plant or facility.


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d) What arrangements does your company have to ensure existing staff HSE knowledge is up to date? (If training is provided in-house please give details of content)

We review the effectiveness and continued suitability of our training

programs by a combination of formal audit and ongoing review. At a

company level, the content of our safety training is reviewed and set

on an annual basis to match the business requirements.

At an individual project or site level, safety programs are subject to

continuous review to ensure compatibility to current project/site work

scopes, with annual audits for compliance.

At the individual level, safety needs and competence levels are

continually assessed and updated to suit day-to-day operational

requirements.

At PSPC Tabangao Refinery in conjunction with Shell, PSN have

developed a HSE training facility to enable effective HSE learning

through an interactive and interesting training with practical

methodology, details of which are on the following flyer at Figure

21.3.6.


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e) What arrangements does your company have to ensure job competency for those jobs involved in managing HSE hazards and risks.

In accordance with our Competency Development and Assessment

Policy HRM-POL-016, and our Competency Assurance (Offshore &

Sites) Procedure HRM-PCM-021, we implement a training and

competency assurance programme for offshore and site-based

personnel.

This programme ensures personnel are competent to carry out their

work and that competency levels are both met and maintained in line

with the specific requirements in terms of site familiarisation, trade

disciple and behaviours.


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We provide competent personnel to perform all project work. The process

of identifying competent personnel begins with the selection process which

includes competency assessments and is maintained on an ongoing basis

by the competence assurance procedure.

The starting point for assuring competence is contained within our

competence assessment and assurance processes for a) trades and

technical personnel, and b) engineering personnel. These processes

involve the initial step of identifying role-based competence standards.

This is achieved in part by applying the principles of our HSE screening

process.

To support the above and help maintain HSE performance, we ensure that

ongoing and periodic refresher training is given to employees. This will

closely match the hazards and risks identified in the workscope. Training

will fall into two main categories. Firstly, general health and safety training

to ensure that employees are kept up-to-date with health and safety best

practice. Secondly, specific training to cover hazards and risks identified in

the work scope.

With regard to sub-contractors, PSN adopt a rigorous Vendor Evaluation

and Management process. A key element of the process is for sub-

contractors to demonstrate to PSN that they have the appropriate

arrangements in place to effectively manage and assess the competence of

their employees.

Meetings with key sub-contractors are held regularly, at which time HSE

performance is reviewed. Should performance be deficient a plan for

improvement will be agreed detailing actions, actionees and timescales.

PSN ensure HSE performance by recognising that all areas of the business

can have an impact on performance. Our processes and procedures are

developed such that HSE issues are given due consideration at all stages of

work scope development including, recruitment, planning, procurement,

engineering, implementation, audit and review, etc.

In support of this, an annual HSE Improvement Plan is developed and

implemented. This is designed to deal with systemic weaknesses identified

over the previous period and to address any forthcoming issues that will

have an impact on operations.


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f) Are the personnel carrying out those HSE critical activities/roles (as per your HSE Plan) including subcontractors, identified, adequately equipped and competent?If YES, please provide list of resources required with their qualifications.

Our response to question section 3(iii) e describes the PSN

Competency Assurance Process that ensures the competency for the

role is defined and the employee or subcontractor identified for the

role meets or exceeds the expected competency levels.


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(iv) Specialised training

a) How have you identified areas of your company's operations where specialised training is required to deal with potential hazards? (Please itemise and provide details of training given).

We review the effectiveness and continued suitability of our training

programs by a combination of formal audit and ongoing review. At a

company level, the content of our safety training is reviewed and set

on an annual basis to match the business requirements. The need for

specialised training is usually identified through our standard review

process but can be identified by any individual employee as the need

arises.

Typical specialised HSE training includes:

Site / Installation specific training:

Permit to work

Isolation and reinstatement

Confined space entry

Hazard Awareness:

Asbestos

Nitrogen

LSA / radiation

Noise and vibration

Emergency Requirements:

First aid

Fire fighting, fire warden

Emergency team (lifeboat crew, stretcher bearer etc)

b) If the specialised work involves radioactive, asbestos removal, chemical or other occupational health hazards, how are the hazards identified, assessed and controlled?

See section 4: Hazards and effects management, paragraph (i).

(v) HSE qualified staff - additional training


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Does your company employ any staffs who possess HSE qualifications that aim to provide training in more than the basic requirements?

The number of full time safety officers employed by PSN is

approximately 80. They are generally qualified to the level which

allows membership the Institution of Occupational Safety and Health

(IOSH) or any international equivalents. It is recognised that we have

personnel at various level carrying out HSE Administration through

HSE Professional, Senior HSE Professional and HSE Manager Positions.

The specific qualification and experience requirements depend to the

criteria for the specific job they are filling.

Does your company employ any staffs who possess HSE qualifications that aim to provide training in more than the basic requirements?

These advisors primarily report to the assignment manager while functionally reporting to the Corporate HSE team.

Several of our safety advisors are incident investigation/root cause analysis tutors and can provide training to staff and clients. We also have staff trained in delivering behavioural safety workshops, driver training and assessments, HSE auditing and various other specialist subjects.

(vi) Assessment of suitability of Subcontractors/ other companies


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a) How do you assess:

i) HSE competence?

HSE Competence

PSN have in place a comprehensive process for the selection and

approval of subcontractors. A list of subcontractors is maintained and

evaluated by the procurements and subcontracts team.

When dealing with a main subcontractor, an interface document is

produced to define communication channels, management system

primacy and detail roles and responsibilities. Our main subcontractors

are also expected to have in place a comprehensive HSE

improvement plan with aligns with PSN and our Operators plan.

Based on the degree of use, level of risk and value of the contract, a

number of our main subcontractors are audited based on an annual

programme of HSQ audits. Corporate audits are conducted as well as

at a project level. Audits are conducted against at predetermined

checklist and include reviewing progress against HSE plan.

From any audit conducted actions are issued and progress to close out is monitored.

ii) HSE record of the Subcontractors and companies with whom you place contracts?

ii) HSE record of the Subcontractors and companies with whom you place contracts?

b)

Subcontractor HSE Record

PSN operates an approved list of suppliers, vendors and sub-

contractors which has been developed over a substantial period of

time.

For new vendors and sub-contractors an assessment will be made of

their suitability using our evaluation form which measures experience

and performance.

Where do you spell out the standards you require your Contractors to meet?


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b)

c)

Completion of this assessment is required for inclusion on the

approved list. The evaluation form asks for details that allow us to

evaluate the subject’s HSE competence and performance. The HSE

section is subject to review by an experienced HSE professional. The

reviewer makes a qualitative decision whether to approve the supplier

or not and whether a follow up is required. The broad basis of the

assessment is the extent to which:

The supplier’s safety management system (SMS) aligns with

recognised standards. (HSG65, OHSAS 18001, BS8800 etc.)

The supporting evidence indicates key personnel have had

necessary training and experience in HSE matters, given the

nature of the service being provided

The supplier’s SMS has been assessed by an authoritative third

party

Safety performance of the supplier is better or worse than the

industry norm

Previous experience of the supplier’s performance and

competence is satisfactory

Where follow up is required, we request that the supplier provides the

necessary additional information. The original reviewer then

evaluates this.

Where do you spell out the standards you require your Contractors to meet?

We expect our contractors to meet or exceed our HSE Policy

requirements, our core values and to adhere to relevant work

practices and procedures.

These requirements are communicated to our contractors during pre-

mobilisation meetings, site inductions and ongoing meetings to review

work and HSE performance.

How do you ensure these standards are met and verified?

At regular intervals our subcontractors are invited to meet with our

contract sponsor to review their performance on the contract.

Adherence to HSE standards is a key agenda topic.

Our contractors’ activities are regularly included in local and corporate

audits which provide assurance that our standards are being met.


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(vii) Standards

a) Where do you spell out the HSE performance standards you require to be met?

During the induction process. See Section 3.(ii): Competence and

General HSE Training.

b) How do you ensure these are met and verified?

See section TA.21.7: Auditing, Review and Certification

c) How do you identify new industry or regulatory standards that may be applicable to your activities?

PSN maintains a library of all regulations relevant to our industry. Our

process, Identification and Evaluation of New and Amended HS&E

Legislation and Guidance HSQ-PCM-026 (attached), ensures that PSN

maintains up-to-date with changes regulations and where required

prompts necessary change to our management system process.

d) Is there an overall structure for producing, updating and disseminating standards?


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d) Is there an overall structure for producing, updating and disseminating standards?

The controls for producing, updating and disseminating PSN standards are

described in the Management System Document Control Guidelines IMT-

PCM-001. This document contains links to the PSN Document

Control Process, Document numbering and Revision Control

Guidelines and the Process Owners Guidelines.

Section 4 Hazards and Effects Management

(i) Hazards and effects assessment


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a) What techniques are used within your company for the identification, assessment, control and mitigation of hazards and effects? (Provide HSE case for your key critical activities.)

PSN employs a range of processes and techniques directed at the

identification, assessment, prevention, control, and mitigation of

major hazards and their effects.

Our techniques are used sequentially as follows:

Safety engineering screening. We do this to identify

hazards resulting from the proposed change or modification

and to define the safety engineering input required, as well

as inform other disciplines of the safety issues associated

with the change. It is essential that the safety engineering

screening is prepared at the start of the job, and issued for

information to other disciplines involved. This document

should be revised and re-issued in the event of any changes

to the scope of the project

Implementation of risk assessment techniques (e.g.

HAZID, HAZOP, SIMOPs) We identify these at the safety

engineering screening stage, considering each phase of the

life of the proposed engineering change or modification,

including construction, operation, maintenance and

decommissioning

Mitigation of the identified hazards with inherently

safer design. We do this where hazards cannot be

eliminated by design. This step also incorporates

identification of the most appropriate control measures, and

demonstration that the ALARP standard has been met. Our

approach to selection of the most appropriate control

measures is based on the preferred hierarchy of risk

controls, incorporated into regulations

Workpack safety screening. This enables identification

and mitigation of HSE and occupational health risks, directly

associated with execution of the workscope in accordance

with our risk assessment procedure. The screening process

categorises activities into one of three risk levels: high,

medium or low.

The risk level of an activity is decided upon by an evaluation

of the probability of an undesirable event occurring and the

consequence that the undesirable event would have. We use

a risk assessment matrix for this purpose


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b)

The risk level associated with an activity, following the HSE

screening process, dictates the risk management process that will

be applied. Risk management will be commensurate to the risk

level presented, as follows:

High Risk Activity - Detailed hazard analysis carried out

using risk assessment matrix

Medium Risk Activity - Job safety analysis

Low Risk Activity – Tool box talk conducted at site

The procedure for task risk assessment is detailed in the

PSN Management System.

These assessments, generically known as Task Based Risk

Assessments (TBRAs), are performed by the personnel who will

actually be performing the work, with assistance from the HSE

advisor where appropriate. The TBRA will be referred to during the

preparation of the permit-to-work if any task-specific hazards or

safety requirements have been identified.

Prior to work commencing, we undertake a preliminary

assessment of the health and safety hazards likely to be present

and encountered during the project. This hazard register is

reviewed on a regular basis to ensure its continued suitability and

effectiveness.

Finally, we recognise that individuals are most at risk from injury

and they are also most likely to spot any remaining hazards in the

workplace. PSN operates a simple hazard observation system

that aims to identify and correct potential health and safety issues

before the harm is realised. Staff are encouraged to intervene,

correct and report what they have observed. The results and

findings are then communicated around the organisation.

The PSN Central Studies Group, led by the Chief Safety Engineer

provide support to our existing customers in the management of

their major accident hazards, fully assessing their likelihood and

consequences and recommending the hazard management

measures required.

Our Safety Engineering team have expertise in all areas of hazard

management from the preparation of design philosophies, at all

stages of a project, through to the quantification of risk using

quantitative risk analysis techniques. This includes developing,

issuing and updating Safety Case for our customers. PSN is not

the duty holder for any on or offshore installation and therefore do

not prepare and submit Safety Cases on behalf of PSN.


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Do you keep an inventory of HSE key (critical) activities against identified hazards, including subcontractors? Are steps identified to manage those risks, with responsible parties and required resources?


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b)

c)

Do you keep an inventory of HSE key (critical) activities against identified hazards, including subcontractors? Are steps identified to manage those risks, with responsible parties and required resources?

Yes – Prior to starting any worksite activities, PSN prepare a

Hazards, Effects and Controls register. These are applicable to our

subcontractors and are communicated during the induction

process to all personnel.

Is your Company actively promoting the usage of Accident Control Technique, ACT (or other similar techniques such as Unsafe Act Auditing (UAA) or Safety Training Observation Programme (STOP), and/or other equivalent proactive tools? If YES, please provide ACT program or other proactive tools.

PSN’s own proactive HSE observation tool is called the CARE card

system (Changing Attitude for Risk Elimination). The CARE card is

used to highlight any unsafe acts or conditions and also to record

positive behaviours. This CARE card system is implemented in

majority of the PSN projects, where as in other projects, the client

own observation process is used.

d) Do you keep a list of work or activities, which require Permit To Work (PTW) and/or Job Hazard Analysis (JHA)? If YES, please provide PTW & JHA procedures.


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d) Do you keep a list of work or activities, which require Permit To Work (PTW) and/or Job Hazard Analysis (JHA)? If YES, please provide PTW & JHA procedures.

In the Permit to Work (PTW) manual of each project, there is a list

that indicate which activities require a permit and what type (Hot

or Cold). This list varies from project to project depending upon

the nature of work undertaken and hazards. Following is an

excerpt the PSN PTW guideline and a specific projects Permit to

Work Manual.


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In all PSN projects either a Risk Assessment or a JSA process is in

place. There is a list of activities (in some projects all activities)

which require RA/JSA, again that varies from project to project.

Following is an excerpt of PSN Risk Assessment process.


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(ii) Exposure of the workforce

What systems are in place to monitor the exposure of your workforce to chemical or physical agents?

We have industrial hygiene programmes to monitor exposure of

the workforce to chemical and physical agents. The following

procedures will be used to manage risks of this nature on the

SPEX Project.

Chemical agents - Control of Substances Hazardous to

Health (COSHH)

PSN COSHH procedures are documented in our Hazard Substance

Management HSQ-PCM-030 guidelines. Application of these

procedures ensures that all hazardous substances are assessed

and that suitable controls are put in place to control the risk from

exposure. These procedures start at the HSE screening phase of

the project, whereby hazardous substances are identified and

Material Safety Data Sheets (MSDS) are obtained. From the

MSDS, we carry out detailed COSHH assessments on the tasks

that involve the use of the hazardous substances.

Control measures are put in place, which are monitored for

effectiveness through the following:

Weekly audits of Permit-to-work (those that include the use

of hazardous substances)

Weekly area safety inspections

Use of lead & lag indicators (specific to COSHH)

Monthly audits of activities (by management)

Discussion at weekly safety committee

Physical agents: Hand Arm Vibration (HAV) Policy

Our policy and procedure on HAV contains the following:

Roles and responsibilities of management and supervisors in

relation to HAV control

Assessment of equipment for vibration levels (only assessed

equipment which has been tested using an accelerometer is

allowed onto our projects)

Marking of each item of equipment with the vibration level and

the safe working time

Personal exposure sheets, which are completed by operators at

the end of each shift to monitor exposure time for the shift


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Personal health screening for each operator – if the screening

identifies a health issue, the person is referred to our

occupational doctor


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This is described in detail in Hand Arm Vibration procedure ref HSQ-PCM-

017

Noise exposure – usually follow the client noise exposure procedure,

which is written into the relevant section of the project interface

document.

(iii) Handling of chemicals


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How is your workforce advised on potential hazards (chemicals, noise, radiation, etc.) encountered in the course of their work?

We have a structured method for the identification of hazards and

the evaluation of risks associated with our work. Chemical agents

other hazardous substances are identified through the use of the

Health, Safety and Environmental screening procedures ref ENG-

PCM-003 We then carry out a formal risk assessment of the use of

these substances, in accordance with the PSN HSE Risk

Assessment process ref HSQ-PCM-011.

Chemical agents other hazardous substances are identified

through the use of the Health, Safety and Environmental

screening procedures. The assessments are sent electronically to

SYPOL (a service that we subscribe to on a contract basis).

SYPOL then return our assessments and data sheets with their

any additional information that may be relevant e.g:

Exposure times and levels

Methods of control

PPE to be used

Respiratory equipment

Testing of the environment before and during the use of

the substance

Decontamination procedures

Environmental considerations

The assessments that are returned from SYPOL are then

communicated to personnel who carry out the task. This is

achieved through the use of tool box talks. In addition, if there

are specific problems or long-term use of the substances, specific

campaigns will be put in place e.g. a monthly theme that focuses

on personal protective equipment. Sypol and other relevant risk

assessments are also used at the work location to back up the

Permit To Work System.


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(iv) Personal protective equipment

What arrangements does your company have for provision and upkeep of protective equipment and clothing, both standard issue, and that required for specialised activities?

PSN have developed a standard list of PPE, as shown below in the

contents page from the associated HSE Reference Manual.

Compliance with the PSN PPE standard is monitored via a number

of methods. On a day-to-day basis supervisors and colleagues

monitor each other and intervene when inadequate or

inappropriate PPE is being worn. These interventions will be

recorded using the company or project specific observation

programme. On a less frequent basis, management who are

conducting site visits will check for PPE requirements of the job

and ensure that compliance with the PPE Standard is maintained.


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(v) Waste management

What systems are in place for identification, classification, minimisation and management of waste?

PSN have developed waste management procedures for use at all

PSN locations. Please find below the contents page from the

associated Waste Management Guidelines:


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Section 5 Planning and Procedures

(i) HSE or operations manuals

a) Do you have a company HSE Management System Manual (which is equivalent to Shell’s HSE-Management System (as shown in the Preamble), capturing the 8 key elements)? If YES, please provide a copy of your HSE Management System Manual.

PSN has an HSE management system which is available to all

employees through the company intranet. It covers all the basic key

elements of HSE. It is based on HSG 65 and compliant to ISO 9001,

14001 and OSHAS 18001.

For a copy of the PSN Management System manual please refer to

Attachment 5 (i)a, located in Section 5 of TA 21.1 HSE Evaluation

Questionnaire.

b) Do you have a company HSE manual (or Operations Manual with relevant sections on HSE) that describes in detail your company approved HSE working practices relating to your work activities? If the answer is YES, please attach a copy of your HSE Manual.

We have written procedures for site level working practices contained

in our HSE reference Manual. The contents of this manual are listed

below

HSE Reference Manual Contents

1 Abrasive Blasting

2 Aerial Work Platforms

3 Air Tuggers

4 Control of Hand Tools

5 Asbestos Program

6 Assured Grounding Program

7 Barricades

8 Basic Electrical Safety Guidelines

9 Bomb Threat

10 Carbon Monoxide Monitoring of Breathing Air

11 Competent Person Designation

13 Compressed Gas Cylinders

14 Control of Hazardous Energy (Lockout/Tagout)


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c) 15 Crane Suspended Work Platform

16 Crawler, Wheel Mounted, Floating, Overhead Cranes

17 Electrical Safety

18 Emergency Evacuation, Assembly and Accounting

19 Environmental Hazards

20 Excavations

21 Fall Prevention/Protection Program

21A. Floor Openings & Fall Prevention Program

22 Fire Prevention/ProtectionHow do you ensure that the working practices and procedures used by your employees on-site are consistently in accordance with your HSE policy objectives and arrangements.

d) Emergency Response ProcedureDo your have an Emergency Response Plan and related Procedures (including medical emergencies) that is regularly tested?Provide copy of an Emergency Response Plan, related Procedures and the latest emergency drill report.

23 Fuel Truck Operation

24 Governmental Agencies

25 Grinder Safety

26 Hazard Communication

27 Hearing Protection and Conservation

28 Heat Stress Prevention

29 Hot-Tap Procedures

30 Housekeeping, Sanitation, and Waste Disposal

31 Project Site Drinking Water

32 Line Breaking/Equipment Opening Guidelines

33 Marine Safety

34 Office Safety

35 Off the Job Safety

36 Operating Equipment Near Overhead Electrical Service Lines

37 Demolition

38 Parking Lot Safety

39 Periodic Inspections

40 Permit Required Confined Space

41 Personal Protective Equipment

42 Pocket knives

43 Portable Hand, Power, and Powder Actuated Tools


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44 Portable Ladder Safety

45 Powered Industrial Forklift Trucks

46 Pressurized Air or Gas Testing of Closed Systems

47 Process Safety Management of Highly Hazardous Chemicals

48 Radiation Control for Radiographic Service

49 Railroad Safety Operations

50 Respiratory Protection Program

51 Risk Management Overview

52 Project Safety Program Review

53 Scaffolding Safety

54 Servicing Multi-Piece and Single Piece Rim Wheels

55 Sky Climbers and Suspended Powered Platforms

56 Steel Erection

57 Total Safety Task Instructions

58 Special Precautions for Ammonia and Urea Plants

59 Welding and Burning Operations

60 Hydrogen Sulphide

61 Pile Driving Procedure

62 Driving & Traffic Safety Management Process

As can be seen this manual covers the specific working practices of

scaffolding, heavy equipment lifting, handling of chemicals, high level work,

road safety and excavation.

This manual is extremely extensive and is undergoing major revision

currently. Copies will be made available when revised.


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c) How do you ensure that the working practices and procedures used by your employees on-site are consistently in accordance with your HSE policy objectives and arrangements.

Consistently following the correct work practices and procedures is an

essential component of excellent HSE performance. PSN use a

number of methods to ensure that our employees follow the correct

work procedures. We develop and promote a positive safety culture

where everyone is empowered to stop the job and where rule

breaking is not tolerated (see section 6.1 b for review of PSN safety

culture).

Enforcement of the use of working practices and procedures is carried

out regularly at each work location by supervision checking that each

work party is aware of and is following the correct procedures. We

also promote the used of Hazard Observation systems to check

working practices and procedure use, either our own CARE Card

(Changing Attitudes for Risk Elimination) or our client’s process.

d) Emergency Response ProcedureDo your have an Emergency Response Plan and related Procedures (including medical emergencies) that is regularly tested?Provide copy of an Emergency Response Plan, related Procedures and the latest emergency drill report.

All PSN projects have Local Emergency Response Plans (LERP) which

are linked to the PSN Global Crisis Management Plan (GCMP). The

plans are tested regularly including possible medical scenarios.

Attached is the PSN Global Crisis Management Plan, Sangu Local

Emergency Response Plan and the latest drill to test the Sangu plan.

For samples of Emergency Response plans, please refer to

Attachment 5 (i)d, located in Section 5 of TA 21.1 HSE Evaluation

Questionnaire.


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(ii) Equipment control and maintenance

How do you ensure that plant and equipment used within your premises, on-site, or at other locations by your employees are correctly registered, controlled and maintained in a safe working condition?Provide a short overview of your preventative maintenance system.Is HSE Critical equipment specifically identified and included in your preventative maintenance system?

The management of both hired and purchased equipment is

conducted in accordance with the Control of Temporary Equipment

Procedure OPM-PCM-030, along with a suite of additional procedures,

reports, registers and certification, all of which are located in the PSN

management system. This Process includes the identification and

assessment of HSE critical equipment.

In accordance with the PSN suite of procedures, processes, reports

and registers listed, tools and equipment shall be inspected,

maintained and re-certified by our own technicians using workshop

facilities where possible, or by sub-contracted specialist

maintenance/certification authority where necessary.

PSN also have an understanding and experience of working with and

adhering to the Shell Operating Code of Practice (OCOP) 1.046

Temporary Equipment Process. A list of relevant documentation

associated with temporary equipment is available in Attachment

TA12.1e.

(iii) Road Safety Management


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What arrangements does your company have for combating road and vehicle incidents?

The PSN Management System contains our Driver and Traffic Safety

Management Guidelines HSQ-GLN-018. The contents list of this

document can be found below.

This guideline is applied on sites which PSN have primacy for

transport and for vehicle operations within the jurisdiction of PSN.

Specific driver rules are drawn up for each specific site. These rules

are communicated to everyone at site induction as well as to those

driving company vehicles in specific sessions. Implementation of this

process requires several management controls in place including

driver selection, training & instruction, appropriate site signage, site

traffic routes, vehicles maintenance, logs books and the provision of

detailed investigation (root cause analysis) in the event of an

incident.

Auditing of the transport policy is conducted at several levels within

the organisation from random spot checks on vehicle log books,

random checks on vehicle roadworthiness as well as full site transport

reviews.

Reducing the risks from all forms of transport, particularly road

transport is a key focus for PSN in 2009. It is included in all PSN HSSE

Improvement Plans for 2009. See Section 3 (i) a.


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Section 6 Implementation and Performance Monitoring

(i) Management and performance monitoring of work activities

a) What arrangements does your company have for supervision and monitoring of performance?

The PSN Management System defines our arrangements for our

supervisors and how and what should be monitored. The PSN

Supervisors Manual CON-MAN-003 defines the roles and

responsibilities of a PSN Supervisor and is available upon request.

b) What types of performance criteria are used in your company; give examples?

We continuously seek opportunities for improvement through analysis

and trending of HSE leading and lagging performance indicators.

We monitor our HSE performance delivery for the duration of the

contract. We do this by using project and corporate monthly HSE

scorecards and by reviewing performance at monthly HSE project

managers’ meetings.

Additionally, we measure compliance to project requirements through

the analysis of HSE performance. We use HSE scorecards to identify

key trends in accident / incident types, enabling the Assignment

Manager and HSE personnel to identify opportunities for improvement

and share the HSE learning’s throughout the project organisation.

We have operated the HSE scorecard system for over four years, and

have been identified as the benchmark by Lloyd’s Register Quality

Assurance for our approach to HSE performance improvement. An

example of a project scorecard is shown below.

We will consult SPEX to agree project KPIs, and to develop and

maintain a project level HSE Plan to address:

Client and PSN issues

Legal, contractual and organisational changes

Leading and lagging KPIs status

Management reviews and audits

Performance expectations

Alignment with Client and PSN HSE Policy and objectives


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c) What arrangements does your company have for passing on any results and findings of this supervision and monitoring to your:

Base management?

Site employees?


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Example of Project HSE Scorecard

Leading Indicators (to Date) Target

CARE* % quality observations 25%

Corrective Actions % completion against schedule 100%

Audit Plan % completion against schedule 100%

FiTechTM & WellbeingworksTM

% of personnel completing assessments

50%

RSIP WorkwellTM & CBT % of personnel completing assessments

100%

Management Visits % completion of planned visits 100%

ISO 14001 Standard Maintaining independent verification of the EMS

Yes

Environmental Awareness Training

% of targeted personnel completing training

100%

- CARE - Changing Attitudes for Risk Elimination’ PSN Hazard Observation

System.

- WellbeingworksTM – online health management service

- FITechTM – cholesterol and diabetes testing

- RSIP Workwell TM – Repetitive Stress Injury network

Lagging Indicators (to Date) Target

Lost Time Injuries 0

Total Recordable Injuries 0

High Potential Incidents 0

Oil Spills to Sea 0

Produced Water Oil concentration and mass

Mass (tonnes)

20mgl

260

Greenhouse Gas Emissions (Tonner per MBOE) 9

Recycled Waste (Percent completion against

schedule)

25

Chemical Usage (No of non-conformances) 0


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c) What arrangements does your company have for passing on any results and findings of this supervision and monitoring to your:

i) Base management?ii) Site employees?

On a daily basis direct line supervision meets with the project or

assignment manager to discuss the work done during the day and to

plan the work occurring on the next day. During these meetings HSE

performance and the performance of the work are discussed.

Site employees are informed of any HSE issues, findings or results

during weekly HSE meetings, daily toolbox talks or where the hazard

is significant a “townhall” meeting can be held where the assignment

manager can address the entire workforce.

(ii) HSE performance achievement awards


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Has your company received any award for HSE performance achievement?

Has your company received any award for HSE performance achievement?

The PSMS has demonstrated that it delivers Best Industry

Performance

PSN’s safety culture has enabled us to consistently maintain high

safety standards at locations worldwide. Our notable HS&E

achievements include:

Philippines GKK (Occupational Safety and Health Excellence) – Philippines

Department of Labour and Employment.

5 th GKK Award for PSN Production Services Network

Philippines Corporation in the International Category: 2005

4 th GKK Award for PSN Production Services Network


3 rd GKK Award for PSN Production Services Network


Philippines Contractor of the Year Award for 2001 and 2002 -

Overall winner of Shell Batangas City Refinery Projects

“Fly the Flag Promo” Contractor of the Year Award for

2001 and 2002

Philippines Shell Tabangao Refinery LTI-free (Lost Time

Incident) for 13 years (over 7 million work hours)

Australia Esso Bass Strait – PSN received Safety awards for its

innovative approach to Safety in 2002, 2003,

2004, 2005 & 2006 at Esso’s Annual Contractor Safety

Recognition Forums.

UK RoSPA (Royal Society for Prevention of Accidents) Gold

Award 2008, 2007, 2006, 2005, 2004 & 2003


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(iii) Statutory notifiable incidents /dangerous occurrences

Has your company suffered any statutory notifiable incidents in the last five years (safety, occupational health and environmental)? (Answers with details including dates, country, most frequent types, causes and follow-up preventative measures taken).

PSN has not suffered any statutory notifiable incidents in the last five

years (safety, occupational health or environmental).

(iv) Improvement requirement and prohibition notices

Has your company suffered any improvement requirement or prohibition notices by the relevant national body, regulatory body for HSE or other enforcing authority or been prosecuted under any HSE legislation in the last five years? (If your answer is YES please give details).

PSN has not suffered any improvement requirements or prohibition

notices by the relevant national body, regulatory body for HSE or

other enforcing authority or been prosecuted under any HSE

legislation in the last five years.

(v) HSE performance records

a) Have you maintained records of your incidents and HSE performance for the last five years? (If YES, please provide the following: Number of Fatalities, Lost Time Injuries, Lost Workday Cases. Medical Treatment Cases and Restricted Work Day Cases. Also include the Fatal Accident Rate, Lost Time Injury Frequency and Total Recordable Incident Rate (TRCF) for each year. (NOTE: Please include your company definitions of the above-mentioned terms. For clarification refer to the OGP Safety Performance Accident Data Report).


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Global Statistics

2008 2007 2006 2005 2004

Case (NR)

Rate Case (NR)

Rate Case (NR)

Rate Case (NR)

Rate Case (NR)

Rate

Manhours 22,155,027 20,699,361 21,736,523 18,333,333 15,294,118

Fatalities * 2 0.02 0 0.00 0 0.00 0 0.00 0 0.00

Lost workday case injuries involving days away from WORK

Rate = Cases

X 200,000

Total

Employee

hours

15 0.14 12 0.11 12 0.11 11 0.12 13 0.17

Lost workday case injuries involving restricted WORK activity

Rate = Cases X 200,000 Total Employee hours

21 0.19 22 0.21 20 0.18 14 0.15 6 0.08

Injuries involving medical treatment only.


24 0.22 32 0.31 29 0.27 17 0.18 12 0.16

Injuries involving first aid treatment only.


168 1.52 210 2.03 257 2.36 204 2.23 157 2.05

Near Misses


188 1.70 286 2.76 335 3.01 280 3.05 250 3.27

NB: Unfortunately in August 2008, 2 PSN employees were tragically killed shortly

after take off from the installation in a helicopter accident offshore Dubai


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Offshore helicopter operations in the area are under review following the

accident.


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b) How is health performance recorded?

When personnel working for PSN are mobilised to an international

location they are sent a link to the International SOS website

information page for that country which contains information

regarding specific health precautions which should be taken whilst

working and visiting that country. Any specific pre-travel

requirements, such as inoculations or blood tests are conducted in

line with PSN’s medical provider, Abermed’s advice along with a

rigorous international medical. Abermed maintain all the health

records of our employees.

Changing health circumstances in countries where PSN employees

are based is monitored by our medical provider, Abermed, who issue

email alerts as well as at a local level by PSN in country management.

Each individual assignment has an annual Health, Safety &

Environmental Plan which is used to schedule health events and

campaigns for PSN personnel. Topics such as general health & fitness,

diabetes awareness, back care, dental health are promoted at a local

level by Health Improvement Teams (HIT Squad).

c) How is environmental performance recorded?

Where PSN have primacy, for example our operations in Bangladesh,

PSN monitor measure and record all environmental emissions and

discharges on behalf of Cairn Energy for their Sangu Operations. The

figure below is an example of the July 08 Sangu report to the

Department of Environment in Bangladesh.

Sangu Report to the Department of Environment in

Bangladesh


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d) How often is HSE performance reviewed? By whom? Does the review include:· HSE-MS compliance· HSE plan completion status· HSE statistics and trends· Audit/Inspection/Incident & follow upIf YES, please provide minutes of HSE Performance Review meeting.

HSE performance is reviewed on a weekly basis by the project

assignment management team. Each month, every assignment

prepares a report that is submitted to head office in Aberdeen. The

information is collated into a global monthly HSSE report for

presentation at the monthly Excom meeting. A significant proportion

of the Excom meeting is devoted to reviewing the HSE performance

and making recommendations for improvement. In the monthly

meeting HSE plan status, HSE statistics and trends and incidents are

discussed in detail.


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# ISSUE Resp. Date Raised Date DueDate

Completed

1 First Aid Cases Steve 18-Aug Sept Sept

2 Security Docs Steve 18-Aug Sept

3 Cairo Office Steve 18-Aug Dec

Steve Parkinson

NEXT MEETING: Monday 20th October (and every 3rd Monday of the month thereafter, please note that this date has been changed)

TIME, VENUE & DIAL-IN DETAILS Time. 0800-1000

Dial-in numbers below will remain the same for ALL of these meetings unless otherwise advised.

Steve Parkinson BT MeetMe Details:

Freefone dial-in number: 0800 3891681 (UK)

Direct dial-in number: +44(0)20 7940 5700 (everyone else)

Chairperson Passcode: 79001745 then # (Steve Parkinson)

Participant Passcode: 24499694 then # (everyone else)

PLEASE NOTE; Any new items for discussion tobe issued prior to the meeting for pre reading

AGENDA OBJECTIVES:

Achieve something from each meeting

1. Safety Moment (to be rotated)

2. HSE Performance (including progress against HSE Plans) 3. Incident Review (one incident to be presented by BM and project team)

4. Quality Issues

5. Business Managers Round-Up

6. Security

7. AOB

STATUS / ACTION REQUIRED

ACTION LOG

PSIO HS&E Business Managers Monthly Meeting

ATTENDEES

APOLOGIES

18th August 2008

Adeeb Quader, Steve Parkinson, Ian Mackay, Finlay MacLennan, Richard Duff, Matt Gavin, David Clark, Pat Bonner

DATE

COMPLETED BY

Alan Gordon

PLEASE NOTE: If you are unable to attend you are required to nominate a deputy

learn something

GROUND RULES:

Upload to MS and notify BMs and Ams

New Cairo office requires security risk assessment

Include first aid cases in monthly report lagging indicators


(vi) Incident investigation and reporting


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a) Who conducts incident investigations?

Where a recordable (OSHA definition) incident has occurred (or one

we deem to be of a suitably High Potential), an investigation is

initiated. The severity of the incident determines the composition

of the incident investigation team and the level of PSN

management responsible for its completion, as described in the

table below.

PSN Investigation Categories and Responsibilities

Incident Category

Investigation By: Incident Report

Approved By:

Recordable

Incident /

High

Potential

Incident

Taproot Process

Led by business manager;

assignment manager; or senior

management representative

Line management

representative

Technical specialist (as

necessary)

Employee safety representative

HS&E specialist

Operations

Director

Assignment

manager

Recordable

Incident /

Low

Potential

Incident

Taproot Process

Led by line management

representative (independent)

Senior adviser/HS&E specialist

Employee safety

representative

Business /

project manager

Non-

Recordable

Incident

PSN Internal Standard

Led by line supervision

Employee safety representative

(as required)

HSE Advisor

Location /

project senior

representative

For the highest categories of incident, we employ a tool and

process called TapRooT™ that allows us to systematically

determine the root causes of incidents. All managers and HSE

advisors are trained in the use of the tool.

As required, we will of course work alongside our client and, where Tenderer’s Company Name: PSN PRODUCTION SERVICES NETWORK PHILIPPINES CORPORATION

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b) How are the findings following an investigation, or a relevant incident occurring elsewhere, communicated to your employees?

Our IMPACT system is used as the main tool for the communication

of remedial and improvement ideas and lessons learned. Trends

identified in IMPACT are used to help plan, prioritise, and co-

ordinate corrective actions, maintenance requirements, and

improvement initiatives.

Process improvements are reflected as changes to our best

practices and communicated through training and application.

Finally, all findings and corrective actions are communicated within

PSN, our clients and the wider industry by a range of methods

including:

Safety meetings

Toolbox talks

Safety alerts

E-mail notifications

Seminars and presentations

Notice boards

c) Are near miss safety learning reported?

PSN use leading indicators such as audits, management visits,

close-out of actions, inductions, observations and near miss reports

to proactively intervene where trends are identified. All projects

report their monthly HSSE performance to Corporate HSSE,

including near misses. Near miss reporting is encouraged and

regular presentations are given to ensure that all near misses are

reported. The figure below shows a typical near miss poster and

the Figure beneath demonstrates the number of near miss reports

received during the past 12 months.


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Typical PSN Near Miss Reporting Awareness Poster

Figure 21.7c - Safety Triangles include numbers of Near Miss Reports submitted during past 12 months


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LTI

RWC

MTC

FAC

NM

OBS

UK

1(8)

1(7)

0(13)

6(77)

10(107)

2,740(30,990)

Overall

1(14)

2(20)

2(28)

14(195)

18(216)

9,462(133,185)

0)

International

0(3)

0(3)

0(6)

1(58)

7(97)

4,903(81,395)

US

0(3)

1(10)

2(9)

4(60)

2(13)

1,819(20,840)


Section 7 Auditing and Review

(i) Auditing

a) Do you have a written policy on HSE auditing? If the answer is YES please attach a copy.

Our Audit and Review Processes are defined within the PSN

Management System – Audit Management HSQ-PCM-009 &

Management System Review HSQ-PCM-001, a copy of which is

located in Attachment TA21.7.i.


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b) How does this policy specify the standards for auditing (including unsafe act auditing) and the qualifications for auditors?

Our corporate audits are planned, based upon a risk assessment

issued to all our Business Unit and Assignment Managers on a

periodic basis, the results of these assessments are reviewed to

determine the most critical projects that should be subjected to

audit. These audits are then planned based on the risk profiles and

incorporated within our global audit and assessment programme.

Our Audit Management Process Control Method (HSQ-PCM-009)

defines what should be considered when preparing the audit and

review programme. An extract from the PCM is attached here.

The qualifications for auditors are defined in our Auditor

qualification guidelines. The index for the guideline is attached in

Figure 21.7b.


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Unsafe act auditing is covered by the PSN Hazard Observation Process Control Method (PCM).

c) Do your company HSE Plans include schedules for auditing and what range of auditing is covered? Do your Senior Managers support and participate in the HSE audits? If YES, please provide Audit plan.

Our HSE plans describe the audit process and define the audits and

inspections required to provide assurance that the management

system processes are being adhered to. A full range of audits and

inspections are described:

Location weekly inspections

Process audits

Corporate full scope audits

Seniors Managers in all projects also participate in the

weekly/monthly audits.

For a copy of our Corporate Audit Plan, please refer to Attachment

7(i)c, located in Section 7 of TA 21.1 HSE Evaluation Questionnaire.


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d) How is the effectiveness of auditing verified and how does management report and follow up audits?

The results of our audit and review programme allow us to

benchmark across our projects and highlight areas where trends

are apparent or identify best practices that we can share across

our projects to the ultimate benefit our of clients.

Continuous Improvement

Any non-compliances or actions arising from our own audit and

assessment programmes and Customer and/or third party audits are

tracked to completion using our continuous performance improvement

system called IMPACT, which has modules for tracking the resolution of

Non-Conformance and Corrective Action Requests.

The PSN IMPACT system and processes enables us to actively manage a

number of typical quality indicators, including:

Number of non conformances (NCR) raised

Number of corrective actions (CAR) raised

Number of opportunities for improvement (OFI) raised

Number of customer feedbacks (CFB) raised

Number of supplier feedback (SFB) raised

Number of incident action (IAT) raised

Number of best practices (BP) raised

In addition we monitor the progress of our strategic quality improvement

actions as detailed within our business improvement plan, compliance

with our audit programmes and results from our cultural surveys


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We are subject to continual internal audit, customer audit and third

party audits which provide confirmation that our systems are effective

and identify areas for improvement

Our methods for measuring and reporting performance allows us to

react quickly to ensure our shared objectives are met.


e) Has your company undergone HSE-MS audit and/or safety audit? If the answer is YES please attach a copy of audit report

Lloyds Register Quality Assurance (LRQA) certify PSN for ISO 9001, ISO

14001 and OHSAS 18001. The last audit by LRQA was carried out

during September 2007. This was a recertification audit and all 3

certificates were renewed.

For copies of our Audit Reports, please refer to Attachment 7 (i)e,

located in Section 7 of TA 21.1 HSE Evaluation Questionnaire.

Section 8 HSE Management - Additional Features

(i) Memberships of Associations

Describe the nature and extent of your company's participation in relevant industry, trade, and governmental organisations?

PSN are active members of Step Change in Safety. Our Chief

executive Officer (CEO) Robert Keiller is the current Chair of the

organisation and we have a member of staff permanently

seconded to Step Change. We are members of ROSPA and have

achieved their Gold Award for the past seven years and the PSN

Management System is certified to OHSAS 18001.

(ii) Additional features of your HSE management


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Does your company have any other HSE features or arrangements not described elsewhere in your response to the questionnaire?

PSN is a ‘network’ organisation which encourages shared learning

and best practice on a global scale. When considering the best way

of developing health, safety and environmental strategy we learn

from all our operations, regardless of their remoteness.

As an HSE team we work closely on developing a practical

management system which provides global solutions to local

issues. We use portal technology to share information and

documents across the globe so that any PSN employee can gain

access to information via the internet.

This network approach allows us to quickly establish a network of

HSE assistance on specialist topics for example radiation

protection, electrical safety or chemical safety.

At PSPC Tabangao Refinary they have monthly safety and health

promotions, activities include awareness campaigns highlighted at

toolbox meetings followed by general townhall meetings, attended

by all refinery contractors to conclude each campaign.

Additionally an ogoing promotion launched in 2006, MARSHAL,

which stands for Making A Responsible safety and Health Advocacy

Leader, is open to Foreman and below where they are paired with a

Safety Officer to gain safety skills.


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Details of the safety and health promotions at Tabangao:

HSSE Promo - HSSE Programs

2008 HSSE Promo

PPE Awareness & Manufacturing Cardinal Safety Rules

Fire Prevention Month

The Summer Heat is on

Learning from Incidents

HSE Golden Rules

Bantay Kaligtasan at Kalusugan Kapag Tag-Ulan at Bagyo (Typhoon

Preparedness)

Environmental Waste Management Month

2007 HSEE Promo

Back to Basics - PPE Awareness & Buddy System

Hand & Finger Safety

Heat Cramp & Heat Stroke

Hataw sa Tag-Ulan (Oplan Iwas Trangkaso/Sipon/Ubo/Dengue) (Colds, Flu &

Dengue Prevention)

Compliance and Intervention

Physical Fitness

Electrical Safety Month

We CARE Month

Holiday Safety Month (Part 1)

Holiday Safety Month (Part 2)

2006 HSEE Promo

Back to Basics - Bicyle Safety & PPE Awareness

Back to Basics (Permit, TSTI, JSA)

Buddy System Month

Isip 3M at Iba Pa. Para Iwas Sakuna

Tools & Equipment Safety

Leadership at All Levels

Waste Management Month

PPE Management Month

Maayos na Lugal Gawaan Malayo sa Kapahamakan (good housekeeping prevents

accidents)


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HSE Program 2008

JANUARY

HYPERTENSION

FEBRUARY

ARTHRITIS

MARCH

PTB AWARENESS

APRIL

LOW BACK PAIN PREVENTION AWARENESS & HEAT STRESS

MAY

INFLUENZA

JUNE

DENGUE

JULY

DIABETES

AUGUST

AIDS AWARENESS

SEPTEMBER

REPRODUCTIVE HEALTH/FAMILY PLANNING

OCTOBER

STRESS IN THE WORKPLACE

NOVEMBER

HEARING CONSERVATION

DECEMBER

STAY FIT DURING HOLIDAY


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Section 9 Company Specific Information

List of documents to be submitted based on above(Please submit any other relevant documents.)

Provide a list of proposed activities that senior management is involved that promote positive culture.1. HSE Policy Document.2. HSE KPI list3. HS&E Plan, showing continuous improvement targets that are set for the next 5 years and how such

targets will be achieved.4. Company Organogram and HSE department organogram.5. Minutes of HSE communication meeting.6. Minutes of HSE meeting and daily Toolbox meetings and Log-book7. Roles & responsibilities chart8. Competence/training matrix for manager, supervisors and HSE advisor and HSE training matrix for all

other employees and evidence of attendance implemented to date. 9. Details of content for in-house training 10. List of resources required for carrying out HSE critical activities together with their qualifications;11. Itemise and details of specialised HSE training.12. ACT program or other proactive tool;13. PTW & JHA procedures;14. Company HSE Management System Manual 15. Company HSE manual.16. Emergency Response Plan Procedure and its emergency drills report.17. Records of your incidents and HSE performance for the last five years?18. Minutes of HSE review meeting19. Policy on HSE auditing20. Audit Plan and Audit reports;


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TECHNICAL APPENDIX TA -22 - TENDERER'S LOCAL CONTENT

1. Tenderer shall provide to this Appendix 22 list of its Local Content for the WORK as per the format in the table below. The local content shall be based on Tenderer's Projected Local Content that will be utilised during the execution of the WORK for this tender if awarded. Note: COMPANY encouraged Tenderer to submit bid proposal that maximize on local content.



Item ComponentsPercentage of Local Content in

Each Component (%)

1 MANPOWER

a. Project Management Team 80% Local Content

b. Engineering Lead, Maintenance Lead, HSE Lead, SAP Support Personnel, etc.

50% Local Content

c. Direct labor for engineering services based in the Philippines i.e. senior discipline engineers, discipline engineers, etc

90% Local Content

d. Direct labor for OGP and SWP on call-off basis i.e. engineer, lead technician, technician, trades, dual trades & craftsmen, etc

100% Local Content

Note: Local Content Percentage is defined as the percentage of “Locally Sourced” resources within each component/category. Percentage of Local Content for each component/category shall be from 0% to 100%.

Example 1: Item 1, if Bidder has 100 % Filipino /Local working for them for this particular Tender – the local content shall be 100 %.

Example 2: Item 1, if Bidder has 80 % Filipino /Local and 20 % foreigner working for them for this particular Tender – the local content shall be 80 %.


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TECHNICAL APPENDIX TA-23: TENDERER’S COMPUTER CAPABILITIES AND COMPUTERISED MAINTENANCE MANAGEMENT SYSTEM (CMMS) OR EQUIVALENT

1. The Tenderer will meet the minimum requirements as specified in the PART 5 of the CONTRACT. Any deviations should be highlighted and qualified in the bid. The Tenderer shall provide a summary of the computer facilities that are available in-house and highlight those that will be used for this WORK. Tenderers are also required to advise if external computer facilities are anticipated for this CONTRACT and how this will be managed.

Overview

The provision of Communication Networks and Information Technology (ITC) within

PSN is always focused on Operational needs of the business.

We are able to provide services for systems and data through the global

application of standard hardware and standard software solutions. This is known

as the COE (Common Operating Environment). COE supported by Information

Technology Infrastructure Library (ITIL) methodologies provide an effective IT

management and support network. The main benefits are to drive down cost while

maintaining appropriate availability and security of data.

PSN’s world wide communication network with regard to infrastructure is based on

Microsoft Windows 2003 server technology. This along with the COE, consists of

standard hardware with core software based on Microsoft products. These include

Windows XP (SP3), Microsoft Office 2007 and Exchange 2003 mail services.

The COE environment supported by ITIL processes and methodologies facilitates:

Better management and support services

Reduced risk of system failures

Elimination of incompatibility problems through the use of common file

formats

A common environment for roaming users

Significantly fewer interfaces

Global monitoring and support

The computer specifications below represent our standard deployed hardware.

PSN have moved away from the model of users storing data on local C: drives for

reasons of data security & availability.

Where appropriate, local file servers or mini-NAS solutions are deployed, with tape

backups stored offsite.


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Technical Workstation for CAD/PDMS

Make : Lenovo

Model : ThinkCentre M57e Tower Model 9174

Hard Disk : 250 GB

RAM : 3072 MB

Graphics Card : 512MB Minimum

Monitor : 2 x 19” Monitors

Standard Desktop PC

Make : Lenovo

Model : M57e Model 9482

Hard Disk : 80 GB

RAM : 2048 MB

Monitor : 17” Monitor

Corel-Draw is not part of our standard COE suite, however PSN has a large

portfolio of software which can perform similar functions.

Hardware / Software Upgrades

PSN will operate on a 24 month refresh policy as necessary for the SPEX Contract

enhancing the performance of the business, whilst ensuring maximising benefit

from the investment.

The flexibility of PSNs’ network allows data and resources to be accessed

worldwide. A link (subject to cost & availability) to the main PSN network would be

installed to meet this objective.

PSN IT has engaged key service providers with vast experience in connecting and

communicating with both client and vendor systems and operating environments.

We have implemented many communication methods in the past. All of these

ensure agreeable levels of security for both parties. We will choose the

connection technology on factors including:

Security policies of all associated parties

Technology of systems requiring to be accessed

Cost

Operability


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Other forms of internal world-wide communication include the use of e-mail,

internet and more significantly PSN make use of collaboration portal technology,

which underpins our knowledge management and transfer processes. This

technology, allows our personnel and also where appropriate vendors, partner and

client organisations to gain secure access to all information they require for

carrying out their daily tasks from any Internet PC around the globe.

This collaborative technology makes collaboration straightforward and encourages

development of Communities of Practice, where good working practices and open

threaded discussions are hosted. Thus, our personnel have access to all parts of

the PSN network irrespective of where they are, or which time zone they happen

to be in. Through this company-wide collaborative knowledge base, anyone in the

organisation is empowered to ask a question, share knowledge, provide answers

or opinions and learn on demand by searching previous discussions and accessing

managed content.

As a general policy we utilise a standard set of integrated application systems.

These include but are not limited to those identified in the table below. The strong

advantage of using this standard suite is that they can be deployed immediately

from the start of a contract. No customisation is required as all interfaces have

already been developed. These PSN applications are all currently in use in various

parts of our organisation.

PSN Standard Software Applications

FunctionTechnical

PurposeSoftware Used Hardware Used

Planning PRIMAVERA P3/P5 (experience of using Company P3E in previous contracts)

MP Project 2003

Hosted and accessed via standard COE

Planning

Material

Management

Oracle, Inventory Lite, SMS,


Procurement

Material

Expediting

Oracle, SMS, Hosted and accessed via standard COE

Material Tracking

Cost control Oracle Hosted and accessed via standard COE

Cost control

Document

control

DOCUMENTUM Hosted and accessed via standard COE

Document control

Interface

management

Oracle, PSNMS, Safety management System


Interface management


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FunctionTechnical

PurposeSoftware Used Hardware Used

Work planning

and jobcards

WPS (Work Planning System)


Work planning and jobcards

Timewriting TimeWEB Hosted and accessed via standard COE

Timewriting

Incident

reporting

Synergi Hosted and accessed via standard COE

Incident reporting

Quality

management

PSN MANAGEMENT SYSTEM (PSMS)Certified to ISO 9001, ISO 14001 and OHSAS 18001


To act as the information source, outlining the detail of all processes

Engineering –

Process,

Structural,

Mechanical,

Instrumentatio

n

Hysis, Microstation, Sesam, Rastercad, IRAS-B, Flarenet, Fred, PHA PROII, CaesarII, STAAD Pro, Ansys


Engineering Analysis, Calculation and Simulation

Draughting AutoCAD

PDMS


Computer Aided Design (PDMS) and Drafting (AutoCAD)

In most circumstances the previous listed applications can be accessed and used

from Company network environment for either PSN or Company staff members

providing access to the internet is granted. These applications will be accessed

via standard browser technology for the web based applications.

2. Tenderer to elaborate on previous experience dealing with SAP system or other equivalent CMMS system in tenderer’s organization (if any) or client organization (if any).

A number of our clients use SAP as their primary business control tool, and often

as their Computerised Maintenance Management System (CMMS). We have

significant experience of working with clients who use SAP PM as their

Computerised Maintenance Management System (CMMS). Currently we work in

Aberdeen with Shell, Chevron, Cairn India, Nexen and ExxonMobil who all use SAP.

PSN currently supplies coach/training support to the Shell North Sea Assets in the

use of SAP.

Where we are engaged in providing maintenance planning support, we define an

interface format to extract data from the relevant SAP PM module to populate

Primavera P3 (our standard planning and scheduling package) with the necessary


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maintenance schedule information. We refresh this periodically to ensure that the

maintenance section of the integrated plan reflects the current data residing in

our client’s maintenance management system.

We have a number of people assigned to maintenance services support contracts

who manage maintenance data in the client’s SAP PM system. These individuals

have gained significant experience in operating the SAP PM module ensuring the

accuracy and completeness of our client’s maintenance data.


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P3 is an industry standard third party supplied application from Primavera Inc. It is

the standard planning and scheduling package in use across PSN. It is used to

generate project plans and schedules across our contracts in appropriate levels of

detail. Project work calendars and resource availability profiles are developed

within P3 and durations and dependent logic are applied to work activities. P3

uses Critical Path Analysis (CPA) to determine overall project duration based on

logic, durations and resources required to complete the work. The resultant

project plans can be displayed in a variety of formats including:

CPA (or Logic Network)

Bar-charts or Gantt Charts

Manpower and Man-hour Histograms

Activity Listings

S-Curves of Planned Progress and Planned Man-hour Expenditure

We have been significant Primavera users since 1998 and have developed class

leading expertise in the use of P3 since then.

PSN has experience in the provision of Maintenance Management Systems and

alignment to client requirements in various locations around the globe. We

develop, implement, execute and improve strategies as shown below to maximise

the profitability of assets by optimising balance between production, performance

and lifting costs, underpinned by our core values of HSE excellence.

What We Address How it Benefits Your Business

Defining the business processes and

mapping to SAP. The blueprint of SAP

configuration is dependent on the

business processes. We assist with

defining blueprint with the

configuration consultants.

We have experience of several SAP

implementations and have operated the

system post implementation, we know

what works well.

Maintenance Build – Complete

maintenance build services. Creating

the asset register and hierarchy.

Development of the maintenance

strategies and creation of maintenance

plans.

PSN have tools and procedures for

populating SAP. We have a database of

generic maintenance tasks and

personnel experienced in developing

maintenance for SAP. We can also

conduct RCM for critical systems.


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What We Address How it Benefits Your Business

Work Order Management – PSN have

processes and procedures to manage

both routine and non-routine

maintenance within SAP. This includes

raising work orders, prioritisation of

work, scheduling, fixed format

reporting, recording history, recording

manpower and material utilisation.

PSN have experience in operating SAP

for several clients. The experience

gained and the processes developed

from working with different clients can

be transferred to any new client.

Spares/Maintenance Interface –

Identification of critical spare parts

required for maintenance, stock

holding levels, associating spare parts

with the equipment they support (Bill of

Materials).

Spares is a crucial aspect of any

maintenance operation. Having the

correct spare parts identified and

available at the right time is essential in

achieving the inherent availability of a

facility. PSN can identify the correct

spare, associate it with the equipment it

supports and optimise the stock holding

levels.

Reporting – Generation of reports to

provide leading and lagging indicators

of the effectiveness of the maintenance

system. E.g. maintenance backlog,

compliance with performance

standards, manpower utilisation.

PSN can develop reports to demonstrate

compliance with legislation, and other

key performance indicators which are

vital for the effective management of

your facility.




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TECHNICAL APPENDIX TA-24: COMPLIANCE WITH PART 11 – HEALTH SAFETY AND ENVIRONMENT

1. Tenderer shall study PART 11 – Health, Safety and Environment. Tenderer must complete the Questionnaire below fully.

2. Tenderer shall enter its company name & chop and sign each page of this Appendix.


PART 11 – HEALTH SAFETY AND ENVIRONMENT (HSE) QUESTIONNAIRE

Please tick ( ) as appropriate

Yes No

1.0 Have you read and understood Part 11 – Health, Safety and Environment?

2.0 Do you agree to comply fully with Part 11 – Health, Safety and Environment?

If no, please provide your reason(s) as part of your qualification to contract under TECHNICAL APPENDIX 1 – QUALIFICATIONS.

3.0 In the event of a subcontract (if applicable), will you ensure that your appointed Subcontractor acknowledges, understands and comply with Part 11 – Health, Safety and Environment?


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TECHNICAL APPENDIX TA-25: ADMINISTRATION INFORMATION

1. The Tenderer shall submit in this Appendix the following information to enable a contract to be executed in the event of Tenderer’s bid being accepted.

(i) FORM OF AGREEMENT

- Tenderers Company Name and address

PSN Production Services Network Philippines Corporation

- Tenderers legal standing (i.e. company, partnership, JV, etc.)

Company

- Law of Incorporation

Philippines

- Principal or Registered office

- Name of signatory

Alan Stewart Gordon

- Position of signatory

Director

Tenderers Company Name and address - Tenderers legal standing (i.e. company, partnership, JV, etc.) - Law of Incorporation - Principal or Registered office - Name of signatory - Position of signatory

(ii) ADMINISTRATION PROCEDURES

- Name of Contractor Representative

Alan Russell

- Position

Assignment Manager

- Address

200 Cantonment Road, 04/03-04 Southpoint, Singapore 089763

- Fax No.

+65 6220 5360

- Telephone No.

+65 6501 0160

Name of Contractor Representative - Position - Address - Fax No. - Telephone No.

- Name of Contractor Representative Nominated Deputy (if any) Not Applicable


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- Position

- Address

- Fax No.

- Telephone No.

- Authority and Duties Delegated to Nominated Deputy


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(iii) PARENT COMPANY GUARANTEE BY PRINCIPAL COMPANY

- Guarantor Company Name

Production Services Network Limited

- Guarantor legal standing

Private Limited Company

- Law of Incorporation

Law of Scotland

- Principal or Registered office

Johnstone House, 52 – 54 Rose Street, Aberdeen, AB10 1UD

- Name of signatory

Duncan Ross Skinner

- Position

Director

Guarantor Company Name - Guarantor legal standing - Law of Incorporation - Principal or Registered office - Name of signatory - Position




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4. TECHNICAL APPENDIX TA-26: TENDER BULLETINS

1. Tenderer confirms receipt of the following Tender Bulletins the effects of which have been included in the Tender:

Bulletin No.* Reference No. Dated

1 Addenda No. 1 12th January

2009

2 Clarification No. 01 21st January 2009

4 Addenda No. 2 21st January

2009

5 Clarification No. 03 26th January 2009

6 Addenda No. 03 21st January

2009



10 Addenda No. 03 26th January

2009

11 Clarification No. 07 26th January 2009

15 Addenda No. 04 04th February

2009

16 Clarification No. 11 09th February 2009



19 Clarification/Addenda No.14/4 11th February

2009

* Tenderer to List

2. The Tenderer shall complete this appendix, enter its company name and sign same.



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