PJOE

Company Profile

Penglai Jutal Offshore Engineering

Prepared by: Penglai Jutal Offshore Engineering Date: January 2014 Ref: N/A Issue: 4

PJOE 1.0 Introduction Penglai Jutal Offshore Engineering is an upstream fabrication yard which started their business in

May 2006 and has so far fabricated jackets, piles and conductors, platforms, suction anchors,

PLEM’s, CALM buoys, turret’s, offshore heavy lift cranes, semi-submersible pontoon’s, hull

sections and modules for various clients.

The company is a joint overseas and Chinese investment company with as overseas share

holders Jutal Offshore Oil Services (30%), a Hong Kong listed company and SembCorp Utilities

(22.4%), a Singapore listed company and Chinese shareholders CNOOC Investment (25.2%)

which parent is a New York and Hong Kong listed company and Shenzhen Chiwan Petroleum

Supply Base (22.4%) a Shenzhen listed company. These share holders ensured a flying start and

contributed over 25 years of offshore experience in the Asian market.

The workforce is made up of permanent staff which is supported by a n umber of overseas

personnel in senior functions as yard management, project management, lead engineers, QC,

safety and commercial. They are supported by a number of residential subcontractor’s in various

disciplines. All in-house trained welding staff is available for all types of required construction

work. A total of around 2,400 permanent employees are presently on the payroll and growth up to

3,500 is planned for. A maximum of around 2,500 subcontractor’s personnel have been employed

on the various projects executed.

PJOE

The yard employs a combination of local personnel, local industry veterans and (local) expatriates,

supported by industry specialists as required for the work in hand. Within the PJOE yard they are

as projects teams responsible for the project execution. Our in-time delivery of all our projects so

far points to their successful execution record. Crucial positions are being fulfilled by well

experienced personnel who are exposed to the Asian market and cultures.

The company is proud to work with the ISO 9001, ISO 14,001 and OHSAS 18,001 management

systems demonstrating our commitment to quality, environment and safety. We consider it

important to act as a r esponsible employer towards the outside world and stake holders. We

expect the same from our personnel. In a continuous process we are ensuring that expectations

from clients and stake holders are being met, which sometimes require improvements and

adjustments to the internal systems and behaviours.

The yard is at present 535,000 sqm large and an expansion programme is on going with another

125,000 sqm to be able to accommodate future projects and demands. We have a 700 m long

quayside with a m inimum water depth of just over 10 m eters and al l necessary facilities to

PJOE support our operations. The yard has one of the four skidways suitable for structures up to 50,000

ton weight.

Market positioning

PJOE is focused on multi disciplinary steel construction work for on- and offshore projects. These

can cover projects for up- and downstream oil and gas as well as mining, energy, petrochemical

or water industries.

This translates to the following product lines we are concentrating on:

Product lines: Jackets (large above ~ 6000 T……)

Topsides (integrated topsides)

FPSO products (topsides, turrets, anchors, integration)

Upstream special units (TLP, MOPU, new FPSO’s)

Mechanical structures (large offshore lift cranes, buoys, gangways, mining

machines)

Pre Assembled Units (onshore modules)

China projects EPIC’s

Subsea

Renewable products (offshore wind mill’s, large windmill masts, solar power)

PJOE has delivered to all continents and considers projects from all countries around the world.

PJOE is concentrating on international operating clients.

PJOE Facilities Description Jan,2014 Location Penglai, Shandong province, P.R. of China Quayside 700 m long, 10.07 m LAT Area Yard size ~ 535,000 sqm Agreed expansion ~ 315,000 sqm Workshops Total area covered workshops 69,030 sqm Tubular workshop 9,600 sqm Module workshop 30,500 sqm Warehouse incl. climate controlled stores 8,900 sqm Welding consumables store 160 sqm Painting stores 80 sqm Painting and blasting shops 10,230 sqm Piping shop carbon 4,400 sqm Piping shop GRE 1,350 sqm Piping shop exotic 1,620 sqm Mechanical shop 1,450 sqm E&I shop 480 sqm Profiling workshop 260 sqm X-ray bay 1,000 sqm Surfaced open air lay down area’s 36,000 sqm Tubular joining area’s 240,500 sqm Open air surfaced assembly area 50,000 sqm

Skidways Length Capacity Skidway 1 258 m long, width varies Max 50,000T structuresSkidway 2 258 m long, width varies 50 – 100 mt/mSkidway 3 258 m long, expandable to 400 m, width varies 50 – 90 mt/mSkidway 4 258 m long, expandable to 400 m, width varies 50 – 150 mt/m

Yard Utilities Capacity Air Atlas Copco GA 132-8.5 3 x 132 kW, 27 cum, 8.5 barAir Ingersoll and Rand 3 x 250 kW, 38.8 cum, 10 barElectricity Network 380/220VElectricity Generator 480 V/1,000 kWWater Network, potable

PJOE Main equipment No of units Capacity Crawler cranes 12 50t – 1,250t Wheel cranes 4 25t-50t Overhead cranes 33 5t~50t + up to 6 x 150 t module shop Gantry cranes 11 10t~30t Fork lifts 20 1.5t~20t Trailers 7 30t~320t Tractors 2 4.5t Rail mounted movers 11 25t ~100t Hydraulic man lift 1 36.6 m reach Trucks for various duties 3 Delivery, sweeping, spraying CNC bending machines 6 up to 170mm thickness, 3 m wide CNC pipe profile cutting machine 2 Up to 2,000 mm dia CNC plate flame cutting machine 2 CNC plate plasma cutting machine 4 Automatic cutting machines 41 Hydraulic press 2 4,000 t Boring machines 8 H-Beam machine 1

Automatic Welding Machines No of units Lincoln welding machines 136 SAW machines 26 CO2 welding machines 543 Manual welding machine 154 Manipulators Chengdu Hanyan 14

Other facilities Capacity Yard office, 5 floors 4,100 sqm Canteen 6,700 sqm Main office tower 1 (mid 2012) 8,500 sqm Welding school 80 trainees Dormitory new 600 people Dormitory 100 people Canteen facilities workers and clients Environmental controlled waste storage area Equipment maintenance facilities Pipe joining area 2 x 50, 2 x 35, 4 x 5 T gantry cranes

PJOE

PJOE Structural Module Workshop Function: Preparation and pre-assembly manufacturing for deck and module (sections)

• Size: 260 m by 111 m, 22 m height under the hook, 30 m total, ~ 30,500 sqm • 3 bays, 39, 39, 33 m width each • 6 overhead cranes, 50 T capacity • 6 overhead cranes, 150 T capacity • 6 overhead cranes, 20 T capacity • Maximum doors width 36 m • Equipment:

1 DAVI MAV 30100 rolling machine, capacity up to cold rolling 170mm, ~3m wide”. welding machines CNC cutting and automatic shot blast and prime coating machine H-Beam machine

Plan view

Location on yard

PJOE Piping workshops carbon, GRE, plastic and exotic Function: Preparation of pipe-spools

GRE

exotic carbon

Carbon steel and plastic piping shop

▪ Size: 42 m by 105 m, 8 m height, ~ 4400 sqm ▪ 4 overhead cranes, 2 x 5T, 2 x 10T capacity ▪ Pivot swivel cranes 4 x 2 T ▪ Equipment: carbon; Welding machines Multi angle sawing cutting machines (2) Pipe cutting machine (1) Pipe bevelling machine (2)

Auto welding arms (2) plastic: Butt and fittings fusion tools PE & PP

PJOE

Carbon and plastic

Plan view carbon and plastics piping shop Exotic Piping

▪ Size: 42 m by 105 m, 8 m height, ~ 1,900 sqm ▪ 2 overhead cranes, 2 x 10T capacity ▪ Equipment: Welding machines

Multi angle sawing cutting machine Pipe bevelling machines (2) Small tools as per exotic steel type

Carbon and plastic

Exotic

GRE

Plan view

PJOEGRE Piping

▪ Size: 18 m by 90.6 m, 8 m height, ~ 1,600 sqm ▪ 2 overhead cranes, 2 x 10T capacity ▪ Equipment: shavers, arbors, heating blankets, work benches, clamps etc

central located dust vacuum cleaning system ▪ Area to be used by third party and/or PJOE personnel

Location on yard

PJOE Painting and blasting shops Function: One plate and girder pre-treatment shop and three sets of blasting and painting halls

Size: Blasting and painting halls 01/02/03: 3 times 36 m by 36 m, 20 m height, ~ 3,888 sqm

Blasting and painting halls 04/05: 81 m by 52 m, 14 m height, ~ 4,200 sqm Pre-treatment at Module Workshop: 36 m by 15 m, 9 m height, ~ 540 sqm 1 set of Block painting halls: 20 m by 40 m, 15 m height, ~ 1,600 sqm 1 overhead crane, 5 T capacity Equipment: ▪ Blasting equipment and portable paint spray machines

Climate control equipment Heathers Blasting material recycle equipment

A new facility is built in 2010. For location see below. A total of three blocks is being planned for.

phase 1 new blasting and painting facilities

Module hall

PJOE The facility is to be fitted with the following features: • Blasting material recycling • Dust ventilation • Dehumidification equipment • Climate control • Ventilation

Plan view

Location on yard

PJOEPainting and Blasting

3 x 36 x 36 m chambers, ~ 20 m high, one blasting, two paintingAdditional blasting and coating facility planned for 2010 & 2011 in two stages, U shaped positioned;

1 x 3 chambers 36 x 36 m, 20 m high

1 x 2 chambers 36 x 36 m, 20 m high

Blasting grid recycling

Humidity control

Heating equipment

Blasting dust recycling

Ventilation equipment

PJOE Mechanical workshop Function: Preparation of all mechanical items including valves, machined items, drilling

(includes vehicle maintenance area)

▪ Size: 24 m by 68 m, 15 m height, ~ 1,610 sqm ▪ 2 overhead cranes, 10 T capacity ▪ Utilities and air ▪ Equipment: Welding machines Column boring machines (4) Lathe’s (3)

Plan view

Location on yard

PJOE E&I workshop Function: Preparation of all E&I, F&G, I&C, IT, telecom

▪ Size: 21 m by 22.5 m, 15 m height, ~ 475 sqm ▪ Containerized climate controlled store in warehouse (optional) ▪ Utilities and air ▪ Test facilities as required

Plan view

Location on yard

PJOE Structural Tubular Workshop Function: Handling of steel plates for rolling and tubular section welding

▪ Size: 78 m by 120 m, 18 m height, ~ 9400 sqm

3 bays ▪ Door size: maximum 18 m width ▪ No of overhead cranes: 7, 5 x 30T, 2 x 10T ▪ Equipment: 5 rollers: 1 MG S.R.L, MG3125V, capacity up to 120 mm, ~ 3 m wide 1 Sertom M.M., EMO 30-80, capacity up to 80 mm, ~ 3 m wide 1 Sertom M.M., EMO 30-30, capacity up to 50 mm, ~ 3 m wide 1 Zibo JiuJiu Machine Co, capacity up to 50 mm, ~ 3 m wide 1 Hubei Ezhong Heavy, capacity up to 60 mm, ~ 3 m wide

CNC flame and plasma plate cutting equipment

Hydraulic Press, 2000 T

PJOE

Automatic Longitudinal Welding machines

Plan view

Location on yard

PJOE Pipe profiling facility Function: Preparation of tube sections for tubular connections

Size:16 m by 16 m, 8 m height, 256 sqm Serviced by gantry cranes, max 50T capacity Equipment: HGG computer controlled, type RBPC 1500 profiling cutting machine Maximum size 1550 mm OD Maximum weight 25T

Plan view

Location on yard

PJOE Pre-assembly yard area’s (paved) Function: Preparation and welding of pre-assemblies

▪ Size: 200 m by 150 m and 150 m by 135 m, ~ 50,000 sqm ▪ 2 gantry cranes, 35 T capacity ▪ Equipment: Support utilities.

Plan view

Location on yard

PJOE Tubular joining area Function: Joining of rolled sections to tubulars

▪ Size: 345 m by 50 m, ~ 172,500 sqm ▪ 4 gantry cranes, maximum 50 T capacity, 2 small ▪ 12 Automatic circumferential welding machines ▪ Equipment: Welding machines.

Plan view

Location on yard

PJOEWarehouse Function: Storage of materials and supplies, warehousing consumables, E&I equipment

climate controlled storage by container.

Size: 72 m by 120 m, 8 m height, ~ 8600 sqm Equipment: Forklifts, K3 storage software system in use Climate controlled area’s available Includes welding consumables store and treatment equipment Bonded area under consideration

Plan view

Location on yard

PJOE Plate receiving facility Function: Receiving area plates and girders and apply traceability, inspection

▪ Size: plates for tubulars 195 m by 24 m, ~ 4,700 sqm ▪ plates and girders for modules 192 m by 36 m and 108 m by 21m ~ 9,300 sqm ▪ Serviced by 6 Gantry cranes, 4 x 30T, 2 x 20T capacity ▪ Plate cutting area

Plan view’s

Location on yard

PJOE PJOE offices We have two offices, one at the yard and one tunnel connected (future) opposite the yard. Function: Accommodating the management, staff, project management, clients and other support disciplines. Yard office: Size: 40.6 m by 20.2 m, total area ~4,100 sqm Floors: 5 Total office area: ~3,200 sqm Main office: Client Tower Size: 60.4 m by 18.4 m, total area ~ 8,500 sqm Floors: 8 Total office area: ~ 6,200 sqm Canteen: Size 64.5 m by 64.5 m, total area ~6,700 sqm Floors: 2 Capacity: 1,000 employees, 60 private dinning places Buffets: 2 PJOE personnel, 2 clients

PJOE office: Size: 102.4 m by 18.4 m plus 74 m by 25.5 m, total area ~43,960 sqm

Floors: 11 Total office area:~30,00 sqm (To be realized coming years)

(present yard office)

Location at yard

>