Ppgua Aug 2008 as Rolled Out Feb 2009

TABLE OF CONTENT PETRONAS PROCEDURES AND GUIDELINES

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SUPERSEDE ISSUE: AUG 2000

ISSUED BY PETROLEUM MANAGEMENT UNIT

REVISION 2 AUG 2008

SECTION 1 GUIDELINES FOR HEALTH, SAFETY AND ENVIRONMENT 1

Executive Summary 1

1.1 INTEGRATING HSE MS IN E&P LIFE CYCLE 2

1.2 HSE MS REQUIREMENTS AND EXPECTATIONS 2 1.2.1 Leadership & Commitment 3 1.2.2 Policy & Strategic Objectives 3 1.2.3 Organisational Structure, Resources & Documentation 4 1.2.4 Evaluation and Risk Management 5

1.2.4.1 Exploration Phase 6 1.2.4.2 Development Phase 6 1.2.4.3 Fabrication/Installation/HUC 7 1.2.4.4 Production Phase 8 1.2.4.5 Decommissioning Phase 9

1.2.5 Planning 9 1.2.5.1 Asset Integrity 10 1.2.5.2 Procedures and Work Instructions 10 1.2.5.3 Management of Change 11 1.2.5.4 Contingency and Emergency Planning 12

1.2.6 Implementation and Monitoring 12 1.2.6.1 Contractor HSE Management 13

1.2.7 Audit 15 1.2.8 Review 16

1.3 PETRONAS INSPECTION & AUDIT 16

1.4 REPORTING AND KEY PERFORMANCE INDICATOR (KPI) 16

1.5 INCIDENT REPORTING & INVESTIGATION 17

1.6 SAFETY PASSPORT 17

1.7 PROHIBITION OF DRUG AND ALCOHOL ABUSE 18

1.8 FACILITIES GAZZETTEMENT 18

1.9 OTHER RELATED PROCEDURES 19

SECTION 2 GUIDELINES FOR EXPLORATIONS SURVEY OPERATIONS 20

Executive Summary 20

2.1 FISH TRAP SURVEY OPERATIONS 21 2.1.1 Pre-Survey 21 2.1.2 Survey Operations 21 2.1.3 Post-Survey 22

2.2 MARINE SITE SURVEY OPERATIONS 23


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2.2.1 Pre-Survey 23 2.2.2 Survey Operations 23 2.2.3 Post-Survey 24

2.3 MARINE SEISMIC SURVEY OPERATIONS 24 2.3.1 Pre-Survey 24 2.3.2 Survey Operations 25 2.3.3 Post-Survey 25

2.4 LAND SEISMIC SURVEY OPERATIONS 26 2.4.1 Pre-Survey 26 2.4.2 Survey Operations 26 2.4.3 Post-Survey 27

2.5 OCEAN BOTTOM CABLE AND SEABED LOGGING 27 2.5.1 Pre-Survey 27 2.5.2 Survey Operations 28 2.5.3 Post-Survey 28

SECTION 3 GUIDELINES FOR FDP REVIEW AND APPROVAL PROCESS 29


3.1 GENERAL APPROACH 30

3.2 RESPONSIBILITY 30

3.3 CONTENT AND SUBMISSION 31

3.4 THE OVERALL PROCESS 32

3.5 KEY FEATURES OF MILESTONE REVIEWS 33

3.6 GUIDELINES FOR MILESTONE REVIEWS 35

3.7 GOVERNMENT AND PETRONAS' OBJECTIVES 36

3.8 APPROVAL FROM PETRONAS 36

3.9 FDP EXECUTION PHASE 37

3.10 DIVERGENCE FROM APPROVED FDP 38

SECTION 4 GUIDELINES FOR PROJECT DEVELOPMENT MANAGEMENT 41


4.1 FIELD DEVELOPMENT PHASES 43

4.2 FIELD DEVELOPMENT PLAN (FDP) REVIEW AND APPROVAL PROCESS 44


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4.3 SPECIAL CONSIDERATIONS 45

4.4 PROJECT IMPLEMENTATION PHASES AND ACTIVITIES 46 4.4.1 Feasibility Study 46 4.4.2 Conceptual Design / Front End Engineering Design (FEED) 47 4.4.3 Detailed Design 48 4.4.4 Fabrication and Construction 49 4.4.5 Transportation and Installation 50 4.4.6 Hook-up and Commissioning (HUC) 51 4.4.7 Development Drilling 51 4.4.8 Facilities Decommissioning 52

4.5 CONTRACTING AND PROCUREMENT 52

4.6 HEALTH, SAFETY AND ENVIRONMENT (HSE) 52

4.7 PROJECT QUALITY ASSURANCE (QA) 53

4.8 REPORTING AND DOCUMENTATION 53

4.9 PROJECT PERFORMANCE 55

4.10 WORK PROGRAMME AND BUDGET (WP&B) 56

4.11 REGULATORY REQUIREMENTS 56

SECTION 5 PROCEDURES FOR DRILLING OPERATIONS 57


5.1 DEFINITIONS 58 5.1.1 General 58 5.1.2 Specific 58 5.1.3 Abbreviations 61 5.1.4 Cross Reference Procedures 62 5.1.5 Official correspondence 62

5.2 DRILLING PROGRAMME APPROVAL 62 5.2.1 Notification 62 5.2.2 Wellsite Survey and Shallow Hazard Report 62 5.2.3 Well Positioning 63

5.2.3.1 Pre-survey Preparation 63 5.2.3.2 Positioning Operations 63 5.2.3.3 Post-positioning Works 63

5.2.4 Notice of Operations 63 5.2.5 Variations 64 5.2.6 Drilling Base or Drilling Unit Design 65 5.2.7 Support Craft 65

5.2.7.1 General 65 5.2.8 Equipment and Provision 66

5.2.8.1 General Requirements 66 5.2.8.2 Drilling Unit Ancillaries 66


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5.2.8.2.1 Pollution Prevention 66 5.2.8.2.2 Pressure Systems 67 5.2.8.2.3 Helideck on Drilling Units 67

5.2.8.3 Drilling Rigs 67 5.2.8.3.1 General Arrangement Drawings 67

5.2.8.4 BOP Equipment 68 5.2.8.5 Weather Data Recordings 68 5.2.8.6 Protection against External Hazards 68 5.2.8.7 Personnel Safety and Welfare 69

5.2.8.7.1 Safety Guards and Exits 69 5.2.8.7.2 Derrick Escape 69 5.2.8.7.3 Rotary Tongs 70 5.2.8.7.4 Medical Facilities and Provisions 70

5.2.8.8 Electrical Installation 70 5.2.8.8.1 Equipment and Standards 70 5.2.8.8.2 Lighting 71 5.2.8.8.3 Emergency Electrical Power Supply 71

5.2.8.9 Forced Air System and Ventilation 72 5.2.8.9.1 Hazardous Area 72 5.2.8.9.2 Ventilation 72 5.2.8.9.3 Engines and Motors 72 5.2.8.9.4 Exhaust Pipes 73

5.2.8.10 Fire Protection 73 5.2.8.10.1 Fire fighting equipment 73 5.2.8.10.2 Fire Alarm Systems 74

5.2.8.11 Diving 74 5.2.8.12 Gas Detection System 74

5.2.9 Personnel 75 5.2.10 Emergency Shutdown (ESD) 75

5.3 TECHNICAL REQUIREMENTS FOR DAILY OPERATION 75 5.3.1 General Provisions 75 5.3.2 Moving and Positioning Drilling Units 75

5.3.2.1 General Provisions 75 5.3.2.2 Anchor Testing For Drilling Units 76 5.3.2.3 Bottom Supported Units 76 5.3.2.4 Diving Operations 76

5.3.3 Casing and Cementing 77 5.3.3.1 General Requirements 77 5.3.3.2 Drive or Structural Casing 77 5.3.3.3 Conductor Casing 77 5.3.3.4 Surface Casing 78 5.3.3.5 Intermediate Casing 79 5.3.3.6 Production Casing 80 5.3.3.7 Pressure - Testing of Casing 80 5.3.3.8 Records 81 5.3.3.9 Cementation 81 5.3.3.10 Excess Cement Volume 82 5.3.3.11 Inadequate Cement Job 82

5.3.4 Well Directional Survey 82 5.3.4.1 Vertical Wells (Inclination 5 ) 82 5.3.4.2 Directional Wells (Inclination 5 ) 83


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5.3.5 Blowout Prevention 83 5.3.5.1 BOP Equipment 83 5.3.5.2 Auxiliary Equipment 84 5.3.5.3 Surface BOP 84 5.3.5.4 Subsea BOP 85 5.3.5.5 Subsea BOP Diversion 87 5.3.5.6 Testing of BOP 87

5.3.5.6.1 BOP Controls 87 5.3.5.6.2 Pressure Tests 87 5.3.5.6.3 Actuation 88 5.3.5.6.4 Inspection and Maintenance 88

5.3.6 Mud Programme 89 5.3.6.1 General Provisions 89 5.3.6.2 Mud Control 89 5.3.6.3 Mud Test Equipment 91 5.3.6.4 Mud Quantities 91

5.3.7 Formation Integrity Testing 92 5.3.8 Lost Circulation 92 5.3.9 Detection of Over-Pressure 93 5.3.10 Suspension of Operations 94 5.3.11 Floating Drilling Operations 95 5.3.12 Shallow Hazards or Hydrocarbons 95 5.3.13 Underbalanced Drilling 95

5.3.13.1 Defintion 95 5.3.13.2 General requirements 96

5.4 MATERIAL HANDLING AND DISPOSAL 96 5.4.1 Material Handling 96

5.4.1.1 Bulk Material 96 5.4.1.2 Other Materials 97

5.4.2 Disposal of Materials 97 5.4.2.1 Drilling Mud 98 5.4.2.2 Solid Waste 99 5.4.2.3 Fluid Waste 100 5.4.2.4 Sewage 100

5.4.3 Pollution Prevention 101

5.5 WELL EVALUATION 101 5.5.1 General Provisions 101 5.5.2 Drilling Cuttings 102

5.5.2.1 Sample Frequency 102 5.5.2.2 Sample Container 102

5.5.3 Cores 102 5.5.3.1 Conventional Cores 102 5.5.3.2 Side Wall Cores 102

5.5.4 Formation Evaluation Logging 103 5.5.5 Oil and Gas Flow Testing 103

5.6 RECORDING AND REPORTING 103 5.6.1 Priority Reports 103

5.6.1.1 General 103 5.6.1.2 Arrival and Rig Release Notice 104


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5.6.2 General Provisions 104 5.6.2.1 Daily Drilling Report 104 5.6.2.2 Supporting Reports 105

5.6.3 Final Drilling/Well Completion Report 105 5.6.4 Company Press Release 106

5.7 PLUGGING AND ABANDONMENT OF WELLS 106 5.7.1 Responsibility to Abandon a Well 106 5.7.2 Application to Abandon a Well 107 5.7.3 Subsequent Report of Abandonment 107 5.7.4 Permanent Abandonment 107

5.7.4.1 Isolation of Zones in Open Hole 107 5.7.4.2 Isolation of Open Hole 108 5.7.4.3 Plugging or Isolation of Perforated Intervals 109 5.7.4.4 Plugging of Casing Stubs 109

5.7.4.4.1 Stub Terminating Inside Casing String 109 5.7.4.4.2 Stub Terminating Below Casing String 110 5.7.4.4.3 Liner Top or Screen 110 5.7.4.4.4 Plugging of Annular Space 110 5.7.4.4.5 Surface Plug 110

5.7.4.5 Testing of Plugs 111 5.7.4.6 Drilling Fluid 111 5.7.4.7 Clearance of Location 111

5.7.5 Well Suspension (Semi-Permanent Well Suspension) 112 5.7.6 Temporary Well Suspension 112 5.7.7 Suspended Well 112

5.8 COMPLETION OPERATION 113 5.8.1 General Provision 113 5.8.2 Wellhead Equipment 113 5.8.3 Tubing Requirements 113 5.8.4 Packer Requirements 113 5.8.5 Separation of Zones 114 5.8.6 Landing Nipple 114 5.8.7 Sub-surface Safety Valve 114 5.8.8 Completion Fluids 114

5.9 WORKOVER OPERATIONS 115 5.9.1 General Requirements 115

5.9.1.1 Operations 115 5.9.1.1.1 Workover Rigless definition 115 5.9.1.1.2 Workover Rig definition 115

5.9.1.2 Workover Structures 116 5.9.1.3 Pump-Down Operations 116 5.9.1.4 Travelling Block Safety Device 116 5.9.1.5 Well Control Fluids 116 5.9.1.6 Well Control 117 5.9.1.7 Well Unloading Operations 117 5.9.1.8 Pumping Operations 117 5.9.1.9 Emergency Shutdown (ESD) 118

5.9.2 Notification and Submittal Requirements 118 5.9.2.1 Notice of Workover Operations 118


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5.9.2.2 Workover Report 119 5.9.2.3 Routine Operations 119

5.9.3 Pressure Control Requirements 120 5.9.3.1 Major Workover Operations 120 5.9.3.2 Minor Workover Operations (Excluding Wireline Operation) 120 5.9.3.3 Coiled-Tubing Operations 121 5.9.3.4 Snubbing Operations 121 5.9.3.5 Other Equipment 122

5.9.4 Testing and Actuation Requirements 122 5.9.4.1 Pressure Test 122 5.9.4.2 Actuation 122 5.9.4.3 Lubricators 123

5.9.5 Wireline Operations 123 5.9.5.1 General Requirements 123 5.9.5.2 Operations In Cased Hole 124 5.9.5.3 Operations In Open Hole 124 5.9.5.4 Swabbing Operations 125

5.9.6 Rigging Up or Down of Workover or Completion Equipment 125

5.10 HYDROGEN SULPHIDE (H2S) DRILLING OPERATIONS 126 5.10.1 General Provisions 126 5.10.2 Physical Properties and Toxicity of H2S 126 5.10.3 Breathing Equipment 126 5.10.4 H2S Gas Detection System 127 5.10.5 Wind Direction Equipment 127 5.10.6 Ventilation 127 5.10.7 Personnel Training 128 5.10.8 Contingency Plan 128 5.10.9 Rig Equipment 129

5.10.9.1 Drill Pipe 129 5.10.9.2 Tubulars 129 5.10.9.3 BOP and Related Equipment 129 5.10.9.4 Flare System 129

5.10.10 Drilling Operations 130 5.10.10.1 Pipe Trips and Stripping Operations 130 5.10.10.2 Well Control 130 5.10.10.3 Coring Operations 130 5.10.10.4 Mud Programme 130

5.10.11 Well Testing Operations 131

5.11 ONSHORE DRILLING OPERATION 131 5.11.1 General 131 5.11.2 Reference for Well Depth 131 5.11.3 Well Near Potential Hazardous Sites 132 5.11.4 Smoking 132 5.11.5 Fire Prevention and Safety 132 5.11.6 Engines 132

5.11.6.1 Internal Combustion Engines 132 5.11.6.2 Diesel Engines 133

5.11.7 Plug & Abandonment Requirements 133 5.11.8 Protection of Fresh Water Sands 134 5.11.9 Restoration of the Drill Site 134


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5.11.10 BOP Requirements 134 5.11.11 BOP Pressure Test 135 5.11.12 Flare Pit and Vent/Bleed-Off Line 136 5.11.13 Casings 136

5.11.13.1 Stove Pipe 137 5.11.13.2 Conductor Casing 137

5.11.14 Drilling Liquid Waste 138 5.11.15 Well Near Water 138

5.12 ONSHORE COMPLETION AND WORKOVER OPERATIONS 139 5.12.1 General 139 5.12.2 Sub-surface Safety Valve 139 5.12.3 Well Stimulation 139 5.12.4 Disposal of Produced Fluids 139 5.12.5 Onshore Wellhead Valve Assembly (X'mas Tree) 140 5.12.6 Wells on Pump 141 5.12.7 Fencing and Well Security 141

SECTION 6 PROCEDURES FOR SUBSURFACE SAFETY DEVICES 142


6.1 INSTALLATION 143

6.2 SHUT-IN WELLS 143

6.3 INJECTION WELLS 143

6.4 VALVE SPECIFICATIONS 143

6.5 REINSTALLATION, TESTING AND MAINTENANCE 143

6.6 TUBING AND PLUG TESTING 144

6.7 ADDITIONAL PROTECTIVE EQUIPMENT 144

6.8 OTHER COMPLETION TECHNIQUES 144

6.9 RECORDS 144

SECTION 7 GUIDELINES FOR BARGES OPERATING OFFSHORE MALAYSIA 145


7.1 INTRODUCTION 146 7.1.1 Application 146 7.1.2 Requirements 147 7.1.3 Definitions 148

7.1.3.1 Steel or Other Equivalent Material 148 7.1.3.2 Non-Combustible Materials 148 7.1.3.3 A Standard Fire Test 149


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7.1.3.4 A Class Divisions 149 7.1.3.5 B Class Divisions 150 7.1.3.6 C Class Divisions 150 7.1.3.7 Public Spaces 151 7.1.3.8 Control Stations 151 7.1.3.9 Corridors 151 7.1.3.10 Accommodation Spaces 151 7.1.3.11 Stairways 151 7.1.3.12 Service Spaces (low risk) 151 7.1.3.13 Machinery Spaces of Category A 152 7.1.3.14 Other Machinery Spaces 152 7.1.3.15 Hazardous Areas 152 7.1.3.16 Service Spaces (high risk) 152 7.1.3.17 Open Decks 152

7.2 ACCOMMODATION SPACES 153 7.2.1 Restrictions 153 7.2.2 Construction of Accommodation Spaces 153 7.2.3 Arrangement of Sleeping Spaces 154 7.2.4 Size of Sleeping Spaces 154 7.2.5 Berths and Lockers 154 7.2.6 Wash Spaces, Toilet Spaces and Shower Spaces 155 7.2.7 Mess Rooms 157 7.2.8 Hospital (Sick Bay) Space 157 7.2.9 Hospital (Sick Bay) Space Not Required 158

7.3 AUTOMATIC FIRE DETECTION AND ALARM SYSTEMS 159

7.4 LIFE SAVING APPLIANCES 161

7.5 FIRE FIGHTING EQUIPMENT 162 7.5.1 Fire Pump 162 7.5.2 Fire Main 162 7.5.3 Fire Hose 162 7.5.4 Hydrants 163 7.5.5 International Shore Connection 163 7.5.6 Portable Fire Extinguisher 163 7.5.7 Firemens Outfits 163

7.6 PROVISION FOR HELICOPTER FACILITIES 164 7.6.1 Helicopter Deck 164 7.6.2 Fire Extinguisher 165

7.7 OPERATING REQUIREMENTS 165 7.7.1 Operating Manual 165

7.8 STRUCTURAL FIRE INTEGRITY TABLES 166

SECTION 8 PROCEDURES FOR CRUDE OIL PRODUCTION ALLOWABLES 171



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8.1 LONG TERM CRUDE OIL PRODUCTION FORECAST SUBMISSION BY PS CONTRACTOR 172

8.2 SHORT TERM APPROVED PRODUCTION LEVEL 172

8.3 PRODUCTION VARIATION 173

SECTION 9 PROCEDURES FOR GAS PRODUCTION & FLARING/VENTING LIMIT 175


9.1 LONG TERM NON-ASSOCIATED GAS PRODUCTION FORECAST SUBMISSION BY PS CONTRACTOR 176

9.2 LONG TERM ASSOCIATED GAS PRODUCTION FORECAST SUBMISSION BY PS CONTRACTOR 176

9.3 SHORT TERM NON-ASSOCIATED AND ASSOCIATED GAS PRODUCTION 176

9.4 GAS FLARING / VENTING 177 9.4.1 Non-associated gas 177 9.4.2 Associated gas 178

9.5 FLARING/VENTING PERMIT 179

SECTION 10 GUIDELINES FOR ONSHORE/OFFSHORE OPERATIONS 180


10.1 NOTICE OF INTENT 181

10.2 OPERATIONS MANUAL 181

10.3 SIMULTANEOUS OPERATIONS PROCEDURES 181

10.4 SHUTDOWN 182 10.4.1 Annual Shutdown Plan 182 10.4.2 Unplanned Shutdown 182

10.5 AS-BUILT DRAWINGS 183

10.6 DAILY PRODUCTION OPERATIONS REPORT 183

10.7 QUARTERLY PRODUCTION OPERATIONS REPORT 183

10.8 TERMINAL OPERATIONS 184

10.9 INSPECTION & OPERATIONS AUDIT 184

SECTION 11 GUIDELINES FOR FACILITIES RELIABILITY & INTEGRITY MANAGEMENT 185


Definitions 186


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11.1 INTRODUCTION 187

11.2 FULL LIFE CYCLE MANAGEMENT 187

11.3 MANAGEMENT SYSTEM 187

11.4 OPERATIONS OF FACILITIES 189

11.5 INSPECTION AND MAINTENANCE 190 11.5.1 Compliance to Legislative Requirements 190 11.5.2 Philosophy and Related Documents 190 11.5.3 Minimum Requirements for Inspection & Maintenance 191

11.5.3.1 Topsides / Onshore Terminals 191 11.5.3.2 Structures 194 11.5.3.3 Pipelines 194 11.5.3.4 Wellhead and Downhole System 196 11.5.3.5 Subsea Systems 196

11.5.4 Planning and Implementation 197 11.5.5 Materials Management 197 11.5.6 Contracting and Contractor Management 197 11.5.7 Reporting and Key Performance Indicator (KPI) 198

11.6 MAJOR FAILURES AND CORRECTIVE ACTIONS 198

11.7 MANAGEMENT OF CHANGE 198

11.8 INFORMATION AND KNOWLEDGE MANAGEMENT 199

11.9 PRESERVATION 199

11.10 FACILITIES MODIFICATION, UPGRADING OR REJUVENATION 199

SECTION 12 GUIDELINES FOR RESERVOIR MANAGEMENT 201


12.1 PREAMBLE 202 12.1.1 Reservoir Management 202 12.1.2 Full Field Reviews 202

12.2 EARLY DEPLETION STAGE 203

12.3 MIDDLE AND LATE STAGE 205

12.4 IMPROVED AND ENHANCED RECOVERY 205

12.5 RESERVOIR MANAGEMENT PLAN 207

12.6 WELL ABANDONMENT 207


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SECTION 13 GUIDELINES FOR WELL TEST, PRODUCTION MEASUREMENT AND ALLOCATION208


13.1 OIL PRODUCING WELL 209 13.1.1 Production Rate Test 209 13.1.2 Bottom Hole Pressure Survey 210

13.1.2.1 Transient Pressure Survey 210 13.1.2.2 Static Bottom Hole Pressure (SBHP)Survey 210 13.1.2.3 Production Logging Tool (PLT) Survey 210 13.1.2.4 Flowing Survey 210 13.1.2.5 Fluid Contact Logging Survey 210

13.2 GAS PRODUCING WELL 211 13.2.1 Deliverability Test 211 13.2.2 Periodic Production Rate Test 211 13.2.3 Bottom Hole Pressure Survey 212

13.2.3.1 Transient Pressure Survey 212 13.2.3.2 Static Bottom Hole Pressure (SBHP)Survey 212

13.2.3.2.1 Production Logging Tool (PLT)Survey 212 13.2.3.2.2 Fluid Contact Logging Survey 212

13.3 INJECTION WELL 213 13.3.1 Injection Rate Measurement 213 13.3.2 Injectivity Test 213 13.3.3 Injection Profiling Survey 213 13.3.4 Injection Fall Off Survey 213

13.4 REQUIREMENT FOR WELL TESTING MEASUREMENT DEVICES. 214

13.5 EXCEPTION TO THE ABOVE REQUIREMENT 214

13.6 RECORD KEEPING 214

13.7 PRODUCTION MEASUREMENT AND ALLOCATION 214 13.7.1 Production to each Field and Platform/Production Station. 214

13.7.1.1 Measurement 214 13.7.1.2 Allocation 215

13.8 PRODUCTION ALLOCATION TO EACH PRODUCTION STRING 215

13.9 PRODUCTION ALLOCATION TO EACH PRODUCING INTERVAL 215

SECTION 14 GUIDELINES FOR DYNAMIC LIQUID HYDROCARBON MEASUREMENT 217


14.1 INTRODUCTION 218 14.1.1 Scope 218 14.1.2 Distribution, Intended Use and Regulatory Considerations 218 14.1.3 Definitions 219 14.1.4 Abbreviations 223


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14.2 GENERAL REQUIREMENTS 224 14.2.1 Units of Measurement 224 14.2.2 Approval Requirements 224

14.2.2.1 Measurement and Allocation Concept 224 14.2.2.2 Metering Project Implementation 226 14.2.2.3 Government Regulatory Requirement 227 14.2.2.4 Deviations 227

14.2.3 Documentation 227

14.3 DESIGN 228 14.3.1 General Requirement 228 14.3.2 Meter Run Design / Pipe Work 230

14.3.2.1 Flowmeter Type 232 14.3.2.2 Prover Design 232 14.3.2.3 Displacement Prover 233 14.3.2.4 Master-Meter Provers 238

14.3.3 Instrument Requirement 239 14.3.3.1 Field Instrumentation 239

14.3.3.1.1 Location of Sensors 239 14.3.3.1.2 Installation of Instruments 239 14.3.3.1.3 Instrument Loops 240 14.3.3.1.4 Transmission of Pulse Signal 240 14.3.3.1.5 Conversion of Signals from Analog to Digital Form 241 14.3.3.1.6 Temperature Measurement 241 14.3.3.1.7 Pressure Measurement 241 14.3.3.1.8 Density Measurement 242

14.3.3.2 Control Room Instrumentation 242 14.3.3.2.1 Environmental 242

14.3.4 Computer Based Monitoring and Control Functions Requirement 243 14.3.4.1 General 243 14.3.4.2 Data Security 244 14.3.4.3 Calculation 245 14.3.4.4 Printouts and Hardcopies 246 14.3.4.5 Meter Proving Algorithm Routine 246 14.3.4.6 Power Supply 247

14.3.5 Sampling and Analysis Requirement 247 14.3.6 Metering Data 248

14.4 TESTING, CALIBRATION AND COMMISSIONING 249 14.4.1 General Requirement 249 14.4.2 Calibration 249

14.4.2.1 General 249 14.4.2.2 Instrument Calibration 250 14.4.2.3 Prover Calibration 250

14.4.2.3.1 Displacement Prover Calibration 250 14.4.2.3.2 Master-Meter Prover Calibration 252

14.4.2.4 Meter Calibration 253 14.4.3 Testing 253

14.4.3.1 General Testing 253 14.4.3.2 Factory Acceptance Test 254

14.4.3.2.1 General Check 254 14.4.3.2.2 Metering Panel and Instrumentation Equipment Tests 254


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14.4.3.2.3 Flow Testing Calibration 257 14.4.3.3 Site Acceptance Test 259

14.4.4 Commissioning 260 14.4.4.1 General 260 14.4.4.2 Installation Quality Assurance 260 14.4.4.3 Commissioning 260 14.4.4.4 Start-up 261

14.5 OPERATION, VALIDATION AND ACCOUNTING 261 14.5.1 General Requirement 261 14.5.2 System Operation 261

14.5.2.1 Operating Manual 263 14.5.3 System Validation 263

14.5.3.1 Validation Manual 264 14.5.4 System Maintenance 266 14.5.5 Security 266 14.5.6 Accounting / Allocation Manual 267 14.5.7 Metering Station Record Keeping 267

14.5.7.1 Log Books/Records 267 14.5.8 Direct Reporting 269

14.6 FINAL PROVISION 270

14.7 REFERENCES 271

SECTION 15 GUIDELINES FOR GAS MEASUREMENT 275


15.1 INTRODUCTION 276 15.1.1 Scope 276 15.1.2 Distribution, Intended Use and Regulatory Considerations 276 15.1.3 Definitions 277

15.1.3.1 General definitions 277 15.1.3.2 Specific definitions 277

15.1.4 Abbreviations 280

15.2 GENERAL REQUIREMENTS 281 15.2.1 Units of Measurement 281 15.2.2 Approval Requirements 281

15.2.2.1 Measurement and Allocation Concept 282 15.2.2.2 Metering Project Implementation 283 15.2.2.3 Government regulatory requirement 284 15.2.2.4 Deviations 284

15.2.3 Documentation 284

15.3 DESIGN 285 15.3.1 General Requirement 285 15.3.2 Mechanical Requirement and Primary Element 286

15.3.2.1 Orifice Meter 286 15.3.2.1.1 Orifice plate and fitting 287 15.3.2.1.2 Meter Tubes 287


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15.3.2.1.3 Valves and Fittings 288 15.3.2.2 Gas Ultrasonic Flow Meter (Multipath) 289

15.3.2.2.1 General Requirements 289 15.3.2.2.2 Meter Tubes 290

15.3.2.3 Other Meters 290 15.3.3 Instrument Requirement 291

15.3.3.1 Field Instrumentation 291 15.3.3.1.1 Instrument loop 291 15.3.3.1.2 Differential Pressure Measurement 291 15.3.3.1.3 Density Measurement 292 15.3.3.1.4 Temperature Measurement 293 15.3.3.1.5 Pressure Measurement 294 15.3.3.1.6 Local Recorders 294

15.3.3.2 Control Room Instrumentation 295 15.3.4 Computer Based Monitoring and Control Functions Requirements 295

15.3.4.1 General 295 15.3.4.2 Data Security 297 15.3.4.3 Calculation 297 15.3.4.4 Printouts and Hardcopies 298 15.3.4.5 Power Supply 298

15.3.5 Sampling and Analytical Instrumentation 298 15.3.5.1 General Requirements Sampling 298 15.3.5.2 On-Line Gas Chromatograph 299 15.3.5.3 Gas Sampler Systems 300

15.4 TESTING, CALIBRATION AND COMMISSIONING 300 15.4.1 General Requirement 300 15.4.2 Calibration 301

15.4.2.1 General 301 15.4.2.2 Meter Calibration / Inspection 301

15.4.2.2.1 Orifice Meter 301 15.4.2.2.2 Ultrasonic Meter 302

15.4.2.3 Instrument Calibration 302 15.4.3 Testing 302

15.4.3.1 General Testing 302 15.4.3.2 Factory Acceptance Test 303

15.4.3.2.1 General Check 303 15.4.3.2.2 Metering Panel and Instrumentation Equipment Tests 303

15.4.3.3 Site Acceptance Test 305 15.4.4 Commissioning 306

15.4.4.1 General 306 15.4.4.2 Installation Quality Assurance 307 15.4.4.3 Commissioning 307 15.4.4.4 Start-up 307

15.5 OPERATION, VALIDATION AND ACCOUNTING 307 15.5.1 General Requirement 307 15.5.2 System Operation 308

15.5.2.1 Operating Manual 308 15.5.3 System Validation 308

15.5.3.1 Validation Manual 309 15.5.4 System Maintenance 311


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15.5.5 Security 311 15.5.6 Accounting / Allocation Manual 312 15.5.7 Metering Station Record Keeping 312

15.5.7.1 Log Books/Records 312 15.5.8 Direct Reporting 313

15.6 FINAL PROVISION 314

15.7 REFERENCE 315

SECTION 16 GUIDELINES FOR DECOMMISSIONING OF UPSTREAM INSTALLATION 316


16.1 INTRODUCTION 317 16.1.1 Definitions 317

16.2 OBJECTIVE OF THE GUIDELINES 318

16.3 DECOMMISSIONING PHILOSOPHY AND REQUIREMENT 318 16.3.1 PETRONAS Decommissioning Philosophy 318 16.3.2 General Decommissioning Requirement 319

16.3.2.1 Safe Operations of the Facilities towards Integrity, Health, Safety and Environment (HSE) 319 16.3.2.2 Field Review 320 16.3.2.3 Legislative Requirement 320

16.4 LEGAL FRAMEWORK 320 16.4.1 General 320 16.4.2 Environmental 322 16.4.3 International Obligations 323

16.5 ONSHORE (LAND AND TERRITORIAL SEA) 323 16.5.1 Pre-Decommissioning Process 323

16.5.1.1 Establishment of Decommissioning Options for Onshore Facilities 324 16.5.1.1.1 Land Installations 324

16.5.1.1.1.1 Structure 324 16.5.1.1.1.2 Total Removal and Reinstatement of Land 325 16.5.1.1.1.3 Pipeline 325 16.5.1.1.1.4 Well 325

16.5.1.1.2 Territorial Sea 325 16.5.1.1.2.1 Sub-Structures 325

16.5.1.1.2.1.1 Relocate / Reuse 325 16.5.1.1.2.1.2 Artificial Reef 326 16.5.1.1.2.1.3 Total Removal 326

16.5.1.1.2.2 Topsides 327 16.5.1.1.2.2.1 Mothball / Relocate / Reuse 327

16.5.1.1.2.3 Pipeline 327 16.5.1.1.2.4 Well Abandonment 328 16.5.1.1.2.5 Marine Facilities 328

16.5.1.1.2.5.1 Relocate / Reuse 328 16.5.1.2 Decommissioning Plan 328

16.5.1.2.1 Health, Safety and Environment (HSE) Requirement Health 329


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16.5.1.2.2 Consultation and Liaison 330 16.5.1.3 Incorporation in Work Programme and Budget (WP&B) 331

16.5.2 Decommissioning Execution 331 16.5.2.1 Project Execution Plan 331 16.5.2.2 Land Installation Decommissioning 332

16.5.2.2.1 Structure 332 16.5.2.2.1.1 Mothball / Relocate / Reuse 332

16.5.2.2.2 Pipeline 332 16.5.2.2.3 Well Abandonment 332

16.5.2.3 Territorial Sea 332 16.5.2.3.1 Sub-Structure 332

16.5.2.3.1.1 Total Removal 333 16.5.2.3.1.2 Relocate/Reuse 333 16.5.2.3.1.3 Artificial Reef 333

16.5.2.3.2 Topside 334 16.5.2.3.3 Pipeline 335 16.5.2.3.4 Well Abandonment 335 16.5.2.3.5 Marine Facilities 336

16.5.3 Post Decommissioning Process 336 16.5.3.1 Removal of Debris and Seabed Clearance 336 16.5.3.2 Verification 336 16.5.3.3 Post Environmental Assessment 337 16.5.3.4 Disposal 337 16.5.3.5 Post Decommissioning Reports 338

16.5.4 Report 338 16.5.5 Degazettement 338 16.5.6 Residual Liability 338

16.6 SHALLOW WATER 339 16.6.1 Pre-Decommissioning Process 339

16.6.1.1 Establishment of Decommissioning Options 339 16.6.1.1.1 Sub-structures 339

16.6.1.1.1.1 Relocate / Reuse 339 16.6.1.1.1.2 Artificial Reef 340 16.6.1.1.1.3 Total Removal 340 16.6.1.1.1.4 Partial Removal 340

16.6.1.1.2 Topsides 341 16.6.1.1.2.1 Mothball / Relocate / Reuse 341


16.6.1.1.4.1 Dry Wellhead 342 16.6.1.1.4.2 Subsea Wellhead 342

16.6.1.1.5 Mobile and Floating Facilities 342 16.6.1.2 Decommissioning Plan 342 16.6.1.3 Health, Safety and Environment (HSE) Requirement 342 16.6.1.4 Consultation and Liaison 344 16.6.1.5 Incorporation in Work Programme and Budget (WP&B) 345

16.6.2 Decommissioning Process 345 16.6.2.1 Project Execution Plan 345 16.6.2.2 Sub-structures Decommissioning 345

16.6.2.2.1 Partial Removal 346 16.6.2.2.2 Total Removal 346 16.6.2.2.3 Topple 346


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16.6.2.3 Topside 346 16.6.2.4 Pipeline 347 16.6.2.5 Well Abandonment 348 16.6.2.6 Marine Facilities 348


16.6.4 Report 350 16.6.5 Degazettement 351 16.6.6 Residual Liability 351

16.7 DEEPWATER 351 16.7.1 Pre-Decommissioning Process 351

16.7.1.1 Establishment of Decommissioning Options 352 16.7.1.1.1 Sub-structures 352

16.7.1.1.1.1 Relocate / Reuse 352 16.7.1.1.1.2 Artificial Reef 352 16.7.1.1.1.3 Total Removal 353 16.7.1.1.1.4 Partial Removal 353

16.7.1.1.2 Topsides 353 16.7.1.1.2.1 Mothball / Relocate / Reuse 353


16.7.1.1.4.1 Dry Wellhead 354 16.7.1.1.4.2 Subsea Wellhead 354

16.7.1.1.5 Mobile and Floating Facilities 354 16.7.1.2 Decommissioning Plan 355 16.7.1.3 Health, Safety and Environment (HSE) Requirement 355 16.7.1.4 Consultation and Liaison 356 16.7.1.5 Incorporation in Work Programme and Budget (WP&B) 357

16.7.2 Decommissioning Process 357 16.7.2.1 Project Execution Plan 357 16.7.2.2 Sub-structures Decommissioning 358

16.7.2.2.1 Partial Removal 358 16.7.2.2.2 Total Removal 358 16.7.2.2.3 Topple 358

16.7.2.3 Topside 359 16.7.2.4 Pipeline 360 16.7.2.5 Well Abandonment 360 16.7.2.6 Marine Facilities 360


16.7.4 Report 363


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16.7.5 Degazettement 363 16.7.6 Residual Liability 363

16.8 PS CONTRACTORS OBLIGATIONS DURING HAND-OVER 363

SECTION 17 GUIDELINES FOR DATA MANAGEMENT AND SUBMISSION 365


17.1 PREAMBLE 366

17.2 COMMITMENT AND ACCOUNTABILITY 366

17.3 DATA SUBMISSION GUIDELINE 366

17.4 DATA SUBMISSION CHECKLIST 367

17.5 DATA FORMAT STANDARD FOR SUBMISSION 367

SECTION 18 GUIDELINES FOR EMERGENCY COMMUNICATION PROCEDURE 368


18.1 INTRODUCTION 369

18.2 SCOPE 369

18.3 DEFINITION 369 18.3.1 Incident 369 18.3.2 Emergency 370 18.3.3 Disaster & Crisis 370 18.3.4 Crisis 371

18.4 EMERGENCY RESPONSE PLAN 371

18.5 EMERGENCY CLASSIFICATION 373 18.5.1 TIER 1 - INCIDENT (Refer Figure 1) 373 18.5.2 TIER 2 - EMERGENCY (Refer Figure 2) 375 18.5.3 TIER 3- DISASTER & CRISIS SITUATION (Refer Figure 3) 378

18.6 NOTIFICATION OF EMERGENCIES AND RESPONSIBILITIES 380 18.6.1 PS Contractors 380 18.6.2 Petroleum Management Unit, PETRONAS 381

SECTION 19 GUIDELINES FOR OPERATING PERFORMANCE IMPROVEMENT (OPI) 382


19.1 OVERALL EQUIPMENT EFFICIENCY (OEE) AND DOWNTIME DATA 383

19.2 ROOT CAUSE PROBLEM SOLVING (RCPS) 384


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19.3 GAP SIZING ANALYSIS 385

19.4 STAGE GATE 386 LIST OF APPENDIX

Appendix 1 387

Appendix 2 396

Appendix 3 406

Appendix 4 419

Appendix 5 447

Appendix 6 451

Appendix 7 452

Appendix 8 454

Appendix 9 464

Appendix 10 465

Appendix 11 466

Appendix 12 467

Appendix 13 469

Appendix 14 470

Appendix 15 476

Appendix 16 478

Appendix 17 485

Appendix 18 519

Appendix 19 535

DEFINITION

ACKNOWLEDGEMENT

SECTION 1 GUIDELINES FOR HEALTH, SAFETY AND

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SECTION 1 GUIDELINES FOR HEALTH, SAFETY AND ENVIRONMENT

Executive Summary

This section provides guidelines and general requirements on managing Health, Safety and Environment (HSE) aspects of upstream petroleum operations and activities of the Production Sharing Contractor (PS Contractor) to ensure they are carried out prudently and effectively in line with the best practices currently prevalent in the industry and provide a means by which PETRONAS would be able to assess and steward the PS Contractors performance.

In this respect, the PS Contractor shall have in place a documented Health, Safety and Environment Management System (HSE MS) or its equivalent system to ensure that the operational integrity of its upstream operations is meeting the PETRONAS HSE requirements inclusive of statutory requirements.

It is the PS Contractors obligation to ensure that the elements of HSE MS are imbedded into their critical aspects of their exploration and production (E&P) life cycle from exploration through decommissioning.

The system shall ensure continuous improvement in performance and provide evidence that all risks and critical operations have been assessed to minimise the risks to as low as reasonably practicable (ALARP).


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1.1 INTEGRATING HSE MS IN E&P LIFE CYCLE

PS Contractor shall ensure that their HSE MS are integrated into the critical activities of the following generic phases of E & P below:

Exploration Development Fabrication/Installation/HUC Production Decommissioning

All requirements mentioned and contained in this HSE guideline shall apply equally for all PS Contractors activities and facilities related to E&P operations located both onshore and offshore. In managing and integrating HSE into PS Contractors overall business process and operations, adherence to PETRONAS guidelines and compliance to Governmental regulatory requirements are required.

1.2 HSE MS REQUIREMENTS AND EXPECTATIONS

PS Contractor shall be guided by PETRONAS HSE MS requirements and expectation with regard to each phases of the E&P life cycle. However, PS Contractors are required to establish and document their own HSE MS which best suits their business and operations needs.

PETRONAS envisages all their PS Contractor to be self-regulatory in all HSE aspects as part of corporate governance role, assuring and verifying HSE MS elements and complying with relevant HSE laws and regulations subscribed thereunder or in their absence, with internationally recognised standards. As part of corporate assurance process, PS Contractor HSE MS shall be independently verified via periodic audits.

PS Contractor shall ensure that the operational integrity of its upstream operations is meeting PETRONAS HSE requirements inclusive of statutory requirements. A copy of PS Contractor HSE MS Manual and revisions shall be submitted to PETRONAS PMU Kuala Lumpur (KL) and Regional Offices for reference.


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PS Contractor HSE MS shall consist of at least, the following elements, basic requirements and expectations.

1.2.1 Leadership & Commitment

PS Contractor Management shall demonstrate and be committed to HSE matters at all levels in its operation by having strong, visible leadership and commitment and accountability, and to make available the necessary resources to develop, operate and maintain the HSE MS. The PS Contractor Management shall visibly communicate their HSE MS to all staff and contractors. Target setting in HSE shall include proactive and reactive Key Performance Indicators (KPIs) instilling positive HSE culture through promotions, awareness programmes, workshops and trainings. PS Contractor Management shall conduct regular HSE meetings and visits to site facilities, involve in the review of annual HSE Plan, incident investigations and audit reports in order to demonstrate overall commitment and accountability. Followings are the documentations and records that shall be in placed:-

Minutes of Management HSE meetings

Reports of Management site visits and inspections

Endorsement of HSE KPIs and targets, HSE Cases or its equivalent, and HSE Plans

Minutes of Meetings with Contractors

1.2.2 Policy & Strategic Objectives

PS Contractor Management shall have HSE policies defined and documented. The policies shall be initiated, developed, supported and endorsed by the highest level of the PS Contractor Management. These policies shall also satisfy all applicable HSE regulatory requirements.


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PS Contractor Management shall draw up strategic objectives to support these policies and reflect the operational and business requirements, relevant HSE hazards and effects system and the views of employees, contractors, customers and companies engaged in similar activities. PS Contractor Management shall ensure that these objectives are periodically reviewed to suit the current business needs and changes.

The PS Contractor shall ensure that only recently endorsed and dated HSE policy are made publicly available and prominently displayed at work sites and office areas for the views of all employees, contractors and visitors entering their premises or facilities. The HSE policy or its reviews shall be communicated to all employees and contractors in a language and format that is easily understood. Followings are the documentations and records that shall be in placed:-

Endorsed HSE Policy

HSE Objectives and HSE Plans

Communication of HSE policy to employees and subcontractors

1.2.3 Organisational Structure, Resources & Documentation

In order to effectively implement the policy and meet the strategic objectives, PS Contractor shall establish a clearly defined organisational structure with specific roles and responsibilities relating to HSE MS.

PS Contractor shall make available adequate resources, including personnel, funds and hardware necessary to ensure effective implementation of HSE MS programmes. There shall be a process in place to provide assurance of competency of all relevant personnel including appointed contractors involved in the aforementioned HSE critical E&P phases. There shall be an effective communication means to disseminate and assimilate HSE information throughout the PS Contractors organisation. PS Contractor shall possess all relevant reference documents and standards, including HSE legislations.

PS Contractor shall have a systematic control over their HSE MS documents to ensure that they can be identified, easily retrievable and available at the point of use,


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periodically reviewed, versions are updated and when obsolete, they are promptly removed from the system and from use and from point of use. PS Contractor shall ensure the integrity of HSE records, establishing and recording retention times according to their availability and confidentiality.

Followings are the documentations and records that shall be in placed:

HSE Organisation Chart

Job Descriptions including HSE responsibilities (non-HSE personnel)

HSE MS Documentation Register/Masterlist

Procedure on HSE MS Documentation Control

HSE Requirements for Contractors

HSE training matrix and records

1.2.4 Evaluation and Risk Management

PS Contractor shall ensure that there is a structured HSE risk management and analysis in place to systematically identify and inventorise all health, safety and environmental risks and hazards in all phases of its activities at all levels of the E&P activities as part of its HSE MS. A Hazard and Effects Management Process (HEMP) or its equivalent shall be applied as part of the component to evaluate their severity, effects and probability of occurrence. PS Contractor shall have in place a control mechanism to minimize or eliminate non-compliances. PS Contractor shall also ensure that compliance to the statutory HSE risk assessment requirements (where applicable) are listed, but not limited to the followings:-

Chemical Health Risk Assessment (CHRA)

Control of Industrial Major Accident Hazards (CIMAH)


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Radiation Protection Relating to TENORM in Oil and Gas Facilities

Environmental Impact Assessment (EIA)

All HSE risks shall be managed and reduced to ALARP, taking into account amongst factors of local conditions and circumstances, the balance of cost and benefits and the current state of technology availability and knowledge. The requirement for the PS Contractor in implementing and managing HSE risk shall be guided according to the stages of E&P below:

1.2.4.1 Exploration Phase

Prior to commencement of any exploration activities, the appropriate HSE

Risk Assessment and analysis shall be carried out in order to manage the potential adverse impact in carrying out the related activity.

Followings are the documentations and records that shall be in place:

HSE Risk Assessment and Analysis

1.2.4.2 Development Phase

Field Development Plan (FDP)

Prior to commencement of any oil and gas field development or construction of off-shore and on-shore pipelines in excess of 50 km in length or construction of oil and gas separation, processing, handling and storage facilities, the EIA shall be submitted for approval by DOE

During the above phase, PS Contractor shall develop HSE Philosophy

and incorporate the requirements as part of the overall field development plan.


EIA proposal

HSE Philosophy as part of FDP.


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Conceptual and Detail Design

- During the commencement of the conceptual design stage, PS Contractor shall ensure that there is a systematic approach for HSE hazard identification (HAZID).

- In the following detail design stage, PS Contractor shall ensure that

the identified hazards aspects are systematically evaluated and reviewed using technique(s) such as HAZOPS and/or QRA covering health, safety and environment. All HSE risks identified shall be managed to ensure that the control measures commensurate with the levels of risks accordingly. PS Contractor shall also include hazard recovery measures and plans in the event an HSE control fails or deviation from the operating limits.

- Prior to actual construction work, PS Contractor shall ensure matters

pertaining to the approval of EIA condition resolved. - Where applicable, an Environmental Management Plan (EMP) shall

be prepared and submitted to DOE for approval and implementation.

Followings are the documentations and records that shall be in place: HAZID Inventory/register of HSE hazards, effects and aspects Hazards and Operability Study (HAZOP) Quantitative/or Qualitative Risk Assessment (QRA) EIA Report and approval conditions EMP

1.2.4.3 Fabrication/Installation/HUC

- Prior to commencement of fabrication, installation and hook-up and commissioning activities, the appropriate Health Risk Assessment (HRA) and analysis shall be carried out at the worksite in order to manage the potential adverse impact accordingly.


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- All risk control and recovery measures identified shall be documented in CIMAH report (where applicable) and/ or health and safety risk assessment, to be implemented appropriately in the respective activities.

- PS Contractor shall ensure that during this phase, all EIA and EMP

conditions are addressed and adhered to accordingly.


HSE Risk Assessment and Analysis

CIMAH Report

EMP

1.2.4.4 Production Phase

- During normal production and maintenance activity, PS Contractor shall also ensure that the appropriate periodic health and safety risk management are carried out.

- Prior to simultaneous operations (SIMOP) activity, PS Contractor shall

ensure that the appropriate health, safety and risk management and analysis are carried out.

- All risk control and recovery measures identified shall be documented in a

HSE Case or its equivalent and/or CIMAH report (onshore facilities), to be implemented appropriately in the respective facilities. The content of HSE Case shall be guided by PETRONAS Technical Standard PTS 60.150 (Appendix 1.1): HSE Case Guidelines for Documentation, which is based on PETRONAS Technical Standard PTS 60.150. In the context of documenting HSE Case, flexibility is given to the PS Contractor with regards to its exact structure and format as long as all the elements are sufficiently addressed and covered in logical sequence.

- PS Contractor shall ensure that during this phase, all EIA and EMP

conditions are addressed and adhered to accordingly.


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Following are the documentations and records that shall be in place:

HSE Case

CIMAH Report

EMP

SIMOP procedure and other related procedures such as Management of Change (MOC)

1.2.4.5 Decommissioning Phase

- Refer to of Section 16.3 of Section 16: Guidelines for Decommissioning of Upstream Installation.

1.2.5 Planning

PS Contractor shall ensure that their planning are developed strategically in line with their Corporate Strategic Objectives. The use of HSE Plan is critical in improving HSE performance, is often a long term process, requiring advance budgeting and allocation of resources.

PS Contractor shall develop an annual and long term plan (preferably five-year) for achieving HSE objectives which provides an overview of planned objectives and detailed activities to be implemented for the respective year. PS Contractor shall also develop a systematic tracking system in order to monitor the progress of its implementation.

The requirement for a structured HSE Plan, and the integration of HSE planning into the overall business process shall apply equally for activities carried out by PS Contractor, as well as activities carried out by contractors engaged in work and associated with the companys activities. In case where a Division and/or Department HSE Plan has not address the HSE planning associated with a specific project/ activity (e.g. in connection with a field survey operations, drilling campaign) a Project/ Activity HSE Plan shall be prepared specifically to cater for a project-type activity. The project/ activity HSE Plan is required


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as an HSE planning tools, to document the identified risk control and recovery measures identified for implementation as part of the project execution. The HSE plan shall be submitted to PETRONAS PMU KL and Regional Office by December of the proceeding year for reference.


HSE Plan (annual and long term)

HSE Plan tracking system

1.2.5.1 Asset Integrity

For assurance of technical integrity of the assets, PS Contractor shall design out the risk through the implementation of a structured systems and documentation.

To ensure that the continued integrity of asset (facilities and equipments) is safeguarded, the following shall be in placed:

A practical and widely understood facilities change control system (management of change)

A transparent inspection and maintenance philosophy and programme

A programme where PS Contractor is able to improve through cross-discipline/ cross-facility inspections.

Detail requirements and documentations required regarding the subject can be referred to Section 11: Guidelines for Facilities Reliability and Integrity Management.

1.2.5.2 Procedures and Work Instructions

The requirement for written procedures and work instructions shall apply equally for all HSE critical activities carried out by PS Contractor, as well as


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by the contractors engaged in work and associated with the companys activities.

All written work procedures and work instructions shall be clear, simple and unambiguous, and shall indicate the person responsible, the methods to be used and where appropriate, the performance standards and criteria to be satisfied.

These standards shall be based on PETRONAS Technical Standards (PTS) or acceptable international standard. PS Contractor shall also develop specific procedures and work instructions for all its activities.

Written work procedures shall address potential adverse HSE consequences if incorrectly performed. It shall also define the manner of conducting tasks at the work-site level.

Following is the documentation and record that shall be in place:

Work Procedures & Instructions

1.2.5.3 Management of Change

There shall be procedures for the management of change, both permanent and temporary, in people, plant or processes or deviation from the established procedures and approval shall be sought in accordance with the requirements, to avoid adverse HSE consequences.

The procedures shall also describe how PS Contractor interpret and assess the implication of new or amended legislation and how revised regulatory requirements are to be incorporated in the HSE MS. PS Contractor shall ensure that changes which may be HSE -critical be reviewed prior to implementation of the activities to ensure that their introduction does not prejudice the HSE performance.

Following is the documentation and record that shall be in place:

Management of Change Procedures


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1.2.5.4 Contingency and Emergency Planning

PS Contractor shall develop, document and maintain appropriate Emergency Response and Oil Spill Contingency Plan, both at the company level and at the specific location. This would serve to prevent an incident from escalating to a degree where people can be harmed or asset damaged or destroyed. These emergency response procedures shall have clearly defined communication linkages to the PETRONAS Upstream Emergency Communication Procedure (ECP) and relevant government agencies as stipulated in Section 18.

To assess the effectiveness of the emergency response system, PS Contractor shall test their emergency procedures by scenario drills and exercise, at appropriate intervals as stipulated in the annual HSE Plan. PS Contractor shall also revise and update the procedure as and when necessary in the light of the findings during the drill experience gained.


Emergency Response Plan

Emergency Drill and Exercise Schedule

1.2.6 Implementation and Monitoring

Activities and tasks shall be conducted according to procedures and work instructions developed at the planning stage or earlier, covering broad areas of activities, in accordance with HSE policy. The effective practical implementation of the planned arrangements requires that the procedures and instructions are to be followed at all levels.

PS Contractor and their contractors need to be familiar with relevant procedures and instructions before commencement of any work.

Monitoring facilitates control of HSE critical activities and processes, and the detail and frequency of measurement needs to reflect the nature and extent of the risks involved, and concentrate on the areas where it produces the most benefit. Thus facilities that


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involve HSE critical activities require monitoring in more detail and at greater frequency.

PS Contractor shall ensure that all tasks and activities are in compliance to the HSE MS, guidelines, procedures, work instructions and legal requirements based on the standards set and adopted.

PS Contractor shall have an effective performance monitoring system in place to observe the performance of relevant aspects of HSE indicators and performance, as well as for establishing and maintaining records of the results in ensuring targets are met and continuous improvement is achieved. Relevant performance indicators shall be adopted.

PS Contractors management shall ensure, and be responsible for, the conduct and verification of activities and tasks according to the relevant procedures. This responsibility and commitment of management to the implementation of policies and plans includes, amongst other duties, ensuring that HSE objectives are met and performance criteria and control limits are not breached. Management of PSC Ma shall ensure the continuing adequacy of the HSE performance of the company through monitoring activities.

PS Contractor shall maintain a system of records as required by the HSE MS, procedures and guidelines to ensure integrity, accessibility and control of such records. The retention times of records shall be established and recorded, and procedures shall be maintained regarding their availability and confidentiality.

1.2.6.1 Contractor HSE Management

PS Contractors are responsible to ensure that their contractors main aspects of HSE MS are being diligently monitored and soundly managed to ensure compliance to their own HSE policy, guidelines, regulatory requirements and standards adopted.

PS Contractors shall ensure that appointed contractors are capable and financially viable to undertake the work safely and in an environmentally sound manner.


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Interfacing arrangements (bridging documents) shall be made available between the PS Contractor and their appointed contractors (where applicable) to clearly define the roles and accountability of both parties.

Management of PS contractor shall pay particular attention to the following, but not limited to: Selection of contractors, including specific assessment of their HSE

policy, practices and performance. It shall also cover adequacy of their HSE MS and commensurate with the risks associated with the services to be provided.

Effective communication of the key elements of the contractors HSE MS, and the standards of worker and environmental protection expected from the contractor, including agreed HSE objectives and performance criteria

Sharing by company and contractor of relevant information which may impact on the HSE performance of either.

The requirement that each contractor has an effective and relevant training programme which includes records and procedures for assessing the need for further training.

Methods for monitoring and assessing contractors performance against agreed HSE objectives and performance criteria. For main contractors, an HSE MS audit shall be conducted periodically while for minor contractors, regular inspections and visits to contractors facilities shall be carried out.


HSE specification in Contracts

Contractor HSE Plans

Contractor HSE KPI

Minutes of HSE Meetings

Audit and Inspection Plan for Contractors

Bridging documents


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1.2.7 Audit

PS Contractor shall develop the overall HSE audit programme and establish procedures for audit to be carried out as part of business control, in order to ensure that effective implementation of HSE management system in fulfilling the HSE policy, objectives and performance criteria, compliance to statutory requirements and identification of areas for improvement in leading to progressively better HSE management.

PS Contractor shall conduct HSE MS auditing at a scheduled interval (preferably three years) determined from the seriousness of the activity concerned or from the results of previous audits by independent parties, to provide assurance that its activities are adequately performed and if not, to highlight deficiencies and recommend appropriate remedial action. PS Contractor shall have comprehensive audit protocols and systematic procedure established and maintain.

PS Contractor is expected to conduct site specific HSE audit programme on activities at site to further ensure excellent HSE practices on their operations. PS Contractor is also responsible for the follow-up of the recommendations made. The audit shall cover the operations of the HSE MS and the extent of its integration into line activities. PS Contractors shall also carry out regular inspection and management visits at all locations. PS Contractor shall extend invitation to PETRONAS for participation at least one month notice prior to the above HSE MS and HSE audit exercise. PS Contractor shall also provide PETRONAS PMU KL and Regional Office a copy of the final HSE MS audit report one month after completion of the audit exercise.

Followings are the documentations and records that shall be in place: HSE MS & HSE Audit Plan & Procedures

HSE MS & HSE Audit Final Report

Audit Plan for Contractors

Tracking records on audit findings closure


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1.2.8 Review

PS Contractor senior and/or appointed management representative shall, at appropriate intervals (at least every five years), conduct regular reviews of the HSE MS to ensure its continuing suitability, effectiveness and performance whilst identifying gaps so that remedial actions can be undertaken.

Upon review, the revised HSE MS together with the basis of the changes shall be submitted to PETRONAS one month after completion of the revision. Followings are the documentations and records that shall be in place: Revised HSE MS documents

Basis of changes

1.3 PETRONAS INSPECTION & AUDIT

PETRONAS reserves the rights to conduct HSE site visit, inspection or technical audit at PS Contractors operational locations, wherever and whenever necessary. PS Contractorsshall provide the necessary arrangements and cooperation throughout the exercise. The inspection and audit team shall consists of officials from PMU KL and / or PMU region or its appointed representative(s), and where applicable the PS Contractor shareholder/equity partners.

For the purpose of paragraph 1.3 herein Appointed representative(s) means designated individual(s) or company(ies) that shall have the authority to act on behalf of PMU, in all matters connected with the performance of the site visit, inspection or technical audit.

1.4 REPORTING AND KEY PERFORMANCE INDICATOR (KPI)

a. HSE KPI

PS Contractor shall monitor and report the Health, Safety and Environment (HSE) effectiveness using Key Performance Indicators (KPI), as stipulated in Appendix


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1.2. PS Contractor HSE performance report is to be submitted to PETRONAS PMU KL and Regional Offices on monthly basis (by the 15th of following month).

b. Documents submission

Appendix 1.3 stipulates the list of documents required for submission to PETRONAS PMU KL and Regional Offices (where applicable).

1.5 INCIDENT REPORTING & INVESTIGATION

PS Contractor is responsible to immediately notify PETRONAS of any incidents or accidents that are related to their operations. The detail incident notification procedures are stipulated in Guidelines for Emergency Communication Procedure, Section 18.

PETRONAS reserves the right to participate in any or all investigations to be undertaken by PS Contractor. A full report of the incident pertaining to fatality, loss time incidents or that causes severe damage to asset, environment and reputation that require full investigation by the PS Contractor shall be submitted to PETRONAS within a month from the date of the incident.

1.6 SAFETY PASSPORT

Any person going to offshore facilities must possess valid safety passport issued from the PS Contractor. For all employees and contractor personnel, the prerequisite trainings shall be obtained from PETRONAS accepted Training Providers, and medical examination shall be conducted by the Approved Medical Examiners or examining doctors as outlined in the Offshore Medical Guidelines.

The followings are the minimum standards in BOSET (Basic Offshore Safety and Emergency Training):

Basic Offshore Training

Basic Sea Survival Training


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REVISION 2 AUG 2008

Basic Fire Fighting

HUET (Helicopter Underwater Escape Training) & Emergency Breathing System (EBS)

Provided the above trainings and medical requirements are met, a valid safety passport issued by one PS Contractor, shall be accepted by another PS Contractor. Where there is specific condition/risk involved and/or additional competencies required, the person is obliged to adhere to the additional trainings outlined by the PS Contractor.

1.7 PROHIBITION OF DRUG AND ALCOHOL ABUSE

PETRONAS prohibits and view seriously the abuse of drug and alcohol consumption for reasons that the acute and chronic use of both affects the judgement and mental alertness of a person that are essential parameters for safe and productive work operations. It is the PS Contractors obligation and responsibility to have a policy and procedure which includes but not limited to systematic method of identification, screening, testing and verification process that shall be implemented throughout their organisation and followed by their employees and appointed contractors to ensure that its workplaces are alcohol and drug free at all times. Any form of possession, use and manufacture of drugs and alcohol for work related purposes particularly involving PETRONAS processes and operations are strictly prohibited and excluded.

1.8 FACILITIES GAZZETTEMENT

In accordance to the Protected Areas and Protected Places Act 1959, PS Contractor shall apply to PETRONAS for gazzettement within six months after installation of the facilities by submitting the information and documentations (Refer Appendix 1.4). Further details on the application process can be referred to Appendix 1.5.


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REVISION 2 AUG 2008

1.9 OTHER RELATED PROCEDURES

This guideline is to be read together with;

Malaysian statutory requirements as prescribed under EEZ, MARPOL, LEM/TEK, OSHA, EQA, State Ordinance, Acts, etc.

Decommissioning Guidelines

Production and Operations Guidelines

Drilling Guidelines

Emergency Communication Procedures

- END OF SECTION 1 -

SECTION 2 GUIDELINES FOR EXPLORATIONS

SURVEY OPERATIONS Page 20



REVISION 2 AUG 2008

SECTION 2 GUIDELINES FOR EXPLORATIONS SURVEY OPERATIONS

Executive Summary

This Section provides guidelines and general requirements in conducting the following operations in Accordance to the Production Sharing Contract i.e.:

Fish Trap Survey Operations

Marine Site Survey Operations

Marine Seismic Survey Operations

Land Seismic Survey Operations; and

Ocean Bottom Cable and Seabed Logging Operations

PS Contractor shall observe and comply with the above guidelines prior to and during undertaking the surveys. Nevertheless this guideline does not cover all aspects of the above survey operations and shall be regarded as PETRONAS' general guidelines necessary for ensuring a safe and cause minimal impact to the existing infrastructures and environment in the operating areas.

In cases where either equipment or scopes of the survey operations are not listed or specified in these guidelines, PS Contractor shall derive the scope based on industry best practices, internationally acceptable codes and standards, applicable Malaysian Laws and shall implement the same accordingly.





REVISION 2 AUG 2008

2.1 FISH TRAP SURVEY OPERATIONS

2.1.1 Pre-Survey

PS Contractor shall notify PETRONAS and Relevant Authorities (refer to Appendix 2.1) on the necessity to conduct the Fish Trap Survey, including area of operations, timing, duration, vessel name, place of registration, call sign and specifications. Notification of Fish Trap Survey to PETRONAS and Relevant Authorities shall be submitted at least 14 days prior to the survey commencement.

The planned survey area shall not be conducted beyond Malaysian waters without prior approval from the Relevant Authorities and authorities of the affected countries.

In all correspondences with Relevant Authorities, all surveys to be conducted by PS Contractor shall be identified as PETRONAS and PS Contractors surveys.

2.1.2 Survey Operations

PS Contractor is to ensure representatives from both fishermen and Fisheries Department are included as witnesses to the survey. These representatives are to be appointed by the Fisheries Department and preferably had undergone basic sea survival training and shall adhere to Guidelines for Health, Safety and Environment (HSE) (refer to Section 1) prior to going onboard the vessel for the Fish Trap Survey.

PS Contractor is to ensure that a suitable vessel and equipment to be deployed for the Fish Trap Survey comply to the Health, Safety and Environment (HSE) requirements. PS Contractor is to include requirement of HALAL food and NO LIQUOR on the vessel as part of Tender Documents.

PS Contractor shall prepare a list of focal point/ on duty personnel to be contacted for emergency purposes.

PS Contractor and the Survey Contractor shall develop their in-house Project Safety Plan for evacuation programme and all HSE requirements shall be based on Guidelines for Health, Safety and Environment (HSE) (refer to Section 1).

PS Contractor shall ensure that all offshore personnel employed onboard the vessel is to carry their personal identification.





REVISION 2 AUG 2008

All fish traps observed within the survey area are to be identified and recorded appropriately. Logging of observed devices to include date, location, time and to be supported with photographs. It is recommended that PS Contractor engage an experienced scouting company, equipped with proper positioning system for the survey.

Some of the common types of Fish Trap and Fish Aggregating Devices are shown in Appendix 2.2A to 2.2F.

2.1.3 Post-Survey

All data or maps to be submitted to PETRONAS and the Relevant Authorities shall be treated and addressed as confidential matters.

Total compensations to fishermen are to be agreed prior to the seismic survey. If under operational situation where negotiation may not take place prior to seismic survey, PS Contractor is to notify the Fisheries Department to proceed with the seismic survey. Representative from fishermen and Fisheries Department are both required to support the actual negotiation on the compensations to be paid to the fishermen after the seismic survey is completed.

All compensation shall be made through Fisheries Department.

PS Contractor shall submit close-out report to PETRONAS for any compensation made.

PS Contractor shall report to Fisheries Department on all Fish Trap matters.

PS Contractor shall request PETRONAS assistance should any problem arises between Fisheries Department, Fishermen, Federal Government or any other local authorities.





REVISION 2 AUG 2008

2.2 MARINE SITE SURVEY OPERATIONS

2.2.1 Pre-Survey

PS Contractor shall notify PETRONAS and Relevant Authorities prior to Marine Site Survey commencement, including area of operations, timing, duration, vessel name, place of registration, call sign and specifications. Notification of Marine Site Survey to PETRONAS and Relevant Authorities shall be submitted at least 14 days prior to the Marine Site Survey commencement.

Subject to statutory requirement especially for coastal areas, the authority may require PS Contractor to conduct Environmental Impact Assessment (EIA) prior to Marine Site Survey.

The operations of Marine Site Survey shall not be conducted beyond Malaysian waters without prior approval from the Relevant Authorities and the authorities of the affected countries.

PS Contractor shall ensure that all personnel onboard the survey vessel have undergone a basic sea survival training and shall adhere to Guidelines for Health, Safety and Environment (HSE) (refer to Section 1).


PS Contractor is to ensure that a suitable vessel and equipment to be deployed for the Marine Site Survey operations comply to Health, Safety and Environment (HSE) requirements. Technical inspections to be carried out prior to mobilisation of the site survey vessel.

PS Contractor is to include requirement of HALAL food and No LIQUOR on the vessel as part of Tender Documents.

PS Contractor to prepare a list of focal point/on duty person to be contacted for emergency purposes.






REVISION 2 AUG 2008


2.2.3 Post-Survey

PS Contractor shall submit close-out report to PETRONAS. The report shall be both in hard copy and acceptable electronic format.

PS Contractor shall submit all site survey data and maps to PETRONAS upon completion and prior to expiry of the block as required by the Production Sharing Contract.

PS Contractor shall request PETRONAS assistance should any problem arises between Fisheries Department and Relevant Authorities.

2.3 MARINE SEISMIC SURVEY OPERATIONS

2.3.1 Pre-Survey

PS Contractor shall prepare Marine Seismic Survey Proposal together with a forecasted project schedule to PETRONAS and shall get Partners concurrence prior to submission of technical approval to conduct Marine Seismic Survey.

PS Contractor shall notify PETRONAS and Relevant Authorities to conduct Marine Seismic Survey including area of operations, timing, duration, vessel name, place of registration, call sign and specifications. Notification of Marine Seismic Survey to PETRONAS and Relevant Authorities shall be submitted at least 14 days prior to the survey commencement.

Subject to statutory requirement especially for coastal areas, PS Contractor may conduct Environmental Impact Assessment (EIA) prior to seismic survey.

The operations of Marine Seismic Survey shall not be conducted beyond Malaysian waters without prior approval from the Relevant Authorities and authorities of the affected countries.

PS Contractor shall ensure that all personnel employed onboard Marine Seismic Survey vessel have undergone basic sea survival training and shall adhere to Guidelines for Health, Safety and Environment (HSE) (refer to Section 1).





REVISION 2 AUG 2008


PS Contractor is to ensure that a suitable vessel and equipment to be deployed for the Marine Seismic operations comply to Health Safety and Environment (HSE) requirements. Technical inspections to be carried out prior to mobilisation of the seismic and escort vessels.


PS Contractor to prepare a list of focal point/on duty personnel to be contacted for emergency purposes.



PS Contractor shall submit a daily and weekly survey reports to PETRONAS for the whole survey duration.

2.3.3 Post-Survey

PS Contractor shall submit to PETRONAS a full operation report. The report shall be both in hard copy and acceptable electronic format.

PS Contractor shall also submit all seismic data and maps to PETRONAS upon completion and prior to expiry of the block as required by the Production Sharing Contract.






REVISION 2 AUG 2008

2.4 LAND SEISMIC SURVEY OPERATIONS

2.4.1 Pre-Survey

PS Contractor shall prepare Land Seismic Survey Proposal together with a forecasted project schedule to PETRONAS and shall get Partners concurrence prior to submission of technical approval to conduct Land Seismic Survey. PS Contractor shall notify PETRONAS and Relevant Authorities to conduct Land Seismic Survey including area of operations, timing and duration. Notification of Land Seismic Survey to the Relevant Authorities shall be submitted 30 days prior to the Land Seismic Survey commencement. Subject to statutory requirement, PS Contractor may conduct Environmental Impact Assessment (EIA) prior to survey. PS Contractor shall ensure that all personnel have undergone through appropriate HSE training and shall adhere to Guidelines for Health, Safety and Environment (HSE) (refer to Section 1).


PS Contractor is to ensure that a suitable equipment to be deployed for the Land Seismic Survey operations comply to Health Safety and Environment (HSE) requirements. Technical Audit to be carried out on seismic crew prior to commencement of Land Seismic operations.

PS Contractor is to include requirement of HALAL food and No LIQUOR as part of Tender Documents.

PS Contractor to prepare a list of focal point/ on duty personnel to be contacted for emergency purposes.

PS Contractor and the Survey Contractor shall develop their in-house Project Safety Plan for evacuation programme and all HSE requirement shall be based on Guidelines for Health, Safety and Environment (HSE) (refer to Section 1).





REVISION 2 AUG 2008

PS Contractor shall ensure that all personnel employed possess a valid personal identification.


2.4.3 Post-Survey


PS Contractor shall also submit all seismic data and maps to PETRONAS upon completion and prior to expiry of the block as required by Production Sharing Contract.

PS Contractor shall request PETRONAS assistance should any problem arises between any Relevant Authorities.

2.5 OCEAN BOTTOM CABLE AND SEABED LOGGING

2.5.1 Pre-Survey

PS Contractor shall prepare Ocean Bottom Cable and Seabed Logging Proposal together with a forecasted project schedule to PETRONAS and shall get Partners concurrence prior to submission of technical approval to conduct the survey.

PS Contractor shall notify PETRONAS and Relevant Authorities to conduct Ocean Bottom Cable and/or Seabed Logging, including area of operations, timing, duration, vessel name, owner and specifications. Notification of Ocean Bottom Cable and Seabed Logging to the Relevant Authorities shall be submitted 30 days prior to the survey commencement.

Subject to statutory requirement especially for coastal and deepwater areas, PS Contractor shall conduct Environmental Impact Assessment (EIA) prior to seismic survey.

The operations of Ocean Bottom Cable and Seabed Logging Surveys shall not be conducted beyond Malaysian waters without prior approval from the Relevant Authorities and authorities of the affected countries.





REVISION 2 AUG 2008

PS Contractor shall ensure that all personnel to be onboard Ocean Bottom Cable and Seabed Logging vessel have undergone basic sea survival training and shall adhere to Guidelines for Health, Safety and Environment (HSE) (refer to Section 1).


PS Contractor is to ensure that a suitable vessel and equipment to be deployed for the Ocean Bottom Cable and Seabed Logging operations comply to Health Safety and Environment (HSE) requirement. Technical inspection to be carried out prior to mobilisation of the seismic and escort vessels.


PS Contractor to prepare a list of focal point/on duty personnel to be contacted for emergency purposes.




2.5.3 Post-Survey


PS Contractor shall also submit all survey data and maps to PETRONAS upon completion and prior to expiry of the block as required by the Production Sharing Contract.


- END OF SECTION 2 -

SECTION 3 GUIDELINES FOR FDP REVIEW AND

APPROVAL PROCESS Page 29



REVISION 2 AUG 2008

SECTION 3 GUIDELINES FOR FDP REVIEW AND APPROVAL PROCESS

Executive Summary

This Section Provides guidelines and general requirements for Field Development Plan review and approval process for PS Contractor to comply. The approach taken by PETRONAS to the process of Field Development Plan (FDP) review and approval is to establish whether there are any aspects of the proposed development which may conflict with Government and PETRONAS' objectives and to focus attention on resolving those aspects before the formal comprehensive FDP is submitted.


APPROVAL PROCESS Page 30



REVISION 2 AUG 2008

3.1 GENERAL APPROACH

3.1.1 The approach taken by PETRONAS to the process of Field Development Plan (FDP) review and approval is to establish whether there are any aspects of the proposed development which may conflict with Government and PETRONAS objectives and to focus attention on resolving those aspects before the formal comprehensive FDP is submitted.

3.1.2 In the event of any conflict inconsistency between this guideline and the Production

Sharing Contract (PSC), the PSC shall prevail.

3.2 RESPONSIBILITY

3.2.1 The Petroleum Management Unit (PMU) will coordinate the overall field development process review involving milestone reviews, PETRONAS review and approval and FDP execution.

3.2.2 PMU has established a Technical Review Committee (TRC) as a technical advisory

role to PMU Management in assessing field development plans proposed by PSCs, during the milestone reviews. The main objectives of the TRC are:

a) To provide consistent quality assurance on all technical deliverables

conducted by PSC contractors or service providers to PMU as well as providing critical challenges and constructive feedbacks to the project team to ensure all technical objectives are being met.

b) To enhance PMU technical processes before, during and after project being

executed by capturing and disseminating lesson learnt from one project to the other.

c) To contribute towards close co-operation and smooth execution of the project

by providing prompt and practical feedback to the PSCs and service providers. 3.2.3 Depending on the circumstances of each specific project, the scope of the TRC may

be a complete review of the entire program, including conforming to applicable methods, technologies, standards, the appropriateness of the assumptions and input data to support the design. Or it might just be limited to specific aspects of the design program on specific tasks.

3.2.4 Endorsement of the Technical review committee must be received for each of the 4

milestones in the FDP approval processes:


APPROVAL PROCESS Page

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