Expediting PARSONS 1

PARSONS ENERGY & CHEMICALS

NO EXPEDITING TRIP REPORT YES ⌧

IN PROCESS ⌧ FINAL ⌧

STATUS CODE

D

TRIP DATE

6.03.1999

PREV. TRIP DATE

28.02.1999

REPORT DATE

6.03.1999

REPORT NO.

GEC.007

PREV. REPORT NO.

GEC.006

JOB / WBS NO.

J-98053

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5

TO

Parsons International, Pasadena CA

P.O. NO.

OTEO-D2-PO-141115

CLIENT / LOCATION

Parsons International, Pasadena CA

P.O. DATE

December 7, 1998

CLIENT CONTACT

Clarence Darrow / Clarke Reynolds

TELEPHONE NO.

626-440-2836 610-855-3802

PROJECT

Petrokemya Olefins III Project

LOCATION

Jubail, KSA

VENDOR

Gulf Engineering Co. for Heat Exchangers Ltd.

PLANT LOCATION

Jubail

VENDOR CONTACT

Mr.C.K. Suresh - Planning In-Charge

REF. NO.

J-98053

SUB VENDOR

N/A

PLANT LOCATION

N/A

SUB VENDOR CONTACT

N/A

REF. NO.

N/A

MATERIAL

Carbon Steel SA 516 Gr 70

SPEC/BM NO.

ASTM Sec.II

REQUIRED DELIVERY DATE

1.03.1999

30.04.1999

ORIGINAL SHIP DATE

N /A

PREVIOUS SHIP DATE

N/A

PRESENT SHIP DATE

N/A INTRODUCTION/PREFACE: Expediting visit was performed at Gulf Engineering Co. for Heat Exchangers Ltd., Jubail on February 22, 1999 to check documents submission, verify order status, review all documents related to start-up fabrication works and to expedite outstanding action items. Met the following personnel in the factory: Mr. P.G. Karunakaran - General Manager Mr. S. Selvaray - Planning Manager Mr. P. Punnose - Materials Manager Mr. G. Abraham Jeyaray - QA/QC Manager, Mr. Sajith Kumar - QA/QC Engineer Mr. R.C. Hidalgo - Design In-charge, Mr. Afzal Shareiff - Designer Fabrication of the 1st drum RV-0812 was started 14.02.1999 and is in progress. 5 next drums were released for fabrication. Basic materials ordered for drums fabrication were delivered to GEC and were available. Indispensable accessories are not available yet and it is not possible to presume when these materials will be delivered to GEC. MES/Parsons did not accept change in delivery schedule, while submitted by GEC schedule of P.O. realization shows dates of delivery, which deviate from dates confirmed with acknowledgement of P.O. It is not possible to meet requirements regarding delivery time. Revised schedule should be scrutinize and approved by MES/Parsons or any other agreements should be achieved. GEC sent a fax to MES - Mr. Paul Herman - Monthly Report - Ref. No.: PLG/853/1670/F, dated February 24, 1999 presenting current status and mentioning new expected completion dates, which deviate from approved schedule. MES/Parsons did not accept new dates of drums' delivery (fax Ref. No.: L-MPV-1115-0026, dated February 26, 1999 and Ref. No.: L-MPV-1115-0027, dated March 3, 1999) and asked GEC to advise about action taken in order to maintain contractual agreed dates of delivery. GEC is preparing reply to these faxes, which should be sent in the coming days.

EXPEDITOR Richard Kaszuba

DISTRIBUTION :

STATUS CODE LEGEND A -

ON SCHEDULE

B - AHEAD OF SCHEDULE C - POTENTIAL SCHEDULE PROBLEMS OR DELAYS D - BEHIND SCHEDULE

Clarke M. Reynolds, Expediting Manager, PE&C, PA Clarke Darrow, Parsons International, Pasadena Rick Sinclair - BV USA&CANADA, Huston E - NO SCHEDULED DELIVERY

EXPEDITING TRIP REPORT

DATE

March 6, 1999

CONTINUATION SHEET

PAGE

2

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5

REPORT NO.

GEC.007

TRIP DATE

March 6, 1999

P.O. NO.

OTEO-D2-PO-141115

VENDOR

Gulf Engineering Co. for Heat Exchangers Ltd., Jubail

I.

QUALITY ASSURANCE

QCP, WPSs, PQRs, welding maps, required procedures have been approved by MES/Parsons and released by GEC for fabrication.

II. ENGINEERING Mr. S. Selvaray - Planning Manager stated that MES/Parsons has not approved all drawings for fabrication of drums. Current detailed status of drawings is presented in enclosed Annex 1. Drawing for the following drums are not approved by MES/Parsons yet: EV-0912, EV-0913, EV-0921, EV-0923, EV-0931, EV-0932, EV-0553, EV-0231. All drawings should be reviewed and approved for construction soonest. For drums EV-0902, EV-0911 & EV-0941 all nozzles orientation are under hold. For drums EV-0911 the first sheet detailed drawing was not received from MES/Parsons. Action required urgently by MES/Parsons. GEC requested MES/Parsons to review orientation of the following nozzles for EV-0709 (fax GEC/J98053/1908/F, dated March 4, 1999): N4, N6, N8 & H1, H2. Action required urgently by MES/Parsons. For drum EV-0712 the following clarification and approval is required (fax GEC/J98053/1833/F, dated 1.03.1999): • Nozzles N6 & N7 - elevation is not given - confirmed elevation is required. • Nozzles N1 & H2 - required changes of location and approval of usage of bigger rainforcing pad for nozzles N5 & H2. • Drawing of saddle should be reviewed and approved (Item 4 of the fax) Action required urgently by MES/Parsons. GEC requested approval of gaskets' design calculation as follows (fax GEC/J98053/109/8, dated February 25, 1999): • EV-0912, EV-923 - body flanges • EV-0911 - manhole flange Action required urgently by MES/Parsons. Approval of paint. GEC requested approval of paint for drums - fax GEC/J98053/1575/F, dated February 24, 1999. The following producers were submitted for selection and approval: Hempel, Ameron, Sipco, Sigma, Jotun & International. There is not taken decision regarding approved manufacturer/supplier. Action required urgently by MES/Parsons.

III. MATERIALS Review of all P.O.s placed with suppliers of materials for this P.O. were performed with Mr. P. Punnose - Materials Manager. Current status of placed P.O.s is as follows:

P.O.

Number

Date

Manufacturer/Supplier

Material

Qty

(No.)

Requested

DeliveryTime

Remarks

98107/853 99/01/10 Arabian Oasis Industries (Al Shirawi), UAE

Ellipsodial Dished Heads EV-0902 EV-0921 EV-0931 EV-0941 EV-0553/231 EV-0231 EV-0712 RV-0812

2 1 2 2 4 1 2 3

Immediate

Received 21.02.99

98119/853 99/01/18 Arabian Oasis Industries (Al Shirawi), UAE

Ellipsodial Dished Heads EV-0230 EV-0891

2 2

Immediate

Expected delivery to GEC 11-13.03.1999.

98110/853 99/01/10 Afferbach Boddenpresseri Gmbh& Co., Germany

Ellipsodial Dished Heads EV-0911 EV-0912/923 EV-0913

2 2 1

Immediate Confirmed: 6 weeks FOB

Confirmed shipment on vessel "AL NOOF" leaving Antwerp 8.03.99. ETA Dammam 29.03.99.

EV -0709/0711 4 24Feb Potential reason of fabrication delay.


DATE

March 6, 1999

CONTINUATION SHEET

PAGE

3

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5

REPORT NO.

GEC.007

TRIP DATE

March 6, 1999

P.O. NO.

OTEO-D2-PO-141115

VENDOR


P.O. Number

Date

Manufacturer/Supplier

Material

Qty

(No.)

Requested

DeliveryTime

Remarks

98111/853 99/01/07 J. Bown and Company, England

Pipe Cap SA234WPB Size 18" Sch 40 Size 18" Sch 120 Size 18" Sch STD

2 1 2

Immediately

Materials are in Dammam port under Customs clearance. Expected in GEC during the next week.

98118/853 99/01/21 Almana Steel Dubai (Jersey) Ltd. Dubai, UAE

CS Plates SA516Gr70 6000x2000x22mmthk 6000x2000x25mmthk 6000x2000x50mmthk

1

1 3

Immediately

Material received 29.01.1999.

98117/853 99/01/24 Age Intrate LLC, Dubai, UAE

CS Plates SA516Gr70 Normalised 1200x3050x15mmthk

6

Immediately


98116/853 99/01/21 Al Nimr Steel Trading Ltd. Sharjah, UAE

CS Plates SA516Gr70 8000x2500x10mmthk 10000x3050x10mmthk 10000x3050x12mmthk 8000x3050x30mmthk

14

8 3 1

Immediately


98126/853 99/01/25 J. Bown and Company, England

Reinforcement pad for manhole SA516Gr70N

1 Immediately Materials are in Dammam port under Customs clearance. Expected in GEC during the next week.

3319 99/02/9 Earadat Trading Est. Dammam

Demister - York Model 431

5 Soonest Technical clarification with supplier completed. Ready for shipment April 2, 1999.

98142/853 99/02/18 Gerab National Enterprises Dubai, UAE

Pipes and Elbows set Immediately Material received 3.03.1999.

98139/853 99/02/17 High Tech. Engineering, Madras, India*

Long Welded Neck RF Flanges. Mat.SA 105 Normalized

172 Immediately P.O. released 22.02.99. - 21 Nos. delivery by air (for RV-0812), while remaining by sea. Reason of fabrication delay.

98159/853 99/03/01 Gerab National Enterprises Dubai, UAE

WNRF Flange BLRF Flange

9 3

Immediately Expected shipment from Dubai March 13, 1999.

3419/853 99/03/03 Duniya Gulf Trading Est. Al Khobar

Vapour Corrosion Inhibitor VCI-309

113 kg

4 weeks

Drum RV-0812 Current status of the Long Welded Neck RF Flanges: • P.O. 98139/853, dated February 17, 1999, released February 22, 1999 was placed with High Tech. Engineering, Madras,

India. Current status is presented in table - see * above. • GEC tried to find these materials onto the local market but unfortunately these materials are not available. • GEC contacted several potential suppliers from Asia and Europe but only 2 offers received with defined delivery time: Offer from TD FORGE SRL, dated 3.03.1999 - 15 Nos. 2" flanges (6 types) - does not specify delivery time. The offer

contains: "delivery - to be discussed". Mr. P. Punnose - Materials Manager informed that person in charge of marketing in the TD FORGE will be available only on the coming Monday - March 8, 1999 and it will be possible to clarify delivery and/or other conditions during direct telephone conversation. GEC is willing to place order by fax immediately upon completion of all clarifications. It is expected that P.O. for these 2" flanges shall be placed on Tuesday - March 9, 1999.

Offer from Empire Righton, UK, dated 3.03.1999 defines delivery of materials, as above, 4/6 weeks. It cannot be taken under consideration.

Conclusions: It was not possible to define the nearest delivery time of Long Welded Neck RF Flanges for RV-0812 during this expediting

visit.

Expected completion date is 2 weeks upon delivery of Long Welded Neck RF Flanges for RV-0812 to GEC - confirmed by Mr. S. Selvaray.

Only quick delivery of Long Welded Neck RF Flanges for RV-0812 can speed up completion of fabrication and to allow to minimalize delay in scheduled shipment.


DATE

March 6, 1999

CONTINUATION SHEET

PAGE

4

OF

5

REPORT NO.

GEC.007

TRIP DATE

March 6, 1999

P.O. NO.

OTEO-D2-PO-141115

VENDOR


IV. MANUFACTURE

Drum RV-0812 The first unit - RV-0812 Slop Oil Drum - is in process of fabrication. The Expediter visited all fabrication areas and it was found that all elements of Drum were under fabrication process. However, the fabrication was frozen due to lack of Long Welded Neck Flanges. Mr. S. Selvaray informed that the fabrication of the Drum RV-0812 shall be completed and Drum will be ready for delivery to the Client's site 2 weeks from the date of delivery to GEC all required Long Welded Neck Flanges. Action is required by GEC in order to arrange quick delivery of all materials for RV-0812. MES/Parsons rejected GEC statement that RV-0812 expected completion of fabrication will be April 15, 1999. Actually completion of fabrication was not possible to define during this expediting visit due to unknown delivery of Long Welded Neck Flanges. Action is required by GEC in order to obtain quickly all materials for RV-0812 and minimalize delay in fabrication and delivery. Current Status of Fabrication is presented in enclosed Annex 2. Mr. S. Selvaray - Planning Manager was requested to define completion of fabrication of other drums, which GEC expects to complete on June 15, while MES/Parsons rejected late delivery. Mr. S. Selvaray informed that GEC shall inform MES/Parson officialy upon scrutinizing possibility of obtaining all indispensable materials. It has been agreed that the nearest possible date for discussion of this matter is Wednesday - March 10, 1999.

V. TESTS / INSPECTIONS MES/Parsons appointed Moody International as Third Party Inspection Agency - fax L-MPV-1115-0025, dated February 22, 1999. Mr. Brian Sweeney has been appointed as Moody's Inspector for this particular P.O. Mr. G. Abraham Jeyaray - QA/QC Manager informed that Kick Off Meeting with Mr. Brian Sweeney was conducted on February 23, 1999. GEC has been informed that Mr. Brian Sweeney will be visiting GEC every Tuesday or whenever it will be necessary. Till now Mr. Brian Sweeney in addition to Kick Off Meeting conducted 2 inspection visits reviewing documents and inspecting works during fabrication. Inspection in-process by GEC QA/QC Department is in progress. VI. SPARE PARTS

All spare parts included in delivery with ordered drums shall be duly specified on approved drawings. The spare parts should be delivered along with drums. VII. SHIPMENT No shipment to Petrokemya has been made to date. It is expected that the first shipment of RV-0812 Slop Oil Drum should be in April 1999. VIII. REMARKS

The 7th Expediting Visit was performed 6th March 1999. The project is in the stage of drawings preparation and approval and commencement of fabrication. 6 drums are in process of fabrication. Realization of P.O. went out of agreed schedule. It is necessary to review current status of this project and to agree realistic schedule of fabrication and delivery. The next expediting visit - Wednesday, March 10, 1999 - is required in order to verify development regarding availability of Long Welded Neck RF Flanges and other vital issues. EXPEDITING TRIP REPORT

DATE

March 6, 1999

CONTINUATION SHEET

PAGE

5

OF

5

REPORT NO.

GEC.007

TRIP DATE

March 6, 1999

P.O. NO.

OTEO-D2-PO-141115

VENDOR


IX. CONCLUSION/RECOMMENDATION

the process of approval of submitted by GEC drawings should be completed urgently. Lack of approved drawings will allow

GEC to justify late delivery of ordered Benzene Drums. Action required urgently by MES/Parsons. GEC should arrange quick delivery of all indispensable materials for fabrication of RV-0812 Slop Oil Drum in order to

complete fabrication as confirmed to MES/Parsons. Critical materials are LWN Long Welded Neck Flanges. Action required urgently by GEC. Long Welded Neck RF Flanges for other drums are not available and confirmed delivery time from the High Tech.

Engineering, Madras, India does not comply with fabrication and delivery schedules. Urgent delivery of these materials is required.

Action required urgently by GEC. Schedule of drums fabrication and delivery should be reviewed by MES/Parsons and approved schedule should be

implemented. Action required urgently by Parsons/MES and GEC. Decision concerning approval of paint should be taken quickly since it can cause delay in fabrication of drums.

Action required urgently by GEC.

X. FOLLOW-UP VISIT The next vist should take place in Gulf Engineering Co. for Heat Exchangers Ltd., Jubail on Wednesday, March 10, 1999. Labor hours (1 day) In-plant: 4 hrs / report 3 hrs / travel 4 hrs (Dammam-Jubail-Dammam)

Documents

Expediting PARSONS 1