Project Execution Risk and Mitigation Plan

Project Execution Risk

PROJECT RISKS AND MITIGATION PLAN The key cost, schedule and execution risks associated with the MIPS Pipeline Project and the proposed mitigation are summarized in the table below. Phase / Risk Detail Design Phase Inadequate FEED Site verification Late changes to overall execution plan Fabrication phase Late design changes

Consequence

Mitigation

Scope increase Scope increase Schedule delay

Feed review Early site verification Early approval of execution plan

Schedule and cost effect

Freeze design as early as possible and achieve AFC documents status prior to subcontracting. Early presentation of personnel and milestone target for COMPANY approval

Late approval of CONTRACTORs personnel for key positions, fabrication documents and schedules Delay in equipment delivery

Delayed fabrication Start-up

Equipment not meeting MPN spec’s

Delayed installation

Incomplete work or Change Orders at time of Load Out. Carry Over work to Installation / Hook-up phase

Schedule – and cost effect.

Install. & Hook-up Phase Carry Over work from fabricators.

Schedule and cost effect

Extended Hook-Up phase. Schedule- and cost effect

Specific plans to be developed for all critical path equipment. Ensure design allows equipment to be lifted – or skidded into topsides after erection of decks. Strong expediting of equipment. Ensure FAT is completed in time. Ensure manufacturer surveillance, QC inspections, and FAT attendance. Verify compliance through MC check-sheets and reporting Ensure tight compliance with Mechanical Completion procedure. Accelerate by request extended shifts. Increase manpower. Reschedule to minimize consequences.

Close follow up of fabricator performance.

Late design changes Changes in operational criteria of marine spread operations Increase installation lift weight of piping spools / deck modifications Mechanical breakdown of marine Spread

Schedule- and cost effect of Hook-up phase Marine spread –stand by. Schedule – and cost effect

Tight control of engineering and operational changes. Tight control of engineering and operational changes.

Cost effect. Larger spread/ lift capacity.

Tight control of installed weights. Weight contingency.

Schedule effect

Pre-verification of ships, barges etc. and HAZOP of marine operations.

Commissioning & Start-Up Late approval of operability Delayed Commissioning and maintenance and subsequent Start up documents. and delivery

Time-consuming internal approval process of commissioned systems and handover

Other factors Community disturbance at work sites

Delayed Start up process and Handover to Customer

Delayed schedule and delivery time and safety risk to personnel

Early start of operability and maintenance procedures. Define milestone completion time for document and training completion. Clearly define acceptance criteria and have customer personnel available offshore, authorized to sign acceptance

Proactive management will be put in place to anticipate and resolve issues with host communities.