South pars gas field development project - Phase 2 & 3

Service Contract for Preparation of the SUBCONTRACT for
Construction of WP2 Deck and Ancillary Structures

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The South Pars Gas Field is located in the Persian Gulf at 100 km off Iranian Southern Coast. TOTAL SOUTH PARS is the operator for design, fabrication, installation, commissioning and start up of the offshore and onshore facilities of the second and third phases of the field development program which will allow gas production of 2 bn cubic feet per day. In this project an EPSCC Contract was awarded to National Petroleum Construction Company (NPCC) to carry out the Detailed Engineering, Procurement, Supply, Construction and Commissioning of offshore platforms. In order to fulfill the Iranian regulations regarding utilization of local technical capabilities in A/M Contract, the Persian Gulf Shipbuilding Complex (PGSC) was assigned the job to perform the onshore fabrication of WP2 deck and ancillary structures as a Subcontractor in their Yard in Bandar Abbas. In order to approach the job professionally, PGSC hired Amid Engineering and Development Company (AMIDCO) to prepare the technical and commercial proposal and carry out the subcontract negotiation and finalization.

AMIDCO prepared the technical proposal containing the method statement, work schedule, description of personnel and equipment, quality assurance quality/control plan and safety plan. In this proposal detailed plans for performing different stages of the work were prepared based on capabilities of PGSC and other local fabricators. The work included structural and piping prefabrication, structural fabrication and erection, piping and equipment installation, onshore pre-commissioning/commissioning, load out and sea fastening of different modules i.e. WP2 deck, tripod jackets, bridges and relief platforms. The commercial proposal included the lump sum price and its detailed breakdown into several work packages.

AMIDCO also conducted intensive contractual negotiations on behalf of PGSC and TOTAL SOUTH PARS after exchange of a number of contractual, commercial and technical clarification and explanations the draft of the Subcontract was prepared and agreed upon with NPCC and submitted for approval and signature to PGSC, NPCC , TOTAL SOUTH PARS and their ultimate client National Iranian Oil Company (NIOC).

The services were performed by AMIDCO on a fast track basis for a duration of three months from March 1999 to June 1999.