EPC Execution Strategy

for Fertilizer Plants

CONTENTS

I. HDEC GENERAL INFORMATION

II. FERTILIZER REFERENCES

III. EXECUTION STRATEGY FOR

FERTILIZER PLANTS

I. HDEC GENERAL INFORMATION

About Us

Company Profile

Key

Profile Business

Lines

√ Established in May, 1947

√ Affiliate of Hyundai Motor Groupas of April, 2011

√ 7,257 Employees as of June, 2011

Top

EPC

Contractor

√ Ranked 1st in Construction Capability Evaluation by the Korean Government

√ Ranked 23rd Largest Int’l Contractor by ENR Report in 2010

√ Plant Works(Oil, Gas, Petrochemical)

√ Power & Energy Works (Power, Transmission & Distribution)

√ Civil & Environmental Works

√ Building Works

√ Investment & Business Development

HSE

√ ISO 9001

√ ISO 14001

√ OHSAS 18001

4th in the Middle East Market 23rd Largest Contractor World-Wide in 2010

2nd in the Power Market

▶ Pearl GTL Project PKG C-5 LPU Unit

▶ Karan GasFacilities Project

▶ Khalifa Port and Industrial Zone Project

▶ Boubyan Sea Port – Ph. 1

▶ Tripoli West 1,400MW

▶ Jurong Rock Cavern Ph.1

▶ Hamad Medical City

▶ KOC Oil & Gas Pipelines

▶ Bitexco Financial Building

Qatar U.A.E

Kuwait

Vietnam

Kuwait

Singapore

Qatar

Saudi Arabia

Libya

▶ QAFCO 5&6 Fertilizer

Qatar

▶ Ras Laffan“C” IWPP

▶ UAE Nuclear Power Plant

U.A.E▶ Habshan 5

Utilities & Offsites

U.A.E

Qatar

53Overseas Sites US$ 24.6 BilTotal Current Value

• Advancing into overseas market since 1965• Total 723 Projects (US$ 80 Bil.)

By Work Categories

US$ 23.4 bil

US$ 12.5 bil

US$ 6.3 bil

(143 Projects)

(192 Projects)

(42 Projects)

(2Prj)

US$ 16 bil

(50 Projects)

US$ 17.3 bil

(235 Projects)

US$ 4.5 bil

(61 Projects)

Others- Manufacturing Plant- Services

Electrical

Civil

Process Plant

Building

Power Plant

8%

16%

20%

5%

29%

22%

8.4%6.7%

6.1% 5.4% 5.2% 4.9% 4.8% 4.4%

1.8%

√ Hyundai E&C has carried out US$ 80 billion overseas projects since 1965.

US$ 443 BIL

US$ 152 BIL (34%)Others :

US$ 443 BIL

US$ 291 BIL (66%)

Top 10 Contractors:

Projects Carried Out By Korean Contractors

80

(Unit : US$ Bil)

3730 27 24 23 22 21 19

8

18%

AA-

A+

A

A-

BBB+

Sep. 2009

Sep. 2004

Jul. 2006

Jun. 2007

Jun. 2008

√ Korea’s top three credit rating agencies, Korea Investors Service (KIS), Korea Ratings (KR) and

NICE Investors Service, upgraded their credit ratings for HDEC’s corporate bonds by one notch

from A+ to AA- as of September 23, 2009.

HDEC Credit Rating (2004 ~ )

AFFILIATES 50 COMPANIES

TOTAL EMPLOYEES 177,000

TOTAL ASSETS

SALES

STEEL MOTORS CONSTRUCTION

FINANCE OTHERSPARTS

U$ 115.6 Bil

STOCK SHARE 34.88%

U$ 135 Bil

PROFIT U$ 10.6 Bil

OUTCOME

Global High Value-Added

Engineering Company

CAPABILITIES SUPPORT

TECHNOLOGY

MARKETING

GLOBALNETWORKING

FINANCING

Hyundai Motor Group plans to invest

US$ 9 Bil in Hyundai E&C within 10 Years

Maintain Competitiveness on Existing Core Business

- Chemical Plant, Power & Water Plant

High-Tech Civil & Building Works, etc.

Develop New Opportunity in Green & Future Business

- Environment Plant, Smart Grid

Renewable Energy, etc.

II. FERTILIZER REFERENCES

QAFCO 5 & 6 Project (Ammonia & Urea) / QATAR

• CAPACITY QAFCO 5:-No. 2 Ammonia plants 2,300 Tons/day each-No. 1 Urea plant 3,850 Tons/day -No. 1 Urea granulation 3,850 Tons/dayQAFCO 6:Urea Plant 3,850 Tons/day

•LOCATIONMesaieed, Qatar

• CLIENTQatar Fertilizer Company (S.A.Q)

• CONTRACT PERIODQAFCO 5: Dec 2007 ~ Jun 2011QAFCO 6: Oct 2009 ~ Sep 2012

PINGDINGSHAN Urea Plant / CHINA

• CAPACITY132,000 MTPY

• LOCATIONPingdingshan City, Henan Province, China

• CLIENTChina National Chemical Construction Corporation(CNCCC)

• CONTRACT PERIOD1995 - 1999

CHISUI Urea Plant / CHINA

• CAPACITY170,000 MTPY

• LOCATIONChishui City, Guizhou Province

• CLIENTChina National Chemical Construction Corporation (CNCCC)

• CONTRACT PERIOD1993 - 1996

National Fertilizer Complex / THAILAND

• CAPACITYP2O5 200,000 TPYNP/NPK 1,000,000 TPY

• LOCATIONMap Ta Phut, Rayong, Thailand

• CLIENTNational Fertilizer Co.

• CONTRACT PERIOD1994 - 1997

SHAANXI Urea Plant / CHINA

• CAPACITY132,000 MTPY

• LOCATIONHuaxian City, Shaanxi Province, China

• CLIENTChina National Chemical Construction Corporation(CNCCC)

• CONTRACT PERIOD1992 - 1995

IRAQ Fertilizer Plant NO. 4 / IRAQ

• CAPACITY1,000 MT/D Ammonia1,750 MT/D Urea

• LOCATIONBaiji, Iraq

• CLIENTMinistry of Industry & Minerals, Iraq

• CONTRACT PERIOD1986 - 1989

Asean Bintulu Fertilizer Plant / MALAYSIA

• CAPACITY1,500 TPD Ammonia1,500 TPD Urea

• LOCATIONBintulu, Sarawak, Malaysia

• CLIENTAsean Bintulu Fertilizer Sdn. Bhd., Malaysia

• CONTRACT PERIOD1983 - 1985

Korea Fertilizer Plant / KOREA

• CLIENTKorea Fertilizer Co.

• CONTRACT PERIOD1966 - 1967

• CAPACITY590 MT/D Ammonia1,000 MT/D Urea

• LOCATIONSeoul, Korea

Honam Fertilizer Plant / KOREA

• CAPACITY200 MTD Ammonia350 MTD Urea

• LOCATIONNaju, Korea

• CLIENTHonam Fertilizer Co., Korea

• CONTRACT PERIOD1959 - 1963

III. EXECUTION STRATEGY FOR FERTILIZER PLANTS

PROJECT MANAGER

PROJECTQUALITYMANAGER

ENGINEERINGMANAGER

PROJECTIT

COORDINATOR

PROJECTCONTROLMANAGER

SITEMANAGER

COMMISSIONINGMANAGER

SITEORGANIZATION

CORPORATEQUALITYMANAGER

COMMISSIONING ORGANIZATION

PROJECTHSE

MANAGER

CORPORATEHSE

MANAGER

PROCUREMENTMANAGER

PROCUREMENTORGANIZATION

ENGINEERING ORGANIZATION

• HDEC will act as single contractual entity and provide single point of

responsibility to OWNER

• The Project Home Office will be located in Seoul, Korea where

OWNER’s Team and Contractor`s Team will be located with an

integrated office-space arrangement

• Project Engineering and Procurement activities carried out in Project

Home Office in Seoul, Korea with support from worldwide offices

• Project control and review activities involving OWNER’s Team will be

conducted in Project Home Office

• HDEC approach to Engineering and Procurement is based on

experience gained during the execution of Fertilizer Projects

• Focus and utmost attention are given to Projects critical factors such

as:

early mobilisation of Licensors

material delivery schedule

constructability

market condition

SAMPLE

- Ammonia plants 2,300 Tons/day X 2

- Urea plant 3,850 Tons/day - Urea granulation 3,850 Tons/day

Project Summary

Engineering ProcurementConstruction/

Commissioning

WBS & Schedule based on Web (Primavera P6)

Status Report Forecasting

Plant Safety Safety Design & Review

Code & Specifications

Engineering Product Quality Integrated & Dedicated Eng’ng Team

Apply Quality Procedure

Project Timeframe Identity interface points

Early mobilization for early Eng’ng Works

Constructability, Operability &

Maintenance 3D Model & Constructability Review

Maximize OWNER’s Profit by

the successful Engineering and

Construction of the Facilities to

be operated in Safe and

Operable ways through the Best

Quality of Engineering

• Design Reviews

Various Design reviews and Studies will be conducted during

engineering stage to ensure and validate the integrity of

engineering;

- P&ID Review

- HAZOP

- PHASER

- SIL

- HSEIA

- 3D Model Review

- Constructability Review

- FRA (Fire Risk Assessment)

- QRA (Quantitative Risk Assessment)

- Human Factor Study

- RAM Study

State-of-the-art computer facilities and industry recognized

engineering software program complying with OWNER’s

requirements will be used

• Engineering Tools

• Field Engineering

The field engineering team will be mobilized to site once the major

engineering is progressed to an advanced stage

• Constructability Review

A dedicative Constructability Coordinator will be assigned to the

Project Team to coordinate the Constructability Program

• 3D Model Review

3D electronic model of the plant will be developed using multi-

disciplinary PDS (Plant Design System from Intergraph) System.

Each discipline will develop its scope of work for and under the

result of the 3D Model Review

• Construction Team

For optimizing performance cost, schedule and quality, the

construction staff will be involved at the early stage of engineering

• Vendor Material Standardization

• Development of Prospective Alternative Vendors for Project

Benefit subject to Approval

• Expediting utilizing overseas procurement offices and

specialist resources

Plant Critical Equipment Planned PO Date Planned On-Site Date

Ammonia Natural Gas Compressor ED + 2 Months ED + 18 Months

Process Air Compressor ED + 2 Months ED + 18 Months

Syngas Compressor ED + 2 Months ED + 19 Months

Ammonia Refrigeration Compressor ED + 2 Months ED + 18 Months

Ammonia Booster Compressor ED + 2 Months ED + 18 Months

Primary/Secondary Reformer ED + 2 Months ED + 18 Months

Ammonia Synthesis Converter ED + 1 Months ED + 20 Months

Waste Heat Boiler ED + 1 Months ED + 19 Months

Co2 Stripping Column ED + 3 Months ED + 18 Months

Co2 Absorber ED + 1 Months ED + 20 Months

Plant Critical Equipment Planned PO Date Planned On-site Date

Urea Co2 Compressor ED + 1 Months ED + 19 Months

Urea Reactor ED + 1 Months ED + 21 Months

Urea Stripper ED + 1 Months ED + 20 Months

HP Synloop Heat Exchangers ED + 1 Months ED + 20 Months

Carbamate Separator ED + 1 Months ED + 23 Months

1st/2nd Carbamate Condensers ED + 5 Months ED + 17 Months

HP Ammonia Pump ED + 1 Months ED + 19 Months

HP Carbamate Pump ED + 1 Months ED + 19 Months

Plant Critical Equipment Planned PO Date Planned On-Site Date

Utility Gas Turbine Generator ED + 4 Months ED + 17 Months

HRSG ED + 4 Months ED + 18 Months

Service Boiler ED + 1 Months ED + 19 Months

C.W Pump ED + 2 Months ED + 18 Months

• Construction work force through direct hiring as well as

subcontracting

• Own construction equipment & resources which will be utilised

• Strict adherence to Time Schedule as well as cost using local

contractors

• Adherence to all the Quality and Health Safety & Environment

Procedures in line with International practice

• Overall construction supervision by HDEC

• Precommissioning / Commissioning stages overlap will be taken

up along with Licensor representatives, Process experts from

HDEC along with OWNER support

• Mobilization of Construction Equipment acc. to Project Schedule

Equipment Object

1,200 Ton Crawler Crane Synthesis Converter

600 Ton Crawler Crane Reactor & Absorber

450 Ton Crawler Crane H/Ex, Vessel

250 Ton & Less Crawler Crane Less than 100 Ton

100 Ton & Less Hydro Crane Less than 20 Ton

Dozer & Loader Civil and Building

Air Comp. & Generator Utility and Electric source

• Official Hand-Over of Plant Area / Camp Sites

& Relevant Bench Marks ED+1M

• Establishment of Site Office with Direct

Communication with OWNER at Site ED+3M

• Prompt Commencement of Early Work in accordance

with 90 Days Work Schedule

- Topographical Survey ED+1M

- Building / HVAC Basic Engineering ED+1M

- Site Preparation of Camp Area ED+3M

- Site Preparation of Plant Area ED+3M

- Camp Construction ED+4M

- Batch Plant Installation ED+5M

MECHANICAL COMPLETION

COMMISSIONING

START-UP&OPERATION

MECHANICAL COMPLETION COMMISSIONING START-UP&OPERATION

TIME

SYSTEM

SYSTEM-1

SYSTEM-2

SYSTEM-3

SYSTEM-4

SCHEDULE SAVING

WITHOUT SYSTEM HANDOVER APPROACH CASE

WITH SYSTEM HANDOVER APPROACH CASE

Ammonia

Storage

Feed in

Ammonia

Service Boiler

Natural Gas

IA, PA,

IG, FW

Boiler Feed

Water

Stabilize and PGT

Feed in

Urea

Steam Blowing

Ammonia

Steam Blowing

Urea

Stabilize and PGT

Cooling Water

GT with HRSG

Bagging

I. Utility

Gas turbine lube oil flushing & Function test

HRSG refractory dry out, boil out and Passivation

Service boiler refractory dry out, boil out and Passivation

Cooling water system flushing and Passivation

Steam Blowing

II. Ammonia Plant

Lube oil flushing of compressors

Steam blowing for steam networks including around comp, turbines.

Air blowing for all process line by using process air compressor

Catalyst loading

(Special requirement for primary reformer and ammonia converter)

High press. N2 leak test for Ammonia synthesis loop

Degreasing chemical cleaning for H2S and CO2 removal system

Primary reformer refractory dry out

Waste heat boiler chemical cleaning and passivation

Urea

Ammonia Storage Tank

Natural Gas (CH4)

H2S Removal Section

1st Reformer

2nd Reformer

CO → CO2 Conversion

← Steam (H2O)

← Air (N2/O2)(By Process Air

Compressor)

CO2CO2 Removal Section

CO/CO2 →

Methanation (CH4)

Ammonia Converter

NH3 Refrigeration

Section N2 + H2 + CO + CO2

N2 + H2 + CO2

N2 : H2 = 1 : 3

NH3

Urea

NH3

CH3OH(Methanol)

NH2CO-NH-CH2OH

(Mono Methylol UREA)

UREA Polymerization

Granulation

Conveyor

Bulk Hall

CH3OH + ½02 →

CH2O(Formaldehyde) + H2O

CH2O + NH2CO-NH2 →

NH2CO-NH-CH2OH

UFC Plant

O2(Air)

UREA CO2 NH3

UREA

CO2 + 2NH3

↓

NH2-COO-NH4 (Carbamate)

↓

NH2-CO-NH2 (UREA) + H2O

Serial. No Acticity Description Duration(day)

1 Start ID/FD Fans 1

2 Start Nitrogen circulation and heat reformer 2

3 Reformer feed in 1

4 Stream drum passivation 2

5 Testing of Steam drum PSV 1

6 HT Shift catalyst reduction & line up 2

7 Feed process gas to CO2 absorber and produce CO2 1

8 Line up CO2 to urea 1

9 LTS catalyst reduction and line up 7

10 Methanator catalyst reduction 3

11 Receive Ammonia 2

12 Commissioning Ammonia compressor 2

13 Commissioning Syn gas compressor 2

14 Syn gas converter reduction 7

15 Commission Ammonia recovery 5

16 Commission Hydrogen recovery 5

17 Stabilization, Ramp up & Controller Tuning of Unit 31

18 Reliability Test 14

19 Performance Test in Ammonia 5 5

43days

Serial. No Acticity Description Duration(day)

1 Commission of CO2 Compressor 6

2 Receive Ammonia & Commission Ammonia booster pump 3

3 Commission HP Ammonia pump 4

4 HP loop heating 1

5 HP Loop bolts hot tightening 3

6 Ammoniation of HP Loop 1

7 Reactor feed in & melt generation 1

8 Line up Urea melt to granulation 1

9 Stablilization, Ramp up & Controller Tuning of Unit 30

10 Reliability test 14

11 Performance Test in Urea 5 5

12 Ramp up to Over Capacity 1

13 Urea 5 Overdesign capacity demo test 1

20days

Serial. No Acticity Description Duration(day)

1 Blank Operation with hot air 3

2 Collect UFC from Qafco Site 0

3 Collect Urea from Qafco Site 0

4 Granulator sprayer test with water 3

5 Urea filling in start up bin 2

6 Solid dry circulation test 3

7 Granulation system commissiong 1

8 Stablilization, Ramp up & Controller Tuning of Unit 30

9 Reliability Test 14

10 Performance Test in Granulation 5 5

11 Urea Transfer from Granulation to Bulk Storage 1

12days

2011 Pearl GTL Project, Qatar 32,000,000

Year Project Hourswithout LTA

2011 Karan Gas Facilities, Saudi Arabia 10,000,000

2010 QAFCO 5 Project(Ammonia & Urea), Qatar 20,000,000

2010 Ras Laffan C – IWPP, Qatar 10,000,000

2009 Khurais Gas Project, Saudi Arabia 13,000,000

2008 New Ethane Recovery Plant, Kuwait 10,000,000

2005 Western Libya Gas Field Development Project, Libya 19,000,000

No 1. Performer among 10 Contractorsin STAR (Site Technical Assurance Review)

conducted by Shell Global Solutions in 2009

and 2010. – Pearl GTL Project / QATAR

ERP

WBS & Schedule based

on Web (P3 Ver 6.0) Project Summary Status Report Forecasting

Engineering

Tag Index – EDIS*/SPF

2/3D Modeling – SPP&ID

PDS/SP3D

BOM & E/R – SPMat

Deliverables –Project Space*

Calculation – Eng. S/W

Procurement

Inquiry – SPMat

PO – ERP I/F(to be)

Expediting – SPMat

Inspection – TOPICS*

Transportation – SPMat

Construction/

Commissioning

Site material – SPMat/IPCS*

Construction – IPCS/WIT*

QC – HCQM*

Pre-Com. – HPCM*

Punch Control – HPCS*

SPPID

SPEL

SP3D

SPIN

SPMat(Procurement status

monitoring and

material control)

Tags for instrument,

equipment and lineProgress report

Source data for

progress calculation

Design data

Tag and basic design data

- Deliverables

- Relation DB with tag

Engineering Document

Procurement Document

Vendor Document

Correspondence

Fax., Letter, E-Mail

Construction Document

Security & Permission

Revision

Internal Workflow

Interoffice Memorendum(IOM)

Design Review & Verification(DRN)

Design Change Notice(DCN)

Correspondence Distribution

External Collaboration

On Line Transmittal for Vendor,

Partner and Client

Request for Information(RFI/TQ)

for Client

Real time Status Monitoring

for Project Document &

Workflow

Transmittal In/Out

(Client, Vendor, Partner)

Correspondence In/Out

DRN & IOM

Delayed Documents &

Workflow

Status Monitoring

Project Collaboration

Project Information

Project Calendar

Project Bulletin

Project Image Bulletin

Messenger

Project Organization

Project Mail System

ㅋProject

Space

Document Control

Progress Report

Drawing & Document Status

Report.

Behind/Look ahead Report

Transmittal In/Out History

Report

Vendor Data Status Report

Etc.

• Material Code

• Spec & BOQ Report

• 3D-CAD Interface

3D-CAD

(PDS/SP3D)

BOM

Control

Material

Take-off

Inquiry PO Expediting Inspection Transportation

Material

Receiving

Warehouse

Control

Material IssueMaterial

Code

BOM Import

Forecasting

& Reservation

C

• Site receiving mgt.

• Forecasting &

Reservation

• Vendor management

• Status monitoring

• Transportation

E

P

Spec Gen.WIT

TOPICS

HCQM

ERP ContractInspection &

Expediting

Welding Inspection

& Test System

Construction

&

Quality System

(to be)

Mechanical Electrical InstrumentPiping

1. Early P&ID Freezing

2. Quality of Detail Design Drawings

1. Timely Placement of Order for LLI Items

2. Vendor Selection of Key Equipment

(Primary / Secondary Reformer, SyngasCompressor, Ammonia Synthesis Converter, Urea Reactor)

1. Bulk Control System

(Concrete, Steel Structure, Piping, Cable)

2. Self Performing Construction Company

(Reformer, Heavy Lifting, E&I)

3. HDEC Owned Construction Equipment

E

P

C