Construction Projects Quality Plan

1       GENERAL

 

1.1           Introduction

Cairn India Limited (CIL) is the Operator, on behalf of the Cairn Energy and ONGC Joint Venture,    of Contract Area RJ-ON-90/1 in the State of Rajasthan, North-West India.

The RJ-ON-90/1 Production Sharing Contract (PSC) was executed between the Government of India, ONGC and Shell India Production and Development (SIPD) on May 1995.

 

Cairn group gradually farmed into the block in three stages, until establishing the above mentioned Contractor under the PSC with respect to the Development Area.

 

The Development Area, as defined in the Declaration of Commerciality (DoC) includes four fields: Mangala, Aishwariya, Saraswati and Raageshwari Oil.

 

For development purposes the Development Area has been divided into the Northern Fields and    the Southern Fields. Mangala and Aishwariya fields are Northern Fields and Saraswati and Raageshwari Oil are Southern Fields. The Boundary Conditions given by the Project Board cover   the development of Northern Fields and the Raageshwari Deep Gas Field (which will be utilized to provide gas for consumption as fuel).

Bhagyam and Shakti fields (also located at the north of the area) are subsequent discoveries and have separate development areas.

The scope of the Mangala Field Development Project involves the Mangala Process Terminal and   its component parts inclusive of facilities associated with the Raageshwari Deep Gas Field and the Thumbli Water Field (for supply of injection/circulation water).

The basis of developing additional fields is that where possible the Mangala facilities infrastructure will be utilized. The Mangala facilities design will where possible be expanded to accommodate growth; this will be done by adding new equipment to support the new field.

Development strategy is also premised on maintaining the ability to tie-in southern fields, such as Saraswati and Raageshwari, or other new finds as discovered and appraised.

 

Technical Integrity of the new facilities is one key aspect that requires the attention of all the members of the project. Project objectives can only be achieved by means of the compliance with applicable requirements (technical and regulatory); from the development appraisal drilling and conceptual design through to the operation.

 

This Project Quality Plan (in line with Cairn India corporate guidelines and the Project Execution Plan) shall be used as a powerful tool for Quality Assurance and Project Technical Integrity. The quality  failures result in safety and environmental  risks, exceed project cost, schedule estimates  and higher operating costs during the lifecycle of the facilities. .

 

The Project Quality Management shall be able to control all aspects affecting project quality, which orientates the same to a reduction, elimination and, most importantly, prevention of quality deficiencies. Prevention implies the identification and elimination of non-conformities before they affect project quality, safety, budget, schedule or operability.

 

The following Project Quality Plan documents the Quality Management System to be used in the Rajasthan Northern Area Development Project, describing its elements and critical  activities,  defining controls required to ensure the achievement of the project quality  objectives  and  delegating technical and administrative authorities throughout the same.

 

1.1           Purpose

The purpose of the Project Quality Plan is to apply Cairn’s QMS to the Rajasthan Northern Area Development Project and to provide means by which project management shall derive confidence that the Project is being executed in accordance with the statutory, regulatory and/or stakeholders’ requirements.

The Project Quality Plan will be supported by the Key Quality Activities Matrix (DECO-RX-Q-PLN- 0101), which will be used to facilitate implementation of the Project QMS. The Matrix will define the

 

key quality activities, procedures, responsibilities etc, for the Rajasthan Northern Development Projects.

This Project Quality Plan is a live document and as such will be periodically reviewed  and/or changed in line with identified, agreed amendments and improvements to the Project QMS during  the course of the Project. The Project Quality Plan will also be reviewed and updated to accommodate any additions, deletions or changes to the contracted scope of work.

This Project Quality Plan is supported by the individual quality plans of the contractors, subcontractors, suppliers and sub-suppliers, in accordance with the document Quality Assurance Requirement Contractors (DECO-RX-Q-SP-0001). The supporting plans, will be reviewed by the Project QA Manager for alignment and compliance with the Project QMS requirements.

 

1.2           Scope

The scope of the Project Quality Plan covers all the quality related activities within the scope of  the Mangala Field Development Project associated with permanent installations from project kick-off to final completion.

The Plan involves all Cairn India personnel assigned to the Project and the associated resources  and facilities employed. The key Project Personnel identified in section 5.5.1 of the Plan will ensure its implementation.

Likewise, the Plan applies to all Cairn India suppliers, sub-supplier, contractors and subcontractors who shall be required to comply with the Project QMS.

This plan will be fully applied to following primary activities:

-        Design and Detail Engineering.

-        Procurement including inviting bids for equipment, services and subcontracts, performing    bid evaluations, Invitation to Tender (ITTs), placing procurement contracts, expediting.

-        Quality Surveillance of Suppliers, Sub-suppliers and Sub-contractors.

-        Site Construction activities, including construction management, fabrication, QA/QC, Safety, placing subcontracts.

-        Pre-Commissioning, Commissioning, and Start-up.

-        Handover.

-        Operations / Maintenance Training.

 

1.3           Issue and distribution

The Project Quality Plan will be made available electronically, on ‘read only’ basis, on the project  data base.

The “controlled” hard copies of Project Quality Plan will be issued by the Project Quality Manager to authorised project personnel who shall be held responsible for its implementation and update within their functions. These authorised project personnel will be responsible for reporting to Project Management any deficiencies or problems and will suggest improvements resulting from the use of the Project Quality Plan and related procedures.

 

The hard copy of PQP requested by third parties or other Cairn departments shall be formally transmitted via the Project Document Controller who shall retain records of recipients.

All other hard copies, including those down-loaded from the data base, shall be deemed to be “uncontrolled”.

 

1.4           Revisions

The Project Quality Assurance Manager will update and revise the Project Quality Plan whenever changes, additions or deletions are found to be necessary.

When a revision to the text results in a change, addition or deletion, the area of the current revision shall be identified in the left hand margin of the page adjacent  to  where  the change/addition/deletion was made. All previous revision identification shall be removed.

 

1.5           Integration with other Management Systems

The Project recognises the similarities between Quality, Safety, Health, Environmental and other management systems and shall ensure that integration of key quality  management  system  activities with those other systems is achieved without conflict or duplication.

With regards to Cairn’s Integrity Management System (IMS), currently under development on a corporate level, the Project QMS will be considered part of the IMS (section 7.0 “Programs”, tier 4) and gradually will be adopting the corporate guidelines that are being prepared for Project implementation once they are adequately approved. It is worth to mention that the IMS will be the base management of Cairn’s quality aspects by means of a Quality Programme following the principles of the international standards used as a reference for defining the Project QMS (mainly ISO/TS 29001 and ISO 9001).

 

1.6           Cairn Gated Process

The Cairn Gated Process (CGP) provides an overall framework for project management which  allows systematic appraisal and decision-making with respect to the readiness of the project to proceed from one project phase into the next phase. The CGP is a key part of Cairn’s business investment process providing a structured and integrated approach for analysing  investment  options, capital efficiency, value optimization and asset monetisation.

The CGP has defined Decision Gates (DG) at the end of each project phase. At these gates the Gatekeeper, in conjunction with the Project Board, shall assure that the defined deliverables have been produced  and  thereby ready to move into the next stage. The purpose of the Decision Gates  is to provide a clear framework and timelines for Management interventions, support to effective  early decision making and better capital planning.

The CGP is a six stage process and it is related with the Project Management System as illustrated  in the Attachment 1. Section 7.1.1 (Project Processes and Interfaces) also provides a  CGP  approach of the QMS.

 

2       REFERENCES

The contents of this Project Quality Plan are based on, or interface with, the  applicable  requirements of the following documents:

-        Petroleum, petrochemical and natural gas industries – Sector-specific Quality Management Systems – Requirements for product and service supply organizations, ISO/TS 29001:2003.

-        Quality Management System – Requirements, ISO 9001:2000.

-        Quality Management Systems – Guidelines for Quality Plans, ISO 10005:2005.

-        Quality Management Systems – Guidelines for Quality Management in Projects, ISO 10006:2003.

-        Guidelines   for   Quality   and/or   environmental   management systems       auditing,         ISO 19011:2002.

-        Mangala Field Project Execution Plan, DECO-MRX-PM-PEP-0001.

-        Stage Deliverables & Passage Details, DECO-RX-PM-SCH-8000.

-        CEIL Quality Management Procedures and Policies, DECO-RX-Q-PRO-0021.

-        Project Engineering Execution Philosophy, DECO-MRX-J-SDP-0100.

-        HSE Management System Manual, DECO-RX-R-MAN-0100.

-        Contract Execution Plan, DECO-RX-PM-PEP-2001.

 

2.1           Terms and Definitions

For the purposes of this Project Quality Plan and supporting procedures the terms and definitions given in ISO 9001 and ISO/TS 29001 (latest revisions) shall apply and prevail, however, in order to facilitate the understanding of the same some adaptations were made as follows:

 

TERMS	DEFINITIONS
Cairn	Cairn India Ltd
Project	Rajasthan Northern Area Development Project
Quality	Degree to which a set of inherent characteristics fulfils requirements.
Quality Management	Coordinated activities to direct and control an organization with regard to quality.   NOTE Direction and control with regard to quality generally includes establishment of the quality policy and quality objectives, quality planning, quality control, quality assurance and quality improvement.

 

 

 

TERMS	DEFINITIONS
Quality Assurance	Part of quality management focused on providing confidence that quality requirements will be fulfilled.
Quality Control	Part of quality management focused on fulfilling quality requirements on product.
Quality Management System (QMS)	Management system to direct and control an organization with regard to quality.
Quality Plan	Document specifying which procedures and associated resources shall be applied by whom and when to a specific project, product, process or contract. NOTE 1 These procedures generally include those referring to quality management processes and to product realization processes. NOTE 2 A quality plan often makes reference to parts of the quality manual or to procedure documents. NOTE 3 A quality plan is generally one of the results of quality planning.
Quality Control Activity Plan (Key Activity Matrix)	A key document which supports the Project Quality Plan and lists in a logical sequence key activities such as contract review, engineering, procurement, etc. It identifies individual activities, controlling procedures/ standards, verifying documentation and method by which compliance is assured (i.e. audit).
Inspection and Test Plan	A document relating to purchased / subcontracted products and services which lists in a logical sequence key activities such as purchase order review, manufacturing, construction, inspection, test and verification activities. It identifies individual activities, controlling procedures / standards, characteristics to be verified, acceptance criteria, verifying documentation, inspection and test requirements, etc.
Quality Audit	Systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled.   NOTE Internal audits, sometimes called first-party audits, are conducted by, or on behalf of, the organization itself for internal purposes and can form the basis for an organization’s self-declaration of conformity. External audits include what are generally termed “second-” or “third-party audits”. Second-party audits are conducted by parties having an interest in the organization, such as customers, or by other persons on their behalf. Third-party audits are conducted by external independent organizations. Such organizations provide certification or registration of conformity with requirements such as those of ISO 9001 and ISO 14001. When quality and environmental management systems are audited together, this is termed a “combined audit”. When two or more auditing organizations cooperate to audit a single auditee jointly, this is termed “joint audit”.

 

 

TERMS	DEFINITIONS
Supplier	Organization or person that provides a product.
Product	Result of a process. NOTE 1 There are four generic product categories, as follows: —  services (e.g. transport); —  software (e.g. computer program, dictionary); —  hardware (e.g. engine mechanical part); —  processed materials (e.g. lubricant).
Quality Policy	Overall intentions and direction of an organization related to quality as formally expressed by top management.
Process	Set of interrelated or interacting activities which transform inputs into outputs. NOTE 1 Inputs to a process are generally outputs of other processes. NOTE 2 Processes in an organization are generally planned and carried out under controlled conditions to add value. NOTE 3 A process where the conformity of the resulting product cannot be readily or economically verified is frequently referred to as a “special process”.
Customer	Organization or person that receives a product. EXAMPLE Consumer, client, end-user, retailer, beneficiary and purchaser. NOTE A customer can be internal or external to the organization.
Acceptance criteria	Specified limits of acceptability applied to process or product. Characteristics.
Calibration	Comparison and adjustment to a standard of known accuracy.
Control feature	Organization’s documented method to perform an activity under controlled conditions to achieve conformity to specified requirements.
Delivery	Point in time and physical location at which the agreed transfer of ownership takes place.
Design acceptance criteria	Defined limits placed on characteristics of materials, products, or services established by the organization, customer, and/or applicable specifications to achieve conformity to the product design.
Design validation	Process of proving a design by testing to demonstrate conformity of the product to design requirements.
Design verification	Process of examining the result of a given design or development activity to determine conformity with specified requirements
Manufacturing acceptance criteria	Defined limits placed on characteristics of materials, products, and services established by the organization to achieve conformity to the manufacturing or service requirements.
Special process	Process where the conformity of the resulting product cannot be readily or economically verified by subsequent monitoring or measurement.
Tender	Offer made by an organization in response to an invitation to provide a product.

 

3       PROJECT SCOPE OF WORK

 

3.1           General

 

3.1.1       Mangala & Raageshwari Fields

 

As previously mentioned in this document, the scope of the Mangala Field Development Project consists in developing the Mangala Field which mainly involve the  Mangala  Process  Terminal (MPT) same as other facilities associated with the Raageshwari Deep Gas Field (for supply of fuel gas) and the Thumbli Water Field (for supply of injection/circulation water). Future infrastructure    and facilities expansions enabling tie-ins with the other fields are expected.

The surface facilities for the Mangala field and the Raageshwari gas field will contain the following elements:

-        Well Pads

-        Mangala Process Terminal (MPT)

-        In-field Pipelines

-        Infrastructure Facilities

-        Interconnecting roads with corridors for pipeline, electrical and communication cabling, etc.

 

The production facilities can simply be defined in the following stages: wells, fluid  gathering,  oil/water separation, storage and export. In addition, there will be supporting  utilities,  including power generation, and safety systems.

The separated associated gas will be used, after treatment, as fuel for power and heat. This will be supplemented with imported gas from the Raageshwari Gas Field.

Oil production from Mangala will be routed to the tank farm located within the MPT. It is expected  that production from the future development of the other Northern fields will also be routed to the  tank farm.

The oil voidage make-up water, required for injection support, will be sourced to the south of the Mangala Field from the Thumbli Water Field. This water will also be utilised to provide plant water.

Facilities for the Mangala processing terminal (MPT) are as follows:

-        Gas separation

-        Heating

-        Water removal (settling tank/electrostatic coalescer / desalter)

-        Make-up water transfer/reception

-        Water treatment

-        Water injection

-        Power water treatment and distribution (for jet pumps)

-        Fuel gas treatment/compression

-        Fuel oil treatment

-        Utilities

 

3.1.2       Bhagyam Field

The Bhagyam field should be considered a “satellite” field to Mangala aimed to maximize synergy

 

with the Mangala development. Additional studies are required to select the concept and define integration to Mangala.

Current assumption is that Bhagyam Filed shall be provided with independent facilities and shall produce oil meeting export specifications which will be pumped to the MPT’s Tank Farm.

 

3.1.3       Shakti Field

Shakti is located approximately 10 km north of Mangala. It is a marginal field and should be developed accordingly.

The feasibility case envisaged Shakti surface facilities producing from “multi-well” well pads and processing the oil to a specification for transportation and further processing at Mangala. The associated gas would be used for local power generation, augmented by a power supply from the Mangala development.

 

3.1.4       Aishwariya Field

Aishwariya Field involves crude with high CO2. Additional studies are required to  select  the  optimum concept for the exploitation of this field.

 

3.2           Detailed Scopes

Detail Engineering and Design scope of work is mainly described in document DECO-RX-PM- SOW-0043 “Statement of Requirements and Basis of Design”, covering the surface facilities  between the downstream chokes on the wellheads and the custody transfer point which is the downstream flange on the metering facility.

For the Engineering and Procurement  Stage, contract number RJ6CA000006 (Detail Engineering  for Mangala & Raageshwari Gas Development Project) clearly details the scope of work requirements that the Engineering Contractor will perform for the Mangala Oil Field and associated facilities.

For the Construction Stage of the Project, Document DECO-RX-PM-SOW-0100 “Scopes of Work Document”, details the scope of works requirements that the Main Contractor, as per the Project Contracting Strategy (Constructor camp, Mechanical and Structural, Pipelines, Electrical, Instrumentation and Telecommunications), will perform for the Mangala Oil Field and associated facilities.

The elements that collectively make up the Main Contractor’s Scope of work are:

-        DECO-RX-PM-SOW-2004, Constructors Camp;

-        DECO-RX-PM-SOW-2005, Electrical, Instrumentation and Telecomm (E,I &T);

-        DECO-RX-PM-SOW-2001, Mechanical and Structural Works;

-        DECO-RX-PM-SOW-2003, Pipelines;

 

Additionally (and independently) to the Main Contractor Scopes of Work, there will be other scopes  of work required:

-        DECO-RX-PM-SOW-2000, Civil Works;

 

-        Drilling and Completion Scope of Work;

-        OPS BASE Scope of Work;

-        Integrated Control Systems (ICS), Scope of work;

-        Freight Forwarder Scope of Work; and

-        Green Belt Scope of Work.

 

All activities associated with the Project shall be performed and monitored in accordance with the requirements of ISO/TS 29001 as deployed through the Project Quality Assurance Manual (CAIRN- RX-IMS-PRO-0701).

 

4       PROJECT QUALITY MANAGEMENT SYSTEM

 

4.1           General Requirements

The Project Quality Plan (hereafter referred to as “PQP”) is the main Project’s quality document for defining the Quality Management System (QMS) elements required to be implemented and maintained in order to ensure and demonstrate that all the processes and activities within Project’s scope, carried out under the control of Cairn India Ltd, conforms to the specified requirements. The PQP also describes the project organization, responsibilities and authorities for implementation of  the QMS.

By means of this PQP, the Project evidences (or addresses into a more specific/detail document)   the way it:

-        identifies the processes  needed  for the quality  management  system,  their application throughout the organization, and their sequence and interaction (see Attachment 1, “Project Process Sequence and Interaction Map”),

-        determines the criteria and methods needed to ensure that both the operation and control of these processes are effective.

-        ensures the availability of resources and information necessary to support the operation and monitoring of these processes,

-        monitors, measures and analyzes these processes, and

-        implements actions necessary to achieve planned results and continual improvement of these processes.

All these processes are managed by the Project in accordance with the requirements of this PQP in order to meet the requirements of ISO/TS 29001, Cairn India Corporate Policies, and other industry codes, standards and/or specifications as identified by particular requirements.

Cairn India acts as a project governance organization that plans and controls the Development of Fields, Wells and Surface Facilities, through contracted engineering, procurement, installation and construction firms and the appointment of a Project Specific Organisation.

In this sense, any outsourced process affecting project conformity with requirements, is properly controlled in accordance to section 7.4 (Purchasing) of this PQP an applicable Project Procedures established for managing interfaces with Vendors and Contractors as per their own scope of work (i.e. Engineering and Design, Fabrication, Construction, etc).

All Project vendors and contractors are imposed with the responsibility for operating their own  Quality Management Systems in order to achieve the specified project quality requirements.

 

4.2           Technical Integrity

The Project initiates the achievement of Technical Integrity by defining in objective terms (technical deliverables) the design intent for plant and equipment to provide safe operation.

“Technical Integrity … includes the processes and competencies required to ensure that the communication and development of that design intent through specification, procurement, detail design, fabrication, erection, and testing match the original intent

 

and intended use”. “Technical integrity will only be maintained by the competent operation of the completed facilities within the design envelope and design intent,   and with the application of operational integrity assurance  systems”.  

In this sense, the Quality Function appointed for the Project provides the required support in order    to match the design intent with the final result of the developed facilities, by means of the implementation of the Project Quality Management System (QMS) as per defined in this PQP.

1st level Document - Project Quality Policy (Project Quality Statement)

 

The Project keeps aligned with Cairn India’s corporate principles that govern its activities in quality matters.

 

The Project Quality Statement is the document that: enunciates the main quality principles to be followed, evidences the top management commitment in this matter and; clearly assigns the responsibility of its fulfilment to all the Project employees (see Attachment 2).

 

Each one of the principles contained in the Project Quality Statement responds to one specific consideration regarding third parties (stakeholders) or our employees, within the frame of the processes and business activities developed by Cairn India Ltd.

 

2nd level Document – Project Quality Plan and Key Quality Activities Matrix

The Project Quality Plan is the most important document of the Project  Quality  Management  System and is based on the requirements of ISO/TS 29001 (latest revision) and the IMS Quality Assurance Manual applicable for all Cairn’s projects (CAIRN-RX-IMS-PRO-0701). The objective of the PQP is to implement a system of control so that systems, components, structures etc., are designed, procured, manufactured and constructed in accordance with the applicable contract requirements, codes, specifications and drawings.

The Project Quality Plan provides the baseline to be developed and utilised by each of the major contractors, suppliers and subcontractors on their individual quality plans content.

The Key Quality Activities Matrix (DECO-RX-Q-PLN-0101), shall be issued as a supporting  document to the Project Quality Plan. This document tabulates the activities and identifies the controlling procedures in order to describe in detail the quality activities to be executed for the compliance with Project requirements.

The Key Quality Activities Matrix will also provide an interface to key activities relating to subcontracted scopes of work.

 

3rd level Documents – Control Procedures

These control procedures are those which are identified within the PQP and the Key Quality  Activities Matrix. It is the intention of the Project to utilise as far as possible those procedures which are Cairn standard. Where necessary, existing procedures shall be amended, or new versions developed, to take cognisance of those business processes which may be specific to the project. Co-ordination procedures shall also be developed as necessary to address those systems and business processes which shall be common across the project, e.g. document control, cost  reporting, etc.

Contractors, suppliers and Sub-contractors procedures shall be identified within their own individual quality plans.

 

4th level Documents - Inspection and Test Plans and Records

Inspection and Test Plans (also referred to as Quality Control Plans) shall be  developed  as  required by Cairn to cover specific products, services or scopes of work. The Inspection and Test Plans (ITPs) shall identify the quality related activities, the controlling procedure/ specification/drawing, the acceptance criteria, verifying documentation and inspection and surveillance requirements.

The requirements of such Inspection and Test Plans shall relate to the criticality rating of the purchased/subcontracted product or scope of work as per document DECO-RX-Q-SP-0100 “Equipment Criticality and QA/QC Surveillance”.

An ITP template is included on attachment 7.

 

1.1           Control of Documents and Data

Document and Data pertaining to this project are initially controlled in accordance with Cairn’s procedures:

DECO-RX-PM-PRO-0005 “Detail Design & Engineering Team – Document Control Procedure”, DECO-RX-PM-PRO-0002 “Project Numbering System”, and

DECO-RX-PM-PRO-0003 “Requirement for the Delivery of Supplier Documentation and Data.

During the Detail Engineering and Design Phase of the Project, applicable project specific procedures prepared by the Engineering Contractor and agreed by Cairn are implemented, also using contractor’s Project Document and Material Control System (PDMC) for primary control. The above mentioned procedures are given below:

DECO-RX-PM-PRO-2006 “Transmittals”,

DECO-RX-PM-PRO-2007 “Project Distribution Charts”. DECO-RX-PM-PRO-2014 “Engineering Document Control”, DECO-RX-PM-PRO-2021 “Vendor Data Processing”,

By means of both type of procedures it shall be ensured that all correspondence, drawings and technical data received or generated by the Project during the Detail  Engineering  and  Design Phase (for every revision) are receipt, recorded, issue, distributed, filed and stored in an efficient   and controlled manner, including both e-files and hard (paper) copy files.

 

1.1.1       Distribution of Project Documentation

Project documentation is distributed to project team members in accordance with the Distribution Chart shown in document DECO-RX-PC-CHA-2001.

 

1.1.2       Document Electronic Management Tools

The electronic management tool “Documentum™” will be used in the project in order to have a “seamless hand over” of electronic project deliverables to Cairn Operations.

Cairn’s Detail Design & Engineering Team will only use Documentum™ to search for project documents and this is to be done via “Web Client”.

Simultaneously, as previously mentioned the Engineering Contractor has selected “PDMC tools”   and Citadon software for the control and management of project documents.

PDMC & Citadon are capable for storage & retrieval of electronic documents, tracking, redline/markup for comments to engineering and vendor documents. Project engineering team shall use these tools for their day to day operations.

Complete list of project deliverables for the Detail Engineering and Design Phase of the Project is shown in the document DECO-MRX-PM-DCR-2100 “Master Document Register”, which is available in electronic (excel type) format.

 

1.2           Control of Records

The objective for establishing and maintaining  the  records is to provide evidence of the conformity  to requirements and of the effective operation of the Project QMS.

By means of the Quality Records the Project can demonstrate that activities have been performed and that the desired results have been obtained.

For the Detail Engineering and Design activities, Project Records are maintained according to the general guidelines described in the procedure "Project Records Management" DECO-RX-PM-PRO- 2011.

Each project procedure defines the required quality records for a particular Project process. Project Personnel and especially functional heads are responsible for ensuring the collection, registration and systematic maintenance of Quality Records within the scope of their responsibilities.

The Project quality records shall be properly identified for the related project or service, readily accessible and stored in an adequate environment in order to prevent damage, deterioration or losses. They can be in hard copy or electronic format. These records may include those obtained from external sources.

During the Construction phase of the Project, the Quality Control (QC) Inspectors from all the disciplines (Civil, Mechanical, Piping, Pipelines, Electrical, Instrumentation  and  Telecommunications) shall daily collect the ongoing Inspection and Test Records (ITRs) generated once the Inspection and Testing activities took place, as per the Contractor approved ITP.

Certification of Construction phases will be coordinated with the appropriate release of systems and subsystems once all the ITRs defined for such systems/subsystems are properly filled out and  signed off by the QC Inspectors and Construction Supervisors from both parties (Cairn and the Construction Contractor), agreeing the construction conformance of the particular system or subsystem to design specifications.

Vendors and Construction Contractors will develop a Fabrication / Construction Data Book as per their particular Scope of Work. Document DECO-RX-PM-PRO-0003 includes a general description  of the Data Book Content. Lead Discipline Engineers and the Project Quality Manager shall review and approve the specific content of every data book to be submitted.

 

2       MANAGEMENT RESPONSIBILITY

 

2.1           Management Commitment

Project Management evidences its commitment with developing and continuously improving the Project QMS and its effectiveness by the following means:

a.     Communicating to the organization the importance of meeting stakeholders as well as statutory and regulatory requirements by documenting and approving the Project Execution Plan (PEP, DECO-MRX-PM-PEP-0001) and the Project Quality Plan (PQP, DECO-RX-Q-PLN-0100),

 

b.     Establishing the Project Quality Statement and the Project Quality Objectives,

 

c.      Conducting Management Reviews (as per section 5.6.1 “Management Review”), and

 

d.     Ensuring the availability of resources (as per section 6 “Resource Management”).

 

2.2           Customer focus

For the Project, the stakeholders are customers, who have a particular interest in the Fields’ Development including but not limited to:

-        Cairn India Limited (Corporate)

-        Strategic Partnerships

-        Field owners

-        The government of India and its entities (ministries, institutions, etc), including Rajasthan authorities.

-        Rajasthan communities.

 

The Project Manager and the Project Quality Assurance Manager shall ensure that the stakeholder requirements are determined and met with the aim of enhancing customer satisfaction. In order to achieve this, interfaces with Cairn India Corporate shall be ensured in both levels: through the  Project Manager and functionally through the corresponding corporate departments (i.e. Corporate Quality Department and Project Quality function).

The project requirements to be met as specified in Project Execution Plan DECO-MRX-PM-PEP- 0001, and the applicable Indian Government regulations (including environmental and safety regulations as per document DECO-RX-PM-SOW-0024 “Regulatory Requirements and Approvals/Consents”).

The design requirements to be met and latterly maintained during the  procurement  and  construction of the facilities. These requirements are mainly determined and recorded by means of document DECO-RX-PM-SOW-0043 (Statement of Requirements and Basis of Design) which “provides the Basis of Design (BOD) for Detailed  Design, together with the requirements to be met  in the design of the surface facilities for the Mangala Field Development”.

 

2.3           Project Quality Statement

Please refer to Attachment 2.

 

2.4           Quality Planning

Project Quality Planning includes:

·       Establishing the Project Quality Objectives at relevant functions and levels within the Project Organisation, and

·       Planning the Project QMS in order to meet the requirements of the ISO/TS 29001 and the Quality Objectives.

The Project Quality Assurance Manager shall ensure that the integrity of the Project QMS is maintained when changes to the QMS are planned and implemented.

 

2.4.1       Project Quality Objectives

 

The Quality objectives, derived from the quality statement, for the Mangala Field Development Project are as detailed below:

-        To assign facilities that are safe, environmentally acceptable, cost effective, meet all applicable standards, contractual and regulatory requirements.

-        To carry out the work in time, correctly, with minimum occurrence of errors and rework.

-        To establish a Quality Management System to deliver the required standard of workmanship in accordance with ISO / TS 29001 (latest revision).

 

To achieve these objectives, the Project mainly will implement the following:

-        Procedures to assure that key work processes and quality requirements are clearly defined and documented.

-        A continuous QA auditing process in order to improve the Project Quality Management System.

-        Orientation and Team Building Programs involving all Project personnel to  ensure  understanding and achievement of the Project objectives.

-        Technical Audits to evaluate the adequacy and effectiveness of the Project control systems as required.

-        Continuous monitoring of Vendors and Contractors quality performance as per project QMS requirements.

-        Tracking of action status of “assurance events”, such as HAZOP, QRA, PHSER and Technical Audits, as defined in document DECO-RX-Q-PLN-0101 “Key Activities Matrix”.

Project Performance Indicators based on the above mentioned objectives will be established and continuously monitored and analysed as per section 8.4.

 

2.4.2       Project QMS Planning

As part of this PQP (which is better described in section 7.1), the Project QMS establishes the following additional Planning Requirements:

-        Establishing the intervals for conducting the Management Reviews (as per section 5.6)

 

-        Establishing the methods for translating product requirements provided from external sources into the project realization processes (as per section 7.1.1).

-        Design Planning (as per section 7.3.1).

-        Construction and Inspection and Testing Planning (as per section 7.5.1).

-        Monitoring, Measurement, Analysis and Improvement Planning (as per section 8.1)

-        Internal Audit Planning (as per section 8.2.2).

 

2.5           Responsibility, Authority and Internal Communication

 

2.5.1       Responsibility and authority

Responsibility and authority for all personnel is defined by their job descriptions. Job descriptions shall include the following as a minimum:

-        Function description.

-        Responsibilities, including for safety and quality.

-        Accountability.

Each key Project team member shall hold or have access to a copy of his/her job description. The responsible manager for each area shall also hold or have access to relevant copies. The project data base shall contain those job descriptions applicable to Cairn staff. Non-Cairn staff shall work according to the requirements of their respective management systems which are required  to  comply with the Project QMS.

Key Project Team Members with regards to quality and their main responsibilities are listed as  follow:

 

2.5.2       Project Manager

The Project Manager is the Company Representative and he reports to the Head of Engineering. His main responsibilities include:

·       Overall responsibility for the safely execution of the project to budget, schedule, safety and required quality.

·       Overall Project strategy, direction and performance per Cairn India Ltd. requirements.

·       Establishment, implementation and maintenance of the project QMS.

·       Identify training needs in consultation with functional heads and coordinate with appropriate sections for fulfilling the training requirements.

·       Delegation of authority and implementation of the project QMS to members of  the  Project Development Team as appropriate to their particular functions.

·       Implementing remedial and/or corrective action on matters affecting Quality and Project performance.

 

·       Provide adequate resources to all the sections concerned to comply with requirements   of the project.

·       Maintain smooth functioning of site execution and sub-contracts through out the project execution period.

 

 

2.5.3       Engineering Manager

Reports directly to the Project Manager regarding day to day project activities but also has a reporting line to the Head of Engineering. His main responsibilities are:

·        Coordination of all disciplines’ deliverables production assuring an accurate flow of interdisciplinary information.

·        Supports in monitoring and planning engineering activities.

·        Avoid duplication or overlapping (correctness of interfaces).

·        Ensure consistency of documents and drawings produced (design philosophy, technical integrity).

·        Manage and exercise engineering change control and variation control till project completion.

·        Ensure communication with, and involvement of, all interested disciplines to  each  project.

·        Coordination of technical execution of the project addressing the requirements of Cairn India.

·        Assisted by the lead discipline engineers, defines all rules, codes, standards and basic documents which will be used in each discipline.

·        Report status of projects in a timely manner, highlighting issues that would impact on construction and commissioning issues.

·        Ensure technical documentation on completion of a project goes into the drawing management system.

 

5.5.3.1    Lead Discipline Engineers

Lead Discipline Engineers report to the Project Engineering Manager. They are responsible for design and engineering within their discipline. The responsibilities include:

·        Reviews project specifications and drawings to ensure complete comprehension of the overall requirements, identification of all quality requirements, and if required the resolution of ambiguities.

·        Implement work procedures.

·        Liaise with other discipline engineers on quality matters.

·        Initiate requisition packages containing complete information relative to the material or service required.

·        Ensures that all personnel under their control are fully conversant with the requirements of the Project Quality Plan.

·        Reviews equipment/material documentation against purchase order.

·        Manage and ensuring smooth implementation of multi-discipline engineering requirements in the pre-construction, construction and commissioning phases by acting as an effective focal point in assimilating, anticipating the problems involved and finding

 

a solution for the same to enable the construction and commissioning to proceed with tight time and cost constraints to an acceptable quality.

 

5.5.3.2    Procurement Manager

Procurement Manager reports to the Project Manager. Main responsibilities include:

·        Establishes the project approved vendor list in conjunction with Company requirements.

·        Ensure evaluation and selection of approved Suppliers / Sub-Contractors, and to  prepare, review, update and maintain their list.

·        Reviews engineering requisitions for completeness of commercial information.

·        Obtains quotations for material and equipment.

·        To float and follow-up the enquiries with the approved Suppliers /  Sub-Contractors  before finalizing the purchase of materials / products / services.

·        Liaises with discipline engineers for clarification of Purchase Order ambiguities.

·        Directs the activities of procurement personnel.

·        Responsible for the provision of procurement, sub-contracting and logistics services for the project.

·        Monitor the performance of the suppliers / sub-contractors periodically and appraise the quality management for review.

·        To implement and maintain the requirements of the quality management system in his area of control.

·        Ensure that the personnel under control are adequately trained, qualified, and experienced to perform the activities assigned to them and have access to the procedures describing the management system.

 

5.5.3.3    Project Quality Assurance Manager

The Project Quality Assurance Manager (QA Manager) functionally reports to Corporate Quality Assurance & Compliance Manager and administratively to Director  Projects.  His main responsibilities are:

·        Managing and ensuring that the principles of Quality Assurance are actively practised    by all project personnel in their daily activities throughout the duration of the project.

·        Ensuring that the requirements of this Project Quality Plan, associated procedures and work instructions are integrated into the working methods of project personnel, and that objective evidence of compliance with specified requirements is generated.

·        Monitor contractors and major suppliers to verify that they are complying with their own individual Quality Management Systems applicable to their contracted scopes of work/supply.

·        Operate an internal audit program utilising qualified personnel independent of the area being audited to determine the effective application of the quality management system.

·        Identify and initiate suitable corrective and preventive actions for non-conformance detected or anticipated and ensure effective follow-up, verification and closeout of corrective & preventive actions to address deficiencies.

·        Review and approve Subcontractor’s Quality Plan, Quality Control Plans, Work Procedures and qualification of Quality personnel.

·        Organise external audits of subcontractor’s Quality System in order to ensure effective implementation of their Quality System.

·        Overall control of all inspection, measuring & test equipment.

 

·        Ensure that the personnel under control are adequately trained, qualified, experienced    to perform the activities assigned to them and have access to the procedures describing the quality management system.

·        Promoting and ensuring feedback of project experience together with input from new technology, plus feedback from audits, to ensure continuous improvement of the management system is realised.

·        Ensure relevant QA and QC training for all site personnel and ensure all personnel understand and effectively deliver their QA and QC responsibilities as per Quality Plan and Procedures.

 

5.5.3.4    Site Manager

The Site Manager reports to the Project Manager and is responsible for planning and execution of all Field Construction operations at each site. The  main  responsibilities  include:

·        Liaises with Company Construction  Team.

·        Liaises with Construction  Sub-contractors.

·        Ensures that the necessary resources are allocated to implement the Project Quality Plan.

·        Ensures that qualified personnel are assigned to construction supervision and that they have the proper tools and equipment to perform their functions.

·        Identifying and estimating resources requirement, hiring of special equipment/services and organising procurement / mobilisation of special equipment/services.

·        Implement appropriate corrective and preventive actions to eliminate the non- conformances/customer complaints, if any, identified during site inspections/audits.

5.5.3.5    QA/QC Superintendent (Site)

The QA/QC Superintendent reports functionally to the Project QA Manager and administratively to the Site Manager. The main responsibilities are:

·        Implementation inspection, testing and examination in accordance with Project Quality Plans.

·        Monitor construction quality parameters and controls any deviation from  the requirements.

·        Handles reported non-conformances including investigation, recommendation of  remedial action and confirmation of corrective action.

·        Monitor and review defect levels, advising and discussing remedial actions with Construction Manager / Superintendent.

·        Monitor subcontractor’s activity as per the subcontractor’s approved quality plans, and their performance.

·        Provide guidance in analysing the causes of non-conformance observed & verify implementation of corrective/preventive actions.

·        Ensure that the internal and external audits are carried out as per the audit schedule    and follow up is carried out on non-conformities issued.

·        Provide feedback to Project QA Manager on all Quality related matters including training needs for QA/QC personnel.

·        Oversees the quality, content and consistency of all inspection reporting.

·        Ensures equipment/material is accompanied by correct documentation/reporting and calibration certificates.

 

 

 

5.5.3.6    QC Discipline Inspectors (Site)

The QC Discipline Inspectors report to the QA/QC Superintendent. They are responsible for assisting him on site quality control related functions. The responsibilities include:

·        Implements relevant project quality control plan / inspection and test plans.

·        Carry out inspections and surveillances.

·        Prepares inspection reports / quality records.

·        Reviews inspection and test records and authorizes them for Contractor.

·        Reviews   material   certificates,   calibration   certificates,   and   all   other applicable documentation of a procured product.

·        Reports non-conformance’s and assists in implementing corrective actions.

·        Witnesses critical activities and processes such as procedure qualification, welder / operator qualification, production welding etc.

·        Conducts stage / final inspection and releases the product for the further processing.

 

 

2.5.4       Management Representative

The Project QA Manager (as member of Cairn’s Project Management Team) will be appointed  as  the Project Management Representative, who, irrespective of other responsibilities  and  authorities, has responsibilities and authorities that include:

a)      ensuring that processes  needed for the Project  QMS have been implemented  and are maintained,

 

b)      reporting to the Project Management Team and the Executive Management Representative (Corporate Quality Assurance & Compliance Manager at Cairn’s Corporate Level) on the performance of the Project QMS and any need for improvement, and

 

c)       ensuring the promotion of awareness of stakeholders requirements throughout the project organization.

 

2.5.5       Internal Communication

To control and to centralize the communications of the Project, all official Project communication  shall be addressed to the Project Manager.

The correspondence shall be addressed as follows:

Technical Issues: to the Project Engineering Manager. Copy of this correspondence should be sent to the Project Manager.

Technical day-to-day information shall be handled directly between Contractors’  task  force  members and Cairn’s technical specialists assigned to the Project.

Communication is carried out by means of  Emails,  letters,  telefaxes, transmittal forms, meetings and reports. The use of e-mails should be limited to non-formal communication.

 

Internal corporate communication between Cairn’s Project Team and Cairn’s Corporate  Management shall be properly implemented as per the communication processes established  by  the Integrity Management System (IMS) in section 3.0. The Project Manager shall ensure that internal corporate communication takes place regarding the effectiveness of the QMS.

This kind of communication is ensured through various processes including, but not limited to:

-        Internal media such as memorandum, email, use of corporate Intranet, postings on information boards, and hand to hand document and record distribution, including management orders and directives

-        Meetings necessitated through the operation of the QMS.

-        Regular employee meetings where project related problems are discussed, including any documented meeting minutes

-        Problem related meetings between management and department heads

 

2.6           Management Review

The Project Manager shall sponsor periodic Management Reviews (every 6 months) of the Project Quality Management System. The Reviews shall be attended by the Project Management Team members.

These reviews shall be formal, and recorded in detail, to monitor the effectiveness of the Project Quality Management System to ensure that:

-        The Project Quality Management System is, and shall remain, appropriate to the Project objectives and is effective.

-        Audit activities are pertinent and that findings and recommendations arising are properly evaluated and executed.

-        Identified deficiencies are corrected in a proper and expeditious manner.

-        All other matters of any concern are examined.

 

These reviews shall be identified on the Audit and Review Schedule (DECO-RX-PM-SCH-0100)   and shall compliment the ongoing feedback and improvement of the Project Quality Management System in its day to day implementation.

Findings and recommendations arising from these reviews shall be reported to Cairn’s Project Director and Corporate Management.

Follow-up, verification and close-out of actions arising from such reviews shall be performed and reported by the Project Quality Manager.

The input data for Management reviews will include:

a)     Results of all types of audits,

b)     Stake holder’s feedback and complaints,

c)     Process performance and product conformity (see 7.1),

d)     Status of preventive and corrective actions,

 

e)     Follow-up actions from previous management reviews,

f)      Changes that could affect the QMS, including changes to applicable industry standards, and

g)     Recommendations for improvement.

 

The output from the management reviews shall include decisions and actions related to:

a)      Improvement of the effectiveness of the quality management system and its processes,

b)      Improvement of product related to stake holder’s requirements, and

c)       Resource needs.

 

3       RESOURCE MANAGEMENT

 

3.1           Provision of Resources

Cairn India, as a project governance organization, initially establishes Cairn’s Project Management Team resources –by means of the Project Manager- based on the required capacity for monitoring contractors’ performance as per Cairn Corporate polices and requirements.

As the project evolves, additional resources changes  in the Project Management Team structure   will be handled by Project Manager and properly communicated to Cairn’s Corporate Management.

Project Management Team shall continuously evaluate the ability of contractor’s resources  (adequate physical space, services, equipment and materials addressed to the Project) for  effectively and efficiently executing the works at Cairn’s best interests as per the contract agreements.

 

3.2           Human Resources

 

3.2.1       General

The Project Management Team (Project Manager / Discipline Leader) ensures the availability of competent and qualified Human Resources on the basis of their education, training, skills and experience. These criteria are applicable for both: Cairn’s and contractors’ project personnel.

Cairn’s Project Management Team and / or Discipline Leader shall evaluate contractors’ personnel qualifications related with their corresponding areas in order to asses their competence for performing the work. Records regarding competence shall be kept and be available for review,   when required.

The project organisation for the Project shall be established as per the considerations included in   the Document No: DECO-RX-PM-PLN-0001, Development Team Organization & Resource Plan,  and it is represented by means of the organisation charts shown in document No: DECO-MRX-PM- CHA-2000, Project Organization Chart.

 

3.2.2       Competence, awareness and training

Appointing competent personnel on the basis of education, experience, training  and/or  demonstrated ability is a Project guideline for both, Cairn and Contractors personnel. However, the Project also ensures that all personnel receive the following induction programs:

-        Project Organization and QMS.

-        Induction on HSE.

-        General Induction on Project Development.

Additional training shall be given to  the project team members when adopting and implementing  new tools and techniques.

Supervisory positions are responsible for ensuring that the personnel under their charge are knowledgeable of the Quality Management System as it applies to their job functions.

 

The Project Quality Manager is responsible for providing training and assistance related to quality issues.

 

3.3           Infrastructure

Mangala Project determines, provides and maintains the infrastructure needed to  achieve  conformity to project requirements, including:

a)       buildings, workspace, camps and associated utilities,

b)       process equipment (both hardware and software), and

c)       supporting services (such as transport or communication) Modifications that may be necessary to the infrastructure are discussed through:

-        Periodic meetings involving relevant personnel, including the documentation of meeting results,

-        Discussion during the management review process (Section 5.6 – Management Review).

When evaluating contractors technical bids, infrastructure aspects as mentioned  in  this  section shall be taken into consideration.

Contractors shall also provide and maintain the infrastructure needed to achieve conformity  to project requirements.

 

3.4           Work Environment

The work environment needed to achieve conformity to project requirements and to meet its own internal needs is identified and managed by the Project Manager.

Work environment needed to achieve conformity to project requirements include, but is not limited,   to the following aspects:

a)     Provision of suitable work spaces and offices, including appropriate ergonomic, physical, and sanitary-hygienic conditions (temperature, humidity, illumination level, pollution).

b)     Provision of decent and well maintained personnel camps/living quarters and food storage and preparation facilities.

c)     Supply of personal protective equipment (e.g. clothes, hardhats, glasses, earplugs, gloves, etc.) in accordance with the Health and Safety Program.

d)     Team building events/activities, encouraging a creative and comfortable work environment for personnel.

e)     Ensuring the security of the facilities and working spaces.

 

4       PROJECT IMPLEMENTATION

 

4.1           Project Implementation Planning

 

4.1.1       Project Processes and Interfaces (Project Process Map)

In general the Rajasthan Northern Area Development Project is one process transforming input requirements (the intent for Developing the Rajasthan Northern Area Fields in order to produce oil and increase its value according to all the specific requirements and constraints established by the Government of India, the Licence, Cairn India Corporate, etc) into a final product or output (Surface Facilities in full compliance with the initial requirements and the design intent).

In doing so, the Project can be divided into the following sub-phases keeping in view the Cairn   Gated Process (CGP):

The First Phase considers the Technical Definition –in terms of engineering- of the final Product.  This Phase is called “Engineering and Design” and it could also be split into Conceptual, Basic and Detail Engineering Design. Each one of them produces specific outputs considered “in process products”. However the main outcome of the Engineering and Design sub-process are all the technical considerations (“Deliverables”) that will define the final product. Main controls for this specific phase are detailed in section 7.3 (Design and Development) of this PQP.

In terms of the Cairn Gated Process, the Project Engineering and Design phase mainly covers:

-           Select Phase (Gate 2):          Front  End  Engineering  and  Design  (FEED)  reaching  a level

allowing  Development Definition.

-           Define Phase (Gate 3):          Front   End   Engineering   and   Design   (FEED)   until  having

submitted for approval the Project Execution Plan and the  Field Development Plan and Budget.

-        Sanction Phase (Gate 4):       Detail Engineering and Design.

 

The Second Phase utilise a specific set of the technical considerations already defined in order to purchase equipment, materials and services that will also be required for the Final Product as per  the design intent. This sub-process is called “Procurement” and is mainly controlled as per the requirements established in section 7.4 (Purchasing) of this PQP.

In terms of the Cairn Gated Process, the Procurement phase is mainly covered by:

-        Construct Phase (Gate 5): Procurement, Construction, and Pre-Commissioning.

 

The Third Phase will incorporate both “in process” products outcomes from the previous phases transforming them into a final product and maintaining the original design intent as per the requirements identified since the beginning of the Project. This phase is the “Construction and Installation” Phase (Section 7.5 of this PQP) and it is conceived for ensuring the control of all of the sub-processes required in the development of the final product. This phase  mainly  focus  in  detailing the required controls for the Construction Phase including Pre-Commissioning, Commissioning and Start up.

In terms of the Cairn Gated Process, the Construction phase –as described above- is covered by:

-        Construct Phase (Gate 5):     Procurement, Construction, and Pre-Commissioning.

-        Operate Phase (Gate 6):        Commissioning and Handover to operations.

 

The Project QMS is a valuable tool in order to ensure that every single variable affecting the quality (defined as the compliance with the original requirements) of the facilities intended to be developed (all along the different “in process” stages, since  the  conceptual design until the start up of the  plant) are properly controlled, which increase in great measure the ability of the  project  for  achieving Technical Integrity.

The “Project Process Sequence and Interaction Map” shows the interfaces among the different key processes (see Attachment 1).

 

4.2           Processes related with the Stakeholders

 

4.2.1       Determination of stakeholders’ requirements related to the Project

As mentioned before in Customer Focus (section 5.2), the Mangala Project considers the stakeholders who have a particular interest in the Field Development as customers, including but   not limited to:

·       Cairn India Limited (Corporate)

·       Strategic Partnerships

·       Field owners

·       The government of India and its entities (ministries, institutions, etc), including Rajasthan authorities.

·       Rajasthan communities.

 

In terms of the Cairn Gated Process, all these requirements have been identified and captured    since the “Development Statement” (Gate 1 - Asses), which described the basis of the project, its requirements and the underlying assumptions, passing through the “Development Definition” (Gate   2 – Select), which allowed the selection of the preferred development scheme, until reaching the “Field Development Plan” (Gate 3 – Define), which provided the required detail of the selected Development option and the commencement of the Detail Engineering Design Phase.

The Mangala Project Execution Plan DECO-MRX-PM-PEP-0001 includes the main requirements established by Cairn India at corporate level, the licence to operate (Production Sharing Contract RJ-ON-90/1) and the Indian Government regulations (including environmental and  safety  regulations as per document DECO-RX-PM-SOW-0024 “Regulatory Requirements and Approvals/Consents”), among others.

By means of document DECO-RX-PM-SOW-0043 (Statement of Requirements and Basis  of  Design) the design requirements to be met and latter maintained during the procurement and construction of the facilities are mainly determined and recorded. This document “presents the main design parameters and decisions already made, together with the requirements to be met in the design of the surface facilities for the Mangala Field Development”.

Main Contractors utilised by the Project Management Team for developing the Project could also produce their corresponding Contract Execution Plans as per their particular scope of works. Such documents shall be carefully reviewed by Cairn Project Management Team in order to ensure its alignment with the main requirements identified.

 

4.2.2       Review of stakeholders’ requirements related to the project.

All along the project execution (not only at the beginning of the project), the stake holder’s requirements shall be verified in order to determine whether new stakeholders' requirements or changes in existing requirements already considered  are applicable for the Project and how are   they going to be implemented. Both cases will require an analysis of the Project impact and a proposal leading to an implementation plan.

Project Manager shall be responsible for ensuring that every new stakeholder requirement be properly identified by means of the Project Management Team, communicated and evaluated on its applicability and impact to the project.

 

4.2.3       Stakeholders Communication

All information and communication with stakeholders in India are mainly handled by means of Cairn India offices in Gurgaon and then transmitted to the Project via the Project Manager.

The Project determines and implements effective arrangements for communicating with Cairn India Corporate in relation to:

a)     project information,

b)     enquiries or contracts, including amendments, and

c)     stakeholders’ feedback, including complaints.

 

Among the arrangements in place in order to facilitate communication with Cairn India functions having interfaces with the Project and the Project Management Team, Cairn has implemented a set of tools such as the Documentum™ system, the Tejas Online Portal Service, Cairn’s email service and providing staff mobiles with international calling service.

 

4.3           Design and development

Cairn, as a project governance organization, plans and controls the Engineering and Design Phase  of the Mangala Project through the appointment of a Project Specific Organisation (the Project Management Team) and contracting a specialist engineering design contractor.

All the engineering and design processes affecting project conformity with requirements shall be properly controlled in accordance to this section of the PQP and applicable Project Procedures established for controlling the design deliverables production (refer Detail Engineering Design Process Flow chart is shown in Attachment 3).

Document DECO-MRX-J-SDP-0100 “Engineering Execution Philosophy”, provides a specific guideline for managing and controlling the Project Engineering and Design Processes.

All engineering design activities to be performed by contractors shall meet  the  principles  established in this document. It is the responsibility of the Engineering Manager to  maintain  objective evidences that the contractors have met these principles.

 

4.3.1       Design and development planning

In order to manage the Project Detail Engineering and Design process of the surface facilities the following stages are required to be completed by the engineering contractor:

-        Front End Engineering and Design (FEED) Review (Definition Phase): The primary objective for this Phase is to freeze the Basis of Design. Deliverables in this stage include PFDs, UFDs, plot plans and P&IDs, as well as various details, data sheets, specifications and studies required to support the Detail Engineering and Design.

-        Review/update of Detail Engineering and Design Inputs.

-        Identification of Detail Engineering and Design Deliverables. Preparation of  the  Master  Schedule as per the WBS and the Deliverables Register (or Master Document Register “MDR”).

-        Development of Deliverables following the appropriate revision process,

 

-        Execution of Design Reviews as planned: Process Safety Review, HAZID, HAZOP, Plot Plan Review, Area Classification Review, Constructability Review, Final Safety Review, etc.

-        Control of Detail Engineering and Design Changes.

 

Where required, established or existing contractor procedures can be utilised to cover the control of the design during all stages. For this particular project the following key documents were prepared  by the Engineering Contractor for the performance of the design activities:

DECO-MRX-PM-DCR-2100 The Master Document Register (MDR),

DECO-MRX-R-SOW-2100     Detail Design HAZOP Review Charter – Terms of Reference, DECO-RX-R-PEP-2000      Health, Safety and Environment Execution Plan,

DECO-RX-J-PRO-2012         Verification and Approval of Design Documents and Drawings, DECO-RX-J-PRO-2013         Squad Checking Design Drawings Procedure,

DECO-RX-J-PRO-2014         Drawing and document Issues, DECO-RX-J-PRO-2016                                               Design Change Control,

DECO-RX-PM-PRO-2001      Electronic Exchange of Vendor Documents, DECO-RX-PM-PRO-2005                                               Interface Management Procedure,

DECO-RX-PM-PRO-2021      Vendor Data Processing,

DECO-RX-R-PRO-2010        Environmental Design Review Guidelines. DECO-RX-CM-PRO-2004                                               Request for Information Procedure,

DECO-RX-CM-PRO-2012      Construction Change Management Procedure

 

Significant interfaces between the various Project Engineering Disciplines, Cairn Project Team, the Contractor team, Sub-Contractors and other outside parties are to be identified, documented, and progressed by means of the Cairn Document DECO-MRX-J-SDP-0100 “Engineering Execution Philosophy” and the “Interface Management Procedure”, DECO-RX-PM-PRO-2005.

 

4.3.2       Design and development inputs

The design requirements to be met are mainly determined and recorded by means of document DECO-RX-PM-SOW-0043 (Statement of Requirements and Basis of Design). It presents the main design parameters together with the requirements to be met in the design of the surface facilities    for the Mangala Field Development.

 

Other applicable documents that can be considered as design inputs for including functional and performance design requirements, applicable regulatory and legal requirements and other requirements such as environmental impact and safety for operation of facilities are:

 

Title	Numbering
Licence (Production Sharing Contract)	RJ-ON-90/1 PSC
Regulatory Requirements and Approvals/ Consents	DECO-RX-PM-SOW-0024
Mangala Project Execution Plan	DECO-MRX-PM-PEP-0001
FEED Project Summary Report	DECO-MRX-PM-REP-2100
Risk Assessment Study (Appendix 2)	DECO-MRX-PM-REP-2100

 

The Contractor’s execution experience of previous projects of a similar nature shall also be considered as a design input.

All these input requirements shall be constantly reviewed for adequacy and  resolution  of  incomplete, ambiguous or conflicting requirements by the Project Engineering Team (Cairn Team/Contractor Team) and the results shall be communicated to Project Management if any deviation is identified.

 

4.3.3       Design and development outputs

Design outputs (Deliverables) are recorded in drawings and documents suitable for verification against the detail engineering and design inputs. These are prepared, reviewed, approved and submitted to Cairn as established in the Project Engineering Execution Philosophy (DECO-MRX-J- SDP-0100) and the present document.

The Deliverables List shall be the result of the Engineering Team compilation (by both Cairn Project Team and Contractor Discipline Engineers) of all the technical documents and drawings required to be produced based on the Basis of Design, main P&IDs, the list of equipment and lines, etc., as per Project’s WBS.

The Master Document Register (MDR), for the facilities scope of work is given in the document No. DECO-MRX-PM-DCR-2100. The Lead engineers shall ensure that latest status of relevant engineering discipline deliverables are accurately entered in the Mangala Project MDR, which is viewable to the project team members.

In order to have a “seamless hand over” of electronic project deliverables to Cairn Operations, the electronic management tool “Documentum™” will be used providing also a control document warehouse for storage and retrieval of all electronic documentation and easy access to the documentation through controlled security levels. Cairn Project Document DECO-RX-PM-PRO-  0005 (Detail Design & Engineering Team – Document Control Procedure) includes a description of this tool functionality.

 

4.3.4       Design review / Technical Integrity Review

Design reviews shall be accomplished at specific stages during the life of the  Project,  in  accordance with formal procedures provided in the project HSE Management System Manual (DECO-RX-R-MAN-0100), and by a number of methods including:

·        P & ID Reviews

·        HAZID/HAZOP Reviews

·        SIL Assessment (requirements and analysis)

·        Quantitative Risk Analysis

·        Layout Reviews

·        Formal safety assessments by external safety consultant

·        Plot Plan Reviews

·        Hazardous Area Reviews

·        Operability Review

·        Safety and Operability Study of Electrical Systems (SAFOP) study.

 

The reviews shall ensure, among other things, that the design:

·        can be constructed, inspected, tested, operated and maintained.

·        complies with the specific safety, environmental, availability, operability and maintainability requirements.

·        Meets the individual and societal risk acceptance criteria set by the  project  and demonstrates that operational risks are As Low As Reasonably Practical (ALARP).

 

Design reviews shall be carried out by representatives of Cairn, 3^rd party consultants and the Engineering Contractor from each engineering discipline.

The timing of the reviews shall be dependent on the progress of the project and the interfaces associated with different disciplines. Records of these reviews shall  be  documented  and  maintained in accordance with project specific procedure DECO-RX-PM-PRO-2011 “Project  Records Management”, prepared by the Engineering Contractor.

Project design / safety reviews shall be scheduled to correspond with the completion of project process definition documents (see the Health, Safety and Environment Execution Plan, Doc. No. DECO-RX-R-PRO-0062). Typically this will include:

·        PFD’s,

·        P&ID’s,

·        Electrical  One-line Diagrams,

·        Area  Classification Diagrams,

·        Plot Plans / Equipment Location Plans, and

·        Safety Equipment Layouts.

A final design review shall be conducted and documented. Approval of final design review shall be made by “individuals other than the person or persons who developed the design”. Operations representatives must be part of this final review.

Various HSE assurance activities shall parallel the design development, summarised in the HSE Execution Plan. These activities will include a series of Project  HSE Reviews (PHSERs) organised by Cairn India corporate and utilising non-project team members to provide extend verification of    the design and suitable assurance to the Cairn India board, parties and other key stakeholders that

 

the project has successfully met its stated HSE objectives and future work is planned with HSE as  an integral part.

HSE Actions from the design phase shall be recorded, actioned, approved and closed out in accordance with the HSE Actions Monitoring procedure (DECO-RX-R-PRO-0018).

 

4.3.5       Design and development verification

Design verification is carried out on all design deliverables to ensure that they:

-        Meet the design input requirements for Detail Engineering and Design;

-        Provide appropriate information for purchasing, construction and testing activities.

-        Contain or make reference to the acceptance criteria, for each element of the facilities (system, sub-system, line, equipment, etc) being designed.

-        Specify the characteristics of the facilities (or any element of the same being described by means of the design) that are essential for its safe and proper use.

 

Other aspects of the deliverables that shall be taken into consideration during the verification are:

-        Deliverables are correct, clear and unambiguous.

-        Deliverables comply with the technical, format and presentation requirements.

-        Deliverables are adequately substantiated by calculations.

-        All interfaces have been identified and addressed.

 

Qualified Engineers other than those who prepared the deliverables perform this verification as per the project specific procedure DECO-RX-J-PRO-2012 “Verification and Approval of Design Documents and Drawings”.

Cairn shall review all documents produced by the Engineering Contractor as identified in the Master Document Register.

Design documents that pertain to or reflect the Design Criteria, or could have an impact on two or more project disciplines or other engineering deliverables shall be routed  for  interdisciplinary  checks (IDC) in accordance with the “Verification and Approval of Design Documents and Drawings Procedure” DECO-RX-J-PRO-2012 and the “Squad Checking Design Drawings Procedure” DECO- RX-J-PRO-2013.

Project Deliverables (technical drawings and documents) shall be checked, reviewed and approved in accordance with the matrix shown in the Attachment 4 (“Review, Approval and Squad Checking   of Documents and Drawings”).

Documents and drawings shall be issued in accordance with Cairn Project Numbering System Procedure DECO-RX-PM-PRO-0002 and approved document control practices.

After documents have been approved by Cairn, all further revisions to specifications and design documents require Cairn approval.

Every document is to reflect a unique revision and revision date.

For all Project deliverables (documents and drawings) the following revision indicators shall apply:

 

o   A1, A2, A3 … etc        - Work in progress / IDC/ Issued for client review

o   B1, B2, B3 … etc        - Approved for Design / Enquiry / Issued for Implementation

o   C1, C2, C3 … etc       - Approved for Construction / Purchase

o    Z1, Z2, Z3 … etc       - As Built

o    V                                - Void / Obsolete

All issues of Project drawings and documents must include an “issue description” in the revision description block, which shall be in accordance with the project procedure DECO-RX-J-PRO-2014 “Drawing and document Issues”.

Vendor documents will be reviewed as per Cairn documents DECO-RX-PM-PRO-0003  (Requirement for the Delivery of Supplier Documentation & Data) and the Engineering Contractor procedures: DECO-RX-PM-PRO-2021 (Vendor Data Processing) and DECO-RX-PM-PRO-2001 (Electronic Exchange of Vendor Documents).

The output from computer calculations shall be verified as for design documentation and shall be checked by alternative calculation methods. Computer data shall be secured from loss or damage   by regular back-up and protected from unauthorised access.

All design software shall be subject to validation prior to use on the project. Such validation shall be completed either corporately or on the Project.

 

4.3.6       Design and development validation

The Project shall utilise design validation to ensure that supplied product (Surface Facilities) conforms to Contract requirements.

During the fabrication of engineered equipment, the design validation is performed by means of the tests specified by the industry standard of reference, functional and/or operational tests (Factory Acceptance Test - FAT) or field performance tests (Site Acceptance Tests) as applicable and required.

During the construction phase, the validation of the design is performed prior to the handover of the Facilities to Cairn India Operations, during the Commissioning phase of the Project and will be established in specific commissioning procedures as per each system (sub-system) limit.  The  results will be recorded in test reports and relevant actions will be followed-up  by  the Commissioning and Quality Departments. Cairn Project Document DECO-RX-OP-PRO-0001 (Handover Procedure & Protocol) includes a general description of these activities.

 

4.3.7       Control of design and development changes

Procedure DECO-RX-J-PRO-2016 “Design Change Control” shall be used in order to document changes in design involving:

a)     the approved design criteria,

b)     the approved project specifications and procedures,

c)     approved industry codes and standards, and

d)     any other basic design documents which have received prior Cairn review and/or approval.

 

Requested changes to drawings that have already been “Issued for Bid” or “Issued for Design” shall be documented using a Design Change Request (DCR). Furthermore, a “Design Change Log” shall be developed in order to record all changes in Design as established in the above mentioned procedure.

Changes in design shall also be examined for the implication of changes in scope or  the  requirement of a review for HAZOP issues.

In addition, changes that occur during or subsequent to the performance of the project HAZOP   study must be reviewed and approved by both Cairn and the Engineering Contractor for impact to  the safety, operability, and function of the facilities. All resulting approval shall be appropriately logged. The safety elements review shall be implemented under the Cairn Document DECO-RX-R- PRO-0106, “HSE Management of Change Procedure”.

Other considerations that shall be ensured by the Design Change Control procedures are:

-        Design changes are reviewed and approved, where possible, by the same personnel who performed the original design.

-        Information concerning design changes is transmitted to all personnel affected  by  the  design change, in a controlled and timely manner.

-        The technical impacts of such changes are considered and the relevant actions performed and documented.

-        All changes out-with the Contract are subject to formal variation approval.

During the revision and approval of Vendor’s design for project packages, equipment or materials, every single change to  the design specifications  provided shall be evaluated in its result recorded  by means of the following procedures: “Request for Information Procedure”, DECO-RX-CM-PRO- 2004 and “Design Change Control”, DECO-RX-J-PRO-2016.

Field Engineering will also require the appropriate management of changes in design by means of the “Construction Change Management Procedure” DECO-RX-CM-PRO-2012 and the Procedure DECO-RX-CM-PRO-2004 “Request for information”, which also provides guidelines for preparing, distributing, and responding to Requests for Information (RFIs) issued by the construction  contractors in the job site.

 

4.4           Procurement and Contracting 

4.4.1       Purchasing process

The Project ensures that purchased products included in the project’s scope and affecting Project requirements compliance (packages, equipment, materials and services) conforms to specified purchase requirements.

Document DECO-RX-CN-PRO-2000 “Procurement Process Flow Chart” details the complete series of steps and interfaces established for Purchasing Products in the Mangala Project.

A more general and summarised representation of such process is shown in Attachment 5.

The Project will coordinate the Procurement and Contracting activities by means of several  interfaces involving a Cairn Procurement Team in the Engineering Contractor offices, a Cairn

 

Corporate Procurement Team coordinating activities in India Headquarters and a Procurement support team provided by the Engineering Contractor as part of its scope of work. As required by   the Project other interfaces will take place such as the involvement of a Procurement team by the Construction Main Contractor.

The following project specific procedures describe the main activities of these processes to be developed by the Engineering Contractor’s Procurement Team, on interface  with  Cairn  Procurement Teams:

 

-        DECO-RX-PC-PRO-2003      “Requisitioning”.

-        DECO-RX-PC-PRO-2004      “Purchasing”.

-        DECO-RX-PC-PRO-2006      “Expediting”.

-        DECO-RX-PC-PRO-2007      “Traffic”.

-        DECO-RX-PC-PRO-2008      “OS&D Reports”.

-        DECO-RX-PC-PRO-2009      “Invoice Releases”.

-        DECO-RX-PC-PRO-2010      “Material Management System-MATCON”.

 

Ad-hoc procedures detailing the tender assessment process for each construction package shall be used by the Project team appointed for evaluating construction contractors’ tenders in order to  ensure the best selection of contractors capable of offering tangible benefits for the Project  execution.

 

The Project Quality Manager is responsible for ensuring QA/QC participation in:

-        Evaluating the technical Bids (QA/QC content).

-        Verifying purchase orders with regards to Quality.

-        Evaluating vendors’ performance.

-        Verifying products as per relevant Inspection Matrices and approved ITPs.

The Procurement Manager:

-        Ensures that the purchase packages are adequately defined on their content and since a commercial perspective;

-        Manages the Expression of Interest (EOI) pre-qualification process.

-        Ensures the proper coordination of the bid clarification process where procurement department acts as a link between engineering and vendors.

-        Selects qualified suppliers and holds an “approved vendor list”;

-        Maintains evaluation records.

The Discipline Engineer

-        Prepares technical documents and ensure their review before distribution to supplier.

-        Evaluates the technical bids and incorporate inputs from other groups (QA/QC, HSE).

-        Reviews Vendors data (as per DECO-RX-PM-PRO-2021 “Vendor Data Processing”).

 

4.4.2       Supplier Selection

It shall be ensured that Suppliers are selected on the basis of their ability to supply products   meeting the quality and delivery requirements specified in the purchase documents.

The evaluation and selection of Suppliers will be performed as per Procedures DECO-RX-PC- PRO-2003 “Requisitioning” and DECO-RX-PC-PRO-2004 “Purchasing”.

 

Project Engineering Team shall be involved on the preparation of all the technical data required  (such as descriptions, specifications, quantities, etc.) and their related attachments (Inspection  Matrix Forms, Datasheets, Drawings and Sketches, General Notes, Vendor Documents, list of all relative written specifications and standard drawings, etc.), during the stage of clarifications  (previous to the placement of the purchase order) and during the review and approval of Vendors’ designs for fabrication.

All commercial aspects shall be handled by the Procurement Department.

Only suppliers approved by correct process and procedures are eligible. Preference will be given to those Suppliers having a certified Quality Management System in place as per ISO 9001:2000  and/or ISO/TS 29001:2003. However for all cases, suppliers’ QMS shall be assessed,  commensurate with the type of goods and scope of services provided.

 

For suppliers intended to provide equipment requiring specific design activities, ISO/TS 29001 shall fully apply and Project Specific Quality Plan shall reflect this requirement. For suppliers without design activities the controls in order to ensure an adequate management of design information received or under Cairn’s review for approval shall be clearly stated. For suppliers of stock items or non design, non-manufacturing services, applicable clauses of ISO/TS 29001 shall be implemented as per a process mapping describing all the activities in order to enforce the Purchase Order in the agreed terms. Document DECO-RX-Q-SP-0100 “Equipment Criticality and QA/QC Surveillance” includes a matrix of reference for applicable ISO/TS 29001 clauses as per the type of goods and scope of services to be provided.

 

Suppliers shall submit objective evidence of their Quality Management System and associated certification with the bid. Suppliers shall confirm their commitment to quality and supply sufficient information about their Quality Management System to allow the evaluation of  the  bid since a  quality point of view.

 

4.4.3       Purchasing information

Purchasing information shall describe the product to be purchased, including where appropriate

-        requirements for approval of product (approval criteria as per the Inspection and Testing requirements and Factory Acceptance Testing requirements), procedures, processes and equipment,

-        requirements for qualification of personnel (i.e. welders, operators, engineers), and

-        supplier documentation (including vendor certificates) requirements,

-        quality management system requirements.

 

The Project shall ensure the adequacy of specified purchase requirements prior to their communication to the supplier.

The purchasing information shall state the intended verification arrangements and method  of  product release (i.e. Factory Acceptance Test), where the Project intends to perform verification at the supplier's premises (see 7.4.4).

Procedure DECO-RX-PC-PRO-2003 (“Requisitioning”) provides guidelines for the preparation of a standard project requisition (Material and Service Requisition or MSR) as part of the Request for

 

Quotation (RFQ) Package. It is applicable to all requisitions that are prepared to formally inquire    and purchase materials (including equipment) and/or services during the execution of the project.

The technical part of the requisition shall include technical data such as  descriptions, quantities,  cost code numbers, and a list of attachments such as data sheets, drawings, and specifications as applicable.

Such technical data is prepared by Project Engineering as well as their related attachments (Inspection Matrix Forms, Datasheets, Drawings and Sketches, General  Notes,  Vendor  Documents, list of all relative written specifications and standard drawings, etc.).

Procedure DECO-RX-PC-PRO-2004 (“Purchasing”) provides guidelines for developing, approving and issuing purchase/change orders.

Purchase Orders will contain the following minimum information:

-                  Address, telephone, fax number and Email address of Vendor.

-                  Purchase Order number, revision number and date.

-                  Line item number, quantity, description and tag number of items to be purchased.

-                  A listing of all applicable specifications and drawings.

-                  Required delivery dates for all materials ordered. Set a definite date or delivery window (not number of weeks).

-                  Ship-To address.

-                  Receiver’s name, address, e-mail, telephone, and fax numbers.

-                  Cost Code (ARE number, etc. by line item).

-                  Preparer’s name, address, e-mail, telephone, and fax numbers.

-                  Invoices address instructions and terms.

-                  Terms and Conditions.

-                  INCOTerms.

-                  Technical Requirements as defined in the Requisition Package.

A Purchase Order Package comprised of the following documents:

-                  Purchase Order.

-                  All listed attachments.

-                  Technical Requisition (Issued for Purchase).

 

4.4.4       Verification of purchased product

The Project has established the inspection and/or other activities necessary for ensuring that purchased product meet specified purchase requirements as per the documents DECO-RX-Q-SP- 0100 “Equipment Criticality and QA/QC Surveillance” and DECO-RX-Q-PRO-2008 “Vendor inspection Procedure”.

 

The evaluation of suppliers (type and extent of controls applied to the supplier and the purchased products) shall be dependent upon the type of product, the supplier's ability and the impact of  product on the final facilities, as defined by the assigned criticality rating.

The criticality rating is a quantitative identification of the severity of a potential failure of a system, equipment, and/or service, with regards to operability, safety, environment, and costs. It is established by means of the method specified in the IMS Document “Criticality Rating”.

The selection of the appropriate Level of Surveillance shall be initially based on the Inspection and Test Matrices included in the purchase order documentation, but modified (adjusted) to reflect the specific characteristics of Project by means of specific Inspection and Test Plans (ITPs) required to be approved by members of the project quality function. Surveillance by Cairn India shall be also designed to check the Supplier's system and/or the goods in order to provide  confidence  that  quality is adequate.

Company approved Third Party Inspection Agency (TPIA) shall be nominated considering the  specific Inspection and Testing requirements for each case. TPIA activities shall be coordinated by the Engineering Contractor, with direct involvement and supervision of Cairn’s QA/QC Coordinator, as required.

Document DECO-RX-Q-SP-2000 “Vendor Quality Assurance Requirements” details the minimum  QA requirements that vendors are required to comply with.

Document DECO-RX-Q-SP-0001 “Quality Assurance Requirements Contractors” details the minimum QA requirements that contractors are required to comply with.

Package Engineer shall ensure that these last two documents form part of the MSR and the PO.

Purchased products also include a set of documentation as established in the Document Requirement Schedule (DRS) prepared for each Purchase Order. This schedule details what  specific documentation shall be delivered by the supplier and when. This documentation shall be reviewed and collected as per the approved ITPs.

 

4.5            Production and service provision

The Project “production and service provision” includes the following processes  for  the  Development of the Mangala Field: exploration drilling, well design, well procurement, drilling and well completion, FEED, detail engineering and design, contracting and procurement, construction, installation, commissioning and hand over to operations.

Considering that the main controls for Engineering and Procurement processes have been specifically described in sections 7.3 (Engineering) and 7.4 (Procurement), this section  will  be mostly referred to detail the main controls established by the Project QMS for the Construction and Installation activities, without undermining the other phases required controls.

 

4.5.1       Project Execution Control

Cairn’s Projects Management, as a project governance organization, plans and controls the Construction Phase of the Mangala Field through the appointment of a  Specific  Project  Organisation (Project Management Team) and the contracting of a Main Construction and  Installation Firm (Main Contractor).

 

The Project Management Team under the responsibility of the Project Manager shall plan and  control the Construction, Inspection and Testing activities ensuring the following:

-        Availability of specifications, plans, drawings, procedures, processes and work instructions that define the characteristics of the construction, inspection and testing.

-        Use and maintenance of suitable construction, installation, inspection  and  testing  equipment.

-        Availability and use of suitable measuring and monitoring equipment.

-        Availability of work  force  with proper qualification. Operators/Technicians shall be qualified  to internationally recognized governing bodies.

-        Implementation of suitable monitoring and measurement activities.

-        Implementation of processes for release and delivery and/or installation of product and/or  service including applicable post-delivery activities.

 

See Attachment 6 for Process Flow chart for Construction.

 

4.5.2       Validation of Project Processes for Production and Service Provision

All processes where the conformity of the resulting output cannot be readily or economically verified by subsequent monitoring or measuring (e.g. welding, concrete mixing, etc) shall be validated by    the Project and formal Cairn approval obtained prior to their execution. This includes any processes where deficiencies become apparent only after the product is in use.

Validation shall demonstrate the ability of these processes to achieve planned results.  The  validation measures include the following actions:

-        Identification, preparation and approval of the procedure specifications and defined criteria  for review and approval of the processes (e.g. WPS),

-        Verification and acceptance of materials (same material will be used for production),

-        Process qualification using approved equipment and qualified personnel,

-        All qualification records (e.g. visual, destructive and non destructive testing) generated, approved and maintained,

-        Revalidation when any essential variable is changed.

 

4.5.3       Identification and traceability

The identification and traceability system shall be applied for the following:

-        Pipes, valves, fittings, welding consumables.

-        Pressure retaining parts such as shells, heads, flanges and tube sheets.

-        Welded joints and welders.

-        Fibre optic.

-        HV Power transmission cables.

-        Other permanent items / equipment incorporated in the construction.

 

-        Inspection, test and quality verification status.

Products and construction activities shall be identified during all phases of product realization by means of legible and durable markings maintained from initial receipt to final destination and/or by using relevant follow-up documentation (i.e., a drawing indicating the specific drum identification number from which a particular fiber optic cable installed was taken, showing its location. This way the Fiber Optic installed can be easily related to the vendor or manufacturer, the PO information    and all the corresponding certificates and testing applied to the same).

The identification of items of equipment and certified materials, ITP and all test records shall be maintained by the project using the corresponding tag numbers (as  applicable).  Material  certificates, construction welding book and inspection reports are supporting elements for identification and traceability of products.

Responsibilities for identification and traceability are as follows:

-        Design Engineer specifies identification and certification requirements in purchase documents.

-        Material Controller verifies the required identification/certification during material receipt.

-        Project Quality Manager establishes and ensures appropriate system for identification and traceability.

-        Construction team implements measures for identification and traceability.

 

4.5.4       Stakeholders property

No Stakeholders supplied product is incorporated into the Mangala Project.

 

4.5.5       Preservation of product

The Project Management shall preserve the conformity of product (e.g. packages, systems, equipment, materials, etc.) from deterioration or damage during project development until they are handed-over to Cairn Operations. This preservation shall include  identification,  handling,  packaging, storage and protection and also apply to the constituent parts of a product.

the Project Management shall review and approve (as appropriate) the Vendors controls to be applied on Project products regarding identification, handling, packaging, storage and protection during the delivery.

Packaging and marking of all materials to be sent to the site shall be controlled to  ensure  compliance with specified requirements and proper identification.

In the same way, during the Construction Phase appropriate controls on site have  to  be available  for handling, packaging, storage and preservation of products received, installed and/or built.

A Material Storage and Preservation Plan is to be submitted for approval by the construction contractor and should include all activities, procedures and forms required for the purpose of identifying, inspecting, off-loading, receiving, handling, storing and preserving all the contractor- supplied equipment and materials. This plan is to incorporate all equipment vendor’s storage / preservation recommendations, safe working practices and special handling requirements and shall be continuously maintained and updated as necessary. An organization chart depicting personnel and responsibilities for scheduled activities and follow-up through out the work is to be included.

Manufacturers' recommendations with regard to storage and preservation of the equipment shall be strictly adhered to.

Goods, which fall under statutory regulations for dangerous goods, shall be packed, marked, and stored separately in accordance with the relevant regulations.

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