1.

The Pertnash PO# 4400004019, Rev-0, dated feb 23rd 2017 has been provided to
inspector in which some requirement related to fluoropolymer bolting material, direction
arrow marking on valves dual grade certified SS material & material were mentioned but
during the inspect ion one revised PO#4400004019, Rev-01 o dated July 02nd has been
provided by IVM which does not have the requirement of rev-0 PO. MC Dermott to provide
confirm that either the revised PO has been received and acceptable to them.-
Fluoropolymer coating is not required as per approved drawing since the complete valve
along with stud bolts will be painted.

Inspector Response : This comment was not only for the Flouropolymer coating of
bolting material. This comment is for the revised PO and inspector has asked that if
this revised PO is received because from McDermott only the original PO has been
received and manufacturer has provided the revised PO during inspection.

2. As per Po the fore safe certificate is required but not provided by the IVM. To be
provide.- Noted.

Inspector Response : IVM to provide.

3. As per revised PO# the material will be dual certified 316/316L but regarding this
the following material is not dual certified.

i. But the ball, stem, and bolting material is not dual certified. It
is only SS316 Regarding this IVM has informed that they have provided the
material as mentioned in approved Data sheet and approved NMR drawings. MC
Dertmott/ Petronash has to resolve the matter and provide the solution to
inspector in bases of the project requirement.As per approved GAD drawing
dual certification is required only for body and 316 is acceptable for others
components as specified above.

Inspector Response : Please be note that as per NMR drawings & data sheet dual
certification is not required for body. Only SS316L is required. Above comment is for
trim material . As per your comment As per your response 316 is 316 is acceptable for
other material then PETRONASH to revise the PO as per the actual material /
approved NMR.

ii. For 2 class 150 ball valve, the body of heat numbers EKO
and EKI are not dual certified ( does not mentioned dual certification in
 MTC). Only it is SS316L certified. Regarding this IVM has informed that they have
provided the material as mentioned in approved Data sheet and approved NMR
drawings which SS 316L only. MC Dertmott/ Petronash has to resolve the matter
and provide the solution to inspector in bases of the project requirement.
Petronash to resolve as this was agreed as a part of VDR review comments.
Subsequently GA drawing (D6463-VD-MMP08-01-B01-0001 Rev 00b) revised and
approved.

Inspector Response : Noted. Resolution of comment is required.

iii. For 3 class 150 ball valve, the body of heat numbers EKD,
EKP and EVE & closure of heat number EKI, EKL and EUV are not dual certified (
does not mentioned dual certification in MTC). Only it is SS316L certified.
Regarding this IVM has in&formed that they have provided the material as
mentioned in approved Data sheet and approved NMR drawings which SS 316L
only. MC Dertmott/ Petronash has to resolve the matter and provide the solution
to inspector in bases of the project requirement. Petronash to resolve as this was
agreed as a part of VDR review comments. Subsequently GA drawing (D6463-VD-
MMP08-01-B01-0001 Rev 00b) revised and approved.

Inspector Response : Noted. Resolution of comment is required.

4. For 1 class 800 valves and 1 class 1500 valves the 100 mm pipes are welded at both
socket weld ends but the WPS and PQR are not approved. Approval of WPS & PQR is
required.. For reference the WPS & PQR used in the welding is attached. Internal
approval is mandatory, however as per valve SAMSS this need not require ARAMCO
approval. Petronash to review/approve is required.

Inspector Response : As per my understanding the pipes is welded to the valves. It is

same as the piping welding (this valves is going to attached with the chemical package
piping.) & as per SAEP-351 , table-1 Aramco approval is required for piping welding.

5. Regarding the PMI following observations are made :

i. As per Revised PO notes the PMI will be done for all SS parts
but for trim material ball & stem, seat rings) no PMI has bene done. Moreover as
per 04-SAMSs-048, clause 4.6 , ally verification of trim material is required if
specified in PO and PO states that PMI will be done for all SS parts. Petronash to
resolve and revise the PO accordingly. Or else do PMI as per PO.

Inspector Response : Noted. PETRONASH to resolve the issue.

 ii. For 1 class 800 valves and 1 class 1500 valves the 100 mm
pipes are welded at both socket weld ends but no PMI is done for the pipes and
weld joints. As per 04-SAMSS-048, clause 4.6, PMI will be done for all pressure
retaining parts and pipes and weld joints are pressure retaining parts. Moreover
as per SAES-A-206, clause 7.2, One hundred percent (100%) PMI testing shall be
performed on all pressure components and welds of alloy materials and as per
Clause 7.3 PMI testing of weld metal shall be subjected to the same coverage
as for the base material.. Alos as per clause 7.4, (I), One test for each pressure-
retaining component is required If an assembly contains a number of
components (parts), one test is required for each component. In our case we
have the pipes welded to the valves. So, the PMI is required on the pipes as
well as on weld joints, Yes your understanding is right

Inspector Response : Noted. PETRONASH to resolve the issue.

6. For the 2 class 150 valves, as per approved drawing, the bolting material is bolt
only but in actual the stud with nuts has been provided. Petronash to resolve and revise
the drawing.

Inspector Response : Noted. PETRONASH to resolve the issue and revise drawing
approval is required from MCdermott

7. For the 3 class 150 valves, as per approved drawing, the bolting material is stus
only but in actual the bolt has bene provided. Petronash to resolve and revise the
drawing.

Inspector Response : Noted. PETRONASH to resolve the issue and revise drawing
approval is required from McDermott

8. As per the valve data sheet valves shall be painted but as per approved NMR the
valves painting is in the Petronash scope. So, confirmation from Mcdermott is required
on it. Will carried out at Petronash

Inspector Response : Noted.

9. Confirmation from IVM is required that the 1.5 mm gap is maintained when the
pipes is welded to the socket end on the 1 class 800 & 1 class 1500 valves as required by
 ASME B 31.3. It was not possible to witness as valves are already welded.-Noted, please
verify and close.

Inspector Response : IVM to confirm as we have mentioned in our comment.

10. Due to time limitation the test report for PMI witness & PMI review were not
reviewed & packing inspection was not done ( packing is witness point as per approved
ITP.). So, one visit will be scheduled to review the report & to witness the packing of
valves. -Noted, hope actioned already for one more visit.

Inspector Response : Noted

The Petronash PO# 4400004019, Rev-0, dated feb 23rd 2017 has been provided to
inspector in which some requirement related to fluoropolymer bolting
material, direction arrow marking on valves dual grade certified SS
material & material were mentioned but during the inspect ion one revised
PO#4400004019, Rev-01 o dated July 02nd has been provided by IVM which does not
have the requirement of rev-0 PO. MC Dermott to provide confirm that either the
revised PO has been received and acceptable to them.- Fluoropolymer coating is not
required as per approved drawing since the complete valve along with stud bolts will
be painted.

<< PN Response 3rd July 2017 : Closed >

Inspector Response: The PO will be revised by PETRONASH as per actual material and copy
will be provided for reference. (comment is open) ----Petronash will revise the PO.

2. As per Po the fore safe certificate is required but not provided by the IVM. To be
provide.- Noted.

<< PN Response 3rd July 2017 : Noted shall be made available on next visit >>

Inspector Response: Provided. (Comment closed)

3. As per revised PO# the material will be dual certified 316/316L but regarding this the
following material is not dual certified.

i. But the ball, stem, and bolting material is not dual certified. It is only SS316
Regarding this IVM has informed that they have provided the material as mentioned in
approved Data sheet and approved NMR drawings. MC Dertmott/ Petronash has to resolve
the matter and provide the solution to inspector in bases of the project requirement.As per
approved GAD drawing dual certification is required only for body and 316 is acceptable for
others components as specified above.

<< PN Response 3rd July 2017 : Noted and closed >>

Inspector Response: as per above mentioned response that 316 is acceptable

for trim it is ok. But as it was mentioned in PETRONASH PO that all material will
be dual certified so, PO will be revised and copy will be provided for
reference.(Comment is open) ----Petronash will revise the PO.

For 2 class 150 ball valve, the body of heat numbers EKO and EKI are not dual
certified ( does not mentioned dual certification in MTC). Only it is SS316L
certified. Regarding this IVM has informed that they have provided the material
as mentioned in approved Data sheet and approved NMR drawings which SS
316L only. MC Dertmott/ Petronash has to resolve the matter and provide the
solution to inspector in bases of the project requirement. Petronash to resolve
as this was agreed as a part of VDR review comments. Subsequently GA drawing
(D6463-VD-MMP08-01-B01-0001 Rev 00b) revised and approved.

<< PN Response 3rd July 2017 : As per approved Valve GA drawings and valve
datasheet vendor has manufactured and offered valves for inspection. The GA
drawing refer here (D6463-VD-MMP08-01-B01-0001 Rev 00b) is package GA
drawing which is approved at the last fag end of the projects when valves are
already manufactured or advance stage of machining / assembly. Secondly, these
valves are flanged type and there wont be further welding involved during
assembly with our piping.>>

Inspector Response: Regarding this comment following points were disused:

(I) It is agreed that for the above mentioned heats, the certificate of conformity
for dual certification is required from the forging manufacturer. (Comment is
open) ----COC from cast or forging manufacturer shall be obtained.

(ii) it is observed that for the above mentioned heat on the actual valve only 316L
is mentioned and dual certification is not mentioned. on body As per MSS-SP-
25, clause 18.1 the material designation is required to be marked on valve body.
and clause 11, which is for omission of marking does not allow to omit the
material designation. ----Material marking on the component shall be done only
by raw material manufacturer & hence accepted as it without dual certificate
marking.

(ii) for all valves ( complete offered valves), on the IVM provided
identification name plate only 316 is mentioned for body and dual certification
is not mentioned. As per MSS-Sp-25, clause 18.2, the material designation is
required. ----Name plate shall reflect actuals i.e., dual certification

(Comment is open)

ii. For 3 class 150 ball valve, the body of heat numbers EKD, EKP and EVE
& closure of heat number EKI, EKL and EUV are not dual certified ( does not
mentioned dual certification in MTC). Only it is SS316L certified. Regarding this
IVM has in&formed that they have provided the material as mentioned in
approved Data sheet and approved NMR drawings which SS 316L only. MC
Dertmott/ Petronash has to resolve the matter and provide the solution to
inspector in bases of the project requirement. Petronash to resolve as this was
agreed as a part of VDR review comments. Subsequently GA drawing (D6463-
VD-MMP08-01-B01-0001 Rev 00b) revised and approved.

<< PN Response 3rd July 2017 : As per approved Valve GA drawings and valve
datasheet vendor has manufactured and offered valves for inspection. The GA
drawing refer here (D6463-VD-MMP08-01-B01-0001 Rev 00b) is package GA
drawing which is approved at the last fag end of the projects when valves are
 already manufactured or advance stage of machining / assembly. Secondly, these
valves are flanged type and there wont be further welding involved during
assembly with our piping.>>

Inspector Response: Regarding this comment following points were disused:

(I) It is agreed that for the above mentioned heats, the certificate of conformity
for dual certification is required from the forging manufacturer. (Comment is
open) ----COC from cast or forging manufacturer shall be obtained.

(ii) it is observed that for the above mentioned heat on the actual valve only 316L
is mentioned and dual certification is not mentioned. on body As per MSS-SP-
25, clause 18.1 the material designation is required to be marked on valve body.
and clause 11, which is for omission of marking does not allow to omit the
material designation. ----Material marking on the component shall be done only
by raw material manufacturer & hence accepted as it without dual certificate
marking.

(ii) for all valves ( complete offered valves), on the IVM provided
identification name plate only 316 is mentioned for body and dual certification
is not mentioned. As per MSS-Sp-25, clause 18.2, the material designation is
required. ----Name plate shall reflect actuals i.e., dual certification

(Comment is open)

4. For 1 class 800 valves and 1 class 1500 valves the 100 mm pipes are welded at both
socket weld ends but the WPS and PQR are not approved. Approval of WPS & PQR is
required.. For reference the WPS & PQR used in the welding is attached. Internal approval is
mandatory, however as per valve SAMSS this need not require ARAMCO approval. Petronash
to review/approve is required.

<< PN Response 3rd July 2017 : As per form 175-IR043600 and 04-SAMS-035 and 048 Welding
procedure approval is not required to be approved. However, IVM has confirmed that they are
following WPS approved by SA. Hence point is closed >>

Inspector Response: As informed that the required WPS is for valve welding, so the approval
from PETRONASH is required. (Comment is open) ----Vendor to shown evidence of CSD
approval or review & accepted by Petronash.

5. Regarding the PMI following observations are made :

 i. As per Revised PO notes the PMI will be done for all SS parts but
for trim material ball & stem, seat rings) no PMI has bene done. Moreover as per 04-
SAMSs-048, clause 4.6 , ally verification of trim material is required if specified in PO
and PO states that PMI will be done for all SS parts. Petronash to resolve and revise
the PO accordingly. Or else do PMI as per PO.

<< PN Response 3rd July 2017 : Noted PO will be revised. >>

Inspector response: As mentioned in above response either PMI is required on the

trim parts or PO will be revised and copy will be provided for reference. (Comment is
open) ----Petronash will revise the PO.

ii. For 1 class 800 valves and 1 class 1500 valves the 100 mm
pipes are welded at both socket weld ends but no PMI is done for the pipes and weld
joints. As per 04-SAMSS-048, clause 4.6, PMI will be done for all pressure retaining
parts and pipes and weld joints are pressure retaining parts. Moreover as per SAES-
A-206, clause 7.2, One hundred percent (100%) PMI testing shall be performed on
all pressure components and welds of alloy materials and as per Clause 7.3 PMI
testing of weld metal shall be subjected to the same coverage as for the base
material.. Alos as per clause 7.4, (I), One test for each pressure-retaining
component is required If an assembly contains a number of components (parts),
one test is required for each component. In our case we have the pipes welded to
the valves. So, the PMI is required on the pipes as well as on weld joints, Yes your
understanding is right

<< PN Response 3rd July 2017 : As per approved ITP this pup piece
PMI testing is not envisaged. Also, as per approved ITP vendor has confirmed that
they will do PMI on weld joint on sample batches.>>

Inspector Response: Regarding this the response as per discussion and

conformation from you side:

(I) for the welding area which are not accessible the PMI done on the electrode of
same batch is acceptable. Which has been witness nad found satisfactory.
(Comment closed) ----Agreed

(ii) as per your confirmation & SAES-A206 requirement the PMI on the attached pipe is
required. (Comment is open) ----Petronash will advise whether it will be done at IVM
or at Petronash receiving end, however it is mandatory to do PMI on pup piece.
Accordingly you produce punch list.

6. For the 2 class 150 valves, as per approved drawing, the bolting material is bolt only
but in actual the stud with nuts has been provided. Petronash to resolve and revise the
drawing.

<< PN Response 3rd July 2017 : Noted drawings shall be revised.>>

 Inspector Response: The drawing will be revised and will be approved by the McDermott
respective department to close out the comment from inspector side. (Comment is open) ----
Revised drawing and evidence for MDR submittal is sufficient. Since this is been highlighted
& McDermott Engineering will take care.

7. For the 3 class 150 valves, as per approved drawing, the bolting material is stus only
but in actual the bolt has bene provided. Petronash to resolve and revise the drawing.

<< PN Response 3rd July 2017 : Noted drawings shall be revised.>>

Inspector Response: The drawing will be revised and will be approved by the McDermott
respective department to close out the comment from inspector side. (Comment is open) ---
Revised drawing and evidence for MDR submittal is sufficient. Since this is been highlighted
& McDermott Engineering will take care.

8. As per the valve data sheet valves shall be painted but as per approved NMR the valves
painting is in the Petronash scope. So, confirmation from Mcdermott is required on it. Will
carried out at Petronash

<< PN Response 3rd July 2017 : Noted and closed>>

Inspector Response: Noted for valves will be released for painting by PETRONASH as a
condition . (Comment open)-- ---As advised Petronash, PO clearly indicate the scope i.e.
excluding painting. You can proceed as per Petronash PO with IVM.

9. Confirmation from IVM is required that the 1.5 mm gap is maintained when the pipes is
welded to the socket end on the 1 class 800 & 1 class 1500 valves as required by ASME B
31.3. It was not possible to witness as valves are already welded.-Noted, please verify and
close.

<< PN Response 3rd July 2017 : Noted .>>

Inspector Response; It has been discussed with IVM and they have confirmed during
discussion. So, it will be IVM responsibility,.(Comment closed)

10. Due to time limitation the test report for PMI witness & PMI review were not reviewed
& packing inspection was not done ( packing is witness point as per approved ITP.). So, one
visit will be scheduled to review the report & to witness the packing of valves. -Noted, hope
actioned already for one more visit.

<< PN Response 3rd July 2017 : Noted .>>

Inspector Response: (I) PMI reports has been signed & found satisfactory. (\Comment closed)
---Noted.
(ii) Packing has been witness as per ITP (as per IVM procedure & 04-SAMSS-048) & found satisfactory. -
--Noted.