Komalia s.a.

Guevara 15 - C1427BRA
Ciudad de Buenos Aires
Tel/Fax: 54.11.4856.1109
info@komalia.com
www.komalia.com

ENGINEERING
TABLE OF CONTENTS

1. Purpose

2. Technical details of the proposal

2.1. Design and detailed engineering

2.2. Purchasing management and materials quality control

2.3. In workshop supervision

2.4. On site assembly supervision

2.5. Pipeline engineering

3. Organization

3.1. Company features

1. PURPOSE

To submit Komalia S.A’s profile to the Gas and Oil Industry as a designer and
supplier of prefabricated piping equipment built in workshop.

In this frame of reference, Komalia S.A. presents a work proposal based on an

analysis carried out by a team of professionals with wide experience in this kind
of works, from both the design viewpoint and the production of detailed
engineering as well as the construction management and the inspection of the
different construction stages.

2. TECHNICAL DETAILS OF THE PROPOSAL

For a better description of the scope of proposed service, it will be practical to

break it down into the following topics:

9 Design and Detailed Engineering

9 Purchasing Management and Material Quality Control

9 Welders' qualifications and welding procedures

9 Built in Workshop

9 On site assembly

The above topics are applicable to the design and construction of equipment and
prefabricated components widely used in the industry, such as:

9 Pressure regulation plants

9 Measurement and odorization units

9 Phases separator

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 9 Wet/Dry filters

9 Launching trap and scrappers reception

9 Shock tanks

9 Natural gas heaters and heat exchangers.

9 Prefabricated components: Line lockout valves, flowlines collectors,

catchment (batteries), etc

There follows a detailed analysis of each topic scope

2.1. DESIGN AND DETAILED ENGINEERING

The combination of the skills and experience of the staff and technical advisors
that made up Komalia S.A. makes it possible to guarantee the proper design and
execution of detailed engineering of the different equipment and prefabricated
components made at the workshop, which will be then installed in construction
works of hydrocarbons transport and distribution pipelines, production, storage,
and/or retail sale plants.

We have a team of engineers with an average of 10 years of experience in the

field and wide experience and background in design and projects of this type.

Our service comprises the design and detailed engineering of the equipment
starting from the specific needs of the projects managed by our clients. Our
purpose is to optimize the technical-economic solution under current regulations
and according to the rules of the art of building.

On the whole it includes:

9 Receipt and sorting of base documents provided by the client:

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 Æ Requests and equipment design data: operation pressures and
temperatures, maximum and minimum flow, characteristics of
fluids to be processed, geometric details of the implementation
site, connections and linkage to existing equipment or pipings

Æ Client's internal regulations: standard plans, internal procedures,

material specifications, etc. Computerized management of
documents processing.

9 Design: Starting from the project requests, we design the equipment

under current regulations and codes. Particularly for these type of
works: NAG 100, ASME B.31.8 and B.31.4, API 1104, API 5L, API 6D,
ASME Code, Sections V, VIII y IX; ENARGAS (National Gas Regulatory
Authority) rules and regulations, Former National Gas Company
regulations, and others.

9 Detailed engineering: We prepare all necessary engineering documents

for the project. Documents are approved by professionals registered in
the relevant specialty, and with wide and proven experience in the gas
and/or oil industry.

In general, the documents that will normally be generated in this type of

equipment include:

9 Calculation Notes:

Æ Checking of piping mechanic parameters (MAPO, TFME,

thicknesses, piping standards, design factors, type of layout, etc.

Æ Gas bottle calculations (ASME VIII)

Æ Filtering capacity in separators

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 Æ Heat exchangers thermal capacity (natural gas heaters, propane
vaporizers, etc.)

Æ Bypass reinforcement: Checking of mechanical parameters

according to NAG 100 and ASME VIII

Æ Pressure gradients in line break systems (automatic drive of

lockout valves because of line break)

Æ Stress analysis on aerial piping runs. Design of bearings, slippers

and appropriate anchors for launching traps and reception of
scrappers, aerial junctions, etc.

9 Drawings: We make drawings for both built in workshop and on site

assembly

Æ Mechanical drawings: Layouts, mechanical details, welding

drawings, assembly drawings, details of combustible gas systems,
typical and particular of bearings and anchors, etc.

Æ Civil installations: Underground chambers, Olympic fences,

bearings, pad foundations, etc.

9 Procedures

Æ Welding

Æ Non-destructive tests (radiography, penetrating liquids,

ultrasound)

Æ Hydraulic test: Test procedure, quality of fluid to be used, filling

and final disposal of test fluid. Drying and hydrate inhibition.

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 Æ Preparation of surfaces and paint schemes

Æ Stacking and transport of equipment

Æ Works on in-service pipelines: Hot taps

9 Filing and Distribution: We create and keep a secure and well organized
file with approved documents as well as their distribution in due time and
form to works front, control body, and other sectors or Organizations
involved.

9 Regular reporting on documents status: Management reports on the

status of technical documents are issued in order to keep the Client or
Organization informed.

2.2. PURCHASING MANAGEMENT AND MATERIALS QUALITY

CONTROL

The purpose of this stage is to ensure an appropriate quality of main supplies

(piping, valves, fittings, etc.)

Management strategy is adapted on an ad-hoc basis; but basically, it will

include:

9 Checking of raw material quality documents.

9 Follow up and auditing of manufacturing processes.

9 Checking of manufacturing tests under current regulations: API 5L

(piping), API 6D (valves), ASME/ANSI regulations for fittings, etc.

9 Checking of production documents: traceability.

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 9 Checking of stacking conditions.

9 Production of certificates of material release and certification of

shipping to works site (packing list).

9 Checking of packing and transported load.

9 Checking of quality certificates.

9 Collection of samples for tests at independent laboratories.

If the Client so requests, it will be possible to implement a previous process of

auditing and qualification of suppliers so as to cooperate with Purchase or
Supply areas to create a register with qualified suppliers to be invited to bid for
materials provision.

2.3. IN WORKSHOP SUPERVISION

Supervision of in workshop construction, which is constantly controlled by

professionals who guarantee the quality of production in all stages and
compliance with design guidelines and specific regulations.

2.4. ON SITE ASSEMBLY SUPERVISION

Field assembly supervision of manufactured equipment and prefabricated

components at the client’s request.

These projects demand the participation of multiple trades working

simultaneously (logistics, welding, hoisting, digging, safety, drilling equipment
and sealing of in-service pipelines, etc.). Therefore, it is vital to have an
appropriate and experienced managerial, administrative and control structure in
order to guarantee the achievement of proposed quality objectives.

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2.5. PIPELINE ENGINEERING

We carry out complete detailed engineering for construction works and/or

pipelines maintenance. Our services include:

9 On-site surveys to determine the optimum line route from both

technical/economic and environmental viewpoints.

9 Hydraulic calculation of pipelines according to transport conditions, the

fluid to be transported and the geographical distribution of fluid load
points and consumption.

9 Selection of pipelines optimizing wall thickness/steel grade relation

based on economic and operating safety aspects.

9 Topographic surveys of the route and right of way.

9 Development of project contour maps.

9 Development of special crosses (roads, railway tracks, watercourses,

etc.)

9 Development of layout, mechanical, and electrical plans of surface

installations (measuring stations, scrapper traps, lockout and bypass
valves, etc.)

9 Development of location assignment maps (restrictions to parcel

ownership).

9 Development of specific work procedures: path clearing, welding, tests,

pipe bending, counterbalancing, drying, etc.

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To this end, we have professionals with an extensive and proven track record in
this industry, which allows us to position ourselves as an important support
structure for the local gas and oil transport and distribution companies as well
as for the building companies specializing in this type of installations.

3. ORGANIZATION

Komalia’s organization is based on a flexible structure that adapts to the needs

of each project.

Depending on the size and the advance speed of works, a specific structure is
designed to guarantee proper and responsive management.

3.1. COMPANY FEATURES

Komalia S.A., founded in 2002, is an Argentine company whose main objective is

to carry out engineering works, supervision, and inspection, as well as provide
technical advice to the Gas and Oil Industry.

KOMALIA's activities include taking all necessary actions intended to improve

installations safety, increase the quality of services and protect the environment.

Services provided by Komalia are directed to achieve Client’s satisfaction,

always acting according to regulations and professional ethics.

The staffs that carry out works have the technical skills and necessary knowledge
to develop their specific activity.

Komalia have a team of full-time professionals and advisors who devote their
time to specific company projects.

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