Consultancy Arrangement Between Beijing Petrochemical Engineering Co Ltd.docx

Consultancy Agreement Between Beijing Petrochemical Engineering Co (BPEC) Ltd and Aqua Refinery Ltd (ARL) Objective: Technical help to enable Aqua Refinery Ltd to commission its CRU and CFP plants smoothly on time.

In order for ARL to commence operations smoothly it is agreed between ARL and BPEC that the following services will be provided by BPEC to ARL: Piping inspection: To be carried out after completion of piping work including hydro test, reinstatement (box up) and equipment installation. One technical person from BPEC will have to be present in the premises. Scope of work: Unit inspection A) PID check It has to be ensured that the latest PID provided by BPEC as per their Detailed Engineering has been properly implemented.. BPEC to carry out check to determine whether the “As Built” analysis provided by ARL is in conformity with the requirements stipulated by the Detailed Engineering Designer. This check is primarily for construction conformity, piping, instruments, safety devices and fittings. In addition BPEC will certify that the location of instruments, valves, special shut-off valves is as per isometric and also wherever designer issued a special recommendation, that this special recommendation has been implemented. Remedial work will be carried out by ARL as per the recommendations of the BPEC technical person, if necessary. B) Operability check This consists of an assessment whether ARL is able to carry out all the operations necessary for commissioning, start-up and shutdown. It focuses mainly on access to instruments and valves (including vents, drains), to manholes, to spectacle blinds, and to parts of equipment that need to be removed. The presence of the required start-up and pressurization lines has to be checked as well as the impact of safety devices on start-up operations.

C) Date of inspection- Approximately 3rd week of July’19 D) Duration of inspection- 2 weeks E) Qualification and experience. Must be engineer with field experience and who can certify that work standard is as prescribed. F) Conclusion- A report has to be submitted by the BPEC technical team certifying successful completion and execution of operations and to be handed over to ARL management at the ARL site.

Equipment inspection: To be carried out after completion of piping work including hydro test, reinstatement (box up) and equipment installation. One technical person from BPEC will have to be present in the premises. Scope of Work A) Scope of the inspection The following equipment are to be inspected: -

Reactors

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Columns

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Drums/Vessels

Inspection will be carried out to determine whether equipment is in compliance with PID and with equipment list provided by BPEC designer. If needed, a list of remedial works should be carried out. The list needs to be adapted according to the specific requirements of the unit. -

Vessel temperature and pressure rating

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Vessel metallurgy

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Vessel elevation

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Vessel lining, internals

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Trays: number, type, spacing, levelness, liquid seal, weir height, valve number and type, metallurgy, weep holes, supports

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Distributors: location, levelness, size and number of holes and chimneys, correct installation with gaskets

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Quench devices: location, size and number of holes for quench pipe, size of quench box

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Ability to reinstall manways covers and associate elements after catalyst loading

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Nozzles

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Vortex breakers

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Demisters: size, materials, support

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Pressure instruments: location, range

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Level instruments: location, level, range

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Fireproofing, insulation

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Presence of names plates

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Cleanness

C) Inspection preparatory works to be carried out by ARL - Reactor

Isolated by blinds, from any potentially dangerous source (flare, fuel gas, hydrogen, N2, chemicals, HC...). Manhole open and atmosphere breathable to allow 1st inspection for reactor wall state and a 2nd inspection after assembly of the internals (without internal manholes).

- Columns, Drums and Vessels Isolated by blinds from any potentially dangerous source (flare, fuel gas, hydrogen, N2, chemicals, HC...). Manways and vents open, atmosphere breathable. Internals assembled. D) Time of inspection- Approximately 3rd week of July’19 E) Duration of inspection- 1 week F) Qualification and experience. Must be engineer with field experience and who can certify that work standard is as prescribed. G) Conclusion- A report has to be submitted by the BPEC technical team certifying successful completion and execution of operations and to be handed over to ARL management at the ARL site.

Instrument inspection To be carried out after completion of piping work including hydro test, reinstatement (box up) equipment and instrument installation. One technical person from BPEC will have to be present in the premises.

Scope of work- Instrument inspection A) Prior to unit start-up, all instruments have to be checked with regard to:

B)

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Proper tagging,

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Proper location in the process,

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Correctness of assembly,

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Operating range consistent with the operating conditions,

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Calibration,

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Flow orifice size, coefficients, orientation versus flow,

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Level instruments will be calibrated using the design liquid density,

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Instrument wiring integrity, polarity, grounding. Alarm checking

Make sure that the released mechanism on the unit actuates the corresponding light or audible alarm in the control room.

C)

Valves

The control valves are removed during cleaning operations. They will be checked for cleanness of the seats and free movement of the plug or ball. Check the valves motion and their response to the controller signal. When all the single instruments have been individually checked, when all their addresses have been verified in the DCS, then the loop checking can take place for each loop or group of control loops. Each automatic action, either linked to the process or to equipment, shall also be individually tested. D) Safety devices check The process includes a number of specific safety devices referred to Interlocks Safety (IS) which are implemented in the Emergency Shutdown System (ESD). The Interlocks Safety (IS) is composed of independent systems which in the occurrence of pre-defined potentially harmful events, initialize various actions such as: - Valve(s) are set to their failure position (FC, FO) - Shutdown of equipment (pumps, compressors, furnace, electrical heater, etc.) to alleviate the risk. The details of the Interlocks Safety are given in the document "Cause and Effect" in the. They must be thoroughly read and understood by operators. This Interlocks Safety, in accordance with this document, will be updated and agreed upon by the ARL. The tests of these devices must be witnessed by operation team representative until the operation is fully satisfactory. The principles of these checks are as follows: - A simulated default signal from the primary sensor will be fed into the system and the resulting signal output to valves or equipment will be checked. - Whenever possible, the end result of the signal output such as actual valve failure or machine shutdown will be observed. - Ultimately, a real test which requires running machines must be performed during the forthcoming operation procedures. Throughout this exercise, the actual physical position of the valves or status of machines will be checked against the indications shown in the control room. The check of the motorized valves is part of the same task. It includes: - A site test of the opening/closing of the valve upon the input signal. - A check of the reported information in the control room and a check of the control room command. E) Time of inspection- Approximately 3rd week of July’19 F) Duration of inspection- 1 week

G) Qualification and experience. Must be engineer with field experience and who can certify that work standard is as prescribed. H) Conclusion- A report has to be submitted by the BPEC technical team certifying successful completion and execution of operations and to be handed over to ARL management at the ARL site.

I)

Qualification and experience of the team member: The team members must be engineers with field experience and who can certify that work standard is as prescribed. J) Conclusion- A report has to be submitted by the BPDI technical team certifying successful completion and execution of operation at the ARL site.

Start up and process: After receiving the concluding reports of the BPEC team involved with Piping, Equipment and Instrument as detailed above. Scope of work -

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Checking the piping inspection report done by BPEC team Checking the equipment inspection report prepared by BPEC team. Checking the instrument inspection report done by BPEC team Checking the utilities (IA, PA, N2, FW, PW, CWS & CWR, Steam, Power generator, Firefighting water & Foam, H2 generation, Flare, all electric items) commissioning report done by ARL team Checking the unit commissioning report (Compressors, Pumps, Heater dry out, loading arm, Metering skid, LPG vaporizer, SWS and NASH) done by ARL team Checking the primary and secondary leak test report done by ARL team Supervise and advise ARL commissioning team on catalyst loading, Catalyst dry out, CFP oil in, CRU oil in, Fuel gas system commissioning, NHT catalyst presulphyding and oil in.

A)Time of inspection- Approximately 1st August’19 B) Duration of inspection- 3 week C) Team members- i) Mr Liu Ge ii) Mr. Cao Jian and iii) One from BPEC owned refinery. Engineer. Experienced in process and operation

Confirmation of the yield and quality of the CRU and CFP product.

Consultancy fee will be as per the agreement signed between BPEC and ARL