100

CONOCO INDONESIA INC. LTD.

PROJECTS GROUP

SPECIFICATION

TITLEDOCUMENT NUMBERREVDATEPAGE

SEAMLESS FLOWLINES TO API 5L84501-9230-2L-022213 Dec 0215 of 18

CONOCO INDONESIA INC. LTD.

PROJECTS GROUP

SPECIFICATION

SEAMLESS FLOWLINES

TO

API 5L

DOCUMENT NUMBER: 84501-9230-2L-022

REVISSUEPREPARED BYREVIEWED BYAPPROVED BYISSUE DATE

2For useDean HewittSteve MalkinAlaister McIntosh13 Dec 2002

REVISION CONTROL SHEET

LATEST REVDATE ISSUEDPREPAREDREVIEWEDAPPROVEDCOMMENTS

014 Aug 2002D.HewittC.FoxA.McIntoshIssued For Use

18 Oct 2002D.HewittS.MalkinA.McIntoshAmended sections 7.1, 8.5 & 10.1

213 Dec 2002D.HewittC.FoxA.McIntoshLogo Change

TABLE OF CONTENTS

01.INTRODUCTION

2.PROCESS OF MANUFACTURE03.CHEMICAL REQUIREMENTS04.PRODUCTION MECHANICAL TEST REQUIREMENTS05.HYDROSTATIC TESTING06.DIMENSIONAL REQUIREMENTS AND TOLERANCES07.NONDESTRUCTIVE TESTING08.WORKMANSHIP09.PIPE CONTROL TALLY SHEET010.PIPE MARKING011.PIPE COATING012.TRANSPORTATION AND HANDLING013.MILL TEST CERTIFICATES014.DOCUMENTATION AND CERTIFICATION015.QUALITY ASSURANCE016.PRODUCT INSPECTION0

APPENDIX - A MPS Minimum Requirements0

APPENDIX - B Chemical Analysis0

1. INTRODUCTION

1.1 Scope

This document defines the minimum standards of quality, technical requirements and acceptability governing the design, materials, manufacture, testing, handling, and shipping of Grade X65 and lower seamless line pipe. This specification supplements the latest edition of API Spec 5L, which is the basic specification for line pipe furnished to this specification. Production specification level (PSL) 2 supplementary requirements shall apply.

Contractor shall obtain Company written approval for any deviations from the requirements of this document or specifications, standards and drawings referenced herein or elsewhere in the Contract.

This document and the codes, specifications and referenced documents listed in 1.2 below are not intended to be all-inclusive. The requirements set forth do not relieve Contractor of his responsibility to perform all services in a safe manner, to meet applicable codes and standards, to comply with government regulations or to supply a product capable of performing its intended service.

1.2 Codes, Specifications, And References

The latest editions of all applicable codes, specifications and references shall define the minimum requirements applicable to the subject work and no statement contained in this Specification shall be construed as limiting the work to such minimum requirements.

Wherever conflicts or omissions between codes, specifications and contract occur, the most onerous condition shall apply. Contractor is responsible for reviewing the list below and informing the Company of any omissions. All conflicts shall be formally brought to the attention of the Company.

Applicable Codes

API Spec 5LSpecification for Line Pipe

API RP 5L1Railroad Transportation of Line Pipe

API RP 5LWMarine Transportation of Line Pipe on Barges and Marine Vessels

ASTM A370Mechanical Testing of Steel Products

ASTM E59-78Method for Sampling Steel and Iron for Determination of Chemical Composition

ASTM E92-82Vickers Hardness Testing of Metallic Materials

ASTM E350-88Method for Chemical Analysis of Carbon Steel, Etc.

ASTM E112Methods for Determining Average Grain Size

ASTM E709Magnetic Particle Examination

ASNT-TC-1APersonnel Qualification and Certification in Non-destructive Testing Level II

EN 10204Certificates on Material Testing

Company Specifications

84501-9200-9L-027Welding Procedure & Welder Performance Qualification

84501-9230-2L-035Welding Specification for Flowlines to API 1104 : 1999

84501-9230-2L-009Induction Bends

2. PROCESS OF MANUFACTURE

The manufacture shall be carried out in accordance with a pre-approved Manufacturing Procedure Specification (MPS) provided by Manufacturer. The MPS shall include as a minimum a detailed step by step of the manufacture process including but not limited to steel making, targeted chemical analysis, pipe manufacture, heat treatment, end finishing, inspection, storage and transport.

The MPS shall include reference to specifications and sources of all materials used in the manufacture of the line pipe.

Manufacturer shall state in the MPS all parameters related to the quality of the final product as defined in the specification which can be monitored during manufacturing. This is to enable definition of the inspection of these items. Both nominal values and ranges of these parameters shall be stated.

The layout of the MPS shall enable Company to define easily and unambiguously the responsibilities of Company's designated inspector during the manufacture. Minimum MPS requirements are included in Appendix - A.

The MPS shall be approved by Company prior to commencement of the manufacture of the line pipe.

2.1 Steelmaking

Pipe furnished to this specification shall be seamless as defined in API 5L.

All steel shall be produced by the basic oxygen process, fully killed, and made to a fine grain practice. Continuous casting shall be used unless otherwise approved by Company. Provisions shall be made for low sulfur and low phosphorus refining and for sulfide shape control.

Rare earth metal additions are prohibited.

The use of mill-jointers shall not be permitted.

2.2 Pipe Fabrication

Cold expansion is not permitted, including sizing.

The line pipe shall be suitable for manual welding using conventional pipeline welding techniques and for automatic welding employing the systems currently in use by the major pipelay contractors. Manufacturer shall submit evidence which demonstrates the material weldability to Companys satisfaction.

3. CHEMICAL REQUIREMENTS

3.1 Chemical Composition

In addition to the latest revision of API Spec 5L requirements, the line pipe shall meet the chemical composition requirements stated in Appendix - B of this Specification. The chemical composition shall be controlled within the limits specified. Manufacturer shall submit the proposed range and target values for each element for Companys approval. Proposed deviations from the chemical composition stated in Appendix - B required to accommodate installation method, such as Reel Lay, shall be approved by Company. The agreed target ranges shall be given in the approved manufacturing procedure for production.

If any ladle or product analysis for any heat fails to meet the Specification requirements, no pipe shall be accepted from that heat. The quenching medium and heat treatment times and temperatures shall be specified in the MPS.

3.2 Heat Treatment

Pipe furnished to this specification shall be heat treated by either the quenched and tempered process or the normalized process. The quenching medium and heat treatment times and temperatures shall be specified in the MPS.

4. PRODUCTION MECHANICAL TEST REQUIREMENTS

4.1 General

Mechanical testing shall be in accordance with API Spec. 5L and as modified below and shall be carried out on test rings cut from the ends of a randomly selected pipe. The number and frequency of tests shall be as specified in API 5L unless otherwise stated. All test results shall be made available to Company for review.

Alternate ends of the pipe shall be tested after the final production heat treatment. Significant variations shall be investigated and resolved.

4.2 Tensile Tests

Tensile tests shall be made on pipe representing each heat of steel. Yield strength, tensile strength, elongation, and yield / tensile ratio shall be determined. Written records of all mechanical property tests shall be furnished to Company. The measured yield strength shall not exceed the API Spec 5L specified minimum strength by more than 17,400 psi.

Substitution of higher strength grade of line pipe in place of the grades ordered shall not be acceptable.

The ratio of yield stress to ultimate tensile stress in the finished pipe shall not exceed 0.90.

The minimum elongation shall be as required by API 5L, Appendix D plus 1%.

For each pipe to be accepted, all tests must be successful.

4.3 Charpy Impact Tests

Three full size transverse Charpy V-notch impact specimens, representing one test, shall be tested at a temperature of 0OF (-18OC) or at least 10OC below the minimum design temperature, whichever is less. The minimum design temperature shall consider the blowdown, gas filling or upset condition.

All tests are to be made in the final heat treatment condition. Testing shall be performed in accordance with API Spec 5L SR5 and ASTM A370.

The preferred hierarchy of Charpy test specimen orientation and size is shown in the following table. For other specimen sizes and orientations, the values required shall be multiplied by factors given in table below:

Hierarchy of PreferenceSize

(mm)Orientation

T = Transverse

L = LongitudinalFactor

110 x 10T1.0

210 x 7.5T0.75

310 x 10L1.5

410 x 7.5L1.125

510 x 5T0.5

610 x 5L0.75

For both Transverse and Longitudinal Specimens, the notched axis shall be perpendicular to the pipe surface.

Full size specimen (10 mm x 10 mm) shall be used where possible. For full size transverse specimens, the minimum average absorbed energy per set of three specimens shall be 36 ft-lb (50 J). The minimum absorbed energy of an individual specimen shall be 30 ft-lb (40 J).

Flattening of the pipe prior to specimen preparation is not permitted. Retesting, for Charpy V-notch tests only, is permitted if specimens show obvious defects or defective preparation and is in accordance with this Specification.

4.4 Retesting

If one of the tests representing a lot fails to conform to the requirements in this specification, Manufacturer shall repeat all tests on specimens cut from 10 % of the additional lengths of pipe from the same lot. If such specimens conform to the requirements, all remaining pipe of the lot will be accepted. If any one of the specimens fail, the entire lot shall be rejected. However, Manufacturer may elect to test each individual pipe remaining in the lot. Pipes, which fail any test, shall be rejected.

5. HYDROSTATIC TESTING

Hydrostatic testing shall be applied to each pipe to API 5L after final heat treatment by use of inhibited water at a temperature of not less than 40OF (4.4 OC) nor more than 100 OF (37.8OC). The use of inhibited water shall be specified in the MPS.

The hydrostatic test pressure shall correspond to the pressure required to generate the hoop stress in the pipe wall equal to 90% of SMYS. The minimum hold time for hydrostatic testing shall not be less than 15 seconds at the specified test pressure.

Hydrostatic testing apparatus, which shall include a pressure recorder, master gauge and working gauge, shall be used for all testing and shall provide a record of the test pressure and duration of test. The hydrotest apparatus shall be calibrated as required by Manufacturers quality plan, using a dead weight tester.

Written records of all hydrostatic tests shall be furnished to Company.

Any leak in the pipe body is a cause for rejection.

6. DIMENSIONAL REQUIREMENTS AND TOLERANCES

6.1 Diameter

The outside diameter (OD) shall be nominal, as specified, within 0.75 %. The inside diameter (ID) shall be nominal, as specified, within 0.5 %. These measurements shall be made for a distance of 4 inches (101.6 mm) on each end and shall be checked by a diameter tape, limit gage or caliper for the OD and diameter tape for the ID. The out of roundness for a distance of 4 inches (101.6 mm) on each OD end shall not exceed 0.5 % when checked with a limit gage.

6.2 Wall Thickness

The specified nominal wall thickness shall be 10 % measured within 6 inches (150 mm) from each end of the pipe and +12.5 / -10 % for the remaining pipe body. Ultrasonic testing shall be employed to show that the minimum wall thickness is maintained.

6.3 Length

The pipe joint length shall be between 11.9 and 12.5 meters, with a minimum average of 12.2 meters. Deviations to accommodate proposed installation method must receive approval from Company.

6.4 Pipe End Squareness

The method of checking pipe end squareness shall be specified in the MPS.

6.5 Pipe End Bevel

Grinding of the bevel is prohibited.

6.6 Gouges and Dents

Gouge and dent repair procedures shall be specified in the MPS.

6.7 Straightness

Measurement frequency of straightness shall be five pipes per shift provided that these are visually determined to be the worst pipe. If any of these pipes are rejectable, then inspection frequency shall be increased to ten pipes per shift with these ten being the worst deviations, obtained visually, after physically rolling the pipe.

6.8 Weight

The weight of each pipe shall be in the range of +12.5/-3.5 % of nominal weight per foot. Weight shall be determined by automatic weighing machine.

7. NON-DESTRUCTIVE TESTING

7.1 Examination Techniques

Pipe end bevels shall be subjected to magnetic particle inspection in accordance with ASTM E709.

Seamless line pipe shall be inspected by the ultrasonic testing (UT) method in accordance with API Spec. 5L,SR4. The reference standard shall contain two machined N5 type notches, one on the inside surface and one on the outside surface of the pipe, parallel to the axis of the pipe and separated by a distance large enough to produce two separate signals. An imperfection that produces a signal greater than the reference standard shall be considered a defect and attended to as stated in Section 8.3 of this document.

Dynamic calibration of the ultrasonic inspection tools and reference standards shall be employed. Inspection shall be performed at the line pipe production rate.

All bevelled ends shall be ultrasonically inspected over a width of 2 inches (50mm) around the circumference of the pipe after bevelling. A 1/4-inch (6.35mm) diameter flat bottom hole will be used as a rejection standard. Laminations or other defects with a greater reflected signal than the rejection standard are not acceptable.

All pipe joints shall be full length tested for laminar and longitudinal imperfections in the pipe body using Ultrasonic methods.

The non-destructive testing equipment used to inspect the pipe shall be checked with applicable reference standards in a manner similar to that used in regular production, at least once per 8 hour operating shift. If on checking against the reference standard, the equipment is found to be faulty or to require recalibration, all pipe tested since the previous calibration shall be retested.

Non-destructive inspection procedures and equipment shall be subject to approval by Company prior to manufacture of the pipe.

All non-destructive examinations shall be carried out by personnel qualified to ASNT-SNT-TC-lA (latest edition) Level II requirements or equivalent.

7.2 Residual Magnetism

Residual magnetism may cause welding problems. The maximum permissible magnetic flux density shall be less than 20 gauss, as measured completely around the end of the pipe using a gauss meter. Every pipe shall be checked as it is loaded for shipment from the pipe mill. All pipe exhibiting a magnetic flux density greater than or equal to 20 gauss shall be degaussed prior to loading for shipment.

7.3 Inspection

Company or Company representative may employ inspection at any stage of production of the pipe and shall have accesses to all parts of the works whenever work on this job is being carried out.

8. WORKMANSHIP

8.1 Compliance

Manufacturer is responsible for complying with all provisions of this specification. Company may make any investigation necessary to verify compliance by Manufacturer and may reject any material that fails to meet this specification.

8.2 Verification and Calibration of Measuring Devices

Automatic measuring instruments shall be calibrated or verified at least once every operating shift. Verifying the accuracy of measuring devices shall consist of inspection for wear and conformance to specified dimensions.

Verifying the accuracy of rulers and other non-adjustable measuring devices shall consist of a visual check for legibility of markings and general wear of fixed reference points at the commencement of pipeline production.

8.3 Disposition of Defects

Imperfections, described in API Spec 5L, Section 7.8, that exceed the specified criteria shall be considered defects. Pipe containing defects must be given one of the following dispositions:

The defect shall be removed by grinding provided the remaining pipe wall thickness is within the limit specified in section 6.2 of this specification. The ground areas shall be carefully dressed to ensure a smooth transition with the surrounding surface of the pipe and that no sharp notch results.

The section of pipe containing the defect shall be cut off provided the pipe length requirements are met.

The entire pipe shall be rejected.

Manufacturer shall submit all repair procedures to Company for approval prior to the manufacture of pipe. Manufacturer shall take all reasonable precautions to minimize reoccurring damage to the pipe.

8.4 Rejection

Material which shows defects on mill inspection or subsequent to acceptance at Manufacturer's works, or which proves defective when properly applied in service, may be rejected, and Manufacturer so notified.

8.5 Rejectable Flaws

Rejectable flaws shall include cracks,sweats, leaks and laminations. Rejects due to non-destructive tests and end laminations shall be in accordance with the relevant sections above.

8.6 Rejection Records

Manufacturer shall prepare a rejection rate record and maintain a current record of all rejected pipes, complete with reasons or causes for rejection. Production shall be halted if rejection rates become unacceptable (greater than 3 % after 10 % of the pipe in the lot has been produced). Production shall not be continued until after the causes of this rejection rate are determined, steps are taken to prevent these from occurring during the rest of the production order, Company is notified, and finally, written approval by Company is given.

9. PIPE CONTROL TALLY SHEET

Manufacturer shall maintain a Pipe Control Tally Sheet that shall be updated on a daily basis. This sheet shall show the status of all pipes in the order at all times.

10. PIPE MARKING

10.1 Requirements

Each length of pipe shall be paint-stenciled with all of the required API markings. All marking shall be paint stenciled onto the outside surface of one end of the pipe. Markings shall be in block capital letters with a minimum height of 0.75 inches (19 mm).

In addition, for all pipes with OD 16 and greater, markings shall be included on the inside of the pipe at one end and shall include as a minimum:

Name of Manufacturer

Heat/lot number

Sequential pipe identifying number

10.2 Die Stamping

For all pipes, bevels shall have hard stamp numbers to ensure traceability using a round soft-nosed die.

11. PIPE COATING

All pipes shall be furnished bare and free of all mill coating.

12. TRANSPORTATION AND HANDLING

12.1 Transportation Preparation

The billets, slabs and pipe from each heat shall remain, as much as practical, segregated during the entire manufacturing, testing, inspection and shipping processes.

Care shall be taken to ensure that mechanical damage is not caused during handling and transportation of pipe. Handling procedures and details of pipe transportation shall be submitted to Company for approval. All pipes shall be handled, loaded and shipped in accordance with API RP 5L1 and 5LW as applicable. The dimensional tolerances and surface conditions of each pipe shall apply to the pipe condition as received by Company at the shipping destination. Pipe shall be delivered without salt contamination.

12.2 Bevel Protectors

Bevel protectors are required. The use of the mill's standard steel bevel protector shall be detailed in the MPS.

13. MILL TEST CERTIFICATES

13.1 General

Mill test certificates shall be supplied in the English language. One original and two copies are required for each lot of not more than 100 pipe lengths. All pipes shall be shown on the mill test certificates. All certificates shall be available prior to pipe arrival.

13.2 Required Data

The following data are required as a minimum on all mill certificates:

Purchase order number

Heat/lot identifying numbers

Pipe identifying numbers

Ladle analysis

Product analysis

Carbon equivalent

Heat Treatment

All required mechanical test results

Specification limits

NDE results

Line pipe outside diameter and wall thickness.

13.3 Format

The layout of the mill certificate shall include the following as a minimum:

Signature of responsible official of Manufacturer signifying compliance with this specifications requirements

Mill Location

Heat Number

Purchase order number

Pipe number (s)

Pipe grade

Heat treatment records

Micrographic examination record where specified

Dimensional report.

Layout of certificate may be per Manufacturers standard format, however the data required in paragraph 13.2 shall be reported including heat treatment and company P. O. number.

14. DOCUMENTATION AND CERTIFICATION

Manufacturer shall supply documentation relating to the supply of line pipe to Company for approval.

Full certification of the results of inspection and testing shall be provided by Manufacturer and shall be validated by Company representative in accordance with EN 10204 3.1.C, except where Company agrees, prior to the start of production, to accept EN 10204 3.1.B certificates for specific results.

Certification shall cover all results required by this specification and shall be marked with sufficient information to enable full traceability to the items it represents and the relevant specifications and procedures.

All reports and inspection certificates shall be signed by Manufacturer and Company representative to signify compliance with the requirements of this specification.

15. QUALITY ASSURANCE

15.1 General

The quality system implemented by Manufacturer shall establish and maintain a fully documented Quality Assurance/Quality Control system.

Any verification of quality performed by Company or Company representative shall not relieve Manufacturer of the responsibility to produce acceptable line pipe nor shall it preclude any subsequent rejection of line pipe.

Manufacturer shall establish and maintain control of all special processes, which are essential to production, inspection or safety. Equipment, processing environment and Manufacturer personnel shall be subject to appropriate qualifications or certifications.

Manufacturer shall maintain quality records as documenting evidence of conformance to quality requirements. These records shall be made available to Company representative for review.

15.2 Quality Plan

Prior to the start of any manufacturing process Manufacturer shall prepare a Quality Plan which sets forth witness, hold, review, repair, and monitor points for review and approval by Company. Manufacturers subsequent Quality Control of the Work shall strictly adhere to the agreed Quality Plan. The implementation of the Quality plan may be subject to monitoring by Company and in addition, may be audited following an agreed period of notice. Manufacturer shall ensure that the Quality Plan requirements specified are applied to all materials, equipment and services provided.

Manufacturer shall inspect the line pipe to ensure compliance with the purchase order requirements. A check shall be made of all inspection records to verify that the line pipes were inspected at all points shown in the Quality Plan and that these records are complete and available to Company representative.

Material traceability shall be maintained throughout the manufacturing process. Manufacturer's Quality Plan shall stipulate the traceability procedures, which shall be incorporated into the MPS.

16. PRODUCT INSPECTION

Company representative shall inspect the pipe and witness the required tests. Reasonable notice, at least two weeks for the first production test and one day thereafter, shall be given of the times at which the production tests are to be made.

Company inspectors and representatives shall have free entry to all parts of Manufacturer's facilities that concern the manufacture and testing of the ordered pipe during all times while work on this order is being performed.

Manufacturer shall provide all reasonable facilities to Company inspectors, without charge, to satisfy him that the pipe is being manufactured in accordance with this specification. Such facilities shall include, but not be limited to, office space, office equipment and telecommunication equipment. All inspection shall be made at the place of manufacture, prior to shipment, unless otherwise specified in the purchase order. Inspection will be so conducted as not to interfere unnecessarily with the operation of the works.

APPENDIX - AMPS Minimum Requirements

The MPS shall include but not be limited to the following items:

Name of steel mill

Steel making method

De-oxidation method

Desulphurization method

Chemical composition range and target composition

Special additions

Ladle treatments

Vacuum de-gassing

Ingot, slab or billet handling practices

Casting practices

Frequency of centerline segregation monitoring

Pipe forming practice (incl. instrumentation to ensure proper control of processing temperatures, heat treatment procedures and other measures utilized to ensure consistency of both the mechanical properties and dimensional tolerances of the line pipe).

Pipe forming temperature range

Centerline segregation evaluation procedure

Heat treatment (incl. temperatures, hold times, heating and cooling rates, cooling medium and furnace details)

Hydrostatic Test Procedure

Pipe Tracking System

Quality Plan

Non-destructive Testing Procedures (incl. visual inspection, equipment details, calibration methods and frequency, scanning procedure and matrix, probe details, recording/reporting methods, alarm system)

Handling, Transport and Storage Procedures

Squareness Verification Procedures

Dent and Gouge Repair Procedures

APPENDIX - BChemical Analysis

ELEMENTProduct Analysis, max weight %

C0.16

Mn1.60

Si0.50

P0.02

S0.015

Cu0.35

Ni0.40

Mo0.25

Cr0.20

Al (total)0.06

Nb0.05

V0.10

Ti0.05

N0.01

B0.0005

Ca, max0.004

CE, max0.40

Pcm, max0.25

1. For each reduction of 0.01% of the maximum allowed C content, an increase of the Mn content of 0.05% above the maximum specified up to 1.8% is allowed for steels with SMYS ( 485 MPa

2. Mo: maximum 0.35 % if V is not intentionally added.

3. 0.5 - 1.0% Cr may be used subject to agreement.

4. (Nb + V)% max : 0.12 %

5. Al : N ( 2: 1 (not applicable to Ti killed steels)

6. CE = C + Mn/6 + (Cr + Mo+ V )/5 + (Cu + Ni )/15

7. Pcm = C + Si/30 + (Mn + Cr + Cu)/20+ Ni/60 + Mo/15 + V/10 + 5B

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