GPIC Turnaround 2012 English by GPIC

I s s u e d b y G u l f P e t ro c h e m i c a l I n d u s t r i e s C o m p a n y

President’s Foreword ... Welcome to this special edition of Khaleejieh. The Turnaround completed in November of 2012 was unprecedented in the history of GPIC. In all aspects; size of budget, manpower, the number of projects executed, this periodic maintenance programme dwarfed all previous Turnarounds. In order to achieve such an immensely complex and detailed undertaking, senior management were required to execute planning from the largest of scale down to the most minute detail, involving a scope of work never previously undertaken. The underlying theme was “No Compromise On Safety” and with this in mind, I am delighted to report that there was not one single incident of a lost time accident during the entire process. Credit for this must go to those who prepared for and those who executed such an extraordinary project, one that involved not only the company family, but also several thousand local and international “house guests” whose manpower and expertise was invaluable to us. The result of this gargantuan effort is that the entire plant has been enhanced, both in terms of its reliability and its efficiency, the benefits of which will become evident over the coming years. As President, it is my express wish, on behalf of the whole company, to offer our sincere thanks and appreciation to H.E. Shaikh Isa bin Ali Al Khalifa, Chairman of the Company, Deputy Chairman, Managing Director and to the members of the Board of Directors for their unwavering support for this special project, indeed for all activities of the Company and especially for their concern for the safety and health of the workers.

Abdulrahman Jawahery

You read in this issue Planning our Turnaround 2012 Turnaround Roadmap & Schedule

The Role of Fire & Safety in the Turnaround

Turnaround Activities of the Ammonia Plant

Turnaround Activities of the Methanol Plant

Turnaround Activities of the Urea Plant

Turnaround Activities of the Utilities Plant

Technical Services Support

GPIC Human Resources Department & Medical Centre Support

GPIC Managing Director visits the complex during the Turnaround

GPIC Management Involvement during the Turnaround

GPIC Women Participate in Turnaround Activities

Environmental Management during Turnaround 2012

Commissioning of the Seawater Inlet Unit

P.O.Box 26730 Manama, Kingdom of Bahrain, Tel: (+973)17731777, Fax: (+973)17731047 Web page: http://www.gpic.com Email Address: gpic@gpic.com This newsletter is issued by the Khaleejieh team at GPIC

Planning our Turnaround

It has long been agreed that for a project to succeed, proper consideration must be given to the planning phase. Therefore, ensuring that a project is operating within scope, budget and is on schedule is considered the holy trinity of project success. In GPIC, no project is given greater importance than the biennial turnaround. A turnaround is defined as a scheduled event wherein the entire process unit of a plant is taken off stream for an extended period of time for revamp and/or replacement.This means that during the month of November, 2012, GPIC will shut down its entire production system for 26 continuous days, a rather small window if you consider that it took almost 31 months to plan this outage. Planning for the turnaround rests almost exclusively on the shoulders of the GPIC maintenance planning section. The section starts early by identifying the needs for direct manpower / equipment which are sourced from contractors for a specified period via “Package Services” which are jobs that require

skills, experience and equipment that are not intended to be available as part of the permanent GPIC workforce and “Vendor Services” which represent specific requirements by GPIC of the original equipment manufacturers. During the 31 month planning phase, GPIC has to plan hundreds of key activities which are broken down by phase. Some of those activities are quite obvious, such as preparing job lists and material status lists, issuing service enquiry documents to be sent to the service providers and following up on the issuance of the purchase orders for the selected contractors. Others however, are not so obvious, but are just as vital to the success of the turnaround, such as conducting kick off meetings with contractors when the contracts are issued, coordinating the trade testing of manpower to ensure they are capable of performing the work assigned to them, preparing plot plans for essential locations and services such as supervisor cabins, mosques and contractor rest areas and processing gate-passes for the selected manpower.

The 2012 GPIC turnaround is set to be the biggest turnaround in the company’s 32 year history. It also includes many critical jobs such as the R-0801 Ammonia Converter basket replacement, the relining of R-8201 Urea reactor and the first inspection of the world’s first Omega bond® stripper, an activity the entire world is waiting to witness. The overall turnaround will be comprised of 2932 work orders which are divided into corrective maintenance activities (meant to correct problems that occurred during normal operation but could not be rectified while the equipment is in service) preventive maintenance activities (key maintenance activities meant to prevent failure of the equipment during its operation) inspection activities (meant to identify hidden failures and points where future failures may occur) and Modifications / Capital projects (Large projects that are meant to improve the production process.)

10 Develop Preliminary List of Major Jobs (Done)

Jul Aug

2010 Sep Oct Nov Dec Jan Feb

Prepared:________________

Mar Apr May June Jul

Checked :________________

REV-03 (Issued)

Aug Sep Oct

REV-04 (Issued)

2011 Nov Dec Jan Feb

Approved:________________

REV-05 (Issued)

Start Preparing & Issuing Contracts

Mar Apr

REV-06 (Issued)

Start

May Jun

2012

Jul Aug

REV-07

Issue all POs Services Contracts MWOs Cut-Off Date

Reports: 72 Hours Look Ahead Schedule Daily Progress Report Daily Contractors Attendance Report

Sep Oct

(03.11.2012)

REV-02 (Issued)

Tech.Div. Meeting Maint.Meeting

Nov

||Executive Summary Report||Start Invoices Payment|| || Return of Unused Materials to W/H || T/A Forum || || FAC for MOD ||Contractor Performance Eval'n. || || Review Suggestions || TA Audit Turnaround Work Orders Closing in SAP Turnaround Detailed Report

Planning & Preparatory Phase

Turnaround Commencement

Start Technical Evalation of Quotations (IP) Start Issuance of Vendor Services PRs (Done) Complete Issuance of Package Contracts PRs (Done) Start Issuance of Bar charts for Major Jobs (Issued Rev-01) Start Issuance of Manpower Purchase Orders (Done) | TA Complete Reservation for Static Equipment/NRVs (Done) Complete Technical Evaluation for Manpower (Done) Check Toolstore Inventory (tools) (Done) Complete Matl. Reservation for Instr/Elect/Civil Jobs (Done) Complete Issuance of Vendor Services PRs (Done) Start TA Meeting to Discuss Jobs Listed in Job list (On Going) Combined Meeting (MNT/OPR/TECH/SAFETY) (Done) Issuance of Bar charts for Major Jobs (Revision) Done| TA Start Issuance of detailed Bar charts (Done) Start Proposing Manpower to be Seconded to Maint. (Done) Complete Tech.Eval'n.of Rental Equipt.(Done)/Vendors (Done) Blocking of Stock Materials (Done) Final Cost Estimate&Budget Proposal (Done)||Pre-Fabrication Start Kick-off Meeting with Manpower Suppliers (Done) Reservation of Consumable Items (Done)| TA Audit (Done) Material Status Updating in Material List & Joblist (On Going) Issuing List of Vendors for Hotel Arrangement (Done) Issue All Purchase Orders for Services (IP) Start Trade Test Local Manpower (IP) Issuance of Organization Charts (A.L Level) (IP) Inspection of Critical Spares in Warehouse (IP) Start Releasing All Blocked Material (Done) Start Testing of New Mechanical valves (IP) Trade Testing of Overseas Manpower (IP) Shelf Life Items Procurement (IP) Start Processing of Visa Arrangement (IP)| TA Audit (Done) Cut-off Date for MWOs & MODs Start Issuance of Organization Charts (Technicians Level) IP Confirmation to Contractors Starting Date of TA (Done) Final Approval for Plot Plan(IP)|Gate Passes Processing (IP) Start Erection of Scaffolding (started) Materials Withdrawals (IP) ||Issuance of Bar charts:Final Issue Organization Charts (Final Revision) ||Briefing :Contractor ||Management || TA Audit Safety Orientation for Contractors Manpower

(Issued)

Complete Matl. Reservation for CVs/PSVs (Done)|TA Audit (Done)

REV-01

PRs for Rental Equipments (Done) ||Biweekly Report (on going) Matlerial reservation for Valves/Fab (Done) Review & Update Rolling 10 Years TA Plan (DOne) Issuance of Major Jobs bar charts (Preliminary)(Done) Combined Meeting (MNT/OPR/TECH/SAFETY) (Done) Complete Issuance of Rental Equipment PRs (Done)

Complete Issuance of Manpower PRs (Done)

REV-00 (issued)

Initial Cost & Budget Proposal for TA 2012 (Done) Start Preparing PRs for Package Contracts (Done) Complete Reservation for Misc.Rotary M/Cs (Done)

Start Issuance of PRs for Manpower (Done)

Issuance of Job List & Material Status List

Finalize TA2010 Suggestions / Recommendations (Done) Issuance of Master Turnaround Schedule (Done) Compile PM, Insp'n.,Capex,Catalyst & CM Orders (Done) & Issuance of Job list Rev.00 (Done) Complete Material Reservation for Main M/Cs (Done) Issue List of A. Leaders (Done)|Manpower Estimate (Done)

Finalize List of Major Jobs (Done)

Addl.Qualification of Suppliers/Contractors (Done)

Jun Material Reservation for Carried forwarded jobs (Done)

Review & Update Rolling 10 Years TA Plan (Done)

2012 Turnaround Roadmap Execution Post T/A Phase Phase

REV-08 REV-09 Final

REV-10 Post TA

Start Manpower & Equipment Mobilization Commence Turnaround

Start Issuing Finish

Daily Meetings:

Dec Jan

2013

Feb

Revision:10, Revision #10, 06.09.201206.09.2012

5 THU

Turnaround Master Schedule

TURNAROUND SCHEDULE

6 FRI

7 SAT

SAT

3-Nov

Ammonia UNIT-51

November 2012

SUN

4-Nov

MON

5-Nov

THU

8-Nov

FRI

SAT

SUN

MON

TUE

WED

THU

FRI

MON

TUE

WED

THU

FRI

SAT

SUN

MON

TUE

WED

THU

FRI

3/Nov

4/Nov

5/Nov

6/Nov

7/Nov

8/Nov

9/Nov

10/Nov 11/Nov 12/Nov 13/Nov 14/Nov 15/Nov 16/Nov 17/Nov 18/Nov 19/Nov 20/Nov 21/Nov 22/Nov 23/Nov 24/Nov 25/Nov 26/Nov 27/Nov 28/Nov 29/Nov 30/Nov 1/Dec

R-0101 catalyst replacement

1-Dec

Inspection & maintenance

SAT

SUN

2-Dec

MON

3-Dec

TUE

4-Dec

WED

5-Dec

THU

6-Dec

FRI

7-Dec

2/Dec

3/Dec

4/Dec

5/Dec

6/Dec

7/Dec

5/Dec

6/Dec

7/Dec

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- Purge ======== ======== S/up =====

K 0201LP casing, gear box overhaul, install new diaphragms

===== =====

UNIT-06

SUN

Pr.ref. catalyst , tubes, Cera.blankets & wall panels replacement

===== ===== ------------------------------------------------------------------------------------------------------------------------------- --------R-0401 Catalyst skimming \ R-0402 Catalyst skimming

UNIT-05

SAT

9-Nov 10-Nov 11-Nov 12-Nov 13-Nov 14-Nov 15-Nov 16-Nov 17-Nov 18-Nov 19-Nov 20-Nov 21-Nov 22-Nov 23-Nov 24-Nov 25-Nov 26-Nov 27-Nov 28-Nov 29-Nov 30-Nov

===== =====

UNIT-04

7-Nov

====

UNIT-03

WED

===== =====

UNIT-02

6-Nov

Revision 6 Date: 20th September 2012

===== ===== =====

UNIT-01

TUE

November 2012

FR - PRD - 04

E-0501 bundle,E-0502,F-0510 replacement,P0501B O/haul

===== === Passivation ------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------===== Start up == =====

===== ===== ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Purge Start up ==

UNIT-07

=====

UNIT-08

O/H K-0701 1st,3rd,4th barrel and LP turbine overhaul, PV 07007 replacement

===== =====

UNIT-09 UNIT-10

===== ===== =====

Inspection & preventive maintenance / PM check of K-0901

===== ===== --------

Inspection & preventive maintenance

Methanol

6/Nov

Unit-00 Unit-11 Unit-12 Unit-14 Unit-15 Unit-18 Unit-19 Unit-71

UNIT-10 Urea

Unit-81 Unit-82 to 85 Unit-68/75/86

Unit-77/87/88/89/95

Unit-31/32/62 Urea

R-0801 Catalyst & basket replacement,E-0802, E-0806 chiller eplacement, Amm. Venting system installation

5/Nov

===== Wash,drain

7/Nov

8/Nov

9/Nov

--------------------------

------- Overhaul K1401 1st,2nd barrel

------- ------- ------- ------- ------- ------- Purge

===== =====

=====

Start up ==

=====

Start up ==

------- Inspection of crude tank T-1901

4/Nov

=====

K-8101HP,LP casing, MT-8101 & gear box overhaul,

=================

9/Nov

= Start

10/Nov 11/Nov 12/Nov 13/Nov 14/Nov 15/Nov 16/Nov 17/Nov 18/Nov 19/Nov 20/Nov 21/Nov 22/Nov 23/Nov 24/Nov 25/Nov 26/Nov 27/Nov 28/Nov 29/Nov 30/Nov 1/Dec

-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------

Reactor relining, E8202A,B & stripper Inspection, Replacement of critical loops piping, Urea flare installation K8602, O/Haul K-8604,K-8606,S-8602A,B, Replace E 8602C, E 8603 -------- -------- -------- -------- -------- -------Steam/Condensate system inspection/ repairs -------- -------- -------- -------- -------- -------- -------- -------- -------- --------

--------

OS test === S /U -------- = S/U === =====

============ O/Haul

-------- -------- =

=========== =====

===== ===== =

=========== =====

3/Dec

Flare inspection------------Purge ------------- Purge ------- ===== ===== ===== ===== =====

3/Nov

8/Nov

2/Dec

------- ------- ------- ------- ------- ------- ------- Start up == Methanol production ------- ------- ------- ------- ------- ------- ------- Start up ==

------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------7/Nov

3/Dec

------- ------- ------- ------- ------- ------- ------- Purge Start up ==

=====

6/Nov

2/Dec

------- ------- ------- ------- ------- ------- ------- OST Start up ==

Wash,drain ------- Inspection and maintenance ===== ===== ===== ===== ===== ===== =====

===== Gas

------- ------- ------- ------- ------- ------- Purge ====

Cool,purge === ------- R-1501 Catalyst replacement

5/Nov

Ammonia production

10/Nov 11/Nov 12/Nov 13/Nov 14/Nov 15/Nov 16/Nov 17/Nov 18/Nov 19/Nov 20/Nov 21/Nov 22/Nov 23/Nov 24/Nov 25/Nov 26/Nov 27/Nov 28/Nov 29/Nov 30/Nov 1/Dec

======== ==== B1201 catalyst & PV12022 Replacement

Wash, drain ===

S/up, redn.

------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------

======== ==== ------- R-1101 catalyst skimming =====

--------- ---------

SCW / FCW/I.A. system inspection,T-8602 replacementSW piping upgrade Main UPS replacement -------- -------- -------- -------- --------

S/U === ===== S/U === =====

4/Dec

===== ===== ===== =====

-------- -------- -------- -------- ===== ===== ===== ===== ===== =====

Urea production

Shutdown days

Utility

3/Nov

Unit-31

4/Nov

5/Nov

6/Nov

7/Nov

8/Nov

9/Nov

10/Nov 11/Nov 12/Nov 13/Nov 14/Nov 15/Nov 16/Nov 17/Nov 18/Nov 19/Nov 20/Nov 21/Nov 22/Nov 23/Nov 24/Nov 25/Nov 26/Nov 27/Nov 28/Nov 29/Nov 30/Nov

basins C & D cleaning, repairs,header inspection Basins A,B cleaning ,repairs, Unit-31 ===== --------

====== SCW

B'lr C

Unit-32/33/34 Inspection and repairs Unit-41/42 Inspection and repairs. --------

B'lr A

----

-------- -------- -------- -------- -------== -------- -------- -------- -------- -------- -------- -------- -------==

-------- -------- -------- -------- -------- -------- -------- --------------- -------- -------- -------- -------- -------- -------- --------

Boiler 5203

B'lr B New boiler tieins, Replace H6401,E-5201A/B,D-5202 A,B, FD fan suc.silencer. S /u Steam ---------------- S/up Exciter replacement, ECD upgrade, -------- -------- -------- -------- -------- -------- -------- S/U & sync 11 KV switchboard prot. Relays replacement, HIMA cable repl. MG 6401 Replace 3.3 KV switch board, replace 3.3 kv motor cables Black out test MD MD 6102 6101

Unit-61/64 MT-6401 overhaul,-----

Boiler 5201A

Steam --------

Boiler 5201B

(Production to production)

Ammonia plant Urea plant Methanol Utility

25 26 19 12

S/up Steam

FR-PRD-04, Revision-1, dated 12/12/2010

Issued by Plants Operation Department

The Role of Fire & Safety in the Turnaround

Under the theme of “No Compromise on Safety”, GPIC launched the biggest Turnaround maintenance operation since its inception in 1985 whether in terms of the number of maintenance projects, upgrades or the allocated budget.

For the contractors’ workers, the Company entered into agreements with several local and international companies that enjoy high standards of occupational safety. Such occupational safety is one of the key criteria for entering into contracts with such companies.

Owing to the significance of safety in GPIC, the Company has focused on preparing for this key event since the completion of the previous Turnaround in March 2010. With the safety of its employees, operations and manufacturing processes in mind, the Company focused on a number of key issues to achieve the highest levels of safety.

With regards to equipment selection, the Company pursued a strict policy of ensuring high quality equipment by the strict selection of the manufacturers and the high records in manufacture operations. Moreover, the Company dispatched a number of its engineers and inspectors to the manufacturers to have a close look at the manufacturing operations and to ensure the highest levels of quality.

The primary focus was on human resources as the Company has developed a comprehensive training programme for all its employees to ensure their efficiency and ability to operate the plants and to deal with any emergency. The Company was also keen on dispatching employees to the workshops of the manufacturers of the equipment that the Company planned to install or upgrade during the Turnaround period to give them the opportunity to receive theoretical and practical training and to gain the experience and knowledge that are the mainstay of safe plant operations.

Parallel to this, an integrated working plan was developed by the Maintenance Department

for the follow up of daily maintenance tasks through the presence of the occupational safety personnel which helped educate the employees and guide them to the safest working methods on a daily basis. The resulting comments were discussed with the contractors’ safety officers and representatives every morning and noted down in the daily safety bulletin. The purpose was simply to motivate the staff members to be vigilant and to ensure work safety standards. Daily prizes were also distributed to the staff members who complied with GPIC’s safety regulations.

With around 4000 contractors available on site, there was a corresponding increase in the number of security personnel who The third focus was on the daily follow up of had numerous responsibilities including the safety issues during the maintenance period identification of workers and checking the that was undertaken by all the Company’s suitability of the tools brought in or taken out employees especially the staff of the Safety, of the Company’s premises. Health and Environment Department. Meanwhile, the Maintenance Department GPIC is considered as one of the leading dispatched several of its employees to a industrial companies in terms of a good refresher course in occupational safety and reputation in occupational health and safety, involved them in studies on maintenance risk with several local and international awards analysis. won by the Company over the last few years.

Behavior Based Safety charts

The Majority of accidents are caused by unsafe acts where the occurrence of injuries results from a sequence of facts, the last one being the accident itself. Unsafe behavior while performing work, especially in an area which is full of loud noises and bright lights where attention is easily diverted, can have devastating consequences. The attached chart tracks the different types of â&#x20AC;&#x153;at riskâ&#x20AC;? behavior while performing different tasks during the turnaround such as incorrect handling of items, rushing through risky activities without taking the proper precautions, assuming items are safe and not checking if they have been properly tested and improper lifting of heavy items. Thankfully, during the 2012 turnaround we were able to limit such unsafe behavior by close observation and follow-up by the responsible personnel and thereby concluding one of the safest turnarounds GPIC has ever witnessed.

GPIC SH&E Department TA 2012 All BBS catagories safe percentage

Safe Unsafe

Permit to Work Audits The total number of permit to work audits conducted was 1006 audits covering day and night shifts, with an average of 45 audits per day. The PTW team was also supported by contacted safety personnel during the night shift audits.

TOTAL = 1006

No. of PTW Audits - Plant wise

The PTW audits conducted had covered all units within Ammonia, Methanol, Urea, Utilities plants and Urea Handling section. The overall audits outcome revealed that 66% of all permits issued were in full compliance with PTW procedure, while 32% of the audits were captured with observations or scope for improvements, and only 2% of the audits showed major PTW violations. The overall results show great care and effort was exerted by GPIC and contactor personnel on various levels to ensure all activities were conducted according to the PTW procedure, however some observations were highlighted, which indicates more follow-up is necessary from experienced personnel and direct supervisors to ensure all activities including the non-major works are also closely monitored to ensure work is performed in a safe manner and in full compliance with the PTW procedure.

Turaround 2012 - PTW Audit

Risk Assessment Audits The risk assessment process is a careful examination of threats, which could cause harm, loss or damage to GPIC assets and personnel. Risk assessment involves identification of those threats, analyzing them to determine the likelihood of occurrence and their possible impact.

• Identifying key activities • Understanding the vulnerabilities one has and the threats he or she may face while performing these activities • Analyzing those risks to determine priorities • Taking all necessary precautions so that these risks can be managed to an acceptable level This turnaround introduced the risk assessment audit team which audited all the completed risk assessments of the different activities which had a tremendous impact in improving risk assessments procedures.

TOTAL CUMULATIVE AUDITS: 502

Cumulative Risk Assessment Audits

The Risk Assessment effort process involves:

RA Cumulative Audit Status Unit Wise:

Turnaround Activities of the Ammonia Plant Ammonia plant turnaround activities commenced on November 3rd, 2012 as per the master schedule.Turnaround activities included carrying out maintenance, inspection and execution of capital projects & modifications. The well-organized planning, the team spirit of our employees, and the interdepartmental synergy, made the turnaround go smoothly and with no “lost time” accidents. Different jobs were carried out during the turnaround that enhanced the reliability of the plant, and increased the production of Ammonia. One of the most critical jobs performed was the replacement of the Ammonia convertor basket (R-0801). This job is considered to be unique because the converter basket has never been changed ever since Ammonia plant’s inception in 1985. The replacement of the converter basket with a new design was executed by Arabian Pipeline and Service Company from Saudi Arabia under close supervision of GPIC and the manufacturer Haldor Topsoe. This project was carried out smoothly and completed within the allocated time slot as per the turnaround schedule. The replacement of both the primary reformer tubes and catalyst was also one of the important and major jobs carried during this period, all 240 tubes of the reformer unit were

replaced with new micro alloy tubes, that are thinner and can therefore allow more catalyst to be loaded.The replacement of the tubes was done by Ramsis Engineering from Bahrain. This job was followed by catalyst replacement work which was carried out in the presence of the supplier’s engineers from Haldor Topsoe. Other jobs included the replacement of the HIMA cables for major drives, as well as the inspection and cleaning of exchanger units including the process gas (PG) cooler, and a Tie-in installation for the Ammonia Venting System. In addition, all major rotary equipment overhauling was carried out along with a total of 44 modifications all of which were implemented successfully. All planned jobs were executed within the allocated time and with the highest levels of safety. The Ammonia start up activities took place on November 27th, 2012 where the front end was fully lined up and production resumed on December 1st, 2012. The outcome of this successful turnaround revealed significant improvements in the plant’s performance in terms of energy consumption, which has decreased, and the daily production level, which has increased by about 100 tons per day.

Turnaround activities of the Methanol Plant The Methanol Plant was shut down as planned on November 5th, 2012 to carry out the planned activities after a continuous run of 961 days. The total shut down duration was 21 days during which we performed some major jobs to ensure optimum reliability and productivity of the plant for the next running cycle. Key among those was the Methanol Synthesis Reactor catalyst replacement; after 9 years of operation since Turnaround 2003. The same type of catalyst (51-8) was used, as it has proven to give reliable performance. This job was considered as a critical activity for the methanol plant shut down period, Al-Fahhad Zegward from Saudi Arabia was contracted to carry out this critical activity based on their broad experience in this field. In addition, an extensive inspection was carried out for the shell weld joints internally and externally and both were found to be in satisfactory condition.

flow. Lastly, three barrels of the make-up gas (MUG) compressor were overhauled using GE expertise and the CO2 compressor was completely overhauled as part of its preventive maintenance schedule. The inspection and repair of the Methanol intermediate storage tanks was also carried out, where the tank base plate for T-1902 was replaced due to clear thinning observed during routine inspection. The other tank T-1903 was offered for inspection and subjected to some repairs based on inspectionâ&#x20AC;&#x2122;s recommendations. The same was also done to the crude methanol tank T-1901. The final Methanol product storage tank T-7201B, was also decommissioned during the turnaround to replace the annular plates as part of the reliability enhancement plan. For the Methanol plant, the work started prior to the turnaround in order to have enough time for this major project. This opportunity was also utilized to conduct a full inspection of all nozzles as well as the tank roof, using the rope access technique.

The Reformer old catalyst was also replaced during this turnaround after 5 years of operation since Turnaround 2007, which was carried out under the supervision of Haldor Topsoe engineers using the Unidense method. The combustion air steam preheater (EB-1202- The Methanol plant was restarted after the 7) located in the reformer convection zone, was successful completion of the planned jobs and th replaced with a stainless steel one to resolve production resumed on November 26 , 2012. the problem of u-bend failure due to two phase

Turnaround activities of the Urea Plant The Urea plant planned turnaround commenced on November 3rd 2012 as per the master schedule of the turnaround and it lasted for a period of 27 days, to carryout maintenance, inspection and execution of modifications and Capital projects. All activities were executed safely and on time thanks to proper planning and seamless coordination between all involved. During this turnaround the Urea Plant conducted some major jobs such as overhauling the CO2 compressor and turbine which was executed under the supervision of the Original Equipment Manufacturer Mitsubishi Heavy Industries (MHI) Japan. This was done to ensure long term stable operation, consistent and reliable performance of the compressor and turbine for the next running cycle. On the other hand the Dehydro reactor catalyst was replaced to improve the quality of recovered CO2 gas. As part of enhancing the integrity and reliability of the plant high pressure equipment such as the Urea Reactor, Stripper and Carbamate condensers, inspection was carried out by GPIC inspectors along with SAIPEM inspectors from Italy. Corrective actions were taken as per inspection findings. The Urea Reactor relining was carried out by AXO Welding, Italy as part

of a continuous turnaround project to improve the Urea reactor performance and corrosion resistance. Also during this turnaround, the worldâ&#x20AC;&#x2122;s first Omega Bond Urea stripper was inspected for the first time after more than two years of continues operation by Engineers and Inspectors from GPIC, Saipem, Italy, ATI Wah Chang, USA and Officine Lugi Riesta, Italy. Corrective actions were taken based on expert findings and advice. Furthermore, the synthesis sectionâ&#x20AC;&#x2122;s pipeline sizes were increased and the product finishing section Fluidization air heaters, Droplet separator and K-8602 suction acoustic filters were replaced based on previous inspection recommendations. The Urea bucket elevator was revamped by Beumer, Germany, to improve the reliability and integrity of the equipment. Also, inspection and cleaning, both mechanical and hydro jet, was carried out for various exchangers to improve the efficiency of the equipment. Comprehensive eddy current examinations, Safe x-rays, MPI test, and thickness surveys of the equipment, pipe lines, and supports were carried out by GPIC inspection in coordination with respective vendors to ensure performance in the coming period. All planned jobs were executed within the allocated time and the highest level of safety, procedures and policies was maintained.

Turnaround activities of the Utilities Plant The Utilities plant is the backbone of all other plants. It is where all necessary utilities and services are provided to continue running the plants in a reliable manner. Therefore, a large number of major units in Utilities were taken for complete overhaul and maintenance during the turnaround period. According to the GPIC 2012 turnaround master plan, the first unit was the Sea Water intake unit which was taken out of service on the 4th of November 2012 for a period of 12 days to carry out cleaning and repair of the main sea water basins, supply and return headers.The work started with the Urea basins, followed by the Methanol and Ammonia basins which were taken for maintenance on November 7th,2012. During the outage of the main units, other maintenance, inspection and execution of modifications and Capital projects was carried out. The 24â&#x20AC;? sea water return line for Desalination units 1 and 2 was renewed while blind flanges and isolation valves were installed to facilitate repair activities without shutting down the complex. The condensate stripper (C-4201) packing and vent silencer were replaced. This accounted for a considerable reduction in noise levels from 94.5 dbA to 81.7 dbA.

Other Tie-In projects were taken for the new high pressure (HP) steam boiler to increase the reliability of the steam network.The 3.3 KV circuit breakers were upgraded by replacing them with modern protection systems in substation no. 2 to improve their reliability.The Electrical Control Desk (ECD) PLC system was upgraded to the latest equivalent replacement form, as the components of the existing PLC were declared obsolete by the manufacturer. Moreover, HIMA cables were replaced in substation no. 2 for Ammonia, Methanol & Utilities drive units. The Gas Turbine was also handed over for major overhauling and replacement of spare parts. Throughout the turnaround period, all waste generated after cleaning the sea water basins, boilers, stripper, and Holding pit were disposed of according to the Waste Management Plan and in an environmentally friendly manner. The Utilities as usual was the first plant to come online by commissioning the Sea Water intake units and sea water network on the 17th of November 2012 as per plan.The commissioning was attended by Mr. Abdulrahman Jawahery, GPIC President and the management team in the presence of GPIC and contactor staff.

November 26, 2012

TURNAROUND 2012 – DAY 24

Technical Services Support

Major Activities Related to Capex Projects & Modifications

Materials & Procurement Section Support 1. PJ/2012/R004 (M-4590) – Urea Reliability Engineering Support – Engineering Project: chnical Services Section Inspection Support MPD Outlet Line: Final connection of Sample point its relevant utilities are in progress. TURNAROUND 2012 – DAYand24

2. M-5215: Provide Two Strainers o Supply Line to E-8105: Gratings ins progress.

Major Activities Related to Capex Projects & Modifications

-4590) – Urea Reliability

Final connection of Sample point nt utilities are in progress.

2. M-5215: Provide Two Strainers on the Sea Water Supply Line to E-8105: Gratings installation is in progress.

D-8201 Outlet Line to Ejector A-8201: Line Alignment for provision of final support is in progress.

3. M-5209: Upgrading I/L&O/L of E31254 (Avesta): Painting of new line

Materials & Procurement Section Support The Materials & Procurement Section is considered to be an instrumental element in ensuring the availability of Turnaround materials and spares - through issuing of purchase orders to suppliers and vendors - and providing storage space in different warehouses distributed throughout the complex. The materials and spares are stored in suitable and optimal conditions which complies with the most advanced inventory management practices. Turnaround preparation in the section doesnâ&#x20AC;&#x2122;t differ from normal activities. The Materials engineer, in coordination with the end user, will replenish the stock and can recognize the need for spares and give them priority. This activity is generally carried out one year prior to the Turnaround.

Prior to the Turnaround, storekeepers start, in coordination with Materials Engineers and users, checking the availability and physical condition of materials which are required for the Turnaround, replenishing any shortage in materials. The team begins by raising the procurement requisition and following up deliveries with suppliers. In addition, and in order to ensuring a smooth warehousing operation, the warehouse supervisor and the storekeepers will ensure issuing of materials a month prior to Turnaround in order to avoid any delay in issuance and to focus on the safety aspect during materials handling. During Turnaround, the team is prepared for any urgent material procurement which might occur, and is in constant contact with the vendors to expedite the supply the materials as early as possible. The warehouse staff is also available around the clock in order to issue materials whenever required.

Engineering Support

Ejector A-8201: Line al support is in progress.

The engineering section, under the responsibility of the engineering superintendent, who reports to the technical services manager, is made up of four disciplinesD-8201 â&#x20AC;&#x201C; Project, Outlet Line to Ejector A-8201: Li Electrical, Instrument, and Process Engineering - each under Alignment for provision of final support is in pro the responsibility of a senior engineer.

3. M-5209: Upgrading I/L&O/L of E-8105 to UNS Prior to the Turnaround, the engineering section provides 31254 (Avesta): Painting of new lines isandin new progress. detailed engineering for plant modifications construction proposals, it also assists in the coordination of the design and implementation of capital budget projects and modifications that will be implemented in the Turnaround.The engineering section also coordinates with outside agencies whenever required in the execution of projects.

The Engineering section processed 25 capital projects and 122 modifications that were implemented during the 2012 Turnaround. During the Turnaround, the Engineering Section offers its support implementation of the different modifications. Also to help resolve any technical difficulties that may arise during the course of the project.

ort and drain connection progress 26

After the Turnaround it is the responsibility of the Engineering section to update all the engineering documents all the PSVfor8401: capital projects and modifications implemented during the Turnaround.

Tail Pipe support and drain conne works are in progress

ine ogress.

PG Cooler fouling phenomenon

3. M-5209: Upgrading I/L&O/L of E-8105 to UNS 31254 (Avesta): Painting of new lines is in progress. High Pressure drop across LTS

Total of 25 Capex Projects

Total of 122 Modifications

Ovalisation in Elbows Cut to Non-Standard Angles

ection

Inspection Support

Initial preparation of the turnaround 2012 was initiated immediately after the completion of the March 2010 Turnaround. The Inspection Section developed comprehensive turnaround requirements which were forwarded to Planning and Maintenance sections in order to organize and arrange resources to facilitate effective inspection. Major inspection activities performed during Turnaround 2012 were : inspection of Omegabond Urea Stripper for the 1st time since 2010, inspection of Urea

reactor internal lining, urea reliability enhancement project, inspection of urea high pressure loop equipment, inspection of methanol storage tank, inspection of ammonia converter, Inspection of methanol converter and inspection during replacement of ammonia plant catalyst tubes. GPIC inspection introduced for the 1st time the SAFERAD (Small Area For Exposure

Radiography) radiography method which has been developed recently with many potential benefits when compared to traditional radiography methods. In SAFERAD, Selenium-75 radioactive isotopes are used in the radiography exposure and gives high quality radiographs. This method eliminates the need for personnel evacuation and does not cause any work disruption and the radiation controlled area can be reduced to as little as 1 metre from the exposure container which was to be in range of 20-25 metres in conventional radiography. Rope access technology was introduced for the removal of insulation from columns of 50 metre height, cleaning of shells with battery operated rotary brushes, thickness monitoring, visual inspection, painting and fixing back hot insulation.

The Human Resources Department Support The Human Resources Department is the backbone of all activities in GPIC. It does its work silently and meticulously day in and day out and has shown unprecedented performance not only by achieving its targeted goals / objectives but also exceeded in all the responsibilities entrusted to it for the Turnaround 2012. As preparation for the 2012 Turnaround, the HR Departmentâ&#x20AC;&#x2122;s Training and Development Section has conducted various courses ( Technical /Safety/ First Aid )to upgrade and improve the skill set of the employees so that they can handle their jobs well, and excel in delivering their responsibilities. The HR Section tried to fill the maximum number of vacant positions without compromising the quality of the people recruited well in advance so that the new graduate engineers/technicians/operators benefit from this turnaround which happens only once every two years. The Human Resource Section is also instrumental in procuring entry visas for all the engineers and technicians who are required for the Turnaround to carry out the various tasks during the shutdown. The Logistics section on the other hand, shoulders the responsibilities of looking after not only GPIC Employees and Contractors but also the transportation, accommodation and catering for the large number of contractors during the Turnaround. The Medical Section has worked proactively towards the physical as well as mental wellbeing of the employees of GPIC and is well prepared to take on any emergencies during the Turnaround. It has taken numerous initiatives to keep the employees healthy and stress free so that they can achieve optimal performance, especially during the Turnaround as there is huge amount of pressure on each employee during this time .

GPIC Medical Centre Support

Within the provisions of the plans developed by the Company’s team, the GPIC Medical Centre completed all preparations, including stocking increased medical supplies, for the huge impact of the Turnaround, which will occupy the Company’s full attention during the month of November. The Company has provided its Medical Centre with a wide range of devices and modern medical equipment, including a specially equipped ambulance able to accommodate severe injuries, deal with CPR requirements and provisioned with devices for measuring vital signs in the body. The Medical Centre has also been coordinating with government hospitals in case of emergency situations.

Mr. Abdulrahman Jawahery, GPIC President, recently visited the Medical Centre to determine its readiness, after the preparations taken by the medical staff, in case of any emergency during this important period, declaring great satisfaction with the medical preparations, including the provision of equipment, medicine and medical staff. At the same time, Mr. Jawahery stressed that the enormity of the periodic maintenance taking place meant that the Company had to take various precautions in anticipation of any emergency, God forbid, during implementation.

Mr. Jawahery concluded with his appreciation to the members of the Board of Directors who follow closely the Company’s periodic maintenance schedule, always eager to ensure the success of this process by providing special equipment and preparations commensurate with the monumental scale of the work, which will be carried out by a large number of experts and labour, tailored specifically to these operations. As always, it is hoped that the Company can perform these operations with “No Compromise on Safety,” as runs the shutdown slogan.

In addition, the Medical Centre’s stock of medicine has been expanded to accommodate the growing number of day patients expected during this period, as the Centre provides medical services and primary health care to the staff of the Company and its affiliates. Among its other duties, the Medical Centre also performs routine daily inspections of the Company canteen and restaurant to ensure the safety of the food provided to employees.

GPIC Managing Director visits the complex during the Turnaround with visiting the SHE Building where the guest familiarized himself with the responsibilities of this Department and the supporting services provided to support the maintenance by providing all safety, health and environment requirements. Mr. bin Salameh opened the On his arrival, he was welcomed by Mr. Prayer Room and the Changing Room at the Abdulrahman Jawahery, GPIC President and facility following their complete refurbishment members of the executive management. Also to provide all means of convenience to the on hand to welcome the prominent visitor was Company’s workers and employees. the Chairman and Deputy Chairman of GPIC Workers Trade Union in addition to senior The Managing Director used the opportunity to meet with the trainees, who included 55 officials of the Company. males and 16 females, who attend training During the meeting, the turnaround phases courses offered by the Leadership and Learning were reviewed and the achievements of Academy. The guest was briefed by officials the exercise were highlighted. Discussions about the training programmes offered by the also dealt with the precautions taken by the Training & Development Department through Company during the maintenance process in which the focus was on the link-up between addition to issues of safety, health environment the results of the training programmes and the and the medical services required by such huge Company’s strategic objectives with focus on operations and the meals and transportation the quality of training programmes that meet facilities for the large numbers of workers the needs of customers’ requirements and quality services offered by the Company. involved in the whole operation.

and the staff of this department briefed the visitors on the nature of their activities.

The tour included a visit to the Maintenance Workshops where he honoured a number of workers in addition to the contractors’ workers working at the Maintenance Department. A visit to the main control room took place

The Company’s Managing Director praised the training programme which he learned about during his discussion with the trainees and stressed that such courses would provide trainees with the required skills and

On Thursday 15th November, HE Mr. Anwar Saeed bin Salameh, GPIC Managing Director paid an inspection visit to the GPIC Complex during which he familiarized himself with the plant turnaround.

This was followed by a tour made by HE Mr. Anwar Saeed bin Salameh to inspect the stages of the plant turnaround accompanied by Mr. Abdul Rahman Jawahery and members of the executive management. The tour started off

On this occasion, the Managing Director said he was impressed with the proper meticulous and planned work for the stages of the turnaround process in all departments of the company. He also paid tribute to the strict precautions taken by the Company for ensuring the safety of the contractors’ workers and manpower recruited from abroad to carry out the maintenance works. Mr. bin Salameh expressed his thanks and appreciation for the continuous follow up by Mr. Abdulrahman Jawahery who personally oversaw the enormous turnaround operations with all their small details. He noted that the daily reports received from GPIC management were compatible with the details of the maintenance which were consistent with what he saw during this visit. He expressed the hope that the whole maintenance exercise would be completed on schedule.

knowledge to efficiently carry out their duties. He pointed out that the training programmes provided the workers with the latest knowledge and information to keep abreast of developments in this vital industry. Concluding, he expressed his thanks to all the Companyâ&#x20AC;&#x2122;s employees for their commitment and professionalism as reflected through their positive participation in carrying out the turnaround duties. He added that this was not surprising since they had the necessary knowledge and skills gained from similar operations in the past enabling them to ensure the continuity of plant operations without interruption since the most recent turnaround of the plants in 2010. Meanwhile, Mr. Abdulrahman Jawahery, GPIC President said he and the employees were pleased with the visit of the Managing Director who inspected the maintenance work and honoured a number of the staff members. He expressed his appreciation of this recognition by the GPIC employees. In his remarks, Mr. Jawahery said the keenness shown by His Excellency the Managing Director reflected the concern of all members of the Board to follow up the turnaround process undertaken by the company for its different plants. It is also a demonstration of His Excellencyâ&#x20AC;&#x2122;s desire to have a close look at the soundness of procedures followed and to meet with the workers who worked hard to carry out the tasks given to them. GPIC President by stressing the need to fully comply with the plans and strategies drawn up by the Board of Directors led by HE Shaikh Isa bin Ali Al Khalifa concerning the plant turnaround process and the associated procedures related to the safety of workers and operations.

During the visit ...

GPIC Management Involvement during the Turnaround

GPIC Women Participate in Turnaround Activities Mr. Abdulrahman Jawahery, GPIC President, praised the important role played by Bahraini women working in support of the development of the Kingdom and its renaissance both in terms of paid employment and in the fields of social work and volunteering during their free time. Mr. Jawahery praised in particular the great efforts made by employees of the Company, in all Departments and Sections. Women have proven their efficiency and ability to cope with the nature of work in the industrial field in spite of its complexity, high technology and the requirements of professional and specific skills. Most of the companies in the Kingdom are therefore encouraged to use Bahraini women, whose amazing energies equal the sincerity of their working contributions. Mr. Jawahery also noted the uniqueness of opening the doors to women in the petrochemical industry, until recently an industry restricted to men only. He confirmed that the Company feels proud because of the proven and unmatched efficiency of its Bahraini engineers. He revealed that these engineers and indeed all the workers in the Company had received specialized courses in the field of petrochemicals and have participated in many

workshops, both within the Kingdom and outside, where the Company has spared no effort in providing all the skills and information required by the nature of its work. Mr. Jawahery also said that employees had put in great efforts and participated actively and positively in the preparation and setup of major maintenance operations, which began on November 3 and are ongoing, requiring a great deal of work both in the development of plans and processing equipment. Employees have also shown great cooperation with team members in the Department of Maintenance, in addition of course to support departments such as finance, human resources, public relations and public administration, in order to follow up on the comprehensive maintenance procedures. The whole exercise will be a boost for the plant in terms of production efficiency and product quality. Mr. Jawahery concluded by giving thanks and appreciation to H.R.H. Princess Sabeeka Bint Ebrahim Al Khalifa, wife of H.M the King , President of the Supreme Council for Women for Her vision in the selection of the first of December of each year as the day to honour Bahraini women.

Environmental Management during Turnaround 2012 Care for the Environment is one of the pillars of GPICâ&#x20AC;&#x2122;s sustainability strategy. The Company has taken numerous initiatives right from inception which are a testimony to its firm commitment towards environmental care and stewardship. GPIC benchmarks its environmental management by qualifying for accreditation to leading Environmental Management System Standards such as ISO -14001 and Responsible Care RC-14001. Going beyond mere regulatory compliance, the Company has become an active partner in global CSR initiatives such as the UN Global Compact, where environmental stewardship is one of the pillars. As far as Environmental Management is concerned, the biennial maintenance Turnarounds are no different. The same strategy applies and that is to take care of the environmental aspects and related impacts of all the turnaround related activities covering the following phases.

1) Pre-Turnaround 2) Turnaround 3) Post Turnaround Best practices were introduced to cater for handling a greater volume of spent catalysts during the Turnaround 2012 by expanding the existing waste disposal area that helped in the safe containment and disposal of spent catalysts. The concept of non-industrial waste segregation and recycling was further enhanced during the Turnaround by providing tri-coloured recycle bins for paper, plastic and metal in conspicuous locations frequented by the majority of the contractors. One of the significant challenges faced was to handle large quantities of liquid waste. To address this issue new fiberglass tanks were procured during the Turnaround and as a post Turnaround long term action the evaporation pond project was initiated. Finally, we believe that if we care for the environment in whatever we do, the coexistence of technology and nature is no dream.

Commissioning of the Seawater Inlet Unit

With the near completion of the shutdown maintenance services undertaken by GPIC, the Company held a ceremony marking the end of the servicing of the Utilities Unit. The event was attended by members of the executive management and Company officials. Mr. Abdulrahman Jawahery, GPIC President announced the opening of the main gates of the marine basins belonging to the Utilities Unit, hence marking the start of operation and re-operation of the Unit as scheduled. The operation took place during the period from 3rd November to 17th November 2012. Speaking at the ceremony, Mr. Jawahery said the Utilities Unit is operated by seawater which rushes through the gates to enter special channels for seawater desalination which is used for running the remaining pl ants. It has a capacity of 50,000 cubic meters per hour and the water produced is used in the production of high pressure water steam to run the Company’s basic plant turbines. Since the operations primarily depend upon the Utilities Unit, this Unit is usually the last unit to be shut down for maintenance and is the first unit to be operated among the Company’s units. In his remarks, Mr. Jawahery said the shutdown maintenance works witnessed by GPIC during

this month are considered the biggest in the Company’s history whether in terms of the maintenance and updating projects or the budget set aside for this major event. These operations were launched under the theme “No compromise in safety”. He pointed out that GPIC made significant efforts for ensuring the success of the shutdown maintenance exercise having drawn up the proper plans and strategies earlier on. The Company also dispatched a large number of its technical personnel to the manufacturers of new equipment that the Company plans to install or upgrade to during the maintenance period to get theoretical and practical training that can be the cornerstone of operating the plants efficiently and safely. Mr. Jawahery noted that the Company started its proper preparations and appropriate measures for this operation upon completion of the most recent maintenance process carried out in 2012. For this purpose, the company drew up a comprehensive training programme for all the staff members to ensure their efficiency and ability to deal with any emergency in complete safety. GPIC dispatched a number of its engineers and inspectors to the manufacturers to get acquainted with the process of manufacturing the equipment

and appliances to be used in the operations processes. In addition, GPIC entered into contracts with several local and international contractors reputed for their high standards of occupational safety with the participation of a large number of specialists from abroad and locally. The shutdown process involved the participation of teams from Saudi Basic Industries Corporation and Petrochemical Industries Company of Kuwait. He noted that the contribution of such teams was a good opportunity for the exchange of knowledge and expertise in the area of plant maintenance. Prizes were awarded by the Company on a daily basis to the employees who complied with the safety rules and instructions. This programme was highly successful in improving staff behavior. Concluding, GPIC President expressed his thanks and appreciation to the Chairman and members of the Board for their monitoring and close involvement in the shutdown maintenance stages. They ensured the successful outcome of this process which required special facilities and preparations for this large process. He also expressed his thanks to the Company’s employees for the safe completion of the operation without any loss time accident.

GPIC Thanks Her Royal Highness Princess Sabika Bint Ibrahim Al Khalifa ...

... for her support of women in the industry

Thank you

“Gpic executive management and staff express their gratitude and appreciation to their excellencies the Chairman and Board Members for their extraordinary supports and encouragement which resulted in making Turnaround 2012 safest and most successful turnaround in GPIC’s history”