1Furmanite Confidential - 1/9/04 Pressure Systems Integrity Management

2Furmanite Confidential - 1/9/04 Pressure Systems Integrity Management Objective - To provide a total flange service Result - Zero Leaks

3Furmanite Confidential - 1/9/04 Fugitive Emissions Environmental  Legislation PSI Management

4Furmanite Confidential - 1/9/04 Fugitive Emissions PSI Management Environmental  Legislation Safety  Occupational Health & Safety

5Furmanite Confidential - 1/9/04 Fugitive Emissions PSI Management Environmental  Legislation Safety  Occupational Health & Safety Commercial  Efficiency

6Furmanite Confidential - 1/9/04 Fugitive Emissions Causes  Damaged sealing faces  Warped sealing faces  Gasket selection  Poor assembly procedures  Incorrect bolt load  Uneven bolt load  Flange rotation PSI Management

7Furmanite Confidential - 1/9/04 Fugitive Emissions Costs  Loss of product  Process inefficiency  Cost of leak repair  Environmental fines  Image PSI Management

8Furmanite Confidential - 1/9/04 PSI Management Sequence Planning  Consultation  Analysis  Site inspection  Specifications  Resources  Documentation PSI Management

9Furmanite Confidential - 1/9/04 PSI Management Sequence Planning Site  Inspection  Supervision  Manpower  Equipment  Documentation PSI Management

10Furmanite Confidential - 1/9/04 PSI Management Sequence PSI Management Planning Site Post Job  MDR  Documentation

11Furmanite Confidential - 1/9/04 Planning PSI Management Consultation Identification of ‘critical’ plant:  History  Product contained  Temperature / pressure  Strategic (risk assessment)  Physical size/access

12Furmanite Confidential - 1/9/04 Planning Analysis – Overview  When a bolted gasketed flange joint is assembled the gasket seal is subjected to a compressive force – “W”  When a system is pressurized the initial compressive force is relieved by ‘H’  To maintain seal integrity there must be a residual compressive force on the gasket when the system is in service PSI Management

13Furmanite Confidential - 1/9/04 Planning FlangesGasketBolts Type Material Strength Corrosion Resistance Surface Finish Surface Condition Surface Flatness Chemical Compatibility Creep Resistance Elasticity Cost Handling Strength Temperature Resistance Strength Temp Relaxation Compatibility to Flange Cost Corrosion Resistance PSI Management Analysis Maintenance involves opening/closing bolted gasketed joints. Appreciation of the ‘system’ is necessary. The system fails, not the gasket when there is a leak.

14Furmanite Confidential - 1/9/04 Planning PSI Management Site Inspection – Accuracy of Bolting Systems   Flogging Spanner?   Impact Wrench±50%   Controlled Torque Wrench±30%   Hydraulic Bolt Tensioner±15%   Micrometer±10%   Ultrasonic Monitoring±2%   Strain Gauging±1%

15Furmanite Confidential - 1/9/04 Planning PSI Management Site Inspection – Torque to Tension Time

16Furmanite Confidential - 1/9/04 Planning PSI Management Specification   Flange Surface Finish   Flange Flatness   Gasket Selection   Bolt Material

17Furmanite Confidential - 1/9/04 Planning PSI Management Resources   Right skills for the job   Right equipment for the job   Work scheduled

18Furmanite Confidential - 1/9/04 Planning PSI Management Documentation   Generic Engineering Procedures   Specific Engineering Procedures   DS-155   DS-156   DS-158   Colour Coded Tagging

19Furmanite Confidential - 1/9/04 Site PSI Management Typical Site Workscope   Tagging   Unbolting / removing flanges   Inspection   Clocking   On-site machining   Gasket installation & flange assembly   Controlled bolting   Documentation

20Furmanite Confidential - 1/9/04 Post Job MDR & Documentation PSI Management

21Furmanite Confidential - 1/9/04 Training Flange inspection Flange assembly Bolting procedures PSI Management For non-critical plant

22Furmanite Confidential - 1/9/04 PSI Management Only when all the components of the bolted gasketed flanged joint are working together will an effective long term seal be achieved:  Selection of correct components for the application  Careful inspection, preparation, installation and assembly  Correct bolt tightening KEEP RECORDS PSI Management

23Furmanite Confidential - 1/9/04 PSI Management Santos Mobil TXU BP WMC Caltex ABF WMC PSI Management PSI Management Past Performance

24Furmanite Confidential - 1/9/04 Past Performance Santos Moomba Gas Plant  LRP Shutdown  Furmanite - Turn-Key Contract  30 Furmanite Technicians  40 Sub-Contractor  Full scope of JIMS + rigging, scaffolding, welding, cleaning, insulation, blasting & painting  150 Critical Flanges serviced  Workscope completed 11 hours ahead of schedule  Subsequently Furmanite involved on every major shutdown PSI Management

25Furmanite Confidential - 1/9/04 Past Performance BP QLD Clean Fuel Project 2000  Construction - HGU & HCU Plant  Furmanite -  Bolt Load / Flange Stress Calc’s  Equipment  Supervision (Hands on)  Documentation  97 Critical Flanges  2 crews - 12 Large Flanges in 1 x Day  Full Pressure Test - Zero Leaks PSI Management

26Furmanite Confidential - 1/9/04 Past Performance WMC Phosphate Hill  First Major Shut Down  Furmanite - Control of 80 Critical Flanges on Ammonia Plant  Engineer, Supervisor and 5 Technicians-  Zero Leaks at Start-Up ( Client signed off Furmanite 4 weeks after start up)  Ammonia Plant Shut Down finished on schedule PSI Management

27Furmanite Confidential - 1/9/04 Past Performance ABF 9th Critical Joint Shut Down  Approx 4600 man hours  20 Furmanite Personnel (1 Project Mngr, 3 Sup’s & 16 Tech’s )  17 Day shutdown  58 Critical Joints – assembled and bolted (18 not part of the original scope)  Bolting from 7/8” to 5-1/4” dia.  10 RTJ Flange faces machined or lapped and polished  31 Lens Rings Machined  20 x 2-1/4” seized studs - drilled, threads picked then re-tapped  3 x 4-3/4” seized studs - drilled, threads picked then re-tapped  All work handed back on or ahead of schedule. PSI Management

28Furmanite Confidential - 1/9/04 Past Performance ABF 9 th Critical Joint Shut Down PSI Management

29Furmanite Confidential - 1/9/04 Past Performance WMC Phosphate Hill  Major Shut Down – 2003  Furmanite assisted UKG & WMC with development of shutdown work packs from Jan – July 2003  Furmanite - Control of 970 Plant Flanges, including 150 critical on Ammonia Plant  20 personnel, including Project Manager, Engineer, Safety Representative all with the ability to be hands on  Over 5,500 shutdown man-hours  Zero Injuries throughout works.  Zero Leaks at Start-Up.  Plant Shut Down finished on schedule PSI Management

30Furmanite Confidential - 1/9/04 Plant Benefits Safety & Efficiency  Right first time  Re-work significantly reduced  Reduced shutdown duration  Down time reduced All above = Plant owner’s confidence increased All above = Improved Safety performance PSI Management

31Furmanite Confidential - 1/9/04 Plant Benefits Efficiency Example  Critical flanges – Syngas line  Flange failure – 7 days downtime* at $30,000/hr = $5million  7 days = 3 days cool down + 1 day rectification + 3 days start up  JIMS – 100% success on syngas flanges to date. PSI Management

32Furmanite Confidential - 1/9/04 PSI Management Cost of leaks & un-planned re-work is far greater than cost of avoiding it. PSI Management

33Furmanite Confidential - 1/9/04 Worldwide Furmanite America Inc. - Corporate Headquarters 2435 North Central Expressway Suite 700 Richardson TEXAS USA Tel: Furmanite International Ltd - UK Furman House Shap Road Kendal Cumbria LA9 6RU Tel: