Tuesday, May 21, 2013 National Oilwell Varco (NOV) APL Management Pte Ltd

3A International Business Park ICON@IBP Tower A, #12-06/09 Singapore 609935 Mobile : +65 9737226 Email : karlkristian.holand@nov.com Attention: Ms. Kari Klufterud

Fabrication Of Upper and Lower Mating Rings HEIDRUN FSU Sytem PROFAB Ref.: 12113 r0
Dear Ms. Kari, Further to your RFQ email dated 14 May 2013, we are pleased to offer our price for the Fabrication of Upper and Lower Mating Rings in accordance with your inquiry. Enclosed is our price summary, technical & commercial proposal of our bid. We trust this offer is in line with your request and ask if you have any queries to please contact the undersigned.

Best Regards,

Paul McFarlane General Manager Business Development - International 390 Havelock Road #06-02 Kings Centre Singapore 169662
Main Office: +65 6774 7997 Singapore HP: +65 977 18697 Email: paul.mcfarlane@profab-group.com www.profab-group.com

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TERMS & CONDITIONS PROFAB Ref.: 12113 r0

Our base price includes: Supply of material, tools and consumables. QC documentation and supply of MDR to specification requirements. Mating Ring fabrication to DNV Rules. Coating surface to painted as Primer (Epoxy). NDT based on UT and MPI as required by code, specification to extent indicated on drawings. Machining as per indicated drawing. Any changes of machining detail drawings will be considered as variation order. PWHT & Local PWHT for the 150 mm thk Forge Cone. Pre-heating before welding. WPS/PQR based on our new qualified ASME IX weld procedures. Material certificate 3.2 by LRS. Delivery FAS Profab Jetty - Batam. Our base price excludes: Supply of material rolled forging cone 150 mm thk in 3 segments c/w test piece if required. Design and drawings. Third party design review or fabrication inspection, offer at cost plus 12%. Weighing. Supply of any spare parts. Supply of any bolt and nuts. Sea-fastening and lashing activity on barge. Load / drop/ lift test. Supply of transportation support frame, grillage, sea-fastening support steel. Supply of spreader bar, slings & shackles. Site erection and commissioning. Any taxes, duties or withholding taxes for materials or completed goods. Any warranty retention. FABRICATION YARD Fabrication will be by PT. PROFAB INDONESIA located in Batu Merah, Batam Island, Indonesia. VALIDITY Our quotation remains valid for 30 days. LIQUIDATED DAMAGES We offer LD 0.15% per day and maximum 5% of total contract value.

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PERFORMANCE BOND A 10% bond shall be issued as the performance bond. This shall be converted to a Warranty bond upon completion. Failing issue of any bonds, an equivalent retention shall be held by APL. Issue of the bond will require 30 days however it is expected that Profab will issue the first invoice based on documentation deliverables with bond to be issued as soon as available. The issue of the bond shall not hold issue of invoice however it is accepted that payment shall be held pending receipt of bond DELIVERY The items can be delivered approx 20 weeks - after receipt of commercially acceptable LOI or PO at 1st of June 2013 and AFC Documentation issue PT. PROFAB Shop Batam. Free issue equipment (Forged rolling cone 150mm thk) should be delivered of 10 week after receipt of commercially PO at PROFAB stores in Batam. CANCELLATION TERMINATION COST In the event of contract being cancelled or terminated in its entirety the following cancellation costs based on order value shall apply. 10% 15% 0 7 days from letter of intent to proceed, 8 15 days from letter of intent to proceed,

After this time all costs, overheads, third party liability engineering fees and cancellation of our sub supplier will be applicable and shall be changed cost plus 12% PAYMENT TERMS All invoices shall be paid based on the following milestones 30 days from date of invoice. 10% upon award. 40% upon start of fabrication. 50% by delivery FAS Profab Batam

DOCUMENTATION To ensure PROFAB attain the fabrication schedule, all documentation approvals must be received within 2 weeks of submittal. SUB-CONTRACT ACTIVITIES: Clients wishing to engage sub-contractors on our Batu Merah facility are required to process the contract(s) through PROFAB with a cost + 12% mark up. Please note our facilities are not available to be used as a free assembly area. DESIGN & DRAWING Mechanical designs, GA drawings and detail drawing provide by Client. Shop drawing, as-built drawings prepare by Profab. All drafting will be performed using autoCAD. PREPARATION FOR SHIPMENT No packing requirement. MATERIALS All materials supplied free issue shall be supplied FOT to Profab warehouse.

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MATERIAL COUNTRY OF ORIGIN Our offer based on no restriction country of origin except China / India. MACHINING Project scope as below: Upper Mating Cone - Match Drill 64 nos. of 20 mm holes. Lower Mating Cone - Machines tapered bore approx ID 7400mm x 600 mm Height X 19.1. - Machine taper 45 from machined area x ID 7021mm. 3rd PARTY VERIFICATION Where required, 3rd party verification shall include the following scope of services. Material verification and traceability Random fit-up inspection, dimensional inspection and final visual inspection. Welding Procedures review and confirmation acceptable for the job. Welder Certificate review and confirmation acceptable for the job. NDT plan, NDT procedures & NDT personnel review and confirmation acceptable for the job. NDT results evaluated and confirmed acceptable. The fabrication was performed in accordance to the approved drawings. Hold points assumed to be limited to final inspection. Additional hold points may affect delivery. HSE POLICY PROFAB operates our Batu Merah facility to our company HSE policy and procedures, which are available on request. Our personnel do no divert from these procedures unless specifically agreed to during commercial negotiations. QUALITY INSPECTION & AUDITS All Client approved representatives shall have right of access for the purpose of inspection. Due to current workload, all audit requests will be accepted based on mutually agreed dates & times. Photographs are only permitted by written approval from the General Manager. Any photos taken without permission shall remain the property of PROFAB. INSURANCES All PROFAB insurances are available for review upon request. WARRANTY Upon acceptance of the Goods by Buyer, PROFAB guarantees to cover the Goods and workmanship for a period of 24 calendar months from delivery, or 12 months from installation, whichever occur first. This guarantee shall cover any necessary repairs at PROFAB workshop. Should this not be possible and PROFAB is required to undertake the necessary repairs at a location other than PROFAB yard, PROFAB shall pay for the additional costs incurred, unless this is for Buyers convenience, in which case the additional costs shall be bourn by Buyer. If it is determined that any such repair is not due to PROFAB workmanship, all costs shall be reimbursed by the Buyer. If for any reason it is not practicable for PROFAB to perform the work, then PROFAB may authorize the Buyer to undertake the repairs and submit to PROFAB all justifiable costs.

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