I. stage Investor:

CHEMOPETROL, a. s. Licensor: TECHNIP BENELUX B. V. - Nizozemsko Execution of the contract for work: leden 1999 Contractor: LINDE-KCA-DRESDEN, GmbH (SRN) Subject-matter of work: ETHYLENE UNIT INTENSIFICATION - I. stage Preparation of event: 1998 Performance: 1999 - 2002

The ethylene unit in CHEMOPETROL, a.s. Litvínov constructed under the licence of the U.S. Union Oil Company of California Inc. and Lummus Crest Inc. started operation in 1980. In 1997 after seventeen years of operation of the unit CHEMOPETROL, a.s. decided to increase gradually the capacity of the unit in three stages by means of revamping of the existing technology.
The revamp followed these main targets: to increase the output of ethylene and propylene, to overcome the bottlenecks of the original project, to solve the outlet problems of heavier fractions and to achieve their higher value.
In December 1997 CHEMOPETROL, a.s. started the competition for the revamp contractor. J.P.M. INTERNATIONAL s.r.o. joined the project in April 1998 in order to provide the necessary cooperation in the completion of the bidding procedure, evaluation of bids, negotiation of the bidding terms and negotiation of the contract. In January 1999 CHEMOPETROL, a.s. signed the contract for work with the Dutch company Technip Benelux B.V. and a separate contract for the financing of the project. During the shutdown in August - September 2000 the essential technological plants (new steam turbines, revamped cracking furnaces BA-101 and BA-103, revamped wash column, revamped predemethanization unit, new hydrogen production unit) were installed and successfully commissioned. The revamped cracking furnaces were installed and successfully commissioned in 2001. The capacity test of the project EHTYLENE UNIT INTENSIFICATION - STAGE I was conducted in September 2002 when the complete project was accepted by CHEMOPETROL, a.s. for permanent operation.

The plants were commissioned in accordance with the agreed timetable, achieved all design parameters and the costs of construction corresponded with the budgeted ones.

The task of J.P.M. INTERNATIONAL included:

• creation of an optimum strategy of acquisition of the investment design and construction
• finalization of the bidding documents
• clarification and evaluation of bids
• contractual negotiations
• performance of activities in the management of design/construction on behalf of the investor including:
  
  
  • cooperation in the setup and operation of the site computer documentation centre (filing, distribution and keeping of correspondence, all design revisions and all documents, manuals, certificates, opinions and decisions made by public authorities, etc.)
  • preparation/finetuning of procedures and manuals (change procedures, correspondence, setting the value of completed works and supplies, project documentation filing and handling system, distribution and flow of documentation and correspondence within the investor's project team, etc.)
  • allocating and checking of tasks arising from regular meetings of the project team and with the contractor
  • verification, opposition and approval of documentation in all stages of documentation prepared by the contractor
  • evaluation of the progress of design works, procurement and construction and their compliance with the terms of executed contracts
  • approval of invoices, checking of compliance of invoices with contractual terms and actual progress of the work
  • checking of compliance with timetables
  • handling/approving of correspondence and administrative work
  • support to the investor in commissioning of the unit
  • support in evaluation of guarantee tests, preparation and discussion of protocols (mechanical completion, introduction of hydrocarbons, test operation, guarantee tests, handover and acceptance)
  • documentation for passing the title onto the investor
  • cooperation in creation of local operation rules
  • checking of removal of defects and unfinished works and handling of claims.