INTENSIFICATION AND MODERNIZATION OF LOW-PRESSURE POLYETHYLENE UNIT

Investor:                                           CHEMOPETROL, a. s.
Licensor:                                         UNION CARBIDE Corp. / UNIVATION TECHNOLOGIES LLC (USA)
Execution of licence contract:      August 1998
Supplier:                                          LINDE-KCA-DRESDEN, GmbH (SRN)
Subject-matter of work:                Complete unit for low-pressure high-density polyethylene production 
                                                          with the annual design capacity of 200,000 tons
Preparation of project:                 1998-1999
Execution of contract
with the Contractor:                      November 1999
Performance:                                2000 - 2002

The project of INTENSIFICATION AND MODERNIZATION OF LOW-PRESSURE POLYETHYLENE UNIT is one of the pillars of the investment project "Intensification of Petrochemical Production Units of CHEMOPETROL, a.s.". The central point of the project consisted in the construction of a new unit for low-pressure high-density polyethylene production under the licence of Univation Technologies (U.S.A.). The project required a number of additional projects in the area of catalysers preparation, electricity and media supply, storage, packing and dispatching of the products.

The test operation of the unit started in June 2002; CHEMOPETROL, a.s. accepted the unit for permanent operation on 16.7.2002 after the successful completion of guarantee tests.

The construction was evaluated as successful.

....This is a great success of the Contractor, the Licensor as well as the implementation team of CHEMOPETROL and all persons involved in the preparation, construction and commissioning of the unit. The fact that it was not a green field project but a project of incorporation of a new unit into the already existing system with a number of related projects whose coordination with the main project was completely up to the implementation team of CHEMOPETROL makes the success even greater. The unit was constructed at decidedly lower costs than those anticipated in the feasibility study and the budget approved by the board of directors of CHEMOPETROL.... (Press Release of 23.7.2002, published on the website of CHEMOPETROL, a.s.)

The unit was commissioned in accordance with the agreed timetable, achieved all design parameters and was constructed at lower costs than those set in the binding budget.

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

• creation of an optimum strategy of acquisition of the investment design and construction,
• preparation of the bidding documentation, including harmonization of terms of the future contract with those of the executed licence contract, including the transfer of the licensor's warranties to the contractor of the work, in form of a tripartite agreement,
• clarification and evaluation of bids,
• contractual negotiations,
• performance of activities in the management of the project/construction on behalf of the investor, including:
  
  
  • 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
  • schvalování fakturace,
  • checking of compliance with timetables
  • checking of compliance of invoices with contractual terms and actual progress of the work
  • 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.