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SGS Industrial is pleased to announce that in July 2010 it won a contract in Indonesia to provide Vendor Assessment and Technical Audit services for Total E&P Indonesie. Chosen for its expertise in this field, Total E&P Indonesie is looking forward to the application of SGS’ extensive resources and audit protocols to its project.

Total E&P Indonesie is a 100% Indonesian subsidiary of the Paris based Total Group, having its head office in Jakarta and operational sites in East Kalimantan. Total E&P Indonesie as the largest gas producer in Indonesia, is supplying approximately 80% of the Bontang LNG plant requirements.

Total E&P Indonesie is seeking to identify qualified local vendors - as a company with many potential vendors, eradicating gaps in the systems and shortfalls in the qualification process is of the essence. SGS will be assessing and qualifying the company’s vendors through a range of thorough auditing activities, including inspection of vendor quality management systems, technical capability and vendor performance against Total’s specific and technical requirements.

SGS Vendor Assessment and Technical Audit services are designed to help clients evaluate their key suppliers. The Technical Audit and Vendor Assessments services are typically carried out at the vendor site, so as to evaluate the ability of the vendor to fulfill an order as per exact client specifications and requirements. The importance of this cannot be underestimated - the manufacturer is responsible for ensuring that vendors and suppliers meet quality standards and comply with regulations in place at the local and international level where appropriate. With vendors often having work sites at a distance from the client, independent assessment by a qualified third party becomes essential in the assurance of quality and in the evaluation of vendor capability.

In the case of underperforming or non-qualified vendors, SGS offers the chance to perform corrective action, and once this has been undertaken, reassessment is offered to the vendor.

SGS Industrial Services is pleased to announce that it has performed the first phase of assessment of sixteen vendors on behalf of Total E&P Indonesie and is now at the stage of the second phase of assessment. SGS has a team of six experts carrying out the assessments, comprising a project manager, two electrical auditors and three mechanical auditors.

A typical Vendor Assessment and Technical Audit conducted by SGS includes a quality assurance audit, certification of the vendor’s quality management system, verification of vendor human resources, hardware and other resources, assessment of vendor management structure, assessment of workload and equipment capacity, verification of techniques and workshop facilities, verification of the handling and storage of materials and assessment of material and product control.

About SGS Industrial Services

With its worldwide network of experienced and qualified engineers and inspectors, SGS is recognized as a leading global benchmark in the field of inspection, verification, certification and testing. Instilling confidence in clients, SGS ensures that the quality and performance of your product or installation meets all applicable requirements, whether they are regulatory, voluntary or client-specific.

For further information, please contact:

SGS Industrial Services
Guy Escarfail
Managing Director
SGS Indonesia

t: +62 21 7818111
f: +62 21 7818222
Website: www.sgs.com/industrial

SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognised as the global benchmark for quality and integrity. With more than 70,000 employees, SGS operates a network of over 1,350 offices and laboratories around the world.