EXTRANCHECK: POST-SHIPMENT VERIFICATION: AKER KVAERNER

UNCLAS NEW DELHI 001437

SIPDIS

USDOC FOR 532/OEA/M. NICKSON-D/JAY HATFIELD
USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL
USDOC FOR 4530/MAC/ANESA/OSA
ICE HQ FOR STRATEGIC INVESTIGATIONS
STATE FOR EB/ESP

E.O. 12958: N/A
TAGS: BEXP ETRD ETTC IN
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: AKER KVAERNER
POWER GAS LIMITED (D355666).

REF: USDOC 03123


1. Unauthorized disclosure of the information provided below is
prohibited by Section 12(c) of the Export Administration Act.


2. On May 21, 2008, Export Control Officer (ECO) Paul Cushman and
BIS FSN Shailendra Srivastava conducted a Post-Shipment Verification
(PSV) at Aker Kvaerner Power Gas Limited (AKPG),Mumbai.


3. BIS requested a PSV at AKPG, a private sector company located at
Power Gas House, 177 Vidyanagari Marg, Mumbai. AKPG was listed as
the ultimate consignee and SMD Pumps & Engineering Limited (SMDP) as
the intermediate consignee for one Magnetic Drive Centrifugal Pump
(Model UC-1516) manufactured by Finish Thompson Inc. of Erie,
Pennsylvania. Export License: D355666. ECCN: 2B350.


4. ECO and FSN Srivastava met with Mr. Gaurav Kumar, Manager -
Project Procurement, AKPG, in a conference room at Power Gas House.


5. Kumar was not aware of BIS regulations and this was the first
visit by BIS officials to his facility. Kumar provided copies of
documents pertaining to this transaction including AKPG Purchase
Order on behalf of SMDP, SMDP Commercial Invoice, Delivery Challan,
and Packing List. Kumar stated that the pumps had been installed at
Tamil Nadu Newsprint & Papers Limited (TNPL),a paper manufacturer
based in Chennai.


6. Kumar went on to explain AKPG's role in this transaction. AKPG
is a start-to-finish contracting firm. Customers come to them with
a set of functional requirements. AKPG then designs a facility to
meet those requirements and manages the procurement of all necessary
equipment and materials which are drop-shipped to the construction
site. Lastly, AKPG supervises the construction of the facility by
numerous subcontractors. SMDP installed this pump and it became
operational in early 2008.


7. Kumar confirmed the stated end-use. He explained that the pump
is used by TNPL to transfer hydrochloric acid from storage tanks to
a plant where it is converted into chlorine dioxide. Chlorine
dioxide is used as a bleaching agent in the paper manufacturing
process.


8. Established in 1973, Aker Kvaerner Power Gas Limited is the
engineering and construction division of Aker Solutions which serves
the Oil & Gas, Refining & Chemical, Mining, and Power Generation
industries. AKPG has approximately 1,100 employees.


9. Recommendation: Based upon a review of documents and information
provided by Aker Kvaerner Power Gas Limited, it appears that this
controlled technology is being used by a legitimate end-user in a
manner consistent with the Export Administration Regulations.
However, because a physical inspection of the item could not be
performed, this Post-Shipment Verification remains inconclusive.
MULFORD