SECTION II: DOCUMENTATION AND INFORMATION
F. INSTRUCTIONS FOR PROVIDING REQUIRED DOCUMENTS
F. INSTRUCTIONS for PROVIDING REQUIRED DOCUMENTS
Cover Letter ‐ Tenderer's proposal shall contain a cover letter stating the Tenderer's understanding of the ITT supply scope, Tender validity and intent to fulfil the scope upon mutually agreed terms and conditions. Letter shall confirm that Tenderer understands that the Agreement will have a duration necessary for the drilling of one well and possibly one option well, by means of one land drilling rig. Letter shall be signed by a company representative authorized to commit the Tenderer to a future supply agreement.
1. Executive Summary ‐ Tenderer shall include a summary of the proposal that provides an overview of the system, design criteria and features that would make Tenderer's
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proposal technically superior to alternatives. A design basis should be included and summarize the system specifications and other information detailing capabilities.
2. Kurdistan Content ‐ Kurdistan Content is defined as the composite value added to, or created in, the Kurdistan Region through deliberate utilization of Kurdistan human and material resources and services in the exploration, development, exploitation, transportation and sale of Kurdistan crude oil and gas resources, so as to stimulate the development of indigenous companies, and to encourage foreign investment and participation, without compromising quality, health, safety and environmental standards.
Tenderer shall:
give preference to the purchase of Iraqi products and services whenever they are competitive in terms of price, comparable in terms of quality, and available on a timely basis in the quantity required;
employ Iraqi citizens having appropriate qualifications and shall undertake to train and prepare potential candidates towards this objective;
maximize to the greatest reasonable extent, training and technology transfer opportunities for Iraqi nationals, at all levels of Petroleum Operations including management.
Tenderers are encouraged to fully comply with any Kurdistan Government Directives as failure to comply with or demonstrate commitment to the Kurdistan Region Development may result in contractor's disqualification from this ITT.
Tenderer shall provide the following documentation with the Technical Tender:
1. Details of Tenderer and joint venture partner years in business, project history providing similar services in the Kurdistan/Iraq region (This must include company, location, whether contracting or subcontracting status, dates of work, etc.) and capacity to execute the proposed work.
2. Description of all work relating to this service that Contractor proposes could be accomplished using Kurdistan resources as well as name and address of potential companies. Past experience listed where applicable. Maximizing Kurdistan Content is a key Project priority.
3. Advise the percentage of the workscope to be conducted by Kurdistan personnel.
4. Given the brief outline of the nature of the project, what items of goods, materials, consumables or services, if any, do you envisage being procured in the Kurdistan Region?
5. Describe where your project management team and procurement centres’ will be located. Please also submit an organisation chart to substantiate this information.
6. Evidence, if projected, of an established, equipped office and operating base with a minimum of 2 years presence in Kurdistan ‐ include location and details of office and operating base communication links (i.e. land telephone, satellite telephone, email, internet, radio, etc.).
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7. Details of office and operating base capability in terms of equipment, manpower and facilities. If existing facilities will not suffice for the Work, provide description of plans in place to acquire supplementary facilities in order to handle the additional work.
3. Commercial ‐ Schedule A to D provides Tenderers with a common template for organizing and listing proposed equipment and services. Tenderer may alter the component descriptions as long as Tenderer's component performs a similar function. If the items as listed are not required or combine functionality of several components, Tenderer shall leave the item blank or note, describe or append the tables and make appropriate references so that Company can fairly evaluate the proposal based on "like‐for‐like" functionality.
3.1 Tenderer must provide in Schedule A to D the information listed below:
Description ‐ Company has only listed general descriptions for equipment, materials and personnel in Schedule A to D as guidance. Tenderer shall include relevant information as applicable including but not limited to part numbers, OD/ID, end connection, detailed specification, materials, etc. as part of the comprehensive description for each item (see note above regarding functionally equivalent components). Tenderer's failure to provide sufficient details to compare against other tenders may preclude further consideration. Tenderer is responsible to ensure that equipment proposed meets or exceeds any generalized specification provided by Company.
Tenderer shall add all equipment or items necessary to functionally conform to Tenderer’s proposed system. Where no specification is provided Tenderer is encouraged to propose the highest quality components to suit the Work.
Contractor’s Part Number – Part number assigned to equipment, personnel or material by Tenderer.
Quantity Currently Available Locally ‐ Tenderer shall note quantities currently available locally for primary and backup rental equipment and tools used to perform the Work.
Quantity Primary ‐ Tenderer shall propose recommended quantities for primary components and equipment to be located on the rig (on a per well basis) to ensure a safe, well managed operation for three rigs drilling concurrently.
Quantity Backup ‐ Tenderer shall propose recommended quantities for backup components and equipment to be located at the Tenderer's operating Base (on a per well basis) to ensure a safe, well managed operation.
Delivery Time ‐ Tenderer shall note lead times for restocking installed and consumable items routinely used and for items not stocked or available locally. Duration shall include import and delivery to vendor's onshore facility. Cycle time will be critical for meeting the rig development program.
Reconditioning and Re‐Inspection Time ‐ Tenderer shall note anticipated time required to service, inspect and/or rebuild item after use. Indicated reconditioning time to incorporate total turnaround time required from the time Company returns tool at Company Operating Base after use through the time the tool could be returned to Company Operating Base in fully inspected like new condition. Tenderer shall note components that require exportation/re‐importation for servicing due to lack of in‐country qualified
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or certified facility. Note: Cycle time will be critical for meeting the rig development program schedule.
Operating and Standby Rates – Rates shall be all inclusive and include but not be limited to mob/demob, restocking, refurbishment, assembly and testing, certificates, data books, QA/QC, project management, transport preparation, consumables and spares required to perform the Work ‐ Do Not Price within the Technical Tender, priced rates should be contained in Commercial Tender.
Replacement – Covers lost or damaged equipment or outright purchase if Company so elects.
Personnel rates – Tenderer shall note any and all personnel who may be required for performance of the work or who Tenderer foresees charging to Company. If Mob/Demob expenses for Contractor's personnel are not included in the rates quoted Tenderer shall separately quote this cost as a lump sum per person, per round trip and inclusive of airfare, mileage, expenses, travel time and accommodation.
Tenderer’s standard Middle East Price Book shall be an attachment to Schedule A, should an Agreement be awarded.
Tenderer may add tables to capture missing scope as necessary to fulfil the intended scope of work. Tenderer shall not provide any pricing information in the Technical Tender; this shall be included only in the Commercial Tender.
3.2 Commercial Notes and Assumptions ‐ Tenderer may include statements regarding the work scope to further clarify and note assumptions.
3.3 Pro Forma Invoice – Tenderer shall submit a complete sample invoice, without pricing, from a recent similar job completed with joint venture partner. All items charged in the invoice must be included in Schedule A.
3.4 Exceptions ‐ Tenderer shall use the format of the table in this Section II Table 2‐1 to note ALL exceptions to the Agreement and its Schedules including the specific location, impact to the project and proposed alternate language. If Tenderer has not taken exceptions, Tenderer shall state "No Exceptions Taken". Tenderer shall include with tender an electronic "Track Change" version of the ITT documents with proposed alternate language.
3.5 Financial Statements ‐ Tenderer shall include copies of Audited Financial Statements for the last three years
3.6 Insurance Documentation ‐ Tenderer shall include details of Tenderer insurance [amount of coverage(s), endorsements, waiver of subrogation, etc].
Kurdistan Content Value Calculation: At the commercial evaluation stage of the award process, the Kurdistan Content value of each Tenderer's submission will be a factor. Therefore, each Tenderer should populate the Kurdistan Content Breakdown Template in Table 2.2 attached below.
4. Project Execution Plan ‐ Tenderer shall include in its Tender the project management documents in this section. Some of the documents as described may strictly apply only to supply of major manufactured goods, however if Tenderer must manufacture or purchase new equipment then all will apply.
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4.1 Organization Description ‐ Tenderer shall provide an overview of the Tenderers organization including organizational charts for regional management and project.
4.2 Operational Capabilities ‐ Tenderer shall include details regarding the following:
a. Drawings of proposed drilling unit, rig plat and camp layout. Dimensions of equipment, storage and work areas should be clearly indicated.
Pictures of facility including buildings and work areas are suggested.
b. Evidence of past safe, well‐managed, operations under similar conditions and work requirements over the previous 5 years.
4.3 Resource availability schedules and documentation that show:
a. Availability to commence operations at the beginning of the 3rd quarter of 2011.
b. Evidence confirming resource availability.
4.4 Interface responsibility matrix that clearly defines where the Tenderer's scope begins and ends relative to the Company and Company’s other contractors.
4.5 Resumes ‐ Tenderer shall submit the following:
a. Copy of CVs (curriculum vitae) of Tenderer's primary and back‐up personnel proposed for positions listed in Section III, Schedule B. Clearly detail personnel's experience overseas and in Iraq and languages spoken. Sufficient CV's for each position must be provided to clearly demonstrate the capability to accommodate the volume of work anticipated supporting drilling and completion operations.
b. Documentation showing applicable qualifications, licenses, certificates and training of Tenderer’s personnel demonstrating experience supporting onshore completion activities.
c. Details and list of minimum qualifications Tenderer requires of each (personnel) position designated as necessary to perform the Work including certification and training requirements. Required for Technical Service Coordinator and each position specified in Section III Schedule B.
d. Details of Tenderer training programs for personnel.
4.6 Status Report Template ‐ Examples of project update report, if applicable, covering interface actions, variation/change order status, revised schedule, critical issues summary, etc.
4.7 Master Equipment List ‐ Master listing of equipment that indicates Company purchased items, quantity, rental items noting primary/backup quantities and interface equipment not supplied by Tenderer. Equipment included in this list should correlate with the components listed in Schedule D Tables.
4.8 Master Document Register ‐ Master document list noting all documents issued to the Company for information, approval and final documentation and milestone dates. In addition, Tenderer shall list all project specific documents generated for internal (Contractor's) approval and project execution with schedule completion dates. Tenderer may submit an
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example from previous similar projects; final list shall be issued for Company approval 14 days after contract award.
4.9 Reliability Statistics ‐ System statistics and overview of Tenderer reliability program and Tenderer’s Performance Monitoring Procedure.
4.10 Project Execution Procedures ‐ Standard operating procedures for typical execution processes including manpower capacity monitoring, resource charts, scheduling, risk assessment, etc.
5. Technical Documentation – Tenderer primarily should state the current availability status of the rig by indicating the current location and expected availability date. Component and system technical descriptions shall be comprehensive to allow for a proper and fair evaluation against alternative systems. Additional documentation shall include product data sheets, system installation and operational procedures, operational sequence, dimensions, etc. Tenderer may make section and page references if drawings and procedures have already been included in the proposal elsewhere.
6. Company Required Support for Installations ‐ Tenderer shall note any special service and access requirements that are to be supplied by Company or Company’s other contractors.
7. Additional Technical Considerations ‐ Tenderer shall note any additional considerations that are relevant to the proposal that have not been included elsewhere.
8. Quality Plan ‐ Tenderer and joint venture partner Quality Plan for the proposed equipment. Plan shall include notation of all involved party's inspection Witness, Hold points etc. Tenderer’s Quality Plan shall also cover operation and maintenance of Contractor equipment and systems. See Schedule I for additional details.
If Tenderer is unfamiliar with Company's standards and procedures, Tenderer should request clarifications from Company as required to ensure a comprehensive understanding of Company requirements prior to submitting a Technical Tender.
Tenderer shall include the following:
a. Details of Tenderer's program for reporting data for purposes of continuous improvement of Company's drilling/completions program.
b. Details of Tenderer and joint venture partner QA/QC program basis (i.e.
international quality assurance standard – ISO:14000/9001/9002)
i. Quality assurance department structure (i.e. number of personnel assigned, office locations, etc).
ii. Responsible parties for QA/QC program administration (their positions, experience, training and specific responsibilities).
iii. Specific Criteria for QA/QC including but not limited to personnel and equipment certification requirements, equipment maintenance overview, calibration details, flowcharts for MPI work, procedures for MPI work, inspection reporting documentation and training.
9. Safety, Health and Environmental Documentation ‐ Tenderer shall include the following in its HSE Documentation:
a. Overview of Tenderer's Job Safety Analysis (JSA) programs including list of operations where programs are used and details of management and personnel involvement in the JSA programs. Provide actual examples of JSAs used in the performance of similar work.
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b. Tenderer and joint venture partner statistical information for the past three (3) calendar years (2008, 2009 and 2010) for Worldwide Operations (including Iraq) and statistical information for the past three (3) calendar years for Iraq Operations only ‐ two (2) separate sets of information.
i. Exposure Man Hours are the total man‐hours that Tenderer realized during a one (1) calendar year period.
ii. Fatalities ‐ Tenderer.
iii. Lost Time Incidents are the number of incidents that the Tenderer realized in which an employee was injured on the job and unable to return to work in any capacity on the day after the injury or subsequent days after the injury.
iv. Recordable Medical Treatments are the number of incidents that the Tenderer realized in which an employee was injured on the job and the injury required a procedure that is associated with medical treatments as identified in OSHA 3000 guidelines (i.e. treatment of infection, treatment of 2nd and 3rd degree burns, application of sutures, steri‐strips in lieu of sutures, multiple dose prescription medication, positive x‐rays, etc).
c. Details of Tenderer audit and other procedures to identify and analyse deviations from HSE and quality assurance programs and how corrective actions are implemented. Include number and types of audits that have been performed within the last twelve (12) months.
d. Confirmation that Tenderer and joint venture partner Drug and Alcohol (D&A) policies will meet or exceed the requirements in Section III, Schedule I.
e. Copy of Tenderer's safety risk assessment procedure.
f. Details of how temporary and permanent changes to policies or operating procedures are reviewed implemented and communicated to all affected parties by Tenderer.
g. Details of Tenderer's system to report, investigate, analyse and document HSE incidents.
h. Copy of Tenderer's emergency response plan including details of HSE incident reporting to Company's NNPC/MPN Drilling and Completion Team.
i. Details of Tenderer's emergency response simulations and drills performed within the last twelve (12) months.
j. Copy of Tenderer and joint venture partner HSE and Regulatory compliance policies.
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Exceptions to ITT for consideration by Company
Table 2‐1: Exceptions
Item
#
Article / Paragraph Reference
Tenderer’s Reasons for Exceptions
Impact on Delivery or Price
Tenderer’s Proposed Alternative Language
1 Do not price
2 Do not price
4 Do not price
5 Do not price
6 Do not price
7 Do not price
8 Do not price
9 Do not price
10 Do not price
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Table 2.2: Kurdistan Content Breakdown
S/N PROJECT DESCRIPTION OF WORK
Value United States Dollar (US$)
Drilling Rig
Catering
Local Labour
Transportation
Security
Catering
Communication
Warehousing
Expediting‐Support Servıces
Other
TOTAL VALUE
SECTION III
Invitation to Tender: PRF‐GI‐11‐006
Technical Tender
Provision of Drilling Rig Services
Ber Bahr Block
Kurdistan Region – Northern Iraq
GENEL ENERGY INTERNATIONAL LIMITED
SECTION III
DRILLING RIG SERVICES AGREEMENT
30 May 2011
PRF‐GI‐11‐006
ONSHORE IRAQ (Kurdistan Region) DRILLING RIG SERVICES CONTRACT
between
GENEL ENERGY INTERNATIONAL LIMITED
and
________________________________
for the use of
Land Drilling Unit _______
This Agreement, dated the ___ Day of __________ 2011 is made by and between:
GENEL ENERGY INTERNATIONAL LIMITED, a company incorporated and existing under the laws of Anguilla British West Indies, whose registered office is at MAICO Building, The Valley, Anguilla, British West Indies TV1 11P (hereinafter referred to as “Company”), and
___________________________________, a company incorporated under the laws of _________ and having its registered office at
________________________________________ (hereinafter referred to as “Contractor”) of the other part.
RECITALS
Whereas, Company has a Production Sharing Contract with the Kurdistan Regional Government, Northern Iraq for the Ber Bahr Block, and desires to carry out drilling operations for the exploitation of hydrocarbons in its Permit and is willing to enter into this Agreement with the Contractor for the purpose of carrying out the same.
Whereas, Contractor is willing to furnish the drilling unit complete with drilling and other associated equipment and personnel all as detailed in the attached Schedules to this Agreement for the purpose of carrying out such drilling operations for Company .
IT IS HEREBY AGREED as follows:
1. Definitions
Unless the context otherwise requires, the following words and expressions shall have the meanings attributed to them hereunder:
1.1 “Abandonment” has the meaning assigned to it in Article 2 hereof.
1.2 “Affiliate” means, in respect to a party, any company which owns more than 50% of the share capital of that Party, or of which that Party owns more than 50% of the share capital or any company of which more than fifty percent (50%) of the share capital is owned by a company which also owns more than fifty percent (50%) of the share capital of that Party, or any company which effectively controls, or is effectively controlled by, that Party.
1.3 “Agreement” means the main body of this Agreement and the Schedules listed in Article 21 hereof.
1.4 “Commencement Date” means the date specified in Article 3.2 hereof.
1.5 “Company's Equipment” has the meaning assigned to it in Article 7.1 hereof.
1.6 “Company Representative” has the meaning assigned to it in Article 18 hereof.
1.7 “Compensation” means the rates and fees payable to the Contractor in remuneration for the Work performed hereunder, as are indicated in Article 10 hereof and in Schedule A hereto.
1.16 “Drilling Unit” means the drilling rig known as ____ together with associated equipment, the description and specification of which are contained in Schedule D
1.16 “Drilling Unit” means the drilling rig known as ____ together with associated equipment, the description and specification of which are contained in Schedule D