exhibit 1: specifications of turn -key based … · turn -key based contract of shallow...

NATIONAL OIL

Shallow Stratigraphic Well Drilling in Block 14T

SPECIFICATIONS

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EXHIBIT 1:

SPECIFICATIONS

OF

TURN-KEY BASED CONTRACT OF

SHALLOW STRATIGRAPHIC WELL

DRILLING IN BLOCK 14T

NATIONAL OIL CORPORATION OF

KENYA

NATIONAL OIL SPECIFICATIONS Shallow Stratigraphic Well Drilling in Block 14T

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The Specifications of the Shallow Stratigraphic Well Drilling in Block 14T

1 Subject Shallow Stratigraphic Well (s) and Borehole Measurement in Block14T around Magadi Area

in Kenya.

2 Purpose National Oil Corporation of Kenya (hereinafter referred to as the Company) is exploring

for oil and gas in Block 14T in Magadi area, Kenya. This work is performed in order to

obtain the information of subsurface geology in the region.

3 Works 3.1 To drill two (2) Shallow Stratigraphic Wells (hereinafter referred to as the Drilling Works).

3.2 To carry out Wireline logging (hereinafter referred to as the Wireline Logging Works).

4 Location 4.1 The Drilling Works is planned in the Western part of Magadi area as shown in the

Attached Map 1. The detailed positions of the wells shall be shown to the awarded

Contractor upon execution of a Confidentiality Undertaking with the Company.

4.2 The subsurface geology of this region appears to be composed of clastic and volcanic rocks

that are partially compacted as per the geological survey and the information of oil and

gas explorations around Block 14T.

5 Entry Qualifications 5.1 If the Contractor itself cannot provide the wireline logging services, Sub-Contractors shall

be appointed by the Contractor to carry out the Drilling Works and the Wireline Logging

Works.

5.2 The Contractor shall execute the Confidentiality Undertaking with the Company as

provided in the Appendix 1.

5.3 The Contractor shall have the ability to drill to depth more than 500 m.

5.4 The Contractor shall have experience in conducting the drilling of stratigraphic wells of

more than 200 m in depth and attach the evidence of previous work done (as reference

information).

5.5 The Contractor shall have a Health Safety and Environment (HSE) document relating to

the Drilling Works, and it is to be attached in the proposal.

6 Liability for the Works 6.1 The Contractor shall bear all liability arising from execution of the Drilling Works and

Wireline Logging Works (hereinafter referred to as the Works) including but not limited

to injury claims, third party property damage or other loss or damage arising there

from.

7 Insurance 7.1 The Contractor shall submit the list of certificates of all affiliated insurances relating to

the Works for entire contract period and avail proof of payment of requisite premiums prior

to commencement of the work.

8. Basic Provisions of the Works 8.1 Accommodations

8.1.1 The Contractor is responsible for bearing the costs of utilizing or arranging for site


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office, camps, other facilities and transport. In addition, the Contractor shall

prepare accommodations for some Company staff.

8.1.2 The Contractor shall prepare the cost estimation based on the situation shown in

this Exhibit 1.

8.2 Consumables

8.2.1 All the tangible & intangible consumables relating to the Works shall be

included into the proposed costs for the Drilling Works and Wireline Logging

Works.

8.3 Working Hours

8.3.1 The Drilling Works shall be done on a 24 hour basis. The working shift may be

arranged by The Contractor provided that each shift shall not exceed 12 hours.

8.4 Schedule

8.4.1 The Company expects to commence the Works in November, 2016.

8.4.2 The Contractor shall finish preparations of instruments (ex. Rigs, others), such as

mobilization, and primary inspection of the location before commencement of

the Works provided that it shall be after signing of contract.

9. Drilling Works

9.1 Mobilization and De-mobilization of the equipment

9.1.1 The Contractor shall be responsible for complying with laws and regulations on

environmental permission.

9.1.2 The Contractor shall be responsible for mobilization and demobilization of the

equipment and staff required to commence the work on time (including custom

clearance).

9.1.3 The Contractor shall be responsible for logistics and transportation of the

equipment to ensure accessibility to the site on time (This shall include pre-site

visits to confirm requirements).

9.1.4 The Contractor shall be responsible for site remediation immediately after the

drilling operations.

9.2 Water supply

9.2.1 The Contractor shall be responsible for facilitating water supply required for the

Drilling Works. Any relating cost has to be included into the operational cost.

9.3 Location survey

9.3.1 Location survey using GPS shall be accurately carried out by the Contractor with

the Company. A high performance GPS shall be availed by the Contractor.

9.4 Drilling Specifications

9.4.1 The Company plans to drill two (2) vertical wells. The geology of subsurface is

estimated that one is volcanic rock dominance, the other one is sedimentary rock

dominance.

9.4.2 The total (cumulative) drilling depth is planned to be 1,000 m for the two wells.

9.4.3 The drilling depth of each well is basically planned up to 500 m.

9.4.4 The Contractor shall have an up to date certification by International Association

of Drilling Contractors (IADC) and or the equivalent. Sub-Contractor's personnel

shall have current certification by accredited international drilling

organizations/body (IWCF, WellCap etc).

9.4.5 The core has to be fully sampled from the drilling depth of approximately 100m to

500m in the two wells. From the ground surface (0m) to the drilling depth of

approximately 100m, the lithological analysis is examined by cuttings.

9.4.6 The Contractor shall wash and preserve cuttings samples every 5m from the

ground surface (0m) to the drilling depth of approximately 100m in each well, and

send it to the Company Laboratory.

9.4.7 The "Stick-up" method of drilling depth determination shall be used. Stick-up

measured from the ground surface (and not from the rotary table [RT] and/or


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Kelly bushing [KB]) to the downhole end of the drill string and/or bottomhole

assembly [BHA] (including bit, core barrel, rods and couplings).

9.4.8 The Company accepts any types of rig (skid-type rig, truck-mount rig, etc.),

however, the specifications or past performance records need to be submitted to

ensure the successful completion of drilling (and coring) work.

9.4.9 Core shall be cut throughout the sections specified in 9.3.5 unless any critical

operational situations are encountered. In case of difficulty to continue coring

operation, the Contractor or the Sub-Contractor shall discuss with the Company.

9.4.10 The hole diameter shall be between 51mm to 151mm for Check-shot survey.

9.4.11 Core diameter shall be 50 mm or larger throughout the section.

9.4.12 Casing program shall fulfill the above-mentioned specifications

9.5 Treatment of Well(s) after Drilling

9.5.1 The Contractor shall be prepared to install well head assembly and relevant

instrument after drilling operation for potential conversion to a water well. Any

relating cost has to be included into the operational cost.

9.5.2 The Contractor shall backfill the well with cement/sand mix or bentonite/cement

mix, and completely level/remedy the ground for abandonment following the

regulations unless the operation specified in 9.5.1 takes place.

9.6 Core handling

9.6.1 The Contractor shall prepare and present a detailed coring (retrieval/handling)

programme for approval by the Company.

9.6.2 Core shall be carefully extracted from the core barrel using a method approved by

the Company in order to prevent destruction or fragmentation of during

transportation.

9.6.3 The Contractor shall mark the sample depth, check the lithology and take core

color photographs after putting the samples into the core box.

9.6.4 Core losses shall be marked in the correct position (not at the end of the run) with

a red block of the same length as the core loss. The block shall be marked "core

loss" and the core loss depth interval given.

9.6.5 Where samples are taken from the core box they shall be replaced with a yellow

block of the same length as the sample. The block shall be marked "sample" and

the same depth interval given.

9.6.6 Unpainted blocks (stabilizers) shall be used to prevent core moving within partly

filled core box partitions.

9.6.7 All block markings shall be legible on the core photographs.

9.7 Core boxes and Storage

9.7.1 The core boxes shall be of robust construction with a lockable lid (to prevent core

distribution/loss during transportation) and partitions spaced to suit the different

core sizes. The Contractor shall provide the handles to assist transportation of the

boxes.

9.7.2 The inside of the lid and at least one end of the box shall be clearly and indelibly

marked with the project name, well number, box number (e.g. 5 of 10) and core

depth interval.

9.7.3 Core boxes shall be kept off the ground and dry while at the drill site.

9.8 Core photographs

9.8.1 Color digital photographs shall be taken for all the core boxes.

9.8.2 A title board showing the project name, borehole number, depth interval, a color

reference chart and liner scale graduated in 100 mm lengths in black and white.

10. Wireline logging Works


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10.1 Wireline logging specifications

10.1.1 The Contractor or the Sub-Contractor shall carry out Wireline logging

(Temperature Measurement and Gamma Ray), after reaching to TD (bottom hole).

10.1.2 The logging section is at the drilling depth from approximately 100 m to 500 m in

the open holes.

10.1.3 If the Contractor consigns a Wireline logging to the Sub-Contractor, the

Contractor shall submit the certification of the Sub-Contractor to the Company.

10.1.4 If the Contractor consigns a Wireline logging to the Sub-Contractor, the

Contractor shall supervise the Sub-Contractor during the operation at all time.

10.1.5 The logging tools shall be prepared by the Contractor or the Sub-Contractor.

11. Check-shot survey Works (For Contractor’s information) 11.1 Check-shot survey

11.1.1 Check-shot survey is also planned to be conducted after the above-mentioned

logging.

11.1.2 All of the holes shall be cleaned by the Contractor or the Sub-Contractor before

downloading the geophone. The Contractor or the Sub-Contractor shall also wash

out the mud and gravel from bottom of the holes.

11.1.3 A surface impulse energy (PEG-40 or Dynamite, selected on basis of energy

level) is placed near the hole (e.g. 3m) and a land geophone with special coupling

device is placed against the hole wall. The sensor will move a specified interval

starting from the bottom of the hole once a shot is taken. Survey configuration is

described in Figure 2.

Figure 2. Downhole UPHOLE Configuration


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12. Personnel 12.1 Expert

12.1.1 The Contractor shall prepare and submit the curriculum vitae (CV) of experts

including the Drilling Works (drilling supervisor, driller, geologist (s),

Wireline logging technician) and relating to the Works.

12.1.2 The person in charge shall have the ability and the experiences to integrate

all activities relating to drilling, wireline logging, check-shot survey and HSE.

12.2 Sub-Contractor

12.2.1 As above, the Contractor is allowed by the Company to hire Sub-Contractors

for the Wireline Logging Works.

12.2.2 The Contractor shall be responsible for Sub-Contractor activities.

12.2.3 The Contractor shall make a list of personnel, certification, certificates of all

affiliated insurances and the CVs of Sub-Contractors and submit them to the

Company.

13. Health, Safety and Environmental Procedure

The Occupational Health, Safety and Environment (HSE) policy and procedures described in

this Exhibit or that may be introduced by the Company during the term of this Exhibit shall

apply equally to the Contractor and it’s the Sub-Contractors. The Contractor shall be

responsible for implementation of and compliance with the HSE procedures and policies by all

personnel and equipment including those employed by it’s the Sub-Contractors assigned to the

services.

13.1 HSE basic provisions for the Drilling Works

13.1.1 HSE provisions should be quoted as necessary from the document relating to HSE

policy prepared by the Contractor.

13.1.2 The Contractor is responsible for the overall HSE policy subject to approval by

the Company.

13.2 Waste water handling for the Drilling Works

13.2.1 Environmental Impact Assessment (EIA) study or reporting is not necessary in

Kenya for geotechnical work, however the waste mud, chemicals and fluid during

and after the operations shall be disposed in accordance with the Kenya's

regulations.

14. Filing documents required for the bidding 14.1. The Company profile of the Contractor

14.2. The Contractor’s proposal

14.2.1. Work program (Detailed work schedule)

14.2.2. Well schematics (Casing program, borehole diagram)

14.2.3. P & A procedure.

14.2.4. Turn-Key based Bid price (Break down for cost estimation) i.e. refer to financials -

Appendixes 3A and 3B bills of quantities - BoQs

14.3. The signed Confidentiality Undertaking in the Appendix1

14.4. Requirements to be included in the bid documents: (Appendix 2C)

14.4.1. List of the experiences to conduct the drilling of more than 500 m in depth

(Refer to Appendix 2A) and technical details & requirements (Appendix 2B &

2C)

14.4.2. HSE document related to the Drilling Works

14.4.3. All affiliated insurances relating to the Works

14.4.4. List of personnel and the CVs for key personnel of the Contractor

14.4.5. List of personnel and the CVs for key personnel of the Sub-Contractor

15. Reports by the Contractor 15.1. Preparing reports

15.1.1. The reports shall be prepared by the Contractor in close consultation with


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the Company.

15.2. Report format

15.2.1. The reports shall be written in English, and provided in Microsoft word.

15.2.2. Paper size for the reports shall be A4, and shall be printed in color on double-

sided paper.

15.3. Reporting for the Drilling Works

15.3.1. Daily drilling report with core or cuttings (lithological) logs.

The Contractor or the Sub-Contractor shall submit the daily report to the Company

by 0600hrs East Africa Time the next day.

Hard copy shall be attached in the Geological completion report as an exhibit.

15.3.2. Well completion report (drilling operations)

The configuration of the reports will be in the following order: cover, preface,

contents, digest, body, summary and attached paper.

The formatting is to be provided by the contractor for approval by the Company.

The Contractor or the Sub-Contractor shall submit the final drilling operation

report to the Company within one month after the completion of operation.

15.3.3. Geological completion report (including wireline logging, grain size distribution

analysis)

The compilation of the reports is in the following order: cover, preface, contents,

digest, body, summary and attached paper

The formatting is to be provided by the Contractor or the Sub-Contractor for

approval by the Company. The Contractor or the Sub-Contractor shall submit the

final geological report to the Company within two month after the completion of

operation.

16. Deliverable Final Product

16.1 Deliverable Final Product for the Drilling Works

16.1.1 Four sets of well completion report geological completion report, wireline logging,

laboratory analysis and their digital data (soft copies) that are recorded on

DVD/USB are forwarded to the Company (Address is written above).

16.1.2 A series of core samples stored in the core boxes are transported to the Company

laboratory immediately after the end of drilling operation.

16.2 Shipping Instructions

All deliverables shall be shipped to the Company’s Nairobi office:

Exploration Manager

NATIONAL OIL CORPORATION OF KENYA

AON Minet House

Mamlaka Rd, Off Nyerere Rd 7th Floor

P.P. Box 58567 – 00200, Nairobi

Kenya.

or any other destination, upon written instruction from the Company’s Field

Representative

17. Others 17.1. The Contractor shall provide the following cars and drivers with the Company during the

contract period. The relating cost needs to be included in

17.1.1. one (1) 4WD car for the Drilling Works.

17.1.2. one (1) 4WD car for the wireline logging Works.

17.2. The contractor shall pay attention to maintain a good relation with the local communities

around the Location.

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NATIONAL OIL SPECIFICATIONS

The Shallow Stratigraphic Well Drilling in Block 14T

Attached Map 1. Map of location

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Confidentiality Undertaking

To: National Oil Corporation of Kenya ("NOCK")

AON Minet House, 7th floor off Nyerere Road, Nairobi, Kenya.

Subject:

“Work for The Shallow Stratigraphic Well Drilling in Block 14T in Magadi region in Kenya”

We, [insert name of entity], a company incorporated under [insert jurisdiction] and having its registered office at

[insert the registered address], is interested in submitting a proposal to NOCK in response to the request for

proposal dated MM/DD, 2016 for the “The Shallow Stratigraphic Well Drilling in Block 14T in Magadi region in

Kenya” (“Work”), and is willing to receive the document that is “The locality for the drilling”.

In consideration of the receipt of the document from NOCK, we agree and undertake to keep the document and

will not disclose to anyone except to such employees involved in tender preparation, in any manner without the

prior written consent of NOCK.

We will use the document and the Confidential Information only for the preparation of the proposal (“Proposal”).

We acknowledge that the documents and the Confidential Information belong to NOCK and we will not acquire

any proprietary interest or right to the document and the Confidential Information.

We will destroy the document and any copy of the Confidential Information in our possession and in the

possession of any person to whom we disclosed the Confidential Information, in the event that:

a. NOCK requests us in writing to proceed with such the destruction;

b. We decide not to make the Proposal to NOCK;

c. We do not submit the Proposal by the date specified in the NOCK by which date the proposal must be

submitted to NOCK; or

d. NOCK informs us in writing that NOCK does not award the contract for the Work to us.

This Confidentiality Undertaking is made as a deed and is governed by the laws of Kenya and shall expire upon

the occurrence of one of the events described here above and any event 06 months after the date hereof.

Date: Signed:

····································· (Signature)

····································· (Printed Name)

····································· (Title)

Appendix 1

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NATIONAL OIL SPECIFICATIONS SUBSURFACE GEOLOGICAL SURVEY IN BLOCK 14T

APPENDIX 2A CONTRACTOR’s EXPERIENCES OF DRILLING

The Contractor shall provide list of the experiences to conduct the drilling of more than 500 m in depth.

No COMPANY/CLIENT

FIELD

AREA

PROJECT

NAME/DESCRIPTION

DRILLING

DEPTH YEAR

DURATION

(MONTHS)

CONTRACT

VALUE (US$)

CONTACT

PERSON

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APPENDIX 2B TECHNICAL DETAILS AND REQUIREMENTS (TECHNICAL QUESTIONAIRE)

The Contractor shall provide response to each of the questions set out below as "Rig Tech Spec Details"

# - NO DESCRIPTION RESPONSE Point Point (Max)

20.0

REMARKS

(Y / N)

1.0 Rig Maximum Depth Rating

1.1 PQ (Core Diameter 85mm) - (minimum 400m) 1

1.2 HQ (Core Diameter 63.5mm) - (minimum 600m) 1

1.3 NQ (Core Diameter 47.5mm) - (minimum 800m) 1

1.4 BQ (Core Diameter 36.4mm) - (minimum 1050m) 1

2.0 Rig Rating in Tons

2.1 Dual Rotary Capability (Y / N) 2

2.2 Top Drive Hoist Capacity Pull Back (20 - 40) Tons 1

2.3 Top Drive Hoist Capacity Pull Down (10 - 20) Tons 1

2.4 Lower Drive Hoist Capacity Pull Back (30 - 50) Tons 1

2.5 Lower Drive Hoist Capacity Pull Down (10 - 20) Tons 1

2.6 Non - Dual Rotary Capability (Y / N) 1

2.7 Top Drive Hoist Capacity Pull Back (20 - 40) Tons 1

2.8 Top Drive Hoist Capacity Pull Down (10 - 20) Tons 1

3.0 Rig horse power rating / range (200 - 350) HP 1

4.0 Rotary speed range (1000 - 1500) RPM 1

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5.0 Closed Circulation System Tank Farm (Y / N) 1

6.0 Mud pump rating (250 - 400) PSI 1

7.0 Mud pump rating (30 - 60) GPM 1

8.0 Tool winch rating (8 - 15) Ton 1

9.0 Wireline winch rating (1 - 5) Ton 1

Total 20.0%

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APPENDIX 2C NON-RIG TECHNICAL DETAILS AND REQUIREMENTS (TECHNICAL QUESTIONAIRE)

The Contractor shall provide response to each of the questions set out below as "Non-Rig Tech Spec Details"

Technical Aspects (General) Description (Band) Point Point

(Max)

80.0

Remarks

1. Company Structure

15.0

Drilling Wells more than 500Metre Depth 4.0

Wireline logging 4.0

Grain size distribution analysis 4.0

Integration of all activities related to well drilling, wireline

logging and geology 3.0

2. Statutory requirements

15.0

Company registration 2.0

Valid Practice License 5.0

All affiliated insurance cover for drilling equipment,

Employers Liability, Work Injury Benefits act, Public

Liability

3.0

Valid Company Registration with International Association of

Drilling Contractors or any other relevant certified

International Drilling Body

5.0

3. Qualifications of Personnel

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Drilling supervisor ≥10 years (4 points) <10 years (2

points)

4.0

Driller ≥5 years (3 points) <5 years (1

points)

3.0

Geologist ≥10 years (3 points) <10 years (2

points)

3.0

4. Company Drilling Experience

15.0

Experience of drilling wells to a minimum depth of 200m in

Kenyan Environment

≥2 wells (5 points) <2 wells (3

points)

5.0

Experience of drilling wells to a minimum depth of 200m

outside Kenyan Environment

≥2 wells (10 points) <2 wells (5

points)

10.0

5. Bidder Proposed work program must show : (Bidder to

refer to Exhibit 1: Specification for Shallow Well Drilling)

15.0

Detailed Work schedule 5.0

Well drilling Schematics 5.0

Wireline logging 3.0

Plug & Abandonment procedures (P&A) 2.0

6. Health and Safety Procedures : (Bidder to refer to Exhibit 1:

Specification for Shallow Well Drilling item 14)

10.0

General requirements on HSE management 2.0

Occupational safety requirements

2.0

Occupational health and industrial hygiene requirements 2.0

Environmental protection requirements 2.0

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Roles and responsibilities 2.0

TOTAL 80.0%

exhibit 1: specifications of turn -key based … · turn -key based contract of shallow...

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