Invitation to Tender at the Shell Petroleum Development Company (SPDC)

Posted by Future on Mon 25th Oct, 2021 -

The Shell Petroleum Development Company (SPDC) invites interested and reputable Nigerian registered Insurance Companies to indicate interest by submitting tender documents for the following works:

Shell Petroleum Development Company (SPDC) is the largest fossil fuel company in Nigeria, which operates over 6,000 kilometres (3,700 mi) of pipelines and flow-lines, 87 flow-stations, 8 natural gas plants and more than 1,000 producing wells. 

SPDC's role in the Shell Nigeria family is typically confined to the physical production and extraction of petroleum. It is an operator of the joint venture, which composed of Nigerian National Petroleum Corporation (55%), Shell (30%), Total S.A. (10%) and Eni (5%). Until relatively recently. It operated largely onshore on dry land or in the mangrove swamp.

Applications are invited for:

Title: Invitation to Tender for SPDC JV Operational Insurance Policies

The Shell Petroleum Development Company of Nigeria Limited (SPDC) is seeking qualified Insurers for the Provision of Operational Insurance coverage for its Assets and Liabilities which include the following:
  • General 3rd Party Liability & Marine Hull Insurance Policies.
SPDC invites submission from reputable Nigerian registered Insurance Companies having world class experience in the provision of insurance services for major Oil and Gas companies. The proposed contract is estimated to commence in Q3 2022 and remain active for one (1) year duration, followed by two (2) one (1) year extension options.

Scope of Work
The scope of the works shall include, but not limited to the following:
  • The Insurance would cover physical loss and, or damage to the Assets, control of wells and third-party liabilities risks.
  • The Insurer shall retain 70 percent of the risk in Nigeria. 
  • The Insurer will liaise with the appointed local Broker for the purpose of good underwriting, claims administration, policy documentation, renewals, endorsement etc.
Basic Requirements

Any Insurance Company seeking to be selected must satisfy the following conditions:
  • Be a Limited Liability Company registered in Nigeria and licensed by the National Insurance Commission (NAICOM) to transact General Insurance Business.
  • Have a net asset of not less than N3 billion as per its last published Accounts for its general business.
  • Have acquired good experience in Oil and Gas insurance business.
  • Have adequate and qualified staff with experience in Oil and Gas Insurance business.
  • Must be in good standing as regards prompt settlement of all claims reported to date.
  • Must be ci good corporate citizen of Nigeria that pays its taxes as and when due.
Supporting Documentation
The interested Insurer must have the following documents: 
  • A certified true copy of the Corporate Affairs Commission (CAC) of the company's Certificate of Incorporation.
  • A certified true copy by NAICOM of the Company's License as an Insurer to transact Life and/or general insurance business.
  • Current registration with the Department of Petroleum Resources (DPR).
  • Documentation/evidence demonstrating experience in similar Oil and Gas insurance cover that Insurer has provided in the last Three (3) years (2018 to 2020), including client's names and dates of cover (please attach copies of participation slips).
  • Provide company profile indicating Nigerian Shareholding, Company’s financial details, and published annual Report and Accounts for the past Three (3) years (2018 to 2020),
  • Evidence of remitting NCD fee (with receipt) for the previous underwriting years.
  • Evidence of NAICOMs approval of Annual Retuins and Accounts for previous underwriting year.
  • A profile of six (6) top management staff of the Company with their qualifications and insurance working experience in Oil and Gas insurance business.
  • Provide evidence of qualified professional staff and training plans, and Industrial Training Fund (ITE) levy payments.
  • In case of Joint venture, an attached copy of the Joint Venture agreement and details of the Interest of each of the Joint Venture partner, the role of each party clearly indicated.
  • A signed Declaration by the Chief Executive Officer that the Company has settled all discharged claims.
  • Company’s Tax Clearance certificates for the past Three (3) years (2018 to 2020).
  • Company’s VAT registration and payment (remittance) details.
  • Give brief description of re-insurance strategy and provide names of foreign Re-Insurers and principal Brokers (please attach copies of participation slips).
  • Provide relevant information of two (2)contact persons: name, telephone, fax numbers and e-mail address.
  • Certified true copy of NAICOM approval of Recapitalization and Consolidation to continue to transact Insurance business within the Federal Republic of Nigeria.
  • Current registration with NSITF Board and evidence of payment of monthly Employees compensation levy.
  • Evidence of Group life insurance Compliance certificate for its own employees.
  • Certificate of compliance from the pensions commission (PENCOM).
Mandatory Requirements
  • To be eligible for this tender exercise, interested contractor are required to be pre-qualified as essential service vendor in 3.14.07_Non-Life Insurance Services category in NipeX Joint Qualification System (NJQS) data base. All successfully pre-qualified suppliers in this category will receive an Invitation to Technical Tender (1ff). 
  • To determine if you are pre-qualified and view the product/service category you are listed for, open and access NJQS with your login details, click on continue Joint Qualification Scheme tool, click check my supplier status and then click supplier product group.
  • If you are not listed in a product/service category you are registered with DPR to do business, contact NipeX office at 30, Oyinkan Abayomi Street, lkoyi, Lagos with your DPR certificate as evidence for verification and necessary update.
  • To initiate the JQS pre-qualification process, access to download the application form, make necessary payments and contact NipeX office for further action.
  • To be eligible, all tenders must comply with the Nigerian Content Requirements in the Nipex system.
Nigerian Content Requirements
Vendors are to demonstrate strict compliance with the provisions of Nigerian Oil & Gas Industry Content Development Act, 2010 and Insurance Act, 2003 amongst others:
  • Tenderer shall demonstrate that entity is a Nigerian-registered company with 51 % or more Nigerian shareholding capacity. Submit certified true copies of CAC forms 10, 02 & 07 (or its equivalent; CAC 2.3, 2,4, 2.5, etc). Tenderer shall provide evidence of registration with the NCDMB NOGIC JQS and DPR.
  • Provide detailed description of the location of in-country committed facilities & infrastructure (Technical/Administrative office) in Nigeria to support this contract.
  • Provide evidence of a certified true copy of the Company’s License by National Insurance Commission (NAICOM) as an Insurer to transact General Insurance business. 
  • Tenderer shall comply with the latest approved version cf NCDMB HCD guideline by commuting (via a letter of undertaking) to providing Project-Specific training, man-hour, budget, skill development and understudy plan for Nigerian personnel utilizing OGTAN registered trainer(s) or other approved NCDMB training institution(s).
Application Closing Date
8th November, 2021.

Submission of Document
Only Tenderers who are registered in the NJQS product/category; 3.14.07_Non-Life Insurance Services category as at before the above stated closing date shall be invited to submit Technical bids.

General Information
  • All costs incurred in preparing and processing NJQS pre-qualification shall be to the contractor’s accounts.
  • This advertisement shall neither be construed as any form of commitment on the part of SPDC to award any contract to any company and or associated companies, sub-contractors or agents, nor shall it entitle prequalified companies to make any claims whatsoever, and/or seek any indemnity from SPDC and or any of its partners by virtue of such companies having been prequalified in NJQS.
  • SPDC will communicate only with authorized officers of the pre-qualifying companies and NOT through individuals or Agents.