Invitation for Pre-Qualification - Bonga North Project (EPC 2) at Shell Nigeria Exploration & Production Company Limited (SNEPCo)

Posted by Future on Fri 27th May, 2022 -

Shell Nigeria Exploration & Production Company Limited (SNEPCo) invites interested and reputable contractors to indicate an expression of interest and apply for the pre-qualification of the following works:

Shell Nigeria Exploration & Production Company Limited (SNEPCo) is Nigeria’s oldest energy company, and has a long term and continuing commitment to the country, its people and the economy. Shell is a global group of energy and petrochemicals companies with an average of 93,000 employees in more than 70 countries. We use advanced technologies and take an innovative approach to help build a sustainable energy future.

Applications are invited for:

Title: Invitation for Pre-Qualification for Engineering, Procurement and Construction of Umbilicals, Flowlines, Risers and Installation Works for Bonga North Project (EPC 2)

Nipex Number:
Tender Number: CW497773

Shell Nigeria Exploration and Production Company (SNEPCo) an Operator of NNPC OML 118, invites interested and reputable contractors to indicate an expression of interest and apply for the pre-qualification, for consideration to tender (with reference number CW497773) for the Engineering, Procurement and Construction of Flowlines, Risers, Umbilicals and Installation works for the Bonga North field development Project.

The block has an area of approximately 1,200 km2 and located about 120km from the coast, in water depths ranging from 900m -1300m. The field development is a subsea tie back to the Bonga Main FPSO with a production flow loop (4 Production Drill centres), a single water injection flowline (3 water Injection Drill centres) and 2 dynamic umbilical and 1 gaslift umbilical bundle. Also included is the modification and upgrades of the topsides ancillary facilities, utilities, and control systems to facilitate the onboarding and safe operation of Bonga North field.

SNEPCo hereby invites only capable, reputable and competent Nigerian Companies (herein referred to as “Respondents”) with the requisite expertise, experience, skilled manpower and technology to be considered for inclusion for pre-qualification and thereafter shortlisting and inclusion in the bid list.

Scope of Work
The scope of work shall include but not limited to the design, engineering, procurement transportation, offshore installation and commissioning of the flowlines, risers and Umbilicals, transportation to site and installation of other project hardware delivered by EPC-3 (Subsea Hardware Contractor), which includes amongst others the following activities:
  • Installation of Flowlines (for production and Water Injection) including but not limited to tie-in to Risers, hook up to the Subsea Hardwares and Umbilicals/Controls;
  • Installation of Risers (for Production and Water Injection) including tie back to Bonga Main FPSO as a minimum.
  • Installation of the Dynamic, Static, and bundled Umbilicals including Gas Lift Riser;
  • Transportation, offshore installation and pre-commissioning of Flowlines, Risers and Umbilicals/Controls;
  • Offshore transportation, installation and pre-commissioning of Subsea Hardware for EPC-3;
  • Support the commissioning efforts of Flowlines, Risers, Umbilicals and Subsea Hardwares.
  • Subsea Facility Dimension:
    • 12’’ X 35.8 km wet insulated production flow loop (Dual line)
    • 14” x 18.4 km injection flowline (single water)
    • 2 x 1 slot Gaslift Inline Tee
    • 1 x 1 slot WI Inline Tee
    • 2nos about 36km (dynamic + static umbilical)
    • 1 Riser base Umbilical for Gas lift manifold
    • Associated umbilical termination head
Mandatory Requirements
  • To be eligible for this tender exercise, interested contractors are required to be pre-qualified and active in the Product Group: 4.05.04 (Pipeline Systems); 4.05.05 (Risers); 4.05.06 (Umbilicals) in NipeX Joint Qualification System (NJQS) data base. Only successfully pre-qualified suppliers in these categories who can also prove with requisite evidences, will receive Invitation to Tender (ITT).
  • To confirm if you are pre-qualified and view the product/service category you are listed for. Open and access NJQS with your log in 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 Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to do business, contact NipeX office at 8, Bayo Kuku Road, Ikoyi Lagos with your DPR certificate as evidence for necessary update.
  • To initiate the JQS pre-qualification process, access to download application form, make necessary payments and contact NipeX office for further action.
N/B: To be eligible, all tenders must comply with the Nigerian Content requirements in the NipeX system.

Pre-Qualification Requirements

In addition to the mandatory requirements above, only those Respondents able to demonstrate and substantiate with relevant verifiable documents of proven experience (within or outside Nigeria), available resources, and readiness to undertake the Work will be considered for the subsequent formal tendering phase. The following criteria apply to the pre-qualification of Respondents:

A.) Technical Capability & HSE Management:
  • Provide a list (with values) of all major contracts above $300MM executed within the last 5years in the Deepwater Offshore environment of 800metres water depth and potential future major projects being considered.
  • Provide evidence of Dynamic and Static Steel Tube Umbilicals designed and installed at a minimum water depth of 800 meters and in operations on previous executed project not more than 5 years. Also provide evidence of bundled Gaslift umbilical Riser System installed.
  • Provide evidence of Subsea Flowline Systems designed and installed at a minimum water depth of 800 meters and in operations on previous executed project not more than 8 years.
  • Provide evidence with detailed information on in-country owned or leased fabrication yard and facilities with a quayside hard standing length of a minimum of 150m, a minimum draft of 6m water depth, and existence/availability of at least 300MT cranage at the loadout quayside.
  • Provide verifiable evidence (completion certificate where necessary, manhours) of participation in and execution of an engineering design for the delivery of a Deepwater Flowline and Riser System at a minimum water depth of 800 meters.
  • Provide evidence of project completion certificates of participation/execution of the supply of Deepwater Line Pipe, Valves and Risers.
  • Provide evidence of company’s geographical coverage to support activities in Nigeria, including names of affiliates in different countries either owned or through alliances with design houses/fabrication yards. Details should include resource structures, size and composition of the work force (e.g., fully resourced @In-house” alliance / partnership, sub-contracted construction, etc).
  • Provide project completion certificate on Umbilicals, Flowlines and Risers installation from installation vessel in water depth of equal or greater than 800m, detailing the name and type of Installation vessel, project scope not more than 5 years.
  • Provide evidence of HSSE Management System, Social Performance (SP) Plan and Worker Welfare Management Plan for a similar executed project in the past 5 years. Details of your HSE management system shall also include incident and injury free reports, and the company interfaces with Subcontractors HSE system.
  • Provide a valid quality management system in compliance with the requirements of ISO 9001 and be certified by ISO approved and registered quality assurance company. Provide valid ISO 9001 certificate.
B.) Regulatory Compliance:
  • Address of Registered Office in Nigeria and Name of Legal Entity;
  • Registration Number & Category (include CAC Form C02 & C07 and NUPRC Permit and COREAN CERTIFICATES);
  • Provide documentary evidence of a liaison/partnership with a Nigerian registered company where any consortium partner is not registered in NipeX;
  • Name and address of the Ultimate Holding Contractor (if the Respondent is a subsidiary member of a group); Respondent’s office for this work;
  • A valid Tax clearance for the past 3 years
C.) Financial Capability:
  • Provide Company audited financial statements for the last three (3) years. Please provide translations where accounts are published in a language other than English;
  • Provide Financial Statements of Operating (not trading) Company and Ultimate Guarantor (e.g., Parent, holding companies etc.);
  • Provide confirmation letter from all financial institution(s) that have provided short-term financing to the Respondent up to US$200 million and details of existing third-party loans or guarantees (if any);
  • Provide evidence of Project Finance Plan for the executed work for the contract duration, including confirmation of financiers’ available line of credits, bank overdrafts and similar facilities;
  • Provide other significant financial arrangements and state the values: (a)Third party borrowings; (b)Inter-company loans; (c)Hire purchase agreements; (d)Government grants; (e)Debt Factoring Facility and (f)any other (please specify);
  • Provide details and potential values of any disputes currently in process with (a) Any Shell company (b) Any other Operator (Oil/Gas Company) and (c) Any other company not mentioned in (a) and (b).
Nigerian Content Requirements
The respondent must ensure full compliance with the Nigerian Oil & Gas Industry Content Development Act, 2010 as laid out in the Nigerian Content section below. Respondent should educate themselves on the Nigerian Oil & Gas Industry Content Development Act, 2010. Non-compliance will disqualify respondent from further consideration:
  • Respondent shall be Nigerian Registered Company, or Nigerian Registered Company as the contracting entity in genuine alliance or joint venture with foreign company with details on scope and responsibilities of parties for this work. Such companies must show evidence of joint venture binding agreement duly signed by the CEO of both companies including evidence or plans of physical operational presence and set-up in Nigeria;
  • Furnish details and supporting documentation of company ownership and shareholding structure. Also submit clear photocopies of your CAC Forms CO2 and CO7, registration on NOGIC JQS and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) certificate
  • Respondent shall domicile in-country through the utilisation of Engineering Services Company with COREN practicing license the under-listed engineering work scope:
    • 100% man-hours of FEED
    • 80% Man-hours of Detailed Engineering Design (inclusive of Dynamic Analysis & Global Design, Corrosion Protection Analysis, Interference Analysis, Cross Section Mechanical Design, Test Procedures, Installation Engineering, and Follow-on Engineering, Specifications, Detailed Drawings and general arrangement) through the utilisation of Engineering Services Company with COREN practicing license;
  • Respondent shall domicile 100% manhours of Project Management in-country not limited to Interface management, Project control, planning, HSSE in accordance with Nigerian content regulatory requirements
  • Respondent shall execute 100% fabrication & construction, not limited to the under-listed items in-country in a Nigerian fabrication yard:
    • Umbilical appurtenances (not limited to Reels, Subsea Umbilical Termination Interface, Lifting Spreader Bar, Top I-Tubes welded Interfaces and Bottom I-Tubes welded Interfaces);
    • Risers & Pipeline Systems (not limited to flowline jumper, risers, umbilical structure and mudmat/foundation, subsea appurtenances Flowline End Termination [FLET], Pipeline End Manifold, spools, etc), foundation, flowline subsea appurtenances (FLET, Umbilical Termination Assembly, spools, jumpers, LBMS) mudmat/foundation, Long Base Line array frames, installation aids, pipe walking anchors, pipeline and risers DJ & QJ, 100% subsea spools, 100% Subsea Isolation Valve assembly, Pig Launchers & Receivers etc);
    • Suction Piles and Anchors;
  • All procurement of items not limited Low Voltage and High Voltage cables, paints and protective coating, sacrificial anodes, blasting abrasive grit, steel ropes etc. shall be procured through vendors with in-country functional manufacturing and assembly facilities having valid NCEC for manufacturing and assemblage for the product category;
  • Utilization of only Nigerian companies for 3rd party services not limited to, QA/QC inspection & testing, Electrical and Instrumentation, Non Destructive Testing/Non Destructive Examination, mechanical laboratory test, freight forwarding, pre-commissioning, weighing & Centre of Gravity, loadout & transportation, line pipe coating, static & dynamic commissioning, welding of Corrosion Resistant alloy pipeline, intelligent pipeline pigging, Medivac, catering & housekeeping, helicopter/aviation services;
  • All line pipes (flowlines, and risers) shall be procured as bare pipes and bided exclusively only by the following NCDMB-approved Exclusive Project Acceptable Vendors list, comprising SCC Nigeria, Yulong Nigeria and Brentex;
  • All line pipe coatings (thermal + anti-corrosion) shall be performed in Nigeria from functional line pipe coating yards;
  • All line pipe appurtenances including but not limited to valves, pipe fittings, flanges, including bolts and nuts, shall be procured through vendors with in-country functional manufacturing and assembly facilities having valid NCEC for the product category;
  • For all Installation works and transportation work scope, Nigerian owned Vessel (Flotel, Installation, Diving Support Vessels, and all support vessels) shall be given first consideration. All vessels shall be hired exclusively from only vendors having valid Category of Nigerian Content Marine Vessel Certificate for the particular vessel.
N/B: Non- compliance with Nigerian Content will constitute reason not to pre-qualify the Respondent

Application Closing Date

Only those are registered and active in the NJQS in the relevant Product/Service category 4.05.04; 4.05.05; 4.05.06 as at 7th June 2022 being the advert closing date shall be invited to submit pre-qualification bid.

Additional Information
  • Suppliers eligible for this opportunity are expected to be prequalified and active in the NJQS under the relevant product/service categories.
  • 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 Shell Nigeria Exploration & Production Company Limited 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 Shell Nigeria Exploration & Production Company Limited  and or any of its partners by virtue of such companies having been prequalified in NJQS.
  • The tendering process shall be the NNPC contracting process requiring pre-qualified companies to submit technical tenders first. Following a technical review, only technically and financially qualified contractors will be requested to submit commercial tenders.
  • NNPC/ Shell Nigeria Exploration & Production Company Limited reserves the right to reject any and or all pre-qualified suppliers at its sole discretion and at no cost whatsoever.
  • Shell Nigeria Exploration & Production Company Limited  will communicate only with authorized officers of the pre-qualifying companies and NOT through individuals or Agents.
Note: This advertisement is not an invitation to tender for the above services. There is no commitment or obligation, implied or otherwise, for SNEPCo to issue a tender or enter into a contract. Participation in the pre-qualification exercise does not construe or imply any commitment to any party or entitle any party to any indemnity or any form of payment from SNEPCo

NCDMB Certification of Authorization Number: ES/NCDMB/SNEPCO/ADV/UPD/260422/ Engineering, Procurement and Construction of Umbilicals, Flowlines, Risers and Installation Works for Bonga North Project (EPC 2).