Invitation for Pre-Qualification - Bonga North Project (EPC 3) 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 Design, Manufacture, Supply of Subsea Equipment and Provision for Bonga North Project (EPC 3)

Nipex Number:
Tender Number: CW497776

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 CW497776) for the Design, Manufacture and Supply of Subsea Equipment and Provision of Healthcare support 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) and 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 on the Bonga FPSO 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 and engineering, procurement, fabrication, manufacturing and assembly, testing, maintenance and refurbishment, integration, preservation, storage and delivery to SNEPCo, offshore hook-up, installation, pre-commissioning, commissioning and start up support, and Healthcare support (aftermarket) for the Subsea Hardware Equipment:
  • Subsea 9nos Production and 8nos Water Injection – 10kpsi Tree System, 2nos Production manifolds,4 Production in-line tees, 2 Water Injection manifolds and 17nos well jumpers.
  • 1no Subsea Gas lift manifold and 2no Gas lift jumpers;
  • 1no Installation Workover Control System;
  • Associated tooling for testing and installation;
  • Hydraulic and Electrical Distribution Manifold;
  • Electrical, Steel flying and Hydraulic Flying leads for Tree Systems.
  • Subsea Control System – SCMs. Master Control Station (MCS), Hydraulic Power Unit (HPU) and Hydraulic Control Unit (HCU), Electrical Power Unit, Topside Umbilical Panel Assembly (TUPA), and Electrical Junction Box (EJB).
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 100% man-hours of Detailed Engineering through the utilisation of Engineering Services Company with COREN practicing license;
  • Respondent shall domicile 100% manhours of Project Management 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:
    • Subsea systems (not limited to Fabrication of suction piles and anchors, pigging modules, and mud-mats, Umbilical Termination Assemblies (UTA), rigid well jumpers, Xmas Trees structures, deployment frames, Subsea Control Distribution Units (S-CDUs), manifold and support structures, gas lift module);
    • Suction Piles and Anchors;
  • Respondent shall execute 100% in-country of all fabrication & assembly of Subsea Xmas Trees from flat pack as well as performing Systems Integration Testing (SIT include: Factory Acceptance Testing (FAT), Extended Factory Acceptance Testing (EFAT), Pressure testing of hydraulic and chemical tubing) in-country. These include but not limited to: -
    • In-Country fabrication of subsea tree structural frames and components:
      • Tree structural frames
      • THS structural frames
      • ROV panels
      • Guidance structures;
    • ii. Assembly of subsea tree and tubing head spool (THS) including:
      • Installation of frame assemblies on to major machined components
      • Installation of bolt-on valve assemblies
      • Installation and testing of actuators and Remotely Operated Vehicle (ROV) reach rods as required.
      • Fabrication and installation of hydraulic and chemical tubing/piping on tree
      • Installation and integration of the Subsea Control Module (SCM) into the tree system;
    • Full pressure and functional testing of tree/ Tubing Hanger Spool, including:
      • Flushing (National Aerospace Standard 6) and pressure testing of hydraulic and chemical tubing/piping on tree
      • Factory Acceptance Testing and gas testing of tree following final assembly
      • Testing and troubleshooting of Tree/SCM integration
      • Conduct Extended Factory Acceptance Testing;
    • Painting of components that are fabricated in-country and touch-up painting of assembled systems;
    • Application of insulation on tree and Tubing Hanger Spool systems;
  • Respondent shall give first consideration and provide binding Memorandum of agreement with Nigerian Indigenous service company and local vendors with valid NCEC and in-country facility to execute the terminations of components, construct, assemble and test in-country the under-listed items:-
    • Hydraulic Power Unit, Electrical Power Unit, Topsides Umbilical Panel Assembly
    • Hydraulic Flying Lead, Electrical Flying Lead etc.
  • All procurement of items not limited, paints and protective coating, sacrificial anodes, blasting abrasive grit, valves, bolts and Nuts, Laptops, 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, static & dynamic commissioning, welding of Corrosion Resistant alloy pipeline, intelligent pipeline pigging, Medivac, catering & housekeeping, helicopter/aviation services.
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/ /NCDMB/SNEPCO/ADV/UPD/260422/ Design, Manufacture, Supply of Subsea Equipment and Provision for Bonga North Project (EPC 3).