OIL INDIA LIMITED (A Govt. of India Enterprise) RAJASTHAN PROJECT JODHPUR

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1 OIL INDIA LIMITED (A Govt. of India Enterprise) RAJASTHAN PROJECT JODHPUR ANNEXURE-AA Sub: - Detailed Text for inviting Expression of Interest (EOI) against EOI No. OIL/RP/EOI/003/2013 dated for short-listing of contractors for hiring services of a Drilling Rig-Package for drilling exploratory wells in NELP-VII Block in Rajasthan, India. OIL INDIA LTD (OIL), a premier National Oil Company, is engaged in the business of exploration, production & transportation of crude oil and natural gas for over five decades. It is a Navaratna Company under Ministry of Petroleum and Natural Gas, Government of India and the second largest National Oil Company in the country. In Rajasthan, OIL is engaged in exploration in NELP Blocks in addition to production of natural gas. Oil India Limited (OIL), as Operator and on behalf of its JV partners in NELP-VII Block: RJ-ONN-2005/2 located in Jaisalmer district in Rajasthan invites Expression Of Interest (EOI) for meeting prequalification criteria for empanelment/short-listing of contractors for issue of tender document for hiring services of a HP capacity mobile onshore Drilling Rig-Package to carry out its exploration activities in the above NELP Block from prospective parties as mentioned below. 2.0 PROJECT INFORMATION: As per committed MWP to the Govt. of India, Oil India Ltd. (OIL), being the Operator in the above-mentioned NELP block, has to drill five (5) nos. onshore exploratory wells within the stipulated time frame. It is proposed to charter hire a mobile Drilling Rig- Package of 750 HP (minimum) to 1000 HP (maximum) capacity for an initial period of six (6) months with provision of extension by another six (6) more months (maximum or part thereof) at the same rate, terms & conditions at various sites in the Thar Desert covered with sand dunes in western part of Jaisalmer District in the state of Rajasthan, India. General Description of the Area: i) Topography of site: The site is a part of Thar Desert. ii) Presence of sand dunes: Common occurrence in the vicinity. iii) Nature of top soil: Usually wind-blown sand. iv) Highest recorded wind velocity: 128 kmph. v) Frequency of sand storm: Frequent from March to September and occasional during the remaining period of the year. vi) Maximum recorded ambient temperature: 54 deg.c vii ) Minimum recorded ambient temperature : (-5) deg.c viii) Average rain fall: 1 (25 mm) ix) Humidity: Maximum 40 % x) Nearest city: Jaisalmer/ Bikaner xi) Nearest airport: Jodhpur. 1

2 3.0 GEOLOGY OF THE AREA: 3.1 The area of operation falls in the Thar Desert covered with sand dunes of Western Rajasthan. The geological formations expected to be encountered in the proposed wells of Block: RJ-ONN-2005/2(NELP-VII) area are unconsolidated to semi-consolidated Alluvium and Shumar with clay bands (Recent to Pleistocene) to a depth varies from m, shallow marine fossiliferous Limestone & Sandstone of Bandah formation (Eocene) to a depth varies from m, Shale and Foraminiferal Limestone/Coarse blanket type Limestone of Khuiala and Sanu formations (Paleocene) to a depth varies from m, fossiliferous Marl and fossiliferous Sandstone of Parh and Goru formations (Upper Cretaceous) to a depth varies from m, alteration of Sandstone and Shale of Pariwar formation ( Lower Cretaceous) to a depth varies from m, and marine Shale with Sandstone of Badesir-Baisakhi formation, marine Limestone and Sandstone of Jaisalmer formation of Jurassic age to a adepth varies from m. The proposed wells may be terminated at Badesir Baisakhi/ Jaisalmer formation. 3.2 Temperature v/s Depth Profile: Geothermal gradient for OIL s gas producing Jaisalmer Field area is in the range of deg.c/km. The surface temperature varies from 0-54 deg.c. 3.3 Sub-Surface Pressure: Anticipated sub-surface pressure in the reservoir and TD down to the Jurassic reservoirs is expected to be hydrostatic. 4.0 LOCATION OF THE AREA: The block: RJ-ONN-2005/2 is situated in the Rajasthan state and covers an area of 1517 sq km. Jaipur is the Capital city of Rajasthan and is well connected to other places in India by air, road and railways. The nearest international airport is located in New Delhi,the Capital city of India. The proposed area lies in between the following broad coordinates: Coordinates of Block :RJ-ONN-2005/2 Latitude (N) Longitude (E) Points Deg. Min. Sec. Deg. Min. Sec. A B C D E

3 F G H A BRIEF SCOPE OF WORK: Drilling of five (5) numbers of onshore exploratory wells initially of depth ranging from 1100m to 2500m through charter hire of a 750 HP (minimum) to 1000 HP (maximum) mobile Drilling Rig-Package including a suitable Effluent Treatment Plant (ETP) & Mud Engineering Services excluding chemicals but including standard mud testing laboratory for an initial period of six (06) months with provision of extension by another six (06) more months (maximum or part thereof) at the same rate, terms and conditions, in desert area of Western Rajasthan. The wells will be vertical/deviated with formation pressure near or above hydrostatic. The area is covered with mostly windblown sand and extreme weather environment under Jaisalmer basin, logistically remote from District head quarter/cities in the NELP block (RJ-ONN-2005/2) in the state of Rajasthan, India. However, the number of wells & well depth may vary at the discretion of the company. 6.0 DRILLING RIG: 6.1 The Bidder shall have to be in possession of the Rig-Package to be offered either owned or leased. In case, the Bidder is not in possession of the Rig-Package at the time of submission of EOI, he may offer a Rig-Package for which he intends to have an agreement for lease/buy. 6.2 The horsepower rating of the Rig-Package should be minimum 750 HP maximum 1000 HP. Further, the Rig should be diesel-electric, having self-elevating mast and sub-structure (as per API standard)). The Rig-Package should have to be equipped with proper Effluent Treatment Plant & Mud Engineering Services including standard mud testing laboratory but excluding chemicals. The Bidder should have access to suitable Top Drive System which can be mobilized and fitted to the offered Rig, if required on call basis. 6.3 The Rig-Package should not be more than five (5) years old as on Further, The inspection and certification regarding the suitability of Rig-Package should be done by any of the following inspection agencies: (a) (b) (c) (d) (e) DNV ABS BV LLOYDS Oilfield Audit Services 3

4 6.5 The transportation of Rig-Package to the drilling locations will be the responsibility of the Bidder. It is suggested that the transportation of the Rig-Package might have to be done in such a way that overall weight of a single consignment should not be more than 60 MT including the weight of the carrier/trailer. Additionally, the bidder may decide upon the length of the carrier/trailer. 6.6 Supply of fuel, lubricant, water (both potable & drill-site use) is Bidder s responsibility. 7.0 MANPOWER The Bidder must have the key personnel with requisite experience and qualification as specified in Annexure-I. The Area Manager/Rig Superintendent, Tool Pusher, Tour pusher, Driller and Asst. Driller should possess valid International Well Control Forum (IWCF) certificate at appropriate levels and should be fluent in English. 8.0 SAFETY COMPLIANCE: The Bidder shall have to comply with the applicable and prevailing provisions of Mines Act.1952, Oil Mines Regulations.1984, OISD (Oil Industry Safety Directorate) guidelines and MoEF (Ministry of Environment and Forest) directives. All statutory requirements/permits, explosive licence, special permit for foreign nationals to work near International boarder are to be arranged by the bidder prior to spud-in of the first drilling location. 9.0 PRE-QUALIFYING CRITERIA: 9.1 The Bidder must fulfil the following minimum pre-qualifying criteria for empanelment / short-listing for issue of tender documents for charter hire of 750 HP (minimum) to 1000 HP (maximum) drilling rig-package. 9.2 The Bidder must have the following experience during the last seven (7) years as on (i) Minimum three (3) years experience of providing drilling services out of which at least one (1) year should be on the type of the Rig-Package to be offered on charter-hire basis. OR The Bidder should be an E&P company having in-house drilling & mud engineering services. 9.3 Average annual financial turn-over as per Audited Annual Reports during the last three (3) years (ending ) shall be at least ` 4.72 Crores (or US$ 882,600.00). 9.4 In case, the bidder is consortium of companies, the combined experience of consortium should satisfy the minimum experience requirement as per para 9.2 above. However, the leader of the consortium should satisfy the minimum experience requirement as per Para 9.2 above. Moreover, any of the consortium member individually shall have to meet the financial turnover criteria mentioned in para 9.3 above. 4

5 9.4.1 Legally acceptable Memorandum of Understanding has to be made between the consortium members duly signed by the authorized executives of the consortium members clearly defining the role/scope of work of each partner/member, binding the members jointly and severally to the responsibility for discharging all obligations under the contract, if awarded, and identifying the Leader of Consortium. Unconditional acceptance of full responsibility for executing the Scope of work of the bid document by the Leader of the Consortium shall be submitted along with the technical bid (in the event of issue of tender). 9.5 In case, the Bidder is an Indian Company/Indian joint venture Company, either the Indian Company/Indian Joint Venture Company or its technical collaborator/joint venture partner should meet the criteria laid down at Para 9.2 above. However, the Indian Company/Indian Joint Venture Company must meet the financial turn-over criteria mentioned in Para 9.3 above Indian Bidders quoting based on technical collaboration/joint venture, shall submit a Memorandum of Understanding/Agreement with their technical collaborator /joint venture partner clearly indicating their roles under the scope of work which shall also be addressed to OIL and remain valid and binding for the contract period under this tender Any party who is extending technical support by way of entering into technical collaboration with another party, shall not be allowed to submit an independent Bid against the tender and such bids shall be rejected straightway. Further, all bids from parties with technical collaboration support from the same Principal will be rejected INFORMATION & DOCUMENTS: 10.1 The Bidder must furnish the following in support of fulfilling all the above prequalifying criteria: (a) (b) (c) (d) (e) Rig offered documents relating to Rig already in possession or propose to own / lease along with brief technical specifications. Drilling experience of Bidder Statement to be furnished by Bidder in a tabular form as per Annexure-II along with copies of contracts/work orders, completion certificates / payment certificates issued by the Clients. Financial turn-over of Bidder as per Annexure-III along with Audited balance sheets / profit and loss accounts etc. MOU or legally acceptable documents in support of consortium arrangements / technical collaboration / joint venture arrangements, if any. A letter with categorical confirmation that the Bidder shall provide key personnel as indicated vide Annexure-I and shall deploy for drilling operation (in the event of award of contract) All documents submitted with the EOI must be self-certified by the Bidder s authorized person indicating clearly the name & designation of the person. 5

6 Note: (i) (ii) (iii) (iv) (v) All the copies of document submitted along with the EOI should be clear & legible. OIL INDIA LIMITED (OIL) reserves the right to physically check the original documents/certificate, copies of which are submitted along with the EOI. The EOI is liable to be ignored in case of submission of any misleading/false representation by the Bidder in the form, statements and attachments. OIL INDIA LIMITED (OIL) reserves the right to ignore any or all EOIs without assigning any reason thereof. OIL INDIA LIMITED (OIL) reserves the right to curtail/ enhance the scope of the work stated above or cancel, if required, without assigning any reason thereof SUBMISSION OF EOI The EOI together with the information/documents as mentioned above should be submitted in a closed envelop superscribing EOI for Charter Hire of ( ) HP mobile Drilling Rig package for NELP block in Rajasthan and must reach the following address on or before (15:00 Hrs, IST). The EOI will be opened at 15:15 Hrs, IST on CHIEF MANAGER (M&C) OIL INDIA LIMITED, RAJASTHAN PROJECT 02-A, SARASWATI NAGAR, DISTRICT SHOPPING CENTRE BASNI, JODHPUR , RAJASTHAN Fax: Website: If however the above date happens to be a Holiday /Bundh, EOI will be received up to the next full working day till 15:00 Hrs, IST. EOI may be sent by post/courier service, delivered personally or dropped in the tender box placed at the office of Chief Manager (M&C), Oil India Limited (RP), 2-A, Saraswati Nagar, District Shopping Centre, Basni, Jodhpur , Rajasthan. However, for the delay in receipt or non-receipt of the same, Oil India Ltd. will not be responsible Oil India Limited reserves the right to (a) either accept or reject any / all EOI(s) (b) cancel the process without assigning any reason what so ever. ******************************* 6

7 LIST OF ANNEXURES: Annexure-I 1. AREA MANAGER / RIG MANAGER/ RIG SUPERINTENDENT A. Qualification: Graduate in Engineering / Science or three (3) years Diploma in Engineering. B. Experience: i) Should have work experience in drilling oil / gas wells for minimum 15 years, out of which at least 3 years should be in respective position. ii) Should be well-conversant with working in diesel-electrical rigs/supplied rig. iii) Should be well-conversant with mud chemicals & maintenance of mud properties. iv) Should be well-conversant with well-control methods & should have logistical support in case of well emergencies. C. Certification/License/ Health: i. Must possess valid well control certificate (IWCF-Supervisor Level) and should be conversant with well control methods to take independent decisions in case of well emergencies. ii. Should be of sound health to work in adverse weather condition in drilling well s in 2. TOOL PUSHER: A. Qualification: Diploma in Engineering or Science Graduate or equivalent. B. Experience: i) Should have work experience in drilling oil / gas wells for minimum 10 years, of which at least three (3) years as tool pusher in exploratory & development gas/oil wells. ii) Should be well-conversant with working in diesel-electrical rigs/supplied rig. iii) Should be well-conversant with mud chemicals & maintenance of mud properties. iv) Should be well-conversant with well-control methods C. Certification/License/ Health: i. Must possess valid well control certificate (IWCF-Supervisor Level) and should be conversant with well control methods to take independent decisions in case of well emergencies. ii. Should be of sound health to work in adverse weather condition in drilling wells in 3. TOUR PUSHER / NIGHT TOOL PUSHER: A. Qualification: Diploma in Engineering or Science Graduate or equivalent. B. Experience: i. Should have work experience in drilling oil / gas wells for minimum six (6) years out of which at least three (3) year as tool / tour pusher of exploratory & development oil/gas wells. ii. Should be conversant with working in diesel-electrical rigs/supplied rig. iii. Should be conversant with mud chemicals & maintenance of mud properties iv. Should be conversant with well-control methods. C. Certification/License/ Health: 7

8 i. Must possess valid well control certificate (IWCF-Supervisor Level) and should be conversant with well control methods to take independent decisions in case of well emergencies. ii. Should be of sound health to work in adverse weather condition in drilling wells in 4. DRILLER: A. Qualification: SSC/HS/PU/Class-XII standard or equivalent. B. Experience: i. Should have work experience in drilling oil / gas wells for minimum five (5) years out of which at least three (3) years as Shift-In-Charge / Driller in exploratory & development oil/gas wells. ii. Should be conversant with working in diesel- electrical rigs/supplied rig. iii. Should be conversant with mud chemicals & maintenance of mud properties. iv. Should be conversant with well-control methods. C. Certification/License/ Health: i. Must possess valid well control certificate (IWCF-Driller Level) and should be conversant with well control methods to detect signals of well kick, shut-in procedure of the well and assist Tool Pusher/ Tour Pusher in case of well emergencies. ii. Should be of sound health to work in adverse weather condition in drilling wells in desert area. 5. ASSISTANT DRILLER: A. Qualification: SSC/HS/PU/Class-VII or equivalent. B. Experience: i. Should have work experience in drilling oil / gas wells for minimum five (5) years out of which at least three (3) years as Asst. Driller / Head-man in exploratory & development oil/gas wells. ii. Should be conversant with working in diesel electrical rigs/supplied rig. iii. Should be conversant with mud chemicals & maintenance of mud properties. iv. Should be conversant with well-control methods. C. Certification/License/ Health: i. Must possess valid well control certificate (IWCF-Driller Level) and should be conversant with well control methods to detect signals of well kick, shut-in procedure of the well and assist Tool Pusher/ Tour Pusher in case of well emergencies. iii. Should be of sound health to work in adverse weather condition in drilling wells in desert. 6. MECHANICAL SUPERVISOR/ENGINEER (CHIEF/MASTER MECHANIC): Should possess a Degree or Diploma in Mechanical Engineering with sound health & should have three (3) years or six (6) years experience respectively in the offered position in dieselelectrical Drilling Rig. 8

9 7. MECHANIC (IC)/(PUMP) Should possess diploma in Mechanical/Chemical Engineering or Graduate in Science or equivalent with three (3) years experience or SSC/HS/PU/I.Sc or equivalent with six (6) years experience in drilling wells out of which at least one (1) year as Mechanic in drilling oil/gas wells. Should have sufficient knowledge in operation and maintenance diesel-electrical Drilling Rig & its components viz. power-packs, rig engines, rig pumps,supercharger pumps, centrifugal pumps, solid control system (shale shaker, degasser, desander, desilter,centrifuge etc), water booster pumps, kill pumps & other engines/pumps operating in a diesel-electrical rig. Should be of sound health to work in very adverse weather conditions in drilling wells in 8. ELECTRICAL SUPERVISOR/ENGINEER (CHIEF ELECTRICIAN): Should have Degree in Electrical Engineering with minimum three (3) years experience or Diploma in Electrical Engineering with six (6) years experience in diesel-electrical Drilling Rigs. Should be capable of carrying out fault-finding analysis, rectification of faults, operation & maintenance of all the electrical items of diesel-electrical Drilling Rig including the airconditioners. Must possess valid Electrical Supervisor s Certificate of competency(including part-viii) issued by State Licensing Board and should be conversant with Oil Mines Act.1952, Oil Mines Regulation.1984 & relevant electricity rules. Should be of sound health to work in adverse weather conditions in drilling wells in desert area. 9. RIG ELECTRICIAN : Must be a Diploma holder in Electrical Engineering with minimum three (3) years experience or ITI in the same discipline with minimum eight (8) years experience in diesel-electrical Drilling Rigs. Should be capable & conversant with the operation & maintenance of electrical instruments indipendently in shift. He should be capable of reading circuits, communicate, detect & rectify faults. Must possess valid Electrical Workmen Permit (Part I& II) Certificate issued by State Licensing Board. Should be of sound health to work in very adverse weather conditions in drilling wells in 10. MUD ENGINEER : The minimum educational qualification should be Science Graduate with chemistry as a subject from a recognised University. The mud engineer must have a minimum of five (5) years for Graduate and three (3) years for post-graduate of work-experience in managing independently various kinds of mud in exploratory /development oil/gas wells and other related activities. Prior to deployment, the Contractor should provide a detailed resume of mud engineer(s) highlighting qualifications & relevant experience (field experience) with documentary evidence for Company s scrutiny & approval. Should be of sound health to work in very adverse weather conditions in drilling wells in 9

10 11. HSE OFFICER : Should be a Graduate in science with a minimum of three (3) years experience in relevant field of operation. Should be of sound health to work in adverse weather conditions in drilling wells in Duties & responsibilities include safety during site preparation, rig-up, rig-down, rig-move, drilling operation including round trip, cementing, well-head testing, routine inspection of rig items & equipments, routine testing of air/pressure vessels, conducting pit level meeting, monthly safety meeting, monthly mock fire-drill, regular BOP drill, job safety analysis prior to an important job, maintaining all statutory safety norms & maintaining registers, risk register, enquiry & analysis of accidents, near-miss incidents, issue of work permits, preparation & follow-up of SOP, submission of compliance reports of DGMS,OISD, SPCB, CPCB, MOEF guidelines. Should have experience in E&P Company for a minimum of three (3) years as HSE Officer. 12. WELDER : Should have adequate experience in working in drilling oil/gas wells and must be wellconversant of welding technique of casing & well-head accessories. Must possess the valid certificate of welding trade from any recognised Institute of State Govt. (one year course) Should be of sound health to work in adverse weather conditions in drilling wells in desert area. 13. HEAVY DUTY CRANE OPERATOR: Should be provided along with the crane. The operator should have a minimum of two (2) years work experience in operating a heavy crane attached to drilling rig and possess valid license for driving heavy motor vehicle. 10

11 Annexure-II Sl. No. Contract No. Name of client Place of operation HP of Rig Depths of wells No. of Wells drilled In Normal Area In Desert Area Commenc ement of contract Completion of contract Annexure-III Financial Year Annual Turnover xxx

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