BJ-2 Well Site Separation and Flaring Facility Tender _Appendix D_Tender Instructions

Tender book MOL-KAL-PBO14/00135 Appendix D

Kalegran Ltd, Erbil Branch, Member of MOL Group Page 1 of 7

APPENDIX D

TENDER INSTRUCTIONS

PART 1 - GENERAL TENDERING INSTRUCTIONS

Kalegran Ltd, Erbil Branch (Erbil Italian city near 100 meter street- offices block offices from 20 till 26., Federal Region of Kurdistan, Iraq), member of MOL Group (hereinafter

referred to as Company) submit a Tender Book Documents (hereinafter referred to as TBD)

for the Bijell-2 Well Site Separator and Flaring Facility within a Contract (hereinafter

referred to as the Work).

The present instruction is an integral part of the tender documentation and determines the

procedures of drawing up and submission of bid proposal package as well as running the

tender itself. While preparing a bid proposal, a Tenderer should follow all current norms and

regulations of Iraq legislation.

Company intends to rent Bijell-2 Well Site Separator and Flaring Facility based on the timely

conditions of the project. The instructions to Bidders are part of and are to be read in

conjunction with all other sections of the TBD. Their purpose is to inform Bidders of the

proper practices, which must be adopted to satisfy the requirements of Company for the

submission of Bids and award of Contract. More detailed description of the Work is specified

in the attached technical content and documentation set forth in Appendix A and A.1.

Failure to comply with the conditions set out in the TBD may result in rejection of the bid.

The language of the tender (TBD), Contract and all correspondence is English.

1. TENDER BOOK ACKNOWLEDGEMENT

Upon receipt of TBD, Bidder is required to confirm receipt by completing the

Acknowledgment Form, on the official letterhead of the Bidder in the format shown in

Appendix C of the TBD Documents and forwarding the same via E-mail to Kalegran Ltd,

Erbil Branch (E-mail:[email protected]) and in copy to MOL Corporate Services Group

Procurement (E-mail:[email protected]).

In case Bidder does not want to participate, he is kindly requested to advise Kalegran/MOL by

return E-mail referring to the Tender Book number. Failing this request, Bidder may be

excluded from future tenders.

2. CONDITIONS OF PARTICIPATION IN THE BIDDING PROCESS

Company will accept bids exclusively from Bidders registered in the suppliers registry of MOL Plc. If the Bidder has not been entered into the registry, one condition of the bid

submission will be to enclose the Registration Questionnaire (Appendix J) to Bidders bid.

Bidder acknowledges that any data, information or notification related to the present TBD that

has been or will be handed over shall be considered as confidential. Bidder understands that

the confidential information may only be used in connection with the preparation, evaluation

of the bids and the signing of the Contract concluded as a result of the TBD. Bidder shall

inform its employees, consignees and all other contributors used in respect of the TBD about

its confidential nature and Bidder shall oblige them to observe the liability concerning the

treatment of confidential information. Bidder has confirmed its liability for treating and using



confidential information by signing a Declaration of Confidentiality (Appendix F) which

has to be enclosed to the bid.

Bidder shall bear sole responsibility for and pay all costs and expenses and other charges

incurred in the preparation and submission of their Bid and Company shall not be liable under

any circumstances for any direct and/or indirect costs and expenses incurred in the Bidders preparation and submission of the Bid. Bidder and its employees, representatives acting in its

name are responsible for correctness and conformity of data and pieces of information given in

connection with the TBD.

In respect of the TBD and Bidders bid Bidder may contact -via e-mail or fax - only the following representatives of Company:

If additional information or details are needed, please contact:

for technical matters:

Attn: Mr. Gl Csaba

Phone: +36202205904

E-mail: [email protected]

Attn: Mr. Kroly Lovonyk

Phone: +36209425367


for commercial matters including TBD issues:

Attn: Ms. Kristina Simunac

Phone: +36-20-457-3294


Apart from the above contact person it is forbidden to contact any employee, consignee or

advisor of MOL Group in connection with the TBD or to ask for further information from

them or have negotiations with them. Bidders failure to comply with this provision may result in rejection of its Bid.

The Bid Closing Dates are:

For technical offers July 14th, 2014 at 5:00 PM local Iraqi time

For commercial offers July 28th, 2014 at 5:00 PM local Iraqi time Company is entitled to extension of the validity period of the Bids if it is deemed necessary, in

this case it informs Bidders in written form.

Company reserves the right to change any condition that was included in the TBD and made

known for Bidders until the expiry of the Bid Closing Date. Company informs Bidders about

the modification in written form. Company will not take any responsibility against Bidders for

consequences arising from the modification.

Company reserves the right to withdraw the TBD without any obligation of giving reasons.

Company lets Bidders know about the withdrawal in writing and will not take any

responsibility against Bidders for consequences arising from the withdrawal.

Bidders have the right to request for clarification provided that any request is received latest

five (5) days before the bidding deadline (technical & commercial bid submission date). The



clarification request(s) should be addressed to the above given contact person. Answers shall

be circulated to all invited Bidders.

Bids received after bid-closing date will be rejected. Bids once submitted will have to stand

valid for 90 days after bid closing date. Bidders are not allowed to modify, add to or withdraw

their Bids after Closing Date. One Bidder may submit only one valid bid.

Bidder shall indicate the acceptance of MOL's Terms and Conditions for Contract as set

out in Appendix H Contract Acceptance Form. Qualifications should be made in accordance with Appendix I, respectively failure to observe this procedure may lead to

rejection of the bid. Please note that contract draft will be sent to Bidder latest at the beginning

of week 26th

.

Bid shall be strictly in accordance with instruction set forth in the Tender Book. Exceptions

are not acceptable and may be a reason for Kalegran / MOL to reject the bid.

The Bid package must be submitted in three (3) complete, identical sets of sealed envelopes,

one original and two copies. Each shall be clearly marked with the following remarks:

- Tender No. - Bidder's Name - Bidders Address - ORIGINAL or " COPY - CONFIDENTIAL - Do not open before July 14th, 2014 at 5:00 PM Iraqi time for technical offer - Do not open before July 28th, 2014 at 5:00 PM Iraqi time for commercial offer

ORIGINAL and COPY 1 should be addressed and delivered to:

Kalegran Ltd, Erbil Branch

Gulan Street adjacent to Capital Hotel behind No No Petrol station

Erbil, Federal Region of Kurdistan, Iraq,

Attention: Mr. Majdi Ahmad, Managing Director

COPY 2 should be addressed and delivered to:

MOL Plc.

Group Procurement

Projects and Surface Procurement Department

Room No. 268.

H-1117 Budapest,

Oktber huszonharmadika u. 18

Hungary

Attention: Kristina Simunac, Procurement Expert



Each bid package must consist of three sealed envelopes:

a, First envelope marked: MOL-KAL-PBO14/00135 - PURCHASING TERMS" should contain:

copy of the sent Acknowledgement form as attached in Appendix C .

duly signed Bid Declaration as attached in Appendix H or Appendix I.

the signed Statement of Confidentiality as attached in Appendix F.

filled Registration Questionnaire as attached in Appendix J.

Bidders name, headquarters, phone number, fax number, the name and phone number of Bidders consignee authorized to make a statement

The copy of the notarized authorisation (which must contain the authorised individuals specimen signature as well) of Bidders representative authorised to sign the tender on behalf of the Bidder.

Bidder shall submit the requested information on electronic (preferably on a CD) and hard copy format also

b, Second envelope marked: " MOL-KAL-PBO14/00135 -TECHNICAL OFFER" should

contain:

technical quotation

technical documentation and technical specifications with references of the relevant API Specs.

certificate of authorization from the manufacturer of the offered products, if applicable

origin /manufacturer of the raw material with reference list

additional technical information, if any, to be submitted on separate sheet(s)

Bidder shall submit the requested information on electronic and hard copy format also

c, Third envelope marked: " MOL-KAL-PBO14/00135-FINANCIAL OFFER" should

contain:

the bid price offered by Bidder.

the bid price shall be understood as fixed price by items, covering all costs and expenses which might arise in connection with the scope of the purchase contract. Company

requests Bidders to submit the prices in the commercial quotation format as the table in

Appendix L.

the quoted prices should be given in USD

additional price information, if any, to be submitted on separate sheet(s)

officially signed copy of the draft Contract as Appendix G in the present TBD or Bidders statement that Bidder accepts the contractual conditions drawn up by Company. Any qualifications to contractual conditions shall be made evident by Bidder in its Bid.

bidder shall submit the requested information on electronic and hard copy format also

Failing to accomplish the above will result in the rejection of the Bid.

Pricing

Company shall make no advance payment to the successful Bidder. Duties of whatever nature

in respect of the execution of the Contract together with all other taxes, etc., of whatever

nature shall be paid by the successful Bidder and the prices quoted shall include all such costs.

Issuer will accept no liability for the Bidders failure to include all taxes, duties and the like in its bid.



Please Note that:

Failing to submit three envelopes or omitting any of the requested information may lead to rejection of the bid

No prices to be shown in first and second envelope

Third envelope should contain prices only, with no reservations

In case of any discrepancy amongst data and information included in the Hard copy and Electronic Copy of Bids, the Hard copy will be considered by Company as

prevailing

In case of any discrepancy amongst data and information included in the Original and Copy of Bids, the Original will be considered by Company as prevailing

Bids must be submitted in hard copy and on computer disc only. Bids may not be submitted by e-mail

If the Bid does not fulfil the Companys minimum requirements the Bid will be rejected

The Bids are considered as not valid if:

Bidder does not indicate the fix item price clearly or binds the bids price to another Bidders bids price or any other conditions,

It was received after the Bid Closing Date,

It is submitted at a place or time different from the one indicated in the TBD,

Bidder did not return its signed Statement of Confidentiality by the deadline,

It does not correspond to the conditions and terms specified in the TBD, The Bidder having submitted an invalid Bid may not participate in the subsequent phase of the

Bidding Process.

The non-fulfilment of any of the following conditions by the Bidder shall cause the immediate

rejection of the Bid:

No signed Bid Declaration is attached and included in the first envelope. Comments on the draft Contract (qualification) will be negotiated.

Bidder is not registered in the suppliers registry of MOL Plc or failed to return the Registration Questionnaire latest by the Bid Closing Date

The Bid (Original and Copy) was not submitted in overall sealed envelope/box.

Bidder does not clearly state its readiness to conclude the Contract with the Company

Bidder is not capable to meet the required technical specifications and standards defined in the Appendix A and A.1 of the TBD

The Bidder whose bid has been rejected may not participate in the subsequent phase of the

Bidding Process and its bid shall be returned.



Bids will be evaluated according to the following main criterias:

Completeness of the Bids; Financial and professional reliability of Bidder, within that particularly:

o references ; o professional experience; o scope of activity; o QHSE considerations;

Fulfillment of technical requirements Bid prices Contractual conditions undertaken and qualifications to contractual terms by the Bidder

Company has the right to ask for supplementary data/information from the Bidder during the

evaluation period concerning interpretation/clarifying certain conditions of the Bids. Such

request will be sent to all Bidders either by mail or fax, or as per the Companys decision in a personal meeting.

On the basis of data and pieces of information included in the Bids, Company may make

shortlist from the Bidders. Company advises all Bidders of this shortlist. At the same time

based on the result of the technical and commercial evaluation Company reserves the right to

invite for second bidding round those short-listed companies who submitted commercially the

best offers. From Bidders figuring in the shortlist of second bidding round Company may

select the winner after the detailed technical and commercial negotiations.

Company will evaluate Bids and select the winning Bidder within the bid commitment period.

Company will inform in writing all Bidders about the result.

Company reserves the right to accept or reject any Bid in whole or in part, or to reject all Bids

with or without notice or reasons as unsuccessful, and if no Bids are accepted, to abandon the

work or to have the work performed in such manner as the Company may elect, in this later case

all Bids received will be sent back as received to the Bidders. Bidders have no right for any

compensation request.

Company furthermore also reserves the right, if it is in the overall interest of the Company to

split the Work amongst Bidders and award Contracts more than one Bidder or conclude a

Contract only for a part of the tasks.

The selection of Bidder does not result in Companys commitment of signing a Contract. Until the Contract is signed Company may withdraw from negotiations at any time and initiate new

negotiations respectively.

The winning successful Bidder shall review and sign the Contract at Kalegran Ltd, Erbil

Branch in Erbil, Iraq.

Technical, commercial and contractual issues will be negotiated. The bid prices, technical

content and offered services specified in the bid may be subject to change in the final

Contracts signed by both parties.

If the winning Bidder does not sign a Contract with Company, Company has the right to sign a

Contract with the second best Bidder or qualify the Bidding Process unsuccessful and publish

a new TBD.



Scheme of sealing the Bid Proposal Package

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1.1. Cover Letter;

1.2. Declaration of Confidentiality;

1.3. Completed Vendor Qualification System Questionnaire;

1.4. Contract Acceptance Form (or Contract Qualification Form);

1.5. Reference letters from other clients;

1.6. Other additional information related to the Tender;

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2.2. Detailed description of the offered equipment;

2.3. Information about Tenderers key personnel;

2.4. Detailed description of the offered materials and consumables;

2.5. Copies of Iraqi Work Licenses; if applicable.

2.6. Copies of Insurance Policies;

2.7. Copy of the Quality Control Procedures Manual;

2.8. Copy of the HSE Manual

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3. Commercial Bid

Other information

Bid closing date :

For technical offers July 14th

, 2014, 5:00 PM (Iraqi time)

For commercial offers July 28th

, 2014, 5:00 PM (Iraqi time)

Tender Venue Kalegran Ltd, Erbil Branch, Erbil, Kurdistan, Iraq.

BJ-2 Well Site Separation and Flaring Facility Tender _Appendix D_Tender Instructions

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