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NATIONAL OIL
Shallow Stratigraphic Well Drilling in Block 14T
SPECIFICATIONS
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EXHIBIT 1:
SPECIFICATIONS
OF
TURN-KEY BASED CONTRACT OF
SHALLOW STRATIGRAPHIC WELL
DRILLING IN BLOCK 14T
NATIONAL OIL CORPORATION OF
KENYA
NATIONAL OIL SPECIFICATIONS Shallow Stratigraphic Well Drilling in Block 14T
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The Specifications of the Shallow Stratigraphic Well Drilling in Block 14T
1 Subject Shallow Stratigraphic Well (s) and Borehole Measurement in Block14T around Magadi Area
in Kenya.
2 Purpose National Oil Corporation of Kenya (hereinafter referred to as the Company) is exploring
for oil and gas in Block 14T in Magadi area, Kenya. This work is performed in order to
obtain the information of subsurface geology in the region.
3 Works 3.1 To drill two (2) Shallow Stratigraphic Wells (hereinafter referred to as the Drilling Works).
3.2 To carry out Wireline logging (hereinafter referred to as the Wireline Logging Works).
4 Location 4.1 The Drilling Works is planned in the Western part of Magadi area as shown in the
Attached Map 1. The detailed positions of the wells shall be shown to the awarded
Contractor upon execution of a Confidentiality Undertaking with the Company.
4.2 The subsurface geology of this region appears to be composed of clastic and volcanic rocks
that are partially compacted as per the geological survey and the information of oil and
gas explorations around Block 14T.
5 Entry Qualifications 5.1 If the Contractor itself cannot provide the wireline logging services, Sub-Contractors shall
be appointed by the Contractor to carry out the Drilling Works and the Wireline Logging
Works.
5.2 The Contractor shall execute the Confidentiality Undertaking with the Company as
provided in the Appendix 1.
5.3 The Contractor shall have the ability to drill to depth more than 500 m.
5.4 The Contractor shall have experience in conducting the drilling of stratigraphic wells of
more than 200 m in depth and attach the evidence of previous work done (as reference
information).
5.5 The Contractor shall have a Health Safety and Environment (HSE) document relating to
the Drilling Works, and it is to be attached in the proposal.
6 Liability for the Works 6.1 The Contractor shall bear all liability arising from execution of the Drilling Works and
Wireline Logging Works (hereinafter referred to as the Works) including but not limited
to injury claims, third party property damage or other loss or damage arising there
from.
7 Insurance 7.1 The Contractor shall submit the list of certificates of all affiliated insurances relating to
the Works for entire contract period and avail proof of payment of requisite premiums prior
to commencement of the work.
8. Basic Provisions of the Works 8.1 Accommodations
8.1.1 The Contractor is responsible for bearing the costs of utilizing or arranging for site
NATIONAL OIL SPECIFICATIONS Shallow Stratigraphic Well Drilling in Block 14T
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office, camps, other facilities and transport. In addition, the Contractor shall
prepare accommodations for some Company staff.
8.1.2 The Contractor shall prepare the cost estimation based on the situation shown in
this Exhibit 1.
8.2 Consumables
8.2.1 All the tangible & intangible consumables relating to the Works shall be
included into the proposed costs for the Drilling Works and Wireline Logging
Works.
8.3 Working Hours
8.3.1 The Drilling Works shall be done on a 24 hour basis. The working shift may be
arranged by The Contractor provided that each shift shall not exceed 12 hours.
8.4 Schedule
8.4.1 The Company expects to commence the Works in November, 2016.
8.4.2 The Contractor shall finish preparations of instruments (ex. Rigs, others), such as
mobilization, and primary inspection of the location before commencement of
the Works provided that it shall be after signing of contract.
9. Drilling Works
9.1 Mobilization and De-mobilization of the equipment
9.1.1 The Contractor shall be responsible for complying with laws and regulations on
environmental permission.
9.1.2 The Contractor shall be responsible for mobilization and demobilization of the
equipment and staff required to commence the work on time (including custom
clearance).
9.1.3 The Contractor shall be responsible for logistics and transportation of the
equipment to ensure accessibility to the site on time (This shall include pre-site
visits to confirm requirements).
9.1.4 The Contractor shall be responsible for site remediation immediately after the
drilling operations.
9.2 Water supply
9.2.1 The Contractor shall be responsible for facilitating water supply required for the
Drilling Works. Any relating cost has to be included into the operational cost.
9.3 Location survey
9.3.1 Location survey using GPS shall be accurately carried out by the Contractor with
the Company. A high performance GPS shall be availed by the Contractor.
9.4 Drilling Specifications
9.4.1 The Company plans to drill two (2) vertical wells. The geology of subsurface is
estimated that one is volcanic rock dominance, the other one is sedimentary rock
dominance.
9.4.2 The total (cumulative) drilling depth is planned to be 1,000 m for the two wells.
9.4.3 The drilling depth of each well is basically planned up to 500 m.
9.4.4 The Contractor shall have an up to date certification by International Association
of Drilling Contractors (IADC) and or the equivalent. Sub-Contractor's personnel
shall have current certification by accredited international drilling
organizations/body (IWCF, WellCap etc).
9.4.5 The core has to be fully sampled from the drilling depth of approximately 100m to
500m in the two wells. From the ground surface (0m) to the drilling depth of
approximately 100m, the lithological analysis is examined by cuttings.
9.4.6 The Contractor shall wash and preserve cuttings samples every 5m from the
ground surface (0m) to the drilling depth of approximately 100m in each well, and
send it to the Company Laboratory.
9.4.7 The "Stick-up" method of drilling depth determination shall be used. Stick-up
measured from the ground surface (and not from the rotary table [RT] and/or
NATIONAL OIL SPECIFICATIONS Shallow Stratigraphic Well Drilling in Block 14T
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Kelly bushing [KB]) to the downhole end of the drill string and/or bottomhole
assembly [BHA] (including bit, core barrel, rods and couplings).
9.4.8 The Company accepts any types of rig (skid-type rig, truck-mount rig, etc.),
however, the specifications or past performance records need to be submitted to
ensure the successful completion of drilling (and coring) work.
9.4.9 Core shall be cut throughout the sections specified in 9.3.5 unless any critical
operational situations are encountered. In case of difficulty to continue coring
operation, the Contractor or the Sub-Contractor shall discuss with the Company.
9.4.10 The hole diameter shall be between 51mm to 151mm for Check-shot survey.
9.4.11 Core diameter shall be 50 mm or larger throughout the section.
9.4.12 Casing program shall fulfill the above-mentioned specifications
9.5 Treatment of Well(s) after Drilling
9.5.1 The Contractor shall be prepared to install well head assembly and relevant
instrument after drilling operation for potential conversion to a water well. Any
relating cost has to be included into the operational cost.
9.5.2 The Contractor shall backfill the well with cement/sand mix or bentonite/cement
mix, and completely level/remedy the ground for abandonment following the
regulations unless the operation specified in 9.5.1 takes place.
9.6 Core handling
9.6.1 The Contractor shall prepare and present a detailed coring (retrieval/handling)
programme for approval by the Company.
9.6.2 Core shall be carefully extracted from the core barrel using a method approved by
the Company in order to prevent destruction or fragmentation of during
transportation.
9.6.3 The Contractor shall mark the sample depth, check the lithology and take core
color photographs after putting the samples into the core box.
9.6.4 Core losses shall be marked in the correct position (not at the end of the run) with
a red block of the same length as the core loss. The block shall be marked "core
loss" and the core loss depth interval given.
9.6.5 Where samples are taken from the core box they shall be replaced with a yellow
block of the same length as the sample. The block shall be marked "sample" and
the same depth interval given.
9.6.6 Unpainted blocks (stabilizers) shall be used to prevent core moving within partly
filled core box partitions.
9.6.7 All block markings shall be legible on the core photographs.
9.7 Core boxes and Storage
9.7.1 The core boxes shall be of robust construction with a lockable lid (to prevent core
distribution/loss during transportation) and partitions spaced to suit the different
core sizes. The Contractor shall provide the handles to assist transportation of the
boxes.
9.7.2 The inside of the lid and at least one end of the box shall be clearly and indelibly
marked with the project name, well number, box number (e.g. 5 of 10) and core
depth interval.
9.7.3 Core boxes shall be kept off the ground and dry while at the drill site.
9.8 Core photographs
9.8.1 Color digital photographs shall be taken for all the core boxes.
9.8.2 A title board showing the project name, borehole number, depth interval, a color
reference chart and liner scale graduated in 100 mm lengths in black and white.
10. Wireline logging Works
NATIONAL OIL SPECIFICATIONS Shallow Stratigraphic Well Drilling in Block 14T
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10.1 Wireline logging specifications
10.1.1 The Contractor or the Sub-Contractor shall carry out Wireline logging
(Temperature Measurement and Gamma Ray), after reaching to TD (bottom hole).
10.1.2 The logging section is at the drilling depth from approximately 100 m to 500 m in
the open holes.
10.1.3 If the Contractor consigns a Wireline logging to the Sub-Contractor, the
Contractor shall submit the certification of the Sub-Contractor to the Company.
10.1.4 If the Contractor consigns a Wireline logging to the Sub-Contractor, the
Contractor shall supervise the Sub-Contractor during the operation at all time.
10.1.5 The logging tools shall be prepared by the Contractor or the Sub-Contractor.
11. Check-shot survey Works (For Contractor’s information) 11.1 Check-shot survey
11.1.1 Check-shot survey is also planned to be conducted after the above-mentioned
logging.
11.1.2 All of the holes shall be cleaned by the Contractor or the Sub-Contractor before
downloading the geophone. The Contractor or the Sub-Contractor shall also wash
out the mud and gravel from bottom of the holes.
11.1.3 A surface impulse energy (PEG-40 or Dynamite, selected on basis of energy
level) is placed near the hole (e.g. 3m) and a land geophone with special coupling
device is placed against the hole wall. The sensor will move a specified interval
starting from the bottom of the hole once a shot is taken. Survey configuration is
described in Figure 2.
Figure 2. Downhole UPHOLE Configuration
NATIONAL OIL SPECIFICATIONS Shallow Stratigraphic Well Drilling in Block 14T
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12. Personnel 12.1 Expert
12.1.1 The Contractor shall prepare and submit the curriculum vitae (CV) of experts
including the Drilling Works (drilling supervisor, driller, geologist (s),
Wireline logging technician) and relating to the Works.
12.1.2 The person in charge shall have the ability and the experiences to integrate
all activities relating to drilling, wireline logging, check-shot survey and HSE.
12.2 Sub-Contractor
12.2.1 As above, the Contractor is allowed by the Company to hire Sub-Contractors
for the Wireline Logging Works.
12.2.2 The Contractor shall be responsible for Sub-Contractor activities.
12.2.3 The Contractor shall make a list of personnel, certification, certificates of all
affiliated insurances and the CVs of Sub-Contractors and submit them to the
Company.
13. Health, Safety and Environmental Procedure
The Occupational Health, Safety and Environment (HSE) policy and procedures described in
this Exhibit or that may be introduced by the Company during the term of this Exhibit shall
apply equally to the Contractor and it’s the Sub-Contractors. The Contractor shall be
responsible for implementation of and compliance with the HSE procedures and policies by all
personnel and equipment including those employed by it’s the Sub-Contractors assigned to the
services.
13.1 HSE basic provisions for the Drilling Works
13.1.1 HSE provisions should be quoted as necessary from the document relating to HSE
policy prepared by the Contractor.
13.1.2 The Contractor is responsible for the overall HSE policy subject to approval by
the Company.
13.2 Waste water handling for the Drilling Works
13.2.1 Environmental Impact Assessment (EIA) study or reporting is not necessary in
Kenya for geotechnical work, however the waste mud, chemicals and fluid during
and after the operations shall be disposed in accordance with the Kenya's
regulations.
14. Filing documents required for the bidding 14.1. The Company profile of the Contractor
14.2. The Contractor’s proposal
14.2.1. Work program (Detailed work schedule)
14.2.2. Well schematics (Casing program, borehole diagram)
14.2.3. P & A procedure.
14.2.4. Turn-Key based Bid price (Break down for cost estimation) i.e. refer to financials -
Appendixes 3A and 3B bills of quantities - BoQs
14.3. The signed Confidentiality Undertaking in the Appendix1
14.4. Requirements to be included in the bid documents: (Appendix 2C)
14.4.1. List of the experiences to conduct the drilling of more than 500 m in depth
(Refer to Appendix 2A) and technical details & requirements (Appendix 2B &
2C)
14.4.2. HSE document related to the Drilling Works
14.4.3. All affiliated insurances relating to the Works
14.4.4. List of personnel and the CVs for key personnel of the Contractor
14.4.5. List of personnel and the CVs for key personnel of the Sub-Contractor
15. Reports by the Contractor 15.1. Preparing reports
15.1.1. The reports shall be prepared by the Contractor in close consultation with
NATIONAL OIL SPECIFICATIONS Shallow Stratigraphic Well Drilling in Block 14T
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the Company.
15.2. Report format
15.2.1. The reports shall be written in English, and provided in Microsoft word.
15.2.2. Paper size for the reports shall be A4, and shall be printed in color on double-
sided paper.
15.3. Reporting for the Drilling Works
15.3.1. Daily drilling report with core or cuttings (lithological) logs.
The Contractor or the Sub-Contractor shall submit the daily report to the Company
by 0600hrs East Africa Time the next day.
Hard copy shall be attached in the Geological completion report as an exhibit.
15.3.2. Well completion report (drilling operations)
The configuration of the reports will be in the following order: cover, preface,
contents, digest, body, summary and attached paper.
The formatting is to be provided by the contractor for approval by the Company.
The Contractor or the Sub-Contractor shall submit the final drilling operation
report to the Company within one month after the completion of operation.
15.3.3. Geological completion report (including wireline logging, grain size distribution
analysis)
The compilation of the reports is in the following order: cover, preface, contents,
digest, body, summary and attached paper
The formatting is to be provided by the Contractor or the Sub-Contractor for
approval by the Company. The Contractor or the Sub-Contractor shall submit the
final geological report to the Company within two month after the completion of
operation.
16. Deliverable Final Product
16.1 Deliverable Final Product for the Drilling Works
16.1.1 Four sets of well completion report geological completion report, wireline logging,
laboratory analysis and their digital data (soft copies) that are recorded on
DVD/USB are forwarded to the Company (Address is written above).
16.1.2 A series of core samples stored in the core boxes are transported to the Company
laboratory immediately after the end of drilling operation.
16.2 Shipping Instructions
All deliverables shall be shipped to the Company’s Nairobi office:
Exploration Manager
NATIONAL OIL CORPORATION OF KENYA
AON Minet House
Mamlaka Rd, Off Nyerere Rd 7th Floor
P.P. Box 58567 – 00200, Nairobi
Kenya.
or any other destination, upon written instruction from the Company’s Field
Representative
17. Others 17.1. The Contractor shall provide the following cars and drivers with the Company during the
contract period. The relating cost needs to be included in
17.1.1. one (1) 4WD car for the Drilling Works.
17.1.2. one (1) 4WD car for the wireline logging Works.
17.2. The contractor shall pay attention to maintain a good relation with the local communities
around the Location.
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NATIONAL OIL SPECIFICATIONS
The Shallow Stratigraphic Well Drilling in Block 14T
Attached Map 1. Map of location
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Confidentiality Undertaking
To: National Oil Corporation of Kenya ("NOCK")
AON Minet House, 7th floor off Nyerere Road, Nairobi, Kenya.
Subject:
“Work for The Shallow Stratigraphic Well Drilling in Block 14T in Magadi region in Kenya”
We, [insert name of entity], a company incorporated under [insert jurisdiction] and having its registered office at
[insert the registered address], is interested in submitting a proposal to NOCK in response to the request for
proposal dated MM/DD, 2016 for the “The Shallow Stratigraphic Well Drilling in Block 14T in Magadi region in
Kenya” (“Work”), and is willing to receive the document that is “The locality for the drilling”.
In consideration of the receipt of the document from NOCK, we agree and undertake to keep the document and
will not disclose to anyone except to such employees involved in tender preparation, in any manner without the
prior written consent of NOCK.
We will use the document and the Confidential Information only for the preparation of the proposal (“Proposal”).
We acknowledge that the documents and the Confidential Information belong to NOCK and we will not acquire
any proprietary interest or right to the document and the Confidential Information.
We will destroy the document and any copy of the Confidential Information in our possession and in the
possession of any person to whom we disclosed the Confidential Information, in the event that:
a. NOCK requests us in writing to proceed with such the destruction;
b. We decide not to make the Proposal to NOCK;
c. We do not submit the Proposal by the date specified in the NOCK by which date the proposal must be
submitted to NOCK; or
d. NOCK informs us in writing that NOCK does not award the contract for the Work to us.
This Confidentiality Undertaking is made as a deed and is governed by the laws of Kenya and shall expire upon
the occurrence of one of the events described here above and any event 06 months after the date hereof.
Date: Signed:
····································· (Signature)
····································· (Printed Name)
····································· (Title)
Appendix 1
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NATIONAL OIL SPECIFICATIONS SUBSURFACE GEOLOGICAL SURVEY IN BLOCK 14T
APPENDIX 2A CONTRACTOR’s EXPERIENCES OF DRILLING
The Contractor shall provide list of the experiences to conduct the drilling of more than 500 m in depth.
No COMPANY/CLIENT
FIELD
AREA
PROJECT
NAME/DESCRIPTION
DRILLING
DEPTH YEAR
DURATION
(MONTHS)
CONTRACT
VALUE (US$)
CONTACT
PERSON
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NATIONAL OIL SPECIFICATIONS SUBSURFACE GEOLOGICAL SURVEY IN BLOCK 14T
APPENDIX 2B TECHNICAL DETAILS AND REQUIREMENTS (TECHNICAL QUESTIONAIRE)
The Contractor shall provide response to each of the questions set out below as "Rig Tech Spec Details"
# - NO DESCRIPTION RESPONSE Point Point (Max)
20.0
REMARKS
(Y / N)
1.0 Rig Maximum Depth Rating
1.1 PQ (Core Diameter 85mm) - (minimum 400m) 1
1.2 HQ (Core Diameter 63.5mm) - (minimum 600m) 1
1.3 NQ (Core Diameter 47.5mm) - (minimum 800m) 1
1.4 BQ (Core Diameter 36.4mm) - (minimum 1050m) 1
2.0 Rig Rating in Tons
2.1 Dual Rotary Capability (Y / N) 2
2.2 Top Drive Hoist Capacity Pull Back (20 - 40) Tons 1
2.3 Top Drive Hoist Capacity Pull Down (10 - 20) Tons 1
2.4 Lower Drive Hoist Capacity Pull Back (30 - 50) Tons 1
2.5 Lower Drive Hoist Capacity Pull Down (10 - 20) Tons 1
2.6 Non - Dual Rotary Capability (Y / N) 1
2.7 Top Drive Hoist Capacity Pull Back (20 - 40) Tons 1
2.8 Top Drive Hoist Capacity Pull Down (10 - 20) Tons 1
3.0 Rig horse power rating / range (200 - 350) HP 1
4.0 Rotary speed range (1000 - 1500) RPM 1
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5.0 Closed Circulation System Tank Farm (Y / N) 1
6.0 Mud pump rating (250 - 400) PSI 1
7.0 Mud pump rating (30 - 60) GPM 1
8.0 Tool winch rating (8 - 15) Ton 1
9.0 Wireline winch rating (1 - 5) Ton 1
Total 20.0%
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NATIONAL OIL SPECIFICATIONS SUBSURFACE GEOLOGICAL SURVEY IN BLOCK 14T
APPENDIX 2C NON-RIG TECHNICAL DETAILS AND REQUIREMENTS (TECHNICAL QUESTIONAIRE)
The Contractor shall provide response to each of the questions set out below as "Non-Rig Tech Spec Details"
Technical Aspects (General) Description (Band) Point Point
(Max)
80.0
Remarks
1. Company Structure
15.0
Drilling Wells more than 500Metre Depth 4.0
Wireline logging 4.0
Grain size distribution analysis 4.0
Integration of all activities related to well drilling, wireline
logging and geology 3.0
2. Statutory requirements
15.0
Company registration 2.0
Valid Practice License 5.0
All affiliated insurance cover for drilling equipment,
Employers Liability, Work Injury Benefits act, Public
Liability
3.0
Valid Company Registration with International Association of
Drilling Contractors or any other relevant certified
International Drilling Body
5.0
3. Qualifications of Personnel
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Drilling supervisor ≥10 years (4 points) <10 years (2
points)
4.0
Driller ≥5 years (3 points) <5 years (1
points)
3.0
Geologist ≥10 years (3 points) <10 years (2
points)
3.0
4. Company Drilling Experience
15.0
Experience of drilling wells to a minimum depth of 200m in
Kenyan Environment
≥2 wells (5 points) <2 wells (3
points)
5.0
Experience of drilling wells to a minimum depth of 200m
outside Kenyan Environment
≥2 wells (10 points) <2 wells (5
points)
10.0
5. Bidder Proposed work program must show : (Bidder to
refer to Exhibit 1: Specification for Shallow Well Drilling)
15.0
Detailed Work schedule 5.0
Well drilling Schematics 5.0
Wireline logging 3.0
Plug & Abandonment procedures (P&A) 2.0
6. Health and Safety Procedures : (Bidder to refer to Exhibit 1:
Specification for Shallow Well Drilling item 14)
10.0
General requirements on HSE management 2.0
Occupational safety requirements
2.0
Occupational health and industrial hygiene requirements 2.0
Environmental protection requirements 2.0