Strategy and Procurement Plan

Prior to completion of this plan, the Contract Classification should be completed.

The completion of this form is mandatory for all Contracts with a gross contract value >USD 1MM and recommended for all
Contracts <USD 1MM.

1.0 Introduction
Description of Service: (1) Item required for the 12(twelve) wells (2) 4-1/2” Tubing and (3) 4-1/2” Pup Joint Tubing
Scope of Work
To purchase new tubing, pup joints tubing, cross-overs and flow couplings required in order to replace
(insert brief description
the existing tubing string on the wells
of the work)
Requisition Number
-
(SAP) if applicable
Business Unit/ Contract
Drilling & Workover
Coverage:
Major Stakeholders Drilling Manager
Contract Manager MLN Operations Manager: Contract Specialist Dony Rahadiyanto Kurniawan
Sponsor / Budget
Country Manager: Agus Purbaya
Holder/ Others

2.0 Current Contract Status

Contract
Strategic X Bottleneck Leverage Routine
Classification

Existing Contractor Existing Contract Number

Current
Start Date of Existing Expiry Date of Existing
Situation
Contract Contract
(complete as Options Used 0 Options Remaining
applicable)
Spend to Contract
DZD USD
Date Currency
2.1 Current Contract Performance (include comments on the quality of the service from the current contractor)

3.0 Market Conditions

3.1 Key Market Intelligence Data

Leverage/ Synergy Opportunities (if

There are twenty (20) potential bidders for tubing material in Algeria. We will
any)
 other local/ regional/ global
conduct selection tender with two envelopes or stages.
 other Contracts
 other Operators

Type of Market (any known
strengths or weaknesses in the
market)
There are numerous tubing contractors within Algeria. Weakness: there is a high
level of risk associated with the service. As a result, a detailed technical evaluation
shall be required in order to ensure that the selected contractor has (1) a
documented HSE management system and (2) available resources that are
competent and experienced with respect to the required work scope.

How important or attractive are

ConocoPhillips is one operator among several in Algeria.
ConocoPhillips currently in this
market?

3.2 Other specific issues (competitors, market share)

4.0 Contracting Strategy
Exercise extension: Competitive tender:
YES/NO YES/NO
(Complete Section 4.1) (Complete Section 4.2 – 4.5)

4.1 Contract Extension

Options Remaining YES/NO Single/Sole Source YES/NO
Exercise no. of options: New end date:
Total Estimated Value for extension term
(USD and contract currency)
Gross USD Gross
Net USD Net

Required level of Approval (Internal):

Procurement Council (extension term value > $10MM Gross < $15MM Net ) YES/NO
Country President (extension term value >$15MM Net but < $25MM Net) YES/NO
CPO&EVP (extension term value > $25MM Net. Single/Sole Source > $20MM Gross or $10MM Net) YES/NO
CEO (extension term value > $100MM Net) YES/NO

Required level of Approval (External):

Partner Approval (refer to JOA’s for thresholds) YES/NO

4.2 Competitive Tender/Contract Award Contract / Bid Reference No. 1597 (16)
Primary contract term (number of years) 1 Options (eg. 2 x 2).) 2x1
st
Estimated Contract Start Date 01 Apr 2016 Estimated Expiry Date 31st Mar 2017
Total Estimated Value (contract currency and USD)
covering full primary contract term (excl. options)
Gross USD $ 4,174,435???? Gross
Net USD (65%)??? Net
Required level of Approval (Internal)
Procurement Council (primary term value > $10MM Gross <$15MM Net) YES/NO
Country President (primary term value >$15MM Net but <$25MM Net) YES/NO
CPO&EVP (primary term value > $25MM Net. Single/Sole source > $20MM Gross or YES/NO
$10MM Net)
CEO (primary term value > $100mm Net) YES/NO
Required level of Approval (External
Partner Approval (refer to JOA’s for thresholds) YES/NO
4.2.1 Approach to Market
Competitive Tender YES / NO Direct Negotiation YES / NO
Contract Template (eg. MSA, SA, SO, EPCI) MSA
SAP Contract Framework, OLA type, invoice plan or Invoice Plan
Framework Order (45) PO
Compensation Basis
Personnel/Equipment
Unit Price Reimbursable Material Costs Lump Sum
Rates
Other (please
Fixed Rate Specify) Direct Negotiation
Reimbursable
4.2.2 Supplier selection
Product Category (FPAL/ Achilles) YES / NO Selection criteria used:
RFI Further prequalification Required

Prequalification Summary
(high level overview of how Bidders Bidders selected using public call for competition (BOASEM).
have been identified)

4.2.3 Bidders List

Bidders selected using public call for competition (BOASEM).

5.0 Critical Issues

Critical Issues (for example) Critical factors:

 HSEQ and other risks  Documented contractor HSE management system.

identified in classification
 Commercial risks
identified in classification
 Critical Success Factors
 Excellent historical contractor HSE performance.
 Dedicated contractor personnel/supervision.
 COP supervision.
 Compliance with agreed work-plan/schedule.
 KPI’s/performance scheme/nonperformance penalties.

 How will we ensure that

this contract is successful?

 Incentive Scheme

 KPI’s

 Change Management

 Handover

 What impact does this

contract have on ongoing
work?

6.0 Evaluation Methodology

Technical evaluation followed by commercial evaluation. A weighting factor shall be
Evaluation Model applied to technical ‘scores’ to ensure that the technical superiority of those tenderers
that achieve high technical scores is recognised during commercial evaluation.
Total System Value (TSV) or
Technical/ Commercial Provide justification/ verification for selected approach below
Weighting?
The evaluation model outlined above shall ensure that there is a strong focus upon
technical capability during tender evaluation.
Technical: Tenderer capabilities, HSE, references/experience, standard contract
High level evaluation criteria acceptance, insurance, financial status.
Please provide details here for
high level criteria for the
Commercial: Estimated contract spend shall be determined by personnel and
Technical and Commercial equipment rates multiplied by estimated usage.
evaluation

7.0 Bid Process / Negotiations

7.1 Bid/Evaluation/Negotiation Team Members
Role Name/Title/Role
Commercial responsible Craig Blake/Paul Hughes
MLN Operations Manager, MLN Maintenance Supt, MLN Production
Technical responsible
Supt. Engineering
HSEQ Representative Phil Crowther/Rachid Touati
Others (please specify role)
2 Sonatrach representatives

7.2 Schedule / Tasks

Activity Responsible Person Target Date
Complete Pre-qualification - -
Proposed Bidders List - -
Draft Request for Proposal (RFP) Craig Blake/Paul Hughes 15-Dec-2011
 Instructions to Bidders
(including associated attachments and proposal Craig Blake/Paul Hughes 15-Dec-2011
forms)
Form of Agreement
RFP Craig Blake/Paul Hughes 15-Dec-2011
(including associated attachments)
Build
Scope of Work (“Exhibit B”) Matt Donkin/Ed Westad / Jim
15-Dec-2011
(including all associated attachments) Adams
Compensation structure (“Exhibit C”) Craig Blake/Paul Hughes 15-Dec-2011
Draft Contract Management Plan Craig Blake/Paul Hughes 31-Dec-2011
Approval of Strategy, Evaluation and Bidders List
Craig Blake/Paul Hughes 15-Dec-2011
(complete as applicable)
Procurement Council -
Country President -
Concurrence GPS/CPO -
Partner Approval of Bidders List - -
Approval Evaluation model (detailed) Craig Blake/Paul Hughes 31-Dec-2011
Issue RFP Craig Blake/Paul Hughes 01-Jan-2012
Bid/ Proposal Return Craig Blake/Paul Hughes 15-Feb-2012
Craig Blake/Paul Hughes/ Matt
Combined Technical/Commercial Evaluation 15-Mar-2012
Donkin/Ed Westad / Jim Adams
Credit Appraisal of preferred bidder (if required) Craig Blake/Paul Hughes
Recommendation for award - Concurrence with Business
Craig Blake/Paul Hughes 15-Mar-2012
Unit/ Stakeholders
Approval of Recommendation for award
Craig Blake/Paul Hughes 1-April-2012
(CAD is mandatory).
Procurement Council -
Country President -
GPS/CPO (ATT) -
EVP
-
(Allow minimum of 6 weeks approval)
Partner Approval of award Craig Blake/Paul Hughes 15-April-2012
Award Contract Craig Blake/Paul Hughes 15-April-2012
Contract signature Craig Blake/Paul Hughes 30-April-2012
Commencement of Contract Craig Blake/Paul Hughes 15-May-2012

8.0 Credit Appraisal

Will Primary Candidate(s) require a Credit Appraisal by Treasury group? YES/NO

Credit Appraisal is mandatory if value exceeds $10MM gross.

Justification required below if answer above is NO for all Strategic contracts or Technical/ Commercial/ Routine contracts exceeding
$5MM in value

Justification

9.0 Prepared by:

Contracts Specialist Craig Blake/Paul Hughes Date:

Contract Manager Boyd Nagy/Dave Young Date:

Approved by Procurement up to $10MM Gross > Procurement Council

PRINT NAME
Date:

SIGNATURE

Approved by Business up to $10MM Gross > Procurement Council

PRINT NAME
Date:

SIGNATURE