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CNOOC IRAQ LIMITED

INVITATION TO TENDER

FOR

WORKOVER AND STIMULATION OPERATION SERVICE

TENDER No. : CMIT-PRT-10.30-170167

SECTION 1
INSTRUCTION TO TENDERERS

October, 2017

Dubai, U.A.E
CNOOC IRAQ LIMITED

SECTION 1

INSTRUCTION TO TENDERERS
CNOOC IRAQ LIMITED

INSTRUCTION TO TENDERERS

TABLE OF CONTENTS

1.0 GENERAL INFORMATION ........................................................................... 4


2.0 DEFINITIONS ................................................................................................ 4
3.0 PROJECT DESCRIPTION ............................................................................ 5
4.0 BID ACKNOWLEDGEMENT ......................................................................... 5
5.0 CLARIFICATION AND CORRESPONDENCE DURING BID PERIOD ........ 6
6.0 RETURN OF BID REQUEST PACKAGE ...................................................... 6
7.0 PREPARATION OF BID PROPOSAL ........................................................... 6
8.0 COMPOSITION OF THE BID PROPOSALS ................................................ 7
9.0 BID CLOSING DATE ..................................................................................... 8
10.0 SUBMISSION OF BID ................................................................................... 8
11.0 BID CONDITIONS ......................................................................................... 8
12.0 ACCEPTANCE OF BID ................................................................................. 9
13.0 CLARIFICATION OF PROPOSAL ................................................................ 9
14.0 EXTENSION OF BID PERIOD .................................................................... 10
15.0 BID BOND ..................................................................................................... 9
16.0 AWARD OF CONTRACT .............................................................................11
17.0 LAW ............................................................................................................. 10
18.0 PERFORMANCE GUARANTEE ................................................................. 10
19.0 ADVANCE PAYMENT.................................................................................. 10
20.0 INSPECTION PRIOR TO CONTRACT AWARD ..........................................11
21.0 TENDERER’S KNOWLEDGE ..................................................................... 12
22.0 CONFIDENTIALITY..................................................................................... 12
23.0 REFERENCE NUMBERS ........................................................................... 12
24.0 OTHERS ...................................................................................................... 12
25.0 ATTACHMENTS .......................................................................................... 12

ATTACHMENT 1A: BID ACKNOWLEDGEMENT


ATTACHMENT 1B: LABELS FOR PROPOSAL PACKING
ATTACHMENT 1C: STATEMENT (BEFORE CONTRACT AWARDING)
CNOOC IRAQ LIMITED

INSTRUCTION TO TENDERERS
These instructions apply to preparation of bid proposals to be submitted to Company. Tenderers
are to read the following bidding instructions thoroughly and carefully, and, to strictly follow all
the instructions and requirements stipulated herein during preparation of their proposals. Failure in
following the bidding instructions may result in rejection of a Tenderer’s proposals.
1.0 GENERAL INFORMATION
1.1 This Invitation to Tender (“ITT”) comprises the following:
SECTION 1: INSTRUCTIONS TO TENDERERS
SECTION 2: PROPOSAL CONTENTS AND FORMS
SECTION 3: TECHNICAL PACKAGE
SECTION 4: SCHEDULE OF COMPENSATION
SECTION 5: PRO FORMA CONTRACT
SECTION 6: VENDOR REGISTRATION AND -QUALIFICATION
1.2 PURPOSE OF ITT DOCUMENTS
The ITT are and shall remain the property of Company and are transmitted to Tenderer
solely for the purpose of preparing and submitting a Proposal by Tenderers in accordance
therewith. Tenderer shall keep confidential and shall not release any part of the ITT to any
third party, other than to have the third party prepare and submit to Tenderer a proposal for
part of the work.
Tenderer, whether it bid or not, shall handle all documents related to the present invitation
to Tender in a strictly confidential manner.
Tenderers shall comply with the criteria regulated in the technical, commercial and price
aspects of ITT in order to submit qualified proposals, especially any price quotation with
conditional terms and notes will NOT be accepted by Company.
1.3 AMENDMENT OF ITT
At any time prior to the Closing Date, Company may, for any reason, whether at its own
initiative or in response to a clarification requested by a prospective Tenderer, modify the
ITT by amendment.
The amendment will be published on the same web-link of ITT download and notified in
writing to all prospective Tenderers and the prospective Tenderers shall promptly
acknowledge receipt thereof by E-mail to Company.
In order for the prospective Tenderers to have reasonable time to incorporate the
amendment into the Proposal, Company may, at its discretion, extend the Closing Date
accordingly.
2.0 DEFINITIONS
2.1 “Company” means CNOOC Iraq Limited.
2.2 “ITT” means Invitation to Tender Documents issued by Company defined in Clause 1.0
hereof. .
CNOOC IRAQ LIMITED

2.3 “Tenderer” means a company who is intended and/or invited by CNOOC Iraq Limited to
bid and submits a Proposal in accordance with the requirements of this ITT. The Tenderers
shall be of eligible entity with qualified technical experiences and sound financial strength
and responsibility to support the execution of the work.
2.4 “Proposal” means documents submitted by Tenderers in line with the requirements of the
ITT.
3.0 PROJECT DESCRIPTION
The Missan Oil Fields of Iraq includes three (3) oil fields, Buzurgan, Abu Gharah and
Fauqi, which are giant onshore oilfields located 175 kilometers north of Basra city and 350
kilometers southeast of Baghdad city in Iraq, and Company has Dubai office located at
Dubai Airport Free Zone to support Iraq onsite operation.
4.0 BID ACKNOWLEDGEMENT
4.1 Within 72 hours after receipt of Tender book (“ITT”), Tenderers shall submit their
acknowledgement of receipt of the ITT package and make a confirmation of intent to or
not to submit a bid thereof by email scanned copy to Company. A format of Bid
Acknowledgement is enclosed in Section 1 of this ITT for Tenderer to follow.
4.2 The bid document purchase receipt must be received by email
to: chafikbenlamri@cmitfod.com / mohamedosman@cmitfod.com
/badreddinelarafi@cmitfod.com / AbubakrAliMohamed@cmitfod.com on or before
deadline.
Payment can be made by:
a) CASH in our financial offices in Dubai/Iraq,

Dubai office: Room 3100, 7WB, Dubai Airport Free Zone, Dubai, U.A.E,
Iraq office: FOD Office Building, Office No.239, Missan, Iraq.
b) T/T, with the transfer record sent to Mr. Jiangang Xu, Xinlu Hu(Iraq onsite) / Mr. Samir
Ghazal(Dubai office) for receipt, and Project name, ITT number, Tenderers’ name and
contact information should be mentioned in your email
Company Name of Payee: CNOOC Iraq Limited
Account Bank: Citibank N.A., Dubai, UAE
Address of Bank: PO Box 749, Oud Metha Building, Al Wasl Branch, Dubai, UAE.
SWIFT CODE: CITIAEAD
Account Number: 0100745011
IBAN: AE940211000000100745011
Financial Contact person:
Iraq onsite: Jiangang Xu, Xinlu Hu
Dubai office: Samir Ghazal
Tel: 009647822710260(Mr. Jiangang Xu), 009647816897024(Mr. Xinlu Hu)
0097142108138 (Mr. Samir Ghazal)
CNOOC IRAQ LIMITED

E-mail: xujg@cnoociraq.com / huxl@cnoociraq.com/ SamirGhazal@cnoociraq.com

5.0 CLARIFICATION AND CORRESPONDENCE DURING BID PERIOD


Tenderers shall submit their requests for clarification, notification of discrepancies or
omissions in the ITT in writing no later than five (5) calendar days before the Closing Date
specified in Clause 9.0 herein of this Section, by fax or email to the address stated in
Clause 10.2 herein of this Section.
Company will not respond to telephone inquiries from Tenderers. Additional information
or explanations regarding this ITT given to one Tenderer will be transmitted to all
Tenderers in writing. All information and explanations given by Company shall be deemed
to be construed as an integral part of this ITT.
The Bulletin/Clarification during the bid period will be published on the same web-link of
ITT download; Tenderers shall pay attention to the web link and download the
Bulletin/Clarification during the bid period.
6.0 RETURN OF BID REQUEST PACKAGE
This ITT and attached documents are considered to be confidential. Should the Tenderers
be unwilling to participate in this bid after receiving the bid documents, they should
promptly indicate their decline to this tender by signing and returning the bid
acknowledgment form requested by Company. Tenderers shall provide adequate
explanations for their declination to participate in this bid in order to remain on Company
list of Vendors for future bids.
7.0 PREPARATION OF BID PROPOSAL
7.1 GENERAL
Tenderers shall submit their proposal on the basis of the terms and conditions of the ITT
documents. Failure to prepare bid Proposals in accordance with the specifications, terms
and conditions will be cause for disqualification.
All pages of its Technical, Commercial and Price Proposal shall be signed by Tenderer's
Legal Representative or by the person or persons with a Power of Attorney issued by the
said Legal Representative.
In case Tenderers have any technical exceptions, Tenderers shall indicate them as per the
format provided in Attachment 2C of Section 2 (We refer you to Paragraph 2.10 of Section
2). In case Tenderers have any commercial exceptions, Tenderers shall indicate them as per
the format provided in Attachment 2E of Section 2 (We refer you to Paragraph 3.4 of
Section 2). In case Tenderers don't have any exception, Tenderers should mention "NO” in
the Attachment 2C and 2E and submit to Company. It will be deemed by Company that
Tenderers don’t have any exceptions to Company tender document and Pro-forma Contract
if tenderers don’t submit Attachment 2C and 2E.
7.2 LANGUAGE
The Proposal prepared by the Tenderers and all correspondence and documents related to
the Proposal by and between the Tenderers and Company shall be written in the English
language.
CNOOC IRAQ LIMITED

7.3 CURRENCY OF QUOTATION


The bid price shall be quoted in currency USD. Quotations in any other currency shall be
nullified and rejected.
7.4 PRICE
Tenderers are required to quote the prices following the format of the Schedule of Price
contained hereof in this ITT.
Unless otherwise specified, the Bid Price indicated by Tenderers shall be fixed and not
subject to variation on any account.
No any commercial or price information should be contained in a technical proposal
7.5 SITE VISIT
In the event that the Tenderer is advised to visit and examine the site of the work and its
surroundings to obtain for itself on its own responsibility all information that may be
necessary for preparing the Proposal. The cost of visiting the site shall be at Tenderer’s
own expense and the Tenderer shall take all risks, if any, in this regard.
Company shall provide necessary assistance to the Tenderer to obtain permission for any
of its personnel or agents to enter site of the work upon the premises for the purpose of
such inspection by prior arrangement, but only upon the express condition that the
Tenderer, whether its personnel or agents, will release and indemnify the Company and
their personnel or agents all liability in respect thereof and will be responsible for personal
injury (whether fatal or otherwise), loss of or damage to property and any other loss,
damage, cost and expenses whatever caused, which, but for the exercise of such
permission would not have arisen.
8.0 COMPOSITION OF THE BID PROPOSALS
8.1 The bid Proposal shall be prepared in three parts under separate bindings set out as follows:
PART I- TECHNICAL PROPOSAL
PART II - COMMERCIAL PROPOSAL
PART III – PRICE PROPOSAL
The minimum requirements for the content and information contained in each part of
Tenderer’s bid Proposal shall be construed pursuant to the SECTION 2 of this ITT.
8.2 Each part of the Bid Proposal hereof shall be written in English in one (1) original, three
(3) copies and one (1) electronic copy in CD-ROM and be separately put into its
respective envelope hereof in line with following table. Any Proposal which fails to
separate the three parts from the others will be rejected. The above mentioned one (1)
electronic copy (in both PDF and editable format) for each part should be added to a
suitable storage device and to be included in the original proposal envelope.

Technical Proposal Envelope with one (1) Envelope with three (3)
original and one (1) copies
electronic copy( in both
PDF and editable format)
CNOOC IRAQ LIMITED

Commercial Proposal Envelope with one (1) Envelope with three (3)
original and one (1) copies
electronic copy( in both
PDF and editable format)

Price Proposal Envelope with one (1) Envelope with three (3)
original and one (1) copies
electronic copy( in both
PDF and editable format)

8.3 In the event of any inconsistency or discrepancy between the original bid proposal and
copies, the original bid shall prevail. Also, the submitted hard copy of bid Proposal shall
take precedence over electronic copies for all purposes.
9.0 BID CLOSING DATE
The bid Proposal shall be delivered and submitted no later than 17:00pm, on or
before November 26th, 2017 (Baghdad Time)(“Closing Date”), unless Company
extends the said date in writing. Proposals received after above mentioned date shall
not be taken into consideration.

10.0 SUBMISSION OF BID


10.1 PACKING AND MARKING
Bid Proposal Package shall comprise six (6) separate sealed envelopes or in similar
securely sealed package designated “PART I– TECHNICAL PROPOSAL”, “PART II-
COMMERCIAL PROPOSAL”, “and PART III - PRICE OFFER. The three parts must
be respectively cross-page sealed with tenderer’s official stamp on the external
wrapping and clearly indicated. Bid Bond must be submitted together with PART II -
COMMERCIAL PROPOSAL which shall be presented to Company in a separated and
sealed envelope and duly marked and stamped on outer envelope.
Each part of bid Proposal shall be submitted in complete sets, including one (1) original
marked as “ORIGINAL”, the other three (3) copies marked as “COPY No. ” following
the proper number sequence (including electronic versions that coincide with the hard
copy presented).
For quick and convenient reference, the bid documents shall be arranged and volumed
with right insertion of page tabs in each volume to separate the sections according to the
nature and category of the contents.
10.2 BID SUBMISSION ADDRESS AND DELIVERY
The bid Proposal package shall be delivered to and received by Company at Company
Iraq onsite office only as below no later than the time and date stated in the Clause 9.0
above unless Company extends the opening date in writing.
CNOOC IRAQ LIMITED

Attention: Mr. Chafik Benlamri / Mr. Mohamed Osman Ahmed Zulfo / Badreddine Larafi,
Abubakr Ali Mohamed
Email: chafikbenlamri@cmitfod.com / mohamedosman@cmitfod.com
/ badreddinelarafi@cmitfod.com / AbubakrAliMohamed@cmitfod.com
Address: Room 239, FOD Administrative Building., Work Base, CNOOC Camp, Missan
Oil Fields.
Tel: +86-10-84527122-76224 . Ext 6062 Or 6150 Or 6224

11.0 BID CONDITIONS


11.1 VALIDITY PERIOD
Tenderer’s bid Proposal shall be irrevocable for a period of 180 calendar days from the
Closing Date specified in Clause 9.0 hereof above, and shall be opened for acceptance at
any time during this period. Company shall have the right to request Tenderers to confirm
validity of their bids for extended period.
11.2 COST OF PREPARING BID
Submission of a bid is entirely at the discretion of each Tenderer. Any cost related to this
bid Proposal preparation and submission and any subsequent cost related to clarifications,
meetings, etc. shall be by and at the sole expense of Tenderer. Company will not contribute
towards the expenses of compiling and preparing any Bid.
11.3 OWNERSHIP
All ITT Documents issued by Company are the property of Company and shall be returned
to Company if requested after expiration of the bid and validity period. The ITT shall be
returned to Company if requested after bid closing date. Company reserves its sole
discretion to dispose the proposal submitted by Tenderer after bid closing date.

12.0 ACCEPTANCE OF BID


12.1 Company is neither bound to accept any bid submitted nor the lowest bid submitted and
also reserves the right to accept or reject any or all of the Bid proposals received at its sole
discretion and without any explanation.
12.2 Company is not bound to enter into correspondence or discussion concerning the rejection
of any or all bids. Nevertheless, after the bids have been opened, Company shall have the
right to request any or all Tenderers to explain, amplify or clarify their bids without
incurring any obligation whatsoever.
13.0 CLARIFICATION OF PROPOSAL
Tenderers shall be prepared to discuss and clarify any aspect of their Proposals at any
reasonable time in Company’s office prior to awarding the Contract.
Tenderers who submit unclear or ambiguous Proposals, or Proposals containing
inconsistencies or deviations, or more generally fail to comply with the Instructions to
CNOOC IRAQ LIMITED

Tenderers, shall bear the risks of being disqualified without a further opportunity to make
amendments.
The request for clarification and response shall be in writing and no change in the price or
content of the Proposal shall be sought or offered.
14.0 EXTENSION OF BID PERIOD
If for any reasonable reason Tenderer desires more time to present its bid Proposal, it may
request a time extension in writing. If the request hereof is granted, all Tenderers will then
be notified of the extension hereof and no bids will be opened until the new due date has
expired. No extensions will be taken into consideration during the last eight (8) calendar
days of the bid period.
15.0 BID BOND
15.1 A bank guarantee for Tenderer amounting no less than 900,000.00 USD, as per attached
specimen (Bid bond) shall be submitted by the Tenderers to Company at the same time
when the Tenderer submits his proposal. The original validity of the bid bond shall be 210
calendar days as from the Closing Date and shall be extended automatically upon mutual
agreement by and between Company and Tenderer. The bid bond hereof shall be
denominated in the currency of US Dollar and/or other required currency by Company and
shall be issued by an internationally reputed bank. The bid bond can be issued in the form
of a traditional hard copy Bid Bond or issued directly to our bank via swift message.
15.2 In case a Tenderer is unable to submit a bank guarantee as bid bond the Tenderer may:
(a) Transfer the amount mentioned above in clause 15.1 to Compnay bank account
(see clause 4 of this Section) in the currency of US Dollars or of equivalent value
in United Arab Emirates Dirhams. (AED 3.68 to USD 1.00)
(b) Provide Company with a cheque issued from a bank within the UAE, which shall
be deposited into Company account , of the amount mentioned above in clause
15.1 in the currency of US Dollars or of equivalent value in United Arab Emirates
Dirhams. (the exchange rate between AED and USD shall be fixed as AED 3.68 to
USD 1.00)
(c) Pay the amount in Cash in Company office in Dubai or camp in Iraq, if the value
of the bid bond is under USD 10,000.00.
15.3 The bid bond is required to protect Company against the risk of Tenderer’s conduct which
would warrant the bid bond forfeiture. The bid bond may be forfeited if any or all situation
happens as follows:
(a) If a Tenderer withdraws its Proposal during the period of proposal Validity
specified in this ITT documents.
(b) In the case of a successful Tenderer, if the Tenderer fails:
• To sign the Contract after Tenderer is notified as a successful Tenderer; or
• To furnish performance bond in accordance with Clause 18 herein of this
Section.
15.4 The Bid Bond of unsuccessful Tenderers, except that of the second most competitive
Tenderers, shall be returned without interest on and after the Contract has been signed and
CNOOC IRAQ LIMITED

awarded. The bid bond of the first/second most competitive Tenderers shall be returned
without interest on and after formal signature and execution of the CONTRACT and
receipt of the performance guarantee from the successful Tenderers.
15.5 Any Proposal not accompanied by an acceptable bid bond in accordance with requirement
hereof may be rejected by Company as non-responsive subjected to bid bond forfeiture.
15.6 Any bid bond shall be provided at the Tenderer’s expense.
.
16.0 AWARD OF CONTRACT
16.1 The successful Tenderer will be notified by Company in writing as soon as practicable
after the bid closing date and shall, within a reasonable time, enter into Contract with
Company. Company reserves its sole discretion to determine the contract award strategy
which shall include but not limited to wholly award, partial award, main contract plus back
contract strategy etc. Only when both parties sign the Contract will Company be bound to
the Tenderer for the performance of its obligations under the Contract.
16.2 TENDERERS AS SINGLE ENTITY
Company expects to Contract with the successful Tenderer as a single entity. If Tenderer
intends to subcontract substantial parts of the work, Tenderer shall provide appropriate
evidence of commitment that the subcontracting relationship will be in existence within
the term of Contract if awarded.
16.3 INSURANCE
Company reserves the right to seek verification of Tenderer’s minimum insurance
coverage including insurance agent verification in the form of certificates of insurance
prior to Contract awarded.
17.0 LAW
17.1 This Bid shall be construed in accordance with and governed by the Laws of England
(without reference to its rules as to conflicts of law).
17.2 Tenderers shall also be fully aware of the Iraqi laws and regulations including but not
limited to those of Tax, Labor, Social Security, Customs duties and their latest amendments.
18.0 PERFORMANCE GUARANTEE
Within thirty (30) calendar days after signing of the Contract, the successful Tenderer shall
submit to Company an unconditional bank guarantee from an internationally reputed bank
as specified in the terms and conditions of Proposed Contract attached to the ITT for good
performance of Contractor’s obligations.
19.0 ADVANCE PAYMENT (NOT APPLICABLE)
Company does not make any advance payment required by successful Tenderer with the
exception that successful Tenderer provide a bank guarantee for the equal advance
amount to Company which is accepted by Company.
20.0 INSPECTION PRIOR TO CONTRACT AWARD
During the bid evaluation period, Tenderers shall provide access to allow Company, third
party inspection teams and regulatory authorities to perform pre-acceptance and
CNOOC IRAQ LIMITED

operability compliance survey for the purpose of the award of Contract.


21.0 TENDERER’S KNOWLEDGE
It is the responsibility of Tenderer, prior to submitting its Proposal, to make certain that it
has in its possession all documents, specifications, data-sheets, drawings necessary for its
proposal.
Tenderer shall be deemed to have a full working knowledge of the Operation Areas
including, where applicable, the prevailing climatic and environmental conditions, rules
and regulations for work permits in the Republic of Iraq, and requirements and
authorizations for access to the Operation Areas, and to have been familiar with, and
obtained all necessary information and satisfied itself as to the extent and nature of the
work, factors, the data, contingencies and all other circumstances or conditions which may
in any way affect the amount or the nature of the Proposal, or the performance of the work
in respect of supply of labors, plants, tools and materials, and any other matters, including,
where applicable, the geotechnical, geophysical, hydrological and climatic conditions at
the Operation Areas in the event Tenderer is successful.
22.0 CONFIDENTIALITY
22.1 Tenderer has agreed as a condition of receiving this ITT that Tenderer shall keep the
contents of this ITT strictly confidential and shall use only such information necessary for
the preparation of the Bid.
The disclosure of information in this ITT to Tenderer hereunder shall not be construed as
granting to Tenderer a license or any rights under copyright, trade secret or any patents.
22.2 Tenderer shall not disclose to any third party all or any part of the information disclosed by
Company or otherwise obtained by Tenderer in the course of and/or as a result of the
performance of the Bid preparation hereunder.
If such disclosure is required by law or requested by governmental or regulatory agency or
legal or arbitration or other legal proceedings between Tenderer and Company, Tenderer
shall notify Company in writing of contents of such disclosure in advance.
23.0 REFERENCE NUMBERS
Company’s reference numbers must be clearly indicated on your Proposal and/or all letters,
communications and other documents related thereto.
24.0 OTHERS
24.1 Unless and until such time a formal Contract is prepared and executed, Tenderer’s proposal
together with Company’s acceptance thereof and signing of letter of intent shall constitute
a binding Contract.
24.2 Tenderer shall provide access, including audit access, to its personnel, records, documents
and the like as may be required for any reasonable purposes, including verification of the
levels and types and services to be provided by the Tenderer and of any of its proposed
subcontractors.
25.0 ATTACHMENTS
Attachments 1A, 1B and 1C, hereinafter referred to follow this SECTION.
CNOOC IRAQ LIMITED

26.0 ADDITIONAL DOCUMENT REQUIRED FROM SUCCESSFUL TENDERER


BEFORE CONTRACT AWARDING:
26.1 For successfulTenderer registered inside China

The successful Tenderer registered inside China should query by itself the crime record of
offering bribes of the Tenderer company, its legal representative and project manager
(including chief supervision engineer and chief supervision engineer representative) from
procuratorate and provide the query result covering the last ten (10) years, and such query
result shall be issued by procuratorate within last two (2) months.
26.2 For successful Tenderer registered outside China
The successful Tenderer registered outside China should query by itself the crime record of
offering bribes of the Tenderer company, its legal representative and project manager
(including chief supervision engineer and chief supervision engineer representative) from
its government authority and provide the query result covering the last ten (10) years, OR
provide the statement in attached format (STATEMENT Outside China Tenderer (before
contract awarding)) signed by its legal representative.
NOTE:
• The weight of each package of your bid proposal must be less than 30KG.
• Write the Tender’s name, number and contact person details on express package.
CNOOC IRAQ LIMITED

SECTION 1

INSTRUCTION TO TENDERERS
CNOOC IRAQ LIMITED

ATTACHMENT 1A — BID ACKNOWLEDGEMENT

BID ACKNOWLEDGEMENT

To : CNOOC IRAQ LIMITED


Fax No. :
Attention :
Subject :
(Tender No.:CMIT-PRT-10.30-xxxxx)

With reference to the above ITT ,we would like to inform you that we want to participate you
public tender , we have download all documents from your website on _ and are in usable
condition without damage (Alternatively, please specify any documents that are missing, damaged
or unusable).

We agree to treat the contents of the package and our bid as confidential within our organization,
and we will not disclose any aspect of the package or our bid to any third party.

We would like to indicate our intention for the mentioned services as below:

□ We WILL bid on or before the bid closing time stated in your Invitation Letter to Tender.
Further correspondence in connection with this ITT should be addressed to:

Name : Title :
Company : Address :
Phone No. : Fax No. :
E-mail :

□ We WILL NOT bid and therefore we are returning this ITT in its entirety with this ITT
Acknowledgement Letter. We decline to bid for the Work for the following reasons:

Regards,

Signature/ Date

Name and Title (in print)


CNOOC IRAQ LIMITED

Note:
1) Tenderer shall state by “√” or “×” in the □ above to indicate their intent to participate or not in
the Bid.
2) This Bid Acknowledgement must be signed and returned to Company by facsimile transmittal to
the above attention no later than 72 hours after receipt of ITT package.

END OF SECTION 1, ATTACHMENT 1A


CNOOC IRAQ LIMITED

SECTION 1
INSTRUCTIONS TO TENDERERS

ATTACHMENT 1B — LABELS FOR PROPOSALS PACKING


CNOOC IRAQ LIMITED

ATTACHMENT 1B

LABELS FOR PROPOSALS PACKING

The Proposal sealed as required by the ITT shall bear the labels with full reference information as
appropriate as attached for easy identification:

1. Label For The Technical Proposal External Packing

SEALED BID -- OPENING FORBIDDEN WITHOUT AUTHORIZATION

To: CNOOC IRAQ LIMITED


Att.:
Add.:

INVITATION TO TENDER № _______________________________

FOR

*************************

TENDERER’S NAME:

TENDERER’S CONTACT PERSON NAME: EMAIL: PHONE:

TECHNICAL PROPOSAL—【ORIGINAL / COPY】 PACKAGE _ of _ ( )

NOTES:
*(1): Original or Copy 1 to copy 3 as appropriate
*(2): "ONE OF X", "TWO OF X" etc., as appropriate, if more than one package.
CNOOC IRAQ LIMITED

2. Label For The Technical Proposal Internal Envelopes / Boxes

SEALED BID -- OPENING FORBIDDEN WITHOUT AUTHORIZATION

To: CNOOC IRAQ LIMITED


Att.:
Add.:

INVITATION TO TENDER № _______________________________

FOR

**********************

TENDERER’S NAME:

TENDERER’S CONTACT PERSON NAME: EMAIL: PHONE:

TECHNICAL PROPOSAL--【ORIGINAL / COPY】 PACKAGE _ of _ ( )

NOTES:
*(1): Original or Copy 1 to copy 3 as appropriate
*(2): "ONE OF X", "TWO OF X" etc., as appropriate, if more than one package.
CNOOC IRAQ LIMITED

3. Label For The Commercial Proposal External Packing

SEALED BID -- OPENING FORBIDDEN WITHOUT AUTHORIZATION

To: CNOOC IRAQ LIMITED


Att.:
Add.:

INVITATION TO TENDER № _______________________________


FOR

*********************

TENDERER’S NAME:

TENDERER’S CONTACT PERSON NAME: EMAIL: PHONE:

COMMERCIAL PROPOSAL--【ORIGINAL / COPY】 PACKAGE _ of _ ( )

NOTES:
*(1): Original or Copy 1 to copy 3 as appropriate
*(2): "ONE OF X", "TWO OF X" etc., as appropriate, if more than one package.
CNOOC IRAQ LIMITED

4. Label For The Commercial Proposal Internal Envelopes / Boxes

SEALED BID -- OPENING FORBIDDEN WITHOUT AUTHORIZATION

To: CNOOC IRAQ LIMITED


Att.:
Add.:

INVITATION TO TENDER № _______________________________

FOR

***************

TENDERER’S NAME:

TENDERER’S CONTACT PERSON NAME: EMAIL: PHONE:

COMMERCIAL PROPOSAL--【ORIGINAL / COPY】 PACKAGE _ of _ ( )

NOTES:
*(1): Original or Copy 1 to copy 3 as appropriate
*(2): "ONE OF X", "TWO OF X" etc., as appropriate, if more than one package.
CNOOC IRAQ LIMITED

5. Label For The Bid Bond External Envelopes

SEALED BID -- OPENING FORBIDDEN WITHOUT AUTHORIZATION

To: CNOOC IRAQ LIMITED


Att.:
Add.:

INVITATION TO TENDER № _______________________________

FOR

***************

TENDERER’S NAME:

TENDERER’S CONTACT PERSON NAME: EMAIL: PHONE:

Bid Bond--【ORIGINAL】 PACKAGE _ of _ ( )


CNOOC IRAQ LIMITED

6. Label For The Price Envelopes

SEALED BID -- OPENING FORBIDDEN WITHOUT AUTHORIZATION

To: CNOOC IRAQ LIMITED


Att.:
Add.:

INVITATION TO TENDER № _______________________________

FOR

****************

TENDERER’S NAME:

TENDERER’S CONTACT PERSON NAME: EMAIL: PHONE:

PRICE—【ORIGINAL / COPY】 PACKAGE _ of _ ( )

NOTES:
*(1): Original or Copy 1 to copy 3 as appropriate
*(2): "ONE OF X", "TWO OF X" etc., as appropriate, if more than one package.
CNOOC IRAQ LIMITED

Attachment 1 C

STATEMENT (before contract awarding)


(For Tenderer registered outside China)

We, _____________________________ (Tenderer name), herein:


a) warrant that the Tenderer, its legal representative and project managers (including chief
supervision engineer and chief supervision engineer representative) have not made, offered
or authorised, and they have no criminal record or conviction in relation to the making,
offering or authorising of, any payments, gifts or other advantages, directly or indirectly, to
any Public Official in the last ten (10) years; and
b) covenant that the Tenderer will not, and shall procure that its legal representative and
employees will not, make, offer, or authorise any such actions or things,
which may violate any anti-bribery laws including those in the Tenderer’s place of incorporation,
principal place of business, or its ultimate parent company’s place of incorporation or principal
place of business (Anti-bribery Law).

For the purposes of this statement, a “Public Official” means (i) an elected or appointed official,
employee or agent of any governmental authority; (ii) an official of a political party; or (iii) a
candidate for public office; (iv) any other person so defined under the Anti-bribery Law.

We shall indemnify CNOOC Iraq Limited and its affiliates against any damages, losses, penalties,
costs (including reasonable legal costs and attorneys’ fees) and liabilities arising from or related to
the events underlying our admission of allegations made by any governmental authority or a final
adjudication in connection with a violation of the above anti-bribery laws.

_________________________________
Name and Signature of Legal Representative

For and on behalf of __________________________________


(the “Tenderer”)

______________________________ Date
CNOOC IRAQ LIMITED

INVITATION TO TENDER

FOR

WORKOVER AND STIMULATION OPERATION SERVICE

SECTION 2

PROPOSAL CONTENTS AND FORMS

TENDER No. : CMIT-PRT-10.30-170167

October, 2017
Dubai, U.A.E
CNOOC IRAQ LIMITED

PROPOSAL CONTENTS AND FORMS


TABLE OF CONTENTS
1.0 PROPOSAL COVER LETTER
2.0 TECHNICAL PART
3.0 COMMERCIAL PART
4.0 PRICE PART
5.0 ATTACHMENTS
ATTACHMENT 2A: PROPOSAL FORMAT OF COVER LETTER
ATTACHMENT 2B: CORPORATE AND FINANCIAL INFORMATION FORM
ATTACHMENT 2C: TECHNICAL EXCEPTIONS FORM
ATTACHMENT 2D: BID BOND FORMAT
ATTACHMENT 2E: COMMERCIAL EXCEPTIONS FORM
ATTACHMENT 2F: HSE QUESTIONNAIRE
ATTACHMENT 2G: RESUME FORM
ATTACHMENT 2H: EXPERIENCES
CNOOC IRAQ LIMITED

PROPOSAL CONTENTS AND FORMS


Tenderer’s Bid Proposal shall respond to each of the requirements set forth below and contain the
information requested in this ITT.
The “Proposal Contents and Forms” is only the minimum requirements for the content of
Tenderer’s Bid Proposal. In the event that Tenderers wish to propose information beyond the scope
of the provided requirements listed herein, Tenderers will enhance or enrich its Bid Proposal in
addition to the requirements below.
1.0 PROPOSAL COVER LETTER
Tenderers shall complete and sign the Cover Letter on Tenderer’s letterhead as shown in
Attachment 2A. Tenderers shall include the Cover Letter in its Technical Proposal,
Commercial Proposal and Price Proposal. Bid Proposal must be signed by a person duly
authorized to do so.
2.0 TECHNICAL PART
Tenderers shall submit a Technical Proposal discussing the methods and resources to be used
to accomplish the Services described in the Scope of Work set forth in SECTION 3 of
TECHNICAL PACKAGE. The Technical Proposal submitted by Tenderers shall contain all
technical information as specified by Company including technical data, manuals and other
un-priced information to allow Company to perform an evaluation of the Technical Proposal
prior to the opening of Tenderer’s Commercial and Price Proposal.
The Technical and Un-priced Commercial Proposal shall not contain any pricing information.
If pricing information is included in the Technical Proposal, un-priced Commercial Proposal
or the soft electronic copy of technical and Un-price Commercial Proposal, the Tenderers will
be automatically disqualified.
Tenderers shall prepare a Table of Contents in the Technical Proposal, including the contents,
at a minimum, as follows:
2.1 INTRODUCTION
Prepare a brief introduction including a general demonstration of understanding of the scope
and complexity of the required work.
2.2 ORGANIZATION STRUCTURE
Tenderers shall submit an organization chart indicating all key personnel that will be involved
in the work covered by this ITT, indicating all lines of command and the job scope
organization.
2.3 PROJECT MANAGEMENT
Tenderers shall include a statement as to how the work will be administered, implemented and
controlled, with specific attention to interfaces.
Tenderer is required to prepare a detailed description of existing procedures and specifications
CNOOC IRAQ LIMITED

that are proposed for the overall guidance of each discipline during execution of the work. The
description must demonstrate that the proposed procedures and specifications have sufficient
detail to guide the application of applicable national regulations and industry codes and
standards throughout the term of the Proposed Contract.
2.4 EXECUTION PLAN
Tenderers shall describe the plan and methodologies to be employed to accomplish the
required work. The plan should include:
 The Proposed Operation Program;
 Logistic Support Plan;
 HSE management scheme;
 Emergency plan;
 Miscellaneous;
2.5 PROPOSED EQUIPMENT AND MATERIAL INFORMATION
Tenderers shall list its proposed equipments, facilities and material in its Bid Proposal in
according to the requirements.
Tenderers shall submit comprehensive information and details about the equipments and
facilities and material it proposes in its Bid Proposal, clearly identifying the availability,
suitability and specification.
Tenderers shall submit evidence of valid certification / classification for proposed equipments,
facilities and materials.
2.6 KEY PERSONNEL RESUME
Tenderers shall submit resumes as the attached format of 2G in Section 2 and job grade of all
key personnel Tenderers intends to use for this Work, including but not limited to
responsibilities, summaries of training and education, relevant experience and qualification
certificate etc.
2.7 SUBCONTRACTOR
Tenderers shall indicate all Subcontractors that are proposed to be utilized. Any portion(s) of
Work to be subcontracted shall be clearly identified.
Company reserves right to reject the subcontractor whose recent operation and performance
had caused material loss to the Missan Oil Company of Iraq. Company does not accept that
the subcontractor subcontracts its portion of work to potential subcontractors.
For each portion subcontracted, Tenderers shall submit relevant information as follows:
 The proposed subcontractor’s name, address and location etc;
 The nature of business and specialist services;
 The availability of resources including manpower;
CNOOC IRAQ LIMITED

 The experiences in Iraq for last three (3) years;


 Tenderer’s partnership with the subcontractor;
 Subcontractor’s present contract status.
Tenderers are required to submit sufficient information and data to enable Company to assess
the propriety of accepting the proposed subcontractor for the part of the Work proposed to be
assigned.
The list of Subcontractor shall be subject to the approval of Company and Company may
reject some of them.
2.8 HSE INFORMATION
Tenderers shall submit details in accordance with the form listed in the Attachment 2F of
Section 2 and all details shall be in compliance with the requirements.
HSE Information (Attachment 2F) shall be including in the PART I – TECHNICAL
PROPOSAL.
If Contractor provides security team by themselves, the private security companies they use
shall be on security companies list recommended and accepted by Missan Oil Company
(MOC).
REED, Babylon, Erinys, Falcon Wings, Al-Tasweeb, Derraa Al-Rumaila or Defaf Al Khaleej
2.9 EXPERIENCE AND QUALIFICATIONS
Tenderer is to submit its experiences with reference to the similar work. Tenderer is to list out
its major clients who have been supplied and rendered with similar equipments supplies and
services by the Tenderer in according to the form of the Attachment 2H of this Section 2.
Except the evidence of valid certification / classification for each of the proposed equipments,
facilities and materials as required in Item 2.5 above, Tenderer shall submit its other
qualifications for the Work.
2.10 EXCEPTIONS OF TECHNICAL MATTERS
Company reserves the right to reject any Bid Proposal containing exceptions. However, if
Tenderer does submit exceptions, such exceptions shall be recorded in the
Exceptions/Clarifications form of technical matters in Attachment 2C of Section 2. If no
exceptions or clarifications of technical matters are taken, Tenderer shall state “NONE” as
appropriate.
All items in the proposed Contract to which no exception is expressly noted shall be
considered non-negotiable.
2.11 INSURANCE
Tenderers shall submit certificates of insurance or equivalent evidence from its insurance
companies or authorized insurance broker:
CNOOC IRAQ LIMITED

 Evidencing the coverage and endorsements as required by the Company in Section 3 of


Technical Requirement;
 The insurance policies required by the Contract will be in force during the period of the
Proposed Contract.
2.12 OTHERS
Any other document of technical aspect is necessary for the Bid Proposal.
3.0 COMMERCIAL PART
ATTACHMENT 2A, 2B, 2D, 2E and 2H shall constitute the Commercial Part.
3.1 CORPORATE AND FINANCIAL INFORMATION
Tenderers shall provide all information requested in the Attachment 2B. Such information
includes, at the minimum, the following:
 Name, address and contact information;
 Organization;
 Business license or Registration certificate;
 Human Resources Information;
 Financial Information;
 Evidence of Tenderer’s Signature Authority;
 Legal Actions
 Miscellaneous

3.2 BID BOND


For the purpose of establishing the required guarantees prior to award of any contract,
Tenderers shall submit with its Bid Proposal:
A bank guarantee for Tenderer as per attached specimen Bid Bond, Attachment 2D in this
Section shall be submitted by the Tenderers to Company at the same time the Tenderers
submits his proposal.
Note: The Original of Bid Bond shall be sealed and packed separately in opaque envelope and
not be included in the Part I – Technical Proposal, Part II – Commercial Proposal and Part III
– Price Proposal.
3.3 PRICE OFFER (UN-PRICED)

Tenderers shall copy the price tables and submit this price tables from the SECTION 4 in un-
priced, no price information shall be included into this table, otherwise, it will be disqualified
directly. The un-priced price offer shall be submitted with the Commercial Proposal.
CNOOC IRAQ LIMITED

Tenderers shall use the words/phrases “Quoted” and “No Quoted” where appropriate to
replace the price. If one item cost is included in other item(s), Tenderer shall mention in this
un-price part “Quoted”, and in price part shall make “0” or “included”. Tenderers shall strictly
follow the format of this schedule; any additional Note/ Remark mentioned in the price part
may lead to disqualification.
3.4 COMMERCIAL EXCEPTION
Company reserves the right to reject any Bid Proposal containing exceptions. However, if
Tenderer does submit exceptions, on ITT and Pro-forma Contract such exceptions shall be
recorded in the Commercial Exceptions/Clarifications form in Attachment 2E of Section 2.
Each exception listed (disregarding typographical errors, etc.) must have an associated
schedule benefit and/or price reduction (a specific percent to be applied to Tenderer’s prices)
should Company agree to the exception.
Exceptions listed without an associated schedule benefit and/or price reduction may have a
value assigned by Company for Bid Evaluation purposes and may be cause for rejection of the
Bid.
If no commercial exceptions or clarifications are taken, Tenderers shall state “NONE” as
appropriate.
3.5 SUBCONTRACTORS
Tenderers shall provide the details about subcontractors as per Item 2.7 above of this section.
Tenderers shall indicate all Subcontractors that are proposed to be utilized. Any portion(s) of
Work to be subcontracted shall be clearly identified.
3.6 JOINT BIDDING
Joint bidding is NOT accepted by Company;
3.7 MISCELLANEOUS
 Statement on Tenderer’s letterhead, certifying that it has not been declared bankrupt.
 Any other documents of commercial aspect necessary for the Proposal.
4.0 PRICE PART
4.1 COMPOSITION OF PRICE PART
The price part shall contain the Cover Letter of Bid, the Schedule of Prices and Rates and
shall be prepared and sealed separately and independently.
4.2 PRICE OFFER MATTERS
 Tenderers shall enter all proposed prices, sums, rates for the subject WORK on a copy as
required;
 Tenderer’s price offer shall be in accordance with and in strict compliance with the
Proposed Contract and all commercial terms and conditions relevant thereto;
CNOOC IRAQ LIMITED

 All Bid prices shall be listed in Bid Currency (USD) which will also be the Contract
Currency;
 Detailed breakdown of all prices shall be given if requested by Company;
 Once specified, the price submitted in Tenderer’s Price Part shall be fixed and not be
subject to revision for any reasons including currency fluctuations;
 Any discounts offered must be clearly stated.
 In case of any discrepancy between the unit price and the subtotal quoted price, the unit
price shall be prevail.
 Tenderer’s price proposal shall be in accordance with and in strict compliance with the
price format contained in Section 4, Schedule of Compensation, Proposed Contract and
all commercial terms and conditions relevant thereto, Tenderer’s price proposal shall be
disqualified if there is any inconsistency or incompliance.

5.0 ATTACHMENTS
Attachments 2A, 2B, 2C, 2D, 2E, 2F, 2G and 2H referred to above, follow this Section.

6.0 Tenderers shall comply with the criteria regulated in the technical, commercial and price
aspects of ITT in order to submit qualified proposals, especially any price. quotation with
conditional terms and notes will not be accepted by Company
CNOOC IRAQ LIMITED

SECTION 2

PROPOSAL CONTENTS AND FORMS

ATTACHMENT 2A - PROPOSAL FORMAT OF COVER LETTER


CNOOC IRAQ LIMITED

ATTACHMENT 2A - PROPOSAL FORMAT OF COVER LETTER

Date:

To : CNOOC IRAQ LIMITED

Address :

Attention :

Subject :

(TENDER NO.: CMIT-PRT-10.30-xxxxx )

The undersigned confirms that it has carefully examined the above referenced Invitation to Bid Proposal,
hereinafter referred to as “ITT” dated [insert ITT date in dd/mm/yyyy format]

(a) Having examined your Request for Proposal and attachments thereto in respect of the above mentioned
package, we offer to provide the said Work in conformity with the said documents of the amounts and rates
contained in this Bid.

(b) If awarded the work, the undersigned hereby agrees to enter into a Contract with COMPANY under the
terms and conditions of the Contract included in the above referenced ITT and that the information
submitted by Tenderers in its Bid Proposal will be incorporated into the Contract.

(c) Tenderer agrees to that its Bid Proposal constitutes a firm offer to COMPANY which cannot be withdrawn
within 180 calendar days from the Bid Closing Date.

(d) Tenderer confirms it has fully satisfied itself as to the extent, the nature of the WORK to be performed and
has not included any pricing information in its Technical and Commercial Proposal, which will result in
disqualification.

(e) Tenderer confirms and accepts that COMPANY is not bound to accept the lowest or any proposal received
nor obliged to assign a reason for the rejection of any proposal. Tenderer confirms that any costs incurred in
the preparation of this Bid Proposal are entirely for Tenderer’s own account.

(f) Tenderer confirms that, if awarded the Contract, Tenderer will provide a Performance Bond strictly in
accordance with requirements and the Pro-Forma Contract included in this ITT.

(g) Tenderer certifies that this Bid Proposal is a bona-fide Bid Proposal and intended to be competitive and that
Tenderer has not fixed or adjusted the amount of the Bid Proposal by or under or in accordance with any
agreement or arrangement with any person not directly involved with its preparation.

Signed:

(Tenderer’s Name)
CNOOC IRAQ LIMITED

Signature: __________________________________

Printed Name: __________________________________

Title: __________________________________

Date: __________________________________

Notes: The Bid Proposal must be signed by person authorized to do so. If the person who signs the Bid is not
shown on the Certificate of Registration as having the right to sign on behalf of Tenderer, then the evidence shall
also include a certified power of attorney which authorizes that person to sign on behalf of Tenderers. Such power
of attorney must be executed by a person or persons who are shown on the Certificate of Registration as having
signature authority on behalf of Tenderer.

END OF SECTION 2, ATTACHMENT 2A


CNOOC IRAQ LIMITED

SECTION 2

PROPOSAL CONTENTS AND FORMS

ATTACHMENT 2B - CORPORATE AND FINANCIAL INFORMATION


CNOOC IRAQ LIMITED

ATTACHMENT 2B – CORPORATE AND FINANCIAL INFORMATION

Tenderers shall provide all information requested. Write ‘Nil’ or ‘NA’ (Not Applicable) where appropriate.

1.0 TENDERERS INFORMATION

1.1. Name, Address and Contact Information

Enter company address and contact information here:

Company Name:

Registered Address:

Correspondence Address:

Contact Person:

Title:

Telephone:

Fax:

Email:

Title of Beneficiary’s Bank Account:

IBAN / Account Number of Beneficiary:

Name of Beneficiary’s Bank:

Name of Branch of Beneficiary’s Bank:

Address of Branch of Beneficiary’s Bank:


Bank information :
SWIFT/SORTING CODE:

Name of Intermediary Bank:

Name of Intermediary Bank Branch:

Address of Intermediary Bank Branch:

SWIFT/SORTING CODE:

 Exact name of company with whom the CONTRACT would be made:


CNOOC IRAQ LIMITED

1.2. Organization

Provide the following information with regard to your company:

Company Type, e.g. Corporation, Proprietorship, Partnership,


Individual, Limited Liability Company or other:

Date of Company registration or incorporation:

Registrar of Companies File Registration Number:

Date of commencement of business operations:

Provide a certified copy of Tenderer’s Certificate of Registration, as issued by the companies registry in the
Tenderer’s home country, and if the Certificate is not in English, a certified translation into English must be
attached to the original language certificate.

1.3. Shareholders

Identify the shareholders and percentage of the company owned by each.

Shareholder Name Address Percentage Held

TOTAL 100%

1.4. Company Directors

Provide the following information regarding company directors.

Name Title Period

1.5. Key Management Staff

Provide the following information for your key management staff.

Professional
Name Title Length of Service
Qualification

1.6. Permanent Employee Information


CNOOC IRAQ LIMITED

Provide the following information regarding permanent employees.

Description Total (%)

Management
Technical
Non-Technical
Other
100%

1.7. Local Affiliate

 Is your company a local affiliate of an overseas parent/principal company involved in similar nature of
work? Answer “Yes” or “No”

YES: NO:

 If YES, attach a corporate organisation chart indicating the structure of Tenderers in relation to its
parent company, affiliated companies and subsidiaries and the ultimate holding company.

 Name of Ultimate Corporate Parent::

1.8. Subsidiaries

 Does your company have any subsidiary company(s)? Answer “Yes” or “No”.

YES: NO:

 If YES, list the name(s) of the subsidiary company(s).

1.9. Duties Exemption

 Is your company located in a Free Port or Free Trade Zone (FTZ) or in a Licensed Manufacturing
Warehouse (LMW) or enjoy duty exemption under any special arrangements? Answer “Yes” or “No”.

YES: NO:

 If YES, provide details:

1.10. Financial Information

Provide the following information regarding your company’s capital structure and debt:

1) Capital structure and debt

2) Authorized capital

3) Paid-up capital

4) Working capital

5) Amount of loan/overdrafts and sources


CNOOC IRAQ LIMITED

6) Amount of loan repayment and sources

1.11. Audited Financial Statements

Attach audited financial statements for the last three (3) years in English.

1.12. Contract Financing

 Will contract financing be required? Answer “Yes” or “No”.

YES: NO:

 If YES, describe the amount and source of financing required for the contract considering that payment
shall be made by milestone payments or otherwise as described in the contract. Attach evidence of
credit availability, listing details of bank facilities in a form of banker’s references.

1.13. Legal Actions

Have there been, or is there currently, any litigation, suits or court actions against your company? Answer
“Yes” or ”No”:

YES: NO:

1.14. Authorized Signatories

Who is authorized to sign the contract on behalf of your company?

Name Title

 If the person who signs the CONTRACT is not shown on the Certificate of Registration as having the
right to sign on behalf of Tenderers, then the evidence shall also include a certified power of attorney
which authorizes that person to sign on behalf of Tenderers. Such powder of attorney must be
executed by a person or persons who are shown on the Certificate of Registration as having signature
authority on behalf of Tenderers.

1.15. Miscellaneous Tenderers Information

Attach any printed technical and operational information detailing the general capabilities, services offered
and any information, which would be helpful in the analysis of Tenderers.

END OF SECTION 2, ATTACHMENT 2B


CNOOC IRAQ LIMITED

SECTION 2

PROPOSAL CONTENTS AND FORMS

ATTACHMENT 2C - EXCEPTION FORMAT OF TECHNICAL MATTERS


CNOOC IRAQ LIMITED
ATTACHMENT 2C – EXCEPTION FORMAT OF TECHNICAL MATTERS

Tenderers must be in full compliance with the requirements of this ITT. Nothing shall change or supplement this ITT, except ITT revisions by means of Circular
Letter issued in writing by COMPANY. However, should Tenderers wish to take exception to anything contained in this ITT, these shall be listed below.

Exceptions of Technical Matters should be supplement to a fully compliant tender. Exceptions that may modify or replace contract terms or other particulars are
subject to rejection and may be cause for disqualification of a tender.

* Cost
Article/ WORKS
Current Text (as it appears Impact (Only
Clause Proposed Exceptions Reason(s) for Exceptions Impact
in ITT) Indicate Yes
No. (+/-)
or No)

* DO NOT enter any price information.

END OF SECTION 2, ATTACHMENT 2C


CNOOC IRAQ LIMITED

SECTION 2

PROPOSAL CONTENTS AND FORMS

ATTACHMENT 2D - FORMAT OF BID BOND


CNOOC IRAQ LIMITED

ATTACHMENT 2D – FORMAT OF BID BOND

I. We, the undersigned (1) ________________ (hereinafter referred to as GUARANTOR),


established at (2) ________________ represented by (3) _ _______have taken notice of the Bid Ref
_________________submitted by (4) whose registered office is at (5)
(hereinafter referred to as TENDERER) to COMPANY.

II. GUARANTOR hereby guarantees the due performance by TENDERER of TENDERER'S obligations
under the TENDER NO.:

III. If TENDERER fails to comply with any of its obligations under the ITT Documents and/or if
TENDERER withdraws said Bid within the period of validity of its Bid and/or if TENDERER fails
after receipt from COMPANY of Letter of Award to enter into the CONTRACT with COMPANY, or to
provide a Performance Bank Guarantee in accordance with the CONTRACT requirements, then
GUARANTOR hereby irrevocably undertakes on behalf of TENDERER to pay to COMPANY on first
demand any sum of sums not exceeding (6) _________________ (US DOLLAR).
_________________

IV. Each demand by COMPANY for payment under this Bank Guarantee shall be made in writing
(including telex or cable ) to the following address:

(7) _________ ______ ___________________________________

GUARANTOR shall promptly notify to COMPANY any change in the above address.

V. Each demand under paragraph IV above shall indicate the breach of TENDERER'S obligations as
notified to TENDERER by COMPANY.

VI. GUARANTOR shall make payment hereunder on first demand without restriction or conditions
without any need for evidence as to the veracity of the same or to issue any formal notice or to take any
action through administrative or legal channels and notwithstanding any objection by TENDERER,
GUARANTOR shall not require COMPANY to justify the breach indicated in its demand for payment,
nor shall GUARARNTOR have any recourse against COMPANY in respect of any payment made
hereunder.

VII. No alteration in the terms of the Bid made by agreement between TENDERER and COMPANY shall in
any way release GUARANTOR from all or any part of its liabilities under this Bank Guarantee.

VIII. GUARANTOR shall pay any sum demanded by COMPANY hereunder within fifteen (15) calendar
days after the date of receipt of COMPANY'S demand.

IX. This Guarantee shall remain valid for a period of 210 calendar days from the closing date for
submission of Bid and in the event Guarantor is notified by COMPANY of the award of the
CONTRACT by COMPANY it shall be valid until signature of the CONTRACT by TENDERER and
COMPANY and the APPROVAL by COMPANY of the Performance Bond submitted by the
TENDERER for the CONTRACT. But at the latest, This Guarantee shall expire on .

X. The laws of England and Wales shall govern the interpretation, construction, enforceability, legality and
CNOOC IRAQ LIMITED

validity of this Bond, and all disputes arising hereunder or in any manner related hereto. This Bond
shall be subject to the Uniform Rules for Demand Guarantees, published as number 758 by the
International Chamber of Commerce, except as stated above. The Guarantor hereby submits to the
exclusive jurisdiction of the courts of England with respect to any action, suit or proceeding arising
under, or in connection with, this Bond.

XI. Guarantor represents that this Bank Guarantee has been established in such form and with such content
that it is fully and freely enforceable against GUARANTOR in the manner provided in paragraph Ⅹ
above.

(Date) _________________

(1) Name of the bank proposed by TENDERER

(2) Address of bank

(3) GUARANTOR officer's name and quality

(4) Name of TENDERER

(5) Address of office of TENDERER

(6) In figures and letters, and in US DOLLAR

(7) Bank address for notices

(8) Bid validity period plus thirty (30) calendar days, in figures and letters

END OF SECTION 2, ATTACHMENT 2D


CNOOC IRAQ LIMITED

SECTION 2

PROPOSAL CONTENTS AND FORMS

ATTACHMENT 2E - COMMERCIAL EXCEPTION FORMAT


CNOOC IRAQ LIMITED
ATTACHMENT 2E - FORMAT OF COMMERCIAL EXCEPTION

Tenderers must be in full compliance with the requirements of this ITT. Nothing shall change or supplement this ITT, except ITT revisions by means of Circular
Letter issued in writing by COMPANY. However, should Tenderer wish to take exception to anything contained in this ITT, these shall be listed below.

Commercial Exceptions should be supplement to a fully compliant tender. Exceptions that may modify or replace contract terms or other particulars are subject to
rejection and may be cause for disqualification of a tenderer.

* Cost
Article/ WORKS
Current Text (as it appears Impact (Only
Clause Proposed Exceptions Reason(s) for Exceptions Impact
in ITT) Indicate Yes
No. (+/-)
or No)

* DO NOT enter any price information except a percent decreasing or increasing in contract price

END OF SECTION 2, ATTACHMENT 2E


CNOOC IRAQ LIMITED

SECTION 2

PROPOSAL CONTENTS AND FORMS

ATTACHMENT 2F - HSE ASSESSMENT QUESTIONNAIRE


CNOOC IRAQ LIMITED

SAFETY, HEALTH AND ENVIRONMENTAL

ASSESSMENT QUESTIONNAIRE

1. MARY INFORMATION

- Company: _______________________

- Address: _______________________

- Postcode: _______________________

- Telephone: _______________________

- Fax: _______________________

- E-Mail _______________________

- Business/Product/Service: _______________________

- Number of Employees: _______________________

2. HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT SYSTEM

- Does your company have a formal Health, Safety and Environment Management Systems Manual and HSE
Policy document?

Yes / No

Attach a copy of supporting documentation

3. HSE POLICY DOCUMENT

- Does your company have a formal Health, Safety and Environment Policy under promise of company
management?

Yes / No

Attach a copy of supporting documentation.

4. ARRANGEMENTS

- Do you have a company HSE management organization?

Yes / No

Attach the HSE organization structure as supporting documentation.

5. HSE PLANS AND TARGETS

- Does your company have an objective HSE planning process?


CNOOC IRAQ LIMITED

Yes / No

Attach a copy of the current corporate HSE Plan.

6. MANAGEMENT AND SUPERVISION OF WORK ACTIVITIES

- What arrangements does your company have for management and supervision of the HSE aspects of work
activities? Describe the operational arrangements.

________________________________________________________________________________________

Attach related and back-up documents

7. TRAINING IN HSE OF ALL-LEVEL EMPLOYEES

- Have your employees at all levels who plan, monitor, supervise and carry out the work received all the
training in their HSE responsibilities for their current jobs?

Yes / No

- Describe the process and give details of the content and duration for each general category of employee?
_______________________________

_________________________________________________________

Attach related and back-up documents

8. EQUIPMENT

- How do you ensure that plant and equipment used by your employees is correctly registered, controlled and
maintained in a safe working condition?

_____________________________________________

_________________________________________________________

Attach related and back-up documents

9. PERSONAL PROTECTIVE EQUIPMENT (PPE)

- What procedures does your company have for the provision, maintenance and replacement of standards and
specialized PPE?

Describe these procedures _________________________________

_________________________________________________________

Attach related and back-up documents

10. INCIDENT REPORTING AND INVESTIGATION

- Does your company have an incident reporting and investigation procedure?

Yes / No

Attach a copy of the last 5 years incident recording (example like the OHSA).
CNOOC IRAQ LIMITED

Describe the procedure. ___________________________________

_______________________________________________________

Attach related and back-up documents

- What procedures does your company have for ensuring that the findings and recommendations of any
incident improvement action are implemented?

Describe the procedures. ____________________ Attach related and back-up documents

11. HSE PERFORMANCE

- Does your company maintain records of incident reports and use these as records of performance?

Yes / No

Attach a copy of the LTI’s (Loss Time Incident), LTA (loss time accident) and Total Recordable Incident Rate
and other measures of performance for up to the last five years.

- How often is this performance reviewed and by whom?

_________________________________________________________

12. SPECIALIST ADVISORS

- Does your company employ other staff with formal HSE Qualifications?

Yes / No

Identify their position in the company and attach a copy of their resume.

__________________________________________________________

_________________________________________________________

13. ENVIRONMENTAL MANAGEMENT

- What actions does your company take to minimize the environmental impact of your work activities?
Describe these actions and identify the key personnel involved.

_______________________________________

_________________________________________________________

Attach related and back-up documents

- Does your company have a formal procedure for Waste Management?

Yes / No

Describe. _______________________________________________

__________________________________________________________

Attach related and back-up documents


CNOOC IRAQ LIMITED

14. EMPLOYEE HEALTH

- How does your company ensure that all employees are medically fit for the tasks they are to undertake?
Describe the procedure and state the frequency of checks.

_________________________________________________________

_________________________________________________________

Attach related and back-up documents

- How is the health of those employees exposed to additional health risk monitored? Describe the procedure,
the aspects covered, the frequency of checks, where these are normally carried out and by whom.

_________________________________________________________

__________________________________________________________

Attach related and back-up documents

15. EMERGENCY RESPONSE

- Does your company have a formal procedure for Emergency? Response?

Please Describe. _________________________________________

- What incident scenarios are covered? List.____________________

Attach samples of Emergency response plans.

16. RISK ASSESSMENT

Is there any procedure for HAZARD identification and risk assessment? (Attach supporting document)

Is there any procedure for reducing high risk level to ALARP? (Attach supporting document)

17. ATTACHMENTS REQUIRED

- All probable HSE achievement and awards should be mentioned and supporting documents should be
attached for assessment.

18. OTHER REQUIREMENTS

- Supplier shall have a system of specifying, monitoring compliance and updating HSE standards to cover all
hazardous operations.

- Supplier shall have clear and available change procedure of personnel, equipment and procedure.

Submitted By (print name): …………………………Position: ……..…………………………

Signature: ……………………………………………Tel. No: …………………………………


CNOOC IRAQ LIMITED

Following submission of the completed questionnaire COMPANY may contact you to discuss your company’s
health, safety and environmental management arrangements in more detail. Please give the name and telephone
number of your nominated contact person if different from the submitter.

Name: …………………………………..………Position: ………………………………

Tel. No.: ……….……………………………

END OF SECTION 2, ATTACHMENT 2F


CNOOC IRAQ LIMITED

SECTION 2

PROPOSAL CONTENTS AND FORMS

ATTACHMENT 2G - RESUME FORMAT


CNOOC IRAQ LIMITED

ATTACHMENT 2G - RESUME FORMAT

RESUME
Name:
Position:
Nationality:
Date of Birth:
Gender:
Belief:
Education Background:
Period Education description


Training :
Period Training description


Certificates:
1
2

Work Experience:
Period Work description


Language:
Mother language:
Second language/level:

END OF SECTION 2, ATTACHMENT 2G


CNOOC IRAQ LIMITED

ATTACHMENT 2H - EXPERIENCES

Client’s Name Name of Project Type of Services Date of Service Client Contact Information

END OF SECTION 2, ATTACHMENT 2H


CNOOC IRAQ LIMITED

INVITATION TO TENDER

FOR

WORKOVER AND STIMULATION OPERATIONS SERVICES

TENDER NO.: CMIT-PRT-10.30-170167

SECTION 3

TECHNICAL EQUIREMENTS AND SPECIFICATIONS

OCTOBER, 2017

Dubai, U.A.E

Page 1 of 116
CNOOC IRAQ LIMITED

TABLE OF CONTENT

FOREWARD

1. GENERAL REQUIREMENTS

2. DATA AND INFORMATION

3. INTERFACE AND RESPONSIBILITIES MATRIX BETWEEN COMPANY AND COMPANY

4. SCOPE OF SERVICES FOR THIS BIDDER

5. PROJECT SCHEDULE
6. DETAILED DESCRIPTION OF REQUIRED SERVICES

APPENDIX I OPERATION SERVICE PACKAGE

APPENDIX II EXAMPLE WORKOVER OPERATION

APPENDIX III ACIDIZING AND FRACTURING STUDY RESULT

APPENDIX IV HEALTH, SAFETY AND ENVIRONMENTAL REQUIREMENTS

APPENDIX V WELL SITE MINIMUM SECURITY REQUIREMENTS

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CNOOC IRAQ LIMITED

DEFINITIONS

In addition to such terms as defined in the Agreement, the following terms apply to the Work as
defined in this document:

Company: CNOOC Iraq Limited

Bidder or Tenderer: means a company who is intended and/or invited by Company to bid and submits
a proposal in accordance with the requirements of this ITT.

Contractor or Contractors: selected contractor(s) (from among the Bidders) that signed agreement.

ESP supplier: means an ESP Supplier retained by Company to supply ESP equipment and related
services.

FOREWARD

Company, as Lead Contractor which undertakes the operation and development of MISSAN oilfields,
intends to seek for Contractors to provide total TWELVE (12)plus TWO (2) truck-mounted rigs
(12truck-mounted rigs with power rated 750HP≤Rig Power<1000HP and2 rigs with power rated
≥1000HP)and associated equipment and tools to implement well interventions, New well completions
and rigless operation in MISSAN oilfield in IRAQ.

Contract duration is Twenty-Four (24) months. Company shall have the right to extend the term for
twelve (12) months by at least a thirty (30) days prior notice.

Company has the right to mobilize more workover associated equipment and tools which keep the
same requirement in ITT upon the actual workload.

The service model is CALLOUT Service Model which means when Company needs Well Intervention,
New Well Completion, Well Stimulation Treatment, Reservoir Surveillance and associated services,
Bidder will be mobilized to execute the said services and will be demobilized after the service has
been completed.

The pricing models include LUMP SUM Model and RATE PRICE Model. The LUMP SUM Model will
cover BASIC SERVICE PACKAGE, SPECIAL SERVICE PACKAGE and OTHER SERVICE
PACKAGE, however the RATE PRICE Model will cover the services items which are predicable but
exclusive of Basic Service Package, Special Service Package and Other Service Package. The Basic
Service Package will cover most certain and predicable works during well interventions and new well
completions. However the associated Special Services Package and Other Service Package will
cover the particular and predictable works during the aforesaid operations. Such associated Special
Service Package and Other Service Package include such kinds of operation as cement slurry
squeezing, sand-alone sand screen deployment, Gravel Pack,

1. GENERAL REQUIREMENTS
1.1 Bidder is responsible for Well Site security which is standardized adhered to Company Security
Policy. All transportation related to Bidder’s personnel and equipment and tools and materials
between Bidder’s facilities and Company’s Well Site and vice versa shall be at Bidder’s account
and responsibility.

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CNOOC IRAQ LIMITED

1.2 Each Bidder shall be capable to provide at least Five (5)truck-mounted rigs with power rated
750HP≤Rig Power<1000HPand at least One (1)rig with power rated≥1000HP, and at least
Two(2)sets of Stimulation equipment (including acidizing equipment, nitrogen equipment
coil-tubing equipment, flow-back equipment and waste fluid treatment equipment), and at least
Two(2) sets of slick-line equipment and at least Two (2) sets of wire-line equipment.
1.3 Company reserve the right to award the Contract to different individual contractors based on
the capability and mobilization proposed by Bidders.
1.4 For displaying operation capacity, bidder should state technical and logistical support for the
well site operation.
1.5 Subcontractor limitation: Bidder shall have its own capability to provide more than 70% service
items excluding acid-fracturing service, casing reparation service and hydraulic radial jetting.
1.6 Mobilization plan:
After awarded contract, Contractor shall mobilize truck-mounted rigs and associated rig crews,
tools and materials to MISSAN Oilfields as stated in below: -
Bidders illustrate maximum capacity by providing mobilization schedule within four (4) months.
According to preliminary operation plan, At least Eight (8) truck-mounted rigs with power rated

750HP≤Rig Power<1000HP and at least four (4) sets of Stimulation equipment (including

acidizing equipment, nitrogen equipment, coil-tubing equipment, flow-back equipment and


waste fluid treatment equipment), and four (4) sets of slick-line equipment and four (4) sets of
wire-line equipment within Four (4) months upon Company written Mobilization Letter.
Any mobilization delay exceeding forty five (45) days the rig would be refused.
Based on operation request and bidders capability, company has right to mobilize more
equipment, material and crews within four (4) months upon Company written Mobilization
Letter.
The demobilization shall be launched within TWO (2) months after contract is terminated.
1.7 Responding Capacity:
After receiving Company written notification of operation, the rigs equipment shall be ready at
designated well sites within 10 days, and the other related services shall be ready at
designated well site within3 days.
1.8 Bidder should provide its own HSE program with bidding document. Bidder shall work strictly in
accordance with and at all times comply with all relevant government regulations, codes and
standards.
1.9 All slings and shackles delivered to well site to be certified and inspected periodically as per
Company HSE policy requirements.
1.10 All engines to be fitted with flame arrestors.
1.11 Bidder shall ensure that all critical equipment shall be with valid certificates or documents and
maintenance records as applicable. Company has the right to check all necessary certificates
of the rig(s), equipment, tools and materials used in this bidding period. The certificates shall
include but not limited to:

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CNOOC IRAQ LIMITED

- Manufacture certificates for whole rig facility, CTU and coiled tubing, Acid pumping system,
nitrogen system, three-phase separator, TCP perforating explosives.
- Maintenance and Inspection record for BOP system, hoisting system, circulating system,
rotary system, drilling tools, power system, CTU and coiled tubing, Acid pumping system,
Nitrogen system, flow-back equipment, slick-line and wire-line equipment
- All the certificates and records shall be in English.
1.12 Company shall have rights to send 5engineers for 7 days excluding travel time to check and
confirm the availability of Bidder’s equipment, tools and materials after awarded and before
mobilization and Contractors shall be responsible all relevant full-board cost including visa
application, air tickets, catering, accommodation and other cost. Bidder shall be responsible for
Visa Application once receiving approval documents
1.13 For each service item required in this Section, Bidder shall submit its main performance in the
past three years.
1.14 Bidder shall have the valid certificates with English model of ISO 9001, ISO 14001, ISO 18001
and IADC membership.
1.15 Certificates of country of origin, API certificates and third-party inspection certificates shall be
applicable to the sale products except for Redress Kits which belong to consumable materials.
The acceptable country of origin is USA, West Europe, Canada and Japan.
1.16 Contractor will be responsible for all health, safety, environment and insurance aspects for its
equipment and tools and service personnel while working at its facilities and at Company’s well
sites.
1.17 Contractor shall provide enough backup tools to assure the continuity and efficiency on
requested operation. No cost shall be applied for the backup equipment and tools at well siteor
Bidder’s camp and Contractor shall bear all of the cost impact which is due to the unavailability
of the backup tools.
1.18 Contractor must have all of conventional fishing tools for all of the supplied down-hole
equipment such as (coiled tubing, slick line, wire line, tubing pipes, packers).
1.19 Company Representative will be ultimately responsible for the management of the work to be
performed in safe manner, but this is no way to alleviate Bidder from its responsibilities under
this Agreement.
1.20 Company reserves the right to reject any Contractor’s personnel that Company considers
unsuitable. Contractor must provide qualified replacements at no additional cost for the
operation within 30days.
1.21 Contractor shall provide an employment & training program for local employees to work for
oilfield operation.
1.22 Personnel CV’s shall be provided by completing the forms included in the technical
specification with English model. Key Personnel shall be fluent in spoken and written English.
1.23 Company reserves the right to modify contracted work requirement and/ or use another
contractor depending on the contractor’s performance, ability and availability of equipment and
tools.

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CNOOC IRAQ LIMITED

1.24 For any of the required services stipulated herein in the ITT technical documents, all bidders
are encouraged to submit the new-technology equipment and/or services not mentioned here
in an enclosed envelope for both of the technical and commercial offers.
1.25 The subject scope of work shall cover required rig/rigless operations services for the new wells
and old wells as per Company requirements.
1.26 Based on the company revised work plan and with considering the fluctuations in the oil prices,
Company has the right to adjust the work schedule (well names, well types, etc) without any
objections from Contractor.
1.27 Contractor shall provide training course regarding with new technologies which to be adopted
in MISSAN Oilfields, such as coiled-tubing drilling/milling, acid-fracturing, deformed casing
reparation, and hydraulic radial jetting, etc. for five (5) engineers from Company for seven (7)
days in international training center and Contractor shall be responsible for all relevant
full-board cost including visa application, air tickets, transportation, catering and
accommodations.
1.28 Contractor shall provide five (5) day workshop with five (5) engineers from Company regarding
how to optimize the operation and communication during the contract execution and Contractor
shall be responsible for all relevant full-board cost including visa application, air tickets,
transportation, catering, accommodations and necessary routine cost.
1.29 Contractor shall provide Walkie-talkie / Isatphone / Video Conference / Security monitoring at
well site, Real Time Data Transmission to FOD Down-hole Operation Commanding Center.
1.30 Contractor shall provide the formal bookbinding documents (3 color copies) and electronic
documents (3 copies, CD-rom) including the operation designs of the well activities have been
implemented during the contract execution period within three (3) months.
1.31 Screen display and gauge display for pressure/temperature/flowrate of bidder’s equipment
shall be English version, all equipment shall have English version certificates.

2. DATA AND INFORMATION


2.1 FIELD INTRODUCTION
MISSAN Oil Fields consists of three oilfields, BUZURGAN Oilfield, ABU GHIRAB Oilfield and
FAUQI Oilfields. They are all giant onland oil fields which are located 175 kilometers north of
Basra city and 350 kilometers southeast of Baghdad city in Iraq (Figure 2-1). All the three oil
fields have one similar structure: NW-SE trending elongated anticlines. The area of the three oil
fields is as follows: the BUZURGAN oil field is 40km by 7km, the ABU GHIRAB oil field is 30km
by 6km, and the FAUQI oil field is 23km by 6km.

MISSAN Oil Fields are reservoir of anticline structure control, medium porosity and
low-permeability tertiary carbonate rock and cretaceous limestone. The main producing
formations consist of two parts: one is called ASAMRI formation belonging to tertiary carbonate
rock, which is born in the ABU GHIRAB and FAUQI oilfields (upper), the other is called
MISHRIF formation belonging to cretaceous limestone, which is born in the BUZURGAN and
FAUQI oilfields (lower). Both of the reservoirs are driven by bedded edge-water and blocky
basal-water.

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CNOOC IRAQ LIMITED

MISSAN Oil Fields include three field, Total of 126 wells have been drilled before Dec 31, 2015,
including 101 wells in production and 25 wells shut in.

The development history of MISSAN Oil Fields can be divided into 4 periods: the Production
Period (1976-1980), the Shut-down Period (1980-1998), the Re-open Production Period
(1998-2010), the Rehabilitation Period (2010-2013), and the Enhanced Redevelopment Period
(2014-2015).

ABU GHIRAB Oilfield

ABU GHIRAB Oilfield is located in the border of Iraq and Iran. It was brought into production in
1976, but was shut down from the end of 1980 until the middle of 1998 for 17 years.

ABU GHIRAB Oilfield is a NW-SE oriented elongated anticline. Total wells drilled in ABU
GHIRAB field is 45 (40 producer wells and 5 shut in wells). Meanwhile, the current reservoir
pressure is still above the bubble-point pressure due to sufficient formation energy.

BUZURGAN Oilfield

BUZURGAN oilfield which is relatively far away from the border of Iraq and Iran was put into
production in 1976, but shut in from end of 1980 until the middle of 1998 for 17 years.

BUZURGAN Oil field is also a NW-SE oriented elongated anticline measuring 40km by 7km
(Figure 2-1). The MISHRIF formation is the evaluation and development formation, but only
MB21 and MC1/MC2 sub layers of MISHRIF are on production. Total wells drilled in
BUZURGAN field are 51 (39 producer wells and 12 shut-in wells).

FAUQI oilfield

The FAUQI Oilfield lies in the border of Iraq and Iran, including two formations of ASAMRI and
MISHRIF. It was brought into production in 1979, but was shut down from the end of 1980 until
the middle of 1998 for 17 years.

The FAUQI Oilfield is also a NW-SE oriented elongated anticline (Figure 2-2). As for the two
production formations, the ASAMRI Oil Field produces 75% of the total oil and the rest amount
of oil is from the MISHRIF formation. Currently, Total wells drilled in FAUQI field are 44 (37
producer wells and 7 shut in wells).

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CNOOC IRAQ LIMITED

2.2 PRODUCTION WELL CHARACTERISTICS

2.2.1 Reservoir characteristics

According to the core data and the reservoir log response, the reservoir lithology is carbonate rock
and the bottom of the ABU GHIRAB is sandstone and clastic rock, the reservoir lithology is carbonate
rock and the bottom of the BUZURGAN is dolomite. The reservoir bearing is mainly porous, with
certain micro-fracture, but the micro-fracture does not make contributions to the reservoir more.

2.2.2 Petro-physical Property

• ASAMRI Layer

Three small layers of Group A in ABU GHIRAB oilfield are all of low-porosity, low-permeability and
high-heterogeneity. Average porosity of Group A is 5% roughly and average permeability is below
10×10-3μm2. Compared to A1 and A3, porosity of A2 is relatively low. Petro-physical properties of
Group B apparently surpass those of Group A. Petro-physical properties of B1, B2 and B3 are almost
equal, with the average porosity of 12% roughly and average permeability of 10~30×10-3μm2.
Porosity and permeability of B4 are relatively high, with the average porosity of 15% roughly and
average permeability of 100×10-3μm2. Petro-physical properties of B4, B2, B1, B3 change from good
to poor
All Three small layers Group A in FAUQI oilfield are of low-porosity and low-permeability. Average
porosity is approximately 10% and permeability of A1 and A2 is still below 10×10-3μm2 but above
10×10-3μm2 in A3, The petro Petro-physical properties in north region are better than in south region.
4 small layers of group B are mostly of middle to low porosity, approximately 20%. The average
permeability is above 50×10-3μm2. B1 and B2 are of low, porosity, below 10%, and of permeability
under 10×10-3μm2, while B3 is of good Petro-physical properties. The south district of B4 is of
high-permeability reservoir. Petro Petro-physical properties from good to poor are B4, B3, B1, and B2
in sequence. The Petro-physical properties of B3 and B4 in south district are better than that in north
district. The petro Petro-physical properties of B1, B2 in north district is better than that in south
district.
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CNOOC IRAQ LIMITED

• MISHRIF Layer
The MISHRIF layer in BUZURGAN oilfield, due to the influence of sedimentary facies belt and
dissolution, is of strong heterogeneity. MB21 layer, as an example, is quite heterogeneous. Its
average porosity ranges from 14.5% to 19.36%, but permeability varies greatly, of which the
maximum permeability of best layer MB21-D1 can reach 3212×10 μm , but with the average
-3 2

permeability 64.5×10 μm . The maximum permeability of a poorer layer MB21-D3D is up to


-3 2

285×10 μm , but with the average permeability 4.04×10 μm , which illustrates strong heterogeneity
-3 2 -3 2

and a complex relationship exists between porosity and permeability.


Petro-physical properties of MISHRIF layer in FAUQI oilfield are poor. The petro-physical properties
of south district are apparently better than that of north district(north district porosity: above 10%
roughly, permeability: 1×10 μm ; south district porosity: 10%~17%, permeability: 1~10×10 μm ).
-3 2 -3 2

Porosity and permeability share the feature of gradual declination from top to bottom, which indicates
positive correlation between porosity and permeability.

- The following table shows the MISSAN oil fields Petro physics properties

Oilfield ABU GHIRAB BUZURGAN FAUQI FAUQI


Layer ASAMRI MISHRIF ASAMRI MISHRIF
Buried depth, m 2800~3200 3900~4100 2800~3212 3900~4232
Original:1.16 Original:1.17 Original:1.15 Original:1.15
Pressure coefficient Present:1.11(North)
Present:1.07 Present:0.85 Present:1.03
0.92(South)
Original:31.7; Original:41.6; Original:33.8; Original:44.1;
Formation pressure,
Present:42.7(North)
MPa Present:29.3 Present:30.1 Present:31.9
35.18(South)
MB21:Tectonic
South: Edge-water MB21,MC1:Edge-water
lithological
reservoir; reservoir;
Edge-water reservoir;
Reservoir type
reservoir MA,MB1,MB22:Tect
North: Tectonic lithological MA,MB1,MB22:Tectonic
onic lithological
reservoir lithological reservoir
reservoir
Formation oil
3
0.7894 0.7664 0.7891 0.7459
density, g/cm
Medium-heavy
Medium-heavy oil,
Medium-heavy oil; H 2 S oil; H 2 S
Medium-heavy oil; free H 2 S 0.6%~4.4%;
0.6%~4.4%; Salinity 0%~0.4;
Fluid properties from H 2 S; Salinity Salinity
203,000~234,000mg/L, Salinity
229,899 mg/L,CaCl 2 203,199-268,517
CaCl 2 229,899
mg/L,CaCl 2
mg/L,CaCl 2

Average Porosity, 10 -30 % 14 -18 % 10 -30 % 10 – 25 %

Permeability, md 0.1 – 2000md 0.4 – 65md 0.1 - 2000md 0.4 - 10md

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CNOOC IRAQ LIMITED

2.2.3 Reservoir fluid characteristics

The reservoir fluid characteristics are shown as follows:


ABU GHIRAB BUZURGAN FAUQI FAUQI
Item
(ASAMRI) ( MISHRIF) (ASAMRI) (MISHRIF)
0 0 0 0
Ambient Temperature -5~55 C -5~55 C -5~55 C -5~55 C
Rain Interval Nov.~March Nov.~March Nov.~March Nov.~March

Humidity(in Rain season) 60%~90% 60%~90% 60%~90% 60%~90%

°APICrude Oil: 21.9 22.5 21 25.4

GOR initial/present(scf/bl) 577 645 485 700

Crude oil volume factor 1.36 1.41 1.22 1.46

Bubble pressure (MPa) 16.89 18.5~20 17.93 18.13

Ashpaltene,% wt. 0 - 5.9 0.1-11.6 3.4-4.1 0~8.6


Wax.% wt. N/A 0~2.0 3.2 1.66~2.9
Sulphur,% wt. 3.96 1.86-5.22 3.4-4 2.92-4
Hydrogen Sulphide (ppm) - 0.0038 -- --

Water cut% 15 6 30 10
Corrosive gas partial pressure:

CO 2 (partial pressure/PSI) 5.6-28.20 91.5-219.2 3.6-32 90.5-187.3

H 2 S(partial pressure/PSI) 0 0-118.1 0 15.8-58.5

Formation Water analysis:


Na (mg/L) 77,940 70,000 67379 64,879
Ca (mg/L) 15,830 8,750 13661 14,298
CL (mg/L) 168,953 149,413 145409 139,552
pH 5.1 5.9 5.1 5.0

2.2.4 Original Formation temperature and pore pressure

The original formation temperature and pore pressure is normal temperature and pressure
system. The original formation temperature and pore pressure is as follow: -

Pressure Geothermal
Oilfield Layer System
Coefficient/pressure gradient/temperature℃/100m

ABU GHIRAB ASAMRI 1.163/4300psi 2.3/93℃

BUZURGAN MISHRIF 1.17~1.184/6300psi 2.5/118℃

ASAMRI 1.147/4900psi 2.04/94℃


FAUQI
MISHRIF 1.148/6400psi 2.5/118℃

2.3 WELL INFORMATION

2.3.1 Typical casing program for new wells

1) Typical casing program for new well of vertical (ASAMRI)


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CNOOC IRAQ LIMITED

Bit Size Casing Size Specifications of casing Depth(m) Thread

36“ 30” 192.10ppf, X-52 30 Threaded or welded

26“ 20” 94.00ppf, K-55 130 BTC

17-1/2” 13-3/8” 68.00ppf, N-80 2260 BTC

9-5/8” 47.00ppf, L-80 1470.80~2189.93 Premium connection

12-1/4” 9-5/8” 58.40ppf, C-95 -2800 Premium connection

9-5/8” 58.40ppf, C-95 -2900 BTC

Liner 6-5/8” 28.00ppf, L80-13Cr 2750-3200 Premium connection

2) Typical casing program for new well of vertical (MISHRIF)

Bit Size Casing Size Casing Specifications Depth, m Thread

36“ 30” 192.10ppf, X-52 35.05 Threaded or welded

26“ 20” 94.00ppf, K-55 130.35 BTC

17-1/2” 13-3/8” 68.00ppf, N-80 2138.8 BTC

9-5/8” 47.00ppf, L-80 1470.80~2189.93 Premium connection

12-1/4” 9-5/8” 58.40ppf, C-95 ~2733 Premium connection

9-5/8” 58.40ppf, C-95 ~2850 BTC


2625.57
Liner 6-5/8” 28.00ppf, L80-13Cr Premium connection
~4059

3) Typical casing program for new well of horizontal


Bit size Casing size Specifications of casing Depth, m Thread
36" 30" 196.1ppf, X52 30 Threaded or welded
26" 20" 94ppf, K55, BTC 130 BTC
17-1/2" 13-3/8" 68ppf, N80, BTC 2,058 BTC
9-5/8" 47ppf, L80 1470.80~2189.93 Premium connection
12-1/4" 9-5/8" 58.4ppf, C95 ~2,750 Premium connection
9-5/8" 58.4ppf, C95 ~2,850 BTC
8-1/4" 6-5/8" 28ppf, L80-13Cr 2,642~4,196 Premium connection
5-5/8” Open Hole

2.3.2 Production casing statistics in MISSAN Oilfields


NO Catalog Size (Inch) Nominal Weight Grade

Casing L80, N-80, TP80-3Cr, C95, R95,


1 9-5/8” 47.0ppf, 53.5ppf, 58.4ppf, 61.1ppf
P110, P110-3Cr

2 Casing 7.00” 29.0ppf, 32.0ppf C75, N80, C95, P110

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CNOOC IRAQ LIMITED

3 Casing 6-5/8” 28.0ppf C75, L80, L80-3Cr, C95

4 Casing 5-1/2” 17.0ppf, 20.0ppf C75

5 Casing 5.00” 17.0ppf P110

6 Casing 4-1/2” 13.5ppf, 15.1ppf C75

7 Tubing 5-1/2” 17.0ppf L80-13Cr

8 Tubing 4-1/2” 12.6ppf T95

9 Tubing 4.00” 11.6ppf L80-13Cr

10 Tubing 3-1/2” 9.2ppf L80, L80-13Cr, C90, T95

11 Tubing 2-7/8” 6.4ppf L80, C90, T95

12 Tubing 2-3/8” 4.6ppf L80, T95

2.3.3 Typical complex wellbore schematics for old wells

Please refer to APPENDIX II EXAMPLE WORKOVER OPERATION in MISSAN oilfields.

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CNOOC IRAQ LIMITED

3. INTERFACE AND RESPONSIBILITIES MAXTRIX BETWEEN COMPANY AND


CONTRACTOR
Provided Paid Provided Paid
Item Designation by by by by
Company Company Contractor Contractor
1-.Pre-job Preparation
Operation Permit License (including
operation permits and access to well
1.1 √ √
location and stacking, and Location
preparation, access roads.)
1.2 Preparation of well site √ √
Auxiliary for rig floor installed on
1.3 √ √
wellhead cellar

1.4 Building and maintenance of road √ √

2-.Mobilization and Demobilization, moving


Transportation, installation and debug
of rig and all equipment, tools,
2.1 √ √
materials, personnel belong to
Contractor.
4 Company engineers to check and
confirm the availability of Contractor’s
2.2 √ √
equipment, tools and materials after
awarded and before mobilization
Customs clearance for all equipment & Company provide
2.3 √ √
tools and materials from Contractor assistance
Mobilization, Demobilization for moving
into Missan Oilfield and transferring
2.4 √ √
between Contractor’s base and wellsite
or between wellsite and wellsite
3-.Equipment, tools and materials
All the spare parts and consumable
3.1 material for Contractor’s equipment √ √
and tools
3.2 Tubing and accessories √ √

Completion tools and accessories Upon
3.3 (such as packer/bridge plug/setting √ √ Company
tool) Purchase
Order
The detonator and explosive used for
3.4 √ √
Wireline to run packer and bridge plug
3.5 Well heads and X-Mass trees √ √
Bits (8-1/4” OD, 5-5/8” OD, 4-1/2” OD
3.6 √ √
and 3-5/8” OD)
Scrapers for 9-5/8”OD, 7.0” OD, 6-5/8”
3.7 OD,5-1/2” OD, 5.0” OD and 4-1/2” OD √ √
casing
Taper Mills and String Watermelon
3.8 Mills suitable with Company’s √ √
production casing
3.9 Stabilizers, fishing jars, flex joints √ √
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CNOOC IRAQ LIMITED

suitable with Company’s production


casing
2-3/8” OD, 2-7/8” OD and 3-1/2” OD
3.10 √ √
drill pipes as operation request
3.11 Barite, bentonite and cement √ √
3.12 Chemical for mud √ √
3.13 Cement Additives √ √
3.14 X/O subs for well control purpose √ √
All Safety Valves for well control
3.15 purpose, e.g. IBOP valve, TIW valve, √ √
Cock Valve
Double Studded Adapters to connect
3.16 Contractor’s BOP stack with √ √
Company’s tubing spool.
Cementing unit for setting packer/ plug
3.17 and pressure test string, packer, BOP √ √
and X-Mass Tree, etc.
Acid system (including Hydrochloric
Acid, Gelling agent, Corrosion
3.18 √ √
inhibitors, all necessary additives/
chemicals)
3.19 Fuel for operating equipment at wellsite √ √
3.20 Water supply for well-site operation √ √
All fishing tools for lower completion
3.21 string and upper production string in √ √
wellbore.
Other consumable materials and spare
parts, such as screens for, pistons,
3.22 √ √
oxygen, acetylene, steel wire, dopes
for drill pipe and tubing/casing
Tubing handling tools and equipment,
tubing making up and make-up torque
3.23 √ √
monitoring services for carbon steel
material
Tubing Handling tools and equipment
3.24 √ √
for 13Cr material based pipes
Tubular handling tools and equipment
for size 2-3/8” – 7-5/8” OD pipes and
3.25 screens and inner pipe, e.g. false √ √
rotary, lifting subs, slips, elevators and
safety clamps
Pipe racks for tubing joints or any other
3.26 √ √
material at location from Company
API Drifts for 2-3/8”, 2-7/8”, 3-1/2”,
3.27 √ √
4-1/2” and 5-1/2” tubing
Crossover subs for Contractor's work
3.28 √ √
string
Necessary handling tools for
3.29 √ √
Contractor's work string.
First aid equipment and medical
3.30 √ √
supplies for rig medic.
Necessary adaptor flanges, spools,
risers to allow Contractor to nipple up
3.31 √ √
BOP's to Company’s wellhead system
for each hole section.

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CNOOC IRAQ LIMITED

Welding services used on Company


3.32 equipment to extent available from √ √
Contractor’s Labor and equipment.
3.33 Company material transportation √ √

3.34 Tubing Thread compound √ √

4-.Associated services

4.1 Reservoir design and requirement √ √

Operation Programs and reports,


including Work Fluid Program,
4.2 Acidizing Program, Perforating √ √
Program, Program for Reservoir Data
Acquisition, etc.
4.3 Approval of Operation Programs √ √
4.4 Rig services √
4.5 Work fluids service √
Pumping and related cementing
4.6 √
services
4.7 Acidizing service √
4.8 Coiled tubing service √
4.9 Nitrogen service √

4.10 Wire-line logging service If excluded √ √
4.11 Perforating service in the √ If included in
service the Service
4.12 Conventional slick-line service package √ Packages
4.13 Flow-back service √
Wastes treatment and disposal
4.14 √
services
Acid(mud) pump and water bulk
4.15 tanks services for water injection √
testing
4.16 Fishing service √
4.17 Down-hole tools service √

5-.Insurance and management

Insurance for Contractor’s rig,


5.1 personnel and equipment and √ √
other kinds of insurance
Entrance visas for Contractor’s
Company provide
5.2 personnel with Company √ √
assistance
assistance.
Accommodation, food and office
for Company stuff and supervisors
(3 single room and 1 office for
5.3 operation with rig, 2 single rooms √ √
and 1 officefor operation without
rig, accommodation and food for
no more than 10 persons)
Customs, duties, fees, taxes,
5.4 licenses, import tariffs or similar √ √
charges, including brokerage fees

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in connection therewith, imposed


by the country of operation on
Contractor’s equipment and
supplies employed in the
operations hereunder, which
Contractor is obligated to pay.
Warehouse and yard space as
5.5 √ √
required by Contractor.
Contractor's base office/
Administrative center, including
furniture, equipment & supplies,
5.6 warehousing and storage yard at √ √
Contractor's base station for
Contractor's personnel,
equipment and supplies
Fuel for Contractor's
5.7 Equipmentduring transferring √ √
inside MISSAN oilfields
Electrical Power Supply via Power
Grid or Diesel Fuel for
Contractor’s Camp during
contractual period (Contractor
5.8 CAMP shall be inside MISSAN √ √
Oilfields and Contractor shall be
responsible for downstream
electrical facility material,
construction and installation).
Fuel/Diesel during wellsite
5.9 √ √
operation

5.10 Fuel/Diesel pumped into wellbore √ √

Wellsite water for all Contractor


5.11 √ √
and Company personnel.
Water for water injection
5.12 √ √
operation/ water injection
All food, catering, Mineral water
5.13 √ √
and camp supplies
Welding materials used for
5.14 √ √
Company equipment.
Valid licensed Communication
equipment including Isatphone,
walkie-talkie, conference and
5.15 internet service for Contractor's √ √
personnel and administrative use,
among wellsite(s) and Company
camp.
Real-Time Data Transmission and
Remote Video Transmission with
FOD Down-hole Operation
Demanding Center
5.16 Real-time transmitted data include √ √
SPP, Hook Load, SPM, RPM,
Torque, Active Mud Volume, etc.
Remote video means video for rig
floor operating.
Medical service, first aid
5.17 treatment, medicine and medical √ √
evacuation on site.
Company provide
5.18 Visa application √ √
assistance
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CNOOC IRAQ LIMITED

Transportation vehicles for crew


5.19 √ √
change in MISSAN Oilfield.
Vehicles for Company
Representative’s transportation
for operations in MISSAN oilfield, √ √
and the vehicle should be double
cabin.(One vehicle for per rig.)
Security monitoring at well site
5.21 √ √
during operations
Security during Contractor crew
5.22 √ √
change

5.23 Static Security on well sites √ √

6- Training Course and Workshop

Provide training course regarding with


new technologies which to be adopted
in MISSAN Oilfields, such as
coiled-tubing drilling/milling,
6.1 √ √
acid-fracturing, deformed casing
reparation, and hydraulic radial jetting,
etc for 5 engineers from Company for
7days in international training center

Provide 5-day workshop with Five (5)


company engineers regarding how to
6.2 optimize the operation and √ √
communication during the contract
execution.

 ESP INSTALLATION INTERFACERESPONSIBILITIES MATRIX

Provided Provide Provided Remark


Item Designation by by Rig by ESP
Company Crew Supplier
1. On-Site Preparation
Operation Permit license prior mobilization
1.1 √
rig into the well site.
Preparation of well site locations and RIG
1.2 √ √
mobilization.
Building and maintenance of access roads to
1.3 √ √
the locations.
2. Transportation
ESP Supplier should
Loading and transportation of all the
supervise the loading activity
2.1 equipment related to ESP from CNOOC √
in the location if the team is
warehouse to well site location.
available.

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CNOOC IRAQ LIMITED

Transportation of Company ESP equipment


from ESP Supplier warehouse direct to the If there is any necessary to be
2.2 √
well site if the equipment is not yet handed transferred.
over to Company warehouse.
Transportation of Company ESP equipment
2.3 √
between well sites.
Transportation of ESP Supplier personnel,
tools and accommodation from the Supplier Rig will provide crane for
2.4 √
base to the well site vice versa or between off-load
well sites.
Transportation of ESP Supplier personnel
2.5 prior final commissioning, startup, √
monitoring and troubleshooting.
Transportation of Company tools (ESP
packer, ESP equipment, X-over, etc.) from
2.6 Company base to be send to ESP Supplier √
warehouse for maintenance /redress, make
up connection, pressure test, and etc.
Any un-predicted transportation requirement √
related to the Supplier operation in Missan
2.7
such as personnel medical treatment, visiting
company office, security issue, and etc.
Diesel fuel for the Supplier vehicles trucks, √
2.8
spooler engine (if not electrical) and etc.

3. ESP Supplier Personnel


Insurance for the Supplier personnel and
3.1 √
equipment and other kinds of insurance.
Company and rig crew will
First aid services for Supplier personnel at
3.2 √ assist the Supplier crew in
well site
case of emergency situations
Security permit related to personnel
3.3 engineer, driver, vehicle, truck to enter √
Missan oil field / work base.
Personnel living accommodation and
catering during visiting Missan oil field for If there is available
3.4 meeting, submitting reports, monthly visit, √ accommodation at company
commissioning, start-up, monitoring and base.
troubleshooting .etc.
Personnel living accommodation and
3.5 √
catering during ESP operation at the field,
Water and electricity supply for personnel Supplier need to provide
3.6 accommodation and service equipment at the √ caravan for accommodation,
well site. electricity cable connection

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CNOOC IRAQ LIMITED

and other related accessories


needed.
Supplier shall provide the
mobile for communication
between the Supplier Office,
Company office with the
Communication device between personnel
Supplier well site team and
3.7 with company office or between desk √
Company will provide the
engineers with field engineer onsite duty.
radio for internal
communication in the well
site during the operation if
needed.
Supplier responsible for the
Security convoy during mobilization and
3.8 √ issuing security permit for the
demobilize the Supplier crew.
PSD.
Internet connection and printer device to Require for the issues related
3.9 support the crew/engineer for all the report √ paper work requirement at
paper work at the well site. the well site.

4. Preparation Installation / Pulling, RIH, Commissioning, Startup, Maintenance, Troubleshooting.

Security in well site during operations and to


4.1 √
be as per FOD security policy.

Check well program and verify the list of


4.2 material, equipment and tools are required √
shall be meet the requirements.
Visual check material, ESP equipment,
completion equipment, installation tools, all
4.3 √
consumable related to the job and notify to
the company representative onsite.
Physically check all ESP, completion
accessories and tooling are availableand in
the good condition. I.e. penetrators, cable
4.4 clamps, discharge lines, power cable, √
Swagelok’s fittings etc. and all the test result
shall be listed in equipment check-list then
submit to the company representative onsite.
Installation ESP assembly, electrical
continuity test every 20 joints, make up ESP
Packer Penetrator, Cable splicing, and make Under Company supervision
4.5 √
up well head penetrator and related ESP
installation service as per Supplier
procedure.

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CNOOC IRAQ LIMITED

Cable clamp tools preparation such as air


gun, air hose, hose clips, hose adaptor type
Rig will supply the air
4.6 of cable clamps size, quantity, including √
pressure port connection.
handling and movement from surface ground
into the rig floor.
Cable clamp installation during RIH with
4.7 √
company production tubing
Supervise ESP cable and tubing hanger F/T
penetrator following:
1. During landing tubing hanger into
Supplier team leader and
wellhead.
completion engineer should
2. During pressure test to set up ESP packer
4.8 √ attend the process to be
and bleed off the pressure shall be follow
witness and supervise the
the Supplier’s bleed off procedure.
operation.
3. Check ESP continuity test after N/D BOP
and take in care the F/T penetrator during
N/U X tree flange connection.
Hook up all the surface cable connection
4.9 between S/U Transformer, Junction box and √
wellhead.
Commissioning (verify VSD calculation and
setup VSD parameter, S/U transformer tap
4.10 √ Under company supervision.
setting, and no load test as per the Supplier
procedure).
Prepare the temporary connection hose
4.11 between X-Mass trees with the flange of √
production line prior spin test.
Start ESP pump spin test as per company
4.12 √
procedure.
ESP representative will invite OPD team to
inspect surface equipment and Supplier shall
4.13 √ √
rectify all the punch list (if applicable) before
leave the well site.
Shutdown the ESP as per company
instruction, disconnect surface cable pigtail
and related connection to secure the surface
4.14 √
cable prior rig move activity. (Supplier shall
identify every phase ABC with tag before
disconnect the cable from junction box)
Submit ESP installation report,
Supplier representative shall
commissioning report, field service ticket,
submit all the required
4.15 final completion diagram and etc., shall be √
documents to company office
done prior demobilize the crew back to the
and collect the signatures.
Supplier base.
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CNOOC IRAQ LIMITED

Company will sent


Perform final commissioning and start-up as
notification email within 2
4.16 per Supplier procedure and the duration time √
days in advance to Supplier
shall be about 48 hours for normal operation.
for the final start up.
During final commissioning Supplier
engineer shall be communicate with the
Any action should refer to
4.17 Supplier application engineer to simulate √
company site engineer
pump performance, choke size, frequency,
etc. following the design software.
All the necessary required
document will be provided
4.18 Well handover to OPD √
and all the rectify item shall
be closed.
Communication regarding permission
approval to adjust general VSD setting such
adjust the frequency set point, download well OPD will report well status to
parameters, normal shutdown manually after DOD & Supplier before
4.19 √
due maintenance, normal start-up due to further actions and perform
outage power grid, adjust the choke size, the purpose accordingly.
bleed off casing pressure after well
handover.
Communication regarding surface
4.20 equipmentspare parts, troubleshooting, and √ OPD responsibility
maintenance after well handover.

Note: OPD means the Oil Production Department. DOD means the Down-hole Operation Department which
also means the Completion and Work over Department.

 CCCP’s INTERFACE RESPONSIBILITIES MATRIX

Provided Provide Provided


Item Designation by by Rig by ESP Comment
Company Crew Supplier

1. Mobilization, Demobilization and Transportation

The transportation will be provide by


CCCP’s materials or
company and at the well site, the Rig
1.1 equipment transportation into √
crew responsible to provide crane/forklift
well site / vice versa
along with the banks man and driver.
Rig crew responsible for any loading or
Loading and offloading offloading material activities and shall be
1.2 √
CCCP’s at the well site under supervision of the Supplier ESP
engineer.

2. Pre job Preparation

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CNOOC IRAQ LIMITED

Rig crew responsible to move or store the


Material / Equipment CCCP’s material and perform
2.1 movement in the well site and √ housekeeping which under coordination
housekeeping with onsite supervisor or the Supplier
ESP engineer.
Supplier ESP engineer should responsible
to check CCCP’s condition and
Check and ensure the
determine the type, size of cable clamp
2.2 equipment (CCCP’s) in the √
based on the company production tubing,
good condition before RIH
casing structure mentioned in the well
program.
Supplier ESP engineer shall responsible
to provide two (2) set of tools as primary
Preparation /maintenance
2.3 √ and secondary include related accessories
CCCP’s tools ( air gun)
such hose, key, torque wrench etc. and
should be prepare prior the job.

3. CCCP’s Installation and RIH or POOH

Supplier ESP engineer need to follow


3.1 Personnel protection √ √ √
company QHSE regulation.
Supplier ESP engineer, rig crew shall
Pre-job technical and risk attend safety briefing prior start the job
3.2 √ √ √
analysis which is organize by company
representative.
Move the equipment / Rig crew responsible to load the
CCCP’s from well pad to the equipment from well pad into the rig
3.3 √ √
rig floor vice versa during floor and shall be under instruction /
installation or pulling ESP supervise by the Supplier ESP engineer.
Prepare the tools before Supplier ESP engineer responsible to
3.4 installation or pulling on the √ prepare, setup the tools connection and
rig floor conduct the test prior the job.
Prepare CCCP’s on the rig
floor, count the clamp Supplier ESP engineer responsible to
3.5 quantity based on tubing size, √ count the quantity of CCCP’s and
casing size prior RIH or determine the correct CCCP’s size.
POOH
CCCP’s installation during Supplier ESP engineer responsible to
3.6 RIH or remove CCCP’s √ install CCCP’s and operate the tools
during POOH during RIH/POOH.
Supplier ESP engineer will supervise the
operation and rig crew will follow the
RIH CCCP’s after installation
3.7 √ instruction from the Supplier engineer
or during POOH
regarding lift up/set tubing slips or
running speed during RIH/POOH.

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CNOOC IRAQ LIMITED

Note:
o All the operation shall be conduct as per Company on site supervisor instructions on daily basis.
o Onsite rig crew shall corporate with ESP team to perform the operation safely and smoothly.
o Safety briefing and JSA shall be conduct prior start the job.
o ESP Supplier Engineer shall stay on the rig floor during RIH/POOH in order to supervise the
operation.
o Rig crew will be fully responsible to lift up or set tubing slips which shall be under supervisor/
instruction from the Supplier ESP engineer.

4. SCOPE OF WORK FOR THIS TENDER


The main services works are as following:-

a) Workover for natural flow wells

b) Workover to convert natural-flow wells to ESP wells

c) Workover for failed ESP replacement

d) Workover to convert oil producers to water injectors

e) New well completion

f) Well Stimulation

g) Reservoir Surveillance (refer to slick-line service and wire-line service)

h) Water Injection Testing

i) Diesel, Solvent and/or Demulsifier pumping for cleaning or flushing purpose

j) Associated down-hole tool service and materials supply

k) Wellhead and X-Mass Tree Field Installation

l) Rigless operations, such as acidizing and flow-back, slickline operation, wireline operation.

m) Waste Fluid treatment

n) Cement Slurry Squeezing (Special Service)

o) Single-Zoneor Dual-Zone Stand-Alone screen deployment (Special Service)

p) Single-Zoneor Dual-Zone Gravel Packing (Special Service)

q) Acid-Fracturing

r) Water injection (Optional service)

s) Deformed or damaged casing reparation

t) Hydraulic Radial Jetting

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CNOOC IRAQ LIMITED

5. PROJECT SCHEDULE

The term of the Agreement shall commence on the contract date and continue to be effective for
twenty-four(24) months. Company shall have the right to extend the term for twelve (12) months by at
least a thirty (30) days prior notice.

6. DETAILED DESCRIPTION OF REQUIRED SERVICES


6.1 SERVICE ITEMS:
1) Rig service with associated equipment, tools, materials and rig crews

2) Work fluid service and filtration service

3) Pumping service with Cement Unit

4) Tubular Handling Services for production tubing, wash pipes and sand screens, etc.

5) Perforating Service with TCP or through-tubing perforating gun

6) Acidizing Stimulation Service

7) Coiled Tubing Services for acidizing, gas-lift, sediments cleaning out, hardware milling/
cutting / fishing, pumping with diesel/demulsifier/ viscous fluid, etc.

8) Gas-lift with Nitrogen Service

9) Nitrogen Service

10) Flow-back Service

11) Waste Disposal Service

12) Water Injection Testing Service

13) Storm Valve & RTTS Packer with associated down hole tools Service

14) Slick- line Service

15) Wire-line Service

16) Rigless operations, such as acidizing and flow-back, slickline operation, wireline operation.

17) Down-hole Tools Service and Material Supply

18) Welding Service

19) Wellhead and X-Mass Tree Field Installation Service

20) Company material transportation service between Company’s facility and well sites

21) Cement Slurry Squeezing Service (Special Service)

22) Single-Zoneor Dual-Zone Stand-Alone screen deployment(Special Service)

23) Single-Zoneor Dual-Zone Gravel Packing (Special Service)

24) Acid-Fracturing Stimulation Service

25) Water injection Service (Optional Service)

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CNOOC IRAQ LIMITED

26) Deformed or damaged casing reparation

27) Hydraulic Radial Jetting

Page 25 of 116
CNOOC IRAQ LIMITED

6.2 RIG SERVICE


6.2.1 SCOPE OF WORK

1) Completion engineer and Workover engineer service

2) Rig service

3) N/D and N/U X-mass tree

4) Tubing and drill pipe operation and make-up torque monitoring service

5) Pumping and squeezing service, setting cement plug(s), drilling out cement plug(s)

6) Assist in ESP operation

7) Assist in stimulation activities

8) Pressure test service

9) Mud pump service

10) Milling and fishing operations

11) Support deformed or damaged casing reparation

12) Support Hydraulic Radial Jetting

13) Sand control (Stand-Alone Screen deployment and/or Gravel Pack Sand Control)

14) Operation data monitoring, digital data recording and Others related rig operation

15) Personnel

16) Operation programs, operation data acquisition and reporting.

17) Etc.

6.2.2 EQUIPMENT& MATERIALS REQUIREMENTS

1) Bidder shall provide qualified truck-mounted Rigs to perform the well intervention,
completion and associated service within the scheduled period.

2) Bidder shall be capable to provide one rig with at least 1000HP power ratedto perform
complex well intervention operation which need higher house power.

3) Bidder should pay more attention to the down-hole production tubing with the size of 7-5/8”,
5-1/2”, 4-1/2”, 3-1/2”, 2-7/8” and 2-3/8”. The equipment and service tools which Bidder
supplied should match the different size requirement. Considering the tubing connections,
the torque monitoring and recording devices should be equipped for gas tight thread. The
tubing tongs and elevators and slips shall be capable to handle with carbon steel and 13Cr
material. Micro-grip gripping system shall be utilized when handling with steel material with
high content of Chrome. The Bidder shall provide tubular handling equipment and tools to
run size 2-3/8” – 7-5/8” OD pipes and screens, e.g. false rotary, safety clamps, etc.

4) Dopes for tubing connections shall also be provided by the bidders at no additional charges
to company.

Page 26 of 116
CNOOC IRAQ LIMITED

5) Considering the variety of the size of X-Mass tree and tubing head, Bidder must prepare
suitable adapter for connection between Bidder’s equipment and Company equipment (e.g.
between BOP and tubing head(or tubing spool).

6) Bidder shall provide variety of the size of wear bushing for workover operation, in particular
for the existing wells, such as 7-1/16” and 11”.

7) Regarding to the existing tubing head replacement Bidder shall provide RTTS packers and
Strom Valves for 9-5/8” (47.0/53.5/58.4ppf N-80/61.1ppf P-110), 7”(29.0/32ppf) and 6-5/8”
(28.0ppf) RTTS to create safety barrier.

8) Rig Specification shall be based on workload and scope of service; Bidders are requested
to list equipment in the following table.

9) The rigs manufactured later than JANUARY 1ST OF Y2010 are preferred (If proposed
brand-new rigs, please confirm whether already manufactured or not, if manufactured, please
provide the manufactured year for each proposed rig with manufacturing certificates
accordingly.)

10) Considering fishing operation and special operation, Bidder shall provide some 2-7/8”DP
and 2-3/8” DP and relevant handling tools and crossover subs, based on the company’s
notification within one (1) month.

Equipment list and minimum Requirement


Description of the specification
for Type I Rig
Type I Rig withPower between750HP and 1000HP
Drilling Floor Clearance Height
st
Construction year later than Jan. 1 of 2010 is preferred
Crown
Derrick
Travelling block
Substructure
Drawworks:
Rated Drilling Capacity(3-1/2” DP) :
Power(Rated Input):
Max rated hook load
Master Bushing:
Mud Pump (≥ 800HP*2)-illustrate pump rate/pressure table
3
Mud Pits (total volume ≥150m ):
Mud formulating and conditioning capacity

Stand Pipe Manifold:


Choke Manifold:
5000 PSI BOP systems(at least one double ram and annular
preventer)
H 2 S monitor:
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CNOOC IRAQ LIMITED

Kelly pipe, drilling pipe, pup joints, cross over (can meet with
fishing and washover operation):
Hydraulic tubing tong
Make-up Torque Monitoring System
Related necessary tools used in operation stipulated in
Bidder
Electricity supply system
Fork lift truck
Crane
Real time data transmission and videomonitoring system
(Provide real-time transmission WOH, SPP, WOB, RPM,
Torque, depth, Pit volume, trip tank volume,the remote video
can show video for rig floor operating)
Etc.

Equipment list and minimum Requirement Description of the specification


for Type II Rig
Type II Rig withPower≥1000HP
Drilling Floor Clearance Height
Construction year
Crown
Derrick
Travelling block
Substructure
Drawworks:
Rated Drilling Capacity
Power(Rated Input):
Max rated hook load
Master Bushing:
Mud Pumps (≥ 1000HP*2)-illustrate pump rate/pressure
table
3
Mud Pits (total volume ≥150m ):
Mud formulating and conditioning capacity
Stand Pipe Manifold:
Choke Manifold:
5000 PSI BOP systems(at least one double ram and
annular preventer)
H 2 S monitor:
Kelly pipe, drilling pipe, pup joints, cross over (can meet
with fishing and washover operation):
Hydraulic tubing tong
Make-up Torque Monitoring System
Related necessary tools used in operation stipulated in
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CNOOC IRAQ LIMITED

Bidder
Electricity supply system
Fork lift truck
Crane
Real time data transmission and videomonitoring system
(Provide real-time transmission WOH, SPP, WOB, RPM,
Torque, depth, Pit volume, trip tank volume, the remote
video can show video for rig floor operating)
Etc

Note: Bidder shall provide valid Inspection Certificates issued by third parties. The valid Inspection
Certificates shall include but not limited to copies of related valid certificates with Bidding Documents
which include but not limit to BOP system, hoisting system, circulating system, rotary system, drilling
tools, power system.

6.2.3 PERSONNEL REQUIREMENTS

1) Bidder shall provide at least one Workover engineering technician with more than 8 years
Workover experience for each rig.

2) Bidder shall provide qualified personnel for rig operation. Key personnel should have more
than eight(8) years work experience (with overseas experience are preferred).Key
personnel shall include rig manager, engineering technician, tool pusher, HSE supervisor.
Company reserves the right to reject any Bidder’s Personnel that Company considers
unsuitable. Bidder must provide qualified replacements at no additional cost for operation.

3) Considering the H 2 S issue, all the relevant personnel worked in wellsite are requested to
have H 2 S protective training.

4) The key positions for wellsite shall be required to have international well-control certificate
(IWCF or IADC).

5) All key Service personnel should be capable to communicate fluently in English.

6) Bidder shall provide Resumes of key Personnel with its Bidder documents together

7) Bidder shall provide details of Rig crew as follows (for a reference).

Number of Personnel
Classification Nationality
Total Assigned On Site

Manager / Senior Tool Pusher

Engineering technician

Tool Pusher

HSE supervisor

Driller

Assistant Driller

Derrick man
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Floor man

Senior Mechanic

Rig Mechanic

Senior Electrician

Rig Electrician

Welder

Roustabouts

Doctor

Heavy-Duty Truck Driver


Forklift Operator

Crane Operator

Double Cabin Operator

Etc.

TOTAL

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6.3 WORK FLUIDS SERVICE AND FILTRATION SERVICE


Bidder should provide work fluids service and filtration service which include material,
equipment, personnel and operation design. Bidder should fully understand the operation
characteristics in MISSAN oilfields, especially the existence of H 2 S and CO 2 .

6.3.1 SCOPE OF WORK

1) Completion fluid, used for controlling the well during the completion operations, approximate
300psi of overbalance pressure

2) Well killing fluid, used for killing any kicks, overflow or blowout

3) Perforation fluid, a kind of reservoir non-damaging fluid to be spotted against perforating


intervals (approximate 200m above and below perforating intervals)

4) Packer fluid, used for protecting the casing above the production packer from corrosions.

5) Gelling fluid (hi-vis pill), a kind of hi-vis pill for sediment or debris cleanup and other
operational requirement

6) Gel breaker and/or demulsifier

7) Special types of Chemicals to plug the perforation prior to killing the wells for avoiding the
losses during well completion or well intervention operations, bidders are encouraged to
offer such chemicals and it should be soluble after completing the well completion or well
intervention operations (the subject chemicals should has no further effect on the reservoir
–Non damaging the reservoir)

8) Filtration service

9) Work fluid recipes, operational designs and programs

6.3.2 WORK FLUID PROPERTIES REQUIREMENT


1) The density calculation and optimization of Work Fluid should be based on the current
reservoir pressure for each well subject to operations. Adjusting the weight of Work Fluid
shall be according to the well loss volume, flow and as per operations requirements

2) Comparing to the adjacent well historical data for optimizing the density of Work Fluid. Based
on current formation pressure, the density of Work Fluid should be with safety margin ≥
0.05SG.

3) In consideration of the fact that MISSAN Oil Fields mainly include limestone reservoirs, which
are not sensitive to external fluid and adopt acidification before being put into production,
clean brine can be used as completion fluid. Clean brine is recommended as the perforation
fluid when casing perforation is used and the density of the perforation fluid is adjustable
within the range of 1.0 SG-1.15 SG. It is determined to use sodium chloride brine as base
fluid plus corrosion inhibitor as casing perforation completion fluid.

4) Fluid’s density should be in the range of 1.0 SG – 1.15 SG.

5) Minimum grain size in base fluid ≤2 micron

6) Core permeability damage <15%. Core permeability recovery rate>85%


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7) Turbidity should be designed to be less than 30NTU.


8) Static hydraulic pressure should be approximate 300psi higher than that of the target
reservoir.
9) ASAMRI formation: work fluid pH ≤7, packer fluid pH>7 with Corrosion rate < 0.076mm/year
10) MISHRIF formation: work fluid pH ≤7, packer fluid pH>7 with Corrosion rate < 0.076mm/year
11) Gelling fluid (Hi-vis pill) with funnel viscosity > 100s

6.3.3 FORMULATION OF WORK FLUID AND TECHNICAL SPECIFICATION OF MUD


CHEMICAL
Bidder should submit the formulation for each type of work fluid as follows:-

NO. FLUID TYPE FLUID FORMULATION

1 Completion Fluid

2 Well Killing Fluid

3 Perforation Fluid

4 Packer Fluid

5 Viscous pill, FV(funnel viscosity)≥100S

6 Solid-free loss pill with no damage to reservoir

7 Acid-Soluble LCM pill

Note
Contractor shall collect the required core samples from Company for each pay zone and shall
conduct the required studies to ensure the proposed work fluid formula is compatible with the
reservoirs (Core permeability recovery rate>85%). The lab test report shall be submitted to
Company for approval within two (2) month sooner after awarded. Contractor shall adjust the
work fluid formula as per study results accordingly.

The bidder should submit in Technical Part of the Bidding Documents the technicaldescription of
all proposed mud chemicals which could be used during well completion and well intervention
operations

BIDDER BIDDER BIDDER


ITEM GENERAL DESCRIPTION
CODING SPECIFICATION PACKING

1 NaCl, Weight material


2 CaCO 3 , Weight material
3 KCL, Weight material & Clay swelling inhibitor
4 NaOH, Alkalinity Controller
5 Na 2 CO 3, Alkalinity Controller
6 PH Stabilizer
7 Oxygen scavenge
8 Clay Inhibitor
9 Defoamer
10 Demusifier
11 Casing Cleaner

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12 NaHCO 3
13 Polymer
14 Corrosion Retarder
15 Gel Breaker
16 Casing Cleaner
17 Viscosifier
18 Modified Starch
19 HT Modified Starch
20 LCM
21 Sulfide Scavenger
22 Bactericide
23 Clay Stabilizer

24 Solid-free loss pill with no damage to reservoir

6.3.4 EQUIPMENT & MATERIALS REQUIREMENTS


1) Based on the requirement of work fluid, bidder should provide proper filtration equipment
and material for the operation.
2) Technical supporting and simulation software provision during contract execution period.
3) Contractor shall provide enough quantities of the chemicals to wellsite and on time prior
starting the completion/well intervention/rigless operations to avoid any unexpected delay
due to any reasons.
4) For avoiding the losses during operations, Bidders are encouraged to offer special types of
Chemicals to plug the perforation prior killing the wells and it should be soluble after
completing the operations (the subject chemicals should not damage the reservoir). The
chemicals shall be acid soluble with laboratory test report.
5) Company keeps the right to inspect properties of the BIDDER’S work fluid material and
chemicals/additives as well as fluid program by third party.

6) All the chemical material provided by Bidder shall have Material Safety Data Sheet (MSDS)
specification.
7) All the chemical material provided by Bidder shall be inspected by TPI and submitted related
inspection report.
8) Bidder shall provide copies of related valid certificates for equipment with Bidding
Documents
9) Bidder shall design and provide thesolid-free fluid systems.
10) Bidder shall have a laboratory in Missan Oilfield to perform quick sample analysis and a
large comprehensive lab in company for continuous technology improvement

11) Bidder should respectively provide the related equipment and agent for each experiment.

a). Fast analysis lab in Missan Oilfield:


NO. Experiment Equipment Agent and consumables
1 Density test
2 Viscosity test
3 NTU test
4 Filtration test

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5 Liquid and Solid Content


6 pH value
7 Chemical Analysis of Fluid
8 Water salinity

b). Comprehensive Work fluids formula evaluation and optimization lab in company

NO. Experiment Equipment Agent and consumables

1 Core permeability test

2 High temperature Rheological property test

6.3.5 PERSONNEL REQUIREMENTS

1) Bidder shall provide qualified personnel for the work fluids service.

2) Company reserves the right to reject any Bidder’s Personnel that Company considers
unsuitable. The Bidder must provide qualified replacements at no additional cost for the
service.

3) Considering the existence of H 2 S, all the personnel worked in wellsite are requested to have
H 2 S protective training and related certificate with bidding documents.

4) Mud engineers working at well sites shall have international well-control certificate (IWCF or
IADC).

5) Service personnel shall communicate fluently in English.

6) Bidder shall provide resume of personnel with bidding documents.

7) Bidder shall provide details of crew as follows (for a reference).


WORK
ITEM POSITIONS NUMBER CERTIFICATE
EXPERIENCE
H 2 S Protective Training Certificate
≥5 years
1 Well Control Certificate issued by IADC or
experience
IWCF

6.3.6 PAPER WORK PROVIDED BY BIDDER

1) Design and operation program.

2) Daily report which include but not limited work fluid quantity, property, loss situation,
material consumption, work description.

3) Final report

4) Recommendation improvement on the next well.

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6.4 PUMPING SERVICE WITH CEMENT UNIT


6.4.1 SCOPE OF WORK
The scope of work includes but not limited to the following service, Bidder shall provide detailed
operation design for the required service.

1) Pressure test and record, data acquisition.

2) Technical supporting and simulation software provision during contract execution period.

3) Cement squeezing for unwanted water shutoff or well abandonment

4) Cement plug operation for unwanted water shutoff or well abandonment

5) Diesel, solvent and/or demulsifier pumping for cleaning or flushing purpose

6) Setting packers or bridge plugs

7) Cementing casing

8) Operation program

9) Cementing Laboratory for experimental testing in Missan Oilfield.

6.4.2 EQUIPMENT REQUIREMENTS

1) Bidder should have capacity to provide cementing equipment and tools as follows (as a
reference ):
ITEM EQUIPMENT / TOOLS DESCRIPTION SPECIFICATION
Truck-mounted twin triplex cementing pump Unit (to
1
be detailed),Cement Pumps ≥10000psi
Total Volume of Batch Mixer ≥ 30m
3
2
3 Water supply pump
4 Mixing Water Tanks
5 Cement property evaluation equipment
6 Cementing Tools (to be detailed)
7 Running tools for cementing retainer (to be detailed)
8 ……. Etc., to be filled by bidders

2) Bidder shall provide sufficient equipment in responsibility for pressure test and/or cement
squeezing and/or cement plug operation as follows

A: Truck Mounted Cementing Unit:


a. Twin Triplex cementing pump, diesel powered unit with automatic re-circulating
cement mixer and two (2) 10bbls displacement tanks. Output of triplex pumps not
less than 8bbls per minute @ 500 psi. The minimum working pressure is
10000psi.
b. Automatic density control system
c. Pressure recorders (double pen, 0-10000psi, 4 hr chart)
d. Data acquisition system (include pump rate, volume, pressure, density, etc.)
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e. Pressure relief safety valve


B: Steady-flow surge tank, pressurized, to deliver continuous flow of cement to the
recirculation mixing system.
C: One set of air compressor for each unit.
3
D:Batch mixer, diesel powered or electrically driven, with 16-25m capacity complete with
centrifugal pumps and agitators for slurry density up to 2.40g/cm3.
3
E: Mixing water tank, with 40-60m capacity complete with centrifugal pumps and agitators

3) Bidder shall have an laboratory in Missan Oilfield to perform quick sample analysis and a
large comprehensive lab in company for continuous technology improvement

4) Bidder should respectively provide the related equipment and agent for each experiment.

NO. Experiment Equipment Agent and consumables


1 Free Water
2 Slurry Density
3 Rheology
4 Fluid Loss
5 Thickening Time
6 Compressive Strength

6.4.3 MATERIALS AND TOOLS REQUIREMENTS


1) Bidder should have capacity to provide material and tools as follows(as a reference ):

Item Description Specifications Code Packing

1 Retarder
2 Salt-Resisting Fluid Loss Additives
3 Dispersant
4 Defoamer
5 Pre-Flush
6 Gas Block Additive
7 Anti-corrosion of H 2 S & CO 2 Agent
8 Weighting Agent
9 Spacer
10 Class G Cement
11 Others

2) All the chemical material provided by bidder should have MSDS specification

3) All the chemical material provided by bidder shall be inspected by TPI and submitted related
inspection report.

6.4.4 PERSONNEL REQUIREMENTS

1) Contractor shall provide qualified personnel for the operation.

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CNOOC IRAQ LIMITED

2) Company reserves the right to reject any Contractor’s Personnel that Company considers
disqualified. Contractor must provide qualified replacements at no additional cost to
Company.

3) Considering the existenceH 2 S, all the personnel worked in wellsite are requested to have
H 2 S protective training and related certificate with bidding documents.

4) Service engineers working at well sites shall have international well-control certificate (IWCF
or IADC).

5) Service personnel shall communicate fluently in English.

6) Bidder shall provide key personnel resume of personnel with bidding documents.

7) Bidder shall provide details of crew as follows (for a reference).

Item Positions Number Work experience Certificate

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6.5 PERFORATING SERVICES


In order to perform this operation service, Bidder should have capability of providing perforating
service as follows:
6.5.1 SCOPE OF WORK

1) Wireline conveyed perforating

2) Tubing or drill pipe conveyed perforating (TCP Perforating)

3) Through-tubing perforating

4) Operation program

6.5.2 EQUIPMENT, TOOLS AND MATERIAL REQUIREMENTS

1) Responding with the required service, Bidder shall respectively provide list table of equipment,
tools and material as follows.

WIRELINE CONVEYED PERFORATING:


Item Specification
Surface equipment
Down-hole tools
Etc.

TCP PERFORATING

item Specification
Surface equipment
Down-hole tools
Etc.

THROUGH TUBING PERFORATING

item Specification
Surface equipment
Down-hole tools
Etc.

2) As to wire-line perforating, Bidder should provide several kinds of perforating gun to fit for
different well profile and different operation purpose in quotation. The specification of casing
and tubing to be perforated services are illustrated as below.

1 7.0 inch casing 7.0 inch OD casing, 29.0-32.0ppf, C-95 or L-80, or T-95
2 6-5/8 inch casing 6-5/8 inch OD casing, 28.0ppf, C-95 or L-80 or T-95
3 5-1/2 inch casing 5-1/2" OD casing, 17.0ppf – 20.0ppf, C-75
4 4-1/2 inch casing 4-1/2” OD casing, 13.5ppf - 15.1ppf, C-75

3) As to TCP perforating for ASAMRI formation: underbalanced pressure: 11-13MPa, perforating


gun: RDX or HMX explosive; As to TCP perforating for MISHRIF formation: positive
perforating, perforating gun: HMX explosive. For the perforating interval with sand control
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requirement Big-Hole Explosive Charge is necessary, and for the perforating through dolomite
or limestone formation Deep-Penetration Explosive Charge is needed. TCP perforating
package shall include relevant down-hole service such as RTTS packer, Rupture Disc, etc.
The specification of casing and tubing to be perforated are illustrated as below,

7.0 inch casing 7.0 inch OD casing, 29.0 - 32.0ppf, C-95 or L-80, or T-95
6-5/8 inch casing 6-5/8 inch OD casing, 28.0ppf, C-95 or L-80 or T-95
5-1/2 inch casing 5-1/2" OD casing, 17.0ppf – 20.0ppf, C-75
4-1/2 inch casing 4-1/2” OD casing, 13.5ppf - 15.1ppf, C-75

4) As to Through-Tubing Perforating, 1-11/16” OD and 2-1/8” ODspiral type carrier shall be


provided. The specification of tubing and minimum ID in the production sting for guns to pass
through are illustrated as below,

4-1/2 inch tubing 4-1/2 inch OD tubing, 12.6ppf, gas-tight connection


3-1/2 inch tubing 3-1/2 inch OD tubing, 9.20ppf, JFE Bear connection
2-7/8 inch tubing 2-7/8 inch OD tubing, 6.4ppf, JFE Bear connection
Minimum ID in the
production tubing
string (for 2.205inch(most) or 1.760 inch (rare)
through-tubing
perforating)

5) Charge of depth correlation related to wire-line perforating, TCP perforating and


through-tubing perforating shall be inclusive in quoted prices for perforating services.

6) All the material provided by bidder should have MSDS specification.

7) Bidder shall provide copies of related valid certificates for equipment with Bidding Documents.

8) Technical supporting and simulation software provision during contract execution period.

9) Bidder shall provide Perforating System Evaluation Report (API RP 43 section 1) for explosive
charges.

10) Bidder shall provide detailed perforating explosives mobilization plan of which all relevant
material arrived in Missan oilfield since the date of contract signed.

6.5.3 PERSONNEL REQUIREMENTS

1) Contractor provide qualified personnel for the operation.

2) Company reserves the right to reject any Contractor’s Personnel that Company considers
unsuitable. Contractor must provide qualified replacements at no additional cost to
Company.

3) Considering the existence of H 2 S, all the personnel worked in wellsite are requested to have
H 2 S protective training and related certificate with bidding documents.

4) The key positions for wellsite shall be required to have international well-control certificate
(IWCF or IADC).

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5) Service personnel should communicate fluently in English.

6) Bidder shall provide resume of personnel with bidding documents.

7) Bidder shall provide details of personnel as follows (as a reference).

Item Positions Number Work experience Certificate

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6.6 ACIDIZING SERVICE AND PUMPING SERVICE WITH ACID PUMPING UNIT
Matrix Acidizing is adopted to realize blockage/damage removal in the near wellbore region
with intention to restore the productivity and is applicable when acid-fracturing is not feasible
since there is bottom water. Bidder shall fully understand the operation area feature and the pay
zone geological/reservoir characteristics, especially the content of H 2 S and CO 2 . Bidder should
work out suitable acidizing treatment system for target pay zone and shall submit the detailed
operation design and program based on formation data.
Deep-Penetration Acidizing to enlarge the matrix acidizing scale is also adopted to solve the
problem associated with lower production rate or shut-in well in some complicated wells, so,
enough lab tests and case histories are required from the bidder to prove its effectiveness.
According to the requirement from company reservoir department about the problematic wells’
associated with Asphalt or Wax precipitations, Bidder should provide chemical agent such as
Organic Solvent to soak and dissolve Asphalt or Wax precipitation. The organic solvent shall be
0
low-toxic and with flash point over 60 C. The organic solvent must be highly efficient and able to
dissolve all of the precipitated organic materials in the wellbore and in the near wellbore
regionwith sound practices.
Acidizing success condition: production enhancement should be achieved after acid treatment,
so, the Skin factor should be less than zero after stimulation. Skin Factor Measurements
charges (charges of Well Systematic Test) shall be at contractor’s account in case if no
enhancement after stimulation operation, and the contractor shall redo the stimulation job free of
charge accordingly.
Bidder shall own laboratory in Missan Oilfield to conduct the required lab tests timelyas and
when required for provision of BS&W, H 2 S, pH value, Chloride Iron content, density, viscosity,
organic and inorganic scale solubility and water salinity analysis, emulsion analysis etc. The
laboratory must be located in MISSAN OIL FIELDS to carry out the required Lab tests and to
ensure the proposed acid materials and/or solvent shall achieve the company requirements.
The contractor should study each candidate well reservoir petro-physics/production history prior
each stimulation operations to ensure the stimulation operations shall fulfill the company
expectations. Based on the reservoirs characteristics, Bidder should provide acid and organic
solvent Formulation for Each Target Reservoir and enough Lab test should be conducted
prior starting the stimulation operations to prove such chemical structure shall be suitable to the
pay zone reservoir characteristics and can meet the company requirements. During acid
treatment operations the acid injection rate should be as high as possible, without damage to the
formation (don’t exceed the formation fracturing pressure).
The following table is only for bidder reference and the bidder should study each formation
characteristic well then propose the best acid treatment effective technique and applications for
each candidate well.

Process type Matrix acidizing


Purpose and application To realize blockage/damage removal in near wellbore region to restore the
productivity and be applicable when acid fracturing is not feasible since there
is bottom water
Reservoir type and characteristics Reservoir Type I Reservoir Type II

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Fractured-dissolved porous reservoir or Fractured-porous


dissolved-porous reservoir reservoirand matrix-porous
reservoir (MISHRIF Fm.)

To realizeefficient distributionofacid liquor To obtainrelatively


Optimal design targets and obtain relativelylong acid-etched longacid-etched wormholes
wormholes
Recommended treatment for Injection ofgelledacidandself-divertingacid + diverting ofchemical particles
directional well
Recommended treatment for Drag-acidification ofcoiledtubing (combination ofgelledacid
horizontal well andself-diverting acid), Generalacidification(gelledacidand
self-divertingacid)+divertingof chemical particles
Acid filling strength for directional 0.5~1.5 1.0~2.5
3
wells (m /m)
Acid filling strength for horizontal 0.2~0.4 0.3~0.5
3
wells (m /m)
Recommended injection ratefor The injectionrateshouldbe ashighas possible,withoutdamage tothe formation.
directionalwells

Recommended injectionratefor The injectionrateshouldbe ashighas possible,withoutdamage tothe formation.


horizontalwells

6.6.1 SCOPE OF WORK

1) Equipment and materials provision

2) Personnel service

3) Operation program

4) Acidizing

5) Diesel, Solvent and/or Demulsifier for cleaning or flushing or soaking purpose

6) Sand sediment cleaning or flushing

7) Water Injection

8) Technical supporting during contract execution period.

6.6.2 EQUIPMENT AND TOOLS REQUIREMENTS

1) Equipment for Acidizing, deep-penetration acidizing, , diesel/solvent /demulsifier cleaning or


flushing, sand sediment cleaning or flushing, water injection test

Bidder shall provide sufficient equipment in sole responsibility for acidizing,


cleaning/flushing/soaking and/or water injection operation as follows:
A: Acidizing pump for acidizing, cleaning, flushing, soaking and water injecting::

a. Horse power : Single Pump≥500HP,Total ≥1000HP)


b. Rate working pressure ≥10000 psi;
st
c. Manufactured year later than January 1 of Y2010 is preferred.
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d. Pump rate≥2.5bpm;
B: Rest related equipment: To be detailed by bidder.
- Bidder should have own power generator equipment to use for the acidizing operation in
case of lack of power on well site.
- Bidder shall provide crossover subs, flexibly lines or associated devices to connect with
Christmas trees.
- Bidder shall provide tanks, mix equipment and all the associated devices to support the
above jobs.
- Bidder shall provide effective DAS (data acquisition system)for all but not limited above
jobs.

2) Bidder shall provide copies of related valid certificates for equipment with Bidding
Documents.

3) Bidder shall have alaboratory in Missan Oilfield to perform quick sample analysis and a large
comprehensive lab in company for continuous technology improvement

4) Bidder shall provide the related proofs like the equipment and agent list.

a).Fast analysis lab in Missan Oilfield:


NO. Experiment Equipment Agent and apparatus needed
1 BS&W
2 Density test
3 pH value
4 Chloride Iron content
5 Water salinity
6 Emulsion analysis
7 Corrosion rate test
8 Viscosity test
9 Surface Tension test
10 Core Sample Acid Solubility Test
11 Organic scale solubility test
12 Flash point test

b).Comprehensive lab in company


NO. Experiment Equipment Agent and consumables
1 High temperature rheological property test
2 Acid rock reaction kinetics parameters test
3 Diversion performance evaluation of self-diverting acid
4 Core permeability test

6.6.3 MATERIALS REQUIREMENTS


1) Bidder shall provide effective chemical agent system for dissolving organic and non-organic
materials according to formation data Bidder shall provide effective acid system for target
reservoir according to formation data

2) All the material provided by bidder should have MSDS specification.

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CNOOC IRAQ LIMITED

3) Company keeps the right to inspect properties of the Bidder’s acidizing systems by the third
party.

4) Company keeps the right to evaluate acidizing effect and take a measure to improve the
acidizing function.

5) Bidder should fill out the following table by the acid treatment/organic solvent proposals for
each type of pay zone

Chemical (m3/m) Acid


ITEM CATALOG Composition Per meter Penetrations
Formulation perforated interval depth (m)
Organic Solvent treatment fluid for MISHRIF
To be filled by To be filled by To be filled
1 Fm., near well bore and tubing string to
bidder bidder by bidder
dissolve Asphalt precipitations
Acidizing Treatment Fluid for ASAMRI fm,
2
3200m.
Acidizing Treatment Fluid for MISHRIF Fm,
3
4200m.
Acidizing Treatment Fluid for MISHRIF Fm
4
(horizontal wells).
Acidizing Treatment Fluid for injector wells
5
(MISHRIF Fm. 4200m)
Acidizing Treatment Fluid for water source
6
well.
7 Ahead Fluid before acid
8 Displacement fluid behind acid
9 Friction Reducing Fluid
Note
Contractor shall collect the required core samples from Company for each pay zone and shall conduct the
required studies to ensure the proposed acid formula is suitable and can stimulate the reservoirs. The lab test
report shall be submitted to Company for approval within two (2) month sooner after awarded. Contractor shall
adjust the acid formula as per study results accordingly.

6.6.4 PERSONNEL REQUIREMENTS

1) Contractor shall provide qualified personnel for the operation. The key technical personnel
like technical supervisor/engineer and team leader shall have 5 years work experience (with
overseas experience are preferred).

2) Company reserves the right to reject any Contractor’s Personnel that Company considers
unsuitable. Contractor must provide qualified replacements at no additional cost for the
operation.

3) Considering the existence of H 2 S, all the personnel worked in wellsite are requested to have
H 2 S protective training and related certificate with bidding documents.

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4) The key positions like team leader and pump operators for wellsite shall be required to have
international well-control certificate (IWCF or IADC).

5) Service personnel should communicate fluently in English.

6) Bidder shall provide resume of personnel with bidding documents.

7) Bidder shall provide details of personnel as follows (for a reference).

Item Positions Number Work experience Certificate

≥5 years work H 2 S Protective Training Certificate


Technical experience( with
1 Well Control Certificate issued by
engineer/supervisor overseas experience
are preferred). IADC or IWCF

≥5 years work H 2 S Protective Training Certificate


experience( with
2 Team leader Well Control Certificate issued by
overseas experience
are preferred). IADC or IWCF

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6.7 COILED TUBING AND NITROGEN SERVICE


In order to perform the service mentioned below, Bidder should provide good condition equipment
and work out a detailed operation program for Company review. Bidder should aware the situation of
the producing with the content of H 2 S and CO 2 .

6.7.1 SCOPE OF WORK


1) Gas lifting
2) Acidizing through coiled tubing
3) Diesel, Solvent and/or demulsifier cleaning through coiled tubing
4) Sand sediment flushing through coiled tubing
5) Open Sliding Side Door and/ or close Sliding Side Door by coiled tubing
6) Set Blanking Plug and/or retrieve Blanking Plug by coiled tubing
7) Fishing operation for coiled tubing
8) Milling hardware by coiled tubing
9) Tubing Cutting with coiled-tubing

6.7.2 EQUIPMENT AND TOOLS REQUIREMENTS


1) Bidder shall provide all necessary equipment and tools which include but not limit to as
following.
Item Description Company Requirement Bidder response
Two (2) reels of 1.75-inch Coiled Tubing
1 Coiled Tubing For horizontal wells with workable length
≥5300m;
One (1) reel of 1.50-inch coiled tubing with
2 Coiled Tubing
workable length≥4300m
3 Control Cabin To be detailed
4 Power Unit To be detailed
5 Injector Head To be detailed
Remotely and manually operated
6 BOP Assembly
Working pressure ≥10000psi
7 Standard BHA To be detailed
Nitrogen To be detailed
8
Generator
Capability≥900m /h
3
Nitrogen
9
Pump/Booster
Conventional CT Connector, Double Flapper Check Valve,
10 BHA for acidizing Nozzle
and flushing
Special CT BHA Connector, Motor head, Intensifier, Jar,
11 for Blanking Plug GS pulling tool
Removal
Special CT BHA Connector, Motor Head, Flow Activated
12 for shifting Sliding Shifting Tool with redressing kit
Side Door

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Special CT BHA Connectors, Motor Head Centralizer,


13 for hardware Motor, Mill with redressing kit
milling
Fishing Tools Connector, Motor Head, Intensifier, Jar,
Package for 1.50” overshot dressed with Spiral Grapple or
14
coiled tubing and Bowl Type Grapple
relevant CT BHA
Fishing Tools Connector, Motor Head, Intensifier, Jar,
Package for 1.75” overshot dressed with Spiral Grapple or
15
coiled tubing and Bowl Type Grapple
relevant CT BHA
16 Etc

2) Bidder shall provide detailed information of equipment (such as pictures, drawing,


manufacturing date, etc.).

3) Bidder shall provide crossover subs or associated devices to connect with Christmas trees.

4) All down-hole tools shall be compatible with well profile.

5) The rated working pressure of down-hole tools shall be at least 10000psi.

6) Bidder shall provide copies of related valid certificates for equipment with Bidding
Documents.
st
7) CTU & injector and Nitrogen pump manufactured later than January 1 of Y2014 is
preferred.

8) Company reserves the right to modify contracted work requirement and/ or use another
Bidder depending on the Bidder’s performance, ability and availability of equipment and
tools.

9) In case of inspection requested by Company for a tool and is found defective, Bidder should
bear inspection expenses, otherwise inspection cost shall charge to Company.

10) Before use, each tool in Bidder base will be used for Company project should be supported
by the necessary documents (inspection, testing reports etc.).

11) All equipment to have the following:

- Over pressure shut down.


- High temperature shut down.
- Low oil pressure shut down.
6.7.3 PERSONNEL REQUIREMENTS

1) Contractor shall provide qualified personnel for the operation.

2) Company reserves the right to reject any Contractor’s Personnel that Company considers
unsuitable. Contractor must provide qualified replacements at no additional cost for the
operation.

3) Considering the existence of H 2 S, all the personnel worked in well site are requested to
have H 2 S protective training and related certificate with bidding documents.
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CNOOC IRAQ LIMITED

4) The key positions for well site shall be required to have international well-control certificate
(IWCF or IADC).

5) Service personnel should communicate fluently in English.

6) Bidder shall provide resume of personnel with bidding documents.

7) Bidder shall provide details of personnel as follows (as a reference).

Item Positions Number Work experience Certificate

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6.8 FLOWBACK SERVICE


6.8.1 SCOPE OF WORK
1) Equipment and material provision
2) Personnel service
3) Operation program

NOTE: Flow back is required to unload well or well test.


6.8.2 EQUIPMENT AND MATERIAL REQUIREMENTS
1) Bidder should provide detailed design of flow-back service including but not limited to the
following:

A. Process and Instrument Drawing (P & IDs)


B. Layout diagrams
C. ESD location layout drawing
2) Equipment upstream: rated working pressure ≥5,000 psi. Maximum rated liquid
3
flowrate1200M /day. The purpose is guarantying the oily well fluid can be guide to safety
location and the harmful gas can be fully burnt
3) The function of the system should have three phase separator of the producing fluid in gas,
oil and water separately, and the gas will be flared by the flare system. And oily water
should be treated into the cleaning water which the oil content in water should meet the
discharge requirement without any pollution according to the requirement of the Iraqi HSE
regulation. The separator main function is separate gas which could be safety ignited.

4) The separated gas should be ignited by safely manner.


3
5) The minimum test tanks capacity should be not less than 60 m and enough oil trucks to be
on well site meanwhile the contractor shall be responsible to keep the well flowing during
flow-back operations without any stopping due to contractor reasons such as limited test tank
capacity or any other reasons.

6) Enough storage tanks on well site should be available with contractor equipment for
continuous flow-back operation.

7) The contractor must calibrate the flow-back Test tanks with the company degassing station
testing facilities and should assure the maximum deviations not exceeding than 20%.

8) Field Test data, including BS&W, upstream wellhead pressure, downstream pressure,
temperature, daily production rate, content of H 2 S, etc., shall be measured and recorded in
daily basis during flow-back period.

9) Experimental Test Data, including content of Chloride Iron and content of water salinity, shall
be provided timely upon Company request.

10) Experiment Test on emulsion and sediment content analysis shall be implemented by Bidder
and provide the test results timely upon Company request.

11) Digital instruments(multi-phase flow-meter)shall aligned with the contractor flow-back


equipment for measuring and recording (Pressure, temperature, oil production, water
production, gas rate,..etc) the returned fluids during flow-back operations

12) Flow meter for measuring the flow rate during flow-back operations should be combined and
aligned with the flow-back equipment layout to double check the test tank measuring results
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CNOOC IRAQ LIMITED

13) All the material provided by bidder should have MSDS specification.
14) Bidder shall provide copies of related valid certificates for equipment with bidding Documents.
6.8.3 PERSONNEL REQUIREMENTS
1) Contractor shall provide qualified personnel for the operation.
2) Company reserves the right to reject any Contractor’s Personnel that Company considers
unsuitable. Contractor must provide qualified replacements at no additional cost to
Company.
3) Considering the existence of H 2 S, all the personnel worked in wellsite are requested to have
H 2 S protective training and related certificate with bidding documents.
4) The key positions for wellsite shall be required to have international well-control certificate
(IWCF or IADC).
5) Service personnel should communicate fluently in English.
6) Bidder shall provide resume of personnel with bidding documents.
7) Bidder shall provide details of personnel as follows (as a reference).

Item Positions Number Work experience Certificate

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6.9 WASTE TREATMENT SERVICES


Bidder should carry out detailed waste treatment plan and related equipment for the service as
following:

6.9.1 SCOPE OF WORK


1) Workover waste fluid or completion waste fluid disposal
2) Reacted acid treatment
3) Oily water treatment
4) Solid Waste disposal
6.9.2 SERVICE REQUIREMENT
1) Bidder is required to provide solutions, which are complied with company policy, local rules
and regulations for environmental protection and local popular best practice.
2) The service includes all the process such as waste harmless disposal, discharge, drainage,
dumping, oil collection equipment, and should be completely response by Bidder.
3) Adopt treatment process of waste reduction step by step to optimize separation of
solid-liquid and oil-water.
4) Process equipment should remove oil, suspend solids and other chemical pollutant
entrained in produced liquid.
5) Waste treatment equipment shall adopt automation control to optimize the operation, and
equip with online detection instrument to detect PH, total SS, and heavy metal ions etc. to
achieve real-time feedback and regulation.
6) Adopt the evaporation system to improve discharge effect.
7) Adopt H 2 S removal device and H 2 S detector to ensure operation personnel safe.
8) Waste water treatment capacity: no less than 400m³/d.
9) Solid wastes centralized recovery.
10) Bidder shall keep the flow-back continuously with adequate equipment.
6.9.3 PROVISION OF REQUIRED DOCUMENT
Bidder is required to submit the following documents in compliance with Company’s request during
the performance of the Work:
1) Waste management Equipment specifications and layout
2) Wastes analysis report
3) Water quality analysis report
4) Job report
6.9.4 STANDARD FOR DISCHARGED WATER:
Item Unit Standard limit

Oil& Grease mg/l ≤10

Total SS mg/l ≤30

Phenols mg/l ≤0.5

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CNOOC IRAQ LIMITED

Sulfides mg/l ≤1

Benzene mg/l ≤0.05

Cr mg/l ≤0.5

Pb mg/l ≤0.1

pH 6-9

Chromaticity color ≤ 60

6.9.5 WASTE TREATMENT EQUIPMENT


The total quantities of Waste Treatment Equipment shall be no less that the total quantities of the
complete packages of stimulation equipment

GENERAL TECHNICAL PARAMETERS


ITEM DESCRIPTION QTY AND SPECIFICATIONS ORIGIN
OF EQUIPMENT

A–Waste Treatment Equipment


1
2
3
And so on
B –Laboratory Instruments
1
2
3
And so on
C – Chemicals for neutralization
1
2
3
And so on
1) Bidder shall provide original manufacture certificate, explosion-proof certificate, pressure vessel
certificate of treatment equipment shall be provided.
2) Bidder shall provide H2S removal device and H2S detector to protect equipment and personnel.
3) Bidder’s treatment equipment shall adopt automation control to optimize the operation, and equip
with online detection instrument to detect PH, total SS, and heavy metal ions etc. to achieve
real-time feedback and regulation.
4) Bidder shall provide laboratory service for pollutant detection, bidder shall ensure testing liquid
treated is conforming to treatment standard.
5) Wastes analysis report shall be issued after the end of each well operation performed with at least
heavy metal ion and suspendedsolids.
6) Bidder shall make sure the water content of separated oil no more than 5%.

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CNOOC IRAQ LIMITED

6.10 SLICKLINE & WIRELINESERVICE

In order to perform this service, Bidder should have capability of providing following service. Before
well site operation, the operation program should be submitted by bidder and approved by Company.
After work completed, Bidder provide corresponding data interpretation.

6.10.1 SCOPE OF WORK


1) Drift well
2) Open and close SSD
3) Tubing punching with slick-line
4) Set blanking plug or check valves
5) Retrieve blanking plug or check valve
6) Impression with Lead Block
7) Sediment sampling
8) Static pressure & temperature gradient testing
9) Flowing pressure & temperature gradient testing
10) PVT sampling
11) Well Draw-down Pressure test or Fall-off Pressure test
12) Well Build-up Pressure test (systematic Well Test)
13) Water injection nozzle replacement
14) Fishing
15) Production logging test (PLT)
16) Water injection profile test
17) Water injectivity index testing
18) Cementing bond imaging
19) Reservoir saturation logging
20) Tubing & casing corrosion inspection
21) Through-tubing casing integrity test, such as casing integrity tester or Pipe Integrity Tester
22) Tubing punching with explosive or chemical
23) Free point indicating
24) Setting bridge plug or packers or cement retainer
25) Jet cutting for size 2-3/8” and 2-7/8” and 3-1/2” and 4-1/2” OD tubular
26) String shot back off
27) Depth correlation with GR/CCL logging tools
28) Scale or paraffin or asphalt removal from the inside of production tubing
29) Set cement plug with Cement Dump Bailer
30) Providing operation program
31) Data interpretation
32) Set tubing inner packer
33) Explosive tubing cutting

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CNOOC IRAQ LIMITED

NOTE
- Well build-up pressure test Drop electronic pressure gauge down into the mid-depth of
reservoir when the oil well produce normally, in order to do the producing ability test,
park more than 4 hours at each choke size, and get the producing rate of more than at
least 3 choke sizes; then shut in the well, measure the build-up process of bottom hole
pressure from production status to the static state. The shut- in test time is about more
than 72 hours.
- PVT sample: two (2) samples will be taken for a same formation per well, bidder shall
provide PVT downhole tools and relevant sample transfer device.
- Bidder shall provide preliminary surveillance report within 1 week after finish operation,
and provide final surveillance report within 1 month.
- Slick-line operation shall include Dummy Run as industrial standards and operation
requirement.
- Bidder shall provide preliminary surveillance report within 1 week after finish operation,
and provide final surveillance report within 1 month.

6.10.2 EQUIPMENT AND TOOLS REQUIREMENTS


1) According required service projects, Bidder should respectively provide list table of
equipment, apparatus, tools and material as follows (example).
SLICKLINE EQUIPMENT AND TOOL LIST SPECIFICATION
Slick-line Equipment
Slick-line Down-hole tools
Etc.

WIRELINE EQUIPMENT AND TOOL LIST SPECIFICATION


Wireline Equipment
Wireline Down-hole tools
Etc.

2) Bidder shall provide copies of related valid certificates for equipment with Bidding
Documents.

3) Production logging service should be proposed to include CCL, Gamma Ray, Fluid Density,
Pressure, Temperature, Water Holdup, and flow meter (Full Bore / Continuous Flow meter
and Inline Flow meter) seven parameters.

4) Technical supporting and simulation software provision during contract execution period.

5) For setting bridge plug or packer service, Company provide setting tools. Bidder provides
setting explosive material matched with setting tools.

6) The minimum through-bore ID is 1.760 inch in MISSAN oilfields, the Through-tubing casing
integrity test tools shall be suitable for the said minimum through-bore ID.

7) All the material provided by Bidder should have MSDS specification.

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CNOOC IRAQ LIMITED

8) Bidder shall clearly illustrate wire-line specification, new or used, and operation well depth.

9) Bidder shall provide lubricators, wire-line BOP (Pressure rate≥10000psi) and shooting
nipple for perforated cased-hole logging purpose.

10) Bidder shall provide data processing equipment and software.


st
11) The equipment manufactured later than January 1 2013 is preferred

6.10.3 PERSONNEL REQUIREMENTS

1) Contractor shall provide qualified personnel for the operation.

2) Company reserves the right to reject any Contractor’s Personnel that Company considers
unsuitable. Contractor must provide qualified replacements at no additional cost to
Company.

3) Considering the existence of H 2 S, all the personnel worked in wellsite are requested to have
H 2 S protective training and related certificate with bidding documents.

4) The key positions for well site shall be required to have international well-control certificate
(IWCF or IADC).

5) Service personnel should communicate fluently in English.

6) Bidder shall provide resume of personnel with bidding documents.

7) Bidder shall provide details of personnel as follows (as a reference).

Item Positions Number Work experience Certificate

Page 55 of 116
CNOOC IRAQ LIMITED

6.11 DOWNHOLE TOOLS SERVICE AND MATERIAL SUPPLY


Down-hole tools mean SSD’s, Packers, Landing Nipples, Chemical Injection Valve, Gas Lift Mandrel
seal assemblies used in upper production strings and lower completion strings
6.11.1 SCOPE OF WORK
1) The down hole tools preparation (e.g.: function test, pressure test, inspection, check threads,
Assemble the setting tool with the packers, connect protection pups, repairing, redressing,
drawing tools schematic ...etc) shall be carried out in the bidder workshop built by Contractor in
Iraq MISSAN oil field. Bidder should provide related operation report and evidences.

2) Bidder shall provide Company with one qualified completion engineer per site operation within
72hrs of receiving written notice (on call out basis).

- The Completion Engineer shall be fully qualified to check all the down hole tools condition
on well-site, Record the type of down hole tool, check the threads, dimensions (length, OD,
ID), recommended torque, series number. amount of the down hole tools,
- The Completion Engineer shall be qualified to supervise running and pulling operations of
the down-hole tools and setting and/or releasing the different types of the packers
(Retrievable Hydraulic and/or Mechanical and Hydraulic Permanent or wire line set
packers).
- The Completion Engineer shall be responsible for chemical injection line installation
including pressure test and splicing with proper service tools and test pump.
3) Providing the written detailed reports with schematic

4) RTTS packer and Subsurface Control Valve (Storm Valve)with associated downhole tool service
for 6-5/8” OD, 7.0” OD and 9-5/8” OD casing cased hole. Subsurface control valve working
pressure should be ≥10000psi.

5) Other work related to down-hole tools …etc.

6.11.2 MATERIAL SUPPLY


Bidder’s
Item Product Description
Response
A – EZSV Packers
A1 EZSV packer for 7.0” OD 29.0-32.0ppf casing

A2 EZSV packer for 6-5/8” OD 28.0ppf casing

A3 EZSV packer for 5-1/2” OD 17.0-20.0ppf casing

A4 EZSV packer for 4-1/2” OD 13.5 – 15.1ppf casing


B- Through-tubing packers or Plugs
Through-tubing inflatable packer to be set inside 6-5/8” OD 28.0ppf
B1 liner with 2.205 inch minimum through-bore ID of production tubing
string
Through-tubing inflatable packer to be set inside 5-1/2" OD17.0ppf –
B2 20.0ppf casing with 1.760 inch minimum through-bore ID of
production tubing string.
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CNOOC IRAQ LIMITED

Through-tubing inflatable packer to be set inside 4-1/2" OD12.6ppf –


B3 15.1ppf casing with 1.760 inch minimum through-bore ID of
production tubing string.
Through-tubing retrievable bridge plug to provides a means of
temporarily plugging off selected sections of a well (Tbg. String varies
B4
from 2-3/8” 4.6ppf to 4-1/2” 12.6ppf)without pulling the
Production tubing.
C- Materials for Sand Control
Retrievable Packer with Mill Out Extension, suitable for 6-5/8” OD
C1
28.0# L-80 13Cr casing
Retrievable Sand Control Packer with Gravel Pack Sliding Sleeve
C2
Assembly, suitable for 6-5/8” OD 28.0# L-80 13Cr casing
Safety Apparatus Joint (Shear Out Safety Sub), suitable for 6-5/8”
C3
OD 28.0# L-80 13Cr casing, 3-1/2” OD premium connection
C4 Sump Packer, suitable for 6-5/8” OD 28.0# L-80 13Cr casing
Snap-Latch for 6-5/8” Retrievable Packer, Seal Unit OD≥3.239” to
C5
match with 6-5/8”Retrievable Packer, minimum ID ≥2.35”
Snap-Latch for 6-5/8”Sump Packer, Seal Unit OD≥3.239” to match
C6
with 6-5/8” Sump Packer, minimum ID ≥2.35”
2.813”Nipple, minimum ID: 2.813”, maximum OD:≤4.5”, 3-1/2” OD
C7
premium connection
2.813”Plug includingLock Mandrel, Housing and Equalizing
C8
Prong, match with 2.813”Nipple
Premium Screen, 3-1/2”9.2ppf base pipe, L80-13Cr, 250micrometer
C9 filter medium, 3-1/2” premium connection, 9.7±0.3m, maximum OD
≤4.30 inch, hole area of base pipe>10 inch /ft
2

Premium Screen, 3-1/2”9.2ppf base pipe, L80-13Cr, 250micrometer


C10 filter medium, 3-1/2” premium connection, 20ft/joint, maximum OD
≤4.30 inch, hole area of base pipe>10 inch /ft
2

Premium Screen, 3-1/2”9.2ppf base pipe, L80-13Cr material,


C11 250micrometer filter medium, 3-1/2” premium connection, 10ft/joint,
maximum OD ≤4.30 inch, hole area of base pipe>10 inch /ft
2

Premium Screen, 3-1/2”9.2ppf base pipe, L80-13Cr, 120micrometer


C12 filter medium, 3-1/2” premium connection, 9.7±0.3m, maximum OD
≤4.30 inch, hole area of base pipe>10 inch /ft
2

Premium Screen, 3-1/2”9.2ppf base pipe, L80-13Cr, 120micrometer


C13 filter medium, 3-1/2” premium connection, 20ft/joint, maximum OD
≤4.30 inch, hole area of base pipe>10 inch /ft
2

Premium Screen, 3-1/2”9.2ppf base pipe, L80-13Cr, 120micrometer


C14 filter medium, 3-1/2” premium connection, 10ft/joint, maximum OD
≤4.30 inch, hole area of base pipe>10 inch /ft
2

Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,


C15
9.7±0.3m

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CNOOC IRAQ LIMITED

Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,


C16
9.7±0.3m
C17 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 12ft
Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
C18
10ft
C19 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 8ft
C20 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 6ft
C21 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 3ft
C22 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 2ft
Ceramic proppant, 10/20 mesh sand retention accuracy, sand grain
C23 roundness ≥0.7, crashing efficiency <10% @5000psi, acid-solubility
<7%
Ceramic proppant, 20/40 mesh sand retention accuracy, sand grain
C24 roundness ≥0.7, crashing efficiency <10% @5000psi, acid-solubility
<7%
2.68”Seal Bore, 2.68”minimum ID, 4.3” maximum OD, 3-1/2” OD
C25
9.2ppf premium connection, L80-13Cr material, H 2 S and CO 2 service
Isolation seal matching with 2.68” Seal Bore, Seal unit OD 2.68”,
minimum ID≥1.9”, 3-1/2” OD 9.2ppf premium connection, L80-13Cr
C26
material, Temperature Rating ≥300 degree F, Pressure Rating
5000psi
2-3/8”tubing with coupling chamfered, maximum OD<2.867”,
C27
minimum ID ≥1.9”
2-3/8” Flush Joint Tubing, Maximum OD:2.375”, Minimum ID ≥1.9”
C28
2-3/8” OD 4.60ppf VAMFJL B X P, L80-13Cr, 9.7±0.3m per joint
2-3/8” Flush Joint Tubing, Maximum OD:2.375”, Minimum ID ≥1.9”
C29
2-3/8” OD 4.60ppf VAMFJL B X P, L80-13Cr, 20ft/joint
2-3/8” Flush Joint Tubing, Maximum OD:2.375”, Minimum ID ≥1.9”
C30
2-3/8” OD 4.60ppf VAMFJL B X P, L80-13Cr, 10ft/joint
C31 Lifting Nipple for 2-3/8” flush joint tubing
C32 Bullnose, 3-1/2” OD 9.2ppf premium connection, L80-13Cr material
C33 Setting Ball for retrievable packer
D – Redress Kits
D1 Redress Kit for Check Valve, including O-Ring and/or Shear Pins
D2 Redress Kit for Blanking Plug, including O-Ring and/or Shear Pins
Redress Kit for Hydraulic Setting Tool for Bridge Plug, including
D3
O-Ring and/or Shear Pins
NOTES:
A. For all the above listed material , bidder should supply running and installation service
also.
B. Metallurgy Grade and Sealing element of the Sale Products shall fully consider the
existence of CO 2 , H 2 S and high water salinity in MISSAN Oilfield.
C. Certificates of Country of Origin, API certificates and third-party inspection certificates
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CNOOC IRAQ LIMITED

shall be applicable to the saleproducts exclusive of Redress Kits which belong to


consumable material.
D. The acceptable country of origin is USA, EUROPE, Canada and other origins
recognized by Missan Oil Company.
E. Purchase Order shall be issued by Company for the sale products.
F. Delivery Method: DAP
G. Delivery Point: CILB Camp Warehouse MISSAN Oilfields, IRAQ
H. Delivery Time: within Six (6) months upon Company’s Written Notification

6.11.3 PERSONNEL REQUIREMENT


1) The Completion Engineer shall have Bachelor Degree Education in petroleum or Mechanical
Engineering with five years’ experience in the said services if he hasn't engineering collage
certificate he should have at least 8 years’ experience in the said services.

2) Bidder personnel should be fluent in English language written and spoken and must be
experienced and fully qualified to perform efficiently the required services.

3) Due to Company fields contain H 2 S and CO 2 , so, all the Bidder personnel shall be trained for
H 2 S, In particular, the personnel shall observe and follow all safety rules and regulations
applicable at the well site.

4) The key positions for well-site shall be required to have international well-control certificate
(IWCF or IADC).
5) Company will at any time be entitled to release any of Contractor’s personnel who prove to be
disqualified or physically unfit for work, or misbehave, and Contractor will adhere to such a
request and provide promptly an acceptable substitute for the work, Said interruption will become
effective from the moment Company releases said person till the moment the new person returns
to the Work Sites to resume operations. No compensations will be paid to Bidder for such period.

6) Contractor shall not replace any Contractor personnel during the performance of the Services
without first obtaining the Company's written consent. If such consent is given, Contractor shall
ensure that the replacement, which shall be approved by the Company, shall perform an overlap
service of not less than one working day to ensure uninterrupted take over. The bidder shall not
be entitled to any additional payment for any overlap period.

Item Positions Number Work experience Certificate

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CNOOC IRAQ LIMITED

6.12 FISHING SERVICE


In order to perform the service as mentioned below, Bidder should provide fishing tools and program
for the service.

6.12.1 SCOPE OF WORK


1) Fishing program
2) Onsite fishing operation
3) Technical support
4) Fishing tools and fishing engineers

6.12.2 FISHING SERVICE REQUIREMENTS


1) Bidder is required to provide solutions, detailed list of fishing tools and operation design in
bidding documents, bidder shall provide at least 2-3 wells complicated fishing program and
cases. During operation, Bidder should submit daily report and final report which include but
not limited to course description, operation parameter, tools sketch, analysis report and
suggestion.
2) Bidder should provide price book for potential used tools.
3) Bidder shall provide copies of related valid certificates for equipment and tools in bidding
documents.
4) Bidder shall provide backup tools to assure the continuous and efficient operation, no cost
for back up tools at rig site.
5) The W/L cutting operation is included in this service; Bidder should provide the W/L cutting
solution in case the tubing is struck.
6) Bidder should provide enough wash over pipe (at least 30meters) to conduct the wash over
operation; the suitable wash over shoe is also needed.
7) The fishing tools for all down-hole equipment should be available in the contractor base and
ready to use just in case if the completion/well services operations suspended or delayed
due to lack or unavailability of such fishing equipment/tools, all of the cost due to such delay
shall be applied on Contractor’s Account at 10% of the corresponding Lump Sum Price per
Well.
8) Repeated failure by the bidder to provide the services, in a timely manner consistent with
good oilfield practice, will terminate this agreement upon seven (7) days written notice by
Company. Company will provide the bidder with written notice of all failures.

6.12.3 FISHING TOOLS


The fishing tool package shall be fully covering all kinds of fishing jobs relating to Company’s
upper production string and lower completion string. The most common fishing operation
include washing over, milling, cutting and deformed casing/tubing repairing, etc.

No Bidder’s
Tool Description
. Response
1 5-1/2"/5-3/4"/8-1/8"Overshot in 6-5/8"/7" /9-5/8"casing EA

2 5-1/2"/5-3/4"/8-1/8"Overshot Extension Sub used in 6-5/8"/7" /9-5/8"casing EA

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CNOOC IRAQ LIMITED

Basket grapple for 5-1/2"/5-3/4"/8-1/8"Overshot used for fishing 5-1/2", 4-1/2",


3 EA
3-1/2", 2-7/8" and 2-3/8"tubing with Mill Control Packer
Spiral grapple for 5-1/2"/5-3/4"/8-1/8"Overshot used for fishing 5-1/2", 4-1/2",
4 EA
3-1/2", 2-7/8" and 2-3/8" tubing with Grapple Control/Type A Packer
Basket type or Spiral Type Grapple for fishing Permanent Production Packers
5 EA
inside 6-5/8" / 7.0" / 9-5/8" Casing.
Back-off Spear for fishing 5-1/2" / 4-1/2" / 3-1/2" /2-7/8" /2-3/8" tubing in
6 EA
6-5/8"/7"/9-5/8" casing
Release Spear for fishing 5-1/2" / 4-1/2" / 3-1/2" /2-7/8" /2-3/8" tubing in
7 EA
6-5/8"/7"/9-5/8" casing
Grapples for Back-off/Release use for fishing 5-1/2" / 4-1/2" / 3-1/2" /2-7/8"/2-3/8"
8 EA
tubing
9 Release Spear used for fishing Permanent Packers inside 6-5/8" & 7" casing EA

10 Spear Extension Sub for fishing Permanent Packers in 6-5/8" & 7" casing EA

11 Spear Grapples for fishing permanent packers in 6-5/8" & 7" casing EA
Right-hand Thread Right-hand screw Taper Tap / Right-hand Thread Left-hand
12 screw Taper Tap for fishing tubing and drilling pipe in 6-5/8"/7"/9-5/8" casing EA
(fishing range 2.125"-3.25" and 3.125"-4.25")
Right-hand Thread Right-hand screw Box Tap (Die Collar) for fishing tubing and
13 EA
drilling pipe in 6-5/8"/7"/9-5/8"casing (fishing range 2.5"-3.5"/3.5"-4.5 ")
Junk Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf) / 6-5/8" (28.0ppf)
14 EA
/ 7.0" (32.0ppf) / 9-5/8" (47.0-61.1ppf)
Concave Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf) / 6-5/8"
15 EA
(28.0ppf) / 7.0" (32.0ppf) / 9-5/8" (47.0-61.1ppf)
Pilot Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf) / 6-5/8" (28.0ppf)
16 EA
/ 7.0" (32.0ppf) / 9-5/8" (47.0-61.1ppf)
Taper Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf) / 6-5/8"
17 EA
(28.0ppf) / 7.0" (29.0-32.0ppf) / 9-5/8" (47.0-61.1ppf)
Watermelon Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf) / 6-5/8"
18 EA
(28.0ppf) / 7.0" (29.0-32.0ppf) / 9-5/8" (47.0-61.1ppf)
Impression Block for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf) / 6-5/8"
19 EA
(28.0ppf) / 7.0" (32.0ppf) / 9-5/8" (47.0-61.1ppf)
20 Boot Basket (Fishing Cup) used inside 6-5/8" / 7"casing / 9-5/8" casing EA

21 Reverse Circulating Junk Basket used inside 6-5/8"/7" /9-5/8"casing EA

22 Venturi Type Well Clean-Up tool for 6-5/8" /7"casing/ 9-5/8" casing EA

23 Fishing Magnet used in 4-1/2"/5-1/2"/6-5/8"/7"/9-5/8"casing EA

24 Safety joint used in 5-1/2"/6-5/8"/7"/9-5/8"casing EA

25 4-3/4"/6-1/2" Fishing Jar EA

26 4-3/4"/6-1/2" Flexible Joint for Jar EA

27 4-3/4"/6-1/2" Bumper Sub EA

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28 Casing Swage used in 4-1/2"/5-1/2"/6-5/8"/7.0" / 9-5/8"casing EA

29 3-1/8"/4" /5-1/2"/8" Internal Cable Fishing Hook EA

30 3-1/8"/4" /5-1/2"/8" External Cable Fishing Hook EA

31 Casing Scraper for 6-5/8"/7"/9-5/8" casing EA

32 Rotary Casing Scraper for 6-5/8"/7" casing EA

33 5-1/2"/5-3/4"/8-1/8" Burning Shoe EA

34 5-1/2"/5-3/4"/8-1/8" Washover Pipe, 1-3m/joint EA

35 5-1/2"/5-3/4"/8-1/8" Washover Pipe, 8-10m/joint EA

36 5-1/2" Top sub, 310×5-1/2"FJWP EA

37 5-3/4" Top sub, 310×5-3/4"FJWP EA

38 8-1/8" Top sub, 410×8-1/8"FJWP EA

39 Hydraulic internal cutter used to cut 4-1/2" / 5-1/2" EA

40 Mechanical internal cutter used to cut 4-1/2" / 5-1/2" casing EA

41 Crossovers for fishing operation EA

42 Non-Rotating Stabilizer used in 6-5/8"/7"/9-5/8"casing EA


NOTES:
A. All sizes of fishing tools for fishing Company’s upper production string and lower completion
string shall be quoted accordingly.
B. Jet-cutting tool with chemical or explosive for 4-1/2” OD tubing, 3-1/2” OD tubing, 2-7/8” OD
tubing and 2-3/8” OD tubing is mandatory.

6.12.4 PERSONNEL REQUIREMENTS


1) Contractor shall provide qualified personnel for the operation, all the fishing engineer shall
have more than 10 wells fishing experience. Company reserves the right to reject any
Contractors Personnel that Company considers unsuitable. Contractor must provide
qualified replacements at no additional cost to Company.
2) Considering the existence of H 2 S, all the personnel worked in wellsite are requested to have
H 2 S protective training and related certificate with bidding documents.
3) The key positions for wellsite shall be required to have international well-control certificate
(IWCF or IADC).
4) Service personnel should communicate fluently in English.
5) Bidder shall provide qualified fishing engineer(s).who at least 5 year fishing experience.
6) Bidder shall provide resume of personnel with bidding documents.
7) Bidder shall provide details of personnel follows (for a reference).

Item Positions Number Work experience Certificate

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6.13 COMPANY MATERIAL TRANSPORTATION


Materials supplied by Company include tubing, completion tools, X-Mass tree and tubing head, etc.,
which are related to the Scope of Work in this ITT documents
Bidder should provide suitable vehicle to transport Company material.
Bidder’s obligation:

1) Load and unload material on wellsite.


2) Transportation

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6.14 SAND CONTROL SERVICE (SPECIAL SERVICE)


In order to perform this work, BIDDER should work out suitable SAND CONTROL SYSTEM for target
pay zones, detailed operation designs and programs. Equipment and materials provided under SAND
CONTROL SERVICES include the following: Stand-alone perforated pipe or sand screen completion
for horizontal wells, One-zone or Multi-zone Stand-alone Sand Screen completion for vertical or
deviated wells, One-zone or Multi-zone Gravel-packing completion for vertical or deviated wells.
BIDDER shall also provide for the rental of pumping units and accessories for installation.

6.14.1 SCOPE OF WORK

 Equipment and Tools provision

 Personnel service

 Customer-designed services (for Screen and Blank Pipe Running List etc.)

 Setting and releasing packers services

 Pumping service

 Operation program

6.14.2 EQUIPMENT, TOOLS AND SCREENS REQUIREMENTS

6.14.2.1 EQUIPMENT AND TOOLS LIST

Bidder should have capacity to provide equipment, tools and materials for sand control operation as
follows (as a reference):

Type Item Equipment / Tools Description Specification

Hydraulic-Set Retrievable Packer


1
Stand-Alone Screen For 6-5/8” OD 28.0ppf casing
deployment for vertical Isolation Packer (middle packer)
2
or deviated wells, For 6-5/8” OD 28.0ppf casing
Suitable for 6-5/8” OD 3 Shear-Out Safety Sub
28.0ppf casing cased 4 Quick Make-up Sub
hole 5 Drillable Permanent Sump Packer
6 Anchor Seal Assembly
Sand
Sand Control Packer
Control 1
For 6-5/8” OD 28.0ppf casing
Tools
Isolation Packer
Single-Zone and 2
For 6-5/8” OD 28.0ppf casing
Dual-Zone Gravel
3 Shear Out Safety Sub
Packing Tools,
4 Quick Make-up Sub
Suitable for 6-5/8” OD
5 Drillable Permanent Sump Packer
28.0ppf casing size
6 Anchor Seal Assembly
7 Seal Bore Extension Sub
8 Gravel Pack Sliding Sleeve

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9 Indicator Coupling
1 Sand Control Setting tool
2 Sand Control Packer Retrieving tool
3 Mechanical Setting Tool
4 Wire line Setting Adapter Kit
Sand Control Service Tools
5 Polished Stingers
6 Locator Seal Assembly
7 Wash Pipe
8 crossovers
1 High Pressure Pumping Units
2 Proppant Blenders
3 Centrifugal Pumps
4 Central Control Room
Pumping Equipment 5 Sand Silo
6 Mixing Tanks
7 Sand Control Manifold
8 High Pressure line
9 High Pressure Hose
1 Locator Seal Assembly
2 Anchor Seal Assembly
Tubing-retrievable subsurface safety
3
valve
4 1/4" Control Line
5 Chemical Injection Mandrel and Valve:
6 3/8" Seamless Injection Line
7 Sliding Side Door (SSD):
8 Travel Joint
Conventional Completion Tools Hydraulic-Set Retrievable Production
9
Packer
10 Retrievable Hydraulic-Set ESP Packer
11 Gas Vent Valve
12 Landing Nipple
13 Guide Shoe
14 Cross Coupling Protector
15 Flow Coupling
16 Y-Block.
17 Plug And Nipple
Premium Screen, 3-1/2” OD, 250
1
micrometer filter medium
Screens and perforated pipes Premium Screen, 3-1/2” OD, 120
2
micrometer filter medium
3 Perforated Liner, 4.0”OD

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6.14.2.2 SAND CONTROL TOOLS REQUIREMENTS

1) Bidder should provide all sand control service tools and equipment detailed information,
such as size, length, steel grade, connection thread type, etc.

2) Certificates of Country of Origin, API certificates and Third-Party Inspection Certificates


shall be applicable to the sell equipment.

6.14.3 PERSONNEL REQUIREMENTS

1) Contractor shall provide qualified personnel for the operation.

2) Company reserves the right to reject any Contractor’s Personnel that Company considers
unsuitable. The Contractor must provide qualified replacements at no additional cost for the
operation.

3) Considering our producing with H 2 S, all the personnel worked in wellsite are requested to
have H2S protective training and related certificate with bidding documents.

4) The Service engineers working at well sites should have international well-control certificate
(IWCF or IADC).

5) Service personnel should communicate fluently in English.

6) Contractor shall provide resume of personnel with bidding documents.

7) Contractor shall provide details of personnel as follows (for a reference).

Item Positions Number Work experience Certificate

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6.15 ACID-FRACTURING SERVICE ANDMATERIAL


6.15.1 NECESSITY OF ACID-FRACTURING IN MISSAN OILFIELDS

According to the reservoir development requirements in Enhanced Development Plan, the MISHRIF
formation in the north block of FAUQI oilfield, as a low-porosity reservoir, should be acid-fractured
before they are put into production.

6.15.2 ACID-FRACTURING REQUIREMENT

Acid-fracturing scale is optimized and recommend according to the reservoir physical properties of
North Block of FAUQI oilfield, and it is recommend that when the length of the acid-etched fractures is
80m and the conductivity of the fractures is 40Dacy•cm, optimal productivity is achieved.

It is proposed to carry out acid-fracturing with gelled acid plus self-diverting acid, total consuming
1887bbls acid at the injection rate of 16~22BPM (meet the needs for acid-fracturing). The maximum
pressure of wellhead is about 10,000psi. Hence the subjected casing, tubing, wellhead and X-Mass
tree shall withstand 10,000psi.

Bidder shall submit its technical proposal for acid-fracturing operation including operational program,
material list and equipment list.

6.15.3 EQUIPMENT AND DOWN-HOLE TOOLS REQUIREMENTS

The acid-fracturing operation could be performed with or without rig supporting. Bidder shall provide
compatible equipment and down-hole tools to match with the Acid-fracturing requirement.
Equipment list with specification and case historical data in last three years shall be proposed by
bidder to illustrate its capability and availability.

Certificates of country of origin, API certificates and third-party inspection certificates shall be
applicable to the sell products when available

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6.16 SELECTIVE AND QUANTIFIED WATER INJECTION SERVICE AND MATERIAL (OPTIONAL)
6.16.1 NECESSITY OF WATER INJECTION IN MISSAN OILFIELDS
1) Formation pressure drop causes the productivity decline quickly.

2) Recovery percent of MISHRIF reservoir was low but formation pressure dropper greatly.

3) Natural energy evaluation results indicate that natural energy is insufficient in MISHRIF
reservoir and numerical simulation results show that water volume of MISHRIF reservoir
was small.

4) Water injection in MISHRIF reservoir can improve oil recovery greatly.

6.16.2 REQUIREMENT OF WATER INJECTION

1) Calculation results indicate that the water injection capacity of MISHRIF reservoir in
BUZURGAN oilfield is higher than that in FAUQI oilfield. According to the practical condition
of each reservoir, the ultimate water injection rate of MISHRIF reservoir in BUZURGAN
oilfield was 18000bbls/day and that in FAUQI oilfield was set as 10000bbls/day.

2) The Maximum Allowable Wellhead Injecting Pressure is set as 20MPa. When the actual
injecting pressure exceeds the Maximum Allowable Wellhead Injecting Pressure,
stimulation will be implemented to enhance the reservoir injectivity.

3) Injectorsof injected layer MB21 of MISHRIF reservoir can achieve selective injection with 3
segments, which is D1, D1D-D2D and D3-D3D, and any segment allows to inject with
required rate. Selective and quantified water injection into three (3) segments (D1,
D1D-D2D, D3-D3D) of MISHRIF reservoir shall be achieved with water injection

4) The water injection string shall match with MISHRIF Reservoir Monitoring Requirements as
stated below: -

- Wellhead injection pressure and water injection rate should be recorded every day.

- Injection indicating curve of injectors should be tested every half a year.

- 33.33% injection wells are selected as fixed monitoring wells, and formation pressure,
formation temperature and bottom hole flowing pressure should be tested one a year.

- 50% injection wells are selected to test PLT once a year.

- 25% production wells are selected as fixed monitoring wells, and formation pressure,
formation temperature and bottom hole flowing pressure should be monitoring once a
year.

6.16.3 EQUIPMENT REQUIREMENT

Bidders are encouraged to provide practical technical proposal based on the 6.17.2 REQUIREMENT
OF WATER INJECTION.

Bidder’s
Item Product Description
Response
1 Check Valve, as temporary plug to set anchors and packers, suitable for
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6-5/8” OD 28.0ppf liner, with premium connection, 300 degree F


temperature rating, 5000psi pressure rating, H 2 S and CO 2 service
Upper Anchor, Suitable for 6-5/8″28 PPF casing, Material:
L80-13Cr,Pressure rating: 5,000 psi, Temperature rating: 302 degree F,
2
Releasing force: 180 kN, Thread: 3-1/2〃 JFE Bear B×P, Max OD:
5.5〃,Min ID: 2.992〃,CO 2 and H 2 S service
Isolation Packer, Suitable for 6-5/8″ 28 PPF casing, Material: L80-13Cr,
Pressure between close layer: 3,600psi, Pressure rating: 5000 psi,
3 Temperature rating: 302 degree F, Thread: 3-1/2〃 JFE Bear B×P, Max
OD: 5.5〃, Min ID: 2.992〃, Setting pressure: 2500 psi, Releasing force:
150 kN, CO 2 and H 2 S service
Water Injection Mandrel, Suitable for 6-5/8″28 PPF casing, Material of
mandrel: L80-13Cr, Material of nozzle: ceramic or cobalt-base alloy,
4 Pressure rating: 5,000 psi, Temperature rating: 302 degree F, Flow rate
rating: 3,000 m³/d, Thread: 3-1/2〃 JFE Bear B×P, Max OD: 5.3〃, Min
ID: 2.087〃, CO 2 and H 2 S service(Integrated with nozzles, no regulator)
Lower Anchor, Suitable for 6-5/8″28 PPF casing, Material: L80-13Cr,
Pressure rating: 5,000 psi, Temperature rating: 302 degree F, Thread:
5
3-1/2〃 JFE Bear B×P, Max OD: 5.5〃, Min ID: 2.992〃, Setting
pressure: 1,500 psi, Releasing force: ≤10 kN, CO 2 and H 2 S service
Anti-erosion X/O, Material of body: L80-13Cr, Inner bush: ceramic or
cobalt-base alloy, Pressure rating: 5,000 psi, Temperature rating: 302
6
degree F, Thread: 4-1/2〃 JFE Bear B x 3-1/2〃JFE Bear Pin, Max OD:
5〃, Min ID: 2.992〃, CO 2 and H 2 S service
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
7
20ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
8
12ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
9
10ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
10
8ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
11
6ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
12
3ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
13
2ft/joint
Miscellaneous to be listed by Bidder based on Bidder’s Technical
14
Proposal

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6.17 DEFORMED OR DAMAGED CASING REPARATION


There are 56 aged oil producers in MISSAN oilfields before the TSC contractual period. The material

of production casing/liner is non anti-corrosive material. Along with the well production over 40 years

the production casing/liner in some wells are seriously corroded and eroded due to the existence of

H 2 S, CO 2 , high-salinity formation fluid and sand production. Thereinafter casing repair is vital and

necessary for wellbore re-entry.

The objective of this service isto repair the deformed or damaged casing for wellbore re-entry.The

existing production casings in MISSAN Oilfields are exhibited as below: -

NO Catalog Size (Inch) Nominal Weight Grade

L80, N-80, TP80-3Cr, C95, R95,


1 Casing 9-5/8” 47.0ppf, 53.5ppf, 58.4ppf, 61.1ppf
P110, P110-3Cr

2 Casing 7.00” 29.0ppf, 32.0ppf C75, N80, C95, P110

3 Casing 6-5/8” 28.0ppf C75, L80, L80-3Cr, C95

4 Casing 5-1/2” 17.0ppf, 20.0ppf C75

5 Casing 5.00” 17.0ppf P110

6 Casing 4-1/2” 13.5ppf, 15.1ppf C75

6.17.1 SCOPE OF WORK


1) Provide Technical Specification and Operational Program regarding with expandable tubular
for casing reparation
2) Supply materials regarding with the expandable tubular which are suitable and compatible
with Company’s existing production casings.
3) Provide service engineers and full-package service tools including drill collars and
high-weight drill pipes for the deployment of expandable tubular

6.17.2 EQUIPMENT AND TOOLS REQUIREMENTS


Corresponding to the said service, Bidder shall list the general description and specification of all
the materials and service tools respectively as below: -

Item General Description of


Technical Specification and Parameters
Material
1
2
3
And so on

Item General Description of


Technical Specification and Parameters
Service Tools
1
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2
3
And so on

6.17.3 PERSONNEL REQUIREMENTS

1) Bidder shall provide qualified personnel for the operation.

2) Company reserves the right to reject any Contractor’s Personnel that Company considers
unsuitable. Contractor must provide qualified replacements at no additional cost to Company.

3) Considering the existence of H 2 S, all the personnel worked in wellsite are requested to have
H 2 S protective training.

4) Service personnel should communicate fluently in English.

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6.18 HYDRAULIC RADIAL JETTING SERVICE

Missan Oilfields are giant oil fields in terms of reserve with multiple series of reservoir sections. The
reservoir mainly consists of Cretaceous and Tertiary carbonate reservoirs. The depth of the reservoir
is from 2800m to 4400m with fair to good porosity and permeability. The crude oil is mainly heavy oil
with an average gravity of 22.5 API.
The strata encountered from upper to lower in Missan Oilfields are mainly Tertiary and Cretaceous
sequences. ASMARI Formation in Tertiary and MISHRIF Formation in Cretaceous are the two main
oil-bearing intervals.
ASMARI Formation was divided into three Members A, B and C, Member A and Member B are the
main oil-bearing intervals which consist mainly of dolomite and limestone with sandstone developed
locally. Member A and B were subdivided into seven zones..
MISHRIF Formation was dominated by limestone and divided into 3 members like MA, MB and MC,
which can be subdivided into 6 zones and 6 subzones as well as 7-8 layers.

FORMATION DEPTH LITHOLOGY

Bakhtiary 0m-300m Sandstone; Mudstone; Anhydrate

Upper Fars 300m-2071m Clay, Cobble Stone, Gravel Stone, Sand &Mud layer(Anhydrite)

Lower Fars mb5 2071m-2379m Siltstone, Dolomite, Limestone and white Anhydrite

Lower Fars mb4 2379m-2622.5m Dolomite, Limestone and Salt bed

Lower Fars mb3 2622.5m-2759m Anhydrite, Shale, Limestone, Salt bed below

Lower Fars mb2 2759m-2790m Mud Shale and Anhydrite, thick Salt bed

Lower Fars mb1 2790m-2821.5m White Anhydrite

Jeribe 2821.5m-2870m Dolomite, Anhydrite

Upper Kirkuk 2870m-2970m Dolomite, Shale, light LIMESTONE

Buzurgan 2970m-3050m Dolomite

Middle lower Kirkuk 3050m-3190m Sandstone , dark brown Shale

Jaddala-aalijj 3190m-3390m Limestone and dark brown Shale

Shirash 3390m-3420m Limestone,

Hartha 3420m-3480m Porosity evolution limestone

Sadi 3480m-3600m Limestone

Top section:Marl ;middle section:Limestone;


Tanuma 3600m-3620m
lower section:long Shale

Khasib 3620m-3690m Limestone,Argillaceous rock

Mishrif 3690m-4060m Porosity evolution Limestone、tight Limestone

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The objective of the hydraulic radial jetting service is to construct fluid channels to improve

conductivity and connectivity and in turn enhance the production in low porosity and low permeability

reservoirs. The existing production casings in MISSAN Oilfields are exhibited as below: -

NO Catalog Size (Inch) Nominal Weight Grade

Casing L80, N-80, TP80-3Cr, C95, R95,


1 9-5/8” 47.0ppf, 53.5ppf, 58.4ppf, 61.1ppf
P110, P110-3Cr

2 Casing 7.00” 29.0ppf, 32.0ppf C75, N80, C95, P110

3 Casing 6-5/8” 28.0ppf C75, L80, L80-3Cr, C95

4 Casing 5-1/2” 17.0ppf, 20.0ppf C75

5 Casing 5.00” 17.0ppf P110

6 Casing 4-1/2” 13.5ppf, 15.1ppf C75

The General Operation Outline isexhibited as an example: -


Job Sequence General Operation Description

1 Scraper run to clean up the cased hole

2 Run in hole with Deflector BHA (including rotator, deflector, transposer, locker and
anchor) on tubing pipes or drill pipes, conduct depth correction, set the anchor.

3 Run in hole with casing side-tracking tool string on coiled-tubing, hydraulically


st
sidetrack or cut a 1 casing window on the casing. POOH w/ the casing
side-tracking tool string.

4 Run in hole with hydraulic jetting tool string on coiled tubing, hydraulically jet to
construct one fluid channel (lateral hole) with overall length > 10m. POOH with the
hydraulic jetting tool string.

5 Change direction of the deflector for next casing window construction.

6 Run in hole with casing side-tracking tool string on coiled-tubing, hydraulically


nd
sidetrack or cut a 2 casing window on the casing. POOH w/ the casing
side-tracking tool string.

7 Run in hole with hydraulic jetting tool string on coiled tubing, hydraulically jet to
construct one fluid channel (lateral hole) with overall length > 10m. POOH with the
hydraulic jetting tool string.

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8 Repeat Step 5, 6 and 7 until all the fluid channels at same depth are constructed.

9 Unset the anchor and adjust to next depth. Reset the anchor for hydraulic radial
jetting.

10 Repeat Step 3, 4, 5, 6, 7 and 8 until all the fluid channels at the same depth are
constructed.

11 Repeat Step 9 and 10 until all the planned fluid channels are constructed at
different depth.

12 POOH with the deflector BHA on tubing pipes or drill pipes.


Job is completed.

6.18.1 SCOPE OF WORK


1) Provide Technical Specification and Operational Program regarding with Hydraulic Radial
Jetting technology and service.
2) Provide service engineers and full-package service tools for the hydraulic radial jetting
operation

6.18.2 EQUIPMENT AND TOOLS REQUIREMENTS


Corresponding to the said service, Bidder shall list the general description and specification of all
the materials and service tools/equipment respectively as below: -

Item General Description of


Technical Specification and Parameters
Service Tools
1
2
3
And so on

6.18.3 PERSONNEL REQUIREMENTS

5) Bidder shall provide qualified personnel for the operation.

6) Company reserves the right to reject any Contractor’s Personnel that Company considers
unsuitable. Contractor must provide qualified replacements at no additional cost to Company.

7) Considering the existence of H 2 S, all the personnel worked in wellsite are requested to have
H 2 S protective training.

8) Service personnel should communicate fluently in English.

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CNOOC IRAQ LIMITED

• APPENDIX I OPERATION SERVICE PACKAGE

ATTACHMENT 1 BASIC SERVICE PACKAGE

The Basic Service Package covers most of the conventional and predicable operational tasks or jobs
relating to well intervention and new well completion

No. MINI SERVICE PACKAGE

One Round Trip Rig Transfer between BIDDER BASE and well pad or between Company’s well pad and well
1
pad.
Pressure test the annulus between the production casing and production tubing against Production packer to
2 check the pressure integrity of casing and tubing string. Slick-line operation to open SSD, if failed slick-line or
wire-line operation to punch tubing to establish communication. Circulate to kill the well, conduct flow check.

3 N/D X-Mass tree, N/U BOP stack and Bell Nipple, Conduct function tests and pressure tests on BOP stack.

Release the anchor seal assembly from packer by normal rotation and/or reciprocation of the work string. Pull
4A out of hole with the existing natural-flow production string. Continuously fill up the hole with work fluid while
tripping out of hole for well control issue.
OneRound Trip Rig Transfer between BIDDER BASE and well pad or between Company’s well pad and well
4B
pad.
Pressure test the annulus between the production casing and production tubing against Production packer to
4C check the pressure integrity of casing and tubing string. Slick-line operation to open SSD, if failed slick-line or
wire-line operation to punch tubing to establish communication. Circulate to kill the well, conduct flow check.
4D N/D X-Mass tree, N/U BOP stack and Bell Nipple, Conduct function tests and pressure tests on BOP stack.
Release the anchor seal assembly from packer by normal rotation and/or reciprocation of the work string. Pull
5 out of hole with the existing natural-flow production string. Continuously fill up the hole with work fluid while
tripping out of hole for well control issue.
6 Sand cleaning operation through drill pipe string
Polish the stage-cementing collar with properly sized Burning Shoe or Taper Mill or String Watermelon mill to
7
eliminate restrictions for future packers (with big outside diameter) running through.
Scrape the cased hole, break circulation to thoroughly circulate hole clean, POOH and lay down the Casing
8
Scraper BHA.
RIH w/ RTTS Packer and Storm Valve, set RTTS and leave the RTTS Packer and Storm Valve in hole as one
mechanical safety barrier. N/D BOP stack, grid the top of the casing stub and then replace the aged or
9
incompatible tubing spool. N/U BOP stack and conduct pressure tests. Retrieve the RTTS packer and Storm
Valve.
Conduct Casing Corrosion Inspection logging with rig for maximum 500 meters interval (Multi-Finger Imaging
10
Tool or Casing Integrity Tests or equivalent logging tool).
Conduct Water Saturation Logging (Pulsed Neutron-Neutron logging or other equivalent logging tool) with rig for
11
maximum 150 meters interval.
Conduct Cement Quality Logging for 200 meters with rig (Cement Bond Mapping Tool or other equivalent
12
logging tool).

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RIH w/ Bridge Plug or Cement Retainer or Sump Packer on drill pipe, conduct depth correlation using GR/CCL,
13A
set the Bridge Plug or Cement Retainer or Sump Packer using cement unit. POOH.
RIH w/ Bridge Plug or Cement Retainer or Sump Packer on wire-line, conduct depth correlation using GR/CCL
13B
and then set the Bridge Plug or Cement Retainer or Sump Packer. POOH.
RIH w/Open End Drill pipe and set a balanced Cement Plug (maximum 200 meters in length per Cement Plug)
13C inside 4-1/2” OD or 5-1/2” OD or 6-5/8” or 7.0” OD casing cased-hole. POOH w/Open End Drill Pipe. RIH
w/Cement Plug Drilling BHA and dress the top of the cement plug to designed depth. POOH.
M/U and RIH with TCP perforating guns, conduct depth correlation using GR/CCL, fire the perforating guns in
under balance condition to perforate 30 meters. Kill the well, POOH and lay down the fired guns.
Note that when the actual perforating interval is under or over 30 meters, Unit Price shall be applied for the
14A
difference of the guns, and Unit Price will also be applicable for the Spacer Guns. TCP perforating package shall
include relevant down-hole rental service such as Rupture Disc, R/A Sub, high-wall tubing, etc.Rate Price shall
be applicable for RTTS packer service.
M/U and RIH with TCP perforating guns, conduct depth correlation using GR/CCL, fire the perforating guns in
over balance condition to perforate 30 meters. Kill the well, POOH and lay down the fired guns.
14B Note that when the actual perforating interval is under or over 30 meters, Unit Price shall be applied for the
difference of the guns, and Unit Price will also be applicable for the Spacer Guns. TCP perforating package shall
include relevant down-hole rental service such as Rupture Disc, R/A Sub, high-wall tubing, etc.
Scrape the perforated intervals prior to running packers or bridge plugs or Sump Packers. Circulate hole clean
15
and then POOH.
RIH one (1) packer with packer setting tool on drill pipe, conduct depth correlation using GR/CCL, set the packer
16
by Cementing unit. POOH and lay down the setting tool.
RIH w/the acidizing string to designed depth, set the RTTS packer. Acidize the target perforated zone through
17A coiled-tubing, and then flow back the well to return the residual spent acid through gas-lift with coiled tubing.
POOH the acidizing string.
RIH w/the acidizing string, set the RTTS packer. Acidize the target perforated zone through the production
17B tubing, and then flow back the well to return the residual spent acid through gas-lift with coiled tubing. POOH the
acidizing string.
M/U and RIH with natural-flow production string, conduct tubing integrity test against check valve or blanking
plug every 1000 meters while running in hole. Displace the annulus with packer fluid. Land tubing hanger into the
18A tubing spool, set top production packer using cementing unit. Pressure test the annulus between the production
casing and production tubing against the top production packer. Slick-line run Gauge Cutter to tubing shoe to
ensure no restrictions.
RIH w/ESP Production String without POD system, conduct production tubing integrity test every 1000 meters
against check valve or blanking plug. Slick-line retrieve the check valve or blanking plug and then displace
packer fluid, make ESP power cable penetration through the tubing hanger and connect lower pigtail, splice with
18B the ESP power cable. Land tubing hanger into the tubing spool. Slick-line make a wiper trip and then set a
blanking plug, set ESP packer and pressure test the annulus against the packer to 500psi for 15 minutes, bleed
off slowly to avoid decompression effect on the ESP power cable. Slick-line retrieve the blanking plug from
landing nipple.
RIH w/ESP Production String with POD system, conduct production tubing integrity test every 1000 meters
against check valve or blanking plug. Slick-line retrieve the check valve or blanking plug and the displace packer
18C
fluid, make ESP power cable penetration through the tubing hanger and connect lower pigtail, splice with the
ESP power cable. Land tubing hanger into the tubing spool. Slick-line make a wiper trip and then set a blanking

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plug, set ESP packer and pressure test the annulus against the packer to 500psi for 15 minutes, bleed off slowly
to avoid decompression effect on the ESP power cable. Slick-line retrieve the blanking plug from landing nipple.
19 N/D BOP stack and N/U X-mass tree. Pressure test Tubing hanger seal and X-Trees using cement unit.
Connect the temporary flow-line with production flow-line, and connect the upper pigtail. Conduct 1-hour surface
ESP equipment commissioning test followed by 5-minutes ESP Spin Test to confirm the right rotation, and then
20
conduct 36-hour ESP start-up test prior workover rig release.
Conduct well pad tidiness and housekeeping after the workover rig is released.

21A Waste Disposal for natural flow well during rig operation

Waste Disposal for ESP artificial lifting well during rig operation
21B Note that waste disposal might be requested during ESP startup test (approximate 36 hours when if the
production pipeline is not ready).

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ATTACHMENT 2 SPECIALSERVICE PACKAGE

Special Service
No Operation Outline
Package
• RIH w/the cement slurry squeezing string with RTTS packer
• Depth correction with W/L GR/CCL
• Set the RTTS packer
• Perform Injectivity test, and squeeze or circulate cement slurry to stop the channeling
problem or abandon the unwanted perforation tunnels, release the RTTS packer, and
Squeezing cement
circulate to clean the well
1 slurry
• WOC for 24 hours, POOHw/the cement slurry squeezingstring
• RIH the cement plug drilling string, drill out the cement plug inside cased-hole. POOH.
• Scrape the wellbore prior Cement Quality Logging. Perform Cement Quality Logging
with CBMT logging tool or equivalent logging tool.
• If failed to reach the desirable objective the cement slurry squeezing or spotting
operation shall be repeated.
• RIH the stand-alone sand screen string and sting the snap-latch seal assembly into
Single-Zone
the sump packer
Stand-Alone Screen
• Drop a packer setting ball and hydraulically set the top retrievable packer. Test the
2A deployment for
sealing effectiveness of the top retrievable packer.
vertical or deviated
• Release the setting tool and shearout ball seat.
wells,
POOH and lay down the setting tool.
• RIH the sand control string and sting the snap-latch into the sump packer
• Drop a packer setting ball and hydraulically set the Sand Control Packer. Test the
sealing effectiveness of the Sand Control Packer.
• Release setting tool string, and return the ball.
Single-zone
• Pick upthe work string to designated position, open the gravel pack sliding sleeve,
Gravel-Packing for
2B apply pressure from DP for circulation to clean well, perform squeezing and circulation
vertical or deviated
test.
wells,
• Conduct gravel packing operation
• Close the gravel pack sliding sleeve and reverse circulation to return the excessive
gravel.
POOH and lay down the working tool string

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ATTACHMENT 3 OTHER SERVICE PACKAGE

Other Service
No Operation Outline
Package
• Acid-fracturing is optimized and recommended according to the reservoir physical
properties of North Block of FAUQI oilfield. The recommendations are as below:
- The length of the acid-etched fractures is 80m and the conductivity of the fractures
is 40Dacy•cm.
• Mini-fracturing shall be carried out to determine the formation parameters with 50
m3Cross-linked Fluid and 50m3 Base Fluid recommended prior to main acid-fracturing
process.
• Carry out main acid-fracturing with 400m3 gelled acid and 100m3 self-diverting acid at
Acid-fracturing for
the injection rate of 16 – 25BPM.
1 vertical/ deviated well
• Operation Outline is as below: -
(with Rig Supporting)
- RIH w/ the tubing string with RTTS packers, set the RTTS packer.
- Carry out acid fracturing with gelled acid and self-diverting acid to expand the
connection range surrounding the well through sliding sleeve or perforated holes.
- Conduct gas lifting operation to return the spent acid and induce flow for
productivity.
- Unset the RTTS packer and POOH.
Note that the subjected casing and tubing which are exposing to injection pressure shall
withstand minimum 10000psi.
• Acid-fracturing is optimized and recommended according to the reservoir physical
properties of North Block of FAUQI oilfield. The recommendations are as below:
- The length of the acid-etched fractures is 80m and the conductivity of the fractures
is 40Dacy•cm.
• Mini-fracturing shall be carried out to determine the formation parameters with 50
m3Cross-linked Fluid and 50m3 Base fluid prior to main acid-fracturing process
Acid-fracturing for
• Carry out acid-fracturing w/ 400m3 gelled acid and 100m3 self-diverting acid at the
vertical/ deviated well
2 injection rate of 16 – 25BPM.
(without Rig
• Operation Outline is as below: -
Supporting)
- Carry out acid fracturing with gelled acid and self-diverting acid to expand the
connection range surrounding the well through sliding sleeve or perforated holes.
- Conduct gas lifting operation to return the spent acid and induce flow for
productivity.
Note that the subjected casing, tubing, wellhead and X-Mass tree which are exposing to
injection pressure shall withstand minimum 10000psi.
The scope of work shall fully include the following works: -
• Expandable Tubular and associated consumable material supply
• Detection of the casing deformation or damage area with Lead Impression Block.
Deformed or damaged
3 • Pretreatment on the deformed or damaged casing area prior to the deployment of
casing reparation
expandable tubular for casing reparation, such as polishing runs and/or scraping runs
and/or casing swage run upon actual requirement.
• Repair the deformed or damaged casing area

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The scope of work shall fully include the following works: -


Hydraulic Radial • Casing window construction.
4
Jetting • Lateral fluid channel construction for reservoir conductivity and connectivity
improvement

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APPENDIXII EXAMPLE WORKOVER OPERATION

Real workover operations as examples are exhibited to Bidders for better understanding on
operation activities and time duration in MISSAN oilfields. The example worover operations
are for reference only and Bidders shall estimate the time duration and budget its price
proposal based on its capability and effectiveness at its own responsibilities.

Real Example Workover Operation 1: Well AG-14

1 AG-14 Well Schematic before the workover &ESP installation operation in the year of 2016

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1. AG-14 Well schematic after the workover & ESP installation operation in the year of 2016

AG-14 ESP WORKOVER SCHEMATIC OD (in) Depth (m) Weight (ppf) Grade Thread

Oil Field Abu Ghriab Casing 9.625 0-491.64 61.10 P110 API BTC

Well No AG-14 Casing 9.625 491.64-1643.6 53.50 P110 API BTC

Casing 9.625 1643.6-2893.24 47.00 P110 API BTC


Workover Rig (RKB) LR3001 ( 6m)
Casing 7.000 0-2673.84 32.00 C75 API BTC

Workover Contractor COSL Casing 6.625 2673.84-3168.65 28.00 C75 API BTC

Workover End Date 16-Jun-16 Tubing 3.500 0-2458.803 9.300 T95 JFE Bear

File Nature Final WO Report Tubing 2.875 2458.03-2624.442 6.400 T95 JFE Bear

ITEM Description OD (in) ID (in) Length (m)Top Depth (m)

ORKB to top of Tubing Spool N/A N/A 5.050 0.000

1 Tubing Hanger (FF-NL, 11"X3-1/8", 3-1/2" EUE Top X 3-1/2" JFEBear Bottom) 11.000 3.125 0.345 5.050
1
2 Tubing length compression for upper packer 0.3m above tubing spool setting place / / -0.300 5.395
3
3 3-1/2" Double Pin X/O (3-1/2" JFEBear PXP) 3.500 2.992 0.080 5.095
4 4 3-1/2" Tubing Joint (T-95, 9.2lb/ft,3-1/2"JFEBear BXP) (total 253jts) 3.500 2.992 2425.753 5.175

5 2.75" SSD (3-1/2"JFEBear T95 BXP) (Closed) (P/N:750W275-X01, 1211 12075-50) 3.930 2.441 1.200 2430.928

6 3-1/2" Tubing Joint (T-95, 9.2lb/ft,3-1/2"JFEBear BXP) (total 2 jt) 3.500 2.992 19.225 2432.128

7 3-1/2" OD JFE pup joint*2 (T-95, 9.2 lb/ft, 3-1/2" JFE Bear BXP) 3.500 2.992 1.800 2451.353

8 X/O(3-1/2" 9.2ppf JFE Bear Box X3-1/2" 9.2ppf TSH-B Pin) 3.900 2.992 0.370 2453.153

Hydraulic Set Retrievable ESP Packer suit 7" 29-32 lb/ft casing - Tenaris TSH-b connections
B 9 5.938 2.940 3.960 2453.523
(PN:90870H-BTACB-6_DNL) 3-1/2 (9.2PPF)TENARIS BLUE BXP

10 X/O(3-1/2" 9.2ppf TSH-B Box X 3-1/2" 9.2ppf JFE Bear Pin) 3.900 2.992 0.380 2457.483

5 11 3-1/2" OD Tubing Pup Joint (T-95, 9.2lb/ft,3-1/2"JFEBear BXP) 3.500 2.992 0.940 2457.863
A 6,7,8
12 3-1/2" Tubing Joint (T-95, 9.2lb/ft,3-1/2"JFEBear BXP) (total 10 jt) 3.500 2.992 96.221 2458.803
9
13 X-Over (2-7/8" 6.4 JFE B x 3-1/2" 6.4 Ib/ft JFE Bear P) 3.500 2.441 0.430 2555.024

14 2.313" SSD (Closed) (2-7/8" JFEBear BXP) (P/N: 750W231-X05,1212 12082-40) 3.200 2.313 1.200 2555.454
10-16
17 15 2-7/8" Tubing Joint (T95, 6.4lb/ft, 2-7/8" JFEBear BXP) (total 1jts ) 2.875 2.441 9.610 2556.654

18 16 2.313" WXN Nipple (T95, 6.4lb/ft, 2-7/8"JFEBear BXP No-Go 2.215“) (P/N: 706W231-N02,1212 Y120802 3.200 2.215 0.350 2566.264

2-7/8" Tubing Joint (T95, 6.4lb/ft, 2-7/8" JFEBear BXP) (total 6jt) 2.875 2.441 57.828 2566.614
19-23
X-over (2-7/8" 6.4 ppf JFE Bear Box x 3-1/2" 9.2ppf EUE 8RD Pin)(CMIT-PRT-10.53-130322-1-2A-001) 3.500 2.441 0.450 2624.442
17
Discharge Head (3-1/2" 9.3ppf EUE 8RD box up X flanged bottom) 4.500 N/A 0.220 2624.892

Discharge Pressure Sub, flanged connection 4.625 N/A 0.180 2625.112


24 PUMP: D5800N C-CT 63 STG 400/400 140 CS VTHD, .87 HS MON, M-TRM, HSN, ES, SS H&B, EXTD
4.000 N/A 6.310 2625.292
HEAD & SHAFT, MONEL COATING( 63 STAGE)
PUMP: D5800N C-CT 63 STG 400/400 140 CS VTHD, .87 HS MON, M-TRM, HSN, ES, SS H&B, EXTD
18 4.000 N/A 6.310 2631.602
HEAD & SHAFT, MONEL COATING( 63 STAGE)
PUMP: D5800N C-CT 63 STG 400/400 140 CS VTHD, .87 HS MON, M-TRM, HSN, ES, SS H&B, EXTD
4.000 N/A 6.310 2637.912
HEAD & SHAFT, MONEL COATING( 63 STAGE)
AGH: D20-60 C-CT 400/400 CS VTHD, .87 INC, M-TRM, HSN, ARZ-ZT, NI-RST, EXTD HEAD, MONEL
19 4.000 N/A 2.010 2644.222
COATING
20 INTAKE: BOI, 400/400 RLOY .87 INC, M-TRM, HSN ARZ, MONEL COATING 4.000 N/A 0.300 2646.232

PROTECTOR: MAXIMUS, BPBSL-S/LT, 400/456, NTB/KTB, .87 HS MON, CS, HSN, M-TRM, FACT
21 4.500 N/A 2.450 2646.532
SHIM, MAXJOINT, MONEL COATING
MOTOR: 456, 18, 4181, MAXIMUS, RA-S, CS, M-TRM, AS, AFL, NTB, GRB, MAXJOINT, MONEL
22 4.560 N/A 9.610 2648.982
COATING
23 Multisensor, BASE GAUGE: XT150 TYPE 1, VITON/AFLAS, 13CR 4.500 N/A 0.570 2658.592

C 24 Motor Guide 6 5/8" 5.620 N/A 0.670 2659.162

End of ESP completion string N/A N/A N/A 2659.832

Note: 8ea Shear Screw x 5kips per Shear Screw = 40 Kips of Release force is installed on 6-5/8"ESP packer.
D
A 7" x 6-5/8" Liner Hanger Top 7.000 5.791 / 2673.840

7” ESP Packer 32 Ib/ft 3-1/2” box Tenaris connection 3-1/2" 6.4Ib/ft Top to Element Center 2.481 2453.523
B 5.500 2.390
TSH-B B x P 2456.004
Element Center to Bttm 1.479
E 2928m~2944m, 2956m~2987m,
C Existing Perforation Intervals (Asmri B) / 3016~3025m,3031m~3039m,3044m
~3047m, 3063m~3072

D PBTD(top of 6-5/8" permanent bridge plug) 3,082

E 6-5/8" milled permanent SAB packer inclusive lower original lower completion string 6.625 3.250 / 3089.792.

F 6-5/8" casing shoe 6.625 5.791 / 3168.650

Record total 944 stainless steel bands are installed on tubing

All depth is based on Original Drilling Rig RTKB, RTKB to Ground = 6.35m (Note: LR3001 Workover Rig RTKB to Ground: 6.0m)

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2. AG-14 Workover & ESP installation Operation– Rate of Progress and Outlined Operation in the
year of 2016
1 Slickline Operation to open 2.75" SSD 2016/5/6 12:00 2016/5/7 0:00 12.00 hrs 0.50 days
1.1 Perform PJSM. Pressure test the integrity of the annulus (500psi for 15 minutes and 1000psi for 15 minutes) 2016/5/6 12:00 2016/5/6 15:00 3.00 hrs 0.13 days
1.2 Slickline operaiton to punch 4 ea hole for next killing well operation. 2016/5/6 15:00 2016/5/7 0:00 9.00 hrs 0.38 days
2 Reverse circulation to kill the well. 2016/5/7 0:00 2016/5/7 9:00 9.00 hrs 0.38 days
3 N/D X-Mass Tree. N/U BOP stack. Conduct pressure test. 2016/5/7 9:00 2016/5/8 0:00 15.00 hrs 0.63 days
Remove Landing Joint, install Type SL225 Powered Swivel and R/U power tubing tong. P/U and M/U Kelly Joint on tubing
4 2016/5/8 0:00 2016/5/8 2:00 2.00 hrs 0.08 days
hanger, retract lock-down screws evenly.
5 Retrieve the original production string 2016/5/8 2:00 2016/5/10 10:00 56.00 hrs 2.33 days
5.01 Hold PJSM on rig floor to clarify the every procedures in details and relevant potential risks. 2016/5/8 2:00 2016/5/8 2:30 0.50 hrs 0.02 days
5.02 Retrieve the original production string 2016/5/8 2:30 2016/5/10 10:00 55.50 hrs 2.31 days
6 Washover Operation 2016/5/10 10:00 2016/5/23 8:00 310.00 hrs 12.92 days
6.01 5-1/2" Washover BHA run (1st trip) 2016/5/10 10:00 2016/5/13 14:30 76.50 hrs 3.19 days
6.02 5-1/2" Washover BHA run (2nd trip) 2016/5/13 14:30 2016/5/16 11:45 69.25 hrs 2.89 days
6.03 Taper Tap Fishing BHA run (3rd trip) 2016/5/16 11:45 2016/5/17 20:00 32.25 hrs 1.34 days
6.04 5-1/2" Flat Mill run (4th trip) 2016/5/17 20:00 2016/5/19 21:30 49.50 hrs 2.06 days
6.05 5-1/2" Washover BHA run (5th trip) 2016/5/19 21:30 2016/5/21 23:00 49.50 hrs 2.06 days
6.06 Overshot Fishing BHA (6th trip) 2016/5/21 23:00 2016/5/23 8:00 33.00 hrs 1.38 days
7 Slip and cut drill line 2016/5/23 8:00 2016/5/23 11:30 3.50 hrs 0.15 days
7.01 RIH 5 stands of 3-1/2" OD G-105 13.3ppf DP as safety temporary string, and shut in the well 2016/5/23 8:00 2016/5/23 8:30 0.50 hrs 0.02 days
7.02 Slip and cut drill line, meanwhile maintain crown block. 2016/5/23 8:30 2016/5/23 11:30 3.00 hrs 0.13 days
8 6-5/8" Casing Scraper Run 2016/5/23 11:30 2016/5/24 19:30 32.00 hrs 1.33 days
9 Set 6-5/8" RTTS Packer+F/V Tamporary Abandonment Device 2016/5/24 19:30 2016/5/26 3:00 31.50 hrs 1.31 days
10 Aged Tubbing Spool Replacement 2016/5/26 3:00 2016/5/26 22:00 19.00 hrs 0.79 days
11 Retrieve the 6-5/8" RTTS Packer+F/V Tamporary Abandonment Device 2016/5/26 22:00 2016/5/28 2:30 28.50 hrs 1.19 days
12 7.0" Casing Scraper Run 2016/5/28 2:30 2016/5/29 5:00 26.50 hrs 0.38 days
13 E/L GR/CCL logging prior to TCP perforating 2016/5/29 5:00 2016/5/29 12:00 7.00 hrs 0.29 days
14 Reperforating with TCP guns 2016/5/29 12:00 2016/5/31 8:00 44.00 hrs 1.83 days
15 6-5/8" Casing Scraper Run 2016/5/31 8:00 2016/6/2 11:30 51.50 hrs 2.15 days
16 E/L set Bridge Plug 2016/6/2 11:30 2016/6/2 17:00 5.50 hrs 0.23 days
17 Acidize and flow-back through tubing string 2016/6/2 17:00 2016/6/8 5:00 132.00 hrs 5.50 days

17.01 Install Acidiizng tubing string with RTTS packer 2016/6/2 17:00 2016/6/4 7:30 38.50 hrs 1.60 days

17.02 Conduct acidizng and flowback operation. 2016/6/4 7:30 2016/6/7 3:00 67.50 hrs 2.81 days

17.03 Retrieve Acidiizng tubing string. 2016/6/7 3:00 2016/6/8 5:00 26.00 hrs 1.08 days

18 Installation of ESP production string 2016/6/8 5:00 2016/6/12 14:30 105.50 hrs 4.40 days

18.01 Retrieve wer bushing. Flush the inside of the tubing spool. Conduct tubing hanger dummy run. 2016/6/8 5:00 2016/6/8 8:00 3.00 hrs 0.13 days

18.02 Conduct PJSM prior to picking up ESP unit. 2016/6/8 8:00 2016/6/8 9:00 1.00 hrs 0.04 days

P/U and M/U Motor Guide +Multisensor +Motor+ Protector +Intake ARZ-ZS 400/400 + AGH D20-60 (C-CT ES) + Pump (3X63
18.03 stage) + Discharge pressure sub (flanged connection) + Discharge head. Test the reading after connect the power cable with 2016/6/8 9:00 2016/6/8 16:00 7.00 hrs 0.29 days
motor
18.04 IH w/ESP unit on 2-7/8" OD tubing and 3-1/2" OD tubing to 2648m MD 2016/6/8 16:00 2016/6/11 8:00 64.00 hrs 2.67 days

18.05 Test tubing integrity to 3000psi for 15 minutes, ok. 2016/6/11 8:00 2016/6/11 14:00 6.00 hrs 0.25 days

Take measurement, cut off power cable, install BIW penetrator in tubing hanger, splice power cable. Conduct electrical test
18.06 2016/6/11 14:00 2016/6/11 20:00 6.00 hrs 0.25 days
and motor sensor reading, OK.
Set ESP packer against 2.313" check valve. Land the tubing hanger into tubing spool. Pressure test the annulus to 500psi for
18.07 15 minutes, ok. bleed off pressure in 30 minutes due to decompression effect on power cable. Retrieve the 2.313" check valve 2016/6/11 20:00 2016/6/12 6:00 10.00 hrs 0.42 days
from 2.313" SSD.
Back off 3-1/2” EUE landing joint from tubing hanger, N/D BOP stack. N/U Adapter flange and lower master valve with ring
18.08 gasket and metalic seal. Pressure test tubing hanger seal and tubing spool/adapter flange ring gasket to 500 psi/5min and 2016/6/12 6:00 2016/6/12 14:30 8.50 hrs 0.35 days
2,000psi for 15 minutes/ OK by manual hydraulic pump.
R/D the rig mast to make enough space to install remaining X-Tree components before ESP Spin Test and Startup Test. R/D
19 the rig substructure. Install remaining X-Tree components. Pressure test the same to 500 psi for 15 mins and 4500 psi for 15 2016/6/12 14:30 2016/6/14 14:30 48.00 hrs 2.00 days

20 ESP Spin Test and Startup Test 2016/6/14 14:30 2016/6/16 5:00 38.50 hrs 1.60 days

20.01 Connect upper BIW connector, hook up power cable from Setup Transformaer/VSD skid to Junction box. 2016/6/14 14:30 2016/6/14 16:00 1.50 hrs 0.06 days
Conduct PJSM. Start up ESP at 16:10 pm with full choke opening. Record rotation status “0” and the running time is 5 minutes
at 35Hz. Shut down VSD for 15 mins and then start up ESP again with rotation status “1” and the running time is 1 minutes at
20.02 2016/6/14 16:00 2016/6/14 17:45 1.75 hrs 0.07 days
35Hz, record WHP=0 psi. Confirm the rotation status "1" is the right rotation so keep the pump running for 45mins on mud tank
and the flow rate is 3600 BPD at 35Hz and then divert directly to degassing station without shut down the ESP pump.
Divert the well to degassing Station. Continue ESP running test via degassing station at 30Hz and with choke full open. WHP
20.03 2016/6/14 17:45 2016/6/15 0:00 6.25 hrs 0.26 days
50 ↗ 200 psi. WHT 40 0 C ↗ 58 0C
20.04 Continue ESP startup test via degassing station at 35Hz and with choke full open . WHP 200 ↗ 400 psi. WHT 58 0C ↗ 60 0C 2016/6/15 0:00 2016/6/15 14:00 14.00 hrs 0.58 days
Down size the choke and continue ESP startup test via degassing station at 35Hz.
- VSD reading w/ ESP running status at 35Hz/350V/26.3A: Pi=2846psi, Pd=3229psi , Ti=187°F , Tm=204° F ,Vib= 0.00 ,
CLA=0.0 mA , CZ= 19.275 mA, CF=22.65mA.
---Th average flow rat is 3757 BPD, BS& W 10-12 % ( visual test ).
20.05 --- Casing buildup pressure keep 0 psi for more than 16 hours. 2016/6/15 14:00 2016/6/16 5:00 15.00 hrs 0.63 days
--- From 4:00 am to 5:00 am Increased the frequency from 35 Hz to 39 Hz ( gradually 1 Hz every 12 mins) in order to confirm
the VSD is able to increase the frequency.
---Shut down the ESP at 5:00am on 16 June 2016. The WHP 600↘400 psi and the well still flowing - Natural flow.
---Close Lower Master valve and keep record the downhole sensor data for 1 hour to observe Intake buildup pressure.

40.71 days

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Real Example Workover Operation 2: Well AGCS-23

1 AGCS-23 Well Schematic before the workover operation in the year of 2014

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2 AGCS-23 Well Schematic after the workover operation in the year of 2014

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3. AGCS-23 Workover Operation – Rate of Progress and Outlined Operation in the year of 2014

No. Activities Hour Day ∑day


1 Open SSD 5 0.21 0.21
Kill well. N/D X-mass tree, N/U BOP stacks, and
2 46 1.91 2.12
P/T
3 Retrieve the existing production string. 36 1.50 3.62
Wash over the packer and fish the LIH
4 remainder of the packer out of hole 513 21.36 24.98
Totally milling with 3 trips, washover with 5 trips,
5 Pump STP fluid 30.5 1.27 26.25
6 Wash down to 3140m 29 1.21 27.46
7 Well-scraping 34.25 1.43 28.89
8 CBMT 6 0.25 29.14
9 Pump STP fluid 34.25 1.43 30.57
10 Well-scraping 53.75 2.24 32.81
11 Perforation on CSG@ASAMRI C 6.5 0.27 33.08
12 RIH RTTS packer and first cementing 37 1.54 34.62
13 Drill cementing plug to 3090m 35.5 1.48 36.10
14 Well-scraping 31.5 1.31 37.41
15 CBMT 7.5 0.31 37.72
16 Discuss next operation 4.25 0.18 37.90
17 Drill cementing plug to 3108m 32.75 1.36 39.26
18 Well-scraping 29.75 1.24 40.50
19 CBMT 5.25 0.22 40.72
20 Discuss next operation 4 0.17 40.89
21 Drill cementing plug to 3149m 32.75 1.36 42.25
22 Well-scraping 28.5 1.19 43.44
23 CBMT 6.75 0.28 43.72
24 Discuss next operation 3.5 0.16 43.88
25 RIH and second cementing 35.75 1.49 45.37
26 Well-scraping 28.75 1.20 46.57
27 TCP perforation and L/D jionts 59 2.46 49.03
28 RIH Production string 61 2.54 51.57
29 N/D BOP stacks, N/U X-tree and pressure test 9.5 0.40 51.97

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Real Example Workover Operation 3: Well FQ-17

1 FQ-17 Well Schematic before the workover and ESP installation operation in the year of 2016

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2 FQ-17 Well Schematic after the workover and ESP installation operation in the year of 2016

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3. FQ-17 Workover & ESP Installation Operation – Rate of Progress and Outlined Operation in the
year of 2016

ACTUAL
No. Activities Description Start Date End Date Hrs Day Total
1 P/T annulus, S/L to drift well and open 2.813” SSD 2016/6/29 10:30 2016/6/29 22:00 11.50 0.48 0.48
2 Well killing and cleaning, N/D X-mas tree, N/U BOP stacksBOP stacks function test & pressure test 2016/6/29 22:00 2016/6/30 22:30 24.50 1.02 1.50
3 POOH original production string, L/D the same 2016/6/30 22:30 2016/7/2 17:00 42.50 1.77 3.27
4 M/U Milling packer BHA,RIH with Milling BHA on 3-1/2" single DP's and Milling, POOH to surface. 2016/7/2 17:00 2016/7/6 14:30 93.50 3.90 7.17
5 M/U and RIH fishing spear BHA,Fishing WFP Packer A, POOH and L/D the same 2016/7/6 14:30 2016/7/8 3:30 37.00 1.54 8.71
6 M/U and RIH Milling BHA tools for second trip 2016/7/8 3:30 2016/7/10 20:00 64.50 2.69 11.40
7 M/U and RIH Milling BHA tools for third trip, Push down free Packer A to top of Packer B 2016/7/10 20:00 2016/7/12 14:00 42.00 1.75 13.15
8 M/U and RIH Taper tap BHA,Fishing WFP Packer A, POOH and L/D the same 2016/7/12 14:00 2016/7/14 0:00 34.00 1.42 14.56
9 M/U and RIH fishing spear BHA,Fishing WFP Packer A, POOH and L/D the same 2016/7/14 0:00 2016/7/15 16:00 40.00 1.67 16.23
10 Repeat milling and fishing procedure, milling and fishing WFP Packer B 2016/7/15 16:00 2016/7/18 8:00 64.00 2.67 18.90
11 RIH w/Impression block to get impression and POOH 2016/7/18 8:00 2016/7/19 19:00 35.00 1.46 20.35
12 RIH w/releasing spear to fish upper seal bore of lower packer and POOH 2016/7/19 19:00 2016/7/21 4:30 33.50 1.40 21.75
13 Second trip of milling WFP Packer B and POOH 2016/7/21 4:30 2016/7/24 10:30 78.00 3.25 25.00
14 Third trip of milling WFP Packer B and POOH 2016/7/24 10:30 2016/7/27 11:30 73.00 3.04 28.04
15 M/U and RIH releasing fishing BHA, fish upper seal bore , POOH to surface and lay down 2016/7/27 11:30 2016/7/28 22:00 34.50 1.44 29.48
16 M/U and RIH releasing fishing BHA, fish lower part of lower packer, POOH to surface and lay down 2016/7/28 22:00 2016/7/30 19:00 45.00 1.88 31.35
17 Fourth trip of milling WFP Packer B and POOH 2016/7/30 19:00 2016/8/2 11:30 64.50 2.69 34.04
18 Scrape 6-5/8” liner, POOH to surface 2016/8/2 11:30 2016/8/4 1:00 37.50 1.56 35.60
RIH and set 6-5/8" RTTS packer string,back off, N/D BOP stacks, N/U new tubing spool, N/U BOP stacks, Pressure
19 2016/8/4 1:00 2016/8/7 14:00 85.00 3.54 39.15
test;Tie back, release 6-5/8" packer, POOH
20 Squeeze cement at depth 3075m~3100m, run CBMT to check cement quality. 2016/8/7 14:00 2016/8/11 10:30 92.50 3.85 43.00
21 Wireline set Bridge Plug to isolate the interval of 3090m~3095m. 2016/8/11 10:30 2016/8/12 0:30 14.00 0.58 43.58
22 Positive TCP perforation for proposed intervals 2016/8/12 0:30 2016/8/13 20:45 44.25 1.84 45.43
23 6-5/8" Casing Scraper run prior to running ESP production string. POOH and lay down drill pipe joint by joint while tripping 2016/8/13 20:45 2016/8/16 9:00 60.25 2.51 47.94
25 RIH Acidizing string with 6-5/8" RTTS packer on 3 1/2" tubing joint by joint, set RTTS packer 2016/8/16 9:00 2016/8/18 4:00 43.00 1.79 49.73
26 Acidizing and flowback with 3-1/2” tubing and 1.5” CT 2016/8/18 4:00 2016/8/21 1:00 69.00 2.88 52.60
27 Killing and POOH Acidizing string, Rack back on Drk 3 1/2" Tbg. 2016/8/21 1:00 2016/8/22 10:00 33.00 1.38 53.98
28 Install MESHRITE Sand Control String. 2016/8/22 10:00 2016/8/24 13:30 51.50 2.15 56.13
29 RIH new production string with ESP 2016/8/24 13:30 2016/8/28 10:00 92.50 3.85 59.98
Space out, M/U tubing hanger, and splice tubing hanger cable, dummy run tbg. Hanger into tbg. Spool S/L operation to set
30 2016/8/28 10:00 2016/8/29 0:00 14.00 0.58 60.56
2.313" Check valve;Set packer w/ cmt. Pump by stage pressure up, P/T annulus ;S/L retrieve 2.313" check valve from
31 N/D BOP stack and N/U 1st Master Valve, R/D Rig and move away rig for ESP start-up demand, install and pressure test 2016/8/29 0:00 2016/8/29 13:00 13.00 0.54 61.10
32 ESP start-up and commissioning. 2016/8/29 13:00 2016/8/31 5:00 40.00 1.67 62.77

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Proposed workover operations as examples are exhibited to Bidders for better


understanding on operation activities in MISSAN oilfields. The proposed worover operations
are for reference only and Bidders shall estimate the time duration and budget its price
proposal based on its capability and effectiveness at its own responsibilities.

Proposed Example Workover Operation 4: AG-9 well


Well ID AG-9A+T
Shut off water zone, perforation 2963.2-2978.5m,
Reservoir Objectives
2992.2-3026.8m; acidizing
Try to POOH original production string,
Fish out the production string above the packer
Mill and fish packer,
Scrape and drift well,
Outline Operation Change out tubing head,
TCP perforation,
Shut off water formation,
RIH permanent packer and production string.
Conduct rigless acidizing and gas-lift flow-back operation after
the workover rig is released.

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Proposed Example Workover Operation 5: AG-10 well

Well ID AG-10TA+T
Perform Through-tubing perforation 3050.8-3082.4m
Reservoir Objective
Perform riglessacidizing and gas-lift flow back

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Proposed Example Workover Operation 6: BU-12L

Well ID BU-12L+S

Reservoir Objective Perform riglessAcidizing and gas-lift flowback for BU-12L

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Proposed Example Workover Operation 7: BU-22


Well ID BU-22

Reservoir Objective To perforate about 40m, producing formation water

Scrape and drift well;


Change out the aged tubing head;
Outline Operation Positively Perforating with TCP gun (Big Hole Charge),
Sand Control
Perform acidizing on the perforated intervals
Install ESP artificial lifting production string

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Proposed Example Workover Operation 8: FQ-2


Well ID FQ-2

Reservoir Objective PLT test, water shut off, perforation 3012.9-3038.9m, acidizing

Perform PLT Production Logging Test (Rigless Operation)


POOH original production string,
Drift wellbore
Change out the aged tubing head
Outline Operation
Shut off the unwanted water zone
Re-perforate with TCP assembly
RIH production string.
Perform acidizing and gas-lift flow-back (Rigless operation)

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APPENDIX III ACIDIZING AND FRACTURING STUDY RESULT

Acidizing and Fracture Study has been conducted in year 2014 for production enhancement in
MISSAN oilfields. The critical study result data are exhibited to bidders for better understanding on
well stimulation activities in MISSAN oilfields. These collective data are for reference only. For tender
ring purpose bidders could adopt the said data, or determine its own optimized data based on its field
practices at its own responsibilities.

TABLE 1 ACID FORMULA RECOMMENDATION

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TABLE 2 TREATMENT RECOMMENDATIONS FOR TARGET RESERVOIRS

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TABLE 3 OPTIMIZED RESULTS OF MATRIX ACIDIZING

TABLE 4 OPTIMIZED RESULTS OF ACID-FRACTURING

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TABLE 5 ACID CONSUMPTION AND WASTE OILY WATER DISCHARGED


NO. WELL ID PAY ZONE PERFORATED ACID CONSUMPTION WASTER OILY WATER
LENGTH, M DICHARGED

46M3 352.4M3
1 AGCS-33 ASMARI UNIT A 38.5M
17% variable viscosity acid

44M3 327.6M3
2 AGCS-37 ASAMRI UNIT A 34.0M
17% variable viscosity acid

36M3 125.8M3
ASAMRI UNIT A 27.5M
17% variable viscosity acid
3 AGCN-34
14M3 205.7M3
ASAMRI UNIT B 14.0M
17% variable viscosity acid

150M3 609M3
4 BUCN-46H MISHRIF MB21 599.6M
17% variable viscosity acid

106M3 N/A
5 BUCN-57H MISHRIF MB-21 530.2M
20% variable viscosity acid

5M3 Pretreatment fluid, 8M3 201M3


Common Acid,
ASAMRI UNIT A 9.9M 3
13M Viscoelatic-diverting
acid
6 FQCS-33
5M3 Pretreatment fluid, 6M3 637M3
Common Acid,
ASAMRI UNIT B 12.7M 3
11M Viscoelatic-diverting
acid

48M3 372M3
7 BUCS-53 MISHRIF MB-21 12.0M
17% variable viscosity acid

35M3 159.7M3
MISHRIF MB21-D1 23.0M
17% variable viscosity acid
8 BUCS-49
15M3 85.6M3
MISHRIF MB21-D2 5.5M
17% variable viscosity acid

6M3 Pretreatment fluid, 10M3 110.8M3


Common Acid,
ASAMRI UNIT A 27M 3
15M Viscoelatic-diverting
9 FQCS-41
acid

6M3 Pretreatment fluid, 16M3 139.07M3


ASAMRI UNIT B 12M
Common Acid,

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24M3Viscoelatic-diverting
acid

6M3Ahead Fluid, 44M3 217.4M3


10 BUCS-47 MISHRIF MB21-D1 16M
20% variable viscosity acid

207M3Viscoelatic-diverting 633.5M3
11 FQCS-43H MISHRIF MB21 601.3M
acid

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Appendix IVHEALTH, SAFETYAND ENVIRONMENTALREQUIREMENTS

TABLE OF CONTENTS

1. GENERAL PROVISIONS
1.1. COMPLIANCE WITH HEALTH, SAFETY AND ENVIRONMENTAL REQUIREMENTS
1.2. DEVIATION FROM HEALTH, SAFETY AND ENVIRONMENTAL REQUIREMENTS
1.3. FAILURE TO COMPLY
1.4. COMPANY ASSISTANCE
2. HEALTH AND SAFETY REQUIREMENTS
2.1. LOSS PREVENTION PROGRAM
2.2. FAMILIARIZATION
2.3. EMERGENCY PREPAREDNESS
2.4. WORK PERMITS
2.5. PERSONAL PROTECTIVE EQUIPMENT (PPE)
2.6. TOOLS AND PORTABLE POWER TOOLS
2.7. CARTRIDGE OPERATED TOOLS
2.8. ELECTRICAL INSTALLATIONS AND EQUIPMENT
2.9. CRANES AND RIGGING EQUIPMENT
2.10. MECHANICAL EQUIPMENT
2.11. TRANSPORTATION SAFETY
2.12. ACCIDENT / INCIDENT REPORT
2.13. FIRE PREVENTION
2.14. IONIZING RADIATION
2.15. FIRST-AID FACILITIES
2.16. EXPLOSIVES
2.17. TRAFFIC CONTROL AND SAFE OPERATION ZONE
2.18. PREVENTION OF HYDROGEN SULFIDE
3. ENVIRONMENTAL REQUIREMENTS
3.1. INTRODUCTION
3.2. LEGISLATION AND REGULATIONS
3.3. WASTE MANAGEMENT PROGRAM
3.4. WASTEWATER MANAGEMENT
3.5. SOLID WASTE MANAGEMENT
3.6. AIR POLLUTION MITIGATION

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1. GENERAL PROVISIONS

1.1. COMPLIANCE WITH HEALTH, SAFETY AND ENVIRONMENTAL QUIREMENTS

Bidder shall comply with all applicable Iraqi Government health, safety and environmental
regulations and all other related rules and regulations. In case of conflicting requirements, the
most stringent requirement shall apply.

Bidder shall have available at the Work Sites the most current copy of the Safety Manual and all
applicable Handbooks, and Engineering Standards.

Bidder shall also take or cause to be taken any additional measures under the direction of
Company Representative to prevent the injury or death of any person, or any damage or loss of
property, loss of process, or damage to the environment during Bidder’s performance of the Work.

Company reserves the right to monitor and inspect any Work Sites, lay down yard, fabrication yard,
clinic, camp and dining facility for compliance with the above referenced Health, Safetyand
Environmental Requirements.

Bidder’s policy should be compatible with the latest version of the Company

Any HSE clause, which is not mentioned in Bidder documents, and is accounted as requirements of
project must be determined, assessed and be implemented by Bidder.

1.2. DEVIATION FROM HEALTH, SAFETY AND ENVIRONMENTAL EQUIREMENTS

Any deviation by Bidder from Iraqi (or other applicable) health, safety and environmental
requirements (or rules and regulations) shall be approved, in advance, in writing by Company
Representative.

1.3. FAILURE TO COMPLY

Should Bidder fail to comply with any of the requirements of this Appendix, Company reserves the
right to notify Bidder of this situation. Upon receiving such notification, Bidder shall immediately
take all necessary corrective actions. Any corrective action shall, unless provided otherwise in
this Agreement, be taken at Bidder’s expense. If Bidder fails to take prompt corrective action,
Company Representative may direct Bidder to suspend all or part of the Work pursuant to this
Agreement until satisfactory corrective action has been taken. Costs incurred by Bidder as a
result of such Work suspension shall be solely Bidder’s responsibility, and any resultant Bidder
performance delays shall not be deemed excusable hereunder.

1.4. COMPANY ASSISTANCE

Bidder may request assistance from Company with respect to the implementation of its Health,
Safety and Environmental Requirements. Company Representative (or Company Representative’s
designated party or parties) may provide assistance to the Bidder by explaining good safety and
sound environmental practices, pointing out unsafe conditions, and by applying experience and
judgment, to assist Bidder in improving safety and to safeguard the environment. Such assistance
by Company shall in no way relieve Bidder of its responsibilities as set forth in this Appendix E.

2. HEALTH AND SAFETY REQUIREMENTS:

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Bidders shall establish appropriate procedures in compliance with all requirements of this
document.

2.1. LOSS PREVENTION PROGRAM

Bidder shall prepare and submit a Loss Prevention Program with a job-specific Hazard
Identification Plan (HIP) to Company Representative for approval no later than 3 weeks before
starting Work. Mentioned document must include risk assessment. Bidder shall ensure full
implementation of the Program. Bidder shall appoint a qualified full-time Safety Supervisor (who
is subject to Company approval), fluent in spoken and written English, to coordinate the Loss
Prevention Program. He is to be provided with a dedicated means of transportation. The name,
qualifications, service vehicle type, phone number, and address of the Safety Supervisor shall be
submitted to the Company Representative for approval and concurrence. The Safety Supervisor
shall be frequently present at the Work Sites while Bidder personnel are working.

The Program shall outline specific essential measures to be taken by Bidder to prevent human
injuries, property/equipment damage, loss of process, or damage to the environment and to ensure
compliance with this Appendix.

The Program shall be organized and implemented by each craft or crew supervisor. It shall
include a specific plan to hold a documented ten-minute safety meeting, organized and
implemented by each craft or crew supervisor at least one day in each working week. These
meetings shall be monitored by Bidder’s management and key staff personnel.

2.2. FAMILIARIZATION

All personnel directly involved with the well site operation shall be made familiar with:

- HSE and quality issues and requirements

- Associated equipment (as required for the work)

- Operating procedures and contingency procedures

- Emergency preparedness plans and procedures

In addition key personnel shall also be made familiar with:

- The overall scope of work on the well sites

- Field specific requirements

- Communication and coordination procedures

2.3. EMERGENCY PREPAREDNESS

Emergency preparedness plans shall be prepared for field environment of in WORKOVER &
ASSOCIATED SERVICESfor Bidder. These plans shall be in detail describe the emergency
response organization and the delegation of responsibility for tasks, and communication lines.
Furthermore, these emergency preparedness plans shall cover all foreseeable situations which
may arise during the operation, and which may result in personal injuries or the loss of human life,
material or equipment damage or harm to the environment.

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2.4. WORK PERMITS

Bidder shall obtain a Work Permit for any Work to be carried out in any specified "Restricted Area"
or as may be required the presence of Company Representative. It shall be Bidder’s responsibility
to ascertain, in advance, whether the Operation Area is designated a Restricted Area. Company
Representative can give guidance on Restricted Area locations. Bidder shall only provide
qualified and certified craft personnel to execute and/or supervise Work.

Supervisory personnel or other qualified staff must always be present at the Work Sites while any
Work is in progress. All Work Permit procedures shall be followed for the works of but not limit to:

- Pressure Testing Safely

- Gas Testing Procedure

- Energy Isolation

- Lockout and tag out

- Use of explosive material

- Use of Radioactive material

2.5. PERSONAL PROTECTIVE EQUIPMENT (PPE)

Bidder shall, as a minimum, provide, maintain and enforce the use of the items of personal
protective equipment (PPE). The PPE used shall be suitable for the work of:

- Work in the field environment

- Work at aloft

- Chemical handling

- Painting/coating

- Abrasive blasting

- Welding and cutting

- Other danger jobs

Bidder shall comply with these requirements and all PPE requirements stipulated by the
manufacturer of the hazardous/toxic material. Specifications of all PPE to be used by the Bidder
shall be included in the Bidder’s Loss Prevention Program submitted for review. The PPE items
should include:

- Safety Spectacles

- Helmet

- Gloves

- Footwear

- Eye protection
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- Hearing protection

- Other special devices

2.6. TOOLS AND PORTABLE POWER TOOLS

Tools shall be equipped with proper safeguards and used only in applications for which they were
designed. Portable power tools shall be the double insulated type or three-wire grounded type. All
electrical outlets servicing these power tools shall be protected by Ground Fault Circuit Interrupters
(GFCI). All tools (including portable power tools) shall be free from any defect and maintained in a
good operating condition. Companyreserves the right to reject, remove from site or destroy tools
and portable power tools found to be defective or of substandard quality. Use of un-certified tools
is strictly prohibited.

2.7. CHARGER OPERATED TOOLS

Charger operated tools shall be used only with the prior written approval of Company
Representative. Bidder shall ensure that only cartridge tools meeting local required standards are
used and maintained in good condition.

No person shall operate, clean, maintain, or repair any cartridge tool unless certified by the
cartridge tool manufacturer or an equivalent qualification. Documentation of certification shall be in
the possession of the person on the Work Sites at all times as proof of qualification.

2.8. ELECTRICAL INSTALLATIONS AND EQUIPMENT

All material and equipment used in temporary electrical installations shall meet local required
standards if it applicable. Bidder shall ensure that all 125 volt, single phase 15 and 20 amperes
receptacle outlets, which are not part of the permanent wiring of any building or structure, shall
have Ground Fault Circuit Interrupters (GFCIs) for personal protection.

2.9. CRANES AND RIGGING EQUIPMENT

Bidder shall ensure that all lifting devices and every part thereof, including all equipment used for
anchoring or fixing such devices, shall be in good mechanical operating condition, free from any
defect, and constructed of materials with a specified strength suitable for the intended use. Bidder
shall also ensure that such lifting devices are properly inspected, maintained. All chains, hooks,
slings, shackles and other equipment on a lifting device used for raising or lowering shall be
certified and maintained in good condition. If it is applicable, all cranes and elevating/lifting
equipment shall be inspected and certified by local authorities before being permitted to operate in
Iraqi projects.

All mobile heavy equipment and crane operators shall possess a valid certificate, which is accepted
by local authorities. Crane operator shall possess valid operation license.

Bidder shall establish the lifting procedure for all lifting Work. Job Safety Analysis of lifting shall be
carried out before commence of work.

2.10. MECHANICAL EQUIPMENT

Bidder shall ensure that all mechanical equipment provided is maintained in good condition.

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All moving parts of any equipment shall be securely guarded to prevent access to these parts by
persons working on or passing through the Work Sites.

2.11. TRANSPORTATION SAFETY

Bidder shall ensure that passengers shall travel only in vehicles that are provided with passenger
seats. This requirement shall apply for travel to and from any Work Sites, and at the Work Sites
itself. Seat belts shall be installed for all seats and used in all vehicles carrying personnel (except
in the case of buses where seat belts are mandatory only for the driver).

The towing of small equipment, such as compressors, welding machines, etc., is allowed, but only
after the equipment is properly and safely connected to the tow vehicle (i.e. all safety pins, safety
chains, shackles and brake/indicator lights are in place). The towing speed of the vehicle shall not
exceed 40 kilometers per hour project Work Sites. For highway travel, such equipment shall not
be towed, but shall be carried in a flat bed truck, etc.

Bidder shall comply with all pertinent requirements of the Iraqi Government traffic regulations for
transporting materials and supplies. This requirement is emphasized for the transportation of
explosives and other hazardous materials.

2.12. ACCIDENT / INCIDENT REPORT

Bidder shall ensure that an immediate oral report and preliminary written report is made to
Company Representative in the case of all:

- Fatal injuries

- Injuries requiring medical evacuation.

- Fires

- Serious property damage

- All accidents involving cranes and heavy equipment

- Environmental pollution event

For accidents resulting in Bidder employee fatality, serious injury to Bidder employee(s), or damage
to Company equipment or property, a written report shall be submitted promptly to Company
Representative. In addition, Company may convene an engineering review or investigation
committee in accordance with the requirements.

Bidder shall maintain a current record showing all:

- Work Injuries

- Fires

- Incidents of property / equipment damage

- Traffic accidents

- Damage and all accidents involving cranes and heavy equipment

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- Worked man hours

This record shall be available for inspection at all reasonable times and shall be submitted to
Company upon request.

HSE monthly report must be issued to MOC/Company based on the attached format by Bidder.

2.13. FIRE PREVENTION

Bidder shall provide and maintain in good working order suitable fire fighting equipment. All Bidder
personnel shall be properly trained in the use of fire fighting equipment. The fire-fighting training of
Bidder’s employees shall be documented the record shall be available to Company upon request.

Storage, layout and fabrication yards shall be laid out in accordance with local applicable standards
with respect to the spacing of rows, fire lanes and compatibility of material. Inspection, Testing and
Maintenance of Fire Protection Equipment shall be performed according established schedule of
Bidder.

2.14. IONIZING RADIATION

Bidder shall ensure that any radioactive source used is in compliance with the provisions of
Industrial Radiation Safety Manual. Bidder shall implement safe working procedures for all
operations involving radioactive materials, ensure that all employees using this equipment have a
valid permit and are aware of the mandatory precautions to be taken against ionizing radiation
hazards. Radiation Safety Procedure(s) shall be prepared by the Bidder and submit to Company
for review. The Bidder shall notify Company Representative (or local Safety Authorities Office)
immediately in the event of an incident involving radioactive materials or ionizing radiation
producing equipment.

2.15. FIRST-AID FACILITIES

Bidder shall provide and maintain adequate first-aid facilities at the Work Sites. When Bidder
employs 50 or more workmen at a Work Sites, BIDDER shall provide a qualified and certified
doctor, with a current CPR and First-Aid Certificate, and a dedicated emergency vehicle
(ambulance), properly supplied (including stretcher) and marked, to transport injured personnel to
the nearest healthcare facility. The names, qualifications, and certificates of the certified doctor(s)
shall be submitted to Company Representative before Work begins.

2.16. EXPLOSIVES

Company shall promptly advise Company Representative of any requirement for the use of
explosives.

Bidder shall comply with the General Rules and Requirements for the Handling and Use of
Explosives issued by the Iraqi Government Ministry of Interior and other applicable requirement.
Bidder shall be aware the regulations of using explosive shall be followed strictly and the deviation
from requirement will cause the delay of Work.

2.17. TRAFFIC CONTROL AND SAFE OPERATION ZONE

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Any survey work that will affect vehicle or pedestrian traffic in any way shall be done in accordance
with local applicable requirement. Authorities shall be contacted and operation permit shall be
obtained before on land survey work begins.

Safe Operation zone shall be applied for on land survey work under guidance of Company
representative and M.O.C. representative.

2.18. PREVENTION OF HYDROGEN SULFIDE

In case there is a possibility that hydrogen sulfide may occur in the process of operation: Before
commencing the operation, the Bidder shall conduct the training for his employees with respect to
the harm, characteristics, precautions and emergency procedures. In the process of operation,
make sure the employees shall be provided with appropriate hydrogen sulfide detection equipment
and oxygen breathing apparatus. The male employees shall shave off his beard to avoid air
leakage when wearing oxygen-breathing apparatus. If it is confirmed that there indeed exists
hydrogen sulfide, a specific plan shall be made to prevent hydrogen sulfide poisoning.

3. ENVIRONMENTAL REQUIREMENTS

3.1. INTRODUCTION

This section covers various Environmental and Sanitary requirement for WORKOVER
&COMPLETION CALLOUT SERVICESapplicable during the handling, treatment and disposal of
liquid and solid wastes.

3.2. LEGISLATION AND REGULATIONS

As a minimum requirement, all personnel and equipment, which are involved in WORKOVER
&COMPLETION CALLOUT SERVICESfor Company, shall be verified to comply with the following:

- Local authority’s requirements of field environment protection, including requirements from the
flag state, coastal state and port state.

- Relevant international conventions.

- Class requirements from a recognized classification society.

3.3. WASTE MANAGEMENT PROGRAM

Concurrent with the preparation of the initial Work Schedule, Bidder shall prepare and submit for
review to Company Representative a “Waste Management Program” that details sources and
disposal methods for all liquid and solid wastes. This Program shall be in accordance with the
recommendations of the "Project Environmental Assessment" (if available) prepared for the project
to outline the basic environmental framework for the project execution. Bidder shall appoint a
qualified Environmental Coordinator to coordinate the Program. The name and address of the
Environmental Coordinator shall be submitted to Company Representative no later than the
Program's submittal.

3.4. WASTEWATER MANAGEMENT

The basic design of all wastewater treatment units and the disposal of sanitary/industrial
wastewater shall comply with the following:
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CNOOC IRAQ LIMITED

- Regional Organization for the Protection of the Environment (ROPME)

- Company requirement concerning the wastewater disposal.

3.5. SOLID WASTE MANAGEMENT

Bidder shall establish waste management procedure to cover the solid waste disposal. Waste
disposal procedure shall include provisions for temporary site storage, collection, transportation
and disposal practices.

Solid waste produced from the well sites shall be sent to dispose. No waste can be dumped to the
wild.

All hazardous waste shall be stored in tightly closed, leak proof containers. Containers shall be
marked with warning labels to accurately describe their contents and detail appropriate safety
precautions.

Incompatible hazardous wastes shall not be stored in the same storage or transportation container.
Company Representative will assist in determining the compatibility of the wastes.

Hazardous chemicals shall be stored and handled in accordance with local regulation. The
manufacturer’s Material Safety Data sheet (MSDS) shall be available for all chemicals storage area
and the location where chemicals are being used.

3.6. AIR POLLUTION MITIGATION

Bidder shall comply with local applicable Air Quality and Source Emission Standard.

All vehicles, which Bidder used for the Work, shall be properly maintained to minimize excessive
exhaust emissions and shall comply with the Standardization & Metrology Organization for Iraqi
Standards.

Dust control shall be accomplished by properly wetting the Operation Area prior to commencing the
Work if it is relevant.

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CNOOC IRAQ LIMITED

APPENDIXV WELL SITE MINIMUM SECURITY REQUIREMENT

1. Prior to any well sites operations commencing the required security measures
provided by the well site contractor, should be in place, tested and operational.
Over and above the well site preparation requirements, these measures include,
but not limited to:

a. Lights

i. Sufficient perimeter lights need to be installed to support both the visibility


of the guard force (outward lighting) as well as provide sufficient light for
the CCTV system to be effective. Each lamp must be at least 400 watts
(Halogen type).

ii. Sufficient lights must be erected to provide overlapping coverage of the


rig surroundings and approach routes.

iii. The office and living areas should have sufficient light to enable the guard
force to observe when conducting inner patrols.

iv. The main entrance should have sufficient light for the guard force to do
visual search of vehicles and personnel.

b. CCTV. The following areas need to be covered by CCTV:

i. Perimeter fence including the emergency exit.

ii. Main entrance gate and approach route.

iii. Office and living areas of well site personnel.

iv. CCTV staff must monitor the CCTV 24/7.

c. Access Point or Vehicle Checkpoint. The vehicle checkpoint will allow


access to one vehicle at a time and consist of the following:

i. A guard room with office.

ii. A Jersey barrier constructed defendable position to provide cover to


guards in event of an attack.

iii. A boom gate.

iv. A Jersey barrier chicane to slow vehicles approaching the main entrance.

v. A set of hand operated caltrops (a device used to blow out tyres).


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CNOOC IRAQ LIMITED

vi. A blast wall constructed of 4m high T-walls must be erected between the
parking area and the main entrance.

Figure 2 : 4m T-Wall

d. Duck and Cover Bunkers

i. Duck and cover bunkers sufficient to accommodate all staff on site must
be deployed for immediate cover against direct and indirect enemy fire.

ii. Duck and cover bunkers must be placed so that it is easily accessible and
must be sufficient to accommodate all personnel.

iii. Bunkers dimension available on the local market will determine how
many people can be accommodated in each bunker.

iv. Open sides must be closed off with two 2m meter high T-walls. If the
threat justifies the openings on top must be covered to resist penetration
of indirect fire.

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CNOOC IRAQ LIMITED

Figure 3 : Duck and Cover Bunker

Figure 4 : 2m T-Wall

e. Muster Points. Muster points are to be established for accountability checks.


These points are to be easily accessible, clearly marked and communicated
with personnel.
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CNOOC IRAQ LIMITED

f. Watch Towers

i. Two properly constructed watch towers should be constructed per well


site.

ii. Towers must provide cover against small arms fire as well as the
elements and have power, AC and water.

iii. Internal lighting should not expose the guard to enemy fire. A red bulb of
low watts must be used.

iv. The height of the tower should be sufficient to enable the guard to do 360
degree surveillance of the surrounding area.

v. Guards in towers must have radios to be in contact with the rig site
protection force.

vi. Towers must provide adequate protection from small arms fire (SAF).
This shall be achieved by the erection of sand bags to a minimum of 1.8
meter from the deck or by permanently affixing hardened steel, 550
Brinell or greater to the exterior of the tower, to protect the security guard.

vii. Tower must be fitted with air-conditioning.

g. Weapons Loading Bay. A weapon loading/unloading bay (clearing barrel)


shall be placed within 15 meters of the main entrance gate outside the
perimeter fence. Below figure provides a guideline of the construction of a
weapon clearing barrel.

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CNOOC IRAQ LIMITED

Figure 5 : Clearing Barrel Design

Figure 6 : Clearing Barrel Lid Design

h. Alarm

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CNOOC IRAQ LIMITED

i. An alarm system must be in place to alert well site personnel of the


different emergency situation.

ii. The alarm system should be sufficient to reach all locations on the well
site including during high winds and well site noise.

iii. Alarm system should meet all the HSE requirements of Company.

i. Sun Shelters

i. Corrugated metal sheeting, timber and fittings in sufficient quantity to


make sun shelters must be constructed.

ii. Sun shelters should have a roof and be a minimum of 3m wide x 3m


length. Side walls must not obstruct the view of the guard when under the
shelter.

j. Guard Force

i. Guard force must be managed by a registered PSC security services


provider.

ii. A minimum of 6 armed guards need to be deployed for the protection of


the well site. A guard commander will supervise all guard activities on the
well site.

iii. Guards must be armed with a Kalashnikov (AK47) with 2 magazines filled
with 30 rounds each.

iv. Guards must have body armor and protective equipment.

v. Radios

1. Guard force must have VHF handheld radios for communication.

2. Guards must have radio communications with the security provider


operations room.

3. Radios are to be registered on the security clearance of the security


provider.

4. A valid licence for the use of radios must be available from the GOI
Minister of Communications.

k. Emergency Exit
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CNOOC IRAQ LIMITED

i. After deployment, the contractor will be responsible to fill up the ditch and
break the berm at the emergency exit, making the exit usable for
emergency evacuation.

ii. The emergency exit must be guarded.

iii. Before demobilization after completion of operations at the well site, the
contractor will be responsible to resume the ditch and berm to the
standard as they were before deployment.

iv. The condition of the ditch and berm, together with the keys of the main
gate and the emergency exit gate, will constitute part of the hand over
inspection procedure.

END

Page 116 of 116


INVITATION TO TENDER

FOR

WORKOVER AND STIMULATION OPERATIONS SERVICES

TENDER NO.: CMIT-PRT-10.30-170167

SECTION 4

SCHEDULE OF COMPENSATION

October, 2017

Dubai, U.A.E
CNOOC IRAQ LIMITED

PRICE PART

1. COMPOSITION OF PRICE PART

The price part shall contain the Cover Letter of Bid, the Schedule of Prices and Rates and shall
be prepared and sealed separately and independently.

The price part shall contain the Cover Letter of Bid, the Schedule of Prices and Rates shall be
prepared in strict accordance with the structure of the Quotation Forms as enclosed hereof and
sealed separately and independently. It is understood that Company defined Quotation Forms
may not fully cover every pricing item that a Tenderer wishes to propose for the Work. However,
a Tenderer is allowed and requested to use its own format for the non-covered pricing items of
the Work in an identifiable section in addition to the Company defined Quotation Forms.
2. BID PRICES
Tenderer shall indicate on the appropriate Bid Schedule of Prices either based on the unit prices
(where applicable) and total bid price of the ITT. The total price shall not include any items
beyond the requirement of the tendering document; otherwise, the offer on such items will not
be deducted when evaluation. Also, the price shall not omit any items required in the tendering
document; otherwise, the highest offer of the same item among the effective bids will be added
to the total bid price. In case of discrepancy between unit price and total, the unit price shall
prevail. A bid without itemized price required shall be considered as non-responsive.

Tenderer shall note that all bidding prices (whether of individual items or in total) shall be
considered as tax inclusive and no tax shall be mentioned separately in the bidding price.
Tenderer shall be considered disqualified if the tax is mentioned separately in the bidding price
documents.

Prices quoted by the Tenderer shall be fixed during the Tenderer's performance of the contract
and not subject to variation on any account. A bid submitted with an adjustable price quotation
will be treated as substantially non-responsive and will be rejected.

Tenderer’s price offer shall include, but not limit to:

♦ Price proposal for the scope of service respond to the service requirements given in this ITT
document.

♦ Promotion program, discounts scheme, and/or any other special offers applied to Tenderer’s
bid proposal.

♦ For training, Tenderer shall pay more attention on following:


CNOOC IRAQ LIMITED

 The training cost shall not be mentioned separately in the bidding price, The Tenderer
shall be considered as disqualified if the training cost is mentioned separately in the
bidding price document.

 The logistic arrangement for training tutors and attendees including but not limited to
meals, airline ticket, hotel accommodation, land transportation and other allowance
shall be provided by Tenderer at its own cost.
CNOOC IRAQ LIMITED

TABLE OF CONTENT

1. GENERAL DEFINITION
2. LUMP SUM QUOTATION FOR MOBILIZATION AND DEMOBILIZATION
3. LUMP SUM QUOTATION FOR BASIC SERVICES PACKAGE
4. LUMP SUM QUOTATION FOR SPECIAL SERVICES PACKAGE
5. LUMP SUM QUOTATION FOR OTHER SERVICES PACKAGE
6. RATE PRICE QUOTATION FOR SERVICES BEYOND SERVICES PACKAGES,
SPECIAL SERVICE PACKAGES AND OTHER SERVICE PACKAGES

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CNOOC IRAQ LIMITED

1. GENERAL DEFINITION
The General Definition shall be the quotation basis for price offer.
1) BASIC SERVICES PACKAGE hereinafter means one Services Package that shall cover
most of the certain and predicable operational tasks or jobs relating to well intervention and
new well completion activities. Lump Sum Model Quotation for the module BASIC
SERVICES PACKAGE shall be applied to the said services.

2) SPECIAL SERVICE PACKAGE hereinafter means one Services Package that shall cover
most of the particular and predicable operation tasks or jobs relating to well intervention and
new well completion activities. Lump Sum Model Quotation for the module SPECIAL
SERVICE PACKAGE shall be applied to the said services.

3) OTHER SERVICE PACKAGE hereinafter means one Service Package that Bidder could
provide through third party.

4) With respect to the services items which are predicable but exclusive of BASIC SERVICE
PACKAGE and SPECIAL SERVICE PACKAGE and OTHER SERVICE PACKAGE, RATE
PRICE Model Quotation shall be applied to the said services.

5) With respect to operation suspension due to company reasons and not due to contractor fault
and/or negligence, RATE PRICE Model Quotation shall be solely applied to RIG SERVICE
without any other compensation.

6) MOBILIZATION hereinafter means the service facilities, equipment, tools, materials and
service manpower move into Iraq from its origins once the contract is awarded and upon
company written notification.

7) DEMOBILIZATION hereinafter means the service facilities, equipment, tools, materials and
service manpower leave from MISSAN oilfield and transfer back to its origin or designated
points mutually agreed by both parties once the contract is terminated and upon company
written notification.

8) ROUND TRIP TRANSFER will apply for transportation equipment, tools, materials and
service crews during project implementation period within the contractual area and means a
closed route between two independent designated points, such as Contractor Base Camp
and Company Well Pad, or one Company Well Pad and another one Company Well Pad.

9) TRIP hereinafter means a round trip including running in hole and pulling out of hole with
success.

10) OPERATION COMMISSIONING TIME: the time signed by wellsite supervisor in the operation
commissioning instruction after workover rig is ready for operation.

11) OPERATION END TIME: the time signed by Company Representatives in workover rig move
or release instruction.

12) STANDBY TIME hereinafter means Company stop or suspend work due of no-Tender’s fault
during operation time.
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CNOOC IRAQ LIMITED
13) WELL hereinafter means the whole workloads for a specific well.

14) JOB hereinafter means works to completely and successfully accomplish a specific task, e.g.
perforating, packer or plug setting, pressure test, acidizing, flowback to return spent acid and
to induce natural flow, SSD opening or closing, well pressure build-up test, etc.

15) INTERVAL or ZONE hereinafter means a separate formation layer or sub-layer in the
detailed Geology & Reservoir requirement.

16) DAYS hereinafter means 24 hours a day.

17) TANK hereinafter means a kind of tank which is used for liquid waste disposal

18) TYPE I RIG hereinafter means a kind of truck-mounted rig with rated power between 750HP
and 1000HP.

19) TYPE II RIG hereinafter means a kind of rig with at least 1000HP power rated.

20) 3200M WELL hereinafter means wells to develop ASAMRI reservoir or well PBTD depth
within 3500m MD.

21) 4200M WELL hereinafter means wells to develop MISHRIF reservoir or well depth PBTD
depth over 3500m MD.

22) Rig Supporting Service hereinafter includes services of Rig/Rig Crew/Rig Tools/Filtered
Work Fluid and Mud Engineers/Tubular Handling Equipment and Engineers.

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CNOOC IRAQ LIMITED

2. LUMP SUM MODEL QUOTATION FOR MOBILIZATION AND DEMOBILIZATION

DESCRIPTION LUMP SUM PRICE (USD)

Mobilization and Demobilization Charges for one (1) set of TYPE I RIG (rated power between 750HP and 1000HP) with
associated equipment/tools/materials/Service Crew during Project Contract Period.

Mobilization and Demobilization Charges for one (1) set of TYPE II (rated power ≥1000HP) with associated
equipment/tools/materials/Service Crew during Project Contract Period.

Mobilization and Demobilization Charges for all equipment/tools/ materials/ Service Crews for all other associated services
during Project Contract Period.

3. LUMP SUM MODEL QUOTATION FOR BASIC SERVICE PACKAGE


LUMP SUM FOR THE LUMP SUM FOR THE LUMP SUM FOR THE LUMP SUM FOR THE
MINI SERVICES MINI SERVICES MINI SERVICES MINI SERVICES
PACKAGE PACKAGE PACKAGE PACKAGE
NO. DESCRIPTION OF BASIC SERVICE PACKAGE
3200M WELL 4200M WELL 3200M WELL 4200M WELL
WITH TYPE I RIG WITH TYPE I RIG WITH TYPE II RIG WITH TYPE II RIG
(USD) (USD) (USD) (USD)
One Round Trip Rig Transfer between BIDDER BASE and well pad or between
1
Company’s well pad and well pad.
Pressure test the annulus between the production casing and production tubing against
Production packer to check the pressure integrity of casing and tubing string. Slick-line
2
operation to open SSD, if failed slick-line or wire-line operation to punch tubing to
establish communication. Circulate to kill the well, conduct flow check.
N/D X-Mass tree, N/U BOP stack and Bell Nipple, Conduct function tests and pressure
3
tests on BOP stack.
4A Release the anchor seal assembly from packer by normal rotation and/or reciprocation
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CNOOC IRAQ LIMITED
of the work string. Pull out of hole with the existing natural-flow production string.
Continuously fill up the hole with work fluid while tripping out of hole for well control
issue.
Attempt to release the anchor seal assembly from packer, when the production tubing
is parted somewhere above the anchor seal assembly due to erosion or corrosion, pull
out of hole with the free portion of the production string.
4B
Note that the rest operation to fish out the LIH string above the packer shall be charged
by applicable Rig Comprehensive Daily Rate and Rate Price of fishing service.
Note that the fishing program shall be approved by Company.
Attempt to release the anchor seal assembly from packer, if failed to sting out the
Anchor Seal Assembly from the packer by normal rotation and/or reciprocation of the
work string, run wire-line Free Point Indicating tool to find the stuck point and then
jet-cut the production tubing string above the stuck point with Chemical Cutter or
4C Explosive Cutter or Hydraulic Cutter. Pull out of hole with the free portion of the
production string.
Note that the rest operations to fish out the remainders between the cutting point and
Anchor Seal Assembly shall be covered by Rate Price.
Note that the fishing program shall be approved by Company.
Release the ESP packer by straight pull and/or reciprocation of the work string. Pull out
4D of hole with the existing ESP artificial lifting production string. Continuously fill up the
hole with work fluid while tripping out of hole for well control issue.
Remove one (1) Production Packer.
5A
Milling to release the packer and retrieve it readily
Remove one (1) Production Packer
5B
Milling the packer and push away from the objective interval
Remove one (1) Production Packer
5C
Milling the packer and push it to the bottom and retrieve it.

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CNOOC IRAQ LIMITED
6 Sand cleaning operation through drill pipe string(within four days)
Polish the stage-cementing collar with properly sized Burning Shoe or Taper Mill or
7 String Watermelon mill to eliminate restrictions for future packers (with big outside
diameter) running through.
Scrape the cased hole, break circulation to thoroughly circulate hole clean, POOH and
8
lay down the Casing Scraper BHA.
RIH w/ RTTS Packer and Storm Valve, set RTTS and leave the RTTS Packer and
Storm Valve in hole as one mechanical safety barrier. N/D BOP stack, grid the top of
9
the casing stub and then replace the aged or incompatible tubing spool. N/U BOP stack
and conduct pressure tests. Retrieve the RTTS packer and Storm Valve.
Conduct Casing Corrosion Inspection logging with rig for maximum 500 meters interval
10
(Multi-Finger Imaging Tool or Casing Integrity Tests or equivalent logging tool).
Conduct Water Saturation Logging (Pulsed Neutron-Neutron logging or other
11 equivalent logging tool) with rig for maximum 150 meters interval for Mishrif and
Maximum 200 meters for Asmari
Conduct Cement Quality Logging for 200 meters with rig (Cement Bond Mapping Tool
12
or other equivalent logging tool).
RIH w/ Bridge Plug or Cement Retainer or Sump Packer on drill pipe, conduct depth
13A correlation using GR/CCL, set the Bridge Plug or Cement Retainer or Sump Packer
using cement unit. POOH.
RIH w/ Bridge Plug or Cement Retainer or Sump Packer on wire-line, conduct depth
13B correlation using GR/CCL and then set the Bridge Plug or Cement Retainer or Sump
Packer. POOH.
RIH w/Open End Drill pipe and set a balanced Cement Plug (maximum 200 meters in
length per Cement Plug) inside 4-1/2” OD or 5-1/2” OD or 6-5/8” or 7.0” OD casing
13C
cased-hole. POOH w/Open End Drill Pipe. RIH w/Cement Plug Drilling BHA and dress
the top of the cement plug to designed depth. POOH.

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CNOOC IRAQ LIMITED
M/U and RIH with TCP perforating guns, conduct depth correlation using GR/CCL, fire
the perforating guns in under balance condition to perforate 30 meters. Kill the well,
POOH and lay down the fired guns.
14A Note that when the actual perforating interval is under or over 30 meters, Unit Price
shall be applied for the difference of the guns, and Unit Price will also be applicable for
the Spacer Guns. TCP perforating package shall include relevant down-hole rental
service such as Rupture Disc, R/A Sub, high-wall tubing, etc. Rate Price shall be
applicable for RTTS packer service.
M/U and RIH with TCP perforating guns, conduct depth correlation using GR/CCL, fire
the perforating guns in over balance condition to perforate 30 meters. Kill the well,
POOH and lay down the fired guns.
14B Note that when the actual perforating interval is under or over 30 meters, Unit Price
shall be applied for the difference of the guns, and Unit Price will also be applicable for
the Spacer Guns. TCP perforating package shall include relevant down-hole rental
service such as Rupture Disc, R/A Sub, high-wall tubing, etc.
Scrape the perforated intervals prior to running packers or bridge plugs or Sump
15
Packers. Circulate hole clean and then POOH.
RIH one (1) packer with packer setting tool on drill pipe, conduct depth correlation
16
using GR/CCL, set the packer by Cementing unit. POOH and lay down the setting tool.
RIH w/the acidizing string to designed depth, set the RTTS packer. Acidize the target
17A perforated zone through coiled-tubing, and then flow back the well to return the residual
spent acid through gas-lift with coiled tubing. POOH the acidizing string.
RIH w/the acidizing string, set the RTTS packer. Acidize the target perforated zone
17B through the production tubing, and then flow back the well to return the residual spent
acid through gas-lift with coiled tubing. POOH the acidizing string.
M/U and RIH with natural-flow production string, conduct tubing integrity test against
check valve or blanking plug every 1000 meters while running in hole. Displace the
18A
annulus with packer fluid. Land tubing hanger into the tubing spool, set top production
packer using cementing unit. Pressure test the annulus between the production casing
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CNOOC IRAQ LIMITED
and production tubing against the top production packer. Slick-line run Gauge Cutter to
tubing shoe to ensure no restrictions.
RIH w/ESP Production String without POD system, conduct production tubing integrity
test every 1000 meters against check valve or blanking plug. Slick-line retrieve the
check valve or blanking plug and then displace packer fluid, make ESP power cable
penetration through the tubing hanger and connect lower pigtail, splice with the ESP
18B
power cable. Land tubing hanger into the tubing spool. Slick-line make a wiper trip and
then set a blanking plug, set ESP packer and pressure test the annulus against the
packer to 500psi for 15 minutes, bleed off slowly to avoid decompression effect on the
ESP power cable. Slick-line retrieve the blanking plug from landing nipple.
RIH w/ESP Production String with POD system, conduct production tubing integrity test
every 1000 meters against check valve or blanking plug. Slick-line retrieve the check
valve or blanking plug and the displace packer fluid, make ESP power cable
penetration through the tubing hanger and connect lower pigtail, splice with the ESP
18C
power cable. Land tubing hanger into the tubing spool. Slick-line make a wiper trip and
then set a blanking plug, set ESP packer and pressure test the annulus against the
packer to 500psi for 15 minutes, bleed off slowly to avoid decompression effect on the
ESP power cable. Slick-line retrieve the blanking plug from landing nipple.
N/D BOP stack and N/U X-mass tree. Pressure test Tubing hanger seal and X-Trees
19
using cement unit.
Connect the temporary flow-line with production flow-line, and connect the upper
pigtail. Conduct 1-hour surface ESP equipment commissioning test followed by
20 5-minutes ESP Spin Test to confirm the right rotation, and then conduct 36-hour ESP
start-up test prior workover rig release.
Conduct well pad tidiness and housekeeping after the workover rig is released.

21A Waste Disposal for natural flow well during rig operation

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CNOOC IRAQ LIMITED
Waste Disposal for ESP artificial lifting well during rig operation
21B Note that waste disposal might be requested during ESP startup test (approximate 36
hours when if the production pipeline is not ready).

22 Company material transportation

NOTES
1. The Basic Service Package shall be applicable for rig operations with TYPE I RIG and TYPE II RIG.
2. The lump sum quotation for every mini service package in the BASIC SERVICE PACKAGE shall be inclusive of all required specific services including such as equipment, tools, material
and service crews, tubular handing, work fluid, cement unit, slickline, wireline, etc.
3. When applicable, Daily Rate Price for rig shall cover all charges relating to Rig/Rig Crew/Rig Tools/Filtered Work Fluid/Mud Engineer.
4. With respect to operation suspension or non-productive time due to Company reasons and not due to Contractor fault and/or negligence, Daily Rate Price for Rig shall be applied to ‘RIG
SERVICE WITH ASSOCITED EQUIPMENTS, TOOLS, MATERIALS AND RIG CREWS’ without any other compensation.
5. No matter the well profiles are vertical, deviated or horizontal, wells with PBTD depth below 3500m MD shall be deemed as a 3200M Well. The LUMP SUM QUOTATION FOR BASIC
SERVICES PACKAGE of 3200M Wells shall be applied correspondingly.
6. No matter the well profiles are vertical, deviated or horizontal, wells with PBTD depth above 3500m MD shall be deemed as a 4200M Well. The LUMP SUM QUOTATION FOR BASIC
SERVICES PACKAGE of 4200M Wells shall be applied correspondingly.
7. The charge for one packer removal shall be deemed as Unit Price as mentioned in the Basic Service Package. When more packers shall be removed from the cased hole in one well, the
actual service charge shall be Unit Price multiplied by quantities of packers.
8. The charge for one packer setting on drill pipe shall be deemed as Unit Price as mentioned in the Basic Service Package. When more packers shall be set according to the approved
programs, the actual service charges shall be Unit Price multiplied by quantities of packers.
9. When the actual operation includes Special Services Package and Other Service Package, the service charge for the said Services Package shall be chosen from ITEM 4 LUMP SUM
QUOTATION FOR SPECIAL SERVICE PACKAGE and ITEM 5 LUMP SUM QUOTATION FOR OTHER SERVICE PACKAGE correspondingly.
10. When the actual operation include unpredicted tasks or jobs which oversteps the Scope of Work described in or covered by the Basic Service Package and Special Service Package and
Other Service Package, the Daily Rate Price for Rig shall be applied accordingly and correspondingly.
11. For the Mini Basic Service package of Packer Removal the packer is washed over and is pushed downward to a depth which is no significant impact on the implementation of Reservoir
Requirement, maximum one fishing trip shall be applied to try best to remove the packer from down hole. However Daily Rate Price for Rig for Rig Service shall be applicable when if
Company adheres to move the packer from down hole.
12. As to Matrix Acidizing Service the skin factor after treatment shall be less than ZERO. The recommended Acid Formula, injection rate and acid volume per meter in APPENDIX III

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CNOOC IRAQ LIMITED
ACIDIZING AND FRACTURING STUDY RESULT of SECTION 4 shall be referred to accordingly with acid volume within 50 m3 (25m3 gelled acid+25m3 self-diverting acid). When the acid
volume is over 50 m3 (25m3 gelled acid+25m3 self-diverting acid), Rate Price Model for each kind of acid will be applicable for extra acid volume correspondingly.
13. The objective of flow-back is to remove the spent acid out of hole and formation, so when any of the following three (3) conditions be met, the flow-back operation shall be ceased.
Otherwise the relevant Rate Price shall be charged accordingly. The three (3) conditions include: - Condition 1 - when the total flow-back volume of fluid is three (3) times of acid volume
and the pH value of unloaded fluid≥6.0; Condition 2 - when the return fluid contained formation water that pH value<6 and the pH value of unloaded fluid equal
to the pH value of formation water; Condition 3- when the oil content is 100%.
14. Service charge for RTTS packer in acidizing string shall be inclusive in Basic Service Package without additional cost.
15. Due to the uncertainty of well losses any LCM pill used to minimize well losses will be charged at Unit Price (USD$/M3)

4. LUMP SUM QUOTATION FOR SPECIAL SERVICE PACKAGE


LUMP SUM LUMP SUM LUMP SUM LUMP SUM
SPECIAL QUOTATION FOR QUOTATION FOR QUOTATION FOR QUOTATION FOR
NO SERVICE DESCRIPTION OF SPECIAL SERVICE PACKAGE 3200M WELL 4200M WELL 3200M WELL 4200M WELL
PACKAGE WITH TYPE I RIG WITH TYPE I RIG WITH TYPE II RIG WITH TYPE II RIG
(USD) (USD) (USD) (USD)
• RIH w/the cement slurry squeezing string with RTTS packer
• Depth correction with W/L GR/CCL
• Set the RTTS packer
• Perform Injectivity test, and squeeze or circulate cement slurry to
stop the channeling problem or abandon the unwanted perforation
Squeezing tunnels, release the RTTS packer, and circulate to clean the well
1 cement slurry • WOC for 24 hours, POOH w/the cement slurry squeezing string
• RIH the cement plug drilling string, drill out the cement plug inside
cased-hole. POOH.
• Scrape the wellbore prior Cement Quality Logging. Perform Cement
Quality Logging with CBMT logging tool or equivalent logging tool.
• If failed to reach the desirable objective the cement slurry squeezing
or spotting operation shall be repeated.

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CNOOC IRAQ LIMITED
Single-Zone • RIH the stand-alone sand screen string and sting the snap-latch seal
Stand-Alone assembly into the sump packer
Screen • Drop a packer setting ball and hydraulically set the top retrievable
2A
deployment for packer. Test the sealing effectiveness of the top retrievable packer.
vertical or • Release the setting tool and shear out ball seat.
deviated wells, • POOH and lay down the setting tool.
• RIH the sand control string and sting the snap-latch into the sump
packer
• Drop a packer setting ball and hydraulically set the Sand Control
Packer. Test the sealing effectiveness of the Sand Control Packer.
Single-zone • Release setting tool string, and return the ball.
Gravel-Packing • Pick up the work string to designated position, open the gravel pack
2B
for vertical or sliding sleeve, apply pressure from DP for circulation to clean well,
deviated wells, perform squeezing and circulation test.
• Conduct gravel packing operation
• Close the gravel pack sliding sleeve and reverse circulation to return
the excessive gravel.
• POOH and lay down the working tool string
NOTES:
1. The Special Service Package shall be applicable for rig operations with TYPE I RIG and TYPE II RIG.
2. The lump sum quotation for every service package in the SPECIAL SERVICE PACKAGE shall be inclusive of all relating services including equipment, tools, and service crews, etc.
3. The charge for Single-Zone Stand-Alone Screen deployment for vertical or deviated wells shall be deemed as Unit Price as mentioned in the Special Service Package. When more
zones shall be applied with Stand-Alone Screen deployment in one specific well, the actual service charge shall be Unit Price multiplied by quantities of zones.
4. The charge for Single-zone Gravel-Packing (suitable for 6-5/8” OD 28.0ppf casing or 7.0” OD 32.0ppf casing cased hole) shall be deemed as Unit Price as mentioned in the Special
Service Package. When more zones shall be applied with Gravel Pack in one specific well, the actual service charge shall be Unit Price multiplied by quantities of zones.
5. When the cement slurry volume is over 10m3, Rate Price shall be applicable for the extra cement slurry for squeezing operation.
6. The rental equipment, rental tools and the service engineers shall be included for this said Special Services Package. However Rate Price shall be applicable for the packers, screens
and Proppant , and seal assembly etc.

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CNOOC IRAQ LIMITED
7. For cementing slurry squeezing operation, if job failed not caused by contractor(such as sever well losses, etc.), the time required to repeat cement job shall be compensated on the
comprehensive daily rate model, in case job failed due to contractor reasons, contractor should repeat the job at contractor account and responsiblility.

5. LUMP SUM QUOTATION FOR OTHER SERVICE PACKAGE


5.1. LUMP SUM QUOTATION FOR OTHER SERVICE PACKAGE WITH RIG SUPPORTING

LUMP SUM FOR THE LUMP SUM FOR THE LUMP SUM FOR THE LUMP SUM FOR THE
MINI SERVICES MINI SERVICES MINI SERVICES MINI SERVICES
OTHER
PACKAGE PACKAGE PACKAGE PACKAGE
NO SERVICE DESCRIPTION OF OTHER SERVICE PACKAGE
3200M WELL 4200M WELL 3200M WELL 4200M WELL
PACKAGE
WITH TYPE I RIG WITH TYPE I RIG WITH TYPE II RIG WITH TYPE II RIG
(USD) (USD) (USD) (USD)
• Acid-fracturing is optimized and recommended according to the
reservoir physical properties of North Block of FAUQI oilfield. The
recommendations are as below:
- The length of the acid-etched fractures is 80m and the
conductivity of the fractures is 40Dacy•cm.
• Mini-fracturing shall be carried out to determine the formation
Acid-fracturing
parameters with 50 m3 Cross-linked Fluid and 50m3 Base Fluid
for vertical/
recommended prior to main acid-fracturing process.
1 deviated well
• Carry out main acid-fracturing with 400m3 gelled acid and 100m3
(with Rig
self-diverting acid at the injection rate of 16 – 25BPM.
Supporting)
• Operation Outline is as below: -
- RIH w/ the tubing string with RTTS packers, set the RTTS
packer.
- Carry out acid fracturing with gelled acid and self-diverting acid to
expand the connection range surrounding the well through sliding
sleeve or perforated holes.

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CNOOC IRAQ LIMITED
- Conduct gas lifting operation to return the spent acid and induce
flow for productivity.
- Unset the RTTS packer and POOH.
Note that the subjected casing and tubing which are exposing to
injection pressure shall withstand minimum 10000psi.
NOTES:
1. The lump sum quotation for the OTHER SERVICE PACKAGE shall be inclusive of all relating services including equipment, tools, material and service crews, rig supporting etc. And Rig
supporting service hereinabove includes services of Rig/Rig Crew/Rig Tools/Filtered Work Fluid and Mud Engineers/Tubular Handling Equipment and Engineers.
2. The starting time of Acid-Fracturing operation shall start from making up and running in hole with acid-fracturing work string and the finishing time of Acid-Fracturing operation shall be the
time that laying down the acid-fracturing work string.
3. Bidder should mobilize the related equipment once receive written specified workload.
4. The recommended Acid Formula and injection rate in APPENDIX III ACIDIZING AND FRACTURING STUDY RESULT of SECTION 4 shall be referred to accordingly.
5. Bidder could provide OTHER SERVICE PACKAGE through third parties.
6. The pre-set volumes for mini-fracturing are 50 m3 Cross-linked Fluid and 50m3 Base Fluid. The pre-set volume of Slick Water for the main Acid-Fracturing is 100m3. The pre-set volumes
for main Acid-Fracturing are 400m3 gelled acid and 100m3 self-diverting acid.
7. Rate price for treatment fluid shall be applicable when if the actual consumption is over or under the pre-set volume. Namely when the actual consumption of each kind of treatment fluid
are under the pre-set volume, the actual payment for each kind of treatment fluid shall be deducted from the Lump Sum Prices, and when the actual consumption of each kind of
treatment fluid is over the pre-set volume, the actual payment for each kind of fluid shall be added to the Lump Sum Cost.
8. The objective of flow back is to remove the spent acid and check productivity, so when any of the three following condition be meet, the flow back operation should be completed.
Otherwise, the rig supporting service, gas-lifting service and flow-back service shall be charged accordingly with applicable Rate Price.
Condition 1: the flow back volume reaches 3 times of volume injected, or when the total flow back fluid’s water cut is the same or as or lower than the production before for 12 hours
Condition 2: when the return fluid contained formation water that pH<6 and the pH of flow back fluid= the pH of formation water.
Condition 3: when the oil content is 100%

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5.2. LUMP SUM QUOTATION FOR OTHER SERVICE PACKAGE WITHOUT RIG SUPPORTING
OTHER LUMP SUMQUOTATION LUMP SUM QUOTATION
No SERVICE DESCRIPTION OF OTHER SERVICE PACKAGE FOR FOR
PACKAGE 3200M WELL (USD) 4200M WELL - (USD)
• Acid-fracturing is optimized and recommended according to the reservoir physical properties of North Block
of FAUQI oilfield. The recommendations are as below:
- The length of the acid-etched fractures is 80m and the conductivity of the fractures is 40Dacy•cm.
• Mini-fracturing shall be carried out to determine the formation parameters with 50 m3 Cross-linked Fluid and
Acid-fracturing 50m3 Base fluid prior to main acid-fracturing process
for vertical/ • Carry out acid-fracturing w/ 400m3 gelled acid and 100m3 self-diverting acid at the injection rate of 16 –
1 deviated well 25BPM.
(without Rig • Operation Outline is as below: -
Supporting) - Carry out acid fracturing with gelled acid and self-diverting acid to expand the connection range
surrounding the well through sliding sleeve or perforated holes.
- Conduct gas lifting operation to return the spent acid and induce flow for productivity.
Note that the subjected casing, tubing, wellhead and X-Mass tree which are exposing to injection pressure
shall withstand minimum 10000psi.
NOTES:
1. The lump sum quotation the OTHER SERVICE PACKAGE shall be inclusive of all relating services including equipment, tools, material and service crews, etc.
2. The recommended Acid Formula and injection rate in APPENDIX III ACIDIZING AND FRACTURING STUDY RESULT of SECTION 4 shall be referred to accordingly.
3. Bidder should mobilize the related equipment once receive written specified workload.
4. Bidder could provide OTHER SERVICE PACKAGE through third parties.
5. The pre-set volumes for mini-fracturing are 50 m3 Cross-linked Fluid and 50m3 Base Fluid. The pre-set volume of Slick Water for the main Acid-Fracturing is 100m3. The pre-set volumes
for main Acid-Fracturing are 400m3 gelled acid and 100m3 self-diverting acid.
6. Rate price for treatment fluid shall be applicable when if the actual consumption is over or under the pre-set volume. Namely when the actual consumption of treatment fluids are under
the pre-set volume, the actual payment shall be deducted from the Lump Sum Prices, and when the actual consumption of treatment fluids are over the pre-set volume, the actual
payment shall be added to the Lump Sum Cost.

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CNOOC IRAQ LIMITED
7. The objective of flow back is to remove the spent acid and check productivity, so when any of the three following condition be meet, the flow back operation should be completed.
Otherwise, the gas-lifting service and flow-back service shall be charged accordingly with applicable Rate Price.
Condition 1: the flow back volume reaches 3 times of volume injected, or when the total flow back fluid’s water cut is the same or as or lower than the production before for 12 hours
Condition 2: when the return fluid contained formation water that pH<6 and the pH of flow back fluid= the pH of formation water.
Condition 3: when the oil content is 100%

5.3 LUMP SUM QUOTATION FOR OTHER SERVICE PACKAGE WITH RIG SUPPORTING(Deformed or damaged casing reparation)
OTHER LUMP SUMQUOTATION LUMP SUM QUOTATION
No SERVICE DESCRIPTION OF OTHER SERVICE PACKAGE FOR FOR
PACKAGE 3200M WELL (USD) 4200M WELL - (USD)
The scope of work shall fully include the following works: -
Deformed or
• Expandable Tubular and associated consumable material supply
damaged
• Detection of the casing deformation or damage area with Lead Impression Block.
casing
1 • Pretreatment on the deformed or damaged casing area prior to the deployment of expandable tubular for
reparation for
casing reparation, such as such as polishing runs and/or scraping runs and/or casing swage run upon
9-5/8” OD
actual requirement.
casing
• Repair the deformed or damaged casing area
The scope of work shall fully include the following works: -
Deformed or • Expandable Tubular and associated consumable material supply
damaged • Detection of the casing deformation or damage area with Lead Impression Block.
2 casing • Pretreatment on the deformed or damaged casing area prior to the deployment of expandable tubular for
reparation for casing reparation, such as such as polishing runs and/or scraping runs and/or casing swage run upon
7.0” OD casing actual requirement.
• Repair the deformed or damaged casing area
Deformed or The scope of work shall fully include the following works: -
damaged • Expandable Tubular and associated consumable material supply
3
casing • Detection of the casing deformation or damage area with Lead Impression Block.
reparation for • Pretreatment on the deformed or damaged casing area prior to the deployment of expandable tubular for

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CNOOC IRAQ LIMITED
6-5/8” OD casing reparation, such as polishing such as polishing runs and/or scraping runs and/or casing swage run
casing upon actual requirement.
• Repair the deformed or damaged casing area
The scope of work shall fully include the following works: -
Deformed or
• Expandable Tubular and associated consumable material supply
damaged
• Detection of the casing deformation or damage area with Lead Impression Block.
casing
4 • Pretreatment on the deformed or damaged casing area prior to the deployment of expandable tubular for
reparation for
casing reparation, such as polishing runs and/or scraping runs and/or casing swage run upon actual
5-1/2” OD
requirement.
casing
• Repair the deformed or damaged casing area
NOTES:
1. The lump sum quotation the OTHER SERVICE PACKAGE shall be inclusive of all relating services including equipment, tools, material and service crews, rig supporting etc. And Rig
supporting service hereinabove includes services of Rig/Rig Crew/Rig Tools/Filtered Work Fluid and Mud Engineers/Tubular Handling Equipment and Engineers.
2. Caliper logging and/or MIT logging for post-operation evaluation will be compensated with RATE PRICE Model Quotation when happens
3. Bidder could provide OTHER SERVICE PACKAGE through third parties.
4. The maximum overall length of the expandable tubular including Expandable Liner Hanger or Expandable Launcher is 20 meters per package. This service package charge shall be
deemed as Unit Price. When if extra length is required for the casing reparation, the actual payment will be Unit Price of job multiplied by [1+increased meters
percentage]
5.3 LUMP SUM QUOTATION FOR OTHER SERVICE PACKAGE WITH RIG SUPPORTING (Hydraulic Radial Jetting)
OTHER LUMP SUMQUOTATION LUMP SUM QUOTATION
No SERVICE DESCRIPTION OF OTHER SERVICE PACKAGE FOR FOR
PACKAGE 3200M WELL (USD) 4200M WELL - (USD)
• Casing window construction for the first one casing window
Hydraulic • Lateral fluid channel construction for the first one fluid channel to improve reservoir conductivity and
Radial Jetting connectivity
1
(with rig • Casing window construction for One (1) more extra casing window
supporting) • Lateral fluid channel construction for One (1) more extra fluid channel to improve reservoir conductivity and
connectivity
Page 19 of 34
CNOOC IRAQ LIMITED
NOTES:
1. The lump sum quotation the OTHER SERVICE PACKAGE shall be inclusive of all relating services including equipment, tools, material and service crews, rig supporting etc. And Rig
supporting service hereinabove includes services of Rig/Rig Crew/Rig Tools/Filtered Work Fluid and Mud Engineers/Tubular Handling Equipment and Engineers.
2. Bidder could provide OTHER SERVICE PACKAGE through third parties.
3. The overall length of one (1) fluid channel shall be more than 10 meter.
4. Casing window construction for One (1) more extra casing window and lateral fluid channel construction for One (1) more extra fluid channel shall be deemed as Rate Price. When more
extra casing window constructions and extra fluid channel constructions are required for the reservoir conductivity and connectivity improvement, the actual payment will be Unit
Price of job multiplied by quantity of extra casing windows and extra lateral fluid channels.

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CNOOC IRAQ LIMITED

6. RATE PRICE MODEL QUOTATION FOR SERVICES BEYOND BASIC SERVICE PACKAGE AND
SPECIAL SERVICE PACKAGE AND OTHER SERVICE PACKAGE

6.1 RIG SERVICE WITH ASSOCIATED EQUIPMENTS, TOOLS, MATERIALS AND RIG CREWS
No Description Unit Unit Rate Price (USD)
Daily Rate Price for rig with rated power between
1 Per Day Per Rig
750HP and 1000HP

2 Daily Rate Price for rig with rated power≥1000HP Per Day Per Rig

NOTES:
A. Daily Rate Price for rig shall cover all charges relating to Rig services with Rig/Rig Crew/Rig
Tools/Filtered Work Fluid and Mud Engineers/Tubular Handling Equipment and Engineers.
B. With respect to operation suspension due to Company reasons and not due to Contractor fault and/or
negligence, Daily Rate Price shall be applied to ‘RIG SERVICE WITH ASSOCITED EQUIPMENTS,
TOOLS, MATERIALS AND RIG CREWS’ without any other compensation.
C. Daily Price Rate shall be applied to ‘RIG SERVICE WITH ASSOCITED EQUIPMENTS, TOOLS,
MATERIALS AND RIG CREWS’ without any other compensation if and when Company adds extra
works.
D. Daily Rate Price shall be applicable for the service items which are exclusive of the Basic Service
Package, Special Service Package and Other Service Package.

6.2 WORK FLUID SERVICE AND FILTRATION SERVICE


6.2.1 Work Fluid Charge

Name UNIT Unit Price (USD)

3
Viscous pill, FV(funnel viscosity) ≥100S M

3
Solid-free loss pill with no damage to reservoir M

3
Acid-Soluble LCM pill M

NOTES:
A. The fluid formulations of the work fluid shall be subject to Company’s
approval prior to work implementation.
B. Unit price shall fully cover all the material, equipment and personnel used
for proposed work fluid
Cost related to filtration service and related consumable material shall be covered by
the aforesaid Unit Price of Work Fluid.

6.3 PUMPING SERVICES WITH CEMENT PUMPING UNIT


6.3.1 Charges for Service of equipment, tools and service personnel

Unit Price
Item Service Item Unit
(USD)
Pumping services including equipment, tools, service personnel and
1 12 hrs
transportation

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CNOOC IRAQ LIMITED

NOTES:

A. The pumping service shall include pressure test, packer setting, water/diesel/solvent/demulsifier
pumping.
B. The starting time shall be the time when the said equipment, tools and service personnel arrive at the
objective work location, and the ending time shall be the time when the said equipment, tools and
service personnel leave the objective work location.
C. This quotation is applicable for rigless operation when if requested by Company.

6.4 PERFORATING SERVICE

Unit Price
Description Unit
(USD)
TCP (Tubing or Drill Pipe Conveyed) Perforating Service in cased hole Per Job

Wire-line Conveyed Perforating Service in cased hole Per Job

Perforating loaded gun (4-1/2” OD and 3-3/8” OD) Meter


Wireline Conveyed Spiral Type Through-Tubing Perforating Gun
Meter
(1-11/16” OD and 2-1/8” OD)
Necessary spacer gun for all sizes of tubing or drill pipe conveyed guns Meter

NOTES:
A. TCP perforating package shall include relevant down-hole rental service such as Rupture Disc, R/A Sub,
high-wall tubing, etc. (exclusive of RTTS packer service charge)
B. For perforating service, the Per Job price should include the corresponding depth correlation service.

6.5 ACIDIZING SERVICE AND PUMPING SERVICE WITH ACID PUMPING UNIT
6.5.1 Charges for Service of equipment, tools and service personnel

Unit Price
Item Description Unit
(USD)
Acidizing service with personnel, acid tanks, acid pumps
1 Interval
and buffer tanks, etc.
Pumping service with personnel, acid tanks, acid pumps and
2 Operating Day
buffer tanks, etc.
Equipment/Tools/Materials/Service Crew Transportation for
3 Round Trip
acidizing service and/or pumping service

6.5.2 Consumable Materials

Unit Price
Item Fluids Unit
(USD)
Acidizing Treatment Fluid (Common Acid) for acidizing or 3
1 M
acid-fracturing service
Acidizing Treatment Fluid (Gelled Acid) for acidizing or 3
2 M
acid-fracturing service
Acidizing Treatment Fluid (Self-Diverting Acid) for acidizing or 3
3 M
acid-fracturing service

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CNOOC IRAQ LIMITED
3
4 Acid Fluid for cleaning or flushing M
3
5 Solvent Fluid for cleaning or flushing M
3
6 Demulsifier Fluid for cleaning or flushing M
3
7 Friction Reducing Fluid M
8 Viscosity testing for crude oil or formation fluid Per sample
9 Water analysis (including pH, density, chloride, salinity) Per sample
10 Dissolution ability test Per sample
NOTES:
A. As to Matrix Acidizing Service the skin factor after treatment shall be less than ZERO.
B. The recommended Acid Formula, injection rate and acid volume per meter in APPENDIX III
ACIDIZING AND FRACTURING STUDY RESULT of SECTION 4 shall be referred to accordingly.
C. The fluid formulations of the Acidizing Treatment Fluid, Solvent Fluid, Demulsifier Fluid and acid
fluid shall be subject to Company’s approval prior to work implementation.

6.6 COILED TUBING AND NITROGEN SERVICE (RIGLESS OPERATION)


6.6.1 Charges for Service of equipment, tools and service personnel

Unit Price
Description Unit
(USD)
Coiled tubing equipment, tools and service personnel for single zone
Zone
acidizing operation in vertical wells or deviated well
Coiled tubing equipment, tools and service personnel for acidizing
Job
operation in horizontal well
Coiled tubing equipment, tools and service personnel for single zone
Operating Day
gas lifting operation in vertical wells or deviated well
Coiled tubing equipment, tools and service personnel for gas lifting
Operating Day
operation in horizontal well

Nitrogen equipment(Nitrogen Generator, Nitrogen pump/booster and


Operating Day
accessories)

Coiled tubing equipment, tools and service personnel for sediments


Operating Day
cleanout with water or diesel or hi-vis pill

Coiled tubing equipment, tools and service personnel for diesel, solvent
Operating Day
and/or demulsifier cleaning or flushing operation

Coiled tubing equipment, tools and service personnel for cement plug Operating Day

Coiled tubing equipment, tools and service personnel for milling


Operating Day
hardware

Coiled tubing equipment, tools and service personnel for through-tubing


Operating Day
inflatable packer (or retrievable bridge plug)

Coiled tubing equipment, tools and service personnel for hydraulic


Per Cut
cutting (4-1/2”, 3-1/2”, 2-7/8” and 2-3/8” OD tubing)

Coiled tubing equipment, tools and service personnel for Blanking Plug Per Plug

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CNOOC IRAQ LIMITED
removal

Coiled tubing equipment, tools and service personnel for SSD shifting Per SSD

Transportation of Coiled Tubing Equipment/Tools/Service Crews Round Trip

Transportation of Nitrogen Equipment/Tools/Service Crews Round Trip


NOTES:
A. When it is a dual-zone or triple-zone acidizing operation in one vertical well or deviated well,
the actual payment shall be Unit Price of Per Job multiplied by the quantities of zones which had
been successfully acidized.
B. When coiled tubing is utilized for sediment cleanout with water or hi-vis pill, pumping service with
Cement Unit or Acid Pumps shall be applied accordingly for compensation. The water and/or hi-vis
pill shall be inclusive and no additional charge to Company.
C. When coiled tubing is utilized for cement plug, pumping service with Cement Unit or Acid Pumps
3
shall be applied accordingly for compensation. The cement slurry with total volume within 5M shall
3
be inclusive and no additional charge to Company. If the total volume of cement slurry is over 5M ,
3
additional charges for the extra volume shall be applied at Per M .
D. The fluid formulations of hi-vis pill and cement slurry shall be subject to Company’s approval prior to
work implementation
E. The charges for conventional CT BHA (including Connector, Double Flapper Check Valve and
nozzle) shall be inclusive of CT price.
F. The Special Down-Hole Tools shall be compensated separately with Rate Price Model.

6.6.2 Special down-hole tools

UNIT LIH PRICE


ITEM DESCRIPTION UNIT
PRICE(USD) (USD)

Special CT BHA for Blanking Plug Removal including


1 Job
Connector, Motor Head, Intensifier, Jar and GS pulling tool

Special CT BHA for shifting Sliding Side Door including


2 Job
Connector, Motor Head, and Flow Activated Shifting Tool

Special CT BHA for hardware milling including Connector,


3 Job
Motor Head centralizer, Motor and mill

Special CT BHA for coiled tubing fishing operation,


4 including Connector, Motor Head, Intensifier, Jar, overshot Job
dressed with Spiral Grapple or Bowl Type Grapple
Special CT BHA for cutting Tubing with CT including
5 Job
Coiled tubing cutter and coiled tubing hydraulic motor

6.7 FLOWBACK SERVICE


6.8.1 Equipment and Personnel Service Charge
Unit Price
Description Unit
(USD)
Flow-back Equipment (flow tree, three phase separator, manifolds,
Operating Day
flare line, etc) and Personnel Services
Equipment Transportation Round Trip

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CNOOC IRAQ LIMITED
6.8 WASTES TREATMENT SERVICE
6.9.1 Equipment and Personnel Service Charge
Unit Price
Item Description Unit
(USD)
1 Waste Treatment Equipment and Personnel service for disposed
Well
volume ≤400M during one well operation
3

2 Waste Treatment Equipment and Personnel for extra volume M


3

NOTE:
3
A. If the actual volume of oily waste to be disposed is more than 400M , the Rate Price will be applicable for
extra disposal volume.

6.9 SLICKLINE AND WIRELINE SERVICE

Unit Price LIH


(USD) Charge
Item No. Service Item Unit
(USD)
3200M 4200M

1 slickline Drift well with gauge cutter Job

2 slickline Open Sliding Side Door (SSD) Job

3 slickline Close Sliding Side Door (SSD) Job

4 slickline Tubing Punching Hole

5 slickline Set Blanking Plug or Check Valve Job

6 slickline Retrieve Blanking Plug or Check Valve Job

7 slickline Impression with Lead Block Trip

8 slickline Sediment sampling ( 500 grams per Job) Job


Static Pressure and Temperature Gradient
9 slickline Job
Testing with interpretation
Flowing Pressure and Temperature Gradient
10 slickline Job
Testing with interpretation
PVT Sampling (600cc per sample, include 2ea
11 slickline Job
sample bottles)
Well draw-down Pressure Test or Fall-off
12 slickline Pressure Test with interpretation (Maximum 7 Job
days)
Well Build-up Pressure Test with interpretation
13 slickline Job
(Maximum 7 days)
Water Injection Nozzle Replacement from Side
14 slickline Job
Pocket Mandrel
Fishing operation with slickline (Include fishing
15 slickline tools, and maximum five trips for fishing Job
operation)
Flowing and Shut-in Production Logging Test
16 slickline Job
(PLT)
17 Slickline Scale or paraffin or asphalt removal from the Job

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CNOOC IRAQ LIMITED
inside of production tubing

Flowing Production Logging Test (PLT) with


18 wireline Job
interpretation
Shut-in Production Logging Test (PLT) with
19 wireline Job
interpretation
20 wireline Water Injection Profile Testing Job
Water Injectivity Index Testing (Maximum 3
21 wireline Job
days)
Cement Bond Imaging Logging with
22 wireline Job
interpretation
Tubing/casing corrosion Inspection with
23 wireline Job
interpretation (Multi-Finger Imaging Tool)
Through tubing casing integrity test with
24 wireline interpretation (Casing Integrity Tester or Pipe Job
Inspection Tool)
25 wireline Tubing punching with chemical or explosive Job

26 wireline Free point indicating Job

27 wireline Setting one bridge plug or one packer Job


Jet cutting for Size 2-7/8” and 3-1/2” and 4-1/2”
28 wireline Job
OD tubular
29 wireline String shot back off Job

30 wireline Depth correlation with GR/CCL Logging tools Trip

31 wireline Reservoir saturation logging with interpretation Job


32 wireline Junk basket Trip
Cement Dump Bailer combined with CCL to be
33 Wirline run through wireline in the casing (DP size Trip
4-1/2”, 3-3/8”)
Cement Dump Bailer combined with CCL to be
run through tubing by wireline (Mini. Restriction
34 Wireline 2.205”), for dumping cement above the BP Trip
(Cement and Cement Additives shall be
supplied by Contractor free of charge)
33 One PVT sample bottle Day
Through-tubing inflatable packer Setting
34 service including service engineer, setting tools Job
and slickline or wireline
Through-tubing Retrievable bridge plug Setting
35 service or retrieving services including service Job
engineer, setting tools and slickline or wireline
Surface pressure test service for SSDs and Not
36 Job
Nipples applicable
37 Tubing inner packer Job
38 Explosive tubing cutting Job

NOTES:

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CNOOC IRAQ LIMITED
A. Conventional slickline: drift well, open or close SSD, set or retrieve plugs or check valves, etc.
B. As sound Oil & Gas practice dummy run shall be implemented with no additional charges to
Company
C. For Reservoir saturation logging job, proposed testing interval is within 150m. If the test section
more than 150m the actual payment will be Unit Price of job multiplied by [1+increased meters
percentage]
D. For Cement Bond Imaging Logging job, proposed testing section is within 500m. If the test section
more than 500m the actual payment will be Unit Price of job multiplied by [1+increased meters
percentage]
E. For Tubing/casing corrosion Inspection job, proposed testing section is within 500m. If the test
section more than 500m the actual payment will be Unit Price of job multiplied by [1+increased
meters percentage]
F. For perforation service, the price should included corresponding depth correlation service
G. Quoted price for perforating service shall cover all the service charge except perforation gun and
explosive charge. Especially for TCP perforation, the unit price exclude the cost of RTTS and
whole down hole tools used in TCP operation,
H. For reservoir data acquisition service, the quoted price shall include charges for data
interpretation. Data interpretation for service items related to data acquisition shall be Tender’s
responsibility.
I. The preliminary interpretation result shall be submitted to Company within 7 days.
J. PVT sampling service shall not include data interpretation service
K. All the slick-line and/or wire-line operation programs shall be prepared by Contractor and
approved company.
L. PLT at a definite flow rate is defined as a separate job.
M. Company shall return the PVT Sample bottles back to Tender within 30 days after receiving them.
Per day charge shall be applied when PVT Sample Bottle is unable to be returned back to
Contractor.

6.10 DOWNHOLE TOOLS SERVICE AND MATERIAL SUPPLY


6.11.1 Charges for Service of equipment, tools and service personnel
Unit Price
Item Description Unit
(USD)
1 Down-hole tools service Well
RTTS packer and Subsurface Control Valve installation and
2 Round Trip
removal for well temporary abandonment
3 RTTS packer and Subsurface Control Valve (Storm Valve) Rental Operating Day

4 EZSV packer setting service with setting tools Job


Chemical Injection system installation (including pressure test,
5 splicing with service tool, swage-lock, test pump, service Well
engineer, etc)

Page 27 of 34
CNOOC IRAQ LIMITED
NOTES:
A. The down-hole tools services shall include the down hole tools preparation (e.g.: function test, pressure
test, inspection, check threads, assemble the setting tool with the packers, connect protection pups,
repairing, redressing, drawing tools schematic …etc should be carried out in the bidder workshop built by
bidder in Iraq MISSAN oilfields
B. The service engineer should be qualified enough to check all the down hole tools condition on well-site,
record the type of down hole tool, check the threads, dimensions (length, OD, ID), recommended torque,
series number, amount of the down hole tools, and prepare relevant tallies.
C. The service engineer should be qualified enough to assist in supervising running and pulling operations
of the down-hole tools and setting and/or releasing the different types of the packers (Retrievable
Hydraulic and/or Mechanical and Hydraulic Permanent or wire line set packers).
D. Unit price of Per Day will apply for RTTS and Subsurface Control Valve (Storm Valve) when they are
utilized for well temporary abandonment.

6.11.2 Materials Supply

Unit Price
Item Service Item Unit DAP,
(USD)
6.11.2A EZSV Packers
1 EZSV packer for 7.0” OD 32.0ppf casing EA

2 EZSV packer for 6-5/8” OD 28.0ppf casing EA

3 EZSV packer for 5-1/2” OD 17.0-20.0ppf casing EA

4 EZSV packer for 4-1/2” OD 13.5 – 15.1ppf casing EA


6.11.2B Centralizers
1 Rigid Centralizer for 4.0” OD perforated pipe or sand screens EA
2 Rigid Centralizer for 3-1/2” OD perforated pipe and sand screens EA
6.11.2C Inflatable Packer
Through-tubing inflatable packer to be set inside 6-5/8” OD 28.0ppf liner
with 2.205 inch minimum through-bore ID of production tubing string
1 EA
(bidder should submit quotations for the redress kits, running tools and
retrieval tools prices)
Through-tubing inflatable packer to be set inside 5-1/2” OD 17.0ppf –
20.0ppf casing with 1.760 inch minimum through-bore ID of production
2 EA
tubing string. (bidder should submit quotations for the redress kits,
running tools and retrieval tools prices)
Through-tubing inflatable packer to be set inside 4-1/2” OD 12.6ppf –
15.1ppf casing with 1.760 inch minimum through-bore ID of production
3 EA
tubing string. (bidder should submit quotations for the redress kits,
running tools and retrieval tools prices)
Through-tubing Retrievable bridge plug to provides a means of
temporarily plugging off selected sections of a well without pulling the
4 EA
Production tubing. (to be set for tubing String different sizes from 2.875”,
6.4# to 4 ½”, 12.6#) with redress kits, running tools and retrieval tools
Page 28 of 34
CNOOC IRAQ LIMITED
Tubing inner packer(packer could be setting in tubing range from 2-7/8” to
5
4-1/2” tubing
6.11.2D Sand Control Equipment and Material (Optional)
Retrievable Packer with Mill Out Extension, suitable for 6-5/8” OD 28.0#
1 EA
L-80 13Cr casing
Retrievable Sand Control Packer with Gravel Pack Sliding Sleeve
2 EA
Assembly, suitable for 6-5/8” OD 28.0# L-80 13Cr casing
Safety Apparatus Joint (Shear-Out Safety Sub), suitable for 6-5/8” OD
3 EA
28.0# L-80 13Cr casing, 3-1/2” OD premium connection
4 Sump Packer, suitable for 6-5/8” OD 28.0# L-80 13Cr casing EA
Snap-Latch for 6-5/8” Retrievable Packer, Seal Unit OD≥3.239” to match
5 EA
with 6-5/8”Retrievable Packer, minimum ID ≥2.35”
Snap-Latch for 6-5/8”Sump Packer, Seal Unit OD≥3.239” to match with
6 EA
6-5/8” Sump Packer, minimum ID ≥2.35”
2.813” Nipple, minimum ID: 2.813”, maximum OD≤4.5”, 3-1/2” OD
7 EA
premium connection
2.813” Plug including Lock Mandrel, Housing and Equalizing Prong,
8 EA
match with 2.813” Nipple
Premium Screen, 3-1/2” 9.2ppf base pipe, L80-13Cr, 250micrometer filter
9 medium, 3-1/2” premium connection, 9.7±0.3m, maximum OD ≤4.30 inch, Joint
2
hole area of base pipe>10 inch /ft
Premium Screen, 3-1/2” 9.2ppf base pipe, L80-13Cr, 250micrometer filter
10 medium, 3-1/2” premium connection, 20ft/joint, maximum OD ≤4.30 inch, Joint
2
hole area of base pipe>10 inch /ft
Premium Screen, 3-1/2” 9.2ppf base pipe, L80-13Cr material,
11 250micrometer filter medium, 3-1/2” premium connection, 10ft/joint, Joint
maximum OD ≤4.30 inch, hole area of base pipe>10 inch /ft
2

Premium Screen, 3-1/2” 9.2ppf base pipe, L80-13Cr, 120micrometer filter


12 medium, 3-1/2” premium connection, 9.7±0.3m, maximum OD ≤4.30 inch, Joint
2
hole area of base pipe>10 inch /ft
Premium Screen, 3-1/2” 9.2ppf base pipe, L80-13Cr, 120micrometer filter
13 medium, 3-1/2” premium connection, 20ft/joint, maximum OD ≤4.30 inch, Joint
2
hole area of base pipe>10 inch /ft
Premium Screen, 3-1/2” 9.2ppf base pipe, L80-13Cr, 120micrometer filter
14 medium, 3-1/2” premium connection, 10ft/joint, maximum OD ≤4.30 inch, Joint
2
hole area of base pipe>10 inch /ft
Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
15 Joint
9.7±0.3m
16 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 20ft/joint Joint
17 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 12ft/joint Joint
18 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 10ft/joint Joint
19 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 8ft/joint Joint

Page 29 of 34
CNOOC IRAQ LIMITED
20 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 6ft/joint Joint
21 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 3ft/joint Joint
22 Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection, 2ft/joint Joint
Ceramic proppant, 10/20 mesh sand retention accuracy, sand grain
23 MT
roundness ≥0.7, crashing efficiency <10% @5000psi, acid-solubility <7%
Ceramic proppant, 20/40 mesh sand retention accuracy, sand grain
24 MT
roundness ≥0.7, crashing efficiency <10% @5000psi, acid-solubility <7%
2.68”Seal Bore, 2.68” minimum ID, 4.3” maximum OD, 3-1/2” OD 9.2ppf
25 EA
premium connection, L80-13Cr material, H 2 S and CO 2 service
Isolation seal matching with 2.68” Seal Bore, Seal unit OD 2.68”,
26 minimum ID≥1.9”, 3-1/2” OD 9.2ppf premium connection, L80-13Cr EA
material, Temperature Rating ≥300 degree F, Pressure Rating 5000psi
2-3/8” Flush Joint Tubing, Maximum OD :2.375”, Minimum ID ≥1.9”
27 Joint
2-3/8” OD 4.60ppf VAM FJL B X P, L80-13Cr, 9.7±0.3m per joint
2-3/8” Flush Joint Tubing, Maximum OD :2.375”, Minimum ID ≥1.9”
28 Joint
2-3/8” OD 4.60ppf VAM FJL B X P, L80-13Cr, 20ft/joint
2-3/8” Flush Joint Tubing, Maximum OD :2.375”, Minimum ID ≥1.9”
29 Joint
2-3/8” OD 4.60ppf VAM FJL B X P, L80-13Cr, 10ft/joint
30 Lifting Nipple for 2-3/8” flush joint tubing EA
31 Bull nose, 3-1/2” OD 9.2ppf premium connection, L80-13Cr material EA
32 Setting Ball for retrievable packer EA
6.11.2E Water Injection Equipment and Material (Optional)
Check Valve, as temporary plug to set anchors and packers, suitable for
1 6-5/8” OD 28.0ppf liner, with premium connection, 300 degree F EA
temperature rating, 5000psi pressure rating, H 2 S and CO 2 service
Upper Anchor, Suitable for 6-5/8″28 PPF casing, Material:
L80-13Cr,Pressure rating: 5,000 psi, Temperature rating: 302 degree F,
2 EA
Releasing force: 180 kN, Thread: 3-1/2〃 JFE Bear B×P, Max OD:
5.5〃,Min ID: 2.992〃,CO 2 and H 2 S service
Isolation Packer, Suitable for 6-5/8″ 28 PPF casing, Material: L80-13Cr,
Pressure between close layer: 3,600psi, Pressure rating: 5000 psi,
3 Temperature rating: 302 degree F, Thread: 3-1/2〃 JFE Bear B×P, Max EA
OD: 5.5〃, Min ID: 2.992〃, Setting pressure: 2500 psi, Releasing force:
150 kN, CO 2 and H 2 S service
Water Injection Mandrel, Suitable for 6-5/8″28 PPF casing, Material of
mandrel: L80-13Cr, Material of nozzle: ceramic or cobalt-base alloy,
4 Pressure rating: 5,000 psi, Temperature rating: 302 degree F, Flow rate EA
rating: 3,000 m³/d, Thread: 3-1/2〃 JFE Bear B×P, Max OD: 5.3〃, Min
ID: 2.087〃, CO 2 and H 2 S service(Integrated with nozzles, no regulator)
Lower Anchor, Suitable for 6-5/8″28 PPF casing, Material: L80-13Cr,
5 Pressure rating: 5,000 psi, Temperature rating: 302 degree F, Thread: EA
3-1/2〃 JFE Bear B×P, Max OD: 5.5〃, Min ID: 2.992〃, Setting pressure:

Page 30 of 34
CNOOC IRAQ LIMITED
1,500 psi, Releasing force: ≤10 kN, CO 2 and H 2 S service
Anti-erosion X/O, Material of body: L80-13Cr, Inner bush: ceramic or
cobalt-base alloy, Pressure rating: 5,000 psi, Temperature rating: 302
6 EA
degree F, Thread: 4-1/2〃 JFE Bear B x 3-1/2〃JFE Bear Pin, Max OD:
5〃, Min ID: 2.992〃, CO 2 and H 2 S service
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
7 EA
20ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
8 EA
12ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
9 EA
10ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
10 EA
8ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
11 EA
6ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
12 EA
3ft/joint
Spacer Blank Pipe, 3-1/2” OD, 9.2ppf, L80-13Cr, premium connection,
13 EA
2ft/joint
14 Miscellaneous to be listed by Bidder based on Bidder’s Technical Proposal SET
6.11.2F Redress Kits
1 Redress Kit for Check Valve, including O-Ring and/or Shear Pins
2 Redress Kit for Blanking Plug, including O-Ring and/or Shear Pins
Redress Kit for Hydraulic Setting Tool for Bridge Plug, including O-Ring
3
and/or Shear Pins
NOTES:
A. Certificates of Country of Origin, API certificates and third-party inspection certificates shall be
applicable to the sale products exclusive of Redress Kits which is belonging to consumable material.
B. The acceptable Country of Origin for Sale Product shall be USA, West Europe, Canada, and other
origins which are accepted by Missan Oil Company.
C. Purchase Order shall be issued by Company for the said products.
D. The delivery of material shall be within 6 months upon the announced Purchase Order.
E. The price quotation for the sell products shall be DAP in CNOOC Iraw Limited Workbase in Buzurgan
Oilfield

6.12 FISHING SERVICES

6.12.1 Personnel charge


Standby Rate/Day
Description Unit Operation Rate/Day (USD)
(USD)

Fishing Engineer Person

Page 31 of 34
CNOOC IRAQ LIMITED
6.12.2 Fishing tool charge

Operational LIH
NO TOOL DESCRIPTION Unit Charge Charge
(USD/run) (USD)
1 5-1/2"/5-3/4"/8-1/8"Overshot in 6-5/8"/7" /9-5/8"casing EA
5-1/2"/5-3/4"/8-1/8"Overshot Extension Sub used in 6-5/8"/7"
2 EA
/9-5/8"casing
Basket grapple for 5-1/2"/5-3/4"/8-1/8"Overshot used for fishing
3 5-1/2", 4-1/2", 3-1/2", 2-7/8" and 2-3/8"tubing with Mill Control EA
Packer
Spiral grapple for 5-1/2"/5-3/4"/8-1/8"Overshot used for fishing
4 5-1/2", 4-1/2", 3-1/2", 2-7/8" and 2-3/8" tubing with Grapple EA
Control/Type A Packer
Basket type or Spirlal Type Grapple for fishing Permanent
5 EA
Production Packers inside 6-5/8" / 7.0" / 9-5/8" Casing.
Back-off Spear for fishing 5-1/2" / 4-1/2" / 3-1/2" /2-7/8" /2-3/8"
6 EA
tubing in 6-5/8"/7"/9-5/8" casing
Release Spear for fishing 5-1/2" / 4-1/2" / 3-1/2" /2-7/8" /2-3/8" tubing
7 EA
in 6-5/8"/7"/9-5/8" casing
Grapples for Back-off/Release use for fishing 5-1/2" / 4-1/2" / 3-1/2"
8 EA
/2-7/8"/2-3/8" tubing
Release Spear used for fishing Permanent Packers inside 6-5/8" &
9 EA
7" casing
Spear Extension Sub for fishing Permanent Packers in 6-5/8" & 7"
10 EA
casing
Spear Grapples for fishing permanent packers in 6-5/8" & 7"
11 EA
casing
Right-hand Thread Right-hand screw Taper Tap / Right-hand Thread
12 Left-hand screw Taper Tap for fishing tubing and drilling pipe in EA
6-5/8"/7"/9-5/8" casing (fishing range 2.125"-3.25" and 3.125"-4.25")
Right-hand Thread Right-hand screw Box Tap (Die Collar) for fishing
13 tubing and drilling pipe in 6-5/8"/7"/9-5/8"casing (fishing range EA
2.5"-3.5"/3.5"-4.5 ")
Junk Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf) /
14 EA
6-5/8" (28.0ppf) / 7.0" (32.0ppf) / 9-5/8" (47.0-61.1ppf)
Concave Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf)
15 EA
/ 6-5/8" (28.0ppf) / 7.0" (32.0ppf) / 9-5/8" (47.0-61.1ppf)
Pilot Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf) /
16 EA
6-5/8" (28.0ppf) / 7.0" (32.0ppf) / 9-5/8" (47.0-61.1ppf)
Taper Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" (17.0-20.0ppf) /
17 EA
6-5/8" (28.0ppf) / 7.0" (32.0ppf) / 9-5/8" (47.0-61.1ppf)
18 Watermelon Mill for 4-1/2" casing (13.5-15.1ppf) / 5-1/2" EA

Page 32 of 34
CNOOC IRAQ LIMITED
(17.0-20.0ppf) / 6-5/8" (28.0ppf) / 7.0" (32.0ppf) / 9-5/8"
(47.0-61.1ppf)
Impression Block for 4-1/2" casing (13.5-15.1ppf) / 5-1/2"
19 (17.0-20.0ppf) / 6-5/8" (28.0ppf) / 7.0" (32.0ppf) / 9-5/8" EA
(47.0-61.1ppf)
Boot Basket (Fishing Cup) used inside 6-5/8" / 7"casing / 9-5/8"
20 EA
casing
Reverse Circulating Junk Basket used inside 6-5/8"/7"
21 EA
/9-5/8"casing
22 Venturi Type Well Clean-Up tool for 6-5/8" /7"casing/ 9-5/8" casing EA

23 Fishing Magnet used in 4-1/2"/5-1/2"/6-5/8"/7"/9-5/8"casing EA

24 Safety joint used in 5-1/2"/6-5/8"/7"/9-5/8"casing EA

25 4-3/4"/6-1/2" Fishing Jar EA

26 4-3/4"/6-1/2" Flexible Joint for Jar EA

27 4-3/4"/6-1/2" Bumper Sub EA

28 Casing Swage used in 4-1/2"/5-1/2"/6-5/8"/7.0" / 9-5/8"casing EA

29 3-1/8"/4" /5-1/2"/8" Internal Cable Fishing Hook EA

30 3-1/8"/4" /5-1/2"/8" External Cable Fishing Hook EA

31 Casing Scraper for 6-5/8"/7"/9-5/8" casing EA

32 Rotary Casing Scraper for 6-5/8"/7" casing EA

33 5-1/2"/5-3/4"/8-1/8" Burning Shoe EA

34 5-1/2"/5-3/4"/8-1/8" Washover Pipe, 1-3m/joint EA

35 5-1/2"/5-3/4"/8-1/8" Washover Pipe, 8-10m/joint EA

36 5-1/2" Top sub, 310×5-1/2"FJWP EA

37 5-3/4" Top sub, 310×5-3/4"FJWP EA

38 8-1/8" Top sub, 410×8-1/8"FJWP EA

39 Hydraulic internal cutter used to cut 4-1/2" / 5-1/2" EA

40 Mechanical internal cutter used to cut 4-1/2" / 5-1/2" casing EA

41 Crossovers for fishing operation EA

42 Non-Rotating Stabilizer used in 6-5/8"/7"/9-5/8"casing EA


NOTES:
A. All sizes of fishing tools for fishing Company’s upper production string and lower completion string shall
be quoted accordingly.
B. Jet-cutting tool with chemical or explosive for 4-1/2” OD tubing, 3-1/2” OD tubing, 2-7/8” OD tubing and
2-3/8” OD tubing is mandatory.

Page 33 of 34
CNOOC IRAQ LIMITED

6.13 MATERIAL TRANSPORTATION

Item Description Unit Unit Price (USD)


Per Person Per
1 Logistic coordinator
day

END OF SECTION 4

Signature of Tenderer: _______________________


Note 1: In case of discrepancy between unit price and total, the unit price shall prevail.
Note 2: A bid without itemized price required shall be considered as non-responsive.
Note 3: The Tender should be responsible for their accommodation, catering, transportation, security outside
the Oilfield, etc. So the Price Proposal should be inclusive of these items.

Page 34 of 34
CONTRACT NO. CMIT- PRT-10.53-170167

WORKOVER AND STIMULATION OPERATIONS SERVICES


AGREEMENT

BETWEEN

CNOOC IRAQ LIMITED

AND

[______________________________]

Dated as of

_____________, 201___

Dubai, U.A.E
TABLE OF CONTENTS

Page No.

ARTICLE I SERVICES ........................................................................................................................................... 1


1.1 Scope of Services .................................................................................................................................... 1
1.2 Schedule .................................................................................................................................................. 1
1.3 Term ....................................................................................................................................................... 2
ARTICLE II PRICING AND PAYMENT TERMS ............................................................................................... 2
2.1 Pricing ..................................................................................................................................................... 2
2.2 Delay Liquidated Damages ................................................................................................................... 2
2.3 Payment Schedule .................................................................................................................................. 3
2.4 Invoicing ................................................................................................................................................. 3
2.5 Account ................................................................................................................................................... 3
2.6 Retention ................................................................................................................................................ 4
ARTICLE III ADDITIONAL PROVISIONS ......................................................................................................... 4
3.1 Other Company Designations ............................................................................................................... 4
ARTICLE IV MISCELLANEOUS PROVISIONS ................................................................................................ 4
4.1 General Terms and Conditions ............................................................................................................ 4
4.2 Performance Security ............................................................................................................................ 4
4.3 Notice ...................................................................................................................................................... 4
4.4 Governing Law ...................................................................................................................................... 5
4.5 Contract Documents .............................................................................................................................. 5
APPENDIX A GENERAL TERMS AND CONDITIONS ..................................................................................... 1
ARTICLE I DEFINED TERMS .............................................................................................................................. 1
1.1 Defined Terms ........................................................................................................................................ 1
1.2 References and Titles............................................................................................................................. 7
ARTICLE II SCOPE OF SERVICES ..................................................................................................................... 8
2.1 Contractor Items.................................................................................................................................... 8
2.2 Mobilization and Demobilization ......................................................................................................... 8
2.3 Permits .................................................................................................................................................... 8
2.4 Procurement and Imports ..................................................................................................................... 9
2.5 Services Area .......................................................................................................................................... 9
2.6 Services Completion ............................................................................................................................ 10
2.7 Hazardous Substance .......................................................................................................................... 10
ARTICLE III REPRESENTATIONS AND WARRANTIES ............................................................................. 11
3.1 Contractor’s Representations and Warranties ................................................................................. 11
3.2 Company’s Representations and Warranties ................................................................................... 12
ARTICLE IV STANDARD OF PERFORMANCE.............................................................................................. 13
4.1 Standard of Services and Contractor Items ...................................................................................... 13
4.2 Environmental Compliance ................................................................................................................ 13
4.3 Compliance with Applicable Laws and Other Requirements.......................................................... 13
ARTICLE V SAFETY; PROTECTION; RISK OF LOSS .................................................................................. 14
5.1 Safety .................................................................................................................................................... 14
5.2 Security and Protection ....................................................................................................................... 15
5.3 Risk of Loss .......................................................................................................................................... 15
5.4 Notification of Injury or Damage ....................................................................................................... 15
5.5 Presence of Company .......................................................................................................................... 15
ARTICLE VI COMPANY RIGHTS AND OBLIGATIONS............................................................................... 16
6.1 Company Items .................................................................................................................................... 16
6.2 Permits .................................................................................................................................................. 16
6.3 Company’s Representative ................................................................................................................. 16
ARTICLE VII CONTRACTOR’S PERSONNEL AND REPRESENTATIVES .............................................. 16
7.1 Contractor’s Personnel ....................................................................................................................... 16
7.2 Contractor’s Representatives ............................................................................................................. 19
ARTICLE VIII SUBCONTRACTS ....................................................................................................................... 19
8.1 Right to Subcontract ........................................................................................................................... 19
8.2 Subcontractor Warranties .................................................................................................................. 20
8.3 Manufacturer Information ................................................................................................................. 20
8.4 No Relationship with Company .......................................................................................................... 20
8.5 Assignment of Subcontracts................................................................................................................ 20
8.6 Subcontractor Compliance ................................................................................................................. 20
8.7 Liens ...................................................................................................................................................... 20
ARTICLE IX PAYMENTS .................................................................................................................................... 21
9.1 Invoicing ............................................................................................................................................... 21
9.2 Retention .............................................................................................................................................. 21
9.3 Payments of Invoices ........................................................................................................................... 22
9.4 Set-Off................................................................................................................................................... 22
9.5 Social Security Clearance.................................................................................................................... 23
9.6 Error in Payment ................................................................................................................................. 23
9.7 Final Documents .................................................................................................................................. 23
9.8 Taxes ..................................................................................................................................................... 23
9.9 Payment Not Waiver or Acceptance of Services ............................................................................... 25
9.10 Delay Liquidated Damages ................................................................................................................. 25
ARTICLE X INTELLECTUAL PROPERTY ...................................................................................................... 25
10.1 New Intellectual Property ................................................................................................................... 25
10.2 Infringement Claims............................................................................................................................ 25
10.3 Proprietary Information ..................................................................................................................... 26
10.4 Use of Trademarks, Etc ....................................................................................................................... 26
ARTICLE XI CONFIDENTIALITY..................................................................................................................... 26
11.1 Protection of Confidential Information ............................................................................................. 26
11.2 Permitted Disclosures .......................................................................................................................... 26
11.3 Contractor’s Use of Confidential Information .................................................................................. 27
11.4 Survival................................................................................................................................................. 27
11.5 Non-Disclosure of Contract Terms .................................................................................................... 27
11.6 Contractor Information ...................................................................................................................... 27
ARTICLE XII COMPANY DELAYS; SUSPENSION ........................................................................................ 28
12.1 Company Delays .................................................................................................................................. 28
12.2 Contractor Suspension ........................................................................................................................ 28
12.3 Company Suspension .......................................................................................................................... 28
12.4 Services Stoppage ................................................................................................................................ 29
ARTICLE XIII FORCE MAJEURE ..................................................................................................................... 29
13.1 Excused Performance .......................................................................................................................... 29
13.2 Notification ........................................................................................................................................... 29
ARTICLE XIV CHANGE ORDERS ..................................................................................................................... 29
14.1 Changes in Scope ................................................................................................................................. 29
14.2 Equitable Adjustments to Schedule ................................................................................................... 30
14.3 Preparation of Change Orders ........................................................................................................... 30
14.4 Extra Services ...................................................................................................................................... 30
ARTICLE XV ADJUSTMENTS ............................................................................................................................ 30
15.1 Adjustments to Contract Price ........................................................................................................... 30
15.2 Adjustments to Target Schedule ........................................................................................................ 31
ARTICLE XVI INSPECTIONS; DEFECTS ........................................................................................................ 31
16.1 Right to Inspect .................................................................................................................................... 31
16.2 Audit ..................................................................................................................................................... 32
ARTICLE XVII TARGET AND SERVICES SCHEDULES .............................................................................. 32
17.1 Target Schedule ................................................................................................................................... 32
17.2 Services Schedule ................................................................................................................................. 32
17.3 Time is Of the Essence......................................................................................................................... 33
17.4 Meetings................................................................................................................................................ 33
17.5 Progress Reports .................................................................................................................................. 33
ARTICLE XVIII INDEMNIFICATION............................................................................................................... 33
18.1 General Indemnity ............................................................................................................................... 33
18.2 Contractor’s Surface Equipment ....................................................................................................... 34
18.3 Contractor’s In-hole Equipment ........................................................................................................ 34
18.4 Loss of Hole .......................................................................................................................................... 34
18.5 Environmental Indemnities ................................................................................................................ 35
18.6 Intellectual Property Indemnity ......................................................................................................... 35
18.7 Indemnity Against Prohibited Liens .................................................................................................. 36
18.8 Defense of Indemnified Claims ........................................................................................................... 36
18.9 Waiver .................................................................................................................................................. 37
18.10 Attorneys’ Fees .................................................................................................................................... 37
ARTICLE XIX NO CONSEQUENTIAL DAMAGES; LIMITATION OF CLAIMS ...................................... 37
19.1 Exclusion of Consequential Damages ................................................................................................ 37
19.2 Limitation on Initiating Claim ........................................................................................................... 37
ARTICLE XX INSURANCE.................................................................................................................................. 37
20.1 Contractor Required Insurance ......................................................................................................... 37
20.2 Contractor’s General Insurance Requirements ................................................................................ 38
20.3 Liability not Affected by Insurance ................................................................................................... 39
ARTICLE XXI TERMINATION; DEFAULT; REMEDIES.............................................................................. 39
21.1 Termination for Convenience by Company ...................................................................................... 39
21.2 Contractor Default .............................................................................................................................. 40
21.3 Remedies for Contractor Default ....................................................................................................... 40
21.4 Company Default ................................................................................................................................. 41
21.5 Remedies for Company Default ......................................................................................................... 42
21.6 Effect of Termination. ......................................................................................................................... 42
ARTICLE XXII GENERAL PROVISIONS ......................................................................................................... 43
22.1 Assignment ........................................................................................................................................... 43
22.2 Independent Contractor...................................................................................................................... 43
22.3 Certain Practices.................................................................................................................................. 43
22.4 Notices................................................................................................................................................... 45
22.5 Currency Conversion .......................................................................................................................... 45
22.6 Entire Agreement ................................................................................................................................ 45
22.7 Severability ........................................................................................................................................... 45
22.8 Nature of Obligations .......................................................................................................................... 46
22.9 Amendments and Waivers .................................................................................................................. 46
22.10 Dispute Resolution ............................................................................................................................... 46
22.11 Waiver of Immunity ............................................................................................................................ 48
22.12 Counterparts ........................................................................................................................................ 48
22.13 Binding Effect ...................................................................................................................................... 48
22.14 Survival................................................................................................................................................. 48
APPENDIX B SCOPE OF SERVICES ................................................................................................................... 1
APPENDIX C TARGET SCHEDULE .................................................................................................................... 1
APPENDIX D CONTRACT PRICE AND PAYMENT SCHEDULE .................................................................. 1
APPENDIX E FORM OF PERFORMANCE SECURITY ................................................................................... 1
APPENDIX F CONTRACTOR PERMITS ............................................................................................................ 1
APPENDIX G FORM OF SERVICES COMPLETION CERTIFICATE ........................................................... 1
APPENDIX H ITEMS............................................................................................................................................... 1
APPENDIX I COMPANY PERMITS ..................................................................................................................... 1
APPENDIX J CONTRACTOR REQUIRED INSURANCE ................................................................................. 1
APPENDIX K CONTRACTOR ORGANIZATION CHART .............................................................................. 1
APPENDIX L FORM OF LIEN RELEASE ........................................................................................................... 1
APPENDIX M EXTRA SERVICE RATES ............................................................................................................ 1
APPENDIX N HEALTH, SAFETY, SECURITY AND ENVIRONMENTAL REQUIREMENTS .................. 1
APPENDIX O MODEL NOTIFICATION OF MOBILIZATION ...................................................................... 1
WORKOVER AND STIMULATION OPERATIONS SERVICES AGREEMENT

This WORKOVER AND STIMULATION OPERATIONS SERVICES AGREEMENT (this


“Agreement”) is made and entered into as of _______________, 201__ (the “Contract
Date”), between CNOOC Iraq Limited, a company existing under the laws of British Virgin
Islands (“Company”), and [________________________], a _____________
(“Contractor”). Company and Contractor are sometimes referred to in this Agreement as the
“Parties” and individually as a “Party”. Unless otherwise defined, capitalized terms used in
the Agreement shall have the meaning set forth in Appendix A, Section 1.1.

RECITALS

WHEREAS, Company is engaged in the exploration and development of oil and natural gas,
and in activities related thereto;

WHEREAS, Company desires to engage Contractor from time to time to perform certain
well workover and related services as more fully described in Article I of the
Agreement, Appendix A, Article II and Appendix B (the “Services”) in connection with
Company’s activities; and

WHEREAS, Contractor is interested in providing Services to Company in accordance with


this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual promises and
agreements contained herein, and other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as
follows:

ARTICLE I
SERVICES

1.1 Scope of Services

(a) Contractor shall provide all work necessary or appropriate to perform


the Services on the Project Site in Iraq (“Target Jurisdiction”).

(b) “Project Site” means the Missan Oil Fileds, the Republic of Iraq

1.2 Schedule

(a) Contractor shall mobilize the Workover Rigs and associated Rig crews,
tools and materials to the Missan Oil Fields within four (4) months
after receiving Company Notification of Mobilization in the format of
Appendix O.

(b) The “Target Completion Date” is the date required by Company for
each case.

1
(c) Contractor shall perform the Services in accordance with, and subject
to the timing sequences set forth in the Target Schedule, attached
hereto as Appendix C.

1.3 Term

The term of the Agreement shall commence on the Contract Date and continue
to be effective for twenty-four (24) months (the “Contract Period”).
Company shall have the right to extend the Term for Twelve (12) months by at
least a Thirty (30) days prior notice.

ARTICLE II
PRICING AND PAYMENT TERMS

2.1 Pricing

As full consideration for the proper performance of the Services, and subject
to the conditions and limitations set forth in the Agreement, Company shall
pay Contractor the price and rates as specified in Appendix D, subject to
adjustment pursuant to Appendix A, Section 15.1, such adjusted price, shall be
full and final discharge of liability of Company and inclusive of each and
every taxes including but not limited to income taxes, profits taxes, property
taxes, stamp taxes, document taxes, value added taxes, general sales taxes,
sales taxes, excise taxes, surtaxes, surcharges or any other taxes or
governmental charges which any Governmental Authority having jurisdiction
over the Agreement, assess or levy against any member of Contractor and its
Affiliates on account of or resulting from the execution or performance of the
Agreement by Company or Contractor and its Affiliates engaged in
performance and execution of the Agreement. (the “Contract Price”).

2.2 Delay Liquidated Damages

Contractor shall pay Company, if Service Completion is achieved later than


the Target Completion Date, the following amount based on following
formula as liquidated damages (“Delay Liquidated Damages”):

For the Delay of Mobilization, Contractor shall pay the Delay Liquidated
Damages to Company as US $20,000.00 (per day of delay) x Number of
Days of delay.

(a) The Parties confirm that the Liquidated Damages represent a genuine pre-
estimate of Company’s loss.

(b) If Contactor fails to complete the Services within the required time
window following the deadline set out above in Article 1.2 for reasons not
attributable to Company, Company shall have the right to terminate this
Agreement immediately and Contractor, notwithstanding the termination, shall

2
be obliged to pay the aforesaid Liquidated Damages to Company without
delay.

(c) The Contractor’s maximum aggregate liability for Delay Liquidated


Damages hereunder shall not exceed 15% of Contract Price.

2.3 Payment Schedule

Subject to the terms and provisions hereof and for Contractor’s satisfactory
performance of the Services in accordance with the Agreement, Company
shall pay Contractor the Progress Payments as set forth in Appendix D and
Article IX of Appendix A.

2.4 Invoicing

Contractor shall submit to Company for payment a detailed invoice on or


before the last day of each calendar month in which:

(a) Contractor completes the portion of the Services comprising a Payment


Milestone;

(b) any adjustment to the Contract Price occurs; or

(c) Contractor completes any Extra Services.

2.5 Account

All payments by Company to Contractor under the Agreement shall be made in


[U.S. dollars] by wire transfer to the following bank account of Contractor:

Title of Beneficiary’s Bank Account: XXXXXXXXXXXXX


IBAN / Account Number of Beneficiary: XXXXXXXXXXXXX
Name of Beneficiary’s Bank: XXXXXXXXXXXXX
Name of Branch of Beneficiary’s Bank: XXXXXXXXXXXXX
Address of Branch of Beneficiary’s Bank: XXXXXXXXXXXXX
SWIFT/SORTING CODE: XXXXXXXXXXXXX
Name of Intermediary Bank: XXXXXXXXXXXXX
Name of Intermediary Bank Branch: XXXXXXXXXXXXX
Address of Intermediary Bank Branch: XXXXXXXXXXXXX
SWIFT/SORTING CODE: XXXXXXXXXXXXX

,provided that Contractor may specify different bank account details to


Company in writing from time to time; provided, further, that any such change
in bank account details shall be effective only five (5) Business Days’ after
Company has acknowledged receipt thereof.

3
2.6 Retention

The Retention shall be ten percent (10%) of each actual invoice.

ARTICLE III
ADDITIONAL PROVISIONS

3.1 Other Company Designations

“Business Jurisdictions” means the Republic of Iraq and the Emirate of


Dubai.

ARTICLE IV
MISCELLANEOUS PROVISIONS

4.1 General Terms and Conditions

The general terms and conditions set forth in Appendix A shall govern the
Agreement.

4.2 Performance Security

Within thirty (30) days after the Contract Date, Contractor shall provide to
Company bond, issued by an international recognized bank, or any other
financial institution approved by Company at the time of issuance (which
approval shall not be unreasonably withheld), substantially in the form
contained in Appendix E, in the amount of ten percent (10%) of the Contract
Price when initially issued (with the amount of the Performance Security to be
adjusted thereafter to the then applicable Contract Price each time adjustments
to the Contract Price to guarantee the performance of Contractor’s obligations
hereunder (the “Performance Security”). The Performance Security shall
take effect from the date of issuance and expire no earlier than twenty-seven
(27) months from the date of issuance. All the bank guarantees shall be sent by
Swift Message by the authorized bank of the Supplier to authorized bank of
the Company as specified in the contract. Performance Security shall be
extended if any extension will be made for the Contract period, the Bond
extension period will be the same extension to Contract period.

4.3 Notice

All notices and other communications hereunder shall be in writing and shall
be deemed given if delivered personally, faxed or mailed by registered or
certified mail (return receipt requested), or sent by internationally recognized
overnight courier to the Parties at the following addresses or facsimile
numbers (or at such other address or facsimile number for a Party as shall be
specified by like notice):

If to Company, to

[INSERT]

4
with copies to

[INSERT]

If to Contractor, to

[INSERT]

with copies to

[INSERT]

4.4 Governing Law

The Agreement shall be construed in accordance with and governed by the


laws of England (without reference to its rules as to conflicts of law).

4.5 Contract Documents

(a) The following documents shall be incorporated herein by reference and


shall constitute part of the Agreement:

Appendix B SCOPE OF SERVICES


Appendix C TARGET SCHEDULE
Appendix D CONTRACT PRICE AND PAYMENT SCHEDULE
Appendix E FORM OF PERFORMANCE SECURITY
Appendix F CONTRACTOR PERMITS
Appendix G FORM OF SERVICES COMPLETION
CERTIFICATE
Appendix H ITEMS
Appendix I COMPANY PERMITS
Appendix J CONTRACTOR REQUIRED INSURANCE
Appendix K CONTRACTOR ORGANIZATION CHART
Appendix L FORM OF LIEN RELEASE
Appendix M EXTRA SERVICE RATES
Appendix N HEALTH, SAFETY, SECURITY AND
ENVIRONMENTAL REQUIREMENTS
Appendix O MODEL NOTIFICATION OF MOBILIZATION

(b) Should any conflict exist between or among documents forming the
Agreement, the order of priority in which the conflicting provisions
shall govern, one over the other, is as follows:

(i) This document;

(ii) The general terms and conditions set forth in Appendix A;

5
(iii) Any other Appendices;

(iv) All other certificates, documents and instruments delivered


under the Agreement.

Each Party acknowledges, however, that all of the parts of the


Agreement are cumulative, and the fact that one or more provision
requires more work or set higher standards of performance than
another provision shall not be deemed a conflict.

[signature page follows]

6
IN WITNESS WHEREOF, each Party has caused its duly authorized representative to sign
the Agreement as of the date first written above.

CNOOC Iraq Limited, as Company

By: ______________________________
Name:
Title:

[Insert name of party in bold], as Contractor

By: ______________________________
Name:
Title:

Signature Page to Workover and Stimulation Operations Services Agreement


CMIT- PRT-10.53-170167
APPENDIX A
GENERAL TERMS AND CONDITIONS

ARTICLE I
DEFINED TERMS

1.1 Defined Terms

The following terms shall have the following meanings in the Agreement:

“Affiliate” means, with respect to any Person, any other Person controlling,
controlled by or under common control with such Person. For purposes of this
definition and this Agreement, the term “control” (and correlative terms) means the
power, whether by contract, equity ownership or otherwise, to direct the policies or
management of a Person.

“Agreement” has the meaning set forth in the preamble to the Agreement.

“Applicable Law” means all laws (including any rules of the common law and
Environmental Laws), statutes, rules, regulations, ordinances, subsidiary legislation,
codes, judgments, orders, decrees, injunctions, and requirements of Governmental
Authorities with jurisdiction or authority over the Parties, or the performance of the
Services, including Permits now or hereafter issued under any of the foregoing.

“Business Day” means any day other than (a) a Saturday or Sunday or (b) a day on
which commercial banks in any Business Jurisdictions are authorized or required to
be closed.

“Business Jurisdictions” has the meaning set forth in Section 3.1 of the Agreement.

“Change Order” means a document issued by Company pursuant to Article XIV,


setting forth adjustment to the scope of Services.

“Claim” means any judgment, claim, action, cause of action, demand, lawsuit,
proceeding, grievance, governmental investigation or audit, loss, assessment, fine,
penalty, administrative order, arbitral award, obligation, cost (including attorneys’
fees), expense, lien, liability or damage (whether direct, indirect, actual, consequential
or punitive).

“Commencement Date” has the meaning set forth in Section 1.2(a) of the
Agreement.

“Company” has the meaning set forth in the preamble to the Agreement.

“Company Default” has the meaning set forth in Appendix A, Section 21.4.

“Company Delay” is defined in Appendix A, Section 12.1(a).

“Company Indemnitee” is defined in Appendix A, Section 18.1(a).

“Company Insureds” is defined in Appendix A, Section 20.2(b).

Appendix A- 1
“Company Items” means with respect to the provision of the Services, the
equipment, materials and items listed in Appendix H to be provided at the expense of
Company; provided however, Company may, by written notice at any time and from
time to time, revise the designation of Company Items.

“Company Permits” mean the Permits to be obtained by Company as identified


in Appendix I.

“Company Suspension” is defined in Appendix A, Section 12.3(a).

“Company’s Representative” is defined in Appendix A, Section 6.3.

“Confidential Information” is defined in Appendix A, Section 11.1(a).

“Conforming” is defined in Appendix A, Section 4.1(b).

“Consumables” means all supplies, water, oil, electricity and other property
consumed in performing the Services.

“Contract Date” is defined in the preamble to the Agreement.

“Contract Price” has the meaning set forth in Section 2.1 of the Agreement.

“Contractor” has the meaning set forth in the preamble to the Agreement.

“Contractor Default” is defined in Appendix A, Section 21.2.

“Contractor Indemnitee” is defined in Appendix A, Section 18.1(b).

“Contractor Items” means with respect to the provision of the Services, the
workover and other related equipment, spare parts, materials, expendables and other
supplies related thereto to be provided by Contractor.

“Contractor Liens” means any claim, lien, charge or encumbrance on the Project
Sites or any part thereof or interest therein in favor of Contractor, any Subcontractor
or any of their respective employees, laborers, materialmen or other suppliers of
goods or services.

“Contractor Permits” is defined in Appendix A, Section 2.3.

“Contractor Suspension” is defined in Appendix A, Section 12.2(a).

“Contractor’s Representatives” is defined in Appendix A, Section 7.2(a).

“Defect” and “Defective” are defined in Appendix A, Section 4.1(b).

“Delay Liquidated Damages” is defined in Section 2.2 of the Agreement.

“Demobilization” means the removal from the Project Site on Services Completion
or at a mutually agreed later date of all of Contractor Items, Personnel and
Consumables and where applicable, repatriation of such Contractor Items, Personnel
and Consumables to their respective points of origin in accordance with Contractor’s
policies as of the Contract Date.

Appendix A- 2
“Dollar” and “$” mean the currency of the United States of America.

“Environmental Law” means any Applicable Law relating to: (a) the conservation,
improvement, protection, pollution, contamination or remediation of the environment;
(b) any Release, including investigation and cleanup of such Release or threatened
Release; or (c) the storage, treatment, disposal, recycling or transportation of any
Hazardous Substances, including Permits now or hereafter issued under any of the
foregoing.

“Extra Service” has the meaning set forth in Appendix A, Section 14.4.

“Final Release” is defined in Appendix A, Section 9.7.

“Force Majeure” means any event that: (a) renders a Party unable to comply with its
obligations under this Agreement; (b) is beyond the reasonable control of the affected
Party; (c) does not result from the fault, negligence or intentional act of the affected
Party or such Party’s failure to comply with Applicable Law or the Standard of a
Prudent Contractor; and (d) could not have been avoided by the affected Party
through the exercise of proper diligence including the expenditure of reasonable
monies and/or taking reasonable precautionary measures, including (to the extent that
such events satisfy the foregoing criteria), the following:
(i) acts of God or the public enemy;

(ii) expropriation or confiscation of facilities;

(iii) war, terrorism, rebellion, sabotage or riot;

(iv) fires, explosions, hurricanes, tornados, floods, microbursts or other


natural catastrophes;

(v) actions or inaction of Governmental Authorities that render(s) illegal


performance required in connection with the Services;

(vi) national labor strikes;

(vii) a change in any Applicable Law (other than one affecting only a tax
payable by Contractor or any other cost of Contractor’s performance
hereunder) that takes place after the date of the Agreement; and

(viii) injunctions issued by Governmental Authorities;

provided, however, Force Majeure shall not include:


(A) lack of finances;

(B) strikes or labor disturbances limited to a single employer


performing any of the Services, unless, as a result of any such strike or
labor disturbance, there is no other Person capable and reasonably
available to Contractor to perform such Services;

(C) shortages or price fluctuations with respect to Contractor Items;

Appendix A- 3
(D) late delivery of Contractor Items, except to the extent caused by
an event that would otherwise constitute a Force Majeure;

(E) economic hardship;

(F) shortages of manpower, except to the extent caused by an event


that would otherwise constitute a Force Majeure;

(G) delay or failure to perform of a Subcontractor, except to the


extent caused by an event that would otherwise constitute a Force
Majeure;

(H) machinery or equipment breakdown, except to the extent


caused by an event that would otherwise constitute a Force Majeure; or

(I) unavailability at the Project Sites of necessary water and other


utilities, except to the extent caused by an event that would otherwise
constitute a Force Majeure.

“General Representative” means any director, officer, employee, auditor, counsel,


financial and other advisors and other representatives and Affiliates of either Party.

“Governmental Authority” means any government and any political, judicial,


administrative, executive or legislative subdivision thereof, including (a) any national,
state, provincial, county, municipal, local or other governmental body, authority or
agency, and (b) any governmental, regulatory, administrative, executive, and judicial
departments, courts, commissions, boards, bureaus, ministries, agencies or other
instrumentalities exercising any administrative, regulatory, executive, judicial,
legislative, police, arbitral or taxing authority or power having authority over any
Party, any Subcontractor or any officer or other official representative of any of the
foregoing Persons.

“Hazardous Substance” means any pollutant, contaminant, constituent, chemical,


mixture, raw material, intermediate product, finished product or by-product,
hydrocarbons or any fraction thereof, or industrial, solid, toxic, radioactive, infectious,
disease-causing or hazardous substance, material, waste or agent, including, without
limitation, all substances, materials or wastes which are identified or regulated under
any Environmental Law, or which may threaten life, health or property or adversely
affect the environment.

“Indemnitee” means a Company Indemnitee or a Contractor Indemnitee, as


applicable.

“Interest Rate” is as set forth in Section 3.1 of the Agreement.

“Items” means Company Items and Contractor Items, in the aggregate, which are
specified in Appendix H.

“Key Milestones” is defined in Appendix A, Section 17.1(a).

“Key Personnel” means the individuals designated by Contractor and approved by


Company to fill the staffing positions identified on Appendix K as the key positions.

Appendix A- 4
“LCIA Rules” is defined in Appendix A, Section 22.10(c).

“Legal Dispute” means any dispute, controversy or claim, of any and every kind or
type, whether based on contract, tort, statute, regulations, or otherwise, arising out of,
connected with, or relating in any way to the Agreement, the relationship of the
Parties, the obligations of the Parties or the operations carried out under the
Agreement, including any dispute as to the existence, validity, construction,
interpretation, negotiation, performance, non-performance, breach, termination, or
enforceability of the Agreement, provided a Legal Dispute shall not include any
matter referable to an accounting firm for determination pursuant to the Agreement.

“Lien” means any lien, pledge, security interest, claim, mortgage, deed of trust, lease,
option, right of first refusal, easement, covenant, condition, restriction or servitude,
transfer restriction under any agreement (other than this Agreement), encumbrance or
any other restriction, encumbrance or limitation whatsoever.

“Mobilization” means the arrival at the Project Site of all of Contractor Items,
Consumables and Personnel necessary for Contractor to carry out the Services.

“Party” or “Parties” has this meaning set forth in the preamble to the Agreement.

“Party Group” includes employees, officers, shareholders, representatives/agents,


subsidiaries and affiliates of the company.

“Payment Milestones” means the milestones designated as such in the Payment


Schedule.

“Payment Schedule” means Appendix D.

“Performance Security” is defined in Section 4.2 of the Agreement.

“Permits” means any permit, license, approval, consent, ruling, authorization,


certification, exemption, notification or registration by or with a Governmental
Authority or third parties in connection with the Services.

“Person” means any individual, corporation, partnership, joint venture, association,


trust, unincorporated organization or government or any agency or political
subdivision thereof.

“Personnel” is defined in Appendix A, Section 7.1(a).

“Principal Representatives” means the individuals designated by Company as


Company’s Representative under Appendix A, Section 6.3 and by Contractor as
Contractor’s Representatives under Appendix A, Section 7.2(a) as the persons who
have full authority to act on behalf of the designating Party as to all aspects of the
Agreement and the Services.

“Progress Payment” means the portion of the Contract Price Company is obligated
to pay Contractor for Contractor’s proper and satisfactory completion of the Services
comprising a Payment Milestone in accordance with the Agreement.

Appendix A- 5
“Prohibited Lien” means any Contractor Lien other than a Contractor Lien based on
Company’s continuing failure to pay any amount claimed by Contractor to be owed
pursuant to this Agreement and not disputed in good faith by Company.

“Project Sites” means the location of any Services to be carried out by Contractor
and in relation to which Contractor carries out the Services pursuant to this
Agreement.

“Proprietary Information” has the meaning set forth in Appendix A, Section 10.3.

“Release” means any spill, discharge, leak, emission, injection, escape, dumping,
leaching, dispersal, emanation, migration or release of any Hazardous Substance into
the environment, including the abandonment or discard of barrels, containers, tanks or
other receptacles containing or previously containing any Hazardous Substance.

“Replacement Contractor” means any Person other than Contractor retained by


Company to perform some or all of the Services following Contractor’s failure to
perform such Services.

“Retention” means the percentage set forth in Section 2.6 of the Agreement.

“Retention Amount” has the meaning set forth in Appendix A, Section 9.2(a).

“Services” has the meaning set forth in the recitals.

“Services Completion” shall be deemed to have occurred with respect to the Services
upon the receipt and acceptance, in writing, by Company of the Services Completion
Certificate certifying each of the following to be true and correct:

(a) all Services have been fully and completely performed in accordance with the
Agreement, including Demobilization;

(b) any Delay Liquidated Damages have been paid;

(c) Contractor shall have provided Company all documentation required by the
scope of Services;

(d) Contractor shall have provided the Final Release; and

(e) no Contractor Default shall have occurred and be continuing.

“Services Completion Certificate” is defined in Appendix A, Section 2.6.

“Services Completion Date” means the date the accepted Services Completion
Certificate is received by Company.

“Services Schedule” is defined in Appendix A, Section 17.2(a).

“Standard of a Prudent Contractor” means, in relation to Contractor, a Person


seeking in good faith to perform its contractual obligations and, in doing so and in the
general conduct of its undertaking, exercising that degree of skill, diligence, prudence
and foresight expected from a skilled and experienced international well workover

Appendix A- 6
contractor engaged in the same type of undertaking in similar circumstances or
conditions in compliance with the Applicable Law and, where applicable, at least with
the standards specified in ANSI/API Specification Q1 (Specifications for Quality
Programs for the Petroleum, Petrochemical and Natural Gas Industry) and any
amendments, addenda or revisions thereto.

“Subcontract” means any contract, agreement, purchase order or obligation between


Contractor and any Subcontractor.

“Subcontractor” means any Person retained by Contractor to supply materials or


services in connection with the Services.

“Suspension” means a Company Suspension or a Contractor Suspension, as


applicable.

“Target Completion Date” has the meaning set forth in Section 1.2(b) of the
Agreement.

“Target Jurisdiction” has the meaning set forth in Section 1.1 of the Agreement.

“Target Schedule” means the schedule for the performance of the Services as set
forth in Appendix C, which may be adjusted only pursuant to Appendix A,
Section 15.2.

“Taxes” means any tax and similar governmental charge, impost, levy, fee or
assessment, however denominated (including income tax, business asset tax, franchise
tax, net worth tax, capital tax, estimated tax, withholding tax, use tax, gross or net
receipt tax, sales tax, transfer tax or fee, excise tax, real and personal property tax, ad
valorem tax, value added tax, payroll related tax, employment tax, unemployment
insurance, social security tax, minimum tax, and import tax and other obligations of
the same or a similar nature), together with any related liabilities, penalties, fines,
additions to tax or interest, imposed at the national, state or municipal level, including
monetary corrections.

“Unrestricted Information” means any information disclosed by one Party to the


other Party that: (a) is or becomes part of the public domain without fault of the
receiving Party; (b) was received by the receiving Party from a Person under no
obligation to the disclosing Party with respect to maintaining the confidentiality
thereof; or (c) was already in the receiving Party’s possession and not subject to
confidentiality restrictions at the time the information was made available by the
disclosing Party.

1.2 References and Titles

(a) All references in the Agreement to Appendices, Articles, Sections,


subsections, and other subdivisions refer to the corresponding
Appendices, Articles, Sections, subsections, and other subdivisions of
the Agreement and all of the Appendices are incorporated into and
made a part of the Agreement, unless in each case expressly provided
otherwise.

Appendix A- 7
(b) Titles appearing at the beginning of any Articles, Sections, subsections,
or other subdivisions of the Agreement are for convenience only, do
not constitute any part of such Articles, Sections, subsections or other
subdivisions, and shall be disregarded in construing the language
contained therein.

(c) The words “the Agreement,” “herein,” “hereby,” “hereunder,” “and


“hereof,” and words of similar import, refer to the Agreement as a
whole and not to any particular subdivision unless expressly so limited.
The words “this Section,” “this subsection,” and words of similar
import, refer only to the Sections or subsections hereof in which such
words occur.

(d) The word “or” is not exclusive, and the word “including” (in its
various forms) shall mean including (in its various forms) without
limiting the generality of the description preceding such term.

(e) Pronouns in masculine, feminine, or neuter genders shall be construed


to state and include any other gender.

(f) Words, terms, and titles (including terms defined herein) in the
singular form shall be construed to include the plural and vice versa,
unless the context otherwise expressly requires.

(g) Unless the context otherwise requires, all defined terms contained
herein shall include the singular and plural and the conjunctive and
disjunctive forms of such defined terms.

ARTICLE II
SCOPE OF SERVICES

2.1 Contractor Items

Contractor shall furnish all Contractor Items which are required to complete
the proper and timely execution of the Services. Such Contractor Items shall
comply with the appropriate industry standards.

2.2 Mobilization and Demobilization

Contractor shall be responsible for the Mobilization of Contractor Items,


Personnel and Consumables to the Project Site no later than the date specified
in the scope of Services or such later date as may be agreed by Company in
writing and shall also be responsible for Demobilization.

2.3 Permits

Contractor shall, at its sole cost, risk and expense, provide all notices, pay all
fees, and obtain each of the Permits for the performance of the Services as set
forth in Appendix F and any other Permits related to the Services other than
Company Permits, and any completion certificates required by Applicable
Law (collectively, the “Contractor Permits”) and shall cooperate with and
reasonably assist Company (including, but not limited to, providing

Appendix A- 8
documents and information reasonably requested by Company) to obtain the
Company Permits. Upon request of Company, Contractor shall provide to
Company copies of each Contractor Permit obtained by Contractor.

If import license is required by any Governmental Authority for the


Equipment / Materials, the import license shall be obtained by the Supplier at
its own cost/expense and risk. Company may but shall not be obligated to
provide reasonable necessary assistance to Contractor for obtaining such
import license.

Contractor hereby acknowledges that pursuant to Iraqi laws, Iraqi


government’s rules and regulations and the requirement of Technical Service
Contract for the Missan Oil Fields dated May 17, 2010 entered into by and
between Company and other contracting parties, it is responsible for
completing the relevant corporate and trade registrations (in the form of
establishing a legal entity or otherwise) and obtaining all required licences,
permits and consents (including without limitation security clearance) in a
timely manner at its own costs and risk, and shall indemnify and hold
Company harmless against any loss, damages, penalties, claims, liabilities,
costs and/or expenses Company may suffer arising from or in connection with
any failure by Contractor to complete such registration or obtain such licences,
permits or consents.

2.4 Procurement and Imports

Contractor shall be solely responsible for the procurement (including the


importation, if necessary) of all Consumables and Contractor Items, including
placement of purchase orders, inspections at suppliers’ facilities, importation
through any applicable customs regimes and transportation to the Project Sites
in compliance with the Target Schedule and including without limitation
payment of all Taxes related thereto.

2.5 Services Area

(a) Except as otherwise provided herein, if the use of any land other than
the Project Site is required for the performance of the Services
(including any access roads and any areas for lay-down, storage,
assembly, parking, camp or other purposes), then the use of such land
shall be procured by Contractor at its sole cost, risk and expense.
Contractor shall at its sole cost, risk and expense (a) obtain any Permit
or private party consent necessary to occupy and utilize such land,
(b) occupy and utilize such land in accordance with all Applicable
Law, (c) use its reasonable commercial efforts to prevent any damage
to such land and minimize any damage to vegetation on such land and
(d) compensate any Person having an interest in such land for any
damage caused thereto and keep and leave such land in a clean and
orderly condition, and perform any remediation required by Applicable
Law.

(b) Contractor shall make arrangements (including the construction of all


necessary access roads, bridges, drainage, etc.) in respect of the road

Appendix A- 9
and transportation conditions prevailing in the Target Jurisdiction and
the Project Site, which shall allow the Services to be carried out in
accordance with good and prudent practices as are generally followed
by the international petroleum industry. Contractor shall maintain each
such access road, bridge, drainage, etc. thereto in a safe and usable
condition during the term of the Agreement.

(c) If Contractor fails to satisfy the requirements set out in Appendix A,


Sections 2.5(a) and 2.5(b) within fourteen (14) days following
notification by Company of such failure, Company may, in accordance
with the requirements of Applicable Law, take such remedial action as
is required to progress the Services. All costs which result from such
remedial action shall be at Contractor’s sole expense and without
prejudice to any other rights which Contractor has under this
Agreement.

2.6 Services Completion

Contractor shall deliver to Company a certificate of services completion (the


“Services Completion Certificate”) substantially in the form set forth
in Appendix G when it believes it has achieved Services Completion. No later
than fourteen (14) days after Company’s receipt of a such notice, Company
shall deliver to Contractor written notice that either: (a) Company accepts the
Services Completion Certificate; or (b) Contractor has not achieved Services
Completion, which notice shall set forth in reasonable detail the basis of
Company’s determination. In the event that Company notifies Contractor that
Services Completion has not been achieved, Contractor shall diligently
continue performing the Services until Services Completion is achieved.

2.7 Hazardous Substance

(a) Upon the discovery of any Hazardous Substances existing on or under


the Project Sites as of the Contract Date, or of any article of value or
antiquity or of archaeological or geotechnical interest, Contractor shall:

(i) promptly cease providing Services in the affected area and


direct its workers and Subcontractors not to remove or further
disturb the material or item;

(ii) promptly notify Company of such discovery;

(iii) use all reasonable efforts to mitigate the effects of any such
discovery on the Project Sites, any property or Person, and the
performance of the Services; and

(iv) follow any and all directions of Company or its representatives


with respect to such discoveries.

(b) Contractor shall not under any circumstances be required pursuant


to Appendix A, Section 2.7(a) to remediate any existing Hazardous
Substances. As Contractor’s sole remedy, Contractor shall be entitled

Appendix A- 10
in accordance with Appendix A, Article XII to a reasonable extension
to the Target Completion Date in respect of any delay suffered by
reason of such discovery or Company’s directions with respect to such
discovery, other than as a result of Contractor’s breach of its
obligations under the Agreement. Any item of value or archaeological
or geotechnical interest shall, as between Company and Contractor, be
deemed the property of Company.

(c) Contractor assumes the risk with respect to existing geotechnical


conditions and underground man-made obstructions, and Contractor
shall not be entitled to an adjustment in the Contract Price or Target
Completion Date or other provision of the Agreement for any
increment costs or delay caused by such geotechnical conditions.

ARTICLE III
REPRESENTATIONS AND WARRANTIES

3.1 Contractor’s Representations and Warranties

Contractor represents to Company as follows:

(a) Contractor is duly incorporated, organized or formed (as applicable),


validly existing and in good standing under the law of the jurisdiction
of its incorporation, organization or formation. Contractor has full
power and authority to own its property and to carry on its business as
now conducted.

(b) Contractor has full power and authority to execute the Agreement and
to carry out all its obligations under the Agreement. Its execution and
performance of the Agreement and the consummation of the
transactions contemplated by the Agreement have been duly authorized
by all requisite corporate action on its part. The Agreement constitutes
a valid and legally binding obligation of Contractor, enforceable
against it in accordance with its terms, except as enforcement may be
limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other similar laws now or hereafter in effect relating
to creditors’ rights generally. Contractor’s representative executing the
Agreement has sufficient authority to sign the Agreement in
Contractor’s name and on Contractor’s behalf, and such authority has
not been limited or revoked.

(c) Contractor’s execution and performance of the Agreement and the


transactions contemplated hereby do not constitute a breach of any
term or provision of, or a default under, (i) any contract or agreement
to which it or any of its Affiliates is a party or by which it or any of its
Affiliates or its or their property is bound, (ii) its organizational
documents or (iii) any Applicable Law.

(d) There is no legal proceeding pending or, to its knowledge, threatened


against Contractor that could adversely affect the validity of the

Appendix A- 11
Agreement or the ability of Contractor to perform its obligations
hereunder.

(e) Contractor has reviewed the Agreement and has and will be at all times
have (or, relying on the services of Subcontractors, will be able to
obtain and maintain for the term of the Agreement) the requisite
expertise, professional qualifications, licenses, registrations, skills,
Personnel, technology, experience, technical and financial resources to
perform the Services in accordance with the Agreement.

(f) None of the Services or Contractor Items, or their sale or use by


Contractor or Company, or the provision by Contractor of Services
hereunder, will infringe any patents or any copyrights, trademark or
proprietary information rights of others.

3.2 Company’s Representations and Warranties

Company represents to Contractor as follows:

(a) Company is duly incorporated, organized or formed (as applicable),


validly existing and in good standing under the law of the jurisdiction
of its incorporation, organization or formation. Company has full
power and authority to own its property and to carry on its business as
now conducted.

(b) Company has full power and authority to execute the Agreement and
to carry out all its obligations under the Agreement. Its execution and
performance of the Agreement and the consummation of the
transactions contemplated by the Agreement have been duly authorized
by all requisite corporate action on its part. The Agreement constitutes
a valid and legally binding obligation of Company, enforceable against
it in accordance with its terms, except as enforcement may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, and
other similar laws now or hereafter in effect relating to creditors’ rights
generally. Company’s representative executing the Agreement has
sufficient authority to sign the Agreement in Company’s name and on
Company’s behalf, and such authority has not been limited or revoked.

(c) Company’s execution and performance of the Agreement and the


transactions contemplated hereby do not constitute a breach of any
term or provision of, or a default under, (i) any contract or agreement
to which it or any of its Affiliates is a party or by which it or any of its
Affiliates or its or their property is bound, (ii) its organizational
documents or (iii) any Applicable Law.

(d) There is no legal proceeding pending or, to its knowledge, threatened


against Company that could adversely affect the validity of the
Agreement or the ability of Company to perform its obligations
hereunder.

Appendix A- 12
ARTICLE IV
STANDARD OF PERFORMANCE

4.1 Standard of Services and Contractor Items

(a) Contractor represents and warrants that all Services performed


hereunder, including all Contractor Items provided hereunder, are
performed or are otherwise in accordance with the Standard of a
Prudent Contractor, the scope of Services and all other requirements
and provisions of this Agreement, and Applicable Law.

(b) Any Services or Contractor Items that fully satisfy the requirements
and standards set forth in Appendix A, Section 4.1(a) are referred to
herein as “Conforming” (and any Services or Contractor Items that
fail to satisfy any such requirements or standards are referred to herein
as “Defective”; and the condition causing such Services or Contractor
Items to be Defective is referred to herein as a “Defect”).

(c) Contractor shall, at its sole cost and expense, promptly correct any part
of the Services that is Defective, regardless of the stage of its
completion or the time or place of discovery of such errors and
regardless of whether Company has previously accepted it through
mistake, inadvertence, oversight or otherwise.

4.2 Environmental Compliance

(a) Contractor shall perform all Services in accordance with any


Environmental Law applicable to the Services and in compliance with
all provisions of the Agreement regarding the environment.

(b) Company shall have the right (but not the obligation) to require
Contractor to stop any portion of the Services that are performed in
violation of Appendix A, Section 4.2(a).

(c) Contractor shall report to Company’s Representative, as soon as


reasonably possible, but in no event later than twenty-four (24) hours
after having knowledge of any material violation of Contractor’s
obligations under Appendix A, Section 4.2(a).

(d) Contractor shall at its sole cost, risk and expense remediate any release
of any substance or other event that occurred as a result of Contractor’s
violation of its obligations under Appendix A, Section 4.2(a).

4.3 Compliance with Applicable Laws and Other Requirements

(a) Contractor represents, warrants and covenants that the Services shall
comply in all respects with all Applicable Laws.

(b) Contractor shall immediately notify Company of, and forward to


Company copies of, any notices received by Contractor from any
Governmental Authority regarding any material violation, suspected
material violation thereof or investigation with respect to a suspected

Appendix A- 13
material violation of any Applicable Law with respect to the
performance of the Services (or not relating to the Services if the
existence of such violation could (i) adversely affect the ability of
Contractor or any Subcontractor to obtain or maintain any Permit; (ii)
otherwise adversely affect the Services; or (iii) adversely affect
Company).

(c) Contractor shall comply with all Permits and all agreements relating to
the Services, including all restoration or cleanup upon completion of
the Services required by the Agreement.

ARTICLE V
SAFETY; PROTECTION; RISK OF LOSS

5.1 Safety

(a) Contractor and Company both recognize and agree that safety is of
paramount importance in the performance of the Services and that
Contractor is fully and solely responsible for ensuring that the Services
is performed in a safe manner.

(b) Contractor shall establish and maintain a safety program, and shall
submit such program to Company for review and comment no less
than ten (10) days prior to the Commencement Date. Contractor shall,
and shall cause its employees, agents and Subcontractors (and their
respective employees and agents) to, comply with such safety program
and any other reasonable safety procedures in performing the Services.

(c) Should Company (acting through Company’s Representative or


otherwise) at any time observe Contractor performing the Services or
any portion thereof in an unsafe manner or in a manner that may, if
continued, become an unsafe manner or otherwise not in accordance
with the safety requirements of the Agreement, Company shall have
the right, but not the obligation, to require Contractor to stop such
portion of the Services (at Contractor’s sole cost, risk and expense),
until such time as the manner of performing the Services has been
corrected to comply with the requirements of the Agreement.

(d) In the event of any emergency endangering life or property, Contractor


shall take such action as may be necessary to prevent, avoid or mitigate
injury, damage or loss and shall promptly notify Company of any such
emergency and the actions taken by Contractor. If Contractor fails to
take such action, Company without prior notice to Contractor may (but
is not obligated to) take reasonable precautions to prevent, avoid, or
mitigate injury, damage or loss, but the taking of such action by
Company or Company’s failure to do so shall not limit or affect
Contractor’s obligations under this Appendix A, Section 5.1(d).
Contractor shall reimburse Company for the costs incurred by
Company in taking such precautions.

Appendix A- 14
(e) Contractor shall, and ensure that its servants, agents and subcontractors
shall observe all Company’s rules, regulations, guides and
requirements in relation to health, environment protection and safety as
specified in APPENDIX N Health, Safety, Security and
Environmental Requirements or as may be notified to the Contractor
from time to time.

5.2 Security and Protection

(a) Until Services Completion, Contractor shall continuously maintain the


physical security for all Consumables and Items in its custody and
control, regardless of title thereto, at its sole cost and expense.

(b) Contractor shall exercise commercially reasonable efforts to protect its


employees, Subcontractors, agents, representatives and their respective
employees, and others in the vicinity of the Services, from injury or
loss arising in connection with the Agreement or the Services, in
accordance with the Standard of a Prudent Contractor and the scope of
Services.

5.3 Risk of Loss

(a) Contractor shall be responsible for the care, custody and control of the
Services, all Contractor Items and all Consumables and shall assume
all risk of any physical loss or damage thereto or destruction thereof
until the Services Completion Date.

(b) Company shall bear the risk of physical damage or loss to any
Company Items until such time as such materials are delivered to
Contractor for performing the Services, from and after which time risk
of physical damage or loss thereto will be borne by Contractor in
accordance with this Appendix A, Section 5.3.

5.4 Notification of Injury or Damage

Contractor shall promptly notify Company of any (a) injury to, or death of,
persons or (b) alleged or actual material damage to property arising from or
related to the Services or any actual or alleged criminal conduct by any of
Contractor’s agents or employees, the agents or employees of any
Subcontractor, or of any other Person associated with the Services.

5.5 Presence of Company

(a) Contractor acknowledges that during the course of the Services,


Company may have its inspectors, employees, agents and
representatives at the Project Sites. Such Personnel shall not be under
the control or supervision of Contractor.

(b) Contractor, at its sole cost, risk and expense, shall provide
accommodations to Company’s Personnel as provided in the scope of
Services. Contractor shall provide, subject to availability, reasonable
accommodation to such other of Company’s Personnel, at Company’s

Appendix A- 15
sole cost, risk and expense, as Company shall reasonably request from
time to time at each Project Site where the Services are conducted or
are to be conducted.

ARTICLE VI
COMPANY RIGHTS AND OBLIGATIONS

6.1 Company Items

(a) Company shall cause all Company Items to be delivered to the Project
Site in accordance with the Services Schedule.

(b) Company shall provide Contractor with material safety data sheets for
all Company Items.

6.2 Permits

Company shall be responsible for obtaining the Company Permits listed


on Appendix I by the date set forth opposite such Company Permit (or if no
date is set forth, then prior to the date such Company Permit is required
pursuant to the then current Services Schedule) and maintaining such Permits
in full force and effect as necessary for the completion of the Services.

6.3 Company’s Representative

Company shall designate in writing to Contractor one of its officers,


employees or representatives as Company’s representative as to the
Agreement (the “Company’s Representative”), who shall have full authority
to act on behalf of Company with respect to entering into Change Orders and
with respect to all other aspects of the Agreement and the Services. Company
shall also designate in writing to Contractor at least one (1) of its officers,
employees or representatives as substitute for the Company’s Representative
in the event the person designated as Company’s Representative in the
preceding sentence is unable to serve as the Company’s Representative at any
time.

ARTICLE VII
CONTRACTOR’S PERSONNEL AND REPRESENTATIVES

7.1 Contractor’s Personnel

(a) Contractor shall, and shall cause its Subcontractors to, furnish all
personnel, crews, supervisors, watchmen and other employees, agents
and representatives (“Personnel”) necessary to properly and timely
perform the Services in a safe manner and otherwise in accordance
with the Agreement. Company shall not be responsible for providing
shelter, food, living and drinking water, medical attention,
transportation, security or any other service or facility whatsoever for
the Personnel of Contractor or any Subcontractor. All immigration
requirements, and all passports, visas and other migratory documents,
required for Personnel of Contractor or any Subcontractor shall be the
responsibility of Contractor.

Appendix A- 16
(b) Contractor shall, and shall cause its Subcontractors to, employ
qualified, competent and properly licensed Personnel to perform the
Services. Contractor shall immediately remedy any failure by any
Personnel of Contractor or any Subcontractor to comply with the
Agreement.

(c) Contractor shall provide adequate personal supervision of the Services


by skilled supervisors, inspectors, superintendents, foremen and
watchmen to the extent necessary or appropriate to ensure compliance
with the provisions of the Agreement, including with respect to quality
control, health, safety and environmental matters.

(d) Contractor shall use all commercially reasonable efforts to prevent, and
mitigate the effects of, any strikes, work stoppages, slowdowns or
similar activities of or by, or lockouts against, Contractor’s Personnel
or the Personnel of any Subcontractor that would delay or otherwise
impede the progress or quality of the Services.

(e) If Company determines that any Personnel of Contractor or any


Subcontractor is acting in an unsafe manner with respect to the
Services or in a manner not in material compliance with Applicable
Law (including environmental compliance with respect to the Services)
or with good and prudent practices as are generally followed by the
international petroleum industry, Company shall have the right to
cause Contractor to remove the relevant person or persons from the
Services. If Company has a reasonable basis for designating such
removal, Contractor shall indemnify, defend and hold harmless each
Company Indemnitee from and against any and all Claims of any kind
whatsoever based on negligence, defamation, wrongful discharge,
wrongful dismissal or otherwise that such Company Indemnitee may
suffer, sustain, pay or incur as a result of any such removal.

(f) The organizational chart of Contractor’s staffing positions for the


Services is set forth in Appendix K, and Contractor shall provide
Company with updates to such chart as soon as reasonably practicable
after any changes to Contractor’s staffing positions occur. After
designation of the Key Personnel by Contractor, which shall be
submitted to, and approved by, Company prior to the Commencement
Date, Contractor shall not substitute any Key Personnel without
Company’s prior approval, which approval shall not be unreasonably
withheld, except in the event of death, incapacity or termination of the
labor relationship with Contractor or any of its Affiliates, in which
events approval shall not be required.

(g) Contractor’s Labor Issue and Worker Protection

i. Without prejudice to Company’s rights under this Agreement,


the Contractor shall be solely responsible for managing and
protecting the rights and interests of its employees in
accordance with applicable labor laws, and preventing labor
issues and handling labor disputes in a timely manner. The

Appendix A- 17
Contractor shall select its employees strictly in accordance with
applicable laws and ensure that all its employees hold and
maintain all licenses, authorizations and permissions, and,
where applicable, a valid visa, required for the employee to
work for the Contractor in his or her assigned role in accordance
with applicable laws and the Contractor shall not use for the
purposes of this agreement any employee who has a criminal
record, who has been involved in any terrorist related activity or
the funding of terrorist related activity or who is otherwise not
of good character. The Contractor shall indemnify and hold
Company harmless against any losses, whether direct or
indirect, and damages arising out of or incidental to
Contractor’s failure to comply with this article and/or applicable
laws.

ii. Insofar as the Contractor which is registered in China or is


governed by Chinese laws or controlled by Chinese entity is
concerned, the Contractor shall strictly follow Chinese rules and
regulations and instructions of the Chinese government,
including but not limited to: Regulation on the Administration
of Contracting Foreign Projects, Regulation on the
Administration of Foreign Labor Cooperation, Provisions on the
Prevention and Treatment of Overseas Labor Affairs.
Specifically, the Contractor:

 shall sign contracts (employ contract or service contract,


as the case may be) with the workers, strictly follow the terms
and conditions of the contracts, and pay salaries and provide the
agreed benefits to the workers in a timely manner;

 shall NOT utilize labor service agents which do not


have Chinese certificates for foreign labor cooperation or labor
service agents which has materially breached Chinese laws, and
shall not engage persons who do not have valid VISA of the
country in which this Agreement is performed;

 shall NOT subcontract the labor service of this


Agreement;

 shall strengthen the management of its subcontractors


and ensure its subcontractors will neither assign the project to
any other person nor dismember the project and then assign the
project in part to other persons; and

 shall establish and strictly follow the mechanism for


preventing and managing labor disputes and group events, as
well as mechanism for emergency treatment, and protect the
interest of the workers.

Appendix A- 18
The Contractor shall indemnify and hold Company harmless against any
losses, whether direct or indirect, and damages arising out of or incidental to
Contractor’s failure to comply with this article and/or applicable laws.

7.2 Contractor’s Representatives

(a) Contractor shall designate from time to time in writing to Company


certain of its Personnel as Contractor’s representatives as to the
Agreement (the “Contractor’s Representatives”), which designations
may limit the authority of such individuals.

(b) One of Contractor’s Representatives shall have full authority to act on


behalf of Contractor with respect to entering into Change Orders and
with respect to all other aspects of the Agreement and the Services.

(c) Contractor shall also designate in writing to Company at least one (1)
of its employees or representatives as a substitute for the Contractor’s
Representative referred to in Appendix A, Section 7.2(b) in the event
such Contractor’s Representative is unable to serve as the Contractor’s
Representative at any time. Contractor shall have at least one (1) of
the Contractor’s Representatives with full authority available during all
periods, including overtime and second and third shifts, when the
Services are in progress.

(d) Contractor shall advise Company in advance of any planned absences


of any Contractor’s Representative along with the name of the
Contractor’s Representative acceptable to Company who is authorized
to act in his absence.

ARTICLE VIII
SUBCONTRACTS

8.1 Right to Subcontract

Subject to the terms and conditions set forth herein, and subject further to the
prior written approval by Company (which shall not be unreasonably
withheld), Contractor shall have the right to utilize Subcontractors to perform
portions of the Services; provided, however, Contractor shall remain liable to
Company for the Services performed by Subcontractors to the extent as if
Contractor had performed such Services directly. Contractor shall cause each
Subcontract to include: (a) as Subcontractor obligations the material
obligations of Contractor under the Agreement; and (b) as Contractor rights
the material rights of Company (including audit rights) under the Agreement.

Appendix A- 19
8.2 Subcontractor Warranties

Contractor shall procure from each Subcontractor warranties with respect to


any materials, equipment or services provided by such Subcontractor and shall
require that all such Subcontractor warranties be assignable to Company.
Contractor shall conditionally assign to Company all Subcontractor warranties
pursuant to an instrument in form and substance reasonably acceptable to
Company, such conditional assignment to become effective upon the Services
Completion Date or termination of the Agreement, whichever occurs first.
Contractor shall diligently enforce all Subcontractor warranties at all times
prior to the Services Completion Date or termination of the Agreement,
whichever occurs first. Contractor shall not take any action which could
amend, modify, release, void, impair, discharge or waive any Subcontractor
warranties.

8.3 Manufacturer Information

Contractor shall require that Company be a recipient of manufacturer’s notices


(including any and all health and safety advisories and notices) related to any
equipment, supplies, structures and/or materials supplied to Company by
Contractor or any Subcontractor.

8.4 No Relationship with Company

None of Company’s rights under the Agreement shall create any contractual
relationship between Company and any Subcontractor.

8.5 Assignment of Subcontracts

Contractor shall include in each Subcontract a consent to the assignment of


such Subcontract to Company or Company’s designee upon termination of the
Agreement, which assignment shall be effected automatically, at Company
option, by notice from Company to the applicable Subcontractor.

8.6 Subcontractor Compliance

If the Services of a Subcontractor are not in compliance with the requirements


of the Agreement, Contractor shall take immediate steps to bring such
Services into compliance or, at Company’s written request, terminate its
Subcontract with such Subcontractor at no cost to Company.

8.7 Liens

(a) Contractor shall not directly or indirectly create, incur, assume or


suffer to be created any Prohibited Liens and hereby expressly waives
any right to file, or cause to be filed, any such Prohibited Lien.
Contractor shall promptly pay or discharge, and discharge of record,
any claim, lien or encumbrance which, if unpaid, might be or become a
Prohibited Lien. Contractor shall immediately notify Company of the
assertion of any Contractor Lien.

Appendix A- 20
(b) Contractor, in its Subcontracts, shall require all Subcontractors to
expressly waive the right to file any lien against Company’s property,
and, if requested, provide Company with copies of such waivers.

(c) Upon the failure of Contractor to promptly pay or discharge any


Prohibited Lien within thirty (30) days of notice of the existence
thereof from any source, Company may, but shall not be obligated to,
pay or discharge such Prohibited Lien or take any other steps it deems
necessary or appropriate to settle the Claim(s) underlying such
Prohibited Lien, including bonding off such lien. Company shall be
entitled immediately to: (i) recover from Contractor any costs incurred
in removing any Prohibited Lien(s); or (ii) set off any such costs
against amounts owed by Company to Contractor.

ARTICLE IX
PAYMENTS

9.1 Invoicing

Each invoice shall set forth in Dollars the aggregate amount due and payable
to Contractor and shall be accompanied by:

(a) a lien waiver in form and substance acceptable to Company;

(b) a certification that:

(i) all Subcontractors have been paid the monies due and payable
for the Services performed or will be paid from proceeds of the
current invoice;

(ii) Contractor is entitled to payment of the amount invoiced; and

(iii) each of the representations and warranties made by Contractor


in Appendix A, Section 3.1 was true and correct when made
and remains true and correct on the date of such invoice.

(c) social security clearance letter from the Social Security Department of
the Republic of Iraq. The Company reserve the rights to withhold any
payment under this contract if the social security clearance letter has
not been provided by the supplier

9.2 Retention

(a) Notwithstanding anything to the contrary set forth herein, all amounts
owed by Company in respect of the Services shall be subject to the
Retention, which shall be retained or applied by Company in
accordance with the terms of the Agreement (the aggregate amount
subject to such Retention, the “Retention Amount”); provided,
however, Company may decide to release a portion of the Retention
Amount if it determines, in its sole and absolute discretion, that a
reduced Retention Amount adequately protects Company from any and
all risks associated with Contractor’s performance of the Services.

Appendix A- 21
(b) Company may utilize all or any portion of the Retention to satisfy
Contractor’s obligations under the Agreement.

(c) Upon Services Completion, any remaining Retention held by Company


shall be paid to Contractor.

9.3 Payments of Invoices

(a) Subject to Retention, no later than one hundred eighty (180) days after
Company’s receipt of an invoice submitted in accordance with the
Agreement (including all supporting data), Company shall remit the
undisputed amount due to Contractor with respect to such invoice.
Payments shall be made by wire transfer of immediately available
funds in Dollars to an account designated by Contractor. The account
shall be designated by Contractor at least ten (10) days prior to
delivery of the invoice. Payments made by the Company shall not
preclude the right of the Company to thereafter dispute any of the
items invoiced.

(b) Company shall not be obligated to make any payment to Contractor if:

(i) at the time of such proposed payment a Contractor Default shall


have occurred and be continuing or an event shall have
occurred, for which Company has delivered a notice of default
and which with the passage of time and the failure of
Contractor to cure would constitute a Contractor Default
(provided a Contractor Default or a notice of default shall not
affect any obligation of Company to pay any undisputed
amounts of an invoice due to Contractor under the Agreement
unless withholding such undisputed amounts is reasonably
necessary to protect Company from loss because of Contractor
Default or notice of default);

(ii) all Delay Liquidated Damages owing to Company shall not


have been either paid or set off against amounts then due to
Contractor or the unpaid balance of the Contract Price would
not be adequate to cover Delay Liquidated Damages for the
anticipated delay; or

(iii) Contractor fails to submit proper invoices with all required


attachments and supporting documentation.

9.4 Set-Off

Company may set off any amount due and payable from Contractor under the
Agreement against any Progress Payment or other amount due and payable
hereunder.

Appendix A- 22
9.5 Social Security Clearance

Company shall pay the Contract Price after the Services have been completed
and satisfactorily accepted by Company and the Contractor provide Social
Security Clearance Letter from the Social Security Department of the Republic
of Iraq. The Company reserves the rights to withhold any payment under this
contract if the social security clearance letter has not been provided by the
Contractor.

9.6 Error in Payment

If an error is made in connection with a payment, the Party receiving the


payment shall immediately refund the amount erroneously received by it to the
paying Party. If with respect to any payment, Company discovers that the
Payment Milestone that formed the basis for all or a portion of such payment
was not in fact achieved, then Company may in its sole discretion (a) demand
a refund from Contractor of the payment related to such Payment Milestone or
(b) on prior written notice set off the amount of the payment related to such
Payment Milestone against future payments until such Payment Milestone is
achieved.

9.7 Final Documents

Contractor shall deliver, along with the last invoice, (a) a written general
release (conditioned on the payment of such invoice and the payment of all
amounts finally determined to be due and owing from previous invoices)
releasing Company (and its Affiliates, shareholders, agents, representatives
and employees) from any and all claims by Contractor arising under or in any
way connected with payments due and owing with respect to the Services
performed (except that the foregoing release shall not, unless the Parties agree
expressly otherwise, release Company from any claims for indemnification
then existing or thereafter arising under Appendix A, Section 18.1(b)), through
the Services Completion Date and certifying that all Subcontractors have been
paid or will be paid from the last invoice, and (b) a final lien release in the
form of Appendix L (the “Final Release”).

9.8 Taxes

(a) Contractor shall pay and be responsible for any and all Taxes, levies,
excises, duties, assessments and other charges of any kind levied by
any Applicable Laws on or because of:

(i) the performance of the Services by Contractor and/or any


Subcontractor;

(ii) any payment to, or the work of, Contractor and/or any
Subcontractor;

(iii) the ownership, use or incorporation of any equipment, supplies,


material or labor in the performance of the Agreement, arising

Appendix A- 23
prior to title thereto passing to Company pursuant to the terms
hereof;

(iv) the use or occupation of real property for or as a result of the


Services;

(v) the repatriation of any of Contractor’s or any Subcontractor’s


material or equipment; or

(vi) taxes that are measured by wages, salaries or other


remuneration paid to persons employed by Contractor or any
Subcontractor, or that arise by virtue of their employment.

(b) Any Tax payable with respect to, and not included in, the Agreement
or any agreement with any Subcontractor is included in the Contract
Price and shall be paid by Contractor.

(c) Contractor shall agree to have taken into account, in its rates, sums,
and prices all and any Taxes which any Governmental Authority
having jurisdiction over the Agreement, may impose, assess or levy
against any member of Contractor and its Affiliates on account of or
resulting from the execution or performance of the Agreement by
Company or Contractor and its Affiliates engaged in performing the
Work.

(d) If the Contractor claims that tax should not be withheld or tax already
withheld should be released or the tax should be deducted at the lower
rate, as the case may be, the Contractor needs to produce the valid
evidence in the form of letter to the same effect from the competent
authorities of the countries having jurisdiction over the Agreement.

(e) Contractor further agrees that if Company is subject to any demand to


pay other taxes arising out under this Agreement, Contractor either
assume, pay and discharge in a timely manner all such other or
additional taxes or Company may offset any amounts due from
Contractor under this indemnity from any payments Company is due to
make to Contractor under this Agreement or the Company may require
the Contractor to refund back the other tax or the additional taxes
which is not adjustable against the payment due to Contractor.

(f) Contractor shall make all reports and take all other actions legally
required to satisfy tax, accounting and reporting requirements of any
Governmental Authority having jurisdiction over the Agreement or the
performance of Contractor and its Affiliates engaged in performing the
Work under the Agreement.

(g) All payments under this Agreement shall be subject to tax deductions
as per tax laws applicable in the republic of Iraq at the time of
payment.

Appendix A- 24
9.9 Payment Not Waiver or Acceptance of Services

No payment made by Company under the Agreement shall constitute a waiver


of any claim or right Company may have at that time or thereafter, including
claims regarding unsettled Contractor Liens, warranty rights and
indemnification obligations of Contractor. No payment made by Company
under the Agreement shall be considered or deemed to represent that
Company has inspected the Services or checked the quality or quantity of the
Services or that Company knows or has ascertained how or for what purpose
Contractor has used sums previously paid, and shall not be deemed or
construed as an approval or acceptance of any Services or as a waiver of any
claim or right Company may have hereunder.

9.10 Delay Liquidated Damages

The Parties acknowledge and agree that: (a) the damages Company would
suffer as a result of a delay in the Services Completion Date would be difficult
to determine with certainty; (b) after taking into account the terms of the
Agreement and all relevant circumstances as of the date hereof, the Delay
Liquidated Damages represents a reasonable and genuine estimate of the
damages that Company would suffer as a result of a delay in the Services
Completion Date; and (c) such liquidated damages do not constitute a penalty.
Payment of Delay Liquidated Damages shall be Company’s exclusive remedy
for a delay in achieving Services Completion; provided; however, such
limitation shall not apply to any remedies for Contractor’s failure to achieve
Services Completion, other than any remedies relating solely to a delay in
achieving the Services Completion Date.

ARTICLE X
INTELLECTUAL PROPERTY

10.1 New Intellectual Property

Company will, upon the creation thereof, own any intellectual property,
including trademarks, patents, copyrights and trade secrets, resulting from the
Services. The Services performed hereunder shall be deemed “services made
for hire.” Contractor shall execute documents, including agreements with its
Subcontractors, employees and agents and assignment documents, necessary
to effectuate Company’s ownership of such intellectual property.

10.2 Infringement Claims

Should Contractor become aware of any Claim based on infringement,


unauthorized use or misappropriation of any intellectual property right used by
Contractor or any Subcontractor in connection with or related to the Services,
Contractor shall: (a) promptly upon learning thereof, investigate such Claim;
and (b) promptly submit to Company copies of all documents relating to such
Claim and a detailed, written analysis of such Claim, including the course of
action recommended by Contractor with respect thereto, which analysis shall
be updated by Contractor as reasonably appropriate.

Appendix A- 25
10.3 Proprietary Information

All drawings, designs, specifications, databases, computer software and other


proprietary information created in connection with the Services or pursuant to
the Agreement or any Subcontracts (“Proprietary Information”) shall,
immediately upon the creation thereof, become the property of Company.
Such data, together with all data furnished by Company to Contractor, shall be
delivered to Company upon completion of the Services or upon termination of
the Agreement. Contractor shall procure from each Subcontractor rights to
Proprietary Information as provided for in this Appendix A, Section 10.3.
Company may use, release, disclose, copy and reproduce any data resulting
from the Agreement in any manner it deems appropriate.

10.4 Use of Trademarks, Etc

Contractor shall not, without the prior written consent of Company: (a) use
any name, trade name, registered trademark or logo of Company or any of its
Affiliates in any advertising or communications to the public in any format;
(b) issue or publish any releases or announcements regarding the Agreement,
the Services or any activities related thereto; or (c) except as required in
connection with the performance of the Services, take any photographs, video
or other recordings of Company’s property.

ARTICLE XI
CONFIDENTIALITY

11.1 Protection of Confidential Information

(a) Contractor shall hold in confidence and refrain from disclosing all
business, technical, subcontractor, personnel, and other information
that is made available by Company, directly or indirectly, or developed
or acquired by Contractor or any Subcontractor in connection with the
Services or pursuant to the Agreement, including any such information
made available to Contractor prior to the execution of the Agreement
(collectively “Confidential Information”); provided, however,
Confidential Information shall not include Unrestricted Information.

(b) Notwithstanding anything to the contrary set forth herein, all


information pertaining to the Services Schedule and the Target
Schedule shall constitute Confidential Information.

11.2 Permitted Disclosures

(a) Contractor shall disclose Confidential Information to its Personnel on a


need-to-know basis.

(b) Contractor may disclose Confidential Information to Subcontractors


only to the extent reasonably necessary in connection with their
performance under Subcontracts and provided as a condition to such
disclosure such Subcontractors shall execute non-disclosure

Appendix A- 26
agreements on materially identical terms to those set forth in
this Appendix A, Article XI.

(c) Contractor may disclose Confidential Information to its insurance


providers to the extent reasonably necessary to procure required
insurance.

(d) If Contractor receives legal notice to compel disclosure of any


Confidential Information, Contractor shall provide Company with
prompt written notice thereof so that Company may seek a protective
order or other appropriate remedy at Company’s sole cost and expense.
If Contractor is legally obligated to disclose any Confidential
Information, Contractor shall furnish only that portion of such
Confidential Information which it is legally required to produce and
Contractor shall cooperate with Company and its legal counsel to
enable Company to obtain a protective order or other reliable assurance
that confidential treatment will be accorded the Confidential
Information.

11.3 Contractor’s Use of Confidential Information

Contractor shall not, without the prior written consent of Company, use any
Confidential Information for any purpose other than the performance of the
Services.

11.4 Survival

This Appendix A, Article XI shall remain in effect for a period of five (5)
years from the later of: (a) the Services Completion Date; or (b) the date of
termination of the Agreement.

11.5 Non-Disclosure of Contract Terms

Except as required by Applicable Law, neither Party shall disclose the terms
of the Agreement without the consent of the other Party; provided, however, a
Party may disclose the terms of the Agreement in confidence to its lenders and
prospective lenders without the consent of the other Party.

11.6 Contractor Information

Except as expressly provided in the Agreement, Company shall have no


obligation of confidence with respect to any information disclosed to
Company by Contractor or any Subcontractor, and Company shall be free to
use or disclose any or all such other information without accounting to
Contractor therefore, regardless of whether Contractor or any Subcontractor
places any restrictive notices on any information disclosed hereunder.

Appendix A- 27
ARTICLE XII
COMPANY DELAYS; SUSPENSION

12.1 Company Delays

(a) Subject to Appendix A, Section 12.4, if and to the extent that a delay
(other than any late payment) by Company in performing its
obligations under the Agreement materially and adversely delays
Contractor in performing the Services, such delay shall constitute a
“Company Delay.”

(b) In the event of a Company Delay, Contractor shall be entitled to an


equitable adjustment to (i) the Contract Price based on the applicable
standby rates set forth in Appendix D; and (ii) the Target Schedule;
provided, however, such adjustment shall not necessarily be equal to
the days delayed.

12.2 Contractor Suspension

(a) If Company fails to pay any undisputed amount owed to Contractor


pursuant to the Agreement for a period of not less than sixty (60) days
after the due date thereof, Contractor may, upon prior written notice to
Company, suspend its performance of the Services until such
undisputed amount is paid (such a suspension, a “Contractor
Suspension”).

(b) In the event of a Contractor Suspension, Contractor shall be entitled to


an equitable adjustment to (i) the Contract Price based on the
applicable standby rates set forth in Appendix D; and (ii) the Target
Schedule; provided, however, such adjustment shall not necessarily be
equal to the days suspended.

12.3 Company Suspension

(a) Company may suspend all or any portion of the Services at any time,
with or without cause, by giving notice to Contractor specifying the
part of the Services to be suspended and the effective date of such
suspension (such a suspension, a “Company Suspension”).

(b) During any Company Suspension, Contractor shall properly protect


and secure the Services (including maintaining care, custody and
control of Items) in accordance with the Standard of a Prudent
Contractor and otherwise as directed by Company. Unless otherwise
directed by Company, Contractor shall, during any such suspension,
maintain staff, labor and equipment on or near the Project Sites ready
to proceed with the Services upon receipt of further instructions from
Company.

(c) In the event of a Company Suspension, Contractor shall be entitled to


an equitable adjustment to (i) the Contract Price based on the
applicable standby rates set forth in Appendix D; and (ii) the Target

Appendix A- 28
Schedule; provided, however, such adjustment shall not necessarily be
equal to the days suspended.

12.4 Services Stoppage

Notwithstanding the provisions of this Appendix A, Article XII, the following


shall not be deemed a Company Delay or a Company Suspension: (a) any
stoppage of a portion of the Services by Company pursuant to its rights
under Appendix A, Section 4.2(b) or 5.1(c); and (b) subject to Appendix A,
Section 16.1(e), any required rework or stoppage of a portion of the Services
because such portion does not comply with the requirements of Appendix A,
Section 4.1(a).

ARTICLE XIII
FORCE MAJEURE

13.1 Excused Performance

A Party shall not be in default of its obligations hereunder to the extent its
delay in performance results from an event of Force Majeure, provided the
Party affected by the Force Majeure uses all commercially reasonable efforts
to: (a) proceed with its obligations under the Agreement to the extent that it is
not prevented from doing so by the event of Force Majeure; (b) remove or
relieve any event of Force Majeure and its consequences and minimize the
effects of the delay caused thereby; and (c) resume performance as soon as
practicable after the event of Force Majeure. The occurrence of an event of
Force Majeure shall not relieve the affected Party of its obligations to mitigate
the effects thereof.

13.2 Notification

A Party affected by an event of Force Majeure shall provide written notice


thereof to the other Party promptly upon the occurrence of the Force Majeure
event, and in no event later than ten (10) days after the occurrence thereof.
Such notice shall describe in reasonable detail the Force Majeure event, the
damages suffered, the activities which are being and will be undertaken to
mitigate the effects of such event, and the length of delay anticipated to result
from such event. In addition, the affected Party shall timely provide the other
Party with written supplemental notices periodically during the period that the
event of Force Majeure continues detailing any changes, development,
progress or other relevant information of which the affected Party is aware.
When the affected Party is able to resume performance of its obligations under
the Agreement, it shall give the other Party written notice to that effect.

ARTICLE XIV
CHANGE ORDERS

14.1 Changes in Scope

Company shall have the right to revise the scope of Services pursuant to a
Change Order. No Change Order shall be required other than to revise the

Appendix A- 29
scope of Services. A Change Order revising the scope of Services shall
include, to the extent necessary, an equitable adjustment of the Contract Price
and the Services Schedule to account for the impact of the net revision to the
scope of Services. For purposes of the Agreement a modification to the
requirements set forth in Appendix B shall constitute a revision to the scope of
Services.

14.2 Equitable Adjustments to Schedule

To the extent any Change Order has a material affect on Contractor’s ability to
achieve the Target Completion Date, Company shall equitably adjust such
Target Completion Date pursuant to a Change Order; provided however, such
adjustment shall not necessarily be equal to the number of days required to
perform the additional Services. Notwithstanding anything to the contrary set
forth herein, Contractor shall not be entitled to a Change Order to address
delays or cost increases resulting from Contractor’s failure to perform in
accordance with the terms of the Agreement.

14.3 Preparation of Change Orders

Upon Company’s request, Contractor shall prepare proposed Change Orders.


Any such proposed Change Order shall become effective only if and when
approved in writing by Company.

14.4 Extra Services

Company may submit a written request to Contractor for services outside the
scope of Services (such work, if any, “Extra Service”). Any Extra Service
shall be performed in accordance with the terms of the Agreement and at the
applicable rates set forth in Appendix M; provided, however, if such rates do
not apply to the Extra Service, Contractor shall promptly submit a pricing
proposal with respect to the Extra Service, which proposal, if accepted by
Company, shall become an amendment to the Agreement. Contractor shall
invoice and maintain separate cost records for each Extra Service
authorization issued by Company.

ARTICLE XV
ADJUSTMENTS

15.1 Adjustments to Contract Price

Notwithstanding anything in the Agreement to the contrary, the Contract Price


shall be increased or decreased only for the following specified occurrences:

(a) pursuant to a Change Order;

(b) as a result of a Company Delay or a Suspension; or

(c) as a result of a Force Majeure.

Appendix A- 30
15.2 Adjustments to Target Schedule

Notwithstanding anything in the Agreement to the contrary, the Target


Schedule shall be adjusted only for the following specified occurrences:

(a) pursuant to a Change Order;

(b) as a result of a Company Delay or a Suspension; or

(c) as a result of a Force Majeure.

ARTICLE XVI
INSPECTIONS; DEFECTS

16.1 Right to Inspect

(a) All Services and Contractor Items shall be subject to inspection


(including inspection by radiographic equipment) by Company at all
times to determine whether it is Conforming and proceeding in such a
manner as to achieve the various Key Milestone dates and Target
Completion Date. Contractor shall furnish Company’s Representative
and any of Company’s inspectors and representatives access to all
locations where the Services are in progress or the Contractor Items are
located for the purpose of inspection, including all Project Sites,
staging areas, fabrication shops and areas, equipment yards, storage
yards and vendor and shipper facilities (to the extent Contractor is
permitted access).

(b) Company shall coordinate visits to facilities of Subcontractors through


a representative of Contractor, and Contractor shall use reasonable
efforts to make its representatives available for such purpose.
Although Contractor shall coordinate all such visits, Company is under
no obligation to readjust the timing of any planned visit to allow the
attendance of such Contractor’s representative.

(c) If, in the judgment of Company’s Representative, any Service or


Contractor Item is Defective, then Contractor shall, at its sole cost, risk
and expense, promptly repair or replace the Defective Service or
Contractor Item, in a manner that renders it Conforming.

(d) Notwithstanding Company’s right to inspect and reject the Defective


Service or Contractor Item, Company is not obligated to conduct such
inspections. The exercise by Company of such right or any failure on
the part of Company to discover or reject Defective Service or
Contractor Item (or payment for or use by Company of Defective
Service or Contractor Item) shall not be construed to imply an
acceptance of such Defective Service or Contractor Item or a waiver of
either such Defect or of Contractor’s obligations or Company’s rights
under the Agreement or Applicable Law.

(e) If Company determines that Contractor has not performed an activity


within the scope of Services and Contractor claims that such activity is

Appendix A- 31
outside the scope of Services, then Contractor shall perform such
activity but shall be entitled to an adjustment in the Contract Price and,
if applicable, the Target Schedule in accordance with Appendix A,
Article XV (and Company shall execute the related Change Order) if
and to the extent that it is later determined that such activity is outside
the scope of Services.

16.2 Audit

Contractor shall keep, and shall cause its Subcontractors to keep, such full and
detailed books, records and accounts as may be necessary for compliance with
its obligations under the Agreement for a period of five (5) years after
Services Completion. Company, through the Company’s Representative, shall
have the right, on reasonable advance notice to Contractor, to have a
reasonable number of Company’s General Representatives inspect, during
normal business hours, Contractor’s books and records and other relevant
information as to Contractor’s costs and time and material usage to the extent
they are relevant for auditing any Services performed on a unit price or time
and material basis.

ARTICLE XVII
TARGET AND SERVICES SCHEDULES

17.1 Target Schedule

(a) The Target Schedule lists the key milestones with respect to achieving
Services Completion (the “Key Milestones”).

(b) If the Target Completion Date is extended in accordance with the


Agreement, Contractor shall make appropriate and reasonable
adjustments to the Key Milestones (which adjustments may or may not
be on a day for day basis), subject to Company’s approval.

17.2 Services Schedule

(a) Contractor shall maintain, in a computer format agreed to by


Company, a schedule (the “Services Schedule”) setting forth the
timing of all elements, phases and resources of the Services, which
schedule shall, as of each time it is updated, represent Contractor’s best
estimate of the actual timing of performance of all elements and phases
of the Services.

(b) In the event Contractor has reason to believe that there will be a
material deviation in the Services Schedule which may result in
Contractor failing to meet the Target Completion Date or may affect
the time required for Company to perform any of its obligations,
Contractor shall promptly provide Company a written notice thereof,
which notice shall specify any corrective actions planned to be taken
by Contractor.

Appendix A- 32
(c) Contractor and Company shall jointly develop monthly updates to the
Services Schedule, each of which shall only become effective upon
Company’s approval thereof. In addition to such monthly updates,
Contractor shall provide Company daily with copies of the field
progress reports Contractor prepares on a daily basis.

17.3 Time is Of the Essence

TIME IS OF THE ESSENCE IN THE PERFORMANCE UNDER THE


AGREEMENT.

17.4 Meetings

No later than thirty (30) days after the Commencement Date, the Parties shall
agree upon the frequency with which meetings between the Parties shall be
held to discuss the progress of the completion of the Services and any other
related matters, provided it is presently the intention of the Parties that such
meetings occur weekly.

17.5 Progress Reports

No later than thirty (30) days after the Commencement Date, the Parties shall
agree upon the frequency with which Contractor shall provide Company with
written progress reports and the form and content of such reports, provided it
is presently the intention of the Parties that such reports be provided no less
than monthly and shall include, at a minimum, a description of the progress of
the Services, details regarding the completion of Key Milestones, the status of
the procurement of Items, a comparison of the actual schedule of the Services
with the Target Schedule, and an evaluation of problems and deficiencies and
a description of any planned corrective action with respect thereto.

ARTICLE XVIII
INDEMNIFICATION

18.1 General Indemnity

(a) To the fullest extent permitted by Applicable Law, Contractor shall


indemnify, save harmless and defend Company, its Affiliates, and all
of their respective employees, agents, directors and officers (each, an
“Company Indemnitee”) from all Claims, including reasonable
attorneys’ fees, growing out of personal injury, death or damage to
property (including Company’s property) arising out of, or in any way
connected with, Contractor’s, any Subcontractor’s or any of their
respective employees’, agents’ and representatives’ performance or
nonperformance hereunder (negligent or otherwise) suffered or
claimed to have been suffered by any Person (including Company
Indemnitees and anyone directly or indirectly employed by Contractor
or any Subcontractor), except to the extent caused by the negligence of
any Company Indemnitee.

Appendix A- 33
(b) To the fullest extent permitted by Applicable Law, Company shall
indemnify, save harmless and defend Contractor, its Affiliates and
their respective employees, agents, directors, officers and
representatives (collectively, the “Contractor Indemnitees”) from all
Claims, including reasonable attorneys’ fees, growing out of personal
injury, death or damage to Contractor’s property to the extent caused
by Company, its subcontractors at any level or any of their respective
employees or agents, except to the extent such injury, death or damage
is caused by Company, its subcontractors at any level or their
respective employees or agents acting at the direction of Contractor or
any of its Subcontractors.

18.2 Contractor’s Surface Equipment

Contractor shall release, indemnify, defend and hold Company Indemnitees


harmless from and against any and all Claims for loss of or damage to or
destruction of the Contractor’s surface equipment, including all workover
tools, machinery, and appliances for use above the surface, and any in-hole
equipment when it is above the surface, regardless of how such damage or
destruction occurs. Company shall be under no liability to reimburse
Contractor for any such loss, provided such loss or damage is not caused by
any negligent act or omission or willful misconduct on the part of Company.
Contractor shall extend to Company the benefit of any insurance coverage
which may exist under Contractor’s insurance policies or provisions.

18.3 Contractor’s In-hole Equipment

Company shall release, indemnify, defend and hold Contractor Indemnities


harmless from and against any and all Claims for loss of or damage to or
destruction of the Contractor’s in-hole equipment while in the hole or below
the rotary table provided, including drill pipe, drill collars, and tool joints, and
Company shall reimburse Contractor for the repair or replacement cost less
depreciation of any such equipment provided such equipment and the
operation in which the same is lost or damaged has been approved by a duly
authorized representative of Company, and provided such loss, damage or
destruction is not caused by any negligent act or omission or willful
misconduct on the part of the Contractor.

18.4 Loss of Hole

Company shall release, indemnify, defend and hold Contractor Indemnities


harmless from and against any and all Claims for loss of or damage to the hole;
provided, however, if such loss or damage is caused by any negligent act or
omission or willful misconduct on the part of Contractor, Contractor shall at
Company’s election redrill the hole or drill a substitute hole to the depth the
lost or damaged hole had reached when the loss or damage occurred at
Contractor’s expense.

Appendix A- 34
18.5 Environmental Indemnities

(a) To the fullest extent permitted by Applicable Law, Contractor shall


indemnify, save harmless and defend Company Indemnitees from all
Claims, including reasonable attorneys’ fees, to the extent arising
from: (i) any release or disposal of (or arranging for the disposal of)
any Hazardous Substance by Contractor or any Subcontractor; (ii) the
existence, use, release, transportation or disposal of any Hazardous
Substance that has been brought onto any Project Site by Contractor,
any Contractor Personnel, any Subcontractor, any employees of any
Subcontractor or any Person acting on behalf of, or under the direction
or supervision of any such Person; (iii) Contractor’s failure to timely
notify Company of the presence of any Hazardous Substance on any
Project Site; (iv) Contractor’s failure to remove or properly dispose of
any Hazardous Substance brought onto any Project Site or generated
by Contractor, any Contractor Personnel, any Subcontractor, any
employees of any Subcontractor or any Person acting on behalf of, or
under the direction or supervision of any such Person; or (v) the failure
of Contractor, any Contractor Personnel, any Subcontractor, any
employees of any Subcontractor or any Person acting on behalf of, or
under the direction or supervision of any such Person to comply with
any Environmental Law.

(b) To the fullest extent permitted by Applicable Law, Company shall


indemnify, save harmless and defend Contractor Indemnitees from all
Claims, including reasonable attorneys’ fees, to the extent arising from
the existence of any Hazardous Substance at, on or under any Project
Site prior to Contractor’s commencement of the Services on such
Project Site except to the extent: (i) Contractor is liable for any such
Claim pursuant to Appendix A, Section 18.5(a); or (ii) such Claim
results from the negligence of any Contractor Indemnitee or
Subcontractor.

18.6 Intellectual Property Indemnity

To the fullest extent permitted by Applicable Law, Contractor shall indemnify,


save harmless and defend Company Indemnitees from any Claims, including
reasonable attorneys’ fees, to the extent arising from an infringement of
patent, trade secret, copyright or other intellectual property rights provided or
required to be provided by Contractor in connection with the Services;
provided, however, Contractor shall not be liable for any such Claim to the
extent arising out of: (a) the use of such intellectual property rights in
combination with devices or products not supplied by Contractor or any
Subcontractors; or (b) the use of such intellectual property rights in an
application or environment other than as intended by Contractor. Should any
such Claim materially impair Contractor’s performance of the Services,
Contractor shall, at its own cost and expense, timely procure the right to
continue its performance of the Services. If any Claim described in
this Appendix A, Section 18.6 is held to constitute an infringement of any
intellectual property rights and use of any equipment or process included in
the Services is enjoined, Contractor shall, at its own cost and expense:

Appendix A- 35
(i) procure for Company the right to continue to use the infringing equipment
or process; (ii) replace such equipment or process with non-infringing
equipment or process of equal utility and efficiency; or (iii) modify such
equipment or process so that it becomes non-infringing without affecting its
utility or efficiency; provided, however, Contractor may only elect the action
described in clause (ii) or (iii) if Contractor and Company agree upon a
schedule for such action that will allow Contractor to complete such action
within a reasonable period of time without unreasonably interfering with
completion of the Services.

18.7 Indemnity Against Prohibited Liens

To the fullest extent permitted by Applicable Law, Contractor shall indemnify,


save harmless and defend Company Indemnitees from any and all Prohibited
Liens.

18.8 Defense of Indemnified Claims

(a) Within a reasonable time after receipt by any Indemnitee of any Claim
as to which the indemnity provided for in the Agreement may apply,
such Indemnitee shall notify the indemnifying Party in writing of such
fact; provided, however, delay in notifying the indemnifying Party
shall not relieve such Party of its indemnification obligations except to
the extent that it is materially prejudiced by such delay.

(b) The indemnifying Party shall diligently, competently and in good faith
control and conduct the defense, with counsel reasonably satisfactory
to the Indemnitee, of any Claim as to which the indemnity provided for
in the Agreement applies; provided, however, the indemnifying Party
may not settle or compromise any such Claim without the Indemnitee’s
consent unless the terms of such settlement or compromise
unconditionally release the Indemnitee(s) from any and all liability
with respect thereto and do not impose any obligations on any
Indemnitee.

(c) An Indemnitee shall have the right, at its option (but not the
obligation), to be represented by advisory counsel of its own selection
and at its own expense and to monitor the progress and handling of an
indemnified Claim. An Indemnitee shall also have the right, at its
option (but not the obligation), to assume the defense of any such
Claim with counsel of its own choosing at its sole cost and expense;
provided, however, an Indemnitee shall have the right to assume the
defense of, and to settle or compromise, any such indemnified Claim at
the indemnifying Party’s expense if: (i) the indemnifying Party fails to
acknowledge, in writing, its responsibility to assume the defense of
such Claim; (ii) the indemnifying Party fails to diligently, competently
and in good faith control and conduct the defense of such Claim with
counsel reasonably satisfactory to the Indemnitee; (iii) there is an
apparent conflict of interest between the indemnifying Party and the
Indemnitee with respect to such Claim; or (iv) such Indemnitee shall
have reasonably concluded that there are legal defenses available to it

Appendix A- 36
which are different from, additional to or inconsistent with those
available to the indemnifying Party.

18.9 Waiver

An indemnifying Party’s obligations to indemnify, defend and hold each


Indemnitee harmless shall not be reduced or limited in any way by any
provision of any workers’ compensation act, disability benefits act or other
employee benefit acts. WITH RESPECT TO CLAIMS AGAINST
COMPANY BY CONTRACTOR’S EMPLOYEES, CONTRACTOR
HEREBY EXPRESSLY WAIVES ITS IMMUNITY AS A COMPLYING
EMPLOYER UNDER THE WORKERS’ COMPENSATION LAW, BUT
ONLY TO THE EXTENT THAT SUCH IMMUNITY WOULD BAR OR
AFFECT RECOVERY UNDER OR ENFORCEMENT OF THIS
INDEMNIFICATION OBLIGATION.

18.10 Attorneys’ Fees

An indemnifying Party shall be liable for reasonable attorneys’ fees and costs
of litigation associated with enforcement of an Indemnitee’s rights pursuant to
this Appendix A, Article XVIII.

ARTICLE XIX
NO CONSEQUENTIAL DAMAGES; LIMITATION OF CLAIMS

19.1 Exclusion of Consequential Damages

NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR


ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE,
CONSEQUENTIAL OR EXEMPLARY DAMAGES OF ANY KIND OR
NATURE WHATSOEVER, OR DAMAGES ARISING FROM OR IN
CONNECTION WITH THE OTHER PARTY’S LOSS OF ACTUAL OR
ANTICIPATED PROFITS OR REVENUES, IN EACH CASE ARISING
OUT OF, IN CONNECTION WITH OR RESULTING FROM THE
AGREEMENT, REGARDLESS OF WHETHER ANY CLAIM FOR SUCH
LOSSES OR DAMAGES IS BASED ON CONTRACT, WARRANTY,
TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR
OTHERWISE.

19.2 Limitation on Initiating Claim

Contractor must bring any cause of action arising under the Agreement within
[one (1) year] from the time the cause of action accrues.

ARTICLE XX
INSURANCE

20.1 Contractor Required Insurance

Commencing on the Commencement Date and ending on the Services


Completion Date, Contractor shall, at its sole cost, risk and expense, obtain
from an insurance company acceptable to Company the insurance coverage set

Appendix A- 37
forth in Appendix J with respect to its obligations under the Agreement, and
the obligations of any field Subcontractors, and any additional insurance
coverage that is required by Applicable Law.

20.2 Contractor’s General Insurance Requirements

(a) Contractor shall be solely responsible for all costs and deductible or
retention amounts under the insurance coverage required pursuant
to Appendix A, Section 20.1.

(b) All insurance policies (except Workers’ Compensation Insurance and


Employer’s Liability insurance) required to be maintained by
Contractor under Appendix A, Section 20.1 shall name Company and
its Affiliates and each of their respective successors, assigns, directors,
officers, employees and agents (collectively, the “Company
Insureds”) as additional insureds. All insurance policies required to
be maintained by Contractor under Appendix A, Section 20.1 shall
include a waiver of subrogation in favor of the Company Insureds.

(c) All liability insurance policies required to be maintained by Contractor


under Appendix A, Section 20.1 shall be endorsed or otherwise
provide that Contractor’s insurance coverage shall be primary with
respect to liability insurance policies maintained by Company and all
other Company Insureds, and any other insurance coverage maintained
by Company or any other Company Insured shall be in excess of any
insurance maintained by Contractor. The liability insurance policies
shall be endorsed to provide a severability of interest or cross liability
clause.

(d) All insurance policies required to be maintained hereunder shall


provide that such insurance shall not be canceled, reduced, restricted or
changed in any way without the insurer giving at least thirty (30) days’
prior written notice to Company.

(e) Before the commencement of any Services hereunder, Contractor shall


deliver to Company certificates acceptable to Company evidencing the
insurance coverage Contractor is required to maintain hereunder.
Certificates of each renewal of the insurance coverage Contractor is
required to maintain hereunder shall be delivered to Company upon
renewal and prior to expiration of any policy being renewed. Further,
Contractor shall, upon Company’s request, provide Company with a
reasonable opportunity to review, at a reasonable time and place, a
copy of the actual policy for any insurance coverage required to be
maintained by Contractor hereunder.

(f) If any of the insurance policies required to be maintained by


Contractor hereunder shall be canceled for any reason during the
period of the Agreement, Contractor shall immediately procure
replacement coverage.

Appendix A- 38
(g) In the event Contractor fails to provide or maintain the insurance
coverage as required under Appendix A, Section 20.1, Company shall
have the right, but not the obligation, upon ten (10) days’ prior written
notice to Contractor, to procure any such insurance coverage and to
deduct the cost thereof from any amounts due and payable to
Contractor or, if there are no such amounts due and payable,
Contractor shall reimburse Company for such costs on demand.

20.3 Liability not Affected by Insurance

Except as otherwise expressly provided hereunder, the obtaining of any


insurance by Company or Contractor under the Agreement shall not in any
way diminish the responsibility or limit the respective liabilities of Company
or Contractor, as the case may be, as provided under any Section of the
Agreement or otherwise, nor shall anything in this Appendix A, Article XX in
any way limit either Party’s rights or remedies against the other Party
hereunder, and each Party shall remain solely responsible for the amount of
any claim, liability or loss exceeding the amount of any insurance coverage
maintained by Company or Contractor, as the case may be, hereunder, for any
excluded claims under such policies and for any deductible or retention
amounts.

ARTICLE XXI
TERMINATION; DEFAULT; REMEDIES

21.1 Termination for Convenience by Company

(a) Company, by written notice to Contractor and for convenience of


Company, may at any time terminate the Agreement in whole or in
part.

(b) Upon a termination of the Agreement for convenience, Contractor shall


comply with instructions in the notice of termination regarding the
Services in progress and the completed Services.

(c) Upon termination for convenience of the Agreement by Company


pursuant to Appendix A, Section 21.1(a), Company shall, as its
exclusive liability to Contractor, pay Contractor:

(i) the portion of the Contract Price relating to all Services


performed (including all Contractor Items purchased and not
cancelable by Contractor or its Subcontractors for the Services
and including the appropriate portion of amounts for partially
completed items in the Payment Schedule) prior to Contractor’s
receipt of Company’s notice of termination; and

(ii) the actual costs incurred by Contractor in connection with


(A) cancellation payments owed by Contractor with respect to
Contractor Items and Consumables ordered or leased by
Contractor from any Person that is not an Affiliate of
Contractor and (B) Demobilization.

Appendix A- 39
21.2 Contractor Default

Each of the following shall constitute an event of default by Contractor (each a


“Contractor Default”):

(a) the Services Completion Date has not occurred within [________]
(___) days after the Target Completion Date;

(b) Contractor abandons the Services and such abandonment is not cured
within seven (7) Business Days after notice thereof;

(c) Contractor fails to pay any undisputed amount owing to a


Subcontractor or any other Person or entity related to the Services
within ninety (90) days after the date due or fails to remove any
Prohibited Liens in accordance with Appendix A, Section 8.7;

(d) a representation or warranty of Contractor made pursuant to the


Agreement shall have been incorrect as of the date made and shall
remain incorrect for a period of thirty (30) days after notice thereof;

(e) Contractor fails to correct any Defective Service in accordance


with Appendix A, Section 16.1;

(f) Contractor fails to perform any other material obligation under the
Agreement and such failure continues for thirty (30) days after notice
thereof by Company, or if such failure cannot be cured in such thirty
(30) day period with the exercise of all commercially reasonably
efforts, such longer period as shall be reasonably necessary to cure
such failure, not to exceed ninety (90) days, so long as Contractor
diligently continues without interruption all commercially reasonably
efforts to cure such failure;

(g) Contractor commits a substantial violation or repeated violation of any


Applicable Law;

(h) the financial institution that provides the Performance Security


repudiates its obligations under, or fails to comply with the terms of,
the Performance Security;

(i) Contractor is dissolved or liquidated; and

(j) any bankruptcy or insolvency proceeding is instituted against


Contractor, or a receiver, trustee or assignee for the benefit of creditors
of Contractor is appointed, and such condition or conditions are not
cured within forty-five (45) days after occurrence.

21.3 Remedies for Contractor Default

(a) If a Contractor Default occurs and is continuing, Company may


exercise any remedy available at law or in equity, including

Appendix A- 40
termination of the Agreement; provided, however, if the Agreement
explicitly specifies that a remedy is exclusive, Company shall be
limited to the exercise of that remedy. Without limiting other remedies
to which Company may be entitled hereunder, Company may, whether
or not the Agreement is terminated, retain a Replacement Contractor to
perform the Services by whatever method that Company and such
Replacement Contractor may deem expedient. Company may make
such expenditures as in Company’s sole judgment will best accomplish
the timely completion of the Services; provided, however, Company
shall not be required or expected to terminate, repudiate or renegotiate
any Subcontracts.

(b) Upon termination of the Agreement by Company pursuant


to Appendix A, Section 21.3(a), Company shall pay Contractor:

(i) the portion of the Contract Price relating to all Services


performed (including all Contractor Items purchased and not
cancelable by Contractor or its Subcontractors for the Services
and including the appropriate portion of amounts for partially
completed items in the Payment Schedule) prior to Contractor’s
receipt of Company’s notice of termination;

(ii) the actual costs incurred by Contractor in connection with


(A) cancellation payments owed by Contractor with respect to
Contractor Items and Consumables ordered or leased by
Contractor from any Person that is not an Affiliate of
Contractor and (B) Demobilization; and

(iii) damages suffered by Company as a result of such Contractor


Default including amounts owed by Contractor pursuant to its
indemnity and warranty obligations hereunder. Company’s
rights under this Appendix A, Section 21.3(b) are in addition to
(but not duplicative of) any other rights and remedies available
to Company.

21.4 Company Default

Each of the following circumstances or events shall constitute a default by


Company (“Company Default”):

(a) any representation or warranty of Company made pursuant to the


Agreement shall have been incorrect as of the date made and shall
remain incorrect for a period of thirty (30) days after notice thereof;

(b) a proceeding is instituted against Company seeking to adjudicate


Company as bankrupt or insolvent and such proceeding is not
dismissed within sixty (60) days of filing, Company makes a general
assignment for the benefit of its creditors, a receiver is appointed on
account of the insolvency of Company, Company files a petition
seeking to take advantage of any other Applicable Law relating to
bankruptcy, insolvency, reorganization, winding up or composition or

Appendix A- 41
readjustment of debts, or Company is unable to pay its debts when due
or as they mature.

21.5 Remedies for Company Default

If a Company Default occurs, Contractor may terminate the Agreement. In the


event of such termination, Company shall pay, as Contractor’s sole and
exclusive remedy:

(a) the portion of the Contract Price relating to all Services performed
(including all Contractor Items purchased and not cancelable by
Contractor or its Subcontractors for the Services and including the
appropriate portion of amounts for partially completed items in the
Payment Schedule) prior to receipt of Contractor’s notice of
termination;

(b) the actual costs incurred by Contractor in connection with


(i) cancellation payments owed by Contractor with respect to
Contractor Items and Consumables ordered or leased by Contractor
from any Person that is not an Affiliate of Contractor and
(ii) Demobilization.

21.6 Effect of Termination.

(a) Upon termination of the Agreement for any reason, including a


termination for convenience pursuant to Appendix A, Section 21.1,
Contractor shall:

(i) promptly prepare and submit to Company an itemization of the


completed Services;

(ii) execute no further Subcontracts and place no further orders


with any Subcontractor(s);

(iii) exercise all commercially reasonable efforts to procure


cancellations of all Subcontracts on terms satisfactory to
Company, except to the extent Company requests that any
Subcontract(s) be assigned to Company or a Replacement
Contractor, in which case Contractor shall assign such
Subcontract(s) to Company or Replacement Contractor as may
be directed by Company;

(iv) execute only that portion of the Services as may be necessary to


preserve and protect the Services already in progress and to
protect equipment and materials at the Project Sites or in transit
thereto;

(v) deliver or cause to be delivered all uninstalled equipment and


materials at the Project Sites or such other locations as shall be
directed by Company;

Appendix A- 42
(vi) if requested by Company, provide Company and/or any
Replacement Contractor(s) with the right to continue to use any
and all intellectual property reasonably necessary for the
completion of the Services which Contractor has the right to
use (subject only to the same restrictions and costs as may
apply to Contractor);

(vii) assist Company in preparing an inventory of all equipment and


materials in use or in storage;

(viii) remove from the Project Sites all rubbish and other materials as
Company may request; and

(ix) deliver to Company all design and other information related to


the Services as may be requested by Company.

(b) Upon termination of the Agreement for any reason, including a


termination for convenience pursuant to Appendix A, Section 21.1,
Company may take over any or all of the Services and/or have the
Services completed by others.

ARTICLE XXII
GENERAL PROVISIONS

22.1 Assignment

Except as otherwise set forth herein, the rights and obligations under the
Agreement may not be assigned or transferred in whole or in part by either
Party, nor may a Party delegate any of its obligations, duties or liabilities
hereunder, without the prior written consent of the other Party; provided,
however, Company may assign or transfer its rights and obligations hereunder
to its Affiliate without the written consent of Contractor; provided, further, in
no event shall the assignment or transfer of the Agreement relieve in any way
either Party of its obligations hereunder. Any attempted assignment,
delegation, or transfer in violation of this Appendix A, Section 22.1 shall be
void.

22.2 Independent Contractor

Contractor shall be an independent contractor for, and not the agent or


employee of, Company. The relationship of employer and employee shall not
exist between Company and Contractor Personnel. Contractor acknowledges
and agrees that no Contractor Personnel shall be eligible to participate in, nor
shall they receive any benefits from, any employee benefit plan(s) sponsored
by Company. Neither the Agreement nor the performance of the Services
shall create or be construed to create any partnership or joint venture or
operation between Company and Contractor or any Subcontractor.

22.3 Certain Practices

(a) Each Party hereby represents, warrants and covenants that neither it
nor any of its Affiliates, officers, directors, employees or agents has

Appendix A- 43
made or will make, with respect to the Services, any payments, loans,
gifts, or promises or offers of payments, loans, gifts or anything of
value, directly or indirectly to or for the use or benefit in whole or in
part of, any foreign official or employee of any Governmental
Authority or state-owned oil company or other state-owned enterprise,
or to or for the use of any political party or official thereof, or
candidate for political office, or to any other Person if any such Person
knows, should have known or has or had reason to suspect, that any
part of such payment, loan, gift or promise or offer:

(i) is for purposes of corruptly (A) influencing any act or decision


of the recipient in its official capacity, (B) inducing such
recipient to (1) do or omit to do any act in violation of its
lawful duty or (2) use its influence to affect or influence any act
or decision of the government of the Target Jurisdiction or
instrumentality thereof, or (C) securing any improper
advantage, in each case, in order to assist such Person or the
related Party in obtaining or retaining business for or with, or
directing business to, any Person unless such payment, loan,
gift or promise or offer thereof is lawful under the laws of the
Target Jurisdiction or other Applicable Law; or

(ii) would violate any Applicable Law, including the [U.S. Foreign
Corrupt Practices Act], the OECD Convention on Combating
Bribery of Foreign Public Officials in International Business
Transactions, and the laws of the Target Jurisdiction.

(b) Each Party shall advise all of its and its Affiliates’ employees and
representatives engaged in implementing the Agreement regarding the
practices referred to in Appendix A, Section 22.3(a) and Applicable
Law. Contractor shall cause each Subcontractor to comply with these
practices and Applicable Law. Each Party shall take appropriate steps
to ensure that it and its Affiliates and their respective representatives
comply with these practices and Applicable Law. Each Party shall
respond promptly, and in reasonable detail, to any notice from the
other Party or the other Party’s auditors pertaining to the above stated
warranty and representation, and shall furnish documentary support for
such response upon request from such other Party.

(c) Contractor shall make and keep books, records and accounts which, in
reasonable detail, accurately and fairly reflect the transactions
contemplated in connection with the Services and any dispositions of
its assets, and shall devise and maintain a system of internal accounting
controls sufficient to comply with Applicable Law.

(d) In the event that one Party has breached or violated Appendix A
Article 22.3 of this Agreement, the other Party may terminate this
Agreement. The breaching Party shall indemnify the other Party all
damages and losses arising out of any failure by the breaching Party
Group to comply with its obligations in this Appendix A Article 22.3.
Such indemnity obligation is not subject to any limit of maximum

Appendix A- 44
aggregate liability and shall survive termination or expiration of this
Agreement.

22.4 Notices

All notices, requests or instructions given in accordance with the Agreement


shall be deemed given (a) on the date of delivery, if hand delivered, provided
if the delivery is on a day that is not a Business Day or if delivery is made
after 5.00 p.m., such delivery is deemed to have been made on the next
Business Day, (b) on the same Business Day when sent by facsimile during
regular business hours at the place of delivery or on the next Business Day
after transmission if sent by facsimile after regular business hours at the place
of delivery, in each case if the facsimile machine generates a transmission
confirmation report that the notice, request or instruction was successfully
transmitted to the receiver’s facsimile number, (c) three (3) Business Days
after the date of mailing, if mailed by registered or certified mail, return
receipt requested, and (d) one (1) Business Day after the date of sending, if
sent by internationally recognized overnight courier.

22.5 Currency Conversion

Any cost incurred or savings realized in a currency other than Dollars shall be
converted into Dollars at the open market exchange rate applicable on the date
such costs were incurred by Contractor or would have been incurred had the
savings not been realized.

22.6 Entire Agreement

The Agreement (including all Appendices) constitutes the entire agreement of


the Parties and supersedes all prior agreements, letters of intent and
understandings, both written and oral, among the Parties with respect to the
subject matter hereof. There are no representations or warranties, agreements,
or covenants other than those expressly set forth in the Agreement.

22.7 Severability

If any term or other provision of the Agreement is determined by a court of


competent jurisdiction to be invalid, illegal, or incapable of being enforced by
any Applicable Laws, or public policy, all other conditions and provisions of
the Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated herein are not
affected in any manner materially adverse to any Party. Upon such
determination that any term or other provision is invalid, illegal, or incapable
of being enforced, the Parties shall negotiate in good faith to modify the
Agreement so as to effect the original intent of the Parties as closely as
possible in a mutually acceptable manner in order that the transactions
contemplated herein are consummated as originally contemplated to the fullest
extent possible.

Appendix A- 45
22.8 Nature of Obligations

Nothing herein shall be deemed to constitute a partnership, joint venture,


association, trust or agency relationship between the Parties.

22.9 Amendments and Waivers

No amendment, supplement, waiver or termination of the Agreement shall be


binding unless executed in writing by the Party to be bound thereby and any
permitted assignees of such Party and expressly states that it is an amendment,
supplement, waiver or termination of the Agreement. No waiver of any of the
provisions of the Agreement shall be deemed or shall constitute a waiver of
any other provisions (whether or not similar) nor shall such waiver constitute a
continuing waiver unless otherwise expressly provided.

22.10 Dispute Resolution

(a) The Parties agree to make a good faith effort to resolve any Legal
Dispute that may arise first by negotiations between representatives of
each Party who have authority to settle the controversy. When a Party
believes there is a Legal Dispute, the Party will give the other Party
written notice of the Legal Dispute. The authorized representatives of
the Parties shall meet at a mutually acceptable time and place within
thirty (30) days after the date of the notice to exchange relevant
information and to attempt to resolve the Legal Dispute. The
authorized representatives of the Parties shall be entitled to
representation by legal counsel at the negotiations. All negotiations
shall be confidential and shall be treated as compromise and settlement
negotiations.

(b) Notwithstanding the above, if either Party deems that time is of the
essence in resolving the Legal Dispute, it may initiate arbitration and
seek an expedited formation of the tribunal, seek interim measures, if
appropriate, and then comply with the requirements for negotiations as
long as they are fully completed before the commencement of the final
hearing on the merits in the arbitration proceeding.

(c) If the Legal Dispute has not been resolved within sixty (60) days after
the date of the notice of the Legal Dispute, or if the Party receiving
such notice fails or refuses to meet within such time period, either
Party may initiate arbitration proceedings. The arbitration shall be
conducted in accordance with [the London Court of International
Arbitration Rules as in effect on the date of commencement of the
arbitration proceeding (the “LCIA Rules”)]. The arbitration shall be
conducted and finally settled by three arbitrators. All Legal Disputes
shall be settled through final and binding arbitration, it being the
intention of the Parties that this is a broad form arbitration agreement
designed to encompass all possible Legal Disputes between the Parties
relating to the transactions that are the subject of the Agreement.

Appendix A- 46
(d) The arbitration process referred to in Appendix A, Section 22.10(c)
shall take place in [London], shall be administered by [the London
Court of International Arbitration] and shall be conducted in the
English language, with appropriate arrangements made for the
translation of any oral testimony.

(e) The Party in whose favor the Legal Dispute is resolved may request the
enforcement of the arbitration award before any court of competent
jurisdiction if the other Party does not comply with what is resolved.

(f) Each Party agrees that service of process in any action, suit or
proceeding referred to in this Appendix A, Section 22.10 shall be
deemed in every respect effective service of process upon it if sent to it
at the address for notice purposes pursuant to the provisions of the
Agreement. The arbitrators shall apply principles of legal privileges,
such as those involving the confidentiality of communications between
a lawyer and a client. The arbitrators shall render any monetary award
in Dollars, with interest calculated at the Interest Rate thereon and are
authorized to award costs and attorneys’ fees or allocate them between
the Parties. The Parties waive any defense based on sovereignty,
including immunity to arbitration, immunity to judicial proceedings to
enforce or to aid any such arbitration, and immunity to enforcement
and execution of the award or any judgment entered thereon.

(g) Each of the Parties, together with their Affiliates, as relevant, shall
appoint one arbitrator, within thirty (30) days of receipt of notice of the
commencement of the arbitration, and the two arbitrators so appointed
shall select the presiding arbitrator within thirty (30) days of their
nomination. If either Party does not appoint an arbitrator as specified
in the immediately preceding sentence or if the Party-appointed
arbitrators fail to agree on the presiding arbitrator within thirty (30)
days of their nomination, then [the London Court of International
Arbitration] shall appoint such arbitrator.

(h) A majority of the arbitrators may grant interim measures including


injunctions, attachments and conservation orders in appropriate
circumstances, which measures the Parties agree may be immediately
enforced by the arbitrators or by court order. Hearings on requests for
interim measures may be held in person, by telephone or by video
conference, and requests for relief, responses, briefs or memorials may
be sent to, and orders or awards received from, the arbitrators by
facsimile or other similar means which include a confirmation of
delivery. Notwithstanding the requirements for negotiation between
the Parties, prior to the constitution of the arbitration tribunal and
thereafter as necessary to enforce the arbitrators’ rulings or in the
absence of the jurisdiction of the arbitrators to rule on interim
measures in a given jurisdiction, either Party may apply to a court for
interim measures, and the Parties agree that seeking and obtaining such
measures shall not waive the right to arbitration.

Appendix A- 47
22.11 Waiver of Immunity

(a) Each Party hereby irrevocably consents to and waives any objection
which it may now or hereafter have to the laying of venue of any
proceeding relating to enforcement of the arbitration provisions, or any
award thereunder brought in the courts specified, and further
irrevocably waives, to the full extent it may effectively do so, the
defense of an inconvenient forum to the maintenance of any such
proceeding in such courts.

(b) To the extent that a Party or any of its revenues, assets or properties
shall be entitled, with respect to any proceeding relating to
enforcement of the arbitration provisions, or any award thereunder at
any time brought against such Party or any of its revenues, assets or
properties, to any sovereign or other immunity from suit, from
jurisdiction, from attachment prior to judgment, from attachment in aid
of execution of judgment, from execution of a judgment or from any
other legal or judicial process or remedy, and to the extent that in any
jurisdiction there shall be attributed such an immunity, such Party
irrevocably agrees not to claim and irrevocably waives such immunity
to the full extent permitted by the laws of such jurisdiction (including,
without limitation, the Foreign Sovereign Immunities Act 1976 of the
United States).

22.12 Counterparts

The Agreement may be executed and delivered (including by facsimile


transmission) in one or more counterparts, all of which shall be considered one
and the same agreement and shall become effective when one or more
counterparts have been signed by each Party and delivered to the other Party,
it being understood that both Parties need not sign the same counterpart.

22.13 Binding Effect

The Agreement shall be binding upon and inure solely to the benefit of each
Party and their successors, assigns and transferees, and, notwithstanding the
Contracts (Rights of Third Parties) Act 1999, nothing in the Agreement,
express or implied, is intended to confer upon any other person (other than the
Indemnified Parties as provided in the Agreement) any rights or remedies of
any nature whatsoever under or by reason of the Agreement.

22.14 Survival

Except as expressly otherwise provided in the Agreement, all covenants,


indemnities, representations, warranties, acknowledgments and agreements in
the Agreement shall survive and not be affected by termination of the
Agreement or completion of the Services.

Appendix A- 48
APPENDIX B
SCOPE OF SERVICES

THE DETAILED DESCRIPTIONS OF THE SCOPE OF SERVICES TO BE ADDED


LATER ACCORDING TO TENDER SECTION 3_ITT_ TECHNICAL DOCUMENTS

Appendix B- 1
APPENDIX C
TARGET SCHEDULE

[INSERT TARGET SCHEDULE, INCLUDING DESIGNATION OF KEY MILESTONES]

Appendix C- 1
APPENDIX D
CONTRACT PRICE AND PAYMENT SCHEDULE

Part A
Contract Price

Appendix D- 1
Part B
Payment Schedule

Contractor shall submit to Company monthly invoices for the Services performed by
Contractor and satisfactorily accepted by Company based on the monthly Operation
Reports issued.

Payment shall be made by Company according to Article IX (PAYMENTS) in


Appendix A.

All payments under this Agreement shall be subject to tax deductions as per tax laws
applicable in the Republic of Iraq.

Company shall withhold 10% of each invoice as Retention and shall pay the
remaining amount of the Retention upon Contractor submit all necessary completion
report satisfactorily accepted by Company.

Company shall pay the Contract Price on a monthly basis after the Services have
been completed and the Contractor provide Social Security Clearance Letter from the
Social Security Department of the Republic of Iraq local employees. The Company
reserves the rights to withhold any payment under this Agreement if the social
security clearance letter has not been provided by the Contractor.

Company Bank Account Details:


Company Name: CNOOC Iraq Limited
Bank Name: Citibank N.A., Dubai, UAE
Bank Address: PO BOX 749, Oud Metha Road, Al Wasl Branch, Dubai, U.A.E
SWIFT CODE: CITIAEAD
IBAN: AE940211000000100745011

For payment invoice please submit directly to:


Ms. Bettina Coppage
Tel: 00971-4-2108173 Email: BettinaCoppage@cnoociraq.com
Address: Room 3100, 7WB, Dubai Airport Free-zone, P.O. Box 54799, Dubai, United Arab
Emirates

Mr. Tamer Nawwar


Tel: 00971-4-2108160 Email: TamerNawwar@cnoociraq.com
Address: Room 3100, 7WB, Dubai Airport Free-zone, P.O. Box 54799, Dubai, United Arab
Emirates
Contractor Bank Account Details:
Title of Beneficiary’s Bank Account :
Name of Beneficiary’s Bank :
Address of Beneficiary’s Bank:
SWIFT/SORTING CODE :
Name of Intermediary Bank :
Name of Intermediary Bank Branch :
Address of Intermediary Bank Branch :
SWIFT/SORTING CODE :

Appendix D- 2
Part C

Shipping Documents Required


For Customs Clearance and Levy Exemption

In order to facilitate the procession of shipping documents for customs clearance and duty
exemption, Contractor are advised to making shipping documents following below
mentioned.

Attachment 1: Shipping Documents for Customs Clearance and Levy Exemption Work.
Attachment 2: Third Party Inspection Companies.
Attachment 3: Consignee & Notify Party & Shipping Marks.

Appendix D- 3
Attachment 1: Shipping Documents for Customs Clearance and Levy Exemption Work

S/N Document Description Original Copy Notes

Bill of
3 3 N/A
Lading
1 Waybill
Air
Waybill
3 0 N/A
2 Certificate of Insurance 1 2 N/A
4 English Version + 4 Arabic Version, Harmonized System Code
3 Packing List 4 0
(H.S Code)
Four (4) English Version Stamped + Four(4) Arabic Version
St
At Leastd One (1) English Version must be legalized by local Iraq
Embassy in either the exporting or the original country. But the
country should be the same as mentioned in CoO.
4 Commercial Invoice 4 0 Intercoms ® 2010 and term of trade should be clearly showed on
the invoice
Required to show: TSC/MISSAN/2010, CNOOC IRAQ LTD
Contract No: XXX, Harmonized System Code (H.S Code) for all
Materials & Equipment
Import Type : PERMANENT IMPORT

Version: English
Option 1:
If there is a clear requirement of origin country for cargo in the
technical parts of ITT or Contract template, One (1) original must
be legalized by local Iraq embassy in the country of origin.
Option 2:
If there is no requirement of origin country for cargo in the
technical parts of ITT or Contract template,One (1) original
5 Certificate of Origin 1 2 must be legalized by local Iraq embassy in the exporting(or
original) country.
The certificate of origin should include all necessary information
about goods (Type, producing company, production place,
exporting company, beneficiary party & the shipping company)

Required to show: Commercial invoice No. and Issuing date,


Harmonized System Code (H.S Code) for all Materials &
Equipment
Third Party Inspection As per the ITT & Contract’s Requirement. (English version), BV
6 1 1
Certificate is preferred.
If the cargo belong to Chemical Materials、Radioactive
Import Permit Equipment and Other Special Materials, the Import Permit by
7 1 0
Others if any the Iraqi related authority departments of government before
shipping should be applied.
Noted:

1: CI and COO have to be legalized in the same country.


2: Legalization from neighboring country is also accepted if the exporting country or the
original country has no Iraqi Embassy.
3: The copy of whole set original shipping documents and released permit from destination
port of Iraq should be submitted to CNOOC IRAQ LTD before payment.

Appendix D- 4
SPECIAL REQUIREMENT FOR NOTIFICATION

If any concern, please do not hesitate to contact:


For customs clearance in Iraq oilfield jobsite:
Mr. MohammedAbduljaleel / Mr. He Xiaoming
Tel.: +86 10 84527122 ext. 76211 / 76213
Email: MohammedAbduljaleel@cmitfod.com / hexm@cnoociraq.com

Attachment 2: Third Party Inspection Companies:

S/N TPI Companies S/N TPI Companies

1 Lloyd’s Register EMA 4 TÜV Rheinland Middle East FZE

2 Bureau Veritas 5 DNV

3 Intertek Group PLC

Attachment 3: Consignee & Notify Party & Shipping Marks

Missan Oil Company / CNOOC Iraq Ltd (Contractor of MOC)


Consignee Add: Buzurgan Terminal, Buzurgan, Missan Governorate, Iraq.
(Permanent import) CTC: Mr. Mohammed A Jaleel Mobile:009647830539994/009647801019994
Email address: MohammedAbduljaleel@cmitfod.com

Mr. MoghdadEmadAhmed / Mr. Ahmed Jabbar Sharhan


Email: MoghdadEmadAhmed@cmitfod.com / AhmedJabbarSharhan@cmitfod.com
Notify Party
Mobile :009647830539994(009647801019994) / 009647832116411
From Missan Oil Company / CNOOC Iraq Ltd (Contractor of MOC)

TSC/MISSAN/2010
CNOOC IRAQ LIMITED CONTRACT NO.:
Invoice No.:
Port of Destination: Umm Qasr port (Sea Shipment) or Basra Airport(Air shipment)
Shipping Marks
Destination: Buzurgan Terminal, Iraq.
Name of goods:
Lot No.:
Manufacturer Name:

Appendix D- 5
APPENDIX E
FORM OF PERFORMANCE SECURITY

PERFORMANCE BOND

To ______________________________ (“Company”), [Insert address]

WHEREAS,

A. This bond (this “Bond”) is referring to the WORKOVER AND STIMULATION


OPERATIONS SERVICES AGREEMENT dated ______________ (the
“Agreement”) executed by and between _________________ (the “Contractor”)
and Company. Any capitalized term used but not defined herein shall have the
meaning set forth in the Agreement.

B. Company has required the Contractor to furnish a bond in the form and tenor of this
instrument, conditioned upon the faithful employment, for the purpose of the
Agreement, of said monies.

C. This Bond is given to guarantee the performance of Contractor under the Agreement
and to hold Company harmless against any and all losses, which may result from the
failure of the Contractor to faithfully perform the Agreement and pay in accordance
with the terms and conditions of the Agreement any amount owing thereunder up to
the Maximum Draw Amount (as defined below).

NOW, we _______________, an insurance company incorporated in _______ as a


corporation with a capital of _______________, whose registered office is located at
_____________, registered with ________________ under the number of _______________
(the “Guarantor”) hereby as primary obligor unconditionally and irrevocably guarantee as
follows:

1. The Guarantor shall pay to Company on first written demand, in the manner described
in 2 below, without proof or condition and without requiring any statement of breach,
up to and not exceeding the sum of $_____________ (the “Maximum Draw
Amount”), notwithstanding any contest or protest by the Contractor or by the
Guarantor or any other third party. Upon receipt by Guarantor of a written notice
signed by authorized representatives of Company and Contractor, respectively, that
Services Completion has occurred, the Maximum Draw Amount under this Bond shall
be reduced to $_____________.

2. Company may call upon this Bond for the whole or part of the Maximum Draw
Amount and may make any number of calls up to the Maximum Draw Amount. We
undertake to pay you the claimed amount, within seven (7) banking business days
upon receipt of your written demand stating the effect and aspect of the failure of
performance by the applicant. The transfer of the claimed amount shall be effected
free of any charges and deductions in favor of the account indicated by Company.

Appendix E- 1
3. The Guarantor shall not be discharged or released from its obligations under this
Bond by any arrangement between the Contractor and Company or by any alteration
in the obligations of the Contractor or by any forbearance whether as to payment,
time, performance or otherwise, or any change in the name or constitution of
Company.

4. This Bond shall remain in force and effect until the earlier of (a) 24 (Twenty Four)
months from the date hereof (the “Expiry Date”), and (b) receipt by Guarantor of a
notice signed by an authorized representative of Contractor and Company stating that
the Warranty Period has ended.

5. If Guarantor has not received the notice referred to in Section 4(b) and if Contractor
has not extended the Expiry Date at least thirty (30) days prior to the Expiry Date,
then Company shall be entitled to draw the undrawn balance of this Bond by delivery
of a draw certificate referencing this paragraph 5.

6. The laws of England and Wales shall govern the interpretation, construction,
enforceability, legality and validity of this Bond, and all disputes arising hereunder or
in any manner related hereto. This Bond shall be subject to the Uniform Rules for
Demand Guarantees, published as number 758 by the International Chamber of
Commerce, except as stated above. The Guarantor hereby submits to the exclusive
jurisdiction of the courts of England with respect to any action, suit or proceeding
arising under, or in connection with, this Bond.

Given under our hand the date first above mentioned.

Signed by the
Guarantor :……………………………………….

Name :………………………………………
Designation :……………………………………….
Guarantor’s Seal :……………………………………….

Witnessed By:
Name :……………………………………….
Designation :……………………………………….
Company’s Seal :………………………………………

Appendix E- 2
Exhibit A to Form of Performance Bond

[COMPANY]

DRAW CERTIFICATE

The undersigned, an authorized representative of Company, a


__________________________, hereby certifies as follows (capitalized terms used herein
but not defined shall have the meanings set forth in the WORKOVER AND STIMULATION
OPERATIONS SERVICES AGREEMENT dated ___________ (the “Agreement”), by and
between __________________ and __________________:

Company is entitled to draw, and hereby requests immediate payment of,


US$____________________ in immediately available funds by wire transfer to the following
account:

_________________________________
_________________________________
_________________________________

Executed on this ___ day of ________, 201_

[COMPANY]

By:_____________________________
Name:__________________________
Title:___________________________

Appendix E- 3
Form of Parent Guaranty

_______, 201__

[Company Name]

Re: WORKOVER AND STIMULATION OPERATIONS SERVICES


AGREEMENT dated ____________ (the “Agreement”) by and between _______________
(“Contractor”), and ___________________ (“Company”).

Gentlemen:

1. This Guaranty (the “Guaranty”) is being given for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and in
connection with the Agreement. The undersigned (“Guarantor”) hereby acknowledges that
Contractor is an affiliate of Guarantor and that Guarantor reasonably expects to receive a
benefit from the Agreement and from the issuance of this Guaranty. All capitalized terms
used herein and not defined herein shall have the meaning set forth in the Agreement.

2. Guarantor hereby, to the extent hereinafter provided, irrevocably and


unconditionally guarantees to Company, and its successors and assigns, the timely payment
and performance by Contractor of all obligations under the Agreement and under all
documents and instruments contemplated to be executed pursuant to the Agreement (all such
obligations arising under the Agreement or such other documents or instruments are
hereinafter collectively referred to as the “Guaranteed Obligations”), provided notice of the
claim hereunder is given in the period of [●] days after Services Completion. This Guaranty
is a guaranty of performance and not merely of payment. If Contractor defaults in the
performance of its obligations under the Agreement, then Company may give written notice
to Guarantor whereupon Guarantor shall immediately pay to Company the amounts or
perform the matters in default.

3. Notwithstanding anything in this Guaranty to the contrary, the maximum


aggregate liability of Guarantor payable in connection with the Guaranteed Obligations shall
be __% of the Contract Price. No satisfaction of Contractor’s obligations under the
Agreement from any source (including any performance bond issued in favor of Company
under the Agreement) shall reduce or be credited toward the satisfaction of Guarantor’s
liability under this Guaranty, and the liability of Guarantor hereunder may be satisfied only
by, subject to Paragraph 7 hereof, payments by Guarantor pursuant to this Guaranty.

4. Guarantor hereby represents and warrants that:

(a) It is a [corporation], duly formed, validly existing, and in good standing under
the laws of _______________, and has full power and authority to own its property and to
carry on its business as now conducted.

Appendix E- 4
(b) It has full power and authority to execute this Guaranty and to carry out its
obligations hereunder, and this Guaranty has been duly authorized by all requisite corporate
action on its part. This Guaranty constitutes a valid and legally binding obligation of
Guarantor, enforceable against it in accordance with its terms.

(c) Guarantor’s execution and performance of this Guaranty and the transactions
contemplated hereby do not constitute a breach of any term or provision of, or a default
under, (i) any contract or agreement to which it or any of its affiliates is a party or by which it
or any of its affiliates or its or their property is bound, (ii) its organizational documents, or
(iii) any Applicable Law, which breach would have a material adverse effect on its ability to
perform its obligations hereunder.

5. As soon as available and in any event within 130 Business Days after the end
of each fiscal year of the Guarantor, the Guarantor shall furnish a consolidated balance sheet
of the Guarantor and its consolidated subsidiaries as of the end of such fiscal year and a
related consolidated statements of income for such fiscal year, which financial statements
shall have been audited and reported on in an acceptable manner by an accounting firm of
recognized international standing. In addition, as soon as available and in any event within
60 Business Days after the end of each of the first three quarters of each fiscal year of the
Guarantor, the Guarantor shall furnish the amount of sales of Guarantor and its subsidiaries
for such quarter and the assets and liabilities of Guarantor existing as of the end of such
quarter (set forth in reasonable detail), which financial statements or information shall have
been certified by an officer of the Guarantor as having been accurately prepared in
accordance with all applicable accounting standards.

6. The obligations of Guarantor under this Guaranty shall not be released,


discharged, limited, or reduced by: (a) any limitation of power or disability on the part of
Contractor; (b) any lack of authority of the person executing the Agreement on behalf of
Contractor; (c) any failure of Contractor to carry out any of its obligations under the
Agreement; (d) the insolvency, bankruptcy, liquidation or dissolution of Contractor; (e) any
amendment or modification of the Agreement or the Guaranteed Obligations by Contractor
and Company; (f) anything done, suffered, or permitted by Company in connection with any
duties or liabilities of Contractor under the Agreement; (g) the granting by Company of any
time, renewal, extension, release waiver or discharge to Contractor, or the accepting of any
compromise by Company; or (h) any other circumstances which might otherwise constitute a
legal or equitable discharge of a performance guarantor, including the absence of any action
to enforce the Agreement or any judgment against Contractor. Notwithstanding anything in
this Guaranty to the contrary, if the obligations of Contractor under the Agreement are
amended by any agreement between Company and Contractor, then Guarantor shall
guarantee such amended Guaranteed Obligation as so amended.

7. Guarantor shall not make or claim any set-off or counterclaim against amounts
payable hereunder on account of any liability or obligation of Company to Guarantor or any
affiliate of Guarantor other than any liability or obligation Company may have to Contractor
under the Agreement. If Company is required to refund to Contractor (as a result of
Contractor’s bankruptcy or insolvency) any amount previously paid by Contractor in
connection with a Guaranteed Obligation, the obligation of Guarantor under the Agreement
with respect to such amount shall be deemed to be reinstated and shall constitute a
Guaranteed Obligation. Guarantor waives notice of acceptance of this instrument by
Company.

Appendix E- 5
8. This Guaranty may be enforced as to one or more breaches either separately or
cumulatively. This Guaranty constitutes the entire agreement between Company and
Guarantor concerning the subject matter hereof.

9. Without prejudice to the conditions of the Company exercising any right, remedy
or power hereunder (including the giving of timely notice), no failure on the part of the
Company to exercise, and no delay in exercising, any right, remedy or power hereunder shall
operate as a waiver thereof, nor shall any single or particular exercise by the Company of any
right, remedy or power hereunder preclude any other or future exercise of any other right,
remedy or power.

10. If Company commences any legal proceeding against Guarantor to collect any
amount due under this Guaranty or enforce the performance of any obligation due under this
Guaranty, and such legal proceeding results in a monetary judgment or an order requiring
specific performance, then Guarantor shall pay to Company the reasonable costs and
expenses (including reasonable attorneys’ fees and court costs) incurred by Company in
obtaining and enforcing such judgment or order.

11. The laws of England and Wales shall govern the interpretation, construction,
enforceability, legality and validity of this Bond, and all disputes arising hereunder or in any
manner related hereto. This Guaranty shall be subject to the Uniform Rules for Demand
Guarantees, published as number 758 by the International Chamber of Commerce, except as
stated above. The Guarantor hereby submits to the exclusive jurisdiction of the courts of
England with respect to any action, suit or proceeding arising under, or in connection with,
this Guaranty.

12. The Guarantor shall be subrogated to all rights of Contractor against Company
in respect of any obligations performed or amounts paid by the Guarantor pursuant to the
provisions of this Guaranty.

13. All notices and other communications required or permitted to be given


hereunder (a) shall be in writing; (b) shall be delivered in person, by express courier, or by
facsimile transmission; (c) shall be deemed delivered (i) in the case of delivery in person or
by courier, when actually received by the recipient party and (ii) in the case of delivery by
facsimile transmission, when such transmission is completed; and (d) shall be delivered to the
recipient party at its address set forth below, or at such other address as such party shall have
designated to the other party on ten (10) Business Days prior notice:

To Company:
Attn:
Fax:

To Guarantor:
Attn:
Fax:

Appendix E- 6
14. This Guaranty and the rights and benefits of Company hereunder may be
assigned to any affiliate of Company without the consent of Contractor or Guarantor.

Executed as of the date first above written.

[CONTRACTOR]

By:
Name:
Title: _______________________________

Appendix E- 7
APPENDIX F
CONTRACTOR PERMITS

[INSERT THE LIST OF PERMITS TO BE PROCURED BY CONTRACTOR IN


ACCORDANCE WITH APPLICABLE LAW AND INPUT FROM LOCAL COUNSEL]

Appendix F- 1
APPENDIX G
FORM OF SERVICES COMPLETION CERTIFICATE

Services Completion Certificate

All capitalized terms not otherwise defined in this certificate shall have the meanings set forth
in the WORKOVER AND STIMULATION OPERATIONS SERVICES Agreement by and
between [________________] and [________________] dated as of ______, 201_ (the
“Agreement”).

Contractor hereby certifies that all conditions and requirements for Services Completion were
achieved and satisfied on [DATE], in accordance with the terms and conditions of the
Agreement. Without limiting the generality of the foregoing certification, Contractor
additionally certifies that:

(a) all Services have been fully and completely performed in accordance with the
Agreement, including Demobilization;

(b) any Delay Liquidated Damages have been paid;

(c) Contractor has provided Company all documentation required by the scope of
Services;

(d) Contractor has provided the Final Release; and

(e) no Contractor Default has occurred or is continuing.

[CONTRACTOR]

By:
Name:
Title:
Date:

Appendix G- 1
APPENDIX H
ITEMS

CONTRACTOR ITEMS

CONTRACTOR’S EQUIPMENT AND EQUIPMENT LIST

Appendix H- 1
COMPANY ITEMS

[INSERT COMPANY ITEMS]

Appendix H- 2
APPENDIX I
COMPANY PERMITS

Appendix I - 1
APPENDIX J
CONTRACTOR REQUIRED INSURANCE

Contractor shall carry and maintain the insurance coverage in full force for the duration of the
Agreement, and the following insurance shall be arranged by Contractor:

1. Workmen's Compensation and/or Employer's Liability Insurance and/or Personal Accident


Insurance or similar statutory social insurance, as required by Applicable Iraqi Laws and
which may be applicable and/or accidental death or injury insurance, covering all
Contractors’ Personnel engaged in accomplishing the Services. The Employer’s Liability
Policy shall provide an indemnity based on the statutory limit for any one occurrence.

2. Cargo Transportation Insurance with insured limit of no less than cargo full value.

3. Comprehensive General Third Party Liability Insurance or Public Liability Insurance


covering all operations hereunder against bodily injury, death, loss of property or property
damage to third parties with minimum limits of USD5 million(USD5,000,000) for any one
occurrence. Such insurance shall include contractual liability coverage (to the extent not
covered above).

4. Motor Vehicles Liability Insurance for owned, non-owned, or hired automobiles covering
the use of such vehicles in accordance with Iraqi applicable law.

5. “All Risks” Property Damage Insurance to cover the full replacement value of
CONTRACTOR's and/or its SUB-CONTRACTOR‘s or SUB-CONTRACTORs’ equipment,
used, owned, leased, chartered or hired by CONTRACTOR and/or its SUB-
CONTRACTOR(s) including, but not limited to losses occurring at the WORKSITE(s)
and/or in transit to or from WORKSITE(s) and/or between WORKSITEs.

6. Any other insurance which may be relevant and/or which may be required by any
Applicable Laws to which Contractor and/or Subcontractors are subject.

Appendix J - 1
APPENDIX K
CONTRACTOR ORGANIZATION CHART

[INSERT A CHART OF CONTRACTOR’S STAFFING POSITIONS FOR THE


SERVICES]

Appendix K - 1
APPENDIX L
FORM OF LIEN RELEASE

[CONTRACTOR’S LETTERHEAD]

[DATE]

Upon payment of the invoice dated [______] and the payment of all other amounts due and
owing to the undersigned (“Contractor”), Contractor hereby releases any and all claims of
Contractor against ______________________ (“Company”) (and its Affiliates,
shareholders, agents, representatives and employees) arising under or in any way connected
with payments due and owing with respect to the Items delivered or installed, or the Services
performed (except that this release shall not, unless the Contractor and Company agree in
writing otherwise, release Company from any claims for indemnification existing as of the
date hereof or hereafter arising under Appendix A, Section 18.1(b) of the Agreement)
through the Services Completion Date.

All capitalized terms used herein but not defined shall have the meaning set forth in the
WORKOVER AND STIMULATION OPERATIONS SERVICES AGREEMENT executed
by and between Contractor and Company on _____________, 201__.

[CONTRACTOR]

By:_________________________________
Name:______________________________
Title:_______________________________

Appendix L - 1
APPENDIX M
EXTRA SERVICE RATES

PART A
Labor Rates

Appendix M - 1
APPENDIX M
EXTRA SERVICE RATES

PART B
Contractor Items Rates

Appendix M - 2
APPENDIX N

HEALTH, SAFETY, SECURITY AND ENVIRONMENTAL REQUIREMENTS

1. General Requirements

a) Contractor shall comply in all respects with Company health, safety, security and
environmental ("HSSE") requirements, all Applicable Laws, Good Industry Practices
and other applicable codes and standards.

b) Contractor shall provide its HSSE management system to Company. And Contractor
shall fully implemented HSSE management system which is accepted by Company.

c) Contractor shall independently obtain all permits, certificates and licenses required
for the Services at its sole cost, risk and expense.

d) Contractor shall provide Company with the name of the Contractor's representative
who shall have responsibility for HSSE affairs, and the enforcement of the applicable
codes and standards at each work site.

e) Contractor shall submit HSE weekly report to Company.

f) Contractor and sub-contractor shall provide personnel security information to


Company.

2. HSSE Details

2.1 Health/Hygiene/Medical

a) Contractor shall be fully and solely responsible for the health, industrial hygiene and
medical treatment of its personnel and shall provide appropriate numbers of medical
professionals on each well site.

b) Contractor shall ensure that all its personnel and Subcontractors' personnel are
medically fit to perform their work.

c) Contractor shall train and ensure that its personnel and Subcontractors' personnel
shall fully understand all occupational health hazards involved in their work and shall
monitor all personnel to ensure that such health hazards are dealt with and minimized
to the satisfaction of Company.

2.2 Safety

a) Contractor and Company shall agree that safety is of paramount importance in the
performance of the Work and that Contractor is fully and solely responsible for the
safety of the Work, Services, its personnel and property and ensuring that all
operations are performed in a safe manner.

b) Contractor shall fully implement its safety operation procedures, regulations and all

Appendix N- 1
applicable Company safety requirements.

c) Contractor shall ensure that all personnel and Subcontractor's personnel have been
given all necessary instructions and HSSE training according to HSSE laws,
regulations and Company HSSE requirements, and shall provide qualification
certificate(s) and records if required by Company.

d) Contractor shall ensure that its personnel and the personnel of its Subcontractors do
not use, possess, distribute, or sell alcohol, illegal drugs and any other controlled
substances while on Company premises or while engaged in performing the Services
for Company.

e) Contractor shall supply its personnel and Subcontractors' personnel with adequate
protective clothing and equipment as required in connection with the safe
performance of the Work. Such clothing and equipment shall be maintained in good
condition and shall be used on all relevant occasions at all times.

f) Contractor shall report to Company all hazards and HSSE violations which occur
during performance of the Work and all corrective measures taken, regardless of
whether such hazards or violations are discovered by Contractor itself or by Company.

2.3 Security

a) Contractor shall be solely responsible for the security of its personnel and property
including those of its Subcontractors. Contractor shall be solely responsible for all
security related matters relating to its own personnel and property, such as obtaining
required permissions and licenses.

b) Contractor shall be solely responsible for providing and implementing a security plan
to ensure the security of all personnel and locations where the Work is performed or
where Technical Data, materials (including harmful materials), equipment and other
items relating to the Work are maintained.

c) Contractor personnel shall be fully trained on relevant security knowledge and


awareness prior to performing any work.

d) Contractor shall fully comply with Company’s requirements on camp safety, travel,
work in border areas, precautions relating to mines & UXO and any other regulations
and procedures.

e) Contractor shall provide Company with the Contractor’s personnel information, such
as name, sex, age, position and nationality and the name of Contractor's
representative who shall have responsibility for security.

2.4 Environment

a) Throughout performance of the Services, Contractor and sub-Contractor shall


conduct all operations in such a way as to minimize any impact upon the natural
environment, and shall ensure full compliance with all Applicable Laws, regulations
and rules relating to the environment.

Appendix N- 2
b) Contractor and sub-Contractor shall promptly notify Company and respond to all
environmental incidents related to the Services.

c) Gas, waste water discharge and solid wastes disposal shall comply with Company
HSSE requirements. Industrial noise and dust shall be properly reduced either by
technical or by protective methods.

d) Contractor and sub-Contractor r shall take full responsibility for and shall indemnify
Company in respect of all claims, damage, costs and penalties relating to any
environmental damage or loss or non-compliance with any Applicable Laws or
regulations arising from the Work or Services and shall be solely responsible for any
related cost, risk and expense.

e) Contractor shall submit Waste Management Plan to Company for approval before starting
the Drilling operation for each well.

2.5 Emergency & Incident/Accident

a) Contractor shall be fully and solely responsible for all accidents, injuries, near-misses
and property loss arising from the Services.

b) Contractor shall establish an emergency plan for the Work, and shall actively perform
and participate in emergency drills.

c) In the event of any emergency endangering life or property, Contractor shall take
such action as may be necessary to prevent, avoid or mitigate injury, damage or loss
and shall promptly notify Company of any emergency and the actions taken by
Contractor. If Contractor fails to take such actions, Company, before notifying
Contractor, may (but is not obligated to) take reasonable precautions to prevent,
avoid, or mitigate injury, damage or loss, but such actions by Company or
Company’s failure to do so shall not limit or affect Contractor’s obligations under
this Agreement. Contractor shall reimburse Company for the costs incurred by
Company in taking such activities.

d) Contractor shall immediately report to Company the occurrence of any incident or


accident during the Work, including near-misses.

e) Contractor shall at its sole cost and expense investigates and implements corrective
measures following any accident, injury or near-miss relating to the Services.

f) All documents relating to incidents or accidents shall be submitted to Company.

3. Miscellaneous

a) Contractor shall perform its obligations in a professional, competent and diligent


manner in accordance with the HSSE terms of the Agreement, Good Industry
Practice, general International Practices and all applicable standards relating to the

Appendix N- 3
Services.

b) No firearms, ammunition, or deadly weapons are permitted on Company premises.

c) Any actions of physical violence, threats, intimidation, harassment, or coercion shall


be strictly prohibited in Company’s camp and worksites.

d) Upon completion of the Work, Company's representative and Contractor shall inspect
the final/completed Work site to determine that all hazards, contaminated areas and
wastes related to the Work site have been cleaned or removed in accordance with
Company HSSE requirements.

e) Contractor shall provide Company with all related HSSE reports and documents as
reasonably requested by Company and archive full and detailed HSSE reports and
documents related to the Services for audit or reference.

f) Company may refuse any Contractor personnel access to Company’s camps and
worksites if such personnel do not comply with Company standards for safe and good
workmanship due to attitude, lack of skill or insufficient training or experience.

g) Company's representatives and nominees shall have the right to access at any time
any Contractor facility, equipment, personnel or records to inspect or audit any aspect
of the Contractor's operations relevant to safety and security.

h) Company may require Contractor to stop work under this Agreement or remove
Contractor personnel from Company’s premises at any time where it identifies an
imminent hazard to people, property or the environment in the work procedures or
work environment, or where Contractor is in violation of any Applicable Laws,
regulations, Company HSSE policies or procedures or any applicable HSSE
standards.

4. Well Site Minimum Security Requirement – Contractor

Prior to any well sites operations commencing the required security measures provided by
the well site Contractor, should be in place, tested and operational. Over and above the
well site preparation requirements, these measures include, but not limited to:

a. Lights

i. Sufficient perimeter lights need to be installed to support both the visibility of the
guard force (outward lighting) as well as provide sufficient light for the CCTV
system to be effective. Each lamp must be at least 400 watts (Halogen type).

ii. Sufficient lights must be erected to provide overlapping coverage of the rig
surroundings and approach routes.

iii. The office and living areas should have sufficient light to enable the guard force
to observe when conducting inner patrols.

Appendix N- 4
iv. The main entrance should have sufficient light for the guard force to do visual
search of vehicles and personnel.

b. CCTV. The following areas need to be covered by CCTV:

i. Perimeter fence including the emergency exit.

ii. Main entrance gate and approach route.

iii. Office and living areas of well site personnel.

iv. CCTV staff must monitor the CCTV 24/7.

c. Access Point or Vehicle Checkpoint. The vehicle checkpoint will allow access to one
vehicle at a time and consist of the following:

i. A guard room with office.

ii. A Jersey barrier constructed defendable position to provide cover to guards in


event of an attack.

iii. A boom gate.

iv. A Jersey barrier chicane to slow vehicles approaching the main entrance.

v. A set of hand operated caltrops (a device used to blow out tyres).

vi. A blast wall constructed of 4m high T-walls must be erected between the parking
area and the main entrance.

Figure 2 : 4m T-Wall

Appendix N- 5
d. Duck and Cover Bunkers

i. Duck and cover bunkers sufficient to accommodate all staff on site must be
deployed for immediate cover against direct and indirect enemy fire.

ii. Duck and cover bunkers must be placed so that it is easily accessible and must be
sufficient to accommodate all personnel.

iii. Bunkers dimension available on the local market will determine how many
people can be accommodated in each bunker.

iv. Open sides must be closed off with two 2m meter high T-walls. If the threat
justifies the openings on top must be covered to resist penetration of indirect fire.

Figure 3 : Duck and Cover Bunker

Appendix N- 6
Figure 4 : 2m T-Wall
e. Muster Points. Muster points are to be established for accountability checks. These
points are to be easily accessible, clearly marked and communicated with personnel.

f. Watch Towers

i. Two properly constructed watch towers should be constructed per well site.

ii. Towers must provide cover against small arms fire as well as the elements and
have power, AC and water.

iii. Internal lighting should not expose the guard to enemy fire. A red bulb of low
watts must be used.

iv. The height of the tower should be sufficient to enable the guard to do 360 degree
surveillance of the surrounding area.

v. Guards in towers must have radios to be in contact with the rig site protection
force.

vi. Towers must provide adequate protection from small arms fire (SAF). This shall
be achieved by the erection of sand bags to a minimum of 1.8 meter from the
deck or by permanently affixing hardened steel, 550 Brinell or greater to the
exterior of the tower, to protect the security guard.

vii. Tower must be fitted with air-conditioning.

g. Weapons Loading Bay. A weapon loading/unloading bay (clearing barrel) shall be


placed within 15 meters of the main entrance gate outside the perimeter fence. Below
figure provides a guideline of the construction of a weapon clearing barrel.

Appendix N- 7
Figure 5 : Clearing Barrel Design

Figure 6 : Clearing Barrel Lid Design


h. Alarm

i. An alarm system must be in place to alert well site personnel of the different
emergency situation.

ii. The alarm system should be sufficient to reach all locations on the well site
including during high winds and well site noise.

Appendix N- 8
iii. Alarm system should meet all the HSE requirements of Company.

i. Sun Shelters

i. Corrugated metal sheeting, timber and fittings in sufficient quantity to make sun
shelters must be constructed.

ii. Sun shelters should have a roof and be a minimum of 3m wide x 3m length. Side
walls must not obstruct the view of the guard when under the shelter.

j. Guard Force

i. Guard force must be managed by a registered PSC security services provider.

ii. A minimum of 6 armed guards need to be deployed for the protection of the well
site. A guard commander will supervise all guard activities on the well site.

iii. Guards must be armed with a Kalashnikov (AK47) with 2 magazines filled with
30 rounds each.

iv. Guards must have body armour and protective equipment.

v. Radios

1. Guard force must have VHF handheld radios for communication.

2. Guards must have radio communications with the security provider operations
room.

3. Radios are to be registered on the security clearance of the security provider.

4. A valid licence for the use of radios must be available from the GOI Minister
of Communications.

k. Emergency Exit

i. After deployment, the contractor will be responsible to fill up the ditch and break
the berm at the emergency exit, making the exit usable for emergency evacuation.

ii. The emergency exit must be guarded.

iii. Before demobilization after completion of operations at the well site, the
contractor will be responsible to resume the ditch and berm to the standard as
they were before deployment.

The condition of the ditch and berm, together with the keys of the main gate and the
emergency exit gate, will constitute part of the hand over inspection procedure.

Appendix N- 9
APPENDIX O

MODEL NOTIFICATION OF MOBILIZATION

Ref No. _________________ Dated:_______________

Pursuant to the WORKOVER AND STIMULATION OPERATIONS SERVICES


AGREEMENT with No.__________________________, dated _____ between
_____________ and ______________ (the “Agreement”),

Company and Contractor agree that Contractor shall provide _____________ Agreement
described below, subject to the terms and conditions of the above-mentioned Agreement, and
otherwise in accordance with the particulars contained in this NOTIFICATION OF
MOBILZATION
Contract No.:
Country: Operating Area: Services Location:

Mobilization Date: Description :

Description of the Services to be provided:

Rig, personnel and equipment description:

Identification of the Company Identification of the Contractor representative:


representative:

Other terms:
Pursuant to the Agreement, any intention to modify the terms of the Agreement must be
explicitly stated, with specific reference to individual terms of the Agreement to be modified or
amended.

Company and Contractor have executed this Service, in duplicate, with effect as of the date
written above, as evidenced by the following signatures:

Name of Company: CNOOC IRAQ LTD Name of Contractor:


Authorized person signature Authorized person signature:

By:______________________ By:______________________

Title:_____________________ Title:________________________

Appendix O- 1
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VENDOR REGISTRATION AND QUALIFICATION

FOR

CNOOC IRAQ PROJECT

WORKOVER AND STIMULATION OPERATION SERVICE

Submitted by: ………………………………………………

Date: October, 2017

Dubai, U.A.E.

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Instructions for Registration & Qualification


1. The Questionnaire of Vendor Registration & Qualification will be held by Contracts
& Procurement Department of CNOOC IRAQ Ltd.(“Company”), and will be made
available to project sponsors and applicant vendor on request .Vendors shall be
considered by Company based on its competency and availability to perform the
work/services and/or provide materials and equipment of the types and quantities
required for the operations of the Company.

2. All vendors should be aware of that qualification is part of the selection process; the
criteria applied during qualification should be consistent with the evaluation criteria
in the later bidding process.

3. *The key factors for the PQ is including the following, the failure to meet these
key factors will lead the prequalification process disqualified which will not
enter into the subsequent process for tender.
1) Scope of business,
2) Qualified and validated IADC certificate and ISO certificates.
3) List with the successful experience of similar projects in last 3 years.
4. Application for Vendor Registration and Qualification shall be made by completing
and submitting the questionnaire and required information. All questions listed here-
in-below must be answered and submitted by applicant vendor. If necessary,
additional sheets may be attached. Applicant vendor shall be obligated to provide
Registration and Qualification documents in accordance with international practice
as well. The applicant vendor may be disqualified provided the following:

1) it fails to provide Registration and Qualification documents in accordance with


international practice;
2) it fails to provide Registration and Qualification documents strictly following the
requirement of ITT;
3) It fails to submit the Registration and Qualification document on time.

5. Each sheet shall be duly signed by a person duly authorized to sign on behalf of the
applicant vendor.

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6. The qualification documents shall be prepared in the format of one hard copy and
one soft copy in a suitable storage device, and be sent/email to the following address
10 days before the Bid close date. Each mail size shall not exceed 7MB for
successfully delivery.

• And Attention: Mr. Chafik Benlamri / Mohamed Osman


• Tel: +964 7825060675 / +964-7822709464
• Email: chafikbenlamri@cmitfod.com / mohamedosman@cmitfod.com
• Address: Work Base, CNOOC Camp, Missan Oil Fields.
• Attention: Abubakr Ali Mohamed / Badreddine Larafi
• Tel: +964 781 080 8814
• Email: AbubakrAliMohamed@cmitfod.com / badreddinelarafi@cmitfod.com
• Address: Address: Work Base, CNOOC Camp, Missan Oil Fields

7. The submission date for the qualification documents is November 16th, 2017. (“PQ
closing date”), a soft copy of qualification documents shall be sent by email 10 days
before the Bid closing date. Failure to comply with the instruction in this Section
shall invalidate the applicant vendor’s qualification documents. Furthermore,
applicant vendor’s qqualification documents which are incomplete or vague shall not
be considered by Company.

8. In case discrepancies are found in the information submitted, the application shall be
considered unsatisfactory and the applicant vendor not eligible until such
discrepancies has been satisfactorily explained or resolved. Company will not enter
into any correspondence with applicants except to seek clarification when Company
deems it is necessary.

9. Should applicant vendor has any difficulty completing the document, please email
to chafikbenlamri@cmitfod.com / mohamedosman@cmitfod.com
/AbubakrAliMohamed@cmitfod.com / badreddinelarafi@cmitfod.com. The
registration and qualification document containing sixteen (16) sections below is
required to complete by the vendor.)

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Catalog:
Section1. Corporate Details
Section2. Premises Location, Offices and Office Facilities
Section3. Qualifications
Section4. Capability and Capacity
Section5. Organization and Key Personnel
Section6. Proposed Equipment
Section7. Knowledge and Experience
Section8. Commercial Matters
Section9. Subcontracting
Section10. HSE Records
Section11. Agent
Section12. Logistic
Section13. Workload
Section14. Legal Proceedings
Section15. Financial Status
Section16. Other Relevant Information or Data
Section 17. Questionnaires

Section1. Corporate Details


1.1 General Information
Company Name:
Registered Address:
Legal Representative:
Telephone:
Fax:
E-mail Address:
Contact Person:
Telephone:
Fax:
E-mail Address:
Web Site :

1.2 Registered Date:

1.3 Country of Registration:

1.4 Company Registration No. :


Please attach a copy of registration certificate of your company and a copy of

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company profile.)

1.5 If the vendor has no sufficient registered capital, please advise if you can provide
enough bank guarantee or parent company guarantee. (Yes or No).

1.6 Type of Company:

1.7 Company’s Principal Business

1.8 Organization structure of Company

It is required to provide the name of parent company, associate and subsidiary


companies etc.

Section2. Premises Location, Offices and Office Facilities

(Please include Iraqi premises for such information as well if applicable)

Section3. Qualifications

Please enclose a copy of the followings:


3.1 Quality Management System and manual
3.2 Certificates issued by relevant authorities for different callings

Section4. Capability and Capacity

(Please submit sufficient information to demonstrate the capability and capacity for
successfully undertaking the work.)

4.1 Management Introduction and operation plan of implementing project shall be specified
by tender, which shall be includes drilling rig, all the associated services, logistic, personnel,
HSE and others.
4.2 Equipment and facilities for implementation of the Contract shall be specified by tender,
which shall be includes drilling rig and all the associated services.

4.3 Technique for drilling service and all the associated technical services shall be specified
by tender.

4.4 The manpower resources of the tender, which shall include all personnel situations for
bidders, related personnel for drilling and all the associated services, they shall be specified
by bidders.

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Section5. Organization and Key Personnel

5.1 Please attach a copy of your company organization and HSSE management
organization Chart
5.2 Please present the organization chart and provide the resume of the key personnel
proposed for the work.

Section6. Proposed Equipment

(Submit the detail of proposed equipment.)


Item Specification Manufacture Qty Remark

Section7. Knowledge and Experience

7.1 Please state the related knowledge and experience for the service of your company,
especially for the work which has been carried out for the client in Iraq. the copy of
awarded contracts and/or POs of Vendors can be accepted as evidence of Vendor’s
experience;

7.2 Track Records for the last 3 years:


Well Type
Name Approximate Contract
Client’s Type of (Horizontal Duration
of Location Contract mode (Lump
Name Services well or of Service
Project Value Sum or daily)
others)

Remarks:

A. Only the drilling and associated services are required to provide in “Type of Services”
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column, please do not mentioned other projects beside of them, please clear whether
drilling or associated services for each record.
B. Please clear whether lump-sum mode or turkey mode for each record.
C. Please clear whether horizontal well drilled or not for each records, if yes, please
introduce the horizontal drilling situation, which shall include well depth, horizontal
length, technologies for directional and horizontal drilling, and so on.
D. The evidence for drilling and associated services is required to provide for each record.

Section8. Commercial Matters

Please provide the statement as to how to handle the commercial matters.

8.1 Iraqi Contents

According to the relevant Iraqi law and In order to support the IRAQ government’s
policy in promoting the usage of local content, please provide us the detail of your plan
for assuming obligation on the manpower employment/development and/or the usage of
local material/services and/or other relevant issue, and how many percentage ( %) of
contract value that will be considered to award locally in this regard.

8.2 Statements are required to show how the following issues are properly handled.
- local Tax, Local employment
- Importation and exportation if there is any
- Visas for entry into and exit from the country
- Work permit for personnel to be assigned for the service
- All other relevant formalities and procedures etc.

Section 9. Subcontracting

All vendors are required to provide us details of activities and type of work sub-
contracted, identifying the major sub-contractors and their location.
Sub-contractor Name:
Work Type:
Work Description:
Contact Person:
Position:
Telephone:

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Section10. HSE Records


QUALIFICATION Questionnaire Form for Potential Bidders(if applicable)

Answer Yes or
QUALIFICATION Evaluation Items
No
1. Leadership and Commitments
2. HSE Policy- policy documents and availability
3. Planning
Hazards and Effects Assessment
PPE
Drugs and Alcohol
Standards
HSE or Operation Manuals
4. Organization, Resources and Documentation
HSE communication and meeting programs
Staff HSE Training
Employee orientation and training program
Specialized training
5. Implementation and Operation
Equipment control and maintenance
Subcontractors
6. Inspection and Correction
Management and performance monitoring of work activities
Statutory notifiable incidents/dangerous occurrences and
improvement requirements and prohibition
HSE Performance records
Incident Investigation and reporting
Auditing
Note: The investigated company shall provide all the support documents together with
the above questionnaire form.

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Section11. Agent
Does your company have any Agent in Iraq? If yes, please describe the agreement with such
agent:
Company Name:
Registered Address:
Registered Date:
Company Registration No.:
Legal Representative:
Telephone:
Fax:
E-mail Address:
Contact Person:
Scope of Business:

Section12. Logistic
Please provide us your plan on how to manage and supply the materials and equipment if
operation commences in the area of Missan Oilfield and where to establish the logistic base
to support the operation?

Section13. Workload

Please submit information showing current workload/contract duration of your proposed


equipment involved in, as well as availability of resource for the work stated in this
document.

Section14. Legal Proceedings

Do you have any legal proceedings arising out of contractual matters over the past 5 years?
If yes, please give details.

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Section15. Financial Status

Please submit the Audited and signed finance information in English for the last continually
three years as follows:
15.1 Cash flow
15.2 Profits (before and after taxation)
15.3 Assets (tangible and intangible)
15.4 Audited finance reports
15.5 Tax registration certificate

Section 16. Other Relevant Information or Data

16.1 The record of the crime of bribery

For bidder registered inside China


The bidder registered inside China should query by itself the crime record of offering bribes
of the bidder company and its legal representative from procuratorate and provide the query
result covering the last twelve (12) months.

For bidder registered outside China.


The bidder registered outside China should query by itself the crime record of offering
bribes of the bidder company and its legal representative from its government authority and
provide the query result covering the last twelve (12) months, OR provide the statement in
attached format (STATEMENT Outside China Bidder (during Prequalification) ) signed by
its legal representative.

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16.2 The following vendor primary qualification list shall be completed.

Applicant Vendor
No. [Insert Applicant Vendor Entity Name]
Item

1 Registration Entity [Insert Name on Registration Certificate]

[Insert Country on Registration


2 Country of Registration
Certificate]

3 Registration Date [Insert Date on Registration Certificate]

4 Registration Valid Period [Insert Date on Registration Certificate]

[Insert Figure on Registration


5 Registered Capital (USD)
Certificate]

[Insert Description on Registration


6 Scope of Business
Certificate]

7 SOB Related to Project Choose: Yes/No

Nature of Vendor
8 Choose: Manufacturer/Agent
(applicable for materials)

Manufacturer
9 [Insert Name]
(applicable for agent)

Manufacturer Authorization
10 Choose: Yes/No
(applicable for agent)

11 Entity on Certificate (API) [Insert Name on Certificate]

12 Entity on Certificate (ISO) [Insert Name on Certificate]

[Insert Certificate Name] & [Insert


13 Entity on Certificate (Others)
Entity Name on Certificate]

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Attachment A:

STATEMENT (during Prequalification)


(For bidder registered outside China)

We, _____________________________ (bidder name), herein:


a) warrant that the Bidder and its legal representative have not made, offered or
authorised, and they have no criminal record or conviction in relation to the making,
offering or authorising of, any payments, gifts or other advantages, directly or
indirectly, to any Public Official in the last ten (10) years; and
b) covenant that the Bidder will not, and shall procure that its legal representative and
employees will not, make, offer, or authorise any such actions or things,
which may violate any anti-bribery laws including those in the Bidder’s place of
incorporation, principal place of business, or its ultimate parent company’s place of
incorporation or principal place of business (Anti-bribery Law).

For the purposes of this statement, a “Public Official” means (i) an elected or appointed
official, employee or agent of any governmental authority; (ii) an official of a political party;
or (iii) a candidate for public office; (iv) any other person so defined under the Anti-bribery
Law.

We shall indemnify CNOOC Iraq Limited and its affiliates against any damages, losses,
penalties, costs (including reasonable legal costs and attorneys’ fees) and liabilities arising
from or related to the events underlying our admission of allegations made by any
governmental authority or a final adjudication in connection with a violation of the above
anti-bribery laws.

_________________________________
Name and Signature of Legal Representative

For and on behalf of __________________________________


(the “Bidder”)

_________________________________
Date

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SECTION 17 Questionnaires
1. 贵司股东、监事、法人、董事、高管或者代理(联系人)的配偶,子女及其配偶,父母,兄弟姐妹

及其配偶、子女,配偶的父母、兄弟姐妹及其配偶是否在中海油系统工作?如有,请提供相关的详细

信息。

Is there any relatives(spouse, children and their spouses, parents, brothers/sisters and their spouse and

children, parent-in law, brothers/sisters in law and their spouses ) of your organization's Shareholders,

Supervisor,Legal Person, Directors, Senior Management or agent working in CNOOC? If any, please provide

the detailed information.

2. 贵司股东、监事、法人、董事、高管或者代理(联系人) 是否在中海油系统工作过?如有,请提供

上述人员的相关信息,包括姓名、身份证号、在中海油的供职单位及职务、离开中海油日期、加入贵

司的日期及现任职务等详细情况。

Did your organization's Shareholders, Supervisor,Legal Person, Directors, Senior Management or

Agent(s) ever work in CNOOC? If “Yes”, your organization is required to provide the staff's relevant

information including but not limited to full name, ID number,served units of CNOOC and their

position accordingly while in CNOOC, the date of leaving CNOOC, and the date of jointing your

organization and the current position.

3. 贵司股东、监事、法人、董事、高管或者代理(联系人)是否参股其他、或在其他公司任职、或是

其他公司代理?如果有,请提供姓名、身份证号、公司名称、职务及在其他公司参股、任职或代理情

况。

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Is any of your organization’s Shareholders, Supervisor , Legal Person, Directors, Senior

Management or agent as one of the shareholder, as a staff, or as an agent of any other organization?

If any, please provide detailed information.

4.贵司或者贵司股东、监事、法人、董事、高管或者代理(联系人)是否曾经涉及或者准备参与洗钱

行为?

Have your organization or any of your organization’s Shareholders, Supervisor ,Legal Person,

Directors, Senior Management or agent ever involved in, or intend to engage in, any money

laundering?

5.贵司或者贵司的股东、监事、法人、董事、高管或者代理(联系人)是否曾经或计划与恐怖分子或

恐怖组织进行经济合作或为其提供其他支持?

Has your organization or any of your organization’s Shareholders, Supervisor , Legal Person,

Directors, Senior Management or agent have or intend to have any business relationship with,

provide or intend to provide any assistance to, any terrorist or terrorism organization?

6. 贵司或者贵司的股东、监事、法人、董事、高管或者代理(联系人)是否曾经或计划与反政府组织

进行经济合作或为其提供其他支持?

Has your organization or any of your organization’s Shareholders, Supervisor , Legal Person,

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Directors, Senior Management or agent have or intend to have any business relationship with,

provide or intend to provide any assistance to, any anti-government personnel or organization?

我公司在认真阅读并理解以上问题的基础上完成了上述问题的相关信息填写。我公司承诺以上所提供
信息的真实性、准确性和完整性,承诺不存在虚假记载、误导性陈述或者重大遗漏,并承担由此引起
的法律责任。
We have carefully read and fully understood the Questionnaires here above, and have provided the

information as requested. Hereby, we warrant that the information provided herein is authentic,

accurate and complete, and warrant that the information does not contain any false record,

misleading statement or material omission, and will assume full arising out of the informational we

provided.

公司名称及盖章(Company Name and stamp):

公司法人代表/授权人签字: 日期 date:

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Acknowledge to sign Social Insurance Obligations Letter

To : CNOOC IRAQ LIMITED


Fax No. :
Attention :
Subject :
(ITT No.: )

With reference to the above ITT, we acknowledge and agree to sign the “Social Insurance Obligations” letter as
attached if we are awarded the contract for this project, and will fully comply with the requirements as stated in
such letter.

Regards,

Signature/ Date

Name and Title (in print)

Bidder’s Name (in print)

Note:
This acknowledgement must be signed and returned to Company together with the quotation or bid proposals to
the above attention.
[Subcontractor’s name and address]

Date: [ ] 2014

Dear [ ]

Re: Social Insurance Obligations

In compliance with the applicable laws and regulations in Iraq (including the Pension and Social Security
Law for Workers (No. 39 of 1971, as amended)) (the “Social Insurance Laws”) and the relevant obligations
under [contract title] dated [ ] (the “Contract”), [name of subcontractor] (the “Contractor”) is
responsible for duly making social insurance and other contributions for all Iraqi employees/workers
employed by the Contractor, whether on a permanent or temporary basis or otherwise, in connection with the
Contract.

CNOOC Iraq Limited hereby requests the Contractor to sign and return a copy of this letter no later than [
] to confirm the following:

• The Contractor is fully aware of its social insurances obligations and other related obligations for
local employees/workers under the Social Insurance Laws and has complied, and will continue to
comply, with all such obligations, including the obligations set out in the Form of Undertaking Letter
attached in Appendix 1;

• The Contractor will execute an Undertaking Letter in the form attached in Appendix 1 and provide
the originally executed Undertaking Letter to CNOOC Iraq Limited no later than [ ] when
returning a signed copy of this letter; and

• The Contractor shall be solely responsible for performing all the obligations and undertakings in the
Undertaking Letter and for any liabilities arising out of a failure to perform, and shall indemnify and
hold CNOOC Iraq Limited harmless against any loss, damages, penalties, liabilities, claims,
proceedings, costs and/or expenses suffered or incurred by CNOOC Iraq Limited as a result of, or in
connection with, the Contractor’s failure to perform any of such obligations or undertakings.

Yours faithfully,

CNOOC Iraq Limited

Acknowledged and agreed by:

Name: ……………………………………………………

Position: …………………………………………………

On behalf of the Subcontractor

Date: ……………………………………………………..
APPENDIX 1

Form of Undertaking Letter

To: Missan Oil Company

Date: [ ]

Dear Sirs,

Re: Social Insurance Undertakings

We acknowledge that we have been informed of the requirements of the relevant Iraqi laws and regulations
(including the Pension and Social Security Law for Workers (No. 39 of 1971, as amended)) regarding social
insurance and other relevant obligations in respect of any local employees/workers we employ, whether on a
permanent or temporary basis or otherwise, for purpose of carrying out contracted works in Iraq (the “Social
Insurance Obligations”).

We hereby undertake to:

• comply with the Social Insurance Obligations; and

• provide Missan Oil Company with all statements required in relation to the Social Insurance Obligations
(including payment receipts and confirmation letters from the Ministry of Labour and Social Affairs)
in the form, and within the period, prescribed in the relevant laws or regulations.

Your faithfully,

[name of subcontractor]

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