Maintenance Service for Oil & Gas Offshore Facilities Tender No.

HT501SS18

Instructions to Bidders
for
Maintenance Service for Oil & Gas Offshore Facilities

Aramco Gulf Operations Company Ltd. (“AGOC”) and Kuwait Gulf Oil Company (K.S.C.)
("KGOC"), jointly operating at and from Al-Khafji, Saudi Arabia, for oil and gas exploration,
development and production in the offshore area of the divided ex-Neutral Zone between Saudi
Arabia and Kuwait (“Al-Khafji Joint Operations”) hereby call for tenders of performance of the
captioned work, and request each intending bidder to make his proposal in strict compliance with
the following instructions:

1. Eligibility of Bidder

1.1 The Bidder must be a commercial entity organized and existing under the laws of Saudi
Arabia or Kuwait, and registered at the Chamber of Commerce of either country, or a
Saudi or Kuwaiti national, qualified to undertake commercial transactions under the
laws of his country, and registered at the Chamber of Commerce there.

In case the bidder is non-Saudi / non-Kuwaiti (“foreign bidder”), he shall have a Foreign
Investment License issued by The General Investment Authority pursuant to the
Foreign Investment Act of Saudi Arabia (enacted by Royal Decree No. M/1 dated
5/1/1421H) at the time of bid closing; or he shall be in compliance with the rules and
regulations of foreign investment in Kuwait.

Notwithstanding the foregoing provision, for the purpose of submitting his tender, the
bidder who does not have a Foreign Investment License at the time of bidding, may
assign a Saudi/Kuwaiti representative and provide such representative’s name,
address, email and phone numbers along with his tender submissions. If such bidder
becomes the successful bidder, he shall be required to submit to AGOC/KGOC a
Temporary Foreign Investment License or comply with the rules and regulations of
foreign investment in Kuwait within three (3) weeks of the date of the Letter of Intent
issued to him by AGOC/KGOC. Such bidder shall not be allowed to sign the Contract
without submitting to AGOC/KGOC the said Temporary Foreign Investment License.
Failure to submit the Foreign Investment License shall render the Letter of Intent
(Contract Award) issued null and void.

1.2 The bidder must qualify to lawfully undertake the work required under the intended
contract (“Contract”) on his account at the time of bidding and throughout the Service
Period in Saudi Arabia.

1.3 The bidder must have the financial, technical and administrative resources, capabilities
and experiences sufficient to satisfactorily and timely commence, carry out and
complete the entire work under the Contract.

1.4 Experience:

1.4.1 The bidders should have at least five (5) years’ experience in the field of
offshore construction and maintenance work with the use of Derrick / Lay
Barge, such as installation, modification and repair of offshore oil and gas
production and handling facilities within the last ten (10) years.

1.4.2 The bidder shall have minimum five (5) years’ experience in operation of
marine vessels/barges in offshore oil and gas production facilities.

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1.4.3 The bidder shall either own marine vessels that conform to the specifications
set out in Attachment 1 to Schedule B of this tender, or make arrangements
for the supply of the said Vessels by bare boat charter/lease, pursuant to the
provisions of Sub-Articles 4.4.1 and 4.4.17 below.

1.5 In the event the Bidder does not satisfy on his own, the requirements set out in 1.2
through 1.4 above, a joint venture, consortium, partnership or the like comprising of
two (2) or more legal entities ("Joint Venture" or “JV”), may be allowed to bid for this
Tender if the Joint Venture itself, or at least one (1) of those legal entities forming the
Joint Venture is such an entity that satisfies the requirements, provided that each of
those legal entities forming the Joint Venture are either registered in Saudi Arabia or
Kuwait or satisfy the requirements of foreign bidder as set out in the Second and Third
paragraphs at 1.1 hereof.

All the legal entities forming the Joint Venture shall enter into a written agreement (Joint
Venture Agreement or JVA) to embody such a Joint Venture that shall expressly hold
each of them jointly and severally responsible particularly for the complete performance
of the Service contemplated under this Contract. Once awarded to the Bidder the JVA
shall remain in force throughout the life of the Contract. The JVA shall also set forth
that the JV shall indemnify and hold AGOC/KGOC and/or Company harmless against,
and from any and all disputes and claims which may arise between the JV Partners or
result from or in connection with formation of the JV. The Bidder shall submit a signed
copy of the JVA to form such a Joint Venture which shall conform to the requirements
stated above.

The JVA shall clearly identify the Lead JV partner who shall be authorized by the JV to
act for and on behalf of the JV. AGOC/KGOC shall only consider any and all
communications or correspondence or notices sent/receive from such Lead JV partner.
If bidder is the successful bidder, all JV partners will sign the Contract document.

2. Tender Documents

2.1 For this Tender, the following documents are issued:

(a) Instructions to Bidders (this document) with the Price Proposal Forms (Bid Form
1 to 7) and Qualification Proposal Form (Bid Forms 8 to 16).

(b) Form of Agreement with its Schedules and Attachments; and

(c) Sample of bank guarantees (Bid Bond, Mobilization Bond and Performance
Bond).

2.2 The bidder shall carefully study and fully understand the intents and contents of the
above listed documents, particularly the terms and conditions of Contract as set out in
the Form of Agreement, no provisions of which shall be negotiable by the bidder, and,
in making the proposal for this Tender, the bidder shall refer only to the above listed
documents.

Misinterpretation of or deviation from the intents and contents of the above listed
documents or reference to any other sources of information and data on the part of the
bidder shall in no event be invoked against the Company, and shall be the sole
responsibility and risk of the bidder.

2.3 Except upon the prior written consent of the Company, the bidder shall not disclose or
divulge any part of the said documents or any information or data contained therein to
any third party, including, but not limited to, his associates, subsidiaries and potential

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sub-contractors. Should the bidder, for purposes of preparing his proposal hereunder,
need to disclose such documents, information or data to third parties, he shall first
secure the said written consent of the Company, specifying the party(ies) to whom such
disclosure will be made and the documents, information and data to be disclosed, for
the Company’s approval.

3. Pre-requisites for the Bidder

3.1 Knowledge of the Circumstances

The bidder shall, in the course of preparation of his proposal, examine and familiarize
himself with the nature of the work required of him to carry out under the Contract, the
location and peculiarities of the place of such work including the relevant facilities,
utilities, and equipment of the Company, the general and particular characters, qualities
and quantities of equipment, tools, materials, supplies, facilities, utilities, vehicles,
personnel and labor required preliminary to and during the execution of the said work,
and all other matters which could affect such work under the Contract.

The bidder shall fully study, examine and be familiar with all laws and regulations
including the ministerial orders and decrees applicable under the jurisdiction of Saudi
Arabia and Kuwait and any other countries, which may be relevant to the performance
of his duties under the proposed Contract.

Failure by the bidder to have familiarized himself with the above said matters or to have
reasonably discovered any matter that may affect the contemplated work shall in no
event be invoked against the Company, and shall be the sole responsibility and risk of
the bidder.

3.2 Pre-Tender Meeting and Site Survey

a. Pre-Tender Meeting

The bidder must attend a Pre-Tender Meeting for this Tender to be held at:

Venue : Sheraton Bahrain Hotel

6 Palace Avenue, 185 Manama, Bahrain
Date & Time : Thursday, May 2, 2019 at 9:00 AM (local time)

AGOC/KGOC will issue a certificate of Pre-Tender Meeting to the bidder who

attended the required Pre-Tender Meeting, which shall be submitted with his
proposal for this Tender. Any bidder who fails to attend the said Pre-Tender
Meeting is automatically disqualified for the bidding of this Tender.

b. Site Survey

The bidder shall, in the course of preparation of his proposal, visit the Company’s
office at Al-Khafji, Saudi Arabia, to fully study, examine and familiarize himself with
the matters mentioned in 3.1 above. The bidder shall, during his Site Survey,
collect all data and information necessary for the preparation of his proposal. Any
bidder who fails to conduct the Site Survey is automatically disqualified for
the bidding of this Tender.

Site Survey shall be on Wednesday, May 8, 2019 at KJO, Al-Khafji, Saudi

Arabia.

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All Bidders shall meet at KJO Service Center, Al-Khafji, Saudi Arabia at 9:00
AM (local time) on Wednesday May 8, 2019.

Note: Bidder’s assigned person who shall conduct the site survey must be a holder
of Work Visit Visa to be allowed at offshore area.

The Company shall issue a certificate of Site Survey to the bidder who visited for
the required site survey, which shall be submitted with this proposal for this Tender.

c. All the costs and expenses associated with the required Pre-Tender Meeting and
Site Survey shall be borne by the bidder and all necessary arrangement for his
visit to AGOC/KGOC including those for transportation, accommodation and
acquisition of visas shall be made by the bidder. However, transportation to and
within AGOC/KGOC offshore facilities will be provided by AGOC/KGOC.

d. The bidder is requested to contact Manager, Contracts Department of Al-Khafji

Joint Operations to arrange for the bidder's Site Survey submitting the following
information:
 the names and nationalities of the persons who will attend the required
Site Survey together with photocopies of their Iqamas or passport with
valid visas and
 Vehicle details (make model and number plate)

not later than 13:00 hours on Monday, April 29, 2019.

(Collect gate passes at KJO Service Center just outside KJO Main Gate)

IMPORTANT NOTICE:

As it may take long time to process a Saudi visas, it is required that bidders
that do not already have a Saudi visa for their proposed representative(s)
should depute GCC personnel or in-kingdom representatives to attend the
Site Survey.

3.3 Service Period and Service Commencement Date

The Service Period contemplated under this Tender shall be for a minimum of five (5)
years up to a maximum of fifteen (15) years depending on the age of the barge offered
by the bidders on condition that the age of the barge by the end of the allocated Service
Period shall not exceed fifteen (15) years, as outlined below.

The age of the Derrick/Lay Barge shall be reckoned from the manufacturing date to the
Service Commencement Date. For the purposes of this tender, the Service
Commencement date shall be assumed as the Date of submittal of Bid + 4 months +
the Mobilization Period as bidder sets out in Bid Form 9.

The Service Commencement Date will be determined in conformity with the

mobilization schedule proposed by the successful bidder, provided that the mobilization
period shall not exceed twenty four (24) months from the effective date (the date of
signing the Letter of Intent) of the intended Contract.

Barge Age in Years Service Period

(new built) 15-Years
1 14-Years
2 13-Years

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3 12-Years
4 11-Years
5 10-Years
6 9-Years
7 8-Years
8 7-Years
9 6-Years
10 5-Years

The Service Period under this Tender shall be one of the above and shall start from
the Service Commencement Date and with an option to extend the Service Period by
up to three (3) years as per Sub-Articles 3.3 and 3.4 of Schedule A, General Terms
and Conditions.

The Service Commencement Date will be set out in the Letter of Intent to the successful
bidder.

4. Proposals to be made

4.1 General

4.1.1 The proposal, which the bidder shall prepare and submit for this Tender, shall
consist of (A) the Price Proposal and (B) the Qualification Proposal, which shall
be accompanied by:

(a) the original bank guarantee letter (Bid Bond) as mentioned in Sub-Article
4.5 below;

(b) the original receipt issued by the Company against the bidder’s purchase
of the Tender documents for this Tender; and

(c) the original certificates of pre-tender meeting and site survey issued by
the Company as mentioned in Sub-Article 3.2 above.

4.1.2 The bidder shall make the proposal of the above contents in duplicate (Original
plus Copy), in clear English language and typewritten, complete and accurate
in every part.

The proposal as such shall not contain any reservations, alternatives or

variations, except when such is expressly required or allowed hereunder.

4.1.3 Any bidder's proposal shall be rejected or any bidder shall be disqualified, in
such an event that:

- The proposal is incomplete for failing to cover all items required to be

submitted under this Tender,

- The proposal is illegible for any reason or inaccurate of its meanings, or;

- The proposal contains any reservations, alternative or variations, except

when expressly so required or allowed hereunder.

4.1.4 It is advisable for the bidder to check over its submission referring to ITB,
Appendix 1 “List of Submissions” to avoid submitting an incomplete,
insufficient or inadmissible proposal.

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4.2. Marine Vessels Required under the Contract

4.2.1 Marine Vessels

Bidders shall submit a proposal for Marine Vessels that conform to the
specifications set out in Attachment 1 to Schedule B of the proposed Contract
in which case, the age of any Marine Vessel shall be as per the following:

 The Derrick/Lay Barge shall not be more than 10 years old at the Service
Commencement Date nor more than 15 years old at the end of the original
Service Period.

 The Tug Boat and Utility Boat shall be maximum of 10 years old at the
Service Commencement Date. Tug Boat and Utility Boat shall be replaced
once they reach 15 years old by boats with a maximum of 10 years old or
boats that will be a maximum of 15 years old at the end of the original
Service Period.

4.2.2 Utility Boat (Optional Requirement)

Bidders shall submit a proposal for one (1) Utility Boat as a AGOC/KGOC
optional requirement and shall not be included in the base bid. The boat shall
conform to the specifications set out in Attachment 1 to Schedule B of the
proposed Contract.

4.2.3. Bidders shall submit a bid only for one (1) Derrick/Lay Barge either for
an existing barge or for a newly built barge.

4.3 Price Proposal

4.3.1 The bidder shall make his Price Proposal in the attached Price Proposal Forms
signed by his authorized representative and dated with the actual date he
submits his proposal, with the bidder's name typewritten and the bidder's
official seal or stamp affixed to it. A Price Proposal made in a different form
shall in no event be considered.

a. Bid Form 1 shall be used for the bidder’s Price Proposal for the Service
Period as set out in Sub-Article 3.3 regarding the Service Charge, which
consists of the total and summary of the Daily Charges as follows:

(1) Daily Charge for Derrick/Lay Barge including Equipment and

Personnel on Barge, and
(2) Daily Charge for Tug Boat including Equipment and Personnel on
boat, and
(3) Daily Charge for Utility Boat including Equipment and Personnel on
boat, and
(4) Daily Charge for Shore Base including Equipment and Personnel.

b. Bid Form 2 shall be used for the bidder’s Price Proposal for the Breakdown
of the Daily Charge proposed in Bid Form 1 in which the Daily Charges for
Marine Vessels and Equipment shall cover twenty four (24) hours for each
day involved, and the Daily Charges for Marine Vessels Crew and
Manpower on Barge shall cover a twelve (12) hour working day, and the

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same for Personnel at Shore Base shall cover an eight (8) hour working
day.

c. Bid Form 3 shall be used for the bidder’s Price Proposal regarding
Mobilization and Demobilization of the Contract, as a Lump Sum.

d. Bid Form 4 shall be used for the Daily Charge during the Service Period
set out in paragraph 3.3 above regarding:

(1) Additional Equipment

(2) Additional Personnel

e. Bid Form 5 shall be used for the Unit Rate for Accommodation and
Catering for Company’s Additional Personnel for the facilities other than
those set out in Article 2.1.3 of Attachment 1 to Schedule B.

f. Bid Form 6 shall be used for the bidder’s Price Proposal during the Service
Period set out in Sub-Article 3.3 of these instructions regarding Standard
Consumable Materials and any optional three (3) years extension.

g. Bid Form 7 shall be used for the bidder’s Price Proposal for the mobilization
and demobilization charges, daily rates and Weather Standby rates
pertaining to optional item of Utility Boat.

Note:
a. Bidder shall only submit one price proposal.
b. Daily Charge per Person (Unit Rate) for Personnel shall be for a
particular job title irrespective of National or non-national being
assigned to that position.

4.3.2 All the rates to be quoted by the bidder shall be expressed only in United States
Dollars. A Price Proposal containing rates expressed only in other currencies
or both in United States Dollars and in other currencies shall in no event be
considered.

Where applicable rates are to be quoted shall be written both in numerals and
in words, and in case of any discrepancy or conflict between the numerals and
the words, the amount in words shall prevail. Discrepancies in multiplication of
numbers and unit / daily rates shall be resolved in favor of unit rates. Errors in
addition shall be corrected by AGOC/KGOC. Corrected total amounts shall be
considered as the bid price.

4.3.3 The bidder shall make sure that the rates as quoted in his Price Proposal shall
be inclusive of and cover any and all costs and expenses to be incurred by
him, when awarded the Contract, for and in regard to the Contract, particularly
for delivery and completion of the works and services under the Contract at
AGOC/KGOC's designated places such as, but not limited to, costs and
expenses for supervision, labor, equipment, materials, supplies, consumables,
services, visas and permits, mobilization and demobilization, overheads, profit,
insurance premiums, Ramadan premiums, provisions for risks and
contingencies including risks of fluctuations of any costs and currencies
values, Zakat, withholding tax, income tax, customs duties and any other taxes
(except Value Added Tax (VAT) under Applicable KSA Law) and imposts to
be levied and payable on account of the Contract.

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4.3.4 The bidder shall also take into account that all the rates quoted in his Price
Proposal shall be fixed throughout the Service Period or extensions thereof
and that no adjustment to such rates shall be accepted by the Company,
except when otherwise provided for in the Contract.

The Company shall not be liable to pay any additional sum of money other
than those expressly rendered payable or reimbursable by the Company
pursuant to the relevant provisions of the Contract.

4.3.5 The Price Proposal of the successful bidder, in the event that he is awarded
the Contract, shall in its entirety be incorporated into the Contract as Schedule
“C” (Consideration).

4.3.6 In connection with the Zakat and Tax liability of the Contractor, in
respect of AGOC/KGOC payments under the Contract, including for
VAT, the Bidder shall specifically note and understand the provisions
set out in Article 5 of the Form of Agreement and Articles 3 and 4 of
Schedule F.

4.3.7 The above stated tax percentages may vary from time to time by the
enactment of relevant tax jurisprudence that may be issued by tax authorities.

4.4 Qualification Proposal

The bidder shall make his Qualification Proposal of the contents as set out in Sub-
Articles 4.4.1 through 4.4.18 below. Each document constituting the bidder's
Qualification Proposal shall be signed by his authorized representative, who shall be
the same as the signatory of his Price Proposal, dated with the actual date he submits
his proposal, with the bidder's name typewritten and the bidder's official seal or stamp
affixed to it, when appropriate.

Bidders are advised that notwithstanding the submission of their Qualification Proposal
as part of their bids, the successful Bidder is required, post Contract, to submit any
other submittals as may be stipulated in the Contract documents. Submittals made as
part of a bid shall not be accepted as submittals for the purpose of satisfying the
requirements of the Contract.

4.4.1 Proof of Eligibility to Bid

In addition to the requirements under Sub-Article 4.4.11 of these instructions,

the bidders shall submit the documents to be eligible to bid for the proposed
Contract.

The bidder shall submit certified copies of documents proving his ownership
of, or a written authority to use, the Marine Vessels (such as a charter party)
he intends to assign in the performance of the Service.

In case of rented/leased Marine Vessels, the bidder shall submit certified

copies of documents showing the planning and construction of the Marine
Vessels, as well as the mobilization schedule of the Vessels for the specific
purpose of performing the Service, in addition to the requirements set out in
the preceding paragraph.

(Note to bidders: The bidder must directly perform the functions of

operating the Marine Vessels, and shall not sub-contract the said

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functions, regardless of the ownership of the Vessels.)

The foregoing documents submitted by the successful bidder shall form part
of Schedule R of the Contract, in the event that the Contract is awarded to him.

4.4.2 Bidders company certification/information

The bidder shall submit a certified copy of the following (For Joint Ventures the
below documentation to be submitted for each JV partner):

a. Corporate registration certificate

b. Registration at the Chamber of Commerce in Saudi Arabia or Kuwait.

c. Copy of VAT Registration Certificate

d. If the bidder is a joint venture, the bidder shall submit a signed copy of
the agreement to form such Joint Venture, which shall fully comply with
the requirements set out in the second paragraph of Sub-article 1.5
above as well as those documents mentioned in the preceding
paragraph for each of the entities forming the Joint Venture.

e. General Information Form. A sample of the General Information Form

is attached hereto as Bid Form No. 11.

f. Bidder to submit a statement to demonstrate its current legal status and

its capability, with respect to its legal status, to mobilize his personnel,
equipment and marine vessels to perform the Service within the
Kingdom of Saudi Arabia.

In the event that the Contract is awarded to the bidder, the General Information
Form, the corporate registration records and the Joint Venture Agreement (for
joint ventures) submitted by the bidder shall form part of Schedule R (Technical
Offer) of the Contract.

4.4.3 Record of Experiences

The bidder shall submit a record of the experiences of his own, and of the
intended subcontractors. Such record shall cover the past ten (10) years, and
include these experiences as required in Clause 1.3 above and in such works
as similar to those contemplated under this Tender.

The bidder shall make sure that the Record of Experience includes all the
following information on each of the project included therein:

a) Title of the Project,

b) Name of the Client,
c) Brief Description of the Project,
d) Amount of the Project,
e) Duration of the Project, and
f) Location of Work.

Each of such record shall be supported by authenticated supporting

documents, such as copies of contract and/or certificates from the previous
contract owners.

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For the above documents, for services/contracts carried out within the last
10 years, to include:
a. Contract agreement 1st page showing the contracting parities, start
and finish date page and signatory page.
b. Scope of Service showing the breakdown of the executed service.
c. Contract duration
d. Value of contract.
e. Certificate of satisfactory completion

No specific form is required for this record of experience.

4.4.4 Representation on Financial Capability

The bidder shall submit his representation on financial capability duly signed
as per the Qualification Proposal Form (Bid Form 8) attached hereto which
shall become part of Schedule K of the Contract, when awarded to him.

4.4.5 Mobilization Schedule

The bidder shall submit, in the attached Qualification Proposal Form (Bid Form
9), the mobilization schedule by which the bidder is required to make a
representation that he shall complete the Mobilization within twenty four (24)
months from the effective date of contract.

In addition to the Mobilization Schedule, the bidder shall submit a written

commitment from person/s responsible for transporting the Marine
Vessels to the Company site within the Mobilization period, in order to
ensure faithful compliance with the Mobilization Schedule.

The Mobilization Schedule and the written commitment submitted by the

successful bidder shall form part of Schedule R of the Contract, in the event
that the Contract is awarded to him.

4.4.6 Work Plan

The bidder shall submit their work plan for all of the following seven (7)
categories of work which will be involved during the term of Contract:

(1) Laying of submarine pipeline and installation of risers,

(2) Laying of submarine cable,
(3) Replacement of loading hoses at sea berth,
(4) Positioning at complicated area,
(5) Salvaging of offshore structure,
(6) Installation of conductor pipe, and
(7) Dewatering and drying of new/used gas line.

The work plan shall be one of the important factors for qualifying the bidder.

The work plan, therefore, shall be prepared by the bidder based on the
utilization of Marine Vessels, Equipment and Personnel, which are proposed
in compliance with the terms and conditions of this tender.

The specifications set out in Attachment 2 to Schedule B describe the

requirements for the above work (1) to (7). As to the matters not mentioned in
the specifications, the bidder may estimate them by themselves to prepare the

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above work plan in accordance with reasonable and internationally recognized

practices.

The work plan shall include as a minimum the following:

(a) Preparatory work

(b) Anchor handling procedure for barge and anchor pattern,
(c) Work procedure,
(d) Testing procedure, and
(e) Estimated time to be spent for each of the work elements.

No specific form is required for this work plan. The work plan submitted by the
successful bidder, when he is awarded the Contract, shall form part of
Schedule R of the Contract.

4.4.7 List of Key Personnel

The bidder shall submit, in the attached Qualification Proposal Form (Bid Form
10), the list of key personnel with their curricula vitae duly signed by the
concerned personnel himself, whom the bidder intends to assign for the
performance of the Contract. Such curricula vitae shall be accompanied by
certificates or diplomas for such personnel, provided that all of such personnel
shall meet the qualifications and requirements as set out in Attachment 1 to
Schedule B.

4.4.8 General Organization for Social Insurance (GOSI)

The bidder shall submit a copy of the current certificate issued by the GOSI
insurance office evidencing that his firm has been registered with the
Organization and that he has discharged all his obligations towards the
Organization or otherwise that he is not subject to the provisions of this Law.

4.4.9 Organization Chart

The bidder shall submit the organization chart for this Contract showing the
lines of responsibility of the key personnel mentioned in Sub-Article 4.4.7
above and their interrelations. No specific form is required for this organization
chart.

The organization chart submitted by the successful bidder, when he is

awarded the Contract, shall form part of Schedule R of the Contract.

4.4.10 List of Subcontracts and Intent for Contract (Subcontracts)

a. List of Subcontracts

The bidder shall submit in Bid Form 12, a list of all the subcontracts which
the bidder intends to enlist/engage for the execution of the work under the
Contract (except for the purpose of sale and purchase of equipment,
materials, goods and the like readily available in the market), provided
that no subcontract shall be allowed either for operation of Derrick/Lay
Barge or major works such as construction, maintenance, installation,
modification and other major works related to the offshore production and
handling facilities contemplated under this tender. Such List of

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Subcontracts shall indicate the name of each subcontractor and a brief

description of the work to be undertaken.

The List of Subcontracts shall form part of Schedule R, when the bidder
is awarded the Contract, and changes in or additions to such List of
Subcontracts shall be restricted for the performance of the Contract as
set forth in Article 11 of Schedule A of the Contract.

b. Intent for Contract (Subcontracts)

The bidder shall submit to the Company an “Intent for Contract” specifying
all intended subcontractor(s) included in the List of Subcontracts as per
the attached Qualification Proposal Form (Bid Form 13) to the effect that
if the bidder is awarded the Contract, each subcontractor shall enter into
a separate contract (as may be called a subcontract) with the bidder to
undertake the work described in such “Intent for Contract”.

Each “Intent for Contract” shall clearly state in detail the scope of work,
information on the resources and other items as required in the said
Qualification Proposal Form, provided that none of such statement shall
conflict with the specifications and requirements of the Contract.

In this regard, the bidder shall take note that in the event that the Contract
is awarded to him, and he thereby enters into each of the above-said
separate contracts, (as may be called a subcontract), the bidder is
required to clearly define the responsibilities, indemnities and warranties
undertaken by each party to such a separate contract in favor of the other
party so as to fully cover and respond to the Contractor’s undertaking of
the responsibilities, indemnities and warranties under the Contract.

The Company may later request submission of a copy of any of the said
separate contracts but with the provisions on price/ consideration crossed
out.

4.4.11 List of Marine Vessels and Major Equipment

The bidder shall submit the list of marine vessels along with the required
Certificates and Reports mentioned below that he intends to assign for
the performance of the Contract, which shall meet the minimum
requirements set out in Attachment 1 to Schedule B.

The said description of Derrick/Lay Barge, Tug Boat and Utility Boat shall
include the following:

(a) Principal Particulars,

(b) Drawings of the Outline and General Arrangement (A1 Size),
(c) Builder’s Stability Calculation with Full Load,
(d) Registration Certificate, and
(e) 5-Year Schedule for Periodical Overhaul (Dry Docking).

The following Certificates and Reports for Derrick / Lay Barge, Tug Boat and
Utility Boat mentioned hereunder shall be issued by surveyors of ABS, Lloyd’s
or equivalent of an internationally- recognized maritime organization.

(a) Classification Certificate of the Hull and Machinery,

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(b) International Load Line Certificate,

(c) International Tonnage Certificate,
(d) Annual Surveys,
(e) Special Periodical Surveys, and
(f) Certificate of the latest Dry-dock Survey to be performed within twelve
(12) months preceding the closing date of this tender.

The description of Equipment on Derrick / Lay Barge, Tug Boat and Utility Boat
shall include the following:

(a) Certificate of Test and Examination of 250 Ton Crane and its Gear,
(b) Statement of Fact Report on Safety Equipment Installation,
(c) Certificate of Service and Testing of Inflatable Life Raft / Life Boat
(d) Cargo Ship Safety Radiotelephony Certificate,
(e) Inspection Report on Wire Rope Lines of Mooring Anchors and 250
Ton Crane,
(f) Statement of Main Equipment on Derrick/Lay Barge, such as Winches
of mooring Anchors, Derrick Crane, Deck Crane, Forklift, Pipe laying
and Handling Equipment, Pile Driving Hammer, Welding Machines,
Air Compressors, Electric Power Generators, Pumps, Supporting
Power Boat and Water Desalination Units,
(g) Statement of Main Equipment on Tug Boat and Utility Boat, such as
diesel driven double drum towing Winch and Hydraulic Telescopic
Crane, and
(h) Statement of Equipment at Shore Base, such as Mobile Crane.

The latest overhaul and inspection report shall be submitted. Such overhaul
and inspections are to be completed within twelve (12) months before the
closing date of this Tender.

In the event that the Derrick/Lay Barge, Tug Boat and Utility Boat is in dry dock
for alterations, building or modification and the bidder is unable to present
some of the aforesaid documents, he shall submit the following:

(1) Principal Particulars,

(2) Drawings of the Outline and General Arrangement (A1 Size)
(3) Builder’s affidavit to state that Derrick / Lay Barge, Tug Boat and Utility
Boat, after the alternation, building or modifications, fully complies with
the requirements of this tender,
(4) However, in addition to the above (1), (2) & (3), the bidder shall submit
to the Company such other documents as are given in this Article as
soon as they become available after the completion of the alterations,
building or modifications, provided that plan/schedule of all such
modifications shall be prepared and submitted at his bidding stage in
connection with the subject, otherwise his bid shall be rejected or he
shall be disqualified as failing to cover items required to be submitted.

For bidders that propose a new Derrick Lay Barge, tug boat and/or utility boat
they shall submit ship builder’s design and specifications including drawings
and catalogues of proposed equipment. Bidder to also submit the ship
builder’s company’s profile and their undertaking to build such vessel(s) and
construction/delivery to site schedule.

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The list of major equipment together with their description submitted by the
successful bidder, when he is awarded the Contract, shall form part of
Schedule R of the Contract.

In addition to the above descriptions for the Marine Vessels the bidder shall
submit duly completed Bid Forms 15.

4.4.12 List of Equipment

The bidder shall submit the list of Equipment that he intends to assign for the
performance of the Contract together with their descriptions, including their
models and manufacturers, quantity, quality, specifications and any other
information, provided that each of them shall meet the minimum requirements
set out in Attachment 1 of Schedule B. No specific form is required for the list
of equipment.

The list of Equipment together with their descriptions submitted by the

successful bidder shall form part of Schedule R of the Contract, in the event
that the Contract is awarded to him.

In addition to the above descriptions/List for Equipment the bidder shall

submit duly completed Bid Forms 16.

4.4.13 List of Standard Consumable Materials

The bidder shall submit a list of standard consumable materials, which the
bidder intends to consume for the performance of the Contract together with
their description including their specifications and any other information,
provided that each of the materials shall meet the minimum requirements set
out in Schedule C. No specific form is provided for this list of standard
consumable materials.

The list of standard consumable materials together with their description

submitted by the successful bidder, when he is awarded the Contract, shall
form part of Schedule R of the Contract.

4.4.14 Quality Assurance and Quality Control (QA/QC) Plan

The bidder shall prepare and submit a detailed description of his QA/QC plan
for the work contemplated under this Tender, which shall ensure the proper
performance of the whole work under the Contract. This shall also include the
QA/QC document control and auditing. No specific form is required for this
QA/QC plan.

The QA/QC plan shall include, but not limited to the following documents:

a) Project Quality Plan

b) Project Quality Audit
c) Inspection Test Plan
d) Welding Procedure Specification (WPS) - Structure
e) Welding Procedure Specification (WPS) - Pipeline
f) Welding Qualification Testing (WQT)
g) Welder's Qualification Records (WQR)
h) Weld Numbering and Pipe Tracking Procedure
i) NDT Pipeline (MPI, UT, RT & AUT) Procedures

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j) NDT Structure (MPI, UT, RT & AUT) Procedures

k) Material Control Procedure
l) Pipeline Field Joint Coating Procedure
m) Blasting & Painting Procedure
n) Storage, Issuance and Handling of Welding Consumables Procedure
o) Calibration & Control of Equipment Procedure

The QA/QC plan submitted by the successful bidder, when he is awarded the
Contract, shall form part of Schedule R of the Contract.

4.4.15 Safety Plan

The bidder shall prepare and submit a detailed description of his safety plan
for the work contemplated under this Tender, which shall ensure the safe
performance of the whole work under the Contract. This shall include, but not
be limited to, fire fighting systems, personnel protective equipment, medical
treatment, survival crafts. No specific form is required for this safety plan.

The Safety plan shall include, but not limited to the following documents:

a) Project Safety Plan

b) Hazard Identification Plan (HIP)
c) Safety Training Plan
d) Job Safety Assessment (JSA)
e) H2S Contingency Plan
f) Offshore Emergency Response Plan (to be bridged with KJO’s
emergency plan)
g) Offshore Medevac Plan (to be bridged with KJO’s medevac plan)
h) Diving Safety Plan

The safety plan submitted by the successful bidder, when he is awarded the
Contract, shall form part of Schedule R of the Contract.

4.4.16 Declaration

The bidder shall prepare and submit, in the attached Qualification Proposal
Form (Bid Form 14), the declaration by which the bidder is required to make a
representation that he acknowledges and understands the tender and that if
awarded the Contract he shall carry out the Contract in accordance with its
terms and conditions.

4.3.17 Ethics Compliance (Undertaking on Conflict of Interest)

All bidders and their employees shall comply with the requirements of laws,
rules and regulations establishing ethical standards for the conduct of
business in the Kingdom of Saudi Arabia, and all the rules and regulations
specific to AGOC/KGOC. In signing the proposal, the bidder certifies full
compliance with those provisions for any present or future dealings,
transactions, sales, contracts, services, offers, relationships, etc., involving
AGOC/KGOC and/or its employees. Failure to comply with those provisions
may result in disqualification from the solicitation process, termination of
Contract, and/or other civil or criminal proceedings as allowed by law.

The bidder shall make an undertaking on conflict of interest on the bidder’s

official letterhead in accordance with the sample undertaking attached

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herewith. Such undertaking submitted by the successful bidder shall make the
Schedule K of the Contract, when awarded to him.

4.5 Bank Guarantee

4.5.1 The bidder shall obtain an irrevocable bank guarantee (“Bid Bond”) in the
amount of United States Dollars One Million (US$ 1,000,000.00). The Bid
Bond shall be issued by a bank licensed and operating in Saudi Arabia or
Kuwait or an international bank which has a correspondent bank in Saudi
Arabia or Kuwait, and kept valid for one hundred twenty (120) days counting
from the closing date of this Tender

The Bid Bond shall be issued under the following conditions:

1. Once issued, the Bid Bond remains in effect unconditionally and may
not be disputed or contested by the bidder;

2. The Bid Bond shall not, at any time prior to its expiration, be
withdrawn, cancelled, or in any way modified without the Company’s
written consent; and

3. Upon the Company's written request, the bank shall pay to the
Company an aggregate amount of money not more than the above
said amount unconditionally and irrespective of any claim or protest
on the part of the bidder

4.5.2 The Bid Bond shall be made out in the issuing bank's own official letter head
for such purpose and the Sample of Bank Guarantee (Bid Bond) attached
hereto is for reference purpose only. However, a bank guarantee failing to set
out the conditions clarified in the said Sample of Bank Guarantee shall lead to
the disqualification of the bidder.

Important Note: The Bid Bond shall be made in the name of Aramco Gulf
Operations Company Limited or in the name of Kuwait Gulf Oil Company
(K.S.C.) as per the attached sample; not to Al-Khafji Joint Operations.

4.5.3 The Bid Bond is intended to warrant the bidder's proposal submitted to the
Company, and should the bidder withdraw or cancel his proposal for this
Tender, either in whole or in part, after its submission to the Company or
should the successful bidder refuse to enter into the Contract with the
Company after the Company decides to award the Contract to him, the
Company shall confiscate the full amount of the Bid Bond and the bidder shall
forfeit any right to claim for the money paid to the Company through the Bid
Bond.

4.5.4 Upon award of the Contract to the successful bidder, the Company shall return
the Bid Bond of unsuccessful bidders without delay. The successful bidder
shall keep the Bid Bond valid until execution of the Contract and his
submission of another bank guarantee mentioned in Clause 4.5.5 below.

4.5.5 The bidder shall take note that upon execution of the Contract, the successful
bidder is required to furnish the Company with another bank guarantee in
assurance of the timely completion of the mobilization and commencement of
the work contemplated under the Contract pursuant to Sub-Article 6.1 of the
Contract Form (“Mobilization Bond”), and upon commencement of the Service,

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the Mobilization Bond shall be replaced with another bank guarantee to assure
the proper performance of the Contract pursuant to Sub-Article 6.2 of the Form
of Agreement (“Performance Bond”).

The Mobilization Bond and Performance Bond shall he made out in the issuing
bank’s own official letterhead for such purpose, and the Sample of Bank
Guarantee (Mobilization Bond and Performance Bond) attached hereto is for
reference purpose only.

5. Submission of Proposal

The bidder shall put his Price Proposal in Package marked “A” and his Qualification Proposal
together with (a) the original bank guarantee (Bid Bond), (b) the original receipt issued by
the Company for the bidder’s purchase of the Tender documents for this Tender and (c) the
original certificates of the bidder’s attendance of the pre-tender meeting and conducting the
site survey, in Package marked ”B”.

The two Packages shall also be marked with the Tender Number, Tender Title, and
Bidders Name and Date of Submittal. The Packages shall be sealed firmly.

Important Note:

Such bidders shall enclose his Qualification Proposal and Price Proposal in duplicate
in separate packages, clearly marked as follows:

Package A (Price Proposal) – Original / Duplicate

Package B (Qualification Proposal – Original / Duplicate

The bidder shall make arrangements for the delivery by hand of the prepared
Packages and/or package to Tender Box No. 2 at the Contracts Department of
Al-Khafji Joint Operations in Al-Khafji, not later than 14.00 Hrs. on Monday,
June 24, 2019 (local time), which is the closing date of this Tender. The
Company shall not consider any proposal brought to it after such date and time.

Notwithstanding the foregoing, the bidder who has neither an agent nor a partner in Saudi
Arabia may, at his sole risk, send the prepared Package via registered mail or courier service
addressed to:

The Manager
Contracts Department
Al-Khafji Joint Operators
P.O. Box 688, Al-Khafji 31971
Saudi Arabia

to be received by the said closing date and time.

The Company shall not accept any proposal submitted after such date and time, regardless
of the reason for the delay in the submission of such proposals.

6. Validity and Irrevocability of Proposal

The bidder shall, in submitting his proposal which shall be made pursuant to the instructions
set out in this document, render his proposal valid in its entirety for one hundred twenty (120)
days counting from the closing date of this Tender, and keep his proposal irrevocable
throughout the said period of validity of his proposal.

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It is reiterated that should the bidder withdraw or cancel his submitted proposal, he shall
forfeit any right to claim for the money to be paid to the Company by the bank that issued
the Bid Bond. Once submitted, the proposal shall in no event be revised, modified, altered
or supplemented by any means and for any reasons including, but not limited to, mere
typographical errors, errors in cost calculation or risk computation, and misinterpretation of
the terms and conditions of the Contract or other conditions for this Tender.

7. The Company's Discretion on Award of the Contract

7.1 The bidder shall understand that the Company has full discretion in awarding the
Tender and that the price quoted by each bidder is not necessarily decisive for the
Company to select the successful bidder.

The Company may decide not to award the Contract to any bidder at all, or may even
suspend or cancel this Tender without bearing any obligations to the bidder, and no
acts of the Company before deciding on the award of the Contract shall constitute any
commitment by the Company to award or not to award the Contract to any particular
bidder.

No bidder shall have the right or be allowed to make any claim to the Company with
regard to the Company's decision on the award for any reason, and the Company shall
never be obligated to explain to any bidder the reason of his being not awarded the
Contract or the Company's evaluation of any proposal or decision on the award.

7.2 The Contract to be awarded to and made with the successful bidder shall be written in
exactly the same language as that of the Form of Agreement (except for typographical
errors), no provisions of which shall be negotiable by the bidder in the course of this
Tender or even after the Company's decision to award the Contract to him.

8. Costs and Expenses for this Tender

All the costs and expenses incurred by the bidder on account of or in connection with this
Tender shall be solely for the bidder's account, and the Company shall in no event accept
any claim by or involving the bidder for such costs, expenses, or loss or damage, whether
direct or indirect or consequential, which may arise or result from or in connection with this
Tender.

9. Not Used

10. Employment of Nationals

In addition to the requirements under Attachment 1 to Schedule B of the Contract, all bidders
shall take note that “Saudi Arabian government regulations mandate that
companies/contractors shall comply with the Council of Ministers Decision No. 50 dated
21/4/1415H (September 27, 1994G) requiring the submittal of Certificate of Compliance with
respect to the number of National Manpower currently employed by the Contractors.” And
any subsequent amendments/additions or related matters. Also the requirement in Schedule
H.

11. Inquiry on this Tender

The bidder shall always make his inquiries in writing and address the same to:

Superintendent, P& T Division

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Contracts Department
Al-Khafji Joint Operations
P.O. Box 688, Al-Khafji, 31971
Saudi Arabia
Email: ctdadmin@kjo.com.sa (Scanned copy of signed full correspondence and
editable MS Word copy of queries)

The bidder shall make sure that such inquiries shall be received by the Contracts Department
at least fifteen (15) days before the closing date of this Tender, otherwise the Company
will not respond to any inquiries. (Note : It may take the Company at least one (1) week from
receipt of inquiries to respond thereto.)

The Company may communicate any bidder's inquiries and the Company's response to such
inquiries to the other bidders, when necessary at the Company's sole judgment.

No inquiries of whatever nature concerning this Tender shall be accepted by the

Company after the deadline for such inquiries.

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

Attachments:

Appendix 1 to the “Instructions to Bidders”

Bid Forms 1 to 18
Sample Documents (Bonds and UoCI)

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Appendix 1 to the “Instructions to Bidders”

List of Submissions

The following are the documents that the bidder must submit for making his proposal for this
Tender, and may be used in his checking over his submissions. When preparing and completing
his proposal, the bidder must carefully read and fulfill the requirements as set out in these
Instructions to the Bidders in respect of each item of the following list.

Price Proposal in Package A

1. “Price Proposal for Service Charge” (Bid Form 1)
2. “Breakdown of Service Charge” (Bid Form 2)
3. “Price Proposal for Mobilization and Demobilization (Bid Form 3)
4. “Unit Rate Schedule for Additional Equipment
and Personnel” (Bid Form 4)
5. “Unit Rate for Accommodation and Catering
for Company’s Additional Personnel” (Bid Form 5)
6. “Price List of Standard Consumable Materials” (Bid Form 6)
7. “Price Proposal for Optional Service (Utility Boat) (Bid Form 7)

Qualification Proposal in Package B

Formality and Administrative Documents

1. “Original receipt for the Bidder’s Purchase of the Tender Documents”
2. “Original certificate of Pre-tender Meeting attendance”
3. “Original certificate of the Bidder’s Conducting Site Survey”
4. “Bid Bond” (Original)
5. “Proof of Eligibility to Bid” (Ownership or Agreement for
Rent of Marine Vessels)
6. Bidders company submittals
a. Corporate registration certificate
b. Registration at the Chamber of Commerce
c. Copy of VAT Registration Certificate
d. If the bidder is a joint venture, signed copy of JV agreement
e. “General Information Form” (Bid Form 11)
f. Statement of legal status to perform Service
7. “Representation on Financial Capability” (Bid Form 8)
8. “Undertaking on Conflict of Interest”
9. “GOSI Certificate of Registration”
10. “Declaration” (Bid Form 14)

Technical Documents
1. “Record of Experience” (and back-up documents)
2. “Mobilization Schedule” (Form and schedule) (Bid Form 9)
3. “Work Plan”
4. “List of Key Personnel” (and cv’s) (Bid Form 10)
5. “Organization Chart”
6. “List of Subcontracts” (Bid Form 12)
7. “Intent for Contract” with Subcontractors (Bid Form 13)
8. “List of Marine Vessels and Major Equipment” (Bid Form 15)
9. “List of Equipment” (Bid Form 16)
10. “List of Standard Consumable Materials”
11. “Quality Assurance and Quality Control (QA/QC) Plan”
12. “Safety Plan”

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