APPROVED

D.K. Khassanov

President of Karazhanbasmunai JSC

Agreed with:Agreed with:

K.A. IzmukhanovYuan Mou

Vice – President Vice – President

On Technical Issues on Technical Issues

Agreed with:

Wang Wenbin

Director of Capital Construction Dpt

TECHNICAL ASSIGNMENT

FOR MAKING PROJECT & ESTIMATE DOCUMENTATION

FOR CONSTRUCTION OF RESERVOIR WATER PURIFICATION PLANT

AND PRODUCING BOILER WATER FOR STEAM GENERATORS

IN THE AMOUNT OF 10000 M3 \DAY

KARAZHANBAS OIL FIELD

REPUBLIC OF KAZAKHSTAN

(FEASIBILITY STUDY)

Aktau 2013

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

TABLE OF CONTENTS

CHAPTER 1Introduction3

CHAPTER 2Technical Specifications3

CHAPTER 3Principal Requirements set to Tender Documentation pack

from bidders 7

CHAPTER 4Main criteria for choosing the contractor10

CHAPTER 5Work Scope11

CHAPTER 6Technical Specifications of Facility 12

CHAPTER 7Requirements to Automation12

CHAPTER 8Work Plan \ Schedule14

ATTACHMENT 1Water properties. Water analysis results15

ATTACHMENT 2Layout of DNS-2 station18

ATTACHMENT 3General Layout of DNS-219

ATTACHMENT 4Construction conditions20

ATTACHMENT 5Volga water analysis results21

ATTACHMENT 6General Layout of PPG-222

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

CHAPTER 1. INTRODUCTION

1.1This facility is designated for purifying the produced reservoir water from DNS-2 station with the treated water further to be used in steam generators for producing steam for injection into formation.

1.2This Technical Assignment is developed for conducting an open tender to identify the would-be contractors \ services suppliers and choose the most applicable equipment and efficient technology for desalination of produced water and making feasibility report.

1.3Designing and construction companies (both local and foreign bodies), equipment manufacturers that possess the respective treatment technology are invited to participate in the tender

1.4Participants of the open tender for feasibility study shall develop at least three options for reservoir water desalination, submit engineering & economic assessment and justification for the offered technology

1.5Should there be any differences \ discrepancies between versions of this document the Russian version shall prevail.

1.6Tender documentation package for review to be provided in bilingual option, whether, as a Russian-English or a Russian – Chinese pair.

CHAPTER 2 TECHNICAL SPECIFICATIONS

2.1Location

Karazhanbas oil field is located in the north-west portion of Buzachi peninsula, Mangistau Region, Kazakhstan (Figure 1.1). The specific feature of the terrain here is a large number of sors \ salt marshes that are very adverse for trucks and other vehicles. The positive forms of the landscape are sand dunes and remains of core rocks. Climate is sharp continental with winter temperature from – 34 to + 45 in summer time. Atmospheric precipitations are most fall at autumn – winter period. To the north-east from Karazhanbas field, some 20-55 km there are acting fields like North Buzachi, Kalamkas and Arman. Karazhanbas is connected with Aktau, municipal center of the region, by an asphalt highway. Other highways near the field are roads to Shetpe and Fort-Shevchenko towns. The closest inhabited locality is Shetpe, 150 km away from the field, where there is a railway station.

Reservoir water purification plant is planned to be built at PPG-2 area (Construction site is as large as 14400 m2) located next to DNS-2 station which shall supply the produced water to the plant about 20000 to 22000 m3 daily. Within 5 forthcoming years there is a chance that the volume of produced water may well come up from 25000 to 30000 m3 daily. If necessary it can be transported through existing pipelines from CPC shop to the designed water treatment plant. Also, the purified technical water can be collected from the nearby KOS-2 (sewage treatment facility) as much as 300 m3 a day.

The major part of the mineralized water is intended to be pumped to DNS-2 via BKNS and to disposal wells, i.e. to the formations. The desalinated water along the existing Volga water line is delivered to PPG-3.4

Map of Karazhanbas field location

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

2.2Available outdoor engineering networks

2.2.1Gas pipeline Du – 250 mm

2.2.2Power supply from ORU-35kV distribution block with two transformers 16 MVA each

2.2.3BKNS pumping station for produced water

2.2.4Wastes gathering pit for disposing the dirt

2.3Existing facilities inside PPG-2 site

When developing feasibility study it is recommended to use the existing lines and facilities located along the perimeter of the site.

2.3.1ZRU 35\6Kv – 1 unit

2.3.2KTPN 1000 \6\0.4 kWt – 2 units

2.3.3Gas pipeline Du – 250 mm \ 0.6 MPa

2.3.4V-300 m3 tank – 5 units

2.3.5V-1000 m3 tank – 3 units

2.3.6Underground drainage tank V-40 m3 – 2 ea

2.3.7Roofed area from steel structures

2.3.8Slime pump station of container type – 1 ea

2.3.9Offices

In case the mentioned equipment are impossible to use during production operations, the work project shall provide for uninstallation of such equipment

See Attachment 6. General Layout Plan PPG-2

2.4Construction conditions

See Attachment 4

2.5 Analysis of Volga water

See Attachment 5

2.6 Other conditions

Costs of gas, water, electricity

Gas – 17.270 tenge \ m3,

Volga water – 474.91 tenge \ m3

Electricity – 13.44 tenge \ kW

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

CHAPTER 3 PRINCIPAL REQUIREMENTS SET TO TENDER DOCUMENTATION PACK FROM BIDDERS

3.1Submit the following data:

3.1.1Presentation documents describing the suggested purification technology for produced water and drains of the similar composition;

3.1.2General layout plan for equipment, specification of materials and equipment, prices for materials and equipment, overall associated costs for the facility;

3.1.3Respective descriptions.

3.2In their the Quotations would-be suppliers shall specify the value of the facility construction on turn-key basis (ex VAT) where the value shall include designing jobs, costs estimation, procurements, construction and assembly operations, commissioning, etc. :

3.2.1The value of designing includes: development of the project and all associated documentation for water purification facility, getting approvals from all regulatory governmental bodies, national appraisal organization, other expenses, for using water in PPG-3

3.2.2Costs of construction & assembly jobs include: procurement of materials, equipment and structures, transportation expenses, installation, workforce involved, construction and special vehicles and trucks;

3.2.3Inspection from manufacturers during equipment, etc., fabrication procedure jointly with representative of Customer that supervises the quality of work (indicate requirements and due dates);

3.2.4Expenses for commissioning phase;

3.2.5Training expenses;

3.2.6Mobilization and demobilization costs for construction equipment and vehicles, personnel;

3.2.7Costs for building the temporary camp\ dormitory for construction site;

3.2.8Provide organigram chart when the facility has been put in operation: engineers, operating personnel.

3.2.9Other associated expenses.

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

VALUE OF FACILITY CONSTRUCTION OPERATIONS ON TURN-KEY BASIS (EX VAT)

No / Costs / Price (x 103$) / Remarks
1 / Designing costs
2 / Construction & assembly costs
3 / Supplier inspection
4 / Commissioning costs
5 / Training expenses
6 / Re-location costs
7 / Camp construction costs
8 / Other expenses
Total

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CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

VALUE OF CONSTRUCTION AND ASSEMBLY JOBS (incl equipment, materials)

No / Equipment, materials, structures and specifications / Measure unit / Q-ty / Manufact prices / Transport costs / Install costs / Dimentions / Manufacturer / Weight, kg / Remarks

Note:

i)installation of equipment in module blocks: to be filled as specified in the above table

ii)amount for installation of equipment in module blocks: list all materials required for installation and assembly jobs in module blocks in line with the table above

iii)materials and equipment to be split into groups as per designation: including technology, power supply, engineering lines, construction (foundation, erections, etc.,), drainage, heating and etc., prices for materials and equipment in module blocks are not needed to be shown separately

iv)for comparing the costs fill the table above also for the option when installing the equipment of non-module type

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CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

3.3Estimate the operating expenses (prime costs) per one cubic meter of fresh water including depreciation of the facility (up to 2020, average annual depreciation) and costs for utilization of salt water and solid wastes, operating personnel expenses, chemical agents and materials

3.4Come up, as per properties of fresh and salt water produced in the designed water treatment facility, with an option of expanding or modernizing PPG-3,4 existeddemineralized water facility(if necessary) and estimate the investments required for it

3.5MakeProvide a list of devices to analyze the purified water qualitywhen launching the water treatment facilities

3.6Provide information on previous similar designing contracts

3.7Contractor, if needed, may supply a pilot plant to the field.

CHAPTER 4. PRINCIPAL CRITERIA WHEN CHOOSING THE CONTRACTOR

4.1 The feasibility study made by contractor must be physically viable and refer to a similar object

4.2 After Customer selects the options of FS with the appraisals of experts about technical viability of the chosen FS, the general assessment shall then be made along the below pointed principal criteria set to contractor:

a) most efficient technology for water treatment

b) value of facility construction on turn-key basis including construction & costs estimate documentation

c) costs for producing 1 m3 of fresh water

4.3 Value of the facility construction on turn-key conditions must realistically reflect the current market prices

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

CHAPTER 5. WORK SCOPE

5.1 Design the feasibility study for the water treatment plant including workflow chart, general layout plan, other necessary schemes and plans, instructions, list of equipment and materials, estimation of costs for plant construction, operating costs. Feasibility study must correspond to requirements of turn-key tender.

5.2 When developing the feasibility study one has to take into account an expansion of the reservoirwater treatment plant capacity up to 20000 m3 \ daily, i.e. assume space for more equipment. It is necessary to bear in mind possible equipment \ parts thereof, etc., failures during operation period and provide for emergency measure to keep the plant in service continuously under minimum and medium capacity modes.

5.3 Work scope of the contractor that develops FS includes technical assignment for further designing and construction of the facility on turn-key basis

5.4 Upon completion of FS the contractor shall present it to Customer for review and approval and make necessary corrections, if a case, as may be instructed by Customer while reading the feasibility report.

5.5 In case Contractor installs a pilot plant in the field of Karazhanbas in order to prove the efficiency of suggested water treatment technology, then, all expenses associated with such experiment shall be covered by Customer ONLY in the event the result of the test appears positive (not over 5 MM tenge).

CHAPTER 6 TECHNICAL SPECIFICATIONS OF FACILITY

6.1 Water supply source

Water source is:

a)DNS-2 20000 m3 \ day. It is necessary to build a pipeline from steel tank RVS-5000 m3 No3 located within DNS-2 area and to the inlet on water treatment plant pad. Temperature of the input reservoir water – about 30 C

Attachment 1.1 displays the properties of input water, water analysis results

Attachment 1.2 displays the results of analysis for oil content and impurities in water at DNS-2 station

Costs for pipelines and equipment outside the water treatment station are not included into value of the facility construction on turn-key basis, only designing phase.

For DNS-2 see Attachment 2. Layout of DNS-2

6.2 Parameters of treated water:

Reservoir water after the plant is split into portions: first – low mineralized water (fresh water for the purpose of this Assignment is meant as specified in item 6.2, second – water with high salt concentration (salt water meaning is as specified in item 6.2)

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

a)fresh water

fresh water – daily output is 10K tons. 10 K tons daily along the existing Volga water pipeline is delivered to PPG-3 and SPGU for steam generation. Expenses for pipelines and equipment outside the water treatment plant area are not included into the value of the facility on turn-key basis, only designing phase.

b)salt water

salt water – from BKNS (near DNS-2) is injected into formation. Salinity ratio of the water must not exceed 65 K mg\l

For DNS-2 see Attachment 2, Layout of DNS-2 station

6.3 Removal of dirt

Dirt shall be removed by customer be means of dirt trucks (ACN)

6.4 Membrane type purification plant (if available)

1 / Row of membranes / Each row must be operated separately
2 / Warranty for membranes / From 3 years
3 / Operating mode / 24 hours \ day

6.5Requirements to the technology, operating mode of the facility

Operating mode of the Plant is continuous

CHAPTER 7 REQUIREMENTS TO AUTOMATION

Automation of operating systems to be accomplished in accordance with the requirements of Kazakhstan standards as well as in line with generally recognized designing practices and while doing the designing job the most modern and successful solutions to be taken into consideration.

7.1 Remote control for the equipment in operation from Operator’s room

7.2 Automatic purified water quality control to be assumed at the outlet of the system with data transmitting to the Operator’s;

7.3 Develop data management and transmission system compatible with central dispatcher service;

7.4 Create automatic industrial control system;

7.5 Integrate hardware and software units of automatic control system into a uniform information management system. Unification and compatibility within the frame of the system to be provided for;

7.6 Multi-level blocking and safe system that promptly respond to emergency situations and failures to insure a safe and accident free shutdown of all equipment;

7.7 Emergency protection system must satisfy the respective requirements set to safety levels for industrial equipment, relevant standards.

7.8 While making feasibility report it is imperative to bring a justification for the required safety level for the emergency protection system and in whole, for the entire automatic control system

7.9 Stipulate that the control instruments are accomplished in line with specifications for the given climatic conditions

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

CHAPTER 8. WORK SCHEDULE

8.1 After signing the contract for developing the feasibility report – 2.5 months, the period set for reviewing the study by Customer and corrections on part of Contractor is 1 (one) month

8.2 Contractor shall prior to signing the contract provide to Customer a work schedule for the project.

8.3 In case Customer, after the work schedule is approved, approaches Contractor with claims that contract terms and conditions are not complied with, then, Customer is obliged to remedy any such non-compliances within 7 days time and perform all the work in accordance with obligations and duties under the contract. Customer reserves the right to distribute its actions in line with work schedule.

8.4 Contractor shall timely notify Customer in case any problem arises that may have negative consequences. If Customer indicates that certain points of work schedule are not in line with new terms of contract or work schedule does not coincide with actual work flow or intentions of Contractor, then, Contractor must make necessary adjustments to the work schedule and submit it to Customer;

8.5 Contractor shall on weekly basis provide Customer with work flow report where the form of such report to be agreed between parties.

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

ATTACHMENT 1. WATER PROPERTIES. RESULTS OF WATER ANALYSIS

The below data are just for reference purposes and Contractor, when developing a feasibility study, shall ascertain the information and make the necessary adjustment if this is the case.

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

ATTACHMENT 1.1

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

ATTACHMENT 1.2. RESULTS OF ANALYSES FOR HYDROCARBONS AND IMPURITIES IN WATER

The below data are just for reference purposes and Contractor, when developing a feasibility study, shall ascertain the information and make the necessary adjustment if this is the case.

Hydrocarbons 2013. xls

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

ATTACHMENT 2.

LAYOUT PLAN FOR DNS-2 STATION

The below data are just for reference purposes and Contractor, when developing a feasibility study, shall ascertain the information and make the necessary adjustment if this is the case.

Layout Plan of DNS-2 station

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

ATTACHMENT 3.

GENERAL PLAN FOR DNS-2 STATION

The below data are just for reference purposes and Contractor, when developing a feasibility study, shall ascertain the information and make the necessary adjustment if this is the case.

General Plan of DNS-2 station

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

ATTACHMENT 4.

CONSTRUCTION CONDITIONS

The below data are just for reference purposes and Contractor, when developing a feasibility study, shall ascertain the information and make the necessary adjustment if this is the case.

  1. Construction conditions

Road – climatic conditions for construction siteV

Absolute maximum for air temperature44 C

Absolute minimum for air temperature-34 C

Average annual precipitation level 140 mm2

Snow cover thickness with 5 % excess30 cv

Wind pressure \ velocity for wind region IV as per SNIP norms48 ku\cm

Wind loading category (as per SNIP norms 2.01.07-85 – Loads and pressures)III

Seismicity category (as per SNIP norms II-7-81: Construction in seismic areas.

Designing norms6

  1. Physical and mechanical properties of the soil at DNS-2 station

Physical & mechanical properties of soil at DNS-2. pdf

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

ATTACHMENT 5

Volga water analysis

The below data are just for reference purposes and Contractor, when developing a feasibility study, shall ascertain the information and make the necessary adjustment if this is the case.

Analysis of formation and Volga river water samples from NIPIneftegaz JSC.pdf

CAPITAL CONSTRUCTION DEPARTMENT OF KARAZHANBASMUNAI JSC

ATTACHMENT 5

GENERAL PLAN OF PPG-2

The below data are just for reference purposes and Contractor, when developing a feasibility study, shall ascertain the information and make the necessary adjustment if this is the case.

General Plan of PPG-2

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