To Conduct Maintenance of CPC LACT Meters

July 6, 2015

Terms of Reference

to Conduct Maintenance of CPC LACT Meters

in the Russian Federation and the Republic of Kazakhstan.

1.  General Information.

1.1.  The company is conducting a tender to select Contractor to perform maintenance of systems to measure the quantity and quality of crude oil (LACT meters), of oil quality units in leak detection systems (OQU LDS), to meter gas and conduct measuring parameters of oil (oil assay) in commercial tanks at the territory of the Russian Federation and the territory of the Republic of Kazakhstan.

1.2.  The work should be made by Contractor at all oil and gas metering stations, at oil quality units and at commercial tanks in CPC-R in Russia and CPC-K in Kazakhstan under separate Contracts with CJSC CPC-R and LLC CPC-K with obligatory presence of Contractor experts at the following facilities: in Kazakhstan (settlement Tengiz, city Atyrau); in the Russian Federation (city Narimanov, city Kropotkin, Novorossiysk, settlement Ulan Khol (or settlement Naryn-Khuduk) Chernozemelsky District, Republic of Kalmykia).

2.  Terms and Conditions to Conduct Work and Requirements to be Met by Potential Contractor.

2.1.  Contractor experts should be available to respond a request to visit facilities made by authorized representative of CPC on 24 by 7 basis. The time to respond to the call should not exceed two hours from the moment the notification is made.

2.2.  At Marine Terminal the attendance of Contractor experts should have an around-the-clock shift work pattern ensuring 365 days x 24 hours x 2 persons working regardless of the time of actual vessel lifting.

2.3.  Performing regular maintenance operations (TO) on LACT meter 24-RK-A003, LACT meter 24-RK-A002 in the PS Komsomolskaya at LACT meter 21-RK-A004 at PS Tengiz LACT meter 22-RK-A009, LACT meter 22-RK-A010, LACT meter RK-22 A011 at PS Atyrau should be made after receiving an additional notice by Contractor on beginning the work.

2.4.  All work should be carried out in compliance with:

- MS 3081-2007 GSOEI. Systems to measure the amount and quality of oil, light-oil products and liquid hydrocarbons. Maintenance and repair. Main provisions and list of scope of work on LACT meter TO are specified in ToR herein.

- ST RK 2. 115-2006 Procedures for metrological and technical provisions for industrial operations on systems to measure quantity and quality of oil, mechanical displacement provers and measuring means they comprise;

- Recommendations on determining mass of oil during commercial accounting operations using systems to measure the quantity and quality of oil, approved by instruction of the Ministry of Industry and Power of Russia, No. 69;

- CIS standardization recommendations 100 – 2010 - Recommendations on determining oil mass during commercial accounting operations using systems to measure quantity and quality of oil

- Rules to measure and weigh oil produced at the Contract area, produced by Contractor, approved by the Ordinance of the Government of the Republic of Kazakhstan, No 478, dated May 31, 2006.

- measurement procedures (MP) (or measuring systems - MS) using LACT meters, MS using RVS tanks;

- List of operations to conduct maintenance of LACT meters (involving pipe piston prover - PPP and oil quality control unit OQC), OQC LDS (leak detection system), vertical steel tanks (RVS), and measuring means are specified in this ToR. Contractor should generate operational documentation as hard copies (on paper) and in electronic format as required by effective regulatory documentation.

2.5.  Contractor should comply with requirements set forth by CPC-R and CPC-K in the area dealing with health, industrial safety and environmental protection pertinent to operational practice.

2.6.  Contractor is conducting verification of all Measuring Means, equipment on the annual basis evaluating the status of reporting documents on LACT meters according to the schedule agreed with the Customer followed by submitting a report to the Customer on the audit made. This requirement will be entered into the Contract to be executed.

2.7.  The maintenance should be conducted according to the planned schedule on 24 x 7 basis accounting for the daily availability of Contractor service personnel at the facilities.

In Marine Terminal Contractor experts report to the working areas on a round-the-clock shift schedule basis. The Contractor staff should submit a monthly time sheet to register personnel attendance and the scope of work accomplished to confirm compliance with the shift working pattern.

2.8.  Relocation, vacations and appointments of maintenance experts to work at specific facilities are made only on agreement with the Customer. 2.9.1 The maintenance is carried out using own Contractor reference standards and tools. To verify stationary PPP (provers) of the 2nd category the basic reference mean is provided by Mobile PPP of the 1st category to be provided by Contractor. Contractor should ensure the timely delivery of its own mobile 1st category prover meeting the technical specifications of LACT meter required to verify the stationary prover and flowrate transducers.

The potential Contractor should provide a calibration unit to LACT meter location having another type and documents per list set forth in established manner as reference means to verify stationary PPP of the 1st category.

2.10.  The basic reference standard is provided by a pycnometric installation to be provided by Contractor to check flow densitometers in LACT meter OQU and OQU LDS. Contractor delivers the calibration unit to facilities using own resource.

2.11.  All reference means should have valid certificates of verification and should be fit to operational purpose.

2.12.  Potential Contractor should submit the following:

- statement on agreement to issue warranty for a service provided indicating the number of months;

- proof that the license is granted to provide the kind of service rendered (if required under effective legislation of the Russian Federation and the Republic of Kazakhstan);

- report on the total history Contractor is engaged in LACT meter maintenance operations from the date of company incorporation;

- a list of companies to which the services on maintenance of LACT meters were provided indicating the scope of work, updated phone (or e-mail) contacts and the name of legacy Customers;

- confirmation on qualification of personnel, information on passing specialized training, involving training on measuring oil volume in RVS tanks;

- certificate on training specialists to have authority to conduct calibration of measuring systems (MS);

- the list of experts to work at CPC-R and CPC-K facilities;

- consent on getting prior Customer agreement on relocation and appointment, granting vacations for personnel to be working at CPC facilities;

- consent on daily presence of personnel at Customer’s sites;

- consent to ensure the availability of staff to visit facilities on 24 x 7 basis. Time to respond the call should be no longer than two hours from getting the notification.

- agreement on conducting an annual review of the workflow to maintain the measuring equipment, engineering means; issuing documents on maintained LACT meter according to the schedule agreed with the Customer and according to the List of issues to be covered in auditing report to be submitted (within one week after the audit completion) to the Customer;

- work record of engaging into designing LACT meters, in coding measuring instrument software;

- confirmation of getting awards and diplomas for participation in professional competitions.

- accreditation certificate indicating the accreditation domain to calibrate instruments;

- a list of reference and working measuring means provided by Contractor involving the 1st grade mobile prover required to verify stationary prover and turbine flowmeter transducer (TFMT), calibration rig to verify PPP of the 1st category, reference means to calibrate and verify measuring means installed on LACT meters involving pycnometric installation for verification and calibration of flow densitometers and measuring means to estimate amount of oil in RVS and sampler verification;

- availability of liability policy established;

- duration of maintenance operations on LACT meter (TO) similar to that installed in CPC;

- availability of Customer references indicating updated legacy Customer phone numbers;

- information on court hearing history over the last 5 years;

- terms of payment to settle accounts;

- a license to engage into verification and repair operations (if any) on MS with a list of MS.

- procedures on the types of work within the scope of maintenance of LACT meters.

2.13.  Contractor should provide for the following:

- The composition of teams at sites in compliance with calculated payroll and qualifications to carry out TO within the scope of work outlined in ToR;

- timely delivery of own reference means to Standardization, Metrology and Certification Centre (SMPC) for verification and bring them back using own resource;

- timely delivery to SMPC to verify and bring back to maintained facilities reference measuring means and CPC calibrators accepted for TO using own resource;

- pre-verification checking operations to be made within TO scope of work on reference measuring means accepted for maintenance. If verification means are not verified for technical reasons, Contractor should carry out the adjustment, calibration, alignment, setting graduation pattern and (if required) repair and re-calibration at own expense;

- additional operations involving measurement and sampling of oil in RVS, monitoring sampling in shipper RVS and affixing seals to valves; above activities should be conducted against a CPC power of attorney on request of lead engineers on oil accounting to be agreed with the chief CPC metrologist and Contractor.

- additional activities in the scope of pilot operations (PO) on LACT meters (for newly commissioned oil metering stations which - based on results of PO - can be transferred to Contractor for TO).

- The payment for the actual work made is carried out using signed Certificate on Work Completion.

- development of schedule for regular maintenance (TO) on PPP requires accounting for bringing the subsequent period of PPP TO-3 by 1-2 months earlier than shown in effective certificate to verify PPP.

- high quality and timely execution of works on LACT meter TO in compliance with terms and conditions of the Maintenance (TO) Contract involving strict adherence to TO-3 Maintenance Schedule. Failing to comply with verification of measuring means on the time mentioned in TO-3 results in onset of Contractor’s financial obligations. Claim to cover the loss caused by inflicted damage as a result of disrupted time-lines to verify measuring means will be served in established manner as provided in effective legislation of the Russian Federation and the Republic of Kazakhstan.

- purchasing materials required for maintenance of LACT meters and reference equipment (involving State Standard Samples - SSS - to verify portable densitometer tapes) and recycling waste generated during work should stay within the limits granted and covered by the licenses issued;

- Contractor independently organizes (enters into a direct Contract with a service organization) for providing catering and lodging services for Contractor employees working at CPC facilities.

- establishing a civil liability policy to third parties for any incident dealing with Contractor activities should be no lower than 1,000,000 (one million US dollars) for each occurrence.

2.14.  The Company undertakes responsibilities to provide for the following:

- Local, long distance and corporate telephone communications for solving promptly the operational issues;

- Providing communal rooms at the territory of PS to change clothes and keep working clothes and PPE.

- A room to conduct work on calibration and verification of MS in LACT meters.

- Portable radio stations in amount of 2 pieces per facility;

- Participation of representatives of the State Standard Board and payment for their services for verification of measuring means installed on LACT meters;

- Supplying spare parts and backup operational measuring means;

- Dismantling and installing protection covers after assembly of equipment and devices,
installing thermal insulation cover;

- Providing conditions for checking MS in LACT meters;

- Providing services to send and receive e-mail messages

- Provide technical and accounting documents;

- Allowing free access to the premises of LACT meter dispatch room, to LACT meter maintenance room and to laboratory.

2.15.  In its feedback the bidder confirms a consent to comply with provisions of each item above. Missing information is perceived as a missing option.

2.16.  The bidder should provide the proposal on the maintenance costs broken down into years: 2016, 2017, 2018 for CJSC CPC-R in rubles, and for LLP CPC-K - in tenge without reference on indexation of annual cost of services.

3.  The Scope of Work Offered for Tender in the Russian Federation

3.10.  Maintenance LACT meter by Contractor at facilities of CJSC CPC-R

No / Facility name / Number of lines, DN / OQU / PPP, m3/h / Note /
Central region
1 / PS Astrakhanskaya, LACT meter No 23-RK-A002 (40 km from city Narimanov, 100 km from Astrakhan) / 3 lines - DN 250 / available / 1850 / Until the term advised by CPC
2 / PS Astrakhanskaya, LACT meter No 23-RK-A004 (40 km from city Narimanov, 100 km from Astrakhan) - new / 6 lines DN 400, Ultrasonic flow meter (UFM ) CALDON LEFM 280 CiRN / available / 3000 / After the term advised by CPC
3 / PS Astrakhanskaya, PPP 23-RK-A004 (40 km from city Narimanov, 100 km from Astrakhan) - new / Until additional notice verification of PPP is made according to MS 1972. Verification is made using MP 2974 after getting additional notice on transferring flowrate transducers and PPP into the 2nd category.
4 / Back up LACT meter at PS Astrakhanskaya: / Until the term advised by CPC
ultrasonic flowrate transducer UFM -500 K / 1 pc. / Available / - UFM calibration using reference LACT meter 23-RK-A002 - once a year; MPC TFMT - 6 times a year using FMT of LACT meter 23-RK-A002;
- OQU / Until the term advised by CPC
After getting additional message to carry out verification using FMT of LACT meter 23-RK-A004
flow computer OMNI / 1 pc.
pressure sensor / 1 pc.
temperature probe / 1 pc.
4 / PS Komsomolskaya LACT meter No 24 - / 2 lines DN 50 - TFMT / available / 50 / After the term advised by CPC
RK-A002 (20 km from settlement Ulan Khol, 250 km from Astrakhan)
5 / PS Komsomolskaya LACT meter No 24-RK-A004 (20 km from settlement Ulan Khol, 250 km from Astrakhan) - new / 4 lines DN 150 - mass flowmeters CMFHC2 / available / 600 / After the term advised by CPC
Western region
6 / PS Kropotkin LACT meter No 25-RC-A002 (140 km from Krasnodar, 10 km from Kropotkin) / 4 lines - DN 150 / available / 520
Marine Terminal
7 / LACT meter No 42-RC-A510 (20 km from Novorossiysk) / 8 lines - DN 250 / available / 2000
8 / LACT meter No 42-RK-A520 / 8 lines - DN 250 / available

3. 2 Maintenance of oil quality units in leak detection system (OQS LDS):