Invitation to Bidder for

Provision of EPCC and Rental Service for Simplified Oil Treatment

Facility
Tender No. 004-SC-19

For Proposal Submission: from 08:30AM to 11:30 AM.20th Jan 2019

From: Contract & Procurement Dept / China Zhenhua Oil Co.,Ltd
Sub: Invitation Letter

Dear Sir,
China ZhenHua Oil Co., Ltd., a company as the Contractor and Operator
cooperating with Midland Oil Company, Ministry of Oil, Iraq for the execution of
Development and Production Service Contract (DPSC) signed on May 24th, 2018.
At present, oilfield exploration and development, production and surface engineering
construction are carried out in Iraq.
Here we China Zhenhua Oil co., ltd are very glad to invite you to tender Provision of
EPCC and Rental Service for Simplified Oil Treatment Facility

Please draws up your proposal in best condition and hope you are successful in
bidding.The Proposal is acceptable strictly by hand delivery or express
carrier.Tender Acknowledgement (As attached ANNEX 4)is required within two days
when you'll have received the ITB Documents. Read below description and enclosed
documents:

1. The Bidders.
The Bidders obliged to Provision of EPCC and Rental Service for Simplified Oil
Treatment Facility
The contractor shall provide engineering, procurement, construction,Commission of
for Simplified Oil Treatment Facility，and Rental service for Simplified Oil Treatment
Facility
Selection of the one technical qualified and with the lowest lump-sum commercial
price.
2. The bidder's Submission.

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004-SC-19- ITB
 2.1 Requirements for Technical proposal. Technical Proposals must include following
documents:
 Commit and follow the technical requirement mentioned in the scope of work in the
ITB ,and provide enough technical description for all required items in order to
check by user dept (final technical scope of Work )
 Project Schedule (Details should be listed clearly in technical proposal )
 Contractors must have the ability to finish the related work
 Contractor should provide the engineering drawing in the proposal
 Contractor should provide the details of the main equipment .
 Submit copy of all registration documents belonging for the Company, bidders
commits to provide all original documents before receiving our Letter of Award
Note: Company name in proposals must match up with registration
documents,otherwise company offer will be considered illegal
 Brief of the company potential capabilities and business scale.
 Company introduction and management member CV
 Copy of previous contracts & previous experience approved by the end user
 Tax clearance for the bidder issued from tax office.
 The change or exception of the scope of supply should be stated and clarified
before the proposal ,only the quotation should be qualified based on the change or
exception accepted by Company .
All the Bidders should file in attached Annex 5 Contractors’ Information
Note :All the above documents should be provided in English Version.

2.2 Requirements for commercial proposal.

Part A: the Commercial offer shall include

 The Formal sealed Quotation should follow attached format price list (Annex 2 )
 Provide bid bond 1% of commercial price valid for 90 days from the opening date
(separate enveloped),and the form of bid bond would be bank
guarantee ,check ,Irrevocable letter of credit and any other formal ways accepted
by Company .
 The winner Companies should provide an irrevocable and unconditional
performance guarantee Bond with the value is 10% of contract Price within 30
days against signing up the contract;and the duration should be from the date
signing the contract by both parties and 90 days plus the date all the work was
finished and accepted .

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004-SC-19- ITB
  The winner Companies should provide an irrevocable and unconditional quality
guarantee Bond with the value is 10% of contract Price ,and the duration should
be two years against the date of acceptance of all the work (if the work is EPCC
service )
 The contractor shall pay the announcement fee.
 The Contract price for EPCC Service should be include all the following fees but
not limited :engineering, procurement, construction and commissioning of the
Loading Station upgrading project; and the Rental Service should be include all
the following fee but not limited :engineering, procurement, construction,
commission, mobilization and demobilization, together with all spare parts and
consumables for 6 months plus an optional 6 months.

Engineering fee, cost on products, equipment ,materials,personnel, construction,

tax and all the other related fees for Simplified Oil Treatment Facilities

 Contractors shall fully consider the local employment , local equipment rental from
the land owner of working area, and have the obligation to maintain a good
relationship with the local communities. Otherwise, it may lead to contract
cancellation.
 Contractor shall be responsible to pay any and all taxes and duties levied by Iraqi
government according to the IRAQI taxation law. Company shall deduct
withholding tax from the payment.
 Contractor agrees to indemnify and hold harmless to Company from and against
any and all expenses, claims, costs, damages, losses or liabilities due to or
arising out of Contractor being unable to comply with Iraqi Taxation Laws.
Provided Company is imposed by relevant departments of the Iraqi Taxation
Office and/or other competent authorities any tax penalty due to Contractor fails
to comply with Iraqi Taxation Laws, Contractor hereby agrees that Company shall
be entitled to deduct full amount of all the tax and penalty from any payment
without prior notice to the Contractor.

Part B. Final agreed price shall prevail throughout the duration of the Contract to
be signed between China Zhenhua Oil Co.,Ltd & Contractor shall not be subject
to revision by reason of cost escalation nor currency fluctuation.

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004-SC-19- ITB
 Part C: The General Condition of Contract (ANNEX 3) which Company provides
in Tender Book with Contractor’s official stamp.Any Change of the contract
should be based on the mutual discussion according to the regulation.
China Zhenhua Oil Co.,Ltd kept the right to terminate the contract under condition
that the contractors did not finish all the work stated in work order or contract in
time .
3. Content in this ITB Documents:
 Invitation To Bidder (This letter)ITB
 Annex 1 Technical Scope of Work (See attached documents)
 Attachment 1-1 PTF-1 Plot Plan (See attached documents)
 Attachment 1-2 PTF-2 Plot Plan (See attached documents)
 Attachment 1-3 Simplified Oil Treatment Facilities Process Diagram (See
attached documents)
 Annex 2 Price List (See attached documents)
 Annex 3 General Conditions of Contract (See attached documents)
 Annex 4 Acknowledgement letter (See attached documents)
 Annex 5 Bidders’ Information (See attached documents)
 Annex 6 Format of Bid Bond (See attached documents)
 Annex 7 Security Responsibility (See attached documents)
 Annex 8 Format of Change order (See attached documents)

4. Payment Condition:
All payments will be paid by Company via telegraphic transfer (T/T), upon receipt of invoices:

 Contractor should complete all the work following the instruction of Company,and get
the payment after finished all the work .

 The payment will be based on the actual workload or time-sheet already completed
and confirmed ,accepted by Company.

 Company shall deduct the withholding tax from payment amount. Relevant
commercial invoices must been checked and approved by the financial department in
one month.

 All the payment will be paid within 60 working days after financial department ’ s
approval via T/T to the available bank account outside Iraq,upon received two correct
original commercial invoice ,proof of delivery,acceptance letter of completion by the
user dept.if contractor does not obtain an account outside Iraq，the payment might be
deferred at least for six months

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004-SC-19- ITB
5. Submission of Proposals
Contractor shall submit the Proposals in English language to China ZhenHua Oil
Co,. Ltd.,EBS Project , Naharawan Area, S2-1 Camp ,Baghdad, Iraq before the
deadline of tender. Bidder's Proposals shall consist of:
One Sealed Stamped Envelop for Technical Proposal(including one original ,one
copy, one USB)
one Sealed Stamped Envelop for commercial proposal(including one original ,one
copy, one USB)
one Sealed Stamped Bid bond warranty.
and shall be submitted strictly in accordance with these instructions to Bidder
(ITB).The project name,tender number,Supplier contact information should be
clearly on the envelop .
For the attention of:
Ms. Bao xiaofang
[email protected]
CC to: [email protected]& [email protected]

Proposals must be delivered by hand from 08:30AM to 11:30 AM.20th Jan.2019 to

China ZhenHua Oil Co,. Ltd. EBS Project, Naharanwan Area , S2-1 Camp, Baghdad
Iraq.
on the closing date shown in covering letter,Proposals which are submitted
incomplete, vague or submitted later than the prescribed time, may be deemed non-
responsive, and may be barred from further consideration.

6. Conditions of Contract
China Zhenhua Oil Co.,Ltd. will settle the contract with one or two companies which
pass technical evaluation ,and with the Lowest Lump-Sum Price based on the final
confirmed type of EPCC or Rental .
7. Acceptance/Rejection of Proposals
China Zhenhua Oil Co.,Ltd. will award the project to one or two bidders who have
past the technical evaluation and with the Lowest Lump-Sum Price based on the
commercial proposal against the required workload.
8. Tax

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004-SC-19- ITB
 Contractor shall be responsible to pay any and all taxes and duties levied by Iraqi
government according to the IRAQI taxation law. Company shall deduct
withholding tax from the payment.
Contractor agrees to indemnify and hold harmless to Company from and against
any and all expenses, claims, costs, damages, losses or liabilities due to or
arising out of Contractor being unable to comply with Iraqi Taxation Laws.
Provided Company is imposed by relevant departments of the Iraqi Taxation
Office and/or other competent authorities any tax penalty due to Contractor fails
to comply with Iraqi Taxation Laws, Contractor hereby agrees that Company shall
be entitled to deduct full amount of all the tax and penalty from any payment
without prior notice to the Contractor.

9. Confidentiality
The Invitations letter together with enclosed documents and subsequent
related correspondence shall neither be copied nor used for any purpose other
than the preparation of Proposals.

And all the information in the ITB or contract will be consider as a confidential
content and cannot leak to a third party.

10. Proposal Costs

China Zhenhua Oil Co.,Ltd accepts no liability whatsoever for any costs
incurred by the Bidders in connection with the preparation of the Proposals.

11. Validity of Proposals

Proposals shall remain valid for acceptance for a minimum period of ninety (90)
days from the closing date for submission of proposals.

12. Announcement Fee

Winner of the tender must pay an announcement fee.

13. Transfer
On and after the date of the registration of the branch office of the EBS Project
Company in the Republic of Iraq, a supplementary agreement shall be signed
to secure the entire entitlements of the contracts and documents signed by the
Authorized in the name of ZhenHua to be wholly transferred to the EBS

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004-SC-19- ITB
 Project Company.

Best Regard,
Mr.Wang shaoyu
Contract & Procurement Dept Manager
China Zhenhua Oil Co.,Ltd

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004-SC-19- ITB