Nigeria: Chevron Seeks Contractors for Tubu Field Development

27 June 2001

Lagos — Chevron Nigeria Limited (CNL) seeks to pre-qualify contractors for the completion of its Tubu oil field development project located offshore in the Bight of Bonny Island, the company said Wednesday in an advertisement published in the press.

It said the work requires a Floating Storage and Offloading system to be integrated in an existing sub-sea pipeline, originally part of its Ima Terminal. The announcement says the FSO shall import crude oil via submarine hoses from an existing Pipeline End Manifold (PLEM). The FSO will also export crude oil to tankers via an existing submarine pipeline, submarine hoses and another existing PLEM, located about a nautical mile further offshore in slightly deeper water.

The invitation to bid covers the marine systems including the FSO, FSO mooring and import/export submarine hoses.

The project would require accelerated execution with the FSO fully operational (first oil) by August 2002 (on location July 2002). The contract award is scheduled by January 2002, the ad says.

The scope of work, according to the advertisement, is based on the acquisition of an existing tanker and converting it into an FSO for a useful and uninterrupted life in the field for 10 years. It adds however that use of an existing FSO "will be seriously considered if available."

The scope of work will include, but is not limited to the following: * Survey, evaluation and selection fo an existing tanker for conversion to an FSO. * Evaluation and selection of cargo hoses. * Acquisition of the selected tanker. * Acquisition of the selected cargo hoses. * Front end and detailed engineering fr the vessel refurbishment and conversion to an FSO. * Refurbishment and conversion of the FSO, including purchase of long lead-time equipment. * Transportation, installation, start-up and commissioning of FSO. * Mobilise/demobilise to site all the equipment/plant and personnel necessary for the successful installation of the FSO. * Community and security arrangement for a peaceful and safe execution of the project.

Interested companies are requested to submit full details of their profiles, certificate of incorporation, organisation structure, and company financial details and audited accounts for the past recent three years.

They should also indicate purchase of long lead-time equipment structure and available manpower, with a list of key professional staff with their resumes, as well as location and layout of contractor's facilities.

The interested companies are also requested to submit their experiences on projects of similar scope over the past 10 years, with empasis on projects undertaken in Nigeria with Nigerian content.They should also indicate the equipment that the contractors currently own, with proof of ownership.

Due to the short time frame for the execution of the task, contractors are requested to provide information on: * Possible FSOs that the contractor may be considering for the Tubu field * Possible candidate tankers that the contractor may be considering for conversion to an FSO for the Tubu field. Interested companies are requested to submit their applications in four copies put together in a binder and sealed envelope marked: "CONFIDENTIAL - TUBU FIELD DEVELOPMENT -FSO" and addressed to: Chevron Nigeria Ltd, 2 Chevron Drive Lekki Peninsula, PMB 12825, Lagos, Nigeria Attn: Manager-Internal Controls

The applications should be received not later than July 18, 2001.

CNL is a subsidiary of Chevron of the United States of America.It is the operator of a joint venture between Chevron and the Nigerian National Petroleum Corporation. The joint venture, owned 60 percent by NNPC (on behalf of the government) and 40% by Chevron, currently produces about 460,000 barrels per day. CNL hopes to raise this to 500,000 barrels per day in 2002. The Tubu field project is expected to contribute to the planned increase in production.

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