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NOTICE INVITING OFFERS FOR ТНЕ EXPLORATION
AND PRODUCTION OF OIL AND NATURAL GAS UNDER ТНЕ
SECOND LICENSING ROUND (SL 2013-01)
PETROLEUM RESOURCES DEVELOPMENT SECRETARIAT
GOVERNMENT OF SRI LANKA
2013
2
CONTENTS:
INTRODUCTION .................................................................................................................................. 3
MAIN FEATURES OF TERMS OFFERED ...................................................................................... 3
SCHEDULE OF THE LICENSING ROUND ..................................................................................... 3
BIDDABLE TERMS .............................................................................................................................. 4
BID FORMAT ........................................................................................................................................ 4
BID INFORMATION PACKAGE ........................................................................................................ 4
DATA AVAILABILITY AND DATA PACKAGES .............................................................................. 4
BID CLARIFICATIONS AND COMMUNICATIONS ........................................................................ 6
FORMAL BID SUBMISSION AND OPENINIG ................................................................................ 6
BIDERS ASSESSMENT AND BID EVAULATION .......................................................................... 7
Technical capability of the Operator: ............................................................................................ 7
Financial capability: .......................................................................................................................... 7
Work Programme: ........................................................................................................................... 8
Fiscal package: ................................................................................................................................. 8
Local Content: ................................................................................................................................... 9
Evaluation Basis and Weighting Parameters ............................................................................... 9
Bid rejection criteria ......................................................................................................................... 9
Consequence of furnishing false/misleading information/data .................................................. 9
PRA NEGOTIATIONS ....................................................................................................................... 10
WAIVER ............................................................................................................................................... 10
ANNEX 1. BLOCKS ON OFFER UNDER ТНЕ SECOND LICENSING ROUND .................... 11
ANNEX 2. МАР OF BLOCKS ON OFFER UNDER ТНЕ SECOND LICENSING ROUND .... 12
ANNEX 3. KEY MODEL PETROLEUM RESOURCES AGREEMENT (MPRA) TERMS AND
CONDITIONS: .................................................................................................................................... 13
ANNEX 4. OVERAL DESCRIPTION OF THE POINT SYSTEM TO BE USED FOR
EVALUATION OF BIDS RECEIVED ............................................................................................... 17
Work Programme: .......................................................................................................................... 17
Fiscal Package and Local Content .............................................................................................. 17
3
INTRODUCTION
The Government of Sri Lanka, represented by the Petroleum Resource Development Secretariat (PRDS), announces the Second Licensing Round (SL 2013-01) consisting of up to thirteen (13) offshore exploration blocks in the Cauvery and Mannar Basins. Technically and financially competent foreign and domestic bidders are invited to bid for one or more blocks on offer, which lie in water depths ranging from under 10 meters to over 3000 meters.
Bidders may bid singly or in association with other companies through an unincorporated or incorporated venture. In the interest of competition and diversity, the Government is keen to encourage a range of technically qualified operators and partners to Sri Lanka. It may, therefore, where there is more than one bid on a particular block, request through negotiation the possibility of forming joint ventures.
Foreign/Domestic bidders can have up to а 100% of initial participating interest.
Definitions used in this Notice Inviting Offers (NIO) are those defined in the Model Petroleum Resources Agreement (MPRA).
This document is issued solely for the assistance and guidance of potential bidders and replaces previous communications from PRDS.
MAIN FEATURES OF TERMS OFFERED
Some of the features offered by the Government are:
• An eight year exploration period divided into three consecutive phases of 3, 2 and 3 years respectively;
• Biddable work programme for each phase with a minimum one well commitment per phase.
• А range of biddable fiscal parameters.
• Percentage of revenue allocated for the recovery of Petroleum Costs is 80%;
• А fiscal stability provision
• Operations shall be subject to applicable Sri Lanka legislation and regulation. Furthermore, bidders shall be subject to the fiscal legislation of Sri Lanka.
• The successful bidder will be required to enter into а Petroleum Resources Agreement (PRA), which shall be negotiated based on the Model Petroleum Resources Agreement (MPRA).
SCHEDULE OF THE LICENSING ROUND
The schedule for the Second Licensing Round is provided as below. This schedule is only
indicative. PRDS reserves the right to modify or suspend it, provided appropriate notice is
given.
4
Event Date
Second Licensing Round Announcement 19th
February 2013
Bid Documents issued to the industry 7th
March 2013
Lease of Data Package commences 7th
March 2013
Road Show in Houston 7th
March 2013
Road Show in London 12th
March 2013
Road Show in Singapore 21st March 2013
Final deadline for submission of bids 30th
September 2013
Opening of bids received 30th
September 2013
Bid evaluation October 2013
Notification to winners October 2013
Petroleum Resource Agreement Negotiations November 2013
Signing of Petroleum Resource Agreements Q1 2014
BIDDABLE TERMS
Bidders are required to bid for:
• А Minimum Exploration Work Ргоgгammе. The programme must be submitted for all three exploration phases. The First Exploration Phase must carry а firm commitment ргоgгаmmе. However, bidders may also elect to bid а firm commitment through the Second and Third Exploration Phases;
• A Fiscal Package. The Fiscal Package shall consist of the amount offered as а Signature Bonus, the amount offered as а Production Bonus, the Royalty percentage, the Percentage share of Profit Petroleum at various daily production tranches and the amount offered for a Training Fund.
A conceptual Local Content Development Plan shall be prepared by the bidders in line with Sri Lanka Local Content Guidelines and submitted as part of the bid package.
BID FORMAT
A bidder is required to submit a bid in accordance with the "Format for Submission of Bids", which is available on the website of PRDS at www.prds-srilanka.com.
BID INFORMATION PACKAGE
The Bid Information Package giving details of the blocks on offer, their geographical location on а map of Sri Lanka, the terms and conditions, bid format, а copy of the MPRA, а data list and other information relevant to this licensing round is available to bidders free of charge.
Copies of these documents are available for downloading from the PRDS website at www.prds-srilanka.com.
DATA AVAILABILITY AND DATA PACKAGES
i) Digital copies of the data packages on а work station, with interpretation
5
facilities, will be available for inspection at Data Rooms for the Second Licensing Round (SL 2013-01) in Houston, London, and Singapore during March 2013 on the dates mentioned against each of these locations on the PRDS website. Potential bidders wishing to attend these viewing opportunities should book attendance as provided on the PRDS website. Terms and conditions of the Data View Agreement will apply, a copy of which is available on the PRDS website. The PRDS Data Room will additionally be opened in Colombo after conclusion of the Houston, London and Singapore events.
ii) A Summary Data Package is available for applicants to be purchased for
US$ 20,000.00 from PRDS on the terms of Data Use Agreement. This Summary Data Package is obligatory for bidders, and includes vintage seismic and well data, interpretation reports and technical presentation material.
iii) The existing Digital 2D Seismic Data (TGS 2001 and 2005 surveys only)
can be purchased from the Government on the terms and conditions of the Data Sale Agreement. Bidders can purchase such data for all blocks offered under the Second Licensing Round at a special combined price, or on a per line km basis for individual lines or blocks.
Bidders wishing to purchase the Summary Data Package or existing Digital 2D Seismic Data shall apply directly to:
Mr. Ajantha Meththasena Data Manager Petroleum Resources Development Secretariat Level 06, Ceylinco House 69, Janadhipathi Mawatha Colombo 01 Tel: +94 11 2332002, +94 11 2332004, ext. 209 Fax: +94 2332003
For any bid to be valid, every bidder or all consortium members, as the case may be, is required to purchase at least the obligatory Summary Data Package, and the operator is required to acquire the Existing digital 2D seismic data available across the block. As part of a bid package the bidder is required to provide a proof that it has purchased the requisite Summary Data Package and the relevant seismic data.
For the avoidance of doubt, any company participating in the licensing round either as an Operator or as a consortium partner, will be required to purchase the obligatory Summary Data Pack, and existing Digital 2D Seismic Data only across the blocks on which it is bidding if it is an Operator.
Once an award is made to а consortium, the other non-operating members of the consortium are required to purchase 2D seismic data at least across the awarded block, if they have not done so earlier, based on а cost escalation, depending on the number of companies involved according to the following formulas:
• For two companies - 1.5 x cost; • For three - 1.8 x cost • For all incremental partners, 25% of cost.
6
BID CLARIFICATIONS AND COMMUNICATIONS
Bidders interested in clarification or seeking any further information should contact Mr. Saliya Wickramasuriya, Director General, PRDS at the contact numbers or email addresses provided below.
Mr. Saliya Wickramasuriya Director General Petroleum Resources Development Secretariat Level 06, Ceylinco House 69, Janadhipathi Mawatha Colombo 01 [email protected] Tel: +94 11 2332002, +94 11 2332004, ext. 201 fax + 94 11 2375672
PRDS reserves the right to ask for any clarification from bidders on any matter before award of the agreement.
FORMAL BID SUBMISSION AND OPENINIG
Two hard copies of bids should be submitted, along with а СD ROM containing а digital copy in both Microsoft MS Word and Adobe Acrobat PDF formats, in а sealed envelope labeled "Confidential" "Bid under the Second Licensing Round (SL 2013-01) for block(s) _____ " not later than 1500 hours Sri Lanka Standard Time (SLST) on 30th September 2013.
Bids should be submitted to:
Chairman - Petroleum Resources Development Committee, Via Mr. Saliya Wickramasuriya Director General Petroleum Resources Development Secretariat Petroleum Resources Development Secretariat Level 06, Ceylinco House 69, Janadhipathi Mawatha Colombo 01 Sri Lanka
Pubic opening of all bids will take place before the authorized representative(s) of the bidders(s) limited to one representative per bidder at 1500 hours Sri Lanka Standard Time (SLST) on the same day at the above address.
Bidders intending to be present during the bid opening should deputize their authorized representative and inform the Secretariat via Mr. Wickramasuriya of the representative’s name in advance. This process will be restricted to confirmation by each bidder that their own bid has been received, opened and countersigned. No information will be made public regarding the content of each specific bid or those of competing bidders, as the bids will then proceed to an evaluation process by the Evaluation Committee appointed by the Government of Sri Lanka with а view to announce awards by the end of October 2013.
7
BIDERS ASSESSMENT AND BID EVAULATION
i) The following main parameters will be considered in assessing applicants on
the basis of the "Format for Submission of Bids":
Technical capability of the Operator:
Assessment of the technical capability of the proposed Operator against а bid will, among
other aspects, be based on experience of an applicant as an operator (e.g. in terms of
number of years, acreage holding, experience of the members of it permanent technical
personnel in exploration and production, etc.), average accretion of Proved and Probable
reserves (2Р), average annual operated net production and deep water operations.
Technical capabilities of the non-operating bidders will also be taken into consideration.
Where а parent company endorses the bid and undertakes to provide а financial and performance guarantee, if the bid is declared successful then the technical parameters of the parent company of the designated Operator would also be considered for assessment of such capabilities. If the applicant company or Operator of а consortium of companies cannot demonstrate sufficient technical capability and experience to carry out the committed Minimum Work Programme, then the application will be rejected. The past performance of the bidder, including the track record of the bidder or the consortium members in respect of court cases or any other basis, may be taken into account by the PRDS and on this consideration or any other consideration, at the sole discretion of the PRDS, any or all bids may be accepted or rejected.
Financial capability:
In order to pass assessment on financial capability parameters, the bidder must furnish as a minimum requirement the following certificate(s): А Certificate from each company's statutory auditor(s) stating that the company has а net worth equal to or more than its share of the committed Minimum Work Ргоgгаmmе. In cases where а parent company financial and performance guarantee is provided, the certificate from the parent company's statutory auditor(s) should be submitted. In the event а company has had more than one statutory auditor in the last three years, then that company will have the option to submit the certificate from the statutory auditor(s) for the latest completed year. Alternatively, a company should furnish a certificate from a reputable recognized financial institution guaranteeing provision of sufficient funds to meet Minimum Work Programme commitments for duration of Exploration Period. In the case where а bidder happens to be the best ranked bidder for two or more blocks, the net worth of the bidder must be equal to or more than the net aggregate cost of the committed work ргоgгаmmе for all such blocks. If the bidder’s net worth is less than the Minimum Work Programme commitments for such blocks, the bids will be considered in order of priority given by that bidder in their bid for the respective blocks. All bidders
8
applying for more than one block should therefore rank the blocks in order of preference. If а bidder fails to furnish the above certificate(s), the bid shall be summarily rejected. Where а financial and performance guarantee of а parent company is provided, the financial capability of the parent company shall be considered for assessment of financial capability of the bidder. ii) The following main parameters of the bid will be evaluated:
Work Programme:
All bidders must submit а Minimum Work Programme for each of the three exploration phases and it is obligatory to commit to а firm work programme for the First Exploration Phase. The Minimum Work Programme in the Second and Third Exploration Phase may be bid as contingent. The Minimum Work Programme submitted by bidders shall be а principal consideration
for evaluation purposes and in particular the extent of any programme which has been
submitted as а firm work programme. However, Minimum Work Programmes that are not
submitted as а firm commitment shall also form part of the consideration.
Bidders shall be required to commit а minimum of at least а 3D seismic work programme for the blocks located in the Mannar basin and 2D seismic work programme for the blocks located in the Cauvery Basin and at least one exploration well must be bid for the First Exploration Phase. Bidders may elect to (and are encouraged to) extend their firm commitment through the Second Exploration Phase or through both the Second and Third Exploration Phases. Whatever the status of the programme, bidders must specify upon application, the Minimum Work Programmes for each of the three phases. In general terms, а more extensive firm work programme (i.e. extending beyond the First Exploration Phase) shall be looked on more favorably. Applicants may be invited to present the technical case for their proposed work programme to PRDS staff in Colombo.
Fiscal package:
Bidders must specify the amounts offered for the Signature Bonus, Production Bonus, Royalty, Training fund and the allocation of Profit Petroleum. The percentage share of Profit Petroleum should ensure an increasing share to the state with increase in the daily production rate.
The fiscal package shall be evaluated in terms of competitiveness and shall be considered in conjunction with the work programme described above.
Those bidders that provide more competitive terms shall be assessed more favorably.
9
Local Content:
The bidders shall submit for evaluation as part of the bid package a conceptual Local
Content Development Plan prepared in accordance with Sri Lanka Local Content
Development Guidelines approved by Director General PRDS to specify bidders
proposals for local content improvement and enhancement. The plan will be
evaluated on the qualitative basis and will form part of Petroleum Resource
Agreement subsequently entered into with the winner.
Evaluation Basis and Weighting Parameters
A bid proposal shall be evaluated on the basis of the Point System to be used for
evaluating bids as described in Annex 4.
The submitted bids will be evaluated according to the following weighting
parameters:
• Work Programme: max 50 points; • Fiscal Terms: max 45 points; • Conceptual Local Content Development Plan: max 5 points.
Bid rejection criteria
The bids could be rejected of the basis of the following criteria:
• Failure to demonstrate via the submitted documentation an adequate technical or financial capability to carry out the committed work program;
• Failure to submit bid in line with the "Format for Submission of Bids" and/or covering all the information/details listed therein;
• Any assumptions, deviations in а bid which are inconsistent with or does not conform to the agreement terms listed in this NIO;
• Government at its sole discretion reserves the right to accept or reject any or all of the bids received without assigning any reason, whatsoever. Bidder shall accept that in no event may a claim be filed against the Government of Sri Lanka, PRDS or any of its affiliates or any of their agents or employees as a result of any such decision.
Consequence of furnishing false/misleading information/data
At any stage following the evaluation of the bids, if any information or data is found to be false or misleading or the bidder has suppressed any material fact which formed part of the bid evaluation, the bid shall be liable to be rejected, and in the case of award of block or execution of the agreement, the award shall be withdrawn or the agreement shall be liable for cancellation.
10
PRA NEGOTIATIONS
Petroleum Resources Development Committee (PRDC) based on the evaluation of the bids received, will award the blocks. Based on the award made, PRDS will enter into negotiation stage to conclude a PRA. The fundamental provisions embodied in MPRA will not be modified as a result of these negotiations.
A bidder shall agree and provide a confirmation to be signed by a duly authorized representative that it has reviewed and analyzed the provisions of the MPRA and agrees that they will be the basis of the PRA that will eventually be signed and that changes in the MPRA will be limited to:
(i) avoid any ambiguity;
(ii) increase clarity.
Such declaration shall be submitted as part of the bid package.
Key provisions of MPRA are specified in Annex 3.
WAIVER
In submitting a bid under the terms of conditions given in this official bid document, any bidder or a member of a consortium submitting a bid accepts the said terms and conditions and waives any recourse to appeal or litigation in any jurisdiction except as provided herein.
11
ANNEX 1. BLOCKS ON OFFER UNDER ТНЕ SECOND LICENSING ROUND
Block
No of seismic surveys for the Block
Seismic survey Name Block_Area
km2
Water Depth range
Water Depth designation
Minimum Signature
Bonus
C-1 3
CC-Lines (Ceyoil Co-operation)
2539.12 10m to 100m
Shallow Water US$200,000 CGG-67 (Onshore) SL - 80
C-2 4
CC-Lines (Ceyoil Co-operation)
2146.96 10m to 100m
Shallow Water US$200,000 CGG-67 (Onshore) SL-81 SL-82
C-3 7
CC-Lines (Ceyoil Co-operation)
2424.02 10m to 100m
Shallow Water US$200,000
CGG-67 (Onshore) SA - 81 SA - 82 SL-80 SL-81 Spec
C-4 4
CGG-67 (Onshore)
4700.15 10m to 1500m
Shallow Water US$200,000 SA - 82 SH - 81 Spec
C-5 3 CGG-67 (Onshore)
3915.675 20m to 2000m
Shallow Water US$200,000 SH - 81 Spec
M-1 6
CC-Lines (Ceyoil Co-operation)
2779.15 20m to 1000m
Deep Water US$1,000,000
SL - 84 SL - 80 Spec SL - 05 SL - 01
M-3 3 SL - 84
3069.21 100m to 2000m
Deep Water US$1,000,000 SL - 05 SL - 01
M-4 3 SL - 84
4301.07 100m to 2200m
Deep Water US$1,000,000 SL - 05 SL - 01
M-5 3 SL - 84
4350 100m to 2500m
Deep Water US$1,000,000 SL - 05 SL - 01
M-6 3 SL - 84
4830 100m to 2500m
Deep Water US$1,000,000 SL - 05 SL - 01
M-7 3 Spec
7630 100m to 3000m
Deep Water US$1,000,000 SL - 05 SL - 01
M-8 2 SL - 05
4918.57 2000m to 3000m
Deep Water US$1,000,000 SL- 01
M-9 2 SL - 05
8127.2 2500m to 3000m
Deep Water US$1,000,000 SL- 01
Geographic description and detailed blocks’ coordinates are available on PRDS web-site at www.prds-srilanka.com.
12
ANNEX 2. МАР OF BLOCKS ON OFFER UNDER ТНЕ SECOND LICENSING ROUND
13
ANNEX 3. KEY MODEL PETROLEUM RESOURCES AGREEMENT (MPRA) TERMS AND
CONDITIONS:
1. Parties to the Agreement: The Parties to the agreement shall be the Government of Sri Lanka and the Awardees’
Company or consortium companies.
2. Type of Agreement: The agreement shall be а production sharing type of agreement. Bidders are free to bid
for any number of blocks, singly or in consortium. Each of the companies participating in
а consortium must have а minimum interest of 10%, and the percentage participating
share of each of the companies in а consortium plus the operator should be specified in
the bid.
3. Commencement of petroleum operation
The Contractor will commence petroleum operations not later than six (6) months from
the Effective Date of the PRA.
4. Conduct of Petroleum Operations
All petroleum operations will be conducted in accordance with applicable Sri Lanka
legislation, forthcoming relevant petroleum and other relevant regulations, DG PRDS
Rules and guidelines.
5. Exploration Period
The total Exploration Period shall be а maximum of eight (8) years divided into three
exploration phases under an Exploration License. The First Exploration Phase shall be
for three (3) years, the Second Exploration Phase shall be for two (2) years and the
Third Exploration Phase shall be for three (3) years.
Bidders must specify the Minimum Work Programme for each of the three phases, but
are obliged to specify а firm commitment only for the First Exploration Phase. Bidders
may elect to commit а firm programme for the Second Exploration Phase or the Second
and Third Exploration Phases in order to improve the competitiveness of their bid.
At the end of the First Exploration Phase, bidders must commit as firm the Minimum
Work Programme for the Second Exploration Phase (which must include at least one
exploration well) in order to continue exploration activity under the terms of the MPRA
(unless the bidder has already elected at the bid stage to commit as а firm commitment
the Minimum Work Programmes defined for the First and Second Exploration Phases).
At the end of the Second Exploration Phase there must be at least а 30%
relinquishment of the Agreement Area and а firm commitment to the Minimum Work
Programme for the Third Exploration Phase (which must include at least one exploration
well) in order to continue exploration activity under the terms of the MPRA (unless the
bidder has already elected at the bid stage to commit as а firm commitment the
Minimum Work Programmes defined for each of the First, Second and Third Exploration
14
Phase.
At the end of the 8th year of the Exploration Period all acreage must be relinquished
except for designated development areas. Where sufficient time is not available prior to
the expiry of the Exploration Period to complete an Appraisal Programme, at the request
of the Contractor,
Exploration Period could be extended for the period not exceeding twenty four (24)
months to enable the Appraisal Programme to be carried out.
6. Development and Production Period
The development and production period shall be granted for initial period of twenty (20)
years under а Development License. The development and production period may be
extended by mutual agreement between the Contractor and PRDS on behalf of the
Government for the period of five (5) years or such period as may be agreed after taking
into account the balance recoverable reserve and balance economic life of the
Field/Development Area.
7. Relinquishment
Contractors are obliged to relinquish at least 30% of the Agreement Area at the end of
Second Exploration Phase. At the end of the Third Exploration Phase, the Contractor
shall relinquish all areas except those in which hydrocarbons have been discovered and
for which an appraisal programme or а development plan has been submitted as per the
MPRA.
8. Bank Guarantee and Penalties
No expenditure obligations shall be prescribed. However, а bank guarantee for 15% of
the Likely Monetary Spend related to any exploration phase(s) with а firm committed
work programme shall be obtained from a Bank registered with the Central Bank of Sri
Lanka and delivered to PRDS. This bank guarantee will be subject to forfeiture plus
there will be an additional financial penalty equivalent to the balance between the
monetary value of the outstanding Minimum Work Programme and the bank guarantee if
the committed work programme is not carried out in the commitment phase.
9. Profit Petroleum
The sharing of Profit Petroleum at various tranches offered by bidder shall be based on
а sliding scale tied to daily production rates as defined in the MPRA. Profit Share
percentages shall provide increasing amounts to the Government with increasing daily
production rates.
10. Valuation
The valuation of crude oil produced shall be based on the international price of similar
reference crude(s) and as set out in the MPRA. Natural Gas shall be sold at an arms-
length price in accordance with the provisions of the MPRA.
15
11. Domestic Supply The Contractor shall be required to make available to the Government the Contractor's
petroleum entitlement from the Agreement Area for the domestic market as defined in
the MPRA.
12. Natural Gas
The MPRA includes separate provisions dealing with the commercial exploitation of
associated and non-associated gas.
13. Assignment
Assignment of participating interest is permitted with the prior approval of the
Government. Approvals for requests for assignment would not unreasonably be
withheld, subject to suitable guarantees and such other terms as may be required,
depending on the nature of the assignment.
14. Advisory Committee
Government shall nominate three (3) members representing the Government and three
(3) members shall be nominated by a Contractor in а Advisory Committee for each block
as described in the MPRA.
15. Taxes and Royalties
Royalty on production of oil and gas shall be offered by bidder at various tranches as a
percentage of the value of the petroleum and shall be based on а sliding scale tied to
daily production rates as defined in the MPRA.
Contractor shall be subject to the fiscal legislation of Sri Lanka and the current Income
Tax rate is 12%.
As an incentive, duty could be waived on imports required for petroleum operations.
16. Bonuses
Signature Bonus and а Production Bonus are biddable and shall be paid by Contractor
in line with the MPRA.
17. National Oil Company Participating Interest
The Government, through its wholly owned subsidiary at its option may (or may not) hold
a; (a) Fifteen percent (15%) for deep water blocks or Twenty percent (b) 20% for shallow
water blocks of Participating Interest in the total rights and obligations of the Contractor
under this Agreement. The Government shall exercise the right to participate by giving
90 days notice to the Contractor of its intention to participate at any time up to one year
following approval of the Development Plan.
18. Foreign Exchange and Currency Control
16
Foreign Contractor is free to convert, export and import foreign exchange arising from
operations and sales arising from activities related to performing its duties under the
MPRA.
19. Data
All data gathered during the course of operation under this agreement shall be the
property of the Government of Sri Lanka and subject to relevant petroleum regulations.
20. Local Preference
Contractor shall give preference to Sri Lankan services, goods and products provided
that such services, goods and products are available on terms equal to or better than
imported goods with respect to timing of delivery, quality and quantity required, price
and other terms.
21. Employment and Training Contractor shall maximize the employment of Sri Lankan nationals possessing the
requisite qualifications and experience in Petroleum Operations.
22. Applicability of Laws
The applicable Sri Lankan laws shall govern a Petroleum Resources Agreement.
23. Arbitration
The Arbitration Agreement shall be governed by Sri Lankan legislation. Arbitration
proceedings shall be conducted in accordance with UNCITRAL rules.
17
ANNEX 4. OVERAL DESCRIPTION OF THE POINT SYSTEM TO BE USED FOR
EVALUATION OF BIDS RECEIVED
The bids will be evaluated based on the following point system: Work Programme:
1st Expl Phase 2nd Expl Phase 3rd Expl Phase
Max Score
(I) SEISMIC Unit $USD Unit $USD Unit $USD 15
(a) 3-D (API) in Sq Km as unit and $USD 7.5
(b) 2-D (API) in Line Km as unit and $USD 5.0
(c) Reprocessing in Sq Km and Line Km as unit and $USD 3-D 1.5
2-D 1.0
(II) GRAVITY & MAGNETIC (API) in line kms as unit and $USD 3
(III) ANY OTHER SURVEYS (API), Seabed bottom, Environmental Baseline etc.
List of Surveys 2
(IV) EXPLORATORY DRILLING, Water Depth (in metres)
30
WD < 400m
Drilled section below sea floor
(metres) WD > 400m
Drilled section below sea floor
metres) $USD $USD $USD
(a) 1st Well
1st Phase 3.0
2nd Phase 2.5
3rd Phase 2.0
(b) 2nd
Well
1st Phase 4.0
2nd Phase 3.0
3rd Phase 2.5
(c) 3rd
Well
1st Phase 5.5
2nd Phase 4.0
3rd Phase 3.5
Total Estimated Expenditure 50
Fiscal Package and Local Content
Bidders must specify the amounts offered for the Signature and Production Bonus, Royalty, and the allocation of Profit Petroleum.
Fiscal package will be given maximum score of 45 points based on the project NPV achieved considering all fiscal package components.
The fiscal package shall be evaluated in terms of competitiveness and shall be considered in conjunction with the work programme and local content described below.
A conceptual Local Content Development Plan shall be evaluated based on bidders proposal with respect to Employment and Training, utilisation of Local Goods and Services, Knowledge and Technology Transfer and will be given a maximum score of 5 points.