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- 1 - SHORT Re-TENDER (ICB) FOR "CHARTER HIRE OF ONLAND DRILLING RIG" (CB-ONN-2009/7) SINTEX OIL AND GAS LTD Kalol – 382721 District Gandhinagar Gujarat, India MARCH 2015 TENDER NO.: SOGL/Drilling/CB-ONN-2009-7/2015-16/01

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    SHORT Re-TENDER (ICB)

    FOR

    "CHARTER HIRE OF ONLAND DRILLING RIG"

    (CB-ONN-2009/7)

    SINTEX OIL AND GAS LTD Kalol 382721

    District Gandhinagar Gujarat, India

    MARCH 2015

    TENDER NO.: SOGL/Drilling/CB-ONN-2009-7/2015-16/01

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    SINTEX OIL AND GAS LTD Kalol 382721, District Gandhinagar, Gujarat, India

    Forwarding Letter

    To Dear Sir, Ref. : Your letter No. Please find enclosed a complete set of Tender documents with respect of our Tender Notice for "Charter Hire of On land Drilling Rig " for drilling up to 15 (fifteen) wells . Initially the contract will be for 04 wells, however SOGL may reduce or increase number of well ,if any in its Oil & Gas field on the same rate, Terms & conditions in Districts Ahmedabad, Mehsana and Gandhinagar within Gujarat State(India). Kindly note the following points in regard to this Tender. Type of Bid : Two Bid System Tender No. : SOGL/Drilling/CB-ONN-2009-7/2015-16/01 EMD/Bid Bond (Bank Guarantee) : Rs. 10,00,000/- (Rupees Ten Lakh) Pre-Bid conference : 27th March 2015, 11:00 Hrs. Due date & time of submission : 02nd April. 2015, 15:00 Hrs. Bid Bond validity upto : 180 days from bid submission date. Bid Validity upto : 240 days from bid submission date. Performance Bond (Bank Guarantee) : @ 7.5 % of the Contract Value. SOGL takes no responsibility for any delay, loss or non-receipt of Tender document by post , kindly note that SOGL reserves the right to reject any or all the tenders and also to accept or prefer any bid for award of contract(s) without assigning any reasons thereof. Yours faithfully,

    for Sintex Oil and Gas Ltd Authorised Signatory

    Document Sr. No. SOGL/Drilling/CB-ONN-2009-7/2015-16/01 Signature of Issuing Officer : Date of Issue : 19.03.2015

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    I N D E X DESCRIPTION PAGE NO.

    BACKGROUND INFORMATION 4

    OUTLINE OF THE SCOPE OF WORK 5

    PART I INSTRUCTIONS TO BIDDERS 6

    PART II GENERAL TERMS AND CONDITIONS 16

    PART III BID EVALUATION CRITERIA 58

    ANNEXURE I PROFORMA OF BANK GUARANTEE FOR BID BOND

    65

    ANNEXURE II PROFORMA OF BANK GUARANTEE FOR PERFORMANCE BOND

    68

    ANNEXURE III EQUIPMENT AND SERVICES FURNISHED BY CONTRACTOR OR OPERATOR FOR THE DRILLING RIG

    72

    ANNEXURE IV RATES APPLICABILITY CHART 76

    ANNEXURE V SPECIFICATION FOR HIRE OF MOBILE DRILLING RIG

    82

    ANNEXURE VI FORM FOR FURNISHING DECLARATION BY THE IMPORTERS OF RIG AND ASSOCIATED EQUIPMENT

    114

    ANNEXURE VII PRICE FORMAT FOR RIG AND ASSOCIATED EQUIPMENT

    115

    ANNEXURE VIII OUTLINE OF DRILLING PROGRAMME 117

    ANNEXURE IX CONTRACTORS PERSONNEL 118

    ANNEXURE X PRICE EVALUATION FORMAT 120

    ANNEXURE XI BEC COMPLIANCE MATRIX 122

    ANNEXURE XII TENTATIVE TIME NORMS FOR DRILLING OPERATIONS

    125

    ANNEXURE XIII HSE QUESTIONNAIRE 126

    IMPORTANT DATES 132

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    BACKGROUND INFORMATION Sintex Oil and Gas Ltd (SOGL) is an Oil & Gas Exploration and Production Company. It is a registered

    Limited Company with the Registrar of Companies, Ahmedabad, India. The Registered office address of

    SOGL is 701, Abhijeet - I, Mithakali Six Roads, Ahmedabad 380006, Gujarat, India.

    SOGL is one of the foremost professionally managed Indian Companies with eminent Board of

    Directors and Technically and Professionally well qualified people having skills of International

    Standards. SOGL has been awarded the following S - Type exploration blocks in Cambay basin, Gujarat,

    India for exploration and production of hydrocarbons, by DGH, MOPNG, Govt. of India under NELP-

    VIII round of bidding:

    Block no. and Area

    CB-ONN-2009/1 ---------- 113 sq.km.

    CB-ONN-2009/2----------- 68 sq. km.

    CB-ONN-2009/7----------- 144 sq. km.

    The production sharing contract (PSC) with MOPNG has been signed on 30th June 2010.

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    OUTLINE OF THE SCOPE OF WORK SOGL is planning for drilling up to 15 (fifteen) wells in Exploration block(s) within district Ahmadabad, Mehsana

    and Gandhinagar which is likely to commence by 2st Qtr. of the year 2015-16. Initially the contract will be for 04

    wells, however SOGL may reduce or increase number of well ,if any in its Oil & Gas field on the same rate,

    Terms & conditions in Districts Ahmedabad, Mehsana and Gandhinagar within Gujarat State(India). The bidder

    should quote strictly as per the price format of tender (Annexure VII) for both 750 HP and 1000 HP rig package

    along with their specifications separately as per Annexure-V. The bids not quoted as per format will not be

    considered. Bids will be evaluated as per Bid Evaluation Criteria (BEC).

    Contractor shall be responsible for all the supplies & services related to drilling activities including Liner

    services except for the following:

    - Rig Foundation, Civil works and approach road to well site.

    - Cementing services

    - Well logging Services including perforations

    - Mud Engineering Services

    - Mud logging Services

    - Activation and Production testing Services

    - Well completion services

    - Well Material, e.g. Well head & XMas tree, Casing & their attachments and Tubing and well

    completion equipments.

    SOGL plans to maintain an optimum schedule balance while drilling the wells. Outline of the drilling

    program is given at Annexure - VIII.

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    PART - I

    INSTRUCTIONS TO BIDDERS

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    INSTRUCTIONS TO BIDDERS 1.0 Sintex Oil and Gas Ltd (SOGL) incorporated under the Companies Act, 1956 having its

    Registered Office at 701, Abhijeet - I, Mithakali Six Roads, Ahmedabad 380006 and its Corporate Office at Kalol 382721, District Gandhinagar, Gujarat invites short tender under Two Bid System on International Competitive Bidding (ICB) towards Charter Hire of Onland Drilling Rig Service from competent, experienced and capable contractors fulfilling the criteria laid down in this tender document, along with their equipment, vehicles, personnel, instruments, materials, spares, stores and other drilling related support services. 1.1 The Bid document will be issued by SOGL in the name of the bidder and is non -

    transferable.

    1.2 Bidders must read the Tender Document carefully and ensure that they can supply all the necessary items, infrastructure and personnel to fully support the operations and achieve the given objectives of the Scope of Work. Any deviation or substitution may be highlighted on a separate statement.

    1.3 The Bidder is expected to and must comply with safety standards in accordance with sound

    international petroleum operations, DGMS and OISD guide lines. 1.4 Bidders must acquaint themselves with the area of operation before submission of the bid and

    shall ensure that they are well acquainted with the job sites, environment including topography, logistics and climate etc. SOGL will in no case be responsible or liable for costs associated with the preparation and submission of bids regardless of the outcome.

    1.5 SOGL reserves itself the right to reject, accept or prefer any bid for award of contract without

    having to assign any reasons thereof. 1.6 SOGL also reserves itself the right to withdraw from the tendering process without assigning

    any reason whatsoever including if the bids received are found unacceptable on a techno-commercial evaluation.

    2 SPECIFIC INSTRUCTIONS

    2.1 A Bidder shall fill in all the forms with relevant details asked for in this document.

    2.2 By tendering an offer to provide the services, Bidder accepts the terms of this Invitation to Tender,

    unless otherwise specified and understand that this does not guarantee the award of contract. Agreed terms shall be included in the Contract and shall be binding on the successful Contractor.

    The bidder is required for completing the wells as per the scope of work of the Tender and may alter as per clause 2.3. The Bidder is requested to bid as per the Annexure-VII and the Price format 2.3 The Bidders are required to submit Price quotes for 750 HP rig package as well as for 1000 HP

    rig package separately. The Price format has been given at Annexure-VII & Price Evaluation format at Annexure-X. The detail specification for both 750 HP and 1000 HP rig shall also be given separately as per Annexure-V by the Bidder.

    3 DURATION OF CONTRACT

    The validity of the contract shall be one year

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    4 DOCUMENTS TO BE SUBMITTED WITH THE BID

    4.1 Bidder shall furnish the following details in the technical part of the bid

    Copies of original documents duly notarized defining the constitution or legal status of the bidder, place of registration and principal place of business and in case of a joint venture or foreign collaboration such details for each party thereto constituting the bidder.

    Details of experience and past performance of the bidder (or of each party to a joint

    venture or foreign collaboration) i.e. Completion certificates from the clients, on work of a similar nature within the past 5 years and details of current work in hand and other contractual commitments, indicating current areas of operation and clients. In case bidder is not satisfying this condition, his joint venture partner has to fulfil the condition without which the bid shall be rejected.

    Name of signatory on Tender, his title / designation and address. Names and signatures

    of those authorised to act on signatory's behalf, countersigned by signatory. In case of joint venture / consortium, MOU supporting the claim for the signatory to be submitted.

    List of all insurances for equipment, personnel and vehicles, which will be provided

    during the period of Contract. Confirmation that Bidders insurances are valid for operations in India.

    4.2 Bio-data including qualifications and experience of crew / key personnel (alongwith valid

    IADC / IWCF certificate).

    4.3 Reports of financial standing of the bidder (or of each party to a joint venture), such as Profit and Loss Statements, Balance Sheets and Auditors Reports for the past three years.

    4.4 Information regarding any current litigation in which the bidder is involved. 4.5 Documentary evidence in the form of detailed description of the equipment, including

    essential technical & performance characteristics, drawings, literature establishing their conformity to the bid document, date of manufacture & make of the equipment etc.

    4.6 Bidders are requested to provide lists of equipment, instruments and vehicles they would use

    for undertaking the Work (as per scope of work). Also to provide the date of mobilisation and date on which they will be available, ready for use at project site.

    4.7 Documentary proof of collaboration with a foreign Company (in case of joint venture), in the form of a letter from the foreign collaborator, or agreement valid during the Contract duration with requisite Government of India / Reserve Bank of India approvals and stating the responsibility jointly and severally.

    4.8 Confirmation accepting liability for all taxes and duties.

    5 BIDDING PROCESS AND FILING REQUIREMENTS

    5.1 Bidders must seek clarifications, if any, on the tender document, on or before of the date of Pre-Bid

    conference. SOGL shall provide additional information at its discretion.

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    5.2 Tender papers must be complete in all respects and shall be submitted together with requisite

    information and appendices. Tenders should be complete and free from any ambiguity, change or interlineations.

    5.3 The bidders bid and any annotation or accompanying documentation shall be in the English language.

    However, any printed literature may be written in another language provided it is accompanied by an English translation of its pertinent passages, in which case the English translation shall govern.

    5.4 The power of attorney or authorization or any other document constituting adequate proof of the

    powers of the signatory to bind the bidder, shall be annexed to the bid. SOGL may reject any bid not supported by adequate proof of the signatorys authority.

    5.5 In case the bid is submitted by a consortium they shall nominate a Principal Bidder who shall assume

    responsibility for the performance of the contract. 5.6 A copy of the agreement between the Principal Bidder and the other bidder(s) binding each of them in

    relation to SOGL, for performance of the contract shall be enclosed. This agreement shall also specify the responsibilities being assumed by the member(s) of the consortium for efficient discharge of obligations under the contract. This agreement shall also specify that the Principal bidder can incur liabilities / undertakings / obligations on behalf of the consortium and these shall be binding on each of them jointly and severally. It shall also be specified in the agreement that if a bid is successful then each and every member of the consortium shall be jointly and severally liable to SOGL for efficient and proper discharge of its liabilities and obligations emanating from the contract.

    5.7 The Performance Guarantee in such case shall be furnished by the Principal bidder on behalf of the

    consortium. 5.8 The bidder shall sign the proposal, stating the name of the entity to whom the contract is to be

    awarded. Each page of the bid shall be duly signed and sealed by an authorized officer from the Bidders organization.

    5.9 Bidders shall indicate their full postal address and telephone, Mobile / telex / fax/ email address in the

    bid document. 5.10 Bidder will submit the Bid package in its entirety and no alterations will be allowed for submission

    related to the documents or the wording therein. Bid document issued to the bidder is non-transferable. 5.11 Bidders are allowed to quote for meterage rate basis or on day rate basis or both. However,

    preference shall be given to the bidders with meterage rate offer provided all other terms and condition are met.

    5.12 Bid bond must accompany with the technical bid.

    6 METHOD OF SUBMITTING BIDS UNDER TWO BID SYSTEM 6.1 Bid should be submitted under Two Bid System as detailed below:

    6.1.1 Bid should be submitted in triplicate i.e. three priced and three un-priced as given below:

    6.1.1.1 Technical bids may be submitted through e-mail (mail id-

    [email protected]) in the PDF format and editable MS word format as well along with scanned copies of support documents.

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    6.1.1.2 Priced bids will not be accepted through e-mail; it may be submitted

    in person or through courier at the following address. In case, the bids are being sent through Registered post and/or through couriers, SOGL will assume no responsibility for misplacement or premature opening of the bid etc.

    Sintex Oil and Gas Ltd

    7 Garnala Road, Kalol 382721, District Gandhinagar, Gujarat, India Tel. No.: +91-2764-253000

    Fax No.: +91-2764-253101

    E-mail: [email protected] / [email protected]

    If the envelopes are not sealed and marked as required above, SOGL will assume no responsibility for misplacement or premature opening of the bid etc.

    6.2 Bids shall be submitted in the office of SOGL, at the above address on or before 2nd April. 2015 by 15:00 Hrs. IST.

    6.3 Bids will be evaluated by SOGL based on the information asked for in this tender as well as that submitted by the bidder. SOGL may, at its discretion, ask the bidder for clarifications for evaluation and comparison of bids. The request for clarification and response shall be in writing and no change in the price or substance of the bid shall be permitted unless asked for by SOGL. However, no such clarification by SOGL shall be construed by the bidder as an acceptance of their bid.

    6.4 Telegraphic / Telex / Tele-fax offers, whether received directly by SOGL or submitted by the

    local agents shall not be considered. 6.5 Bids made by agents / consultants / representatives / associates will not be considered. 6.6 The bid must be kept valid for 240 days from the last date of bid submission. In exceptional

    circumstances SOGL may solicit the bidders consent to an extension of the period of validity. The request and the responses thereto shall be made in writing by cable / fax / telex. The validity of Bid bond shall also be suitably extended.

    6.7 SOGL reserves itself the right to extend the bid submission deadline.

    7.0 BID BOND

    7.1 BID BOND/EARNEST MONEY DEPOSIT

    Bidder shall be required to furnish with their technical bid an EMD/ a Bid Bond in the prescribed proforma as at Annexure I of this Bid document for Rs. 10 Lacs valid for a period of 180 days from the date of bid submission. The successful bidder may be requested to extend the validity of the Bid Bond for a further period until a formal contract is executed by the two parties and/or performance bond by the bidder to SOGL. On demand, it shall be mandatory for the successful bidder to extend the bid bond and bid validity for the asked for extended period without conditions. The original Bid Bond shall

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    be submitted with the un-priced Technical bid itself. Bid not accompanied by a Bid Bond as above shall be rejected. The Bid Bond should be given on non judicial stamp paper of requisite value from nationalised/scheduled commercial banks.

    8.0 OFFER WITH FAX /E-Mail BID BOND

    8.1 Normally offers received along with Fax / E-mail Bid Bond shall not be considered.

    However, SOGL reserves the right to consider the offer provided it is followed by confirmatory original Bid Bond executed in prescribed proforma and legally operative on or before the date fixed for closing of bids.

    8.2 If bidder fails to submit original bid bond with the same content as in Fax / E-mail Bid Bond and in accordance with tender document, irrespective of their status/ranking in this tender, the bid will be rejected and SOGL may consider to debar the bidder from participating against its future tenders.

    9.0 PERFORMANCE BOND

    9.1 The successful bidder shall furnish to The Company at the time of signing of Contract, a

    Performance Bond in the form of Bank Guarantee from an Indian Nationalised Bank/Scheduled Bank or any other private Bank as approved by The Company for a sum equivalent to 7.5% of contract value as per the Performa enclosed in Annexure II. This Bank Guarantee/Performance Bond shall be drawn in favour of SINTEX OIL AND GAS LTD enforceable at AHMEDABAD and shall be valid upto a date 180 days beyond the last date of initial period of this contract or any extension thereof and successful completion of contract. Split performance bond will not be accepted.

    9.2 The performance bond should be given on non-judicial stamp paper of requisite value from nationalised/scheduled commercial banks or any other private bank approved by The Company.

    9.3 In case the bidder fails to submit the performance bond at the time of signing of the contract, The Company may cancel the acceptance of the bid and the bid bond shall stand forfeited.

    10.0 PRICE

    10.1 Bidders shall give unconditional validity of the bid for 240 days from the due date of

    submission of bids.

    10.2 The bidders shall quote firm price in Indian Rupees or in USD as per the price format. Indian bidders are to quote in INR only.

    10.3 CONVERSION TO SINGLE CURRENCY: To facilitate evaluation and comparison, the

    SOGL will convert all bid prices into INR, considering the average conversion rate prevailing in the previous week from the last date of submission of the bid.

    11.0 PRICE EVALUATION

    11.1 Bidders while submitting their offers should quote taking into account all benefits and

    concessions available to them for supplies to SOGL as announced by the Government of

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    India till the date of tender closing. Conditional offers tied to the availability or otherwise of these concessions will be rejected. SOGL will not own any responsibility/liability at any stage if such concessions are not available to the bidder and SOGL will not also compensate the bidder in any manner on this account.

    11.2 Bidder should not indicate any separate discount. Discount if any, should be merged in the rates

    against the quoted items. Discount of any type indicated separately will not be taken into account for evaluation purpose. However, SOGL shall avail of all such discounts if the Bid happens to be the lowest even after not considering the discount for evaluation purpose.

    11.3 (a) CONCESSIONAL RATE OF CUSTOMS /EXCISE DUTY/SALES TAX

    As the drilling is in PEL block, deemed Export/Import benefits may be available to the bidder

    i) In terms of notification No. 21 dated 1.3.2002, goods specified in list 12 imported in

    connection with Petroleum operations will attract zero Custom Duty. SOGL is in possession of valid PEL,EC and NOC for the areas in which the work is to be executed. Hence, SOGL will issue recommendatory letter as per Government guidelines for issuance of Essentiality Certificate from Director General of Hydrocarbon (DGH), Ministry of P&NG so as to enable the contractor to import goods against zero Custom Duty provided these are specified in the list 12 of said Customs notification.

    All imports and import clearance under the contract shall be done by the bidder and SOGL will not provide any assistance in this regard. Notwithstanding what is stated above, the bidders should also consider the position in regard to import of goods as specified in list No. 12 of above notification against zero Customs Duty. SOGL is not liable in whatsoever manner, for the rejection of their claims for zero Customs Duty by any of the authorities including the DGH.

    Note: The recommendatory letter will be given only for those items which are either consumed during the execution of work or for those equipment/tools which are undertaken to be re-exported by the bidder. The recommendatory letter will not be issued when the bidder imports the equipment/tools on acquisition basis and does not undertake to re-export the same after the completion of the contract.

    ii) Re-export of equipment, un-utilized spares etc:

    The equipment, unutilized spares, accessories etc. imported to India for providing service needs to be re-exported by the bidder upon the completion of the terms of contract or any extended period thereof at their own expense. Bidder must furnish an undertaking that the equipment imported and also spares & accessories which remained unutilized after expiry of the contract would be re-export ed at his own cost after completion of contractual obligation after observing all the formalities/rules as per Customs Act or any other relevant Act of Govt. of India applicable on the subject. Immediately after re-export, bidder would furnish to SOGL, details and other relevant documents as a proof of re-export. In case of non-observance of formalities of any provisions of the Customs Act or any other act of Government of India, the contractor shall be held solely responsible for all the liabilities including the payment of Customs Duty and penalties to the Govt. on each issue. Non compliance of these provisions will be treated as breach of contract and their performance bond will be forfeited.

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    12.0 EVALUATION AND COMPARISON OF BIDS

    12.1 TECHNICAL

    The technical bid will be evaluated as per the specifications given in the tender and the BEC vide Part III of the tender document. To assist in the technical evaluation of bids, SOGL may, at its discretion, ask a bidder for clarification(s). As the time is short, any bid, which does not meet the technical requirements set forth in the tender document, shall be rejected. Similarly, the bid without Bid Bond shall be rejected and not evaluated despite any deviation taken by the bidder. Bidders not interested to submit the bid bond may not bid.

    12.2 COMMERCIAL

    a) Price bids of only technically acceptable offers shall be opened. b) To facilitate evaluation and comparison of the bids, bidders are requested to state

    their bid price strictly in accordance with the terms and conditions of the tender document. SOGL may reject any bid where the pattern of prices indicated varies from the format.

    12.3 Bid document issued to the bidder is non-transferable.

    13.0 EMPLOYMENT OF OFFICIAL OF SOGL

    Firms/Companies who have or had business relations with SOGL are advised not to employ serving employees without its prior permission.

    14.0 SIGNING OF CONTRACT

    For signing of the contract the bidder shall depute its authorised representative along with the power of Attorney in favour of the signatory. The draft contract agreement shall be sent along with LOI. On acceptance given by the successful bidder, LOA shall be issued and the contract agreement has to be signed within 7 days from the date of issue of LOA. The performance guarantee has to be submitted on the day of signing of contract agreement. The Contract against this tender will be governed in accordance with the instructions to bidders. Strict adherence is required to this clause. Bid bond shall stand forfeited in case of non-compliance of this clause.

    15.0 PAYMENT

    15.1 The Contractor shall raise the invoice at the end of each month for the services rendered in accordance with the provisions under this Contract, detailing out the services performed, rates payable and the total amount claimed. This invoice will first be submitted to The Company representative who will certify within 15 days from the date of receipt of invoice.

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    15.2 The invoice certified by The Companys representative shall then be forwarded so as to be

    received by concerned department at SOGL. 15.3 Concerned department at SOGL of The Company shall scrutinize and approve the said

    Invoice for payment after making such deductions or amendments as may be considered necessary. The invoice so approved shall be processed for making the payment of the undisputed amount of Invoice within 30 days from the date of Invoice submission by the contractor.

    15.4 The disputed amount shall be paid to the Contractor within 30 days from the date of the

    resolution of the dispute to the satisfaction of the Company without interest. A fresh invoice shall be raised by the contractor after the resolution of the dispute.

    a) No payments shall be due from The Company to the Contractor for either the days or for the Work or part thereof, which is suspended by Company in accordance with provisions.

    b) For Work or part of Work suspended by the Company for reasons other than Contractors negligence etc, Company shall pay Contractor standby charges in accordance with the Schedule of Prices and Rates of the Contract, if 7 days notice is not given.

    c) SBLC shall be opened by SOGL for the value equivalent to two months Invoice. In case

    of non payment of any certified undisputed Invoice in 30 days, the contractor shall issue 7 days notice and if SOGL fails to pay still, the contractor shall be free to encash the Invoice from the bank based on the companys site representative certified IADC reports or mobilization completion certificate from SOGL office. SBLC will be replenishing for further two months Invoice immediately in case of encashment.

    No payment shall be due to the contractor from the company or the bank unless contractor mobilizes the entire rig package, commissions the rig and obtains SOGL clearance (based on inspection report) for successful commissioning fully ready to start drilling operation at the designated drill site.

    16.0 OTHER INSTRUCTIONS AND TENDER CONDITIONS

    16.1 Letter of Award (LOA) by SOGL will be communicated by fax / e-mail only after acceptance of the

    LOI and the draft agreement by the contractor. In case where acceptance is communicated by fax / e-mail, pending signing of formal contract, the instructions contained in the fax / letter should be acted upon immediately. With the issue of LOA, the Contract shall be deemed to have been entered into. Contract shall mean and include all the contents of this tender document. Non-acceptance of LOA or non signing of the agreement after issue of LOA may result in cancelling the award as well as forfeiture of the Bid bond.

    16.2 If SOGL finds that the work done by the Contractor is not of the desired quality, or according to specifications, or otherwise not satisfactory owing to any reason, then in this regard the opinion shall be communicated by giving a notice to the Contractor for taking the remedial measures immediately. If the Contractor does not complete the remedial action within 7 (seven) days from the date of notice, SOGL will be entitled to reject the work executed, cancel the Contract and procure the services from the market at the risk and cost of the Contractor, reserving always to itself the right to invoke the Performance Guarantee / Security Deposit furnished by the Contractor. The decision of SOGL in this regard shall be final and binding on the Contractor.

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    16.3 Any bid received with less than the prescribed validity period is liable to be rejected. 16.4 Payment of taxes such as income tax corporate tax, service tax as well as personnel taxes, and any

    other taxes by whatever name called, payable to Government or other bodies is the responsibility of the Contractor. However, SOGL shall comply with all statutory requirements (e.g. service tax and TDS) in this regard whilst making payments to the Contractor.

    16.5 SOGL may inspect the offered machinery, vehicles, equipment, instruments with accessories as a part of the Bid - Evaluation Procedure. This is only a discretionary option.

    16.6 Offers providing for escalation of price shall be rejected. However, the successful bidder may be

    allowed the price variation of Diesel in their invoice. 17.0 PRE-BID CONFERENCE

    All queries received from the bidders on the tender document, will be deliberated in the pre-bid conference to be held on 27th March 11:00 am at the office of Sintex Oil and Gas Ltd., Kalol 382721, District Gandhinagar, Gujarat.

    18.0 ERRORS AND OMISSIONS Care has been taken in drafting and finalising this tender document and all the documents,

    information and data attached hereto, but errors and omissions are to be exempted given the size and nature of document.

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    PART - II

    GENERAL TERMS AND CONDITIONS

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    GENERAL TERMS AND CONDITIONS 1.0 DEFINITIONS

    In this Tender unless the context otherwise requires, the following words when used in the Contract document shall have the meaning as prescribed hereunder. 1.1 COMPANY

    The Company Means Sintex Oil and Gas Ltd (SOGL)

    1.2 CONTRACT DOCUMENT

    Means agreement entered into between The Company and Contractor, including this tender document and all attachments and annexure thereto and all other documents incorporated by reference therein.

    1.3 COMMENCEMENT DATE

    As set out in Clause 2.3, the point of time when drilling unit is fully rigged up along with all the ancillary equipment at the first designated location along with availability of Contractors personnel and sufficient spares at the site and the Drilling unit in its entirety is ready for drilling first designated well with the object of continuous drilling operations thereafter.

    1.4 OPERATING AREA

    SOGL exploratory blocks in Ahmedabad, Mehsana and Gandhinagar Districts in the state of Gujarat.

    1.5 DRILLING UNIT

    Means Drilling Rig package complete with all associated drilling equipment, personnel and necessary spares as detailed in Annexure V (Technical Specification) along with consumables, spares and tools for operation and maintenance fit for drilling operation of wells & associated jobs.

    1.6 DRILLING OPERATIONS

    Means all operations as per scope of work and are generally understood for drilling and completion of oil/gas wells more particularly all the operations required to be carried out in pursuance of this Contract including but not limited to the following:

    i) Drilling of the well vertical / directional ii) Coring iii) Casing/Liner/Tubing iv) Cementing v) Facilitating Wireline logging vi) Blow out Control vii) Hermetical Testing & Perforation

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    viii) Fishing ix) Well completion x) Activation, Stimulation & Production Testing etc.

    1.7 ABNORMAL DOWN HOLE CONDITIONS

    Means encountering formation pressures more than those specified and/or mud loss with suggested mud weight in drilling and completion programme or Geo Technical Order (GTO) of the well as well as any amendments thereof issued by the Company from time to time.

    1.8 CONTRACTORS PERSONNEL

    Mean the personnel to be provided by the Contractor from time to time to conduct drilling and auxiliary operations and to provide services as per the Contract scope of work.

    1.9 SOGL PERSONNEL / COMPANY PERSONNEL

    Means The Company authorised representatives of SOGL, the personnel to be deputed or provided by SOGL or SOGLs associates (other than the Contractor executing this Contract). And also means the personnel to be provided by the Company for the purpose of supervision or inspecting the work performed by Contractor and other service providers.

    1.10 DAILY DRILLING REPORT

    Means a report to be submitted by the Contractor daily in the Standard International Association of Drilling Contractors (IADC) proforma covering all operations carried out and events at the well during the preceding 24 (twenty four) hours along with details of daily consumables duly countersigned by SOGL company man.

    1.11 PLANNED DEPTH

    Means the depth as defined in GTO / Well program.

    1.12 MOBILISATION

    Means all activities required to be carried out by Contractor in order that the well can be spudded on the Commencement Date as detailed above, including the transportation of the equipment spares and personnel to the site and following the statutory guidelines.

    1.13 DEMOBILISATION

    Means all activities required to be carried out by Contractor in order that the equipment and personnel for the work and/or services is removed from the drilling site at the end of the Contract as set out under Clause -5.3 and /or as per notice in writing by SOGL subject

  • - 19 -

    to the conditions as specified in Clause16.2 of Part-I. GPCB guidelines shall be mandatory.

    1.14 METERAGE RATES

    Means the rate as defined in Clause 5.4

    1.15 OPERATING RATE R 1

    Means the rate as defined in Annexure - IVA and Annexure - IVB 1.16 STANDBY RATE R2

    Means the rate as defined in Annexure - IVA and Annexure - IVB

    1.17 INTER LOCATION MOVE CHARGES

    Means the amount payable as defined in Clause - 5.6

    1.18 HEADINGS

    The paragraph headings have been provided for reference only. 1.19 FURTHER ASSURANCE

    Each party shall perform such acts and execute and deliver such documents and give such assurances necessary to give effect to the provisions of this Contract.

    1.20 COMPLIANCE OF LAW

    Neither of the parties shall do, commit, adopt nor participate in any Act prohibited under the laws of India in the performance of this Contract.

    1.21 OBLIGATIONS

    The Materials, supplies, equipment, services and personnel to be provided by the Contractor and the Company are as per Clause - 5.0 and Clause - 6.0, respectively, and also listed at Annexure III.

    1.22 ZERO RATE

    Means the rate as defined in Annexure - IVA and Annexure IVB

    1.23 CONTRACTOR Means the individual or firm or body corporate as successful bidder and performing the work under this Contract

  • - 20 -

    2.0 TERMS OF THE CONTRACT

    2.1 EFFECTIVE DATE

    This Contract shall be deemed to have come into force from the date of issue of LOA. However, the same has to be got regularised through a contract agreement within 7 days.

    2.2 DURATION OF OPERATIONS

    The Contract period shall be for drilling up to 15 (fifteen) wells. Initially the contract will be for 04 wells ; however number of well may be decreased or increased depending on the status of the drilled wells at the same rate , Terms & conditions. at State(India) in SOGLs exploratory blocks in Ahmedabad, Mehsana and Gandhinagar district. The Operating period shall be effective from the date of commencement of drilling operations at the first location through a notice from SOGL. The Company at its option may reduce or extend the period of operation at the same terms and conditions which shall be binding on the contractor.

    2.3 COMMENCEMENT DATE

    Commencement Date for the purpose of this Contract shall be the date when:

    a) The drilling unit is fully rigged up along with all the ancillary equipment at the first

    designated location along with the Contractors experienced and trained personnel with valid IADC / IWCF certificates and sufficient spares at the site and the Drilling unit in its entirety is ready for drilling a well with the object of continuous regular drilling operations thereafter.

    b) The pre-condition for commencement of actual drilling work by the Contractor shall

    be the compliance by the Contractor of the conditions laid down under Clauses 2.5.1 to 2.5.4 and also a written declaration signed at the drilling location by the Representatives of both the Company and the Contractor to the effect that the equipments, material and other allied items, spares and personnel required to be provided by the Contractor in terms of provisions in the Contract are available at the site and all the statutory conditions required to be fulfilled by the Contractor while spudding the well are fulfilled. The time and date of spudding the first well, based on the permission from SOGL, shall be the commencement date of operation of the Rig. This date shall also be the date from which the Companys payment obligation shall accrue.

    2.4 TERMINATION

    2.4.1 This contract shall terminate:

    (a) Upon expiry of the initial Contract obligations.

    or (b) Upon expiry of the extended period of the contract.

    or

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    (c) Under the circumstances referred to under Clause 22.0 (upto 22.10) of the Contract.

    2.4.2 If the Company finds that the Drilling Rig has not been timely mobilized by the Contractor as committed and that the Contractor has defaulted in timely mobilization of drilling rig or if the Company finds that the drilling rig services being rendered by the Contractor do not meet the quality / operating guidelines / specifications of International Drilling Services Industry or if the Company, after the Commencement Date finds that the Contractor has short deployed the drilling rig equipments, accessories, tools and consumables as per the agreed drilling rig specifications or if the Contractor has short deployed the technically competent and experienced drilling personnel which may adversely affect the Companys drilling operations and / or for any other reason which in the opinion of the Company amounts to unsatisfactory performance and default by the Contractor, then in such an event, the Company may issue a termination notice in writing to the Contractor. The Contract shall then stand terminated with immediate effect, i.e. from the date of termination notice and the Contractor shall demobilize its drilling rig, equipment, tools, accessories and personnel accordingly. Contractor shall not be entitled to claim and no payment shall either accrue or be payable to the Contractor after the demobilisation of the rig. Company shall only pay for the work done.

    2.4.3 The decision of the Company shall be final and binding on the Contractor with respect to the termination of the Contract due to the aforesaid reasons. The Company shall, at its discretion may award the drilling rig contract to any other drilling rig services company which in the Companys discretion meet its drilling requirements in the event of failure on part of the Contractor leading to termination of the Contract.

    2.5 PRE REQUISITES FOR MOBILISATION

    2.5.1 The Contractor shall furnish to the Company all evidence pertaining to technical, quality and certification details for drilling rig that it intends to deploy at the Companys blocks. The technical specifications of the drilling rig equipment shall be as per the specifications detailed by the Company in this document so as to meet the Companys drilling requirements. The contractor shall have the rig package, equipment, stores and spares, fuel, water arrangements, manpower, all licenses, requisite permission from all state and statutory authorities, transport arrangement and all other requisites as per tender document. Permission to spud the well shall be issued only after SOGL is satisfied with the mobilization of the rig package as stated above. LD clause shall be applicable for any delay in mobilization. In case such details are not provided by the Contractor or if the above conditions are not fulfilled to the satisfaction of SOGL, SOGL reserves the right to cancel the contract and the performance guarantee shall be invoked. In the event if incomplete details are provided to the Company by the Contractor, the Company shall have the right to terminate this Contract with immediate effect

  • - 22 -

    and shall also have the right to terminate the drilling rig services contract. The decision of the Company as regards the details provided by the Contractor shall be binding on the Contractor.

    2.5.2 The drilling operations are planned to commence tentatively by 1st Qtr. of year 2015-16. The Contractor shall deploy the drilling unit on the Companys designated drilling location within 15 days (unless increased by SOGL) from the date of issue of the Companys Mobilization Notice. It shall be the responsibility of the Contractor to procure the rig equipment as per the specified rig specifications as per Contract.

    2.5.3 Upon receiving the information from the Contractor for inspection, the Company shall have the right to inspect and fully satisfy itself to approve the technical specifications of the rig assembled including satisfying itself of the operating capability and all other related aspects pertaining to the rig operations. The decision of the Company as to the approval of the rig specifications shall be final and binding on the Contractor.

    2.5.4 The drilling rig shall be mobilised to the designated drilling location by the

    Contractor only after written confirmation has been issued by the Company to the Contractor to commence the mobilisation of the drilling rig to its first designated drilling location.

    2.5.5 Drilling performance shall be broadly governed by the time norms of different

    operations as indicated in Annexure XII and duly modified GTO (to be issued to successful bidder only)

    2.5.6 NonSubstitution of Rig: The Contractor shall mobilize the designated rig only

    (Name & make of the rig) within the stipulated mobilization period and SOGL. For any change of the equipment or the rig etc. prior permission from SOGL has to be taken.

    2.6 LIQUIDATED DAMAGES

    2.6.1 If Contractor for any reason other than Force Majeure, fails to timely commence

    the drilling operations in accordance with the terms of the LOA / Contract, Contractor shall pay to Company, as ascertained and agreed liquidated damages, and not by way of penalty, zero point five percent (0.5 %) for each week of such late commencement of the work up to a maximum of five percent (5 %) of total Contract Value. The payment of liquidated damages pursuant to this Clause shall not affect the right of the Company to :

    2.6.1.1 Terminate the Contract or a portion or part of the Work thereof in

    accordance with the provisions of the Contract.

    2.6.1.2 Seek specific performance.

    2.6.1.3 Get the Work done by any other Contractor at the risk and cost of the Contractor.

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    2.6.2 The Company may without prejudice to its right to affect recovery by any other

    method, deduct and withhold the amount of liquidated damages from any money belonging to the Contractor in its hands (which includes Companys right to claim such amount against Contractors bank guarantee) or which may become due to the Contractor. Any such recovery or liquidated damages shall not relieve the Contractor from any of its obligations / liabilities under the Contract.

    2.6.3 The Parties agree that the liquidated damages indicated hereinabove are genuine pre-estimate of the loss / damage which Company will suffer on account of delay / breach on the part of the Contractor and the said amount shall be payable without any requirement of proof of the actual loss or damage caused by such delay / breach.

    2.6.4 The Parties agree that all sums payable by way of liquidated damages shall be

    considered a reasonable compensation without reference to the actual loss or damages, which shall have been sustained. In the event of any difference(s) between the Parties, the decision of the Company shall be final and binding.

    2.6.5 Where Company is required to wait for any reason for a Contractor Equipment

    which is not made available on the site as per the schedule or during the operations, Contractor shall be paid zero rate during operation period.

    2.6.6 Maintenance: 24 hours per month on non cumulative basis will be allowed as

    maintenance of Rig equipment is held up, during which stand by rate shall be applicable.

    3.0 DEPTH

    3.1 The Company reserves the right to direct the Contractor at any time to complete/abandon

    the well at a lesser depth or to continue to increased depth depending upon the circumstances.

    3.2 The Company shall specify in its drilling and completion programme the depth of the well to be drilled by the Contractor. The Company shall have the right to amend such drilling depths and completion programme at any time.

    3.3 CONTRACT DEPTH

    Contractor confirms that the Drilling Unit shall be technically & fully capable of drilling up to a depth of 3000 m (1000 HP rig) including that of S profile and 2000 m (750 HP rig) as the case may be. The capacity of the drilling unit will be governed by the hook load capacity of the rig and associated equipment. The Contractor shall drill and complete the well as per the drilling and completion programme given by SOGL. Contract shall be terminated with no liability to SOGL in case the drilling rig unit is found to be not satisfying the contractual requirement on load function, HP of the rig or the capability to drill upto required depth. The contractor has to confirm the requirement as per casing policy and scope of work prior to deployment or offer the services. In case of failure to drill and complete the well upto the required depth with casing, cementation etc.,the rig shall be removed, contract cancelled without any payment obligations and PBG invoked.

  • - 24 -

    4.0 COMPENSATION AND PRICING SCHEDULE 4.1 GENERAL

    4.1.1 In consideration of Contractor's satisfactory performance of the Services and

    fulfilling of all its obligations under and in accordance with the Agreement to the Tender document, Company will pay Contractor the Contract Price detailed herein. The Contract Price shall be in full compensation for all the Services to be performed by Contractor under the Agreement.

    4.1.2 The Contract Price shall comprise of all the sums, rates, prices and reimbursement included in this part as adjusted in accordance with provisions of Terms and Conditions.

    4.1.3 Except as otherwise specifically provided in the Agreement to the Tender

    document, the sums, rates, prices and reimbursements included in the terms and conditions are fully inclusive of all matters, things, risks, costs and expenses required for the proper and satisfactory performance and completion of the Services and the fulfillment of Contractors obligations, liabilities and responsibilities under and in accordance with this Agreement to the Tender document.

    4.1.4 All sums, rates, prices and reimbursements detailed hereinafter shall be

    applicable as specifically provided for and shall remain firm and fixed for the duration of the Agreement.

    4.1.5 The currency for invoicing and payment shall be in Indian Rupees (INR) or in

    United States Dollars (USD) as quoted in the bid. Indian bidders shall be paid in INR only.

    4.2 Pricing Schedule: The descriptions given in the Pricing Schedule as above are intended as

    brief descriptions sufficient for identification and payment purposes only and do not detail every operation involved in carrying out the Services or any part(s) of the Services.

    4.3 Mobilisation of Contractor Supply Items and Contractor's Personnel

    4.3.1 Company shall give 15 days notice for Mobilisation of Contractors Supply Items and Contractor's Personnel detailing the time by which Contractor shall be ready for operations in all respects at the drill site.

    4.3.2 At Company's request and upon receipt of Company's notice, Contractor shall mobilise and deliver all Contractor Supply Items and Personnel required for the performance of the Services at the Drilling Site.

    4.3.3 Prior to mobilisation of the Contractor Supply Items, Contractor shall provide to

    Company list of the Contractor Supply Items to be delivered to the Drilling Site. This shall comply but not limited to the items listed in the tender document as mentioned in Part-III.

  • - 25 -

    4.3.4 Mobilisation shall be complete when contractors equipment and personnel are

    commissioned / deployed and ready to undertake the performance of the service to spud the well as stated in the contract agreement, as per the Companys required mobilisation schedule given in advance to the contractor or actual mobilisation. The Company onsite representative shall certify mobilisation and state in the log sheet and based on that the contractor shall seek SOGL approval. Only after the SOGL acceptance of the completion of mobilization instructions for spudding the well shall be issued. From such time the Operations shall be considered to commence.

    4.3.5 Mobilisation amount (Lumpsum) shall be due to be paid only after the

    mobilisation at designated site is completed and is certified by the company on the basis of inspection at site.

    4.4 Demobilisation of Contractor Supply Items and Contractor Personnel

    4.4.1 At Company's request, Contractor shall demobilise the Contractor Supply Items

    from the Drilling Site including, without limitation decommissioning, dismantling, cleaning up and removal of all pollutants, debris and rubbish, handling, packing, and crafting (as appropriate with respect to GPCB and statutory requirements). For the demobilisation the Company shall be liable to pay only such sums as are stated in the price schedule.

    4.4.2 In the event Contractor wishes to use the Contractors Rig package and services (after Mobilisation Date) for any other client for the days on which the Rig package and services are not required for Companys operations. Contractor shall obtain prior written consent of the Company and Contractors rates for such Rig package and services shall stand correspondingly reduced on a prorata daily basis from the date of such demobilisation upto the date such equipment and services is remobilised without any cost of mobilization / demobilization to the Company. However, the Contractor has to make the Rig package and services available to the Company as per the notice from the Company for resumption of operations.

    5.0 COMPENSATION TO THE CONTRACTOR

    5.1 FIRM PRICE

    The rates payable shall be firm during the entire duration of one year of the contract and any extension upto six months. In case any further extension is asked for beyond the extended period of six months, revised rate on Day rate / Meter rate shall be considered subject to mutual agreement.

    Company agrees to pay Contractor for work performed, services rendered and material/equipment supplied and personnel furnished by Contractor, a sum computed at

  • - 26 -

    the rates specified in Part-IV (price format) shall be computed to the nearest half an hour. The rates for operations to be conducted would be on round-the-clock basis.

    The drilling operations and invoicing shall be on day rate / meter rate basis as applicable. However, the drilling performance will be adhered as per the time norms of the different operations. In case of non performance as adjudged by the Company man at the site based on equipment failure, negligence or any other reasonable cause, the payment shall be made on pro-rata basis keeping in view the operation norms.

    5.2 MOBILISATION

    Mobilisation shall be treated as completed when the conditions as laid down in Clause 2.5.1 to 2.5.4 are complied with by the Contractor to the satisfaction of the Company and the Contractors drilling rig with all equipment, necessary spares and personnel reaches at the first designated site of the Company and is ready to spud the well. Lump sum amount shall be payable after completion of mobilisation.

    Inter Location Movement (ILM) of the Contractors drilling rig with all equipment, necessary spares and personnel from one location to the other location designated by the Company anywhere in the operating area. ILM charge shall be payable in lumpsum as per price format and shall be governed by clause 5.6. of the tender.

    a) A joint survey report of the designated location for rig deployment carried out by SOGL representative and the Contractor (Layout diagram with dimensions of the proposed rig & rig package has to be made available on receipt of LOA for getting the site prepared accordingly. Detail load bearing diagram of the rig required for construction of rig foundation and drill site)

    b) Schedule of activities for completing the mobilization and third party inspection within the mobilization period.

    c) A kick-off meeting will be held at SOGL before completion of mobilisation. At the kick-off meeting, the Contractor shall submit Bar Chart of the detail drilling programme activity or schedule of the project.

    After the kick off meeting, Contractor shall submit periodical report or any other report as desired by SOGL, showing progress of activities vis--vis the schedule.

    5.3 DEMOBILISATION 5.3.1 SOGL shall pay to the Contractor, Demobilisation charges as per agreed price

    quote on submission of invoice by the Contractor subject to the conditions laid down under Clause 5.3.2 hereunder for the Demobilisation of the drilling unit as defined under Clause 1.12.

    5.3.2 Notwithstanding the provisions under Clause 5.3.1, No Demobilisation charge shall be payable if the drilling unit along with all its accessories and equipment is moved to another drilling location in the Operating Area (considered as ILM) or under termination due to Contractors fault.

  • - 27 -

    5.3.3 Contractor shall demobilize immediately its drilling rig alongwith accessories, consumables and personnel on receipt of a written notice of demobilization from the Company, subject to the conditions laid out in Clause 2.4.2 and / or any other reason which may result in the Company issuing the demobilization notice. The decision of the Company shall be final and binding on the Contractor for demobilising its drilling rig immediately on receipt of notice, in writing, from the Company.

    5.4 METERAGE RATE

    5.4.1 SOGL shall pay to the Contractor a meterage rate payable per meter drilled from

    the moment the rig spuds the well till the drilling and completion upto the target depth except for non-drilling-operation which shall include the following operations. These rates are also described in rate applicability chart at PART IV.

    5.4.2 Meterage would be counted from the bottom of the cellar pit.

    5.5 In place of meter rate day rate shall be applicable when no drilling operation is involved.

    5.6 INTER-LOCATION MOVEMENT CHARGES

    5.6.1 The Company shall pay to the Contractor for the inter location movement of the drilling unit from one location to another as a lump sum amount (refer Part - IV). Such charges shall be payable for each Rig move between two locations from the time the Drilling Unit is released by the Company from one location to the time it is ready to spud at the next location. No standby charges shall be payable during this period. It is understood that inter location movement charges shall be payable only when the total drilling unit is moved and not a part of it. In case the movement is made in parts when the production testing is on, then no day rate shall be payable if the equipment or part thereof has started moving.

    5.6.2 The Contractor shall be responsible for the up-keep and safe custody of the Companys material and equipments lying at the drill site/camp upto the time after the last consignment of the Contractors equipments has been transported.

    5.6.3 The Company may ask, at its option, the Contractor to transport the Companys

    stores/equipments to the next site along with its equipment. It would be the Contractors responsibility to return the unconsumed materials of the Company to Companys storage site. No additional / extra charges shall be paid by the Company for such services rendered by the contractor. However, contractor shall transport up to maximum 8 Trailor loads free of charge beyond which Transportation shall be provided on chargeable basis. Contractor shall provide loading and unloading of Companys and Companys Sub Contractors materials on Drill site free of charge.

    5.6.4 Inter location movement charges are inclusive for drilling unit as well as camp

    movement and shall be paid when drilling unit moves from one location to another.

    5.7 DEFICIENCIES

  • - 28 -

    5.7.1 Contractors equipment shall be maintained by the Contractor at its own cost in

    sound and efficient manner at all times to ensure that entire rig equipments are in perfect working conditions at all times and that drilling operations are carried out without any interruptions due to unwarranted breakdown of drilling rig equipments. It is the responsibility of the Contractor to ensure that periodic maintenance of its rig equipments, accessories etc. are carried out by the Contractor at its own cost so that the equipments are fit for drilling operations at all times during the currency of the drilling operations under this Contract or any extension thereof. Should the performance of Contractors drilling equipment become unsatisfactory or the general standard of performance of the work hereunder be materially reduced because of defective drill pipe, drill collars, mud pumps or other Contractors furnished equipment or by reason of Contractors incompetence or negligence, the Company shall give to the Contractor written notice specifying the causes of its dissatisfaction to correct the specified deficiency within 7 days failing which the Company shall have the right to terminate this Contract by giving written notice to the Contractor. In this event, no demobilisation fees will be payable by the Company. Notwithstanding any other provision contained in this Contract, the Company shall also recover the Mobilisation charges, if any, paid in terms of Clause 5.2 in case the deficiency occurs during the period of Contract, on pro-rata basis for the period of performance. In addition to invoking of Performance Bond due to failure of the Contractor in not executing the Contract faithfully, it is understood that if the Contractors equipment do not perform satisfactorily as described above, no payment shall be due to the Contractor.

    5.7.2 In case the Contractor is denied access to the location of drilling operations due to non availability of any permit to be arranged by the Company in pursuant to Clause 15.1 thereof, then the Contractor shall not be penalised.

    5.7.3 In the event of any equipment as per Annexure V, not brought or not in good

    working condition, the rig shall be considered as non-commissioned and Zero rate shall be applicable. Further, in case, non-availability of any such equipment in good working condition, which adversely affects the progress of or delays any operation during the Contract period when any of the day rates is admissible to the Contractor for the period which is applicable, no payment shall be made to the Contractor. Over and above the normal period determined for completion of such operation. However, the Company shall have the absolute right to recover any losses which it deems fit to recover out of the Contractors invoices in the event the Company suffers losses due to unwarranted delays caused by the faulty rig equipments or due to negligence of the Contractors personnel during drilling operations. In this connection, the decision of the Company taken after discussions with the authorized representatives of the Contractor would be final and binding on the Contractor.

    5.7.4 OTHER SERVICES BREAK-DOWN: If any of the services covered under the

    scope of this Agreement is/are not operating as per its intended operations due to which the Drilling Unit cannot perform its intended operations, then the Day Rate shall not be paid for such period.

    5.8 PERFORMANCE

  • - 29 -

    The Contractor undertakes to perform all services under this Contract with all reasonable skill, diligence and care in accordance with sound industry practice to the satisfaction of the Company and accepts full responsibility for the satisfactory quality of such services.

    The Company shall give the Contractor a written notice immediately specifying the causes of its dissatisfaction to correct the specified deficiency, failing which the Company shall have the right to recover the damages in the manner as specified in Clause 2.5 or to terminate this contract by giving 07(Seven) days advance written notice to the Contractor, unless the specified deficiency is corrected. In this event, no Demobilisation fees will be payable by the Company and notwithstanding any other provisions contained in the Contract. SOGL shall recover the Mobilisation charges, if paid in terms of Clause 5.2 on pro rata basis for the period of performance, in addition to invoking of performance bond due to failure of the Contractor in not executing the contract faithfully, if at any time during the term of this contract breakdown of Contractors equipment results in Contractor being unable to perform its obligations hereunder for a period of 7 (Seven) consecutive days (not including Force Majeure delay or break down of Contractors equipment caused by a well blow-out or all the consequences thereof), the Company at its option, may terminate this contract, in its entirety without any further right or obligation on the part of the Company except for the payment for the work done

    5.9 PERFORMANCE BOND

    The Contractor shall furnish to SOGL on the date of signing of the Contract an irrevocable and unconditional letter of guarantee from a Bank acceptable to the Company for a sum equivalent to 7.5% of Contract Value (in the proforma as per Annexure II). The irrevocable letter of guarantee shall be drawn in favour of Sintex Oil and Gas Ltd and shall be valid up to a date 180 days beyond the last date of initial period of this Contract or any extension thereof. In the event of the Contractor failing to honour any of the commitments entered into under this contract and/or in respect of any amount due from Contractor to the Company, the Company shall have the unconditional option under the guarantee to invoke the said guarantee with the Bank and claim the amount from the Bank. The Bank shall be obliged to make the payment directly to the Company upon demand without the Bank having to take any permission from the contractor in this regard. The Contractor further agrees to extend the period of this guarantee or to furnish a fresh guarantee if the Company decides to extend the period of this Contract as stated in the clause 2.2 on same terms and conditions of the agreement.

    6.0 MATERIALS, SUPPLIES, EQUIPMENT, SERVICES & PERSONNEL TO BE

    PROVIDED BY THE CONTRACTOR 6.1 Materials, Supplies, Equipment and Services

    6.1.1

    i) Contractor shall provide and maintain at its cost all items specified in Annexure III.

    ii) Contractor shall have the drill string and other equipment NDT (Non- Destructive Testing) inspected by Vetco Tuboscope or any other reputed

  • - 30 -

    recognised inspection agency mutually acceptable to the parties, prior to the spudding of the well at Contractors cost. Records of such inspection will be made available by Contractor to the Company. The Company shall at any point of time, have the right to request the Contractor to have the drill string inspected by a recognised inspection agency (as mentioned above) at Contractors cost.

    iii) Contractor shall provide suitable arrangement for boarding and lodging

    of Contractors personnel. Contractor shall provide boarding & lodging for up to 08 (eight) Company personnel including 3rd party operations free of charge at drill site in the bunk house for continuous duty.

    6.1.2 Contractor shall provide complete mobile Drilling Rig with trucking equipment conforming to the standards mentioned in the technical specification, Annexure V and road worthy as per RTO rules.

    6.1.3 Contractor shall make all necessary arrangements for carrying out all operations with diligence in a safe workman like manner, in compliance with all instructions and policies of the Company consistent with the provisions of the Contract including drilling, well control, Safety instructions etc. and that wrt DGMS, OISD and GSPC.

    6.1.4 It shall be the responsibility of the Contractor for the operation of the drilling

    rigs, including but without limitations, drilling, Supervising, moving between well locations in the Company Oil fields and positioning the Drilling Rig and camp at locations as required as well as such operations at the drill site as may be necessary or desirable for the safety of the Drilling Rig Operations under this Contract in line with standard international Oil Field practices.

    6.1.5 It shall be the responsibility of the Contractor for taking all reasonable care for

    the entire rig package and successful operations as per standard International drilling industry practices.

    6.1.6 It shall be the responsibility of the Contractor for maintaining accurate records

    and submitting to the Company Daily Drilling Report (DDR) in IADC proforma duly countersigned by company man. The Contractor shall also submit the Well Completion Report at the end of the operations at the designated well.

    6.1.7 Safety

    a) It shall be the responsibility of the Contractor for maintaining all drilling and

    safety equipment in good condition at all times using all reasonable means to control and prevent fires and blow-out and to protect the hole.

    b) It shall be the responsibility of the Contractor for testing the blow-out prevention devices by making a pressure test at the time of every nippling up as per API-RP 53 or at other times as instructed by SOGLs authorised representative and recording the results of all such tests in the Daily Drilling Report.

  • - 31 -

    c) It shall be the responsibility of the Contractor for keeping the hole and all string of casing filled with drilling mud at all times.

    d) It shall be the responsibility of the Contractor for using Kelly Saver sub with

    protector.

    e) The Contractor shall provide all the safety kits & liveries and PPE to the workers at the site as per oil industry practices. All statutory obligations under Labour laws and explosive licenses are the responsibility of the contractor.

    f) The successful bidder has to submit its HSE policy to SOGL before signing

    the contract agreement.

    g) Over pressure protection devices shall be fitted to any pressure containing equipment that may be subject to pressures exceeding their maximum allowable design pressure. All protective devices shall carry valid and current certification.

    h) The Contractors work cabins shall have adequate hand held extinguishers

    suitable for dealing with minor fires.

    i) The contractor shall submit the Emergency Response Plan along with details of emergency drills (types of drills and frequency).

    6.1.8 It shall be the responsibility of the Contractor for maintaining at its cost adequate

    stock level of Contractors items equipment and spares and replenishing as necessary. Repairing all Contractors items and providing adequate spare parts and materials required thereof.

    6.1.9 It shall be the responsibility of the Contractor for providing competent and efficient personnel acceptable to the Company.

    6.1.10 It shall be the responsibility of the Contractor for transportation of Contractors

    and the Company equipment and personnel.

    6.1.11 It shall be the responsibility of the Contractor for providing first aid medical attention for Contractors and the Companys personnel at the rig site and medical services for Contractors personnel. Contractor shall keep Ambulance with complete life saving equipments and medicines with paramedical staff at drill site round-the-clock.

    6.1.12 It shall be the responsibility of the Contractor for providing assistance in all

    services performed by service companies used in the operations in so far as can be done with Contractors personnel.

    6.1.13 It shall be the responsibility of the Contractor for furnishing all fuel (HSD, POL

    etc.) used on the drilling rig, Contractors camp and vehicles. Any license to be taken in this regard shall be the responsibility of the contractor.

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    6.1.14 It shall be the responsibility of the Contractor for Loading and unloading and storage at drill site of all Contractors and the Company equipment and other service providers material etc. required for drilling of the wells under the Contract.

    6.1.15 It shall be the responsibility of the Contractor for providing hygienic drinking

    water at site and camp.

    6.1.16 It shall be the responsibility of the Contractor for supplying any equipment, services etc. which are not included in obligation of Contractor but required in connection with the drilling operations or services at no obligation to the Company.

    6.1.17 It shall be the responsibility of the Contractor for taking care for containment and

    control of environment as well as pollutants at the drill site and follow the GPCB guidelines.

    6.1.18 Drilling Bits: SOGL shall provide drilling bits. If required and asked for, the

    contractor has to provide motor compatible special / premium TCR / Advanced PDC drilling bits for all phases of hole size to accomplish drilling operation in fast & efficient manner. The selection of bits shall be carried out by SOGL representative. Bidder has to procure the bits from M/s Baker-Hughes / M/s REED Hycalog / M/s Smith Drilling Services / M/s Halliburton Export Inc / M/s. Warren. Service charge shall be paid @ 5 % of the value in addition to the Invoiced/Landed cost of the bits including taxes on such purchase.

    6.1.19 Contractor shall provide the complete rig layout plan for civil works at drill site

    and along with the placement of Bunk Houses, foundation drawing with dimensions and load factors, accessory equipment and utility systems.

    6.1.20 Besides Top Drive, contractor shall provide Kelly, Kelly Spinner, Swivel etc., as

    a stand-by measure in case of failure of Top Drive. In the event of failure of Top Drive System (TDS) of the rig and if SOGL decides to continue drilling operation without TDS, 1/3rd of applicable day rate for the rig and other services shall be deducted from original respective day rates for the period drilling operations are carried out without TDS. However, the time consumed for de-rigging and subsequent rigging of TDS will be covered under Zero rate for the rig as well for other Services till the operation is resumed with TDS.

    6.1.21 In case of short supply / availability of any equipment / tools / consumables etc.

    to be supplied by the Contractor due to which drilling performance is affected, penalty clause shall be applicable according to which 1/3rd of applicable day rate for the rig and other services shall be deducted from original respective day rates for the affected period.

    6.2 CONTRACTOR PERSONNEL

    6.2.1 The Contractor shall deploy the following minimum personnel for the drilling

    operations on 12 hours shift basis as per details below: (a) KEY PERSONNEL

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    DESIGNATION

    Personnel Committed to the job

    Always present at rig site

    Experience in years

    respective categories with

    reputed oil companies

    Total Experience in years Drilling with reputed

    oil companies

    Deduction for short

    deployment Rate in USD* / Person / Day

    Project coordinator (Station at base office Ahmedabad)

    1 - 5 Years 15 200

    Rig Manager/ Superintendent

    2 1 5 Years 15 200

    Tool Pusher 2 1 5 Years 10 200

    Tour Pusher 2 1 5 Years 10 200

    Driller 4 2 5 Years 7 100

    Assistant Driller 4 2 3 Years 5 75

    Chief Mechanic 2 1 3 Years 10 100

    Chief Electrician 2 1 3 Years 10 100

    *: Or Equivalent in Indian Rupees (INR)

    (b) OTHER PERSONNEL

    DESIGNATION

    Personnel Committed to the job

    Always present at rig site

    Minimum Experience in years

    Deduction for short deployment Rate in USD* / Person / Day

    Derrick Man 4 2 5 75

    Floor Man 8 4 5 75

    Mechanic 4 2 5 75

    Electrician 4 2 5 75

    Welder 2 1 5 75

    Roustabout/ Unskilled labour

    4 2 5 50

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    Crane Operator 2 1 5 75

    Driver 2 1 3 50

    Medical (MBBS) 2 1 1 100

    Communication Operator

    2 1 2 100

    Safety Officer 2 1 3 75

    Security 2 1 2 50

    *: Or Equivalent in Indian Rupees (INR)

    Above formation of the crew is minimum. The Contractor can deploy more than these personnel at his cost to achieve the job efficiently at his own initiative.

    Note: It is mandatory for the Contractor to deploy the required persons for operations as per DGMS / OISD regulations failing which operations shall be stopped and Zero rate shall be applicable besides the deduction for short deployment as mentioned above.

    6.2.2 Other Conditions: a) Contractor shall be solely responsible throughout the period of this

    contract for providing all requirements of his personnel including but not limited to, base accommodation, transportation, boarding, medical attention and claims, vacation and time off allowances, travel and any other benefits due to such employees by law or otherwise. the Company shall have no responsibility or liability in this regard.

    b) Contractor shall before deputing his team of personnel under this contract provide to the Company a list of such personnel, giving their names, age, educational and technical qualifications and experience for perusal and approval by the Company.

    c) Contractor to provide the total Rig crew. The rig crew to be well conversant

    with all operations of drilling including Side-track / High angle and competent to take up the jobs of casing preparation and running, tubing preparation and running, assisting the services crew like that of SDMM, MWD, Liner Hanger, Whip-stock, Cementing, Mud services, Well testing and completion, Fishing etc.

    Contractor also to provide crane facility and Un-skilled labour on the Drilling Rig to load and unload all Operators equipment, materials and supplies: Such materials include casing pipes and other well consumables to be supplied by SOGL or its other service providers.

    d) Contractor shall furnish at his sole expense and under his exclusive

    responsibility competent supervisory and technical personnel to perform the work stipulated in this contract.

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    Contractor shall be responsible for securing work permit and Restricted Area Permit (RAP) from the government for contractors employees and personnel. The company shall provide assistance if required for these permits.

    The category wise list of personnel to be deployed for performing the contract should be attached with the bid indicating classification and break up into key personnel and other personnel as stipulated above.

    Contractors key personnel shall be fluent in English language.

    e) The Contract for drilling operations under this tender shall be a job contract

    and not based on manpower requirement. SOGL shall not be liable for any kind of legal or statutory obligations to absorb or provide employment to any of the Contractors personnel under any condition.

    7.0 MATERIALS, SUPPLIES, EQUIPMENT, SERVICES & PERSONNEL TO BE

    PROVIDED BY SOGL

    7.1.0 MATERIALS, SUPPLIES, EQUIPMENT, SERVICES & PERSONNEL 7.1.1 The Company will provide at its cost all items supplied in Annexure III hereto

    the heading furnished by and At the expenses of and designated by O against each items.

    a) the Company will provide following consumables required for operation as per Geotechnical order (GTO):

    i) Casing / liner hanger, Tubing and accessories ii) Well Head, X mass tree iii) Bits for drilling and coring: SOGL will provide all the required

    drilling bits. The contractor, if asked for in writing by SOGL, shall procure and use at the cost of SOGL, to have a safer and speedy drilling performance.

    b) The Company will provide an approach road to drill sites.

    c) The Company may engage its own or third party supervisors for QC of operations such as Geologists, drilling engineers, cementing, mud chemist and logging professionals etc.

    7.1.2 All items of equipment, materials, supplies and services required for operations hereunder, other than those items set forth in clause 7 hereof or otherwise required to be replaced will be provided by the Company, or at Companys option, if such items or any other item which SOGL is supposed to provide under this Contract and it is made available by the Contractor and billed, to be reimbursed by the Company at actual invoice cost plus actual documented freight, packing and insurance costs or concessions on such items plus applicable

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    taxes in addition to 5 % handling charge except in case of bits of contractors choice.

    7.1.3 Any equipment, material or supplies purchased by Contractor on account of the Company shall thereafter become the property of the Company upon payment by the Company.

    7.2 Transfer of Ownership:

    7.2.1 For Contractors Manufactured items: Transfer of Ownership takes place once the goods are loaded on to the carriage, even if Contractor arrange the transport on SOGLs behalf. The invoice for the supplies of goods made from the Contractors works will be made at the time of dispatch from Contractors works.

    7.2.2 For Bought out items: Transfer of Ownership takes place by endorsement of documents of title by the Contractor in favour of SOGL during the transit period. The invoice for the supplies of bought out goods made from the sub vendors works will be made during the transit of such goods from sub vendors works to the site of the project.

    7.2.3 Local Items: For goods supplied from within the state of Gujarat, the title

    in respect of such equipment and materials shall pass to SOGL when the equipment and materials are delivered to the Site. The invoice for supplies made from within the state where the site is located will be made on dispatch of the material for site.

    7.2.4 Off-Shore items: Ownership of the goods imported from other country

    and sold on High Sea Sale (HSS) basis to SOGL, shall be transferred to SOGL in the following manner A high sea sales through endorsement of the bill of lading or such other document will be affected and the title in relation to such imported goods before entering the territorial waters of India will be passed on to SOGL. A HSS agreement shall be executed for said items. The HSS invoice for the goods sold on HSS will be made on execution of HSS agreement and endorsement of the document.

    7.3 SOGLS INSTRUCTION

    The Company may from time to time through its authorised representative or representatives, issue written or oral (to be followed by writing) Instructions to Contractor concerning operations.

    8.0 INSPECTION OF MATERIALS

    8.1 INSPECTION BY COMPANY

    Company shall have the right to inspect and reject for any valid cause any items furnished by Contractor and Contractor shall replace with items free of defects, or repair at his sole expense such items so rejected, to the satisfaction of the Company.

    8.2 INSPECTION OF CONTRACTOR

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    Contractor agrees to perform a visual inspection, by its personnel of all materials and appliances furnished by the Company when delivered into Contractors possession and shall notify the Companys representative of any apparent defects observed therein so that the Company may replace such defective materials or appliances. If Contractor fails to notify the Company of any apparent defects as provided above, it shall be conclusively presumed that such materials and appliances are free from such apparent defect. Contractor shall not be liable for any loss or damage resulting from the use of materials or appliances furnished by the Company containing latent defects. Upon the completion and/or the termination of this Contract, Contractor shall return to the Companys storage site all machinery, equipment, tools, spare parts and supplies received by Contractor from the Company or purchased by Contractor on the Companys account and not used or consumed in the operations, in as good a condition as received by Contractor, normal wear and tear excepted. If damage to any the Companys equipment is caused due to sole negligence or other fault of the Contractor, same will be repaired or replaced at Contractors cost. Contractor shall, if requested by the Company also maintain or repair at its cost, any of the Companys items on the drilling unit which Contractor is qualified to and can maintain or repair with Contractors normal contingent of personnel and the equipment on the Drilling Unit provided however, that the Company shall at its cost provide all spare parts and materials required to maintain and repair the Company items.

    9.0 INVOICING & PAYMENT

    9.1 INVOICING

    The Contractor shall raise the invoice at the end of each month for the services rendered in accordance with the provisions under this Contract, detailing out the services performed, rates payable and the total amount claimed along with duly signed by SOGL representative IADC reports. However, if the companys representative does not sign the IADC report, within 7 days of receipt, without stating any written and formal objection or dispute, the IADC report shall be deemed as accepted. This invoice would first be submitted to the Company representative for certification along with IADC DDR who will cause it to be certified within 15 days from the date of receipt of invoice and intimate the deduction if any. The company shall make payment of undisputed invoice amount within 30 days from the date of receipt of Invoice.

    9.2 If any deduction is made from the Invoice of the Contractor, the Contractor shall be

    informed by the Company along with reasons for such deduction. 9.3 The disputed amount shall be paid to the Contractor within 30 days from the date of the

    resolution of the dispute to the satisfaction of the Company. 9.4 No interest shall be payable on any claim referred to arbitration on claim disputed. 9.5 PLACE OF PAYMENT

    Company agrees to make all remittances under this Contract into Contractors account within India or abroad as per the Bank account particulars provided by the Contractor.

    9.6 SOGLS RIGHT TO QUESTION THE AMOUNT CLAIMED

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    a) Payment of any invoice shall not prejudice the right of SOGL to question the allow ability under this Contract of any amounts claimed therein, provided SOGL within one year after the expiry of this Contract, delivers to Contractor, written notice identifying any item or items which it questions and specifying the reasons thereof. In the event of such a notice being given by the Company to Contractor, adjustments, if any, shall be made on mutual agreement basis.

    b) The Contractor shall provide on demand a complete and correct set of records pertaining to all costs for which it claims reimbursement from the Company and as to any payment provided for hereunder, which is to be made on the basis of Contractors costs.

    9.7 MODE OF PAYMENT

    a) The Company shall make payment in the same currency as per Price format in the Contract. Indian contractor shall be paid in INR only.

    b) The currency of price format will not be allowed to be changed.

    9.8 FINAL INVOICE

    a) Any and all claims not specifically reflected and included in the final bill, in accordance with the provisions of this Clause, thereof shall be deemed to have been waived by the Contractor and the Company shall have no liability in respect thereof. The Contractor shall not be entitled to raise or include in the final bill or subsequently at any time, any claim(s) other than those mentioned in the final bill.

    b) No claim shall, on any account or ground, be made by the Contractor after the

    final bill with the intent that the final bill prepared by the Contractor shall reflect any and all claims, whatsoever, of the Contractor against the Company arising out of or in connection with the Contract or work performed by the Contractor there under or in relation thereto and the Contractor shall notwithstanding any enabling provision in the Contract or in any Law and notwithstanding any claim in quantum merit that the Contractor could have in respect thereof be deemed to have waived any and all such claims not included in the final bill and to have absorbed and discharged the Company from and against the same even if not including the same as aforesaid, the Contractor shall have acted under a mistake of law of fact.

    9.9 DISCHARGE OF SOGL LIABILITY

    The acceptance by the Contractor of any amount paid by the Company to the Contractor in respect of the final bill of the Contractor upon condition that the said payment is being made in full and final settlement of all the dues and claims of the Contractor, be deemed to be in full and final settlement of all the dues and claim of Contractor notwithstanding any qualifying remark, protest or con