华油惠博普科技股份有限公司

China Oil HBP Science & Technology Corporation Ltd.

SECTION I

INSTRUCTION TO BIDDERS

Construction of Office for HBP Camp in Garraf Oilfield

TENDER No.: HBP-2019-PWT-0002

June , 2019
 华油惠博普科技股份有限公司
China Oil HBP Science & Technology Corporation Ltd.

TABLE OF CONTENTS

1.0 GENERAL INFORMATION..........................................................................1

2.0 DEFINITIONS...............................................................................................2
3.0 PROJECT DESCRIPTION...........................................................................2
4.0 BID ACKNOWLEDGEMENT.......................................................................3
5.0 CLARIFICATION AND CORRESPONDENCE DURING BID PERIOD.......3
6.0 DECLINATION OF BID REQUEST..............................................................4
7.0 PREPARATION OF BID PROPOSAL.........................................................4
8.0 REQUIREMENTS OF THE BID PROPOSALS...........................................5
9.0 BID CLOSING DATE AND TIME...............................................................10
10.0 SUBMISSION OF BID..............................................................................10
11.0 BID CONDITIONS....................................................................................10
12.0 ACCEPTANCE OF BID AND QUALIFICATION......................................11
13.0 CLARIFICATION OF PROPOSAL...........................................................11
14.0 EXTENSION OF BID PERIOD.................................................................11
15.0 AWARD OF SUBCONTRACT..................................................................11
16.0 LAW..........................................................................................................12
17.0 INSPECTION PRIOR TO SUBCONTRACT AWARD..............................12
18.0 BIDDER’S KNOWLEDGE........................................................................12
19.0 CONFIDENTIALITY...............................................................................12
20.0 REFERENCE NUMBERS........................................................................13
21.0 OTHERS...................................................................................................13
22.0 ATTACHMENTS........................................................................................13
 INSTRUCTION TO BIDDERS

These instructions apply to preparation of bid PROPOSALS to be

submitted to CONTRACTOR. BIDDERS are to read the following
bidding instructions thoroughly and carefully, and, to strictly follow all
the instructions and requirements stipulated herein during preparation
of their PROPOSALS. Failure in following the bidding instructions may
result in rejection of a BIDDER’s PROPOSALS.

1.0 GENERAL INFORMATION

1.1 This Invitation to Bid (“ITB”) comprises the following:

Section I Instruction to Bidders
Section II Form & Conditions of SUBCONTRACT
Exhibit I Scope of Work
Exhibit II Schedule of Work
Exhibit III Price & Payment Schedule

1.2 PURPOSE OF ITB DOCUMENTS

The ITB are and shall remain the property of CONTRACTOR and are
transmitted to BIDDER solely for the purpose of preparing and
submitting a PROPOSAL by BIDDERS in accordance therewith.
BIDDER shall keep confidential and shall not release any part of the
ITB to any third party, other than to have the third party prepare
and submit to BIDDER a PROPOSAL for part of the work.

BIDDER, whether it bids or not, shall handle all documents related to

the present invitation to Bid in a strictly confidential manner.

1.3 AMENDMENT OF ITB

At any time prior to the BID CLOSING DATE AND TIME,

CONTRACTOR may, for any reason, whether at its own initiative or in
response to a clarification requested by a prospective BIDDER, modify
the ITB by amendment.

The amendment will be notified in writing to all prospective BIDDERS

and the prospective BIDDERS shall promptly acknowledge receipt
thereof by e-mail to CONTRACTOR.

In order for the prospective BIDDERS to have reasonable time to

incorporate the amendment into the PROPOSAL, CONTRACTOR
may, at its discretion, extend the BID CLOSING DATE AND TIME
accordingly.
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2.0 DEFINITIONS

A full list of contractual definitions is given in Section II FORM &

CONDITIONS of SUBCONTRACT .In addition to those found in Section
II, the following is a list of definitions and explanations of terms specific
to Sections I.
2.1 “ITB” means Invitation to Bid Documents issued by CONTRACTOR
defined in clause 1.0 hereof.
2.2 “BIDDER” means a company who is invited by CONTRACTOR to bid
and submits a PROPOSAL in accordance with the requirements of
this ITB. The BIDDERS shall be of eligible entity with qualified
technical experiences and sound financial strength and responsibility
to support the execution of the work.

2.3 “BID CLOSING DATE AND TIME” means the end date and time by
which BIDDER’s response to the ITB must be received by
CONTRACTOR.

2.4 “BID PERIOD” shall mean the time between the issuance of the ITB
and the BID CLOSING DATE AND TIME.

2.5 “PROPOSAL” means documents submitted by BIDDERS in

accordance with the requirements of the ITB.

3.0 PROJECT DESCRIPTION

The Garraf field is situated in the southern part of Iraq, in the Thi Qar
Governorate, some 5 km Northwest of Al Rifa’I city and 85 km North of
Nasiriyah. Garraf is an anticlinal structure aligned Northwest-
Southeast, about 31 km long and 10 km wide.

CONTRACTOR is hereby soliciting competitive bid PROPOSALS for

Construction of Office for HBP Camp in Garraf Oilfield as specified in
EXHIBIT 1 SCOPE OF WORK and as mentioned in ATTACHEMENT-1
Drawings and ATTACHEMENT-2 BOQ.

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 Garraf Field Location

4.0 BID ACKNOWLEDGEMENT

4.1 Within 48 hours after receipt of this ITB, BIDDERS shall submit their
acknowledgement of receipt of the ITB package and make a
confirmation of intent to or not to submit a bid thereof by email to
CONTRACTOR representative mentioned below:

Subject: Bid Acknowledgement from XXX Company

Email: waqar@china-hbp.com

A format of Bid Acknowledgement is enclosed of this ITB as SECTION

II- INSTRUCTION TO BIDDERS ATTACHMENT for BIDDER to follow.

4.2 The BIDDER shall appoint a lawful attorney and authorize him to
execute all the necessary matters related. A format of Power of
Attorney is enclosed in Section II of this ITB as ATTACHMENT II -2.
The Power of Attorney shall be included in Technical PROPOSAL.

5.0 CLARIFICATION AND CORRESPONDENCE DURING BID PERIOD

BIDDERS shall submit their requests for clarification, notification of

discrepancies or omissions in the ITB in writing no later than three (3)
calendar days before the BID CLOSING DATE AND TIME specified in
Clause 9.0 herein of this Section, by email to the address stated in
Clause 4.0 herein of this Section with the format as ATTACHMENT II
-13.

CONTRACTOR will not respond to telephone inquiries from

BIDDERS. Additional information or explanations regarding this ITB
given to one BIDDER will be sent to all BIDDERS in order to keep the
PROPOSAL on a comparable basis. All information and explanations
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 given by CONTRACTOR shall be deemed to be construed as an
integral part of this ITB.

6.0 DECLINATION OF BID REQUEST

This ITB and attached documents are considered to be confidential.

Should the BIDDERS be unwilling to participate in this bid after
receiving the bid documents they should promptly notify BIDDER and
delete the bid documents.

BIDDERS shall provide adequate explanations for their declination to

participate in this bid in order to remain on CONTRACTOR list of
Vendors for future bids.

7.0 PREPARATION OF BID PROPOSAL

7.1 GENERAL

BIDDERS shall submit their PROPOSAL on the basis of the terms and
conditions of the ITB documents. Failure to prepare bid PROPOSAL
in accordance with the specifications, terms and conditions will be
cause for disqualification.

BIDDERS shall sign all pages of its Bid Acknowledgement, Power of

Attorney, Technical Proposal and Commercial Proposal.

7.2 LANGUAGE

The PROPOSAL prepared by the BIDDERS and all correspondence

and documents related to the PROPOSAL by and between the
BIDDERS and CONTRACTOR shall be written in the English
language.

7.3 SITE VISIT

In the event that the BIDDER is advised to visit and examine the site
of the work and its surroundings to obtain for itself on its own
responsibility all information that may be necessary for preparing the
PROPOSAL. The cost of visiting the site shall be at BIDDER’s own
expense and the BIDDER shall take all risks, if any, in this regard.

CONTRACTOR shall provide necessary assistance to the BIDDER to

obtain permission for any of its personnel or agents to enter site of the
work upon the premises for the purpose of such inspection by prior
arrangement, but only upon the express condition that the BIDDER,
whether its personnel or agents, will release and indemnify the
CONTRACTOR and their personnel or agents all liability in respect
thereof and will be responsible for personal injury (whether fatal or
otherwise), loss of or damage to property and any other loss, damage,
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 cost and expenses whatever caused, which, but for the exercise of
such permission would not have arisen.

8.0 REQUIREMENTS OF THE BID PROPOSALS

The BID PROPOSAL shall be prepared in English with two parts as

follows:

Part I - Technical Proposal

Part II - Commercial Proposal

8.1 BIDDER shall submit a Technical Proposal package as per the following
table of content with proper numbered sections.

a) BIDDER’s Profile
b) Project Organization;
c) Personnel Qualification
d) BIDDER’s Experiences;
e) Project Execution Plan;
f) Project Management
g) Litigation
h) Company Registration with Ministry of Trade, IRAQ
i) Other matters at BIDDER’s discretion;

8.1.1 BIDDER’s Profile

BIDDER shall state the full name and activities of its company, place
and date of incorporation, company structure and shall also state the
name and activities of its subsidiaries, affiliate and associate
companies, if any. Notwithstanding the above, BIDDER is required to
provide information as per ATTACHMENT I-4 BIDDER’s Profile.

8.1.2 Project Organization

BIDDER shall confirm the structure of its Project Organization chart

with the names. BIDDER shall submit the organization chart for the
PROJECT which shall include without limitation a Project Manager,
Engineering Manager, Construction Manager, Procurement Manager,
Project Control Manager, QA/QC Manager, Lead Engineers of various
disciplines and HSE team and like senior representatives.

8.1.3 Personnel Qualification

BIDDER shall refer to ATTACHMENT II-5–Key Personnel List for
further details on the requirements. BIDDER shall provide resumes
refer to ATTACHMENT I-6–Key Personnel Resume of all key personnel
it proposes to employ in the execution of the WORK.

8.1.4 BIDDER’s Experiences

BIDDER shall describe its experience of work related as Subcontractor

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 within the last five (5) years.
BIDDER shall submit the information in the format provided in
ATTACHMENT II-7 BIDDER’s Experience. As the supporting
documents, the copy of the letter of award and the SUBCONTRACT
need to be provided.

8.1.5 Project Execution Plan

BIDDER shall provide preliminary Project Execution Plan (PEP) for the
WORK in accordance with the requirements stipulated under this
clause.

The PEP shall include with respect to all phases and aspects of the
WORK, including details of the deliverables/output of each activity. The
PEP shall include the following information, but is not limited to:

a) Project Management
b) Engineering
c) Contracting and Procurement
d) Project Control and Planning
e) Construction/Installation
f) Commissioning
g) Project Controls
h) QA/QC
i) HSES

The PEP shall be in sufficient detail to assure CONTRACTOR that

BIDDER is capable of performing the work in accordance to the
requirement as set in the ITB.

8.1.6 Project Management

BIDDER shall submit its mobilization of manpower plan showing the

strategy to execute the work including mobilization and demobilization
plans of all its resources.

8.1.7 Litigation

If BIDDER, have been involved in any litigation in the last ten (10)
years, the nature and status of litigation shall be described and
submitted under BIDDER letterhead accompanied by its appointed
legal entity cover note.

If there is, to the best of BIDDER’s knowledge, any litigation that

involves BIDDER, currently or impending, brief particulars shall be
stated.

BIDDER shall also submit the form as per ATTACHMENT II-9

LITIGATION
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8.1.12 Company Registration with Ministry of Trade, IRAQ

BIDDER shall submit a copy of its company registration with Ministry of

Trade Iraq under its technical PROPOSAL.

8.1.13 Other matters at BIDDER’s discretion

BIDDER may include any other non-commercial information it feels

necessary for CONTRACTOR to evaluate its PROPOSAL.

8.2 BIDDER shall submit a commercial PROPOSAL package as per the

following content with proper numbered sections.

a) Deviations for Form & Conditions of SUBCONTRACT

b) Summary of Bid Price （Including Bill of Quantity Unit Price as
ATTACHMENT 2 -BOQ）

8.2.1 The successful BIDDER shall sign the Subcontract with CONTRACTOR
per the Form & Conditions of SUBCONTRACT provided in Section II.
BIDDER shall state the deviations of SUBCONTRACT with the provided
format TTACHMENT II-11 Statement of Deviations for Form & Conditions
of SUBCONTRACT. BIDDER shall confirm that anything not stated in the
deviations will comply fully with Form & Conditions of SUBCONTRACT.
Any BIDDER’s deviations are not in the “Statement of Deviations” may be
disqualified and rejected by CONTRACTOR.

CONTRACTOR reserve the right to accept or reject any deviations in

whole or in part.

8.2.2 The bid price shall be quoted in US Dollar (USD). Quotations in any
other currency shall be nullified and rejected.

BIDDERS are required to quote the prices following the format of

ATTACHMENT 2 -BOQ. BIDDER shall duly complete and sign the
Summary of Bid Price of this Section. It shall be the prime document in
BIDDER’s Commercial Proposal.

Unless otherwise specified, the Bid Price indicated by BIDDERS shall

be fixed and not subject to variation on any account. The price is
inclusive of all sales, excise, value added, storage, consumption and
use taxes; license, permit and registration fees and income, profit,
franchise, withhold tax, corporate and personnel property taxes. All
payments shall be subject to tax deductions as per Iraqi tax laws.

No any commercial or price information should be contained in a

Technical Proposal.

9.0 BID CLOSING DATE AND TIME

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 The bid PROPOSAL shall be received no later than 18:00, July 10th,
2019 (IRAQ Time), unless CONTRACTOR extends the said date in
writing. PROPOSALS received after above mentioned date shall not
be taken into consideration.

10.0 SUBMISSION OF BID

The bid PROPOSAL shall be submitted in one (1) sealed packages to

CONTRACTOR’s following address no later than the time and date
stated in the Clause 9.0 above unless CONTRACTOR extends the
opening date in writing.

China Oil HBP Science & Technology Co. Ltd.

Contracts Department
Location: Garraf Oilfield-HBP Camp Iraq
Attention: Tender Secretariat

The Package shall mark

CONFIDENTIAL –Technical/Commercial Proposal for the Construction of

office for HBP in Garraf Oilfield

TENDER NO: HBP-2019-PWT-0002

To be opened by addressee only.

Also require to submit the proposal by email at below email address:

Attention to: Waqar Hussain

Email Address: waqar@china-hbp.com

11.0 BID CONDITIONS

11.1 VALIDITY PERIOD

BIDDER’s bid PROPOSAL shall be irrevocable for a period of 120

calendar days from the BID CLOSING DATE AND TIME specified in
Clause 9.0 hereof above, and shall be opened for acceptance at any
time during this period. CONTRACTOR shall have the right to request
BIDDERS to confirm validity of their bids for one extended period.

11.2 COST OF PREPARING BID

Submission of a bid is entirely at the discretion of each BIDDER. Any

cost related to this bid PROPOSAL preparation and submission and
any subsequent cost related to clarifications, meetings, etc. shall be by
and at the sole expense of BIDDER. CONTRACTOR will not contribute
towards the expenses of compiling and preparing any Bid.
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 12.0 ACCEPTANCE OF BID AND QUALIFICATION

12.1 CONTRACTOR is neither bound to accept any bid submitted nor the
lowest bid submitted and also reserves the right to accept or reject any or
all of the bid PROPOSALS received at its sole discretion and without any
explanation.

12.2 CONTRACTOR is not bound to enter into correspondence or discussion

concerning the rejection of any or all bids. Nevertheless, after the bids
have been opened, CONTRACTOR shall have the right to request any or
all BIDDERS to explain, amplify or clarify their bids without incurring any
obligation whatsoever.

13.0 CLARIFICATION OF PROPOSAL

BIDDERS shall be prepared to discuss and clarify any aspect of their

PROPOSALS at any reasonable time in CONTRACTOR’s office stated
in clause 10.0 prior to awarding the Subcontract.

BIDDERS who submit unclear or ambiguous PROPOSALS, or

PROPOSALS containing inconsistencies or deviations, or more
generally fail to comply with the Instructions to BIDDERS, shall bear
the risks of being disqualified without a further opportunity to make
amendments.

The request for clarification and response shall be in writing and no

change in the price or content of the PROPOSAL shall be sought or
offered.

14.0 EXTENSION OF BID PERIOD

If for any good reason BIDDER desires more time to present its bid
PROPOSAL, it may request a time extension in writing. If the request hereof is
granted, all BIDDERS will then be notified of the extension hereof and no bids
will be opened until the new due date has expired. No extensions will be taken
into consideration during the last one week of the bid period
15.0 AWARD OF SUBCONTRACT

15.1 SUCCESSFUL BIDDER

The successful BIDDER will be notified by CONTRACTOR in writing

as soon as practicable after the BID CLOSING DATE AND TIME and
shall, within 30 days, enter into Subcontract with CONTRACTOR. Only
when both parties sign the Subcontract will CONTRACTOR be bound
to the BIDDER for the performance of its obligations under the
Subcontract.

15.2 BIDDERS AS SINGLE ENTITY

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 CONTRACTOR expects to SUBCONTRACT with the successful
BIDDER as a single entity and subcontract by successful BIDDER is
not allowed.

16.0 LAW

16.1 This Bid shall be construed in accordance with and governed by the
Laws of China (without reference to its rules as to conflicts of law).

16.2 BIDDERS shall also be fully aware of the Iraqi laws and regulations
including but not limited to those of Tax, Labor, Social Security,
Customs duties and their latest amendments.

17.0 INSPECTION PRIOR TO SUBCONTRACT AWARD

During the bid evaluation period, BIDDERS shall provide access to

allow CONTRACTOR, third party inspection teams and regulatory
authorities to perform pre-acceptance and operability compliance
survey for the purpose of the award of SUBCONTRACT.

18.0 BIDDER’S KNOWLEDGE

It is the responsibility of BIDDER, prior to submitting its PROPOSAL, to

make certain that it has in its possession all documents, specifications,
data-sheets, drawings necessary for its PROPOSAL.

BIDDER shall be deemed to have a full working knowledge of the

Operation Areas including, where applicable, the prevailing climatic
and environmental conditions, rules and regulations for work permits in
the Republic of Iraq, and requirements and authorizations for access to
the Operation Areas, and to have been familiar with, and obtained all
necessary information and satisfied itself as to the extent and nature of
the work, factors, the data, contingencies and all other circumstances
or conditions which may in any way affect the amount or the nature of
the PROPOSAL , or the performance of the work in respect of supply
of labors, plants, tools and materials, and any other matters, including,
where applicable, the geotechnical, geophysical, hydrological and
climatic conditions at the Operation Areas in the event BIDDER is
successful.

19.0 CONFIDENTIALITY

19.1 BIDDER has agreed as a condition of receiving this ITB that BIDDER
shall keep the contents of this ITB strictly confidential and shall use only
such information necessary for the preparation of the Bid. The disclosure
of information in this ITB to BIDDER hereunder shall not be construed
as granting to BIDDER a license or any rights under copyright, trade
secret or any patents. A format of Confidentiality Undertaking is
enclosed in Section II of this ITB as ATTACHMENT II -3 for BIDDER to
follow.
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19.2 BIDDER shall not disclose to any third party all or any part of the
information disclosed by CONTRACTOR or otherwise obtained by
BIDDER in the course of and/or as a result of the performance of the Bid
preparation hereunder.
If such disclosure is required by law or requested by governmental or
regulatory agency or legal or arbitration or other legal proceedings
between BIDDER and CONTRACTOR, BIDDER shall notify
CONTRACTOR in writing of contents of such disclosure in advance.

20.0 REFERENCE NUMBERS

CONTRACTOR’s tender no must be clearly indicated on your

PROPOSAL and/or all letters, communications and other documents
related thereto.

21.0 OTHERS

21.1 Unless and until such time a formal Subcontract is prepared and
executed, BIDDER’s PROPOSAL together with CONTRACTOR’s
acceptance thereof and signing of letter of intent shall constitute a
binding SUBCONTRACT.

21.2 BIDDER shall provide access, including audit access, to its personnel,
records, documents and the like as may be required for any
reasonable purposes, including verification of the levels and types
and services to be provided by the BIDDER.

22.0 ATTACHMENTS

Attachments hereinafter referred to follow this SECTION.

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