Invitation to Bid. For. Suriname International Competitive Bid Round 2013

Transcription

1 Invitation to Bid For Suriname International Competitive Bid Round 2013 Paramaribo, 28 January 2013

2 Table of Content Contents 1. Introduction Formal Bid Submission Calendar of Events Highlights of the Model PSC General description Operations Committee Staatsolie Participation Exploration Exchange controls Applicable Law Description of the Blocks Data Package Bid-Qualification Information Relating to Technical Capacity Information Relating to Financial Capacity Legal and Administrative Requirements Non-Biddable Items Purchase Data over Awarded Block Relinquishment Royalty and Income Tax Rate Cost Oil Ceiling Carried interest Biddable Items Exploration Phase Profit Oil Share Evaluation of Bids & Negotiations Explanations of information and promotional seminars Phone and Fax questions Promotional seminars Field visits Representations, warranties and reserved rights Communications Waiver Schedule 1 Location Map Blocks 54, 55, 56 and

3 Schedule 2 Geographical Description of Blocks 54, 55, 56 and Block Block Block Block Schedule 3 Declaration to be made by a duly authorized representative of the company Schedule 4 Summary of the Bid A. Minimum Work Program phase B. Staatsolie Share of Profit Oil Schedule 5 Point System for Evaluation of the Bids Received

4 1. Introduction Staatsolie is offering blocks 54, 55, 56 and 57 for the purpose of Hydrocarbons Exploration and Development. A map indicating the location of the Bidding Blocks is attached to this document as Schedule 1. We are looking for international oil companies (IOC s) that are ready and willing to commit capital and expertise to a rapid Exploration and Development effort. The bidding process will take place in two stages, a bid-qualification stage and a bidding stage. Interested IOC s are asked to submit a formal request to bid-qualify. As more fully described in this document, this request should include specific information relating to the company s financial, technical and management capacity. Staatsolie has prepared a data package which includes seismic data and well information (Data Package 2013) of the blocks on offer. Leasing the Data Package 2013 is mandatory to make a bid. Companies may study the Data Package 2013, visit Staatsolie and submit their bid ultimately on 26 July 2013 at 13:00 GMT Buenos Aires time. Companies may also create consortia among themselves. It is estimated that the bid evaluation will take a period of one month. Any IOC that qualifies to bid may submit a bid in the English language for a maximum of two block(s) in which they are interested. The bid must include competitive offers with regard to (i) the Minimum Work Obligation of phase one of the Exploration Period and (ii) Profit Sharing. Staatsolie, based on the evaluation of the bids received, will award the blocks and will enter into in the negotiation stage to conclude a Production Sharing Contract (PSC).The fundamental ideas embodied in Staatsolie s 2013 model PSC will not be modified as a result of these negotiations. Negotiations will have to result in a PSC within a period of 4 months after awarding the blocks. 4

5 2. Formal Bid Submission Any IOC wishing to participate in the Suriname International Competitive Bid Round 2013 (Suriname 2013 Bid Round), must submit its formal bid so as to be received by Staatsolie, no later than Friday 26 July 2013 at 13:00 GMT Buenos Aires time. The bid, in duplicate, must be sent by international courier or may be delivered by hand to Staatsolie Maatschappij Suriname N.V. Attn. Marny Daal-Vogelland Dr. Ir. H.S. Adhinstraat 21 Paramaribo Suriname Two copies of the bid shall be contained in one sealed envelope, which shall be marked Suriname 2013 Bid Round. This envelope shall also include a covering letter identifying the name of the sender, the IOC(s) that he/she represents and notification of the block for which the bid is intended. Acknowledgement of each bid, indicating time and date of receipt, will be made by Staatsolie by faxed copy of the covering letter submitted by the IOC. The actual bid contained in the inner sealed envelope will be opened on 26 July 2013 at 14:00h GMT Buenos Aires time by a notary public. Separate bids in separate envelopes are required for each block. This document replaces all previous communications from Staatsolie. All interested IOC s must follow the procedures established in this document. Any other representations made by employees or officers of Staatsolie or any of its affiliates regarding the terms of this document will not be binding on Staatsolie or any of its affiliates. This document is issued solely for the assistance and guidance of potential bidders. 5

6 3. Calendar of Events Although Staatsolie will endeavor to maintain the time table given herein the schedule could be subject to change. Lease of Data Package 2013 commences 8 October 2012 Bid Document issued to industry 28 January 2013 Model PSC available for IOC s that leased the Data Package 2013 Presentations to IOC s- Energy Conference Trinidad & Tobago 20 February January 2013 Presentations to IOC s - NAPE February 2013 Presentations to IOC s- London March 2013 Closing of bid-qualification process 26 June 2013 at 13:00GMT Buenos Aires time Closing of bid submission process 26 July 2013 at 13:00GMT Buenos Aires time Opening of bids received 26 July 2013 at 14:00 GMT Buenos Aires time Meeting of Bid Evaluation Committee 26 July - 26 August 2013 Notification to winners 30 August 2013 PSC signing ceremony 4 th quarter

7 4. Highlights of the Model PSC 2013 The following is a summary description of the general terms and conditions that will govern the Exploration and Development of hydrocarbons in the four blocks allotted in Suriname 2013 Bid Round. The 2013 Model PSC in English will be available to the IOC s that have leased the Data Package 2013, but the signed Dutch version of the PSC will prevail. Staatsolie will enter into an agreement with IOC s solely on the basis of a PSC. 4.1 General description Suriname 2013 Bid Round, calls for participation in the Exploration of blocks 54, 55, 56 and 57 by IOC s either alone or in consortia, followed by the Appraisal and Development of any commercial discoveries. 4.2 Operations Committee The Operations Committee, shall comprise of an equal number of members nominated by Contractor and Staatsolie, and will supervise, and will approve certain stages of the petroleum operations as further defined in the PSC. 4.3 Staatsolie Participation If Staatsolie elects to participate in development and production operations, that participation will not exceed 20%. Staatsolie will thereupon participate as a paying partner in all development and production expenditures. 4.4 Exploration The Contractor will bear all exploration risk and expenses through the Exploration Period that will have a duration of eight (8) years. During this period the Contractor must undertake a specified Minimum Work Program. The Exploration Period is divided in three (3) phases: Phase Years Minimum Work Obligation 1 4 Biddable item 2 2 Spud 1 Well 3 2 Spud 1 Well At the end of each phase of the Exploration Period, Contractor will have the opportunity to withdraw from further commitments. Each block is subdivided into a number of sub-blocks, each of 5 x 5 or approximately 85 square kilometers. When entering into a next exploration phase, IOC s will be required to relinquish a percentage of the original block. Relinquished areas shall conform to the subblocks. 7

8 4.5 Exchange controls Funds committed and proceeds of borrowings or sales of crude oil or gas may be maintained by the IOC s in foreign currencies in bank accounts outside Suriname. 4.6 Applicable Law The PSC between the IOC and Staatsolie will be governed by the laws of Suriname. Any disputes which may arise during the performance of the agreement between Staatsolie and the IOC may be resolved by International Arbitration. Resource to sole expert determination of certain matters will be allowed under the PSC. 4.7 Description of the Blocks A geographical description of the blocks 54, 55, 56 and 57 is set out in Schedule 2. 8

9 5. Data Package 2013 A data package has been prepared for the Suriname International competitive Bid Round Details on the content of the Data Package 2013 are available on The IOC must sign a Confidentiality Agreement and transfer payment of the license fee of the Data Package 2013, before the Data Package 2013 is couriered to the IOC. The data included in the package remains the property of Staatsolie. The resale of the package to third parties or their publication without the written permission of Staatsolie is strictly forbidden. The money paid for the acquisition of the data package will not be reimbursed under any circumstances. IOC s can, free of charge, view the Data Package 2013 via the virtual data room set up at EZdata room ( after they have signed a confidentiality agreement (CAv) for viewing purposes. After Staatsolie has received a signed copy of the CAv, the IOC will receive a username and password to access the virtual data room. IOC s can lease the Data Package 2013 by sending an application to: Ms. Marny Daal-Vogelland Manager Petroleum Contracts Staatsolie Maatschappij Suriname N.V. Dr. Ir. H.S. Adhinstraat 21 Paramaribo Suriname Fax: [email protected] 9

10 6. Bid-Qualification All applicants wishing to be considered for the acreage offering must be bid-qualified in their own right. The bid qualification closes on 26 June 2013 at 13:00 GMT Buenos Aires time. The process of bid-qualification is the evaluation by Staatsolie of the technical, financial and management capabilities of each company or group of companies expressing interest in the blocks on offer. IOC s wishing to bid qualify can submit their application using the contact details of section 12. Staatsolie will notify the IOC or group of IOC s of its status as bid-qualified. Each consortium will be required to contain a bid-qualified operator with at least a 25% interest. Companies wishing to bid-qualify must submit, as a minimum the documentation and information described below: 6.1 Information Relating to Technical Capacity A. Areas in the world where current exploration and production activities are conducted, current production and investment (exploration and production) levels. For companies wishing to be considered for operatorship, Staatsolie will be looking for experience and demonstrated competence in a number of key aspects. 1. A listing of current license interests. 2. A list of oil or gas fields worldwide which were or are currently operated. 3. Companies with no previous operator experience should explain the reasons why they are seeking operatorship. 4. A description of what the applicant sees as the main challenges of operating in offshore Suriname. 5. The company's aims for offshore Suriname. 6. The competitive edge that the company will bring to Suriname. 7. The company's Health, Safety and Environmental Framework (Management system, Policies, Organization, Planning, Monitoring Performance, Review and audit, etc.). 8. The company's employment strategy (organization chart(s), number of employees, own staff versus consultants, outsourcing, competence requirements etc.). 9. A description of the company's in-house capabilities in the area of G&G, reservoir engineering, offshore field development technology and offshore facilities management. If these are not available in-house, what external resources are needed to supply these capabilities. Please indicate the company policy regarding new or advanced technology and the company track record introducing new technology to operations. 10

11 10. The company's policy towards the training of technical staff, including formal internal or outside training programs and other ways of ensuring that staff are kept up to date in their specialist subjects. 11. A description of the company's efforts on Innovation and Research over the past five years. 12. Proven ability to operate not only in the exploratory stage, but also in the development and production stages. 13. Experience of deep drilling (up to 5,000 m), over pressured/ high pressure (15,000 psi) wells, and of operations in frontier areas. 14. Any other supporting information relevant to the request for qualification as an Operator. B. Description of key oil/gas fields (or areas) that are currently being operated or developed by the applicant company. C. Description of operations in difficult operating conditions including deep water, high temperature/ pressure operations and environmentally sensitive areas. 6.2 Information Relating to Financial Capacity A. Audited consolidated financial statements for the applicant company with notes of the last three (3) years, including: i) Balance Sheet ii) Income Statement iii) Cash Flow Statement iv) Nature of capitalization B. The applicant company s present credit rating (S&P and/or Moody s ratings) or lines of credit, credit agreements and any other bank reference. C. Any additional information supporting the financial capacity of the applicant including a draft Parent Company Guarantee (PCG) that the IOC wishes Staatsolie to take into account. This PCG should guarantee at least, but is not necessarily limited to, the execution of all obligations during the Exploration Period. 6.3 Legal and Administrative Requirements A. The name, title, address, telephone and fax number of the person who shall be the single point contact in the applicant company to whom all correspondence should be sent. 11

12 B. A copy of the Articles of Incorporation and By-Laws of the applicant company, plus the name of any sovereign state or nationals of any sovereign state that directly or indirectly holds 50% or more of the voting shares of the applicant company or otherwise has an interest that could constitute control. The decision whether to bid-qualify an applicant will be made by Staatsolie in its sole judgment and discretion taking into account the information requested above. However, Staatsolie may reject any application without giving reasons for so doing. IOC s already a contractor in offshore Suriname do not need to bid qualify. Qualified companies will be free to form consortia up to the point of submission of a bid for a block. The only restrictions that will apply are: i) Each consortium must contain a company pre-qualified as an Operator; and, ii) The minimum interest that may be held by an applicant in a consortium is 10%. 12

13 7. Non-Biddable Items 7.1 Purchase Data over Awarded Block The successful bidders will have to pay uplift for the 2D seismic data acquired in December 2011 that covers the awarded block. These costs will not be subject to cost recovery. Block # Km of available 2D seismic Uplift in US$ data (2011) Block km 675,000 Block km 537,000 Block km 469,000 Block km 509, Relinquishment At the end of each phase of the Exploration Period, contractor must relinquish a certain percentage of the awarded block. Block name Moment of mandatory relinquishment Block 54 At the end of each exploration phase Block 55 At the end of each exploration phase Block 56 At the end of each exploration phase Block 57 At the end of each exploration phase Percentage of mandatory relinquishment 25% of initial contract area. 25% of initial contract area 20% of initial contract area 20% of initial contract area 7.3 Royalty and Income Tax Rate A Royalty Rate of 6.25% of gross production is applicable offshore. The rate of Income Tax is 36% and will be applicable for the duration of the PSC. 7.4 Cost Oil Ceiling Per calendar year a maximum of 75% of the gross production minus royalty, shall be used for recovery of Exploration, Development and Production costs. 7.5 Carried interest Staatsolie can elect to participate in Development and Production operations for a maximum of 20%. Staatsolie will then participate as a paying partner in all Development and Production expenditures. The Contractor shall carry Staatsolie during the Exploration Period. 13

14 8. Biddable Items Each qualified IOC or consortia may be awarded a maximum of two (2) Blocks. Staatsolie may take in to account its own view of the tendering company s technical and financial capabilities of operating more than one block. Every bid shall be accompanied by the following: 1. a signed declaration indicating that the model Production Sharing Contract 2013 has been examined and the terms agreed, to be presented in the form attached hereto as Schedule 3; 2. a summary of the proposals in respect of (i) the Minimum Work Program in Phase 1 of the Exploration Period and (ii) Profit Oil Sharing referred to in clause 8.2 presented in the prescribed manner indicated in the Summary Bid Form attached hereto as Schedule 4; 3. legal identity of the bidder(s); 8.1 Exploration Phase 1 IOCs are asked to bid the Minimum Work Program of phase 1 of the Exploration Period. IOCs must bid to acquire, process and interpret at least 3,000km 2D seismic OR 1000km² 3D seismic. In case the IOC wants to offer a 2D seismic and a 3D seismic program in phase 1, the minimum amount of 3D seismic data that needs to be acquired, processed and interpreted is 750km². 8.2 Profit Oil Share IOC s are asked to bid on top of the required level of Staatsolie s Profit Oil share while X is a multiple of 1%: R- Factor Slices Staatsolie Share (%) X X X X X >3 70+ X 14

15 Where the R-factor is calculated for a Commercial Field as: R= (cum. gross revenue - cum. royalty - cum. income tax) (cum. recoverable petroleum expenditures) cumulative gross revenue means the total value of all Gross Production from the Effective Date to end of the respective Calendar Quarter, with Gross Production being valued at the Market Price; cumulative royalty means 6.25% of the cumulative gross revenue; cumulative income tax means the total of all income taxes calculated as the tax rate multiplied by total Profit Oil from both Contractor and Staatsolie related to this Commercial Field, from the Effective Date to the end of the respective Calendar Quarter; and cumulative petroleum expenditures means the sum of all recoverable Petroleum Expenditures related to the Commercial Field from the Effective Date to the end of the respective Calendar Quarter. 15

16 9. Evaluation of Bids & Negotiations A B C Staatsolie is seeking an early well commitment but all tenders will be evaluated on their technical merits. Each work program offered must include an estimate for the seismic acquisition and drilling operations. A bid proposal shall be evaluated on the basis of the Point System to be used for Evaluating Bids set out in Schedule 5. The submitted bids will be evaluated by Staatsolie according to the following weighing factors. a. 60% for the minimum Exploration Work Program for phase 1 b. 40% for Staatsolie Profit Oil Share D. Where several bidders for a particular block are awarded the same number of points, each such bidder shall be required to bid a signature cash bonus for the purpose of determining the preferred bidder for that block. E. Successful bids shall be announced by 30 August F. IOC s awarded a block will be invited to sign with Staatsolie a PSC and negotiation for each block will proceed on an exclusive basis with the IOC or consortia of companies. 16

17 10. Explanations of information and promotional seminars 10.1 Phone and Fax questions Staatsolie will be pleased to assist companies who have questions regarding the process via the contact details listed in Section 12. While minor queries will be dealt with by phone, any substantive issues will be handled in writing Promotional seminars Staatsolie will be conducting promotional seminars in Port of Spain, London and Houston, as given in the Calendar of Events Field visits Bid-qualified companies may independently visit Staatsolie. Neither Staatsolie nor any of its affiliates will be responsible for any loss or damage whatsoever, including personal injuries that might occur during any of the visits. 17

18 11. Representations, warranties and reserved rights While the information made available in this document and the information which may subsequently be made available, whether as a supplement to this Bid Document, in answers to questions from prospective bidders, or in the Data Package 2013 is believed to be fairly presented, neither Staatsolie nor any of its affiliates, their employees or agents makes any representation or warranty, either express or implied, as to the correctness of such information nor will they accept any claim for damages if such information proves to be incorrect. Staatsolie reserves the right, in its sole discretion, prior to the submission of bids, without any explanation, to: i) withdraw, add to, or substitute all or any of the blocks offered; ii) waive any condition to the bid-qualification of any company; and iii) revise the schedules, procedures and conditions pertaining to the Suriname 2013 Bid Round. Staatsolie also reserves the right, at any time, in its sole discretion, to declare any bid or the entire Suriname 2013 Bid Round void or to disqualify any bid-qualified company without giving any reason. IOC s submitting bids shall accept that in no event may a claim be filed against the Government of the Republic of Suriname, Staatsolie or any of its affiliates or any of their agents or employees as a result of any such decision. 18

19 12. Communications All communications must be sent to the name, address and fax numbers given below. Marny Daal-Vogelland Manager Petroleum Contracts Staatsolie Maatschappij Suriname N.V. Dr. Ir. H.S. Adhinstraat # 21 Paramaribo- Suriname Phone: Fax: [email protected] 19

20 13. Waiver In submitting a bid under the terms of conditions given in this official bid document any IOC or member of a consortium submitting a bid accepts the said terms and conditions and waives any recourse to appeal or litigation in any jurisdiction except as provided herein. This document replaces all previous communications from Staatsolie or any of its affiliates on the Suriname 2013 Bid Round. 20

21 Schedule 1 Location Map Blocks 54, 55, 56 and 57 21

22 Schedule 2 Geographical Description of Blocks 54, 55, 56 and 57 The boundary of blocks on offer is defined by the geographical co-ordinates in terms of the WGS 84 geodetic datum, WGS 84 spheroid. Geographic Coordinate System of the coordinates Region South America, Suriname Datum World Geodetic System 1984 (WGS 84) Spheroid World Geodetic System 1984 Semi-Major Axis a= m Semi Minor Axis b= m First Eccentricity Squared e²= Inverse Flattening 1/f= The boundary follows lines of equal latitude or longitude. Block 54 Block 54 comprising approximately 8,824 km² is situated offshore Suriname and is bounded by the lines joining the points listed hereunder. 22

23 # points WGS 1984 Lat Lon '00'' N 54 55'00'' N '00'' N 54 55'00'' N '00'' N 54 50'00'' N '00'' N 54 50'00'' N '00'' N 54 45'00'' N '00'' N 54 45'00'' N '00'' N 54 40'00'' N '00'' N 54 40'00'' N '00'' N 54 35'00'' W '00'' N 54 35'00'' W '00'' N 54 30'00'' W '00'' N 54 30'00'' W '00'' N 54 25'00'' W '00'' N 54 25'00'' W '00'' N 54 20'00'' W '00'' N 54 20'00'' W '00'' N 54 10'00'' W '00'' N 54 10'00'' W '00'' N 54 00'00'' W '00'' N 54 00'00'' W '00'' N 53 55'00'' W '00'' N 53 55'00'' W '00'' N 53 50'00'' W '00'' N 53 50'00'' W '00'' N 53 45'00'' W '00'' N 53 45'00'' W '00'' N 53 50'00'' W '00'' N 53 50'00'' W '00'' N 53 55'00'' W '00'' N 53 55'00'' W 23

24 Block 55 Block 55 comprising approximately 7,765 km² is situated offshore Suriname and is bounded by the lines joining the points listed hereunder. # points Lat WGS 1984 Lon '00'' N 53 55'00'' W '00'' N 53 55'00'' W '00'' N 54 00'00'' W '00'' N 54 00'00'' W '00'' N 54 10'00'' W '00'' N 54 10'00'' W '00'' N 54 20'00'' W '00'' N 54 20'00'' W '00'' N 54 05'00'' W '00'' N 54 05'00'' W '00'' N 54 00'00'' W '00'' N 54 00'00'' W '00'' N 53 45'00'' W '00'' N 53 45'00'' W '00'' N 53 35'00'' W 24

25 '00'' N 53 35'00'' W '00'' N 53 25'00'' W '00'' N 53 25'00'' W '00'' N 53 20'00'' W '00'' N 53 20'00'' W '00'' N 53 25'00'' W '00'' N 53 25'00'' W '00'' N 53 30'00'' W '00'' N 53 30'00'' W '00'' N 53 25'00'' W '00'' N 53 25'00'' W '00'' N 53 30'00'' W '00'' N 53 30'00'' W '00'' N 53 35'00'' W '00'' N 53 35'00'' W '00'' N 53 40'00'' W '00'' N 53 40'00'' W 25

26 Block 56 Block 56 comprising approximately 5,704 km² is situated offshore Suriname and is bounded by the lines joining the points listed hereunder. # points Lat WGS 1984 Lon '00'' N 53 45'00'' W '00'' N 53 45'00'' W '00'' N 53 50'00'' W '00'' N 53 50'00'' W '00'' N 53 40'00'' W '00'' N 53 40'00'' W '00'' N 53 35'00'' W '00'' N 53 35'00'' W '00'' N 53 30'00'' W '00'' N 53 30'00'' W '00'' N 53 25'00'' W '00'' N 53 25'00'' W '00'' N 53 30'00'' W '00'' N 53 30'00'' W 26

27 '00'' N 53 25'00'' W '00'' N 53 25'00'' W '00'' N 53 20'00'' W '00'' N 53 20'00'' W '00'' N 53 15'00'' W '00'' N 53 15'00'' W '00'' N 53 05'00'' W '00'' N 53 05'00'' W '00'' N 53 00'00'' W '00'' N 53 00'00'' W '00'' N 52 55'00'' W '00'' N 52 55'00'' W '00'' N 52 50'00'' W '00'' N 52 50'00'' W '00'' N 52 55'00'' W '00'' N 52 55'00'' W '00'' N 53 10'00'' W '00'' N 53 10'00'' W 27

28 Block 57 Block 57 comprising approximately 5,527 km² is situated offshore Suriname and is bounded by the lines joining the points listed hereunder. # points Lat WGS 1984 Lon '00'' N 53 55'00'' W '00'' N 53 55'00'' W '00'' N 53 50'00'' W '00'' N 53 50'00'' W '00'' N 53 10'00'' W '00'' N 53 10'00'' W '00'' N 53 00'00'' W '00'' N 53 00'00'' W '00'' N 53 05'00'' W '00'' N 53 05'00'' W '00'' N 53 10'00'' W '00'' N 53 10'00'' W '00'' N 53 15'00'' W '00'' N 53 15'00'' W 28

29 Schedule 3 Declaration to be made by a duly authorized representative of the company Company Name Address (Company name)declares that is has reviewed the provisions of the model Production Sharing Contract(PSC) 2013 for blocks 54, 55, 56 and 57 and all its annexes having analyzed all its terms and condition for submission of a bid in response to this bid document Suriname International Competitive Bid Round (Company name) agrees that said model will be the basis of the PSC that will eventually be signed and that changes in the model PSC 2013 will be limited to (i) avoid any ambiguity or (ii) increase clarity. (print or stamp name here) 29

30 Schedule 4 Summary of the Bid A. Minimum Work Program phase 1 Phase 1 Minimum Work Program Work Geophysical SEISMIC 1 2D seismic (km) 3D seismic (sq. km) Drilling: Exploration Wells Note: Spudding of at least one exploration well is a requirement in the second and third phase of the exploration period if entered into. B. Staatsolie Share of Profit Oil X=.. R- Factor Slices Staatsolie Share (%) X X X X X >3 70+X 1 Bid on top of the required 3,000km 2D seismic or 1,000km² 3D seismic 30

31 Schedule 5 Point System for Evaluation of the Bids Received A. The bids will be receive the following score: Item Points 2D seismic 0.2 points per km 3D seismic 2 points per km 2 Well 15,000 points per well Staatsolie profit share by increments of 6,000 points per increment 1% for all slices B. The following weighing factors will be applied: % for the Minimum Work Program for phase 1 of the Exploration Period 2. 40% for Staatsolie Share of Profits Oil 31