Annex VI

Page: 1

Of: 48

CLIENT: FERTIAL LES FERTILISANTS D’ALGERIE

PROJECT: REVAMP OF THE KELLOGG AMMONIA PLANTS

FRP-IDM-FEL-AET-0001

INVITATION TO BID (ITB)

FOR
THE FRONT END ENGINEERING DESIGN PACKAGE (FEED)
FOR
THE REVAMP OF THE KELLOGG-DESIGN AMMONIA PLANTS
AND RELATED FACILITIES
AT
FERTIAL ANNABA AND ARZEW SITES, ALGERIA

04 01/07/2015 Valid for Submission with corrections ARP ACM DHF/GFO

03 30/06/2015 Valid for Submission ARP ACM DHF/GFO
02 14/06/2015 Final QA review ARP ACM GFO
01 07/05/2015 Creation ARP ACM GFO
REV DATE DESCRIPTION AUTHOR REVISED APPROVED

FRP-IDM-FEL-AET-0001 – INVITATION TO BID

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FEED ITB

INDEX
1. DEFINITIONS ........................................................................................................................................ 5
2. INTRODUCTION TO THE PROJECT .................................................................................................. 7
2.1. DEFINITION AND OBJECTIVES OF THE PROJECT .............................................................. 7
2.2. SCOPE OF THE PROJECT ...................................................................................................... 7
2.3. BACKGROUND OF THE PROJECT ......................................................................................... 7
2.4. PROJECT EXECUTION STRATEGY........................................................................................ 8
3. INFORMATION TO BID ........................................................................................................................ 9
3.1. AIM OF THIS TENDER ............................................................................................................. 9
3.2. PARTICIPATION ....................................................................................................................... 9
3.3. CORRESPONDENCE ............................................................................................................... 9
3.4. EXPLANATIONS AND CHANGES OF THE CONTENT OF THE TENDER ........................... 10
3.5. RISK OF NOT MEETING TENDER REQUIREMENTS .......................................................... 10
3.6. CONTRACTUAL CONDITIONS .............................................................................................. 10
3.7. SUBCONTRACTING ............................................................................................................... 10
3.8. PRICE CALCULATION ............................................................................................................ 10
3.9. PAYMENT TERMS IN CONNECTION WITH THIS CONTRACT ........................................... 11
3.10. CONTENT OF THE BID .......................................................................................................... 12
4. EVALUATION AND AWARD............................................................................................................... 14
4.1. EVALUATION STEPS ............................................................................................................. 14
4.2. EXCLUSION CRITERIA .......................................................................................................... 14
4.3. AWARD CRITERIA .................................................................................................................. 14
5. TECHNICAL SPECIFICATION ........................................................................................................... 17
5.1. AIM OF THE FEED .................................................................................................................. 17
5.2. SCOPE OF WORK .................................................................................................................. 17
5.3. DOCUMENTATION AVAILABLE............................................................................................. 26
6. LIABILITIES & LIQUIDATED DAMAGES ........................................................................................... 31
6.1. EXECUTION TIME .................................................................................................................. 31
6.2. TIC ........................................................................................................................................... 31
6.3. ENGINEERING QUALITY ....................................................................................................... 31
6.4. AGGREGATE LIQUIDATED DAMAGES ................................................................................ 32
7. ANNEXES ............................................................................................................................................ 33
7.1. DEVIATION/EXCLUSION LIST FORMAT ............................................................................... 34
7.2. TECHNICAL QUERY TEMPLATE........................................................................................... 35
7.3. EXCLUSION CRITERIA FORM............................................................................................... 36
7.4. PRICE BREAKDOWN AND DETAILED ENGINEERING EFFORT FORMS .......................... 38
7.5. DOCUMENTATION AVAILABLE TO CARRY OUT FEED PROPOSAL................................. 42
7.6. CONTRÔLE DES ACHATS DE BIENS ET DE SERVICES – 2DQE011-QESG .................... 43

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7.7. NORME POUR LA PASSATION DE COMMANDES/CONTRATS D’ACQUISITION

DE BIENS ET SERVICES – NORME 1CDR03 ....................................................................... 44
7.8. COORDINATION PROCEDURE (FRP-IDM-DPY-001) .......................................................... 45
7.9. MATERIAL TAKE OFF ............................................................................................................ 46
7.10. PSI METHODOLOGY FOR AMMONIA ENERGY EFFICIENGY CALCULATION ................. 47
7.11. FERTIAL PROCUREMENT GENERAL TERMS & CONDITIONS FOR SERVICES .............. 48

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FEED ITB

Invitation To Bid (ITB) for:

“The Front End Engineering Design package (FEED) for the revamp of the Kellogg-design
ammonia plants and related facilities at Fertial Annaba and Arzew sites, Algeria”
On ‘LSTK’ basis

To Tender Reference FRP-IDM-FEL-AET-0001

Tecnimont SpA Date of Issue 01.07.2015

Attn. Vittorio Chiovato
Bid Submission date and time 17.07.2015 12:00 PM
[email protected]
Bid Validity 90 days
Mobile +39 335 156
8625 Execution Period 5 MONTHS from ‘ZERO DATE’

1. Fertial Spa, Société des Fertilisants d’Algérie (hereafter referred to as “FERTIAL”) is an

Algerian company, established in august 2005, as result of the partnership between the
Algerian Group ASMIDAL and the Spanish Group VILLAR MIR.
2. FERTIAL operates two (02) 1000 TPD Kellogg-design ammonia plants at their two fertilizer
facilities, in Annaba and Arzew, Algeria.
3. FERTIAL intends to select an eligible contractor for performing the Frond End Engineering
Design Package (hereafter referred to as “FEED”) for the revamp of these Two (02) Kellogg
ammonia plants and related facilities located at Annaba and Arzew Sites.
4. Prequalified bidders shall read carefully this ITB and related documentation that is available
for downloading following the instructions given in Annex 7.5 of this document.
5. Award will be conducted through the criteria described in Chapter 5 of this ITB and in
accordance with FERTIAL’s procedure “1CDR 03 – Norme pour la passation de
commandes/contrats d’acquisition de Biens et Services”, see Annex 7.7.
6. The BID, in French or English Language, (original and two (02) copies) should be submitted in
a sealed envelope delivered at the address below by Wednesday 17th July 2015 at 12:00 PM
Annaba, Algeria, local time. The envelope should be clearly marked as follow:

FERTIAL SPA – Route des Salines – BP 3088 ANNABA

ATTN : Directeur d’Approvisionnements et de la Logistique

Avis d’appel d’offre restreinte
Nº : AO / FRP-IDM-FEL-AET-0001

(À NE PAS OUVRIR)

7. FERTIAL will reject late bids.

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1. DEFINITIONS
The following expressions shall have the meaning specified by the respective items wherever
used in this document, unless repugnant to the context or meaning thereof.
- ‘FERTIAL’ shall mean Fertial Spa, Société des Fertilisants d’Algérie.
- “OWNER” shall mean FERTIAL and the legal successors in title to this entity
- ‘PROJECT’ shall mean the revamp of the two (02) FERTIAL Kellogg-Design Ammonia Plants
and related facilities located at Annaba and Arzew, Algeria.
- ‘ITB/TENDER’ shall mean Invitation to Bid.
- ‘KBR’ shall mean KBR Technologies, Inc, a licensor, engineering and technology services
provider participating at the
- ‘PLANT’ shall mean OWNER’s Ammonia Kellogg-design Unit
- ‘FACILITIES’ shall mean any related or auxiliary systems and/or equipment facilitating SITE
activity and in particular the Ammonia Units Process, from outside the battery limits:
o Steam generation and distribution
o Electricity generation and distribution
o Sea water intake and distribution
o Closed Cooling water circuits
o Desalinated water generation, storage and distribution
o Demin water generation, storage and distribution
o Condensates recovery and distribution
o Compressed air and nitrogen generation and distribution
o Ammonia Storage and Loading facilities
o SITE Safety systems
- ‘TPD’ shall mean tons of ammonia production per day at full charge of one (01) of the ammonia
units.
- ‘MT’ shall mean Metric Ton.
- ‘GJ’ shall mean Giga-Joule of primary energy consumed in ammonia production, expressed
as Low Heating Value, and calculated according to PSI Methodology, Annex 7.10.
- ‘FEED’ shall mean Front End Engineering Design Services which are the objective of this
tender.
- ‘ICONSA’ shall mean ICONSA, SL, an company providing OSBL engineering services for
OWNER
- ‘EPC’ shall mean Engineering, Procurement, and Construction Services.
- ‘FEED BIDDER’ shall mean any party bidding for the FEED Contract
- ‘FEED CONTRACTOR’ shall mean the party awarded with the FEED Contract
- ‘EPC BIDDER’ shall mean any party bidding for the EPC Contract
- “EPC CONTRACTOR” shall mean the party awarded with the EPC Contract.

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- ‘EPC SUBCONTRACTOR’ shall mean one who takes a portion of a contract from the principal
contractor or from another subcontractor
- ‘ZERO DATE’ shall mean the date of issue of the Letter of Intention submitted by OWNER for
awarding the FEED CONTRACT to the selected EPC BIDDER
- “ISBL” shall mean inside battery limits with reference to the ammonia process
- “OSBL” shall mean outside battery limits with reference to the ammonia process
- “BED” shall mean ISBL Basic Engineering Design Package developed by KBR Technologies
- ‘EDP’ shall mean Engineering Design Package
- “TIC” shall mean Total Installed Cost
- “LSTK” shall mean Lump Sum Turn Key
- “MTO” shall mean material take-off list, with quantities and types of material indicated on it.
- “LLI” shall mean Long Lead Items
- “NDA” shall mean Non-disclosure agreement (NDA), also known as a Confidentiality
agreement (CA)
- “FERTIAL Director” shall mean the person within FERTIAL in charge of this project
- “PEQ” shall mean Proprietary Equipment supplied directly to FERTIAL by KBR
- “PMC” shall mean Project Management Consultant
- ‘SCOPE OF WORK’ shall mean all services to be executed to fulfilled what it is indicated under
Section 5.2
- ‘ARH’ shall mean “Agence Nationale de Contrôle et de Régulation des Activités dans le
Domaine des Hydrocarbures”, also known also as “Autorité de Régulation des Hydrocarbures”
is the Algerian Goverment entity in charge of Project Autorisation in Oil&Gas and
Petrochemical sector in Algeria.
-‘PRICE’ shall mean the LSTK Price of the FEED contract
-‘OFFSHORE Portion’ shall mean the part of the services and/or goods performed outside
Algeria
-‘ONSHORE Portion’ shall mean the part of the services and/or goods performed inside Algeria
-‘MONTH’ shall mean a period of thirty (30) calendar days.
-‘DAY’ shall mean a calendar day.
-‘WORKING DAY’ shall mean each day from Sunday to Thursday, excluding official holidays.
-‘BEA’ shall mean Banque Exterieur d’Algérie
-‘IBS’ shall mean Impot sur les Biens et Services, payable by FEED Contractor for all services
performed in Algeria or Abroad. Engineering services performed abroad in a country with a
‘Treaty for the avoidance of Double Taxation’ with Algeria are eligible to be exempted of IBS.
-‘OEM’ shall mean Original Equipment Manufacturer.
-‘KOM’ shall mean kick-off meeting.

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2. INTRODUCTION TO THE PROJECT

2.1. DEFINITION AND OBJECTIVES OF THE PROJECT

The PROJECT consists in the revamp of the two (02) 1000 TPD Ammonia PLANTS, Kellogg-
design, at Annaba and Arzew SITES by means of the following services: providing engineering
services in all branches, providing new equipment, revamping old equipment and providing
construction services for such modifications and start-up (including demolition of equipment to be
out of service after the revamping of the UNITs).
The scope of the PROJECT is well defined in the Basic Engineering Design Package (BED)
developed by KBR, for ISBL activities, and in the different Engineering Design Packages (EDP)
specifically developed for each of the OSBL activities.
The main objectives of the revamp for both Arzew and Annaba PLANTS are:
- To increase ammonia production capacity from 1000 TPD to 1500 TPD year-round at both
PLANTS, as indicated in the BED.
- To reduce the specific energy consumption of each PLANT from 41.3 GJ/MT to 32.6
GJ/MT, as indicated in the BED.
- To maximize energy integration with related FACILITIES and within the SITE.
- To enhance the overall PLANT safety and reliability.

2.2. SCOPE OF THE PROJECT

The two (02) Kellogg Ammonia PLANTS at Annaba and Arzew SITES are almost identical, and
from the basic engineering point of view, the revamp solutions developed for both PLANTS are
the same, but for very few minor differences.
The overall scope of the PROJECT for both SITES includes:
- Revamp of the ISBL Ammonia PLANTS
- Upgrade of ammonia-related FACILITIES (Utilities and Offs-sites)
- New flare systems for the back-end of the ammonia PLANTS
- Installation of concrete-wall type double containment for the 3 existing ammonia storage
tanks (two (2) located at Arzew, one (1) located at Annaba)
- In addition, within Arzew’s scope, two (02) new ammonia pipelines & two (02) new
ammonia-loading arms are needed.
- Finally, in Annaba, a major modification of the existing aerial ammonia pipeline from SITE
to Annaba Port is also required: around 2 km are to be dismantled and replaced by new
underground piping.

2.3. BACKGROUND OF THE PROJECT

In June 2014, KBR finalized the feasibility report: “Ammonia Plants Revamp Feasibility Study
Report (1500 MTPD)”. KBR’s study results confirmed that the above objectives were achievable.
In September 2014, FERTIAL awarded KBR with the contract for the execution of the License &
Basic Engineering Design Package (BED) for the ISBL revamp activities. BED has been finalized
and approved by FERTIAL in Jun 2015.

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In October 2014, KBR, in behalf of FERTIAL, sent a letter for Expression Of Interest (EOI) with
the intention of pre-qualifying interested and qualified EPC contractors who can execute the EPC
phase of the PROJECT. Further to this letter, a site visit was organized in mid-November 2014
and a clarification meeting was held in KBR’s London offices at the end of November 2014.
As a result of this pre-qualification, a first restricted ITB was issued on 11th December 2014 to
request a formal proposal for a pre-EPC phase (Phase 1). The scope of this phase was intended
to enable at least two (02) EPC contractors to provide FERTIAL with EPC proposals on LSTK
basis and without going through a more conventional FEED phase.
At the closing submission date, three (03) bids were received. Bids were evaluated and
clarification meetings were held with two (02) contractors. Finally, in February 2015, two (02)
reviewed bids were received.
After careful evaluation, this tender was abandoned as OWNER considered that the aim of the
tender was not totally fulfilled in terms of bids homogeneity, proposed scope, execution strategy,
deliverables and price.

2.4. PROJECT EXECUTION STRATEGY

OWNER desires now to execute a FEED phase with only one (01) prequalified contractor prior to
enter into EPC bidding phase. The deliverables of this FEED shall allow qualified EPC contractors
to bid for EPC phase. The FEED/EPC will be divided into different execution packages: ISBL
Arzew SITE, ISBL Annaba SITE, Ammonia Storage Tank, Ammonia Pipeline… (See Section 5.2)
Whenever the level of definition of an execution package, after FEED completion, is accurate
enough, LSTK EPC basis will be used. For execution packages not totally defined, other models
will be agreed with the awarded EPC contractor.

Based on the above execution strategy, the expected dates for FEED and EPC are as follows:

Milestone Date Status

FEED ITB emission 01.07.2015 Confirmed

FEED Bid Submission 17.07.2015 12:00 Confirmed

FEED Award (ZERO DATE) 24.07.2015 12:00 Confirmed

FEED Completion 21.12.2015 12:00 Intended

ITB to EPC award 15.01.2015 Intended

EPC Award 15.03.2015 Intended

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3. INFORMATION TO BID
3.1. AIM OF THIS TENDER

The aim of this TENDER is to award the FEED Contract for the PROJECT according to the
SCOPE OF WORK, other technical specifications and commercial terms defined in this
document.
FERTIAL requires a LSTK BID for the execution of the FEED for the PROJECT.

3.2. PARTICIPATION

Participation in this TENDER is restricted to prequalified contractors resulting from previous

TENDER (See Section 2.3).
Each FEED BIDDER shall submit only one BID.
Each FEED BIDDER shall bear any and all costs connected with preparation and submission of
its BID.
Acknowledgement of correct reception of this ITB is required by letter/fax/e-mail within the forty-
eight hours (48h) from ITB issue, together with a statement of expression of interest whether the
FEED BIDDER intends to submit a bid or not.

3.3. CORRESPONDENCE

All correspondence in respect of this TENDER should be made in English quoting ITB reference
number. Correspondence should be addressed in duplicate to:

Mr. Gonzalo Fernández Ozalla, Directeur du Projet Ammoniac

Fertial Spa
B.P.40 – Arzew 31200, ALGERIA
E-mail: [email protected]
Tel: +213.770.12.88.60
Fax: +213.41.792.437

Mr. Farid Mizi, Directeur Approvisionement et Logistique Usine d’Annaba

Fertial Spa
Route des Salines, B.P.3088
23000 Annaba, ALGERIA
E-mail: [email protected]
Tel : +213.770.89.22.69
Fax : +213.38.53.93.03

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3.4. EXPLANATIONS AND CHANGES OF THE CONTENT OF THE TENDER

Any FEED BIDDER can address OWNER in Writing (email accepted) for an explanation of the
content of the TENDER. OWNER will do their best to immediately provide explanations, unless
the request for explanation is received less than five (05) working days before BID submission
date.
OWNER will pass the content of explanations at the same time to all FEED BIDDERS to whom
this ITB has been delivered.
If particularly justified, OWNER may, at any time before the BID submission date, modify the
content of the TENDER documentation. Modifications made will be immediately communicated
by FERTIAL to all FEED BIDDERS to whom this ITB has been delivered.
OWNER may prolong the BID submission date if, as a result of a modification of the TENDER
documentation, additional time for changing BIDs is required. FERTIAL will immediately inform
all FEED BIDDERS about the prolongation of the BID submission date.

3.5. RISK OF NOT MEETING TENDER REQUIREMENTS

While preparing its BID, the FEED BIDDER should read carefully and acquaint itself with the
content of all documents constituting this TENDER. The FEED BIDDER is solely responsible for
the risk of not meeting the requirements of TENDER.
TENDER documentation should be read together with possible explanations and changes made
by OWNER according to Section 4.3 of this ITB.

3.6. CONTRACTUAL CONDITIONS

The FEED BIDDER should bear in mind the specific provisions reflected in this ITB but also the
general provisions reflected both in the FERTIAL’s procedure “Contrôle Des Achats De Biens Et
De Services – 2dqe011-Qesg” (Annex 7.6) and in FERTIAL’s Procurement General Terms and
Conditions for Services (Annex 7.11). These specify the rights and obligations of the FEED
CONTRACTOR, particularly those on payments, performance of the contract, confidentiality,
quality, HSE and checks and audits.

3.7. SUBCONTRACTING

Subcontracting is not permitted in this TENDER unless commonly agreed between FERTIAL and
the selected FEED CONTRACTOR. The contractor will in any case retain full liability towards
FERTIAL for performance of the contract as a whole.
If FEED BIDDERS intend to subcontract a portion of the SCOPE OF WORK for the FEED
contract, this should be clearly indicated in their BID. In this case, FEED BIDDERS are also
required to identify all envisaged subcontractors.

3.8. PRICE CALCULATION

The PRICE provided in the BID, for taxation purposes, shall be split into two portions, OFFSHORE
engineering services and ONSHORE site services.
The OFFSHORE portion will include all the engineering services developed outside Algeria and
it may be expressed alternatively in Euros (EUR) or American Dollars (USD). FEED Contractor
shall also communicate if the country of invoicing has a valid ‘Treaty for the avoidance of Double
Taxation’. If this is not the case, OFFSHORE PRICE shall include IBS (24% as per day of ITB).

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The ONSHORE portion will include all services related to site visits (3D Laser Scanning activities,
assessment on rotating equipment by OEM’s…), meetings at OWNER’s office and any other
services executed in Algeria for the execution of the FEED Contract. ONSHORE portion may be
expressed alternatively in Euros (EUR), American Dollars (USD) or Algerian Dinars (DA).
ONSHORE price shall include IBS.
Only for evaluation purposes, FERTIAL will convert all PRICES into Algerian Dinars (DA) using
the average exchange rates fixed by the Banque Exterieur d’Algérie (BEA) at the BID submission
date.
The PRICE, including both OFFSHORE and ONSHORE portions, has to include all the
requirements of the TENDER and all the costs the FEED contractor will bear in connection with
proper execution of the SCOPE OF WORK.
PRICE must be firm and subject to no escalation whatsoever for the entire CONTRACT period
including all duties, taxes, levies and other charges. Any tax will be shown separately.

3.9. PAYMENT TERMS IN CONNECTION WITH THIS CONTRACT

All payments in connection with FEED contract shall be settled, 90 days from invoice date.
Invoice milestones shall be as follow:
• 10% of PRICE after celebration of successful kick-off meeting
• 10% of PRICE after:
- Celebration of successful 1st design review meeting,
- and not before 2 months from ZERO DATE.
• 10% of PRICE after:
- Celebration of successful 2nd design review meeting,
- and not before 3 months from ZERO DATE.
• 10% of PRICE after:
- Celebration of successful 3rd design review meeting,
- and not before 4 months from ZERO DATE.
• 35% of PRICE after:
- Submission of all FEED deliverables, including all documents needed by OWNER
to develop EPC ITB/TENDER and with the exception of the FEED Contractor’s
EPC BID,
- and celebration of successful final review meeting.
• 25% of PRICE after:
- Submission of a complete and eligible EPC BID by FEED Contractor, in response
to a formal ITB for EPC award,
- and celebration of successful EPC BID clarification meeting with FEED Contractor.
Completeness and eligibility of the EPC BID by FEED Contractor will be evaluated both technical
and price wise and as in comparison with FEED deliverables, TENDER documentation and
specifications for EPC and international best practices and standards for EPC services.

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Sole condition for last payment shall be that FEED Contractor submits an EPC proposal to
OWNER based on FEED deliverables.
Last payment will be executed immediately after final FEED deliverables submission if OWNER
decides to abandon the project.
Last payment will be executed in any case after six (06) MONTHS from final FEED deliverables
submission if OWNER has failed to launch an ITB for EPC TENDER.

3.10. CONTENT OF THE BID

The BID must be composed of:

Part A: Commercial Offer
Part B: Technical Offer

• The Commercial Offer shall include:

- PRICE value, currency and structure according to Section 3.8 FEED BIDDER shall also
include summary tables according to forms in Annex 7.4. showing price breakdown and
details of the engineering and services efforts, both for OFFSHORE and ONSHORE
portions.
- Confirmation of payment terms.
- Confirmation of guarantees, liabilities and liquidated damages

• The Technical Offer must cover all aspects and tasks required in the SCOPE OF WORK
(Chapter 5.2.) and provide all the information needed to apply the award criteria (See Section
3.4). Offers deviating from the requirements or not covering all requirements may be excluded
on the basis of non-conformity with the TENDER SCOPE OF WORK and will not be evaluated.
The technical proposal shall include:
- Confirmation of the SCOPE OF WORK, with list of assumptions.
- FEED Execution Strategy.
- FEED Detailed Schedule with basis and assumptions.
- List of Deliverables.
- Reference list/Evidences of experience with ammonia process, according to Award
Criteria (see Section 4.3).
- Reference list/Evidences of experience in Algeria, according to Award Criteria (see
Section 5.3).
- Organization Chart and CV’s for the key personnel that will be responsible for the FEED
Contract.
- TIC estimate plan.
- LLIs procurement plan.
- List of Deviations/Exceptions/Exclusions.
Any deviation or exception from the TECHNICAL SPECIFICATION or from any other
requirement for the execution of the FEED Contract shall be included in a list of

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deviations/exceptions (use form in Annex 7.1). Deviations or exceptions that are not indicated
in the list will not be considered.
In any case, the FEED Contractor shall perform the services according to good international
engineering practice and at the times set forth in the Time Schedule.
In any case, the FEED BIDDER shall assess the economic impact as well as the time schedule
impact of the deviation/exception.

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4. EVALUATION AND AWARD

4.1. EVALUATION STEPS

The evaluation is based on the information provided in the submitted BID. The evaluation will be
carried out in two (02) steps:
(1) Verification of non-exclusion of FEED BIDDERS on the basis of the exclusion criteria (See
Section 4.2)
(2) Evaluation of BIDs on the basis of the award criteria (See Section 4.3)
Only BIDs meeting the requirements on one step will pass on to the next step.

4.2. EXCLUSION CRITERIA

All BIDDERS shall provide a declaration on their honor (See Annex 7.3), duly signed and dated
by an authorized representative, stating that they are not in one of the situations of exclusion
listed in that Annex.

4.3. AWARD CRITERIA

BIDs shall be evaluated by FERTIAL according to the following criteria:

Criterion Name Weight

Price 40%

Quality of the Technical Offer 30%

Ammonia Project Experience 20%

Experience in Algeria 10%

• Score of the “Price” criterion will be conducted according to the formula:

Price of the cheapest eligible BID
SPRC = ×40
Price of the evaluated BID

• Evaluation of the “Quality of the Technical Offer” criterion will be made by FERTIAL’s
PROJECT team. The object of this evaluation will be:
- Adequacy of the Technical proposal to the requirements under this FEED.
Assessment of the Deliverable List indicated in 5.2.4 and amendment report, if
needed, in order to meet good quality in FEED execution and TIC estimate as per
indicated in 5.2.2. Maximum score of 30 points.
- Quality, detail and consistency of the TIC estimate as indicated in 5.2.2. Maximum
score 20 points.
- Quality, detail and consistency of the proposed Execution Schedule. Maximum
score 10 points.

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- Quality of the Procurement Plan in connection with LLIs purchase orders

preparation, as per described in 5.2.3. Maximum score 10 points.
- Technical skills and experience of personnel assigned to the proposed
Organization Chart. Maximum score 30 points

• Score of the “Quality of the Technical Offer” criterion will be conducted according to the
formula:
Quality Score of the evaluated Technical Offer
SQAL = ×30
Maximum Quality Score

• Evaluation of the “Ammonia Project Experience” criterion will be made in the following
way:
- For each executed FEED contract for an ammonia revamp project in the last five
(05) years, the BID will receive 10 points. Maximum score 40 points.
- For each executed EPC contract for an ammonia revamp project dated between
the last five (5) to ten (10) years, the BID will receive 10 points. Maximum score
30 points.
- For each executed EPC contract for a grass-root ammonia project in the last ten
(10) years, the BID will receive 10 points. Maximum score 30 points.
• Score of the “Ammonia Project Experience” criterion will be conducted according to the
formula:
Ammonia Experience Score of the evaluated BID
SNH3 = ×20
BID with largest score

• Evaluation of the “Experience in Algeria” criterion will be made in the following way:
- For each executed EPC contract for the Oil&Gas Downstream sector in Algeria in
the last fifteen (15) years, the BID will receive 10 points. Maximum score 50 points.
- For each executed EPC contract for Oil&Gas Upstream & Midstream sectors in
Algeria in the last fifteen (15) years, the BID will receive 5 points. Maximum score
25 points.
- For each executed FEED contract for the Overall Oil&Gas sectors outside Algeria
in the last ten (10) years, the BID will receive 5 points. Maximum 25 points.
• Score of the “Experience in Algeria” criterion will be conducted according to the formula:
Experience in Algeria Score of the evaluated BID
SALG = ×10
BID with largest score

Evaluation of each BID shall be calculated according to the formula:

SBID = SPRC + SQAL + SNH3 + SALG

where:

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SBID is the total score of the BID evaluation

SPRC is the score of the “Price” criterion
SQAL is the score of the “Quality of the Technical Offer” criterion
SNH3 is the score of the “Ammonia Project Experience” criterion
SALG is the score of the “Experience in Algeria” criterion

FERTIAL will choose the BID with the highest score from among eligible BIDs submitted by FEED
BIDDERS that are not subjected to exclusion.
In the case two or more BIDs present the same score, FERTIAL shall choose from these BIDs
the BID with the lowest PRICE.

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5. TECHNICAL SPECIFICATION
5.1. AIM OF THE FEED

The main goal of the FEED is to further define and execute the PROJECT, so as to allow OWNER,
after completion of the FEED, to:
- Decide on PROJECT execution based on accurate TIC estimate and schedule updates.
- Be able to obtain EPC BIDs from different qualified and interested EPC contractors
including FEED contractor.
- Be ready to immediately place LLIs purchase orders.
The FEED shall integrate, consolidate and therefore endorse the BED and other OSBL EDP (see
Section 5.2) with the existing PLANT resulting in a consistent integrated FEED as an overall
PROJECT. During the FEED execution, the deliverables defined in Section 5.2.4. should be
prepared.

5.2. SCOPE OF WORK

Main activities needed to match these objectives are:

• To further develop and consolidate the BED for ISBL revamp activities for both PLANTS.
• To endorse and complete OSBL execution packages where EDPs are already developed
at detailed engineering level.
• To perform additional engineering services for OSBL execution packages where EDPs
are already developed at basic engineering level.
• To develop necessary engineering activities for OSBL execution packages where only
conceptual design has been developed.
• To conduct all necessary site surveys and constructability studies for all ISBL and OSBL
packages.
• To elaborate, in coordination with FERTIAL’s PROJECT team, a TIC estimate, based on
detailed breakdown budget, for successful execution of the PROJECT, under EPC
execution strategy.
• To prepare LLI’s purchase orders whether delivery time exceeds 12 months.
• To define a detailed project schedule for PROJECT execution.
• To support FERTIAL’s PROJECT team in the elaboration of the subsequent EPC
TENDER. More specifically, to provide all engineering deliverables needed to develop an
EPC TENDER according to international standards in the petrochemical industry.
• To receive from FEED CONTRACTOR, once FERTIAL has issued a formal ITB for EPC
award, a valid EPC BID for the execution of the EPC Contract.

5.2.1. FEED Execution Packages

Taking into consideration the different level of current engineering development of ISBL and
OSBL activities included in the PROJECT and also considering future EPC execution strategy,
FEED scope is divided into the following execution packages:

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• Arzew Kellogg ISBL (ARZ-ISBL)

This package consists of the modification, revamp of existing equipment and the installation of
new equipment in order to achieve the production, energy consumption, safety and reliability
revamp goals of the Arzew PLANT. The scope is well defined and described in the Arzew
PLANT BED developed by KBR.1
• Annaba Kellogg ISBL (ANN-ISBL)
This package consists of the modification, revamp of existing equipment and the installation of
new equipment in order to achieve the production, energy consumption, safety and reliability
revamp goals of the Annaba PLANT. The scope is well defined and described in the Annaba
PLANT BED developed by KBR. 2
• Double containment for Ammonia Storage Tank at Arzew Port (ARZ-ST-PORT)
This package consists of the erection of a concrete containment wall around the existing
ammonia storage tank located at the Port of Arzew, according to the basic and detailed
engineering design packages developed by ICONSA.
• Double containment for Ammonia Storage Tank at Arzew Site (ARZ-ST-SITE)
This package consists of the erection of a concrete containment wall around the existing
ammonia storage tank located at Arzew SITE, according to the basic and detailed engineering
design packages developed by ICONSA.
• Double containment for Ammonia Storage Tank at Annaba Site (ANN-ST-SITE)
This package consists of the erection of a concrete containment wall around the existing
ammonia storage tank located at Annaba SITE, according to the basic and detailed
engineering design packages developed by ICONSA.
• Annaba Site Ammonia Storage Tank to Port underground ammonia pipeline (ANN-PLN-
PORT)
This package consists of the erection of a new 2 km underground ammonia and UAN pipelines
from the Annaba SITE tank to Port loading facilities, according to the basic and detailed
engineering design packages developed by ICONSA. Scope shall also include dismantling of
the existing aerial pipelines and related supporting structure.
• Arzew Site Ammonia Storage Tank to Port Ammonia Storage Tank connecting ammonia
pipeline (ARZ-PLN-PORT)
This package consists of the erection of a new ammonia pipeline from the Arzew SITE
Ammonia Storage Tank to Port Ammonia Storage Tank in order to improve transfer capacity
between tanks and flexibility for ammonia loading. The scope is well defined and described in
the basic engineering design package developed by ICONSA.
• Arzew Site Ammonia Storage Tank to Betihoua Port ammonia pipeline and new loading
arms (ARZ-PLN-BET)
This package consists of the erection of a new ammonia pipeline and related new loading
arms. Pipeline will run from the Arzew SITE Ammonia Storage Tank to Betihoua Port. This

1 The scope of the Arzew BED by KBR also includes all activities related to primary reformer revamp:
radiation Section re-harp, new transfer line, burners replacement, BMS upgrade and convection Section
revamp.
2 The scope of the Annaba BED by KBR also includes all activities related to primary reformer revamp:

radiation Section re-harp, new transfer line, burners replacement, BMS upgrade and convection Section
revamp.

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new loading facility will allow OWNER to evacuate additional ammonia production as existing
loading capacity is already saturated. The scope is well defined and described in the basic
engineering design package developed by ICONSA.
• Leakage Early Detection and Isolation system for Arzew Critical Ammonia Pipelines
(ARZ-PLN-LKG)
All critical ammonia pipelines in Arzew will be equipped with state-of-the-art leakage detection
system and automatic mitigation by means of isolation valves. FEED CONTRACTOR shall
have available the basic engineering design package developed by ICONSA that could be
used as kick-off basis for further development.
• Leakage Early Detection and Isolation system for Annaba Critical Ammonia Pipelines
(ANN-PLN-LKG)
All critical ammonia pipelines in A will be equipped with state-of-the-art leakage detection
system and automatic mitigation by means of isolation valves. FEED CONTRACTOR shall
have available the basic engineering design package developed by ICONSA that could be
used as basis kick-off for further development.
• Annaba Fire and Gas System Upgrade (ANN-F&G-UPG)
Ammonia ISBL existing Fire and Gas system at Annaba PLANT shall be assessed and
improved taking into account the Design Basis developed by ICONSA and best practices in
ammonia industry.
• Arzew Fire and Gas System Upgrade (ARZ-F&G-UPG)
Ammonia ISBL existing Fire and Gas system at Arzew PLANT shall be assessed and improved
taking into account the Design Basis developed by ICONSA and best practices in ammonia
industry.
• Arzew Kellogg Ammonia Back-End Flare system (ARZ-FLR)
OWNER’s PLANTS lack of flare systems for back-end of the PLANT (synthesis and
refrigeration Sections) which implies a risk of ammonia emissions during upset conditions.
This package consists of the erection of new flare and knock-out drum system collecting all
the pressure relief valves and other relevant streams coming from the back-end of Arzew
PLANT, according to best practices in ammonia and petrochemical industries.
The flare design in Arzew shall take also into consideration and integrate the back-end
Chemico Unit Flare system.
• Annaba Kellogg Ammoniac Back-End Flare system (ANN-FLR)
OWNER’s PLANTS lack of flare systems for back-end of the PLANT (synthesis and
refrigeration Sections) which implies a risk of ammonia emissions during upset conditions. This
package consists of the erection of new flare system collecting all the pressure relief valves
and other relevant streams coming from the back-end of Annaba PLANT, according to best
practices in ammonia and petrochemical industries.
• Arzew Natural Gas for process feed compression (ARZ-NG-COMP)
Arzew SITE is supplied in Natural Gas, both for process and fuel, from high pressure
distribution network arriving to Arzew’s Industrial Zone. Although the grid is rated for up to 70
bars, supply pressure varies today between 35 and 55 bars. Moreover, with recent
downstream developments in Algerian Oil&Gas and Petrochemical Industries and considering
the declining tendency in Algerian natural gas production, natural gas pressure supply might
be in the bottom side of that fluctuation range.

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FEED Contractor shall address a conceptual and basic design of a new natural gas
recompression unit for process natural gas at Arzew SITE. Suction pressure and other
operating conditions will be fixed during FEED kick-off meeting.
• Arzew utilities upgrade (ARZ-UTL-UPG)
The FEED shall develop the consistency check and integration of all the utilities according to
the new demands indicated in the BED elaborated by KBR. Should the main utilities system
(sea water pumping and cooling system, Desalination Units, Demineralization Units, OSBL
steam generation, Gas Turbine Power generator unit ) capacity not match with the global
needs for the PROJECT, the FEED shall develop the Basic Design for the required utilities
Sections to be modified, furthermore the FEED shall deliver the TIC indicated in Section 5.2.2.
In the case of the OSBL, steam generation demand in Arzew and the new steam import/export
balance indicated in the Basic Engineering for the Revamp of the Chemico Ammonia Unit in
Arzew shall be taken into account.
FEED CONTRACTOR shall be given the conceptual design for all the utilities Section by
FERTIAL and KBR Technologies as Kick-Off design point.
In addition to the above described, a conceptual design for the energy integration of the GTA
(Gas Turbine Generation), by means of heat recovery in GTA exhaust fumes with global
energy needs, will be executed by KBR Technologies. OWNER will submit to FEED
CONTRACTOR this conceptual design during the FEED KOM (see chapter 5.2.5) to be
included and further developed within this FEED.
During the 1ST FEED Review Meeting, special attention will be paid to the proposed design by
FEED CONTRACTOR for the GTA exhaust fumes energy integration, as well as other basic
designs proposed for the rest of the utilities.
• Annaba utilities upgrade (ANN-UTL-UPG)
The FEED shall develop the consistency check and integration of all the utilities according to
the new demands indicated in the BED elaborated by KBR Technologies. Should the main
utilities system (sea water pumping and cooling system, Desalination Units, Demineralization
Units, OSBL steam generation, 2 Steam Turbine Power generator units ) capacity not match
with the global needs for the PROJECT, the FEED shall develop the Basic Design for the
required utilities Sections to be modified, furthermore the FEED shall deliver the TIC indicated
in Section 5.2.2.
FEED CONTRACTOR shall be given the conceptual design for all the utilities Section by
FERTIAL and KBR Technologies as Kick-Off design point.

5.2.2. TIC estimates and EPC basis

Engineering effort during FEED shall allow OWNER after FEED completion, to obtain TIC
estimates within the specified ranges and under below specified EPC basis.
The FEED shall include a very detailed price breakdown of the PROJECT. The FEED
CONTRACTOR will be able to use the Material Take Off (MTOs) attached in Annex 7.9 as
reference, completing it with all the required materials3. The FEED CONTRACTOR shall deliver
a very detailed price breakdown for all the equipment both new, modified and replaced including
the installation price (erection, testing, commissioning and star-up).

3 For the engineering services breakdown, the template in Annex 7.4. could be used

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This price breakdown shall be sufficient for (1) developing the confidence needed to elaborate
the global TIC according to the FEED TIC Class indicated in the table below and (2) adequate
enough to enable the EPC BID comparison process for each package.
The FEED CONTRACTOR shall be responsible for achieving the TIC estimation Class as
indicated in 5.2.2., and shall consider, if necessary, some deliverable in addition to those listed in
5.2.4.

FEED TIC Class (according to EPC BID

FEED Package Current level of engineering definition
AACE4) basis

ARZ-ISBL BED Package by KBR 100% Complete Class 1 (± 5%) LSTK

ANN-ISBL BED Package by KBR 100% Complete Class 1 (± 5%) LSTK

ARZ-ST-PORT EDP Detailed Engineering 100% Complete Class 1 (± 5%) LSTK

ARZ-ST-SITE EDP Detailed Engineering 100% Complete Class 1 (± 5%) LSTK

ANN-ST-SITE EDP Detailed Engineering 100% Complete Class 1 (± 5%) LSTK

ANN-PLN-PORT EDP Detailed Engineering 70% Complete Class 1 (± 5%) LSTK

ARZ-PLN-PORT EDP Basic Engineering 100% complete Class 2 (± 10%) LSTK

ARZ-PLN-BET EDP Basic Engineering 100% complete Class 2 (± 10%) LSTK

ARZ-PLN-LKG Design Basis Class 2 (± 10%) LSTK

ANN-PLN-LKG Design Basis Class 2 (± 10%) LSTK

ARZ-F&G-UPG Design Basis Class 2 (± 10%) LSTK

ANN-F&G-UPG Design Basis Class 2 (± 10%) LSTK

ARZ-FLR Conceptual Design Class 2 (± 10%) LSTK

ANN-FLR Conceptual Design Class 2 (± 10%) LSTK

ARZ-NG-COMP Conceptual Design Class 2 (± 10%) LSTK

ARZ-UTL-UPG Conceptual Design Class 2 (± 10%) LSTK

ANN-UTL-UPG Conceptual Design Class 2 (± 10%) LSTK

The FEED CONTRACTOR shall submit the global TIC for the LSTK EPC PROJECT indicating
the partial TIC for the execution of each package.
5.2.3. LLIs Procurement Plan
The aim of PROJECT Strategy for the LLIs (delivery time equal to or above 12 months CFR
INCOTERMS 2010) is to reduce the duration of the PROJECT by minimizing delays in the
procurement phase. This concept shall be aligned with the detailed schedule to be submitted as
deliverable of the FEED.

4 According to AACE Recommended Practice

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The FEED CONTRACTOR shall identify all LLIs according to the schedule for the PROJECT to
be developed.
The FEED CONTRACTOR shall develop engineering and procurement services for the identified
LLIs up to a level of “Ready for purchase order placement”, closing their binding offers with three
(3) months of validity from the end of the FEED. These binding offers shall be a deliverable of the
FEED CONTRACT according to Section 5.2.4.
5.2.4. Deliverables
The FEED CONTRACTOR shall include, but not be limited to, the following deliverables,
considering any additional document needed to define the TIC according to Section 5.2.2.
The following notation is used in the table:
• FEED/EPC Execution Packages for ARZ-ISBL, ANN-ISBL, ARZ-UTL-UPG, ANN-UTL-
UPG, ARZ-FLR, ANN-FLR, ARZ-NG-COMP, ARZ-F&G-UPG and ANN-F&G-UPG are
noted as (1)
• FEED/EPC Execution Packages for ARZ-ST-PORT, ARZ-ST-SITE and ANN-ST-SITE are
noted as (2)
• FEER/EPC Execution Packages ANN-PLN-PORT, ARZ-PLN-PORT, ARZ-PLN-BET,
ARZ-PLN-LKG and ANN-PLN-LKG are noted as (3)

Discipline Description of activities or Document (1) (2) (3)

General Definition of scope and TIC LSTK according to 5.2.2 X X X
Project Quality Plan X X X
Execution Plan X X X
Monthly Progress Report, Project Control Schedule and X X X
Deliverable List
List of LLI (see Note 1) X
Detailed EPC Project Schedule (see Note 2) X X X
EPC Master Deliverable List X X X
Site Survey X X X
Constructability Study and Report X X X
Plot Plan X X X
MTOs X X X
Report for the consistency check of engineering package (see X X X
Note 3)
Procurement SUB-Contracting and Purchase Orders Plan X X X
Manufacturing and Delivery Plan X X X
Vendor List X X X
Construction Construction sub-contractor Qualification X X X
Constructability Study Report X X X
Process Basis of Design X X
Process Description X X
Heat & Material Balances integrating ISBL and OSBL X
Process Flow Diagrams (PFDs) integrating ISBL and OSBL X
Process Data Sheets X X
Piping & Instrument Diagrams (P&IDs) integrating ISBL and X X
OSBL (indicating the “tie in” for the new pipes, and new, existing,
revamped and removed equipment and instruments) (see Note
4)

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Discipline Description of activities or Document (1) (2) (3)

Equipment List (identifying the new, existing, revamped and X X
removed equipment)
Utilities Summary X X
Catalyst & Chemicals Quantities List X
Battery Limits X X
Material Selection Diagram (for existing pipes and new pipes) X X
Mechanical Basis of Design (Static and Rotating Equipment) X X
New and Revamped Mechanical Data Sheets (see Note 5) X X
New and Revamped Mechanical Equipment Technical X X
Specifications for Purchase (see Note 5)
New and Revamped Mechanical Equipment Technical X X
Evaluation of Proposals(see Note 5)
HVAC design criteria, definition and scope X X
HVAC data sheet and technical specification X X
HSE Fire & Gas design criteria, definition and scope X
Fire & Gas data sheet and technical specification X
Fire & Gas General Lay-out X
Fire Fighting & Safety Equipment & Escape Route Lay-out X
Updating of the F&G P&IDs X
Piping Basis of Design X X
Piping Class Specifications (including wall thickness X X
calculations)
Line List X X
Tie-in List X X
Tie-in Layout. X X
Electrical Basis of Design X X
Updating of the Single Line Diagrams (indicating the “tie in” for X X
the new supplies, and new, existing, revamped and removed
electrical equipment) of the plant.
Electrical Battery Limits X X
Electrical Equipment List (identifying the new, existing, X X
revamped and removed, and the affections to the existing
switchboards and panels)
New and Revamped Electrical Equipment Data Sheets (see X X
Note 5)
New and Revamped Electrical Equipment Specifications (see X X
Note 5) for purchase
New Electrical Equipment Technical Evaluation (see Note 5) X X
Tie-in Layout. X X
I&C Basis of Design X X
Instruments Technical Specification X X
Control Valves Technical Specification X X
Control Valves Technical Evaluation (see Note 5) X X
Instrument List (identifying the new, existing, revamped and X X
removed)
Control System Architecture (indicating the “tie in” for the new X X
elements, and new, existing, revamped and removed equipment
and instruments).
Technical Specification for the expansion of the Control System X X

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Discipline Description of activities or Document (1) (2) (3)

F&G System Architecture (indicating the “tie in” for the new X X
elements, and new, existing, revamped and removed equipment
and instruments).
Technical Specification for the expansion of the F&G System X X
Updating of the Control Room and Rack Room Layout X
Civil Basis of Design (Civil/Structural) X X
Specification for General Civil and Reinforced Concrete Works X X
Specification for Structural Steel Works (including painting and X X
Fire Proofing)
Specifications for Architectural Works X X
Supply Specification for Structural Steel Supply X X
Site Survey for the consistency check X X X
Analysis of the existing structure for the existing loading X X X
Analysis of the existing foundation suitability for existing structure X X X
and existing loading
3D Laser Scanning and 3D Model of existing PLANTs X
Soil Survey Assessment Report (Note 6) X X X
Civil detailed engineering (delivered by others) consistency X
check

All documentation (documents and drawings) shall be delivered in PDF and, when required, in
source format (WORD, EXCEL and AUTOCAD).

Note 1 Equipment with delivery time equal to or above 12 months.

Note 2 Project Schedule Detailed up to level 3, including engineering, procurement,
construction, permitting, pre-commissioning, commissioning, test, startup and
acceptance. The Project Schedule shall be delivered in PRIMAVERA P6
(Professional Project Management software from Oracle) and shall include all the
resources applied in each task.
Note 3 This report applies to the consistency check of the EDP provided by others as per
indicated in chapter 5.2.2. This report should be issued before 2.5 months after
awarding the FEED CONTRACT.
Note 4 The FEED CONTRACTOR shall update the P&IDs and PFDs with the conclusions
of the HAZID, HAZOP and SIL studies, that will be elaborated in-between July to
August 2015.
Note 5 The FEED CONTRATOR shall prepare this documentation, and request formal
quotations, for every needed item so as to achieve the level of accuracy indicated in
the TIC (see chapter 5.2.2). This requirement is mandatory in any case for the LLIs
and the whole Primary Reformer, both radiant and convection Section (reforming
tubes, burners, convection coils, and refractory).
Note 6 The FEED CONTRACTOR shall evaluate existing geotechnical reports of the
PLANTs and FACILITIES to propose the FEED Layout for the Revamping. As
conclusion of these soil survey reports, FEED CONTRACTOR will define the
foundation typology of new equipment and modifications to the existing foundations
if needed.

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5.2.5. FEED Coordination and Review during execution

The FEED CONTRACTOR shall have five (05) months for the execution of the FEED and the
presentation of TIC estimation.
During the development of the FEED, the FEED CONTRACTOR shall be in constant coordination
with the OWNER team in order to adapt the project to its expectations and needs.
The FEED CONTRACTOR shall take into account the procedure of coordination and
communication indicated in document FRP-IDM-DPY-001 attached in Annex 7.8.
The FEED CONTRACTOR shall arrange as many site visits as needed for both Annaba and
Arzew sites to complete successfully the FEED, including the Constructability Site Visits.

During the execution of the FEED, at least the following review meeting will be held:
-Two (2) Kick-Off Meetings (KOM). The FEED CONTRACTOR will organize the KOM within 4
weeks after ZERO DATE in both Annaba and Arzew sites at the beginning of FEED activities in
order to define clearly the SCOPE OF WORK, paying special attention to the integration of the
FACILITIES. As described in ARZ-UTL-UPG (see 5.2.1), FERTIAL will submit and explain to
FEED CONTRACTOR during these meetings the conceptual design for the GTA integration done
by KBR Technologies.
All technical queries and suggestions considered as relevant, especially those related to the
SCOPE OF WORK will be submitted no later than one (1) month after the KOM. Technical queries
shall be done in writing form using the Technical Query template attached in Annex 7.2.
- Three (3) Design Review Meetings: FEED CONTRACTOR and OWER after the KOM shall
organize, monthly basis, a review meetings in FEED CONTRACTOR offices.
During the 1ST Review Meeting FEED CONTRACTOR shall submit the Proposed Basic
Conceptual Designs as described in ARZ-UTL-UPG and ANN-UTL-UPG (see 5.2.1).
After two (2) weeks from the conclusion of this 1ST Review Meeting, FERTIAL will take a decision
about the proposed designs by FEED CONTRACTOR, giving in writing format FERTIAL
agreement if accepted the different designs and any consideration FERTIAL should have for the
development of the FEED for the package ARZ-UTL-UPG (see 5.2.1).
- Final Review Meeting. FEED CONTRACTOR shall organize the final review meeting in OWNER
offices once all FEED Deliverables and no later than five (5) months after ZERO DATE.

5.2.6. ASSUMPTIONS TO BE CONSIDERED FOR TIC ESTIMATE AND PROJECT

SCHEDULE
FEED CONTRACTOR shall assume the following guidelines for the EPC CONTRACT phase:
The EPC PROJECT shall be executed to minimize the shutdown time of existing PLANTs. The
overall shutdown for each PLANT expected by OWNER is forty (40) days. The shutdown for the
PLANTS in Annaba and Arzew will not be overlapped between them, being always at least one
PLANT producing ammonia.
Thus, the EPC CONTRACTOR shall consider, in his construction plan, to execute a substantial
portion of the scope during pre-shutdown while the plant is operating at its full capacity. These
preconstruction site works shall be executed under strict HSE procedures approved by FERTIAL
The EPC CONTRACTOR shall thoroughly fulfill, and be responsible for, the permitting procedure
required during the engineering, procurement, preconstruction, construction, commissioning and

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starting up of PLANTS. The permitting procedure shall contain permits required by official entities
as well as by OWNER. The EPC CONTRACTOR shall check the permitting documentation of the
SUBCONTRACTORS required by the official body.
In addition, the EPC CONTRACTOR will be the responsible for the QA/QC during all stages of
the project.
The EPC CONTRACT shall have the following payment policy. (1) ONSHORE services and
supplies including civil and erection works, inland transportation for deliverables and advisory
services will be paid in Algerian Dinar DZD). (2) OFFSHORE activities shall be paid either in
Euros (EUR) or in American Dollars (USD)-

EPC CONTRACTOR shall develop, inter alia, the following studies and documentation:
• A preliminary analysis is required of all the structures that are affected by the revamping,
indicating which structures need reinforcement and in which way this reinforcement is
realized.
• As-built documentation of the ammonia PLANTs at Annaba and Arzew shall encompass
the overall plant with all, affected and non-affected, equipment, piping, instrumentation,
etc.
• The EPC CONTRACTOR shall deliver a 3D model of the whole PLANT (revamped and
not revamped Sections), with all the structures, equipment, instruments, cable trays, pipes
higher than 2”, etc. in order to avoid any kind of interference between them. This 3D model
shall include all information regarding materials, sizes, thickness, etc., using the 3D
Scanned Laser Model of existing PLANTs developed during the FEED as basis.
• The EPC CONTRACTOR shall deliver a Stress Analysis Report of all the new and
modified pipes with a size greater than 10" and of all the new and modified pipes with
temperatures above 120ºC.

OWNER will oversee the EPC PROJECT with the collaboration of a PMC ensuring EPC
CONTRACTOR compliance with the EPC Contract. The PMC will be able to review any document
of the project. The following documents shall be subjected for approval by the PMC: Technical
Specifications for the purchase of the main equipment, Data Sheets of the main equipment,
P&IDs, General Single Line Diagram, Control Architecture, and DCS Technical Specification

5.3. DOCUMENTATION AVAILABLE

For the elaboration of the FEED, the FEED CONTRACTOR shall consider the documentation
from KBR and FERTIAL and shall highlight any assumptions. All the clarifications required by the
FEED CONTRACTOR as well as the assumptions have to be confirmed by FERTIAL.
The FEED CONTRACTOR shall perform a site survey to verify the DOCUMENTATION and
conduct the consistency check.
All Documentation is available to download according to indicated in Annex 7.5.
5.3.1. ISBL DOCUMENTATION
The licensor (KBR) of the ammonia plant at Annaba and Arzew has developed the Basic
Engineering Design (BED) package through the procurement of new equipment, old equipment

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replacement and old equipment revamping. The BED package includes the following deliverables
for each Plant:
01 GENERAL PROJECT DATA
1.01 Project Design Basis
1.02 Equipment List
02 PROCESS
2.01 Process Design Basis and Process Description
2.02 Process Flow Diagram
2.03 Steam, Cooling Water and Chilled Water Balances
2.04 Material Balance
2.05 Catalyst and Chemical Summary
2.06 Feed and Fuel Summary
2.07 Preliminary Electrical Load Summary
2.08 Effluent Summary
2.09 Utility Summary
03 PROCESS SYSTEMS
3.01 Piping & Instrument Diagrams (P&ID’s)
3.02 Line list
3.03 Relief Valve Datasheets and PRV Adequacy Summary
Special Piping Item Index consisting Silencers, De-Superheater,
3.04 Restriction Orifice, Static Mixer
3.05 Tie-In List
3.06 Process System Notes to DEC
3.07 Battery Limits Summary
04 CONTROL SYSTEMS ENGINEERING (CSE)
4.01 Preliminary Instrument Index
Preliminary Instrument Data Summary (for non-critical new or modified
4.02 items only)
4.2.01 Control Valves
4.2.02 Flow Elements
4.03 Instrument Datasheets (for critical new or modified items)
4.3.01 Control Valves
4.3.02 ON-OFF Valves
4.3.03 Flow Elements
4.3.04 Analyzers
4.3.05 Multipoint Thermocouples
4.3.06 MOV’s
4.04 Complex Control Loop Description Preliminary
4.05 Interlock Narratives
4.06 Cause and Effect diagrams
4.07 Alarm and Trip Summary
4.08 Adequacy Check Report of Existing Control Valves
4.09 Adequacy Check Report of Existing Flow Elements
4.10 Instrument Specifications
4.11 Burner Management System
4.12 Notes to DEC
05 FURNACES
5.01 API Fired Heater Datasheet
5.02 Furnace Drawings
5.03 Technical Requisitions

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5.04 Specifications
5.05 Fan Datasheet
5.06 Furnace Field Package
06 EXCHANGERS
6.01 Technical Requisitions
6.1.01 Ammonia Converter Effluent. BFW Exchanger - 123-C
6.02 Datasheets of the following items
6.2.01 Lean Rich Solution Exchanger-109-C
6.2.02 CO2 Stripper Overhead Condenser-110-C
6.2.03 Methanator Effluent BFW Heater-114-C
6.2.04 Syngas Compressor Interstate Cooler-116-C
6.2.05 Ammonia Converter Feed Effluent Exchanger-121-C
6.2.06 Ammonia Converter Effluent BFW Exchanger-123-C
6.2.09 Ammonia Converter Effluent Cooling Water Cooler-1124-C
6.2.10 LTS Effluent Cooler BFW Preheater-1131-C
6.2.11 Syngas Compressor Suction Chilled Water Exchanger-1132-C
6.2.12 Natural Gas Fuel Preheater-1133-C
6.2.13 Ammonia Converter Effluent Chilled Water Cooler-1134-C
6.2.14 Desulfurizer Feed Effluent Interchanger-1135-C
6.2.15 Stripped Process Condensate Cooling Water Exchanger-1145-C
6.2.16 Sea Water Fresh Water Exchanger-2001-C
6.03 Specifications
6.04 Adequacy Check Report
07 VESSELS
7.01 Technical Requisitions
7.1.01 Primary Reformer Effluent Transfer line – 107-D
7.2.02 Secondary Reformer Transfer Line – 1107-D
7.02 Vessel Mechanical Datasheet
7.2.01 Secondary Reformer Burners-103-D
7.2.02 CO2 Absorber-101-E
7.2.03 CO2 Strippers-102-E
7.2.04 Air Compressor Interstage Cooler KO Drums 101-JF1_2_3
7.2.05 Steam Drum-101-F
7.2.06 Raw Gas Separator-102-F
7.2.07 CO2 Stripper Overhead Reflux Drum-103-F
7.2.08 Syngas Compressor Suction Drum-104-F
7.2.09 Syngas Compressor 1st Stage Separator-105-F
7.2.10 Ammonia Separator-106-F
7.2.11 Ammonia Let-down drum-107-F
7.2.12 Refrigerant Receiver-109-F
7.2.13 First Stage Refrigerant Flash Drum-110-F
7.2.14 Second Stage Refrigerant Flash Drum-111-F
7.2.15 Third Stage Refrigerant Flash Drum-112-F
7.2.16 Natural Gas KO Drum-116-F
7.2.17 CO2 Absorber KO Drum-118-F
7.2.18 Boiler Blowdown Drum 119-F
7.2.19 Feed Gas Saturator KO Drum-1125-F
7.2.20 Chilled Water Surge Tank-1134-F
7.2.21 Syngas Oil Separator-1136-F
7.03 Specifications

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08 COMPRESSOR, PUMPS AND PACKAGE EQUIPMENT

8.01 Technical Requisitions for:
8.1.01 Air Compressor & Turbine (101-J/JT) - Refurbish Existing
8.1.02 Feed Gas Compressor & Turbine (102-J/JT) - Refurbish Existing
8.1.03 Synthesis Gas Compressor & Turbine (103-J/JT) - Refurbish Existing)
8.1.04 Turbine for Refrigeration Compressor (105-JT)- Refurbish Existing
8.1.05 Ammonia and Hydrogen Recovery Unit – 1104-L
8.1.06 Chilled Water Units – 1132-LA/LB
8.02 Machinery / Special Equipment Datasheet
8.2.01 Air Compressor & Turbine (101-J/JT) - Refurbish Existing
8.2.02 Feed Gas Compressor & Turbine (102-J/JT) - Refurbish Existing
8.2.03 Synthesis Gas Compressor & Turbine (103-J/JT) - (Refurbish Existing)
8.2.04 Turbine for Refrigeration Compressor (105-JT)- Refurbish Existing
Class L_U Machinery (Other) Datasheet Surface Condensers Special
8.03 Equipment Datasheet
8.3.05 Ammonia and Hydrogen Recovery Unit (1104-L)
8.3.08 Chilled Water Unit (1132-L)Specifications
8.04 Specifications
09 PIPING
9.01 Index of Piping Material Classes (IOPMC)
9.02 Piping Specifications
9.03 Plot Plan Preliminary
9.04 Piping Mechanical Design Check List and Design Criteria
9.05 Planning Comments
9.06 Transfer Lines Flexibility Isometrics
10 ELECTRICAL
10.01 Single Line Electrical Diagram mark-up
11 CIVIL
11.01 Design Requirements for Earthquake Loads
11.02 Design Requirements for Wind Loads
12 HEALTH, SAFETY AND ENVIORNMENT
12.01 Process Hazard Review Report
13 COMMISSIONING AND START-UP SERVICES (C&SS)
13.01 Analytical Procedure Manual Changes – Later
13.02 Operating Philosophy Manual – Later
Note: The FEED CONTRACTOR shall have signed the NDA with KBR in order to have access
to all the KBR information.

The FEED CONTRACTOR will have available the following current existing documentation for
the Ammonia plants of both sites (Annaba and Arzew):
Disciplines Description of activities or Document
Process engineering Plant operation condition
Heat & Material Balances
Process Flow Diagrams (PFDs)
Piping & Instrument Diagrams (P&IDs)
Utilities Summary
Mechanical engineering Equipment List
Equipment Data Sheets

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Equipment Specifications
Electrical engineering Single Line diagrams
Electrical Equipment List
Electrical Loads list
Hazardous Area Classification
I&C engineering Instruments Data Sheets
Instruments List
Control Valves Data Sheets
Control Valves List
Safety Valves Data Sheets
Safety Valves List
General Permitting procedure
Plot Plan
Civil Geotechnical
Topographic

5.3.2. OSBL DOCUMENTATION

For the OSBL, the FEED CONTRACTOR will have available the EDP packages at the level of
engineering definition shown in Section 5.2.2

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6. LIABILITIES & LIQUIDATED DAMAGES

6.1. EXECUTION TIME

FEED CONTRACTOR shall have one (1) week of grace period above total execution time
indicated in the awarded FEED CONTRACT.
Should the FEED execution time exceed two (2) weeks above to what is indicated in awarded
FEED CONTRACT a penalty of 5% of the awarded FEED CONTRACT price shall be applied. For
every week in excess above the second week, a 2.5% additional penalty shall be applied against
total awarded FEED CONTRACT price.
The maximum aggregate liability applicable for the execution delay of the FEED incurred by FEED
CONTRACTOR shall be 10% of awarded FEED CONTRACT price

6.2. TIC

FEED CONTRACTOR shall submit the TIC as indicated in Section 5.2.2 as a deliverable of the
FEED.
Once FEED is concluded, Fertial shall launch an EPC tender within six (6) months after final
FEED submission. For the EPC tender, FEED CONTRACTOR shall be encouraged to participate
and submit an EPC PROPOSAL based on its FEED.
Should the EPC LSTK commercial proposal made by the EPC CONTRACTOR excess 10%
above what was indicated in the TIC of the final FEED, a total liability penalty of 15% shall be
charged against total awarded FEED CONTRACT price.

6.3. ENGINEERING QUALITY

It is intended that there is a BED package, prepared by a technological company (LICENSOR),

which shall be used as the basis for the preparation of the FEED Engineering package. The
compliance of the FEED package with the BED package is mandatory for the FEED
CONTRACTOR. In case of discrepancies and alternatives, those shall be subject to the OWNER
or OWNER representatives for the evaluation and acceptance/rejection of the mentioned
alternatives.
Said warrantee is understood without prejudice to FERTIAL’s right to perform the appropriate
actions to claim liability from the EPC CONTRACTOR in accordance with the current legislation.
The FEED Contractor guarantees that the work to be performed hereunder shall be performed in
accordance with the standards customarily provided by an experienced and competent
professional engineering organization performing the same or similar Work. The FEED Contractor
shall re-perform any of said work that was not performed in accordance with this standard
provided that The FEED Contractor is notified in writing of the nonconformity within twelve (12)
months after the performance of the deficient work. The FEED Contractor will perform the
remedial work at no cost to FERTIAL, provided, however, that the cost to the FEED Contractor of
such remedial work shall not exceed 30% of the value received by the FEED CONTRACTOR
under this Agreement. No process performance guarantees are offered under this Agreement.
The foregoing are the FEED Contractor's entire responsibilities and FERTIAL's exclusive
remedies for work performed or to be performed hereunder, and no other warranties, guarantees,
liabilities or obligations are to be implied under this Agreement in contract, tort or otherwise.

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6.4. AGGREGATE LIQUIDATED DAMAGES

The maximum liquidated damages applicable to FEED CONTRACTOR shall be 50% of the total
awarded FEED CONTRACT price.

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7. ANNEXES

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