The Iraq Strategic Crude Oil Export Pipeline Infrastructure Project EIC Connect Oil, Gas & Power June 02, 2013

Transcription

1 Iraq Ministry of Oil The Iraq Strategic Crude Oil Export Pipeline Infrastructure Project EIC Connect Oil, Gas & Power June 02, 2013

2 Table of Content Executive Summary The Project The EPC Contract The BOOT Project 2

3 Iraq s Existing and Planned Export Network 4

4 The EPC Contract & BOOT Project The EPC Contract From Basrah, the PS1A inlet collection point and pump station to Haditha, the K3 Pump Station, a distance of 680 km, with a 2.25 million bpd capacity; and The BOOT Project From Haditha, the PS5A Pump Station to the Port of Aqaba, in Jordan, approximately 1,000 km, with a 1 million bpd capacity. 5

5 The EPC Contract Basrah (PS1A) to Haditha (PS5A or K3) The EPC Contract will be designed, procured and installed to transport 2.25 million bpd of stabilized crude oil, received from five (5) new fields in and around Basrah, including West Qurna I and West Qurna II, to the node point or collection hub at Haditha PS5A (K3). The start point for the EPC Contract is the new PS1A Pump Station, located at the Rumaila Oil Field, in the south of Basrah. There will be 2 parallel pipelines: A crude oil pipeline, with a 56 diameter; and An associated fuel gas pipeline. The pipelines will be under ground, with a 1 meter cover, in an existing pipeline corridor. There will be a Tank Farm, located near the PS1A Pump Station, with 7 days of crude oil storage of the design flow. There will be 3 intermediate Pump Stations, at Samawa, Holy Najaf and Ramadi. The EPC Contract will end at the PS5A outlet manifold, at Haditha (K3), in the Anbar Governorate with 5 days of crude oil storage of the design flow. The approximate length of the pipeline is 680 km. The inlet manifold and metering stations will be located at PS1A and PS5A (K3). 6

6 The BOOT Project The Iraq Jordan pipeline section will be tendered under a build, own, operate and transfer ( BOOT ) scheme, where the engineering, procurement and construction will be coupled with a 20 year operational concession period. At the expiration of the 20 year concession, the ownership of the pipeline will be transferred to an SPV, wholly owned by the MoO. The BOOT Project requires the contractor to finance, construct, own and operate the pipeline, in consideration for an agreed Service Charge. 7

7 The BOOT Project Haditha (PS5A or K3) to the Port of Aqaba The BOOT Project will be designed, procured and installed to transport 1 million bpd of stabilized crude oil. The start point for the BOOT Project is the new PS5A Pump Station, located at Haditha (K3). There will be two parallel pipelines: A crude oil pipeline, with a 42 diameter; and An associated fuel gas pipeline. In addition, a branch tie-in to be provided to connect the pipeline to the Zarqa Refinery branch, with a 0.15 million bpd capacity. There will be 2 main pump stations, one near Zarqa refinery that includes 3 million barrel tank farm and associated facilities, and the other one to be located near Aqaba and include 7 million barrel capacity tank farm with associated facilities. There will be 4 intermediate Pump Stations, 2 in Iraq and 2 in Jordan. The pipelines will be under ground, with a 1 meter cover. The approximate length of the pipeline is 1,000 km. The outlet manifold and metering stations will be located at PS5A (K3), Zarqa refinery branch and at the Port of Aqaba. 8

8 The Commercial Framework The BOOT Company will engineer and design, finance, construct, own and operate the pipeline, for a period of 20 years, during which the BOOT Company will receive a commercial fee (the Service Charge ), for making the pipeline capacity available and for the transportation of the crude oil. The Service Charge structure will consist of: A Capacity Charge, set by reference to the available pipelines capacities (crude oil and dry gas) and set at a level to compensate the BOOT Company for its construction costs, the related debt service payments, and fixed operational costs for the term of the BOOT Project Agreement, including an amount to meet with the BOOT Company's expected rate of return; and A Throughput Charge, which is dependent on the volume of crude and dry gas transported through the pipeline. 9

9 The BOOT Project s Legal Agreement The Inter-Governmental Agreement The Inter-Governmental Agreement will set out how both Governments will cooperate, partly through a joint commission and in respect of: The development of common technical and environmental standards; The ownership of the crude oil, to be exported through the pipeline; The acquisition and granting of land rights for the pipeline corridor; The allocation of taxation rights; The resolution of boundary disputes; The responsibility for environmental and safety standards; and The provision of security. The Agreement will coordinate the obligations contained in the Host Government Agreements and the BOOT Project Agreement. 10

10 The BOOT Project s Legal Agreement The Host Government Agreements An agreement between the BOOT Company, the SPV (Iraq Owner) and each of the respective Host-Governments. The Agreement will follow the principles established under the Inter- Governmental Agreement and will set out the BOOT Co. and Host- Governments obligations and responsibilities in respect of: The granting of land rights; Import and export permissions, customs treatment, currency and tax treatment; The employment of nationals; The technical and environmental standards; The security and access to the facilities. 11

11 The BOOT Project s Legal Agreement The BOOT Project Agreement Entered into between the SPV (the Iraq Owner ), and the BOOT Company; Requires the Owner to provide land rights, in the pipeline corridor, to the BOOT Company; Requires the BOOT Company to finance, construct and operate the pipeline, in accordance with the agreed Technical Specifications; Grants a 20 year Operating Concession to the BOOT Company; Requires the BOOT Company to provide Services in accordance with the agreed Functional Specifications; Establishes the MoF and MoO Payment and minimum Throughput Guarantee obligations; and The BOOT Company s Transfer obligations and required condition of the pipeline at the end of the BOOT Project s term. 12

12 The BOOT Tender Process The MoO has announced the BOOT Project, the Invitation to submit Expression of Interest and the Pre-qualification Document; EOI Submission by the 20 th of May 2013 (Companies may still submit an EOI subject that they meet the PQ submission date); PQ Submission by the 15th of June 2013; Companies may pre-qualify as a consortium or individually for their projected scope and share interest in the future bidding consortium to form during the ITT; A Committee will review each submission, under pre established and transparent criteria; Following the review, invitations to Tender will be sent out to the Qualified Bidders (Aug-2013); Bidders to confirm their bidding consortia (Oct-2013); Upon the receipt of the Tender Bids, from the submitting Qualified Bidders, the Committee will review and score each Tender Bid, and rank the bids accordingly (Dec-2013); The Committee will make a recommendation to enter into negotiations with the Preferred Bidder/s ; and Based on the recommendation, the MoO and the Preferred Bidder/s will enter into negotiation on the BOOT Project s terms and conditions while finalizing the financing agreements of the Project (Q2-2014). 13

13 Important Notice All enquiries, including those of a technical, commercial and/or financial nature, should be directed to: Mrs. Nihad Ahmed Mossa (scop@scop.gov.iq) Director General of State Company for Oil Projects ( SCOP ) Ministry of Oil, Iraq and Mr. Ghassan Ashqar (ghassan.ashqar@snclavalin.com) SVP Business Development ME SNC-Lavalin SNC-Lavalin is Project Advisor to Iraq MoO The Project and its arrangements are the sole responsibility of Iraq s Ministry of Oil. Tender parties will be disqualified if they do not adhere to the Tender Process. 14

14 Ministry of Oil Thank you.