Background

National Oil Corporation of Kenya (National Oil) is a company wholly owned by the Government of Kenya charged with the mandate to participate in all aspects of petroleum business with a view to ensure security of supply and stability of pricing of petroleum in the country as well as carrying out exploration activities in Kenya’s sedimentary basins.

The corporation works closely with the Ministry of Energy and Petroleum in efforts to promote petroleum exploration activities, often by applying approaches that enhance the quan tity and quality of data in areas open for exploration licensing. An effective approach that has proved successful in the recent past is partnership between seismic and other data acquisition contractors and National Oil in conducting surveys on a non-exclusive and a multi-client basis in open acreage at much lowered cost due to the shared mobilization and demobilization costs and ultimately shared exploration risks. The current low price environment whereby exploration spending by many companies has been significantly reduced and the market for the utilization survey vessels is in a s lump creates an ideal opportunity to spend the next one – half years putting together a series of multi-client survey and studies that will help de-risk the open acreage, particularly in the offshore area to enhance its attractiveness by lowering initial capital required to de-risk the area, while accelerating exploration programmes that could lead to development and production. Recent drilling particularly in the Sunbird W ell has shown encouraging signs of possible oil and gas accumulation in both carbonate (reefs ) and clastic depositional settings in Kenya offshore area which is still largely unexplored.

The multi-client surveys and studies are part of the preparation of an open licensing round tentatively scheduled for the year 2017. A formal announcement on the date from the Ministry of Energy and Petroleum is expected soon.

During the past exploration work in the Kenya offshore area seismic surveys have been dominated by 2 D data acquisition. 3D data has been acquired in only a few blocks. The intention of National Oil and the Ministry is to increase the amount of 3D data coverage so as to better image drillable structures and accelerate exploration through drilling in the e arliest phases of exploration, potentially the Initial Exploration Period of any Block licensed under the new PSC. This strategy coincide s with the recent world-class successes encountered offshore East Africa and the growing interest in the region. Kenya which has not witnessed similar success in the offshore area is keen to attract and accelerate exploration in the area while ensuring the cost of investment in the country are comparatively low, fair and conducted on a competitive basis .

Thus, invitations are requested from seismic contractors to present proposals to undertake a 3D broadband seismic survey on a multi-client basis, the detailed terms of which will be subject to further discussion and negotiations with the successful contractor. The successful contractor will be granted access to the existing data and its distribution to assist in designing and costing the survey. The 3D acquisition and processing may include the deep water blocks held by ANADARKO (L12 & L11A) and CAMAC (L27 & L28) and possibly L25 and L26 depending on prior commitments being made by the licensees’.

Project Objectives

National Oil Corporation of Kenya in partnership with Ministry of Energy and Petroleum is promoting Kenya as the next big frontier for oil and gas. In this quest National Oil seeks to engage a competent contactor for the following :

1. Increasing the amount 3D Seismic area over the most prospective blocks previously mapped using 2D Seismic and determining the volume of data that will be require d to cover gaps in 3D data coverage while offering a better definition of existing prospective structure.

2. Processing the acquire d 3D data and compiling data packages that can be offered for sale to interested companies in a scheme that ensures cost recovery for the contractor and proposes a profit sharing arrangement from the sales with National Oil (this may be subject to further negotiations with the best bidder).

3. Supporting National Oil and the Ministry in brokering and marketing the data prior to and after the licensing and any specialized reprocessing that may be required by the licensees of any block.

4. A preliminary interpretation of the data to demonstrate the prospectivity of each block and rank their relative value

5. Engaging National Oil staff in the acquisition, processing and interpretation of the 3D data as an integral part of technology transfer and capacity building.

Design and Costing of Survey

1. The contractor will be required to provide the seismic data technology it intends to deploy in the survey.

2. Seismic contractors will be permitted to visit National Oil to view existing data to enable them provide a design of the survey as well as the total number of sq. km planned or envisaged for acquisition. This will form a critical criteria in evaluating eac h proposal received.

3. The contractor will be required to provide a cost of the survey based on (1 and 2) above and which will offer a further basis for proposals for revenue share between the contractor and National Oil.

4. The contractor will be required to propose th e revenue sharing scheme.

5. A time frame for the acquisition programme will also be required and will additionally form a criteria for evaluating proposals.

Processing

The contractor will also be required to propose the processing sequence of the acquire data and the duration for its completion, which shall provide sufficient time to avail the data to through brokering and marketing.

Requirements

1. Contractors will be required to submit EOI for both seismic data acquisition and processing.

2. Contractors shou ld have proven experience of 3D multi-client offshore Seismic Data Acquisition and /or processing on schedule within specific timelines.

3. Contractors are required to have sufficient personnel, equipment, management and highly effective QA/QC procedures and organizational processes to conduct the works as required.

4. Contractors should be able to demonstrate a full understanding of internationally accepted Health, Safety and Environmental policies, practices and procedures while carrying out marine seismic data acquisition.

5. Only contractors complying with these requirements and demonstrating successful track record, listing projects, clients and provide client contacts details for reference should respond to this EOI.

Other Requirements

In addition contracto rs are required to submit the following for both acquisition and processing:

Acquisition

1. Provide the earliest date of 3D seismic crew availability mobilization.

2. Lists of similar 3D offshore seismic data acquisition work undertaken successfully in the last five years and projects currently under execution.

3. Details of any previous experience of a similar type in Kenya.

4. D etails of key personnel to be involved in the project including their bio-data

5. Management structure of the company.

6. Acquisition methodology and QA/QC procedures.

7. Detailed list and spec ification and age of equipment to be utilized in the survey

8. Health, Safety and Environment policies, procedures and statistics covering the last 3 years.

9. Company’s financial performance documents (Audited Balance Sheets and Profit and Loss Statements etc.) for last 3 years.

10. Details of any court proceedings against the contractor.

11. Timeline and description of project deliverables.

12. Any other relevant information.

Processing

1. Lists of similar 3D marine seismic processing work successfully completed in the last five years and projects currently under execution

2. Technology available to effectively attenuate marine seismic noise and merge different 3D azimuthal data. Effective technology available to attenuate short p eriod multiple and handle azimuthal anisotropy. Personnel details including bio-data of key personnel.

3. Available software and hardware details.

4. QA/QC procedures (internal and remote) details

Submission of the EOI

National Oil requests interested contractors who can fulfill all of the specific ations listed above to submit their EOI along with associated documents (including the details and references stated above) to submit their EOIs as below:

Interested candidates a re to view/obtain/download more details of the Expression of Interest (EOI) at National Oil website on the tenders link or at Procurement Department, National Oil Corporation of Kenya, AON Minet House, 5th Floor, Mamlaka Road, off Nyerere Road, Nairobi, Kenya.

Expressions of Interest (EOI) in plain sealed envelopes clearly marked "Expression of Interest for Provision of 3D Multi-Client Broadband Seismic Offshore Survey in The Shallow Waters of The Lamu Offshore Basin – Ref. No. NOCK/PRC/03(1057)" with the instructions "Do not open before 5 th October 2015 at 1500hrs (East Africa Time)", should be addressed to:

The Chief Executive Officer National Oil Corporation of Kenya AON Minet House, 7 th Floor Mamlaka Road, off Nyerere Road P O Box 58567 – 00200, Nairobi

and deposited in the Tender Box located at AON Minet House, 5th Floor, Mamlaka Road, off Nyerere Road, Nairobi between 0800hrs and 1700 hrs (East Africa Time), so as to be received on or before 5th October 2015 at 1500hrs (East Africa Time). Late submissions shall automatically be disqualified whatever the circumstances.

Expressions of Interest will be opened soon thereafter at National O il Head Office – Boardroom, 5th Floor, AON Minet House, Mamlaka Road, off Nyerere Road, Nairobi, in the presence of tenderers and/or their representatives who may wish to attend.

The EOI documents are not transferable.