TECHNICAL OFFER

Date: July 31st, 2015

FERTIAL SPA – Route des Salines – BP 3088 ANNABA

ATTN: Director d’Approvisionements et de la Logistique
Avis d’appel d’offre restreinte
o:
N AO / FRP-IDM-FEL-AET-0001

References: ITB from FERTIAL: FRP-IDM-FEL-AET-0001 Dated 01.07.2015 and

emails from FERTIAL as listed here:

• FRP-FEL-TEC-0021 New deadline for FEED proposal
submission
• FRP-FEL-TEC-0027 FEED kick off strategy and Draft
Contract
• FRP-FEL-TEC-0028 Technical Query List, Fertial
clarifications
• FRP-FEL-TEC-0030 RE: FRP-FEL-TEC-0028 Technical Query
List, Fertial clarifications

Subject: Technical Offer for the Front End Engineering Package

(FEED) for the Revamp of Kellogg Design Ammonia plants
and related facilities at Fertial Annaba and Arzew sites,
Algeria

1. FOREWORD
This proposal refers to Fertial’s Bidding Proposal Request dated July 1st 2015
and subsequent clarifications received vide various mails as referred above.
This Proposal embodies the results of such elaborations.

Tecnimont SpA
Registered Office Milan: Share Capital € 1.000.000,00, fully paid-up
Via Gaetano De Castillia 6 A, 20124 Milan, Italy Register of Enterprises of Milan,
P +39 02 63131 F +39 02 63139002 Tax/VAT File No. 01628410159
Economic Administrative Repertory No. 574643
Sole Shareholder Company, www.mairetecnimont.com
Subsidiary of Maire Tecnimont S.p.A
2. SCOPE OF WORK
Scope of Work considered by BIDDER is essentially as given in Section 5.2 of
ITB read in conjunction with:
• clarifications received from OWNER as referred above
• deviations / Exceptions /Exclusions attached as part of this Proposal
3. FEED Execution Strategy
BIDDER is proposing to execute the FEED from BIDDER’s 100% Owned
Subsidiary TICB Mumbai Office. Detailed FEED Execution Strategy is attached as
Annexure 1 to the Technical Offer.
4. FEED Detailed Schedule with Basis and Assumptions
Detailed Schedule with Basis and Assumptions is attached as Annexure 2 to the
Technical Offer.
5. List of Deliverables
List of Deliverables presently envisaged by BIDDER is attached as Annexure 3 to
the Technical Offer.
6. Reference List / Evidences of Experience with Ammonia Process:
Reference Lists indicating the Ammonia Process experience according to award
criterion (Section 4.3 of ITB) is attached as Annexure 4 to the Technical Offer.
7. Reference List / Evidences of Experience in Algeria:
Reference Lists indicating the experience in Algeria according to award criterion
(Section 4.3 of ITB) is attached as Annexure 5 to the Technical Offer.
8. Organisation Chart and CVs of key Personnel responsible for the FEED
Contract:
Organisation Charts indicating Overall FEED Contract Organisation Chart, Home
Office Organisation Chart and Site Organisation Chart are attached as Annexure
6 to the Technical Offer
CVs of Key Personnel are attached as Annexure 7 to the Technical Offer
9. TIC Estimate Plan
TIC Estimate Plan proposed to be followed is attached as Annexure 8 to the
Technical Offer

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10.LLIs Procurement Plan
LLIs and other Procurement Plan to be followed is attached as Annexure 9 to the
Technical Offer.
11.List of Deviations / Exceptions / Exclusions
List of Deviations / Exceptions / Exclusions is attached as Annexure 10 of
Technical Offer

12. TECNIMONT CREDENTIALS

TCM, the main operating company of Maire Tecnimont group, is an
international Engineering and Contracting company with headquarters in
Milan (Italy) and operating globally in the fields of Oil & Gas, Chemical,
Petrochemicals, Fertilizers, Power, Infrastructure and Civil Engineering. The
Company offers a wide range of competences from feasibility studies to
front-end engineering design, technology selection and project
implementation on EPC lump-sum turnkey basis and specialized services.
Maire Tecnimont S.p.A. is the parent company of an international industrial
group which provides a comprehensive, integrated system of services and
installations in its sectors: today, the Group, listed in the Milan stock
exchange, is present in approximately 30 Countries, currently controls over
50 operative companies and can rely on a workforce of about 4,200
employees, of which more than half are located outside Italy.

13 EXPERIENCE WITH AMMONIA and RELATIONSHIP WITH KBR

Nitrogen Fertilizer technologies are indeed a legacy originating from the
times when Tecnimont was the engineering design center of the Montedison
Group. Montedison has been one of the largest Chemical group in Europe for
all the ‘900 and up to its dissolution in the late ‘80s was also a Licensors of
proprietary Ammonia and Urea technologies. Starting from 1924, through its
predecessors Montecatini first and Montedison later, Tecnimont has
completed to date 95 Ammonia plants.

After in-house Ammonia technology was alienated, Tecnimont entered into a

cooperation agreement with CF Braun, later with its successor Brown & Root
and now with the second generation successor KBR. Thanks to this
cooperation TCM has executed 8 ammonia projects in the last years and

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 worked on about 20 proposals so developing the understanding of the KBR
process under all point of views: process, mechanical, instrumentation,
piping and layout etc.

At the same time of the signature of the cooperation agreement with KBR
another cooperation agreement was signed with Stamicarbon, the market
leader in Urea Technology. The association with Stamicarbon became even
tighter in 2009 when Stamicarbon was acquired by the Maire Tecnimont
Group. This assures that in the Group exists a level of competence in the
nitrogen fertilizer technologies which is unparallel in other, generic, EPC
contractors.
The list of recent references can be found in Annexure 4.

14 EXPERIENCE WITH AMMONIA REVAMP

TCM and TICB in consortium have recently completed a substantial revamp
of a vintage ammonia plant in the site of Nangal, Punjab, India, for NFL, a
state owned fertilizer manufacturing company. In Nangal the scope of work
comprised of the replacement of the fuel oil feedstock with natural gas
feedstock, therefore involving massive changes in the front end section as
well as some significant changes in the synthesis section. The job was
comparable in size to the one here proposed and was completed in 2013.
Many of the key personnel proposed had worked for the Nangal job.

15 EXPERIENCES IN ALGERIA

MAIRE TECNIMONT Group has about 100 References in the Oil & Gas sector
(SONATRACH), in Power Plant sector (SONELGAZ) and in Fertilizers.
The main Contracts are in EPC.
Please find in Annexure 5 our references lists and the description of the
latest projects.

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16 TCM EPC CAPABILITIES

TCM scope of work includes generally Engineering, Procurement,

Construction, Pre Commissioning and Testing plus 2 Years Operation Spare
Parts

For the Construction activity, TCM has a lot of partners (Algerian or

Foreigners) and generally split the works in different packages like levelling
and civil works, buildings, mechanical and piping erection, instrumentation &
electrical works, temporary facilities. For FER project and due to the fast
project, a General Contractor approach can be chosen during the Phase 1.
Concerning the material, a part of the Fabrication can be done locally.

TCM has developed a significant experience in the peculiar features that

characterizes the execution of any EPC projects in Algeria and namely:

Transport, Logistic & Storage Plan

Customs

Relationship with Algerian Authorities for Authorizations Coordination
– Involvement of ARH & DPEM
– Involvement of CTC (Construction)
– Involvement of DPT (Transport)
– Involvement of ONML (Metrology)
– Involvement of ARPT (Telecommunication)
– Involvement of SONELGAZ (Electricity)
– Involvement of DGE (Finance)

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INDEX OF ANNEXURES AND ATTACHMENTS

Annexure 1 Feed Execution Strategy

Attachment 1 to Annexure 1 Procurement Execution Strategy
Attachment 2 to Annexure 1 Construction Execution Philosophy
Annexure 2 Schedule and Assumptions
Annexure 3 List of Deliverables
Annexure 4 References in Ammonia
Annexure 5 References in Algeria
Annexure 6 Organisation Charts
Annexure 7 CVs.pdf
Annexure 8 Total Installed Cost Estimate Plan
Attachment 1 to Annexure 8 TIC - Cost Estimate Summary Form
Annexure 9 LLI Procurement Plan
Annexure 10 Deviation / Exceptions

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 Annexure 1

FEED EXECUTION STRATEGY

CONTRACTOR IDENTIFICATION CODE
XXXX-XX-XX-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA &

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FEED EXECUTION STRATEGY

 Annexure 1

FEED EXECUTION STRATEGY

CONTRACTOR IDENTIFICATION CODE
XXXX-XX-XX-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA &

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Contents

1 ABBREVIATIONS

2 BIDDEER ORGANISATION METHODS AND PROCEDURES

3 ORGANISATION

4 FEED EXECUTION STRATEGY

5 PROJECT MONITORING AND PROGRESS MEASUREMENT

6 ENGINEERING EXECUTION STRATEGY

7 PROCUREMENT EXECUTION STRATEGY

8 CONSTRUCTION EXECUTION STRATEGY

 Annexure 1

FEED EXECUTION STRATEGY

CONTRACTOR IDENTIFICATION CODE
XXXX-XX-XX-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA &

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1. ABBREVIATIONS

TCM Tecnimont S.p. A, Italy office

TECNIMONT Mumbai Office TICB Mumbai, India Office (100% Owned
subsidiary of Technimont S.p.A- Italy)
OWNER FERTIAL SPA, ALGERIA
LICENSOR Kellogg Brown & Roots LLC (KBR)
CONTRACTOR Tecnimont S.p.A
PM Project Manager
PEM Project Engineering Manager
PPM Project Procurement Manager
PPC Project Procurement coordinator
MR Material Requisition
PO Purchase Order
MTO Material Take Off
TBE Technical Bid Evaluation
CBE Commercial Bid Evaluation

2.0 BIDDER ORGANISATION

Company Organization

Tecnimont S.p.A, the main operating company of Maire Tecnimont group, is an

international Engineering and Contracting company with headquarters in Milan
(Italy) and operating globally in the fields of Fertilizer, Oil & Gas, Chemical and
Petrochemicals, Power, Infrastructure and Civil Engineering. The Company offers a
wide range of competences from feasibility studies to front-end engineering design,
technology selection and project implementation on EPC lump-sum turnkey basis
and specialized services.
 Annexure 1

FEED EXECUTION STRATEGY

CONTRACTOR IDENTIFICATION CODE
XXXX-XX-XX-00001

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Maire Tecnimont S.p.A. is the parent company of an international industrial

group which provides a comprehensive, integrated system of services and
installations in its sectors: Today, the Group, listed in the Milan stock exchange, is
present in approximately 30 Countries, currently controls over 50 operative
companies and can rely on a workforce of about 5,100 employees, of which more
than half are located abroad.

Tecnimont Mumbai Office is an integral part of Maire Tecnimont group and a

wholly owned subsidiary company of Tecnimont S.p.A is a fifty year old in India in
the field of engineering and construction in India that has capability and experience
to supply plants on Lump-sum Turnkey basis in addition to providing EPC services
to group companies for projects worldwide. Tecnimont Mumbai office maintains a
highly qualified and experienced staff, specialized across multidiscipline
engineering, procurement, project and construction management and is an ISO
9001-2008, ISO 14001-2004 and OHSAS 18001:2007 certified company.

Tecnimont Mumbai office caters to a wide spectrum of business sectors that mainly
includes Oil & gas, Chemical and Petrochemicals, Refineries, Fertilizers, Energy,
Infrastructure and Civil Engineering, from concept to commissioning stage.
Tecnimont Mumbai office, in view of its high level of expertise and adhering to the
same procedures and instruments as the European group companies, is proudly
identified as the Center of Excellence within Maire Tecnimont Group with a large
resource pool of highly qualified and experience specialists (almost 40% of Maire
Tecnimont’s entire workforce) and represents a fully operational capacity of almost
three million engineering man hours per year.
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3.0 Methods and procedures

TCM, appreciates the complexities and high stakes involved - safety issues of
working in an operating plant and possible loss in production and ensuing
commercial impact in case of glitches - in Revamp Job vis a vis a Greenfield Project.
Utmost importance of planning, Engineering, Procurement and construction study
during FEED stage is clearly understood by BIDDER.

It is also noted that apart from a number of new equipment, a number of retained
equipment - supplied almost three and a half decades back - are to undergo major
revamp and refurbishing within a tight schedule. Thus noting the importance of
availability of OEM services and spares for previous generation machines and noting
the underlying importance of Procurement Services.

It is also noted that for having minimal impact on production in existing plant the
planning and execution of job is to be such that Hook Up period is minimized.

Execution strategy is being proposed for overcoming the given challenges and for
achieving the above given goals optimally.

4.0 Organization

The organization to be utilized for execution of this project is indicated in the

Annexure 6.

While proposing the Organization Chart for Home Office Services BIDDER has
factored in the rich experience gained for carrying out similar Ammonia revamp
Project and other Brown Field / Grass Route Fertilizer Projects carried out / being
carried out by its’ Mumbai Centre of Excellence.
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Required visits to site and close interactions between BIDDER engineering and
Construction teams so as to plan ahead for critical construction phase is well
understood. While proposing the Site Organization chart for activities related to site
survey and constructability study, BIDDER has factored in the rich Construction
experience of its’ team at Milan (Italy) supported by construction and Engineering
teams from Tecnimont Mumbai office, Mumbai.

It is proposed that all home office activities (Project Management, Engineering

involved for FEED, All Procurement Services etc) shall be carried out from the
Mumbai office of BIDDER’s Tecnimont Mumbai office Home Office. Detailed
Engineering activities shall be carried out in Tecnimont Mumbai office.

Considering the tight schedule and the nature of Project – Revamp of plants,
BIDDER recognizes close coordination amongst OWNER and FEED CONTRACTOR as
prime requirements for success of PROJECT.

Day to day interactions, receipt & closure of comments, quick approval of

documents is foreseen as tool for success of PROJECT.

Continuous interaction amongst OWNER and FEED Contractor for vendor related
queries and quick decision making towards closure of these are recognized as
important aspect for the PROJECT.

To achieve the schedule and stated goal it is foreseen that Engineer (s) from
Tecnimont Mumbai office would be stationed at OWNER’s Arzew and Annaba Plants
during Site Survey of the PLANT (s). The Engineer (s) would facilitate Collection of
Documents for OWNER’s existing plant, Day to interactions with OWNER’s
Personnel, Interface between OWNER’s Personnel and Engineering Centre at
Tecnimont Mumbai office.
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Further the Constructability Study for Revamp Job is an activity involving close
interaction amongst OWNER’s Operation and Maintenance Personnel, BIDDER’s
Construction Team and Concerned Engineering specialists from Tecnimont Mumbai
office. It is foreseen that concerned specialists from Tecnimont Mumbai office would
support and facilitate the Constructability study appropriately.

5.0 FEED Execution Strategy

• FEED would be executed by forming a task force for the job

• Lead members viz. Project Manager, Project Controller, Project Engineering
Manager, Technology Manager, Procurement Coordinator would have experience of
Ammonia Revamp Job. Project Manager, leading the team would be the interface
between TCM and two Project Managers from OWNER at Annaba and Arzew.
• Project Manager would be supported by Contracts Manager, Project Controller and
Cost Controller – all with experience in executing similar Ammonia Revamp Project.
• FEED CONTRACTOR would arrange site visits of its’ Personnel
• Two Kick off meetings (KOM) one each at Arzew and Annaba shall be organised at
the beginning of FEED Activities.
• Design review meetings and Monthly Project Review meetings amongst OWNER and
FEED CONTRACTOR would be held as foreseen in ITB. Frequency of Design Review
meeting can be increased, in mutual consultation amongst OWNER and FEED
CONTRACTOR.
• Final Review meeting at the end of FEED would be held as foreseen in ITB.

6.0 PROJECT MONITORING AND PROGRESS MEASUREMENT

The following typical procedures and formats are used by BIDDER for Project
Management and Measurement methodologies. These procedures contain relevant
formats.
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a) Project Control Procedure

b) Progress Measurement Methodology
c) Project Reporting procedure
d) Project Progress Reporting Formats
e) Work Break-down Structure

Further, all the activities during the project like engineering, procurement and
construction, materials management etc shall be closely coordinated utilizing highly
integrated design and project management software.

7.0 Engineering Execution Strategy

Basis of design
The Licensor’s BEDP documents shall be the basis for design / specification /
selection of Plant systems, process equipment, control systems, electrical systems,
etc. The equipment identified as Licensor-critical or mandatory or proprietary shall
be designed as per Licensor’s standards and shall be procured from Licensors’
approved vendors. Overall Plot Plan and other details as furnished by Owner in the
ITB and the clarifications conveyed vide all contractual documents will be the basis
for further detail engineering.

Engineering Execution

General

The engineering of this project is planned in the following main phases.

a. Basic Engineering Package from Licensors

Development of BEDP: BDEP received from KBR would be considered as rely

upon documentation
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b. Residual Process Engineering by Bidder including utility plants

• Checking of the Licensor BEDPs for inter-documentary inconsistencies or

discrepancies, and resolving such discrepancies with Licensor & Owner

• Finalization of Project Design Basis and General Specifications and for all
disciplines

• Process design of utility systems & packages as per the project requirement

Detailed Engineering shall be generally in accordance with the Owner’s

requirements as per the Bidding Documents, and include the following main
types of activities:-

• Finalization of the process design data

• Finalization of the Engineering deliverables list and schedule

• Finalization of Plot Plans, Plant Layouts and Equipment Layouts

• Issue of Enquiry Specifications for vendor supplies

• Review of vendor offers

• Issue of Purchase Specifications to vendors

• MTO generation for bulk items,

• Release of Work Requisitions for site construction works

• Support to site for construction-related activities

• Preparation of Project co-ordination procedure

• Preparation of Procedure for management of documentation

• Owner/Licensors Approvals

The Documents for review / approval by Owner shall be mutually agreed and will be
in line with ITB documents.
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FEED Specific following activities are foreseen to be executed as part of Engineering

task

• Collection of As Built Drawings and Documents from OWNER immediately on award

of work
• Scope clarification amongst OWNER / Licensor / TCM with respect to
o Procurement of New Equipment / Material
o Retained Equipment to be replaced
o Retained Equipment / Facilities to be Modified
o Retained Equipment / Facilities to be maintained or to be restored to
Original Design conditions
• Initial extensive site survey for
o Assessment of documents available with OWNER
o Development of Basic Equipment Layout received from Licensor
o Steel Structure Adequacy and assessment of required Extension /
Strengthening of Steel Structure for any possible new pipe lines and
Equipment
o Checking availability of space in Pipe Rack and possibility of any extension
required
o Checking availability of space in Cable Racks / Trench and Cable Duct
o Survey of Existing Sub Station and other electrical facilities for erection of
additional panels
o Assessment of Cable entries to Control Rooms and Substations
o Assessment and discussions on Underground Work in ISBL and OSBL
o Discussions on Work Methodology to be followed in running plant
o Tie In identification and availability of utilities for pre commissioning
activities
• Definition and Agreement of Process Guarantees amongst BIDDER and OWNER for
EPC Work development
• Engineering Development in parallel with Site Survey
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Project Engineering Manager (PEM) with rich experience of having executed similar
Ammonia Revamp Project based on KBR Technology would be responsible for all
Engineering activities. PEM shall be supported by two Project Engineers who would
have amongst them have work distribution for different disciplines e.g. Rotary
machine, static, Electrical and Instrumentation etc. for both sites i.e. Arzew and
Annaba. Vendor coordination for their respective areas would be by individual
Project Engineer.

Engineering Activities would be developed in Tecnimont Mumbai office. Engineering

Centre at Mumbai - vertically integrated with TCM Milan Engineering Centre – would
be developing engineering under overall supervision and responsibility of TCM
Milan. Development of engineering relevant to Process, Piping & Layout, Civil,
Structural & Architectural, Electrical, Instrumentation, Static and Rotating
Equipment, HSE Design and Commissioning would be from Mumbai office.
Coordination with vendors shall be by Engineering Centre located at Mumbai.
• Considering a number of big size machines undergoing Revamp, it is foreseen that
close interaction amongst OWNER, OEM and BIDDER would be required during the
FEED Work to arrive at Optimum solutions. BIDDER foresees that OEM visit would
be required for such interactions. BIDDER personnel would be visiting site for such
interactions with OEM and OWNER. On closure of these interactions, presence of
BIDDER personnel at OEM Engineering Offices is also foreseen for quick agreements
on proposed solutions
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8.0 Procurement Execution Strategy

Procurement Work Flow

PROJECT Purchasing Procedure at HO

Purchasing, expediting, inspection, QA/QC coordination, and shipping will be
executed according to BIDDER’s corporate procedures and working software.
Bidder’s Procurement System is mainly based on standard database running under
Microsoft environment. Such Information System shall allow the tracking of
procurement activities from HO and SITE. The tracking of materials begins from the
issue of the Material Requisition for Bid Inquiry, and through the award of the
Purchase Order, will cover the follow up of manufacturing up to the shipping of
materials to the SITE.
All data like material requisition references, PO number, Vendor, contractual and
latest expected delivery date, etc. are transferred to site through dedicated
software interfaces and are processed in the system.

Material Requisitions for Inquiry

The Material Requisitions (MR) or RFQ will contain, as applicable:

• the lists of materials to be purchased

• technical specifications
• technical requirements and standards
• any special engineering notes relevant to the manufacturing, erection and
operation
• QA/QC requirements
• inspection and test requirements
• the list of the required Vendor’s documents and drawings including
Manufacturer’s Data Books
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• the requirements for Erection & commissioning spares and two years
operating spare parts.
• the requirements for any special tool for erection and operation
• the requirements for site services to be assured by vendors.

Processing of Received Bids

Short-Listed Bids for Technical Bid Evaluation
At the expiry of the bid closing date and receipt of bids, the Procurement Manager,
define a Short List of Bidders, based on CONTRACTOR considerations.

Technical Bid Evaluation (TBE)

On the basis of the Bids received, the Discipline Project Leader will prepare the
Technical Bid Tabulation. The issuer of the Technical Bid Tabulation will point out,
with the necessary justifications, the Bids that can be accepted.

The final technical bid comparative tabulation, which shall state the technical
ranking of bids, will be released to the purchasing department to proceed with
commercial negotiations.

Commercial Bid Evaluation (CBE)

The preliminary Commercial Bid Evaluation shall be prepared by the Purchasing
Department on the basis of original quotations, amendments and/or final
quotations mentioned in the Technical Bid Tabulation.

Negotiation meeting with the bidders may be arranged in order to agree on open
technical and commercial issues and with an aim to obtain the best delivery and
price from the vendor.
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Award Recommendation
Upon conclusion of negotiations with Bidders and readiness of the final Commercial
Bid Evaluation, the same will be approved by the Project Manager. For minor items
and for non critical or continuous bulk-materials, or for Vendors already approved
for same kind of material, Project Manager’s approval may be optional.

• TCM Procurement Processes and team, using tools like Marian and SAP is fully and
vertically integrated with Procurement team of its’ 100% owned subsidiary
TECNIMONT MUMBAI OFFICE at Mumbai. Both teams located at two different
geographical locations have common access to systems which are vertically
integrated.
Items having a delivery period of 12 months or more would be identified as long
lead items (LLI).
Procurement Services for LLI would be lead by Project Coordinator located at
Mumbai, with full support from Procurement team at Milan. Discussions with vendor
- when required in person, with participation of OWNER would preferably be held at
TCM Milan.
• Revamp / Modification of Retained Rotary Machines would only be by OEMs.
Procurement team having executed such revamp / modification and well versed to
work with OEMs viz. GE, MDT, Siemens, KSB, BHEL for similar revamps would
provide Procurement services in coordination with OWNER and PEM.
• Insurance Spares requirement would be frozen during FEED stage taking in to
considerations - the recommendations from Vendor coupled with experience of
FEED CONTRACTOR on similar projects and depending upon the maintenance and
sparing philosophy of OWNER, in consultation with OWNER.
• 2 Year Operation Spares would be frozen taking in to considerations Vendor
Recommendations
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• Modification work on critical package viz. Primary Reformer which includes

Radiation, Convection and Heat recovery sections would be preferred to be carried
out with EPC order being placed on Contractors specialising in Primary Reformer
work. In case of reluctance by such Contractors, package can be broken down in
consultation with OWNER. The residual engineering work for Primary Reformer
would be carried out in close consultation with Licensor KBR.
• Ammonia Convertor retrofit execution cost estimation, where FEED CONTRACTOR
has considered that basket is proprietary supply by KBR, would be carried out with
specialised Contractor experienced in such work.

• Static Equipment identified to be modified with improved metallurgy e.g. Process

Air Compressor Intercoolers or Surface Condensers involving guarantees for overall
package would be preferred to be procured from OEMs. In case of offers not being
available from OEMs, other Exchanger manufacturers also can be contacted.
Other static equipment where guarantees for packages are not involved would be
procured from Approved Vendors in mutual consultation with OWNER.
• New Packages e.g. HVAC would be preferred to be procured from Package vendors
on EPC contract basis.
• New Package e.g. Anti Foam Injection Package would be preferred to be procured
from Package Vendor on EP basis.
• Replacement of Internals of static Equipment -would be preferred to be executed
on “supply plus field services supervision” work - in close coordination with Licensor
for ensuring performance of such equipment.

Detailed Procurement Execution Plan is attached as Attachment 1.

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CONTRACTOR IDENTIFICATION CODE
XXXX-XX-XX-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA &

Page 16 of 18 Rev.0
AMONIA REVAMP ARZEW, ALGERIA.

9.0 Construction Execution Strategy during FEED

General

The Construction Work will be managed by CONTRACTOR making best use of their
previous experience in successful completion of projects with similar quantum and
complexities.

Upon Contract award, a Construction Team will be formed, which will be composed
of persons with proven Construction experience. After careful review of all drawings
and specifications available, the Construction Team will prepare a detailed
Construction Execution Plan.

The Construction Team, supported by the Home Office Construction Organization,

will perform the necessary activities during the FEED phase, relevant to
Construction requirements in order to commence the Construction Works.

• In light of importance of safe and scheduled completion of work and considering

that major work would need to be executed in Operating Plant TCM foresees
Construction as major challenge. Site Survey and Constructability Study would
be a major thrust area. Construction Services would be lead by Construction
Team of TCM Milan with assistance and support coming in from TECNIMONT
MUMBAI OFFICE Construction team who have executed similar Revamp job in
recent past on Direct Contract basis. Construction Schedule study would be
driven by the outcome of constructability study.
 Annexure 1

FEED EXECUTION STRATEGY

CONTRACTOR IDENTIFICATION CODE
XXXX-XX-XX-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA &

Page 17 of 18 Rev.0
AMONIA REVAMP ARZEW, ALGERIA.

• Site establishment studies not limiting to studies for Construction Power, Water
and Air from OWNER or otherwise would be carried out in FEED period.
Constructability study would be carried out with specific reference to
o Carrying out civil work, piling (if required) in Existing plant area in
Operating Plant
o Steel Structure Work (if required on Retained Structure)
o New Equipment Erection while plant is in operation
o Replacement of Old Equipment during Hook Up Shut down
o Execution of Tie Ins
o Replacement of Old Pipe Lines with new especially in consideration of
schedule sought
o Heavy Lift work

• In light of variety of works involved viz. New equipment erection, retained

equipment modification / revamp, modification / replacement of existing
pipelines, Work involved in critical packages like Primary Reformer the
Construction execution plan and philosophy would be prepared.

• Construction works are preferred to be performed through subcontracts. Sub

contracting strategy would be discussed in mutual consultation with OWNER and
taking into consideration the complexity of work involved as an outcome of
constructability studies. Sub contracting plan would be prepared during FEED of
the Project by TCM Milan with assistance from TICB.

• Taking into consideration the availability of utilities and tie ins for utilities - in
mutual consultation with OWNER during FEED, philosophy for pre
commissioning activities viz. Heavy dependence on chemical cleaning or
otherwise, organizing utilities from sources other than plant sources would be
decided during FEED.
 Annexure 1

FEED EXECUTION STRATEGY

CONTRACTOR IDENTIFICATION CODE
XXXX-XX-XX-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA &

Page 18 of 18 Rev.0
AMONIA REVAMP ARZEW, ALGERIA.

• Work requisition are issued to local market in order to get quotations by

qualified subcontractors. The Home Office Construction and Subcontracting
team is in charge for the technical and commercial evaluation of the proposal
that will be the basis of the FEED cost estimate.

• OWNER guidelines to have minimum possible shut down for Hook Up and re-
commissioning would be tried to be achieved but the schedule for Hook Up shut
down would be defined during Constructability study during FEED period.
Detailed Construction Execution Plan is attached as Attachment 2.
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

Page 1 of 13 Rev.0
AMONIA REVAMP & ARZEW, ALGERIA.

PROCUREMENT EXECUTION PLAN

 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

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Contents

1 ABBREVIATIONS………………………………………………………………………………………………………….03
.

2 PROCRUEMENT ACTIVITIES………………………………………………………………………………………..04

3 PROJECT PURCHASING PROCEDURE AT HO……………………………………………………………...06

3.1 PROCESSING OF RECEIVED BID………………………………………………………………………………….07

4 CONTROL AND REPORTING………………………………………………………………………………….……..08

5 EXPEDITING AND INSPECTION GUIDELINES………………………………………………………………08

6 FIELD PROCUREMENT GUIDELINES…………………………………………………………………………….09

7 GENERAL ……………………………………………………………………………………………………………………...09

8 GUIDELINE FOR MACHINERY ITEMS NEED MODIFICATION/REPLACEMENT……………..10

9 GUIDELINE FOR PACKAGE ITEMS NEED MODIFICATION/ REPLACEMENT…………………10

10 GUIDELINE FOR STATIC ITEMS NEED MODIFICATION / REPLACEMENT ………………….10

11 POCOCUREMENT OF PACKAGES …………………………………………………………………………….…….11

12 PROCUREMENT OF LONG LEAD ITEMS (LLI)………………………………………………………………..11

13 SHIPPING GUIDELINES ………………………………………………………………………………………………..13

 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

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AMONIA REVAMP & ARZEW, ALGERIA.

1. ABBREVIATIONS

TCM Tecnimont S.p. A, Italy office

TICB Tecnimont ICB Mumbai, India Office (100% Owned subsidiary of
Tecnimont S.p.A- Italy)
OWNER FERTIAL SPA, ALGERIA
LICENSOR Kellogg Brown & Roots LLC (KBR)
CONTRACTOR Tecnimont S.p.A
PM Project Manager
PPM Project Procurement Manager
PPC Project Procurement coordinator
MR Material Requisition
PO Purchase Order
POR Purchase Order Recommendation
TBE Technical Bid Evaluation
CBE Commercial Bid Evaluation

2 PROCUREMENT ACTIVITIES
a) PROCUREMENT WORK FLOW

In performing the procurement activities, Bidder will adopt its own internal
procedures and work practices. This strategy shall deliver a high working efficiency
through the use of well-known and consolidated working methodologies. The
procurement cycle workflow normally adopted for EPC Contract execution is indicated
below:
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

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AMONIA REVAMP & ARZEW, ALGERIA.

TYPICAL FLOW CHART FOR COMPLETE PROCUREMENT CYCLE

In execution of FEED Contract, PPM will receive MRs from Engineering and with the help of
Buyers MRs will be issued to potential Vendors and/or OEM through FTP Server. MARIAN
and SAP USE is only indicated to be used during EPC Contract execution and will not be
used during FEED execution.
Procurement will expedite receipt of offers from the Vendors. Offer received will be
shortlisted and will be forwarded to Engineering for technical evaluation. Vendors will be
contacted for any technical clarification prior to issue of TBE. Subsequently CBE will also
be completed.
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

Page 5 of 13 Rev.0
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b) PROJECT VENDOR LIST

Typically KBR pre defines approved vendors for some of equipment or items or packages.
Such approved Vendor List is expected to be received from OWNER on Zero Date of FEED
Contract award.

If KBR has not defined any Vendor List for the PROJECT then FEED CONTRACTOR would
propose Vendor List for such equipment / items based on its’ experience of working with
KBR on similar Projects for approval by OWNER. Approval of proposed Vendor List is
expected from Owner within 7 days of submission. Pre Approval of proposed Vendor List
by KBR for proceeding with Procurement Services during FEED is not foreseen by BIDDER.

For other equipment / items FEED Contractor would submit proposed Vendor List.
Approval of such proposed Vendor List is expected within 7 days of submission to the
OWNER.

CONTRACTOR will inquire with Vendors as per the proposed vendor list. During execution
of FEED additional vendors can also be proposed by FEED Contractor for approval by
OWNER.

Consolidated Vendor List shall be submitted as deliverable of FEED.

c) PROCUREMENT SCHEDULE

The procurement schedule will be developed in line with the master project schedule. The
procurement schedule will take into account the following key factors:

• Vendor drawing issue as per engineering schedule

• Vendor delivery schedule, capabilities and past references
• Available schedule float
• “Required At Site” dates
• Average transportation time, from point of origin up to port, and inland transportation
up to job Site, including customs clearance time.

d) CRITICAL ITEMS

During FEED Stage, CONTRACTOR will focus on certain items of equipment, which, due to
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

Page 6 of 13 Rev.0
AMONIA REVAMP & ARZEW, ALGERIA.

their complexity and/or long delivery time, must be ordered on Vendors of repute and
more carefully monitored during design/fabrication till delivery at site during EPC Stage.

3 PROJECT PURCHASING PROCEDURE AT HO

Procurement Services during FEED Stage will be executed according to CONTRACTOR’s

corporate procedures and working software. Dedicated procedures will be issued for the
project based on the above and also to take into account the particular requirements of
Contract during EPC Stage.

Bidder’s Procurement System is mainly based on standard database running under

Microsoft environment. Such Information System shall allow the tracking of procurement
activities from HO and SITE during EPC Contract execution.

All data like material requisition references, PO number, Vendor, contractual and latest
expected delivery date, etc. are transferred to site through dedicated software interfaces
and are processed in the system during EPC Contract execution.

a) MATERIAL REQUISITIONS FOR INQUIRY

The Material Requisitions (MR) or RFQ will contain, as applicable:

• the lists of materials to be purchased

• technical specifications
• technical requirements and standards
• any special engineering notes relevant to the manufacturing, erection and operation
• QA/QC requirements
• inspection and test requirements
• the list of the required Vendor’s documents and drawings including Manufacturer’s Data
Books
• the requirements for Erection & commissioning spares and two years operating spare
parts if any specified
• the requirements for any special tool for erection and operation
• Requirement for site services to be assured by vendors.
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

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3.1 PROCESSING OF RECEIVED BIDS

a) SHORT-LISTED BIDS FOR TECHNICAL BID EVALUATION

At the expiry of the bid closing date and receipt of the required no. of bids, the
Procurement Manager, in agreement with Purchasing Department and PM, define a Short
List of Bidders, based on CONTRACTOR considerations.

b) TECHNICAL BID EVALUATION (TBE)

On the basis of the Bids received, the Discipline Project Leader will prepare the Technical
Bid Tabulation. The issuer of the Technical Bid Tabulation will point out, with the
necessary justifications, the Bids that can be accepted.

The final technical bid comparative tabulation, which shall state the technical ranking of
bids, will be released to the purchasing department to proceed with commercial
discussion.

c) COMMERCIAL BID EVALUATION (CBE)

The preliminary Commercial Bid Evaluation shall be prepared by the Purchasing

Department on the basis of original quotations, amendments and/or final quotations
mentioned in the Technical Bid Tabulation.

Negotiation meeting with the bidders may be arranged if required in order to agree on
open technical and commercial issues and with an aim to obtain the best delivery and
price from the vendor. This is in order to reach level up to “Ready for Purchase order
placement” for LLI item.

Involvement of OWNER will be as per the FEED Contract agreement.

4 CONTROL AND REPORTING

The status of procurement services during FEED will be managed and reported by means
of Bid Enquiry Status Report.
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

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5 EXPEDITING AND INSPECTION GUIDELINES

No activities related to Expediting and Inspection are envisaged during FEED Contract
execution.

During EPC Contract execution a Project Expediting and Inspection Leader (PEIL),
reporting to the Project Procurement Coordinator shall be assigned to the project who
shall oversee all activities with respect the expediting and inspection.

In principle, CONTRACTOR will expedite and inspect Vendors according to its own
corporate procedures; however the project specific procedures will be issued at the
beginning of the project duly taking into account the ITB requirements.

To this purpose, CONTRACTOR will avail of its internal resources (especially for
expediting) as well as of fully qualified inspection agencies, which are approved for the
Contract. General coordination of such resources will be ensured by the Project Expediting
and Inspection Coordinator, who belongs to the project team.

For all the major orders, CONTRACTOR shall arrange Pre Inspection Meetings with the
vendors in order to review all issues relevant to inspection.

CONTRACTOR shall take into account the OWNER request of Third Party Inspection and
while finalizing the Inspection and Test Plans and relevant schedules shall take into
account the OWNER requirements to participate in the inspection activities.
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

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Expediting and Inspection plans and schedules, as well as the resulting reports will be
issued, kept updated and made available to OWNER for review.

6 FIELD PROCUREMENT GUIDELINES

No activities related to Field Procurement Guidelines are envisaged during FEED Contract
execution.

During EPC Contract execution, CONTRACTOR will perform Field Procurement activities
mainly for minor items and in order to procure goods to cover site shortages, if any, and
goods required for Punch List completion. Field Procurement activities will be managed by
site personnel or CONTRACTOR’s branches or affiliated companies in the area.

7 GENERAL

Critical discussions / negotiations / discussion with Vendor would be carried out at TCM
Milan office / TICB Mumbai office / Vendor’s Premises / Site as per the CONTRACTOR
requirements.

8 GUIDELINES FOR MACHINERY ITEMS NEED MODIFCATION/REPLACEMENT

CONTRACTOR will approach to OEMs for modification work or replacement for the item
such as Air Compressors, Condensing Turbines, Feed Gas Compressor, Synthesis Gas
Compressors and its Turbines, Back pressure Turbine, ammonia Product Pump & Motor,
Condensate Transfer Pump & Motor, Tempered water circulating Pump & Motor and etc.
Approaching OEM is in order to have guaranteed performance of the item. Requirement
of Commissioning spares etc. will also be reviewed and taken care.
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

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9 GUIDELINES FOR PACKAGES NEED MODIFCATION/REPLACEMENT

CONTRACTOR will approach to qualified approved contractors for modification work or

replacement for the item such as various parts of Primary Reformer, in order to have
guaranteed performance of the item.

This kind of work would be preferred on EPC basis in close coordination with Licensor and
complete detailed engineering. Requirement of Commissioning spares etc. will also be
reviewed and taken care.

10 GUIDELINES FOR STATIC ITEM NEED MODIFCATION/REPLACEMENT

CONTRACTOR will approach to OEMs wherever required for modification work or

replacement for the item e.g. Inter stage coolers for Air Compressors or such items where
performance guarantees for package are called for. Requirement of Commissioning
spares etc. will also be reviewed and taken care. For other static items requiring
modification/replacement Contractor would follow the approved Vendor List.

11 PROCUREMENT OF PACKAGES

CONTRACTOR would prefer to source Packages on EPC or EP basis in order to have single
point responsibilities and better coordination. For e.g. HVAC Package. Approach for other
Packages will be decided on case to case basis in consultation with OWNER during FEED
Stage.

12 PROCUREMENT OF LONG LEAD ITEM (LLI)

Item with delivery period equal or above 12 months will be considered as Long Lead
item. At present based on our past experience the Long Lead Item (LLIs) identified are
as follows;
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

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AMONIA REVAMP & ARZEW, ALGERIA.

SR.
ITEM CODE ITEM DESCRIPTION
NO.

1 110-CA/CB CO2 Stripper OVHD Condenser

2 127-CA/CB Refrigerant Compressor Condenser
3 109-C Lean / Rich Solution Exchanger
4 114-C Methanol Effluent BFW Heater
5 116-C Syngas Compressor Interstage Cooler
Ammonia Converter Feed / Effluent
6 121-C
Exchanger
Ammonia Converter Effluent / BFW
7 123-C
Exchanger
8 127-CC Refrigerant Compressor Condenser
Ammonia Converter Effluent / Cooling Water
9 1124-C
Cooler
10 1131-C LTS Effluent Cooler / BFW Preheater
11 130-C Feed Gas Compressor Kickback Cooler
Syngas Compressor Suction / Chilled Water
12 1132-C
Exchanger
13 1133-C Natural Gas Preheater
Ammonia Converter Effluent / Chilled Water
14 1134-C
Cooler
15 1135-C Desulfurizer Feed / Effluent Interchanger
16 1145-C Stripped Process Condensate / Cooling Water
17 1150-C Make-up Gas Wash Exchanger
2001-
18 Sea Water / Fresh Water Exchanger
CG/CH/CI/CJ
19 2001-CI/CJ Sea Water / Fresh Water Exchanger
20 101-F Steam Drum
21 1107-F Secondary reformer Transfer Line
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

Page 12 of 13 Rev.0
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SR.
ITEM CODE ITEM DESCRIPTION
NO.
22 1132-J/JS BFW to FG Saturator Pumps (incl. driver)
23 1132-LA/LB Chilled Water Unit
24 Air Compressor Package
25 Synthesis Gas Compressor Package
26 Ammonia Refrigeration compressor Package
27 Feed Gas Compressor Package
28 2004-J/JS Tempered Water Circulating Pump
29 102-U Condensate Polishing Unit
30 HVAC HVAC Package for New Control Room
31 101-B Primary Reformer Package
32 103-D Secondary Reformer Burners
33 Backend flare package
34 Sea water Pump
35 Instrument Air Compressor Package
36 Desalination Unit
37 DEMI water package
38 Cooling water package
39 Condensate Polisher package
40 Nitrogen generation unit
41 Boiler
42 Ammonia vertical transfer pump
43 Cooling pump
44 Loading Arm
45 Feed gas recompression unit

Procurement services activities for above would be dependent upon the development of
Engineering during FEED stage.
 Attachment 1 to Annexure 1

Procurement Execution Plan

CONTRACTOR IDENTIFICATION CODE
xxxx-xx-xx-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA

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During execution of the FEED Contract LLI list will be reviewed again based on feedback
received from various suppliers and accordingly LLI list will be finalised.

The main goal of FEED is to define and execute the FEED in such a way so as to allow
OWNER, after completion of FEED to be ready to immediately release Purchase Orders for
LLI item.

The aim of the strategy for the early placement of LLI item is to reduce the duration of
the Project by minimising the delay in the Procurement Phase.

This concept will be aligned with detail schedule to be submitted as deliverables of the
FEED. The CONTRACTOR will identify all LLIs according to the schedule of Project to be
developed.

The CONTRACTOR shall develop Engineering and Procurement services for the LLIs up to
level of “Ready for Purchase Order placement”. Bidders Binding offer will have validity of 3
months from End date of FEED. These Binding offers will be deliverable of the FEED.

A carefully market survey will be performed to identify potential VENDORs for these
items. Considering the very tight project schedule, the award of PO within the required
time period is mandatory in order to contribute to the successful completion of the
PROJECT.

13 SHIPPING GUIDLINES

No activities related to Shipping envisaged during FEED Contract execution.

 Attachment 2 to Annexure 1

CONSTRUCTION EXECUTION CONTRACTOR ID. CODE

PLAN FOR FEED
xxx-xx-xx-0001
PROJECT: THE REVAMP OF THE KELLOGG-DESIGN
AMMONIA PLANTS AND RELATED FACILITIES
LOCATION : Algeria Sheet 1 of 6 Rev-0

CONSTRUCTION EXECUTION PLAN

 Attachment 2 to Annexure 1

CONSTRUCTION EXECUTION CONTRACTOR ID. CODE

PLAN FOR FEED
xxx-xx-xx-0001
PROJECT: THE REVAMP OF THE KELLOGG-DESIGN
AMMONIA PLANTS AND RELATED FACILITIES
LOCATION : Algeria Sheet 2 of 6 Rev-0

CONTENTS

1.0 SCOPE ......................................................................................................... 3

2.0 DEFINITIONS.............................................................................................. 3

3.0 A BRIEF ABOUT THE PROJECT ..................................................................... 3

4.0 HOME OFFICE CONSTRUCTION ACTIVITIES ................................................ 3

5.0 SUB-CONTRACTORS SELECTION ................................................................. 4

6.0 CONSTRUCTABILITY STUDY ........................................................................ 4

6.1 GENERAL CONSIDERATIONS .................................................................................. 4
6.2 SITE SURVEY ................................................................................................... 5
6.3 CONSTRUCTABILITY STUDIES................................................................................. 5
6.4 STUDY OF HEAVY/CRITICAL LIFTS .......................................................................... 5
6.5 SCHEDULE ...................................................................................................... 5

7.0 TIC ESTIMATE ............................................................................................. 5

8.0 REPORT BY CONSTRUCTION ....................................................................... 6

 Attachment 2 to Annexure 1

CONSTRUCTION EXECUTION CONTRACTOR ID. CODE

PLAN FOR FEED
xxx-xx-xx-0001
PROJECT: THE REVAMP OF THE KELLOGG-DESIGN
AMMONIA PLANTS AND RELATED FACILITIES
LOCATION : Algeria Sheet 3 of 6 Rev-0

1.0 SCOPE

Scope of this document is to provide general write up on the construction strategy

employed for FEED works for the Revamp of Kellogg-Design Ammonia Plants and
Related Facilities of M/s Fertial at Algeria North Africa.

2.0 DEFINITIONS

CONTRACTOR TECNIMONT S.p.A ITALY (TCM)

TICB 100% owned subsidiary of TCM

OWNER FERTIAL SPA

PROJECT THE REVAMP OF THE KELLOGG-DESIGN AMMONIA PLANTS
AND RELATED FACILITIES.
SUBCONTRACTOR AGENCY APPOINTED BY CONTRACTOR

3.0 A BRIEF ABOUT THE PROJECT

The scope of the project is to revamp two nos. 1000 TPD Ammonia PLANTS to 1500
TPD, one at Annaba and one at Arzew. The works mainly cover the following.
• Revamp of the ISBL Ammonia PLANTS
• Utilities and Off-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 at Arzew, one at Annaba)
• Two new ammonia pipelines & two new ammonia-loading arms.
• Modification of the existing above ground ammonia pipeline from SITE to Annaba
Port to be replaced by new underground piping.
• Fire and Gas system upgrade
• Leakage Early Detection system for critical ammonia lines.

The FEED Package will consist of 17 execution packages as enumerated in the ITP
document.

4.0 HOME OFFICE CONSTRUCTION ACTIVITIES

The Construction Engineering Works is managed by a dedicated department at Home
Office who will carry out Services for preparation of deliverables to be submitted by
Construction for FEED Package.

On award of Contract, Site survey work shall be done in the initial phase. Information
required to perform Constructability studies, prepare TIC estimate and compile other
deliverables of the FEED package shall be assimilated during the survey.
 Attachment 2 to Annexure 1

CONSTRUCTION EXECUTION CONTRACTOR ID. CODE

PLAN FOR FEED
xxx-xx-xx-0001
PROJECT: THE REVAMP OF THE KELLOGG-DESIGN
AMMONIA PLANTS AND RELATED FACILITIES
LOCATION : Algeria Sheet 4 of 6 Rev-0

Subsequently, on receipt of data from Engineering depts., the following works shall be
performed.

• Identification of Heavy/Critical Lifts.

• Heavy Lifting Schemes.
• Construction Schedule studies
• Construction Subcontractor Qualification
• Work Requisitions shall be prepared for various Construction Subcontracts where
required. Construction Enquiries shall be floated in the market, offers obtained
and carefully evaluated.
• Preparation of Construction Cost for TIC estimate.
• Give inputs to the following studies

o Plot plan finalization

o Safety studies
o Construction sequencing w.r.t. Engineering and Procurement deliverables

These are further elaborated below.

5.0 SUB-CONTRACTORS SELECTION

Subcontractors shall be selected based upon Contractor’s assessment of the capacities
& capabilities of SUB-CONTRACTORS, their ability to mobilize manpower, Equipment &
construction materials and the technical and schedule requirement of the Project.
The proposed sub-contractors shall fulfill the qualification requirements of
CONTRACTOR and the approval requirements of Owner.

6.0 CONSTRUCTABILITY STUDY

6.1 General Considerations

During the execution of FEED Contract, an assessment will be carried out of the
site conditions, construction sequences, heavy lifts, assessment of required
crane capacity, availability of cranes for heavy lifts, option for pre-cast, modular
structure etc.
A detailed study to assess the activities that can be carried out in the pre/post
shutdown stage and during shut down will be done to minimize the work to be
carried out during shutdown.
 Attachment 2 to Annexure 1

CONSTRUCTION EXECUTION CONTRACTOR ID. CODE

PLAN FOR FEED
xxx-xx-xx-0001
PROJECT: THE REVAMP OF THE KELLOGG-DESIGN
AMMONIA PLANTS AND RELATED FACILITIES
LOCATION : Algeria Sheet 5 of 6 Rev-0

6.2 Site Survey

A detailed site survey will be carried out to gather information on the feasibility
and sequencing of the erection of equipment’s, piping , routing , tie inns ,
survey of transport facilities , logistics , temporary facilities etc as well as
sourcing of local contractors and the assessment of their capabilities.

6.3 Constructability studies

Evidence gather from the site survey will be used to carried out constructability
studies, which will involve interdisciplinary meetings, plot plan reviews, heavy
lifts study, erection sequence, tie -inns, routings, pre shutdown activities,
shutdown and post shut down activity.

6.4 Study of Heavy/Critical Lifts

Detailed study will be carried out to ascertain requirement of Heavy cranes if
any for Heavy/Critical Equipments. In such cases Erection schemes detailing
the capacity, type of crane, placement of cranes etc. will be prepared.
Alternative Erection methods using sliding equipment etc. shall also be explored
and evaluated. Depending on the comparative evaluation of the various
methods, CONTRACTOR will select the most suitable scheme for each critical
lift.

6.5 Schedule
“Feasibility” studies will be prepared for various critical site activities, including
concrete works, structural steel fabrication & erection, equipment erection,
piping fabrication & erection, tie inns, instrumentation installation and electrical
installation. The feasibility studies are an analysis based on the availability of
drawings, materials required for achieving the schedule for the Project based on
feasibility studies.

7.0 TIC ESTIMATE

On receipt of data from Engineering Dept., Construction Enquiries shall be prepared for
various Construction Subcontracts. Information collected during site survey shall be
incorporated in the Enquiries. The Enquiries shall be floated in the market to identified
Subcontractors.
Their offers shall be carefully scrutinised to ascertain compliance to tender conditions.
TIC Estimates shall be prepared considering Subcontractors costs and any other costs
like provision of land for temporary facilities, labour camps, prefabrication workshops,
accommodation for staff of EPC contractor and Subcontractors, costs of Logistics etc. &
any other specific requirements.
 Attachment 2 to Annexure 1

CONSTRUCTION EXECUTION CONTRACTOR ID. CODE

PLAN FOR FEED
xxx-xx-xx-0001
PROJECT: THE REVAMP OF THE KELLOGG-DESIGN
AMMONIA PLANTS AND RELATED FACILITIES
LOCATION : Algeria Sheet 6 of 6 Rev-0

8.0 REPORT BY CONSTRUCTION

A comprehensive report shall be prepared and submitted as a part of FEED package.
The report shall provide an insight into the critical areas and requirements of
construction.
The report shall mainly consist of the results of Constructability study including
schemes for Heavy/Critical Lifts where applicable, list of important pre/post shutdown
activities and Construction Subcontractor Qualification report.
 Annexure 2

SCHEDULE AND ASSUMPTIONS

CONTRACTOR IDENTIFICATION CODE
XXXX-XX-XX-00001

PLANT: 1500MTPD CLIENT : FERTIAL LOCATION: ANNABA &

Page 1 of 14 Rev.0
AMONIA REVAMP ARZEW, ALGERIA.

SCHEDULE AND
ASSUMPTIONS
 Annexure - 2

THE FRONT END ENGINEEERING DESIGN PACKAGE (FEED)

REVAMP OF THE KELLOGG-DESIGN AMMONIA PLANTS AND RELATED
FACILITIES
FERTIAL ANNABA AND ARZEW SITES, ALGERIA

SCHEDULE BASIS & ASSUMPTIONS:

The following are the qualifying assumptions considered by bidder while preparing
the schedule;
GENERAL
a) FEED Award (ZERO DATE) is considered as 07-Aug-2015
b) 5 Days/week calendar is considered for preparing schedule.

ENGINEERING
a) It is assumed that the Equipment Layout and Piping GAD’s for existing ANNABA
& ARZEW plants are available to Bidder on ZERO Date.
b) All inputs/documents for OSBL (EDP Packages delivered by others) shall be
made available during the KOM planned in the 3rd week.
c) 3D laser scanning and 3D model is not required for FEED. 3D Laser scanning
would be required during EPC Phase and quotes from 3D Laser Scanning
agencies shall be invited to build up TIC.
d) Vendor List shall be agreed upon and finalized in the 2nd week.
e) Equipment with more than 12 months of delivery time is considered as Long Lead
Items. Following items are considered as Long Lead Items,
ANNABA
Equipment No. Equipment Description
Static Equipment
110-CA/CB CO2 Stripper OVHD Condenser
127-CA/CB Refrigerant Compressor Condenser
109-C Lean / Rich Solution Exchanger
114-C Methanol Effluent BFW Heater
116-C Syngas Compressor Interstage Cooler
121-C Ammonia Converter Feed / Effluent Exchanger
123-C Ammonia Converter Effluent / BFW Exchanger
1124-C Ammonia Converter Effluent / Cooling Water Cooler
1131-C LTS Effluent Cooler / BFW Preheater
130-C Feed Gas Compressor Kickback Cooler
1132-C Syngas Compressor Suction / Chilled Water Exchanger
1133-C Natural Gas Preheater
Ammonia Converter Effluent / Chilled
1134-C
Water Cooler
1135-C Desulfurizer Feed / Effluent Interchanger
1145-C Stripped Process Condensate / Cooling Water
1150-C Make-up Gas Wash Exchanger
2001-CI/CJ Sea Water / Fresh Water Exchanger
101-F Steam Drum
1107-F Secondary reformer Transfer Line
Machinery and Packages
1132-LA/LB Chilled Water Unit
101-J Air Compressor

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 Annexure - 2

THE FRONT END ENGINEEERING DESIGN PACKAGE (FEED)

REVAMP OF THE KELLOGG-DESIGN AMMONIA PLANTS AND RELATED
FACILITIES
FERTIAL ANNABA AND ARZEW SITES, ALGERIA

ANNABA
Equipment No. Equipment Description
101-JC1/JC2/JC3 Air Compressors Interstage Coolers
1101-L Air Filter (self cleaning type)
101-JT Condensing Turbine for 101-J
104-L Steam Condenser for 101-JT
113-J/JS Condensate Transfer Pump for 104-L (incl. 113-JM/JSM)
101-JF1/JF2/JF3 Air Compressors Interstage Coolers KO Drum
103-J Synthesis Gas Compressor
116-C Syn Gas Compressor Interstage Cooler
103-JT Back Pressure and Condensing Turbine for 103-J
106-L Steam Condenser for 103-JT
105-F Synthesis Gas Compressor 1st stage separator
105-JT Condensing Turbine for 105-J (Ammonia Comp.)
111-L Steam Condenser for 105-JT
2004-J/JS Tempered Water Circulating Pump (incl. spare & 2004-JM/JSM)
102-J Feed Gas Compressor
102-JT Back Pressure Turbine for 102-J (Feed Gas Compressor)
102-U Condensate Polishing Unit
HVAC Package for New Control Room
Re-harp radiant section
Arch Burners
Mixed Feed Coil
Process Air Heater Coil
101-B
Hot Steam Superheater Coil
NG Feed Preheat Coil
Feed Gas Saturator Coil
Aux. Boiler Burners
Primary Reformer Transfer Line
107-D
Refractories for Primary reformer Convection section
Refractories for Secondary Reformer including Alumina hexagonal tiles,
103-D
circle bricks, ballast balls ,catalyst dome etc.
103-D Secondary Reformer Burners
Backend flare package
Boiler

ARZEW
Equipment No. Equipment Description
Static Equipment
110-CA/CB CO2 Stripper OVHD Condenser
109-C Lean / Rich Solution Exchanger
114-C Methanol Effluent BFW Heater
116-C Syngas Compressor Interstage Cooler
121-C Ammonia Converter Feed / Effluent Exchanger
123-C Ammonia Converter Effluent / BFW Exchanger
127-CC Refrigerant Compressor Condenser
1124-C Ammonia Converter Effluent / Cooling Water Cooler

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 Annexure - 2

THE FRONT END ENGINEEERING DESIGN PACKAGE (FEED)

REVAMP OF THE KELLOGG-DESIGN AMMONIA PLANTS AND RELATED
FACILITIES
FERTIAL ANNABA AND ARZEW SITES, ALGERIA

ARZEW
Equipment No. Equipment Description
1131-C LTS Effluent Cooler / BFW Preheater
1132-C Syngas Compressor Suction / Chilled Water Exchanger
1133-C Natural Gas Preheater
Ammonia Converter Effluent / Chilled
1134-C
Water Cooler
1135-C Desulfurizer Feed / Effluent Interchanger
1145-C Stripped Process Condensate / Cooling Water
1150-C Make-up Gas Wash Exchanger
2001-CG/CH/CI/CJ Sea Water / Fresh Water Exchanger
101-F Steam Drum
1107-F Secondary reformer Transfer Line
Machinery and Packages
1132-LA/LB Chilled Water Unit
101-J Air Compressor
101-JC1/JC2/JC3 Air Compressors Interstage Coolers
1101-L Air Filter (self cleaning type)
101-JT Condensing Turbine for 101-J
104-L Steam Condenser for 101-JT
113-J/JS Condensate Transfer Pump for 104-L (incl. 113-JM/JSM)
101-JF1/JF2/JF3 Air Compressors Interstage Coolers KO Drum
103-J Synthesis Gas Compressor
116-C Syn Gas Compressor Interstage Cooler
103-JT Back Pressure and Condensing Turbine for 103-J
106-L Steam Condenser for 103-JT
105-F Synthesis Gas Compressor 1st stage separator
105-JT Condensing Turbine for 105-J (Ammonia Comp.)
111-L Steam Condenser for 105-JT
2004-J/JS Tempered Water Circulating Pump (incl. spare & 2004-JM/JSM)
102-U Condensate Polishing Unit
HVAC Package for New Control Room
Re-harp radiant section
Arch Burners
Mixed Feed Coil
Process Air Heater Coil
101-B
Hot Steam Superheater Coil
NG Feed Preheat Coil
Feed Gas Saturator Coil
Aux. Boiler Burners
Primary Reformer Transfer Line
107-D
Refractories for Primary reformer Convection section
Refractories for Secondary Reformer including Alumina hexagonal tiles, circle
103-D
bricks, ballast balls ,catalyst dome etc.
103-D Secondary Reformer Burners
Backend flare package
Sea water Pump
Boiler
Gas Turbine Duct Recovery Unit (Under UTIL package as recovery option)

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 Annexure - 2

THE FRONT END ENGINEEERING DESIGN PACKAGE (FEED)

REVAMP OF THE KELLOGG-DESIGN AMMONIA PLANTS AND RELATED
FACILITIES
FERTIAL ANNABA AND ARZEW SITES, ALGERIA

ARZEW
Equipment No. Equipment Description
1T0101/ 1T0102/
1T0103 Ammonia vertical transfer pump
Loading Arm
Feed gas recompression unit

f) It is assumed that Technical requisitions/Data sheets provided by licensor are

sufficient to float in the market for Enquiry.
g) Engineering activity is not considered by BIDDER for items identified as
Proprietary equipment. Listed below
a) 1101-C : Waste heat Boiler
b) 122-C : Ammonia Converter Feed / Effluent Exchanger (integrated in 1105-D)
c) 1122-C1/C2 : Ammonia Converter Interchangers (integrated in 1105-D)
d) 1105-D : Ammonia Synthesis Converter radial basket retrofit
e) 1150-E : Unitized Syngas Dehydrator
f) 1150-C : Make-up Gas Wash Exchanger (integrated in 1150-E)
h) It is assumed that Bidder does not have to carry out any Engineering Services for
the Jetty where the two Loading Arms will be placed.

PROCUREMENT

a) Correspondence and agreements with OEMs shall be shared with bidder on

award of contract.
b) Owner shall provide the List of preferred subcontractors to bidder at ZERO Date.
c) For all the LLI items of Machinery/Packages that are to be modified, only OEM
would be contacted for evaluation/engineering/quotation.

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