OKFTZ Refinery Site requirements

Project Site:

The first phase of the scope of the Ondo State-Shayaz Petroleum Refinery in the OKFTZ will commence with site development covering Site Clearing, Site and Soil definition, Site Levelling, etc.

The next phase of site development will cover Pre-Construction of Process Area, Tank Foundations and Foundations for Pre-Engineered Project Buildings. The final phase will cover the Installation and Start-up of Plants & Machinery, shipped in Modular forms from Ventech's Facilities in Pasadena, Texas.

Procurement Plan of Plants and Machinery:

Ventech will use a list of approved vendors and contractors when inquiring about equipment, materials and services. These suppliers must be stable and in business for several years, and must have successful records of accomplishment. Generally, a minimum of three suppliers will be inquired to encourage competition. All suppliers will be treated fairly and equally.

Ventech will maximize the purchase of equipment, materials and services in large quantities to obtain optimum price and delivery. Ventech will purchase far enough in advance to obtain the best quotes and to minimize last minute rushes.

Emphasis will be placed on "On Time Deliveries" and the use of suppliers who are familiar with Ventech procedures and specifications.

All supplier quotes will be received on a "sealed-bid" basis. When practical, Ventech will utilize "online" bidding practices to optimize price and deliveries. Purchased materials will be of high quality and will be reliable.

Ventech will expedite the receipt of critical vendor data and materials and will inspect and monitor critical hold points and witness points. Vendor shipments shall be inspected to ensure that procured materials are actually shipped.

Ventech will strive to maintain constant and thorough communications with suppliers in order to ensure accurate and complete fulfilment of orders. Commitment shall not be made to any supplier unless Ventech issues a formal, written purchase order.

Established and proven Ventech purchasing documents shall be utilized. Before orders are awarded to suppliers, the requisitioning engineer, buyer, purchasing manager, project engineer, project manager and company officer must approve the purchase to ensure accurate order placement.

All purchasing functions shall be executed by Ventech's home office purchasing department unless the project manager or company officer grants an exception. Utilizing a centralized purchasing department helps to maintain and properly control records and correspondences as well as increase volume-buying power, thereby reducing unit costs. Ventech will determine the amount of materials required to construct in Nigeria and will add a small percentage to the orders to allow for some drop and waste.

Ventech will maximize the standardization of material purchases. Suppliers selected by Ventech should have ISO certification and must understand and properly apply as required.

Ventech's purchasing department will uphold the highest ethics standards and will not accept gifts and gratuities. Ventech's suppliers will be responsible for confidential information, which must not be shared with those not associated with the purchase.

Ventech will supply all equipment and materials from the USA, with the following exceptions.

Civil materials, such as dirt, cement, sand, gravel, chippings, reinforcing bar and mesh, and wood forms will be purchased in Nigeria.

Some minor structural steel shapes, such as angle and flat bar.

Possibly air conditioners and fencing materials.

Ventech will monitor the percent of U.S. content of all orders and will obtain written statements from vendors stipulating the percent of U.S. content.

Freight Plan:

The Refinery Components will be delivered to the Refinery job site in three or more shipments. Ocean travel time between Houston and closest Nigerian Port is typically between three and four weeks.

The first shipment will consist of the following components:

Pre-Engineered Steel Buildings

· Bulk Underground Piping and Electrical Materials

· Bulk Tank Farm Steel

· Some Bulk Pipeline Materials

The second shipment will consist of the following components:

The balance of the pipeline components

The Process Units and associated Off-sites and Utility equipment and materials

A third shipment contains the main plants and machinery for installation and start-up.

Ventech will coordinate and/ or execute all activities associated with the transportation of equipment and materials from the USA to the job site, including:

Export Crating, including containers. Containers may be purchased (shipper owned) and left at site for various uses or they may be resold in Nigeria Alternately, they may be leased from the shipping company (liner owned)

Packing List, using Ventech's proprietary system Freight Forwarding

Form "M" / Intertek Testing Services / Pre-Shipment Inspection Insurance

Marine Surveys Required Documentation Ocean Freight

Port Clearances Inland Nigerian Freight

Ventech will determine the optimum port(s) of entry into Nigeria. Depending on costs, containers may be shipped to one port and break bulk cargo shipped to another. Possible ports of entry include Port Harcourt, Calabar, Lagos State Port (Ondo State Free Trade Zone).

Field Construction Plan:

Ventech will manage all field construction activities associated with the OKFTZ Refinery.

Modular fabrication techniques will be utilized throughout the project to maximize the use of U.S. Gulf Coast skilled labour in Houston and to shorten the field erection schedule as much as possible.

Early in the Project, the basic engineering design documents will be "frozen" to minimize alterations in Nigeria. Ventech will trial fit as many components as possible in Houston to minimize the amount of modifications at the OKFTZ Refinery Project Site.

Labour:

Ventech will hire field labour directly from the available local labour pool. All required unskilled labour would be hired from the local economy. Skilled labour, when available, will also come from the local economy. Not more than 10 Expatriates will fill skilled labour needs that cannot be filled by locals. Ventech understands that it is very important to utilize local labour as much as possible and will try to limit the number of expatriate labourers employed.

Materials:

After materials are received at site, they shall be properly stored I warehoused. Ventech will implement a materials management system to minimize wasted, misplaced and stolen materials and equipment. Proper security will be required to provide ensure effective security at the Site for both Materials and Refinery Personnel at all times.

Construction Wastes and Spoils shall be collected and properly disposed of. Construction of the refinery excludes the use of hazardous materials; therefore, the collection, handling and disposal of hazardous materials are not required.

Construction Equipment and Tools:

Ventech will use construction equipment and tools, as required, from local companies. Equipment that is not available from the immediate economy will be rented from surrounding markets, such as Port Harcourt and Lagos. Ventech will balance equipment availability and price to ensure economical selections. The construction equipment will include, but not be limited to cranes, man-lifts, scaffolding, welding machines and associated equipment, lighting, small tools and consumables, etc. Ventech may import tools that may be difficult to obtain in Nigeria.

To decrease the construction equipment rental costs, Ventech will minimize the time that large construction equipment is on the job sites. The largest equipment will be needed to set the modules and towers. The pipe racks may be fabricated and filled with pipe in Houston and large cranes may be needed to erect these components.

In addition, Ventech will plan the use of the large construction equipment so that double handling of heavy lifts will not be needed. Upon arrival at the refinery site, most of the heavy lift pieces will be lifted off the truck and placed directly on their foundations.

Communications:

Ventech will research and install the optimum communication systems needed at the project site. These will include international voice and data communication capabilities as well as voice communication capabilities between the project site and the surrounding areas.

First Aid:

On- site first aid will be provided to handle minor injuries. However, in the case of major injury or illness, it will be handled by the consulting hospital or in-house clinic in the OKFTZ site.

Security:

Security will be supplied at all locations, including:

· Refinery Site

· Pipeline Route

· Expatriate Housing Compound

· Port( s) of Discharge

· Transportation of Refinery Components from Port(s) of Discharge to Destination

· Expatriate travels in Nigeria

Construction Water and Power:

Construction water will be provided either by temporary wells located on-site or by permanent operating wells located on-site. Temporary construction power will be provided by rented diesel driven generators, readily available in Nigeria.

Surface Water and Ground Water:

All water encountered either rainwater (surface water) or water from the underground water table (ground water) will be removed from the site. Rainwater may be diverted away from the site via reshaping the natural contour of the land. Ground water, if encountered, may be pumped away from the site. Deluge rains may prevent certain construction activities from occurring as planned. Methods of handling the water on the pipeline route will be determined after the route is determined and a survey is completed.

Construction Plan: The general construction sequence is as follows:

Site Preparation, Civil Works, Assemble Buildings, Set Equipment

Piping installation, Electrical and Instrumentation Works, Protective Coatings

Mechanical Completion and Commissioning

Refinery Operations Training Plan:

General:

The operations employees of the OKFTZ Refinery will be trained to properly and safely start-up, operate and shutdown the refinery facilities.

Qualified engineering and operations personnel who have refinery process, mechanical and instrumentation experience will provide training. The training program may be conducted at the refinery, at the engineering contractor's office, at the DCS manufacturer's training facility or at a combination of these locations. The duration of the training procedures will vary depending on the training location(s). In addition, the operators- in-training should be at the refinery for an extended period during pre-commissioning activities, commissioning activities, start-up activities and normal operations helping to solve real time operations problems, alongside the training personnel.

Operating Manual:

A Refinery Operating Manual will be provided to operations personnel for their reference during the training sessions and for their use during operations. The Manual will include the topics listed below, including commissioning, start-up, and operating and shutdown instructions.

Ancillary Facilities:

The, OKFTZ Shayaz Refinery will consist of the following major units, areas and systems:

1. Crude Fractionation Units, with integral Desalter and Naphtha Stabilizer

2. Tank Farm and Truck Loading Facility

3. Pipeline Operations

4. Hydrotreater/Catalytic Reformer

5. Electric Power Generation

6. Diesel Fuel Oil Distribution System

7. Plant Air/Instrument Air

8. Raw Water Supply, Filtration and Softening

9. Boiler Chemical Addition

10. Boiler

11. Cooling Tower

12. Flare

13. Liquid Effluent Collection and Treating

14. Fire Protection

15. UPS/DCS/Control Room

16. Communication Systems and Alarm

Date: 2015-01-29; view: 1049