Painting Services for Onshore Facilities Tender No.

HQ615SS19

Instructions to Bidders
for
Painting Services for Onshore Facilities

Aramco Gulf Operations Company Limited (“AGOC”) and Kuwait Gulf Oil Company
(K.S.C.) ("KGOC"), jointly operating at and from Al-Khafji, Saudi Arabia, for oil and gas
exploration, development and production in the offshore area of the divided ex-Neutral
Zone between Saudi Arabia and Kuwait ("Al-Khafji Joint Operations") hereby call for
tenders for the performance of the captioned work, and request each intending bidder to
make his proposal in strict compliance with the following instructions;
1. Eligibility of Bidder

1.1 The bidder must be a commercial entity organized and existing under the
laws of Saudi Arabia or Kuwait, and registered at the Chamber of
Commerce of either country, or a Saudi or Kuwait national with an
establishment on his name, qualified to undertake commercial
transactions under the laws of his country, and registered at the Chamber
of Commerce there.

In the event the bidder is non-Saudi / non-Kuwaiti (“foreign bidder”), he

shall have a Foreign Investment License issued by The General
Investment Authority pursuant to the Foreign Investment Act of Saudi
Arabia (enacted by Royal Decree No. M/1 dated 5/1/1421H) at the time of
bid closing, or he shall be in compliance with the rules and regulations of
foreign investment in Kuwait.

Notwithstanding the foregoing provision, for the purpose of submitting his

tender, the bidder who does not have a Foreign Investment License at the
time of bidding, may assign a Saudi/Kuwaiti representative and provide
such representative’s name, address, fax and phone numbers along with
his tender submissions. If such bidder becomes the successful bidder, he
shall be required to submit to AGOC/KGOC a Temporary Foreign
Investment License within three (3) weeks of the date of the Letter of
Intent issued to him by AGOC/KGOC. Such bidder shall not be allowed to
sign the Contract without submitting to AGOC/KGOC the said Temporary
Foreign Investment License. Failure to submit the Foreign Investment
License shall render the Letter of Intent issued pursuant to Sub-Article 7.3
hereof null and void.

1.2 The bidder must qualify to lawfully undertake the work required under the
intended contract ("Contract") on his account at the time of bidding and

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throughout the duration of the Contract. The bidder must also have
sufficient experiences in satisfactory prosecution of work similar to those
required under this Tender.

1.3 The bidder shall have the financial, technical and administrative resources
and capabilities sufficient to satisfactorily and timely commence, carry out
and complete the entire works and services under the Contract by himself.

In this regards, the following are required as the prerequisite conditions for
the eligibility of the bidder:

(i) The bidder shall be active for last (5) years in the field of industrial
garnet blasting, painting and application of corrosion protection
coatings, and

(ii) Experience of at least one (1) contract for provision of industrial

garnet blasting, painting and application of corrosion protection
coatings continuously at a designated place for a period not less
than one (1) year and for a value not less than US$200,000.00
within the last (5) years.

1.4 Notwithstanding the provisions of item 1.3 hereof, when certain portion(s)
of the work is required to be subcontracted, the bidder shall propose his
nominated subcontractors for such portion(s) for AGOC/KGOC’s approval
provided that the bidder shall nevertheless carry out the essential portion
of the services by way of his own resources and capabilities.

If the tender documents specify or nominate subcontractors, the bidder

shall propose to subcontract such portion(s) of the works and services as
may be specified to such subcontractors in compliance with the
requirements set out herein.

For making his proposal on subcontracting, the bidder shall refer and
conform to item 4.3.10 hereof.

1.5 All proposed subcontractors shall qualify to lawfully undertake the

subcontracted portion of the services, be well experienced, and by
themselves actually carry out such work through their own resources and
capabilities.

2. Tender Documents

2.1 For this Tender, the following documents are issued;

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(a) Instructions to Bidders (this document) with the Price Proposal

Form (Bid Form 1) and the Qualification Proposal Forms (Bid
Forms 2 to 8).
(b) Sample of bank guarantees (Bid Bond, Mobilization Bond and
Performance Bond)

(c) Form of Agreement with its Exhibits, namely;

Exhibit A General Terms and Conditions
Exhibit B Scope of Service
Exhibit D Safety, Health and Environmental Requirements
Exhibit E Settlement of Disputes, Arbitration and Choice of Law
Exhibit F Taxes, Duties and Related Obligations
Exhibit K Undertaking on Conflict of Interest
Exhibit Q Quality assurance & Control, Inspection & Testing

2.2 The bidder shall carefully study and fully understand the intents and
contents of the above listed documents, particularly the terms and
conditions of the Contract, no provisions of which shall be negotiable by
the bidder, and, in making the proposal for this Tender, the bidder shall
refer only to the above listed documents.

Misinterpretation of or deviation from the intents and contents of the above

listed documents or reference to any other sources of information and
data on the part of the bidder shall in no event be entertained.

2.3 The bidder shall not disclose or divulge any part of the said documents or
any information or data contained therein to any third party. Should the
bidder, for preparing his proposal hereunder, need to disclose such
documents, information or data to third party(ies) including his associates
and subsidiaries and the intended subcontractors, he shall give
AGOC/KGOC a prior written notice specifying the party(ies) to whom such
disclosure will be made and the documents, information and data to be
disclosed, for AGOC/KGOC's approval.

3. Prerequisite Conditions

3.1 Knowledge of the Circumstances

The bidder shall, in the course of preparation of his proposal, examine and
familiarize himself with the nature of the work required of him to carry out
under the Contract, the location and peculiarities of the place of such work
including the relevant facilities, utilities, and equipment of AGOC/KGOC,
the general and particular characters, qualities and quantities of
equipment, tools, materials, supplies, facilities, utilities, vehicles,

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personnel and labor required preliminary to and during prosecution of the

said work, and all other matters which could affect such work under the
Contract.

The bidder shall also fully study, examine and be familiar with all laws and
regulations including the ministerial orders, regulations and decrees
applicable under the jurisdiction of Saudi Arabia and Kuwait and any other
countries which will be the sources of any of his provisions required to
perform the Contract.

Failure by the bidder to have familiarized himself with the above said
matters or to have reasonably discovered any matters which affect the
contemplated services shall be entirely his responsibility and any request
for compensation in this regard shall not be entertained.

3.2 Pre-Tender Meeting and Site Visit

In order to assist prospective bidders in preparation of their proposals, the

following procedure shall be followed after the issue of the complete set of
tender documents:

3.2.1 Pre-Tender Meeting will be held at KJO Auditorium, Office Park

Building, at Al-Khafji Joint Operations, Saudi Arabia, at 10:00
a.m. local time on 17-June-2019 in order to:

- review and explain the nature and scope of the works and
services,
- ensure that all bidders have received the ITB documents,
- review all ITB documents,
- answer bidders questions, and
- discuss details of the Site Visit

AGOC/KGOC will issue a certificate of Pre-Tender Meeting to the

bidder who attended the required Pre-Tender Meeting, which shall
be submitted with his proposal for this Tender. Any bidder who
fails to attend the said Pre-Tender Meeting is automatically
disqualified for the bidding of this Tender.

3.2.2 A Site Visit will be conducted after the pre-tender meeting. Bidders
are required to visit the site to ascertain pertinent local conditions,
such as accessibility, general character and adjacent facilities of the
site and to perform any other evaluation as necessary to be able to
submit a complete proposal. Any information obtained during such
Site Visit shall not be deemed to change or supplement the basis set

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forth in this ITB unless such information is formally issued as an

Addendum to the tender documents.

AGOC/KGOC will issue a certificate of Site Visit to the bidder who

conducts the required Site Visit, which shall be submitted with his
proposal for this Tender. Failure to attend the Site Visit shall be
cause for disqualification.

3.2.3 The bidder is requested to contact Manager, Contracts Department

of Al-Khafji Joint Operations to arrange for the bidder's Pre-Tender
Meeting and Site Visit submitting the names and nationalities of the
persons who will attend the required Pre-Tender Meeting and
conduct the Site Visit together with photocopies of their Iqamas or
passport with valid visas not later than June 10, 2019. (Seven(7)
days before the requested meeting) . Each bidder can depute
maximum Two(02) persons; and it would be essential that such
persons or consultants as those who will eventually execute the
works and services be deputed for the Pre-Tender Meeting and the
Site Visit.

All the costs and expenses associated with the required Pre-Tender
Meeting and the Site Visit shall be borne by the bidder and all
necessary arrangement for his visit to AGOC/KGOC including
those for transportation, accommodation and attainment of visas
shall be made by the bidder.

IMPORTANT NOTICE: Kuwaiti bidders to note that in connection

with the Pre-Tender meeting where bidders representatives are
non-GCC nationals, they are kindly requested to contact the below
at least 2 weeks before the pre-tender meeting for facilitating their
representative entrance to Al-Khafji, Saudi Arabia.
The Manager, Contracts Department,
Khafji Joint Operations,
Telephone No: +966 3-765 5147
Fax No : +966 3-765 5148
Email: ctdadmin@kjo.com.sa

4. Proposal to be made

4.1 General

4.1.1 The proposal, which the bidder shall prepare and submit for this
Tender, shall consist of the Price Proposal and the Qualification
Proposal separately, which is clearly detailed in the Appendix I to
this ITB.

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4.1.2 The bidder shall make the proposal of the above contents in
duplicate( 2 copies), in clear English language and typewritten,
complete and accurate in every part.

The proposal as such shall not contain any reservations,

alternatives or variations except when such is expressly required or
allowed hereunder.

4.1.3 Any bidder's proposal shall be disregarded or any bidder shall be

disqualified under the following circumstances;

- The proposal is incomplete failing to cover any items

required to be submitted under this Tender which are
specifically itemized in Appendix I to Instructions to Bidders.

- The proposal is illegible for any reason or inaccurate of its

meanings, or

- The proposal contains any reservation, alternative or

variation except when expressly so required or allowed
hereunder.

4.1.4 It is advisable for the bidder to check his submission by

referring to Appendix I to Instructions to Bidders "List of
Submissions" to avoid submitting incomplete, insufficient or
inadmissible proposal.

4.2 Price Proposal

4.2.1 The bidder shall make his Price Proposal in the attached Price
Proposal Form (Bid Form 1) signed by his authorized
representative and dated with the date of submitting his proposal,
with the bidder’s name typewritten and the bidder’s official seal or
stamp affixed to it. Such Price Proposal as made in different form(s)
shall in no event be considered.

4.2.2 All the rates to be quoted by the bidder shall be expressed only in
United States Dollars. Such Price Proposal as containing rates
expressed only in other currencies or both in US Dollars and in
other currencies for any reason shall in no event be considered.

Each rate shall be written both in numerals and in words, and in

case of any discrepancy between the numerals and the words, the
rates written in words shall prevail.

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Discrepancies in multiplication of numbers and unit rates shall be

resolved in favor of unit rates. Errors in addition shall be corrected
by AGOC/KGOC. Corrected total amounts shall be considered as
price bid.

4.2.3 The bidder shall make sure that the rates as quoted in his Price
Proposal shall be inclusive of and cover any and all costs and
expenses to be incurred by him, when awarded the Contract, for
and in regard to the Contract, particularly for delivery and
completion of the works and services under the Contract at
AGOC/KGOC's designated places such as, but not limited to, costs
and expenses for supervision, labor, equipment, materials,
supplies, consumables, services, visas and permits, mobilization
and demobilization, overheads, profit, insurance premiums,
Ramadan premiums, provisions for risks and contingencies
including risks of fluctuations of any costs and currencies values,
Zakat, withholding tax, income tax, customs duties and any other
taxes (except Value Added Tax (VAT) under Applicable KSA Law)
and imposts to be levied and payable on account of the Contract.

4.2.4 In connection with the foregoing 4.2.3, the bidder shall particularly
take into account the following requirements:

Costs and expenses for provision of the equipment, tools, vehicles,

materials, goods, supplies, consumables and any other things to be
required for prosecution of or incorporation into the works under the
Contract shall be calculated on the basis of delivery of them into
and at the site(s) of such works in Al-Khafji, Saudi Arabia, ready for
their intended use. Accordingly, these costs and expenses shall be
inclusive of, among others, custom duties that may be levied by the
Saudi Arabian taxation authorities in respect of such things to be
imported from outside Saudi Arabia and shall be paid by the
Contractor, at his own cost, when so levied.

4.2.5 The bidder shall also take into account that all the rates quoted in
his Price Proposal shall be fixed throughout the duration of the
Contract and that no adjustment to such rates shall be accepted by
AGOC/KGOC, except when otherwise provided for in the Contract.

AGOC/KGOC shall not be liable to pay any extra money other than
that expressly rendered payable or reimbursable by AGOC/KGOC
pursuant to the relevant provisions of the Contract.

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4.2.6 The Price Proposal submitted by the successful bidder on Bid Form
1 shall make the Exhibit C, “Consideration”, when awarded to him.

4.2.7 In connection with the Zakat and Tax liability of the Contractor, in
respect of AGOC/KGOC payments under the Contract, including for
VAT, the Bidder shall specifically note and understand the
provisions set out in Article 5 of the Form of Agreement and Articles
3 and 4 of SCHEDULE F.

4.3 Qualification Proposal

The bidder shall make his Qualification Proposal of the contents as set out
in 4.3.1 through 4.3.13 hereof. Each document which constitutes the
bidder's Qualification Proposal as such shall be signed by his authorized
representative, who shall be the same as the signatory of his Price
Proposal, dated with the date of submitting his proposal, with the bidder's
name typewritten and the bidder's official seal or stamp affixed to it.

Bidders are advised that notwithstanding the submission of their

Qualification Proposal as part of their bids, the successful bidder shall be
required, post Contract, to submit any other submittals as may be
stipulated in the Contract documents. Submittals made as part of a bid
shall not be accepted as submittals for the purpose of satisfying the
requirements of the Contract, unless otherwise specified.

4.3.1 Corporate Registration, etc.

The bidder shall submit a certified copy of his current corporate

registration together with the breakdown of his shareholders
showing their nationalities and the percentage of the shares or
interests held by each of them, or other documentary evidences, as
properly certified, to demonstrate his legal status. No specific form
is provided for this purpose.

The bidder shall also submit a copy of his current registration at the
Chamber of Commerce as required in 1.1 hereof.

The bidder shall also submit the same aforesaid documents for all
his nominated sub-contractors, if any.

No specific form is provided for this purpose.

4.3.2 Representation on Financial Capability

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The bidder shall submit his representation on financial capability

duly signed as per the Qualification Proposal Form (Bid Form 2)
attached hereto.

4.3.3 General Information

The bidder shall submit, in the attached Qualification Proposal

Form (Bid Form 3), the general information of the bidder such as
Commercial Registration Number and Chamber of Commerce
Number.

4.3.4 General Organization for Social Insurance (GOSI)/ PISS Certificate

The Bidder shall submit a certificate issued by the appropriate

insurance office evidencing that his firm has been registered with
the Organization and that he has discharged all his obligations
towards the Organization or otherwise that he is not subject to the
provisions of this Law.

4.3.5 Acknowledgement of Mobilization

The bidder shall prepare and submit, in the attached Qualification

Proposal Form (Bid Form 4), the acknowledgement of mobilization
by which the bidder is required to make a representation that he
shall complete the mobilization within a period of time not exceeding
two (2) months from the date of acceptance of the award of the
Contract.

The Acknowledgement of Mobilization submitted by the successful

bidder shall be made as part of Exhibit R of the Contract, when
awarded to him.

4.3.6 Not Used

4.3.7 Record of Experiences

The bidder shall submit a record of the experiences (Bid Form 5) of

his own and the intended subcontractors whom the bidder
proposes for performance of the Contract. Such record shall cover
the past Five (5) years, and shall include these experiences as
required in 1.3 hereof for works and services similar to those
contemplated under this Tender. Such record of experiences shall
include the following information:

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I. Client name, address, and principal contact.

II. Title of project with brief description of scope of work.
II. Value of project in United States Dollars (for the
bidder’s part of the work).
. Start and finish dates of projects
I. Number of personnel on each project.
II. Personnel (from item 4.3.8 hereof) involved in these
projects and their job titles.

Each of such records shall be supported by authenticated

documentary evidence, such as copies of contract and/or
certificates from the previous client(s).

4.3.8 List of Personnel

The bidder shall submit in (Bid Form 6) the list of personnel whom
the bidder intends to assign for the performance of the Contract.

The bidder shall submit curricula vitae for all such key personnel
bidder intends to assign for this project:

Such curricula vitae shall include, but not limited to, their names,
nationalities, dates of birth, qualifications and work experiences,
and shall be accompanied by certificates of diplomas for such
personnel.

In this regard, the successful bidder shall take note that it is

required of him, when awarded the Contract, to show AGOC/KGOC
the original of Iqamas and the foregoing certificates of key
personnel to be assigned by him under the Contract, well in
advance of the date upon which the service will commence.

AGOC/KGOC reserves the right to demand submission of original

or duly authenticated copies of these documents if it deems fit or
necessary.

4.3.9 Organization Chart

The bidder shall submit an organization chart showing the lines of

responsibility of the personnel mentioned in item 4.3.8 hereof and
their interrelationship. No specific form is provided for this
organization chart.

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.3.10 List of Subcontracts

The bidder shall submit a list of all the subcontracts, in the attached
Qualification Proposal Form (Bid Form 7), which the bidder intends
or is required to make for the execution of the services under the
Contract. Such list of subcontracts shall indicate the name and
address of each subcontractor and a brief description of the
services to be undertaken by him.

4.3.11 Technical Submittals

a. List of Equipment & Technical Details

The bidder shall submit a list of equipment (Bid Form 8) together
with their description including their models and manufacturers,
quantity, quality, specifications and technical details which the
bidder intends to provide for the performance of the Contract which
shall satisfy the requirements set out in Exhibit B “Scope of Work”
The equipment and technical details shall consist of but not be
limited to, the following details:-

Equipment
 List of all major equipment which the Contractor shall
provide with name of manufacture, make/model and country
of manufacture.
 Performance specifications/technical/catalogue details of
proposed equipment
 No single-source components are to be used. It is also
desirable that the number of different component sources is
minimized.

b. Technical Details

i. Bidder shall submit as part of his bid submittal a full

description that meets the scope of work and technical
specifications set out in Exhibit B.

The bidder shall clearly state, by way of a comparison table,

where any of proposal deviate from the Scope of Work or
technical specification

ii. MAINTENANCE

The bidder shall submit as part of his bid details of any

aspects or features which will facilitate maintenance.

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c. Methodology
The Bidder shall describe in detail how the project will be executed
and implemented.

4.3.12 Health, Safety and Environment Program

The bidder shall submit his Health, Safety and Environment

program in a format as determined by the bidder.

4.3.13 Ethics Compliance

All bidders and the employees shall comply with the requirements
of laws, rules and regulations establishing ethical standards for the
conduct of business in the Kingdom of Saudi Arabia, and all the
rules and regulations specific to AGOC/KGOC. In signing the
proposal, the bidder certifies full compliance with those provisions
for any present or future dealings, transactions, sales, contracts,
services, offers, relationships, etc., involving AGOC/KGOC and/or
its employees. Failure to comply with those provisions may result
in disqualification from the solicitation process, termination of
Contract, and/or other civil or criminal proceedings as required by
law.

The bidder shall make an undertaking on conflict of interest on the

bidder’s official letter head in accordance with the sample
undertaking attached herewith. Such undertaking submitted by the
successful bidder shall make the Exhibit K of the Contract, when
awarded to him.

4.4 Bank Guarantee

4.4.1 The bidder shall obtain and submit to AGOC/KGOC an irrevocable

bank guarantee ("Bid Bond") in the amount of United States Dollars
Thirty Four Thousand Only (US$ 34,000.00). The Bid Bond shall
be issued by a bank licensed and operating in Saudi Arabia or
Kuwait or by an international bank having correspondence with
such banks in Saudi Arabia and Kuwait and kept valid for one
hundred twenty (120) days counting from the closing date of this
Tender to the effect that the issuing bank shall at any time while the
Bid Bond is so kept valid and upon AGOC/KGOC's written request,
pay to AGOC/KGOC an aggregate amount of money not more than
the above said amount unconditionally and irrespective of any
contestation on the part of the bidder, and provided that the Bid

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Bond, once issued, shall not be withdrawn, canceled or in any way

modified without AGOC/KGOC's written consent.

4.4.2 The Bid Bond shall be made out in the issuing bank's own official
letter form for such purpose and the Sample of Bank Guarantee
(Bid Bond) attached hereto is for reference purpose only. However,
a bank guarantee failing to set out the conditions clarified in the
said Sample of Bank Guarantee may lead to disqualification of the
bidder.

The Bid bond shall be addressed Aramco Gulf Operations

Company Limited OR Kuwait Gulf Oil Company (K.S.C) as per the
sample, NOT to Al-Khafji Joint Operations

4.4.3 The Bid Bond is intended to warrant the bidder's proposal

submitted to AGOC/KGOC, and should the bidder withdraw or
cancel his proposal for this Tender, either in whole or in part, after
its submission to AGOC/KGOC or should the successful bidder
refuse to enter into the Contract with AGOC/KGOC after
AGOC/KGOC's decision to award the Contract to him,
AGOC/KGOC shall confiscate the full amount of the Bid Bond and
the bidder shall forfeit any right to claim for the money paid to
AGOC/KGOC through the Bid Bond.

4.4.4 Upon award of the Contract to the successful bidder, AGOC/KGOC

shall return the Bid Bond to unsuccessful bidders without delay.
The successful bidder shall keep the Bid Bond valid until execution
of the Contract and his submission of another bank guarantee
mentioned in 4.4.5 below.

4.4.5 The bidder shall take note that upon execution of the Contract, the
successful bidder is required to furnish AGOC/KGOC with another
bank guarantee in assurance of the timely completion of the
mobilization and commencement of the services contemplated
under the Contract pursuant to Sub-Article 6.1 of the Form of
Agreement ("Mobilization Bond"), and after commencement of the
services, the Mobilization Bond shall be replaced with another bank
guarantee to assure the proper performance of the Contract and the
services there under ("Performance Bond") pursuant to Sub-Article
6.2 of the Form of Agreement.

The Mobilization Bond and the Performance Bond shall be made

out in the issuing bank's own official letter form for such purpose,
and the Samples of Bank Guarantees (Mobilization Bond and
Performance Bond) attached hereto are for reference purpose only.

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5 Submission of Proposal

For submission of his proposal, the bidder shall submit his proposal in two (2)
envelopes
(i) “Package A – Price Proposal(2 copies)”

The bidder to put his Price Proposal(Bid Form 1) in a package and mark
the package as Package A – Price Proposal

(ii) “Package B – Qualification Proposal ( 2 Copies)

The bidder to put his all Qualification Proposal as detailed in article 4.3
above together with (i) the original bank guarantee (Bid Bond) and ii)
the original Certificate issued for attending Pre-tender meeting and
Site Visit in another package and mark the package as Package B –
Qualification Proposal.

All the packages to be titled and also marked on each package the Tender
Number, Tender Title and Bid Closing date then firmly seal each of these two
packages with stamped red wax.

Any bidder's proposal shall be rejected or any bidder shall be disqualified, if the
proposal fails to cover any items required to be submitted under this Tender
which are specifically itemized in Appendix I to Instructions to Bidders.

The bidder shall arrange the so prepared packages to be hand delivered to the
Tender Box No. 1 at the Contracts Department of Al-Khafji Joint Operations in
Al-Khafji, not later than 14:00 hours on Monday, August 05, 2019 (local
time), which is the closing date of this Tender. AGOC/KGOC will not consider
any proposal brought to it after such date and time.

Notwithstanding the above, the bidder who has neither an agent nor a partner in
Saudi Arabia may, at his sole risk, send the so prepared packages by registered
mail or courier service addressed to:

Manager, Contracts Department

Al-Khafji Joint Operations
P.O.Box 256, Al-Khafji 31971
Saudi Arabia

to be received by the said closing date and time.

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AGOC/KGOC will not consider any proposal that, for whatever reason, has failed
to reach AGOC/KGOC at all or by such date and time as stated above, for
whatever reasons.

6. Validity and Irrevocability of Proposal

The bidder shall, in submitting his proposal which shall be made pursuant to the
instructions set out in this document, render his proposal valid in its entirety for
one hundred twenty (120) days counting from the said closing date of this
Tender, and keep his proposal as such, once submitted, irrevocable throughout
the said period of validity of his proposal.

It is reiterated that should the bidder withdraw or cancel his submitted proposal,
he shall forfeit any right to claim for the money to be paid to AGOC/KGOC by the
bank having issued the Bid Bond. Once submitted, the proposal shall in no event
be revised, modified, altered or supplemented by any means and for any reasons
including mere typographical errors, errors in cost calculation or risk computation,
and misinterpretation of the terms and conditions of the Contract or other
conditions of this Tender.

7. AGOC/KGOC's Discretion on Award of the Contract

7.1 The bidder shall understand that AGOC/KGOC will decide on award of the
Contract at its discretion, while the price quoted by each bidder is not
necessarily decisive for AGOC/KGOC to select the successful bidder.

AGOC/KGOC may decide not to award the Contract to any bidder at all, or
may even suspend or cancel this Tender without bearing any obligations
to the bidder, and no acts of AGOC/KGOC before making a decision on
award of the Contract shall constitute any commitment by AGOC/KGOC to
award or not to award the Contract to any particular bidder.

No bidder shall have the right or be allowed to make any claim to

AGOC/KGOC in regard to AGOC/KGOC's decision on award for any
reason, and AGOC/KGOC shall never be obligated to explain to any
bidder the reason of his being not awarded the Contract or AGOC/KGOC's
evaluation of any proposal or decision on award.

AGOC/KGOC reserves the right to reject any or all proposals submitted

for any reason. AGOC/KGOC is under no obligation to award to a bidder
the business which is the subject of this Tender. A bidder's failure to
conform to any requirement, specification or condition expressed or
implied by this document is not waived by AGOC/KGOC if such bidder's
proposal is accepted.

Instruction to Bidders (Rev. 0)

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Painting Services for Onshore Facilities Tender No. HQ615SS19

7.2 The Contract to be awarded to and made with the successful bidder shall
be written in exactly the same language as that of the Form of Agreement
and its Exhibits (except for typographical errors), no provisions of which
shall be negotiable by the bidder in the course of this Tender or even after
AGOC/KGOC's decision to award the Contract to him.

7.3 Upon the decision of award of the Contract to a bidder (“the successful
bidder”), AGOC/KGOC shall send the successful bidder a Letter of Intent
to enter into the Contract. By the successful bidder’s counter signature of
the Letter of Intent for acceptance, it shall be deemed that the Contract is
entered into by and between AGOC/KGOC and such successful bidder, to
be further substantiated by way of parties signing the formal Contract.

7.4 After award of the Contract, if it turns out that the bidder has
misrepresented / cancelled any requirement under the laws and
regulations of Saudi Arabia &/or Kuwait, which is mandatory at the time of
bidding and during performance of the Contract and which prevents the
bidder from commencing or continuing the work/services contemplated
under this Tender in accordance with the requirements specified herein,
AGOC/KGOC may terminate the Contract forthwith by giving a written
notice of termination and shall confiscate the full amount of the bank
guarantee available with AGOC/KGOC and the bidder shall forfeit any
right to claim for the money paid to AGOC/KGOC through such bank
guarantee.

8. Costs and Expenses for this Tender

All the costs and expenses incurred by the bidder on account of or in connection
with this Tender shall be solely for the bidder's account, and AGOC/KGOC shall
in no event accept any claim by or involving the bidder for such costs, expenses,
or loss or damage, whether direct or indirect or consequential, which may arise
or result from or in connection with this Tender.

9. Use of Bidder’s Proposal and Accompanying Material

All proposals and associated materials submitted by the bidder shall become the
property of AGOC/KGOC and may be evaluated by any employee or agent of
AGOC/KGOC. All proprietary information provided by the bidder will be treated
as confidential by AGOC/KGOC. All proprietary information provided by
AGOC/KGOC shall be treated as confidential by the bidder.

11. Inquiry on this Tender

All inquiries from the bidders in regard to this Tender must be received no later
than Ten(10) days prior to the closing date of this Tender.

The bidder shall always make his inquiries, if any, in writing, and address the
same to:

Instruction to Bidders (Rev. 0)

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Painting Services for Onshore Facilities Tender No. HQ615SS19

Superintendent, Procurement & Tendering

Contracts Department
Al-Khafji Joint Operations
P.O.Box 256, Al-Khafji, 31971
Saudi Arabia
Facsimile: 03-765-5148
Email: ctdadmin@kjo.com.sa

AGOC/KGOC may communicate any bidder’s inquiries and AGOC/KGOC’s

response to such inquiries to the other bidders, when necessary, at
AGOC/KGOC’s sole judgment.

No inquiries of whatever nature in regard to this Tender shall be accepted

by AGOC/KGOC after the closing date of inquiries.

***********************************
Attachments:
- Appendix I to Instructions to Bidders "List of Submissions"
- Bid Forms 1 to 8
- Sample Undertaking on Conflict of Interest
- Sample of Bank Guarantees (Bid Bond, Mobilization Bond and Performance
Bond)

Instruction to Bidders (Rev. 0)

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