INDIAN OIL CORPORATION LTD. REFINERIES DIVISION MAINTENANCE & INSPECTION

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INDIAN OIL CORPORATION LTD.

REFINERIES DIVISION

MAINTENANCE & INSPECTION

Indian Oil Bhavan, 10
th

Floor, A
-
1, Sector
-
1, Udyog Marg, Noida, Uttar Pradesh
-
201301, India



GLOBAL
EXPRESSION OF INTEREST


FOR


IMPLEMENTATION OF ASSET MANAGEMENT IN IOCL REFINERIES ALONGWITH
SUPPLY, INSTALLATION, CUSTOMIZATION & COMMISSIONING OF ASSET
MANAGEMENT SOFTWARE



EOI Notice No.:

M&I/EOI/
2011
-
12/01


1.0

INTRODUCTION


Indian Oil Corporation Limited (IOCL), India’s
largest company by

sales with a
turnover of

Rs. 3,28,744 crore (US $ 72,125 million)
for 2010
-
11
is
the highest
ranked Indian company in the
Fortune “Global
500” Company

listings, ranked at the
98
th

position.

As a group,
Indian Oil controls 10 of India’s 20 refineries. The group
refining capacity is 65.7 million metric tonnes per annum (MMTPA
)
, i.e. 1.
2
0 million
barrels per day approx.)

which is

the largest sh
are among refining companies in
India.


Indian Oil Corporation, Refineries Division intends to undertake asset
management implementation and would like to invite interested bidders to
participate vide this Expression of Interest as per following scope of
work and
requirements:


2.0

SCOPE OF WORK


A
comprehensive

asset management
implementation
(including Risk Based
Inspection

(RBI), Reliability
Centered

Maintenance

(RCM)
)
to be carried out
as per
program outlined below:


2.1

The
Asset Management Implementation (with RCM & RBI)

shall be taken up initially
for one
Pilot Unit


a
critical process unit
(Fluidized Catalytic Cracking unit of Panipat
Refinery)

under guidance of bidder’s expert team to
carry out analysis

for all
equipmen
t (mechanical (static & rotary) & electrical equipment
,
instrumentation) with
piping,
review the findings, submission of the final asset management report and
successful implementation of asset management
as per

direction of
the Engineer
-
in
-
charge.





Prio
r to the Pilot Unit implementation, a detailed study of

representative IOC
refineries (4~5) shall be taken up (
as per IOC
based on complexity, size, region
etc.) to collect historical data on reliability, unplanned outages, unit interruptions,
shutdown tim
e, time taken for different jobs (e.g. heat exchanger cleaning etc.)
and established across the chosen refineries. Consultant shall bring in
experience, data and international benchmarks to identify relevant best
-
in
-
class
benchmarks.



Value potential, gap i
dentification (in terms of lost margin opportunity/lost
availability / reduction in maintenance costs) will be assessed

for chosen
refineries
.



Based on the above, targets will be jointly set against the value potential and
gaps identified.

INDIAN OIL CORPORATION LTD.

REFINERIES DIVISION

MAINTENANCE & INSPECTION

Indian Oil Bhavan, 10
th

Floor, A
-
1, Sector
-
1, Udyog Marg, Noida, Uttar Pradesh
-
201301, India




Supply,
installation and commissioning of RCM/RBI software as per detailed
requirements specified in section 3.0 and this scope of work shall be
undertaken along with training requirements as specified.




After the completion of the asset management
implementation

in the Pilot
Unit, a detailed review of the benefits
achieved

shall be undertaken jointly.
Based on the effectiveness of the pilot phase, IOCL shall reserve the right to
proceed for further full
-
scale implementation in all refineries or decide to not
imple
ment the same further. In such a case, the software pilot license expires
at the end of the project and all analysis done within the asset management
software will be submitted as hardcopy to the client.


2.2

Subsequent to successful
asset management
implement
ation
in

the Pilot
Unit
,
subsequent
roll
-
out
for al
l the
P
rocess
U
nits,

Captive Power Plants, Offsite
s

of
refineries

and facilities

of Indian Oil Corporation Limited
located at
Guwahati,
Barauni, Gujarat,
Haldia, Mathura,
Panipat,
Digboi
and Bongaigaon
Refinery shall be
carried out
.
The necessary
training
(class
-
room and hands
-
on)
of the asset
management implementation teams from these refineries
is
to be completed along
with the Pilot Unit

itself. This
shall include providing
5

nos. asset management
tra
ining of minimum 5 days each to expose (minimum 6 members from each refinery)
from eight IOCL ref
ineries at Pilot Unit and 5 nos. of trainings of 5 days each at IOC
designated site during software commissioning.


2.3

The bidder’s scope will include supply, installation and customization of
Asset
management
software in
the Pilot Unit initially and subsequently in
each refinery. The
customization will include readiness of the software of data entry and
necessary

analysis

for all Process
U
nits, Offsites, Captive Power Plants and other facilities.


2.4

IMPLEMENTATION



T
he
requirements

for asset management implementati
on in the initial Pilot unit and
subsequent roll
-
out to be done by the IOCL asset implemen
ta
tion
teams
facilitated by
the BIDDER

are as follows
:


2.4.1

Detailed

road map /
micro
-
activity flow diagram /
micro
-
level
bar chart for various
activities required for the completion of the
asset management implementation.


2.4.2

T
he BIDDER shall be required to carry out
preliminary asset study

(a sspecified in
section 2.1)
, and shall submit a draft study report
c
learly indicating the cost benefit
analysis and the anticipated
tangible benefit as applicable such as
:



Total Cost saving and accrued benefits.



Cost saving

in th
e current inspection plan / throughput increase / reduction in
maintenance cost.



Improvement in Run length, decrease in shutdown duration and reduction of
Inspection frequency vis
-
a
-
vis present level.



Reduction in insurance and other statutory costs.



Reduc
tion in risk probability comparing with current level.



Spare part
s

/ inve
n
tory management and reduction of stock level of critical items /
insurance spares.


2.4.
3

The BIDDER shall make presentation/ deliberation with the Asset Management
Implementation team as well as to top management at mutually agreed time for
reviewing the progress and effectiveness of the asset management implementation
.

INDIAN OIL CORPORATION LTD.

REFINERIES DIVISION

MAINTENANCE & INSPECTION

Indian Oil Bhavan, 10
th

Floor, A
-
1, Sector
-
1, Udyog Marg, Noida, Uttar Pradesh
-
201301, India




2.4.
4

On acceptance a
nd approval of the
initial

study report by
IOC, the
detailed
quantitative study

shall be carried out by the

bidder

s

expert

implementation

team
involving the IOCL implementation teams

and submit the final study report after
incorporating all the findings,
assessments, analysis and suggestions made during
the deliberation with the
IOC
Asset management team and presentation to refinery
management.


2.4.
5

Carryout Risk Assessment for each piece of equipment and connected piping using
Likelihood and Consequenc
e factors based on Damage mechanism of each piece of
equipment and corresponding data (historical, inspection and maintenance data) with
potential risk.


2.
4
.6

After commencement of the detailed study, monthly

or bi
-
monthly

audit shall be
carried out by a
senior executive
team nominated by Refinery. The BIDDER shall
provide necessary assistance for making presentation to the management about the
audit findings and inc
o
rporate comments emerging out of the discussion.


2.5

Data and Information Collection


2.
5
.1

Study

the design parameters, Process flow Diagram (PFD), Process &
Instrumentation Diagrams (P&ID), survey of all Inspection records, Repair and
modification reports, operating conditions, Material of construction, Planning and
implementation.


2.
5
.2

Revie
w the financial data including cost of plant shutdown and average cost of
process plant split down to smaller sections.


2.
5
.3

Prepare simplified process flow diagrams with all the data essential for
RCM/
RBI

analysis of the equipment items,piping circuits
and instrumentation.


2.
5
.4

The climate condition viz. atmospheric temperature, Relative humidity, Wind speed
etc. small be taken specific to each refinery location only. The general assumptions
indicated in
the standards like
API 58
0/581
, OREDA
, ANSI / ISA
etc.
may be different
to conditions in Indian Oil refineries.


2.6

Identifying Deterioration Mechanisms and Failure Modes


2.
6
.1

Review of P&I
D
’s with operating temperatures and pressures, Material of
construction and type of flow, Corrosion
circuits and damage mechanisms.



2.
6
.2

Prepare documentation on standard active damage mechanisms, susceptibility to
damages affecting each equipment and modes of failure.


2.
6
.3

Identify
problematic equipment / high risk equipment and instrumentation /
c
orrosive
circuits and determine corrosion rates.



2.
6
.4

Firm up the guidelines for
inspection and maintenance,
identification of the damage
mechanisms, location and extent of damages, type and frequency of inspection.




INDIAN OIL CORPORATION LTD.

REFINERIES DIVISION

MAINTENANCE & INSPECTION

Indian Oil Bhavan, 10
th

Floor, A
-
1, Sector
-
1, Udyog Marg, Noida, Uttar Pradesh
-
201301, India


2.7

Assessing Probability &
Consequence of Failure


2.
7
.1

A
ssess, qualify and quantify Risk, indicating both likelihood and consequence of
each equipment for both present and future based on the following existing plant data
viz.;



Material of Construction and condition of equipment /

piping.



Design and operating parameters.



Operation, maintenance and inspection history.


2.
7.2

The generic and specific probability values shall be discussed and accepted by
Refinery prior to applying the same at various stages of study.


2.
7.3

I
ndicators

of risk shall be proritized based on requirements in the following sequence
:



Safety of personnel



Business interruption



Health effects



Environmental impacts



Equipment damage


2.
7.4

For high
-
risk equipment, the limit of operating conditions

and control shall be
suggested as per asset management guidelines.


2.8

Risk Management with Inspection
& Maintenance
Activites


2.
8
.1

Recommendations, discussion and finalization of
Asset Management
Methodology
and accepted Risk Reduction Criteria shall be
done
.


2.
8
.2

Develop Inspection

& maintenance guidelines based on the out
come of the analysis
and
formulate

the Detailed Inspection

& Maintenance

Pro
c
edure.


2.8.3

C
heck and estimate remaining life of ageing equipment/ piping ba
sed on RBI
analysis and results / similar replacement criteria for rotating equipment based on
RCM pinciples and for process instrumentation based on
RCM/RBI guidelines as
applicable.


2.8.4

Suggest cost effective methods for life extensi
on of ageing equipment /

piping
.


2.9

Other Risk Mitigation Activites


Some risks cannot be adequately managed by inspection alone. In such cases non
-
inspection mi
t
igation actions such as equipment rep
a
ir, replacement or upgradation
to be considered. At places equipment redesign or
maintenance and strict controls
on operating conditions may be the only appropriat
e

measures that can reduce risk
to acceptable levels. Examples where measures that can reduce risk to acceptable
levels are:



Equipment nearing retirement
.





Failure
machanisms (such as brittle fracture, fatigue) where avoidance of failure
primarily depends on operating within a defined pressure/ temperature.





Consequence dominated risks.


INDIAN OIL CORPORATION LTD.

REFINERIES DIVISION

MAINTENANCE & INSPECTION

Indian Oil Bhavan, 10
th

Floor, A
-
1, Sector
-
1, Udyog Marg, Noida, Uttar Pradesh
-
201301, India


The BIDDER shall clearly spell out the modalities for the above aspects.


2.10

Roles
, Responsibilities, Training and Qualifications


2.10.1

The Bidder’s expert

team

shall guide the
Asset Management

teams throughout the
implementa
t
ion period
.

The implementation of
Asset management

will be under the
supervision and
guidance of the Bidder’s expert
team. All boarding, lodging,
transportation, local transportation, medical facilities etc. are in the scope of the
bidder at all IOC locations.



2.10.2

Completion time for successful implementation of
asset management

in one critical
unit
in designated refinery

shall

be 12 months from the date of issue of LOA.

BIDDER
is required to suggest a shorter implementation period, if feasible, for the project
implementation.


2.10.3

The training requirements shall be as specified in section 2.2.


2.10.4

The BIDDER
shall

clearly specif
y in the offer the number of foreign persons required
to visit, number of visits, and the duration of stay. For every visit the BIDDER shalll
submit well in advance the programme details, which shall include the following
minimum items.



Purpose of the visi
t
.



Data to be furnished by OWNER during that visit
.



Discussion required with groups like operations / safety / process / inspection
etc.



Details of the visiting person e.g. Name, Designation, Passport, Visa, duration
of stay etc.



Any other relevant details
.


3.0


SOFTWARE REQUIREMENTS


3.1

The software for carring out
asset management implementation
by detailed
quantitative method, should have license of at least 10 parallel users of the package
in each refinery
.


3.2

The BIDDER shall also give commitment for maintenance & upgradation of the
package to the latest versions for the next
10

years f
rom

completion of the contract.


3.3

Finalize and document Equipment Inspection

& Maintenance

Program based on the
risks associated

with each
e
quipment as well as process, utilities and underground
piping.


3.4

D
evise a
dynamic
system for continuously assessing the risk and updating the
inspection
and Maintenance
program based on future inspection findings and
operating observations.


3.5

Foc
us inspection plans to extend unit run lengths, improve turnaround planning,
reduce turnaround days and reduce maintenance costs along with reduced risk.


3.6

Provision of data transfer with Enterprise Resource Planning (SAP) package version
i
nstalle
d

in IOCL

to minimize duplicity of data entry. This will include:




T
ransfer of equipment/ functional location data(s) form SAP to proposed RBI
package.

INDIAN OIL CORPORATION LTD.

REFINERIES DIVISION

MAINTENANCE & INSPECTION

Indian Oil Bhavan, 10
th

Floor, A
-
1, Sector
-
1, Udyog Marg, Noida, Uttar Pradesh
-
201301, India




Asset Management software
should be compatible to SAP

version installed in
IOC and AUTO
CAD release
availa
ble with IOCL

and all higher versions. The
BIDDER should also
undertake

integration of supplied software with higher
versions of SAP & AUTO CAD.



Regular data(s) updation from SAP to
asset managment

package to upgrade the
inspection/ repair/ replacement/ PM
/ PdM jobs carried out through SAP.



Transfer of maintenance task plan dev
e
loped in
asset management

package to
SAP for generating regular notifications.



Mode of operation of data(s) transfer should be offline with at least one time data
transfer per day.



E
nsure
the guiding standards such as
API 580
,
API 581

for RBI, OREDA etc. for
RCM, ANSI / ISA
/

IEC
etc. codes as applicable

as the basic minimum gudeline.



Provide a software package based on above API standards f
or the study and
implementation

in similar units as well as in future and should run on normal
PC
s

and operating system of
Windows
installed in IOC

and upgraded versions.



The BIDDER will clearly indicate in their offer, the Departments/ Areas from
where the Refinery pe
rsonnel shall be
required to work in the
asset

team and
number of persons in the
IOCL

team.


4.0

DELIVERABLES



4.1

The key deliverables for the bidder shall be as follows:



Benchmarking against key

reliability and availability

parameters (e.g. shut
-
down
time for different process units, time for typical key activities, run
-
length of the
respective process units etc.).



Define improvement points & targets for different process units in each refinery.



Estimate of value potential (
margins in lost opportunity, reduction in maintenance
costs).



Organization gaps based on best practices (relevant to IOCL context).



Successful commissioning of software.



Detailed design and work
-
scope of
shutdown & maintenance strategy for

refineries.




Shutdown content optimization techniques.

o

Plan inspections to be performed during next scheduled the plant shutdowns
.

o

Assist with planned shutdown reviewing the inspection results and ensuring
relevant data has been collected
.

o

Prepare corrosion manuals wit
h recommended operating envelopes for each
unit covered by the RCM/RBI program
.



Description of Unit cluster
s to be shutdown simultaneously based on equipment
and unit reliability, availability and maintainability parameters.



Unit
-
wise planned run
-
length, s
hutdown duration and other equipment reliability
parameters.



Overall program definition in the chosen refineries



key initiatives, teams,
mandates, targets, review structure etc.



Best practice implementation in the targeted refinery units

related to asset

performance management.




INDIAN OIL CORPORATION LTD.

REFINERIES DIVISION

MAINTENANCE & INSPECTION

Indian Oil Bhavan, 10
th

Floor, A
-
1, Sector
-
1, Udyog Marg, Noida, Uttar Pradesh
-
201301, India


4.2

Submit the final study r
eport including the document including the following:

4.2.1

A ranking by risk of all equipment / piping evaluated for both present and future,
based on the existing plant data viz. material of construction, condition of
equipment/piping, design and operating parameters,
o
peration, maintenance and
inspection history
.

4.2.2

A d
e
scription of any other risk mitigation activities (Such as repairs or safety
equipment upgrades).

4.2.3

Firm up the inspection
and maintenance
plan guidelines including the best inspection
method, standard active damage mechanisms identified per equipment
item, location
and extent of damages, susceptibility to damages, modes of failure, type and
frequency of inspection.

Prepartaion of a detailed shutdown frequency and duration
for process units is also included.

4.2.4

Check and estimate remaining life of
all types of
ageing equipment / piping based on
asset management

analysis and results.

4.2.5

Suggest cost effective methods for life extension of
all types of
ageing equipement /
piping.

4.2.6

Develop detailed inspection plan for next 10 years on selected “high risk i
tems” and
make the detailed inspection procedure based on a planned period.

4.2.7

Inspection method(s) that should be used: e.g.

ultrasonic Testing (UT), Radiography,
Wet Fluorescent Magnetic Particle Testing (WFMPT)
, vibration Analysis

etc. and any
other speci
al NDT technique (s) including list of NDT agencies.

4.2.8

Extent of application of the inspection method (s)
: (e.g. percent of total area
examined or specific locations).

4.2.9

Provide software as per specifications as detailed in point 3.0 above
.


4.3


Any other Asset M
anagement
/software

output as per bidder’s expertise for
successful implementation of asset management

in refineries / units

apart from the
above. The details of the same to be submitted to IOCL during technical discussion.


5.0

PRE
-
QUALIFICATION CRITERIA



5.1

TECHNICAL


5.1.1

Consultan
t

must have a

proven track record and must have successfully
completed

the
implementation

of asset management

(including Risk
B
ased Inspection,
Reliability Centered
M
aintenance
)

f
or atleas
t one Crude Distillation Unit

or Vaccum
Distillation Unit

of atleast 6.0
MMTPA

capacity

AND

atleast
one secondary
processing unit
i.e. F
luidized Catalytic Cracking Unit

(FCCU
)

or

Hydrocracker Unit

(HCU
)
or Once
-
through Hydr
o
cracking Unit (OHCU)
or DHDT (Diesel Hydro
-
treating
Unit)
or
DHDS (Diesel Hydro
-
desulphrization

Unit) or Catalytic Reforming Unit(CRU)
or Continuous Catalytic Reforming Unit(CCRU) or


Delayed Coking Unit (DCU),
covering all types of
mech
a
nical
(rotary & static)
equipment

including piping,
electrical
equipment
and instrumentation
in atleast
three different crude oil refinery
locations
.
The job must have been completed satisfactorily within five years
prior to
the date of
issue of this expression of interest (
EOI
)
.



5.1.2

The consultant’s software should be proprietor
y of the consultant or else the
consultant shall have an agreement with the software provider for atleast
10

years
from date of
successful commissioning of
the system

in our proposed refiner
ies

/ unit.



INDIAN OIL CORPORATION LTD.

REFINERIES DIVISION

MAINTENANCE & INSPECTION

Indian Oil Bhavan, 10
th

Floor, A
-
1, Sector
-
1, Udyog Marg, Noida, Uttar Pradesh
-
201301, India


6.0

DOCUMENTS TO BE F
URNISHED IN RESPONSE
TO
EXPRESSION
OF
INTEREST (
EOI
)


6.1

Proof of carrying out such
asset management
programme along

with detailed
reference list, showing the location of the refinery, process units covered and asset
management program implem
entation details with quantifie
d

benefit
s achieved.

6.2

Purchase orders along with satisfactory completion
certificates f
ro
m clients for whom
the Bidder has provided such services.

Client’s contact no., phone no.
, fax

no.,
E
-
mail ID
should be clearly mentioned along with.

6.3

List of experts proposed to be deployed

along

with their experience detail
s

(Qualification, years, area of specialization, projects etc. in the field of asset
management in which they have worked).

6.4

Approa
ch paper on the program to be conducted with d
etailed roadmap.

6.5

Copy of a
udited balance sheet
and profit
-
and
-
loss account & statement
for last three
years.

6.6

Documentary evidence of the software being proprietary of the bidder / agreement
with software prov
ider and undertaking that all conditions in
point

3.0
above.
The
bidder an
d the software partner shall be jointly and severally responsible for the
s
oftware as well as all clauses of the
scope of work as defined in the EOI/tender.


7.0

No hardcopy of expression of interest
(EOI)
will be issued. However, interested
parties can
access and download
the details of expression of interest
(EOI)
from
IOCL tender site
i.e.
www.indianoiltenders.com
.


8.0

Bidders to note that
IOCL will not pay or reimbursed any expenses incurred
by
bidders for

preparation
and

submission o
f expression of interest (EOI)
.

There
will
no
t

be
any liability on IOCL for submission of expression of interest

(EOI).

All expenses for preparation and submission of expression of interest will
have to bear by bidder.


9.0

Bidde
rs should not submit any price bid/ budgetary quote
in this expression of
interest (EOI).


10.0

IOCL reserves the absolute right to select or reject a party
/ bidder

at their s
o
le
discretion without assigning any reason whatsoever.


Interested consultants
/
bidders

must submit their expression of interest with all the
documents signed on each page under sealed cover
latest by
2
3
rd

December, 2011
.

The
expression of interest/
submission
sent through
courier
or post
should
reach at
the
following
address
on or
before 23
rd

December, 2011
.


Chief Manager,

Maintenance & Inspection Department,

Indian Oil Corporation Ltd.,

Indian Oil Bhavan,

Room No. 159
,
10
th

Floor,

A
-
1, Sector
-
1,

Udyog Marg, NOIDA,

District : Gautam Budh Nagar,

Uttar Pradesh
-
201301,

India


Clarifications (if any) may be obtained from:
Chief Manager
, Phone: +91
-
1
20
-
2
448172
;
email:
sachdevar
@iocl.co.in