Background
The “Nationally Appropriate Mitigation Actions (NAMAs) for low-carbon end-use sectors in Azerbaijan” Project’s objective is to reduce the annual growth rate of GHG emissions from the energy end-use sectors. The project will target 3 (three) energy end-use sectors, namely Buildings, Transport and Associated Gas Capture. The specific objective of project is to support State Oil Company of Azerbaijan Republic (SOCAR) in the implementation of its Climate Change Mitigation Strategy by promoting and upscaling GHG mitigation measures through a programmatic NAMA approach in the low carbon end-use sectors. SOCAR, being in the core business of oil & gas production, processing and distribution, is a major energy user and greenhouse gases (GHGs) emitter and will act as the main stakeholder of project and implementing partner to further the company’s long-term sustainable development strategy. It will simultaneously target the country’s institutional & policy framework, address appropriate mechanisms and result in activities to realize significant GHG emission reduction achievements in the long term. Individual international experts to carry out the study and implementation of Buildings and Transport activities are already on-board and performing their work. For the Associated Gas Capture component, the need has been identified to engage an individual consultant (IC), who is specialized and experienced in estimating the quantity of associated gases emitted from oil and gas fields and developing a viable plan for their effective utilization. SOCAR currently uses outdated technology (e.g. compressors of low quality) to capture associated gases especially at on-shore sites which makes the capturing process highly inefficient and not economically feasible. In order to avoid large amounts of gas leakages from oil & gas wells in the future, modern technology and practice need to be applied to significantly improve the current gas collection & production regime at SOCAR’s on-shore wells. Methane emissions have an enhanced effect on climate change because methane has a climate forcing effect 25 times greater on a 100 year basis than that of carbon dioxide, the primary greenhouse gas (GHG). Methane’s impact is almost three times greater on a 20 year basis and there is research that may cause both factors to be further increased. Recent research also suggests that mitigation of short-term climate forcers such as methane is a critical component of a comprehensive response to climate change.
Duties and Responsibilities
The oil wells, in addition to producing crude oil, also produce some amount of natural gas. The associated gas discharged at the wellhead is often captured and sent to the transmission network for sending it for distribution to consumers. However, as there is no existing transmission network in the area of Siyazanneft oil-field, the options are for gas to be either vented or flared. The aim of “Associated Gas Capture” component is to apply the best available technology to plug the venting of low pressure associated gas by capturing it and compressing and transporting it to a gas processing plant. This can be done by adding the leaking gas to the gas grid in the proximity of oil-field or, alternately, directly distributed to nearby communities. The households and small-sized industry/businesses in the neighborhood of Siyazanneft oil-field mostly use wood or very expensive kerosene and LPG in low-quality stoves. By replacing these fuel-sources, which have a relatively large Carbon footprint, a more efficient fuel source will become available to the area’s residents. There will thus be a two-fold benefit, namely (i) reduction of GHGs being added to the atmosphere and (ii) recovery and use of captured gas as a fuel to replace fuels viz. wood, LPG, kerosene, etc.The main thrust of the international consultant’s (IC) effort will be to develop a pilot program for capturing gas leakages in Siyazanneft oil-field and directing the gas for use by end consumers living in 12 nearby villages (approximately 600 households comprising of a population of 2,500) to meet their heating and cooking needs and (if viable) produce electricity. The IC’s scope of work also entails reviewing existing reports and data and conducting field measurements to confirm the magnitude of gas leakages. In the fulfillment of this objective, the IC shall undertake the following specific tasks:
Overall analysis
The IC shall use a reliable set of tools viz. infrared cameras or handheld leak detection equipment to confirm and reassess the quantities of gas leakages into atmosphere from oil-wells in Siyazanneft.
The IC shall estimate the economic value of methane gas leakages and the savings that will directly accrue to SOCAR by implementing measures to capture these leakages.
The IC shall recommend measures that rely on existing technologies and techniques, including cost estimates, to capture the leakages and direct them for alternative productive use(s), as appropriate.
The IC shall analyze and recommend viable alternatives for the most effective end-use of captured gases.
Design/implementation of pilot program
For the approach or combination of approaches considered to be most viable to capture and utilize the associated gas, the IC shall develop a pilot program including preliminary engineering design to meet the energy needs of 12 nearby villages.
The IC shall develop a preliminary cost estimate of the proposed scheme for the utilization of captured gases along with their cost/benefit and financial and economic analysis. Total investments will need to consider gas capturing (purchase of compressors), gas processing and cleaning facility as well as required distribution network.
The IC shall include in the report the outcome of any survey and interviews carried out with the village dwellers to identify their energy needs.
Data gathering and inventory of gas leakages
The IC shall set-up a detailed monitoring mechanism for the gas capturing process as well as the avoided emissions data. The methodology to integrate the data into SOCAR’s energy balance and GHG inventory will also be recommended by the IC.
The IC shall make a qualitative assessment of the overall potential and replication possibilities of best practice in capturing of associated gases as demonstrated at Siyazanneft in the other oil-fields managed by SOCAR.
The IC shall propose a methodology for use by SOCAR staff to undertake the capturing of leaking gases when such repairs are economically feasible (i.e. benefits outweigh the costs).
Deliverables
A report outlining the methodology and results of field measurements and analysis to estimate methane gas leakages into atmosphere from Siyazanneft oil-field and equivalent CO2 emissions. The economic value of “gas loss” based on the prevailing market price will also be estimated.
A report recommending a set of measures based on existing technologies and techniques, including cost estimates, to capture the leaking gases and the various scenarios for using them productively along with a detailed economic analysis that demonstrates the benefit-cost analysis of proposed mitigation measures.
A report that makes recommendations based on the outcome of the above two reports for recording the gas leakages from SOCAR fields and replication of results and outcomes of gas-capture pilot program in Siyazanneft and other oil-fields in Azerbaijan.
Competencies
Competencies
Demonstrates integrity by modelling the UN’s values and ethical standards;
Promotes the vision, mission and strategic goals of UN/UNDP;
Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
Ability to lead strategic planning, results-based management and reporting;
Builds strong relationships with clients, focuses on impact and result for the client and responds positively to feedback;
Consistently approaches work with energy and a positive, constructive attitude;
Demonstrates good oral and written communication skills;
- Demonstrates ability to manage complexities and work under pressure, as well as conflict resolution skills.
Required Skills and Experience
Education:
An appropriate degree in Energy/Engineering/Environmental or a relevant field. A Master degree which is relevant to the scope of work of the assignment will be an asset.
Experience:
Minimum 15 years of international experience as consultant or operator of design and implementation of mitigation actions to prevent flaring or venting of associated gas leakages in oil fields;
At least 10 years of international experience and strong knowledge of key issues relating to the international agenda of Climate Change prevention and mitigation;
Good knowledge of international best practices in the project related fields, state of the art approaches in the specific areas of the project and its subcomponents;
Previous relevant working experience with UN or other international organizations;
Preferably working experience in the region of South-East Europe/ Caucasus;
Familiarity with UNDP and GEF requirements.
Language:
Fluency in English;
Knowledge of Azeri or Russian is an asset.
The Evaluation Method will be technical responsive lowest priced method, which means that out of the offers gaining 70 points the lowest priced will be chosen. Technical responsiveness will be evaluated by criteria shown in this PN with the maximum amount of points given for each technical requirement as below: Total maximum number of points for the evaluation are 100 points.
An appropriate degree in Energy/Engineering/Environmental or a relevant field. A Master degree which is directly relevant to the scope of work of the assignment will be an asset. - (20)
Experience of design and implementation of mitigation actions to prevent flaring or venting of associated gas leakages in oil and gas fields - (20);
Experience and a strong knowledge of key issues relating to the international agenda of Climate Change prevention and mitigation as applicable to oil and gas industry - (20);
Brief Description of Approach to Assignment (20)
Previous relevant working experience with UN or other international organizations - (10);
Preferably working experience in the region of South-East Europe/ Caucasus - (10).
The contract for the International Consultant will be a Lump Sum contract. The candidates are required to include in the Financial Proposal template to be provided by UNDP all the costs related to this assignment. These include:
Number of consultancy days – 55 days
Round trip airfare (economy) to Baku, Azerbaijan – 3 trips
Number of total scheduled days in Baku – 21 days (The maximum daily rate to be included for Baku as per DSA is 176USD)
Other, if applicable.
Interested individual consultants must submit the following documents/information to demonstrate eligibility of their qualifications:
• Offeror’s letter/filled-in template to UNDP confirming interest and availability for the Individual Contractor (IC) Assignment;
• Signed P11 Form;
• Breakdown of Costs Supporting the Final All-Inclusive Price;
• Description of Approach to Work.
If any of the above-mentioned documents is missing UNDP holds the right to reject the respective proposal altogether.