Background

The main goal of the Project is to support SOCAR in the implementation of its Climate Change Mitigation Strategy by promoting and upscaling GHG mitigation measures through a programmatic NAMA approach in SOCAR’s oil and gas production and energy end-use sectors, and demonstrating NAMA approach by implementation of pilot projects. The project has the eventual aim to improve Azerbaijan’s institutional & policy framework, address appropriate mechanisms and result in activities to realize significant GHG emission reduction achievements in the long term. Under the Project, which began in March 2015, demonstration projects relating to associated petroleum gas (APG) capturing, Buildings and Transport sectors have been completed. For the Buildings component, a NAMA program has been developed which will help to replicate the pilot activities on a large scale within SOCAR.

A key component of this UNDP Project is to reduce GHG emissions due to the associated petroleum gas (APG) from Azerbaijan’s oil-fields. Measures undertaken by SOCAR in the past have resulted in successfully capturing APG in large quantities. However, due to the large number of wells which are oozing APG at a relatively lower pressure, more refined technologies are required. The three phases of the system (crude oil, natural gas and production water) are separated into two phases. Produced water and crude oil are led into a pipeline system, and the APG vented directly from borehole to ambient air. The further utilization of captured APG is not considered nor modern capturing technology is installed due to a poor cost-to-benefit ratio. However, initiating a large-scale program that allows most of the APG to be captured and utilized is a part of SOCAR’s Climate Change Mitigation Program. To do this, modern technology and practice need to be applied which has been demonstrated through the design and installation of the pilot-scale retrofits, including compressor stations.

The APG Capture component under this Project started in 2017 and, in the first step, the feasibility report of the retrofits to be undertaken on some of the wells was completed. It has been estimated through field measurements that the 63 wells in 3rd oilfield in Siyazanneft are emitting more than 19,000 cubic meters of APG per day. (The entire Siyazanneft oil-field which has 554 wells is emitting 27 million cubic meters of gas per year resulting in a loss of 21 million cubic meters of methane to atmosphere annually.) Preliminary design and equipment specifications for undertaking the installation of gas capturing equipment were included in the feasibility report. Subsequently, in 2018, an EPC (engineering, procurement and construction) contractor was selected based on competition and he has completed and made operational the gas capture network after its successful commissioning. Using the results from the completed installations, a NAMA program is to be designed for the large-scale implementation of gas-capture installations. The key task of the consultant will be in developing such a Program which can be used by SOCAR to undertake investment projects that will reduce GHG emissions due to APG over the coming years.

1. Project Mid-Term Review’s Finding

The Mid-Term Review (MTR) of the project was undertaken in late 2017 which reviewed the progress of the project and made recommendations to be considered in the remaining duration of project. The MTR basically endorsed the approach and progress made until that time on the project. It observed that SOCAR has had its GHG Reduction Plan in place since 2010, and it has been implementing GHG emissions reduction projects of different types since then, including capturing of APG on a large scale. The MTR recognizes that SOCAR’s 2010 APG Reduction Plan used a centralized process while this project will capture and process APG near the well-head site which would be more economical and effective.

Duties and Responsibilities

The Consultant shall review the results of the pilot program which has been implemented in Siyazanneft oil-field under the Project. This includes the installation of compressors, APG cooling equipment and separators at some of the oil-wells with the aim to capture APG from these wells. Specifically, the Consultant shall undertake the following tasks:

1. Project Completion Report: Prepare a completion report of the pilot program which shall, among other things, compare the design proposed in the feasibility report with the “as-built” system. The report will reflect on the technologies that have been used and compare them with the earlier measures that are being used for capturing the APG on other oil-wells of Siyazzanneft. Actual measurements will be undertaken and comparison will be provided of the APG emissions before and after the installation of equipment. A cost/benefit analysis of the investment will be provided in terms of both a reduction of the GHG emission and productive use of the captured APG;
2. NAMA Program Design: A separate report will be prepared which uses the findings of the Project Completion Report to design a large-scale NAMA program for the capture of APG capture from the remaining oil-wells in the 3rd Oil-Field of Siyazzeneft. The report will make a detailed proposal for the replication of the completed retrofits with a preliminary list of key equipment and a cost estimate. The report shall include the 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). The report will include the following sections: (a) Time-based GHG emission reduction target from the entire 63 wells, including equipment list; (b) Project financing requirements and source of funds; (c) Strategy for training and raising awareness among technicians and decision-makers; (d) Key project risks and their mitigation.

Deliverables and payment schedule

Competencies

In order to be qualified for the assignment, the Consultant must have:

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 APG 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.

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

Individual consultants will be evaluated based on the following methodologies:

Cumulative evaluation that takes into account both financial offer and the technical expertise of the potential candidates.  A two-stage procedure has been utilized in evaluating the proposals, with evaluation of the technical component being completed prior to any price component being reviewed and compared. The Price Component was reviewed only for those individuals whose Technical Component meets the requirements for the assignment. The total number of points which individual may obtain for both components is 100.

The technical component, which has a total possible value of 70 points, will be evaluated using the following criteria:

• 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. - (15)
• Experience of design and implementation of mitigation actions to prevent flaring or venting of APG leakages in oil and gas fields - (15);
• 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 - (10);
• Brief Description of Approach to Assignment (10)
• Previous relevant working experience with UN or other international organizations - (10);
• Preferably working experience in the region of South-East Europe/ Caucasus - (10);

If the substantive presentation of a technical proposal achieves the minimum of 49 points, the competitiveness of the offered consultancy expenses will be taken into account in the following manner:

The total amount of points for the fees component is 30. The maximum number of points shall be allotted to the lowest fees proposed that is compared among those invited individuals which obtain the threshold points in the evaluation of the technical proposal. All other proposals shall receive points in inverse proportion to the lowest fees; e.g; [30 Points] x [US$ lowest]/[US$ other] = points for other proposer’s fees

NOTE: Since the website format allows to attach only one document, the applicants are kindly requested to combine all their documents including Technical and Financial proposals into one PDF file and upload it while submitting their application.

Any request for clarification must be sent in writing, or by standard electronic communication to the e-mail procurement.aze@undp.org. UNDP in Azerbaijan will respond by standard electronic mail and will send written copies of the response, including an explanation of the query without identifying the source of inquiry, to all shortlisted consultants.

UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply. All applications will be treated with the strictest confidence.