A: It is a new online registration system for Oilfield Services Companies (OSCs) wishing to be listed on Approved Vendor Lists (AVLs).
Q: Why has the Ministry decided to establish a new system?
A: The Ministry has decided that it would be beneficial to the industry to introduce an online system to manage registrations. The new system has many benefits to OSCs such as offering a more comprehensive range of AVLs, ensuring OSCs do not miss out on Invitations to Tender (ITTs), allowing OSCs to monitor all current tenders, and allowing OSCs to manage their own profile pages.
Q: When will the new OSC registrations system begin?
A: It is intended that the new OSC registrations system will open for applications on the 15th of April 2016, and from the 15th of July 2016 the new AVLs will be exclusively used. After this date the old system will be terminated and the old AVLs will be discarded.
Q: Why should I apply?
A: The Kurdistan Region is an exciting place to work, with over 25 International Oil Companies (IOCs) operating and over 40 active Production Sharing Contracts (PSCs). With production set to increase to over a million barrels per day by the end of 2016, and drilling set to grow again following an industry slow down in 2014 and 2015, the demand for oilfield services is set to grow too.
Q: Will existing registered OSCs be automatically registered on the new system?
A: OSCs currently registered will not be automatically registered on the new system, and will have to apply like any other OSC.
Q: How do I apply?
A: After the proposed launch date of April 15th, applications are to be submitted via the online system, found at www.mnronline.com/avl. Hard copy submissions are not accepted.
Q: Do we have to visit the Kurdistan Region in person, in order to register?
A: The application can be submitted from anywhere in the world, however upon acceptance, your OSC will be required to submit Kurdistan Region-Iraq Company Registration documents, that can be acquired at the Ministry of Trade & Industry (MoTI). In order to acquire these documents, you must have an office within the region.
Q: We are only suppliers. Do we still need to register with the MoTI?
A: If you are a qualified foreign supplier then you are able to register as a “Foreign Supplier”. Although this prohibits you from providing any services on the ground, it also exempts you from the requirement to register your OSC with the MoTI and thus establishing an office in the Kurdistan Region.
Q: The old system did not differentiate between local and foreign OSCs. Can I register as a local OSC in the new system?
A: Yes. It is intended that the new system allows for the registration of up to six different types of OSC, comprising two types of local OSCs, foreign OSCs, varying forms of joint ventures, and foreign suppliers.
Q: How will the Ministry ensure that OSCs listed can in fact be contacted?
A: OSCs will now receive ITTs via the new online system. They will also be responsible for keeping their own contact information up to date online.
Q: How much does it cost to register?
A: It is expected that it will cost a Block OSC (local OSC from the catchment area of the rig site who will register only work with a single IOC) 500 USD, a Local OSC (local company who will register to work across all of the Kurdistan Region) 2000 USD and a Foreign OSC 3000 USD. For Local and Foreign OSCs an AVL listing fee will also apply, which is a fee per AVL listing subcategory (group of AVLs). These fees have not yet been approved.
Q: If I fail, do I still have to pay the fees?
A: The fee is paid to evaluate your application. Whether your application is successful or not the evaluation still takes place. Therefore the fees are not refunded for failed applications. However, if you re-apply within 90 days of your failed application notice, you can do so at a discount of 30% of the normal fee.
Q: How long will the registration be valid for?
A: Registered OSCs will receive a one-year license following registration. At the end of the year the license will expire and the OSC is expected to re-apply. This is because a qualified OSC today, will not necessarily be a qualified OSC next year, and therefore the Ministry will ensure annual evaluations of all OSCs take place. The license will be renewed annually by re-submitting the application.
Q: Will the annual license renewal cost the same as a new application?
A: No. OSCs are given a discount on full fee, for annual license renewals.
Q: What are the registration criteria?
A: OSCs will be evaluated on corporate, financial, quality management, HSE management and workforce development information, as well as technical information specifically related to each of the AVLs applied for.
Q: What will the Ministry do with the money?
A: The money will go towards funding the system and local OSC development projects.
Q: How will the Ministry avoid some vendor lists becoming too big, as happened before?
A: The requirement for all service companies to be evaluated and with only those qualified being approved, will reduce the number of approved vendors. In addition, the AVL categories have been expanded and improved. A process is now in place to split an AVL when too many vendors become approved.
Q: Will IOCs be required to issue tenders to all companies on an AVL?
A: Yes. IOCs will issue ITTs via the online system and will not be able exclude any approved OSC listed on an AVL in their tender process. The Operators' tender strategy may be to go straight to tender or it may involve a pre-qualification stage for the project in question.
Q: Will unregistered OSCs be able to monitor current and past tenders?
A: There will be a publicly available tender log, which anyone can access, listing all current and past tenders, including important information such as deadlines.
Q: In future, will I be able to register a complaint against an IOC or the Ministry?
A: Complaints will be directed to the soon to be established Registrations and AVL Listing department at the Ministry.
Our world-class production sharing contracts are recognised as attractive and fair and have allowed companies to envision their investment in the region within a safe and predictable environment. Proposals for upstream can be submitted to the Ministry.
To meet the demands of rapidly expanding exploration and production activities, we have opened our doors to world-class oilfield services companies. The Ministry is committed to supporting a strong services sector that provides employment opportunities for the local workforce. Read about how to register with us as a services provider in the Kurdistan Region.