A TECHNICAL PROPOSAL

FOR

IMPLEMENTING A BUSINESS SOLUTION

FOR

COLLECTION MANAGEMENT

CLAIMS MANAGEMENT

MARKETERS RECONCILIATION
 TABLE OF CONTENTS
1. Executive Summary

2. Introduction
2.1 Background

2.2 Description of Problem

3. Project Description/ Program

3.1 Solution project scope

3.2 Solution project schedule/ Work breakdown structure

3.3 Solution project organization chart

3.4 Solution project work method plan

3.4.1 Tank gauge solution work execution statement

3.4.1.1 Introduction

3.4.1.2 Scope

3.4.1.3 References

3.4.1.4 Work procedure

3.4.1.5 HSE and community affairs

3.4.1.6 Personnel distribution

3.4.1.7 Equipment/ materials distribution

3.4.1.8 Attachments

3.4.2 Product trucks tracking work execution statement

3.4.2.1 Introduction

3.4.2.2 Scope

3.4.2.3 References

3.4.2.4 Work procedure

 3.4.2.5 HSE and community affairs

3.4.2.6 Personnel distribution

3.4.2.7 Equipment/materials distribution

3.4.3 Business workflow software

4. Budget

5. Qualifications
5.1 Company profile and Organizational structure

5.2 Verifiable list of previous similar works executed

5.3 Evidence of Incorporation of Company by CAC

5.4 Company Tax Clearance Certificate

5.5 VAT Registration and evidence of past remittances

5.6 Experience/Technical Qualification of Key Personnel with certificates

5.7 Audited annual financial report of company for 3 years

5.8 Evidence of Financial Capability (Bank Statements for last 6 months)


EXECUTIVE SUMMARY
Petroleum products supply chain management (collection management, claims
management and marketers reconciliation) cannot be over emphasized in the
down stream sector of the oil and gas industry in Nigeria. The purpose of this
proposal is to provide an integrated business solution for petroleum products
supply chain management.
The first goal of this proposal is to provide a solution to collection management
which includes implementing a tank gauge solution using volume measurement
(physicalization) devices.
The second goal is to develop a frame work solution for claims management
which includes tracking the entry and exit of trucks from depots using tracking
devices and tracking the movement of trucks using GPS, GPRS, RFID and/ or any
other applicable technology.
The third goal is to also develop a solution for reconciliation management which
will include reimbursing marketer’s transportation costs by making bank to bank
transfers (e-payments) of exact amount owed marketer after proper
authorization checks of way bills/receipts/invoices, depending on agreed time
schedule for payments between marketer & Board and implement a training
solution for staff of Petroleum Equalization Fund Management Board.
While the first goal can be attained by installing tank volume gauges, alarms and
sensors to the product tanks and networking same through a SCADA to a control
center run by software, attaining the second goal is by installing automatic
vehicle locator devices to product trucks and interphasing same with SCADA in a
control center. Consequently, the third goal which is dependent on the other two
is attained by implementing an e-payment structure and robust authentication
procedures.
The budget for implementing these solutions strictly depends on carrying out site
surveys and investigations to determine the magnitude of work thus we have not
included it. We will furnish the Board with this information in subsequent
communications.
We are an EPC company (UPTIMAX TECHNOLOGIES) which has extensive
experience in the oil and gas industry spanning pipeline and piping design and
construction, design & fabrication and installation of oil and gas process
equipment, maintenance of industrial machinery, petroleum products marketing
and project management. We also provide consultancy services in engineering
design and designing custom-made solutions in various industries.

INTRODUCTION
This is a technical proposal that provides an integrated business solution for collection management,
claims management and marketers reconciliation in the down stream oil and gas industry. This
proposal arose from the request of the Petroleum Equalization Fund (Management) Board for technical
proposals to solve the problems highlighted above.

 BACK GROUND

Supply chain management in the down stream sector of the oil and gas industry cannot be over
emphasized. The above highlighted problems essentially fall under this scope. Oil tankers transport
petroleum to oil terminals which are connected to refineries through a pipeline network. Decisions at
this level incorporate transportation modes and supply chain planning and scheduling. Crude oil is
converted to products at refineries, which are connected to each other by pipeline networks. Products
generated from the refineries are then sent to distribution centers via pipelines or vessels. From this
level onwards, products can be transported either via pipeline networks or trucks depending on
consumer demands. In some cases, products are also transported by vessels or even trains. In general,
production planning includes individual production levels for each product as well as operating
conditions for each refinery in the network, whereas product transportation involves scheduling and
inventory management of the distribution network. The figure below shows a pictorial representation of
petroleum supply chain management.

FIG. 1 PETROLEUM SUPPLY CHAINS

  DESCRIPTION OF PROBLEM

The problem which is a supply chain management one essentially involves the following:

• Collection management
• Claims management
• Marketers reconciliation

The Board which is the Government agency responsible for the equalization of petroleum products
prices across the nation by collecting allowances on refined and imported petroleum products and
reimbursing marketers cost of transportation of petroleum products across the length and breadth of
the country, identified the following objectives as being of primary concern:

To automate fully the processes of accruing and collecting allowances for delivery of locally
refined or imported petroleum products into the tanks of marketers.

To monitor the distribution of petroleum products by trucks within the country.

To register the loading of trucks with petroleum products and track the movement of the truck
as well as the content, confirm proof of delivery and trigger a workflow process for reimbursing
the marketer for cost of transportation.

To automate the process of reconciliation between what is owed to the Board by the marketer
and vice versa.

To provide a full reporting frame work for all activities related to the above

Integrate the solution to the Board’s ERP (SAP Business One).

This proposal will outline a solution that will seek to meet and exceed the concerns detailed
above.

PROJECT DESCRIPTION/PROGRAM
The solutions to the problems detailed above are described in detail in the following pages.

1.0 SOLUTION PROJECT SCOPE

The following requirements were identified by the Board and have served as a guide. However,
our proposed solution exceeds these requirements:

Implement a tank gauge solution using accurate volume measurement (physicalization)
devices.

Track the entry and exit of trucks from depots using tracking devices

Track the movement of trucks using GPS, GPRS, RFID and/or any other applicable
technology.

Business workflow software.

Reporting software

Development of application programs to interface with SAP B1 Software Development
Kit(SDK) or any other integration approach.

Training.
2.0 SOLUTION PROJECT SCHEDULE/ WORK BREAK DOWN STRUCTURE

1.0 PETROLEUM PRODUCT SUPPLY CHAIN MANAGEMENT

1.1 COLLECTION MANAGEMENT

1.1.1 Request Letter Off Intent from marketers.
1.1.2 Request Bank Payment Undertaking from marketers.
1.1.3 Prepare an optimized supply chain plan/schedule for products transfer to marketers tanks.
1.1.4 Implement a tank gauge solution using volume measurement(physicalization) devices.
1.1.5 Issue a quality/quantity inspection report to marketer,detailing price of product .
1.1.6 Request bank transfer teller of monetary equivalent of product required by marketer into the Board’s
accts..
1.1.7 Issue a product transfer permit to marketer to innitiate transfer of product into tanks.

1.2 CLAIMS MANAGEMENT

1.2.1 Prepare an optimized supply chain network design using GAMS software.

1.2.2 Ensure that all trucks loading products are tracked using automatic vehicle locator devices & integrated into a
control center using GPS & GPRS.

1.2.3 Register the loading of trucks with petroleum products by codifying each truck tracked with an automatic vehicle
locator device & inputting data into control center.

1.2.4 Ensure that the code for each truck is included in the way bill documentation.

1.2.5 Ensure proof of delivery by use of way bills/ receipts printed in triplicate & signed by product receiving supervisor
and sent via e-mail to Board’s e-mail .

1.2.6 Determine exact transportation costs using GAMS optimization software for use as a check.

1.3 RECONCILIATION MANAGEMENT

1.3.1.1 Ensure & check authorization from the Board Mgt. & the marketer through issuance of waybills/receipts
authenticating proof of delivery & input data into SAP B1 software.

1.3.1.2 Determine transportation costs using GAMS software for checking purposes.

1.3.1.3 Receive invoice of transportation costs from marketer via e-mail.

1.3.1.4 Reimburse marketer’s transportation costs by making bank to bank transfers (e-payment) of exact
amount owed marketer after proper authorization checks of way bills/receipts/invoices, depending
on agreed time schedule for payments between marketer & Board.

1.3.2 Training

1.3.2.1 Plan and schedule training periods for staff of PEF Board in the use of the various software
(Fuelsmanager, GAMS etc.) and train staff according to schedule.
3.0 SOLUTION PROJECT ORGANISATION CHART

MANAGING DIRECTOR

PROJECT OPERATIONS DIRECTOR

CLIENT PROJECT
REP.

TRAINING MANAGER PROJECT MANAGER HSE MANAGER

H.R./ADMIN MANAGER

• Training • Safety
Officers • Accountant
Officer • PRO • Secretary
• Software • Medic
• Personnel
Engineers
Officers
• Systems
• Mess officer
Engineers PROJECT CTRL

INSTRUMENTATION INSTALLATION PROCUREMENT

SUPERINTENDENT SUPERINTENDENT SUPERINTENDENT

INSTRUMENTATION • FIELD ENGRS.

ENGRS. • FOREMAN
• WELDERS
• Instrument Tech • BLASTERS LOGISTIC OFFICER MATERIALS
• PAINTERS CONTROLLER
SYSTEMS ENGRS. • TECHNICIANS • Drivers
• Store Keeper
• EQUIPMENT OPS.
• ICT Tech. • Security
• HELPERS

ELECTRICAL ENGR.

• Electricians

SOFTWARE ENGR
 4.0 SOLUTION PROJECT WORK METHOD PLAN
We have identified two major areas of work associated with providing a solution to the problems
detailed above. We have thus sought to highlight them. There include: Tank gauge solution
implementation and Tracking of product trucks.

4.1 TANK GAUGE SOLUTION WORK EXECUTION STATEMENT

4.1.1 INTRODUCTION

A key factor in executing projects is to have a clear understanding of what the goals are and defining
them. Setting out targets, procedures and strategies for achievement of same becomes easy.

Implementing a tank gauge solution as we propose, essentially involves the installation of electronic
tank gauges, tank-side monitors, alarms and temperature sensors and interphasing same with tank
gauge interphases, wireless communications and integrating all systems(SCADA) into a control center
run by a software(Fuelsmanager).

All site survey work, engineering, installations and technical documentation will be carried out with
strict adherence to industry standards and codes of practice.

4.1.2 SCOPE

This procedure details the activities to be carried out in the implementation of a tank gauge solution
using accurate volume measurement (physicalisation) devices. It includes equipment, materials and safe
practices to be implemented during execution.

4.1.3 REFERENCES

IEEE TRANSACTIONS ON PROFESSIONAL COMMUNICATION, CLARK E. BECK VOL. PC-26, NO. 2, JUNE
1983

NFPA - National Fire Protection Association

NEC - National Electrical Code
IEEE - Institute of Electrical, Electronics Engineers
NFPA 70 - National Electrical Code (NEC)
NFPA 70B - Recommended Practice for Electrical Equipment Maintenance
NFPA 70E - Standard for Electrical Safety in the Workplace
NFPA 72 - National Fire Alarm Code
NFPA 101 - Life Safety Code
NFPA 70E / IEEE 1584 Based Arc Flash Hazard Online Calculator
Standard S5.1. - Instrumentation, Systems, and Automation Society (ISA)
ISO 9001 – Quality Systems: Model for quality assurance in design, development, production,
installation and service.
BS CP 5930 – Code of practice for site investigation.
DEP 32.37.00.33-Gen - SPDC Design and engineering practice- mounting of plant instruments.
DEP 32.31.00.32-Gen – SPDC Design and engineering practice – Instrument engineering procedures.
DEP 62.10.09.11-Gen - SPDC Design and engineering practice- Instrument installation procedures.
DEP 30.10.60.19-Gen – SPDC Design and engineering practice- Welding procedure specifications.
DEP 00.00.07.30-Gen – SPDC Design and engineering practice- Content and drafting of a functional
specification of a technical specification and classification of products and
processes.
DEP 32.00.00.11-Gen – SPDC Design and engineering practice- Human machine interphase in a control
room.

4.1.4 WORK PROCEDURE

 Mobilize to site
 Carry out site survey of tank farm to carry out a needs assessment for tank gauge solution
implementation.
 Prepare a plan and schedule for implementing solution.
 Prepare a process flow and instrumentation diagram (PFID) and network lay out design of entire
system (SCADA).
 Cold cut/bore holes atop tanks for installing tank gauges & other devices as detailed in PFID and
install devices via welding and bolting of devices to tanks.
 Install soft wares into PCs in control center.
 Integrate devices as detailed in PFID to SCADA and control center.
 Carry out a test run of system to ensure all components are working.
 Prepare project close-out reports and as built diagrams and commission project.
 Demobilize.

4.1.5 HSE AND COMMUNITY AFFAIRS

All works carried out in the implementation of tank gauge solution shall be carried out according to
approved plans of client. These include:

 Project HSE plan

 Health plan
 Security plan
 Environmental plan
 Community affairs plan
 Project HEMP
 Waste management plan
 Spill response procedure
 Journey management plan and all other relevant plans and procedures pertaining to project.
4.1.6 PERSONNEL DISTRIBUTION

The personnel required for the project as envisaged by us, are as follows:

S/N PERSONNEL FUNCTIONS

1 Project operations director Interphases with client project rep.,managing director,
training manager, HSE manager, and admin. manager and
project manager.
Ensures objectives of both client and company are met.
2 Project manager Carries out management of all project works.
Supervises the instrumentation supt., installation supt.
And procurement supt., and all QA/QC.
3 Training manager Carries out management of all training activities.
Supervises training officers, systems engrs. and software
engrs.
4 HSE manager Carries out management of all HSE and community affairs
activities. Supervises HSE officers, PRO and medics.
5 Admin manager Carries out management of all administrative tasks as
required by the project. Supervises accountants, personnel
officers, secretary etc.
6 Instrumentation superintendent Supervises all instrumentation works. Ensures work is
carried out according to design (PFID). Supervises
instrumentation engrs., systems engrs.,electrical engrs.
and soft ware engrs.
7 Installation Superintendent Supervises all installation works and ensures work is
carried out according to design and specification.
Supervises field engrs., foremen.
8 Procurement Superintendent Supervises all material procurement and store control
activities. Supervises logistics officer and store keeper.
9 Instrumentation Engineers Carries out preparation of PFIDs, instrumentation works
and supervises instrumentation technicians.
10 Systems Engineers Carries out integration of SCADA to computers. Advises on
type and make of PCs for procurement and supervises ICT
technicians.
11 Electrical engineers Carries out preparation of electrical network design
drawings, supervises electricians and works.
12 Soft ware Engineers Carries out SCADA activities in control center and install all
relevant soft wares required for project.
13 Field Engineers Carries out supervision of all tank preparation works (cold
cutting, welding, bolting etc) for installation of gauges.
Supervises foreman, welders, painters etc. Prepares site
work progress reports.
14 HSE Officer Carries out tool box briefings, issuance of PPE and ensures
all site works are carried out in safe manner.
15 PRO Liaises with community on all issues concerning project.
Relays information to community on behalf of company.

16 Foreman Monitors all work activities on site. Receives and issues

materials to work men, etc.
17 Equipment Operators Operate all major equipment required on site.
18 Welders Carry out all welding activities on site.
19 Painters Carry out all painting works
20 Helpers Assist in work activities on site.

4.1.7 EQUIPMENT/MATERIALS DISTRIBUTION

The equipment/materials required for the project as envisaged include:

S/N EQUIPMENT/MATERIALS FUNCTION

1 Welding machine Carry out all welding activities.
2 Welding equipment(cables,ovens etc). Welding.
3 Metal cutting set Metal cutting operations.
4 Electrical equipment tools box Electrical installations.
5 Crane Lifting of equipment, materials and men.
6 Instrumentation tools box Carrying out instrumentation installations.
7 Rigging equipment(slings,hooks,ropes Lifting operations.
& shackles).
8 Tank gauges. Volume measurements.
9 Alarms, sensors, monitors, Tank gauge solution implementation.
transmitters, tank gauge interphases.
10 Cabling and wireless communications Tank gauge solution implementation.
devices(Bluetooth, cellular).
11 Personal computers, soft wares. Control centre coupling.
12 Mechanical equipment tools box. Bolt tensioning.
13 Personnel bus. Transportation of men
14 Truck. Transportation of materials.
15 Generator. Electrical power.
16 Movable site cabin Site office
4.1.8 ATTACHMENTS

4.1.8.1 TYPICAL TANK GAUGE IMPLEMENTATION SOLUTION

4.2 PRODUCT TRUCKS TRACKING WORK EXECUTION STATEMENT

4.2.1 INTRODUCTION

A key factor in executing projects is to have a clear understanding of what the goals are and defining
them. Setting out targets, procedures and strategies for achievement of same becomes easy.

Implementing the tracking(entry and exit) of trucks carrying petroleum products from depots and their
movement around the country using GPS/GPRS, as we propose will involve the installation of automatic
vehicle locator devices(hard ware) on each truck loading petroleum products from depots and
integrating system into a SCADA and control center run by a web based GSM/GPRS/GPS soft ware.

All site survey work, engineering, installations and technical documentation will be carried out with
strict adherence to industry standards and codes of practice.

4.2.2 SCOPE

This procedure details the activities to be carried out in the implementation of the tracking (entry and
exit at depots) of petroleum product trucks and their movement around the country. It includes
equipment, materials and safe practices to be implemented during execution.

4.2.3 REFERENCES

IEEE TRANSACTIONS ON PROFESSIONAL COMMUNICATION, CLARK E. BECK VOL. PC-26, NO. 2, JUNE
1983

NFPA - National Fire Protection Association

NEC - National Electrical Code

IEEE - Institute of Electrical, Electronics Engineers

NFPA 70 - National Electrical Code (NEC)

NFPA 70B - Recommended Practice for Electrical Equipment Maintenance

NFPA 70E - Standard for Electrical Safety in the Workplace

NFPA 72 - National Fire Alarm Code

NFPA 101 - Life Safety Code

NFPA 70E / IEEE 1584 Based Arc Flash Hazard Online Calculator

Standard S5.1. - Instrumentation, Systems, and Automation Society (ISA)

ISO 9001 – Quality Systems: Model for quality assurance in design, development, production,
installation and service.

BS CP 5930 – Code of practice for site investigation.

DEP 32.37.00.33-Gen - SPDC Design and engineering practice- mounting of plant instruments.

DEP 32.31.00.32-Gen – SPDC Design and engineering practice – Instrument engineering procedures.

DEP 62.10.09.11-Gen - SPDC Design and engineering practice- Instrument installation procedures.

DEP 00.00.07.30-Gen – SPDC Design and engineering practice- Content and drafting of a functional
specification of a technical specification and classification of products and processes.

DEP 32.00.00.11-Gen – SPDC Design and engineering practice- Human machine interphase in a control
room.

4.2.4 WORK PROCEDURE

The work procedure for product truck tracking is as follows:

 Carry out a site survey of depot to determine area for setting up field operations site.
 Prepare a plan and schedule for tracking of petroleum product trucks of marketers.
 Procure all materials required for tracking trucks.
 Mobilize men and materials to site.
 Codify trucks details for easy tracking.
 Ensure that all trucks are well aligned and ready for tracking.
 Install automatic vehicle locator devices on each truck.
 Integrate automatic vehicle locator devices with MTN’S web-based portal for vehicle
tracking.
 Connect PCs with web-based portal to a large (24”) screen monitor for online real time
viewing of tracked trucks using GSM/GPRS enabled through MTN telecoms network.
 Test run all components and entire system to ensure that all are working and online in
control centre.

4.2.5 HSE AND COMMUNITY AFFAIRS

All works carried out in the implementation of petroleum product truck tracking shall be carried out
according to approved plans of client. These include:

 Project HSE plan

 Health plan
 Security plan
 Environmental plan
 Community affairs plan
 Project HEMP
 Waste management plan
 Spill response procedure
 Journey management plan and all other relevant plans and procedures pertaining to project.
4.2.6 PERSONNEL DISTRIBUTION

The personnel required for the project as envisaged by us, are as follows:

S/N PERSONNEL FUNCTIONS

1 Project operations director Interphases with client project rep.,managing director,
training manager, HSE manager, and admin. manager and
project manager.
Ensures objectives of both client and company are met.
2 Project manager Carries out management of all project works.
Supervises the instrumentation supt., installation supt.
And procurement supt., and all QA/QC.
3 Training manager Carries out management of all training activities.
Supervises training officers, systems engrs. and software
engrs.
4 HSE manager Carries out management of all HSE and community affairs
activities. Supervises HSE officers, PRO and medics.
5 Admin manager Carries out management of all administrative tasks as
required by the project. Supervises accountants, personnel
officers, secretary etc.
6 Instrumentation superintendent Supervises all instrumentation works. Ensures work is
carried out according to design (PFID). Supervises
instrumentation engrs., systems engrs.,electrical engrs.
and soft ware engrs.
7 Installation Superintendent Supervises all installation works and ensures work is
carried out according to design and specification.
Supervises field engrs., foremen.
8 Procurement Superintendent Supervises all material procurement and store control
activities. Supervises logistics officer and store keeper.
9 Instrumentation Engineers Carries out preparation of PFIDs, instrumentation works
and supervises instrumentation technicians.
10 Systems Engineers Carries out integration of SCADA to computers. Advises on
type and make of PCs for procurement and supervises ICT
technicians.
11 Electrical engineers Carries out preparation of electrical network design
drawings, supervises electricians and works.
12 Soft ware Engineers Carries out SCADA activities in control center and install all
relevant soft wares required for project.
13 Field Engineers Carries out supervision of all installation of automatic
vehicle locator devices. Prepares site work progress
reports.
14 HSE Officer Carries out tool box briefings, issuance of PPE and ensures
all site works are carried out in safe manner.
15 PRO Liaises with community on all issues concerning project.
Relays information to community on behalf of company.
16 Foreman Monitors all work activities on site. Receives and issues
materials to work men, etc.
17 Equipment Operators Operate all major equipment required on site.
18 Instrumentation(Tracking) Carry out all installation of automatic vehicle locator
technicians devices activities on site.

19 Helpers Assist in work activities on site.

4.2.7 EQUIPMENT/MATERIALS DISTRIBUTION

The equipment/materials required for the project as envisaged include:

S/N EQUIPMENT/MATERIALS FUNCTION

1 Automatic vehicle locator devices Products truck tracking.

2 Electrical equipment tools box Electrical installations.

3 Instrumentation tools box Carrying out instrumentation installations.

4 Large screen monitors. Control center assembly.

5 Cabling and wireless communications Control center assembly.
devices(Bluetooth, cellular).
6 Personal computers, soft wares. Product truck tracking implementation.

7 Personnel bus. Transportation of men.

8 Truck. Transportation of materials.

9 Generator. Electrical power.

10 Movable site cabin Site office

4.3 BUSINESS WORK FLOW SOFT WARE

The following are the business work flow soft ware that we have identified as essential in the
implementation of the solution:

 FuelsManager whose features include:

• Tank gauging
• Inventory management
• Alarm management
• Reporting
• Real-time SCADA
• SAP Integration
• Inventory reconciliation
• Order entry and management
• Web server
 GAMS Optimization soft ware whose features include:
• Portability.
• User interphases.
• Model library.
• Documentation which shows the elegance of mathematical representation.
 MTN’s web-based portal for vehicle tracking whose features include:
• Control center
• Routing
• Fleet management
 Microsoft Office suite.

BUDGET
The budget for implementing the solution is strictly dependent on the magnitude of work
envisaged and carrying out site surveys and investigations and obtaining data pertinent to
implementation of solution. We will furnish the Board with this information subsequently.

QUALIFICATIONS