Ship Chartering Process:

Ship Chartering Process: 1. Online Tender to registered Bidders followed by online time-bound Counter Offer/Offer process for multiple rounds. 2. Price bid format enclosed as Annexure II. BPCL will float the tender and bidders will fill the respective fields and submit the tender. 3. Bidders (Brokers & Indian Ship owners) will quote in terms of Vessel details: Indian /Foreign Flag, freight rate and demurrage rate, etc. Bidders may quote multiple vessels. 4. Ranking to be based on individual vessel. In case of Voyage Charter - Freight Rate quoted will be the first criterion for ranking by system. Incase freight rate quoted is same, among Bidders, Demurrage Rate quoted will be the second criterion for ranking. If both rates are same amongst Bidders, the Bidder which submitted quote earlier shall be ranked higher. Ranking shall depend on Flag of the vessel. Indian Flag vessel(s) will be ranked first based on their quote. Thereafter Foreign Flag vessels will be ranked, based on their quote, with ranking subsequent to Indian Flag vessel(s). The first rank is stated as FIRM, the next ranks as S/O1, S/O2, S/O3 and so on. In case of Time Charter ranking shall be entered manually by BPCL. 5. Comparative statement of offers will be generated after tender opening, with system generated / BPCL manual input of ranking as per item 4 above, in terms of individual vessels quoted. 6. Counter Offer/Offer Process: 6.1. BPCL will enter Counter Offer minimum rate as well as maximum rate for both freight rate and demurrage rate in case of Voyage Charter and only freight rate in case of Time Charter. 6.2. There will be provision to revise the above maximum rate by BPCL, two times. 6.3. Round 1 of Counter Offer will be published by BPCL, stating freight rate and demurrage rate not lower than the minimum limit entered, as per item 6.1. above, with defined validity time. 6.4. Bidders will enter their Offer quotes of freight rate and demurrage rate, within the validity time. 6.5 Bidders will have option to withdraw a particular vessel offered, in any round. They have the option to re-enter the vessel in any subsequent round based on approval of BPCL. 6.6 At the end of Round 1, Ranking will be generated by system or entered manually by BPCL as per item 4 above, for vessels as per item 5 above. In case any Bidder does not submit Offer for a vessel within the valid time, their quote in the initial offer or in the previous round, whichever is later, shall be considered for ranking. In case a Bidder withdraws a vessel, no rank will be generated for the vessel. 6.7 At the end of each round, Bidders shall be able to view only their rank generated and a confirmatory email and SMS will be sent to them. BPCL will be able to view a comparative statement Vessel Name, Bidder, Freight Rate, Demurrage Rate, Bid

Submission Date & Time. 6.8 The next Round of Counter Offer will be published by BPCL, in the same manner as above, stating freight rate and demurrage rate not lower than that entered in the previous round and not higher than the maximum limit, as per item 6.1. above. 6.9 The Rounds will continue till an Offer is received from a Bidder, matching BPCL s Counter Offer of both Freight Rate and Demurrage Rate. 6.10 In case the matching Offer is from Indian Flag vessel, carryout Acceptance as per item 6.14 below. 6.11 In case the matching Offer is from Foreign Flag vessel, and no Indian Flag vessel has quoted against the tender, carryout Acceptance as per item 6.14 below. 6.12 In case the matching Offer is from Foreign Flag vessel, and Indian Flag vessel(s) has/have quoted against the tender, carryout Right of First Refusal (ROFR) as per item 6.13 below. 6.13 ROFR mentioning the matching Offer as per item 6.9 above, is issued to the highest rank Indian Flag vessel. The concerned Bidder enters their choice as ROFR Accepted or ROFR Not Accepted. In case the Indian Flag vessel accepts to match the Offer as per item 6.9 above, carryout Acceptance as per item 6.14 below. In case the highest rank Indian Flag vessel does not accept to match the Offer as per item 6.9 above, carryout issue of ROFR mentioning the matching Offer as per item 6.9 above, to the next highest rank Indian Flag vessel. Loop on the ROFR process. In case no Indian Flag vessel accepts ROFR, carryout Acceptance (as per item 6.15 below) of Offer from Foreign Flag vessel as per item 6.12 above. The record of ROFR acceptance / non acceptance should appear as subsequent round(s) in the consolidated report, as per item 6.15. 6.14 Acceptance will be marked by BPCL against the respective vessel. The respective Bidder will be able to view the message Accepted on Subjects on their screen. Confirmatory email/sms will be sent to the Bidder. Other Bidders will be able to view the message Cargo Covered on their screen. Confirmatory email/sms will be sent to these Bidders. 6.15 Generate a consolidated report mentioning vessel-wise Initial Offer, Round 1 Counter Offer, Round 1 Offer, Round 1 rank, next Round Counter Offer, next Round Offer, next Round rank, till the last round. In the last round the rank for the accepted vessel will be mentioned as Accepted on Subjects. 6.16 Provision for BPCL to change status from Accepted on Subjects to either All Subjects Lifted and Clean Fixed or Released from Subjects. 6.17 In case of All Subjects Lifted and Clean Fixed the tender is concluded. In case of Released from Subjects the offer / counter offer process is continued for all the other Bidders till the process is concluded to the status of All Subjects Lifted and Clean Fixed in loop or the status of the tender is changed to Tender Cancelled

Annexure II: Ship Chartering Tender Format: Tender Format Remarks for format development Sr. Description To be filled by No. 1 Tender No. BPCL Text field 2 Date BPCL Date field 3 Offer Validity BPCL Time & Date field 4 Type of Charter BPCL Combo Selection -- Voyage Charter / Time Charter 5 Charterers BPCL Combo Selection BPCL/BORL 6 Cargo Quantity minimum BPCL Text field 7 Cargo Description BPCL Text field 8 Period of Charter BPCL Text field (only in case selection in item 4 above is Time Charter, else grey field) 9 Load Port BPCL Text field 10 Discharge Port BPCL Text field 11 Laycan BPCL Text field 12 Freight Rate to be quoted in: BPCL Combo Selection -- Worldscale/ Lumpsum (USD Million) (only in case selection in item 4 above is Voyage Charter, else) USD Per Day Pro-rata (USD PDPR) 13 Other Terms and Conditions if any BPCL Text field 14 Subjects Stem, Suppliers, Comment Receivers, Terminal, Charterers Management Approval 15 Owners to provide updated Q88 Comment along with offer 16 Owners/Disponent Owners Bidder Text field 17 Owner's Address Bidder Text field 18 Vessel IMO number Bidder Text field 19 Vessel Name Bidder Text field 20 Vessel Type (VLCC /Suezmax Bidder Text field /Aframax /VLGC etc) 21 Built Bidder Year field 22 Approvals Bidder Text field 23 Last SIRE By / Date/ Place Bidder Text field 24 Guaranteed Speed (knots) Bidder Text field

25 Flag Bidder Combo Selection Indian / Foreign, If Foreign - Please provide Country name (text field) 26 Summer Dead Weight Bidder Text field 27 Summer Draft Bidder Text field 28 Hull type Bidder Text field 29 Itinerary Bidder Text field 30 Last cargo Description Bidder Text field 31 Rate Quoted: Comment 32 Freight Rate: Worldscale/ Lumpsum USD million/usd PDPR (selection from item 12 above Bidder Numeric field (1st Ranking Criterion only in case selection in item 4 above is Voyage Charter) 33 Overage Bidder Text field (only in case selection in item 4 above is Voyage Charter) 34 Demurrage Rate in USD PDPR Bidder Numeric field (2nd Ranking Criterion only in case selection in item 4 above is Voyage Charter, else grey field) 35 Bidder's Confirmation on Minimum Bidder Yes/No (combo field) Qty 36 Address Commission BPCL Numeric field (percentage) 37 Brokerage Commission on freight, dead freight and demurrage, along with applicable Service tax (in %) Bidder Numeric field (percentage) 38 Brokerage Commission Payable to Bidder Text field 39 Other tender conditions for Coastal Bidder Text field (long text) run: 40 Other Terms and Conditions if any Bidder Text field (long text) 41 Broker Contact no. Bidder Text field Annexure III: Jobs and responsibilities of Resident representative: 1. Facilitate BPCL staff in the creation and floating of tenders 2. Facilitate BPCL officers for the enrollment of vendors in the e-tendering system. 3. Liaise with vendors and render assistance for filling up of tenders including clearance of all of their queries. 4. Facilitate BPCL in the opening of tenders. 5. Assist in the downloading of bid evaluations from the e-tendering package. 6. Ensure that all tenders are closed in the system after completion of tender.

7. The representatives should be present on all working days between 9:00 am to 17:30 hrs. The BPCL holidays of the particular office of posting shall be followed by this staff. 8. All the deliverables including the floating of tenders has to be on-time as specified by BPCL. In case the tenders are delayed due to the reasons attributable to service provider / resident representative including absence from office, delay of every business day would attract a penalty per day as per the following: For software failure: 2 X per day penalty For document preparation delay: 1 X per day penalty Per day penalty would be Rs.5000 per day Manpower has to comply with the complete scope of work as determined in the tender document and the discipline/rules of the Corporation. In case of absence of work beyond 2 days, BPCL shall deduct Rs.1000 per day in addition to the penalty as mentioned above. A. SECURITY AND ACCESS PRIVILEGES: The E- procurement / E-Tendering solution should have the following Security and access privileges inbuilt in the solution and should comply with the Guidelines for compliance to quality requirement of e-proc system (copy enclosed). 1.1. Public Key Infrastructure (PKI) The e-procurement system s security architecture should be fully based on PKI as defined as per IT Act 2000. This shall include use of digital certificates for digital signatures, encryption, hash generation and secure web server standards. Class 2/3 digital certificates with 1024 bit key strength to be used. The System should have integrated complete certificate, encryption, digital signature, notarization and time stamping services vis-a-vis its application. The System should use full asymmetric encryption for bid data using digital certificates. The data shall be both transmitted and stored in encrypted form. 1.2. Authentication The e-procurement system should use a two-factor authentication method. Authentication can be through user id and single or double password over first over http and https depending on requirements or can be entirely through digital certificates in conjunction with password. Digital Certificates can be stored onsmart cards or USB tokens. Biometric authentication can be integrated and supported. Passwords are hashed/encrypted on the client before being transmitted on the network. User administrator can reset the password for all users (vendor / buyer user); the reset password can either be sent by encrypted. Email or else is communicated over telephone line after due verification of the user identity by the user administrator as well as procedures such as Secret Question/Answer. The password assigned by the administrator can only be used once and after logging in the user has to change his password. 1.3. Bid Security Bid security should be handled differently at different stages of bidding. To ensure bid security while the bid is under preparation online bids must be encrypted with the vendor s own public

key (part of his digital certificate). This makes sure that no one but the vendor himself can have access to data while the bid is under preparation even though the data resides on the server. Unbreakable and non-compromisable bid security must be ensured. This shall ensure there is no way any bid can be viewed before all bids for the tender are locked. Bids shall be locked by enforcing submission of signed hash (digital fingerprint) of each bid before a designated cut-off date and time. The bid shall be also time stamped at this stage. Notarization of the bids should be optionally supported. At the time of submission, bids shall be encrypted with the buyer s public key to ensure that only specific buyer can open the bid. Any tampering with any aspects should stop the server. The Bid Security solution should allow checking the security and integrity of the process any time. 1.4. Encryption Key Management E-Proc Solution should have necessary Encryption Key Management provision to allow multiple authorized users to open bids concurrently in case of large number of bids each containing large number of forms and in case of officials in charge of the tender getting transferred. 1.5. Access Groups Users of the E-Procurement system shall be categorized as own, vendor, system user, user/vendor administrators and public. Each category may be further classified into access groups except the public user. A user may belong to more than one access group within his category. The user administrator shall perform the task of assignment of category and user groups. To enforce discretionary limits on transactions authority levels may also be used. 1.6. Access Privileges Access privileges shall be assigned to access groups. Access privileges shall be task and resources based and not hierarchical. 1.7. Resource Based Privileges Resource based access privileges shall be deployed to ensure permissions to menu options, pages and forms. This service shall factor the access group of the user and the accesses to this group. 1.8. Task Based Privileges In addition to resource based privileges, the solution should provide task based privileges based on workflow requirements.. In addition to access groups, user discretionary levels (in terms of value of the transaction being handled) can be checked for selected legs in a workflow. 1.9. Secure Access Control Service Secure Access Control service shall do the following tasks: It shall keep track of access groups and privileges that the access groups have for each of the resource elements- to allow a centralized control for user access. Checks appropriate protocol to be used for each web page served by the server and redirect the page request accordingly. This makes it possible to have an arbitrary mix of web pages some of which are served over http while others over https protocol. The service shall enforce session state and session time

outs for user logins. Session time outs can be set to any reasonable time period. Maintain basic user activity logs. A complete list of resources accessed by the user in each session can be logged.it also ensures that same user does not login simultaneously from multiple clients. This is to avoid the tendency to share passwords that can leave audit trails meaningless. 1.10. System security Apart from specific security features described above, general features should include separation of web, application and database server on different machines. All the servers should be behind a firewall. The firewall shall be configured to block all ports except http and https. So the application server and database server are completely blocked to access from Internet. The database access by the application is controlled through a two-part password. Only the administrator of the database machine shall know the full admin password for database access. For application access first part of the password is known to the system administrator of the application server machine and the other part of the password to the compiler of the code. Once the application is loaded the Tender Tracker Service continuously monitors the database activity. Any change to the data outside of the application will throw the Tender Tracker Service on application server and the database on the database server out of synchronization. This ensures that no single person can tamper with data even if s/he has access to it. The Tender Tracker Service is sensitive to server clock changes and stops the server along with itself if the clock is changed. Database server and application server do not have a public IP and are accessible to the web server only behind a firewall on a separate network segment. Any attempt to change the server time stops the application irrevocably. The application needs to be completely reinstalled before it can work again. FTP ports are blocked. File transfers for document upload and download are done over http or https protocols and the name of the document as it is uploaded is changed by the application so that malicious files even if uploaded by a valid user can not be activated on the server.