Page 12 - MEOG Week 31 2021

MEOG TENDERS MEOG

KOC sets deadline for Jurassic gas bids

KUWAIT STATE-OWNED Kuwait Oil Co. (KOC) is from five local and foreign companies … by sub-
reported to have set a September 1 deadline for mitting the lowest bids, those two firms are now
bids to construct facilities for Jurassic gas pro- closer to winning the contracts.”
duction in the north of the country. Bids received from international bidders are
Quoting company sources, the local Arabic understood to have come from UK-based Pet-
language Al-Rai daily said that KOC was await- rofac, Korean firms Samsung Engineering and
ing further bids for Jurassic gas production facil- Daewoo Engineering & Construction, JGC of
ities (JPF) 4 & 5. Japan and Kellogg Brown & Root (KBR) of the
KOC, the upstream focused division of US.
Kuwait Petroleum Corp. (KPC), is reported Meanwhile, Kuwaiti firms National Alliances
to have received the go-ahead from the gov- for Projects Co. and Al-Manafei General Trad-
ernment’s Central Agency for Public Tenders ing and Contracting were also said to be in the
(CAPT) to proceed with the tender process, with running, with the latter bidding on behalf of two
companies now asked to provide “financial and international companies.
technical” bids. The contracts for JPFs 4 & 5 will include the
Bidders have already been prequalified with construction of processing facilities and laying
the lowest bids for the two facilities following the pipelines.
receipt of qualifying offers coming from local The wider project is expected to have a total
and international firms during Q2 after they capacity of 100,000 barrels per day (bpd) of
submitted the required $28mn deposit. light crude and 300mn cubic feet (8.5mn cubic
Chinese company Jereh Oil & Gas Engineer- metres) per day of gas.
ing Corp. and local firm Spetco International However, last month, KOC was reported
Petroleum Co. have submitted the lowest bids to have cancelled plans for JPFs 6 & 7, which
so far – $490.6mn for the JPF-4 package and had been expected to cost a combined total of
$489.4mn for JPF-5 respectively. $1bn-2bn to complete.
Meanwhile, Kuwaiti firm Oil and Gas Field “KOC decided to cancel those projects as
Services Co. was reported to have submitted the part of spending rationalisation plans and opt
second-lowest bid for JPF-4 ($529.2mn) and instead for expansion of the existing facilities,”
fellow local company Alkhorayef Group was the one source was quoted as saying, noting that the
second-lowest bidder ($549.1mn) for JPF-5. projects were central to KOC’s target of achiev-
One source told Kuwait’s Al-Anba news ser- ing 950 mmcf (26.9 mcm) per day of free gas
vice: “KOC received bids for the two packages capacity by 2023.™

P12 www. NEWSBASE .com Week 31 04•August•2021