Page 5 - MEOG Week 37
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MEOG COMMENTARY MEOG
2A and 2B of rebuilding accommodation facili- Umm Niqa fields.
ties at Al-Ahmadi. The plants were commissioned by the US’
Gunning for gas Schlumberger and the local Spetco in 2018 –
It is not all bad news, though, with Al-Rai report- each producing roughly 1bn cubic metres per
ing this week that bids have been invited for a year of gas and 40,000 bpd of light oil.
$1bn contract to construct facilities for Jurassic KOC initially planned to carry out the second
gas production in the north of the country phase of development through a single EPC con-
The newspaper reported that nine companies tract – tendering the estimated $3.9bn so-called
are in the running for the contract, following an Jurassic Gas 1 facility in September in 2018
invitation to bid from the government’s Central calling for a plant with capacity of 6.1 bcm per
Agency for Public Tenders (CAPT) for Jurassic year at the Al-Ahmadi hydrocarbons hub near
gas facilities 4 & 5. Kuwait City.
Quoting local industry sources, Al-Rai said However, the tender was cancelled two
that the deposit for bidders had been set at months later in the wake of disputes over con-
$28mn, with the deadline for bids set for Decem- tracting strategy and – with the authorities hav-
ber 22. ing agreed to revert to dividing up the scheme
International bidders are understood to be into several EPSs – the project was further
UK-based Petrofac, Korean firms Samsung delayed by disagreements between KOC and the
Engineering and Daewoo Engineering & Con- CAPT over the prequalification process.
struction, JGC of Japan, and Kellogg Brown &
Root (KBR) of the US. Price cut
Meanwhile, the Kuwaiti firms involved are In related news, Kuwait reduced its October
Oil and Gas Field Services, National Alliances official selling prices (OSPs) for its crude grades
for Projects and Al-Manafei General Trading bound for Asia, according to a pricing document
and Contracting, which the report said is bid- seen by Reuters.
ding on behalf of two international companies. This set the October Kuwait Export Crude
Kuwait discovered large reserves of Jurassic (KEC) at $0.5 per barrel below the average of
gas in the north of the country in the middle of DME Oman and Platts Dubai quotes, which is
last decade. a reduction of $1.2 compared to the price for
After lengthy delays over potential September.
IOC involvement, it finally awarded three Meanwhile, Kuwait Super Light Crude
build-own-operate (BOO) contracts in 2016 to (KSLC) and Khafji were set at $0.7 and $0.3
install early production systems (EPSs) at the per barrel below DME Oman and Platts Dubai,
East Raudhatain, West Raudhatain, Sabriya and down $1.4 and $0.9 respectively.
Week 37 16•September•2020 www. NEWSBASE .com P5
