Page 13 - MEOG Week 12 2021

MEOG TENDERS MEOG

KOC pushes back deadline for pipe bids

KUWAIT STATE-OWNED Kuwait Oil Co. (KOC) last rising to 230,000 bpd by 2030/31, with heavy oil
week extended the deadline for bidding for a from the nearby Umm Niqa field seen climbing
contract to install an oil pipeline at an oilfield in first to 50,000 bpd and then to 80,000 bpd over
the north of the country. the same period. A fourth phase would then see
Company sources were quoted by local, Ara- Ratqa’s production lifted to 325,000 bpd, while
bic-language media as saying that the final date the final phase envisages output from the two
for bids to be submitted for the $150mn project fields totalling 430,000 bpd.
to transport oil produced from the Umm Niqa Kuwait has been attempting to maintain
oilfield had been pushed back, but did not spec- highly ambitious capacity targets of 4mn bpd by
ify when bidding would now close. the end of this year and 4.75mn bpd by the end of
It noted that the scope of the work includes 2040, up from the current 3.1-3.2mn bpd. In late
the installation of flow lines for oil producing 2019, the 2020 target was reported to have been
wells, a closure system for flow lines, reinforced pushed back to 2040.
plastic pipelines for water, hot water cocks, well-
head connections, extending existing heads and Tank maintenance
manifolds and carbon steel pipelines, as well as Local media also reported this week that KOC
welding work. will soon tender for maintenance work to be car-
The original deadline had been March 8 fol- ried out at oil storage tanks located at fields in the
lowing the call for tenders in February. south and west, and north of the country.
The source said that pre-qualified bidders Following an announcement by the Supreme
included seven local firms as well as companies Procurement Committee at KOC’s parent
from China, India, Indonesia, Italy, Lebanon and Kuwait Petroleum Corp. (KPC), 11 companies
Qatar. have been pre-qualified to bid for the work,
Umm Niqa is one of two fields being devel- including 10 local firms and one from Lebanon.
oped under the Lower Fars Heavy Oil Project,
alongside South Ratqa. The broader Ratqa asset Bad press
was discovered in the late 1970s, but efforts to Meanwhile, KOC has come under scrutiny after
develop the field were largely stifled until the contractors participating in one of the compa-
UK’s Petrofac was finally awarded a $4.2bn engi- ny’s 2020 tenders complained about a lack of
neering, procurement & construction (EPC) transparency and questioned the fairness of
contract to execute the first phase in early 2015. competition.
This called for production of 60,000 barrels per Arab Times quoted the company, which
day (bpd) by 2020. wished to remain anonymous, as saying: “The
Output from the two fields under the project participants in this tender had submitted bank
reached a first phase plateau of 75,000 bpd fol- guarantees, which had to be extended. This led
lowing the start of operations in February last them to bear additional burdens. We wonder if
year. it is reasonable for a company of the size of KOC,
However, in September, KOC was reported to after the closing of the tender and having been
have cancelled a project to drill 11 wells as part informed of the prices, to change its awarding
of the country’s efforts to expand the production strategy. We demand the regulatory authori-
of heavy oil. Citing senior company sources, the ties intervene to stop any practices or potential
local Al-Rai newspaper said that the $400mn manipulation in awarding this tender.”
contract had already been awarded to an interna- The company said that the tender had been
tional company, but that it was yet to be signed. pending for more than six months, with the
According to KOC’s original plan, by 2026/27 delay leading to a slowing in efforts to increase
output from Ratqa would grow to 120,000 bpd, production.™

Week 12 24•March•2021 www. NEWSBASE .com P13