Kuwait Gulf Oil Company has floated a tender for the construction of an onshore gas processing facility near the Al-Zour refinery, with an estimated value of $3.3 billion, according to industry sources.
The tender was issued on August 23, and the deadline for submitting bids is December 29. A meeting with contractors is scheduled for September 14. The facility is designed to process about 632 million cubic feet of gas per day, in addition to 88.9 million barrels per day of condensate extracted from the offshore Durra field.
If completed as planned, the project WILL be Kuwait’s largest tender in terms of value since 2015, according to MEED. At least seven companies had expressed interest in the project by February, including South Korea’s Samsung E&A, India’s Larsen & Toubro, Spain’s Técnicas Reunidas, Italy’s Saipem, South Korea’s Hyundai Engineering & Construction and Hyundai Engineering, and Japan’s JGC.
Fast-track tender
The tender is being conducted under a fast-track system, with the onshore facility being offered alongside the development of offshore packages for the Durra field facilities project. Earlier this month, MEED reported that Khafji Joint Operations had selected contractors for two major offshore packages.
he project’s engineering, procurement and construction (EPC) work is divided into four separate packages — three for offshore facilities and one for the onshore gas processing plant.
Of the three offshore packages, US-based McDermott International has won Package 2A, worth about $1.5 billion, while Package 2B, valued at about $3.7 billion, has been awarded to a consortium of India’s Larsen & Toubro Energy Hydrocarbons and Italy’s Saipem. Package 2B is the largest of the three offshore packages.
