MEED magazine reported that the American company KBR has submitted the lowest offers for a management consultancy contract for large projects in the oil and gas sector in Kuwait, according to industrial sources. The contract was proposed by the Kuwait Oil Company to cover both the initial engineering and design services and project management work for the major infrastructure of KOC projects.
A local Arabic daily quoting the magazine said the award of this contract related to project management consultancy services has been repeatedly delayed. As for the final offers submitted by companies regarding the said contract, they are as follows:
US KBR: 69.6 million dinars ($227.0 million).
Australian Worley: 77.9 million dinars ($254.0 million).
French Technip: 78.9 million dinars ($257.3 million).
British Wood Group: 81.2 million dinars ($264.8 million).
Fluor, the US company, was excluded due to irregularities related to the provision of its initial guarantee. KOC uses the practice system in the bidding process for a special project management contract. The system acts as a reverse multi-round auction, where companies have to lower their prices or keep the same price for each round, all prices are revealed to bidders after each round, and the higher-priced bidders are forced to withdraw as bids drop.
The bids submitted by the American companies Fluor and Technip of France were initially rejected in the first round of bidding. It is worth noting that the Kuwait Oil Company had accepted the following offers from KBR for $88.41 million, Wood Group for $83.46 million, and finally Worley for $81.3 million.
In February of this year, MEED revealed that the French company Technip had returned to competition for the project, while Fluor remained excluded from the bidding process.