Qafco enters Mesaieed talks
Qatar Fertiliser Company (Qafco) has entered into exclusive negotiations with an Italian/South Korean consortium for the main contract on its Qafco 5 expansion at Mesaieed.
The contract was retendered in the summer because of difficulties over cost with one of the two original contractors.
'Qafco is in the final stages of detailed evaluation and negotiations with a consortium of Snamprogetti and Hyundai as the sole candidate for the contract award,' says a Qafco spokesman. 'The lump-sum turnkey contract is planned to be awarded prior to the year-end, on an engineering, procurement and construction basis.'
The contract's scope of works covers the construction of a 3,500-tonne-a-day (t/d) urea train and two 2,200-t/d ammonia plants. It also includes a 167-MW captive power plant, ship-loading facilities, an air separation unit, a desalination plant and an effluent water treatment unit.
The overall value of the contract is expected to be well in excess of $1,000 million (MEED 22:9:06).
Snamprogetti will have responsibility for engineering and procurement, with Hyundai taking charge of the construction work.
The work was originally awarded in 2006 as two separate packages to Germany's Uhde and the US' CB&I. However, issues over cost with the CB&I bid resulted in Qafco taking the decision to merge the two contracts and retender them as a single package(MEED 6:7:07).
CB&I provided an open-book estimate on the offsites and utilities package on the scheme after being awarded the job in September 2006. However, its estimate was understood to have come in too high, prompting Qafco to revise itstendering strategy.
Qafco is a 75:25 joint venture of Industries Qatar and Yara International of Norway.
www.meed.com/petrochemicals
Qatar Fertiliser Company (Qafco) has entered into exclusive negotiations with an Italian/South Korean consortium for the main contract on its Qafco 5 expansion at Mesaieed.
The contract was retendered in the summer because of difficulties over cost with one of the two original contractors. 'Qafco is in the final stages of detailed evaluation and negotiations with a consortium of Snamprogetti and Hyundai as the sole candidate for the contract award,' says a Qafco spokesman. 'The lump-sum turnkey contract is planned to be awarded prior to the year-end, on an engineering, procurement and construction basis.' The contract's scope of works covers the construction of a 3,500-tonne-a-day (t/d) urea train and two 2,200-t/d ammonia plants. It also includes a 167-MW captive power plant, ship-loading facilities, an air separation unit, a desalination plant and an effluent water treatment unit. The overall value of the contract is expected to be well in excess of $1,000 million (MEED 22:9:06). Snamprogetti will have responsibility for engineering and procurement, with Hyundai taking charge of the construction work. The work was originally awarded in 2006 as two separate packages to Germany's Uhde and the US' CB&I. However, issues over cost with the CB&I bid resulted in Qafco taking the decision to merge the two contracts and retender them as a single package(MEED 6:7:07). CB&I provided an open-book estimate on the offsites and utilities package on the scheme after being awarded the job in September 2006. However, its estimate was understood to have come in too high, prompting Qafco to revise itstendering strategy. Qafco is a 75:25 joint venture of Industries Qatar and Yara International of Norway. www.meed.com/petrochemicalsThis content is only available to full MEED package subscribers (MEED magazine and MEED.com).
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