Aghajari reinjection to go for retender

28 July 2006
The Aghajari gas reinjection project is to be retendered following changes to the basic engineering. Industry sources say officials at National Iranian South Oil Company (NISOC) have not yet decided whether to tender the project as a single contract or divide it into several packages. The estimated $830 million contract was awarded last year to a local team of Chegalesh and Kayson Group (MEED 2:12:05).
The project is the most urgent of a series of gas reinjection schemes planned to reverse field depletion and potential declines in Iran's output capacity. Sources say there are several packages that could be awarded separately, including the natural gas liquids and C2 recovery units and pipelines and compressor stations.

The project is expected to face further delays if the new tender asks bidders to bring financing to the scheme, as several recent Oil Ministry tenders have done. The project was already delayed for much of last year as NISOC debated whether local companies could be lead contractors on such a big project. Bids
were first submitted in 2004.

The project aims to raise production at the Aghajari field by 300,000 barrels a day (b/d) though the installation of two new production units of 150,000 b/d each. It also involves gas reinjection and the revamping of existing production facilities including a natural gas liquids (NGL) plant. More than 600 kilometres of pipeline are to be laid. The client on the 42-month project is NISOC, and the front-end engineering and design (FEED) contractor was Canada's SNC Lavalin.

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