Arabi Enertech bids low for Kuwait Jurassic pipelines contract

06 May 2010

Six firms participated in Kuwait Oil Company tender

Local Arabi Enertech has submitted a low bid of KD74m ($255m) for the much delayed scheme to build a series of pipelines for state-owned Kuwait Oil Company (KOC) in the north of the country.

Arabi Enertech’s price beat proposals from six local companies. The second lowest bidder is the local Al-Khadda International General Trading with a price of KD88m.

Bids for the engineering, procurement and construction (EPC) deal were submitted on 27 April. They were originally due for submission on 23 March, but KOC decided to push back the deadline, although it did not disclose the reason.

Firms who submitted bids for the deal are:

  • Al-Dar Engineering & Construction Company (Kuwait)
  • Alghanim Combined General Trading & Contracting Company (Kuwait)
  • Al-Khadda International General Trading
  • Arabi Enertech
  • Gulf Spic General Trading & Contracting Company (Kuwait)
  • Kharafi National (Kuwait)

The firms submitted two prices to KOC, one for pipes constructed locally, and a second for pipes built outside the country. Internationally built pipelines are on average 1-2 per cent cheaper, according to the bid submissions.  

The winning firm will build a series of high pressure 20-inch crude oil pipeline for the company at its facilities in the Jurassic field in the north of the country. Due to be completed in the middle of 2012, the Jurassic flowlines project has been subject to numerous delays since it was first tendered in May 2009 (MEED 15:03:10).

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