Arabi Enertech bids low for Kuwait pipelines deal

19 June 2012

Pipeline network for South East Kuwait

The local Arabi Enertech has submitted a low bid of $99m for a contract to install a series of pipelines in the southeast of Kuwait.

Nine Kuwaiti firms submitted bids to state-upstream operator, Kuwait Oil Company (KOC), which were opened on 12 April.

Arabi Enertech submitted a proposal of KD27.7m ($98.95m), beating rival prices from second placed Mechanical Engineering and Contracting Company at KD28.6m ($102.3m).

The winning firm will build a series of 6-inch flowlines will transport crude oil, water and waste from drilling wells to oil and gas gathering centres across the southeast of Kuwait by the end of 2016. The Gulf state plans to increase production to 4 million barrels a day (b/d) by 2020 and will have to revamp its oil transport infrastructure to cope with the increase.

KOC awarded a similar contract worth $275m to the local Mechanical Engineering & Control Company in mid-2009. The company is expected to complete construction before the end of 2013.

BidderPrice (KD)Price ($)
Arabi Enertech 27,700,000.00          98,946,893.00
Mechanical Engineering and Contracting Company 28,630,000.00102,268,936.70
Combined Group Contracting Company30,490,000.00108,913,024.10
Heavy Engineering Industries & Shipbuilding Company (Heisco) 32,484,387.45116,037,155.57
Al-Dar Engineering and Construction32,539,064.82116,232,468.06
Mushrif Trading & Contracting Company34,799,224.68124,305,962.47
Alghanim International General Trading & Contracting Company36,209,399.74129,343,234.71
Gulf Spic General Trading & Contracting Company 37,994,931.00135,721,313.08
Al-Khadda International General Trading & Contracting Company40,950,349.31146,278,333.27
Source: MEED, Central Tenders Committee

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