Bapco goes to bid as downstream CEO retires

30 May 2003
Bahrain Petroleum Company (Bapco)has invited five international companies to bid in August for the estimated $600 million upgrade of its Sitra refinery. The prospective bidders are Bechteland Foster Wheeler Corporation, both of the US, Paris-based Technip-Coflexip, Japan's JGC Corporationand the US-based ABB Lummus Global. Italy's Snamprogettiwas not invited to bid (MEED 14:03:03).

The project, which is being retendered on an engineering, procurement and construction management (EPCM) basis, involves the installation of a 40,000-barrel-a-day low-sulphur diesel production (LSDP) unit licensed by Chevron Lummus Global. Bechtel prepared the front-end engineering and design (FEED) studies for the project (MEED 17:1:03).

The 250,000-b/d Sitra complex produces mostly low-grade middle distillates for export and provides Bahrain with all its domestic fuel needs. In 1998 the Supreme Oil Council agreed to invest heavily and move ahead with the LSDP project and a series of strategic upgrades, aimed at the production of high-quality gasoline and aviation fuel. Initially intended as an EPC project, the government shifted to an EPCM strategy last June after bids submitted for the EPC option came in above budget (MEED 13:9:02).

The retendering of the LSDP project has coincided with the retirement of the long-standing chief executive of downstream operations, Johann Lubbe. No replacement has yet been announced for Lubbe, who is leaving Bapco after almost eight years of service. The company is understood to be in the process of a comprehensive review of its senior management structure.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.