Bid deadline extended for Neutral Zone upgrade

13 June 2011

Contractors now have until 1 August to submit bids for onshore and offshore work in Neutral Zone

The Saudi Arabia/Kuwait joint venture Khafji Joint Operations (KJO) has extended the bid deadline for the engineering, procurement and construction (EPC) contracts for its onshore and offshore upgrade project.

A source from one of the bidding contractors confirmed the deadline has been put forward from 6 June to 1 August to give the prequalified contractors more time to formulate commercial and technical bids.  

There are two packages available that cover onshore and offshore upgrades of the current facilities, including processing the gas that is currently flared.

At least seven contractors want to submit bids for both KJO packages, which are worth a total of about $600m (MEED 6:5:11).

The work is expected to last 36 months, with completion due for the end of 2014.

The companies looking to bid include:

  • Daelim (South Korea) – onshore package
  • GS Engineering & Construction (South Korea) – onshore package
  • Hyundai Heavy Industries (South Korea) – both packages
  • J Ray McDermott (US) – offshore package
  • Larsen & Toubro (India) – both packages
  • Petrofac (UK) – both packages
  • Saipem (Italy) – both packages
  • Samsung Engineering (South Korea) – both packages
  • Sinopec (China) – onshore package
  • SNC Lavalin (Canada) – both packages
  • Techint (Italy) – onshore package
  • Technip (France) – both packages
  • Intecsa Industrial/Initec Energia (Spain) – onshore package

For the onshore package, the scope of works includes the construction of a crude and gas treatment plant, gas and natural gas liquids (NGL) collection and distribution facilities, with associated onshore gas facilities.

The offshore package includes the demolition and replacement of some existing offshore platforms, the laying of a 50km pipeline to the onshore facilities, as well as monitoring stations.  

KJO is responsible for oil operations in the Neutral Zone, an area between Saudi Arabia and Kuwait where the border is not properly defined. The company is a joint venture between Saudi Aramco subsidiary Aramco Gulf Operations and the Kuwait Gulf Oil Company.

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