Bidders line up for pipeline work

15 February 2002

Local and international contractors are preparing to submit engineering, procurement and construction (EPC) bids by 22 April for the construction of a new oil pipeline between Riyadh and Qassim. Nine local and international contractors are prequalified to bid for the 230-kilometre, 26-inch pipeline, which is being tendered by the central branch of Saudi Electricity Company (SEC).

Prospective bidders for the contract are understood to include Argentina's Techint, the Netherlands' Suedrohrbau, Technip Germany, Turkey's Tekfen, Athens-based Consolidated Contractors International Company (CCC), Lebanon's Contracting & Trading (CAT), the local Tamimi Group, Al-Shuwayer Trading, also local,and a company identified as RHM.

Industry sources say they expect a wide divergence in bid prices given the complex nature of the project and the recent lack of precedent for SEC pipeline work. The pipeline is expected to be converted to carry gas at a later stage.

A second major pipeline project is planned in the kingdom, involving the construction of a 350-kilometre pipeline from Rabigh to Yanbu. Designs are being prepared by the local Petrocom.

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