Bids in for Elephant GOSP

02 August 2002

Prices have been opened for one of the main packages on the estimated $500 million-600 million development of the Elephant field in Block NC-174 in the Murzuk basin. The mid-July bid submission followed a prolonged tendering process, during which the client, a team of UK-based Lasmo - now owned by Italy's Eni- and the National Oil Corporation (NOC), repeatedly revised the scope of the main gas/oil separation plant (GOSP - MEED 5:7:02).

Bidders were requested to submit offers for two alternative proposals for the GOSP, one for the first phase alone, entailing construction of one of the two 130,000-barrel-a-day (b/d) trains together with the necessary infrastructure for a second train. The second offer was for both phases including two 130,000-b/d separation trains.

Four prequalified international contractors had previously been competing for the GOSP project. However in the final bid round, Athens-based Consolidated Contractors International Company (CCC)declined to submit an offer. Italy's Snamprogettiis understood to have been low bidder for phase 1 only, proposing a price of $103.5 million. Germany's MAN Ghhsubmitted the lowest bid of $110.6 million for the combined phase 1 and 2. Athens-based Joannou & Paraskevaides (Overseas)offered $110.2 million and $122 million respectively for the two alternatives.

The three bidders are now awaiting a decision from the Lasmo/NOC team on which of the two options will be pursued. Teknica- a wholly owned subsidiary of NOC - is acting as the project management consultant.

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