Bids in for Kuwait southeast pipelines deal

06 June 2010

Local Combined Group Contracting Company submits low bid

Combined Group Contracting Company is the frontrunner for the estimated $90m contract to build a series crude oil pipelines in the southeast of the country.

The local contractor’s price of $92.28m (KD26.86m) beat proposals from seven other local firms when bids were submitted on 30 May. The second placed bid from Heavy Engineering Industries & Shipbuilding Company came in at $97.15m.

Tendered in early March, bids for the engineering, procurement and construction (EPC) deal were originally due to be submitted on 16 May, but the client, Kuwait Oil Company (KOC) pushed back the deadline to 20 May. KOC did not disclose the reason for the delay.

Twelve firms were prequalified, but only seven submitted bids including:

  • Al-Dar Engineering & Construction (Kuwait)
  • Alghanim International General Trading & Contracting (Kuwait)
  • Al-Meer Technical Services (Kuwait)
  • Combined Group Company (Kuwait)
  • Gulf Spic General Trading & Contracting (Kuwait)
  • Heavy Engineering Industries & Shipbuilding Company (Kuwait)
  • Mushrif Trading & Contracting Company (Kuwait)

The winning firm will build a series of six-inch carbon-steel crude oil pipelines in southeast Kuwait, running from KOC’s oil field well-heads to their associated manifolds and gathering centers. Construction is expected to be completed by the end of 2013.The deal is part of KOC’s plans to maintain production levels in the southeast region.

KOC also tendered a similar deal for pipelines in the north of the country in May. Athens-based Consolidated Contractors Company is the frontrunner to win the deal, according to sources close to the deal (MEED 6:6:10).

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