The two-year project management and detailed design engineering, procurement, construction and commissioning (EPCC) contract includes the supply and installation of facilities to reduce water content; a new oil reclaiming system; a new crude oil loading pump; additional drainage facilities; a new switchgear house; and related electrical works. The contract also entails the replacement of the existing control system and associated works.

Bids are due to be returnedto KJO for two more contracts. The larger is to expand production facilities at the onshore Hout field. Estimated to be worth $150 million-200 million, it involves the construction of two large storage tanks, a buffer tank, pumping stations and flowlines. The two storage tanks will be built alongside existing storage facilities and will be connected by a 20-inch-diameter pipeline to ship loading facilities.

Prospective bidders for the contract, for which the bid closing date is 3 October, include: CCC; SA Kent Company of Saudi Arabia; Parsons E&C, part of Australia's WorleyParsons, with Saudi Oger; a three-member team of Canada's SNC Lavalin with Saud Consulting Services (SaudConsult) and Nesma & Partners Contracting Company, both of Saudi Arabia; ABBand Washington Group International, both US-based; and Engineering for the Petroleum & Process Industries (Enppi) and Petrojet, both of Egypt.

The second contract, worth $50 million, involves the fabrication and installation of offshore facilities. Eight companies are prequalified to bid by 19 September, but not all are expected to submit a price. The contract involves an integrated wellhead platform to be installed about 40 kilometres offshore in a water depth of 30 metres. The project will take about 15 months to complete.

The contracts are part of the KJO programme in the DZ aimed at increasing crude output by 100,000 barrels a day (b/d) to 700,000 b/d.