KOC had originally shortlisted five US companies for the EPC contract in early 2001. However, following a recommendation from the Supreme Petroleum Council, KOC opted to expand the list to 12 international companies. The move prompted intense lobbying by European and South Korean contractors seeking to get on the list (MEED 9:11:01).
KOC is expected to draw up a new list of prequalifers by the end of January. The EPC package is due to be issued for bid by the end of the first quarter of next year.
The EPC package, estimated to be worth KD 270 million ($880 million), will have five main components. These are the construction of 17 storage tanks, each with a capacity of 500,000 barrels, and a booster plant with four pumps; the installation of five 20-kilometre gravity lines, three 20-25-kilometre submarine pipelines, and an offshore booster station; the construction of three calm buoys; telemetry works, which will include the control systems and communication facilities; and the construction of an administration building (MEED 16:2:01).
The US’ Parsons Engineering Corporationhas carried out the front-end engineering and design (FEED) work for the scheme.
The project is targeted for completion by the third quarter of 2005, by which time KOC plans to have added 1.5 million barrels a day to its current production capacity (MEED 18:5:01).