CPECC takes Zueitina pipeline

16 January 2006
Zueitina Oil Company(ZOC) has issued a letter of intent to China Petroleum Engineering & Construction Corporation (CPECC) for the contract to build a gas pipeline from Zueitina's 103A supply base in the Sirte basin to the Brega coastal pipeline. A formal contract award is expected by late February (MEED 16:9:05).

CPECC was the low bidder for the engineering, procurement and construction (EPC) contract at LD 41.3 million ($30 million), after final prices were submitted in November. Its offer was about 1.5 per cent lower than the next price of LD 41.9 million ($31 million) submitted by Egypt's Petrojet. Five companies participated in the final round of pricing, with the other bidders being Germany's MAN GHH, Athens-based Joannou & Paraskevaides (J&P - Overseas) and Bonatti of Italy with UAE-based Petrofac International.

The contract will involve the construction of a 42-inch-diameter, 215-kilometre-long pipeline with capacity of 1,500 million cubic feet a day. ZOC will supply the line pipe. The project will supply gas that will either run on to Melitah and Italy via the recently-commissioned Greenstream subsea pipeline or be used as feedstock for power generation. Gas will be sourced from the Faregh field and from Zueitina's own concession.

ZOC is a wholly-owned subsidiary of National Oil Corporation (NOC) and operates five fields in Intisar, southeast of Tripoli.

Major pipeline work is also planned by another wholly-owned NOC subsidiary- Arabian Gulf Oil Company (Agoco). Twelve international and local companies have submitted bids for an engineering and construction contract to replace a part of the 600-kilometre-long Sarir-Tabruk main oil pipeline. Estimated to be worth $35 million-40 million, the contract covers the installation of a 34-inch, 80-kilometre pipeline, launchers, slug catchers and valves. Agoco will supply the line pipe.

The bidders include CPECC, Petrojet, J&P (Overseas), Bonatti, MAN GHH, India's Punj Lloyd, Italy's Sicim, Al-Hamada and Irish International Construction Corporation (IICC), both locally-based, and Gama, Ostaz and Dogus, all of Turkey.Technical evaluations are due to be completed by late February, with an anticipated contract award in April.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.