Daelim picked for effluent KOC contract

26 July 2002

Kuwait Oil Company (KOC) has selected South Korea's Daelim Engineers & Construction Company for the engineering, procurement and construction (EPC) contract on the effluent water disposal project in southeast Kuwait. 'We will start negotiations with them [Daelim]. A formal contract award is expected soon,' says a project source (MEED 25:1:02; 7:9:01).

KOC had been expected to issue a fresh tender after original bids submitted in late October by three South Korean companies came in above the budget. Daelim submitted a low offer of KD 61.9 million ($199 million) and was followed by LG Engineering & Construction at KD 62.4 million ($201 million) and SK Engineering & Constructionat KD 85.4 million ($275 million - MEED 16:11:01).

The final price of the EPC package is expected to be above Daelim's original quote, given that the contract will include several packages that KOC had planned to tender separately. These cover the upgrade of electrical equipment, revamp of the utilities and installation of water pipelines to disposal pits. The contract will centre on the supply and installation of two effluent water plants and new facilities to be built at the Burgan and Maqwa oil fields.

The consultant on the 22-month project is the US' Parsons Engineering Corporation, which also carried out the front-end engineering and design (FEED) work.

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