Dodsal may not bid on Al-Zour $800m pipeline retender

18 June 2015

Source says UAE-based company may concentrate on awarded projects in Kuwait

  • Dodsal is concerned about problems obtaining materials and visas for workers
  • UAE-based company already working on two major oil and gas projects in Kuwait
  • Dodsal was low bidder on the pipeline before it was retendered

UAE-based contractor Dodsal has yet to decide on whether it will bid for the retender of the $800m Al-Zour feed pipeline in Kuwait, according to a source with knowledge of the company’s operations.

Dodsal was formerly the low bidder on the project, after India’s Larsen & Toubro failed to renew its bid bond, effectively withdrawing from the tender process.

Problems obtaining materials and visas for both managers and labourers in Kuwait has become an increasing concern for the company, according to the source.

“These concerns mean Dodsal may choose to focus on the projects it has already won, rather than looking to take on more work,” the source said.

Dodsal is carrying out two schemes in Kuwait. It was awarded the $809m contract for a Kuwait Oil Company (KOC) project, gathering centre 31, in July 2014.

The firm is also working on the planned $946m KOC effluent water treatment and injection plant, which is due to be constructed between Kuwait’s Sabriyah and Raudatain fields.

Dodsal was awarded the deal in September 2014.

Engineering works are continuing on both projects, according to the source, and preliminary construction work is expected to begin on both sites by the end of the year.

On 17 June, MEED reported that contractors had been told the $800m Al-Zour refinery feed pipeline project would be retendered.

A new bid deadline is expected to be announced after Ramadan.

The feed pipeline will be the second package connected to the New Refinery Project (NRP) to be retendered in a matter of months.

On 10 May, Kuwait formally announced the retender of the tankage package for the NRP, known as package four.

There is ongoing speculation that other packages connected to the project could also be retendered after low bids for the scheme’s unawarded packages came in $3.7bn over budget.

The original bidders list for the Al-Zour feed pipeline was:

The contract’s scope includes the construction of about 250 kilometres of oil feedstock pipelines that will serve the planned 615,00 barrel-a-day (b/d) greenfield Al-Zour new refinery in southern Kuwait.

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