Firms set to prequalify for oil scheme in Divided Zone

18 September 2009

Khafji Joint Operations seeks contractor to project manage expansion scheme

Three contractors are expected to prequalify by the end of September for a scheme to expand oil processing facilities in the Divided Zone between Saudi Arabia and Kuwait.

In August, Khafji Joint Operations (KJO) invited contractors to prequalify for a five-year project management deal to oversee the project.

Australia’s WorleyParsons, the US’ Foster Wheeler and the UK’s Amec are expected to file prequalification documents by 28 September, according to a source close to the deal.

The contract covers the expansion of a water treatment plant and crude oil onshore facilities, and the construction of diesel tanks as well as a gas and natural gas liquids export control system for output from the Al-Khafji field. It also covers associated onshore and offshore gas facilities for the Hout field.

KJO will issue an invitation to bid in October and expects to award the contract in the first quarter of 2010.

KJO is a 50:50 joint venture of Aramco Gulf Operations, a division of state-run Saudi Aramco and Kuwait Gulf Oil Company, a subsidiary of state-run Kuwait Petroleum Corporation (KPC).

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