Five offer new Hout prices

02 December 2005
At least five groups of companies submitted revised bids in mid-November to Al-Khafji Joint Operations (KJO)for the second major onshore contract to expand production facilities in the Divided Zone (DZ). The bidders include: Parsons E&C, part of Australia's WorleyParsons, with Saudi Oger; a three-member team of Canada's SNC Lavalinwith Saudi Consulting Services (SaudConsult)and Nesma & Partners Contracting Company, both of Saudi Arabia; Engineering for the Petroleum & Process Industries (Enppi)of Egypt, with Saudi Arabia's Abdulrehman Turki Company (Atco); US-based ABB Lummus Global;and US-based Fluor Corporation with Kuwait's Al-Ghanim International General Trading & Contracting (MEED 4:11:05).

KJO invited fresh prices after bids submitted originally in late October came in above budget. Called the Hout field expansion facilities, the estimated $150 million-200 million engineering, procurement, construction and commissioning (EPCC) contract involves the construction of two large storage tanks, a buffer tank, pumping stations and flowlines. The facilities will take 30 months to complete. Japan's Toyo Engineering Corporationhas carried out the front-end engineering and design (FEED) contract.

In September, KJO awarded the first major onshore contract to Athens-based Consolidated Contractors International Company (CCC)(MEED 16:9:05). Bids are due to be submitted by 28 November for a six-year workover programme involving the drilling of rigs and exploration drilling using jack-up rigs.

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