Bids were submitted for the scheme on 3 September, with Flare's offer coming in more than 40 per cent below the second-best price submitted by Saudi Arabia's Al-Khorayef Commercial Company. Other companies that bid for the contract include Safwan Petroleum Technologies Company and Raith Engineering & Manufacturing Company, both local.

Under the terms of the two-year design, installation, operation and rental contract, the successful contractor will drill and operate five wells, each with a capacity of 200-500 barrels a day (b/d) of heavy oil sand production (MEED 29:6:07).

The work includes the evaluation of reservoir performance, sand separation facilities and artificial lift techniques using progressive cavity pumps. It will also involve deciding on the best oil/sand production ratio. The work will be carried out using a method known as the cold heavy oil production with sand technique, widely used in Canada and Venezuela.

The client, Kuwait Oil Company, aims to produce 700,000 b/d of heavy oil by 2020. ExxonMobil Corporation, Chevron Corporation, both of the US, and the UK's BP are believed to be carrying out studies into heavy oil production for the upstream operator.