GC tendering approaches

28 October 2005
Kuwait Oil Company (KOC) is preparing to issue soon the first of two engineering, procurement and construction (EPC) tenders to build two gathering centres (GCs) capable of handling a total of 360,000 barrels a day (b/d) of Kuwaiti export crude to be produced from its northern and southeastern fields.

The larger of the two schemes is GC 24, which will entail the construction of a 200,000-b/d facility at Subiya to handle new production from its northern fields. The UK's AMEC is front-end engineering and design (FEED) contractor. The estimated $100 million EPC tender is due to be issued in early 2006.

KOC is also expected to tender by late 2006 the EPC contract for GC 29 to be built in the southeast. The facility, which was damaged in the Gulf war, will have capacity of 160,000 b/d and will cost about $85 million to build.

KOC is pressing ahead with the construction of new GCs as part of its target to increase production capacity to 4 million b/d by 2020. Early this year, Spain's Tecnicas Reunidaswas awarded a $97 million lump-sum turnkey (LSTK) contract to modify, upgrade and expand GC 28 (MEED 14:1:05). Canada's SNC Lavalin was also awarded a similar contract to upgrade and increase output at GC 27. Worth $79.3 million, it involved increasing GC 27's oil output by 40,000 b/d to 190,000 b/d (MEED 3:12:04).

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