The local Combined Groupand Heavy Industry Engineering & Shipbuilding Company (Hiesco) have been awarded two contracts, totalling more than KD 40 million ($138 million), to supply and replace the flowline network in the state's northern and western oil fields. Construction is expected to take about four years. The client is state upstream operator Kuwait Oil Company (KOC).
Combined Group was widely expected to win the contract covering the northern fields after submitting a low bid of KD 25.8 million ($89 million) for the work in the spring. The company also bid low for the contract covering the western fields, but as tender documents stipulated that bidders can win only one of the three flowline upgrade contracts available, the job was awarded to the second lowest bid of KD 15.9 million ($55 million) submitted by Hiesco. For the third package, covering the southern and eastern fields, Mechanical Engineering & Controls Company (MECC) is low bidder at KD 23.8 million ($82 million), and is expected to be awarded the contract soon. Each package calls for the supply and installation of up to 1,400 kilometres of six-inch-diameter carbon steel pipe running from oil field wellheads to their requisite manifolds and gathering centres. Once completed, the schemes will increase crude handling capacity from the three areas by 10,000-20,000 barrels a day (MEED 20:5:05).
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