Iraq changes plans for Bin Umar storage facility

13 January 2014

Two new Iraqi storage facilities planned worth up to $2bn

Iraq’s State Company for Oil Projects (Scop) plans to change the location of a major crude oil storage terminal, one of two new facilities currently under tender in the south of the country.

Commercial proposals have been submitted since October for the Nassiriya and Bin Umar storage terminals, following a technical round in July. So far, the commercial bids remain unopened and Scop now plans to move the Bin Umar facility to a new location, according to sources close to the project.

The scheme involves the construction of 22 storage tanks, with a capacity of 6,000 cubic metres each. Following visits and geotechnical surveys at the Bin Umar site, Scop has decided the area is not suitable for such a facility. No further details have been announced, but the new location is said to be within 100-kilometres of the original site.

Bidding contractors say Scop has no plans to retender the deal, but will open the existing priced proposals in the coming month and negotiate with the lowest bidders to modify the civil portion of the technical proposals.

“The facilities will be based on the same scope and specifications, but only the earth works and civil works will be changed,” says one contractor.

The same firms have also submitted bids for a smaller storage terminal at Nasiriya which will include seven tanks. Bids have been opened for this project, with state-owned China Petroleum Pipeline Bureau (CPPB) considered the lowest priced, although an exact figure has not been revealed.

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