Iraq finalising tender of Jordan oil pipeline

05 September 2013

Tender expected to be issued in September for estimated $10bn Jordan pipeline

Iraq’s Oil Ministry is finalising the tender documents for a $10bn crude oil export pipeline through Jordan, with a release date before the end of September.

“They will finalise all the details next week, so we should see a tender by about 20 September,” a source close to the project tells MEED.

State Company for Oil Projects (Scop), a subsidiary of the Oil Ministry, has been working with Canada’s SNC Lavalin to draw up a shortlist of engineering, procurement and construction (EPC) firms, along with developers and financiers to bid on the project.

Twelve consortiums have now been included in the approved list.

Shortlisted consortiums for Iraq-Jordan oil export pipeline
#Company (Origin)Consortium Partner (Origin)
1.China National Petroleum Corporation (China) 
2.Consolidated Contractors Company (CCC)(Athens-based) 
3.Daewoo Engineering (South Korea) 
4.Larsen & Toubro (India)Fius Capital (Dubai-based) and Go-Gas Limited (UAE)
5.Lukoil (Russia) 
6.Marubeni (Japan) 
7.Mitsui (Japan) 
8.Orascom Construction (Egypt)Petrojet (Egypt)
9.Petrofac (UK)Stroygaszconsulting (Russia)
10.Punj Lloyd (India)Mass Global (Jordan)
11.Saipem (Italy) 
12.Toyota Tshusho (Japan) 
Source: MEED

Scop plans to receive bids in stages, with final priced proposals due by the middle of December. The evaluation and selection of a preferred bidder is expected to be announced by 31 December. Contract negotiations and financial close are planned for 2014.

The Iraq-Jordan pipeline will run from the PS-5A pumping station in Haditha in the west of Iraq to the Port of Aqaba in Jordan. SNC Lavalin is acting as the Oil Ministry’s consultant and has drawn up the build-own-operate-transfer (Boot) contract for the scheme.

The pipeline will connect with Iraq’s planned new 650-kilometre strategic oil link from Basra in the south to Haditha, which will be tendered and built separately.

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