KCC bids low for Kuwait condensate line deal

22 January 2012

Kuwait Oil Company replacing pipeline from northern fields

The local KCC Engineering & Contracting Company has submitted the lowest bid for an estimated $28m contract to replace a condensate line in the north of Kuwait for state-upstream operator, Kuwait Oil Company (KOC).

Eight firms bid in total on 15 January, out of the 21 prequalified by KOC. Contractors submitted two options; one for locally manufactured pipes and a second for pipes manufacturer outside Kuwait.

KCC submitted prices of KD7.8m ($28.02m) for locally produced pipes and KD7.5m ($26.95m) for international pipes. The local Mechanical Engineering & Contracting Company submitted the second-lowest prices at $28.2m and $27.93m, less than 1 per cent higher than KCC.

The eight bidders were:

  1. KCC – $28.02m and $26.95m
  2. Mechanical Engineering and Contracting Company (local) – $28.2m and $27.93m
  3. Heavy Engineering Industries & Shipbuilding Company (local) – $29.56m and $29.28m
  4. Arabi Enertech (local) – $30.17m and $29.63m
  5. Al-Khalijia International General Trading Company (local) – $30.98m and $30.41m
  6. General Trading & Contracting (local) – $31.59m and $31.43m
  7. Combined Group Contracting Company (local) – $37.74m and $37.38m 
  8. Gulf Spic (local) – $38.93m and $39.17m

The winning firm will replace the current 16-inch condensate pipeline, connecting a manifold at the Mushaabat gathering centre in the Burgan area in the north of Kuwait to the Mina al-Ahmadi refinery, 45 kilometres from Kuwait City. A new 20-inch pipeline will be fitted by 2014 (MEED 11:12:11).

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