Khafji gets busy offshore

12 August 2005
Al-Khafji Joint Operations (KJO) has issued for bid a second offshore contract in the Divided Zone (DZ). Eight fabricators have been invited to submit bids by 19 September for the detailed engineering, procurement, construction, installation and commissioning (EPCIC) contract involving an integrated wellhead platform (MEED 18:3:05).

Called IWJ-4, the 1,000-tonne facility will be installed about 40 kilometres offshore in a water depth of 30 metres. It will consist of a two-level deck - with an associated helideck - and will have 12 well slots and a two-bay vertical jacket, supported by driven, through-leg piles. The project will take about 15 months to complete.

Prequalifiers for the estimated $50 million contract include: Jebel Ali-based J Ray McDermott (Middle East); Abu Dhabi's National Petroleum Construction Company (NPCC); India's Larsen & Toubro; a five-member regional group led by APMof Saudi Arabia and including Egypt's Petrojet, Al-Khodari Industrial Trading & Services (KITS)of Saudi Arabia, Al-Rafid, also of Saudi Arabia, and Ramunia of Malaysia; Rafif General Trading & Contracting Company of Kuwait with Malaysia's Sime Darby Engineering Berhad; and Sharjah-based MIS.

KJO is evaluating bids for the first offshore package, covering a subsea pipeline, submarine cables and structural platform modifications. The engineering, procurement and construction (EPC) contract is estimated to be worth at least $20 million.

Prequalifications are also due to be submitted by 8 August for two detailed design and EPCIC packages covering on- and offshore works at the DZ. Estimated to be worth a total of $200 million, the contracts involve the installation of new inlet compressors, gas compression and processing facilities, flare systems, two new flow stations and two 43-kilometre-long pipelines. Contractors can submit prequalifications for one or both of the packages.

KJO, a 50:50 joint venture of Kuwait Gulf Oil Company (KGOC)and Saudi Arabia's Aramco Gulf Operations Company (AGOC), is pressing ahead with a $1,800 million, five-year investment programme aimed at increasing crude output by 100,000 barrels a day (b/d) to 700,000 b/d.

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