International contractors have been invited to submit applications for prequalification by 10 April for a lump-sum turnkey (LSTK) contract to expand the Hout field's onshore production facilities. A tender for the estimated $60 million-75 million contract is expected in the summer, with an award due before year-end. The contract covers the construction of storage tanks TK 7 and 8, buffer tank TK 30 and the installation of a reclaiming system at Ratawi.

The two storage tanks will be built alongside existing storage facilities and will be connected by a 20-inch-diameter pipeline to ship loading facilities. The buffer tank will be installed near an existing desalter unit and will be linked to the existing buffer tank inlet by a new 14-inch-diameter pipeline. The reclamation system involves the installation of two oil and water separation surge tanks in the Ratawi area.

Interested companies have until 4 April to submit bids for a separate 15-month contract to provide maintenance services for crude storage tanks TK 121, 123 and ATK 6. The contract covers the installation of safety protection measures and associated instrumentation systems.

Contractors have also been invited to bid by 25 April for the contract to carry out works on the KJO onshore crude handling facilities. At least two companies - including Italy's Snamprogettiand Athens-based Consolidated Contractors International Company (CCC)- are understood to be planning to bid for the project. KJO is also drawing up a shortlist of contractors for the project's offshore portion, covering an offshore subsea pipeline, submarine cables and structural platform modifications. A tender is due to be released by the end of March. Japan's Toyo Engineering Corporationis the front-end engineering and design (FEED) contractor on the scheme (MEED 18:2:05).

The projects are part of a $1,800 million five-year investment programme for the Divided Zone with the aim of increasing crude output by 100,000 barrels a day (b/d) to 700,000 b/d (Oil & Gas, MEED Special Report 11:3:05, pages 43-47).