Khurais development forges ahead

10 February 2006

Technical and commercial bids from three prequalified companies and groups were submitted on 28 January for the offsites and utilities (O&U) package on the Khurais oil increment programme. Tenders have also been issued for the associated seawater/crude oil pipelines packages. The client on both projects is Saudi Aramco.

The bidders for the O&U contract are: Snamprogettti and Techint, both of Italy; and a US/Korean joint venture of Foster Wheeler and Hyundai Engineering & Construction Company. The estimated $750 million package is aimed at the reinjection of 2 million barrels a day (b/d) of treated seawater into the Khurais, Abu Jifan and Mazalij fields to support the production of Arabian Light crude. The scope of works includes the construction of seawater supply and injection facilities at Khurais, expansion of the Qurayyah seawater treatment plant through the addition of four 500,000-b/d treatment modules, the supply and installation of two 15,000-hp pumps and two main pipelines with a total length of 160 kilometres.

The package has been tendered on a converted lump-sum turnkey (LSTK) basis, with a bid target price and fee. An award is due by the end of March, with the facilities targeted to be completed by mid-2008. For the three pipeline installation packages, local and international contractors have until 28 February to submit offers. Companies invited to bid include: Lebanon's Contracting & Trading Company (CAT); the local Al-Rashid Trading & Contracting Company; Faysal M Qahtani Establishment (FMQ); Tamimi Construction; and RH Al-Marri Establishment (RHM), all local; Paris-based Technip; Turkey's Tekfen; Italy's Saipem; Cyprus-based Joannou & Paraskevaides (J&P - Overseas); Russia's Stroytransgaz; the Netherlands' Suedrohrbau; and Techint. The three packages cover the installation of more than 900 kilometres of steel pipe from the Qurayyah seawater treatment plant to Khurais, with prequalifers able to bid for each package separately or as a whole. Aramco will procure the pipe from the local Aziz European Pipe Company.

Package A involves the installation of a 78-kilometre-long pipeline with a diameter of 56 inches from Qurayyah to Ain Dar where it will expand to a diameter of 60 inches and run a further 144 kilometres to Khurais. Package B covers 495 kilometres of 18-36-inch-diameter pipe from Khurais to the Mazalij oil field.

Package C calls for the installation of a 135-kilometre-long, 60-inch pipeline from Qurayyah to Haradh where it will then run on to Abu Jiffan via a 48-kilometre, 42-inch pipeline. There will also be more than 32 kilometres of 16-20-inch-diameter injection pipe (MEED 16:12:05).

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