KJO rolls out major field development work

15 July 2005
Offshore Divided Zone (DZ) operator Al-Khafji Joint Operations (KJO)has invited local and international contractors to submit prequalification applications by 8 August for two lump-sum turnkey (LSTK) packages on phase 1 of its field development plan.
Offshore Divided Zone (DZ) operator Al-Khafji Joint Operations (KJO)has invited local and international contractors to submit prequalification applications by 8 August for two lump-sum turnkey (LSTK) packages on phase 1 of its field development plan.

The two project management, detailed design and engineering, procurement, construction/installation and commissioning (EPCC) packages are divided into onshore and offshore portions.

The onshore works calls for the installation of a new inlet separator, construction of gas compression and processing facilities, a flare system, nitrogen, chemical injection and water system facilities, support buildings and associated infrastructure.

The offshore element covers the installation of two flow stations - Y1B and Y2B - the expansion of existing flow stations and laying of interconnecting cable lines and pipelines, installation of a 42-inch-diameter, 43-kilometre-long gas pipeline between Y2B and onshore and installation of a 36-inch-diameter, 43-kilometre long oil pipeline between Y2B and onshore.

The field development scheme is the latest in a series of contracts tendered by KJO in recent months.

A tender is expected to be issued soon for a similar detailed engineering, procurement, construction, installation and commissioning (EPCIC) contract covering the construction of a new offshore wellhead platform, while tendering is under way for offshore works under its crude handling facilities expansion programme.

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 for the DZ with the aim of increasing crude output by 100,000 barrels a day (b/d) to 700,000 b/d. The zone is estimated to contain 5,000 million barrels of oil reserves and 1 trillion cubic feet of gas (MEED 17:6:05; 13:5:05).

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