KOC issues Subiya EPCM tender

16 January 2006
Kuwait Oil Company (KOC) has issued for bid an engineering, procurement and construction management (EPCM) contract covering the supply and installation of a 20-inch-diameter, 160-170-kilometre-long pipeline to supply heavy fuel for the Subiya power station in the north from the Mina al-Ahmadi refinery. Four companies - the UK's AMEC, Australia's WorleyParsons, the US' Fluor Corporation and the UK office of US-based Bechtel - have been invited to submit bids on 28 January for the estimated KD 100 million ($290 million) contract.

A pre-tender meeting is scheduled to be held in Kuwait City on 22 January. The successful EPCM contractor will also carry out front-end engineering and design (FEED) and detailed engineering of the pipeline. The project will take about eight months to complete.

Four groups of companies are due to submit bids by the extended deadline of mid-February for the Subiya power station contract. Estimated to be worth KD 300 million ($870 million), the engineering, procurement and construction (EPC) contract calls for the construction of a 1,500-MW combined cycle plant (MEED 14:10:05).

The Subiya gas feedstock scheme will be the first oil and gas project to be tendered on an EPCM basis. KOC is understood to have adopted the new approach to speed up project execution and reduce contractor risk (see Special Report, pages 36-38).

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