In early December, six companies submitted prices for the two contracts to provide PMC services for all future KOC projects for the next five years. The contracts covered area 1 – the northern fields – and area 2 – the south and west oil production facilities.
KBR was the low bidder for the area 1 and 2 contracts, offering quotes of KD 36.3 million ($121.2 million) and KD 38.9 million ($130 million) respectively. KBR’s offer was followed by Fluor Daniel, which bid KD 36.4 million ($121.5 million) for area 1 and KD 39.4 million ($131.5 million) for area 2 (MEED 13:12:02).
In mid-February, KOC selected KBR and Fluor Daniel for area 1 and area 2 respectively. A recommendation was sent to the Oil Ministry for formal approval (MEED 21:2:03). However, an industry official now says: ‘The uncertainty over Iraq has delayed the awards [of the PMC contracts]. There will be no change in the selection process.’
At present, Parsons Engineering is providing PMC services for all KOC projects under an estimated $45 million-50 million contract awarded in late 2001. The contract is due to expire on 13 June.
The threat of a war in Iraq is taking a toll on proposed projects in Kuwait. The bid submission deadline has been further extended to 25 March for the contract to build the Ahmadi crude oil storage and export facility, following a request from two of the three bidders (MEED 28:3:03).
The estimated KD 270 million ($900 million) engineering, procurement and construction (EPC) contract calls for the construction of an 11.4 million-barrel storage and export facility and related on- and offshore facilities.