Oil company gives contractors more time to arrange financing
Kuwait Oil Company (KOC) has delayed the deadline for bids on two oil and gas projects as contractors struggle to get financing for deals.
KOC had set a 1 September bid deadline for the first of the two engineering, production and construction (EPC) deals, estimated at $500m.
The first EPC deal covers the construction of temporary 150,000-barrel-a-day (b/d) oil gathering, processing and distribution facilities, know as early production facilities, in northern Kuwait.
However, KOC has postponed the bid date until 6 October.
KOC had set a 13 September deadline for the second contract, to build an estimated $800m booster station, BS-132, in northern Kuwait. The state firm has delayed the bid date until 29 September.
Kuwait’s Central Tenders Committee cut the size of the bid bonds required to enter tenders for contracts in the country in July, but contractors say that banks are still unwilling to lend enough money.
The early production facilities, in particular, must be funded by the contractor. KOC will only pay out when set milestones are reached.