State firm modifies Jurassic field project specifications
Kuwait Oil Company (KOC) has delayed the bid deadline on a $500m oil production scheme for a sixth time as it modifies the project details.
It had asked prequalified firms to bid by 6 October, but KOC is making changes to some of the project’s specifications and has postponed the deadline to 3 November.
KOC originally set a bidding deadline of 1 March, but has subsequently set dates of 5 April, 31 May, 2 June, 1 September and most recently 6 October.
“This time they delayed it so they could make modifications to the project,” says an executive at one firm planning to bid on the deal. “But the other delays were because of financing and technical explanations.”
The deal covers the construction and operation of 150,000 barrel-a-day (b/d) early production facilities unit at the Jurassic field in north Kuwait.
MEED reported in March that KOC had delayed bidding after contractors asked for more technical information about the project.
The winning contractor will build temporary facilities to check the feasibility of increasing production at the Jurassic field. The contractor shoulders the cost of the construction themselves and KOC only pays out the contractors reaches prearranged milestones in the contract.
Contractors say is increasingly difficult to arrange financing for these deals because they carry the risks.