Kuwait delays two major oil schemes

28 April 2014

Kuwaiti heavy oil development and new refinery pipeline pushed back

State upstream operator, Kuwait Oil Company (KOC) has pushed back the bid deadlines for two major upstream engineering, procurement and construction (EPC) projects.

Bids are now due on 15 June for the estimated $4.2bn development of the Lower Fars heavy oil project, instead of 11 May.

The long-awaited deal, one of the largest upstream projects in the region, was first launched in October 2013. It covers the first phase of development to produce 60,000 barrels a day (b/d) of heavy oil in the north of Kuwait.

The single EPC tender includes five main parts covering a steam-injection facility, production facilities, a support complex, tank farms and a 270,000 b/d pipeline to transport the heavy crude to the planned new refinery at Al-Zour in the south of Kuwait.

KOC has also pushed back the deadline for bids for another series of pipelines to feed the New Refinery to 3 June, instead of 5 May. The pipeline construction contract was tendered in late January with at least 15 EPC firms prequalified to bid.

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