State-upstream operator, Kuwait Oil Company (KOC) is in talks with at least two firms for an estimated $550m water-injection contract at the Wara oil formation in the southeast of Kuwait.

Canada’s SNC Lavalin submitted the lowest bid at KD150m ($542m) in a 5 April bid round, but was followed closely by second placed, GS Engineering & Construction of South Korea. Only KD1m separates the two bids (MEED 12:4:11).

Sources close to the deal say KOC has held technical clarification meetings with both firms and is set to decide on the winning contractor in June.

“Very little with happen between July and the end of Ramadan [August], so KOC will likely make recommendations to the CTC [Central Tenders Committee] before then,” says one Kuwait-city based source.

The CTC oversees the tendering and award process for all public contracts in the country.

KOC plans to build water collection, treatment and injection facilities to pump as much as 1 million barrels a day (b/d) of water into the Wara formation to maintain pressure and production levels at the field by the middle of 2014. This will comprise 10 water treatment units, 60 pumps and up to 700 kilometres of pipelines, with diameters varying from 6-30 inches.