Kuwait sets new deadline for $2bn pipelines contract

25 April 2010

State oil company delays submissions by one more week

Kuwait’s Central Tenders Committee (CTC) has pushed back the closing date for technical and commercial proposals for a major deal to build a series of oil and gas pipelines across the country.

Contractors have now been given until 27 April to hand in their bids, a week later than the 20 April deadline set in March. The bidders were supposed to submit proposals to Kuwait Oil Company (KOC) for the estimated $2bn deal on 21 March, but a number of firms asked for an eight week extension to prepare (MEED 21:3:10).

Bids are expected from Daelim Corporation, GS Engineering & Construction, SK Engineering & Construction, all of South Korea, and Italy’s Saipem.

The winning firm will build a series of pipelines, including low sulphur pipelines, running from the Mina al-Ahmadi refinery to power plants across the country. The Mina al-Ahmadi refinery is located approximately 45 kilometres south of Kuwait City. The pipelines will provide feedstock to power plants at Doha East and West, Subiya, Shuaiba and Al-Zour.

The deal is broken down into two phases: The first phase involves the installation of three 48-inch pipelines, and one 40-inch pipeline. The second part of the project covers the construction of a pumping station at Mina al-Ahmadi.

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