Kuwait tenders new northern field pipelines deal

05 January 2012

Upstream operator plans to increase production in northern areas

State upstream operator, Kuwait Oil Company (KOC) has tendered an estimated $300m deal for the construction of high pressure crude oil pipelines in the north of the country.

Bids are due to be submitted on 21 February. Documents were made available for purchase at a cost of KD4,000 ($14,352) on 1 January. KOC will hold a pre-tender meeting on 11 January.

The pipelines will connect Jurassic wells in the North Kuwait area, running from field wellheads to manifolds and gathering centres where the crude oil is processed. KOC has already prequalified 13 local and international engineering, procurement and construction firms.

The local Arabi Enertech submitted the lowest bid of approximately $255m for a long delayed scheme to build 20-inch high pressure pipelines in the northern areas in May 2010. The second lowest bidder is Al-Khadda Internatioal General Trading, also local, with a bid of $300m. KOC is yet to make a decision on the award (MEED 6:5:10).

The company needs to revamp its oil distribution network to cope with plans to increase total production capacity by 1 million barrels a day (b/d) to 4 million b/d by 2020. The northern oil fields hold an estimated 13 billion barrels of heavy crude oil reserves.

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