Kuwait tenders oil and gas gathering centres deal

12 August 2013

Gathering centres 29, 30 and 31 planned by Kuwait Oil Company

State-upstream operator Kuwait Oil Company (KOC) has issued a long-awaited tender for the construction of three new oil and gas gathering centres in the north of the country.

KOC has set a deadline of 10 November for the deal, which could be worth as much as $2bn.

A preliminary meeting will be held on 9 September. KOC has set a bid bond of KD4.5m ($15.8m).

Twelve engineering, procurement and construction (EPC) firms have been prequalified, which are:

The projects’ designs were completed in late 2011 and tenders had been expected in early 2012, but the scheme was delayed pending approval from KOC’s parent company, Kuwait Petroleum Corporation (KPC).

In late-May, the Kuwaiti government replaced the heads of all but one of KPC’s eight subsidiaries, including the long serving KOC’s chairman, Sami al-Rushaid. He is replaced by Hashem Hashem, who had been KOC’s deputy managing director for south and east Kuwait. 

Kuwait’s oil fields are connected to 26 gathering centres, which serve as a collection location for crude oil produced at several wells connected by flowlines, providing initial treatment through the separation of associated gas and removing salt.

The latest gathering centre was completed by South Korea’s SK Engineering & Construction in April 2010 under a $623m contract signed in March 2007.

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