Locals bid low for Kuwait pipeline work

13 May 2008

The local O&G Engineering General Trading & Contracting Company is low bidder at KD19.3m ($71.5m) for a long-term contract to provide maintenance services for the state’s gas pipeline network.

O&G’s bid is marginally lower than the next lowest offer of KD19.4m ($71.9m), submitted by the local United Gulf Construction Company. Alghanim International General Trading & Contracting Company, also local, is ranked third on price at KD20.7m ($76.7m). Seven other local contractors also bid for the work.

The five-year contract covers the maintenance and repair of pipelines belonging to the client, Kuwait Oil Company (KOC). Much of the state’s pipeline infrastructure is ageing and requires significant corrosion monitoring and repairs.

O&G recently submitted the lowest bid for the contract to build a new oil pipeline between transit line 3 and the Doha East power and desalination plant (MEED 29:4:08).

Awards on both contracts are expected by August.

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