Saudi Aramco has released invitation to bid (ITB) documents to local and international contractors interested in bidding for further packages under the programme to develop the onshore Abu Hadriyah, Fadhili and Khursaniyah (AFK) oil fields in the Eastern Province.
Saudi Aramco has released invitation to bid (ITB) documents to local and international contractors interested in bidding for further packages under the programme to develop the onshore Abu Hadriyah, Fadhili and Khursaniyah (AFK) oil fields in the Eastern Province. Italy's Snamprogetti and a joint venture of Paris-based Technipwith US-based Bechtelin March were selected for the two main process packages on the fast-track field development, which will produce 500,000 barrels a day of crude by the end of 2007 (MEED 18:2:05). Under the latest ITB, Aramco is tendering three packages for each of the fields covering all mechanical piping, civil structural and electro-industrial works. Contractors have been asked to submit competitive unit rates for the service order contracts. The bid deadline has been set for 26 July and will be preceded by a job explanation meeting on 9 July in the Eastern Province. Aramco's decision to tender the works on a competitive unit rate rather than on a lump-sum turnkey (LSTK) basis is part of the company's strategy to fast-track the project and to make it more attractive to contractors. Under the new contracting strategy, contractors can better adjust to the risk of rising material and equipment costs. Prospective bidders for the work include the local Tamimi Construction, Lebanon's Contracting & Trading (CAT), Dubai-based Dodsal, Athens-based Joannou & Paraskevaides (J&P- Overseas), Italy's Saipem, the Netherlands' Suedrohrbau, Italy-based Techint, Turkey's Tekfenand US-based Willbros Group. Bids are due on 25 July for the estimated $150 million-200 million engineering, procurement and construction (EPC) contract to build the up and downstream pipelines on the AFK development (MEED 24:6:05). The two main hybrid front-end engineering and design (FEED)-cum-EPC contracts covering the producing facilities and the construction of two trains for gas conditioning and ethane and natural gas liquids (NGL) recovery will be carried out on a reimbursable and LSTK basis by Snamprogettiand the Technip/Bechtel team, respectively (MEED 11:3:05).