Kuwait Oil Company rules out three contractors, according to sources
- Three companies that previously bid on the contract are now not eligible
- Three contractors that did not bid have been invited to submit prices
- Kuwait Oil Company considering inviting more firms to bid on project
State-owned upstream operator Kuwait Oil Company (KOC) is extending the list of contractors eligible to bid on the retender of the Al-Zour feed pipeline, which is estimated to be worth $800m.
According to industry sources, the following contractors have already been invited to participate:
- Saipem (Italy)
- Daelim Industrial (South Korea)
- Consolidated Contractors Company (Athens-based)
- GS Engineering (South Korea)
- SK Engineering & Construction (South Korea)
KOC is also considering inviting other firms to participate, according to sources.
The original bidders list was:
- Larsen & Toubro (India) $814m
- Dodsal (Dubai) $922m
- Saipem $946m
- Daelim Industrial $959m
- Petrofac (UK) $1bn
This time around, Larsen & Toubro, Dodsal and Petrofac have not been asked to bid, according to industry sources.
They say KOC believes both Petrofac and Dodsal may not have the capacity to take on the Al-Zour pipeline scheme due to the amount of contracts they have already won in Kuwait and are now executing.
According to sources, Larsen & Toubro is not being asked to submit a bid because it allowed its bid bond to expire in October 2014, effectively withdrawing from the tender process.
On 17 June, MEED reported that contractors had been told the Al-Zour refinery feed pipeline project would be retendered.
A new bid deadline is expected to be announced after Ramadan.
The contracts scope includes the construction of about 250 kilometres of oil feedstock pipelines, which will serve the planned 615,00 barrel-a-day (b/d) greenfield Al-Zour new refinery in southern Kuwait.
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The outlook for the projects market in the GCC is as uncertain as its ever been with oil prices falling nearly 50 per cent since June 2014. The impact on the national revenues of the GCC oil producers has increased pressure on government finances and has led to a review of spending priorities across all the GCC markets.
As a consequence there is huge uncertainty for any businesses operating in the regional projects market.
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