Kuwait Oil Company (KOC) has extended the closing date for submitting prequalification documents for a deal to build heavy oil processing facilities by another four weeks to 27 June.

Local and international firms were first invited to prequalify for the estimated $2bn deal by 30 May, but contractors say that KOC announced the latest extension on 27 May. The state-run oil producer did not give a reason for the extension.

This is the latest in a series of delays to the project to build, operate and maintain the temporary heavy oil handling facilities in the north of the country. The tender has been seen by sources in Kuwait as a sign that the emirate means to push ahead with developing the technically complex heavy oil production facilities, even without the assistance of international oil companies.

Kuwait’s northern fields contain an estimated 13 billion barrels of heavy crude oil reserves. KOC is targeting heavy oil production of around 250,000 barrels a day by 2020.

Kuwait signed a heads of agreement with the US’ Exxonmobil in 2007 to develop its heavy oil, but no progress on that agreement has been made since. KOC has now entered into talks with three IOCs; UK/Dutch Shell Group, France’s Total and the US’ Exxonmobil to develop the northern Adbali, Ratqa, Raubhatain and Sabriyah fields (MEED 12:5:10).

When complete, the temporary facilities will be used to test the viability of commercial production. KOC will lease them from the winning contractor, over a period expected to be five to 10 years, before permanent facilities are built.