• Petrofachas bid lower than rivals Saipem, SK E&C and Daelim
  • The manifold will connect oil wells to gathering centres 29, 30 and 31
  • Petrofac has already won the contract for gathering centre 29
  • The project is part of Kuwait’s long-term strategy to develop its Northern oil fields

UK-based company Petrofac has bid low on Kuwait’s Main Pipeline Manifold Gathering System project with a bid of $776m.

The project aims to transport liquids from wells in the Kuwait’s north to gathering centres 29, 30 and 31.

The full bidder list is:

  • Petrofac (UK) / Independent Petroleum Group ($776m)
  • Saipem (Italy) / United Gulf Enterprises General Trading & Contracting Co ($891m) 
  • SK E&C (South Korea) / Sayed Hamid Behbehani & Sons ($958m) 
  • Daelim (South Korea) / Zahra Group Holding ($980m)

The Main Pipeline Manifold Gathering System project is expected to see its main contract awarded in July 2015 with commissioning in 2017.

Contracts were awarded for the construction of gathering centre 29, 30 and 31 in August.

The contract for gathering centre 29 was won by Petrofac, with India’s Larsen and Toubro winning the contract for gathering centre 30 and UAE-based Dodsal winning the contract for gathering centre 31.

The total value of the three contracts came to $2.3bn.

Another project to construct manifolds associated with works in south and east Kuwait is also currently being tendered.

Recently the bid deadline for the manifold project in south and east of Kuwait was extended to 21 April.

Before the bid deadline was delayed the project was expected to see its main contract awarded in July 2015 with commissioning in July 2017.

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

The three new gathering centres are needed as part of KOC’s long-term strategy to develop the oil fields of North Kuwait.

Each gathering centre will be designed to handle up to 100,000 barrels a day (b/d) of oil, 240,000 b/d of water and 240 million cubic feet a day (cf/d) of associated gas. KOC expects the main scheme to be competed in December 2018.

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