Quality was ranked in three classes. Of the four groups in the first technical class, the group led by OTEC bid $290 million; Iran Itokwith Spain's Initec Tecnologiabid $300 million; a group comprising the local Sazeh Consultantswith Pipeline Engineering (PLE)and Ferrostaal, both of Germany, bid $320 million; and the local Bina Consulting Engineerswith France's Paragon Litwinbid $349 million.

Of the bidders ranked in the second technical group, a group led by the local Hirbodenwith France's Sofregazand the local MPCCbid $280 million; the local Kayson Construction Companywith the UK office of Foster Wheelerand the local Ameran Ofoghbid $300 million; and Chajaleshwith Spain's Dragados & Construccionesbid $320 million.

Three groups were disqualified on technical grounds. Of these, Sadid Industrial Group, Petrotecand Faravaranghader- all local - with Canada's Cimeronbid $260 million; the local Oil Industries Engineering & Construction Company (OIEC)with South Korea's LG Engineering & Constructionbid $300 million; and the local Tehran Jenoubwith Europe's ABB bid $320 million.

The engineering and procurement (EP) contract will involve building a booster gas compressor station. The IGAT-5 pipeline will transfer gas from the South Pars 6-8 and Salman field developments to the Aghajari oil field for reinjection. The scheme is intended to increase oil recovery at Aghajari, which is expected to extend the longevity of the field rather than lead to incremental production increases. The client is National Iranian Gas Company (NIGC).

One pipeline package has already been awarded on the scheme: a $235 million contract was awarded to the local Safato lay 410 kilometres of pipeline. NIGC is now evaluating bids for the second, 240-kilometre pipeline package, expected to be worth less than $100 million and to go to a local group.

Financing for the project is still under negotiation, with the lead arranger, Japan's Mitsui & Company, discussing terms with the client.