RFP out for Bapco LSDP subcontract

22 October 2004
A request for proposals (RFP) has been sent to four companies for the main construction package on the low-sulphur diesel production (LSDP) project at the Sitra refinery of Bahrain Petroleum Company (Bapco). The $431 million engineering, procurement and construction management (EPCM) contract was awarded to Japan's JGC Corporationin December (MEED 2:1:04).

The four firms invited to submit bids by the end of November are understood to be Athens-based Consolidated Contractors International Company (CCC), Turkey's Gama, India's Punj Lloyd and Turkey's Tekfen. The construction package is expected to be worth about $100 million, and covers the grassroots hydrocracking unit, a hydrogen unit, a sulphur recovery plant and associated works.

Two smaller packages have already been awarded to local contractors on the long-awaited refinery upgrade. Down Town Constructionhas the contract to carry out site preparation, while Mechanical Contracting & Services Companyis installing temporary facilities.

The Bapco project calls for the installation of a 40,000-barrel-a-day LSDP unit to upgrade product quality in line with more stringent environmental standards among importers.

In July, the company's board approved the next phase of Bapco's investment programme - the $120 million refinery gas desulphurisation (RGD) project. An engineering, procurement and construction (EPC) tender is due to be issued imminently (MEED 16:7:04).

Financing for the LSDP unit was well received when the preliminary information memorandum (PIM) was issued in September, and has consequently been upsized to include the RGD project (see Banking and Finance).

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