Seven contractors to bid for Khafji Joint Operations gas contract

10 October 2010

Bid deadline put back to 1 November to allow technical bids to be prepared

The Saudi Arabian/Kuwait joint venture Khafji Joint Operations (KJO) will receive bids from seven companies interested in its collection and distribution facilities contract for both gas and natural gas liquids (NGL).

The engineering, procurement and construction (EPC) contract is being planned by KJO to collect and process the associated gas that is currently flared by the company.

One contractor involved in the project also says that KJO’s decision to delay the bid submission date from 11 October to 1 November is because some contractors were still working on their technical bids. “Some contractors need more time to prepare bids,” the source says.  

“A lot of the companies involved in this contract have been bidding on other projects [for KJO],” the source adds. “JGC [Corporatio, of Japan] won a contract in September.”

The seven companies bidding for the gas collection and distribution facilities are:

  • Consolidated Contractors Company (Greece)
  • Daelim Saudi Arabia Company Limited (South Korea)
  • JGC Corporation (Japan)
  • Samsung Engineering (South Korea)
  • The Techint Group (Italy)
  • Snamprogetti (now part of Saipem) (Italy)
  • ABB (Switzerland)

Other projects tendered recently by KJO include the $155m deal to build a new water treatment plant, as well as France’s Technip being awarded a $400m contract to oversee its offshore oil operations (MEED 10:10:10)

The schemes are part of KJO’s plans to boost overall oil production in the Divided Zone from an estimated 550,000 barrels a day (b/d) currently to 900,000 b/d by 2030.

KJO is responsible for oil operations in the Neutral Zone that lies between Saudi Arabia and Kuwait. The company is a joint venture between Saudi Aramco subsidiary Aramco Gulf Operations and the Kuwait Gulf Oil Company.

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