WorleyParsons takes EPCM pipeline contract

13 April 2006
Australia's WorleyParsons received on 12 April a letter of award for the KD 64.4 million ($222 million) engineering, procurement and construction management (EPCM) contract covering the Mina al-Ahmadi-Subiya gas-oil pipeline project. The client is state upstream operator Kuwait Oil Company (KOC).

Worley was widely expected to win the contract after submitting the lowest bid in March, beating off competition from the UK's AMEC and the US' Fluor Corporation (MEED 17:3:06).

The project's scope of works covers a 20-inch-diameter, 170-kilometre-long pipeline to supply gas-oil fuel for the proposed Subiya power station, north of Kuwait City. Under the terms of the 23-24 month contract, Worley will carry out detailed engineering over a period of eight-nine months before tendering the construction element. Procurement will be carried out by Worley on behalf of KOC. The Subiya feedstock scheme is the first local oil and gas project to be awarded on an EPCM basis. KOC is understood to have adopted the new approach to speed up project execution and reduce contractor risk (MEED 13:1:06).

A US/Korean team of GE Energy and Hyundai Heavy Industries recently submitted a low bid of KD 232 million ($800 million) for the engineering, procurement and construction (EPC) contract to build the 1,500-MW Subiya plant. The client is the Ministry of Energy (Electricity & Water MEED 17:3:06).

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