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Kuwait announces retender of upstream contracts

31 July 2024

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State-owned upstream operator Kuwait Oil Company (KOC) has officially announced the planned retender of two upstream projects worth an estimated $2.1bn.

Earlier this week, MEED revealed that the two original tenders had been withdrawn because companies were not given the normal 30-day notice ahead of the tender.

Companies have now been given official notice that the retender will be issued after at least 30 days.

During this notice period, companies not prequalified to bid for the contracts will be permitted to request prequalification.

The first project, tender number RFP-2099852, involves installing Separation Gathering Centre 1 (SGC1) and Water Injection Plant 1 (WIP1) in East Kuwait 1.

This project is estimated to be worth KD333m ($1bn).

The project is being developed to maintain production and deal with surplus produced water.

SGC1 will have a total liquid-handling capacity of 600,000 barrels a day (b/d). WIP1 will have an injection capacity of 750,000 b/d.

The deadline for bid submissions was originally announced as 13 October and a pre-tender meeting was due to take place on 14 August.

The second project, tender number 2099855, involves the installation of Separation Gathering Centre 3 (SGC3) and Water Injection Plant 3 (WIP3) in the area known as South Kuwait 1.

This project is estimated to be worth KD341m ($1.1bn).

The project scope includes installing associated gathering manifolds and high-pressure injection manifolds for primary oil, water and gas separation at SGC3 and for water treatment and injection at WIP3.

The original deadline for bid submissions for the second project was 15 October and a pre-tender meeting was due to take place on 13 August.

According to the latest announcement, the companies prequalified for the project are unchanged.

They are:

  • Hyundai Engineering (South Korea)
  • Daewoo Engineering & Construction (South Korea)
  • Larsen & Toubro (India)
  • Fluor (US)
  • Tecnicas Reunidas (Spain)
  • Sinopec Engineering Incorporation (China)
  • CTCI Corporation (Taiwan)
  • Saipem (Italy)
  • Samsung Engineering (South Korea)
  • JGC Holdings Corporation (Japan)
  • Hyundai Engineering & Construction (South Korea)
  • Sinopec Luoyang Engineering (China)
  • Petrofac International (UK)

It is possible that new contractors will be added to the list of prequalified companies before the contracts are retendered.

Kuwait is currently experiencing an uptick in oil and gas project activity, largely due to political developments in the country.

On 10 May, Kuwait’s Emir, Sheikh Mishal Al-Ahmad Al-Sabah, announced the indefinite suspension of parliament in a televised speech.

Under Kuwaiti law, parliament can be suspended for a maximum of four years.

Prior to the suspension of parliament, the country suffered from very low levels of project awards for several years due to political gridlock and infighting between the cabinet and parliament.

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Wil Crisp

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