THE Al-Khafji Joint Operations Company (KJO) is close to award offshore and onshore construction contracts for its Hout oilfield in February, Reuters reported.
US contractor McDermott International and South Korea’s Daewoo Engineering are tipped as the lowest bidders to build units to recover gas from the shared oilfield owned by Kuwait and Saudi Arabia.
KJO would have to bear the additional cost of managing the two projects if it picks two contractors, two sources told Reuters.
France’s Technip also submitted the lowest combined bid while India’s Larsen and Toubro, Italy’s Saipem, CCC and UAE’s NPCC, South Korea’s GS Samsung Engineering were among firms invited to bid.
The winning firms are expected to build offshore gas gathering facilities, a subsea pipeline to carry 48 million cfd, and onshore gas facilities.
KJO, a joint venture between Saudi Arabia and Kuwait, have boosted output capacity from their shared Neutral Zone to 610,000 bpd, which includes the fields of Al-Khafji, Lulu, Hout and Dorra.
Gas News | Middle East
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