Kuwait may re-tender major oil contract

OPEC member Kuwait is likely to re-tender a major contract aimed at boosting its oil export capacity to 3 million barrels per day, a senior executive has said. Ahmad al-Arbeed, chairman of Kuwait Oil Company (KOC), owner of the project, said that KOC has decided to return the project to the Central Tenders Committee (CTC), which awards all the state’s major contracts.
The contract was provisionally awarded to Sweden’s Kvaerner Engineering after it submitted the low bid of USD 780 million. It beat France’s Technip, which offered USD 1.12 billion, and JGC, which offered USD 1.15 billion. But al-Arbeed said Kvaerner failed to provide solutions for a “number of technical problems” discovered during the evaluation stage. KOC is currently studying what recommendation it should make to CTC, but industry sources said the company will suggest re-offering the whole project in a new tender.
The Crude Export Facilities project will expand the existing export terminal facilities at the emirate’s main terminal in the oil town of Al-Ahmadi. It also includes building a huge pumping complex and boosting the number of terminals and power generation. It will add new crude oil super-sized storage tanks and large gravity loading lines and submarine pipelines.

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