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Saudi-Kuwait JV sets new deadline for Khafji bids

Riyadh, October 14, 2009

Bidding for work at an oilfield Saudi Arabia shares with Kuwait has been extended by more than two months until mid December, as contractors work on improving their bids, industry sources said.

Al-Khafji Joint Operations (KJO) announced on its website that the fresh deadline for bids had been reset for December 14.

The previous deadline for both contracts was September 28.

The two projects cover expansion of offshore oil facilities and construction of water treatment facilities at the oilfield.
 

Khafji, which is in the Neutral Zone between the two countries, has oil production capacity of around 550,000 bpd.

The kingdom and Kuwait plan to boost capacity in the zone to 700,000-900,000 bpd by 2030.

The new extension was made upon their request as they needed more time to provide better bids, two contractors said.

"Bidders requested an extension in order to properly provide a quotation," one source said.

The offshore crude project, which aims to raise production from the field, mainly provides for the installation of new power distribution platforms, submarine power cables and well jackets, he added.

As for the onshore water treatment facilities, contractors will have to overhaul an existing plant and build a new one. "KJO's objective is to achieve and maintain a capacity of 350,000 barrels per day of Khafji and Hout Crude by expanding the water treatment plant (phase 3) and the water injection facilities," a contractor said.

"The water treatment facility would treat maximum 170,000 bpd of Khafji produced water, to meet water injection specifications for Khafji Ratawi Limestone Reservoir and Khafji Minor Reservoirs."    

It would inject 170,000 bpd of treated Khafji produced water into five new onshore disposal wells which will be drilled in advance and separately from this project, he added.

KJO has also set December 28 bidding deadline for updgrade of onshore crude facilities at its Hout field, a contractor said.

KJO is split between Aramco Gulf Operations, a subsidiary of Saudi Aramco, and Kuwait Gulf Oil Co (KGOC). - Reuters
 




Tags: Saudi Arabia | Kuwait | Khafji |

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