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KOC floats EPC tender for Jurassic gas development

Kuwaiti company reportedly invites seven lead players to bid for JGF-1 contract to build onshore facilities

Kuwait Oil Company (KOC) has begun the tender process for a key engineering, procurement and construction contract involving onshore facilities required for its Jurassic gas project in the northern part of the country.

Seven leading international EPC contractors are said to have been invited to bid for the Jurassic Gas Facility-1 (JGF-1) project as a lead player, chasing a contract that is expected to be worth more than $3.5 billion, industry sources said.

The lead bidders will be required to submit offers in a consortium with a partner that has been separately categorised by KOC, industry sources said.

The seven A-category EPC contractors that have been invited to bid for the JGF-1 project as a lead player are said to include Japan’s JGC, US-based KBR, Spanish player Tecnicas Reunidas, Italy’s Saipem and Korean contractors Samsung Engineering, Hyundai Heavy Industries and SK E&C.

Several other players qualified in KOC’S B-category can offer bids for the Jurassic project as a partner, sources added.

This list includes all seven players from the A-category, along with India’s Larsen & Toubro, UK-listed Petrofac, Canada’s SNC Lavalin, French giant TechnipFMC and Korea’s Daewoo E&C, sources said. The lead member of the bidding consortium must have a minimum of 60% and a maximum of 70% share in the consortium, while the balance could be held by the partner.

A pre-bid meeting is likely to be held by KOC later this month and bids are expected to be submitted by February next year, one source said.

The project’s scope is said to include a central processing facility, along with associated pipelines and gathering facilities.

JGF-1 is expected to handle up to 590 million cubic feet per day of gas, one source indicated.

The Jurassic gas project is a key part of Kuwait’s strategy to increase indigenous gas production to meet its growing gas demand. It is a sour gas project based on the processing and handling of the sour hydrocarbons being produced from several North Kuwait Jurassic fields in the Middle Marrat reservoir, sources said.

Production from the project will be exported via a new pipeline that will tie in to the existing transmission system.

US-based Black & Veatch said in December last year that it has been awarded a contract by KOC to licence technology and related services for sulphur recovery units and acid gas removal units to support natural gas processing on the Jurassic field.

The US player added that the Jurassic gas field project is central to KOC’s 2030 upstream strategic objective, which is “to optimise the production and utilisation of associated gas and maximise production of non-associated gas in support of the energy requirements for the State of Kuwait”.