By Abdelghani Henni
Senior official says that tender bids will be invited in Oct and contracts awarded in March.
Qatar Petroleum is expected to invite bids for engineering, procurement and construction (EPC) contracts for the multi-billion dollar Al-Shaheen refinery project in October, according to a senior official close to the deal.
“The owners of the projects want to issue the instructions of the EPC to bidders in the month of October,” the offical said.
“They will award the contracts in March 2010” he added.
The project was put under review last March in a bid by the state-owned hydrocarbons giant to trim construction costs. The budget for the Al-Shaheen refinery has ballooned to $13bn, but recent reports suggest that Qatar Petroleum is confident it can get this to below $10bn.
Technip Abu Dhabi was awarded the FEED contract for the project in August 2007, which took 12 months to complete.
“We did the FEED [at Shaheen], but then received a call by the client saying that they were reconsidering the scheme,” the official noted.
Many major energy companies have revised plans for new projects due to the lower oil price and falling demand, but also in view of cheaper costs for raw materials.
The Al-Shaheen grassroots refinery will be located at Mesaieed Industrial City in the Qatar. With a capacity of 250,000 bpd and will produce high quality products, mainly gasoline, diesel oil and jet fuel and other hydrocarbon derivatives.
Feedstock for the refinery will be sourced from the offshore Al-Shaheen field. The project is expected to be completed by 2014.
Source: ArabianOilandGas.comFor all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.