Saudi, Kuwait extend deadline for Khafji gas bids

$50 million NGL distribution facility has bid deadlines pushed back for the second time
Saudi, Kuwait extend deadline for Khafji gas bids
ON TRACK: Kuwaits oil minister said plans were on track to build a joint refining and petrochemical project at Vietnams second largest refinery. (Getty Images)
By Reuters
Wed 06 Oct 2010 10:31 PM

A Saudi-Kuwaiti oil joint venture said it had extended bidding for the construction of gas and natural gas liquids (NGL) distribution facilities at the Khafji oilfield to Nov 1.

Al Khafji Joint Operations Co (KJO) said in a brief announcement on its website that the deadline had been pushed back from Oct 11. The closing date had already been extended from an original deadline on Sept 27.

KJO did not provide further details. An industry source said last month some bidders needed more time to submit their proposals.

The project, estimated to cost at least $50 million, would collect the gas that is flared and allocate it to Kuwait and Saudi Arabia.

Khafji, located in the Neutral Zone between OPEC members Kuwait and Saudi Arabia, has an oil capacity of around 610,000 barrels per day.

The zone now produces between 60 to 70 million cubic feet a day (cfd) of associated gas.

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

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