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Sat 25 Sep 2010 04:10 PM

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Saudi-Kuwait JV extends bid for Khafji gas work

$50m project requires more time as sources hope for further bid extensions.

Saudi-Kuwait JV extends bid for Khafji gas work
BIDDING EXTENDED: A Saudi-Kuwaiti joint venture has extended bidding to Oct 11 for the construction of a gas and NGL distribution facility. (Getty Images)

A Saudi-Kuwaiti joint venture has extended to Oct 11 the bidding for the construction of gas and natural gas liquids (NGL) distribution facilities at Khafji oilfield, the company said.

Al Khafji Joint Operations Co (KJO) said on its website the deadline was extended to Oct 11 from Sept 27.

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 produces now between 60 to 70 million cubic feet a day (cfd) of associated gas, Bader al Khashti, the managing director of Kuwait Gulf Oil Co (KGOC) was quoted as saying by Kuwaiti daily newspaper al Seyassah earlier this month.

KJO was setup by Aramco Gulf Operations, a subsidiary of state oil firm Saudi Aramco, and Kuwait Gulf Oil Co (KGOC).

A source said: "Time is not enough, I hope they will extend further the bid submission date."

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

Bidders are South Korea's Samsung Engineering, Daelim Industrial Co Ltd, Techint, Italy's Saipem, Spain's Intecsa, Japan's JGC and Consolidated Contractors Co (CCC). (Reuters)

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