State-owned upstream operator Kuwait Oil Company (KOC) is expected to issue the invitation to bid on Jurassic Production Facility 4 (JPF4) and JPF5 in January, according to industry sources.
The total value of the two projects is estimated to be $900m.
“There have been delays over recent months, but progress towards the invitation to bid is still being made,” said one source.
“KOC is just finalising the list of bidders. Some additional companies are looking to be added to the list of prequalified companies.”
In July, Kuwait’s Central Agency for Public Tenders (CAPT) announced that it would invite companies to bid for two upcoming Kuwait Jurassic projects within 30 days.
At the same time, it also published a list of 11 prequalified bidders and said other companies that wanted to be added to the list could get in touch with the agency.
In July, CAPT said the following contractors had prequalified to bid on the contract:
- Daewoo Engineering & Construction (South Korea)
- JGC Corporation (Japan)
- KBR (US)
- Petrofac International (UK)
- Saipem (Italy)
- Samsung Engineering (South Korea)
- SNC Lavalin (Canada)
- Tecnicas Reunidas (Spain)
- Schlumberger Oilfield Eastern (US)
- Spetco International Petroleum (Kuwait)
- Al-Khorayef Group (Saudi Arabia)
Under the terms of the contracts for JPF4 and JPF5, the companies that are awarded the projects will have 22 months to execute the construction and will then operate and maintain the facilities for five years.
Together, the two contracts will create an onshore surface production facility with the capacity to produce 50,000 barrels of oil a day and 150 million standard cubic feet of gas a day.
The hydrocarbons will be produced from sour and wet reservoir fluids from the North Kuwait Jurassic fields.
The scope of the two projects will also include a water treatment unit, a sulphur recovery unit and associated facilities, such as a control room, substations and buildings.
Export pipelines will not be part of the scope of the projects.
JPF4 and JPF5 were originally expected to be tendered in the second half of 2018.
Three other JPF contracts have already been awarded.
Kuwait is tapping the Jurassic carbonate reservoirs in the north of the country to meet soaring gas consumption.
KOC started gas production from its Jurassic sour gas field in May 2008 with the commissioning of the upstream project known as Early Production Facility 50 (EPF 50).
The Jurassic reservoirs contain a variety of hydrocarbons ranging from oil to gas condensate with sour gas.
Earlier this month, MEED revealed that JPF3 in the West Raudhatain field had been fully commissioned.
Completion of the “execution phase of the project” was achieved on 22 December 2019, according to a letter from KOC dated 23 December.
The $377m contract for the project was awarded by KOC to Kuwait-based contractor Spetco in July 2016.