PROJECTS: Chinese, Kuwait firms submit lowest bid for Jurassic gas deal

KOC receives bids from 5 firms

  
Aview of oil and gas refinery. Image used for illustrative purpose.

Aview of oil and gas refinery. Image used for illustrative purpose.

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A Chinese group and a local firm have submitted the lowest bids for two major Jurassic gas projects in North Kuwait with a combined value of around $980 million, a local newspaper reported on Tuesday. 

The state-owned Kuwait Oil Company (KOC), the Gulf emirate’s upstream investment arm, has received bids for the projects to build facilities for Jurassic gas to lift production to more than one billion cubic feet per day, the Arabic language daily Alanba said. 

It quoted KOC sources as saying China’s Jereh Oil &Gas Engineering Corp submitted the lowest bid of $490.6 million for package 1 of the project, dubbed JPF-4. 

Spetco International Petroleum Company of Kuwait submitted the lowest bid of $489.4 million for package 2 known as JPF-5, the report said. 

“KOC received bids for the two packages from five local and foreign companies…by submitting the lowest bids, those two firms are now closer to winning the contracts.” 

The paper said the Kuwaiti Gas and Oilfield Services Company submitted the second lowest bid of $529.2 million for package 1 while Alkhorayef Group, another Kuwaiti firm, submitted the lowest bid of $549.1 million for package 2. 

Citing a KOC report, the paper said the Jurassic gas project in North Kuwait close to the border with Iraq would have a capacity of 100,000 bpd of light crude and 300 million cubic feet of free gas a day. 

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com

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