Saudi Aramco Extends Bid Deadline For Clean-Fuels Project at Ras Tanura -- Sources
May 17 2016 - 8:28AM
Dow Jones News
By Kevin Baxter
LONDON--State-run Saudi Arabian Oil Co., or Saudi Aramco, has
extended the deadline for submitting commercial and technical bids
for a $2 billion clean-fuels project at its Ras Tanura refinery,
according to people familiar with the project.
The initial schedule called for bids to be submitted to Saudi
Aramco by May 11. However, people familiar with the project said
this has now been extended to July 17 to give participating
contractors more time to formulate bids.
One person from a large international contractor bidding on the
contract said that due to the size and complexity of the project,
this type of extension was expected.
The person added that the delay will likely result in the
announcement of successful bidders being pushed back to the fourth
quarter of 2016.
The long-awaited project, which has been delayed by at least two
years, is aimed at providing Saudi Aramco with cleaner gasoline and
diesel for domestic consumption and export. This will be achieved
by rehabilitating the existing facilities at the 550,000 barrel a
day refinery as well as adding new units to lower the sulfur and
benzene content of both fuels.
The vast majority of work at the scheme has been split into two
large packages and will be executed over a 36-month construction
phase, meaning commissioning should start by early 2020.
The first package covers the engineering, procurement and
construction, known as EPC, of a naphtha-processing facility at the
refinery. The scope will include the EPC of all the main technical
units that are planned for the scheme as well as power distribution
and control systems.
The second package covers offsites and utilities at the project
and will include the EPC of the all tanks, substations and
buildings at the project.
A total of 11 international contractors have prequalified to bid
for the work, with seven bidding on both packages and a further
four on the second package.
The seven bidding on both are South Korea's Daelim Industrial
Co., Hyundai Engineering & Construction Co., Samsung
Engineering Co. and GS Engineering & Construction as well as
Japan's JGC Corp., Italy's Saipem SpA and Spain's Tecnicas Reunidas
SA.
The four contractors bidding solely on the second package are
South Korea's Daewoo Engineering & Construction Co. and Hanwha
Engineering & Construction as well as India's Larsen &
Toubro Ltd. and the London-listed Petrofac.
Ras Tanura is wholly owned by Saudi Aramco and is the largest
oil refinery in the Middle East. It is situated on the Persian Gulf
coast in eastern Saudi Arabia.
Saudi Aramco wasn't available to comment when contacted by The
Wall Street Journal.
Write to Kevin Baxter at Kevin.Baxter@wsj.com
(END) Dow Jones Newswires
May 17, 2016 08:13 ET (12:13 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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