| Kippreport.com

Saudi, Kuwait extend deadline for Khafji gas bids

October 6, 2010 3:00 by Reuters

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).

(Reporting by Reem Shamseddine; editing by Amena Bakr and Jane Baird)

Tags: Khafji gas bids, Khafji oilfield, Kuwait saudi Arabia Khafji gas bids, Saudi-Kuwaiti oil joint venture