Bids were submitted on 31 October to Al-Khafji Joint Operations (KJO) for the second major onshore contract to expand production facilities at the Divided Zone (DZ). Called the Hout field expansion facilities, the estimated $150 million-200 million engineering, procurement, construction and commissioning (EPCC) contract involves the construction of two large storage tanks, a buffer tank, pumping stations and flowlines. The two storage tanks will be built alongside existing storage facilities and will be connected by a 20-inch-diameter pipeline to ship loading facilities.

The bidders include Athens-based Consolidated Contractors International Company (CCC), SA Kent Company of Saudi Arabia; Parsons E&C, part of Australia’s WorleyParsons, with Saudi Oger; a three-member team of Canada’s SNC Lavalin with Saudi Consulting Services (SaudConsult) and Nesma & Partners Contracting Company, both of Saudi Arabia; and Engineering for the Petroleum & Process Industries (Enppi) of Egypt. The facilities will take 30 months to complete. Japan’s Toyo Engineering Corporation has carried out the front-end engineering and design (FEED) contract.

In early September, KJO awarded the first major onshore contract to CCC. Worth $100 million, the two-year project management and EPCC contract centres on the supply and installation of a new crude oil loading pump and related facilities.

Bids are due to be submitted by 28 November for a six-year workover programme involving the drilling of rigs and exploration drilling using jack-up rigs. The projects are part of the KJO programme in the DZ aimed at increasing crude output by 100,000 barrels a day (b/d) to 700,000 b/d.