Bapco launches bidding to expand Sitra oil refinery

Posted on 17th June 2016

State-run Bahrain Petroleum Company (Bapco) has launched bidding to expand its Sitra oil refinery, industry sources said. The expansion is expected to cost about $5 billion.

It aims to boost processing capacity of the country's only oil refinery to 360,000 barrels per day (bpd) from its current 267,000 bpd under its Bapco Modernisation Programme (BMP).

Bapco said last year it would make a final decision on whether to expand its Sitra oil refinery in 2016.

Companies that are planning to submit bids and that have formed consortia are: Japan's JGC Corp and South Korea's GS; Technip, Tecnicas Reunidas and Samsung Engineering; Fluor, Hyundai Engineering and Construction and Daewoo E&C; and CB&I and Petrofac.

South Korea's GS E&C, Samsung Engineering, Hyundai E&C and Daewoo E&C said they had received a request to bid and were currently preparing to do so.

Samsung Engineering said it plans to bid as a joint venture with Technip and Tecnicas Reunidas.

Hyundai said it was preparing to bid with Daewoo E&C, itself a part of a consortium led by Fluor, Daewoo said.

The bidding closing date is on October 5 and the award of the contract is expected to be made in the first quarter or second quarter of 2017, the sources said, according to Tradearabia news report.

A JGC spokesman said the Japanese company is interested in the project. Tecnicas Reunidas declined to comment.

Bapco, CB&I and Petrofac did not respond to requests for comment.

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