Project Name: SOC – Khoms-Tripoli and Melitah-Tripoli Pipelines
Budget (US$): 270,000,000
Facility Type: Pipeline
Main Contractor: Not yet appointed
Location: Khoms-Tripoli
Status: EPC Bid Retendering
Project Status
The engineering, procurement and construction (EPC) contract was awarded to Zangas in March 1999. Construction began in February 2000. Several delays have occurred in the construction procedures. International companies were invited in October 2001 to bid for the construction of a 120-kilometre gas pipeline between Melitah and Tripoli. Sirte Oil Company received bids from 10 international companies for the contract to build the Melitah-Tripoli pipeline in March 2002.
The bidders were: Petroleum & Industrial Realisation Contractors (Pireco) with Hamada Pipeline Company; Bonatti; Consolidated Contractors International Company (CCC); Joannou & Paraskevaides (J&P-Overseas); Arab Contractors (Osman Ahmed Osman & Company) with Petrojet; MAN GHH; STFA; Comat; Zangas.
The project is valued at $50 million-60 million. A consortium of Arab Contractors (Osman Ahmed Osman & Company) with Petrojet emerged as the low bidder for the Melitah-Tripoli pipeline in October 2002 after six groups submitted revised prices for the project in late September. Five companies declined to rebid after the client, Sirte Oil Company, requested some major technical alterations to initial plans for the 97-kilometre oil link. The group's offer, totalling $106 million, enabled it to leapfrog the previous lowest bidder, Petroleum & Industrial Realisation Contractors (Pireco), which this time submitted an offer totalling $116 million. The other companies bidding for the project were: STFA; Joannou & Paraskevaides (J&P-Overseas); MAN GHH; Bonatti.
Delays were anticipated on the project because it was dependent on the 530-kilometre Wafa-Melitah twin gas and oil pipeline, which was to come onstream in 2004. In December 2002, after a long bidding process, just three groups remained in the running for the contract to build the Melitah-Tripoli gas pipeline and compressor station.
They were: MAN GHH; Joannou & Paraskevaides (J&P - Overseas); Bonatti.
Sirte Oil Company decided to withdraw the project from Zangas during the fourth-quarter of 2002 due to delays leading to contract breach. Zangas finished the the supply and installation of the 34-inch diameter pipeline. Delayed and unfinished works mainly included the construction of the two compressor substations between Marsa Al Braga and Misurata.
Sirte Oil Company issued bidding documents for the remaining part of the project worth $100 million. In February 2004, Sirte Oil Company selected MAN GHH and Joannou & Paraskevaides (J&P-Overseas) for contracts on the Khoms-Tripoli and Melitah-Tripoli gas pipelines. Sirte Oil Company, a subsidiary of National Oil Corporation (NOC), planned to sign the contracts by the end of March. MAN was to complete construction work on the 160-kilometre Khoms-Tripoli pipeline, which will serve the Khoms gas-fired power plant. The estimated $170 million contract to build the pipeline was originally awarded to Zangas in 1999. J&P was to undertake construction work on the 120-kilometre Melitah-Tripoli pipeline and compressor station to serve the power plant at Tripoli. Construction was scheduled to begin during the third-quarter of 2004.
In April 2005, Sirte Oil Company reissued two tenders for construction of the Melitah-Tripoli gas pipeline and completion of the Khoms-Tripoli gas pipeline. Contractors had until August 11 to bid for both schemes, which together are worth an estimated $270 million. Sirte Oil Company plans to award the contracts by year-end. It is understood that Sirte Oil Company’s recommendations were rejected by Tripoli, and the tenders cancelled. Sirte Oil Company says it is possible that the two tenders could be awarded to one contractor, depending on the quality of bids it receives. In June 2005 Sirte Oil Company invited more than 20 companies to make presentations of their capabilities for the two EPC contracts involving construction of the Melitah-Tripoli gas pipeline and completion of the Khoms-Tripoli gas pipeline. Commercial bids were due to be submitted on August 11 for both schemes.
Project Scope
The original project compnonets included 160-kilometre Khoms-Tripoli pipeline, which will serve the Khoms gas-fired power plant and the 120-kilometre Melitah-Tripoli pipeline and compressor station to serve the power plant at Tripoli, compression station between Marsa Al Braga and Misurata. Installation of 97 kilometres of 34-inch-diameter pipeline, 21 kilometres of 24-inch-diameter pipeline and a fire safety system is required.
Zangas completed the supply and installation of the 34-inch-diameter pipeline but did not finish construction of the two compressor stations between Marsa Al Braga and Misurata.
The scope of work for the remaining part of the project will include the 160-kilometre Khoms-Tripoli pipeline by MAN and the 120-kilometre Melitah-Tripoli pipeline and compressor station by J &P.
The compression station work has been issued as an addendum to the Melitah-Tripoli pipeline.
The scope of works for the estimated $170 million Khoms-Tripoli project covers the completion of construction work on the 160-kilometre pipeline, which is aimed at delivering feedstock for the Khoms gas-fired power plant.
The estimated $100-million Melitah-Tripoli scheme involves the construction of the 120-kilometre-long pipeline, to carry feedstock to the planned power plant at Melitah or for export via the recently opened subsea Greenstream pipeline to Italy.
