Contract Award – Gulf Keystone Petroleum

http://energyandpower.co.uk/2011/11/contract-award/
01/11/2011
Energy and Power have been awarded a 2 year contract for the provision of engineering and management support services by Gulf Keystone Petroleum. The award has already resulted in the provision of a FEED design for a 100km oil pipeline through northern Kurdistan and this is likely to be followed by the FEED design of further early production systems for their Kurdistan assets.

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Re: Contract Award � Randalf
randalf
Avandandy
IIRC the tender was for Site Survey works. I don't recall ever seeing a tender related to engineering related activities. I hope I didn't miss it as I'd promised to keep a colleague informed if I heard of anything!

IIRC there was a invitation to tender on the GKP website a few months ago that seemed to relate to the pipeline.

You can only assume that the process was carried out in an open, fair and transparent manner from GKPs perspective.

Personally I believe this to be the case.

Obviously GKP will have relationships with engineering companies and that sort of thing can sway the bidding process one way or the other, but that is only to be expected. After all you don't let a dodgy builder loose on your house no matter how much he undercuts the competition and you may pay more for someone who can build something faster/earlier.

However IMO the whole process is skewed to an extent because some companies are refusing to tender in the KRG for whatever reason. Although this has absolutely no bearing on GKP as they can only work with what they have.

That may have been it, although I seem to recall it referring to site survey and engineering activities. This could be more my background picking up on certain words or I could have misread it.

Perhaps someone will be able to help with the tender document as I don't think it's currently available on the GKP website.

Assuming I'm wrong on that It's quite possible that a successful bidder for one tender could be shooed into a later related contract.

Strictly speaking a tender should be issued, but if you have Company A who have all of the required site/environment data as well as the staff who did the initial analysis and Company B who haven't. Even assuming a smooth transfer of information, Company B has to allow man hours for their own evaluation and analysis of that data, thus putting Company B at a commercial and time disadvantage.

That could be more than enough reason to discount Company B.



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If you check out the 14th Sept Analysts Presentation, you will see Energy and Power appeared in it. The RNS from Energy and Power just puts the paperwork together

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Contract Award � Gulf Keystone Pet...
randalf
2
Energy and Power has a good reputation and are perfectly capable of building a 100km pipeline, however it is a fairly recent entrant to the pipeline industry and has little in the way of major contracts with the big boys operating in Iraq.

I'd say this is mixed news for us, on the one hand the pipeline is progressing and it's great news for Energy and Power (and their employees) on the other hand there are more established companies who have better support and infrastructure in the Middle East who might have been expected to make a bid that haven't due to pressure from either the ICG or the majors with oil contracts in the south.

Another case of the smaller, more fearless company stealing a march on the bigger fish.
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