Saudi Aramco has asked interested companies to submit cheaper offers to build parts of a complex to supply energy to an oil refinery at Jizan, according to The Economic Times.
The bids were higher than the state-run oil giant had hoped for, so it is now inviting lower-cost bids for three of the four packages. A total of 14 companies bid in October for four packages to build elements of a 2,400 megawatt (MW) integrated gasification combined cycle (IGCC) plant at the refinery.
Aramco has re-tendered three of the four construction packages, as it is in talks with China’s Sepco III over the power plant package, sources told The Economic Times.
The plant will supply the 400,000 barrel per day oil refinery and other consumers around the industrial port on the Red Sea coast.
Construction of the refinery has not started. It will be the last of a trio of new 400,000 bpd refineries in Saudi Arabia between 2013 and 2018.
