Latest report from the National Bank of Kuwait (NBK) shows that in the third-quarter of 2016, Kuwait awarded project contracts worth over KD1 billion, a significant jump on the KD126 million in contracts awarded during the second-quarter.
The government has so far in 2016 awarded contracts worth over KD3.6 billion of which roughly 42 percent, or around KD1.5 billion has been in the oil and gas industry. Kuwait is expected to award a further KD2.3 billion worth of contracts by the end of 2016 and over KD11.5 billion in 2017.
The new data reveals that despite low oil earnings the government remains committed to pushing its development plan. The majority of contracts awarded so far this year have been to companies in the private sector through public private partnerships (PPP).
Projects in the oil and gas sector reported a boost in the third quarter mainly on the back of Kuwait Oil Company (KOC) signing the west and east Raudhatain fields in the Jurassic Non-Associated Gas Reserves project.
Kuwait’s Spetco International Petroleum Company was given the contract for the west field while US firm Schlumberger secured the contract for the east field. An additional KD572 million worth of contracts are expected to be awarded in the fourth quarter in this sector alone.