Kuwait Oil Company clinches 63 rig contracts worth $670 million

• Kuwait Oil Company readies technical specifications for a tender to equip drilling sites, valued at over 100 million dinars.

• Kuwait Oil Company prepares alternative tenders for drilling towers and addresses the challenge of free gas production to join gas-producing nations.

• Kuwait Oil Company is in the final stages of awarding ten contracts for ten drilling rigs, which will have a significant impact on building a strong and capable local industry.

Top-level oil sources disclosed that the Kuwait Oil Company successfully awarded 63 contracts for drilling and repairing well rigs, totaling over $670 million.
This amount is less than the estimated value of $2.4 billion allocated for four tenders. The achievement was made possible by creating and modifying essential tools required for capital and operational budgets.

This achievement comes in light of the openness of the global market, the rise in current production prices, global inflation, and the increase in platform prices worldwide.

Sources informed Al-Rai newspaper that Kuwait Oil Company qualified over 15 contractors last year, including local, Gulf, and international entities. They implemented a new approach by transitioning from practice-based selection to a tender-based system for the second time. This change led to additional budget savings exceeding $2 billion.

The sources explained to Al-Rai newspaper that Kuwait Oil Company qualified over 15 contractors (local, Gulf, and international) last year. They adopted a different method from the one previously used, changing the tender system from practice to tender for the second time. This change resulted in additional budget savings totaling more than $2 billion.

Sources highlighted that the initial challenge involved monitoring and enhancing the performance of internal rehabilitation devices. All relevant teams collaborated with qualification applicants promptly, and the company utilized rehabilitation technology via smart visual devices. This approach optimized human resources and involved reviewing equipment specifications, standards, and quantities.

The strategy avoided narrow standards, limiting suppliers’ exploitation by service companies. This resulted in expedited shipping and tower operations. The awarding strategy encouraged overall competitiveness among companies to secure the largest number of towers, ensuring a continued presence in the oil and gas market, amidst a moral return in the global market.

Kuwait Oil Company prioritizing local contractors

The newspaper learned that the awarding procedures for the four contracts are in the final stages, and the Kuwait Oil Company has not neglected to activate the strategy for qualifying local contractors. It is in the final stages of awarding ten contracts for ten drilling rigs, which will have a significant impact on building a strong and capable local industry.

Keeping pace with challenges leads to the creation of promising job opportunities in the local market. These endeavors to implement strategic objectives align with the accelerating pace to raise the production capacity of oil and gas in the country.

New opportunities

The sources confirmed Kuwait Oil Company’s readiness to issue alternative tenders for several drilling towers and well repairs in the upcoming period. Additionally, the company’s primary challenge pertains to the production of free gas from deep wells, currently in the final study stage before approving the tender.

This move will elevate Kuwait to the ranks of gas-producing countries, aligning with Petroleum Corporation’s vision to become an approved supplier. These efforts are part of the company’s commitment to meeting customer demand and fostering partnership and continuity.

Sources added that the Kuwait Oil Company is currently preparing the necessary technical specifications in preparation for issuing a tender to equip and rehabilitate drilling sites, with an estimated value exceeding 100 million dinars. The award will go to approved local contractors, confirming the company’s keenness and commitment to creating new job opportunities in the local market and supporting industries in the country.

The fruits of success

This exceptional success of Kuwait Oil Company comes in light of the huge bets placed on executive management. These are represented in optimal asset exploitation, performance improvement, competitiveness creation, departure from traditional methods and technical specifications stereotyping, openness to the global market, and the development of a flexible contractual strategy. These efforts aim to achieve Kuwait’s goals, which will reap the benefits in the near future.

It is also noteworthy that the massive organizational restructuring at Kuwait Oil Company resulted in the merging and creation of several departments and the transfer of numerous powers. This strategic move aimed to enhance the company’s operations across all sectors, optimize human expertise, and introduce new talent, leading to significant results. It greatly contributed to this distinguished achievement and the creation of an effective and flexible work environment that effectively supported the company’s strategy.