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The significant oil exploration project by the Kuwait Oil Company is aimed at enhancing activities in northern Kuwait and will be divided into nine separate packages.
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As Kuwait targets increasing oil production to four million barrels per day by 2035, up from the current 2.9 million barrels per day, it aims to reach 3.2 million barrels by 2025 or 2026.
MEED magazine reported that Kuwait Oil Company (KOC) is set to issue a tender for a significant oil exploration project aimed at enhancing activities in northern Kuwait. Sources within the oil industry indicated the project is valued at KD one billion ($3.3 billion) and will be divided into nine separate packages, as reported by Al Anba newspaper.
A significant aspect of the project will entail KOC purchasing drilling rigs for new exploration activities and oil field development. The rigs KOC intends to procure will have maximum power capacities ranging from 750 to 2,000 horsepower.
The sources anticipate that companies will provide both human resources and equipment as part of their contractual obligations.
The demand for new rigs arises as Kuwait aims to increase its oil production capacity to four million barrels per day by 2035. Currently, the capacity stands at around 2.9 million barrels per day, with a target to reach 3.2 million barrels by 2025 or 2026.
The anticipated exploration and development project is expected to be part of a larger project plan set to be published in the coming months. It will encompass several major initiatives, potentially including exploration, drilling projects, and petrochemical facilities.
Strategic oil projects
In another development, MEED magazine reported that Kuwait Oil Company has issued a tender for three strategic oil projects valued at over $1.4 billion in total, aimed at increasing its production capacity.
The first project, referred to as contract EF 2059, centers around installing a separation gathering center known as SGC-II in Kuwait’s eastern region, designated as EK-II. The project is estimated to be worth KD 207 million ($673 million). A pre-tender meeting for this project is scheduled for July 30, with bids due by September 29, 2024.
The second strategic project, coded EF 2058, focuses on developing wastewater disposal plants (EWDPs).
The two stations, EWDP-I and EWDP-II, are integral parts of the expansion scheme, with the project valued at KD 220 million ($716 million). A pre-tender meeting for the project is scheduled for July 31, and the deadline for submission of bids is set for September 17, 2024.
The following companies have qualified to bid for the first and second projects: Hyundai Engineering & Construction (South Korea), Samsung Engineering (South Korea), Saipem (Italy), Sinopec Luoyang Engineering (China), Sinopec Engineering (China), Tecnicas Reunidas (Spain), Larsen & Toubro (India), Daewoo Engineering & Construction (South Korea), Petrofac International (UK), and GS Engineering & Construction (South Korea).
The third project tendered involves the development of off-site works to facilitate the gathering of gas from Kuwait’s Jurassic gas fields, including the construction of a 16-inch feeder main from the Umm Naqa area.
MEED noted that the budget allocated by Kuwait Oil Company for this project has not been specified yet. A pre-tender meeting for this project is scheduled for July 30, with bids due by September 29, 2024.
