Canadian firm wins Divided Zone service deal

17 July 2018
Company’s local subsidiary to provide engineering services to Al-Khafji Joint Operations

SNC-Lavalin Engineers and Constructors, a subsidiary of Canada’s SNC-Lavalin, has signed a new five-year framework agreement to provide International General Engineering Services to oil assets in the Divided Zone between Saudi Arabia and Kuwait.

The contract was awarded by Al-Khafji Joint Operations (KJO), a joint operations company of Aramco Gulf Operations Company and Kuwait Gulf Oil Company.

In February, SNC-Lavalin signed a five-year framework contract for In-Kingdom General Engineering Studies.

The scope of the new framework agreement is to provide engineering services to assist KJO with its projects, including new offshore platforms, jackets and sub-sea pipelines as well as upgrades to existing offshore platforms and jackets, onshore crude and gas handling facilities, gas pipeline networks, utilities, waste water treatment facilities, and instrumentation systems.

SNC-Lavalin’s team are based in Houston, Texas and Al-Khobar will carry out the work, supported by SNC-Lavalin’s global centres of excellence in London, Calgary and Mumbai.

KJO is responsible for oil and gas exploration, development and production in the offshore area close to the Saudi-Kuwait border, including the Khafji and Hout oil fields which have been in production since the 1960s.

Oil production in the Divided Zone could restart before the end of the year, as Kuwaiti Oil Minister Bakheet al-Rashidi is expected to meet his Saudi counterpart, Khalid al-Falih, in November to discuss the matter.

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