GS approved for Kuwait water injection deal

23 August 2011

Korean firm awaiting letter of award

Kuwait’s Central Tenders Committee (CTC) has approved South Korea’s GS Engineering & Construction for an estimated $545m water injection deal for state-upstream operator, Kuwait Oil Company (KOC).

The South Korean firm submitted the second lowest price in a 5 April bid round at KD151m ($545m), beaten only by Canada’s SNC Lavalin.

Sources close to the project tell MEED that SNC Lavalin’s bid of KD150m ($542m) was rejected by the CTC soon after bids were submitted as the proposal did not meet KOC’s technical requirements (MEED 20:5:11).

The CTC which oversees the tendering and award process for all public contracts in the country. GS is now awaiting a letter of award, which is expected before the end of September.

KOC plans to build effluent water collection, treatment and injection facilities by the middle of 2014. The schemes aims to pump as much as 1 million barrels a day (b/d) of water into the Wara formation to maintain pressure and production levels at the Burgan field in southeast Kuwait.

The facilities will comprise 10 water treatment units, 20 tanks, 60 pumps and up to 700 kilometres of pipelines, with diameters varying from 6-30 inches.

The greater Burgan area contains about 70 billion barrels of oil, making it the second-largest oilfield in the world, accounting for more than half Kuwait’s total reserves of 101.5 billions barrels. Output has fallen to 1.7 million b/d from a peak of 2.4 million b/d in 1972 and without action some analysts believe this could fall to as low as 1.5 million b/d by 2020.

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