Halliburton gets KOC work

07 July 2006
The US' Halliburton has won a landmark contract to provide exploration and development consultancy services to upstream operator Kuwait Oil Company (KOC). The deal is the first of its kind in the state where the contractor will act in partnership with KOC rather than just as a services provider.

The KD 3 million ($10.3 million) master services contract will run for an initial three years, with options to continue on an open-ended basis. Under the terms of the directly-negotiated deal, Halliburton will provide consultancy services ranging from full-field development to specific smaller scale projects. It will second staff to KOC to assist with its manpower requirements if needed.

The contract is significant because it sees for the first time KOC engaging consultancy services on a partnership rather than service basis. KOC has ambitious plans to increase production capacity to 4 million barrels a day (b/d) by 2020 from 2.6 million today. Much of the new capacity increase will come from the production of heavy oil, with which KOC has little experience. Water flood management will also become important due to rising water cuts.

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