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State-owned upstream operator Kuwait Oil Company (KOC) has awarded a contract for its planned project to develop a gas sweetening and recovery facility in West Kuwait to Indian contractor Megha Engineering & Infrastructure (MEIL).

Hyderabad-based MEIL submitted the lowest bid for the tender, at KD69.2m ($225.5m), in February this year.

The full list of prices that were submitted was:

• L1 – MEIL (India): KD69.2m
• L2 – Al-Khorayef (Saudi Arabia): KD74.5m
• L3 – Mechanical Engineering & Contracting Company (Kuwait): KD94.8m
• L4 – China Oil HBP Science & Technology Corporation (China): KD97.9m
• L5 – Spetco (Kuwait): KD99.5m
• L6 – Jereh Oil & Gas Corporation (China): KD102.8m

The project uses the build-operate-transfer contract model and has been split into two parts. KOC has informed contractors that the two stages will be performed independently.

The project execution stage will cover:

• Licensing
• Design
• Engineering
• Health, safety and environment services
• Project management
• Supply
• Shipment
• Procurement
• Construction
• Testing
• Mechanical completion
• Pre-commissioning
• Commissioning
• Stabilisation
• Performance testing of the facility

The operation and maintenance stage will cover:

• Operation and maintenance of the facility
• Performance of all associated safety, quality control and environmental protection services
• All other inherent and related obligations

In November 2024, KOC's parent entity, Kuwait Petroleum Corpration (KPC), confirmed that it plans to spend $410bn on its long-term energy strategy.

Bader Ebrahim Al-Attar, KPC’s managing director of planning and finance, said the company plans to spend the money until 2050.

The strategy involves raising KPC’s overall oil production capacity to 4 million barrels a day by 2035.