Kuwait awards upstream work to Safwan and United Gulf

07 February 2008

Kuwait Oil Company has awarded two contracts, worth more than KD28m ($101m) in total, to the local Safwan Petroleum Technologies Company and United Gulf Construction Company (UGCC).

Safwan’s contract, worth KD18.7m ($66.8m), covers the provision of gas compression services at gathering centre 16. The design, build, operate and maintain contract is aimed at reducing gas flaring, increasing the amount of gas available for industrial use and power generation, and maintaining reservoir stability by reinjecting the gas into oil wells.

The gas compression portion covers the provision of services for tank vapour, and low and high pressure compression packages to double the facility’s capacity to more than 60 million cubic feet a day (cf/d).

The gas reinjection element involves the installation and operation of gas reinjection facilities at wells MN-129 and MN-140. Each compression train will have a predicted flow rate of 15 million cf/d (MEED 7:1:08).

UGCC’s deal is worth KD9.8m ($35m). The lump-sum engineering, procurement and construction contract covers the construction of the transfer pipelines and the upgrade of an effluent water transfer system and storage tanks between gathering centres 17, 27 and 28 (MEED 22:1:08).

Both companies were low bidders for the work when bids were submitted last year.

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