Kuwait Oil Company awards deal to Sinopec

07 April 2009
State-owned Kuwait Oil Company (KOC) has awarded a KD117m ($402m) contract to Chinese oil firm China Petroleum and Chemical Corporation (Sinopec) for the construction of five oil and gas rigs, although it is not clear how the deal was done.

The contract, which will last for five years, is part of Kuwait's plans to increase its oil production to four million barrels a day by 2020, according to a statement released by KOC on 6 April.

KOC was not available for comment when contacted by MEED on the nature of the contract or the way in which it awarded the work.

Kuwait's hydrocarbons have become increasingly politicised in recent years.

Political wrangling led to the cancellation of a $17.4bn petrochemicals joint venture in December 2008 (MEED 29:12:09) and construction contracts on an estimated $15bn refinery in March (MEED 20:3:09).

Kuwait's ruler Sheikh Sabah al-Ahmed al-Jaber al-Sabah dissolved the National Assembly on 18 March following the resignation of the governing cabinet two days earlier (MEED 18:3:09).

International oil company executives and contractors working in the country have told MEED they do not expect to see any new contracts awarded before Kuwait holds new parliamentary elections in May.

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