Kuwait Oil Company submits contracts to tender board

22 March 2023
Projects are estimated to be worth a total of $1.35bn

The tender packages for two oil and gas projects have been submitted to Kuwait’s Central Agency for Public Tenders (Capt), according to industry sources.

The projects, which have an estimated combined value of $1.35bn, are expected to be among the few significant oil and gas projects awarded in the country over the coming 12-month period.

The tender packages have been submitted to Capt from the state-owned project client Kuwait Oil Company (KOC), according to industry sources.

“Everything has been completed by KOC’s contracting department,” said one source. “Discussions are ongoing between KOC and Capt about the details of the tender packages, and once these are resolved, the invitation to bid should be issued.”

In 2021, MEED reported that the front-end engineering and design (feed) for the projects had been completed. Last year, MEED reported that the budgets for the two projects had been approved.

Previously it was hoped that the two contracts would be tendered before the end of 2022, but the tendering process has seen significant delays.

Many projects in Kuwait have been delayed due to the country’s ongoing political issues. The country is waiting for a new government to be announced, headed by Prime Minister Sheikh Ahmed Nawaf al-Ahmad al-Sabah.

One of the projects, known as EF/2058, is worth an estimated $650m. The project is focused on expanding two effluent water disposal plants for the oil and gas sector.

The two facilities that will be expanded are called EWDP-1 and EWDP-2. EWDP-1 is about 20 kilometres south of Kuwait City, and EWDP-2 is approximately 40km south of the capital.

The second project has the reference number EF/2059 and is worth an estimated $700m. It is focused on debottlenecking four gathering centres (GCs) in eastern Kuwait.

The GCs that will be upgraded as part of the project are GC 1, GC 2, GC 11 and GC 19.

Vital oil industry structures

Kuwait’s oil fields are connected to an extensive network of gathering centres, which serve as a collection zone for crude oil produced at several wells connected by flowlines.

Kuwait’s gathering centres provide initial treatment by separating associated gas and removing salt.

Effluent water disposal facilities are also parts of the country’s oil and gas infrastructure.

The disposal of water produced with oil has been a concern for KOC for at least two decades.

The Burgan oil field, the second-largest in the world, has experienced a sustained water content increase in the oil it produces. Much of the effluent water is disposed of using designated injection wells.

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