Kuwait to tender new oil gathering centres

21 March 2013

Three new production facilities planned for north of Kuwait

State upstream operator, Kuwait Oil Company (KOC) is expected to launch three major tenders in the coming months for new crude oil gathering centres, deals which could be worth up to $1bn each.

The planned centres in the north of the country are numbered 29, 30 and 31. The projects’ designs were completed in late 2011 and tenders had been expected in early 2012. However, according to KOC’s website, the deals should be launched in February or March.

Kuwait’s oil fields are connected to 26 gathering centres, which serve as a collection location for crude oil produced at several wells connected by flowlines, providing initial treatment through the separation of associated gas and removing salt. They also provide an intermediate storage facility before the crude is pumped.

The latest gathering centre was completed by South Korea’s SK Engineering & Construction in April 2010 under a $623m contract signed in March 2007.

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