Project is estimated to be worth $120m
The Kuwait Oil Company (KOC) $120m project to build a petroleum research centre is stalling according to two sources close to the project.
Firms submitted designs for an architecture competition for the International Petroleum Research Centre (KIPRC) 15 September 2015 and since then no award has been announced.
Due to budget pressures we are expecting projects like the Kuwait International Petroleum Research Centre building to stall while KPC focuses on projects that are key to the countrys economic strategy, said one source.
Gulf states are under increasing pressure to make savings as persistently low global oil prices erode government revenues.
Kuwait Petroleum Corporation has not responded to requests by MEED for information about the status of the KIPRC project.
The creation of KIPRC is part of state-owned upstream operator Kuwait Oil Companys (KOC) 2030 strategy.
KIPRCs goals include the acquiring existing technologies and developing new technology focusing on areas that include:
- Production and refining of heavy oil
- Producing non-associated gas
- Enhanced oil recovery
- improving the countrys refining capacities
- Supporting Kuwaits petrochemical operations