State upstream operator has awarded nine drilling contracts in 2010
Local Kuwait Drilling Company has won a KD26.9 ($95m) contract to supply a deep drilling rig to state upstream operator, Kuwait Oil Company (KOC).
Kuwait Oil Company has now awarded a total of nine contracts so far this year worth almost $700m
Signed on 24 November, the deal is the fifth deep drilling contract of the month from KOC, following four agreements on 4 November with United Precision Drilling Company (UPDC), another local firm worth a total of more than $400m (MEED 26:11:10).
Under the terms of contracts, Kuwait Drilling Company will supply and operate a rig for onshore drilling operations over a period of five years.
KOC has now awarded a total of nine contracts so far this year worth almost $700m for deep drilling and workover rigs, which are used to maintain oil reservoir pressure. While most contracts have gone to local firms, the largest deal at $245m went to China’s Sinopec in February.
Kuwait plans to raise oil production to 4 million barrels a day (b/d) by 2020, from about 2.5 million b/d currently. The bulk of the increase will come from KOC at 3.65 million b/d, including 250,000-270,000 b/d of heavy crude oil from its northern fields. The remainder will come from Kuwait Gulf Oil Company’s operations in the divided zone with Saudi Arabia.