Local firm wins North Kuwait pipelines deal

20 September 2010

Revamp of oil transfer infrastructure needed to match oil production increases

The local Mechanical Engineering & Contracting Company (MECC) has been awarded a KD38.84m ($135m) contract to install to build high pressure crude oil pipelines for Kuwait Oil Company (KOC) in the north of the country.

The contract was signed by MECC, a subsidiary of the local Ali Alghanim and Sons on 6 September. MECC submitted the lowest price in a 1 June bid round, beating rival proposals of KD44m from the Combined Group Contracting (CGC) and KD49.5m from Heavy Engineering Industries & Shipbuilding Company (HEISCO), both local (MEED 10:6:10).

The company will now build a series of six-inch carbon-steel crude oil pipelines in northern Kuwait, running from KOC’s oil field wellheads to their associated manifolds and gathering centres.

State-run energy firm, KOC needs to revamp its oil distribution network to cope with plans to increase total production capacity by 1 million barrels a day (b/d) to 4 million b/d by 2020. KOC has number of pipeline deals so far this year with a combined value of almost $400m.

Kuwait’s northern oil fields hold an estimated 13 billion barrels of heavy crude oil reserves. Heavy oil will play a significant part in the effort, contributing around 250,000 b/d.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.