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.
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