Local group awarded $395m deal on Kuwait gas development

25 August 2016

Kuwait adding non-associated gas capacity at northern oil fields

The local Spetco International Petroleum Company has won a KD113.8m ($394.5m) contract on the second phase of Kuwait’s Jurassic gas production programme.

The contract was awarded by state-owned Kuwait Oil Company (KOC) for the Jurassic Production Facility (JPF) at West Raudhatain in northern Kuwait.

KOC re-issued the tenders for the project’s West Raudhatain and East Raudhatain packages on 10 January in an attempt to secure lower bids.

During the original tendering process only three contractors – Spetco, Schlumberger and Saudi Arabia’s Alkhorayef Group – bid for the scheme’s three packages out of the 19 companies that had prequalified.

Spetco was awarded West Raudhatain in July, according to the KOC website.

Schlumberger is thought to have been selected for East Raudhatain in a similar-sized deal. Schlumberger was selected in January for the project’s third package to develop the Umm Niqa and Sabriya fields in a deal worth KD143m ($477.6m).

The three contracts that form the second phase of Kuwait’s non-associated gas production programme involve the production of about 120,000 barrels a day (b/d) of wet crude and more than 300 million cubic feet a day (cf/d) of sour gas from the Raudhatain, Sabriya, Northeast Raudhatain, Umm Niqa and Dhabi fields in north Kuwait.

Each deal involves the build and five-year operation and maintenance of gasoil separation and treatment systems, export pipelines, effluent water treatment facilities, and vapour gas recovery compression systems.

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