The UK’s Penspen has been awarded the five-year contract to provide project management services (PMS) to Al-Khafji Joint Operations (KJO), the Divided Zone offshore operator.

The scope of works includes all aspects of managing the design, procurement and construction of KJO’s oil and gas projects over the next five years. Penspen’s contract ceiling value is about $80 million.

Penspen’s core project management team will be based in Al-Khafji, with a number of satellite teams based in contractors offices around the world. It will work in association with its parent company, Beirut-based Dar al-Handasah (Shair & Partners).

Penspen fought off competition from about five other bidders for the contract. KJO, a 50:50 joint venture between Kuwait Gulf Oil Company (KGOC) and Saudi Arabia’s Aramco Gulf Operations (AGOC), is pressing ahead with a $1,800 million five-year investment programme for the Divided Zone with the aim of increasing crude output by 100,000 barrels a day (b/d) to 700,000 b/d. The zone is estimated to contain 5,000 million barrels of oil reserves and 1 trillion cubic feet of gas (MEED 20:5:06).