Italy’s Saipem has been awarded two contracts worth more than $1.2bn in Kuwait and Syria, the company said in a 17 December press release.

The first deal will see the Italian engineering and construction firm build and commission early production facilities in the north of Kuwait for the local Kharafi National as part of the second phase of the state’s plan to increase gas production.

The project includes oil and gas treatment facilities capable of handling 150,000 barrels a day (b/d) of wet sour crude, gathering systems, pipelines and a sulphur granulation plant. Saipem expects to complete work in the second quarter of 2013. The temporary facilities are used to test the viability of production, generally over five years. If the site proves viable, state upstream operator Kuwait Oil Company (KOC) will build permanent facilities.

The scheme also aims to produce up to 510 million cubic feet a day (cf/d) of associated gas. Kharafi National won the contract after submitting the lowest bid of KD439m ($1.55bn) in November 2009 (MEED 22:10:10).

Saipem has also been awarded a contract to build a central processing facility at the Block 26 of the Khurbet East oil field in Syria. The client, local Dijla Petroleum Company plans to build a 50,000 b/d facility by mid-2012.

Saipem did not disclose the value of the individual contracts.