UK company wins Kuwait manifold project

12 July 2015

Contract worth hundreds of millions of dollars awarded by Kuwait Oil Company

  • Petrofac has was selected over rivals Saipem, SK E&C and Daelim
  • The manifold will connect oil wells to gathering centres 29, 30 and 31
  • Petrofac has already won the contract for gathering centre 29
  • The project is part of Kuwait’s long-term strategy to develop its Northern oil fields

UK-based Petrofac has won the engineering, procurement and construction (EPC) contract for Kuwait’s manifold gathering system project, with a bid of $776m.

On 10 July, Petrofac announced it had been notified of the contract award by state-owned upstream operator Kuwait Oil Company (KOC), after it submitted the lowest price for the scheme in April.

The full bidder list was:

  • Petrofac (UK) / Independent Trading Group (local) – $776m
  • Saipem (Italy) / United Gulf Enterprises General Trading & Contracting Comanoy (local) – $891m 
  • SK E&C (South Korea) / Sayed Hamid Behbehani & Sons (local) – $958m 
  • Daelim (South Korea) / Zahra Group Holding (local) – $980m

The project is integral to KOC’s plans to increase and maintain crude production over the next five years, and will transport liquids from wells in Kuwait’s north to three new gathering centres (GCs), known as GC 29, GC 30 and GC 31.

The three new GCs, which form part of the broader project, are already under construction, with Petrofac executing the EPC contract for GC 29.

The total value of the three GC contracts is $2.3bn.

Kuwait’s oil fields are connected to 26 gathering centres, which serve as a collection location for crude produced at several wells connected by flowlines, providing initial treatment through the separation of associated gas and removing salt.

The three new GCs are needed as part of KOC’s long-term strategy to develop the oil fields of North Kuwait.

Each GC will be designed to handle up to 100,000 barrels a day (b/d) of oil, 240,000 b/d of water and 240 million cubic feet a day (cf/d) of associated gas. KOC expects the main scheme to be competed in December 2018.

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