Page 11 - MEOG Week 26 2022

MEOG TENDERS MEOG

KOC to award technical work as

bids submitted for major projects

KUWAIT STATE-OWNED Kuwait Oil Co. (KOC) is set to Of this, around $424mn worth of projects have
hand out a technical consultancy contract while advanced to the design phase, $492mn are in
preparing to award a raft of major deals. prequalification, $1.64bn are in planning and
Local Arabic-language newspaper Al-Anba initial design, while the $8.32bn bulk remain in
reported that PetroTel had won a $30mn deal the study phase.
covering “technical consultancy in oil and gas” Last week, KOC and its parent, Kuwait Petro-
for KOC. The report said that PetroTel was leum Corp. (KPC) said that the first ever drilling
among five bidders – Oman-based Target Oil- campaign in the country’s offshore would soon
field Services, France’s Beicip-Franlab, Halli- begin as they work to increase oil production
burton and Robertson Energy, both of the US capacity, and setting ambitious targets. Recent
– quoting KOC sources. comments by KPC CEO Sheikh Nawaf Saud
The winning bid was reported to be the low- al-Sabah suggest that current capacity is run-
est received by KOC, with the other offers rang- ning at 3.5mn barrels per day, though given that
ing from $30.7-32.7mn. it was just 2.7mn bpd last year, and few projects
Meanwhile, MEED quoted sources as say- have been completed so far in 2022, this appears
ing that another US firm, KBR, has submitted unlikely.
the lowest bid for a contract covering project The Ministry of Oil is known to have been
management consultancy (PMC) and front-end working toward this level by 2025, and 4mn bpd
engineering and design (FEED) work for sizea- by 2035, but the timeline for these increases may
ble infrastructure associated with KOC projects. be moving amid commodity price highs.
It said that KBR’s bid was KWD69.6mn KOC is seen achieving the expansion through
($227mn), with Worley bidding KWD77.9mn work on gathering centres, the expansion of
($254mn), TechnipFMC KWD78.9mn water handling and water injection facilities, as
($257.3mn) and Wood Group KWD81.2mn well as upgrades to existing Jurassic production
($264.8mn). Fluor was reported to have been facilities and the addition of new production
excluded from the bidding process owing to units and wells. Total oil production from the
issues with its guarantee. Partitioned Neutral Zone (PNZ) shared with
The bidding comes as Kuwait has allo- Saudi Arabia is also seen rising to 700,000 bpd
cated around $11.5bn for oil and gas projects by 2025, from around 250,000 bpd in late 2021,
under a wider effort to ramp up production. 50% of which will be attributed to KOC.™

Source: Wood
Mackenzie

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