Page 13 - MEOG Week 46

MEOG TENDERS MEOG

KOC continues rig acquisitions

KUWAIT LOCAL media in Kuwait this week revealed that Ratqa and Umm Niqa – reached a first phase
the state upstream firm Kuwait Oil Co. (KOC) plateau of 75,000 bpd.
is preparing to sign deals to acquire 31 drilling However, in September, KOC was reported to
towers as it continues its efforts to ramp up pro- have cancelled a project to drill 11 wells as part
duction capacity. of the country’s efforts to expand the production
Speaking to the Arabic language daily of heavy oil.
Al-Anba, company sources said that $759mn Citing senior company sources, the local
worth of deals would be signed to rent the units Al-Rai newspaper said that the $400mn contract
for five years. No details have yet been provided had already been awarded to an international
by KOC, but the deals follow a tender launched company, but that it was yet to be signed.
by the company in August. At that point, a ten- The move comes as parent firm Kuwait
der was issued for the acquisition of 24 HP750, Petroleum Corp. (KPC), like its counterparts
HP550 and HP1000 drilling rigs, having been throughout the region, has reassessed its capital
delayed from Q3 2019. programme, and reduced capital spending in its
The company intends to “drill around 400 2020-2025 five-year plan.
new crude oil wells” once the new towers are The sources said that KPC had cited the
delivered, according to the source. The new units impact of the COVID-19 pandemic and weak
will take the total in the country to 150, com- oil prices as the reasons for the cancellation. One
prised of 80 for drilling and 70 for well repair. source said: “There are some projects that were
Al-Anba said that local firms Burgan Wells listed for implementation or design that can be
Drilling and Kuwaiti Drilling Co. were likely to stopped, postponed or re-offered and get lower
be involved as well as international companies prices in light of global conditions.”
Sinopec, Jerry, Aleph, Sino Tharwa Drilling and Kuwait has been attempting to maintain
Schlumberger. highly ambitious capacity targets of 4mn barrels
Following the start of operations in Febru- per day by the end of this year and 4.75mn bpd by
ary, KOC began shipping cargoes of crude from the end of 2040, up from the current 3.1-3.2mn
the Lower Fars Heavy Oil Project in Q3. Output bpd. In late 2019, the 2020 target was reported to
from the two fields under the project – South have been pushed back to 2040.™

Week 46 18•November•2020 www. NEWSBASE .com P13