Page 11 - MEOG Week 28 2021

MEOG TENDERS MEOG

KOC awards pipe supply deals

KUWAIT STATE-OWNED Kuwait Oil Co. (KOC) was flow lines for oil producing wells, a closure sys-
this week reported to have awarded several tem for flow lines, reinforced plastic pipelines for
contracts to local companies to import oil pipes water, hot water cocks, wellhead connections,
under its largest pipe importing deal. extending existing heads and manifolds and
Quoting KOC sources, the local Arabic lan- carbon steel pipelines, as well as welding work.
guage Al-Anba daily said that following approval The original deadline had been March 8, fol-
from the Central Agency for Public Tenders, lowing the call for tenders in February.
KOC had awarded four contracts worth a total The source said that pre-qualified bidders
of KWD340mn ($1.12bn). included seven local firms as well as companies
Dan Trading and Contracting Co. won the from China, India, Indonesia, Italy, Lebanon and
first package, which was worth KWD11.83mn Qatar.
($39mn), making it the smallest of those Umm Niqa is one of two fields being devel-
awarded. oped under the Lower Fars Heavy Oil Project,
Larger packages were awarded to Ahmed alongside South Ratqa. The broader Ratqa asset
Fahad Al-Fahad General Trading and Con- was discovered in the late 1970s, but efforts to
tracting and Burgan One Commercial Estab- develop the field were largely stifled until the
lishment worth KWD58.9mn ($194.4mn) and UK’s Petrofac was finally awarded a $4.2bn engi-
KWD59.6mn ($195.9mn) respectively. neering, procurement & construction (EPC)
The largest, a KWD209.3mn ($690.7mn) contract to execute the first phase in early 2015.
package, was awarded to Khuff General Trading This called for production of 60,000 bpd by 2020.
and Contracting. Output from the two fields under the project
Al-Anba quoted the sources as saying that reached a first phase plateau of 75,000 bpd fol-
KOC had already identified pipe suppliers from lowing the start of operations in February last
Saudi Arabia, Japan, India, the US, Germany, year.
France, South Korea, Singapore, Mexico, Indo- However, in September, KOC was reported to
nesia, Argentina and Romania. have cancelled a project to drill 11 wells as part
The awards come as Kuwait seeks to expand of the country’s efforts to expand the production
its oil production capacity despite having missed of heavy oil. Citing senior company sources, the
the target of 4mn barrels per day (bpd) by the local Al-Rai newspaper said that the $400mn
end of 2020. Production currently sits at around contract had already been awarded to an interna-
3.1-3.2mn bpd and there is a strategic goal of tional company, but that it was yet to be signed.
reaching 4.75mn bpd by the end of 2040. According to KOC’s original plan, by 2026/27
In March, the close of bidding was delayed on output from Ratqa would grow to 120,000 bpd,
a contract to install an oil pipeline at an oilfield in rising to 230,000 bpd by 2030/31, with heavy oil
the north of the country. from the nearby Umm Niqa field seen climbing
KOC sources were quoted as saying that the first to 50,000 bpd and then to 80,000 bpd over
$150mn project to transport oil produced from the same period.
the Umm Niqa oilfield had been pushed back, A fourth phase would then see Ratqa’s pro-
but did not specify when bidding would now duction lifted to 325,000 bpd, while the final
close. phase envisages output from the two fields total-
The scope of work includes the installation of ling 430,000 bpd.™

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