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Petrofac Wins $1.3B Deal With Kuwait Oil Company

Petrofac

London-listed oil services provider Petrofac said on Tuesday that it had won a contract with Kuwait Oil Company for a $1.3-billion gathering center project in southeast Kuwait.

Kuwait Oil Company (KOC) has awarded the lump-sum engineering, procurement and construction (EPC) project for the GC 32 sour gathering center in the Burgan oil field. The sour gathering center will be the first such center in the field and will process crude oil and associated gas recovered from the Arifjan, Marat, Minagish Oolite and Burgan Wara high Hydrogen Sulphide fields, Petrofac said.

Work on the project is expected to start shortly and complete in the middle of 2020. The engineering, procurement and construction work includes greenfield activities with tie-in works to existing brownfield infrastructure, and will have the capacity to produce around 120,000 barrels of oil per day together with associated water, gas and condensate.

“Kuwait is one of our core markets in the Middle East and we have been executing projects in the country since the early 1980s. We are proud to continue our association with KOC and look forward to working closely with them to deliver the project,” Marwan Chedid, Group Chief Operating Officer at Petrofac, said in the company statement.

Petrofac has been operating in Kuwait since 1982, with current projects in the country exceeding $4 billion. Elsewhere in the Middle East, Petrofac has ongoing projects in Oman, Iraq, and Abu Dhabi.

Related: Pro-Extension Voices In OPEC Become Louder

Kuwait’s latest budget plans to focus capital expenditure on downstream oil and gas activities during FY 2017/18 in a bid to create jobs, offset falling crude export revenue, and capitalize on rising regional demand for refined products.

The government is taking steps to expand private-sector participation in economic development, including through three planned power projects and a US dollar-denominated bond issue – a first for Kuwait.

By Tsvetana Paraskova for Oilprice.com

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