Kuwait Oil Company (KOC) has decided to extend the bidding deadlines for two crucial oil projects, valued at $1.3 billion. These projects are essential to Kuwait’s long-term energy strategy, especially its ambitious goal of increasing oil production. The decision to delay the bid submission will give companies more time to prepare their proposals.
The first project, valued at KWD 292 million ($951 million), involves developing a separation facility in the North and South Kuwait Sea regions. Specifically, the facility will be located near Gathering Centers 23 (GC-23) and 24 (GC-24). In addition to this, the contract includes constructing a new injection facility at Gathering Center 31. The project will also develop wastewater injection networks in northern Kuwait. This large-scale initiative will enhance the country’s oil separation and injection infrastructure.
The second project, worth KWD 104 million ($338 million), focuses on building separation facilities at Gathering Center 25. It also involves the construction of a water injection facility at Gathering Center 30. These developments will follow a build-own-operate model, ensuring that the facilities are well-maintained and functional in the long term.
Originally, the deadline for bid submissions was set for March 16. However, sources indicate that KOC plans to extend the deadline to ensure a thorough and competitive bidding process. This extension aims to give potential contractors ample time to submit their most competitive proposals. It also allows more companies to participate, which could lead to better deals for the Kuwaiti government.
Kuwait continues to push forward with its upstream oil projects. These projects are part of the country’s broader effort to meet its production target of 4 million barrels per day by 2035. Currently, Kuwait’s production capacity stands at around 2.9 million barrels per day. However, the country is on track to reach 3.2 million barrels per day by 2025 or 2026.
This strategic focus on enhancing oil infrastructure through projects like these reflects Kuwait’s commitment to meeting its energy needs and boosting its position in the global oil market. With significant investments in oil separation, injection, and wastewater networks, Kuwait is positioning itself for sustained growth in oil production.
The oil projects are crucial for Kuwait’s energy sector. They represent steps toward achieving higher production capacity and securing the country’s position in the global energy market. By extending the bidding deadlines, Kuwait ensures that these projects are carried out with the best possible expertise and technology.
