Kuwait is planning to tender a pipeline contract associated with Jurassic production facilities (JPF) contracts that were recently awarded to Kuwait-based Spetco and China’s Jereh, according to industry sources.
The project is estimated to be worth about $100m and is expected to be tendered in 2022 due to delays related to the reshuffle of state-owned Kuwait Petroleum Corporation (KPC).
Spetco and Jereh were awarded the main contracts to build the Kuwait Oil Company (KOC) projects known as JPF-4 and JPF-5 in November.
Spetco submitted a low bid of $398.2m for JPF-4 and Jereh submitted a low bid of $426m for JPF-5 with its local partner Napco.
Many projects in Kuwait’s oil and gas sector are currently experiencing disruption due to plans to reshuffle the board of KPC, the country’s national oil company (NOC).
The restructuring of the board of Kuwait’s national oil company is expected to be completed before the end of the year.
The plans to restructure the board of KPC came after Kuwait’s Government submitted its resignation to Emir Sheikh Nawaf al-Ahmad al-Jaber al-Sabah on 8 November.
Kuwait has struggled to maintain oil and gas sector activity in 2020 and 2021 amid logistical problems related to the Covid-19 pandemic and intense domestic political divisions.
The facility known as JPF-4 is due to be located close to the Sabriyah field in the north of Kuwait. JPF-5 will be less than 10 kilometres to the east of JPF-4.
Both facilities will conduct the testing, processing, treating and handling of wet and sour hydrocarbon well fluids from several oil and gas fields.
These include Raudhatain, Sabriyah, Northwest Raudhatain, Umm-Niqa, Dhabi, Bahra and the fields of Marrat and Najmah-Sarjelu and other formations in the Jurassic fields.
Both projects are onshore surface production facilities and will be implemented on a build-own-operate (BOO) basis by a contractor, with an option for KOC to buy them back at a future date.
The facilities are due to be built with the capacity to produce 50,000 barrels a day (bpd) of treated sweet crude (Jurassic light oil with 40°- 50° American Petroleum Institute (API) gravity) and 150 million standard cubic feet a day of sweet and dehydrated rich gas.
They will include a produced-water treatment unit, a sulphur recovery unit and associated utilities and supporting systems.
The execution stage of services for each facility is expected to total 780 calendar days.
This includes 720 days for design and engineering, project management, supply and procurement, construction, testing and mechanical completion of each facility.
Under the terms of the contracts, commissioning, stabilisation and successful performance testing of the facility should be completed within 60 calendar days of the mechanical completion of the facility.
The winners of the contracts will then operate and maintain the facilities for five years.
This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.