KUWAIT CITY - State-owned Kuwait Oil Co. (KOC) Monday signed a 680-million-dollar contract with British-based international oil services firm Petrofac for modernizing several oil facilities, a KOC spokesman said.
The 25-month contract provides for the replacement above ground of hundreds of kilometers (miles) of underground pipelines, and the installation of modern equipment for separating water, condensates and other impurities from the crude, Ali al-Shimmari told AFP.
The deal is part of a major push by Kuwait to upgrade its oil production and export facilities as it seeks to raise its output capacity from 2.6 million barrels per day (bpd) to four million bpd by 2020.
It also includes modernizing seven oil gathering centers and two gas booster stations.
Last month, Petrofac signed a 125-million-dollar contract with KOC for full maintenance services for oil production facilities in the north and west of Kuwait.
The five-year contract covers maintenance of 16 facilities which include gathering centers, gas booster stations, gas steam and water injection plants and others.
KOC is a subsidiary of the emirate's oil conglomerate Kuwait Petroleum Corp. responsible for oil exploration, drilling and production.
OPEC member Kuwait, which sits on 10 percent of global oil reserves, plans to invest up to 40 billion dollars over the next 15 years to boost its production capacity and build key oil facilities and petrochemical projects.
04/25/2005 14:09 GMT