Kuwait Oil Company Awards 1.2 Billion Dollar Contract To SK Engineering

kUWAIT City - State-owned Kuwait Oil Co (KOC) Monday signed a 1.2-billion-dollar contract with South Korea's SK Engineering for modernizing several oil facilities, the official KUNA news agency reported.

The 25-month contract covers 10 oil gathering centers and a gas booster station, it said. The agreement will help"upgrade the company's infrastructure modernize its facilities, increase its production capacity and provide a safe working environment for its personnel," KOC board chairman Faruk al-Zenki said after signing the deal. The contract "complements one signed by the company a month ago with (British-based international oil services firm) Petrofac to upgrade its facilities", he added. The value of the deal with Petrofac was put at 680 million dollars. The deals are part of a major push by Kuwait to upgrade its oil production and export facilities as it seeks to raise its output capacity from 2.7 million barrels per day (bpd) to four million bpd by 2020. KOC is a subsidiary of the emirate's oil conglomerate Kuwait Petroleum Corp which is 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. PIN//AFP
News ID 53622

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