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Tue 1 Nov 2005 04:00 AM

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Kuwait invests in new pipelines to increase oil export

Kuwait Oil Company is constructing new pipeline to connect oil wells to the gathering centre. This project will form a part of the country's plan to significantly expand production capacity.

State-owned Kuwait Oil Company (KOC) will construct new pipelines with a total length of 3,456 km to connect oil wells with gathering centres.

KOC has signed three contracts for the construction of flow-lines and associated works in north, west, south and east of Kuwait. KOC spokesman, Ali Al Shimmari said the new pipelines will be built in accordance with three contracts the company has inked on field survey, design, planning, supply of materials and construction as well as testing of flow lines, well hookups, tie-ins and construction of headers.

Al Shimmari said the scope of the three contracts included the construction of six-inch pipelines with a total length of 3,456 km connecting oil wells with gathering centers. The construction of the pipelines is expected to finish in four years.

“The new pipelines are essential in enhancing KOC’s crude oil production capacity in line with its 2020 strategy,” Al Shimmari said.

All the three contracts were signed with local contractors, Combined Group Company, Mechanical Engineering, and Contracting Company and Heavy Engineering Industries and Shipbuilding Company, said a company statement.

KOC operates in oil and natural gas exploration, on-shore and off-shore surveys, drilling of test wells and the development of producing fields.

Kuwait continues to plan for significant expansion in its production capacity. the country hopes to reach capacity of 4 million barrels per day (bpd) by 2020, up from around 2.5 million bpd at present. Kuwait itself contains an estimated 99 billion barrels of proven reserves, roughly 8% of world reserves.

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