Kuwait awarded $28.5bn worth contracts from ’17-’22

KUWAIT CITY, Nov 13: According to a report by the MEED magazine, the value of contracts awarded by Kuwait during the period between 2017 until 2022 amounted to about $ 28.5 billion, reports AlAnba daily.

It reached a record $ 9.7 billion in 2017 and then declined in 2018 by 39.8 percent to $ 5.8 billion. The decline continued in 2019 to reach $ 2.8 billion. In 2020, it amounted to about $ 4.3 billion, but it recovered slightly during 2021 when it reached 4.9 billion. However, it fell to $ 1.04 billion until this time in 2022 at a rate of no more than 10.7 percent from the rate in 2017.

Meanwhile, MEED magazine reported earlier this month that Kuwait’s Heavy Engineering Industries and Shipbuilding Company (HESCO) submitted a bid worth KD 68.5 million ($ 223.4 million) for a pipeline project west of Kuwait.

Since the beginning of 2020, the Kuwait Oil Company has issued tenders for a large number of pipeline projects. Many of these projects were worth less than $ 100 million, and only a few were close to $ 250 million.

Very few major project contracts were awarded in Kuwait’s oil and gas sector in 2022 amid the ongoing political deadlock and issues related to the COVID-19 pandemic.

On the other hand, the magazine stated that the letter of guarantee for a tender for the installation of flow lines and associated works in south and east of Kuwait has been extended, as the country continues to witness widespread delays in oil and gas sector projects.

Commercial bids for the project, which is affiliated with the Kuwait Oil Company, have already been submitted and are currently under evaluation, according to information obtained by MEED magazine earlier.

The scope of work on the project includes the implementation of the following works:

1. Construction of gas flow lines

2. Installation of hot line extensions

3. Installation of valves

4. Installation of surface safety valves, control system and panels

5. Installing booster pumps

6. Civil works

7. Pipe works

8. Manufacturing business

9. Construction of accompanying facilities. The magazine said, “In the oil and gas industry, flowlines are pipelines that connect a single wellhead to a manifold or process equipment. In petroleum installations and large oil and gas fields, multiple flowlines may connect individual wells to a manifold. Flowlines are used in onshore and offshore fields and may be extended over land, or buried underground”.