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Kuwait invites bids for major Jurassic natural gas facilities deal: sources

After years of delays, Kuwait has finally invited bids for the long-planned development of non-associated gas fields in the north of the country, as it aims to meet growing domestic gas demand and provide feedstock for new petrochemicals projects, sources in Kuwait said Tuesday.

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Engineering, procurement and construction companies have until the end of February to submit their proposals, the sources said.

Kuwait has struggled to develop its high-pressure, sulfur-rich sour gas resources in the north of the country, known as the Jurassic gas project, which was launched in 2010, with non-associated gas production remaining static at just 180 MMcf/d.

However, Kuwait Oil Co. is already working to raise this to 510 MMcf/d, along with 200,000 b/d of light oil, by the end of the year.



This will come with the completion of three early production facilities at the Jurassic gas fields, with each capable of producing 100 MMcf/d of gas and 40,000 b/d of light oil.

The first will be launched in September this year, followed by another in October and December, oil minister Essam al-Marzouq said in July.

The latest project, known as the Jurassic gas facility, or JGF-1, will be on a much larger scale, producing 590 MMcf/d of sour gas and 220,000 b/d of light oil from 69 production wells.

The tender follows two contracts signed last February worth more than $1 billion with oilfield services giant Schlumberger and a Kuwaiti company for the development of oil and gas facilities at the East Raudhatain field, as part of the second phase of the Jurassic gas project.

The local Safwan Petroleum Technologies Co. was awarded the West Raudhatain field development.

--Adal Mirza, adal.mirza@spglobal.com
--Edited by Irene Tang, irene.tang@spglobal.com