Kuwait expands 3.8 billion upstream oil projects

Mondo Finance Updated on 2024-01-29

State-owned upstream operator Kuwait Oil Company (KOC) plans to expand its projects to upgrade oil and gas facilities in northern Kuwait, according to industry sources.

In September, the Kuwait Oil Company set a plan for the project$800 million budget, but that number is likely to increase now as the scope of the project expands. The project will install a compression system and a sulfur** unit (SRU) at Early Production Facility 50 (EPF-50) and Jurassic Production Facility 3 (JPF-3).

Tender documents were provided on 17 September and the current deadline for submission of tenders is 17 December, but this date is expected to be postponed due to the expansion of the scope of the project. The expansion of the scope will include the addition of more compression systems to the project, the sources said.

Kuwait Oil Company is currently awaiting approval of the proposed amendments by the Kuwait** Tendering Authority (CAPT). "Kuwait Oil will revise the contract after obtaining CAPT approval and then extend the submission date," a source said. ”

According to the tender documents, the project contract will be on a build-own-operate model. EPF-50 and JPF-3 are sour hydrocarbon processing and processing facilities located in northern Kuwait designed to process high-pressure sour hydrocarbons from several Jurassic wells in northern Kuwait's oil fields.

"In order to maintain production at the facilities in the projected reservoir depletion from the high-pressure to medium-pressure (MP) mode until 2024, the company intends to install MP compression systems and SRUs at the EPF-50 and JPF-3 facilities through this contract," Kuwait Oil Company said in a statement. ”

According to the initial tender documents, the scope of work of the contract was divided into two parts. The first part focused on the installation of the new MP compression system and the SRU on the EPF-50. The second part focused on the installation of the new MP compression system and the SRU in the JPF-3.

The EPF-50 and JPF-3 facilities receive acid wet hydrocarbon reservoir fluids through the flowline gathering network and trunk lines. Natural gas and water are separated in a separate section that currently receives 1,100 pounds per square inch (psig) of well-produced fluid, and is stably output after desalination.

The separation section consists of high-pressure, medium- and low-pressure (LP) separators in series, where the medium- and low-pressure gases are compressed to high pressure and mixed with the gas from the high-pressure separator. After that, the natural gas is processed in a natural gas desulfurization and dehydration unit and then exported through pipelines.

As the fluid pressure in the well drops to medium pressure, the mixed feed from the inlet production header and test header will pass through a ** preheater into the new medium pressure separator, which operates at approximately 425-450 psig. The new compressor will compress the gas from medium pressure to high pressure. The EPF-50 facility currently has the capacity to process 200 million standard cubic feet of natural gas (MMSCFD barrels of oil (MBOPD) and 130 tons of sulfur per day.

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