Delay in approving budget puts off two KOC projects worth over $1 bn

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KUWAIT CITY, Aug 6: MEED magazine reported that the approval of the budget for two major oil projects, worth about $1.35 billion, affiliated to the Kuwait Oil Company has been postponed, reports Al-Anba daily quoting informed sources in the oil sector, As for the assembly centers that will be developed, they have the following numbers: GC-1, GC-2, GC-11, and GC- 19. It was expected earlier that the project of these assembly centers would be launched in October or November of this year, but due to the delay in approving the project budget so far, the tendering may witness further delays.

As for the second project, which was affected by the delay in approving its budget, it relates to the expansion of two sewage disposal plants in oil facilities, which are known by convention as EWDP-1 and EWDP-2. The value of these two projects is estimated at about $650 million.

The first station project, EWDP-1, is located about 20 km south of downtown Kuwait City, and the second project, EWDP-2, is located about 40 km south. MEED magazine had reported in December of last year that the preliminary engineering and designs for the project had been completed.


It is noteworthy to make a mention that the disposal of water associated with oil production has been a source of concern to the Kuwait Oil Company for at least two decades. The Burgan oil field, which is the second largest oil field in the world, has witnessed successive increases in the water content of the oil produced, as much of the water produced is disposed of using dedicated injection wells.

Meanwhile, MEED magazine has reported that the Ministry of Electricity, Water and Renewable Energy has received bids to design and build a gas-fired power plant according to the combined cycle system, with a capacity of 900 megawatts, as part of the fourth phase of the Subbiya project, reports Al-Rai daily. In addition to the supply and installation of turbines and associated infrastructure, the contract covers the supply and installation of two gas oil tanks with a capacity of 15,000 cubic meters each.

The project, in addition to what is planned to convert the existing 250-megawatt simple- cycle plant to a combinedcycle gas turbine system, aims to increase the generation capacity of the Subbiya Power Complex by 1,150 MW. MEED indicated that Al-Ghanim International Company completed in 2019 the works of the simple cycle plant, while in 2020 it completed the combined cycle plant works in the Subbiya Energy Complex, indicating that there are a total of $6.9 billion of fossil-fired projects under construction in Kuwait.

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