KOC extends major tender to expand southern oil capacity

Arab Times

23-06-2025

KUWAIT CITY, June 23: The Central Agency for Public Tenders (CAPT) has extended the deadline for bids on a significant Kuwait Oil Company (KOC) tender. This tender, which includes the construction and installation of the third Oil Separation Gathering Center and third Water Injection Station in South Kuwait, is now due on July 22 instead of June 22. Sources told the newspaper that this tender is a strategic component of KOC's broader initiative to develop oil fields in the southern part of the country. They said this development is crucial due to the abundant oil reserves in the South, and the need for enhancements to ensure sustained and increased production. The southern region houses Kuwait's most vital and largest oil fields, including the second-largest field in the world -- Burgan, along with its associated fields like Maqwa and Al- Ahmadi, as well as the Managish and Umm Qadir fields.
Additionally, the Al-Julaia offshore field, discovered in January 2025, is situated in the South. It boasts of estimated reserves of approximately 800 million barrels of medium-density oil and 600 billion cubic feet of associated gas. KOC's objective in building the third water injection station is to boost its production capacity in the southern region. Water injection is a key technique that significantly aids oil extraction from reservoirs, utilizing high-pressure technologies to seal any voids in wells. Sources confirmed that KOC intends to implement the Gathering and Separation Center 3 and the Water Injection Station 3 to connect the company's oil fields through an extensive network. 'This network will facilitate the feeding of oil from the gathering centers, ensuring that processing operations are carried out in a consistent and nearly uniform manner, especially with the interconnected wells,' they added.
The company intends to issue several major tenders throughout 2025 to increase the production capacity of all oil and gas fields, including those in the northern regions. Production enhancement in the northern fields is being achieved through the agreements that KOC reached with international companies. Despite a decline in production in recent years, the Burgan field remains robust and continues to be one of the world's richest oil fields. Kuwait will depend on it for many years to come. KOC is working diligently to restore full production to its previous level of around 2.4 million barrels per day, an increase from its current production of approximately 1.7 million barrels per day.