Kuwait to Increase Production in North Zone

By Abdelghani Henni 22 Aug 2014

Kuwait Oil Company (KOC) plans to increase oil production capacity from the North Kuwait Operations Zone (NKOZ) from the current 700,000 BOPD to 1 million BOPD within the next 5 years.

As part of this objective, KOC has recently signed contracts for the construction of three gathering centers in its North Kuwait Operations Zone. Each of the three centers will be capable of producing around 100,000 BOPD of crude oil, 240,000 BWPD of water, and 62.5 million scf/D of associated gas.

The first contract was signed with Petrofac for construction of gathering center 29 (GC-29) with a contract value of about KD 194 million (approx. USD 55 million). GC-29 is located approximately 70 km north of Kuwait City. A second contract was signed with Larsen & Toubro to construct GC-30 with a contract value of about KWD 240 million (approx. USD 846 million). The third contract was signed with Dodsal to construct GC-31 with a contract value of KWD 228 million (approx. USD 64.8 million).

Hashem S. Hashem, chief executive officer of KOC, affirmed the importance of these projects and described them as critical to boosting production capacity in northern Kuwait. Hashem also emphasized the need to comply with health, safety, and environmental regulations, and expressed hope that the projects will be executed within the set timeframe and allocated budget.

Kuwait currently produces 3.5 million BOPD. North Kuwait’s production represents around 20% of its national crude output.

Kuwait’s oil fields are split into four main areas: the North Field, West Field, South Field, and East Field. Kuwait’s current production capacity includes 700,000 BOPD from the north fields, 500,000 BOPD from the west fields, and 1.7 million BOPD from the Greater Burgan, which is the swing field producer. It also produces oil from joint fields, called the divided zone or neutral zone, with Saudi Arabia.

Abdelghani Henni is the Middle East Editor for the Journal of Petroleum Technology.