Italy's Snam awarded $55 million Kuwait gas lift tender

Published May 29th, 2001 - 02:00 GMT

KUWAIT, (Reuters) - Italy's Snamprogetti SpA, a unit of oil and gas giant ENI, was awarded a 17 million dinar ($55.21 million) gas lift tender to boost oil production in northern Kuwait, industry executives said on Monday, May 28. 

 

One executive said Snam was the lowest bidder in the tender but the awarding was delayed as all the offers were above a budget estimate of around 14 million dinars by the state's Kuwait Oil Company (KOC). 

 

Petrofac, a U.S.-registered company operating in the region out of neighboring United Arab Emirates, was in second place for the 18-month gas lift project with 19 million dinars. 

 

The project involves a new high-pressure gas distribution line network to 72 wells earmarked for gas lift operation to enhance oil production rate. 

 

Earlier this year, Snam presented the lowest bid of 38.9 million dinars to build a new gas booster station (BS) in the north BS 131. 

 

The new project calls for tie-ins at BS 130 and 131 as well as provision of the gas distribution network. 

 

OPEC member Kuwait, which sits on almost 10 percent of the world's oil reserves, has a plan to boost its oil production capacity by one million barrels per day (bpd) from a current 2.5 million bpd.  

 

To achieve the target, the government is trying to push through Kuwait's elected parliament a controversial plan allowing foreign oil majors to invest around $7 billion to double production in the north to 900,000 bpd within five years, in addition to building a city and oil export facilities. 

 

Parliament is due to hold a special session on Wednesday to discuss the sensitive oil policy switch, allowing foreign majors to operate in Kuwait more than two decades after it fully nationalized the vital oil sector. ($1 = 0.3079 dinar)  

 

 

© 2001 Mena Report (www.menareport.com)

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