Kuwait awards $359m oil export infrastructure EPC package

Kuwait’s Heavy Engineering Industries & Shipbuilding Company has secured a contract worth KWD111.05m ($359m) for works connected with Kuwait Oil Company’s programme to expand and upgrade crude oil export infrastructure.

The 42-month package covers civil, mechanical, electrical and instrumentation works together with engineering, procurement and construction of storage tank facilities. The work forms part of KOC’s JLO Export Facilities and Upgrading of Existing Export Network project.

HEISCO received a letter of award for the package, moving another substantial component of Kuwait’s upstream and export infrastructure programme into execution.

The scope combines new tank facilities with associated infrastructure, making the award commercially relevant beyond the main contractor. Procurement requirements are likely to extend across tanks, piping, valves, electrical systems, instrumentation, structural steel, specialist construction services and project logistics.

The 42-month execution period also provides a relatively long downstream procurement window for manufacturers, subcontractors and service providers seeking work with HEISCO and other participants in KOC’s capital programme.

The award adds to a continuing pipeline of large KOC contracts as Kuwait invests in sustaining production capacity and strengthening the infrastructure needed to handle crude oil exports.

Sources: Saudi Gulf Projects; HEISCO/Kuwait market disclosures.