Kuwait’s CGCC secures gas gathering contract in PNZ

The Combined Contracting Group Co. (CGCC) has secured a KWD10.2mn ($33mn) agreement to deliver gas gathering support services within the Partitioned Neutral Zone (PNZ) shared by Kuwait and Saudi Arabia.

The Kuwaiti engineering and construction firm confirmed the contract award via a bourse filing on Thursday. The infrastructure project is located at the Al-Wafra Joint Operations facility, an onshore asset collaboratively managed by Kuwait Gulf Oil Co. (KGOC) – a subsidiary of the state-owned Kuwait Petroleum Corp. (KPC) – and Chevron Saudi Arabia.

Addressing the commercial impact of the deal, CGCC said: "The contract is related to support services for the gas gathering project … operating profits are expected to be realised and will be reflected in the company’s financial statements during the period of the contract."

The Al-Wafra award reinforces CGCC’s position as a primary contractor for domestic hydrocarbon infrastructure, following a series of strategic bids to support Kuwait's broader production capacity targets. In 2024, the company announced it had submitted the most competitive bid for a major Kuwait Oil Company (KOC) development valued at KWD19.28mn ($63.5mn). This pending contract encompasses external works for Jurassic gas production facilities in northern Kuwait, specifically focusing on the construction of a critical feeding pipeline network to support regional output.

Simultaneously, the firm has maintained a stable revenue stream through ongoing maintenance operations. Last year, KOC authorised an extension to CGCC’s three-year contract for the installation and upkeep of domestic transit routes. According to a separate stock exchange announcement, this extension is valued at KWD596,000 ($1.96mn) and covers additional maintenance work on oil pipelines across the southern and eastern regions of the country.

CGCC noted that the principal pipeline agreement, initially awarded by the state-run entity in April 2022, carried a baseline value of KWD3.33mn ($11mn).