MEOG: KOC extends services contracts

State-owned Kuwait Oil Co. (KOC) this week extended contracts with services firms relating to ongoing work on fields in the north of the country.

According to Kuwait’s Arabic language Alanba newspaper, deals were extended with local firm Spetco International Petroleum Co. and Schlumberger of the US for a total of $33mn. It said that the contracts relate to projects under Kuwait’s Jurassic gas development programme.

Sources at KOC were quoted as saying that the company had extended Schlumberger’s contract for Northern Raudhatain by 62 days from September 25 to November 26 for a fee of $16.9mn. Meanwhile, Spetco’s deal for the field was said to have been extended by 126 days from April 25 to August 29, 2024, for a total of $16.3mn.

Last August, similar extensions were rejected by the Central Agency for Public Tenders (CAPT) following a request by KOC, with local media reporting that the rejection came on the grounds that the two companies had failed to complete project work on schedule.

Those contracts covered the installation of production facilities at the country’s northern Jurassic gas fields.

With Spetco and Schlumberger reported to have already paid penalties for their tardiness, Al-Rai said that they had sought the extension to avoid more fines. “CAPT refused to extend the contracts for the two firms although part of the contract has not been completed,” it reported.