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Kuwait aims to spend $79bln expanding oil capacity
04 July 2017
State-owned Kuwait Oil Company (KOC) is planning to spend at least 24 billion dinars ($79 billion) in the next five years, as part of its plans to boost its output capacity to 4 million bpd, from 3.1 million bpd currently, a Kuwaiti newspaper reported on Tuesday, citing unnamed sources within the company.
While the report did not give any further details on KOC’s future plans, it added that the firm, which is one of the world's largest crude exporters, awarded contracts worth nearly 7.7 billion dinars ($25.37 billion) between 2014 and 2016, as part of its ongoing plan to expand its production capacity.
Contracts worth about 8.25 billion dollars were awarded in 2014, while those signed in 2015 stood at nearly 10.9 billion dollars, the Arabic language daily Al-Seyassah said, citing figures by Kuwait's Central Tenders Committee.
Contracts signed in 2016 were far below the previous two years, with their value standing at around 1.9 billion dollars, the report said.
"There was a decline of around 42.4 percent in the value of contracts signed in 2016, compared with 2015," it said.
Most of the contracts were awarded to international companies and they covered oil exploration, drilling, hydrocarbon support services and other fields, the report said, adding that many of those contracts would be completed in the next years.
The biggest contract during that period was awarded to the US Petrofac company in early 2015, with a value of around 1.2 billion dinars (3.96 billion dollars), it said.
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