Kuwait Oil Company seeks higher project budgets
17 December 2025
Contractors in Kuwait expect to have answers by the end of the year on whether budgets for several key upstream projects in the oil and gas sector will be increased, according to industry sources.
State-owned upstream operator Kuwait Oil Company (KOC) is seeking approvals for at least three upstream projects, for which bids came in significantly over budget.
The first project, with a low bid of $2.47bn, involves the development of two facilities: Separation Gathering Centre 1 (SGC-1) and Water Injection Plant 1 (WIP-1).
The second project, with a low bid of $2.48bn, focuses on developing SGC‑3 and WIP‑3.
The third project, which involves developing effluent water disposal plants for injector wells, had a low bid of $1.3bn.
For KOC to increase the budgets for all three projects, approvals will be required from Kuwait Petroleum Corporation (KPC) and the country’s Ministry of Finance.
Already cancelled
One Kuwaiti oil project tender that received bids significantly above budget has already been cancelled.
On 7 October, MEED reported that the tender for the SGC-2 oil project – focused on the installation of a separation gathering centre – was cancelled by Kuwait’s Central Agency for Public Tenders.
Earlier this year, UK-based Petrofac had submitted a bid more than double the project’s proposed budget.
Petrofac’s bid was KD422.45m ($1.37bn), while the provisional budget stood at KD207m ($670.2m).
This contract is expected to be retendered, but there is significant uncertainty about when a new invitation to bid will be issued and how the scope may change.
Earlier in December, MEED reported that KOC was discussing whether to retender the contract using a different contract model.
Initially, the project was tendered using the engineering, procurement and construction (EPC) contract model.
Discussions are ongoing on whether it will be relaunched under a build-own-operate (BOO) contract model.
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The request for qualifications (RFQs) was issued by the municipality’s Sewerage and Recycled Water Projects Department (SRPD).
The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
The second, TF-15-C2, will deliver stormwater links along Umm Suqeim Road to serve the Al-Barsha and Al-Quoz communities.
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READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
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DP3 assets: covering 146 residential villas, 590 three-bedroom townhouses, 356 four-bedroom townhouses, a mall and other associated works.
Bids due on 23 February.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
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Chinese firm wins Ceer automotive supplier park deal
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