State-owned Kuwait Oil Company (KOC) and Halliburton signed an extendable six-month integrated offshore drilling services contract worth $597 million, the Kuwait Times reported.
The contract is for a three-year term with a six-month extension option. The tender saw participation from three global companies but Halliburton emerged as the winner, according to the Kuwait Times.
According to the deal, Kuwait Oil will receive integrated offshore drilling services for six high-pressure high-temperature (HPHT) exploration wells on two jack-up rigs in the Arabian Gulf.
The deal is expected to help produce 100,000 barrels of oil each day.
Kuwait Oil will receive offshore rigs and supply vessels for the project from the American company. They will also receive drilling, coring, cementing, wireline and perforating as well as offshore logistical services.
According to Halliburton’s website, the project will be operational in mid-2020, while work on each rig is expected to begin by July 2020 and January 2021 respectively.
Kuwait Oil CEO Emad Al-Sultan told the media that with the new deal, their aim is to increase Kuwait’s crude oil production.
Earlier in June, the Kuwait Oil Company awarded two contracts worth $96 million for the construction of two substation power plants.
While Kuwait-based engineering, procurement, and construction contractor Al-Ghanim International landed the first contract worth $53.8 million, the second contract worth $42 million went to Heavy Engineering and Industries Company.