Kuwait Gulf Oil & Saudi Arabian Chevron(SAC) sign EPC deal for MGC ‘refurbishment’

Kuwait Gulf Oil Company (KGOC) and Saudi Arabian Chevron (SAC) signed an EPC contract for the refurbishment of the Wafra Main Gather Center (MGC) at Hilton Resorts Tuesday.
The partitioned zone in Wafra, shared between Saudi Arabia and Kuwait, contains light and heavy oil production, processing, storage and shipping facilities. Oil is gathered through flow lines in Sub-Centers (SC) then processed in the Main Gathering Centre (MGC). The MGC plays a vital role as the center for collecting all the oil produced. It is then treated to separate water, gas and other impurities prior to sending it to KGOC or SAC for export or other uses. The MGC Revamp Project is aimed at replacing the old and obsolete equipments in the facility to enhance the safety of workers and prevent losses.


The project has undergone several stages, the last of which is the awarding stage which was done in accordance with strict compliance with tendering procedures through Joint Operations Tendering Committee represented by both governments and both partners. Saudi Arabia has a 50% interest in the natural resources of the onshore partitioned zone. Chevron operates on its behalf through a joint operation with KGOC, which similarly operates Kuwait’s 50% interest. The event also saw the awarding of the KD 44-million project to SK E&C, estimated to be completed in 900 days. The partitioned zone where the MGC is located produces 700,000 barrels per day of fluid per day. The MGC was constructed in 1961 and upgraded once in 1997. Speaking at the event, Hashim Mustafa Al Rifaai, CEO of KGOC, said the Wafra MGC Revamp Project is a sentinel project in the Partitioned Zone of Kuwait and Saudi Arabia.Although the project itself is focused mainly on upgrades for safety and reliability, the project also ensures our continued ability to produce the base production of this strategic asset.


“For years, the Partitioned Zone has been a major asset for both our countries. The wells and surface facilities that enable the monetization of the oil and gas resources in this region are essential to the continued growth and prosperity of our two countries.” “In 1964 the first oil was produced in Wafra and over the years that production has continued to grow. Yet this is not the end. With the ability to sustain the base production, arises the opportunity to expand our production further. Large quantities of heavy oil resources still remain underground in Wafra and are waiting for the right technology and process to bring those resources to surface for the betterment of our people and countries.”

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