Kuwait, Saudi JV Plans to Build NGL Facilities

A joint venture between Saudi Arabia and Kuwait plans to build gas and natural gas liquids (NGL) collection and distribution facilities at the Khafji oilfield, the company said.

Khafji, which is in the Neutral Zone between the two countries, has oil capacity of around 610,000 bpd. Engineering firms have until 27 September 2010 to submit their bids for the project, which is estimated to cost at least US$50 million, the Al-Khafji Joint Operations Company (KJO) said on its website. It did not provide further details about the project.

"They want to collect the gas, which is being flared, and distribute it to Kuwait and Saudi," an industry source said. KJO is split between Aramco Gulf Operations, a subsidiary of state oil firm Saudi Aramco, and Kuwait Gulf Oil Co (KGOC).- Arabian Business