Project Aims To Enhance Safety Of Workers And Prevent Losses

KUWAIT CITY, May 7

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.

Project
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, he added. 
"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."

Al Rifaai further noted there are tremendous opportunities in the portioned neutral zone (PNZ). "The strategy and development expect to apply innovative technology to grow the recoverable reserves, train employees and provide other benefits for the region."  The Main Gathering Center is the focal point in the Wafra operations and is critical in the development of these strategic assets. But we must always operate safely, reliably and meet our customer's requirements. The work that will take place in the Main Gathering Center over the next few years will result in a cleaner, safer, more reliable facility, capable of delivering a more consistent and acceptable product quality.  For his part, Ahmed Al Omar, President SAC, said the new contract begins a long stride towards the critical infrastructure that will make certain that decades of future production can be conducted safely and reliably.  This project will target the most important areas within the plant affecting its safety and reliability. The improvements address specific work packages that cover some 20 percent of the total facilities, he added.

"The project will improve some of the most vital parts of the facility and reduce our overall risks. These improvements include, among others, the safety systems and process equipment. "In addition, other steps will make the plant more robust and durable, including the addition of redundant lines and equipment. The division of project scope into separate subprojects allows efficient execution of construction, with each package being commissioned independently and as quickly as possible.
"The common commitment by Chevron and KGOC sends a powerful signal about our clear intention to solidify our base business production while also laying a solid foundation for the large scale growth envisioned for Wafra's Eocene Reservoirs."

The president concluded saying as the energy consuming world confronts the ongoing need to ensure reliable supplies of affordable energy, "enduring partnerships like ours offer a bridge to a future made brighter by the expanded supplies of safe and dependable energy. The MGC Revamp Project is one piece in the mosaic of energy security that we and our industry will build."  Shabib Al Ajmi, General Manager of Wafra Joint Operations and K.C. Choi, CEO of SK E&C also spoke at the event.

© Arab Times 2013