A Kuwaiti company has won a contract for oil maintenance with a value of around 74.8 million Kuwaiti dinars ($247 million), a newspaper reported on Monday.

ABJ Engineering and Contracting won the deal after submitting the lowest bid for the project in the Gulf emirate’s Northern oilfields, the Arabic language daily Alanba said.

It quoted responsible oil sources as saying the Central Agency for Public Tenders has approved a request by the state-owned Kuwait Oil Company (KOC) to award the contract to ABJ.

The report noted that the project is part of KOC’s ongoing plans to develop its oil facilities to boost crude output capacity.

Production in the Northern border area is currently estimated at 600,000 bpd and is expected to rise to 800,000 bpd by 2026, the report said.

(Writing by Nadim Kawach; Editing by Anoop Menon)