MBPS has signed a $127.3 million Kuwait drilling contract with state-owned Kuwait Oil Company. The Omani contractor will provide and operate three new 1,000-horsepower land rigs for drilling and workover activities. MBPS is owned by a majority stakeholder, Adnoc Drilling, a UAE-based oil field services company.
Other Projects
In other news, ADNOC Gas is looking at a LNG export facility in Fujairah that would avoid the Strait of Hormuz. The study was confirmed by Chief Executive Fatema Mohamed Al Nuaimi on Tuesday, but no final decision was made. The company posted $1.34 billion in net income for the third quarter and has $4 billion in full-year guidance. Its parent’s $5.5 billion-plus Ruwais LNG project just installed its first two refrigeration compressor trains.
Scope of the MBPS Kuwait drilling contract
In a company statement, Salim Al-Harthy, chief executive of MBPS, described the award as a testament to the company’s dedication to providing the highest quality of service to its clients. This is another significant achievement for MBPS and a testament to KOC’s trust in our abilities,” Al-Harthy said. It also reinforces our footprint in Kuwait and our commitment to providing safe, reliable and efficient drilling and workover services throughout the region.
He said, “I would like to express my gratitude to KOC for their trust and to our MBPS team for their hard work and dedication in making this possible.
The agreement comes at a time when Kuwait is in a record spending cycle. In October last year, KOC announced its exploration drilling programme. The operator is expected to invest KD1.2 billion ($3.92 billion) in it until 2030. That programme is part of a KD9.8 billion budget, the company’s largest ever. The budget includes drilling and maintenance of up to 6,193 wells by the end of the decade.
Outlook for MBPS in Kuwait
The three 1,000 hp rigs provide MBPS with an operating footprint in one of the largest drilling programmes in the region. Moreover, the award extends the contractor’s footprint beyond Oman and the UAE, which is linked to Adnoc Drilling. Now, it’s time to see how confident KOC is in its execution on the three rigs. Furthermore, the broader KD9.8 billion programme has demand that extends beyond this award.
Project Overview
- Contract Value: $127.3 million
- Location: Kuwait
- Client: Kuwait Oil Company, state-owned
- Contractor: MBPS, Oman
- Majority Owner: Adnoc Drilling
Scope
- Three newly built 1,000-hp land rigs
- Drilling and workover operations
- Supply and operate mandate
- Multi-year services in Kuwait
Project Highlights
- Biggest-ever KOC budget backdrop
- KD9.8 billion drilling and maintenance
- Up to 6,193 wells by 2030
- Regional expansion beyond Oman
Key Developments
- Contract signed November 10
- CEO Salim Al-Harthy confirmed award
- KOC plans $3.92 billion exploration spend
- Programme runs through 2030
Key Challenges
- Three-rig delivery and staffing
- KOC efficiency expectations high
- Regional competition for rigs
- Programme scale demands reliability
Outlook
- Rigs mobilise into KOC fields
- KD1.2 billion exploration spend runs
- Footprint in Kuwait strengthens
- Award reflects stated KOC confidence
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