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State-Owned KPC Awards Key Approval for $381M Kuwait Oil Project at Al-Rawdatain

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Kuwait Oil Project at Al-Rawdatain

Kuwait Petroleum Corporation’s Supreme Purchasing Committee has contracted India’s Megha Engineering & Infrastructure for a $381 million Kuwait oil project at Al-Rawdatain. The approval, which was granted earlier this month, thus opens the door to an official contract announcement. The Kuwait oil project is based on a key water separation plant at Al-Rawdatain. Meanwhile, state-owned Kuwait Oil Company operates as the client for this wide-ranging infrastructure upgrade.

In November 2025, Meil won the bid with a price of KD117 million ($381 million), outbidding six other contractors. In particular, the scope includes the design of a water separation plant at Gathering Centre 25 and a pumping plant at GC-30. Meil’s offer was much lower than the second lowest of KD130 million from Mechanical Engineering & Contracting Company. Hence, the Indian contractor won the job due to its competitive pricing and technical capabilities. Another oil project is the Umm Shaif gas cap project which is a major project in the Middle East. French engineering group Technip Energies has been awarded a detailed engineering contract for the Umm Shaif Gas Cap project in the offshore field in Abu Dhabi. As such, the company will act as subcontractor to Larsen & Toubro Energy Hydrocarbon for package 1.

Outlook on the Kuwait Oil Project at Al-Rawdatain

The Kuwait oil project at Al-Rawdatain will provide full-scale upgrades to processing and utility facilities at Al-Rawdatain. In addition, new low pressure separation and gas handling equipment is included throughout the facility. The main components include a three-phase wet separator package, gas knock-out drum and related LP gas pipelines.

In addition, the project includes a high integrity pressure protection system and high pressure flare installation. These safety systems guarantee the reliability of the gathering centres. Furthermore, the water separation plant meets the essential production needs at the Al-Rawdatain oil field.

Kuwait Oil Project at Al-Rawdatain
Kuwait Petroleum Corporation’s Supreme Purchasing Committee has contracted India’s Megha Engineering & Infrastructure for a $381 million Kuwait oil project at Al-Rawdatain.

Meil expands its footprint in Kuwait with second major contract.

The approval comes after Meil’s contract win in October 2025 for a separate gas sweetening and recovery plant in West Kuwait. Meil had previously offered the lowest bid of KD69.2 million ($225.5 million) for that project in February 2025. The total value of both contracts is more than $600 million for the Indian engineering company.

Project Overview

  • Project Value: KD117 Million ($381 Million)
  • Location: Al-Rawdatain facility, Kuwait
  • Client: Kuwait Oil Company (KOC)
  • Main Contractor: Megha Engineering & Infrastructure (India)
  • Status: Supreme Purchasing Committee approval granted, official award pending

Scope

  • Water separation facility at Gathering Centre 25
  • Pumping facility development at GC-30
  • Low-pressure separation and gas handling equipment
  • High-integrity pressure protection system and high-pressure flare

Project Highlights

  • Meil’s bid 11% lower than second-place competitor
  • Six companies submitted competitive bids in November 2025
  • Includes three-phase wet separator package installation
  • Gas knock-out drum and associated LP gas pipelines

Key Developments

  • Supreme Purchasing Committee approval granted August 2026
  • Official contract award imminent following approval
  • Meil previously won $225.5M West Kuwait gas project in October 2025
  • Combined Meil contracts in Kuwait exceed $600 million value

Key Challenges

  • Coordinating water separation and pumping facility development simultaneously
  • Installing high-integrity protection systems at operational gathering centres
  • Managing wide-ranging processing and utility infrastructure upgrades
  • Executing work at Al-Rawdatain alongside existing oil production operations

Outlook

  • Official contract award expected following Supreme Purchasing Committee approval
  • Project strengthens Meil’s position in Kuwait upstream sector
  • Upgrades critical to Al-Rawdatain field production efficiency
  • KOC continues infrastructure investment across Kuwait oil fields

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