OPEC member Kuwait has selected a Chinese company and a local firm for two separate Jurassic gas projects with a combined value of more than $800 million, a local newspaper reported on Monday. 

The state-owned Kuwait Oil Company (KOC), the Gulf emirate’s upstream investment arm, has decided to award package 1 known as 'JPF-4' to Spetco International Petroleum Company of Kuwait with a value of around $398.1 million, the Arabic language daily Alanba said, citing KOC sources. 

China’s Jereh Oil &Gas Engineering Corp was selected for package 2 known as 'JPF-5' with a value of nearly $426 million, the paper said. 

“KOC has decided to award those two contracts to Spetco and Jereh…it is the largest project to be awarded by Kuwait this year and is intended to boost the country’s non-associated gas output to more than one billion cubic feet a day,” it said. 

According to the paper, KOC saved nearly $156 million in the two contracts after the two companies agreed to reduce their bid value. 

In a recent report, the paper said Spetco had submitted the lowest bid of $489.4 million for package 2 while Jereh made the lowest bid of $490.6 million for package 1. 

Citing a KOC report, the paper said the Jurassic gas project in North Kuwait close to the Iraqi border would have a capacity of 100,000 barrels per day of light crude and 300 million cubic feet of free gas a day. 

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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