Phase one of the joint heavy oil project between Kuwait and Saudi Arabia in the city of Wafra will cost $5 billion, KUNA reported quoting a state oil official.
When completed the project is expected to produce around 80,000 barrels per day of oil, Kuwait Gulf Oil Company (KGOC) CEO Ali Al-Shemmeri said.
The first phase will include 288 producing wells — 133 injection wells, 67 observation wells and five storm water injection wells — and will require 100 megawatts of electricity used in operating steam turbines.
KGOC is currently working with its Saudi partner, Saudi Arabian Chevron, on a new deal that organizes the joint relationship between both sides in Wafra’s joint operations zone.
Al-Shemmeri said the current deal was signed back in 1956 and new developments urge the need for this change.
The initial stage of an agreement between the two sides on the project has been finalized, he added, and this will aim to enhance partnerships in the field of technologies used in the area.
Wafra joint heavy oil project’s phase 1 to cost $5bn
