Project highlight: Kuwait’s Jurassic Production Facility 4

Kuwait

In Kuwait's drive to increase oil and gas production capacity, the Jurassic Production Facility 4 (JPF-4) and its counterpart JPF-5 will target difficult-to-extract light oil and free gas from fields in Northern Kuwait for export to international markets and as potential feedstock for downstream processing.

Kuwait aims to increase its oil production capacity from its current 2.9 million bopd to 4 million bopd by 2035. The country also aims to increase its daily gas production capacity from the current capacity of around 17 mcm (600 mcf) per day to 56.6 mcm (2 bcf). This strategy requires an investment of USD 410 million into new and old fields and new processing facilities.
Fields which will see increased activity include Raudhatain, Sabriyah, Northwest Raudhatain, Umm Niga, Dhabi, Bahr, Marratt and Najmah-Sarjelu in northern Kuwait. JPF-4, along with its counterpart JPF-5, will test, process, treat and handle the wet and sour hydrocarbons from these Jurassic oilfields.

SPECIFICATIONS: Jurassic Production Facility 4 (JPF-4) is an onshore production facility implemented on a build-own-operate basis by contractor SPETCO near the Sabriyah field. The total investment for the contract is USD 398 million. The facility has the capacity to produce 50,000 bopd of treated sweet crude, 4.25 mcm (150 mcf) per day of sweet and dehydrated rich gas and 240 tonnes per day of molten sulphur.

KEY PLAYERS: Kuwaiti company SPETCO will operate and maintain JPF-4 for five years, with the possibility to extend the contract. The company previously successfully delivered the Jurassic Production Facility 3. SPETCO is an oilfield service provider specialised in executing turnkey BOO [build-own-operate] and EPCC projects. It currently processes around 130,000 bopd, 10 mcm (350 mcf) per day of gas and 240 tonnes per day of sulphur for KOC. Its share of the Kuwaiti production facility sector amounts to 65%.

TIMELINE: The execution schedule for JPF-4 covers 26 months, after which follows a five-year operation and maintenance phase. The execution schedule began from the month SPETCO signed its contract with KOC on December 16, 2021. The first fuel gas was produced on September 27, 2023, month 21 of the execution time period. First oil was produced on December 18, 2023, two months ahead of schedule. The first oil export was made a week later.
Shortly thereafter, the first gas was exported on December 30, 2023. The first sulphur export was made on February 23, 2024, the 26th month of the execution phase.

BENEFITS AND SIGNIFICANCE: JPF-4 and JPF-5 are both able to produce light oil and free gas, which are difficult to extract. Kuwait already had the highest concentration of light and sweet oil production in the Middle East, and the new production facilities will further solidify its competitive advantage and expand its position on the global market.
Light oil is highly desirable for refining. Consequently, the light oil from JPF-4 will increase Kuwait’s quality feedstock and may lead to the development of further downstream processing. Moreover, the gas produced by JPF-4 and JPF-5 will increase the country’s current capacity by approximately 50%. Finally, the development of the projects will lead to direct and indirect job opportunities for Kuwaiti youth.

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