MECC Wins $113 Million Kuwait Oil Company Contract for Strategic Northern Oilfields Pipeline Project

Kuwait City, Kuwait

 Kuwait-based Mechanical Engineering & Contracting Company (MECC) has secured a major oil and gas infrastructure contract valued at USD 113 million (KD 34.7 million) from Kuwait Oil Company (KOC), strengthening its position as one of the country’s leading contractors in the energy sector.

The contract forms part of KOC’s Manifolds and Group Trunk Lines (MGT) project, a key upstream development initiative located in northern Kuwait, aimed at enhancing crude and liquid handling efficiency across multiple oil gathering facilities.

Contract Details and Project Scope

The Manifolds and Group Trunk Lines project is designed to transport liquids from production wells to Gathering Centers 29, 30, and 31, playing a critical role in streamlining upstream operations. The manifold pipeline network will improve flow control, reduce operational bottlenecks, and support stable production from Kuwait’s northern oilfields.

• Client - Kuwait Oil Company (KOC)

• Contractor - Mechanical Engineering & Contracting Company (MECC)

• Contract Value - KD 34.7 million (USD 113 million)

• Project - Manifolds and Group Trunk Lines (MGT)

• Location - Northern Kuwait

• Sector - Oil & Gas Pipelines and Infrastructure

• Award Date - December 15, 2025

The project is considered one of KOC’s strategic infrastructure investments, supporting long-term production reliability and operational safety.

Competitive Tender Results

MECC was awarded the contract after emerging as the lowest bidder in a competitive tender process involving four major contractors. According to KOC, the competing bids were:

• Combined Group Contracting Company  - KD 35.4 million

• Sayed Hamid Behbehani & Sons Company  - KD 39.8 million

• Heavy Engineering Industries & Shipbuilding Company (HEISCO)  - KD 40.1 million

MECC’s bid undercut its nearest competitor by approximately KD 0.7 million, demonstrating strong cost efficiency while meeting KOC’s technical and commercial requirements.

Strategic Significance for Kuwait’s Energy Sector

The MGT pipeline project is a vital component of Kuwait Oil Company’s broader strategy to optimise oilfield infrastructure, enhance production flow management, and modernise upstream assets. Efficient trunk line and manifold systems are essential for reducing downtime, improving safety, and enabling smoother transportation of hydrocarbons from wellheads to processing facilities.

The award also aligns with Kuwait’s long-term energy development plans, which prioritise capacity optimisation and infrastructure resilience amid evolving global energy market dynamics.

About Mechanical Engineering & Contracting Company (MECC)

Mechanical Engineering & Contracting Company is a prominent Kuwaiti engineering and construction firm with extensive experience in oil and gas pipelines, mechanical works, and industrial infrastructure projects. The latest KOC award further reinforces MECC’s reputation as a trusted local contractor capable of delivering large-scale, technically complex energy projects.

Outlook

With the contract now secured, MECC is expected to commence project execution in coordination with Kuwait Oil Company in the coming months. Industry observers anticipate additional KOC tenders related to pipeline networks, gathering centres, and upstream facility upgrades as Kuwait continues to invest heavily in its oil and gas infrastructure.

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