Kuwait’s Central Agency for Public Tenders (CAPT) has approved four major contracts totalling 447.31 million Kuwaiti dinars ($1.5 billion) to expand the nation’s crude oil pipeline network, according to reports from local newspaper Alanba.

The project, managed by the state-owned Kuwait Oil Company (KOC), spans four primary geographical regions and represents a significant investment in the country's upstream and midstream infrastructure.

The contracts were distributed among several prominent engineering and construction firms to facilitate the construction of pipelines and associated facilities:

• North Kuwait: The largest single contract in the program was awarded to Heavy Engineering Industries and Shipbuilding Company (HEISCO). Valued at KWD 174.23 million ($568 million), the award covers "Portion III" of the northern works. In a statement to the local stock exchange, HEISCO noted it secured the project despite being the fourth-lowest bidder.
• East Kuwait: HEISCO also secured the contract for the eastern region, valued at KWD 97.86 million ($319 million).
• South Kuwait: The Mechanical Engineering and Contracting Company was awarded the southern region contract for KWD 97.86 million ($319 million) after submitting the lowest bid.
• West Kuwait:Combined Group Contracting Company rounded out the awards with a contract worth KWD 77.33 million ($252 million).

The move to modernize and expand pipeline capacity is seen as a critical step in Kuwait's broader strategy to maintain and eventually increase its crude production capacity. 

By upgrading the delivery systems across the North, South, East, and West sectors, KOC aims to streamline the transport of crude from wellheads to storage hubs and export terminals.

Analysts suggest these investments are vital as Kuwait navigates shifting global energy demands and seeks to optimize its domestic operational efficiency. 

Meanwhile, the works are expected to include not only the laying of high-pressure pipelines but also the integration of monitoring systems and safety infrastructure.