China Becomes One of The Biggest Oil Drilling Contractors in Kuwait
The huge amount of Chinese-made oil equipment imported by
Kuwait shows the country's support for Chinese
manufacturers in the field and breaks the monopoly of US
and Europe in the Middle East oil sector, the People's
Daily reported on Sunday.
As of end of the first quarter, Chinese enterprises had
won contracts for 64 projects in Kuwait, covering such
sectors as oil field services and exploration,
infrastructure and telecommunications, with total value
of $13.7 billion.
New contracts reached $3.01 billion in the oil drilling
sector in the first quarter, becoming landmark projects
in China-Kuwait cooperation, the report said.
Kuwait has so far bought Chinese-made rig equipment worth
more than 4.3 billion yuan ($635 million), it noted.
Entering the Kuwait market in 2008, Zhang Congbang,
manager of the Kuwait subsidiary of Sinopec International
Petroleum Service Corp (SIPSC), said his team has
transformed the Chinese enterprise's image and become
the biggest rig contractor in Kuwait.
"When we arrived, the Kuwait side didn't show much
interest in us and worried whether Chinese companies
could complete projects with an expected high level of
quality," Zhang was quoted as telling the People's
To break the monopoly of the US and Europe in the rig
market in the Middle East, Zhang and his team worked with
domestic manufacturers to understand the technological
aspects required, helping them establish an
internationalized quality system.
The team also engaged with executives of Kuwait Petroleum
Corp (KPC) to introduce the technological index and data
of domestic equipment, and they invited the Kuwait side
to inspect Chinese factories and learn the standard of "
made in China".
"KPC agreed to use some Chinese rig equipment on a trial
basis. Finally, the first-rate quality and reasonable
price of domestic products won recognition from Kuwait,"
Zhang was quoted as saying in the report.
The Kuwait subsidiary of SIPSC signed a big rig agreement
worth $1.15 billion in 2014 when the international oil
price slumped, rising to become the biggest rig
contractor in Kuwait.
At present, the company owns 53 drilling rigs, taking up
more than 45 percent of the Kuwait market, according to