OREANDA-NEWS.   Saudi Arabian Chevron Inc. announced that an integral project entered the construction phase, as leaders from Wafra Joint Operations, the Kuwait Gulf Oil Company, Saudi Arabian Chevron and key business partners supporting the project gathered for a ceremonial groundbreaking on the Main Gathering Center (MGC) Revamp Project.

“This investment is a commitment to decades of safe and reliable operations at Wafra and it is also an enabler of future growth within the Partitioned Zone,” said Saudi Arabian Chevron president Ahmed Al-Omer. “The advancement of the MGC project demonstrates its team’s ability to collaborate. Together, we will develop the full scope of the on-shore Partitioned Zone’s hydrocarbon resources.”

The Wafra Field is the main oil field in onshore Partition Zone. The Main Gathering Center is a critical hub for oil production because all of the oil produced within the onshore Partitioned Zone’s several oil fields passes through the MGC infrastructure. With the MGC Revamp Project, Saudi Arabian Chevron and its partner the Kuwait Gulf Oil Company plan to upgrade and maintain facilities at Wafra Joint Operations to enable continued safe and reliable production and to accommodate future growth.

The MGC facility’s two main functions are to separate the oil, water and natural gas and treat the oil for delivery to Saudi Arabian Chevron and the Kuwait Gulf Oil Company by pipelines. Many of the equipment in the MGC have been in operation since the facility was rebuilt in 1991 and are now due for replacement. The MGC Revamp Project will replace many of the heaters, coolers, pumps and other equipment needed to keep the facility operating for many years to come. Key benefits will include maintaining safe and reliable operations while providing continuity of production to enable future development projects.

Through its 1949 Concession Agreement and its extension in 2008 through the Extended and Amended Agreement, Saudi Arabian Chevron produces the Kingdom of Saudi Arabia’s 50 percent interest in the onshore Partitioned Zone’s hydrocarbon resources. SAC works in partnership with the Kuwait Gulf Oil Company which produces the State of Kuwait’s 50 percent interest in the onshore Partitioned Zone.