State-owned Kuwait Oil Co. (KOC) announced on Sunday that it has awarded a 403-million-dollar contract to China Petroleum and Chemical Corp. (Sinopec) to build five oil and gas rigs.

The five-year deal is part of Kuwait’s long-term strategy to boost the Gulf state’s oil production capacity to four million barrels per day by 2020, KOC chairman Sami al-Rasheed said in a statement.

Kuwaiti oil executives said last week that the emirate has succeeded in raising its oil output capacity to three million bpd and was forging ahead with its long-term strategy despite a slump in the price of oil.

The fourth largest OPEC producer, which sits on about 10 percent of global crude reserves, Kuwait currently pumps around 2.2 million bpd.

(AFP & Zawya)