The Kuwait Oil Company (KOC) awarded a contract worth approximately $850 million to Saipem to construct a pipeline system for the new El Zour refinery, Egypt Oil & Gas reports.

The pipeline will be used to transport oil and gas from KOC’s manifolds at its South Tank Farm. As part of the project, Saipem will also conduct work on the transport network of the Mina El Ahmadi refinery.

Saipem CEO, Stefano Cao, noted in a statement to the press that the contract “marks a new milestone for the [c]ompany in the onshore E&C sector,” adding, “it reinforces and consolidates Saipem’s presence in Kuwait.”

The El Zour refinery, upon completion, will have the capacity to refine 615,000 barrels per day (b/d), according to Arab News.

KOC is a subsidiary of the Kuwait Petroleum Company (KPC), Kuwait’s state-run oil company.