Hyderabad-based Megha Engineering & Infrastructures Ltd has clinched a $225.5 million contract from Kuwait Oil Company to build, operate and maintain a gas sweetening and sulphur recovery facility in Kuwait’s oilfields. The deal spans engineering, procurement and construction, followed by a five-year operations and maintenance phase, with an option for KOC to buy back the facility.
Under the agreement, MEIL must complete construction within 790 days, after which it will manage operations for five years. The new plant will treat sour gas, processing approximately 120 million standard cubic feet per day to remove hydrogen sulphide and carbon dioxide, converting it into a sweet and dry gas stream suitable for export or use in KOC’s pipeline network.
The sulphur recovery units will operate on a Build-Own-Operate basis, distinguishing them from the EPC model applied to the broader facility. KOC retains the right to acquire the facility back once development is complete, a clause that helps align asset control with long-term state interests.
The contract is awarded as part of KOC’s efforts to expand gas treatment capacity and manage emissions in line with environmental and production targets. Kuwait has in recent years issued tenders for gas sweetening and sulphur recovery projects across various oilfields. A similar project in West Kuwait had previously attracted bids valuing near US$360 million.
MEIL has in recent years diversified beyond highway and infrastructure contracts, entering energy and petrochemical sectors. Its portfolio includes contracts for electrical reactors under the Nuclear Power Corporation of India and involvement in crude refining projects abroad.
The Indian company will now join a competitive cohort of engineering firms operating in Kuwait’s energy sector, which includes global players active in oil, gas and petrochemical infrastructure. The winning bid reflects MEIL’s technical capabilities, cost competitiveness and financial readiness.
The timeline and structure pose operational and financial risks. Delivering a complex gas treatment facility within 790 days demands tight project management, supply chain coordination, and regulatory compliance. The BOO model for the SRU phase places long-term operational risk on MEIL until the buy-back happens.
KOC’s option to reclaim ownership also potentially limits MEIL’s residual value, depending on the buy-back terms. Yet the five-year maintenance window gives MEIL scope to demonstrate performance metrics, build credibility and potentially win follow-on contracts in Kuwait or the broader Gulf region.
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