US-based McDermott International and South Korea's Daewoo Engineering and Construction  have signed contracts to build facilities to recover gas from Hout, one of the joint oilfields shared by Saudi Arabia and Kuwait, two industry sources said.

Al-Khafji Joint Operations Co (KJO) - a partnership between state oil firms Saudi Aramco and Kuwait Petroleum Corp. (KPC) - signed the contracts two weeks ago, the sources said.

One of the sources said the contracts for onshore and offshore work in the Neutral Zone between the two Gulf Opec countries were worth a total of around $240 million.

Under the contracts, McDermott and Daewoo are to build offshore gas gathering facilities, a subsea pipeline to carry 48 million cubic feet of gas per day and associated onshore gas facilities. 

India's Larsen and Toubro, Italy's Saipem, CCC and UAE's NPCC, South Korea's GS Samsung Engineering and France Technip were among firms invited to bid. - Reuters