(Yicai Global) July 17 -- Kuwait is about the same size as Beijing and holds about 10 percent of the world's oil reserves, making it the main battlefield for leading oil producers. The Kuwaiti market had been dominated by European and American companies, leaving little room for competitors from other regions, but the situation has changed.

Sinopec International Petroleum Service Corp. (SIPS), which was the only Chinese player in the Kuwaiti market less than a decade ago, has grown into the biggest drilling contractor in the country, putting an end to European and American firms' oligopoly.

Chinese companies had 64 ongoing construction and engineering projects worth USD13.7 billion in Kuwait at the end of the first quarter. They covered a variety of businesses from oilfield services and exploration and refining to housing, infrastructure and telecommunications, People's Daily reported yesterday.

In the past, the drilling market in the Middle East was flooded with European and American equipment. Oil project owners such as Kuwaiti National Petroleum Co. required their drilling contractors to only use European and American products and imposed very strict requirements on key equipment such as top drives and blowout preventers.

In a bid to introduce China's products to the market, SIPS proactively contacted Chinese manufacturers to better understand their technical advantages, and helped them develop and improve their quality control systems and adapt them to meet established international practices.

SIPS held seminars and discussions with Kuwaiti National Petroleum Co.'s management teams to familiarize them with Chinese products' technical parameters and performance data. SIPS invited its Kuwaiti partners to visit Chinese producers to get an understanding of the strengths and quality of made-in-China products.

"Kuwait National Petroleum Co. at first agreed to use Chinese blowout preventers on a 'trial' basis, and the products gained the company's recognition for their high quality and price competitiveness," said Zhang Congbang, general manager at SIPS' Kuwait branch.

More than USD634.9 million (CNY4.3 billion) worth of Chinese equipment has been exported to the Kuwaiti market, and almost all supporting equipment was made in China. This boosted the development of Chinese oil equipment producers and facilitated their entry into the global market.

"Chinese manufacturers now possess excellent modern professional standards, and we can speed up oil production using Chinese machines and equipment," said Ayad Al-Kandari, vice president at Kuwait National Petroleum Co.