KOC outlines future project plans

21 May 2004
A major review of Kuwait Oil Company's (KOC's)general conditions of contract is under way 'with the aim of better aligning our interests with those of our contractors and suppliers,'Ahmed al-Arbeed, chairman and managing director of KOC, told the MEED Major New Project Opportunities in Kuwait conference.

'We are working on reclassifying our list of bidders,' said Al-Arbeed. 'Additionally, KOC is piloting new contracts on a performance basis rather than a labour supply basis. Our efforts, together with the reforms we see in the field of foreign investment legislation, will hopefully result in the return of some of the contracting giants and convince them of the need to establish a permanent base in Kuwait.'

A number of KOC projects are moving ahead:

Facilities upgrade and flowlines replacement project. Bids are now due to be submitted by the revised closing date of 11 July for the estimated KD 250 million ($848 million), 30-month engineering, procurement and construction (EPC) contract. Its scope covers the replacement of existing underground crude oil and gas flowlines in the south and southeast and the rehabilitation of 17 gathering centres (GCs) and three gas booster stations (MEED 2:4:04);

Expansion of gathering centre (GC) 28. Bids are due in by the revised 27 June deadline for the EPC contract to revamp and expand by 40,000 barrels a day (b/d) the GC;

Expansion of GC 27. The bid deadline for the EPC contract on the estimated KD 20 million ($68 million) upgrade project has been extended to 26 June (MEED 30:4:04);

North Kuwait crude export expansion project. The EPC contract calls for for the revamp of existing storage tanks and pipelines, the supply and installation of new facilities and modifications to the oil export system. The project will also link the manifolds of GCs 15, 23 and 25. The object is to expand capacity in preparation for the increase in production that is expected to come from the proposed Project Kuwait northern oil fields development;

Effluent water disposal project, phase 2. The estimated KD 55 million ($186 million) scheme is aimed at raising KOC's ability to dispose of effluent water into subsurface reservoirs to 1 million b/d from the 500,000 million b/d offered by the phase 1 project under construction. The project duration is expected to be 24 months and it will be tendered to international contractors;

Export facilities. A $900 million project aimed at raising export capabilities to cater for production of 3 million b/d will be retendered, after original bids came in above budget.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.