The report was prepared by a team of South Korea’s SK Engineering & Construction and US-based UOP. The Korean firm has carried out a survey of the structural and civil damage and also prepared a cost estimation report. UOP has assessed the damage to equipment at the oil field.
The explosion reduced Kuwait’s oil production capacity by about 600,000 barrels a day (b/d). Two major facilities at the northern oil field suffered extensive damage – the 280,000-b/d gathering centre (GC) 15 and the 204 million-cubic-feet-a-day gas booster station (BS) 130.
‘The total damage is estimated to be worth $160 million. The worst affected is BS 130, which will need a full replacement of the four compressor units and gas turbines,’ says an industry official. At GC 15, the control room, oil manifold, transfer pumps and fire-fighting system have been damaged.
‘KOC is expected to finalise by the end of April a loss management plan and prepare a blueprint to replace the damaged facilities,’ the official says. The focus will be on an eight-10-month contract to supply and install new facilities for GC 15. KOC is also expected to issue a second tender which will include the supply and installation of equipment at BS 130. KOC plans to commission the new facilities by the end of 2003.
KOC has appointed UK-based insurance and reinsurance giant AIG as underwriter for the losses.