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Saturday , September 21 2019

KNPC has several options to get compensation from contract defaulters

Egypt to renew deal with KPC

KUWAIT CITY, Aug 18: The Kuwait National Petroleum Company (KNPC) has on hand several options to get compensation from contractors for delaying the environmental fuel project which range from agreeing to choose an international arbitrator in preparation for reaching a friendly agreement satisfactory to both parties, or resort to slap fines on contractors through court verdicts, reports Al-Rai daily.

The sources revealed the total compensation is estimated at 120 million dinars, or 40 million dinars in each package, and pointed out that “in case of pressure on contractors the work may be disrupted, and the project may be delayed further”.

The sources stressed the KNPC is confident of the integrity of its position and has all the evidence that confirms that it does everything that would provide facilities and procedures to all parties to make the project a success, and accelerate the pace of completion.

The sources explained that the estimated production period of the project 20 years from the date of commercial operation, which is expected to be between March and June of 2020, saying that talk about losses before the start of operation is not true.

Meanwhile, the Ministry of Petroleum and Mineral Resources in Egypt intends to renew its contract with Kuwait Petroleum Corporation (KPC) on importing crude oil starting from January, reports Al-Rai daily quoting high level sources from the Egyptian petroleum sector. Sources said the Egyptian Public Authority for Petroleum has four contracts with giant Arab institutions and companies to provide for the need of the local market for petroleum products in addition to local production. Sources disclosed oil and petroleum products will be imported from companies and international institutions such as KPC, Adonoc Company in the United Arab Emirates, Saudi’s Aramco and Iraqi company Sumo.

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