KOC requests extension of two Jurassic gas contracts

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KUWAIT CITY, July 2: The Kuwait Oil Company (KOC) has requested the extension of two contracts for Jurassic gas, worth about $40 million, with the American company Schlumberger, which is executing the two contracts, reports Al- Anba daily quoting sources. The same sources said the company requested to extend the contract of the Jurassic production facilities in East and West Al-Rawdatain, West Sabriya and Umm Naga, at a value of $21.16 million, equivalent to 4.5% of the value of the contract concluded with Schlumberger, while the KOC requested to extend the second contract with the American company with a value of $18.67 million, equivalent to about 5% of the value of the main contract.

The Schlumberger contract is among the 3 contracts that constitute an important stage of the plan to develop the free gas production in Kuwait. One of the contracts is implemented by Septco, and the entire contracts for Jurassic gas facilities contribute to the production of half a billion cubic feet per day of free gas. The sources indicated that the Central Agency for Public Tenders (CAPT) requested to postpone the decision on the Kuwait Oil Company’s decision to extend the contract, for a subsequent meeting to coordinate with the technical sector.

Moreover, the Kuwait Oil Company requested to reconsider the decision of the previous body and to approve the first extension of the tender contract for the installation, operation and maintenance of a solar power generation plant with (MWE5) voltage in the Umm Qadeer field area in western Kuwait for a period of 6 months, with a total amount of $813,000 to read as the date of the end of contract instead of the date of signing the change order.

The company requested the second extension of a tender contract to provide comprehensive maintenance services for fire and gas detection systems in the regions of North and West Kuwait, concluded with Al-Meer Technical Services Company for a period of 6 months on a month by- month basis, at a total amount of 1.3 million dinars, in order to ensure the continuation of providing the above-mentioned services without interruption until completion of the alternative contract bidding procedures. The Central Tenders Agency also approved Kuwait Oil’s request to float the tender for security and safety improvements, the supervisory control system and data collection for Jurassic wells in northern Kuwait.

Meanwhile, an official source told the daily the Kuwait Oil Company has accepted the grievance of the American Fluor Company to provide comprehensive engineering design and project management services, after excluding the company’s financial bid. The source stated that the Grievances Committee had notified the Central Agency for Public Tenders after the grievance was permitted to be considered, and accordingly the grievance was accepted in form and rejected in substance, and the responsible authority was notified of the decision. Accordingly, the KOC has now four financial bids submitted by the Australian “Warley Parsons”, the American “KBR”, “EMIC” and the French “Technip”, to compete for the contract, as 3 companies will be awarded, and the implementation of the project extends to 5 3 years and must be won by the 3 companies to cover the business, as the contract covers the development of initial engineering designs, project management and related services for major projects belonging to the Kuwait Oil Company.

The source added that these fall under the category of “PMC” contracts, and aim to help the company prepare engineering designs and supervise major projects implemented by the KOC. The Kuwait National Petroleum Company (KNPC) decided to extend the contract for the maintenance of electrical systems, fire alarms, sirens and sirens at Mina Abdullah Refinery with Al Dar Engineering Company for a period of 6 months, with a total value of 1.3 million dinars. The sources said that the company submitted the decision to the Central Agency for Public Tenders, and notified the Agency that the value of the change order is equivalent to 9.5% of the value of the original contract

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