Kuwait well on way to becoming financial center

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‘Drilling of oil wells monopolized by one company’

KUWAIT CITY, June 19, (Agencies): Kuwait’s Minister of Commerce and Industry Khaled Al-Roudhan said on Tuesday that the country possesses all the attributes needed to ultimately morph into a financial and commercial hub. The minister’s remarks came as he welcomed Eid Al-Fitr wellwishers to his office, saying that diligence coupled with legislative reforms would bring Kuwait’s aspirations of economic prominence to fruition.

Al-Roudhan went on to describe the industrial sector as the focal point of national development, adding that Kuwait has drawn up a well-thought out plan to boost industrial output. “We are hard at work to provide an environment conducive for business in Kuwait through novel methods and proper training,” Al-Roudhan said, extending his greetings to the Kuwaiti leadership as on the joyous Islamic festival of “Eid Al-Fitr.”

Meanwhile, some officials of the Kuwait Oil Company (KOC) are dissatisfied about the manner in which the drilling of oil wells is carried out by the KOC, reports Al-Qabas daily quoting reliable sources. The daily said according to these sources, the drilling of wells is being monopolized by one company which then delegates the work to subcontractors.

The daily learned the KOC drills between 1,000 and 1,500 oil wells a year and receives from the KOC KD 75,000 for the construction of a concrete block around each well which works out to a total of between 75 and 120 million dinars a year while the real cost of processing a single drilling well with cement cutters is not more than KD 5,000 according to the same sources since to lay concrete in a small area does not require any expertise or companies specialized in the oil sector. The contractor also installs an iron fence around the wall, and this is considered a waste of funds because the area is restricted and no unauthorized person can enter.

The company, without convincing reasons, is given the job for more than 10 years despite the attempts of local companies to win this tender. Some local companies were allowed to work in this field after considerable pressure was put by blocking websites and not issuing work permits required for its workers to enter the site and not to qualify its equipment.

The sources added, there are some officials who have tried to address these abuses and waste of public money by stressing on the need for the tender to be floated and not give the contract to this particular company directly, but this has not only been ignored but resulted in the transfer of that official who was demanding an end to the monopoly of one company.

The sources added that there are many question marks concerning the work of this company which has been drilling the wells for KOC over the years.

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