OIL PRICES SHOOTS UP…
OIL prices have again skyrocketed in August 2005, due to various supply disruptions. Oil supply from Iraq still remains uncertain and the Kirkuk-Ceyhan Oil Export pipeline is continuously being attacked by insurgents. Two minor disruptions by public protests happened in
Nigeria and Ecuador. The oil market has sharply reacted to these interruptions. Oil prices are expected to shoot up to $ 60 to
70 per barrel.
UPGRADATION OF DOHA EAST DISTILLATION PLANT – ITB ISSUED
THE Ministry of Energy of the Government of Kuwait has issued Invitation to Bid to the following international companies to bid for the estimated $ 86 million contract for upgrading and rehabilitating the Doha East Desalination Plant:
1. Doosan Heavy Industries, Korea
2. Fantuzzi, Italy
3. Fisia Italimplanti, Italy
4. Hitachi Zosen, Japan
5. Mitsubishi Heavy Industries, Japan
6. Weir Westgarth, UK
The scope of work for this project include modification, upgradation and rehabilitation of the power units and desalination units at the Doha East Power Station. The station has a capacity to generate 1158 MW of electricity and a desalination capacity of 42 million gallons a day.
HYUNDAI BAGS AHMADI CRUDE OIL FACILITY PROJECT
HYUNDAI HEAVY INDUSTRIES has been awarded the $ 1,244 Million contract by Kuwait Oil Company for building new Crude Oil facility at Ahmadi. This project, when completed, will increase the storage capacity by 11.4 million barrels. The scope of work involves Tanks,gravity lines, pumps, metering skids,offshore works and other general works.
AROMATICS PROJECT RE-TENDERED
THE E.P.C. contract for the Aromatics Project has been re -tendered Kuwait Aromatics Company(Karo), as all the three bids submitted during the original tendering were found to be above the budged amount.
The Joint Venture comprising of SK Engineering (Korea) and Tecnimont (Italy) was the lowest bidder with US$1,295 Million. As the project is wholly funded by the Government, the project requires the final approval of the Central Tenders Committee of the Government of Kuwait.
The two other bidders are GS Engineering and Construction (Korea). The bidders are requested to resubmit their bids in September 2005. It is understood that the scope of work has been reduced from the original bid documents with respect to the utilities element.
KOC Telemetry Work Awarded
Kuwait Oil Company has awarded the $48.2 Million contract for installing the Telemetry system for their oil. The duration of the project is two years.
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This is an Engineering-Procurement-Construction (EPC) contract and the scope involves installation of Supervisory Control and Data Acquisition (SCADA) system, a Management Information System (MIS)
and Control Systems to detect oil and gas leaks along the network of pipelines.
NEW REFINERY PROJECT BEING TENDERED
The new Refinery Project of Kuwait National Petroleum Company (KNPC) is being tendered. KNPC has invited international contractors to submit their expressions of interest for various Engineering, Procurement and Construction packages. The number of packages has
not yet been decided. The “Invitations to Bid” (ITB) are expected to be released by the beginning of 2006. Considered as the largest in the region and one of the largest in the world, the new refinery is expected to be commissioned by 2010.
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The new refinery project complex is comprise of process units, buildings, fuel systems, storage tanks, seawater cooling plants, wastewater and effluent water plant, a flare system, unit control rooms and substations.
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