KPC completes 25 years with major development plans
The Kuwait Petroleum Corporation (KPC) marked 25 years of its existence with an announcement of major projects involving oil capacity expansions and purchase of new tankers.
The state-owned KPC, one of the largest in the world also revealed long term plans to invite the Kuwaiti private sector to invest in the Hydrocarbon Sector along with the government.
“In Kuwait, we will work to increase our oil production from the northern fields and will seek help from foreign companies in this respect….we will also purchase new tankers to update our fleet and embark on other projects that will largely support the domestic economy”, said Mr. Hani Hussein, Vice Chairman of KPC in a statement carried by the Kuwaiti press.
He said KPC would invite Kuwaiti private investors into the oil sector to contribute to some projects along with the Public Sector.
No restrictions of funds for major capital expenditure
The year 2005 is expected to be one of the best for the construction industry in Kuwait. The Government of Kuwait is on a major infrastructure drive. For the local contractors, it is a great boom for their activities. All major projects are expected to go on as planned, without restrictions on funds whatsoever.
The most prestigious project planned is the tourist development of Failaka Island, which is considered to be the most ambitious infrastructure project in Kuwait in decades. Nearly one hundred international companies will be submitting their proposal by end of March 2005 for the estimated $3,300 million “Build-Operate-Transfer” (BOT) project.
The next prestigious and ambitious project planned is the development of Boubiyan Island at a cost of around $6,600 million. As part of the massive development, the client – The Divided Zone Agreements & Kuwaiti Islands & Mega Projects Development Team (DIZART) is also pushing ahead with a $2,100 million port on the island’s eastern edge. Documents for prequalification for the first infrastructure package were issued recently.
Another major impending capital project is the 36km Subiya Causeway. More than 60 companies are going to participate in the pre-qualification for the $1,500 million. Many consortia have been formed to bid for the project.
Another road project is also in the pipeline. The design consultancy contract for the Second and Third Ring Road extension is expected to be awarded by the end of the first quarter of the year, while tenders for the upgrade of the Fourth Ring Road and First Ring Road are expected by the end of the year. Later on, the Ministry of Public Works is also planning to upgrade the highway to the new Subiya town.
Another transport-related project planned is the development of an urban transit system for Kuwait City. It is yet to be decided whether this multi-billion dollar scheme will comprise a metro system or an elevated route. An official announcement in this regard and its financial structure is expected soon.
Other major projects planned include the construction of a new National Library, a 1050-bed hospital at South Surra, a new Airport Terminal, a new Headquarters for the Ministry of Education and the $ 3,500 million development of Kuwait University and Public Authority for Applied Education & Training Campuses.
Telemetry System for Wafra Oil Fields
Saudi Arabian Texaco / Kuwait Oil Company Joint Operations has invited bids from four international contractors to bid for an estimated $50million contract for supplying and installing a telemetry system covering the Wafra Oil Fields.
The award is expected by mid-2005. The four invited companies are:
1. Foster Wheeler, USA
2. Daelim Industrial Company, Korea
3. Petrofac International, Sharjah
4. SCADO
The lump sum turnkey project calls for supply and installation of Relief Systems, Power and Control Rooms, Supervisory Control & Data Acquisition Systems, Work Stations and a new Control Tower.
The project is aimed at preventing accidents such as the one occurred at the Rawdhatain Oil Fields in early 2002, wherein an explosion on a main pipeline reduced Kuwait’s oil production by about 600,000 barrels a day and caused an estimated damage of $250 million.
Bahrain – Qatar Pipeline by Kuwaiti-led Consortium
A consortium comprising of Kuwait Finance House (KFH), Kuwait Foreign Petroleum Exploration Company (KUFPEC), Petrocanada and Petronas (Malaysia) is considering a plan to build a gas pipeline linking Bahrain and Qatar.
The gas pipeline would serve KFH’s planned integrated petrochemicals, power and water complex in Bahrain as well as supplying surplus fuel to meet other requirements in the kingdoms.
The cost for the upstream scheme is estimated to be $1,300 million and the pipeline would most likely follow the proposed route for the Qatar-Bahrain Causeway, for which the two Governments have signed a Memorandum of Understanding. Discussions are underway between the consortium and the government officials. The scheme also suits Bahrain’s policy of encouraging private sector to participate in the economic development of the country.
Engineering, Procurement and Construction proposals are being finalized for the three elements of the downstream scheme, which are set to be awarded on a negotiated basis to GE Power Systems (US) for power, Weir Westgarth (UK) for desalination and Shaw International (USA) - formerly known as Stone & Webster - for the petrochemicals portion.
Olefins II First Package – Closing Date Extended
The closing date for submission of bid for the Olefins II First package has been extended to 18th March 2005. The two pre-qualified bidders are SK Engineering & Construction of Korea and Technip of France. Technip is also the provider of ethylene technology. Fluor Corporation of USA is the Project Management Consultant and Societe Generale is the Financial Adviser.
Mina Abdulla Refinery set for record profit
The Mina Abdulla Refinery of Kuwait National Petroleum Company (KNPC) is all set to reach a profit of $850 Million for the year 2004, according to Mr. Abdulmohsin Khajah Executive Assistant Managing Director of the refinery.
Speaking to the media on the occasion of receiving the Best Middle East Refinery Award, he said the refinery realized historic profits that exceeded $710 million within 10 months period, starting April 2004 and ending January 2005, or a marginal profit that exceeds $9.75 per barrel for refining processes.
He added that revenues exceeded the highest levels realized by most international markets during the same period.
The official stressed that Mina Abdulla Refinery aims at achieving the strategic goals of Kuwait National Petroleum Company through oil refining processes and producing high-quality oil products for both local and international markets in accordance with international standards.
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Meanwhile, the Director of the refinery’s Operations Division Mr. Sami Malallah said that the division aims at running the best operations at level of refinery units, increasing the added value foroil products, and rationalizing operation costs against the upgrading of production levels.
To achieve these goals, the official said, the division aims at renovating the units, improving operation systems, and continuously monitoring quality control to cope with any developments.
Kuwait’s economic growth highest in Gulf
Kuwait achieved the highest economic growth rate among the GCC countries, according to a study conducted by Gulf Studies Center, Kuwait. The study anticipated that Kuwait would manage to cut down inflation rate to 1.6 percent in 2005 from 1.7 per cent in 2004. The study added that Kuwait’s economic growth hit a record of 10.1 percent last year, almost double of 2002’s 5.4 percent.
The success is attributed to the surging oil prices in addition to the relative political stability in the region. Kuwait’s GDP would jump to $47.9 billion in 2005 from $45.9 billion the previous year.
The study cited that there has been an increase of 30.5% in Kuwait’s oil and non-oil exports.
Hypertensives fare better early after Heart Attack
Among individuals who have a heart attack for the first time, those with high blood pressure (Hypertension) experience fewer in-hospital complications that do individuals who have normal blood pressure, according to Italian researchers.
This could be due to a “less severe extension” of the affected area of the heart”, they say. Hypertension clearly increases the risk of acute heart attack, but its role during and after a heart attack is less clear, according to Dr. Salvatore Novo of University of Palermo and colleagues.
They compared in-hospital outcomes in 915 hypertensive and 915 normotensive patients after their first heart attack. Hypertensive patients were significantly more likely to have diabetes, unfavorable lipid profiles, renal failure, peripheral arterial disease (hardening of the blood vessels in the legs), cerebro-vascular disease and chronic obstructive pulmonary disease than were the normotensive patients.
Despite the high prevalence of these risk factors, hypertensive patients had significantly lower rates of card and death than did normotensive patients.
“To the best of our knowledge, the current report is the first to indicate such a clear-cut significant difference in outcome of first-time (heart attack) in hypertensive and normotensive subjects ”, the authors conclude. They say further studies are needed to define more clearly the possible reasons for these differences.
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