OIL Markets
Oil prices have moved down during the first week of September 2005 in the aftermath of Hurricane Katrina, after the refineries in the Gulf of Mexico restarted production and certain other countries have offered to supplement the supplies.
The refineries in the Gulf of Mexico could make it to 70 per cent of their capacities during the first week of September 2005, contrary to the expectations that many refineries would one off-line for many months after Hurricane Katrina.
It appears that a consensus is emerging among the member countries of OPEC to increase the production ceiling in the next meeting of the OPEC.
UPGRADING OF MASTER PLAN FOR SOUTH EAST KUWAIT PRODUCTION FACILITIES
A Contract has been awarded to Worley Parsons of Australia to review and upgrade the master plan for the exiting pro duction facilities in the oil fields of South-eastern Kuwait. The duration of the contract is 18 months, which includes development of new Infrastructure Master Plan, suggestions for an artificial lift, feasibility study for replacement of old equipment, replacement of existing pipelines and crude manifold systems and facilities for the reinjection of gas.
The project envisages to increase the production capacity in the area by 300,000 barrels a day (b/d) to 1.6 million b/d and later on by another 300,000 b/d. The South-Eastern Kuwait encompasses the Burgan Oil Field (world’s second largest oil reservoir), Umm Gudair and Minagish oil fields.
KUWAIT UNIVERSITY CAMPUS DEVELOPMENT
The following bidders have submitted their commercial and technical bids for the development of Kuwait University’s new campus with an estimated cost of US$3000 Million:
1. MACE International, UK.
2. Bovis Lend Lease, Australia.
3. Hill International, USA with SDPM & Quality Project Management.
4. Turner-Projacs, USA
5. Morganti with KEO Internatinal Consultants.
The scope of the contract covers supervision of the master-planning, design and construction of the proposed facilities.
The new University Campus will be coeducational and aimed at accommodating 40,000 students.
SUBIYA POWER STATION PROJECT
The tender for the new Power Station Project at Subiya has been issued. This will be a 1500 MW power station and the duration of the project is two years. The award is expected to be some time during the first quarter of 2006.
Following are the companies pre -qualified to participate in this tender:
1. Alsthom, France.
2. G.E. Power Systems, USA.
3. Mitsubishi Heavy Industries, Japan
4. Siemens, Germany.
This is an Engineering, Procurement and Construction (EPC) contract with an estimated value of US$ 860 million to US$1030 million.
DISCUSSIONS ON LPG TRAIN PLANS BY KNPC
Kuwait National Petroleum Company (KNPC) held discussions with various contractors regarding the contracting strategy for the fourth Liquefied Petroleum Gas (LPG) Plant in Mina Al-Ahmadi Refinery.
ABB (Europe), AMEC (UK), Hyundai Engineering (Korea), GS Engineering (Korea),SK Engineering (Korea), Snamprogetti (Italy), Techint (Italy), Tecnicas Reunidas (Spain) and Technip (France) have participated in the discussions.
Discussions were mainly on the strategy whether to tender the contract on a lump sum turnkey basis or cost reimbursable basis. However, no decisions were taken during the meeting and KNPC will, in due course, inform the contractors of their decision.
The cost of the project is estimated to be in the range of US$600 to 700 million and the project will be a Engineering, Procurement and Construction (EPC) contract.
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