KPC OUTLINES SPENDING PLANS
Kuwait plans to invest more than $60,000 Million in its Hydrocarbon sector over the next 15 years as it seeks to ramp up both oil production and refining capacity. At the same time, it will embark on a wide-scale privatization programme for non- core assets in the sector.
The Deputy Chairman and Chief Executive officer of Kuwait Petroleum Corporation (KPC), Mr. Hani Hussain has stated that around $64,000 Million would be spent between now and 2020.
KPC plans to privatize or part- privatize some of its non-core subsidiaries including KUFPEC, its fertilizer plants and tanker fleets.
KNPC NEW REFINERY PROJECT
Kuwait National Petroleum Company (KNPC), a subsidiary of KPC, is implementing a major project for construction of one of the largest refineries in the world. The throughput of the refinery will be 615,000 barrels per day. The capital outlay is $ 6000 Million but may rise to $ 9000 Million.
Fluor Daniel, Sugarland, Houston is the Project Management Consultants. Technology and Process licenses are already obtained by KNPC and BEDD is completed by Fluor Daniel.
The Project will be constructed by four international Engineering, Procurement & Construction (EPC) Contractors, each contractor being responsible for one process area. On 23rd of April 2006, tender documents were issued to the qualified EPC Contractors.
The The 4 packages and EPC Contractors are:
Package 1- Crude Oil Distillation units, Sulphur Removal Units, Naphtha, Kerosene and Diesel Treatment Units
1) Technip SPA, Italy
2) Snamprogetti, Italy
3) Foster Wheeler, Italy
4) G.S Engg & Const Co, Korea
5) SK Engg & Const Co, Korea
Package 2- Hydrogen Production units, Sulphur Recovery & Manufacturing units, Diesel Gas Treatment units, Amine units and saturated gas units
1) GS Engg & Const Co, Korea
2) SK Engg & Const Co, Korea
3) Technicas Reunidas, Spain
4) Hyundai Engg & Const Co, Korea
5) Washington Group Industrial Inc (UK)
6) Stone & Webster Intl, USA
7) Petrofac Intl, UAE
Package 3- Public Facilities, Auxiliary units- Steam Generation , Nitrogen, Air, Water , Electricity Distribution, Control systems, Infrastructure.
1) Technip, Italy
2) Snamprogetti, Italy
3) Foster Wheeler, Italy
4) GS Eng & Const , Korea
5) SK Engg & Const, Korea
6) Stone & Webster Intl, USA
Package 4- Marine Export Tanks and facilities
1) Technicas Reunidas, Spain
2) Hyundai Engg & Const Co Ltd, Korea
3) Petrofac Intl, UAE
4) Hyundai Heavy Industries, Korea
5) Saipem SA, France
KOC SETS NEW CONTRACT TERMS
State upstream operator Kuwait Oil Company (KOC) has announced a new form of contract that it plans to use for all of its major future projects called the Enhanced lump-sum turnkey (LSTK) contract. It aims to alleviate contractor risk and attract more international contractors to the local market.
The KOC Deputy Managing Director for Administration and finance Mr. Ali Al Shammari has stated that as the improved LSTK Contract strives to create a contractual balance that results in a ‘win- win’ situation for KOC and its construction contractors.
The contract permits joint ventures and consortia to tender for and participate in KOC projects. It features incentive and reward schemes for certain projects, improvements in project execution and change order procedures and innovations in project management. Recently KOC awarded its first Engineering, procurement and construction management (EPCM) contract to Australia’s Worley Parsons.
KOC STRIKES GAS IN THE SOUTH
Kuwait Oil Company (KOC) announced on 20 April the successful drilling of a condensate/light oil well at Arifjan, close to the giant Burgan field in the south. Initial flows were reported at 5357 barrels a day and about 8 Million cubic feet a day of gas. In early March, KOC announced its first major discovery of condensate/light oil and non associated natural gas. Estimated at 13,000 Million barrels and 35 trillion cubic feet respectively, the deposits are located in the Sabriya, Umm Niqa, Bahra and Rawdhatain fields in the north.
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