Kuwait approves series of projects worth $9.9bn

Kuwait has approved the construction of a series of power plants, desalination facilities and other infrastructure projects worth a total of around $9.9 billion, local media has said.The country is planning to add around 3,580 megawatts of capacity and waste treatment and developments for the education ministry, reported the Kuwait Times.
The ministry did not set a timescale for most of the initiatives and said that 50 per cent of the finances will be raised through stock market offerings.

Kuwait is struggling to meet soaring demand for electricity and the planned projects will add around 3,580 megawatts of capacity.Other projects expected in the pipeline include the second phase of the gas-fired Az-Zour North power and desalinated water plant that will have an initial capacity of 1,800 megawatts.

It will also build the first phase of the Khairan power plant with 1500 MW of capacity, which will use different types of fuel, and the Al Abdaliyah power plant with a capacity of 280 MW, of which 60 MW will be from solar energy while the rest will be fed by gas.

Oil Minister Ali Saleh Al-Omair said in June that Kuwait plans to generate 15 per cent of its energy needs via renewable sources by 2030, with the first of up to 100 solar-powered fuelling stations operating by 2017.
A pilot 70 megawatt project in the Shagaya desert zone west of Kuwait City was expected to be completed by next year, according to the Kuwait Times.

Al-Omair also said that preparatory works of partnership projects between Public and private sectors have supported initiatives to help set up a body to run these projects.He said: “The body has formed its structure in accordance with the international standards to help Kuwait implement projects in a competitive and professional manner.”

The Deputy Prime Minister and Minister of Finance said also that the body’s higher committee has approved six projects and their tenders were offered at the beginning of this month.He affirmed that these projects will be co-implemented by both Public and private sectors as the State of Kuwait seeks to boost the participation of the private sector in sustainable development.

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KNPC awards USD 500 million design contract.

UK-based Amec Foster Wheeler has been awarded contract worth an estimated USD 500 million contract to carry
out the front-end engineering and design (feed) for a project to construct a local marketing depot for Kuwait
National Petroleum Company (KNPC) located at Matla in the north of Kuwait.


As per news report, the deal was awarded in August 2014 but was not announced publicly due to a confidentiality
agreement. The project aims to meet the growing demand for petroleum products in the local market, as well as
to maintain the maximum strategic stock in depots and to cut transportation costs.

The scope of work includes:
 Local market depot
 Cross country pipelines from the Mina al-Ahmadi and Shuaiba refineries
 New pumping facilities
 Storage tank

Via : Staff Reporter

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Pakistan to sign 15 year deal to import gas from Qatar.

Pakistan will sign a deal next month to import gas shipments from Qatar for the next 15 years, a top Pakistani energy official said Wednesday, an agreement that should help tackle Pakistan’s chronic gas shortages, said Reuters.

The flexible contract will allow Pakistan to import between 200 and 400 million standard cubic feet per day (mmcfd), said Mobin Saulat, head of state-run Inter State Gas systems, which oversees the pipelines.

He would not comment on the price, but said it was “very competitive”. “It’s finalised and there’s just a couple of formalities. We should be able to sign it in August,” he said. Pakistan currently faces a gas shortage of around 2,000 mmcfd per day.

Pakistan has imported seven spot cargos of liquefied natural gas (LNG) from Qatar since the completion of an LNG terminal in the southern port city of Karachi in April, said Saulat. “It’s fully operational,” he said of the terminal. “It’s helped a lot in meeting the deficit.”

Pakistan’s gas companies are also upgrading their distribution system, he said, and Pakistan is expected to sign a government-to-government agreement with Russia to build a new pipeline from Karachi to the provincial capital of Lahore next month, he said. Russian company Rostec is interested in building the pipeline, he said.

Via: Reuters

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Kuwait awards $11.5 bln contracts to build al-Zour refinery largest in GCC.

Kuwait National Petroleum Co (KNPC) awarded 3.48 billion dinars ($11.5 billion) worth of contracts on Tuesday to build the al-Zour oil refinery, which would be one of the largest in the Middle East, Kuwaiti state news agency KUNA reported.

Construction of the 615,000 barrel per day refinery could be a major boost to Kuwait’s economy, which has slowed in recent years by political tensions and is now grappling with a blow to state finances from low oil prices.

The project was originally planned more than a decade ago but has been delayed repeatedly by bureaucratic and political problems, including conflict between Kuwait’s parliament and the cabinet.

State-owned KNPC commissioned a consortium including Spain’s Tecnicas Reunidas, China’s Sinopec and South Korea’s Hanwha Engineering and Construction to build the main process units of the refinery, KUNA said. That contract is worth 1.28 billion dinars.

A consortium including Daewoo Engineering and Construction , Hyundai Heavy Industries and Fluor Corp of the United States will build support units and infrastructure services for 1.74 billion dinars.

Another consortium including Hyundai Engineering and Construction, SK Engineering and Construction and Italy’s Saipem was awarded a 454 million dinar contract to build a marine export terminal, KUNA quoted KNPC spokesman Khalid al-Asousi as saying.

Asousi said he expected the last major contract for the project to be awarded in the next two weeks, while signing of all contracts was to take place in early October.

Kuwait’s Supreme Petroleum Council agreed this month to increase al-Zour’s total budget to 4.87 billion dinars from about 4 billion dinars.

Officials have said the refinery is to start up by late 2018 or early 2019, providing low-sulphur fuel to power stations, but it is not clear if that timeframe can still be met.

Oil minister Ali Saleh al-Omair told KUNA this month that there were proposals to build a petrochemical complex alongside the refinery.

Via : KUNA

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Saudi-Kuwait oilfield(Wafra Joint Operation) staff ‘told to take long leave due as shout down extended.


The shut down of the jointly-operated Wafra onshore oilfield between Saudi Arabia and Kuwait, is set to be extended into next month after the distribution of a memorandum telling all non-vital staff to take leave as of August 1.

The Wafra field was first shut for maintenance on May 11 for two weeks in a move apparently aimed at giving the Gulf Opec allies time to solve a longstanding dispute.

On May 27, Chevron, which operates the oilfield on behalf of Saudi Arabia, said Wafra would remain shut until difficulties in operating there are resolved.

The memorandum, which the newspaper said it had obtained, was signed by Chevron and the Kuwaiti Gulf Oil Company, which represents the Kuwaiti side of operations.

The document also said staff would take “open-ended” leave if production did not resume by end-August, a step aimed at reducing costs amidst the shutdown, the paper reported.reported. Wafra representatives could not be immediately reached by Reuters for comment.

The Neutral Zone is the only place in Saudi Arabia and Kuwait where foreign oil firms have equity in fields, which are otherwise owned and operated by state oil companies. Crude output is divided equally between the two countries.

It survived the nnationalizationof the Saudi oil industry in the 1970s. Since then, Saudi reserves of 264 billion barrels, about a fifth of the world’s proven oil reserves, have been off limits to international oil companies.

Industry sources say Kuwait was angry because it was not consulted when the Chevron concession to operate Wafra was renewed by Riyadh in 2009 until 2039.

But the row goes back further to 2007, when a land dispute between Kuwait and Saudi Arabia led to a delay in Kuwait’s plans to build an oil refinery.

Chevron holds a lease on some of the land on Kuwait’s side which was earmarked for the new refinery.

The shutdown of Wafra, which has an output capacity of about 220,000 bpd of Arabian Heavy crude, came after the oil output from another jointly operated field, Khafji, was stopped in October to comply with environmental regulations.


Via : Reuters



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Petrofac Bags $780M EPC Contract from Kuwait Oil Company.

Petrofac Ltd., the international oil and gas services provider, announced Friday it has received an award notification for Kuwait Oil Company’s (KOC) manifold group trunkline (MGT) system in the north of Kuwait.

The lump-sum engineering, procurement and construction (EPC) project, valued at approximately $780 million, is integral to KOC’s plans to increase and maintain crude production over the next five years. Three new gathering centers (GCs), which form part of the broader project, are already under construction with Petrofac executing the EPC contract for GC 29.

Due for completion towards the end of 2017, the MGT system will provide the feedstock to each of the GCs via three independent networks of intermediate manifolds and pipelines. Each of the three GCs will be capable of producing around 100,000 barrels of oil per day together with associated water and gas.

Marwan Chedid, chief executive of Petrofac’s Engineering, Construction, Operations and Maintenance division, said: “We have a long track record in Kuwait which extends over the last 15 years and the MGT award represents our twelfth project in the country. Kuwait is, and will continue to be, one of our core markets and is of strategic importance to Petrofac’s ambitions in the Middle East. We look forward to working with KOC to deliver this project safely and on schedule.”

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