Audit Bureau Warns Of Shortcomings That Cause Change Orders In Petroleum Contracts

The Audit Bureau has called on the Supreme Procurement Committee of the Kuwait Petroleum Corporation, which is concerned with approving tenders and projects before transferring them to Central Agency for Public Tenders (CAPT), to study the reasons for delaying capital projects in some oil companies and the consequences thereof, and to take the necessary measures to avoid this, including circulating to all oil companies an evaluation qualifying defaulting contractors and dealing with them in future contracts.

The Bureau pointed out poor performance of some of the main contractors or subcontractors and their lack of commitment, resulted in the issuance of many change orders as well.

The report revealed the Kuwait National Petroleum Company incurred 12.83 million dollars in losses due to burning 93.345 metric tons of gases during fiscal 2019/2020 produced in the refineries and gas liquefaction plant of the company. The report also said the company did not achieve the targeted refining plan with a decrease of 5.407 thousand tons at a rate of 12.7 percent compared to the amount of crude oil planned to be refined, in addition to an increase in the actual production quantities than planned for products whose selling price is less than the average purchase price of crude oil, despite the losses incurred by the company as a result of its production.

He noted there are redundant and dispensable materials included in the stock balance, which have not been disbursed for use or benefit from despite the expiry of the date specified for their disbursement, noting that the value of these materials for one of the companies was to 12.035 million dinars.

 

 

 

SOURCE  TIMESKUWAIT

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