Kipic Seeks Fair Settlement To Claims Before Issue Escalates

The effects and repercussions of the Corona pandemic have begun to surface in the oil sector in the form of a controversy erupting between the Kuwait Integrated Petroleum Industries Company (KIPIC) and ‘Al-Zour Refinery’ contractors over claims from contractors.

In this regard, the Al-Rai has learned that KIPIC is still negotiating with contractors in the Al-Zour refinery project packages, about claims of about 500 million dinars, under the pretext the implementation of the project was delayed due to the pandemic and additional work from the contractors’ point of view which is being studied by the company.

The sources indicated these claims center on delay which the contractors blame on the measures taken by the state which harmed the performance of workers following full and partial lockdowns in some regions which affected the contractors plans to remain committed to deadlines as they put it, but the question remains about the delay before the pandemic.

The sources said the Al-Zour Refinery includes 5 packages in which the contractors’ claims vary, as the total of these claims is estimated at half a billion dinars or more. The length of time according to the procedures followed at the time, in addition to the difficulty of recruiting workers from abroad and other consequences associated with these government procedures, in which they had no income, but in the end affected their performance according to their point of view, in addition to the additional work on which they depend and assert their entitlement.

The sources added that negotiations are continuing with the contractors to find solutions before taking the issue to the concerned authorities in accordance with the contracts concluded with them, noting that on the other hand, there will be reciprocal claims from KIPIC, considering that it is best to reach consensual solutions, especially since the Corona pandemic and its subsequent procedures are considered a force majeure on everyone, whether the company or contractors.

 

SOURCE  :   TIMES KUWAIT

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