Kuwait Will Invest 11.5 Billion Dollars In Oil And Gas Projects

According to MEED magazine, Kuwait has allotted roughly 11.5 billion dollars to carry out oil and gas projects over the next several years. These projects are broken down into many stages based on the amount of progress made.The examination of bids includes $424 million for the design phase, $492 million for the prequalification of contractors for the main contract, $1.641 billion for planning and preliminary designs, and $8.317 billion for projects in the study phase.

In a similar development, MEED magazine revealed that three American, Australian, and French multinational corporations have made their final proposals to hold significant project management consultancies in Kuwait's oil and gas industry. The Kuwait Oil Company offered the contract to include both the original engineering and design services as well as the project management work for the major KOC project infrastructure.

According to the publication, the following firms—American KBR, Australian Worley, and French Technip—submitted their bids on June 22. Conversely, Fluor, an American firm, and Wood Group, a British firm, were both disqualified from the tender because they had submitted the highest bid in an earlier round.

KOC submits bids for a unique project management contract using the System of Practice. The process functions as a reverse multi-round auction in which enterprises must cut their prices or maintain them for each round, all prices are made public to bidders after each round, and the higher-priced bidders are compelled to withdraw as bids fall.

Since it was first announced, the contract has gone through substantial delays. In the first round of bidding, the Kuwait Oil Company first rejected the proposals given by the American firms Fluor and Technip of France and initially approved the bids provided by:

• 88.41 million dinars' worth of US KBR (292 million dollars)
• Valued at 83.46 million dinars, the British Wood Group
• Having a value of 81.3 million dinars, the Australian Worley

Fluor continued to be excluded from the bidding process, as disclosed by MEED in February of this year. In May, it was discovered that the Cabinet's Grievance Committee had sought a copy of records and material linked to a complaint by Fluor regarding its prolonged exclusion.

Due to their inability to change the bid guarantee amount for the contract from 2.50 million dinars ($8.2 million) to 2.65 million dinars ($8.7 million), the Central Agency for Public Tenders initially disqualified Fluor and Technip from competing.

The two businesses then filed a dispute with the Council of Ministers' grievance committee, saying they were not notified of changes to the tender's criteria. After both firms filed a complaint, the reason for permitting Technip to participate in the bidding procedure alone was unknown.

Due to the growing effects of the Corona pandemic and the global shift to clean energy, on the one hand, and the ongoing problems related to Kuwait's internal political situation, on the other, there have been few announcements of significant projects in the oil and gas sector over the past few years. This has hampered the decision-making process, including reforms to support the local economy because of opposition positions in the National Assembly.

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