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Program management contract for gas oil pipeline

 01-May-2006
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Kuwait Oil Company (KOC) has awarded WorleyParsons a US $222 million (KD 64,402,851) contract to provide engineering, procurement services and construction management for their gas oil pipeline project.

This contract price includes US $166 million (KD 48,000,000) as a provisional sum for procurement of major equipment and materials. The project scope is to install two Export Gas Oil (EGO) pumps at the Kuwait National Petroleum Company’s Mina Al Ahmadi refinery; a fiscal custody transfer system; a 200-kilometre, 20-inch pipeline for pumping the EGO to a new gas turbine at the Subiyah Power station; and all associated works. The project represents an investment of approximately US $ 345 million (KD 100 million).

WorleyParsons will act on KOC’s behalf by providing design concepts, preliminary and detailed design, procurement services for critical and long lead equipment, and construction management and supervision for the project. WorleyParsons’ engagement will span from project planning to testing, commissioning, and performance testing. All purchase orders for the critical and long-lead equipment will be placed in KOC’s name and on its behalf on reimbursable cost basis.

The basic and detailed engineering, as well as the procurement service activities, will be conducted out of WorleyParsons’ Abu Dhabi Office, while all field activities will be handled by WorleyParsons’ Kuwait team.

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