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Kuwait’s oil projects halt as Central Tenders Authority faces disruption

The failure to reconstitute the board caused paralysis in oil projects, tenders, and contracts worth over five million dinars, usually handled by the agency.

  • The disruption in the Central Agency for Public Tenders operations following the expiration of its members’ terms, who used to convene weekly to approve project statuses, has had a negative impact on the oil sector and numerous related production operations projects.

  • Oil and gas production projects cannot afford delays in their procedures, as they are integral to plans and strategies aimed at increasing oil and gas production in alignment with the directives of the Petroleum Corporation’s 2040 general strategy.

Reliable sources have confirmed that the Central Agency for Public Tenders has been disrupted due to the expiration of the Board of Directors’ membership over four months ago. The failure to reconstitute the board has resulted in the paralysis of numerous oil projects, tenders, and contracts valued at over five million dinars, all of which are typically awarded through the agency.

The same sources mentioned that the disruption in the tender body’s operations following the expiration of its members’ terms, who used to convene weekly to approve project statuses, has had a negative impact on the oil sector and numerous related production operations projects. This disruption has affected the offering and awarding of tenders, particularly those linked to crucial projects.

Negative repercussions

The sources emphasized that oil and gas production projects cannot afford delays in their procedures, as they are integral to plans and strategies aimed at increasing oil and gas production in alignment with the directives of the Petroleum Corporation’s 2040 general strategy. They highlighted that disruptions and delays in these pre-planned strategies could have adverse repercussions on the state’s economy, given that oil is its primary resource and the oil sector serves as the backbone of the national economy.

Continuing, they stated that the Petroleum Corporation and its subsidiaries are committed to preserving, utilizing, and enhancing petroleum wealth through optimal means to foster the development of the state’s resources and bolster its national income.

Threatened projects

It warned that disrupting the work of the Central Tenders Agency threatens many projects, including the interruption of production facilities that require regular maintenance. This disruption could negatively impact the continuity of production operations as per plans and their usual course in alignment with strategies.

Sources emphasized that among the vital projects that cannot be delayed is the flow lines project for the gathering centers. Failing to connect the wells and link them to the gathering centers could lead to a production loss of over 250,000 barrels per day from those wells.

Sources added that several maintenance contracts for oil gathering centers have remained inactive for months and have yet to be awarded. This delay will lead to the interruption of essential maintenance work at these centers, potentially resulting in an impact and production loss of over 600,000 barrels per day.

It’s worth noting that the central agency is responsible for issuing public tenders, receiving, deciding on, awarding, and canceling bids. Additionally, it handles extending and renewing administrative contracts, changing orders, classification, supervising qualifications, and authorizing public entities to conduct contracting.

Measures and procedures

The sources confirmed that the Petroleum Corporation and its subsidiaries are eager to take all necessary measures and procedures to maintain and ensure the continuity of production operations, avoiding any interruptions or disruptions to vital projects. However, these projects require the conclusion of contracts, renewal or issuance of change orders, which can only be done through the central tendering apparatus currently.

Kuwait Oil Company plans to issue tenders worth $2.7 billion

The sources explained that Kuwait Oil Company alone is planning to issue tenders worth more than $2.7 billion, aiming to enhance and achieve production strategies. They emphasized that these types of projects cannot afford delays.

Additionally, sources added that for the energy sector in Kuwait to realize its full potential, it must complete procedures related to stalled tenders to progress with projects.



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