The oil sources say there are astonished at the unprecedented facilities provided by the Kuwait Oil Company in the form of approval of change orders that have exceeded the agreed percentage in several projects pertaining to the establish of flow lines of oil producing wells in northern Kuwait, pointing out that this trend is damaging to public money.
The sources said the main contract for the wells flow lines project was increased 6 times, under the pretext of emergency conditions and the operational need to complete the work until the new tender was floated, which was delayed for more than a year and a half, reports a local Arabic daily.
The sources added, after the tenders were floated, two contracts were awarded in northern Kuwait to one contractor, but it is surprising that after the signing of the two contracts and before starting the work, the value of these contracts was increased through change orders, which was almost 100% of the value of each contract, under the pretext of work pressure and the desire to increase production.
The sources indicated that a change order No. 7 was signed for the main contract, arguing that the signed contracts are insufficient and do not cover the operational demands of the wells.
The sources also indicated that after the signing of this change order, most of the work assigned to the two contracts signed previously and most of the materials related to them that were supplied by the Kuwait Oil Company for these contracts were transferred and given to the contractor to work in the change order No. 7, although the contractor’s contract is binding according to the contract to supply and install all the required materials and their installation there is no need to be supplied with materials by the Kuwait Oil Company.
The sources inquired about the mechanism by which the Change Order No. 7 was approved, and whether it was issued based on inaccurate information that was provided.