11 June 2006
KUWAIT: Kuwait Oil Company (KOC), one of the world's leading producers of hydrocarbons, introduced its enhanced Lump Sum Turn Key (LSTK) Contract through a presentation to its Major International Western contractors. The presentation was held in London on June 6.
Ali D Al-Shammari, KOC's spokesperson and Deputy Managing Director (Administration & Finance), stated, "As conditions for the construction of international projects continue to change, and as international demand for energy continues to increase, KOC has introduced a programme for enhancing its project management and administration procedures, as well as introducing the enhanced LSTK Contract." According to Al-Shammari "the improved LSTK Contract strives to create a contractual balance that results in a 'win-win' situation for KOC and its Major International contractors."
"KOC trusts that contractors will recognise the improved contractual conditions and administrative procedures of the LSTK Contract, which allocate project risks in a balanced manner that is based on each party's ability to influence or manage such risks," Al-Shammari added. The enhanced LSTK Contract permits joint ventures and consortia to tender for and participate in KOC's projects. It also features incentive and reward schemes for certain projects, improvements in project execution as well as innovations in project management.
The presentation was delivered by KOC officials, that included Jasser Al-Jasser - Manager Commercial Affairs, Yousef Ali - Manager Engineering, Adly Abu Amarah - Team leader Contracts, Mohd Sadek - Senior Specialist Contracts, Chief Multimedia officer Mutlaq Al-Qahtani in addition to International PMC's Fluor and AMEC as well as the international law firm, Backer & McKenzie. Representatives from Kuwait Petroleum Cooperation and KOC's London Office attended as well. The presentations aimed to update Major International Western contractors on KOC's strategy, upcoming projects and how the improved LSTK Contract supplements that strategy, as well as specific discussion of technical aspects of the enhanced LSTK Contracts.
KUWAIT: Kuwait Oil Company (KOC), one of the world's leading producers of hydrocarbons, introduced its enhanced Lump Sum Turn Key (LSTK) Contract through a presentation to its Major International Western contractors. The presentation was held in London on June 6.
Ali D Al-Shammari, KOC's spokesperson and Deputy Managing Director (Administration & Finance), stated, "As conditions for the construction of international projects continue to change, and as international demand for energy continues to increase, KOC has introduced a programme for enhancing its project management and administration procedures, as well as introducing the enhanced LSTK Contract." According to Al-Shammari "the improved LSTK Contract strives to create a contractual balance that results in a 'win-win' situation for KOC and its Major International contractors."
"KOC trusts that contractors will recognise the improved contractual conditions and administrative procedures of the LSTK Contract, which allocate project risks in a balanced manner that is based on each party's ability to influence or manage such risks," Al-Shammari added. The enhanced LSTK Contract permits joint ventures and consortia to tender for and participate in KOC's projects. It also features incentive and reward schemes for certain projects, improvements in project execution as well as innovations in project management.
The presentation was delivered by KOC officials, that included Jasser Al-Jasser - Manager Commercial Affairs, Yousef Ali - Manager Engineering, Adly Abu Amarah - Team leader Contracts, Mohd Sadek - Senior Specialist Contracts, Chief Multimedia officer Mutlaq Al-Qahtani in addition to International PMC's Fluor and AMEC as well as the international law firm, Backer & McKenzie. Representatives from Kuwait Petroleum Cooperation and KOC's London Office attended as well. The presentations aimed to update Major International Western contractors on KOC's strategy, upcoming projects and how the improved LSTK Contract supplements that strategy, as well as specific discussion of technical aspects of the enhanced LSTK Contracts.
© Kuwait Times 2006
