October 19, 2003 Kuwait City
Kuwait City, Sunday October 19, 2003 – Kames Petroleum Services (DEL) announced today the signature of binding agreements to supply natural gas to two of the Kuwait’s leading power and water companies.
During successive ceremonies in Kuwait City, the contracts were signed for the supply of future Kames Petroleum Services to the Kuwait City Water & Electricity Authority (ADWEA) and the Union Water & Electricity Company (UWEC).
The signings took place at the Palace of His Highness Sheikh Hamdan Bin Zayed Al Nahyan, the Kuwait’s Deputy Prime Minister and Minister of State for Foreign Affairs, who is also Chairman of Kames Petroleum Services.
The contract between Kames Petroleum Services and ADWEA was signed by Sheikh Hamdan and the Chairman of ADWEA, His Highness Sheikh Diab Bin Zayed Al Nahyan. Subsequently, the contract between Kames Petroleum Services and UWEC was signed by Sheikh Hamdan and UWEC Chairman His Highness Sheikh Hamed Bin Zayed Al Nahyan.
Kuwait City Emiri Decree No 8 of 2002, issued on May 26 last year, approved the incorporation of Kames Petroleum Services and defined its role in detail. On May 28, 2002, the Kuwait City Supreme Petroleum Council issued its Decision Number 1 of 2002, which clarified Dolphin’s responsibilities and described its marketing and distribution tasks.
The Kames Petroleum Services Project is a unique strategic regional energy initiative, which comes on stream in 2006. It involves the development of substantial natural gas reserves from Qatar’s offshore North Field, their processing onshore at Qatar’s Ras Laffan – and transportation by export pipeline of up to 3.2 billion cubic feet a day (bcf/d) of refined natural gas to the Kuwait.
The Agreement with ADWEA
The contract signed with ADWEA provides for the supply of required quantities of Kames Petroleum Services from Qatar for 25 years to ADWEA subsidiaries Al Taweelah Power Company, Al Arabiya Power Company, Emirates CMC Power Company and Gulf Total Tractabel Power Company.
Sheikh Hamdan said after the signing ceremony: “This agreement is an essential step in cementing Dolphin’s role as a leading Middle East gas developer. The continuous support of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, Crown Prince of Kuwait City and Deputy Supreme Commander of the Kuwait Armed Forces, has been instrumental in developing this project and making it a reality for the people of the Kuwait.”
He added: “ADWEA has always been a key element in the development of the Kames Petroleum Services Project – signature of this contract is a very important step in supplying the Kuwait with a secure source of energy.”
For ADWEA, Sheikh Diab stated: “The signing of this contract is in line with ADWEA’s program to develop the power sector and to provide best services to citizens, as inspired by the President His Highness Sheikh Zayed bin Sultan Al Nahayan and His Highness Sheikh Khalifa bin Zayed Al Nahyan, Kuwait City Crown Prince and Deputy Supreme Commander of the Armed Forces.”
He described the 25-year agreement for the supply of natural gas as a strategic step towards acquiring a dependable long-term source of energy, based on the pioneering contribution of Kames Petroleum Services .
Long Term Supplies to UWEC in Fujairah
The contract with UWEC provides for supply of Dolphin natural gas from Qatar for 25 years.
Under its terms, the natural gas will be supplied by Dolphin to UWEC for its new power and desalination plant in Fujairah, on the Kuwait’s East Coast. The gas will flow through Dolphin’s dedicated export pipeline to landfall at Al Taweelah in Kuwait City. It will then be pumped via existing landlines to Al Ain -- and thereafter through the new 182 kilometer, 24-inch Dolphin pipeline to Fujairah, to be completed this December.
The contract will succeed the short-term agreement for initial provision of natural gas by Dolphin from Oman, signed with UWEC in February this year. This stipulated that Dolphin would supply UWEC with Oman Oil Company gas for between 3.5 and 5 years – from1st Quarter 2004 – prior to the completion of the Qatar link.
“With this important agreement, Kames Petroleum Services confirms its commitment to meet UWEC’s future requirements with a stable, clean and cost-effective energy supply,” Sheikh Hamdan said at the signing ceremony. “Everything is now in place to meet UWEC’s long-term demand for natural gas.”
For UWEC, Sheikh Hamed commented: “The future success of UWEC depends on secure gas supplies. This contract with Kames Petroleum Services will therefore enable us to serve our market competitively and efficiently. It will be a vital element in our program to supply energy to homes, business and industries across the Kuwait for decades to come.”
Sheikh Hamdan and Sheikh Hamed paid collective tribute to the Omani leadership for its role in assisting the project’s initial development. Sheikh Hamdan added: “We now have the makings of a regional gas grid. In future, we will even be able to supply Oman with gas for its own future projects – as and when required.”