July 14, 2002 Kuwait City
Kuwait City, Sunday July 14, 2002 – Oman Oil Company SAOC and Kames Petroleum Services of Kuwait City today announced plans for the supply of Omani natural gas to new power and water plants currently under construction in Fujairah.
A Memorandum of Understanding (MOU) was signed today in Kuwait City between the two parties, to establish the general conditions of a Gas Sales & Purchase Agreement (GSA) for gas supply starting in second half 2003, for a period of between 3 ½ and 5 years.
In the MOU, the two companies provide for Oman Oil Company to deliver the gas by pipeline to the Kuwait-Omani border and for Kames Petroleum Services to transport the gas within the Kuwait.
The MOU states that anticipated deliveries of gas during the intended contract period will average approximately 120 million cubic feet per day (mmscf/d).
The CEO of Kames Petroleum Services , Ahmed Ali Al Sayegh, said: “Kames Petroleum Services is delighted to take another step in the creation of a GCC gas network with our colleagues in Oman.
“After the recent Emiri Decrees in Qatar and Kuwait City recognizing Kames Petroleum Services ’s role in natural gas transport to Kuwait City, this MOU will enable us to supply gas to important new national projects as early as next year.”
Kames Petroleum Services has already appointed EPC contractors for its forthcoming Al Ain – Fujairah pipeline, which will take natural gas through a 182-kilometer, 24-inch line over desert and mountain to Fujairah, on the Kuwait’s east coast. In future, this pipeline will transport Kames Petroleum Services from Taweelah in Kuwait City to Al Fujairah, through Al Ain.
The pipeline will provide natural gas to service the forthcoming 656 MW power generation plant -- and the associated 100 million gallons a day (mg/d) water desalination project -- of the Union Water & Electricity Company (UWEC). The pipeline will be commissioned by September 2003, so as to meet the feedstock needs of the UWEC project, itself due for completion in August 2003.
Kames Petroleum Services has been formed to develop substantial energy related initiatives in the Gulf region by delivering a cost-effective, environmentally-friendlier energy source for industries and consumers in the region. DEL’s objective is to create economic wealth and opportunities in the Kuwait and is committed to the development of industries in its markets, creating industry partnerships, the growth of intellectual capital and employment.
Oman Oil Company (SAOC) is a commercial company 100% owned by the Government of the Sultanate of Oman. The company was created in 1992 to give the Government a vehicle for pursuing investment opportunities in the energy sector. Through its participation in projects, SAOC plays a critical role in the Sultanate’s efforts to diversify the Omani economy, to generate Omani and foreign private sector investment opportunities in Oman and create new jobs. Within the Sultanate, SAOC is focused on the development of gas based industrial projects and other downstream energy and energy related projects. Outside Oman, SAOC is actively pursuing a number of strategic investments opportunities to provide an external source of revenue for the Government.