State-owned Kuwait Oil Company (KOC) plans to slap a KD25-million ($82 million) fine on UAE-based Dodsal Group over its failure to complete a key oil project on time, said a report.
KOC will decide on the fine in line with the country's Tenders Law imposing a penalty of up to 10 per cent of the contract value for delays in execution, stated Arabic daily Al-Rai, quoting a source.
Dodsal Group, one of the leading EPC (engineering, procurement and construction) players in the energy, industrial and infrastructure sectors, was awarded KD250 million ($826 million) worth of contracts by KOC for a oil gathering project (GC-31) project in 2014.
The KOC move was in line with its ongoing plans to boost oil production capacity in North Kuwait from 700,000 barrels per day (bpd) to 1 million bpd by 2019. The project was scheduled for completion by the end of June this year.
KOC is preparing to enforce contractual terms for imposing a penalty on Dodsal for its delay in the execution of the project for nearly 15 months, the report said.
The penalty will be a maximum 10 per cent of the total contract value, it added.