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Article: Kuwait - Contract Terms.
- Article from:
- APS Review Oil Market Trends
- Article date:
- June 8, 2009
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In March 2007, KOC announced details of its enhanced lump-sum turnkey (LSTK) contract which it planned to use for all projects. Key changes included contracts providing for provisional sums where the nature and extent of the work could not be properly defined at the tender stage. A board now reviews disputes and options to cover commodity and currency price fluctuations.
The new contract was to attract big international engineering, procurement and construction (EPC) contractors to Kuwait's petroleum sector, which had been dominated by a handful of small firms. The change brought KOC's procedures in line with those of the IOCs and gave the company a better chance ...