LOCAL MANUFACTURERS AND LOCAL CONTRACTORS INTRODUCTION TO THE OPPORTUNITIES IN THE AROMATICS

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LOCAL MANUFACTURERS AND LOCAL CONTRACTORS
INTRODUCTION TO THE OPPORTUNITIES IN THE
AROMATICS OLEFINS II PROJECTS
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AROMATICS PROJECT PREVIEW
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PROJECT DESCRIPTION
THE AROMATICS COMPLEX IS BASED ON PROCESSING FULL
RANGE NAPHTHA FEED FROM KNPCS MINA ABDULLAH AND
SHUAIBA REFINERIES FOR THE PRODUCTION OF
PARA-XYLENE AND BENZENE, AS MAIN PRODUCTS, AND
LIGHT NAPHTHA, HYDROGEN, LPG, LIGHT ENDS AND
HEAVY AROMATICS AS SECONDARY PRODUCTS.
THE SELECTED TECHNOLOGY FOR THE AROMATICS COMPLEX
PROCESSES IS UNDER LICENSE FROM UOP LLC OF
DELWARE-USA.
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THE AROMATICS COMPLEX SHALL BE SITUED WITHIN THE
SHUAIBA INDUSTRIAL AREA NORTH/WEST OF THE EQUATE
PETROCHEMICAL COMPLEX
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SIMPLIFIED FLOW DIAGRAM
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PRODUCT BY-PRODUCT PRODUCTION SLATE
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PRODUCT PROPERTIES PARA-XYLENE
PARA-XYLENE IS A VOLATLE, COLORLESS LIQUID. IT IS
ONE OF THE ISOMERS OF XYLENE
PARAXYLENE IS USED AS A RAW MATERIAL FOR THE
PRODUCTION OF TEREPHTHALIC ACID (TPA) AND
SUBSEQUENTLY PURIFIED PHYTHALIC ANHYDRIDE (PTA)
WHICH IS A BASIC PETROCHEMICAL USED FOR THE
PRODUCTION OF POLYETHYLENE TEREPHTHALATE (PET)
AND POLYESTERS WHICH ARE WIDELY USED IN TEXTILE
MANUFACTURING AND PACKING INDUSTRIES.
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PRODUCT PROPERTIES AND APPLICATIONS BENZENE
BENZENE IS A COLOURLESS, FLAMMABLE, VOLATILE
LIQUID THAT IS INSOLUBLE IN WATER.
BENZENE IS USED TO PRODUCE NUMEROUS COMPOUNDS,
SUCH AS STYRENE, PHENOL, CYCLOHEXANE,
ALKYLBENZENES, CHLOROBENZENES, ETC.. WHICH ARE
USED TO PRODUCE PLASTICS, PHARMACEUTICALS,
PESTICIDES, AND OTHER CHEMICALS.
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AROMATICS COMPLEX PROJECT STRUCTURE,
IMPLEMENTATION PLAN AND SCHEDULE
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AROMATICS COMPLEX STRUCTURE

• THE AROMATICS COMPLEX SHALL BE ESTABLISHED AS A
  KUWAITI COMPANY UNDER THE NAME OF KUWAIT
  AROMATICS COMPANY

• PIC SHALL BE THE MAIN SHAREHOLDER WITH 80 OF THE
  SHARES, WHEREAS THE REMAINING 20 OF THE SHARES
  SHALL BE OWNED BY THE KUWAIT PRIVATE SECTOR.

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IMPLEMENTATION PLAN

• PIC HAS APPOINTED BECHTEL LTD-UK AS THE PROJECT
  MANAGING CONTRACTORS (PMC) OF THE AROMATICS
  COMPLEX PROJECT.

• THE INSIDE BATTERY LIMIT (ISBL) OF THE PROJECT
  SHALL BE CARRIED OUT UNDER ONE ENGINEERING,
  PROCUREMENT AND CONSTRUCTION (EPC) LUMP SUM TURN
  KEY (LSTK) CONTRACT.

• THE OUTSIDE BATTERY LIMIT (OSBL) SHALL BE CARRIED
  OUT UNDER ONE OR MORE PROCUREMENT AND/OR
  CONSTRUCTION CONTRACT(S) ON LSTK BASIS.

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• LIKE ALL K-COMPANIES MAJOR PROJECTS, THE
  AROMATICS COMPLEX PROJECT CONTRACTS SHALL BE
  TENDERED THROUGH KUWAIT CENTRAL TENDERING
  COMMITTEE (CTC).

• THE NAMES OF THE QUALIFIED EPC INTERNATIONAL
  CONTRACTORS FOR THE AROMATICS COMPLEX ISBL
  CONTRACT SHALL BE ANNOUNCED SHORTLY THROUGH CTC.

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PROJECT SCHEDULE

• THE AROMATICS COMPLEX PROJECT IS PLANNED TO REACH
  MECHANICAL COMPLETION BY THE 3RD QUARTER OF 2007,
  FOLLOWED BY COMMISSIONING, START-UP AND TEST-RUNS.

• THE INVITATION TO BID (ITB) FOR EPC-LSTK CONTRACT
  FOR THE (ISBL) IS EXPECTED TO BE ISSUED DURING
  THE 3RD QUARTER OF 2004 FOLLOWED SHORTLY AFTER BY
  THE ITB FOR OSBL.

• THE IBSL EPC LSTK CONTRACT AND OSBL LSTK CONTRACT
  AWARDS ARE EXPECTED TO BE SIGNED BY 1ST QUARTER
  OF 2005.

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AROMATICS COMPLEX PROJECT SCOPE OF WORKS AND
SERVICES
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GENERAL
PIC HAS COMMENDED THE MAIN EPC CONTRACTORS TO
PURCHASE KUWAITI MANUFACTURED PRODUCTS, PROVIDED
THAT-

• THE PRODUCT IS OF KUWAITI ORIGIN AND MANUFACTURED
  IN KUWAIT

• THE LOCAL PRODUCT MEETS THE TECHNICAL
  REQUIREMENTS AND SPECIFICATIONS OF THE PROJECT

• THE SUPPLY TERMS AND CONDITIONS ARE AGREABLE TO
  THE BUYER EPC-CONTRACTOR

• THE OFFERED PRICES ARE COMPATIBLE TO THOSE OF
  FOREIGN ORIGIN

• THE MANUFACTURER CAN MEET THE DEMAND QUANTITIES

• THE MANUFACTURER CAN MEET THE DELIVERY SCHEDULE

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GENERAL (Contd.)
THE EPC CONTRACTORS HAVE ALSO BEEN COMMENDED TO
SPEND 20 OF THE AGREED UPON LUMP-SUM CONTRACT
PRICE ON THE PURCHASE OF KUWAITI MANUFACTURED
PRODUCTS AND SERVICES FROM LOCAL KUWAITI
CONTRACTORS.
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LOCAL PRODUCTS
THE LOCAL MANUFACTURED PRODUCTS THAT MAYBE OF
INTEREST TO THE EPC-CONTRACTORS INCLUDE, BUT ARE
NOT LIMITED TO, THE FOLLOWING-

• PIPES FITTINGS

• ELECTRIC CABLES

• ELECTRICAL SWITCH BOARDS

• CEMENT

• BUILDING MATERIALS

• PAINTS

• INSULATION

• INDUSTRIAL GASES

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LOCAL SERVICES
THE LOCAL SERVICES THAT MAYBE SUBCONTRACTED BY
THE EPC-CONTRACTORS INCLUDE, BUT ARE NOT LIMITED
TO, THE FOLLOWING-

• CIVIL WORKS

• STEEL STRUCTURE FABRICATION

• ELECTRICAL WORKS

• MECHANICAL WORKS (PIPING, ERECTION, ETC..)

• INSTRUMENT WORKS

• INSPECTION WORKS

• SAND-BLASTING, CLEANING, PAINTING, INSULATION,
  ETC..

• SECURITY SERVICES

• CATERING SERVICES

• LOGISTICS SERVICES

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????? ??????? ??????? ???????? ??????????? ??????
LOCAL MANUFACTURERS AND LOCAL CONTRACTORS
INTRODUCTION TO THE OPPORTUNITIES IN THE
AROMATICS OLEFINS II PROJECTS