Exclusive: “Aoun” asks the head of the Oil Corporation to give him documents related to the project to purchase 9 power generation units

Sada Al-Eqtisadiah newspaper exclusively obtained a letter from the Minister of Oil and Gas to the President of the Oil Corporation regarding his request to grant him documents related to the project to purchase 9 power generation units.

“Aoun” said during the correspondence that the Ministry of Oil and Gas received a copy of a correspondence from a member of the Owners Committee of the Waha Oil Company, the operator, on behalf of the foreign partner, “TotalEnergies,” addressed to the Chairman of the Management Committee of the Waha Oil Company, the operator, regarding a project to purchase nine (9) power generation units with a capacity of each one. (32MW), notifying him that the coalition of partners (Second Party) has supported the operator’s endeavors to purchase only two (2) units on the basis of the rapid mode in accordance with the proposed specifications and to postpone the decision to purchase the remaining seven units, until after holding the workshop in particular due to the lack of justifications for the urgent need. According to what was discussed and approved by the operator in the regular technical meeting for the year 2023 AD, he therefore objects to the operator’s recent intention to move forward to award the purchase order without the approval of the owners committee.

Adding: The expected contract value is subject to the approval of the Owners Committee in accordance with Article (B.3) of the Participation Agreement. It has been learned that the procedures for awarding a purchase order for two power generation units were carried out through direct assignment to a non-manufacturer supplier based in Houston – America, the name of the supplier is “SIRRA”, with the approval of the National Oil Corporation, and we did not find any information about this company about its capacity and experience in supplying such equipment, and Al-Waha Company does not have any previous dealings with it. What is strange is that Al-Waha Company was planning to purchase all units from this supplier two years ago, so is it It was stored by the supplier and no one could buy it.

According to the correspondence, in addition to the fact that this equipment is unusual, it is relied upon to supply the energy necessary for various production processes, and it is always purchased directly from specialized factories to ensure quality and subsequent maintenance. It is worth noting that the information confirms that the procedures for purchasing the remaining seven units were carried out through a limited tender with approval. The National Oil Corporation is in the process of awarding it to Siemens, the UAE branch.

Aoun also said: Based on the above and with reference to similar violations in the handling of other projects that have been alerted about, unless there is a defect in the management of Waha Oil Company projects and purchases, the National Oil Corporation bears responsibility for these violations, which are confirmed by the foreign partner in the subject of this letter. In light of your lack of commitment to informing us of such decisions, despite our repeated requests in particular, and your refusal to even respond to our calls for periodic meetings between the Ministry and the Board of Directors of the National Oil Corporation, during which information and discussion of the activities and policies for implementing the various operations programs in the sector are received, the correspondence from the Ministry of Oil and Gas is successively received. Various information, including information that calls into question the principles of transparency and adherence to the applicable legislation regulating the oil sector, which requires us to address you to clarify the truth and ensure the integrity of the procedures.

In conclusion, Aoun requested that he be provided with the study on the basis of which 9 new power generation units were purchased, and how the supplier “SIRRA” was chosen over other factories and suppliers in the global market, as well as the direct negotiation (assignment) file on the basis of which the order to purchase two units was placed. (2) Power generation on the “SIRRA” company. He also requested the limited tender file on the basis of which the purchase order for 7 power generation units was awarded, and why the insistence on bypassing the approval of the Owners Committee to purchase 7 power generation units with a prior agreement between the operator and the partner to postpone the purchase until After holding a workshop among specialists for further discussion and determining the appropriate number and timing for purchase.

You can also read the news in the source from the Sada Economic newspaper