December 19, 2022 [Arab Times] – A report issued by the Audit Bureau shows the Kuwait Oil Company has 86 oil storage tanks with a 31.57 million barrels of oil storage capacity, reports Al-Anba daily.
The report said that the capital cost of oil tanks in Kuwait was 198.1 million dinars, until November 2021, distributed over 108.2 million dinars for the southern reservoirs hangar and 89.8 million dinars for the northern reservoirs hangar.
It is clear from the presentation made by the Audit Bureau that the southern hangar represents the largest percentage in terms of the relative importance of the capital cost of oil tanks, as it amounted to 55% of the total capital cost at the company level, while it reached 45% in the northern hangar.
The depreciation complex for the northern reservoirs hangar is about 46%, or a total of 41.2 million dinars, of the capital cost of 89.8 million dinars. As for the southern hangar, the depreciation complex is about 65%, or the equivalent of 70 million dinars, of the capital cost, which is 108.2 million dinars.
The capital cost amounts to 56%, equivalent to 111.3 million dinars, out of the total cost of 198.1 million dinars.
As for the age groups of tanks that are more than 40 years old, they represent 41% of the total number of tanks in the company, noting that their storage capacity represents 19.6% of the total storage capacity of oil tanks, while oil tanks in the age group from 20 to 40 years represent about 27% Of the total tanks in the company, knowing that their storage capacity represents 27.8% of the total storage capacity of oil tanks, while tanks in the age group less than 20 years are about 32% of the total number of tanks in the company, their storage capacity represents 52.6% of the total.
The report revealed that the planned and actual maintenance expenses for oil tanks amounted to 5.2 million dinars during the past 5 years, as it amounted to 1 million dinars during the last fiscal year.
The Audit Bureau’s report aims to evaluate the efficiency and effectiveness of maintaining oil tanks at the Al-Kuwait Oil Company in accordance with the regulatory frameworks and evidence.
The Audit Bureau report issued 4 recommendations associated with high risks — work to address the reasons that led to the delay in the supply of spare parts for tanks; the need to adhere to the standard period for the maintenance of old oil tanks, which exceeded the life span; the need to take what is necessary for the periodic improvement of specifications and aspects related to security and safety and the need to take the necessary measures towards oil tank maintenance contractors.
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