Kuwait – Mubasher: Jeeran Holding said that its 99%-owned subsidiary United Gulf Construction Co has signed KWD 9.52 million worth contract for an oil project.
The contract was inked with UAE’s Essar Projects to execute Al-Zour Refinery Project by Kuwait national Petroleum Company (KNPC), the company said in a bourse statement issued on Thursday.
Jeeran clarified that there will be KWD 7.9 million worth variation orders which will be granted to the company from the main contractor within two months from signing the deal, and after KNPC’s approval of, the statement added.
The main contract has duration period of one year, while the variation orders can have different durations.
A profit margin of 4% is expected by the end of the contract’s duration as a financial impact, Jeeran said, adding that the profit margin from the variation orders will be determined once granted to the company.
