Technology International Incorporated 0f Virginia
Kuwait

Establishment of Technical Services Centers and Industrial Workshops for the Oil Sector: A Feasibility Study

Industrial Bank of Kuwait (IBK) and Kuwait Foundation for the Advancement of Sciences (KFAS); Contract to Safe Oil International (SOI)

Project Manager: Dr. Rasheed Salem Al-Ameeri, Safe Oil International (SOI)

Project Team: Dr. Soliman Mohammed Shams-el-Din, Syed N. Hussain, Safe Oil International (SOI);

Subcontract to TII-VA:

TII-VA Team: Dr. Abdo A, Husseiny, TII-VA; Dr. Y. Aksoy, Professor, A. B. Freeman School of Business, Tulane University, New Orleans, LA; Alfred M. "AL" Allen, President, Energy Technical Services, Inc. (ETS), Lafayette, LA and Houston, TX.

Publication

Abdo A, Husseiny and Y. Aksoy (November 1996). Establishment of Technical Services Centers and Industrial Workshops for the Oil Sector: A Feasibility Study. TII-VA report TILA-96005-SOIK.

Summary

The idea of establishment of technical service centers and industrial workshops has been floating around in the oil sector for some time.  In line with this idea, this study presents a formal analysis of the establishment of a new private workshop for maintenance and spare parts needs of the oil sector.

While we focused on the needs of the oil sector due to its dominance in our economy, the proposed facility would also serve other markets, such as power and private industries.  A major portion of maintenance and repair work is done in-house in oil sector.  High tech jobs are either done overseas or on-site in Kuwait by overseas contractors.   Most of the maintenance contracts are for manpower.  While 95% of the top and the middle management are Kuwaitis, the technical employees are mostly expatriates.   The oil sector has not yet given high priority to systematic technical training and utilization of the national workforce.

We observed an increase in demand for oil in global and local markets.   Working with the oil sector we assessed the demand for a new workshop in the market.    Demand for spare parts manufacturing is limited to small items whose production does not require high technology.  The option of buying is still optimal for the more complex items.