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Kuwait : $12b oil deals, tenders others signed by Kuwait
Publish Date : 15-Apr-2014
Contracts worth $12 billion are signed by the Kuwait National Petroleum Company with three international consortia to upgrade two refineries and invited bids to build a new multi-billion-dollar refinery.
The contracts were signed by State-owned KNPC's chief Mohammed Al-Mutairi with the three consortia led by Britain's Petrofac, US Fluor and Japan's JGC Corporation. Most of the other companies in the consortia are South Korean.
Mutairi said that the project is due to be completed in early 2018.
The cost of the venture — called the Clean Fuel Project — is above $13 Billion if smaller preparatory contracts are added, lower than the earlier estimated cost of $16.4 billion as stated by project manager Abdullah Al-Ajmi .
The contracts, the first mega project in the OPEC member's vital oil sector for 25 years, will upgrade two of the three present refineries by installing 37 advanced processing units that will reduce sulfur and carbon pollutants.
The present production capacity of the two refineries of Mina Al-Ahmadi and Mina Abdullah is around 730,000 barrels per day, while the capacity of Kuwait's third refinery at Shuaiba is 200,000 bpd.
The capacity of the two refineries at the end of the project will enlarge to 800,000 bpd, while Kuwait plans to shut the third refinery.
KNPC starting inviting bids for two of the five-package project to build a state-of-the-art refinery with a capacity of 615,000 bpd, project manager Khaled al-Awadhi told reporters. The two tenders are for marine works and storage tanks.
Awadhi stated that the next month, the company will tender the three main packages for building the body of the refinery.
Awadhi said that the refinery, estimated to cost around $15 billion, is slated to come onstream in between the end of 2018 and the first quarter of 2019.
Kuwait's refining capacity will reach more than 1.4 million bpd from the present level of 930,000 bpd, when the projects are completed.
He said that most of the production will be for export to Asian and European markets.
The two projects have been over and over again postponed because of political disputes between parliament and the government.
The project to build a new refinery was scrapped by the government approximately five years previously, after five Japanese and South Korean companies were given contracts.
