Kuwait awards contracts worth $11.5bn to build Al-Zour oil refinery

Refinery set to be one of largest in the Middle East, producing 615,000 barrels per day

PHOTO: Kuwait says it sits on 10% of the world’s proven crude reserves and is pumping 2.8 million bpd. (File photo) Credit: Shutterstock

The state-run Kuwait National Petroleum Company (KNPC) has awarded four contracts worth $11.5 billion to build the planned Al-Zour oil refinery, the national news agency KUNA reported.

The refinery is set to be one of the largest in the Middle East, producing 615,000 barrels per day.

A consortium including Spain’s Technicas Reunidas, China’s Sinopec Engineering and South Korea’s Hanwha Engineering and Construction Corp has won a contract for $4.25 billion to build the main manufacturing units.

US Fluor Limited, South Korea’s Hyundai Heavy Industries and Daewoo Engineering and Construction have won the second and third contracts worth $5.75 billion for infrastructure.

South Korea’s Hyundai Engineering and Construction, SK Engineering and Construction and Italy’s Saipem have won the fourth contract valued at $1.5 billion.

KUNA also quoted KNPC spokesperson Khalid al-Asousi saying that a fifth contract can be expected in the next two weeks, and the signing of all the contracts will take place in October.

Officials said the work should be completed by late 2018 or early 2019, and the new refinery will take Kuwait’s refining capacity to 1.4 million barrels per day from the current 930,000 bpd.

Earlier this month Kuwait’s Supreme Petroleum Council agreed to increase the refinery budget by $2.9 billion after bids exceeded estimates.

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