Fluor still in talks over Al-Zour tender

US firm Fluor is still in talks with Kuwait National Petroleum (KNPC) for parts of a tender for its planned 615,000 barrels per day (bpd) Al-Zour refinery, industry sources said on Sunday.

KNPC on Saturday named around 19 firms pre-qualifying for four packages for the refinery construction to be completed in 2012, among them Italy's Snamprogetti, South Korea's Hyundai Heavy Industries, Japan's JGC and US firm Foster & Wheeler.

The whole tender, which is due be launched in the fourth quarter, is worth around $14 billion, more than twice the initial estimate.

Several sources told Reuters that engineering and construction company Fluor was still negotiating with the state refiner on a package to provide steam generation, water systems and other infrastructure for the processing, with one of them saying the deal was worth around $2 billion.

"They might get it but it's not final," said the source who declined to be identified. Fluor already holds the project management contract for the refinery tender.

A KNPC spokesman said the fifth package was still under review, adding that several companies would be considered.

The world's seventh-largest oil exporter plans to boost refining capacity to 1.415 million bpd from 930,000 bpd with the new plant and upgrades of its Mina Abdullah and Mina Ahmadi refineries.

Kuwait cancelled a first tender for the refinery in February, after bids came in far above its initial budget. The new Al-Zour refinery is to replace the ageing 200,000-bpd Shuaiba refinery, which has been hit by several accidents.

Opec-member Kuwait sits on around 10% of the world's oil reserves. It produced 2.41 million bpd of crude in August, a Reuters survey showed. - Reuters

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