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Thu 13 Aug 2015 01:38 PM

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Kuwait awards another $1bn-plus contract for Al Zour refinery

Refinery is expected to be one of the largest in the Middle East; $13bn worth of contracts have now been signed

Kuwait awards another $1bn-plus contract for Al Zour refinery
oil refinery, oil plant, gas plant, oil and gas refinery, energy, petrochemicals plant

Kuwait has awarded another $1 billion-plus contract for its new Al Zour oil refinery, expected to be one of the largest in the Middle East, state-run Kuwait National Petroleum Co (KNPC) said.

The $1.57 billion contract was awarded to a consortium led by Italy’s Saipem, according to the official news agency KUNA. It did not reveal details of what work would be included expect that it was valid for 45 months.

It follows $11.5bn in contracts awarded late last month to build the planned 615,000 barrel-per-day refinery.

They included a $2.43bn contract for a consortium including Spain's Tecnicas Reunidas, China's Sinopec and South Korea's Hanwha Engineering and Construction to build the main process units of the refinery.

A consortium of Saipem, Hyundai Engineering and Construction, and SK Engineering and Construction are contracted to build a marine export terminal for $1.54bn.

All contracts are expected to be finalised by October, the company said.

Construction of the 615,000 barrel per day refinery could be a major boost to Kuwait's economy, which has slowed in recent years by political tensions and is now grappling with a blow to state finances from low oil prices.

The project was originally planned more than a decade ago but has been delayed repeatedly by bureaucratic and political problems, including conflict between Kuwait's parliament and the cabinet.

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