Kuwait�s Al-Zour Refinery �Progressing�, Says Minister

Kuwait is set to finally move ahead with plans for its new 615,000 b/d refinery at al-Zour after years of delays, Kuwait�s Minister of Oil Hani Husain tells MEES. The much-delayed project was originally scheduled for completion in 2010 at a cost of around $6.3bn but was suspended in early 2009 on the back of both accusations in parliament of �irregular� contract awards and a rise in estimated cost to around $20bn (MEES, 23 March 2009). The project was revived however in July last year with state-owned Kuwait National Petroleum Company (KNPC) expecting to relaunch the tender after getting the green light from both the country�s Supreme Petroleum Council (SPC) and Kuwait�s Ministry of Oil (MEES, 7 November 2011).

�There were some concerns from parliament [in the past], but these concerns were not about the refinery itself,� Mr Husain said on the sidelines of the fifth international OPEC seminar in Vienna earlier this month. �They were about the contracting philosophy. This has now been agreed however�and it�s progressing in a good manner,� he continued. The minister added that contrary to earlier reports, Kuwait�s two �mega-projects� � the al-Zour refinery and the upgrades of both the 270,000 b/d Mina 'Abd Allah and 366,000 b/d Mina al-Ahmadi refineries in the Clean Fuels Project (CFP) � would move forward at the same time. KNPC has asked engineering firms to apply for prequalification for both projects (MEES, 30 April), and has also opened a tender for project management consultancy contracts. �The projects are going to be simultaneous,� Mr Husain said.

While a decision is yet to be made on whether contractors will be able to bid for both projects, the minister gave assurances the necessary considerations would be made. �There are of course going to be guidelines. You don�t want contractors that over-commit in one place and under-commit in another,� he said. �Our friends at KNPC are going to make sure it�s done in a proper way. They have very good experience in handling and running major projects.�

© Copyright MEES 2012.