|
| Background |
Kuwait National Petroleum Company (KNPCKNPC ) plans to construct a fourth refinery at Al Zour, Kuwait.
The refinery will have a capacity of 615,000 bpd and will mainly produce low-sulfur fuel oil for the country's power plants.
Fluor Corporation is the PMC and FEED consultant.
Foster Wheeler is the feasibility study consultant. |
| Current Status |
In May 2009, KNPCKNPC will approach the new parliament once elected to get the approval to re-launch the project. If approved, the project is expected to be split to 10 packages and to be re-tendered on a lump sum turnkey (LSTK) basis, to decrease costs. A final decision on the project is expected in Q3 2009. The Central Tenders Committee is expected to supervise the tendering of the project to ensure transparency. The project was initially expected to be completed in 2012.
In March 2009, the Kuwaiti prime minister announced that the project was technically and economically not feasible. The letters of intent signed with contractors were cancelled. The Supreme Petroleum Council is expected to re-evaluate the project and decide on re-tendering.
In Q4 2008, the formal signing of the contracts between KNPCKNPC and the contractors was expected.
In September 2008, contractors began work on the project. Letters of Intent were signed between KNPCKNPC and the contractors.
In August 2008, the project faced delays of a political nature, the delay is associated with how the EPC contracts were awarded. The State Audit Bureau initiated a review of the tendering process.
In July 2008, KNPCKNPC issued letters of intent to selected contractors. The Municipal Council approved the relocation of the refinery in accordance with the Ministry of Oil's demand.
In May 2008, KNPCKNPC selected contractors for 4 EPC contracts.
In April 2008, GE Oil & Gas announced it was in talks with KNPCKNPC to supply equipment worth USD 1 to USD 1.2 billion. KNPCKNPC indicated that it might raise the project's total budget to USD 19 billion to take into consideration the rises in construction costs and the possibility of adding more units to the refinery. KNPCKNPC announced that the dispute with Saudi Arabia over the project site location was resolved. As a result KNPCKNPC will relocate the refinery site one km away from the current proposed site at an additional cost of USD 375 million.
In March 2008, the Offsites and Utilities Package (n. 3) was awarded to Fluor Corporation.
In May 2007, KNPCKNPC doubled the project's budget to USD 12 billion and changed its contracting strategy to tender the EPC contracts on a cost reimbursable basis instead of LSTK basis to reduce the impact of rising EPC costs and to attract more contractors.
In March 2007, KNPCKNPC cancelled the original tender since, in December 2006, EPC bidders priced the project's four main packages at USD 15 billion against the original USD 6.3 billion budget. |
| Scope of Work |
Construction of more than fifteen process units including three 205,000 bpd crude distillation units (CDUs), diesel, naphtha and kerosene hydrotreaters, hydrogen production, gas treatment, and amine treatment units.
Construction of off-sites and utilities (O&U) covering infrastructure, control systems and an auxiliary unit.
Construction of a tank farm and marine export facilities. |
| Related Projects |
| Type |
Project Name |
Contract Value |
 |
KNPC - Al Zour Refinery - Package 1 (Process Plant) |
USD 4,000,000,000 |
|
KNPC - Al Zour Refinery - Package 2 (Process Plant) |
USD 2,600,000,000 |
|
KNPC - Al Zour Refinery - Package 3 (Offsites & Utilities) |
USD 2,000,000,000 |
|
KNPC - Al Zour Refinery - Package 4 (Tankage) |
USD 1,184,000,000 |
|
KNPC - Al Zour Refinery - Package 5 (Marine Works) |
USD 1,120,000,000 |
|
KOC - Al Zour Refinery - Pipeline |
USD 500,000,000 |
|
|
| Schedule | Phase | Description |
| Nov 2004 |
PMC | Contract awarded to Fluor Corporation | | | FEED | Contract awarded to Fluor Corporation
|
| Mar 2007 |
EPC | Original Tender cancelled
|
| Jun 2007 |
EPC | Prequalification launched for retendering
|
| 03 Jul 2007 |
EPC | Bidders submitted prequalification application
|
| 29 Sep 2007 |
EPC | Prequalification of bidders announced for Process, Tank Farm and Marine Works packages
|
| Oct 2007 |
EPC | ITB issued for four main packages (process, marine and tank farm)
|
| Jan 2008 |
EPC | Bid closing for four main packages (extended closing date)
|
| Mar 2008 |
EPC | Offsites and Utilities (Package 3) awarded to Fluor Coporation
|
| May 2008 |
EPC | EPC contracts for packages 1,2,4 and 5 awarded
|
| Jul 2008 |
Planning | Municipal Council approved the site relocation of the refinery | | | EPC | Letters of Intent were issued to contractors for the EPC contracts
|
| Sep 2008 |
Construction | Started | | | EPC | Letters of Intent were signed
|
| Q4 2008 |
EPC | Contracts were expected to be signed between KNPCKNPC and selected contractors for the EPC contracts
|
| 2012 |
Completion | Project was expected to be completed
|
|
Master Project | 
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