|
| Background |
The Ministry of Energy is implementing the plan to build the Al-Zour Refinery with a capacity of 615,000 bpd. This will be the country's fourth refinery and will mainly produce low-sulfur fuel oil for the country's power plants.
KNPCKNPC has finalised technology suppliers for different units.
Fluor Corporation is the PMC and has carried out FEED. Foster Wheeler conducted feasibility study for the project. |
| Current Status |
In September 2008, contractors began work on the project. Letters of Intent were signed between KNPCKNPC and the contractors, the formal signing of the contracts between KNPCKNPC and the contractors is expected in Q4 2008. The project is expected to be completed in 2012.
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 has 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 the four remaining EPC contracts:
Process Package 1 was awarded to the Consortium of JGC Corporation and GS Engineering & Construction.
Process Package 2 was awarded to SK Engineering & Construction.
Storage Tanks Package was awarded to Daelim Industrial Company.
Marine Works Package was awarded to Hyundai Engineering & Construction.
The Offsites & Utilities package was awarded to Fluor Corporation (March 2008).
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 kilometer 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 February 2008, the award of the 4 packages was delayed from March to April 2008.
In January 2008, the bid closing date was extended till the end of the month (from an original date of December 2007).
In October 2007, the EPC tender documents for the project's four main packages were issued to the prequalified companies.
In September 2007, KNPCKNPC announced the lists of prequalified companies for Process packages, Tank Farm package and Marine Works package.
On 3 July 2007, more than 30 bidders submitted prequalification bids for five packages, which comprises of process plants and marine facilities. KNPCKNPC increased the budget to USD14 billion (KD4 billion).
In May 2007, KNPCKNPC doubled the project's budget to USD12 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 USD15 billion against the original USD6.3 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. |
| Expected Schedule |
| Phase | Schedule | Description |
| EPC |
Q4 2008 | Contracts are expected to be signed between KNPC and selected contractors for the EPC contracts
|
| Completion |
2012 | The project is expected to be completed
|
|
| 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 |
|
|
| Phase | Schedule | Description |
| Planning |
Jul 2008 | Municipal Council approved the site relocation of the refinery
|
| PMC |
Nov 2004 | Contract awarded to Fluor Corporation
|
| FEED |
Nov 2004 | Contract awarded to Fluor Corporation
|
| EPC |
Mar 2007 | Original Tender cancelled | | | Jun 2007 | Prequalification launched for retendering | | | 03 Jul 2007 | Bidders submitted prequalification application | | | 29 Sep 2007 | Prequalification of bidders announced for Process, Tank Farm and Marine Works packages | | | Oct 2007 | ITB issued for four main packages (process, marine and tank farm) | | | Jan 2008 | Bid closing for four main packages (extended closing date) | | | Mar 2008 | Offsites and Utilities (Package 3) awarded to Fluor Coporation | | | May 2008 | EPC contracts for packages 1,2,4 and 5 awarded | | | Jul 2008 | Letters of Intent were issued to contractors for the EPC contracts | | | Sep 2008 | Letters of Intent were signed | | | Q4 2008 | Contracts are expected to be signed between KNPC and selected contractors for the EPC contracts
|
| Construction |
Sep 2008 | Started
|
| Completion |
2012 | The project is expected to be completed
|
|
Master Project | 
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