Kuwait announces retender of Al-Zour package four

10 May 2015

Process will be fast-tracked

  • Closing date for bids is 23 June
  • Low bid came in $263m over budget
  • There is ongoing speculation that other packages will also be retendered

State-owned downstream operator Kuwait National Petroleum Company (KNPC) has officially announced its decision to retender package four of the Al-Zour New Refinery Project (NRP).

The process is going to be fast-tracked and the closing date for submissions is 23 June.

KNPC’s official announcement comes after the tankage package came in $263m over budget.

MEED originally reported that the operator had decided to retender the package on 16 April.

The package consists of storage tanking, piping and underground works for the planned refinery, which will be built on the Kuwaiti side of the Divided Zone. This lies between the borders of Saudi Arabia and Kuwait.

The retendering of package four comes after bids for the NRP’s five unawarded packages all came in over budget, requiring billions of dollars in extra funding.

A consortium of Italy’s Saipem and India’s Essar was the low bidder on the package, with a bid of KD406.9m ($1.35bn).

KNPC’s budget was $1.1bn, according to sources with knowledge of the matter.

The bidders were:

There is ongoing speculation that other packages for the NRP will also be retendered.

Out of all the five unawarded packages, the low bid on package four was the closest to being within budget.

Stay informed with the latest in the Middle East
Download the MEED app today, available on Apple and Android devices

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications