Kuwait body to meet in June for refinery approval

23 June 2011

Supreme Petroleum Council must approve deals before tendering

The Supreme Petroleum Council (SPC), Kuwait’s highest oil decision-making body, is due to meet before the end of June to decide on the fate of two long-delayed schemes to upgrade and expand its refineries.

The meeting had originally been set for 6 June, to discuss the New Refinery Project (NRP) and the Clean Fuels Projects (CFP), two schemes worth more than $30bn but was cancelled at short notice, says a source close to the body.

Kuwait is planning a major overhaul of its refining sector, raising the quality of its products, as well as increasing capacity to 1.4 million b/d from 800,000 b/d currently. However, Kuwait National Petroleum Company (KNPC) must wait for approval before it can launch tenders.

In the meantime, KNPC has adjusted its requirements and now plans to tender nine separate engineering, procurement and construction (EPC) packages for its planned retender of the $15bn NRP. Five contracts were awarded in 2008, but were cancelled in 2009 before construction had begun.

The CFP will still be tendered in three packages, says a source at the state-owned refiner.

Officials at KNPC said in May the construction of the fourth refinery will be prioritised, with tenders launched within a year of approval (MEED 13:5:11).

However, contractors in Kuwait continue to speculate which of the two schemes will be launched first, given the logistical strain of building both at the same time.

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.