Kuwait confirms prequalified groups for New Refinery Project

18 May 2014

Disqualified companies given two weeks to submit complaints before $12bn project proceeds to tender

Kuwait’s Central Tenders Committee (CTC) has confirmed the prequalification of six consortiums to bid on the first three packages of the planned $12bn New Refinery Project (NRP).

The project operator, state-owned Kuwait National Petroleum Company (KNPC), has given disqualified companies until 1 June to submit complaints about the decision before it proceeds with the tendering process.

The prequalified consortiums are:

The packages are estimated to be worth about $9bn. KNPC has ruled that each consortium is capable of executing two of the three packages.

The first package’s scope is the main process units, including the crude distillation unit (CDU), atmospheric residue desulphurisation unit (ARD), hydrothermal upgrading units (HTUs) and the saturate gas plant, while the second covers the support process units and the third is for the project’s utilities and offsites.

The companies disqualified from bidding for the packages, which have been given the chance to submit complaints, are:

Engineering, procurement and construction (EPC) contractors have had a long wait for the retender of the refining megaproject, which has been tendered twice before, only to be awarded and cancelled before construction could begin.

Two packages have already been released that will cover the construction of the tank farm and marine facilities. Bids for these are expected in September.

The new refinery is key to the country’s hopes of meeting growing power demand. The 615,000 barrel-a-day (b/d) facility will supply 225,000 b/d of low-sulphur fuel oil for power generation. The scheme will be one of the largest single-phase refineries ever built.

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