Disqualified companies given two weeks to submit complaints before $12bn project proceeds to tender
Kuwaits 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:
- KBR/China Huanqiu Contracting & Engineering (US/China)
- Petrofac/Samsung Engineering/CB&I Lummus (UK/South Korea/US)
- JGC/SK Engineering & Construction/GS Engineering & Construction (Japan/South Korea)
- Saipem/Hyundai Engineering & Construction and Hyundai Engineering Company/Daelim Industrial (Italy/South Korea)
- Tecnicas Reunidas/Sinopec Engineering/Hanwha Engineering & Construction (Spain/China)
- Fluor/Hyundai Heavy Industries/Daewoo Engineering & Construction (US/South Korea)
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 packages 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 projects utilities and offsites.
The companies disqualified from bidding for the packages, which have been given the chance to submit complaints, are:
- Habtoor Leighton Group (UAE/Australia) packages 1, 2 and 3
- STX Heavy Industries (South Korea) packages 1, 2 and 3
- Dong Ah Construction (South Korea) package 3
- Essar Projects (India) package 3
- Gulf Consolidated Contractors Company (Saudi Arabia) package 3
- Punj Lloyd (India) package 3
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 countrys 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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