Kuwait National Petroleum Company (KNPC) has increased the budget of its Al-Zour refinery project by over 20 per cent, according to the state-owned refining group’s CEO.

The budget of the project has increased to KD4.871bn ($16.2bn) from a previous estimated cost of KD4bn ($13.3bn), KNPC head Mohammed al-Mutairi said in an article in the oil ministry’s official magazine Al-Naft.

“The matter helped contain the prices allotted by the contractors of the main groups which will carry out the engineering and construction activities,” the article said, citing the CEO.

In October 2015, KNPC signed five engineering, procurement and construction (EPC) contracts on the Al-Zour refinery with a total value of $13bn.

Al-Mutairi said in the February issue of Al-Naft that the site preparation for the refinery project was 73 per cent complete. The construction of the main units will commence once the site preparation is completed.

The CEO said the Clean Fuel Project – KNPC’s other downstream megaproject – was 41.9 per cent complete.