Kuwait invites bids for massive refinery pipeline project

15 June 2008

State upstream operator Kuwait Oil Company (KOC) has invited international contractors to submit bids by 27 July for the long-awaited contract to build pipelines to supply crude feedstock for the state’s planned 615,000 barrel-a-day grassroots refinery at Al-Zour.

The precise scope of works for the estimated $500m-plus project is still unclear, but it is thought that it will require the construction of at least three main oil pipelines to the Al-Zour refinery, each one carrying a different type of crude as well as fuel-oil.

It is also unclear at this stage if the contract covers the construction of return pipelines transporting low-sulphur fuel-oil and liquefied petroleum gas back to the Mina al-Ahmadi refinery.

A total of 20 contractors are prequalified to bid as a main contractor for the lump-sum engineering, procurement and construction contract. They include Chiyoda Corporation and JGC Corporation, both of Japan, Bechtel and KBR, both of the US, Paris-based Technip, Italy’s Snamprogetti, UAE-based Petrofac International, and Hyundai Engineering & Construction Company, Daelim Industrial Company, and SK Engineering & Construction, all of South Korea.

In addition, 14 companies have been prequalified as a consortium partner. The list includes Athens-based Consolidated Contractors International Company (CCC), the UK’s Penspen, Turkey’s Tekfen and the US’ Wilbros.

A pre-tender meeting will be held on 29 June.

State refinery operator Kuwait National Petroleum Company (KNPC) recently awarded the main process packages on the $15bn Al-Zour refinery. While KNPC has responsibility for the scheme’s overall development, control of the supply pipelines falls under KOC’s charge.

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