Kuwait prequalifes three oil major oil companies for Al-Zour contract

14 September 2017

Olefins and aromatics facilities will be integrated with the 615,000 barrel-a-day refinery at Al-Zour complex

State downstream operator Kuwait National Petroleum Company has prequalified three international oil and gas companies to bid on the technical services agreement for the refinery, petrochemical and liquefied natural gas (LNG) complex at Al-Zour.

According to industry sources, British Petroleum (BP), Anglo-Dutch oil major Shell and French energy giant Total, have been invited to submit bids before 26 October.

In addition to the planned 615,000 barrel-a-day-refinery, the Al-Zour complex will contain an olefins and aromatics facility. The petrochemicals complex, which is being developed for the production of polypropylene and paraxylene and other chemicals is set to become operational in 2023.

The engineering, procurement and construction (EPC) contracts for the production units are estimated in the range of $2.8bn to $5bn. Three packages are expected to be tendered.

Earlier MEED reported that the front-end engineering and design for the petrochemicals facility will be completed by June 2018.

The petrochemicals facility will become operational four years after the $17bn refinery comes online.

The LNG import terminal, being built to meet domestic demand for fuel will become operational in 2020.

The main contract for the project was awarded in 2016 to a consortium of South Korea’s Hyundai Engineering Company, Hyundai Engineering & Construction Company and Korea Gas Corporation for $2.93bn.

The main EPC contracts for the Al-Zour refinery were awarded in mid-2015. Construction is underway with the facility set for a 2019 completion date.

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