New delay for Kuwait refining projects

01 July 2012

Prequalification for new refinery and clean fuels projects pushed back to August

State-refiner Kuwait National Petroleum Company (KNPC) has delayed the prequalification process for two major downstream projects again, pushing back the deadline for submissions by another month.

International engineering, procurement and construction (EPC) firms hoping to participate in the tenders for the Clean Fuels Project (CFP) and New Refinery Project (NRP) now have until 7 August, instead of the previously planned 4 July deadline.

Further delays are expected as the deadline falls in the middle of Ramadan. The schemes are worth a total of more than $30bn, but have suffered numerous delays due to political discussions between the government and parliament. The projects are part of Kuwait’s plans to increase refining capacity to 1.4 million barrels-a-day (b/d) from 956,000 b/d currently.

KNPC has already tendered a preparation works contract for the CFP, which will upgrade and expand the Mina al-Ahmadi and Mina Abdullah refineries. Twelve EPC firms were prequalified in mid-May and bids are due to be submitted by 10 July.

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