Prequalification exercise under way for refinery

23 September 2005
State refinery operator Kuwait National Petroleum Company (KNPC)has invited international contractors to submit prequalification applications by 13 October for the construction of its new refinery at Al-Zour. At least 20 engineering, procurement and construction (EPC) contractors expressed interest by the early-September deadline in the estimated $6,300 million project, which with capacity of 615,000 barrels a day will be the region's largest refinery.

The work is likely to be split into three packages, with companies teaming up to compete for the contracts to mitigate risk. Under the proposed bidding schedule, invitation to bid documents for the EPC packages are expected to be issued in the first quarter of 2006, with bid deadlines set for July. The client says it hopes to make awards two months later.

The refinery is expected to come on stream in 2010. Procurement of long-lead items has begun, and licensors for the various processing units have already been selected.

The Houston office of the US' Fluor Corporationis working on the front-end engineering and design (FEED) and is the scheme's project manager. The US' Foster Wheelercarried out the feasibility study (MEED 8:5:05; 12:11:04).

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