Second deadline extension for Kuwait refinery contracts

22 July 2019
Contracts are to provide maintenance services for Al-Zour refinery

Kuwait Integrated Petroleum Industries Company (Kipic) has for the second time extended the bid deadline for its contracts to provide maintenance services for Kuwait’s Al-Zour refinery.

The maintenance contract is being tendered in two packages, known as Block 1 and Block 2, that cover maintenance for the refinery’s process units and utilities for a period of five years.

The bid submission deadline for both Block 1 and Block 2 has been changed to 25 August 2019.

Previous bid deadlines were 18 June 2019 and 21 July.

Kipic, the downstream arm of state-owned Kuwait Petroleum Corporation (KPC), is the client for the contracts.

The reason for the first extension was because Kipic wanted to change the scope of the project, according to industry sources.

A total of 19 companies have been prequalified to bid on the contract, including two international contractors.

The two international engineering, procurement and construction (EPC) companies are South Korea’s SK Engineering & Construction (SK E&C) and Japan’s JGC Corporation.

The $16bn Al-Zour refinery megaproject is expected to be commissioned in 2021 and will have a refining capacity of 615,000 barrels a day (b/d).

In March, Kipic announced that contractors had completed 80 per cent of the works on the project.

Package 1, covering the main process plant works, was awarded to a consortium of Tecnicas Reunidas (Spain), Sinopec (China) and Hanwha (South Korea). The value of the contract is estimated to be more than $4.1bn.

Package 2, covering other components of the core process operations, and package 3, covering utilities and off-sites, were both awarded to a consortium of Fluor Corporation (US), Hyundai (South Korea) and Daewoo (South Korea).

The values of the contracts for packages 2 and 3 are understood to be $2.91bn and $2.85bn, respectively.

The first three packages are expected to be completed at different points in the second and third quarters of this year.

Work on packages 4 and 5, relating to the building of storage tanks and marine facilities, is expected to be completed in 2020.

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