State invites foreign firms to apply for clean fuels project

11 January 2008
State refinery operator Kuwait National Petroleum Company (KNPC) has invited international contractors to submit prequali-fication applications by the end of January for the three main contracts on the multi-billion-dollar programme to upgrade its three refineries.

Known as the ‘clean fuels project’, the estimated $6bn programme will be split into three engineering, procurement and construction packages. One package covers process units at the Mina Abdullah refinery. Another covers the revamp of the Mina Abdullah and Shuaiba plants, together with offsites and utilities. The final package covers the revamp and installation of units and interfaces at the Mina al-Ahmadi facility.

KNPC says it plans to invite bids for each of the three packages by the end of the second quarter, with a view to awarding the contracts by the end of September.

Mechanical completion is set for the end of 2011. Commissioning is scheduled for June 2012. The refinery operator will award the contracts on a cost-reim-bursable basis, with the work converted to a lump-sum basis once about 70 per cent of engineering is complete.

The client has the option to continue on a cost reimbursable basis if open-book estimates are too high (MEED 22:6:07).

The clean fuels project is being implemented in tandem with the $14bn grassroots Al-Zour refinery.

Together, the two massive schemes are expected to put a huge strain on contractors and human resources in the state.

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