Saturday, 21 October 2017 05:32 GMT
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Kuwait clears $12bn refinery bids

(MENAFN - The Peninsula) Kuwait has approved bids worth a total of $12bn for major upgrades at two oil refineries, the state-run oil company said yesterday, in a sign it is moving ahead with large infrastructure projects



The Clean Fuels Project is a specification upgrade and expansion of Kuwait's largest refineries as part of the Gulf state's economic development plan



A consortium led by Japan's JGC Corp won a tender for work worth KD1.361bn ($4.82bn) at the 460,000-barrels-per-day (bpd) Mina Ahmadi refinery, a Kuwait National Petroleum Company spokesman said, citing a decision from the country's central tenders committee



Britain's Petrofac, in a bid worth KD1.07bn, is expected to carry out work at the 270,000 bpd Mina Abdullah refinery, and US-based Fluor Corporation will also work on Mina Abdullah after a bid of KD962m, he said



Contracts for the work are expected to be signed with the companies in April and construction work should begin shortly afterwards, the spokesman said



Kuwait awarded Foster Wheeler with the management and service contract for the clean fuels project in December 2012 in a deal worth around $500m.



Foster Wheeler said at the time that the project would increase the amount that the refineries can process per day by 264,000 barrels to 800,000 and be ready in 2018.



Apart from the Clean Fuels Project, worth around $4.6bn in total, Kuwait also wants to build a new KD4bn refinery called Al Zour and then shut its third, older 200,000 bpd Shuaiba refinery



Such projects in Kuwait's KD30bn development plan, announced in 2010, are a test for a country which has struggled to invest in infrastructure and attract foreign investors


Kuwait clears $12bn refinery bids