Built to inform

Sign up for the daily newsletters

No, Thank you

Kuwait approves $12bn oil refineries upgrade

Clean Fuels Project split between Japanese, British and US consortia

Picture for illustrative purposes only
Picture for illustrative purposes only

Kuwait has approved bids worth a total of $12bn for major upgrades at two oil refineries.

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, which has faced delays partly due to political instability.

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 ($3.79bn), is expected to carry out work at the 270,000 bpd Mina Abdullah refinery, and US-based Fluor Corp. will also work on Mina Abdullah after a bid of KD962mn ($3.4bn), 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 $500mn.

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 KD4 billion refinery called Al Zour and then shut its third, older 200,000 bpd Shuaiba refinery.

Such projects in Kuwait's 30bn dinar development plan, announced in 2010, are a test for a country which has struggled to invest in infrastructure and attract foreign investors, partly due to the political instability and bureaucracy.

Last week Kuwait's parliament voted to investigate a contract awarded to a GDF Suez-led consortium for a power project and a deal between the state carrier and Airbus to buy and lease aircraft, in a sign that lawmakers will continue to question state investment decisions. 

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 759
Feb 22, 2020