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Saipem wins two new $1.3bn Kuwait Al-Zour deals

Saipem will work on Phase 4 and Phase 5 of the Al-Zour New Refinery Project, both of which will be completed in 2019

KNPC has awarded a $1.3bn deal to Saipem for the Al-Zour Refinery Project. [Representational Image]
KNPC has awarded a $1.3bn deal to Saipem for the Al-Zour Refinery Project. [Representational Image]

Saipem has been awarded Kuwait National Petroleum Corporation's (KNPC) contracts worth $1.3bn for Package 4 and Package 5 of the Al-Zour New Refinery Project (NRP), located 90 km south of Kuwait City.

Al-Zour NRP will be one of the largest oil-refining plants in the world, with refining output capacity of 615,000 barrels per day.

The NRP will use a combination of conventional and proprietary licensed hydro-processing technologies to convert light and heavy crudes into low sulphur fuel oil (LSFO) and lighter products.

Part of the refinery's production will support Kuwait’s Ministry of Electricity & Water's demands. 

The construction of NRP has been divided into five major EPC packages.

Package 4, for which Saipem has received award notification in joint venture with Essar Projects Limited, consists of engineering, procurement, construction, pre-commissioning, and assistance during commissioning/start-up/performance testing for the tankages, related road works, buildings, pipe racks, pipelines, water systems and control systems for the Al-Zour refinery.

Package 4 will be completed by the beginning of 2019, the company announced in a statement.

Package 5, for which Saipem has received award notification in joint venture with Hyundai Engineering & Construction and SK Engineering & Construction, consists of offshore maritime export facilities for the Al-Zour NRP.

The scope of work includes engineering, procurement, construction, pre-commissioning, and assistance during commissioning/start-up/performance testing for a solids pier, sulfur pelletizing/conveying, subsea outfall lines, a construction dock, an offshore sea island, and a small boat harbour.

Package 5 will be completed by the second half of 2019.

Stefano Cao, CEO of Saipem, said: “Saipem’s selection for the Al-Zour refinery is very encouraging news.

"At a slow time for new oil & gas investments, Saipem has leveraged its strong competence in the downstream sector and its consolidated track record in the Middle East to secure a significant addition to its backlog". 

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Construction Week - Issue 754
Nov 23, 2019