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Kuwaiti firm issues tender for 615,000 bpd refinery
State-owned refiner Kuwait National Petroleum Company (KNPC) has launched a tender for its new 615,000 barrel-per-day Al Zour oil refinery, the company said on its website.
- Reuters
- Published: 23:37 June 18, 2007
Kuwait City: State-owned refiner Kuwait National Petroleum Company (KNPC) has launched a tender for its new 615,000 barrel-per-day Al Zour oil refinery, the company said on its website.
In May, Kuwait doubled the planned budget to $12 billion for the plant, which would be one of the largest in the Middle East. Rapidly rising costs in the energy industry have delayed the project and threatened its viability.
Kuwait cancelled a first tender in February after bids came in far above its initial budget. According to local newspaper reports, bids reached as much as $15 billion.
KNPC said it planned to complete construction of the refinery by end 2011, a year later than the original schedule.
If the refinery processes heavier Kuwaiti oil, it will have capacity of 535,000 bpd.
The refinery will have three crude distillation units each with the capacity to process 205,000 bpd, giving total capacity of 615,000 bpd for light Kuwait crude, KNPC said on its website at www.knpc.com/new_refinery_project.
The plant will produce low sulphur fuel oil to substitute for the high sulphur fuel oil used in local power plants.
It will also produce ultra-low sulphur diesel fuels for worldwide markets as well as jet fuel, kerosene and naphtha feedstock for petrochemical plants.
KNPC has contracted engineering and construction company Fluor Corp for project management.
KNPC requested "large, world renowned companies" to register their interest and submit prequalification documents before July 3.
Bids for the five engineering, procurement and construction packages would be invited early in the third quarter with a bidding time of around 10 weeks and contracts awarded late in the fourth quarter.
The first package was for oil processing units, the second for hydrogen and sulphur recovery and production, the third for power, steam and water, the fourth for storage and the fifth for marine facilities.
At 615,000 bpd, Al Zour would exceed the capacity of the Middle East's largest refinery, Saudi Arabia's 550,000 bpd Ras Tanura plant. Saudi Arabia plans to build another 400,000 bpd refinery in Ras Tanura.
Capacity: Al Zour will have three distillation units
- The Al Zour refinery will have three crude distillation units each with the capacity to process 205,000 bpd, giving total capacity of 615,000 bpd for light Kuwait crude.
- The plant will produce low sulphur fuel oil to substitute for the high sulphur fuel oil used in local power plants.
- It will also produce ultra-low sulphur diesel fuels for worldwide markets as well as jet fuel, kerosene and naphtha feedstock for petrochemical plants.
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