KNPC finalizes contracts for Clean Fuels Project

Kuwait National Petroleum Co. (KNPC) has finalized lump-sum turnkey contracts previously let to three groups of oil and gas service providers for work related to its Clean Fuels Project (CFP) at the Mina Abdullah and Mina Al Ahmadi refineries in southern Kuwait (OGJ Online, Feb. 19, 2014; Feb. 12, 2014; Dec. 6, 2013; Apr. 1, 2013).

KNPC officially signed the three contracts Kuwait on Apr. 13 with JGC Corp., Petrofac, and Fluor Corp., all of which head separate consortia of companies tapped for the project, KNPC said.

KNPC awarded a $3.4 billion contract in February to a joint venture of Fluor Corp., Daewoo Engineering & Construction Co., and Hyundai Heavy Industries Co. to design, construct, and commission the Mina Abdullah Package 2 CFP, with an additional $3.7 billion contract let earlier that month to a consortium led by Petrofac for CFP-related work related at its Mina Abdullah and Shuaiba refineries.

KNPC in March awarded JGC Corp. and its partners GS Engineering & Construction and SK Engineering & Construction a $4.9 billion contract to provide engineering, procurement, construction as well as commissioning assistance and testing services for CFP-related work at Mina Al Ahmadi, according to JGC.

With the official signing of contracts concluded, Kuwaiti government officials on Apr. 16 held a workshop for team leaders at the Mina Al Ahmadi and Mina Abdullah refineries and project consultant Foster Wheeler that focused on identifying and developing a plan to address potential risks associated with implementing the CFP, according to KNPC.

Kuwait’s CFP is designed to reconfigure the country’s three refineries and, in conjunction with grassroots construction planned at Al Zour, nearly double total refining capacity to 1.4 million b/d.

Under the CFP, KNPC will integrate and upgrade the 270,000-b/d Mina Abdullah and 466,000-b/d Mina Al Ahmadi refineries and ultimately close the 200,000-b/d refinery at Shuaiba following the completion of the Al Zour refinery (OGJ Online, Dec. 3, 2013). The newly integrated refineries will operate as a merchant complex with total capacity of about 800,000 b/d, the company has said.