Saipem wins two additional Kuwait refinery deals

Contract awards are worth $1.3bn in total

Kuwait currently produces around 3mn bpd.
Kuwait currently produces around 3mn bpd.

By Neha Bhatia

Saipem has been awarded contracts worth $1.3bn Kuwait National Petroleum Corporation's (KNPC) 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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