Italy’s Saipem said it has been awarded an onshore E&C contract by Kuwait Oil Company’s unit for approximately US$850 million for the Al Zour refinery in the south of Kuwait.
The contract, awarded by Kuwait Petroleum Corporation (KPC) involves engineering, procurement, construction and commissioning for the feed pipelines for the new refinery project, the EPC firm said in a statement.
The scope of work comprises the construction of a system of pipelines of various diameter, approximately 450 km in length, for the transportation of crude oil and gas from various KOC South Tank Farm manifolds to the new Al Zour refinery.
The project also includes creating a network for the transportation of the refined products to the storage areas present in the refinery of Mina Al Ahmadi. These products will also be used to feed the Northern Power Station owned by the Ministerial body for water and electricity, Saipem said.
Stefano Cao, Saipem CEO, said the contract “reinforces and consolidates Saipem’s presence in Kuwait, a country where we have been operating for over 30 years and in which we have built solid and lasting relations that reflect our sustainable business model.”
KPC says the AlZour is the world’s largest grass-root refinery project with 615,000 bpd capacity, which can process various types of Kuwait crude including the Kuwait Heavy Crude (KHC) oil. When completed, the refinery will list Kuwait’s refining capacity to 1.4 million bpd.
It will supply Kuwait’s power stations with clean fuels (less than 1 per cent of sulfur content) and will also be the alternative for Shuaiba refinery, slated to shutdown in 2017.
Saipem carries out drilling services, as well as in the engineering, procurement, construction and installation of pipelines and complex projects, onshore and offshore, in the oil & gas market.