Project / Tender - Complete Information

This project involves construction of a new refnery at Al Zour in Kuwait. It will be the largest refinery in the region. Main facilities at the refinery include three atmospheric residue desulphurization (ARDS) units featuring two trains each, three crude distillation units (CDU), three diesel hydro-treating units (DHTU), two naphtha hydro-treating units (NHTU) and two kero hydro-treating units (KHTU). Other facilities include two saturated gas processing plants, a heavy oil cooling (HOC) unit, a hydrogen recovery (HR) unit, a hydrogen compression (HC) unit and four trains of hydrogen production units (HPU). The project further includes installation of a sour water stripper unit comprising three trains, three amine regeneration plants. three sulphur recovery units and tail gas treating units. Other installations include a hydrocarbon flare system, four sulphur pelletizing systems integrating two circular storage tanks and sulphur conveying systems, two acid gas flares, and four sulphur storage tanks. Associated project activities will include the installation of a sulphur pelletizing system, a steam generating unit, air systems, water treatment systems, a cooling water unit and high voltage substations to receive power from the Al-Zour South Power Station. Project activities also involve feedstock and product supply pipelines and construction of various channels, a basin for a future jetty, a barge dock, and roads. Work is likely to be split into three packages, with companies teaming up to compete for the contracts to mitigate risk. The client has invited international contractors to submit pre-qualification applications for the EPC contract. Under the proposed bidding schedule, invitation to bid documents for the EPC packages are expected to be issued in the first quarter of 2006, with bid deadlines set for July 2006. The client hopes to make an award two months later. Procurement of long-lead items has begun, and licensors for various processing units have already been selected. The Houston office of US' Fluor Corporation is working on the front-end engineering and design (FEED) and is also the project manager on this scheme. US' Foster Wheeler has carried out the feasibility study. 

Client has started full operation of its oil refinery after completing the installation of a third production unit in late 2023.

 

Client has successfully completed building the third and final units in the refinery and that they were operational.

 

OPEC oil producer Kuwait intends to fully commission its Al-Zour oil refinery in October, 2023 after a third refining unit was completed. Client is currently taking the necessary measures to operate all units in the refinery. Fully commissioning the refinery required great efforts as it comprises refining units and thousands of equipment & have completed the first two units and will soon announce the operation of the third unit.

 

The company is proceeding steadily to reach full operation of its three refining units at Al-Zour refinery during the next phase. The current refining capacity of Al-Zour is more than 410,000 barrels, KIPIC will continue to reach the full refining capacity of 615,000 barrels.

 

OPEC member Kuwait has started full operation of its Al-Zour oil refinery by commissioning the third and last distillation unit. The launching of the third unit by the state-owned Kuwait Integrated Petroleum Industries Company (KIPIC) boosted the refinery to its maximum output capacity of 615,000 barrels per day. The third unit has a capacity of 205,000 bpd and can process all types of Kuwaiti crude.

 

KIPIC announced the launch of the second phase of Al-Zour refinery, stressing accomplishing further progress according to the expected time. It is considered a huge achievement in the history of Kuwait’s petroleum industry. The Al-Zour refinery project may achieve economic returns by offering job opportunities, and securing promising oil markets, besides providing steady oil supplies with low sulfur content in order to improve air quality. Launching the second phase will result in increasing refining capacity from 205,000 pb to 410,000 pb. The Third and final phase is expected to work with the maximum refining capacity from 615,000 pb to 535,000 pb. Al- Zour Refinery is considered one of the most important pillars of KPC’s 2040 strategy in shaping the future of Kuwait’s oil industry by promoting the country’s exports of high-quality petroleum and products that conform to future specifications in global markets. The refinery increased the material revenues and supports the power of Ministry of Electricity and Water generation stations constantly, stabilized environmentally safe supplies, estimated at 150,000 barrels of fuel with low sulfur content, to meet the increasing demand for electric energy. They also provide other refining products to export to the global markets to meet commercial operations and keep pace with global demands, as the company established the largest industrial island in the middle of the sea to export liquid petroleum products through two loading platforms with four berths and a central platform under the sea. KIPIC’s endeavor to instill full compliance with health, and safety and to be a practical lifestyle environment for all its employees and contractors.

 

The first phase of Al Zour refinery has begun commercial operations. Operations started after the refinery last month started to produce and sell fuel oil and supply it to local power stations. The move will be followed by the second and third phases of the refinery's operations, moving towards full maximum refining capacity. 

 

Commissioning of the Al-Zour refinery is facing further delays. This will hinder the schedule set by the Client for the facility to become operational. Looking at the state of the commissioning process it is unlikely that the refinery will even be partially online for a few more weeks. For now, the refinery will start operating some units in the near future. However, production of actual export quality products will not be anytime soon.

 

Al-Zour refinery is set to be operational within the next few weeks. Al-Zour Refinery is the largest in Kuwait to be established in accordance with international environmental specifications and standards, as it will contribute to improving air quality by reducing the percentage of polluting gases emitted from power plants by 75 percent by providing them with environmental fuels with low sulfur content. The Kuwait Petroleum Corporation has asked Client to prepare a future study on marketing the products of Al-Zour refinery and petrochemical complex at home and abroad, for the next 25 or 35 years. KIPIC is expected to present the study in the immediate future to a number of consulting companies specialized in studying the local market conditions in order to market the refinery products during which huge quantities of the fuel oil product that the refinery was originally built for was dispensed with to provide it to the power and water plants to operate the turbines, in favor of expanding the use of natural gas, noting that the refinery project was completely changed to turn later into a transformational refinery.

 

Operations have begun at the Al-Zour refinery, as the industrial island received the first oil tanker carrying naphtha, the basic material to operate the refinery, which is expected in March 2022. KIPIC is currently conducting the first stages of operating the Al-Zour refinery and testing the operational units of the refinery, which has a refining capacity of 615,000 barrels per day, which is the largest ever in the region, and is built on one phase. The Refinery succeeded in the past few days in the preliminary operation of the hydrogen unit for the refinery project, which consists of 4 huge factories.

 

The refinery is now not expected to come online until 2022 due to budget issues impacting the commissioning process. All of the contractors are suffering from financial difficulties. The commissioning process is seeing more delays.

 

France-based engineering company Technip Energies has secured the project engineering and management services (PEMS) deal through its unit in the UK, Technip E&C. The contract has a six-year term and covers project engineering and management services for various potential projects in the Al-Zour complex.

 

Completion rate of the refinery project has reached more than 97.83. First mini-refinery is expected to operate in November 2021, and the last units will start operating at the end of March 2022. The biofuel project has been gradually processed through the operation of the main units in Ahmadi and Mina Abdullah refineries, with the completion rate reaching 99.29 percent. The operation of all units of Mina Al- Ahmadi Refinery has been completed. The remaining units of the project, which are located in Mina Abdullah refinery, are expected to operate in July 2021.

 

This project has seen significant setbacks over recent months due to government restrictions designed to control the spread of Covid-19. The project was believed to be on-course to come online in early 2021, but problems in the commissioning phase mean that the facility is now expected to come online later in 2021. Crude was piped into the refinery for the first time, as planned in December 2020, But over recent months commissioning has been impacted by Covid restrictions that have been put in place on visas and airport limitations both within Kuwait as well as in other countries.
Travel exemptions: In an effort to keep commissioning moving at a client has managed to ensure that some special travel exemptions had been given to essential workers needed to commission the facility. However, the issuance of travel exemptions for workers is dependent on approval from government ministries, and over recent months these ministries have been increasingly reluctant to grant exemptions.

 

Commissioning is proceeding rapidly at the refinery, and the facility is expected to start receiving crude oil in early December 2020. The boilers are working, there’s steam in the tank and the lines are being cleaned out. The project has been able to see significant progress over recent months due to special exemptions given to employees that needed to travel into the country to carry out essential work. The biggest challenge has been getting venders in to come in during the pre-commissioning and commissioning stages. Prior to activating the boilers, various facilities were competed and handed over, including a central control building and other associated buildings, fire water systems, communication systems and other refinery infrastructure.

 

Finishing works are currently in progress. Overall, 95.4% of the construction work has been completed.

 

Fluor Corporation announced that its joint venture with Daewoo Engineering & Construction and Hyundai Heavy Industries, FDH JV, has successfully started up two boilers and they began generating steam in the new Al-Zour Refinery Package 2 and 3 Project. Fluor is leading a joint venture that is working to deliver two engineering, procurement, fabrication and construction packages for key process support units, utilities and infrastructure.  This significant milestone marks the completion of several critical utility systems to start up and advance the refinery into commercial operations with ongoing support. Leading up to this achievement, various enabling facilities were successfully completed and handed over including the central control room building and other associated buildings, fire water systems, communication systems and other refinery infrastructure. COOEC Fluor Heavy Industries Co., Ltd. – Fluor’s joint venture fabrication yard in Zhuhai, China – also delivered 188 modules with a combined weight of 65,000 metric tons to support the project’s large-scale, onshore modular execution strategy.

 

Kuwait Integrated Petroleum Industries Co (KIPIC) has started operating the gas line that will feed the long-delayed refinery. 

 

Kuwait has delayed the commissioning of its giant Al-Zour oil refinery for several months due to the spread of Coronavirus. Commissioning of phase 1 of Al Zour refinery has been delayed by 6-7 months.

 

$168 million contract has been awarded to Amco Engineering Services Company for Block-2 maintenance services at the refinery.

 

Canada’s SNC Lavalin will support the Client as they undertake the commissioning process and the handover will be done in phases. Bringing the separate packages together into an operational facility certainly is a challenge for Kipic.

 

Precommissioning work is underway for the marine package known as package 5. The package is on-track to be ready in line with the company target of starting refining by the middle of next year.

 

Fluor Corporation announced that its joint venture COOEC-Fluor Heavy Industries fabrication yard in Zhuhai, China, has safely completed the entire module programme for this project. The COOEC-Fluor yard completed the modular program over a period of 24 months from the start of steel fabrication to load out of the last modules. To achieve this milestone, COOEC-Fluor delivered 188 modules in 20 separate shipments with a combined weight of 65,000 metric tons. The project was executed with a relentless focus on health, safety and environmental performance, achieving a total case incident rate of 0.06 and a lost-time injury rate of 0.02. The final module shipment of 8,600 metric tonnes was shipped from COOEC-Fluor and recently arrived at the project site in Kuwait.

 

The central main manufacturing units have been completed on this scheme.

 

American engineering and construction firm Fluor Corporation’s COOEC-Fluor Heavy Industries a joint venture (JV) between the Texas-based company and China Offshore Oil Engineering (COOEC) has completed pipe spool fabrication work for Al-Zour oil refinery. As part of the project, the Kuwaiti-Chinese JV delivered 95,000 pipe spools by fabricating 337,000 linear metres of carbon, alloy, and stainless steel pipes, with the materials delivered at the site in September 2019. The fabricated pipe spools were delivered to the joint venture of Fluor, Daewoo Engineering and Construction, and Hyundai Heavy Industries that is implementing work on the project under engineering, procurement, and construction (EPC), plus fabrication packages for Al-Zour refinery, which is expected to produce 615,000 barrels of oil per day upon completion. Additionally, the JV is fabricating and assembling 188 modules for the refinery, with loadout and shipping scheduled for October 2019. The JV team had recorded 3.5 million safe man-hours without lost-time injury on the project.

 

The $16 billion refinery project is under execution and expected to come online in June 2021. The $10 billion petrochemical complex, which is slated to be integrated within this development, has not yet been tendered. The list of prequalified companies that will be eligible to bid for the project’s main packages is yet to be released. Delays to the list being released have been blamed on recent changes to the project scope.

 

Veolia has secured a $63-million management contract from the client for a wastewater project within its al zour facility. The deal, which is for a period of seven years, will see middle east provide operation and maintenance services for its future wastewater treatment plant located in the south of the country. As per the contract, it will treat and recycle wastewater at the rate of 1,500 cu m/h, and will also be responsible for the sludge incineration unit. 

 

Honeywell UOP has been awarded a major contract by client for the reconfiguration of the refining and petrochemical sections of its Al Zour refinery. The newly designed complex will increase the plant’s output capacity of fuels and petrochemicals.

 

All of the required mechanical works are now in place for the marine package. The package is now 85 per cent complete. It is really hook up and commissioning and architectural finishes that remain to be done. It set to be completed six months behind the original schedule.

 

Kipic has announced that it is planning to tender a contract for consultancy work for project engineering and management services. The invitation to bid would be issued within 30 days. The contract is for add-on services and units for the Al-Zour refinery and the nearby liquefied natural gas import facility (LNGI). It is expected to include front-end engineering and design (feed) work. These are small feed, pre-feed and feasibility jobs for additional works related to the refinery and the LNGI project.

 

KIPIC has selected Arabi Enertech for a KD27.2m ($90m) engineering services, purchase and standby service contract on this scheme. The first three packages are expected to be completed at different points in the second and third quarters of this year. Work on packages 4 and 5, relating to the building of storage tanks and marine facilities, is expected to be completed in 2020.

 

Two companies from Netherlands and France have won contracts involving construction of sulphur and water sewage units at giant Al-Zour oil refinery. The contract awarded by the state-owned Kuwait Integrated Petroleum Industries Company (KIPIC) to the Dutch Dietsmann Company is worth around 40.5 million Kuwaiti dinars ($133 million). It has also awarded a project worth about 18.9 million dinars ($52 million) to France's Veolia Environnement.

 

KAEFER in Kuwait has been awarded two important contracts for extensive insulation works on piping and equipment at the new AlZour Refinery.

 

Nearly 74 percent of the project has been completed. There will be a delay in the completion of the refinery by between 10 and 12 months. 

A total of 19 companies have been prequalified to bid for the maintenance contract on this scheme and the deadline for bid submission is 12 May, 2019. 

Kuwait Integrated Petroleum Industries Company (KIPIC) has received bids from local and foreign banks for the management of loans to fund the project. It had invited bids for appointing two financial advisors. The financial advisor will supervise loans sought by KIPIC from the local and foreign markets to finance the project. Because of the project's high cost, KIPIC decided to appoint two local and foreign advisors to manage domestic and foreign loans respectively. 

The marine package for the Refinery, known as Package 5, is 83 per cent complete and is set to be completed in 2020. Some of the most significant lifts offshore have been completed and the pre-commissioning of systems is likely to start soon. Italy’s Saipem had sold its marine division to France’s Eiffage but this will not disrupt the execution Eiffage is replacing Saipem on this project. Provisional turnover of some of the subsystems and units will also begin soon. The first three packages are expected to be completed at different points in the second and third quarters of this year. Package 4 is related to the building of storage tanks and is expected to be completed in 2020. 

Work on the refinery is 80% complete. Meanwhile, the $3bn LNG processing facilities within Al-Zour complex are 66.5% complete. Divided into three projects, Al-Zour complex includes a refinery, liquefied natural gas (LNG) processing facilities, and a petrochemicals complex. 

Marine construction works are currently in progress for the marine loading arms, which is slated to be completed in December 2019. 

Paints company AkzoNobel will coat the refinery as part of the country’s 2030 strategy to strengthen its energy infrastructure and local manufacturing sectors. The diverse range of protective coatings systems provided by the paints company will ensure the refinery project has the highest degree of durability, corrosion resistance and, in turn, long-term operational efficiency. More than three million litres of AkzoNobel’s products, designed to protect structures in hot, humid, and harsh environments, will be applied on valves, steel structures, and pipes of the refinery. More than 50% of this refinery will be covered in AkzoNobel’s products. 

More than 20 companies have bought prequalification documents for the main engineering, procurement and construction (EPC) contracts for the Al-Zour Petrochemical Complex. KIPIC, the project client, has already announced that companies have until September 20, 2018 to submit prequalification bids for the main EPC contracts. The documents revealed that KIPIC will divide the prequalification into two separate processes.
One process focuses on the olefins, aromatics and gasoline process units, while the other process accommodates marine work and pipelines. At present, the plan is to split the project up into three EPC packages:
a) Aromatics and gasoline unit
b) Olefins unit
c) Marine and pipelines unit
The olefins block has been provisionally estimated to be worth $1.5bn, and the aromatics 2 block has been valued at $5bn. Additionally, the gasoline block is estimated to be worth $1.3bn. These are currently provisional estimates and may change as the final scope of each unit reaches finalisation. 

Canada-based SNC-Lavalin has signed a contract worth $180 million with Kuwait Integrated Petroleum Industries Company (Kipic) for commissioning management support services at the refinery. The agreement also includes preparation and delivery of training, documentation and competency development consultancy services. Under the agreement, SNC-Lavalin will provide commissioning technical services, including master plan, start-up program development, risk assessment and management, commissioning management support, operations readiness and assurance, project phase execution activities, as well as training, competency development and assurance, documentation preparation, and the development of a knowledge management system and e-learning services, software, procedures and conducting a safe and efficient start-up and operations. 

19 companies have been pre-qualified to bid for three contracts involving maintenance work at the refinery. The government-owned Kuwait Integrated Petroleum Industries Company (KIPIC) will begin bidding procedures within a month. The three projects involve general maintenance and repair for pumps, pipelines, equipment, electrical machinery and other systems at the refinery, it added. The pre-qualified firms include Japan's JGC group, Kuwait's Finesco International General Trading and Contracting Company, Bader Al-Mulla and Brothers Company of Kuwait, Nouri and Kent Technical Contracting and Maintenance Company, SK Engineering and Construction Company and Gulf Speak General Trading Company of Kuwait. 

Fluor Corporation has announced the arrival of first modules for this project. Modules are being constructed at the COOEC-Fluor Heavy Industries Company (COOEC-Fluor) fabrication yard in Zhuhai, China. The first 14 of the 188 modules were loaded on to a shipping barge and sailed away in May 2018 to Kuwait. 

Kuwait has invited tenders for two contracts involving quality control and engineering services on this scheme. The Central Agency for Public Tenders (CAPT) has a deadline of June 26, 2018 for the engineering services contract. 29 companies are bidding for the quality control contract and the bidding date ends on August 26, 2018. 

Construction works on the New Refinery is currently in progress to start operations in May 2019. Work on the refinery is 45 per cent complete and the associated LNG facility is 21 per cent complete. The front end engineering design (FEED) for the planned petrochemical facility will not be completed this year and will be delayed. 

It is understood that the project completion is now expected to be delayed for a couple of years. 

Kuwait Integrated Petroleum Industries Company (KIPIC) will use a range of process technologies from Honeywell UOP for this project. Honeywell UOP, a licensor of refining and petrochemical process technology, will supply technology licenses, design services, key equipment, and state-of-the-art catalysts and adsorbents to produce clean-burning fuels, paraxylene, propylene and other petrochemicals. The project includes a 50,000 barrels per day (bpd) RFCC complex with ethylene and propylene recovery, and a 24,000 bpd Honeywell UOP Selectfining unit to produce low-sulfur gasoline. The contract also includes a 66,000 barrel-per-day (bpd) CCR Platforming unit with a 74,000 bpd naphtha hydrotreater to make gasoline blend stock, and an LD Parex aromatics complex - including the Honeywell UOP Sulfolane, Isomar and Tatoray processes – to make 1.4 million metric tons per year of paraxylene, a primary ingredient in plastics. 

Teams have been deployed to undertake survey work in Kuwait and engineering work is ongoing in Italy as part of the project to construct a series of feed pipelines. 

Kuwait Integrated Petroleum Industries Company (KIPIC), a subsidiary of Kuwait Petroleum Corporation (KPC), has tendered three contracts as part of the project. KIPIC was set up to manage refinery, petrochemicals and LNG import operation at the Al-Zour site. The planned petrochemicals plant will consist of an olefins facility known as Olefins III, as well as an aromatics facility known as Aromatics II. Each of the contracts is for a separate study.
- The first is a "Consultancy and Engineering Study for the Main Catalytic Cracking Unit (RFCC) for the project of Olefins III and Aromatics II".
- The second is a "Consultancy and Engineering Study for the Polypropylene Unit for the project of Olefins III and Aromatics II".
- The third is an "Engineering Study of the Propane Dehydrogenation (PDH) for the project of Olefins III and Aromatics II".
Each of these contracts is specific type of negotiated contract known as a mumarasa. The front-end engineering design (feed) work for the planned petrochemicals plant is proceeding on schedule. 

KNPC has prequalified three international oil and gas companies to bid on the technical services agreement for the refinery, petroleum and liquefied natural gas (LNG) complex at Al-Zour. It is understood that British Petroleum (BP), Anglo-Dutch oil major Shell and French energy giant Total, have been invited to submit bids before October 26, 2017. The LNG import terminal, being built to meet domestic demand for fuel will become operational in 2020. Construction is underway with the facility set for a 2019 completion date. 

The feed study for the petrochemicals facility will be completed by June 2018 and the facility is expected to become operational in 2023, four years after the Al-Zour New Refinery. Three packages are expected to be tendered. 

Local S.K.M Air Conditioning has been awarded a contract to supply HVAC Equipment for the project. 

Front-end engineering design (FEED) work for the planned petrochemicals plant at Al Zour site is proceeding on schedule. The 17-month contract, signed in January 2016, is expected to be completed by end of June 2018. The project is expected to be divided into three EPC packages. The exact scale and scope is not yet known. 

Technology providers have submitted bids for contracts to provide proprietary technology for the petrochemicals facility that is due to be integrated with the New Refinery Project. Total value of the facility's EPC contracts for the scheme are expected to be worth between $2.8 billion and $5 billion. The facility is expected to include units to produce polypropylene, paraxylene and gasoline. 

Italy's Saipem has been awarded the final EPC contract on this project. Documents were signed at a ceremony on August 15, 2017. Saipem bid $842 million for the contract. Scope of the package includes construction of a series of feed pipelines with a total length of 350 kilometers. 

The marine package in this development is progressing on schedule. Remediation work on the site for package, known as Package 5, was completed in April 2017 and installation of main components is currently ongoing. 

Client is likely to award the EPC contract in August 2017 to build feed pipelines with a total length of 350 kilometers, which will supply 615,000 b/d of crude oil and 300 million cubi feet a day of gas feedstock for this upcoming refinery. The delay in award is due to allegations of corruption amongst contractors. 

Italy's Saipem is front runner for the final package on this project, which involves building the feed pipelines, after submitting the lowest bid of $842 million, followed by South Korea's SK Engineering at $846.7 million and a consortium of Lebanon's Consolidated Contractors Company (CCC) and Spain's Tecnicas Reunidas at $855 million. 

Local Mushrif Trading & Contracting Company has completed the Site Preparation and Early Road works on this scheme. 

Client has invited prequalified contractors to submit bids by June 18, 2017 for the EPC contract to build feed pipelines with a total length of 350 kilometers. Scope of work involves construction of feed pipelines to supply crude feedstock and fuel gas from South Tank Farm facilities in Ahmadi to the Al-Zour New Refinery Project (NRP). Seven companies have been prequalified for the EPC contract. They include:
- South Korea's Daelim
- Japan's JGC
- US's KBR
- South Korea's SK Engineering
- Italy's Saipem
- Canada's SNC Lavalin
- Spain's Tecnicas Reunidas. 

Construction works are currently in progress. 

Local Combined Group Contracting Company and Spain's Tecnicas Reunidas have signed a contract worth $75 million as part of Package 1 of this project. Duration of the contact is (24) months. 

Local Mushrif Trading & Contracting Company has been selected to carry out the Early Roads and Site Preparation of Offsite Camps and Lay-down Areas on this scheme. Work is currently in progress and expected to be completed in January 2017. 

Van Oord has successfully executed the impressive ground improvement works for this scheme. The contract, which commenced in 2014, involved the reclamation of 65 million cubic meters of sand and extensive soil improvement. The reclamation area is 1,320 hectares. This reclamation work was the first phase of client's investment program for the new refinery. 

UK-based Mackley Civil Engineering has successfully completed the work to create a barge dock at the site of this refinery. The contract, which was sub-contracted to Mackley by Van Oord, took six weeks to complete with the assistance of local workforce. The barge dock provides a heavy loading berth, which is essential for construction of the refinery. Works undertaken by Mackley included the design, supply and construction of the barge dock combination wall. With work now complete, this barge dock will start receiving construction equipment and materials arriving by sea, some of which will weigh more than 400 tons. 

It is understood that the study into the possible integration of a petrochemical facility with the Al-Zour New Refinery is due to see completion before April 2016. The study has seen numerous delays. 

A study for the construction of a large petrochemical complex is expected to be completed this month and presented to Kuwait National Petroleum Company (KNPC). The study would allow KNPC to decide whether to build a complex for production of olefin, polypropylene or aromatics. Designs for the estimated $13 billion project would then be prepared and the foreign partner in the development would be a South Korean or a Japanese company given their experience in petrochemicals projects. The planned venture will be presented shortly to the Supreme Petroleum Council for approval at its next meeting. The new venture is called Kuwait Petrochemicals & Refinery Company. 

Client is preparing for the integration of this refinery with a large petrochemical facility, which is estimated to be worth $5 billion and $10 billion. Details on the time-frame or budget of the project has not been disclosed. 

Client has announced that it will set up a new company to run this complex. Known as KBRC, it will also manage a planned permanent liquefied natural gas (LNG) import terminal.Setting up KBRC would allow the independent management of the projects under one structure. 

Client is expected to launch this complex involving a refinery and a massive petrochemical plant in February 2016. An international consultancy is carrying out a feasibility study on the project to integrate the petrochemicals plant into the refinery scheme and it would be completed this month. Investments include $16 billion for Al-Zour oil refinery, $10 billion for the petrochemicals complex and $2 billion for gas supply facilities. 

EPC contracts on this project have been signed at a ceremony in the offices of the client. The five EPC contracts have a total value of $13 billion. Commissioning of the refinery is expected to commence in November 2019. 

It is understood that the signing ceremony for contracts to build this refinery is due to be held on October 13, 2015. Documents are currently being processed. 

The signing ceremony for contracts to build this refinery is due to be held in first half of October 2015. Client is planning to sign all five EPC contracts, worth a total of $13 billion, in the same ceremony. Contractors have been informed that the ceremony will take place in early October and asked to submit names of the executives that will be representing them at the signing. 

Italy's Saipem has been awarded contracts worth $3 billion for Package 4 and Package 5 of this scheme. Package 4, for which Saipem has received award notification in joint venture with India's 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 refinery. The contract is worth $1.57 billion. Package 4 will be completed by the beginning of 2019. Package 5, for which Saipem has received award notification in joint venture with South Korea's Hyundai Engineering & Construction and SK Engineering & Construction, consists of offshore maritime export facilities for the refinery. This contract is also worth an estimated $1.5 billion. Scope of work includes engineering, procurement, construction, pre-commissioning and assistance during commissioning/start-up/performance testing for a solids pier, sulfur pelletizing/conveying, sub-sea outfall lines, a construction dock, an offshore sea island and a small boat harbor. Package 5 will be completed by the second half of 2019. 

It is understood that four contracts worth $11.5 billion have been awarded to international consortiums.
A $4.25 billion contract for the main manufacturing units has been awarded to Spain’s Tecnicas Reunidas China’s Sinopec Engineering, South Korea’s Hanwa Engineering & Construction Corporation.
The second and third contracts for infrastructure worth $5.75 billion have been awarded to a consortium of US’ Flour Limited and South Korea’s Hyundai Heavy Industries and Daewoo Engineering & Construction.
A fourth contract worth $1.5 billion has been awarded to South Korea’s Hyundai Engineering & Construction and SK Engineering & Construction and Italian Saipem to build the Marine Export Terminal.
A fifth contract is expected to be awarded within the next two weeks. 

Client has directed Central Tender Committee (CTC) to proceed with the contract award process for Packages 1,2,3 and 5. The decision has been taken after the increase in budget approved from Kuwait petroleum Corporation (KPC) and Supreme Petroleum Council (SPC). 

With a lowest bid worth $13 billion for four out of five packages, Korean builders are reportedly likely to win contracts for a large portion of this scheme. Italy and India have submitted the lowest bids for the fourth package, but continue to remain in budgetary negotiations with clients. Awards are anticipated in the month of August 2015. 

Kuwait's Supreme Petroleum Council has endorsed a request to sharply increase the budget for this scheme after most of the bids exceeded initial estimates. It is understood that the figure has been increased by $2.9 billion. Tenders are now expected to go ahead and some contracts are likely to be awarded as early as next month. Initial capacity of this state-of-the-art refinery was 615,000 barrels per day, but will now range between 600,000 and 800,000 bpd. 

It is understood that the client has approved $2.87 billion in extra funds for this project, increasing optimism that the five main packages will soon be awarded. But before contracts can be awarded, the extra funds still need to be approved by Kuwait's Supreme Petroleum Council, the government agency charged with oversight of the country's energy sector. 

A consortium of Italy's Saipem and India's Essar have submitted the lowest bid of $1.57 billion for the tankage package on this scheme. This is $235 million more than the original lowest bid of $1.4 billion, which was also submitted by the Saipem-Essar consortium. Other bidders for the contract include South Korea's Daelim at $1.7 billion and South Korea's Daewoo at $1.8 billion. A consortium of UK-based Petrofac and South Korea's Hyundai Heavy Industries also bid for the contract with a price in excess of $2 billion. The official bid list is yet to be announced by Kuwait's Central Tenders Committee. The fact that the lowest bid on the re-tender has come in higher than the original low bid is expected to add to the existing problems for this project. Currently, the client is struggling to secure approval for a budget expansion for this scheme from the national oil company Kuwait Petrochemical Corporation (KPC). 

The client has invited the tenderers to collect CDs including Supplement Nos. 5, 6 and 7 from the Internal Tenders Committee, Head Office, Room 1A- 046 for Package 4 (NRP/EPC/0059). 

The client has invited the tenderers to collect CDs including Supplement Nos. 5, 6 and 7 from the Internal Tenders Committee, Head Office, Room 1A- 046 for Package 4 (NRP/EPC/0059). 

Client has extended the bid deadline by 2 weeks for the re-tender of Package 4 on this scheme (NRP-EPC/0059), moving it back from June 23, 2015 to July 07, 2015. 

Client announced that it has obtained final approval from the board for an additional $2.6 billion of funds for this project, following a sharp rise in the value of submitted bids. This increase has pushed up the scheme's total investment to between $14.95 billion to $15.5 billion. Additional packages of the project will be awarded after funds are approved by the country's Supreme Petroleum Council. The construction start-up date of this refinery is expected to be pushed beyond early 2019. Client has also invited the tenderers to collect a set of CDs containing Supplement Nos: 1, 2, 3 and 4 from the Internal Tenders Committee, Head Office Room 1A-046 for Package 4 on this scheme. 

Bidders on packages one, two and three on this scheme have been asked to renew their bid bonds, indicating that Kuwait authorities are yet to have approved the client's request for a budget increase. The Central Tenders Committee issued a letter on May 17, 2015 asking consortium leaders for the three process packages to extend their bid bonds until December 06, 2015. 

All four groups that previously bid on Package 4 of this scheme have picked up new tender documents after the announcement of re-tender. This indicates that all four companies are considering re-submitting new bids ahead of the deadline in June 2015. The new documents have been given the tender code: NRP/EPC-0059. 

It is understood that the client is yet to decide on whether to integrate a petrochemical facility into this project. KBC Advanced Technologies is currently carrying out the feasibility study, which is due to be completed in three to four months. 

Client has officially announced its decision to re-tender Package 4 of this project. The process will be fast-tracked and the closing date for submission of bids is June 23, 2015. There is ongoing speculation that other packages of this scheme will also be re-tendered. 

The client has submitted an application to re-tender Package 4 of this project and is waiting for approval from Kuwait's CTC, which is expected to make a decision on the re-tender at some point over the next few weeks. Package 4 consists of storage tanking, piping and underground works for the planned refinery. 

Client is planning to re-tender the tankage package of this scheme. The package consists of storage tanking, piping and underground works for the planned refinery. A fast-track re-tendering process is being considered, which could be carried out in a matter of weeks and may involve minimal adjustment to project scope. Client has announced that it is dropping applications for the fourth package and seeking additional budget for the first, second, third and fifth packages. There is ongoing speculation that Package 5 may also be re-tendered. 

It is understood that a decision regarding the re-tendering of the project is expected to be made after a month. 

Client is studying how to proceed with this project after bid submitted for the five packages came in 20% above budget. It is understood that the client could resort to a reserve fund set up for the project if needed, but this would still not cover the gap. Client will decide on a mechanism to deal with the five packages, either by re-tendering, or by getting new competitive bids or by going ahead with the project if it is found that the prices submitted are realistic and are not exaggerated. 

It is understood that contractors have submitted bids for the process and utilities package. Names of bidders have not yet been disclosed. 

Contractors are preparing to submit bids for the process packages on this scheme as the deadline of March 08, 2015 approaches. The process packages are known as packages one, two and three, and have a total value of $9.6 billion. Packages four and five are for the tankage and marine facilities respectively. Bids for both schemes are currently under evaluation. 

Client is reviewing options for the integration of a petrochemical facility with this project after being presented with findings from an ongoing study conducted by KBC Advanced Technologies. The study is still at feasibility stage and is likely to be completed in third quarter of 2015. It was previously expected that the ongoing study would be completed within the first half of this year. Contractors bidding on packages for this scheme have been warned by the client that plans may change in the execution phase due to integration of the petrochemicals facility. The time-frame for construction of petrochemicals plant is yet to be decided, but it is likely to start one or two years after completion of the refinery. 

It is understood that the client is considering re-tendering Package 4 in this development if negotiations with the lowest bidder, Saipem, over risk premium fail. Saipem's bid has not been specified nor the expected costs of Package 4, but the client has estimated the combined cost of Packages 4 and 5 at around $1.1 billion. It hopes to close bids for Packages 1, 2 and 3 on March 08, 2015 if bidding prices are close to the budget allocated for those projects. 

Client is meeting contractors today to discuss spending on Package 5 of this project. Contractors have been told that the subject of this meeting will be to resolve problems connected to the difference between the value of bids and value of the project's budget. Budget for this package is $850 million, but it is understood that the lowest bid came in at almost twice this amount. The full list of bidders are:
- Hyundai E&C / Saipem / Essar at $1.55 billion;
- GS Engineering & Construction at $1.63 billion;
- Daelim Industrial Company at $2.5 billion.
The contract award is scheduled in May 2015, but it is expected that there may be delays due to the lowest bid coming in at nearly double the estimated budget. 

Client has once again extended the deadline to bid for packages 1, 2 and 3 on this scheme by nearly a month from the previous deadline of February 08, 2015 in an attempt to secure lower bids post sharp decline in global oil prices. The new deadline is March 10, 2015. The three packages have not been specified, but is understood to involve main work at the refinery valued at nearly $9.3 billion. Contract awards are expected in April 2015. 

Bids have been submitted on January 06, 2015 for the marine package on this scheme. A consortium comprising South Korea's Hyundai Engineering & Construction, Italy's Saipem and India's Essar is the lowest bidder with a bid of $1.55 billion. Other bidders include:
- South Korea's GS Engineering & Construction at $1.56 billion;
- South Korea's Daelim Industrial at $2.45 billion.
It is understood that three other prequalified bidders did not submit a final price. They are South Korea's Daewoo Engineering & Construction, US' McDermott International and a consortium of UK's Petrofac and South Korea's Hyundai Heavy Industries. Estimated budget for this package is $850 million. A contract award is expected in May 2015, but there may be delays due to the lowest bid coming in at nearly double the estimated budget. If the consortium of Hyundai E&C is awarded this package, it will be responsible for constructing the following:
- Pile-supported pier for berthing of a single vessel with equipment for loading and shipping operations
- Sulphur pelletising and conveying system, including conveyor units and circular storage tanks with a capacity of 60,000 tonnes
- Sub-sea outfall lines
- Construction dock for offloading heavy lift items
- Offshore sea island located at a depth of 20 meters, about 17.5 kilometers from shore. This will be a piled structure capable of berthing four liquid tankers and loading liquid products through marine loading arms. It also consists of metering systems, a vapor recovery system, power and utility generation, crew accommodation, a control and observation building, mooring and navigation monitoring systems, communications systems, small boat landing, helipad, emergency escape craft and other infrastructure
- Small boat harbor with a sheltered approach, a fueling depot and berthing areas for support craft. 

A consortium comprising Italy's Saipem and India's Essar is understood to be the lowest bidder for Package 4 with a price of $1.4 billion, followed by South Korea's Daelim at $1.73 billion; South Korea's Daewoo at $1.93 billion; and a consortium of UK's Petrofac and South Korea's Hyundai Heavy Industries at $2.1 billion. South Korea's GS Engineering & Construction prequalified for the contract, but did not submit a bid. The package includes construction of the following:
1) Five floating-roof tanks
2) 28 fixed-roof tanks
3) Two dry slop tanks
4) Two wet slop tanks
5) A plant fuel oil tank
6) A continuous flushing oil tank
7) An intermittent flushing oil tank
8) Four crude pipelines
9) Two imported fuel gas lines
10) Three low sulphur fuel oil pipelines
11) A new liquid petroleum gas line
12) A new low sulphur diesel line. 

Client has further extended the deadline to submit bids for the marine package (Package 5) to January 06, 2015. Winner of the contract will be responsible for constructing the following:
- Pile-supported pier for berthing of a single vessel with equipment for loading and shipping operations;
- Sulphur pelletizing and conveying system, including conveyor units and circular storage tanks with a capacity of 60,000 tonnes;
- Sub-sea outfall lines;
- Construction dock for offloading heavy lift items;
- Offshore sea island located at a depth of 20 meters, about 17.5 kilometers from shore. This will be a piled structure capable of berthing four liquid tankers and loading liquid products via marine loading arms. It also consists of metering systems, a PCN vapor recovery system, power and utility generation, crew accommodations, a control and observation building, mooring and navigation monitoring systems, communication systems, small boat landing, helipad, emergency escape craft and other infrastructure;
- Small boat harbor with a sheltered approach, a fueling depot and berthing areas for support craft. 

Client has once again extended the deadline to submit bids for Package 5 and the Tankage Package to December 07, 2014. US' Honeywell will provide its proprietary Experion PKS integrated control and safety system (ICSS) to serve as the main control system. US' Fluor is the technology licensor for the CDUs, AR plants, HR, HC and SWS units; while US' Chevron Lummus Global will license technology for the ARDS units. Technologies for the DHTUs, SRU and TGTU will be licensed by Shell Global Solutions. The technology licensor for NHTUs, HPUs and KHTUs is Haldor Topsoe. 

Client has extended the deadlines to submit bids for the EPC contracts on this project in order to give contractors more time to prepare their bids and respond to 2,300 queries from bidders. Submission of bids for packages 1, 2 and 3 have been extended until the end of 2014 or the first week of January 2015, while packages 4 and 5 have been set for November 09, 2014. The five packages have a combined value of around $11.6 billion. 

It is understood that Dutch dredging company Van Oord has completed nearly 9% of land reclamation work on this project. Client is still planning to tender the main refinery contract in packages through the 2014-2015 fiscal year, but no dates have been specified. 

CTC has invited companies who purchased the tender documents to collect Supplement No. 3, 4 and 5 for Package 4, Supplement No. 2, 3 and 4 for Package 5 and Supplement No. 1 for Package 1, 2 and 3 from its offices. 

CTC has invited the tenderers who have purchased the tender documents to collect the Supplement No. 1 & 2 for package 4 and Supplement No. 1 for package 5 from its offices. 

Joint-venture of South Korea’s GS Engineering & Construction Corporation and local Al-Kazemi International General Trading & Contracting Company has been invited to submit bids for EPC contracts of package four and five. 

Client has agreed to pre-qualify six international consortiums for the first 3 packages on this development, worth $9 billion. The companies include Japan's JGC Corporation; US' Fluor Corporation, KBR; UK's Petrofac; Italy's Saipem; and Spain's Tecnicas Reunidas. It is understood that Chiyoda Corporation has quit the bidding process just before the six consortiums were pre-qualified. A reason for this has not been specified. The six consortiums will bid for three major packages, which will be tendered after the list is approved by the Central Tenders Committee. The first package involves refining operation units, the second covers support units and the third is for construction of water, steam, power and connection units. 

Client has pre-qualified five companies to bid for package 4 & 5 of this project. The two packages, worth around $2 billion, involve engineering, supply, construction and preparing the operation of the new refinery project.
The pre-qualified companies for package 4 are (0044/NRP/EPC):
- Joint venture of South Korea's Hyundai Heavy Industries and UK's Petrofac
- Joint venture of Italy's Saipem and India’s Essar Projects Limited
- South Korea's Daelim
- South Korea's Daewoo Engineering
The pre-qualified companies for package 5 are (0045/NRP/EPC):
- Joint venture of South Korea's Hyundai Heavy Industries and UK's Petrofac
- Joint venture of South Korea's Hyundai Engineering, SK Engineering & Construction and Italy's Saipem
- South Korea's Daelim
- South Korea's Daewoo Engineering
- US-based McDermott International.
Tender document price for both the packages is US$ 71,430 and the bid bond is KD 5,000,000. The client would meet representatives from these consortiums on May 27-28, 2014 to discuss the project. Bids will close on September 14, 2014 and companies have been given a deadline of June 29, 2014 to submit their queries. 

It is understood that the client will invite bids for three EPC contracts on this development in May 2014. 

Netherlands' Van Oord has been awarded a contract worth $695 million to provide land reclamation services on this project. The contract will see Van Oord dredge up to 65 million cubic meters of sand in Al-Zour area for construction of the refinery. Work will commence immediately and be completed within (30) months. 

It is understood that the client is expected to announce a short-list of international EPC firms by March 15, 2013