Project Profile
Value: US$15 billion
Location: Al-Zour, 90 km south of Kuwait City, Kuwait
Capacity: 615,000bbl/day
Start-up Year: early 2018
The Al-Zour Refinery will be a 615,000-b/d refinery (including kerosene and diesel); which is expected to replace the aging 20,000bpd Shuaiba refinery.The refinery will be the largest in the region, and one of the largest in the world. By its design, it will produce low-sulphur fuel oil. The project has been divided into four major parts: two manufacturing units, utilities and services, and finally storage tanks and a pier. The new contract will be based on a cost-plus-profit margin, which means that Kuwait will pay the cost of the project to the successful bidder, plus an agreed profit. Construction of the refinery is to start in 2008. The project is expected to finish in mid 2017. The refinery, one of the world\'s largest, is part of a mega clean fuel project launched by Kuwait to nearly double its oil refining output capacity to 1.4 million bpd. The project also involves the development of two other refineries.
Package 1 is a US$3,500 million process package, the largest of the four main engineering, procurement and construction contracts.
Package 2 is a US$3,000 million second process package, including the VDU and CDUs.
Package 3 is the offsites and utilities package.
Package 4 covers the tank farm and inter-connecting pipelines.
Package 5 covers marine works, including jetties and roll-on, roll-off berths.
Operator:
Kuwait National Petroleum Company (KNPC): Operator with 100% interest
Contractors:
Saipem SPA: EPCC contract
ABJ Engineering & Contracting Company (KSC): Early civil works
ATB Riva Calzoni: Reactors for the ARDS units
Belleli Energy CPE SpA: Reactors for the ARDS units
Chevron Lummus: Atmospheric residue desulpherisation (ARDS) unit
Consortium for consultancy contract:
Amec Plc
Foster Wheeler
Fluor: FEED contract
Foster Wheeler: Feasibility study
GE Nuovo Pignone: Reactors for the ARDS units
Haldor Topsoe A/S: Technology service provider
Honeywell: Provide the integrated control and safety system for the refinery as well as FEED contract
Japan Steel Works: Reactors for the ARDS units
Van Oord: A land reclamation project in Kuwait
Saipem & Essar Projects Limited: Contract for Package 4 and Package 5 of the Al-Zour New Refinery Project (NRP), for a total amount of approximately US$1.3 billion. The 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.
Saipem, Hyundai Engineering & Construction and SK Engineering & Construction: EPC Package 5, for which consists of the 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 Harbor. Package 5 will be completed by the second half of 2019.
Fluor, Hyundai Heavy Industries and Daewoo Engineering & Construction: Two engineering, procurement and construction contracts for the al-Zour refinery in Kuwait. Facilities in the two packages will include a variety of key process units, utilities and infrastructure for the new Al-Zour oil refinery project in Kuwait that is expected to produce 615,000 barrels-per-day. (October 2015)
Amec Foster Wheeler: Secured Front-End Engineering Design (FEED) leading to Project Management Consultancy (PMC).