According to Mohammad al-Ajmi, spokesperson for Kuwait National Petroleum Company (KNPC), the combined value of the bids made by the companies amounted to approximately $8.3 billion.
It is reported that a consortium of Japanese JGC and South Korea’s GS Engineering and Construction won the $4 billion contract for the main manufacturing units. Korea-based SK Engineering and Construction won the subsidiary units contract for $2.06 billion, while Daelem Industries, another South Korean firm, won a contract of tanks for $1.18 billion.
The contract for offshore facilities, estimated at $1.12 billion, was awarded to Korea’s Hyundai Engineering and Construction. According to the report, a $2 billion consultancy contract had previously been awarded to US Fluor Engineering.
A total of $15 billion have been set aside by the country to build the 615,000 barrels per day refinery in southern Al-Zour area. The contract winners are likely to benefit from the projects because the contracts will be based on a cost plus profit margin, where in Kuwait will be paying the cost of the project plus an agreed profit which has not been disclosed yet.
The project is likely to commence later in 2008 with 2012 set as the completion date.
