Kuwait National Petroleum (KNPC) has awarded a $1.3bn contract to Saipem for delivery of package 4 and 5 of the Al-Zour new refinery project (NRP), located 90km south of Kuwait City.
Designed to meet the demand of ultra low-sulphur petroleum products, the 615,000 barrels per day Al-Zour new refinery will feature hydro-processing technologies to convert light and heavy crudes into low sulphur fuel oil (LSFO) and lighter products.
The refinery is being developed through five major EPC packages.
Under the package 4 contract, Saipem and its partner Essar Projects will be responsible for the engineering, procurement, construction, pre-commissioning and assistance during commissioning/start-up/performance testing for the tankages.
The partners will also be responsible for related road works, buildings, pipe racks, pipelines, water systems and control systems for the Al-Zour refinery.
As part of the package 5, Saipem will partner with Hyundai Engineering & Construction and SK Engineering & Construction to build the offshore maritime export facilities for the project.
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.
Saipem expects the package 4 of the refinery project to be completed by early 2019 and package 5 by the second half of 2019.
Saipem CEO Stefano Cao said: "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."