Kuwait’s New Refinery Contractors submit bank guarantees.

Three international consortium awarded multi-billion dollar refinery deals by Kuwait last month have submitted bank guarantees to the Gulf emirate and are expected to formally sign the contracts on April 10, a Kuwaiti newspaper reported on Monday.

National Bank of Kuwait (NBK) has offered guarantees to two consortium while National Bank of Abu Dhabi (NBAD), one of the largest banks in the Arab region, has signed a guarantee agreement with the remaining consortium, the Arabic language daily Al Anba said, quoting unnamed sources in the Kuwaiti National Petroleum Company (KNPC).

The paper said the three guarantee deals have a total value of around KD165 million ($ 595 million) but it did not mention the value of each package.“The three consortium have submitted bank guarantees for the contracts ahead of the deadline set by KNPC on Monday,” the report said.“KNPC sources said they expected the clean fuel project (CFP) contract, the largest refining deal in Kuwait, to be signed on April 10.”

Kuwait, a key Opec oil producer, has awarded three contracts worth nearly $ 12 billion to consortium led by Japanese, British and US firms for the development of its Mina Abdullah and Mina Al Ahmadi refineries. The groups include JGC Corp of Japan, the UK’s Petrofac, and Fluor Corp of the US.

The CFP project, which also includes construction of the 615,000-bpd Al Zour refinery in southern Kuwait, will nearly double the country’s refining production to around 1.4 million bpd.

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Siemens to help KNPC boost power supply with KWD 68.2 mln substations deal

Siemens, the global powerhouse in electronics and electrical engineering operating in the energy, infrastructure, industry and healthcare sectors, has been awarded a turnkey contract by the Kuwait National Petroleum Co., known as KNPC, to supply high-voltage substations at refineries south of the city of Kuwait. The project, valued at 68.2 million Kuwaiti Dinars, will provide reliable power supply to two of KNPC’s biggest refineries. The project is scheduled for completion in December 2015.

Under the contract, one of the largest for the Siemens Energy Transmission busi-ness in Kuwait, Siemens will supply and install a 132kV substation AHRF “C” at the Mina Al Ahmadi Refinery (MAA) and a 300/132kV substation MARF “W” at the Mina Abdulla Refinery (MAB), including high-voltage cable connections. The works will fit in with KNPC’s Clean Fuels Project, which will see a major upgrade and expansion of the MAA and MAB refineries to integrate the company’s Refining System into one Refining Complex. The Clean Fuels Project seeks to make fuel production in Kuwait more environmentally-friendly. 

“Siemens is proud to be supplying the latest high-voltage technology to KNPC,” said Adrian Wood, CEO of Siemens EES, the Kuwaiti unit of Siemens AG. “This project will both enhance and make sure a reliable power supply is available to help Kuwait meet its future market demand for transport fuels by 2020, as it seeks to increase processing capacity at its refineries.”

KNPC and Siemens have had a long-standing partnership dating back to 1975. Prior to this contract, Siemens supplied many industrial steam turbines and compressors to KNPC for use in their oil refinery projects, and implemented substation works at Mina Abdulla Refinery (MAB), Mina Al Ahmadi Refinery (MAA) and part of the New Acid Gas Revamp Project (AGRP).

“Our partnership with KNPC aims to assist the company in meeting its expansion goals by using the most efficient power transmission systems from Siemens,” said Wolfgang Braun, Head of Siemens Power Transmission Middle East. “This contract will provide the latest high-voltage substations to KNPC to help it mitigate losses and boost profitability by ensuring minimal downtime at its refineries.”

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US based Golar scores $213m deal with KNPC.


US-based Golar has signed a $213m deal with the Kuwait National Petroleum Company (KNPC) to provide floating storage and regasification (FSRU) services to support their LNG import operations at Mina Al Ahmadi.

The five-year contract comprises the provision of portside FSRU services for an anticipated nine months of the year together with a three-month window where the vessel is free to pursue spot carrier and other short term business opportunities.

Winter scheduling of the three month stand-down period together with favorable positioning mean that the company is optimistic for the vessels trading prospects.The 170,000cbm new-build FSRU Golar Igloo will be delivered during the fourth quarter of 2013 and will service a contract set to start in March 2014.

Golar CEO, Doug Arnell said: “Kuwait is an established LNG importer and we look forward to working closely with our new customer.  We are very pleased that an experienced LNG industry player such as KNPC has entrusted Golar with their FSRU services which demonstrates our established reputation as a leading operator of floating midstream LNG assets.

“As this is a five-year charter, the vessel will be offered to Golar LNG Partners L.P. (“Golar Partners”) to acquire providing for another potential acquisition with a new and particularly strong counterparty.”

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A New Zealand oil and gas services firm wins a deal in Kuwait.

Contract Resources,New Zealand

Contract Resources, a New Zealand oil and gas services firm, is confident of securing a deal in Kuwait and the booming Middle East refinery sector according to media news.

Andrew Wells, CEO for Contract Resources, said the company, a specialist in catalyst handling and mechanical services, was confident of securing a five-year contract with Kuwait National Petroleum Company, which in 2011 recorded a net profit of about $2.1bn from revenues of nearly $50bn.

Wells said the firm, which does about 90% of its business overseas, currently had a very little market share in the Middle East, but that its refineries and petrochemical plants are of enormous potential.

“New refineries and plants in the Middle East are nothing new, but the scale of them is quite impressive,” he said. “Kuwait has three refineries, and if we win that contract it would be the largest catalyst handling contract left in the world. It’s high hazard but the hazards are very well managed.”

Contract Resources was valued at $116m in a recent 85%-acquisition by Auckland-based Hellaby Holdings. This year, the firm is forecast to achieve revenues of $150m this year.

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Kuwait National Petroeum (KNPC) prequalifies EPC groups for clean fuels project.

 KNPC-Clean Fuel Project

State-refiner Kuwait National Petroleum Corporation (KNPC) has prequalified seven engineering, procurement and construction (EPC) groups to bid for its estimated $18bn refinery upgrade megaproject.

The clean fuels project (CFP) covers the upgrade of the Mina al-Ahmadi and Mina Abdullah refineries to boost their combined capacity to 800,000 barrels a day (b/d) from 736,000 b/d.

The project has been split into three packages. The first covers process units and revamp work at the Mina al-Ahmadi refinery. The second package is for process units at the Mina Abdullah and Shuaiba refineries, while the final package covers the entire scope of facilities at Mina al-Ahmadi. The consortiums will only be allowed to bid on a maximum of two of the three packages available.

KNPC is yet to announce the prequalified firms for its second megaproject to build a new 615,000 b/d refinery at Al-Zour in the south of the country.

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Kuwait to shortlist firms for refinery megaprojects by 15 March.


Shortlist announcement for Kuwaiti refinery megaprojects expected by 15 March,2013.

Kuwait National Petroleum Company (KNPC) is expected to announce by 15 March its shortlist of international engineering, procurement and construction (EPC) firms in Kuwait to bid for two of the region’s largest downstream projects.

According to sources in Kuwait, at least seven groups of engineers and contractors submitted their documents in October. The firms came together to prepare for the clean fuels project (CFP) and new refinery project (NRP) for KNPC.

Combined, the schemes are worth an estimated $30bn.

The CFP covers the upgrade of the Mina al-Ahmadi and Mina Abdullah refineries to boost their combined capacity to 800,000 barrels a day (b/d) from 736,000 b/d. The estimated $18bn scheme is split into three packages. One covers process units at Mina al-Ahmadi. Another involves process and revamp work, as well as offsites and utilities, at Mina Abdullah and the state’s third refinery at Shuaiba. The final package covers the entire scope of facilities and services at Mina al-Ahmadi.

The new refinery, planned for Al-Zour in the south of Kuwait, has been split into five packages, covering crude distillation and atmospheric residue desulphurization units, hydrogen compression and recovery units, offsites and utilities, tanks and marine facilities.

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