Kuwait Seeking Around $10bn Loan For Clean Fuels Project.

Kuwait National Petroleum Co. (KNPC), a state run refiner, is in talks with banks to raise a loan worth around $10 billion to expand and refurbish the Gulf Arab state’s main refineries, according to five sources aware of the matter.

Part of Kuwait’s KD30 billion ($99.6 billion) economic development plan, the Clean Fuels Project will upgrade and expand two of its largest existing refineries to focus on producing higher-value products such as diesel and kerosene for export.

Local and international banks are talking with the company, which is responsible for the oil refining and gas liquefaction industry in addition to the marketing of petroleum products in Kuwait, said the sources who spoke on condition of anonymity as the information is not public.

A company source, declining to be named, confirmed the talks were talking place to fund around 70 percent of the total project cost without elaborating.

While discussions are at an early stage, KNPC is said to be seeking funds which will last between seven and 10 years, according to four sources.

One of the sources, at an international bank, added that a grace period to allow for construction to take place would mean repayments begin after four years.

The Clean Fuels Project is expected to be completed by May 2018 and to be fully operational by the end of 2018, Mohammed Ghazi al-Mutairi, chief executive of KNPC, told Reuters in September.

Banks who have been contacted by KNPC about participating in the project have been asked to revert by May 10, the sources at the international bank said. NBK Capital, the investment banking arm of the National Bank of Kuwait, is advising KNPC.

Under the project, the capacity of the Mina al-Ahmadi refinery will drop to 347,000 barrels per day (bpd) from 466,000, while Mina Abdulla refinery’s capacity will rise to 454,000 bpd from 270,000.

The reduction in the capacity of the Ahmadi refinery after shutting one of its crude distillation units will be compensated for by adding new units to produce higher-value products.

Contracts worth around $12 billion were awarded in February 2014 to international companies including Japan’s JGC Corp , Britain’s Petrofac and U.S.-based Fluor Corp for construction work on the project.

In November, KNPC said it would spend $40 billion in the period to 2022 on projects including a new refinery and a clean fuels project.

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Hot News !!!!!!!! KNPC launches new clean fuels project tender today.

 Foster & Wheeler

Kuwait National Petroleum Company (KNPC) announced that it has issued a new tender for its long awaited $18bn Clean Fuels Project at the Mina al-Ahmadi refinery.

The tender covers the engineering, procurement, construction and commission (EPCC) of new units at the refinery, including a fluid catalytic converter and sweet water treatment unit. The work has been split from the main Mina al-Ahmadi process package, according to a source close to the deal.The source indicated that KNPC wants to get the work done urgently, before it gets tied up with the main CFP packages.

Estimated to be worth less than $200m, the scheme is relatively small compared to the $18bn overall value of the clean fuels project. KNPC invited a number of international EPC firms to express their interest in late-2012, but the response has been limited. Seven EPC firms have been prequalified to bid for the deal by 2 April.

These are:
• ABB (Switzerland)
• Daelim Industrial (South Korea)
• Hyundai Engineering & Construction (South Korea)
• JGC Corporation (Japan)
• Larsen & Turbo (India)
• Petrofac (UK)
• Punj Lloyd (India)

KNPC has set a fee of KD2,500 ($8,875) for the tender documents and a bid bond of KD1m ($3.55m). A pre-tender meeting will be held on 10 February. The deadline for enquiries has been set for 25 February.

The clean fuels project had been split into three major EPC packages, with the US’ Fluor as the project management consultant during the front-end engineering design (Feed) stage. The project aims to increase processing capacity at the Mina al-Ahmadi and Mina Abdullah refineries to 800,000 barrels a day (b/d) from 736,000 b/d. The older Shuaiba refinery will also be retired. 

KNPC invited EPC firms to prequalify for its two major downstream projects in April 2012 and set the clean fuels project going with the approval of South Korea’s Samsung Construction & Trading for preparation works.


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Breaking News !!!!!!! Samsung C&T’s wins KWD 38.3 mln civil work contract from Kuwait.

Kuwait’s Central Tenders Committee (CTC) has approved South Korea’s Samsung Construction & Trading (C&T) for a major civil works contract, ahead of Kuwait’s long-awaited Clean Fuels Project (CFP) tender.

Samsung’s price of KWD 38.3 million ($136.4 million) was approved by the CTC, which monitors major public tenders on December 3, less than two months after bids were submitted. A contract with state refiner Kuwait National Petroleum Company (KNPC) is now little more than a formality.
A total of seven engineering and construction firms submitted bids on 9 October.

The project is the first contract to be awarded as part of the preparation works for the CFP, which will upgrade and expand the Mina al-Ahmadi and Mina Abdullah refineries, along with the retirement of the aging Shuaiba refinery.

The estimated $18 billion megaproject, which will be tendered in three packages, will increase the processing capacity of the Mina al-Ahmadi and Mina Abdulla refineries to 800,000 barrels a day (b/d) from 736,000 b/d by 2017, following the retirement of processing facilities at the Shuaiba refinery.

For further details about Samsung S &  T, please contact us at : bizunit@worldcentre.me

Via : Mubasher

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