Kuwait National Petroleum selects Fluor JV to build $14bn Al Zour oil refinery

Kuwait National Petroleum Company (KNPC) has selected a joint venture (JV) team led by the US engineering and construction firm Fluor to build the $14bn Al Zour Refinery in Kuwait.

The JV has been selected as the preferred bidder for two engineering, procurement and construction (EPC) packages which would have facilities including various key process units, utilities and infrastructure for the new project.

Known as FDH, the JV consists of Fluor, Daewoo Engineering and Construction, and Hyundai Heavy Industries and plans to commence activities on the newly awarded Al-Zour packages soon.

The refinery would be constructed on a greenfield site and is expected to produce 615,000 barrels-per-day.

Fluor said it booked its $2.6bn portion of the contract during the third quarter.

"From the onset, and throughout every phase of the project, our focus will be on the safe and efficient construction, commissioning and start-up of this new refinery."

Fluor Energy & Chemicals Europe, Africa and Middle East business line president Taco de Haan said: "Fluor is proud to continue our long-standing relationship with KNPC, which spans more than five decades, and to become part of this prestigious and strategically important Al-Zour project."

"From the onset, and throughout every phase of the project, our focus will be on the safe and efficient construction, commissioning and start-up of this new refinery."

Plans to construct the refinery were released by the KNPC in July 2007 and later on construction contracts were awarded to various companies May 2008.

However, due to political opposition, construction was cancelled in March 2008.

Initially, Japan's JGC and South Korea's GS Engineering & Construction consortium won the largest contract to install six distillation and atmospheric residue desulphurisation units, and diesel, naphtha, and kerosene hydrotreating plants.

SK Engineering & Construction in Korea was selected to build the hydrogen plants.

Daelim Industrial was contracted to construct storage tanks, while Hyundai Engineering and Construction was made responsible for the marine works.

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