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Essar Projects-Saipem JV secures $1.57bn contract for Al-Zour Refinery project in Kuwait

Yuvraj_ong by Yuvraj_ong
November 13, 2015
in Downstream, Middle East & South Asia, News
0

Essar Projects in a joint venture (JV) with Italy’s Saipem has secured a $1.57bn contract from Kuwait National Petroleum Company (KNPC) in the $14bn Al-Zour Refinery project (ZOR) to be built in kuawait.

The contract has been awarded for package-4 of the Al-Zour Refinery project.

The companies will provide services including engineering, procurement, construction, pre-commissioning and assistance at the time of commissioning, startup and performance testing for Package-4 – Tank Farms for the refinery.

On an engineering, procurement and construction (EPC) basis, Essar’s focus would be on build-out of tankages, roads and bridges, as well as civil work.

“The project marks Essar’s entry into the Kuwait project market with the biggest EPC contract by an external client.”

The new refinery is expected to have crude processing capacity of 615,000 barrels per day (bpd).

Essar Projects managing director and CEO Shiba Panda said: “The project marks Essar’s entry into the Kuwait project market with the biggest EPC contract by an external client.

“It also signals a quantum growth in our overseas business, showcasing our capability to collaborate with leading international EPC companies and our competitiveness in the face of tough global competition.”

Essar Projects COO – Overseas Gianluca Mosca said: “With several large infrastructure and industrial projects being implemented in West Asia, it has become one of the fastest growing markets in the world today.”

The latest contract increases Essar’s order book to $2.8bn. The project is slated for completion by 2019.

Recently, KNPC selected a JV team led by the US-based company Fluor to build the refinery.

Till now, KNPC has awarded four contracts worth more than $13.2bn to various international bidders for the construction of the refinery.

 

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Being built on a 6km² area, the refinery will produce liquefied gas, gasoline, gas oil, fuel oil, jet fuel and asphalt. GE Oil & Gas inaugurates first-phase expansion of advanced manufacturing facility in Saudi Arabia

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