This is a strategic project and it has to go through, said Asaad Al Saad, deputy chairman of KNPC, in a recent interview. The problem is, will we continue with the same people or re-tender? It looks more like we will re-tender it, unfortunately, because of the politics involved.
The refinery project, Al Zour came under intense scrutiny in 2009 after opposition members of parliament alleged that contract awarded by KNPC did not comply with the tender procedures set out by Kuwait’s Central Tenders Committee, which handles all public sector contracts. The project was referred to the State Audit Bureau.
The company signed four letters of intent for the project work worth $8.3 billion, one with a Japanese-South Korean consortium and three with South Korean firms, to construct the 615,000 barrel-a-day refinery. A separate contract, worth an estimated $2 billion, was given to Fluor Corporation.
Al Saad said the companies have not taken KNPC to court over the canceled letters of intent and that KNPC is showing that its interest in constructing the plant, is still there.
