The Italian oil and gas industry contractor will handle the procurement, construction and commissioning (EPC) for the “Feed Pipelines for New Refinery Project (NRP)” of the refinery which is reportedly being built with an investment of around $16bn.
Kuwait Oil Company (KOC), a subsidiary of state-owned Kuwait Petroleum Corporation (KPC) had awarded the contract to the Italian firm.
As part of the contract, Saipem will have to construct a system of pipelines with different diameters. The pipeline system, which will be of around 450km in length, is planned to transport crude oil and gas to the new Al Zour refinery from different KOC South Tank Farm manifolds.
As part of the project, a network will be established for transporting refined products to the storage areas located in the Mina Al Ahmadi refinery. The refined products will also be fed to The Kuwait Ministry of Electricity and Water’s Northern Power Station.
Saipem CEO Stefano Cao said: “We welcome with particular satisfaction this new contract from such an important client as KOC, both because it marks a new milestone for the Company in the onshore E&C sector and, above all, because it reinforces and consolidates Saipem’s presence in Kuwait, a country where we have been operating for over 30 years and in which we have built solid and lasting relations that reflect our sustainable business model”.
The Al Zour refinery, which is being built in South Kuwait and expected to be commissioned in early 2019, is planned to have a capacity of 615,000 barrels per day.
Image: Kuwait Petroleum’s Mina Al Ahmadi Refinery in Kuwait. Photo: courtesy of KNPC.
