Kuwait set to boost oil stocks with construction of refinery
KNPC gears up to increase production by drilling out a new deal for Kuwait’s fourth oil refinery development
Kuwait National Petroleum Company (KNPC) is expected to invite bids next month for the construction of a new US $6.3 billion (KWD1.8 billion) oil refinery.
The first two tenders will be for manufacturing units in a 600,000 barrels-per-day (bpd) refinery; the third tender is for building utilities and services; and the fourth is for storage tanks and a pier, according to Sami al-Rasheed, chairman
The refinery will be built in Al-Zour area, 100km south
of Kuwait City, near the Saudi Arabia border. The project is
expected to be completed in early 2010.
Kuwait currently has three refineries; at Al-Ahmadi, Mina Abdullah and Shuaiba, all in the emirate’s oil-rich southern region. They have a combined refining capacity of about 915,000 bpd.
The largest refinery facility in Kuwait, at Al Ahmadi, has a 2.1-km state-of-the-art offshore pier (pictured), which was built by South Korean Hyundai Engineering at a cost of more than $330 million and took three years to complete.
Last year KNPC also mobilised plans to modernise the Al-Ahmadi and Mina Abdullah refineries at an estimated cost
of $3 billion. That project is planned for completion in
Once the new refinery and upgrade project is completed, KNPC plans to shut down the Shuaiba refinery, leaving it with three refineries with a capacity of around 1.4 million bpd.
The company, which is also an OPEC member, sits on 10% of the world’s tapped oil reserves, and currently produces 2.6 million bpd of crude oil at full capacity.
Kuwait plans to invest up to $40 billion in the next 15 years to modernise its oil sector, which generates more than 90% of public revenue.