August 09, 2008

Kuwait to launch USD 19 billion refinery upgrade tender

Kuwaiti news agency Kuna reported that Kuwait National Petroleum Company is planning to upgrade its Mina Abdullah and Mina Al Ahmadi refineries with up to KWD 5 billion.

Mr Saad Al Saad deputy chairman of KNPC said that the tender would be launched in August 2008 after winning approval from Kuwaiti authorities. He added that KNPC wanted to upgrade the capacity of its Mina Abdullah and Al Ahmadi refineries to 800,000 barrels per day from 600,000 barrels per day by adding new units or improving existing ones. The project's cost would range between KWD 4 billion and KWD 5 billion, up from an initial estimate of KWD 1 billion in 2003.

The refinery upgrade, which is due to take effect after closure of the ageing Shuaiba refinery in 2011, is part of plans by the major OPEC producer to raise refinery capacity to 1.415 million barrels per day from 930,000 barrels per day. KNPC is also due to announce the winners for a tender to build a 615,000 barrels per day refinery.

KNPC has delayed the tender several times and more than doubled the budget to USD 14 billion amid spiraling costs in the oil industry.