Al-Zour New Refinery Project (NRP)

Refineries - Execution


Location  Al Zour,South of Kuwait - Kuwait
Investment  16,000,000,000 USD
Announced  1/7/2005
Completion  12/25/2019
Scope  The Al-Zour NRP will be one of the largest oil-refining plants in the world, with refining output capacity of 615,000 barrels per day. The NRP will use a combination of conventional and proprietary licensed hydro-processing technologies to convert light and heavy crudes into low sulphur fuel oil (LSFO) and lighter products. The refinery has the strategic goal of supplying both Kuwaiti and global demand for ultra low-sulphur petroleum products. Part of the production will support Kuwait’s Ministry of Electricity & Water for its LSFO demand.

The NRP has been divided into five major EPC packages:
- Package 1, worth a value of $4.1 billion, includes the engineering, supply, construction and commissioning of the following refining units: 3 crude distillation units (210,000 BPSD each), 3 atmospheric residue desulphuration units (110,000 BPSD each), 3 diesel hydrotreating units (62,000 BPSD each), 2 naphtha hyrdrotreating units (18,200 BPSD each), 2 kerosene hydrotreating units (53,000 BPSD each), a saturated gas unit (8,500 BPSD) and a heavy oil cooling unit. It was awarded to a consortium of Spain’s Tecnicas Reunidas SA, China’s Sinopec Engineering (Group) Co. Ltd., and Hanwha Engineering & Construction Corp. of South Korea.

- Packages 2 and 3, worth a combined value of about $5.75 billion, was awarded to a joint venture of Fluor Corp., Daewoo Engineering & Construction Co., and Hyundai Heavy Industries Co. for delivery of EPC on other associated units and infrastructure necessary for the project.

- Package 4, was awarded to Saipem in joint venture with Essar Projects Limited, consists of Engineering, Procurement, Construction, Pre-Commissioning and Assistance during Commissioning/Start-up/Performance Testing for the tankages, related road works, buildings, pipe racks, pipelines, water systems and control systems for the Al-Zour refinery.

- Package 5, was awarded to Saipem in joint venture with Hyundai Engineering & Construction and SK Engineering & Construction, consists of the Offshore Maritime Export Facilities for the Al-Zour NRP. The scope of work includes Engineering, Procurement, Construction, Pre-Commissioning and Assistance during Commissioning/Start-up/Performance Testing for a Solids Pier, Sulfur Pelletizing/Conveying, Subsea Outfall Lines, a Construction Dock, an Offshore Sea Island and a Small Boat Harbor.

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