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Saipem wins $850 million pipeline contract for Kuwait’s Al Zour refinery

Kuwait’s oil complex at Al Zour includes a 615,000-barrel-per-day refinery. (Courtesy Amec Foster Wheeler)
DUBAI: Kuwait Oil Company (KOC) has awarded Italian engineering firm Saipem a $850 million (SR3.18 billion) contract to build pipelines for the new Al Zour refinery.
The contract will involve the engineering, procurement, construction and commissioning of the pipeline located south of the country, Saipem said in a statement, where Kuwait is building a huge oil complex that includes a 615,000-barrel-per-day refinery.
The pipelines will be approximately 450 kilometers long and will be used to transport crude oil from KOC’s South Tank Farm manifolds to the new refinery, Saipe said. A new pipeline network will also constructed to deliver refined fuel to a storage area at the Mina Al Ahmadi refinery, which will be used to feed the northern power station.
“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,” Stefano Cao, the chief executive of Saipem, said in the statement.
The Al Zour refinery is being built through five separate packages with the first one is being delivered by a joint venture between Techinicas, Hanwha and Sinopec. The second and third packages are being built by Fluor, Daewoo and Hyundai Heavy Industries; the fourth is being delivered by Saipem and Essar Oil while the fifth by Saipem, Hyundai Engineering and SK Holdings.

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