Kuwait could spend $22b on refinery upgrade

Business Materials 22 August 2008 05:49 (UTC +04:00)

Kuwait's refinery upgrade project could cost as much as $22 billion, $7 billion more than the initial estimates, Reuters reported.

State refiner Kuwait National Petroleum Co (KNPC) is awaiting approval from the Supreme Petro-leum Council and Kuwait Petroleum Corp (KPC) to launch a tender to upgrade its Mina Abdullah and Mina Al Ahmadi refineries, the Al Rai daily said, citing oil sources.

The cost of the refinery upgrade could cost as much as $22 billion, said the paper, adding that the project would be completed by the fourth quarter of 2013.

KNPC officials could not be reached for comment.

The refinery upgrade, which is due to take effect after the closure of the ageing Shuaiba refinery in 2011, is part of plans by the major Opec producer to raise its refining capacity to 1.415 million bpd from 930,000 bpd.

KNPC chairman Farouk Al Zanki told reporters in July KNPC had started pre-qualifying several firms for the tender, which will be split into several packages, adding that it might be worth as much as four billion dinars ($14.96 billion).