Kuwait to implement $33m refurb of Al Zour power station

The southern Al Zour power station in Kuwait is set to undergo a refurbishment programme.

Kuwait's Minister of Oil and Minister of Electricity and Water, Essam Al-Marzouq, signed contract to refurbish the power station's units.

Total contract value is estimated at $33m (KWD10m).

The contract includes renovations of the power plant, wherein all its equipment and units will be upgraded to ensure maximal energy efficiency.

While details were not revealed about the outfit that would implement the refurbishment, Kuwait's state agency said that a 60-month time frame has been set for the contract.

This August, Saipem won an $850m (KWD256.6m) engineering, procurement, construction (EPC), and commissioning contract from Kuwait Oil Company (KOC), a subsidiary of Kuwait Petroleum Corporation (KPC).

Under the terms of the deal, the Italy-headquartered oil and gas contractor will conduct EPC and commissioning activities for feed pipelines at Al Zour Refinery in the south of Kuwait.

Saipem's scope of work will include the construction of a 450km pipeline system, which will be used for the transportation of crude oil and gas from various KOC South Tank Farm manifolds to the new Al Zour Refinery.

Commenting on the contract award, Stefano Cao, chief executive officer of Saipem, said: "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 [engineering and construction] 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 and in which we have built solid and lasting relations that reflect our sustainable business model."

The contract also covers the implementation of a network that will enable refined projects to be transported to storage areas within the Mina Al Ahmadi Refinery. These products will be used to feed Kuwait'sNorthern Power Station, according to Saipem.

Al Zour Refinery is a $16bn (KWD4.8bn) project with a capacity of 615,000 barrels per day (bpd).

Upon completion, it is expected to raise Kuwait's overall refining capacity to 1.4 million bpd.