Local builders sign oil refinery contracts in Kuwait

Daewoo E&C CEO Park Young-sik shakes hands with Mohammad Ghazi Al-Mutairi, Kuwait National Petroleum Company (KNPC) CEO, during a signing ceremony at KNPC’s headquarters in Kuwait, Tuesday. / Courtesy of Daewoo E&C

By Park Jin-hai

Five local builders, including Daewoo E&C and Hyundai E&C, have signed contracts with the Kuwait National Petroleum Company, the companies announced Wednesday.

In the $13 billion mega construction project to build the world's largest oil refinery in Al Zour, with a production capacity of 615,000 barrels a day, local builders won four out of five packages, bagging a total of $4.54 billion in contracts.

Hanwha E&C, in consortium with Spain’s Tecnicas Reunidas and China’s Sinopec, won the Package One contract; while Daewoo E&C, together with Hyundai Heavy Industries and American engineering company Fluor won the Package Two and Package Three contracts.

Hyundai E&C, in consortium with SK E&C and Italian oil company Saipem won Package Five.

Daewoo E&C won the largest portion among the local builders in the project, winning a total of 2.3 trillion won ($2 billion) in contracts in July.

“Following the Kuwait Clean Fuel Project we clinched last year, by carrying out the Al Zour Project successfully, we aim to become the leading global company with expertise in both oil production and refinery,” said Daewoo E&C CEO Park Young, during the signing ceremony in Kuwait, Tuesday.

Hyundai Heavy Industries came next with a 1.33 trillion won worth contract, followed by Hyundai E&C with 690.7 billion won, and SK E&C with 525 billion won.