Saipem to Build Pipelines for Kuwait Refinery Project

Kuwait Oil Co. (KOC), a unit of Kuwait Petroleum Corp. (KPC), has awarded Saipem an approximately $850 million contract for a roughly 450-kilometer pipeline system that will feed into KOC's new Al Zour refinery, Saipem announced Tuesday.

"We welcome with particular satisfaction this new contract from such an important client as KOC," Saipem CEO Stefano Cao said in a written statement. Cao added that the award "marks a new milestone" for Saipem in onshore engineering and construction and "reinforces and consolidates Saipem's presence in Kuwait."

The scope of work under the contract includes constructing a system of pipelines of various diameter to transport crude oil and natural gas from various KOC South Tank Farm manifolds to the Al Zour refinery, Saipem noted. In addition, Saipem stated the project will include a network to carry refined products to storage areas at KNPC's Mina Al Ahmadi refinery. The refined products also will feed the Northern Power Station owned by Kuwait's water and electricity ministry, Saipem added.

Kuwait National Petroleum Corp., a unit of KPC, states on its website that the 615,000-barrel per day (bpd) Al Zour project is the world's largest grassroots refinery and will boost Kuwait's total refinery capacity to 1.4 million bpd. The company anticipates an early 2019 commissioning for the facility.