KUWAIT Dec 19 Engineering company Foster
Wheeler said on Wednesday it had signed a contract with
Kuwait to manage and service a clean fuels project at two
refineries in the Gulf Arab state in a deal worth around $500
The project at the Mina al-Ahmadi and Mina Abdullah
refineries forms part of Kuwait's four-year development plan
announced in 2010. Implementation of the plan has been delayed
in part to political turmoil in the OPEC member state.
Kuwait plans to spend a total of 4.6 billion Kuwaiti dinars
($16.4 billion) on the clean fuels project to upgrade and boost
capacity at the refineries.
Foster Wheeler, whose operational headquarters are in
Switzerland, signed the project management and consultancy
contract with state-owned Kuwait National Petroleum Company
(KNPC). Foster Wheeler said it expects the project to be
completed in the second quarter of 2018.
It said it would book the revenue value in its
fourth-quarter earnings. Kuwaiti media reported in August that
Foster Wheeler was KNPC's choice.
The upgrade work will increase the amount that the
refineries can process per day by 264,000 barrels to 800,000,
the company said in a statement.
It aims to increase the conversion of fuel oil into
higher-value products, Foster Wheeler said. Demand for these
products is expected to grow due to tighter specifications for
Kuwait is also planning to spend around 4 billion dinars on
building a new oil refinery, Al Zour, which aims to be the
largest in the Middle East. Both projects, if completed, could
help restore confidence in Kuwait's economic management.