Kuwait has taken the first big step toward restoration of its refineries damaged, mostly by Iraqi sabotage, during the 1990-91 Persian Gulf crisis and war.
Kuwait National Petroleum Co. (KNPC) let contract to FW Management Operations Ltd. (FWMO), a unit of Foster Wheeler Corp., Clinton, N.J., for project management support and consulting services for restoration of the Mina Abdulla, Mina al Ahmadi, and Shuaiba refineries. In addition, the scope of work could later include possible upgrade and/or expansion of some or all of the refineries. Contract value was not disclosed.
Industry sources estimate restoration work alone at the three refineries could total $200-300 million.
CONTRACT DETAILS
The first phase of the project will be carried out in Kuwait by a task force managed by FWMO and staffed from Foster Wheeler's international subsidiaries.
Work was to begin Mar. 1 with a recently arrived Foster Wheeler audit team to inspect the refineries, assess damages, and write specifications for restoring the three plants to prewar condition.
KNPC earlier started a preliminary review of damage assessment.
After FWMO delivers its study to KNPC, the Kuwait state company then will review it for about 2-3 months before it asks FWMO to prepare bid packages for the work, said Foster Wheeler Pres. and Chief Executive Officer Lewis Azzato. KNPC then will decide whether to let Foster Wheeler proceed with reconstruction work or assign some of the work to subcontractors.
Foster Wheeler won a long bidding process for the project management contract after competition had narrowed to just it and Fluor Corp. Both companies participated in construction of Shuaiba refinery, and Foster Wheeler had performed some work at the Mina al Ahmadi refinery.
WAR DAMAGE
All three refineries were damaged to varying degrees and looted by Iraqi forces during Iraq's occupation of Kuwait that began with a blitzkrieg invasion Aug. 2, 1990, and ended with allied forces' rout of Iraq's army with Operation Desert Storm's ground war in February 1991.
According to a United Nations report last year, the 370,000 b/d Mina al Ahmadi refinery, used by the Iraqis to produce gasoline for military needs and local demand, received light damage. The 190,000 Mina Abdulla refinery and especially the 187,000 b/d Shuaiba refinery were damaged more extensively.
Mina Abdulla and Mina al Ahmadi were stripped of process control equipment and their inventory of spare parts and received damage mainly to storage tanks. Mina Abdulla's main plant was untouched, but its $150 million control room and a 20,000 hp pump station for moving products to the Sea Island export terminal were severely damaged. Shuaiba's distillation column and associated pipework were damaged by fire and its isomax unit damaged and an electricity substation blown up, among other damage.
Late last year Kuwait Petroleum Co. resumed runs of about 170,000 b/d at Mina al Ahmadi. Before the invasion, the plant was one of the most sophisticated in the world.
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