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| Daewoo Engineering & Construction (E&C) CEO Park Young-sik, second from right, holds hands with other dignitaries after signing an agreement with the Kuwait National Petroleum Company (KNPC) for a $3.4 billion refinery plant project in cooperation with Hyundai Heavy Industries and Fluor Cooperation. From right are Park; Hyundai Heavy Industries CEO Kim Oi-hyun; KNPC Project Coordination-MAB2 Team Leader Reyad Al Tourah; Fluor Cooperation's Energy & Chemical Business President Taco De Haan and KNPC Engineering Team Leader Mohamed Al Hadiay. / Courtesy of Daewoo E&C |
By Yi Whan-woo
Daewoo Engineering & Construction (E&C) said Monday that it signed a $3.4 billion deal with the Kuwait National Petroleum Company (KNPC) for a refinery plant project in the Gulf state in cooperation with Hyundai Heavy Industries and Fluor Cooperation.
Daewoo said that FDH JV, a joint venture invested equally by the three, will provide engineering, procurement and construction services for the Mina Abdullah Package 2 (MAB2) under the Clean Fuels Project (CFP) in southern Kuwait.
FDH JV won the bid for the MAB2 in February. Back then, the KNPC also issued a letter of award, a certificate given to the successful bidder in approval of the project before signing the binding agreement.
MAB2 is one of the three packages in the $12 billion CFP project that focuses on upgrading the eco-friendly system of the two petrochemical plants run by the KNPC _ Mina Al Ahmadhi and Mina Abdullah.
The sulfur content of petroleum products will fall under 5 percent when the project is completed, according to Daewoo E&C said. It added the project also calls for the expansion of combined oil refining capabilities from 715,000 barrels to 800,000 barrels per day.
Daewoo E&C, Hyundai Heavy Industries, both from Korea, and Fluor Corporation of the United States each have a one-third share in the package. The construction will last for the next four years, said the Korean builder.
Daewoo E&C CEO Park Young-sik, Hyundai Heavy Industries CEO Kim Oi-hyun, Fluor's Energy & Chemical Business President Taco De Haan, Kuwait's Minister of Oil Ali Al-Omair and KNPC Chairman Asaad Ahmad Al-saad were among the dignitaries who attended the ceremony to celebrate the deal.
