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KNPC awards construction contract

Posted: 07 January 2008
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Kuwait National Petroleum Company (KNPC) has awarded a contract to construction joint venture Hill and System Development and Project Management (SDPM) to provide consulting services during the construction of a new refinery located in the Al-Zour region, southern Kuwait.

The five-year contract has an estimated value to Hill exclusive of its joint venture partner of approximately $20 million, the company said in a statement.

The new refinery, which is expected to cost approximately $15 billion, will be one of the largest in the world with a refining capacity of 615,000 barrels of oil per day.

Construction is expected to begin in 2008 and be completed by 2013. The upgrade of the existing refineries in connection with the Clean Fuels Programme is expected to cost approximately $7 billion.

Services to be provided by Hill/SDPM under the contract include on-call consulting services, contract and commercial management, interface management, quality assurance and quality control (QA/QC), and claims avoidance and management services. Hill is a 65% partner in the joint venture and SDPM is a 35 per cent partner.

“The new refinery project at Al-Zour and the Clean Fuels Programme for the existing refineries are large, complex projects whose success is vitally important to the Kuwaiti petroleum industry," said Raouf S Ghali, President of Hill's Project Management Group International.

Hill International, with 1,500 employees in 70 offices worldwide, provides program management, project management, construction management, and construction claims services.

Engineering News-Record magazine recently ranked Hill as the 10th largest construction management firm in the United States .

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