Chicago Bridge & Iron Company N.V.
) recently announced that its joint venture (JV) with Petrofac
International Ltd. and Samsung Engineering Co., Ltd. has received
a contract from Kuwait National Petroleum Co. (KNPC). This JV won
the bidding process to revamp and upgrade the Mina Abdullah I
refinery project, an upcoming clean fuel refinery in the Middle
The $12 billion bid for the two refineries, Mina Abdulla and
Mina Al-Ahmadi was approved on Feb 10, out of which the JV
received the contract for $3.8 billion (1.07 billion dinars).
CBI, which has a share of 10% in the contract, will provide
services worth $370 million. The other winning companies were
Foster Wheeler AG
), JGC Corporation and
As per the terms of the deal, CBI is to provide engineering
and procurement services for the refinery having a present
capacity of 270 thousand-barrels-per-day (bpd). The company will
undertake the installation of a couple of units designed to
desulfurize atmospheric residue at the facility. These units will
enable KNPC to keep the sulfur content to a low of 1%, thereby
meeting the international environmental standards for clean
These aforementioned units had earlier been licensed to
Chevron Lummus Global, which is a JV of CBI and
Kuwait National Petroleum is planning to expand the combined
production capacity of the two refineries to as much as 800
thousand bpd from the current capacity of 736 thousand bpd. The
increased production of eco-friendly fuel is expected to meet the
growing demand for low-sulfur containing transport fuel.
At present, CBI has a Zacks Rank #4 (Sell).
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