Iraq has been expanding refinery capacity in an effort to ease the
gasoline shortage. The Oil Ministry plans to build refineries in Karbala and
Nasseriya as part of a plan to increase refinery capacity by nearly 500,000
barrels of oil per day.
Meanwhile, Kuwait has selected five Asian bidders to build a $15
billion refinery.
On May 11, four South Korean and a Japanese firm were awarded $8.3
billion in contracts by the state-owned Kuwait National Petroleum Co.
Japan's JCG Corp. and South Korea's GS Engineering and Construction won $4
billion in contracts. The two companies had formed a consortium in their bid
to construct the refinery's main manufacting units.
KOC also awarded South Korea's SK Engineering and Construction Co. a $2
billion award to help construct the refinery, designed to process 615,000
barrels of oil per day. South Korea's Daelem Industries was awarded a $1.2
billion award to supply tanks. Construction of the facility was expected to
begin by 2009 and the refinery would begin operations in 2012.
Officials said South Korea's Hyundai Engineering and Construction Co.
was awarded a $1.1 billion contract to construct offshore refinery
facilities. Earlier, the U.S.-based Fluor Engineering won a $1.12 billion
award to serve as a consultant to the project.
