Saipem has been awarded a new contract in the onshore engineering and construction sector worth approximately $850mn.

Activities involve engineering, procurement, construction and commissioning for the ‘feed pipelines for new refinery project (NRP)’ in relation to the development of the new Al Zour refinery located in the south of Kuwait.

The contract has been awarded by Kuwait Oil Company (KOC), a subsidiary of the Gulf country’s national oil company, Kuwait Petroleum Corporation (KPC).

The scope of work comprises the construction of a system of pipelines of various diameters, approximately 450kilometres in length, for the transportation of crude oil and gas from various KOC south tank farm manifolds to the new Al Zour refinery.

The project also includes the realisation of a network for the transportation of the refined products to the storage areas present in the refinery of Mina Al Ahmadi. These products will also be used to feed the Northern Power Station owned by the ministerial body for water and electricity.

Stefano Cao, CEO, Saipem, commented: “We welcome with particular satisfaction this new contract from such an important client as KOC, both because it marks a new milestone for the company in the onshore engineering and construction sector and, above all, because it reinforces and consolidates Saipem’s presence in Kuwait, a country where we have been operating for over 30 years and in which we have built solid and lasting relations that reflect our sustainable business model.”