Kuwait refinery construction screeches to a halt

Kuwait National Petroleum Co. has ordered Fluor Corp. to stop construction of a refinery.

03/25/2009


According to the Dallas Morning News , Irving, Texas-based Fluor Corp. took a $2.1 billion hit when Kuwait halted construction of a refinery.

Fluor officials said the Kuwait National Petroleum Co. (KNP) instructed them to stop work on the utilities and offsets for the al-Zour refinery; Fluor had about 300 employees working on the project. The termination is the second cancellation of a major oil project since December, coming amid government corruption allegations. In December, Kuwait backed out of a $17.4 billion joint venture petrochemical project with Dow Chemical Co.

Originally, KNP had planned to spend about $14 billion on the 615,000-barrel-per-day al-Zour refinery. It would have been the nation's fourth refinery, with start-up planned for 2012.





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