20 March 2009 13:24 [Source: ICIS news]
TORONTO (ICIS news)--Kuwait National Petroleum Co (KNPC) has cancelled a contract for its Al-Zour grassroots refinery project, ?xml:namespace>
Fluor said it received notification from KNPC to stop work on the utilities and offsite work for the Al-Zour refinery.
The company has approximately 300 employees at Al-Zour.
Fluor would remove the remaining contract value of about $2.1bn (€1.5bn) from its backlog in the first quarter, it said.
It did not disclose capacities, total project value or the reason for the cancellation.
According to information on KNPC’s website, the grassroots project was planned with a capacity of 615,000 bbl/day.
Regional industry reports put total project value at $15bn. The reports cited alleged irregularities in contract awards as the reason for the cancellation.
Analysts have said to expect delays and problems with Middle East projects as the global economic crisis takes hold in the region.
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|