The Kipic subsidiary of Kuwait state oil and gas firm KPC is negotiating a “compromise” with disgruntled contractors at its long-delayed $16bn 615,000 b/d Al Zour greenfield refinery. Local newspaper Al-Rai reports that the contractors are seeking KD500mn ($1.65bn) in damages due to Covid-related restrictions imposed by the government as well as for “additional works conducted.” But Kipic says it is not liable for government measures and has countered that the contractors were already well behind on delivery before the pandemic and that this “amounts to failure to comply with their contracts.”

Negotiations are on-going with the contractors threatening court action, according to the Al-Rai report. Al-Zour has five project packages and contractor claims “vary.” Meanwhile the company is also resolving claims valued “at [KD] millions” by other contractors for its massive 22mn t/y LNG import terminal at Al-Zour. (CONTINUED - 141 WORDS)