Korean builders deny reports on Kuwait deal cancellation

By Nam Kwang-sik
SEOUL, March 17 (Yonhap) -- Three South Korean builders on Tuesday denied a
report that a deal they signed last year with state-run Kuwait National Petroleum
Co. (KNPC) may be canceled.

The Kuwaiti government was reportedly considering canceling the US$15 billion oil
refinery project due to opposition in parliament.
Three South Korean builders -- Hyundai Engineering & Construction Co., Daelim
Industrial Co. and GS Engineering & Construction Co. -- said in regulatory
filings that they have not received any official notification on the deal
cancellation from KNPC.
In May of last year, four South Korean builders -- Hyundai Engineering, Daelim
Industrial, GS Engineering and SK Engineering & Construction Co. -- signed a
preliminary deal with KNPC to build the oil refinery.
The South Korean builders' order is valued at about $8 billion, industry sources
said. If the deal is canceled, the builders will have to return 100 billion won
($70.2 million) to KNPC that they received in advance, the sources said.
SK Engineering has yet to disclose whether it has received notification on the
deal cancellation.
ksnam@yna.co.kr
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