Kuwait in $35bn oil upgrade

Kuwait is about to embark on major oil projects worth almost US$35 billion (Dh128.45bn) as part of the government’s four-year development plan, says Sheikh Ahmed Abdullah Al Sabah, the oil minister.

The investments include a fourth refinery, a project that has stalled before in the country’s parliament.

“There’s big money involved,” Sheikh Ahmed, who is also the chairman of Kuwait Petroleum Corporation (KPC), told The National.

Kuwait also plans to upgrade and boost capacity at the country’s existing facilities under an initiative known as the Clean Fuels Project.

The fourth refinery had been planned for construction at Al Zour but the government cancelled it in March last year under pressure from members of parliament.

That facility was to process 615,000 barrels per day (bpd) of oil, but MPs criticised the contract awards procedure and rising costs.

The new refinery is designed for high-sulphur oil, Sheikh Ahmed said.

“The purpose of this refinery is to produce the special fuel for our electricity, because in the international market there is not enough gas fuel for our electricity plants.”

The Clean Fuels Project for Kuwait National Petroleum Company, KPC’s refining arm, will increase the capacity of the country’s existing refineries and enable them to produce lighter fuel.