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Discuss this article (0 Comments)Kuwait faces compensation claims over refinery u-turn
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 04 June 2009
COMPENSATION CLAIM: Successful bidders for a $15bn refinery in Kuwait are claiming damages after the project was cancelled. (Getty Images)
Kuwait National Petroleum Company (KNPC) has received compensation claims from bidders for Kuwait's fourth oil refinery, a project that was later put on hold amid the global economic crisis.
The companies claiming compensation had been successful bidders for the refinery the company planned to launch but was then scrapped, KNPC chairman and managing director Farouk Hussain Al-Zanki said.
"The claims will be referred to KNPC's legal affairs division which will decide on how to tackle the issue," Al-Zanki said in comments published by KUNA news agency.
KNPC awarded deals worth $8.4bn to four South Korean firms and one Japanese firm for the 615,000 barrels per day Al Zour refinery in May 2008 but a decree by the Kuwait cabinet cancelled the $15bn project in March.
"The company is unlikely to adopt any move regarding the refinery and the related claims before the reshuffle of Kuwait's Supreme Petroleum Council (SPC) which is mandated to decide on the whole affairs," Al-Zanki said.
The refinery was set to produce eco-friendly fuels and derivatives and supply the country's water and power plants with fuel. It was scheduled to go operational in May, 2012.
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