Kuwait plans to spend 25 billion dinars ($87.6 billion) on energy projects, including building a new refinery, in the next 20 years, it was announced on Sunday.
The spending plan is “from today till 2030” and the money will be used on “capital projects” including maintenance and services, oil minister Sheikh Ahmed Al-Abdullah Al-Sabah said at a conference in Kuwait City today. The projects “will be announced accordingly,” he added.
Kuwait, the sixth-largest producer in the Organisation of Petroleum Exporting Countries, is reviving a plan to build a fourth refinery.
The project was put on hold in March after the country canceled letters of intent with international companies from which it has since received claims of compensation.
Kuwait in May 2008 awarded contracts to build the refinery to Japan’s JGC Corp, South Korea’s GS Engineering & Construction Corp, SK Engineering & Construction Co, Daelim Industrial Co and Hyundai Engineering & Construction Co Fluor Corp, based in Irving, Texas, was awarded a consulting contract.
The 615,000 barrel-a-day refinery was expected to come on stream by 2012.
Former oil minister Mohammed al-Olaim came under pressure from opposition lawmakers who claimed the contract awards circumvented the law. Kuwait pumped 2.21 million barrels of oil a day in November, according to Bloomberg data.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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