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Mon 15 Feb 2010 07:36 PM

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Kuwait's SPC to review stalled refinery project

Officials said they aim to relaunch the project to build the $15bn al Zour refinery.

Kuwait's SPC to review stalled refinery project
PROJECT RELAUNCH: Kuwait will send its stalled project for a 615,000 bpd refinery for review to the countrys highest oil policy body. (Getty Images)

Kuwait will send a stalled project for a 615,000 barrels per day (bpd) refinery to its highest oil policy body for review, a top oil official told state news agency KUNA on Monday.

Officials have said previously they aim to relaunch the project to build the $15 billion al Zour refinery, which would produce fuel the country desperately needs for power plants.

A long stand off between Kuwait's parliament and government has led to delays and cancellations of a number of energy projects in the world's fourth largest producer, including for al Zour.

The refinery plan, along with another for clean fuels, would be reviewed by the Supreme Petroleum Council (SPC) "soon," Saad al Shuwaib, chief executive of state owned Kuwait Petroleum Corporation, told state news agency KUNA.

OPEC member Kuwait scrapped the deals to build the refinery in March after opposition from several lawmakers who questioned the tender process.

The 615,000 bpd plant is meant to replace the ageing 200,000 bpd Shuaiba plant. The refinery would produce low sulphur fuel oil for burning in power plants.

Kuwait has one of the highest per capita power consumption rates in the world and has struggled to meet domestic power demand.

It is importing gas to fire power stations.

The Gulf Arab state's government approved members of the SPC earlier this month.

Kuwait, the world's fourth largest oil exporter, pumped 2.28 million barrels per day (bpd) of crude in January, according to a Reuters survey. (Reuters)

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When will Kuwait pay the EPC Contractors for all of the work they did before the project was halted ? Tens of millions of dollars.