‘Implementation of projects will be in 3 phases’
KUWAIT CITY, April 9: The committee formed by the Council of Ministers, discusses, studies and looks into the implementation of four or five large oil projects, and one of the biggest projects in the history of Kuwait costs $46 billion.
The projects are carried out by the private/ government partnership system, reports Annahar daily. The daily quoting sources revealed that the implementation of the projects will be in three phases beginning from April 2020.
These projects are one of the most important activities of petrochemicals and derivatives and ports to receive imports of liquefied natural gas, and an oil refining project with a capacity of 800,000 barrels per day.
The sources pointed out that the reason for postponing the start of projects is to give the Ministry of Oil and the Kuwait Petroleum Corporation (KPC) more time to obtain official approvals and determine the mechanism of financing these projects, which will be shared between the government, local banks and global investors 20 percent and the rest by the private sector.
The KPC early last year 2018 had announced its oil strategy until 2040, when it aims to spend about $500 billion on the development of oil projects and the establishment of new ones – marking a quantum leap for the Kuwaiti oil sector, where the petrochemical industries will contribute to moving the industry in the country in various activities.
The aspirations of the government and the oil sector to move towards the petrochemical and refining industries to take advantage of the production and raw material in an optimal way to include these projects within the pillars of this huge wealth plan to diversify the sources of revenue by creating oil industries needed by the world.
According to the statistics of the oil projects carried out by the local oil companies, KOC is considered the most vital company in implementing the largest projects in the sector.
The project that comes at the forefront is the heavy oil project in northern Kuwait which cost 2.1 billion dinars, which is expected to enter the service in various stages by September 2022, the Jurassic Gas Project (Phase II) is ranked second worth KD 1.4 billion.