Kuwait oil refineries expect strong profits in 2024-2025

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KUWAIT CITY, March 26: Oil sources have confirmed to Al-Seyassah that the Kuwaiti oil refineries, namely Al-Zour and Al-Ahmadi, along with Mina Abdullah and Duqm, which are jointly owned by Kuwait and the Sultanate of Oman, are poised for significant profits in the years 2024 and 2025. This optimistic outlook extends to refineries in other Gulf countries as well. These forecasts are grounded in several key considerations, among which the escalating conflict in the Russian-Ukrainian war holds prominence. The sources note a notable shift in the conflict dynamics, with Russian oil refineries becoming targets.

According to reports, several Russian refineries were destroyed during March, raising concerns about disruptions in Russian oil production. The sources elaborate on the role of the United States in leveraging Ukraine to target Russian oil installations, a move that could potentially lead to the cessation of Russian refinery operations. This development marks a significant transformation in the ongoing conflict between the United States and Russia, further complicating the geopolitical landscape. In addition to geopolitical factors, the global market’s reliance on Kuwaiti and Gulf refineries is underscored by the challenges facing European and American refineries.

Many of these refineries have deferred maintenance operations for several years, leading to operational inefficiencies and compromised performance. Moreover, extreme summer temperatures in recent years have exacerbated these challenges, particularly impacting aging infrastructure. Furthermore, specific refineries such as the joint Milazzo refinery between Kuwait Petroleum International and the Italian company Eni, as well as the French Total Energy refinery, face profitability concerns. Partnerships associated with these refineries are reportedly exploring options to withdraw investments due to declining profitability in recent years. Overall, amidst evolving geopolitical tensions and operational challenges faced by refineries globally, Kuwaiti and Gulf refineries are poised to capitalize on emerging opportunities in the oil market, positioning themselves for robust profitability in the years ahead.

By Najeh Bilal
Al-Seyassah/Arab Times Staff

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