Kuwait's Al-Zour refinery gets approval

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, July 1 -- Kuwait’s Oil Minister Mohammad al-Busairy said the Supreme Petroleum Council (SPC), the country’s highest decision-making body for oil policy, has approved construction of the 615,000 b/d Al-Zour refinery.

Al-Busairy said SPC also approved proposals to upgrade two of Kuwait’s three existing refineries—the 466,000 b/d Mina Al-Ahmadi and the 270,000 b/d Mina Abdulla.

Development of the Al-Zour refinery is expected to comprise two phases. During Phase 1, the facility will process 300,000 b/d of crude for the domestic market. Under Phase 2, it will process a further 315,000 b/d of oil.

Ultimately, the refinery’s second phase will replace the distillation input of the country’s 200,000 b/d Shuaiba facility, which is Kuwait’s oldest and smallest refinery and is planned for closure.

Kuwait may seek private investors to help build the new refinery after a government council revived the $14.5 billion project, which stalled 2 years ago amid political opposition.

“There may be some requirement to give a portion of it to the private sector,” said Kuwait Oil Co. Chairman Sami al-Rushaid while in London.

Kuwaiti authorities suspended the Al-Zour refinery project in March 2009 after opposition lawmakers said the government had bypassed the law in awarding contracts to foreign firms without first going consulting Parliament’s Central Tenders committee.

Word of the Al-Zour facility coincided with an earlier statement by al-Busairy that Kuwait plans to increase its production to 4 million b/d of oil by 2020 from the current average of 2.63 million b/d.

Al-Busairy said Kuwait conducted a successful experiment in October to raise the country’s oil production, establishing an output of 3.5 million b/d.

Meanwhile, al-Busairy said the global oil market will be in “dire need” for some 2 million b/d of oil during this year’s third quarter, with demand falling to 1.5 million b/d in the year’s last quarter.

Noting that Saudi Arabia, Kuwait, and the UAE alone have the necessary spare capacity to meet the growing demand, al-Busairy said his country should take advantage of the situation while prices are high.

"We should not miss such opportunity, particularly under the soaring prices, and the increasing demand in the market, and we have the ability to meet such demand," al-Busairy said, adding, “This is an output policy in the interest of our country, and we are following it.”

Al-Busairy’s remarks are an indirect rebuttal to recent claims by Iran that increased output is contrary to market needs. Kuwait supported the proposal by Saudi Arabia to increase output at the June 8 meeting of the Organization of the Petroleum Exporting Countries in Vienna.

At the time, Iran claimed that the proposal to boost output was the result of undue political pressure on gulf producers and not on market fundamentals. Iran repeated its claims following the recent decision by the International Energy Agency to release 60 million bbl of oil over 30 days.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

EPA proposes voluntary methane reduction program for gas industry

07/24/2015 The US Environmental Protection Agency proposed a voluntary methane reduction program for the natural gas industry that would allow companies to ma...

Gazprom Neft advances Moscow refinery revamp

07/23/2015 JSC Gazprom Neft has gained final approval from Russian government regulators to begin construction on its long-planned combined oil refinery unit ...

Contract let for Chinese grassroots petrochemical project

07/23/2015 Ningxia Baota Chemical Fiber Co. Ltd. (NBCF), a subsidiary of privatized Ningxia Baota Petrochemical Group Co. Ltd. (NBPG), has let a contract to H...

UAE easing gasoline, diesel price controls

07/22/2015

The United Arab Emirates is moving prices of gasoline and diesel toward deregulation effective Aug. 1.

Joint venture plans grassroots refinery for North Dakota

07/21/2015 Quantum Energy Inc., Tempe, Ariz., said it will form a joint venture with Native Son Holdings LLC (NSH), The Woodlands, Tex., to build North Dakota...

PDVSA plans late-July restart for Amuay refinery’s FCCU

07/20/2015 Repairs remain under way on the fluid catalytic cracking unit (FCCU) at Petroleos de Venezuela SA’s (PDVSA) 645,000-b/d Amuay refinery in northwest...

Unplanned maintenance under way at Venezuelan refinery

07/20/2015 Petroleos de Venezuela SA (PDVSA) said unplanned maintenance to a reformer at its at its 190,000-b/d Puerto La Cruz refinery in eastern Venezuela i...

Russia’s NefteGazIndustriya advances refinery modernization

07/20/2015 NefteGazIndustriya LLC, through a project developer, has let a contract to CB&I, Houston, to provide equipment for work related to the moderniz...

OGJ Newsletter

07/20/2015

International news for oil and gas professionals

White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected