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

Trinidad ULSD plant won’t be built in 2015, Petrotrin executive says

01/28/2015 Trinidad and Tobago’s state-owned Petrotrin has announced that its $500 million ultralow-sulfur diesel (ULSD) plant cannot be commissioned because ...

Vietnam advances Dung Quat refinery expansion plans

01/26/2015 Binh Son Refining & Petrochemical Co. Ltd. (BSR), a subsidiary of state-owned Vietnam National Oil & Gas Group (PetroVietnam), has unveiled...

OGJ Newsletter

01/26/2015

International news for oil and gas professionals

Varo Energy plans upgrades for Swiss refinery

01/23/2015 Varo Energy BV, a midstream company owned by The Carlyle Group and Vitol Group, plans to invest more than 50 million Swiss francs ($56 million) thi...

Kuwait lets contract for Mina Abdullah refinery

01/22/2015 Kuwait National Petroleum Co. (KNPC), through a subcontractor, has let a contract to Mushrif Trading & Contracting Co. for work related to its ...

Contract let for Aramco’s Jazan refinery, terminal project

01/21/2015 Saudi Aramco, through a contractor, has let a contract to Alderley FZE, Dubai, a division of Alderley PLC, Wickwar, UK, to provide metering systems...

EPA approves revisions to California’s refinery emission regulations

01/20/2015 The US Environmental Protection Agency has issued a final rule approving revisions to portions of California’s state implementation plan (SIP) that...

LyondellBasell expands roles of three senior executives

01/20/2015

LyondellBasell has expanded the roles of senior executives Timothy D. Roberts, Patrick D. Quarles, and Kevin W. Brown.

Senators introduce amendment to end corn ethanol mandate

01/20/2015 US Sens. Dianne Feinstein (D-Calif.), Patrick J. Toomey (R-Pa.), and Jeff Flake (R-Ariz.) introduced legislation to remove the corn ethanol mandate...
White Papers

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

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts

On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


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