Update: Kuwaiti refinery repair may take 6 months

Kuwaiti Oil Minister Sheikh Saud Nasser al-Sabah reiterated Tuesday that Sunday's blast at the Mina al-Ahmadi refinery would have no effect on the country's crude oil exports, or on supplies of products to local markets. However, Islamabad braced itself to find new supplies to replace those that were expected to arrive in July.


KUWAIT�Kuwaiti Oil Minister Sheikh Saud Nasser al-Sabah reiterated Tuesday that Sunday's blast at the Mina al-Ahmadi refinery would have no effect on the country's crude oil exports, or on supplies of products to local markets. However, Islamabad braced itself to find new supplies to replace those that were expected to arrive in July.

Speaking at a news conference, Al-Sabah said that, according to the initial estimates of insurance companies, repairs at the refinery�the country's largest�could cost $325 million and take 6 months to complete. The refinery has a capacity of 440,000 b/d, about half the country's total refining capacity.

The minister noted that a team of specialists was formed on Tuesday to investigate the incident, which killed five people and injured 50 others. Reports earlier this week indicated that four had died in the blast, but that total has since been increased (OGJ Online, June 26, 2000).

On Sunday, a meeting of officials in Islamabad was called hastily. The group was told the fire would prevent delivery of product supplies expected in July.

Pakistan's Oil Ministry floated a new tender for refined products on Monday in which it asked suppliers to quote rates for the import of 360,000 tonnes of gas oil and 120,000 tonnes of furnace oil in July.

Pakistan has sought rates from suppliers on a cost plus freight basis. The suppliers should deliver six cargoes of 60,000 tonnes each, the first of which is to be delivered during July 4-6, followed by shipments arriving July 8-10, July 11-13, July 15-17, July 19-21, and July 23-25.

The ministry has told the interested suppliers to send offers by June 29 that will remain valid until July 3.

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