Kuwait to launch $28 bn Al-Zour complex in February

Kuwait is planning to launch a $28-billion Al-Zour complex project involving the construction of a 615,000-bpd refinery and a large petrochemical plant in February,  a newspaper in the Gulf Opec oil producer reported on Sunday.

The Arabic language daily Al-Seyassah said an international consultancy firm is carrying out a feasibility study on the project to integrate the petrochemicals plant into the refinery project and it would be completed this month.

It did not identify the consultant but said the study would be presented to the Kuwait Petroleum Corporation (KPC), which will seek approval from the Supreme Petroleum Council (SPC).

“KPC will seek SPC approval for this project so it will be launched in February…the project will cost around $28bn,” it said, quoting “informed” sources.

It said the investments include 16 billion dollars for Al-Zour oil refinery, 10 billion dollars for the petrochemicals complex and two billion dollars for gas supply facilities.

The paper quoted the sources as saying oil authorities are considering offering 50 per cent shareholding in the project to the private sector, including firms and individuals.

“The new project will be called ‘Al-Zour oil complex’…the integration process will reduce costs and increase profitability,” it said.

It said Kuwaiti citizens could be allowed to contribute 25 per cent to the project while another 25 per cent shareholding would be offered to companies.

Kuwait, which controls nearly 101 billion barrels of proven crude deposits, last year awarded contracts for the 16-billion-dollar state-of-the-art Al-Zour refinery, one of the world's largest refining units.