Kuwait okays supreme petroleum council

Kuwait's cabinet yesterday approved a new Supreme Petroleum Council, the national oil industry's highest decision-making panel, with a one-year term, said Oil Minister Sheikh Ahmed Al Abdullah Al Sabah.

"The decree for forming a new supreme petroleum council is already approved by the cabinet," Sheikh Ahmed said. The order for the council requires the signature of His Highness Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah.

"Three members of the former council resigned in protest at the cancelation of the K-Dow project and these three have been replaced," said Kamel Al Harami, an independent oil analyst.

Kuwait said in December 2008 it scrapped a deal with Dow Chemical to create K-Dow Petrochemicals. The move followed opposition from Kuwaiti lawmakers to the joint venture. In March last year, the government put on hold a planned fourth oil refinery after coming under pressure from opposition lawmakers who said the awarding of contracts to international companies circumvented the law by not going through the Central Tenders Committee.

SPC members include the prime minister, oil minister and CEO of Kuwait Petroleum Corp. The former council also comprised private sector representatives and Sheikh Ahmed said the new SPC would have the same composition. "I hope this signals the start of major oil projects within the framework of the government's development plan," said Al Harami.

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.