Spanish:
 
|
Kuwait unveils new oil privatization plan
AP/WWP
Al Sabah (L): KPC plans to sell at least 30% of KUFPEC and 49 percent of Kuwait Drilling Company
AFP
KUWAIT CITY
Petroleumworld.com 05 10 06
Kuwait on Tuesday unveiled a plan to privatize parts of the state-controlled oil industry as a senior oil executive said the emirate will pump at least 64 billion dollars to develop the sector.
"Our plan envisages privatizing more oil activities," Energy Minister Sheikh Ahmad Fahd al-Sabah said in a speech read on his behalf by Kuwait Petroleum Corp. (KPC) Deputy Managing Director Sheikh Talal al-Sabah.
"This plan aims to allow KPC to focus on exploration and production of oil and natural gas," which remain under state control the minister told a two-day symposium on making Kuwait a regional financial and commercial center.
Over the past few years, KPC has sold a chlorine factory, a huge petrochemicals complex and a lubricants factory to local and foreign private investors.
By the end of the current year, KPC plans to sell at least 30 percent of its foreign arm, the Kuwait Foreign Petroleum Exploration Company (KUFPEC) and 49 percent of Kuwait Drilling Company, the minister said.
It also plans to privatize two petrochemicals projects producing propylene and fertilizers, and Kuwait Oil Tanker Company (KOTC) which currently operates 24 oil tankers for crude and products, he said.
The emirate also plans to issue licenses for up to three new oil tanker companies, he said.
Kuwait also plans to privatize at least 20 percent of the planned new 615,000 barrels per day refinery which is estimated to cost 6.3 billion dollars and slated to come on line in 2010.
The minister said KPC plans to sell its butane gas factory, the only one of its kind in Kuwait, and a hospital run by the oil sector.
"All these privatization plans will be completed by 2010," Sheikh Ahmad said.
KPC fellow Deputy Managing Director Nabeel Buresli told the same symposium that development projects in the oil sector until 2020 are estimated to cost at least 64 billion dollars.
"These estimates are conservative and in light of recent increase in prices, we expect the cost to rise by 10 to 15 percent," Buresli said.
The projects include raising oil production capacity to three million barrels per day (bpd) in 2010, 3.5 million bpd in 2015 and to four million bpd in 2020.
"We are considering the possibility of raising our output to five million bpd by 2020 if global demand requires," he said.
Projects on exploration and the output hike inside Kuwait are estimated to cost 26 billion dollars, while four billion dollars will be spent on similar projects abroad.
Other projects include building a new refinery, several petrochemicals plants, modernizing the oil tanker fleet and upgrading crude and products export facilities, Buresli said.
Kuwait, which sits on 10 percent of global oil reserves, is pumping about 2.6 million bpd.
AFP 05 09 06 1206 GMT
Copyright © 1994-2006 Agence France-Presse. All Rights Reserved.
Your
feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com
Any
question or suggestions, please write to:
editor@petroleumworld.com
Best
Viewed with IE
5.01+
Windows
NT 4.0, '95, '98 and ME +/ 800x600 pixels