Kuwait Petroleum Corp plans to invest US$82 bln in hydrocarbons in next 5 years

08-Apr-09

Kuwait Petroleum Corporation (KPC) plans to invest KD24 bln (US$82.5 bln) over the next five years on developing its upstream and downstream capacity, comprising KD11.2 bln on upstream projects, KD12 bln on downstream infrastructure, KD209 mln on petrochemicals projects, and KD712 mln on undisclosed projects up to 2014. The projects under consideration include the estimated US$15 bln refinery at Al-Zour. Investments in upstream projects are expected to peak at KD3.2 bln in 2010-11 before falling to KD1.04 bln in 2013-14. Downstream investments will total KD12 bln over the five years, with expenditure peaking at KD3.6 bln in 2012-13. The petrochemicals industry, in its nascent stage, will be given the lowest investment under the plan, with only KD209 mln expected to be spent on the sector up to 2014, with annual spending in the range of KD24-61 mln. KPC oversees the six state-owned entities that control the country's oil sector, most prominent being Kuwait Oil Company (KOC), which is responsible for oil and gas exploration and production, Kuwait National Petroleum Company (KNPC), which oversees the country's refineries, and Petrochemical Industries Company (PIC), which controls Kuwait's petrochemicals sector. However, doubts have been expressed whether KPC will be able to pass the projects under the political influences that have left the hydrocarbons sector in confounded state, particularly after PIC called off a US$17.4 bln JV with Dow Chemical Company in December 2008.