Kuwait allocates US$44bn for oil and petrochem upgradation

13-Dec-05

10% of the world’s proven reserves of around 100 bln barrels are in Kuwait. Kuwait has the fifth largest Opec quota at 2.227mln bpd but its actual production is around 2.5 mln bpd, which it plans to boost to 4 mln bpd in 15 years. For this, Kuwait has allocated over US$44bn over the next 15 years to upgrade its oil industry which will include mega projects such as a large refinery and upstream projects to raise output, in addition to a number of large petrochemicals plants. Boosting production capacity from the current 2.7 mln bpd to 4 mln bpd by 2020 is estimated to cost US$20bn on projects including upgrading production facilities, pipelines, gathering centers, booster stations and export terminals. A number of giant petrochemicals plants, at an estimated cost of US$10 bln, are under establishment with the help of foreign companies, led by the US Dow Chemical. In addition, Kuwait has signed a memorandum of understanding with China to build a refining and petrochemicals complex in the Asian giant at a cost of US$5bn, to be completed in 2010.