KUWAIT CITY, Kuwait (AFP) – Organization of the Petroleum Exporting Countries member Kuwait plans to spend $100 billion on oil projects inside and outside the Gulf state over the next five years, an oil executive said Monday.
"Around $100 billion has been earmarked for oil projects... 60% of it on upstream projects inside and outside Kuwait," chief executive of national oil conglomerate Kuwait Petroleum Corp. Faruq al-Zanki told reporters.
The expenditure is part of the emirate's long-term strategy to raise output capacity to 4.0 million barrels a day from 3.0 million, Zanki said on the sidelines of the Kuwait Energy Projects conference organized by the Middle East Economic Digest.
Construction of a 615,000 barrels-a-day refinery and the clean fuel project to modernize two of the country's three refineries, both costing $30 billion, are part of the spending plan, Zanki said.
National refiner Kuwait National Petroleum Co. last month appointed Foster Wheeler and Amec companies as consultants for the two projects slated to be completed by 2018.
Zanki said that KNPC, a subsidiary of KPC, expects to tender the two projects by the start of next year after they had been repeatedly delayed due to political bickering.
The two projects are projected to raise Kuwait's refining capacity to 1.4 million barrels a day from 930,000 barrels a day.
Kuwait, OPEC's third largest producer, says it sits on 10% of the world's proven crude reserves.
Copyright (c) 2012 Dow Jones & Company, Inc.
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