Bid & Tender
Kuwait Plans Part-Privatization of Al-Zour Refinery

Date : Dec 21, 2015

Kuwait is considering giving 20 percent of its multi-billion-dollar Al-Zour oil refinery in South Kuwait to the private sector as a first step towards privatisation.

 

The government is studying plans to create a company for the refinery, in which the state will control 80 per cent.

 

"The remaining 20 percent share may be allotted to the private sector as the government begins to privatize the country's refining industry," it said.

 

However, an oil source said that such a plan may not be feasible for the time being because of low oil prices.

 

"Another source said that the plan is feasible only if the planned company for Al-Zour materializes and a petrochemical complex is built as well," it was reported.

 

Kuwait, a key OPEC member, awarded contracts in 2014 to build the 615,000-bpd Al-Zour refinery after many years of haggling because of high costs.

 

Kuwaiti daily Al-Seyassah said last week that the refinery and a project to build a fifth gas processing train at Mina Al-Ahmadi refinery could cost nearly 16.5 billion dollars.