Huge fine topple large heads in Kuwait's oil sector

Huge fine topple large heads in Kuwait's oil sector



The Kuwaiti oil sector, which depends upon the country's economy almost entirely administrative changes after the state paid this month's $ 2.2 billion fine for the U.S. Dow Chemical Company as compensation for its withdrawal from the joint venture.

And overthrew the conflict, which lasted nearly four years, the CEO of Kuwait Petroleum Corporation (KPC) Farouk Al-Zanki and led to changes in the board of directors.

The news agency said that the Kuwaiti Council of Ministers adopted a draft decree appointing Nazar Mohammed Yousef Al-Adsani Vice Chairman of the Board and Chief Executive Officer of Kuwait Petroleum Corporation (KPC) state-owned, the executive arm of the government in the oil sector and fall under the umbrella of all government oil companies.

The Adsani site chairman of the Board of Directors and Managing Director of the Kuwait Foreign Petroleum Exploration Company.
Kuwait paid on the seventh of this month for the Dow Chemical Company's largest chemical producer in the United States $ 2.2 billion in compensation from Petrochemical Industries Company, the state-owned Kuwait for its withdrawal from the joint venture worth $ 17.4 billion in December / December 2008. The Kuwaiti company attributed its withdrawal to the deterioration of the global economy at the time.

The project raised the political sensitivities in Kuwait and subjected to scrutiny in the National Assembly (parliament) in a time when the debate was raging between the executive and legislative branches.

The amendments also included the appointment of two new members to its board two Khaled Bou Hamra and Hamza Bakhsh.

The Cabinet decided to stop leading officials Petrochemical Industries Company for work "in order to preserve the integrity of the investigation and to ensure neutrality and to avoid any suspicions affect the investigation or prejudice their reputations."

The Council decided to refer all matters relating to the contract between petroleum and chemical company Dow Chemical to the public prosecutor, including the preparation procedures and conditions of the contract and sign it and related procedures to cancel the contract and compensation Convention and the steps taken after the decision to cancel.
The company said the Kuwaiti petroleum chemical industry this month it made the payment after the "exhausted all arbitration proceedings." The arbitral tribunal ended its work at the beginning of the year.
And operates Dow Chemical and Petrochemical Industries Company, Kuwait currently has four other joint projects.

Kuwaiti newspapers abound and many Internet sites of speculation about the coming changes in the management structure of the major oil companies owned by the state.

He said oil analyst Kamel Al-Harami The new officials will be "more careful" in dealing with this sector, which suffered much of what he described as "political interventions".

He added that this caution may contribute to the further delay of strategic oil projects the government intends to proceed during the coming period, the most important project of establishing Al-Zour refinery and clean fuels project, which includes the development of refineries two lists.
The estimated volume of investments in the Al-Zour refinery project at $ 14.5 billion and a capacity of up to 615 thousand barrels per day.

The new refinery project aims to produce environmentally friendly fuel to feed power plants and water in Kuwait and some other products destined for export.

And owns the Kuwait National Petroleum Company subsidiary of Kuwait Petroleum Corporation (KPC) three oil refineries are Shuaiba refinery, Al-Ahmadi and Mina Abdullah.

Kuwait was canceled tenders put forward to the implementation of the project after the announcement of the results due to objections from lawmakers on the legal procedures for tenders and referred the topic to study again.
It was expected tenders for the establishment of the project, which includes the supply of raw materials and the beginning of the implementation of the current year but it was delayed without postings reasons.

The project aims to develop clean fuel refineries Mina Abdullah, Al-Ahmadi and raise طاقتهما of the total refining capacity of 800 thousand barrels per day and linked to become Tkirraa complex integrated and تأهيلهما for the production of high-quality petroleum products and environmentally friendly such as diesel and kerosene.

The total production capacity of Ahmadi refinery currently 466 thousand barrels per day and Mina Abdullah Refinery 270 thousand barrels per day.
Harami said that political factors are that caused the payment of a fine of this magnitude Kuwait, adding that the oil sector was not directly responsible for this loss.

He said, "Oil Minister ... has an opportunity to build a harmonious and homogeneous team" and move forward to achieve the objectives of the sector away from any pressure. "

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