Kuwait unveiled a plan to privatize parts of the state-controlled oil industry, while a senior oil executive said the emirate will invest at least US $64 billion in developing the sector.

“Our plan envisages privatizing more oil activities,” Energy Minister Sheikh Ahmad Fahd al-Sabah said in a speech read on his behalf by Kuwait Petroleum Corp. (KPC) Deputy Managing Director Sheikh Talal al-Sabah.

“This plan aims to allow KPC to focus on exploration and production of oil and natural gas,” which remain under state control, the minister told a symposium.

By the end of the current year, KPC plans to sell at least 30% of its foreign arm, the Kuwait Foreign Petroleum Exploration Company (KUFPEC) and 49% of Kuwait Drilling Company, the minister said.

It also plans to privatize two petrochemicals projects producing propylene and fertilizers, and Kuwait Oil Tanker Company (KOTC) which currently operates 24 oil tankers for crude and petroleum products, he said.

The emirate also plans to issue licenses for up to three new oil tanker companies, he said.

Kuwait also plans to privatize at least 20% of the planned new 615,000 barrels per day refinery which is estimated to cost US $6.3 billion and slated to come on line in 2010.

The minister said KPC plans to sell its butane gas factory, the only one of its kind in Kuwait, and a hospital run by the oil sector.

“All these privatization plans will be completed by 2010,” Sheikh Ahmad said.
rigzone.com

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