Kuwait National Petroleum Company (KNPC) is in final stages of negotiations with European, Japanese and South Korean credit agencies for the second tranche of loans (US$6.4bn) for its Clean Fuels Project (CFP). The first loan portion (KWD 1.2bn, i.e. US$.97bn) was signed in late April 2016.
The CFP consists in upgrading and expanding the two existing KNPC refineries at Mina Abdulla and Mina Al-Ahmadi with a focus on producing higher-value products such as diesel and kerosene for export. Total refining capacity of this complex after the CFP completion will go up to 800,000 bbl/d.
Overall, Kuwait plans to invest KWD 34.5bn (US$115bn) on oil projects over the next five years, including more than KWD 30bn (US$100bn) in domestic projects and KWD 23bn for exploration and production. Kuwait aims to increase its production from the current 3 mb/d level to 4 mb/d by 2020 and to maintain it for another decade. The OPEC member also aims to build four gathering centers, develop heavy oil production and raise gas production from 150 mcf/d (4.2 mcm/d) to 2 bcf/d (56 mcm/d). Investments in the downstream sector should exceed US$30bn, including the Clean Fuels Projects, the new 615,000 bbl/d Al Zour refinery project and a new 15 bcm/year LNG import terminal.
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