Political turmoil is stalling growth in Kuwaiti energy sector

It would come as no surprise if the elections shake up the way Kuwait's energy companies are run.

Farouk al-Zanki faces one of the toughest months of his 30-year career. Since taking over as chief executive officer of Kuwait National Petroleum Company (KNPC) at the end of 2007, Al-Zanki has been given the task of awarding contracts on the $15bn Al-Zour refinery and preparing the $15-20bn clean fuels project to upgrade the Mina al-Ahmadi and Mina Abdulla refineries.

Progress on both projects has been slow or non-existent, but this cannot be attributed to poor management on Al-Zanki's behalf. He has been a victim of political turmoil, which has left state-run companies and international contractors in limbo.

Al-Zanki faces two big tests in the coming weeks. The first is a trip to South Korea and Japan to negotiate a compensation settlement with disgruntled contractors who are still coming to terms with losing out on billions of dollars worth of contracts on the Al-Zour project. Relations between the two sides remain cordial, but Al-Zanki will need to draw on all of his experience working in the industry to keep everyone onside.

The more worrying question, both for Al-Zanki personally and international con-tractors, is how the parliamentary elections on 16 May will affect key projects. It would come as no surprise if there was a shake-up in the way KNPC and the state's main oil company, Kuwait Petroleum Corporation, are run once the new politicians take office.

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