Guidelines issued for new Kuwait ministry

29 August 2003
The recently-formed Energy Ministry will be responsible for carrying out new projects worth a total of at least $14,000 million over the next few years.

A bulk of the planned investment will be in the oil and gas sector, where a total of over $10,000 million will be spent over the next four years.

Leading the pack will be Project Kuwait, which proposes to enlist the support of international oil companies (IOCs) in doubling crude oil production from the five northern fields to 900,000 barrels a day (b/d) by 2006/7. The scheme is estimated to cost $7,000 million.

Next in line will be the proposed Qatar-Kuwait gas pipeline project, for which a sales and purchase agreement is due to be signed between Kuwait Petroleum Corporation, Qatar Petroleum and the US' ExxonMobil.

For the power sector, the Energy Ministry plans to spend over $4,000 million in setting up new power generation assets - the 1,000-MW Al-Zour South II and the 2,400-MW Al-Zour North projects. The new projects will draw feedstock from the proposed Qatar-Kuwait gas pipeline. Projects are also planned in the transmission and distribution sector, including a scheme to import water from Iran.

In mid-July, the Emir Sheikh Jaber al-Ahmed al-Sabah issued a decree on the merger of the Oil and Water & Electricity ministries and the setting up of a new Energy Ministry.

The major responsibilities of the new ministry will be:

Proposing the general policy for the energy and hydrocarbon sector, ensure follow-ups and carry out projects;

Supervise and co-ordinate the working of various Oil Ministry subsidiaries and the management of state-owned shares in the oil and gas companies;

Establish, manage and operate power generation stations and plants, besides water desalination utilities and water transmission lines, and also explore, drill and produce ground water;

Provision of electricity and water services and their distribution;

Conduct geological survey and control natural resources in the hydrocarbon and water sectors;

Develop relations with Arab and international authorities and institutions in energy affairs and related issues.

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