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Kuwait Oil Min. blames swinging oil prices on geopolitical events

By Osama Jalal KUWAIT, Jan 16 (KUNA) -- Kuwaiti Minister of Oil Mohammad Al-Busairi said here Monday geopolitical events were mainly to blame for uncontrollable global oil prices, which are "so far so good".

Speaking to KUNA while touring Kuwait National Petroleum Company and Al-Ahmadi Oil Refinery, he said: "Oil prices are controlled by many factors ... they are now directly affected by geopolitical events and tensions in the Arabian Gulf region, the Strait of Hormuz and European countries' threats of a ban on Iranian oil." But, Al-Busairi, who also doubles as minister of state for National Assembly affairs, expected no hike in international oil prices due to sufficient supply of oil.

On Kuwait, he said several oil projects are to be set up in 2012; primarily a new refinery and a clean environmental fuel project.

The two projects are predicted to create a "major quantum leap" in the oil sector in Kuwait, he said, estimating the cost at a total of KD 8.6 billion.

The projects, which only require the cabinet's approval, are to be launched before the end of this year, and to be completed by 2016, he added.

"We, in the Kuwait Petroleum Corporation , are very interested in new local and overseas projects," he said, referring to oil projects in China and Vietnam.

The oil minister also doubles as board chairman of the Kuwait Petroleum Corporation ( KPC ).

The KPC has created two teams for following up on local and overseas oil projects, he pointed out.

A KPC delegation visited China and Vietnam early January 2012.

The Kuwaiti oil minister applauded the tour as "very successful", saying that a Chinese delegation is expected to visit Kuwait in February to sign relevant contracts with the KPC .

A joint technical team has been set up by Kuwait and China to look into relevant technical, operational, financial and administrative details, he said. They will come up with a report in this respect within a couple of weeks.

He confirmed that the oil projects in China and Vietnam would be highly rewarding for Kuwait.

Back to the refinery and clean environmental fuel projects, he predicted them to provide 1,200-1,300 jobs to Kuwaiti youth.

Some 6,300 employees, of whom Kuwaitis make up 80 percent, are working in the KNPC, the minister pointed out.

For his part, the CEO of KPC , Farouk Al-Zanki, hailed the minister's tour as aiming to get acquainted with the company's oil activities.

The company's workers briefed the minister on all details bearing on Al-Ahmadi refinery, the company's major facility, he said.

He added that time is ripe to carry out the refinery and clean environmental fuel projects immediately.

KNPC Board Chairman and Managing Director Fahad Al-Ajmi said the minister's tour of the company aimed to have communication with the staff of the oil sector.

He appreciated this step as a springboard for bringing the worker and the official closer.

During his tour, the minister was apprised of the company's operations, and current and future projects, he said.