News Summary Report Monday/ November 9, 2020
Korea-Kuwait Relations
22.7% volume of Asian investments in Kuwait
Accumulative geographical distribution of investments:
The approved direct investments in Kuwait came from 21 countries that included Holland, China, Canada, Spain, British Virgin Islands, Turkey, France, United States of America, Germany, Republic of Korea, Japan, Singapore, Belgium, Italy, Lebanon, India, New Zealand, Switzerland, United Kingdom, Poland, United Arab Emirates, and local investors. As for the geographical distribution according to the continents, Europe came first as a source of approved accumulative direct investments (63.9%), followed by Asia (22.7%), then North America (13.2%), Oceania (0.2%). The volume of the total direct investments Kuwait Direct Investment Promotion Authority (KDIPA) could attract during last year was KD 115.8 million making the total accumulated direct investments volume KD 1.075 billion. Al-Qabas
Total
Japan Republic of Korea
China Poland
Switzerland
Belgium Holland
Germany
UAE
Turkey Lebanon
Singapore
New Zealand India Italy
Spain UK
France Canada
USA
British Virgin Islands
Volume of South Korea’s direct investments in Kuwait is KD 18,275,426
(Report link: https://www.kdipa.gov.kw/annual-reports/#
KOC might delay the deadline to submit “Jurassic Gas” bids until next year MEED Magazine learned from informed industrial sources that the deadline will be December 22nd, 2020 to submit bids for Jurassic Production Facilities two projects named JPF-4 and JPF-5 in the north of Kuwait, while contractors expect delays to occur in awarding these projects that are estimated at a total of USD 900 million. Kuwait Oil Company issued the bid’s documents on September 13th, 2020 and assigned December 22nd, 2020 as a deadline to submit the bids. One of the sources said that there is a possibility to delay this deadline (December 22nd, 2020).
MEED Magazine added quoting the same sources that this delay will not specifically be a result for Covid-19 pandemic implications, as some contractors seem to need more time to study and prepare their bids. 10 companies attended the pre-bid meeting for the Jurassic Production Facilities projects on October 5th, 2020, according to the sources. MEED learned that 11 companies were previously qualified to submit bids on the project:
1 Sinopec (China),
2 Black Cat Engineering & Construction WLL (BCEC) (Qatar), 3 Gas &Oil fields services company (GOFSCO) (Kuwait), 4 JGC (Japan),
5 Petrofac (UK),
6 Samsung Engineering (Republic of Korea),
7 DAEWOO ENGINEERING & CONSTRUCTION (Republic of Korea), 8 KBR (USA),
9 Spetco International Petroleum Co. (Kuwait), 10 Schlumberger Oilfield Eastern Limited (UK), 11 Alkhorayef Group (KSA).
MEED Magazine pointed out that the bids offering of the two projects of Jurassic Production JPF-4 and JPF-5 was delayed for too long since it was first announced in January 2020. MEED said that under the original terms of the contracts, the qualified companies will have 22 months to carry out the construction in addition to operation and maintenance of the facilities for 5 years. The two contracts provide for the establishment of a facility with 50 thousand bpd of oil capacity and 150 million standard cubic feet of gas daily. Al-Anba
External Affairs
Kuwait FM to visit Washington on Nov. 24 for Kuwait-US Strategic Dialogue closing ceremony
The Minister of Foreign Affairs and Acting Minister of Information Sheikh Dr.
Ahmed Al-Nasser Al-Mohammed Al-Sabah is set to pay an official visit to the United States on November 24. The governments of the US and Kuwait are scheduled to launch their fourth Strategic Dialogue talks today through a series of virtual, bilateral working groups, the US Embassy said yesterday. The working groups will run for the next two weeks in the lead up to a closing ceremony in Washington DC on November 24. The closing ceremony will be co-chaired by US Secretary of State Mike Pompeo and Kuwaiti Foreign Minister Sheikh Ahmad Nasser Al-Mohammad Al-Sabah. The different working groups serve to strengthen cooperation between the two countries across various fields including political, human rights and development; education and scientific cooperation; security;
consular services, customs, and border protection; trade and investment; and defense. “The bilateral working groups have to take on a mostly virtual dimension this year because of the pandemic,” US Ambassador to Kuwait Alina Romanowski said. “If anything, however, going virtual is a testament to our commitment and resolve to expand cooperation between our two countries despite the limitations imposed by COVID-19,” Romanowski added. The US-Kuwait Strategic Dialogue, first launched four years ago, is the overarching framework of efforts to shape the two countries’ work on shared issues. The 2020 dialogue will build on the successes from previous years, including past agreements and MOUs on counter- terrorism training, higher education, cybersecurity, counter-narcotics, and customs security. As part of this year’s Strategic Dialogue, the two countries are expected to sign the first MOU on health cooperation. “The Strategic Dialogue has become the centerpiece of our enduring relationship and it will continue to serve as a long- term framework for our common vision of continuously expanding cooperation,”
Ambassador Romanowski said. Al-Rai PM receives invitation to visit Iraq
His Highness the Prime Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah at Seif Palace on Thursday received Iraqi Ambassador to Kuwait Al-Manhal Hussein Al- Safi, who delivered a letter to His Highness from Iraqi Prime Minister Mustafa Al- Kadhimi, inviting His Highness Sheikh Sabah to visit Iraq. The meeting was attended by Assistant Minister of Foreign Affairs for Arab World Affairs Ambassador Fahad Al-Awadhi. All Newspapers
Kuwait launches fresh moves to resolve the GCC dispute
Kuwait is pursuing its mediation efforts to resolving the Gulf dispute and launched contacts at higher levels with the concerned parties,” Al-Qabas reported quoting high-level governmental sources. The sources mentioned that the Kuwaiti efforts are backed by the American side, ruling out the possibility of the involvement of a new country in these efforts. The Kuwaiti and the American sides are very keen on ending the Gulf dispute as soon as possible to preserve the status of the Gulf Corporation Council and to focus on addressing other pressing economic and global issues. The sources expressed optimism about the chance of reaching a solution to the cisis in the near future. Al-Qabas
Economy
Kuwait to lead Middle Eastern refinery capacity growth by 2024, says GlobalData
Supported by its Al-Zour project, Kuwait is expected to lead the refinery capacity growth in the Middle East by 2024, with the anticipated addition of 615 thousand bpd contributing to around 31% of the region’s total growth, according to GlobalData. This is expected to be closely followed by Saudi Arabia, with contributions of 24%. GlobalData’s report, ‘Refining Industry Outlook in Middle East to 2024 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Refineries’, reveals that refining capacity in the Middle East is expected to increase by around 17% from 11.6 mmbbl per day in 2020 to 13.6 mmbbl per day by 2024. Of the total capacity additions in the region, 1.5 mmbbl per day is expected to come from planned projects, while the remaining 0.5 mmbbl per day is likely to come from the expansions of active/operational projects.
Amareswari kanaparthi, oil and gas analyst at GlobalData, commented, “Kuwait leads the refinery capacity growth in the Middle East through the planned Al-Zour project, one of the biggest upcoming refineries in the world. The refinery is being planned to process 615 mbd of Kuwaiti crudes to produce low-sulphur fuel oil (LSFO) for power plants in the country, and other products such as jet fuel for global markets. The refinery helps Kuwait to reduce emissions from power plants by replacing high-sulfur fuel oil with low-sulfur fuel oil.” GlobalData expects Saudi Arabia to occupy the second place in terms of refinery capacity additions in the Middle East by 2024. Saudi Arabia is expected to contribute about 24% of Middle east refinery capacity growth, adding about 470mmbd by 2024. Additions in the country are mainly from the planned Jizan refinery, which has a refining capacity of 400mbd, and the expansions of Jubail and Yanbu refineries.
Amareswari concluded, “Iraq will be the third-highest country in the Middle East
to add about 310 mbd of refining capacity by 2024.The planned Karbala refinery accounts for about half of the capacity additions in the country.” GlobalData
