PIC’s Kuwait olefins project costs balloon to $8bn-9bn

06 May 2013 09:26  [Source: ICIS news]

oil refinery in KuwaitDUBAI (ICIS)--Kuwait's state-run Petrochemical Industries Company (PIC) faces up to $4bn (€3bn) spike in costs of its Olefins III project amid delays in start-up, which is now expected in 2017, the company said on Sunday.

“A final estimate cannot currently be determined...the initial estimates for the petrochemical Olefins III project is in the range of $8bn-9bn,” Yousef Al-Ateeqi, PIC deputy managing director for olefins, said in a statement.

The Olefins III project was originally scheduled for a start-up in 2015 with estimated cost of $5bn.

Any further delay would adversely affect the project as it would further diminish revenues that could have been generated had it become functional at an earlier date, Al-Ateeqi said.

Currently, the company is assessing international partners who will take part in the project, he said.

“Relocating the project is also underway since a proposal has ruled out that it be within the bounds of a new refinery Kuwait is constructing,” Al-Ateeqi said.

Initially the company had planned to set up the proposed project at Al- Shuaiba industrial area, south of Kuwait city.

Industry officials said the company is talks with the Kuwait National Petroleum Company about a prospective land allocation close to its proposed 615,000 bbl/day refinery complex at Al-Zour, near Kuwait's border with Saudi Arabia.

PIC is a wholly-owned subsidiary of Kuwait Petroleum Corp (KPC).

($1 = €0.76)


By: Aamir Ashraf



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