Can you provide insights into the greatest advantages and opportunities offered by the Al-Zour Refinery in Kuwait?

The Al-Zour Refinery project entered the construction phase at the end of 2015 and was recently completed earlier this year. We have commenced the commissioning of the mini refineries in sequence, with the first refinery already in commercial operation. By March 2023, the second and third refineries will also be online. One of the main advantages of the Al-Zour Refinery is the production of high-quality petroleum products and fuels that meet the latest environmental standards. For instance, the refinery produces fuel oil with a low sulfur content of 0.5% wt., in compliance with the International Maritime Organization’s new regulations for sulfur limits in bunker fuel. Additionally, the refinery exports Ultra-Low Sulfur Diesel, Aviation Turbine Kerosene (ATK), and high-quality petrochemical Naphtha for international markets. It also produces liquified petroleum gas (LPG) for domestic export. Furthermore, the refinery offers an attractive opportunity for downstream integrations with petrochemical projects to upgrade low sulfur fuel oil into higher-value products.

From your perspective, what do you foresee in terms of wealth generation and financial stability in Kuwait in the coming months?

In terms of wealth generation and financial stability, refinery operators worldwide focus on the margin between crude oil prices and the market prices of finished products. This margin serves as the primary financial driver for refinery operators, enabling them to generate revenues and ultimately profits. It is important to note that these margins can sometimes narrow down when crude prices increase. However, for oil-producing countries like Kuwait, an improvement in crude prices leads to higher financial returns from crude oil exports, contributing to financial stability.

What measures can be taken to further increase the potential of Kuwait’s oil and gas sector capacity?

KIPIC, as part of its growth strategy, aligns with the long-term strategy of the Kuwait Petroleum Corporation (KPC) to ensure that the oil and gas sector operates as a unified and consistently growing entity. Given the ongoing energy transition towards clean and renewable energy sources, KIPIC has already begun working on its energy transition plan in collaboration with KPC and other sister companies in the oil, gas, and petrochemicals sector. Embracing digitalization and artificial intelligence (AI) is another key aspect that can enhance the potential of the oil, gas, and petrochemical sector in Kuwait. By leveraging digital technologies, the sector can optimize operations, improve efficiencies, and unlock new opportunities for growth.