KUWAIT CITY: Kuwait plans to spend some $ 100 billion on oil projects inside and outside the Gulf state over the next five years, a top oil executive said.
“Around $100 billion has been earmarked for oil projects ... 60 percent of it on upstream projects inside and outside Kuwait,” CEO of national oil conglomerate Kuwait Petroleum Corp. Faruq Al-Zanki said.
The expenditure is part of the emirate’s long-term strategy to raise output capacity to 4.0 million barrels per day from the current 3.0 million, Zanki said on the sidelines of the Kuwait Energy Projects conference organized by the Middle East Economic Digest (MEED).
Construction of a new 615,000 bpd refinery and the clean fuel project to modernize two of the country’s three refineries, both costing $30 billion, are part of the spending plan, Zanki said.
National refiner Kuwait National Petroleum Co. (KNPC) recently appointed Foster Wheeler and Amec companies as consultants for the two projects slated to be completed by 2018.
Zanki said that KNPC, a subsidiary of KPC, expects to tender the two projects by the start of next year after they had been repeatedly delayed due to political bickering.
The two projects are projected to raise Kuwait’s refining capacity to 1.4 million bpd from the current 930,000 bpd. When the two projects are complete, Kuwait plans to shut the Shuaiba refinery.
Kuwait is engaged in advanced talks with China and Vietnam for multi-billion-dollar joint ventures to build two oil refinery and petrochemical complexes.
The emirate also has oil production operations in several countries through its state-owned Kuwait Foreign Petroleum Exploration Co. (KUFPEC).
Kuwait Petroleum International runs refineries and petrol stations in Europe as well.
Kuwait, OPEC’s third largest producer, says it sits on 10 percent of the world’s proven crude reserves and is pumping 3.0 million bpd.
Kuwait to spend $ 100 billion on oil projects over five years
Kuwait to spend $ 100 billion on oil projects over five years
Silver crosses $77 mark while gold, platinum stretch record highs
- Spot silver touched an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits
- Spot platinum rose 9.8% to $2,437.72 per ounce, while palladium surged 14 percent to $1,927.81, its highest level in over 3 years
Silver breached the $77 mark for the first time on Friday, while gold and platinum hit record highs, buoyed by expectations of US Federal Reserve rate cuts and geopolitical tensions that fueled safe-haven demand.
Spot silver jumped 7.5% to $77.30 per ounce, as of 1:53 p.m. ET (1853 GMT), after touching an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits, its designation as a US critical mineral, and strong investment inflows.
Spot gold was up 1.2% at $4,531.41 per ounce, after hitting a record $4,549.71 earlier. US gold futures for February delivery settled 1.1% higher at $4,552.70.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Markets are anticipating two rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could name a dovish Fed chair, reinforcing expectations for a more accommodative monetary stance.
The US dollar index was on track for a weekly decline, enhancing the appeal of dollar-priced gold for overseas buyers.
On the geopolitical front, the US carried out airstrikes against Daesh militants in northwest Nigeria, Trump said on Thursday.
“$80 in silver is within reach by year-end. For gold, the next objective is $4,686.61, with $5,000 likely in the first half of next year,” Grant added.
Gold remains poised for its strongest annual gain since 1979, underpinned by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends.
On the physical demand side, gold discounts in India widened to their highest in more than six months this week as a relentless price rally curbed retail buying, while discounts in China narrowed sharply from last week’s five-year highs.
Elsewhere, spot platinum rose 9.8% to $2,437.72 per ounce, having earlier hit a record high of $2,454.12 while palladium surged 14% to $1,927.81, its highest level in more than three years.
All precious metals logged weekly gains, with platinum recording its strongest weekly rise on record.
