KUWAIT, March 15 - Kuwait's government will cancel a $15 billion oil refinery project, which met opposition in parliament, in its weekly meeting on Monday, the country's prime minister said in remarks published on Sunday.
"We will officially stop the project in the coming cabinet meeting," Sheikh Nasser al-Mohammad al-Sabah told al-Watan newspaper.
Kuwait's cabinet had asked the country's finance watchdog, the Audit Bureau, to look into the oil refinery project after a group of lawmakers raised concerns about the plan and warned the government against signing final contracts.
Sheikh Nasser told Watan the government is committed to the outcome of the Bureau's report on the refinery.
The Audit Bureau's on the refinery was not made public, but according to media reports, it had concluded the project was not feasible.
In May, state refiner Kuwait National Petroleum Co (KNPC) awarded deals worth $8.4 billion to four South Korean firms and one Japanese to build the 615,000 barrels per day al-Zour refinery with more work to be awarded at some stage later. The final contracts were yet to be signed.
A KNPC spokesman had no immediate comment on the report.
KNPC has awarded a package worth $4 billion to build crude distillation units to a consortium of JGC Corp of Japan and GS Engineering and Construction Corp of South Korea.
KNPC also has awarded a $2 billion project to build hydrogen production units to SK Energy of South Korea, while Daelim of South Korea won a $1.2 billion project to set up storage tanks.
Hyundai Engineering of South Korea won a $1.1 billion project for marine export facilities in May.
The project, which was managed by U.S. company Fluor Corp has been facing opposition in parliament.
In December, Kuwait scrapped a $17 billion joint-venture with U.S. firm Dow Chemical just a month after signing the deal saying it was no longer viable in light of the global crisis after parliament opposed the deal. ($1=.2950 Kuwaiti Dinar)
"We will officially stop the project in the coming cabinet meeting," Sheikh Nasser al-Mohammad al-Sabah told al-Watan newspaper.
Kuwait's cabinet had asked the country's finance watchdog, the Audit Bureau, to look into the oil refinery project after a group of lawmakers raised concerns about the plan and warned the government against signing final contracts.
Sheikh Nasser told Watan the government is committed to the outcome of the Bureau's report on the refinery.
The Audit Bureau's on the refinery was not made public, but according to media reports, it had concluded the project was not feasible.
In May, state refiner Kuwait National Petroleum Co (KNPC) awarded deals worth $8.4 billion to four South Korean firms and one Japanese to build the 615,000 barrels per day al-Zour refinery with more work to be awarded at some stage later. The final contracts were yet to be signed.
A KNPC spokesman had no immediate comment on the report.
KNPC has awarded a package worth $4 billion to build crude distillation units to a consortium of JGC Corp of Japan and GS Engineering and Construction Corp of South Korea.
KNPC also has awarded a $2 billion project to build hydrogen production units to SK Energy of South Korea, while Daelim of South Korea won a $1.2 billion project to set up storage tanks.
Hyundai Engineering of South Korea won a $1.1 billion project for marine export facilities in May.
The project, which was managed by U.S. company Fluor Corp has been facing opposition in parliament.
In December, Kuwait scrapped a $17 billion joint-venture with U.S. firm Dow Chemical just a month after signing the deal saying it was no longer viable in light of the global crisis after parliament opposed the deal. ($1=.2950 Kuwaiti Dinar)
