Kuwait’s energy sector is the strongest in the GCC and remains formidable regardless of slumping oil prices, new report says.
The Ventures Onsite Kuwait Energy Sector 2015 report highlights the $100 billion worth of investment projects to be awarded in the next five years as the country’s oil and gas industry continues to grow despite low oil prices.
Despite its small geographic size, Kuwait is a giant in the oil and gas industry. More importantly, the International Monetary Fund (IMF) has reported that among GCC countries, only Kuwait will manage to maintain a budget surplus in 2015.
The energy sector has for decades been Kuwait’s strongest industry and continues to be so regardless of the current oil prices as energy projects constituting 40 per cent of the total construction projects in Kuwait as of May 2015.
The total contract awards in the energy sector are expected to increase from $17.6 billion in 2014 to $22.1 billion in 2015 due to multiple factors including the government’s implementation of its 2030 strategy and expected infrastructure development, the implementation of new PPP laws and the large amount of tenders awarded, $ 4.2 billion valued in the energy sector.
The report also highlights the government’s dedication to large-scale initiatives including the Clean Fuels Project, which involves a series of refinery upgrades and the new refinery development at Al Zour and the Shagaya Renewable Energy Scheme.
Source: The Big 5 Hub