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$16bn Shaheen project seen as catalyst for foreign investment
🇰🇼 Kuwait /Economy & Trade

$16bn Shaheen project seen as catalyst for foreign investment

From Arab Times · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The $16 billion Shaheen project is expected to significantly boost foreign investment in Kuwait, increasing it from $2 billion to $18 billion.
  • Oil expert Kamel Al-Harami questioned the lack of local private sector participation and urged Kuwait Oil Company to allocate a stake to encourage local capital circulation.
  • The project's 20-year renewable contract involves three American companies and aims to connect major oil fields to marine export facilities, enhancing operational efficiency and ensuring export continuity.

The landmark $16 billion Shaheen project is poised to act as a major catalyst for foreign investment in Kuwait, with projections indicating a substantial increase from the current $2 billion to $18 billion. Oil expert Kamel Al-Harami revealed that the project encompasses 13 pipelines designed to transport oil directly from local production fields to northern, southern, and eastern ports and marine export facilities.

the 13 pipelines included in the Shaheen project -- from the local production fields to the northern, southern and eastern parts of the country -- directly feed into the ports and marine export facilities.

— Kamel Al-HaramiOil expert Kamel Al-Harami described the infrastructure involved in the Shaheen project.

Al-Harami raised concerns regarding the absence of the local private sector in this significant deal. He called upon the Kuwait Oil Company (KOC) to allocate 10 percent of its 51 percent stake in the project to the private sector. This move, he believes, would ensure the circulation of local capital within the nation's oil wealth and foster greater domestic involvement.

the reasons behind the absence of the local private sector and its failure to participate in this major deal.

— Kamel Al-HaramiKamel Al-Harami questioned the lack of local private sector involvement in the Shaheen project.

The involvement of three American companies in the Shaheen project is seen as a strong indicator of its success and a testament to Kuwait's growing attractiveness for foreign direct investment. The project's contract period is set for 20 years, with options for renewal. This long-term commitment signals confidence in Kuwait's oil sector and its potential for future growth.

to allocate 10 percent of its 51 percent stake to the private sector to ensure the circulation of local capital in the national oil wealth.

— Kamel Al-HaramiKamel Al-Harami suggested that Kuwait Oil Company should allocate a portion of its stake to the private sector.

Sources confirmed that the Shaheen network spans approximately 320 kilometers, linking gathering centers in major fields, including the Burgan field, to export terminals like Mina Al-Ahmadi and Mina Abdullah. This comprehensive infrastructure aims to ensure the continuity of oil exports, utilizing pipelines as the safest method for transporting crude oil. The project's strategic importance lies in both its operational benefits, creating a seamless connection between fields and export facilities, and its economic advantages, attracting foreign capital without compromising asset ownership.

the involvement of three American companies in this deal is a clear proof of its success.

— Kamel Al-HaramiKamel Al-Harami cited the participation of American companies as evidence of the Shaheen project's success.
DistantNews Editorial

Originally published by Arab Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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