By NNN-KUNA
Kuwait : Chief Executive Officer of Kuwait Petroleum Corporation (KPC) Saad Ali Al-Shuwaib has said that the company is negotiating with a number of institutions in China, India and Vietnam to build oil and petrochemical projects, including oil refineries.
Al Shuwaib, in a statement to reporters during his participation in a symposium on industrial investment in the oil sector here Tuesday, said that the global trend now is combining the building of refineries and petrochemical projects because it is more economic.
He stressed that the KPC’s policy in this area is the partnership with other parties provided the use of Kuwaiti oil in these projects.
He indicated that this trend and this method is welcomed by the Asian countries.
Replying to a KUNA question on the impact of the low dollar exchange rate on the projects and contractors engaged, Al Shuwaib explained that the decrease in the US dollar exchange rate is causing a lot of problems because the contractor has calculated accounts to a certain price then occurred the dollar’s decline and higher value of materials, which leads to a loss.
He advised contractors and companies contracting with KPC and its affiliates to agree with a bank to stabilize the currency rate of exchange to be dealt with, such as the Kuwaiti dinar against the dollar throughout the project.
He said that some companies, such as Kuwaiti company Equaite is operating in this way.