[Goldfisch]

Kuwait to set up company for proposed mega-oil project


KUWAIT CITY (AFP) -- Kuwait plans to set up a new company to manage a proposed seven-billion-dollar project that has been stalled for over a decade, the emirate's energy minister said in remarks published Thursday.

The company will manage the development of the northern oilfields in cooperation with international oil firms to double its output to 900,000 barrels per day (bpd), Sheikh Ahmad Fahd al-Sabah told the energy ministry magazine Al-Naft.

The controversial mega-investment, known as Project Kuwait, has been delayed because of resistance by MPs who want to make sure that national oil resources will not be surrendered into the hands of international oil companies.

Ahmad al-Arbeed, a top oil executive, is tipped to lead the new company, following his appointment in August to head Project Kuwait.

Arbeed has been handling the project for the past three years in his capacity as chairman of Kuwait Oil Company (KOC), the firm responsible for oil exploration and production in the Gulf state.

His appointment was seen as a clear signal that the government is determined to speed up implementation of the project.

The government intends to submit all documents relating to Project Kuwait to parliament after it opens its new legislative term next Tuesday.

The Kuwaiti constitution prohibits any investment in the country's natural resources without legislation being passed.

Kuwait is currently producing flat out at approximately 2.5 million bpd, and its OPEC quota is 2.167 million bpd, but it plans to raise output to four million bpd by 2010 and five million bpd in 2015.

It has already prequalified some 25 operator and non-operator foreign companies for the project, including Shell, ExxonMobil, BP Amoco, ENI, Total and Chevron.

The companies have formed three consortia which have submitted bids for the project. A selection is not expected before the government finalizes the deal with parliament.