Kuwaiti oil refineries Al-Zour and Al-Ahmadi, along with Mina Abdullah and Duqm, which are jointly owned by Kuwait and the Sultanate of Oman, are poised for significant profits in the years 2024 and 2025.
Byline Najeh Bilal
This optimistic outlook extends to refineries in other Gulf countries as well. These forecasts are grounded in several key considerations, among which the escalating conflict in the Russian-Ukrainian war holds prominence. According to Oil sources whom spoke with Arab Times, there has been a notable shift in the conflict dynamics, with Russian oil refineries becoming targets.
According to reports, several Russian refineries were destroyed this month, raising concerns about disruptions in Russian oil production. The sources claim that the United States is leveraging Ukraine to target Russian oil installations, a move that could potentially lead to the cessation of Russian refinery operations.
This development, if true, marks a significant transformation in the ongoing conflict between the United States and Russia, further complicating the geopolitical landscape. In addition to geopolitical factors, the global market’s reliance on Kuwaiti and Gulf refineries is underscored by the challenges facing European and American refineries.
Many of these refineries have deferred maintenance operations for several years, leading to operational inefficiencies and compromised performance.
Extreme summer temperatures in recent years have also exacerbated these challenges, particularly impacting aging infrastructure. Furthermore, specific refineries such as the joint Milazzo refinery between Kuwait Petroleum International and the Italian company Eni, as well as the French Total Energy refinery, face profitability concerns.
Partnerships associated with these refineries are reportedly exploring options to withdraw investments due to declining profitability in recent years.
Nonetheless, despite evolving geopolitical tensions and operational challenges faced by refineries globally, Kuwaiti and Gulf refineries are poised to capitalize on emerging opportunities in the oil market, positioning themselves for robust profitability in the FY2024 and 2025.
