The move is part of a plan to increase crude production in the Middle Eastern nation from 450,000 to 900,000 bpd.
In an interview with the AFP news service Kuwaiti economist Hajjaj Boukhdour said, “The appointment of Arbeed is a clear sign that the government is determined to accelerate the implementation of the project, which has been stalled for mainly political reasons.”
“Arbeed has been handling the project for the past three years as chairman of KOC, which is responsible for exploration and production, [and] he is also close to Islamists who have been opposed to the investment,” added the economist.
Opposition Islamist MP Nasser Al-Sane has praised the appointment but said parliament could still reject Project Kuwait on the grounds it violates the constitution. In Kuwait, no investment in natural resources is allowed without a law.
According to Nasser, “The government wants to implement the project on the basis of technical service contracts which could be done without a law. This means they want to do the project outside the supervision of parliament. I don’t think that any MP would agree to this. This is a very serious development and such contracts are in breach of the constitution.”
Still, some 25 operators and non-operator firms have already prequalified and the list includes the likes of giants Shell, ExxonMobil, BP Amoco, ENI, TotalFinaElf and Chevron. All 25 have grouped into three separate consortia which have al submitted their bids. Selection will only be done if the government can pass the Parliament hurdle.
