Page 17 - DMEA Week 14 2021

DMEA NEWS IN BRIEF DMEA

Kuwait’s sovereign funds. REFINING ordered to convene a meeting within 45
GRF, which is used to cover state deficits, days to determine compensation due to a
has been squeezed by the coronavirus-driven Burckhardt compressors proprietor of land acquired for construction
drop in oil prices and a continued stand-off of Lamu Port South Sudan Ethiopia Transport
between government and parliament on for Egypt hydrocracking Corridor (Lapsset) project.
implementing measures such as a law to allow In default, the Environment and Land
state borrowing. complex Court ordered that an injunction shall
The agreement between GRF and state- be issued upon the expiry of the 45-day
owned KPC on a new payment schedule Burckhardt Compression will supply three period restraining NLC, Lapsset Corridor
has not been signed yet but the government API 618 process gas compressors for the Development Authority and Kenya Ports
source said it would be submitted to the Assiut hydrocracking complex in Egypt. Each Authority from remaining on the parcel of
finance and oil ministries for approval. gas compressor has a frame rating of 1700 kN, land which belongs to Nightshade Properties
He was confirming a report by Kuwaiti TechnipFMC signed an engineering, Ltd.
newspaper Al-Rai, which said KPC and procurement, and construction contract with Justice James Olola, sitting in Malindi ruled
the Kuwait Investment Authority - which Assiut National Oil Processing Company that the Constitution dictates that where land
manages Kuwait’s sovereign wealth funds - for the construction of a new hydrocracking is acquired, just compensation is to be paid
reached an initial agreement to transfer the complex at the Assiut refinery in Egypt in promptly to owners whose interests in the
dividends to the public treasury within a 15- last year. The Assiut hydrocracking complex land have been determined.
year timetable. in Egypt will be one of the country’s major He further noted that it was evident that
The report said the accrued funds strategic refineries and will help to meet the respondents have been on Nightshade
amounted to about 7.75 billion dinars. growing local demand for cleaner products, Properties Ltd’s land since 2016 and by June
The source did not specify a time frame mainly EURO-V diesel. The EURO-V 2017, they were aware that its right over the
for the payment but said the final terms standard reduces atmospheric pollutants by land had been ascertained.
would not impact the financial position of the imposing stricter limits on exhaust emissions. “No explanation has been offered by any
company or its ability to honour obligations The new hydrocracking complex is an of the respondents as to why by November 30
linked to its investments. extension to the modernization program 2019 when this petition was filed, Nighshade
Kuwait has taken several steps to mitigate initiated 2015. The hydrocracking complex Properties Ltd remained uncompensated for
the depletion of the treasury’s liquid assets, will feature new process units including its property that was compulsorily acquired,”
including raising funds for the GRF through a vacuum distillation unit, a diesel noted Justice Olola.
asset swaps with Kuwait’s Future Generations hydrocracking unit, a delayed coking unit, The judge also noted that the fact that
Fund - a nest egg for when the country’s oil a distillate hydrotreating unit, a hydrogen compensation had not been paid does
runs out. production facility unit, a sulfur recovery unit, not invalidate the process of compulsory
Such steps may push back the risk of a and a sulfur solidification unit. It will also acquisition.
liquidity crunch to the third quarter this year, include interconnecting, offsites, and utilities. Nightshade Properties Ltd told the court
Bank of America said last month. GAS COMPRESSION that it is the registered proprietor of the 100
“This agreement (with KPC) will not solve hectares of the land in Mokowe, Lamu.
the problem of financing Kuwait’s budget. The It said that on December 7 2011, NLC
government still needs to reach an agreement PIPELINES through the Registrar of Titles in Mombasa
with the National Assembly on how to finance cancelled its title to the land prompting it to
the budget deficit,” the government source Lapsset works risk delay on move to court to have it quashed.
told Reuters. NLC neither participated in the case nor
REUTERS failure to pay land owner filed a response.
The National Land Commission has been BUSINESS DAILY

Week 14 08•April•2021 www. NEWSBASE .com P17