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Monday, April 30, 2012

Kuwaiti MP questions oil deal with China - Source Zawya News


Kuwaiti MP questions oil deal with China

KUWAIT CITY, Apr 30, 2012 (AFP) - A Kuwaiti opposition MP on Monday questioned what he called a "suspicious" deal to supply China's Sinopec with 300,000 barrels per day of oil for 10 years.
The deal involves "several legal, administrative and technical violations," charged MP Mubarak al-Waalan.
In a series of questions to Oil Minister Hani Hussein, the lawmaker claimed the deal, signed in November, was concluded without obtaining the mandatory prior approvals of the government legal and accounting authorities.
The deal was not also authorised by the board of directors of Kuwait Petroleum Corp. (KPC), the emirate's national oil conglomerate, as required by the law and also involved unjustified financial facilities, the MP alleged.
Waalan, a member of the opposition which has a majority in parliament, demanded a copy of the contract and asked the minister if it involves any loss to Kuwait's public funds.
He also asked Hussein, who was appointed in February, to explain the financial facilities and guarantees provided to the state-owned Chinese firm as part of the agreement.
KPC and Sinopec are involved in a separate $9-billion joint venture to build a refinery and a petrochemicals complex in China's southern Guangdong province.
France's energy giant Total has taken 40 percent of KPC's share or 20 percent of the venture.
oh/lyn/srm


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