Kuwait acting oil minister says $50-60 pb rational price for oil – KOC’s output capacity to hit 3.1 mln bpd by end of 2016: Jaafar

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KUWAIT CITY, Oct 18, (KUNA): Deputy Prime Minister, Minister of Finance and Acting Minister of Oil Anas Al-Saleh said Monday the projections that the oil prices will range between $50 and 60 pb in the coming 15 months are logical and acceptable.

“Unless there are new developments in the major oil producing countries, this scenario will be most likely,” the minister told reporters.

Al-Saleh made the comments after inaugurating Ahmad Al-Jaber Oil and Gas Exhibition, being organized by Kuwait Oil Co (KOC) in Al-Ahmadi Governorate.

The event gathered CEO of Kuwait Petroleum Corporation (KPC) Nizar Al-Adsani and KOC’s CEO Jamal Jaafar as well as other leaders of the oil sector.

“The outcomes of the recent meeting of representatives of the major oil producers in Algeria have had positive impacts on the oil prices and sent upbeat message to the oil producers even the non-OPEC ones,” he said, noting that the technical committee will convene before the coming OPEC meeting.

Al-Saleh recalled that investments in the oil sector declined by 25 percent in 2015 and continued to go down in 2016 and 2017.

“The cancellation of previously-allocated investments helps offset excessive supply against demand, thus ratcheting up the prices and serving the interests of producers and consumers,” he explained.

On the oil and gas exhibition, the minister said: “I had the honor of being invited to opened the exhibition named after the late Sheikh Ahmad Al-Jaber,” the 10th Amir of Kuwait who ruled between March 23, 1921, and Jan 29, 1950.

“The first such exhibition was held in 1956 in the early years of oil discoveries, so it has a historical symbolism,” he pointed out.

He expressed satisfaction with his tour of the exhibition, saying it provides visitors with valuable information on the history and significance of oil, the main source of income of Kuwait.

On his part, KOC’s CEO Jamal Jaafar said the output capacity of his company tops 3.075 million bpd.

“The figure is expected to hit 3.1 million bpd by the end of 2016 and 3.150 million by March, 2017,” he said, noting that the company pursues the implementation of its technical projects to reach the set targets of production.

KOC is finalizing Al-Ahmadi Hospital – which will go operational in January, 2017, the ‘Taamir’ (construction) project – to open in next July, and new computer center – to open by the end of 2017,” Jaafar added.

Regarding the current exhibition, he said it covers an area of 60,000 sq. m. and costs up to KD 18.6 million.

“KOC worked with the Ministry of Education to make this exhibition a scientific platform and a source of knowledge for students and researchers interested in the oil industry,” he went on.

He added that the exhibition serves Kuwait’s quest to realize the eighth target of the strategy for 2030 pertaining to the enhancement of the corporates’ society-oriented contributions.

KOC is a basic partner in national development and the country’s noble efforts to meet the aspirations of the people, he added.

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