Kuwait faces difficulties as Iraq rejects gas prices

Difference in gas prices, MoU to be discussed

KUWAIT CITY, Jan 15: The agreement to supply Kuwait with Iraqi gas is facing difficulties after Iraq rejected the price offered by Kuwait for its gas which took into consideration the compensation owed to it due to the invasion, reports Aljarida daily quoting sources.

They said the point of contention is the pricing of 1,000 cubic feet of gas, for which Iraq is asking $5 while Kuwait wants it for $3. The sources explained about the memorandums of understanding yet to be discussed by the authorized parties from both sides through which a breakthrough can be reached.

The agreement, which appears to be in jeopardy, stipulates the supply of 350 million cubic feet per day to Kuwait initially, reaching 500 million cubic feet per day gradually. Meanwhile, Minister of Oil and Minister of Electricity and Water Bakheet Al-Rasheedi said the Supreme Petroleum Council has approved Kuwait Petroleum International’s acquisition of 50 percent of Duqm Refinery in partnership with Oman Oil Company (OOC).

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