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Monday , January 30 2023

Decrease seen in cash spent on KPC projects

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KUWAIT CITY, Nov 29: According to reliable sources, there is a decrease in the amount actually spent on the capital projects of the Kuwait Petroleum Corporation (KPC) that are included in the five-year plan of 2019/2020-2022/2023 by about KD 876.8 million, or 26.1 percent of the planned amount, which amounts to about 3.356 billion, reports Al-Rai daily. They explained that the amount actually spent on capital projects during the 2020/2021 fiscal year amounted to about KD 2.356 billion.

The spending on projects is linked to several factors, most notably the postponement and cancellation of parts of the scope of work for implementing some projects with the aim of rationalizing capital expenditures. The decline in expenditure is also due to the suspension of some projects with the aim of re-evaluating them in light of the COVID-19 outbreak and the closure of international outlets, which affected the supply of necessary materials and customs clearance. Other factors were the late response from suppliers, and the delay and difficulty in obtaining the necessary permits for the entry of labor required to implement projects. The sources highlighted that one of the reasons for the closure of drilling rigs is the lack of manpower and the poor performance of some contractors, as well as the length of the documentary cycle and the requests of the relevant committees to obtain the required approvals.

They stressed that KPC and its companies spare no effort to improve capital expenditure, expedite the completion of strategic projects, follow up their implementation, and overcome all obstacles and challenges. The sources said that the decline in expenditure came in accordance with the trends imposed by the global conditions that the world experienced during the last period. They indicated that the projects included in the five-year plan of KPC and its subsidiaries include not only the new and current programs and projects, but also the future capital programs that are still being studied, adding that progress is expected with them during the period of the five-year plan.

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