Govt must review estimated oil revenue, raise production
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Current production stands at 434,000 bpd less than the target
KUWAIT CITY, Sept 22: A report issued by the Committee on Budget and the Final Accounts of the National Assembly has stressed on the need for the government to review the estimated oil revenues, and work hard to raise the production capacity of crude oil, says if the current production rates remains unchanged, the new oil projects such as Zour Refinery and environmental fuel project will consume 46 percent of what the state produces to operate at full capacity, reports Al-Rai daily.
The report noted that Kuwait’s market shares may be affected, as a result of the impact of public reserve money inflows into it. The report pointed out that although the production of the joint divided zone has been suspended since 2014; its production costs of KD 313 million are fully budgeted and deducted directly from oil revenues, as expenses recovered by Kuwait Petroleum Corporation (KPC) from the state. The report added that KPC and its subsidiaries have changed their operational strategies adopted from fiscal year 2009/2010 to 2018/2019 several times, targeting crude oil production inside Kuwait by 3.5 million barrels per day until 2015 with increasing to 4 million per day in 2020 and reaching up to 4.75 million barrels per day in 2040 through Kuwait Oil and Gulf Oil companies.
Production
The report pointed out that the current production inside Kuwait is 434 thousand barrels per day less than the target of the 2015 strategy and 934 thousand barrels per day less than the target of the 2020 strategy.
On the other hand, oil sources told Al-Rai that the Kuwaiti oil revenues were affected by the need of Al-Zour refinery and environment friendly fuel projects to one million and 415 thousand barrels per day to operate at full capacity, based on the harmony of the marketing plan with the production plan in both projects.
The sources predicted that KPC will increase its revenues as a result of directing crude oil to petroleum and petrochemical products, which reflect the market trends. Meanwhile, Minister of Commerce and Industry and State Minister for Services, Khaled Al-Roudhan issued a decision to raise port security level of facilities from one to two.
Kuwait Ports Authority (KPA) told KUNA in a statement, the ministerial decree No. 448 orders a raise of security level of all port facilities in the country, both commercial or oil. The decision stresses to take necessary measures to protect ships and port facilities, it noted. In addition, it also comes in order to preserve the security of the country and its territory as well as ports, due to conditions experienced by the region.
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