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Saturday , March 25 2023

Increase in oil sector’s claims to MEW up by KD 3b

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KUWAIT CITY, Feb 4: The oil sector’s financial claims to the Ministry of Electricity, Water and Renewable Energy has risen to about KD 3 billion, which increases the funding pressures on Kuwait Petroleum Corporation (KPC) to spend on its projects, reports Al-Rai daily quoting informed sources. They explained that the KPC suspended the approval of the implementation of the ministry’s projects until the provision of electricity as a guarantee from the Ministry of Finance to finance these projects.

It is referring in this aspect to the suspension of the approval for the implementation of a power station project in Nuwaiseeb area by the Kuwait Oil Company (KOC) until assurance is obtained from the Ministry of Finance to finance the project. There is talk about dropping the oil sector’s claims amounting to KD 3 billion from the profits due to the state from the oil sector.

However, such an option does not serve or achieve the strategy of immediate oil projects with billions in revenues, especially the productive KOC projects, as it delays the benefit of the state’s general budget from the proceeds of these projects. As of March 31, 2022, KPC’s claims against the Ministry of Electricity and Water were about KD 8.897 million for a period more than 360 days and are related to previous years. In addition, there were financial claims worth KD 1.149 billion that were more than 30 days old and less than 360 days old.

The sources attributed the failure to collect these debts to the lack of budget covering the outstanding bills for the previous fiscal year, in addition to a difference in quantities between the readings of the ministry and some of the corporation’s subsidiaries, adding that, “There are non-agreed amounts worth about KD 10.392 million.”

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