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Tuesday , January 31 2023

KPC decides to ‘increase’ operating costs by 2.53% in 2022/2023 budget

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KUWAIT CITY, Oct 26: The Kuwait Petroleum Corporation has decided to increase operating expenses in the 2022/2023 budget by 2.53% to reach 4.3 billion dinars, reports Al-Anba daily. Despite the KPC’s reliance on the fact that salaries and benefits during the current fiscal year have been reduced by 1.84%, or the equivalent of 32.3 million dinars, from the level of 1.76 billion dinars to 1.72 billion dinars, the clause of contracts, materials and utilities has witnessed a remarkable increase during the current fiscal year. KPC shows that the value of contracts implemented by oil companies during the current fiscal is more than one billion dinars, as for the materials used by the companies, the Corporation allocated 250 million dinars, and as for the facilities and their maintenance, 111.7 million dinars was allocated, and 210 million were allocated as general expenses and KD 7.5 million as unproductive drilling expenses.

The Petroleum Corporation recovered 2.5 billion dinars from the state as reimbursed expenses, bringing the net operating expenses to 1.74 billion dinars. KPC says that 59% of the total operating expenses will be recovered by the Corporation directly from oil revenues in the budget of ministries and government departments. “Petroleum” allocated in the current fiscal year’s budget 81 million dinars, a decrease of 67% from what was approved in the previous fiscal year, amounting to 246.2 million dinars.

The total expenditures of KPC and its subsidiaries were estimated at 29.3 billion dinars in the current fiscal year 2022/2023 budget, an increase of 83% over what was approved in the previous fiscal year’s budget. The KPC clarified that its revenues and that of its subsidiaries during the current fiscal was about 29.2 billion dinars, come mostly from sales of crude oil and petroleum products by 89%, as sales of crude oil was 14.4 billion dinars, and 11.5 billion dinars from product sales. As for gas and liquefied gases, its revenues were about 2.6 billion dinars, about 100 million dinars from petrochemical products, and 600 million dinars from other revenues.

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