Kuwait Mulls Further Oil Spending Cuts

State firm Kuwait Petroleum Corporation (KPC) is eyeing another downstream disposal as it looks to cut costs further in the face of the country’s soaring budget deficit. KPC CEO Nizar al-‘Adasani says that an ad hoc committee has been tasked with finding ways to cut spending.

The announcement comes as refining subsidiary Kuwait National Petroleum Company (KNPC) is developing a 615,000 b/d refinery at Al-Zour and upgrading two existing refineries through a Clean Fuels Project (CFP) – at a combined cost of $28.6bn (MEES, 5 February).

Impetus for the potential sell-off comes from Kuwait’s budget for the 2016-17 fiscal year, which begins on 1 April. Because of low international crude oil prices, Kuwait’s finance ministry predicts that revenues will plunge 41% to KD7.4bn ($24.4bn) year-on-year (MEES, 5 February). (CONTINUED - 393 WORDS)