Kuwait cuts oil project spending by 25 percent

5-year cut is due to coronavirus

  
Oil rig workers work on the ChevronTexaco drilling platform January 15, 2003 near the Saudi Arabian border, Kuwait. Image used for illustrative purposes.

Oil rig workers work on the ChevronTexaco drilling platform January 15, 2003 near the Saudi Arabian border, Kuwait. Image used for illustrative purposes.

Getty Images/Joe Raedle

OPEC member Kuwait has slashed hydrocarbon project spending by more than 25 percent for the current five-year plan because of the spread of coronavirus, a senior Kuwaiti oil official was reported on Tuesday as saying.

The reduction will affect projects in 2020 and the remaining four years of the development plan, said Hashim Al-Hashim, CEO of the Kuwait Petroleum Corporation (KPC), which manages the Gulf emirate's hydrocarbon industry.

"KPC and all its affiliated companies have taken serious steps to rationalise capital expenditure for this year and through the five-year plan," he said in a statement marking the reopening of the country's oil sector after a 3-month lockdown due to Coronavirus.

Hashim, quoted by Al-Anba and other local publications, said operational spending would also be trimmed but did not mention the size of cuts.

He said the measures were prompted by "difficult and exceptional" conditions that have depressed most economic sectors in the world, including oil and gas.

"This should motivate us to work hard to face these challenges and pursue efforts to achieve our goals," he added.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

#Kuwait #Oilandgas #KuwaitPetroleumCorporation(KPC) #Coronavirus

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