OPEC member Kuwait has decided to chop 7 billion Kuwaiti dinars ($27 billion) off the budget allocated for oil projects in the current five-year development plan due to the impact of coronavirus on market demand, a local newspaper said on Tuesday.

The government had earlier approved 27.7 billion dinars ($91.5 billion) in capital spending for its oil companies during the plan that started in 2019, the Arabic language daily Alrai said, quoting informed oil sources in the Gulf emirate.

Allocations included nearly 16.8 billion dinars ($55.5 billion) for oil exploration and production inside Kuwait, the report said.

The state-owned Kuwait Petroleum Corporation (KPC), which manages the country's hydrocarbon sector, has informed all affiliated firms it would slash the budget by more than 29 percent as instructed by the government, the paper said.

"KPC said it was compelled to trim the five-year budget as part of overall spending rationalization in Kuwait due to the difficult global economic conditions caused by the COVID-19 pandemic," it said, adding that this year's budget would be trimmed by nearly 1.3 billion dinars ($4.3 billion).

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

#Kuwait #Oilandgas #KuwaitPetroleumCorporation(KPC)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020