Kuwait says oil cuts could exceed OPEC commitment

Kuwait’s oil output cuts could reach between 146,000 and 148,000 barrels per day, which is more than the reduction to which the OPEC member committed itself under last month’s global deal among producers, its oil minister told Sky News Arabia.

“We used this opportunity to do maintenance at some wells, whether they were at Burgan field or the northern fields,” Essam al-Marzouq said in a programme broadcast on Sunday.

“Our part of the cut is 133,000. Today I was told that we dropped by 6,000 more, and we might drop to 146,000 to 148,000.”

Marzouq said last week that Kuwait had reduced its oil output by more than its commitment, but at that time did not give details. Kuwait agreed to cut 133,000 bpd.

Based on statements by oil producing nations so far, there has been more than 60 per cent compliance with the production cuts specified by the deal, Marzouq said last week. Some countries may have complied but not announced that yet.

Marzouq told Sky News Arabia that Kuwait’s oil investment strategy had not been changed by falling oil prices.

“We have a plan until 2020 to spend around $120bn, and this has not changed because we think the fall (of oil prices) was short-term, and these were long-term investments and will have big revenues for the economy.”

Marzouq said he hoped oil prices would stay between $55 and $60 a barrel or move even higher if market fundamentals helped.

On the privatisation of Kuwait’s oil sector, Marzouq said there were some activities which could not be privatised such as exploration and production, but areas related to oil services could be privatised and Kuwait had a plan to do that in the coming two to three years.

Also read: OPEC chief confident about commitment for output cut deal