Kuwait prepares oil export insurance policy ahead of Iraq flare-up

Published January 30th, 2003 - 02:00 GMT
Al Bawaba
Al Bawaba

In the event of a US-led strike on Iraq, Kuwait will ensure safe delivery of its oil by converting Kuwaiti flag vessels to US flag vessels, according to Indian Petroleum Minister Ram Naik. The minister’s statement, reported by Press Trust of India comes amid fears that war in the Gulf would disrupt crude oil exports from Kuwait, a major supplier to India. 

 

Ahead of an anticipated flare-up, the Kuwaiti government also secured a pledge from its fellow members in the Gulf Cooperation Council (GCC)—Saudi Arabia, Qatar, Oman, Bahrain and the United Arab Emirates (UAE)—to cover for a possible shortfall in Kuwaiti oil supplies to its customers in Asia, reported Associated Press

 

Kuwait’s vast oilfields, three refineries and crude export terminals for make a tempting target for an Iraqi missile attack. The OPEC producer sits atop nine percent of world’s total oil reserves. It produces some 1.8 million barrels of oil per day (bopd), accounting for four percent of international oil exports, including crude, gasoline and other refined products. 

 

The oil-rich Gulf state also formulated an emergency internal security scheme, that will see Special Forces deployed on Saturday throughout the emirate, and in particular raise security levels at sensitive oil-related sites. Upon their withdrawal from Kuwait in 1991, after a seven-month occupation, Iraqi forces sabotaged and set ablaze 700 Kuwaiti oil wells. 

 

The possibility of another attack was not ruled out by Iraq’s Deputy Prime Minister Tareq Aziz who warned Wednesday, January 29, to Canada's CBC television, that "Kuwait is a battlefield, US troops are in Kuwait and preparing themselves to attack Iraq. If there will be an attack from Kuwait, I can't say that we will not retaliate.” In response, Kuwaiti Defense Minister Shaikh Jaber Mubarak Hamad Al-Sabah stated that any Iraqi military action against the emirate would be a suicide.  

 

Kuwait is at the forefront of the military build-up against Iraq. Some 17,000 US soldiers are already deployed in a sealed off zone in Kuwait’s northwest desert area. They will soon be joined by 26,000 British troops. — (menareport.com) 

© 2003 Mena Report (www.menareport.com)