The Kuwaiti government has stepped up efforts to sway the National Assembly to pass a law allowing foreign involvement in the emirate’s nationalized oil industry. Once approved, the government could move forward with its seven billion dollar "Project Kuwait", which aims to boost crude output by opening oilfields to international firms.
The Kuwaiti oil ministry is planning to approach several foreign companies to form a consortium that would drill development wells and rework existing wells in three northern oilfields—Abdali, Ratqa and Rawdatain—under 20-year operator service agreements (OSAs). The exploration of new offshore sites is also considered under the framework of the project.
Hoping the legal process would be finalized by July 2003, Kuwait’s oil ministry expects to select by the following February up to five international companies to form the consortium. According to an AP report, the ministry has listed American firms ChevronTexaco and ExxonMobil as possible partners, as well as British Petroleum PLC, the Netherlands’ Royal/Dutch Shell Group, the French TotalFinaElf, Russian Sibneft and Malaysia's Petronas.
In a bid to allay parliament members’ fears of surrendering national sovereignty to foreigners, Kuwaiti officials have repeatedly stressed that the hydrocarbons liberalization scheme does not mean that international firms would gain ownership rights to the nation’s natural resources but would rather charge fees for their oil production services.
With 96.5 billion barrels in proven reserves, Kuwait sits atop more than 10 percent of the world’s estimated oil reserves. Kuwait, the world's fourth largest oil producer, pumps an average 1.8 million barrels a day. The Supreme Petroleum Council governs the oil industry, nationalized in 1974. The Kuwait Petroleum Corporation (KPC) responsible for all oil exploration and production in Kuwait. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
