Kuwait's parliament has approved the 2001/2002 budget for Kuwait Petroleum Corp. (KPC) and its subsidiaries, projecting a profit of $2 billion, newspapers reported Tuesday, June 19.
Revenues are projected at $15.28 billion, including $7.6 billion from the sale of crude oil and $5.4 billion from the sale of products, and spending is estimated at $13.28 billion.
Forty-two MPs voted for the budget in Monday's session, one against and five abstained.
Oil prices were calculated on the basis of $15 a barrel and Kuwait's production quota at just under two million barrels per day.
During the discussion, MPs criticized KPC for holding some 12 billion dollars of surplus, saying the conglomerate's role should be restricted to the oil sector. KPC invests the surplus in international markets and according to latest reports 45 percent of its profits come from returns on investments.
Deputy chairman Nader Sultan has argued that the surplus will be used to finance KPC projects valued at more than $15 billion over the next five years. Oil Minister Adel al-Sebeih said KPC's profits for 2000/2001, shortened to only nine months, reached some $3 billion compared to a projected profit of $1.27 billion.
KPC and its subsidiaries posted a net profit of $2.29 billion in the 1999/2000 fiscal year following the surge in crude oil prices.
The corporation was established two decades ago to oversee the whole of Kuwait's oil sector through a number of affiliates inside and outside the emirate. — (AFP)
© Agence France Presse
© 2001 Mena Report (www.menareport.com)