Kuwait plans $24bn spend on project development

The Kuwait Oil Company (KOC) plans to spend up to $24.31 billion in the next five years on development projects, state news agency KUNA reported on Monday.

KUNA quoted Sami al Rushaid, the state firm's chairman and managing director, as saying the funds, between $17 to $24 billion, would go to a number of development projects including early production facilities, drilling wells, pipelines, and gas booster stations.

Rushaid said the projects will also include building a hospital and buying tug boats for oil tankers.

Kuwait, the world's fourth largest oil exporter, is looking to boost oil output capacity to 4 million barrels a day (bpd) by 2020 and gas output to 4 billion cubic feet per day (cfd) by 2030.

The Gulf Arab state relies on oil exports for over 90 percent of state revenues. Its oil production capacity is 3.1 million bpd.

Last month, Rushaid said at an oil conference Kuwait would invest around $10.3 billion in upstream developments over the next five years.

KUNA quoted another oil official, Hashim al Rifai, managing director for planning at Kuwait Petroleum Corporation (KPC), as saying the parent company was seeking private sector partners in ownership and management of some oil activities.

He did not elaborate.

The oil sector is dominated by the state firms. (Reuters)