Oil price slump will not hit Kuwait development plans - minister

Oil minister Dr Ali Al-Omair says healthcare, education, infrastructure projects will go ahead as planned
Oil price slump will not hit Kuwait development plans - minister
(AFP/Getty Images)
By Andy Sambidge
Sat 06 Dec 2014 09:03 AM

The drop in oil prices will not impact on the country's developmental projects, according to oil minister Dr Ali Al-Omair.

"Our major projects meet the interest of citizens, including services of health care, and education and infrastructure will not be affected by the decline in oil prices," Al-Omair said in comments published by news agency KUNA.

Kuwait has one of the strongest fiscal positions among the Gulf oil exporters; it needs a crude oil price of just $54 per barrel for its state budget to break even, according to the International Monetary Fund.

He made the comments in a reply to a question by MPs at a complementary session on a law regarding the state's budget 2014/2015.

"We have not so far witnessed a budget deficit, but it may appear in the future if the oil prices continue falling," he said.

The minister added: "Kuwait will not take a single decision or harm its interests through cutting its oil production."

He said that the benefits of the decision taken by OPEC regarding maintaining oil production levels will emerge in the future.

"Kuwait has a single source, so we should diversify our income sources and address any deficit that may appear in the future. We should deal with the reality professionally, notably oil production," he told MPs.

Kuwait produces about 2.7 million barrels per day, according to recent statistics.

Last month, Kuwait's cabinet called for practical steps to address the slide in oil prices at a special session convened to examine weakening energy markets.

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