Economía 15-07-2017

Kuwait to invest $79 billion to expand oil capacity

Kuwaiti state-owned Kuwait Oil Company is planning to invest at least 24 billion dinars ($79 billion) over the next five years as part of its plan to boost its capacity to 4 million barrels per day, from current 3.1 mbd, a Kuwaiti newspaper reported.

The firm, which is one of the world’s largest crude exporters awarded contracts worth nearly 7.7 billion dinars ($25.3 billion) between 2014 and 2016. The goal is to expand the company’s production capacity.

In 2014, it awarded contracts worth $8.25 billion, which rose to $10.9 billion in 2015, according to newspaper Al-Seyassah, quoting figures by Kuwait’s Central Tenders Committee.

The contracts signed in 2016 were well below the amounts auctioned during the two prior years, with $1.9 billion, the report states. "There was a decline of around 42.4 percent in the value of contracts signed in 2016, compared with 2015," it said.

Most of the contracts were awarded to foreign companies and they covered oil exploration, drilling, hydrocarbon support services and other fields, the report said, adding that many of those contracts would be completed in the next years.

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