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Kuwait Seeks Probe into Steep Rise in Oil Production Costs - ASHARQ AL-AWSAT English Archive
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KUWAIT CITY (AFP) – A parliamentary committee has asked Kuwait’s Audit Bureau to investigate why the cost of oil production has tripled over the past six fiscal years, the head of the committee said Saturday.

“We have asked the bureau to prepare a report on the causes of the steep rise of the production cost and elements included in calculating the cost,” MP Adnan Abdulsamad told AFP.

Al-Shall Economic Consultants said in a report published Saturday that the production cost has increased from 1.4 dollars a barrel in 2001 to 4.42 dollars a barrel in 2007, growing by 18 percent annually on average.

The report is based on official statistics.

Al-Shall attributed the rise to one of three possible reasons: that Kuwaiti oilfields have become too old thus making it difficult to control production costs, that additional unnecessary expenses are included in cost, or that the cost is being deliberately altered.

OPEC member Kuwait is pumping around 2.4 million barrels per day, and a three dollar increase in the production cost of each barrel means additional expenses to the tune of 2.6 billion dollars annually.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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