‘Hike oil production for Kuwait to benefit from global soaring price’

KUWAIT CITY: Minister of Education, Higher Education and Finance Dr Nayef Al-Hajraf has asked the Ministry of Oil to increase oil production from 2.220 million to 2.750 million barrels per day for Kuwait to benefit from the soaring price of oil in the global market.

According to a reliable source from the government, the minister believes the country should take advantage of the rising price of oil to increase its revenues and financial surplus. The minister pointed out that if the current standard price of Kuwaiti oil is $60 per barrel, the government earns about $45 per day because the global price is more than $100 per barrel, the source added.

The source said Al-Hajraf has stressed the need to increase production of oil for the country to have more funds for the implementation of its development projects. The minister also highlighted the fact that half of the KD 9 billion budget of the State has been allocated for salaries, including KD 650 million for the payment of salary increment and bonuses approved recently for the public sector employees, the source disclosed.

Asked about the rationale behind Al-Hajraf’s request, the source explained the minister thinks the revenues of the State will increase by about one and a half billion Kuwaiti dinars monthly if oil production is increased by 480,000 barrels per month.

In another development, the source unveiled the plan of the government to privatize most facilities in the Ministry of Communications to make a profit of KD 200 million in the next seven years — from 2013 to 2020, in addition to saving KD 500 million for the maintenance and infrastructure works.

The source said the government is also planning to establish a media city and 60 percent of the shares will be granted to the citizens while the remaining 40 percent will be for the government.

He added the media city will include 20 channels and 17 local newspapers in the country.

By Abubakar A. Ibrahim and Ben Arfaj Al-Mutairi