After the increase in oil production and the rise in the price of a barrel, estimated in the new budget, the Parliamentary Budget and Final Account Committee estimated oil revenues for the 2022/2023 fiscal year, at about 24 billion dinars, an increase of 50% over the estimate in the previous budget.
Following the committee’s meeting with the Kuwait Petroleum Corporation and its subsidiaries to discuss the budget, the head of the committee, MP Adnan Abdul-Samad, stated that the expenditures were estimated at about 23.1 billion dinars, an increase of 50% from the previous estimate. Because it is linked to the increase in oil quantities and the price of a barrel that the corporation buys from the state, explaining that the corporation’s estimated business results amounted to about 823 million dinars as a net profit, reports a local Arabic daily.
Abdul Samad stated that the committee stressed the need to adjust the estimates in order to be close to reality so that the budget does not lose its main role as a control and measurement tool, noting that the institution stressed the importance of the matter and revealed its quest during the last financial years towards reducing the deviations gap, as it showed its orientation with the Ministry of Finance towards adjusting the price of the barrel estimated in the new budget to reach $80 instead of 65, which contributes to reducing that gap.
He added that the committee discussed the financial situation of the institution, and it was found that the results of its actual work during the last ten years decreased by 94% to reach in 2020/2021 about 95 million dinars, in addition to the decline in operating profits for the same period by 131% to reach in 2020/2021 about 228 million dinars. Operational losses: “Were it not for non-operating profits, the Corporation would have recorded losses during that year mentioned.”
He said that the committee stressed the need to control the continuous growth in the cost of the barrel price recovered from the state’s general budget for its growth over the past years to reach, according to the budget data of the new fiscal year, 2.849 dinars, adding that “the Corporation saw the necessity of the matter and indicated its endeavor to achieve it through the formation of committees concerned with legalizing the expenditures of the oil sector. ».
With regard to the earthquake that hit the country last week, Abdul Samad quoted representatives of the oil sector as confirming that drilling and crude oil production operations are not responsible, and the KPC denied using the hydraulic drilling method, while stating that this method also does not cause earthquakes, and is used for shale oil in the United States and has never caused any earthquakes.
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