The Kuwait Petroleum Corporation has slashed approximately 876.8 million dinars, or 26.1 percent from the planned 3.356 billion budgets included in the five-year plans for 2019/2020 and 2022-2023.
Oil sources told Al-Rai spending cuts on projects is linked to several factors, most notably the postponement and cancellation of parts of the scope of work of implementing some projects with the aim of rationalizing capital expenditures.
The sources added the decline is also due to the suspension of some projects which need to be re-evaluated in light of the outbreak of the Covid-19 pandemic and the closure of international companies which affected the supply of necessary materials and customs clearance, in addition to the late response from suppliers and the delay and difficulty in obtaining the permits to bring in the labor required to implement projects.
The sources pointed out that one of the reasons for the closure of drilling rigs is due to the non availability of manpower and the poor performance of some contractors, as well as the length of the documentary cycle and the requests of the relevant committees to obtain the required approvals, although the KPC and its subsidiaries had spared no efforts to complete strategic projects.
