Approximately $25.4 Billion Lost Due To Stoppage Of Work In ‘divided Zones

As a result of stopping production in the joint operations areas in Khafji and Wafra, from 2014 and 2015 until production resumed in 2020, the Kuwait Treasury lost approximately $25.474 billion.

Sources told Al-Rai the non-production losses during the ‘pause’ in the divided zone was $21.585 billion, including $13.21 billion in the joint operations area in Khafji, and 8.375 billion in the joint operations area in ‘Al-Wafra’.

The sources added the total losses of operating expenses was $3.888 billion, of which $1.649 billion were in the Wafra joint operations area, noting that the costs of maintaining wells and facilities in Wafra and Khafji until the date of resuming production was about 85.65 million, of which 33.34 million were in the joint operations area in Wafra.

The sources said the average cost of producing a barrel of crude oil rose during the fiscal 2020 to 12.201 dinars compared to previous years before production was stopped in the two joint operations areas, due to low production rates, noting that the average cost of production per barrel rose last year by 235 percent compared to 182% 2013, and 116 percent to 2014.

The sources attributed the decline in production in the joint operations area during 2020 to the effects of the Corona virus, indicating that the actual production of the joint operations area in Wafra represents part of the production of light crude due to the shortage of manpower and maintenance of platforms, and the start of light crude oil production in the mid of 2020 and then gradual increase in production by operating more wells according to the set plan, in accordance with the strategic plans and established production quotas according to the agreement signed between partners

 

SOURCE : TIMESKUWAIT

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