OAPEC expects Kuwait oil output capacity to rise to 2.5 mln bpd

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OAPEC expects Kuwait oil output capacity to rise to 2.5 mln bpd

Bridge News

Kuwait--Nov. 26

Kuwait's oil output capacity is expected to rise by about 200,000 bpd to 2.5 million bpd after the building of two crude oil gathering centers, said a report by the Organization of Arab Petroleum Exporting Countries OAPEC. Officials have said the gathering-centers project is expected to be concluded by March. Kuwait's current output capacity is estimated at about 2.27 million bpd.

OAPEC said in a report that the nominal capacity of Kuwait's gathering centers would become 3.360 million bpd upon the completion of the project. OAPEC member states include seven key OPEC member states--Saudi Arabia, the United Arab Emirates, Kuwait, Iraq, Qatar, Algeria and Libya--in addition to independent producing nations Egypt, Syria and Bahrain.

A Kuwait oil official has said that gathering centers 27 and 28 in Umm Qudair and al-Manageesh oilfields that are being built under a mid 1990s contract are expected to be commissioned by March. The capacity increase is crucial for the Gulf Arab state, whose actual crude oil production has neared the peak of its output capacity. Kuwait's Oil Minister Sheikh Saud Nasser al-Sabah has blamed the delay in the completion of the project on the contractor.

Kuwait wants to increase its oil production capacity to 3.0 million barrels per day in coming years. GCs are crude oil storage stations that are linked to oil wells, ports, refineries and other facilities through a pipeline network.

Kuwait, which has about a 10th of the world's proven oil reserves, is anticipating a day when supply from producers with smaller reserves shrinks, increasing the market share of exporters such as Saudi Arabia, Kuwait, Iran and the United Arab Emirates, whose reserves are expected to last for decades

http://www.petroleumworld.com/story1503.htm

-- Martin Thompson (mthom1927@aol.com), November 26, 2000


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