Developing Kuwait's oil fields requires $ 8.5 billion

The Kuwaiti minister of energy, Sheikh Ahmad al-Fahd al-Sabah, said that the project of developing four oil fields in the north of Kuwait requires investments exceeding $ 8.5 billion.

The Kuwaiti minister, who in February submitted to the parliament a draft new project over the giant project, said that the investments of the project was earlier estimated at $ 7 billion, noting that foreign companies might invest up to $ 3.2 billion within 20 years.

He reaffirmed that the new project rules out Kuwaiti oil resources to be owned by foreigners. This was in an attempt to alleviate the fears of members of the parliament.

He explained that the north project is not based on a partnership, rather services contracts and foreign companies will be paid in cash, rather than getting crude oil in return. He continued that the draft law which includes 28 items states that all resources and all wealth are the property of the state.

Kuwait has approved the participation of 25 foreign companies in the project. These companies founded three main alliances proposed bids to contribute to the project. However, no decision can be taken to this effect before the government can reach an agreement with the parliament.

Sheikh Ahmad told the parliament in June 2004 that Kuwait is planning to increase its production capacities to 10 million barrels daily after 20 years.

Moreover, Kuwait's oil strategy aims at increasing its production capacity to four million barrels daily by the fall of 2010 and to five million barrels daily by the fall of 2015. Kuwait owns 10% of the world reserves of oil and its current production capacity is 2.5 million barrels daily.