The oil price drop to four year lows will not affect Kuwait’s output plans or rate of production, the head of its state oil company said on Thursday.
Speaking to reporters, Hashem Hashem, chief executive of Kuwait Oil Co, said the company was continuing its long-term plans to raise production capacity.
“Our production is 2.9 million to three million barrels per day, we didn’t reduce production, we are continuing at the same current output rate,” Hashem said.
“When it comes to developing the fields and raising production capacity, we are looking at the long-term. We will not be affected by such prices.”
The company intends to spend some KD12 billion ($42 billion) on oil and gas projects over five years, he added.
His comments, when Brent crude fell to below $83 a barrel, were a further sign that Gulf OPEC producers see little effect of the price drop on their economies and are unlikely to cut output when OPEC meets in November.
Fellow OPEC member Saudi Arabia has been quietly telling market participants it is comfortable with lower oil prices, while Kuwait Oil Minister said on Sunday OPEC was unlikely to cut production to prop up prices.
Kuwait plans to raise its production capacity to four million bpd by 2020. Hashem told Reuters earlier this month that KOC was in talks with five oil majors to help boost crude production and develop some of its oilfields including Burgan, the world’s second largest.