Economists urge Kuwait to come clean on oil reserves

Independent economists yesterday urged Kuwait’s state-run oil industry to come clean on the extent of its proven oil reserves as oil accounts for about 80 per cent of the nation’s income. Economists made the call after speculation earlier this year that Kuwaiti reserves could actually be only half their current estimated 97 billion barrels. “It is now time for Kuwait to announce the correct figures of its oil reserves,” said Al-Shall Economic Consultants in their weekly report yesterday.
The last official figure released by Kuwait on its reserves was in May 2005 when state-owned Kuwait Oil Company (KOC) revised upwards crude oil reserves to 97.3 billion barrels, which was an increase of some 818 million barrels. In March, KOC announced newly discovered hydrocarbon finds of at least 35 trillion cubic feet of natural gas and between 10 and 13 billion barrels of light crude in northern Kuwaiti fields.

When announcing that discovery, Kuwait’s Energy Minster Sheikh Ahmed Fahd Al-Sabah, estimated that the find would likely increase Kuwaiti oil reserves by almost 10 per cent over the 97.3 billion barrel figure. However, last January the US-based energy publication Petroleum Intelligence Weekly (PIW) reported that according to a leaked KOC memo, which it had obtained, Kuwait’s proven estimated oil reserves were actually closer to 48 billion barrels, and not 97 billion.

Kuwait Times