MEOG: KPC considers project delays to plug deficit

Kuwait Petroleum Corp. (KPC) is exploring strategic measures to address a significant deficit in its capital spending during the five-year plan concluding in 2027, according to the Arabic daily Alanba.

The anticipated deficit is around KWD14bn ($46.2bn), stemming from increased spending on various projects and operations. KPC is diligently working on a five-point initiative, aiming to reduce the shortfall in capital expenditure by its affiliated companies to KWD2.8bn ($9.24bn).

“The documents showed that KPC has devised a strategy to reduce that deficit through a 5-point initiative to be executed during the development plan,” stated the report.

The strategic plan includes project delays or cancellations to generate savings totalling KWD4.36bn ($14.38bn) and retaining profits of approximately KWD3.7bn ($12.2bn). Additional measures involve borrowing KWD1.5bn ($4.95bn) for operational funding, leasing assets, and liquidity cuts amounting to KWD500mn ($1.65bn).

This proactive approach aligns with KPC’s commitment to financial prudence and adaptability in navigating the evolving energy landscape, showcasing resilience amid market challenges.

In December, KPC CEO Sheikh Nawaf Saud al-Sabah said that the company intended to spend up to $50bn over the next five years to support its ambitious oil production expansion plans.