The budget of the Kuwait Petroleum Corporation may witness a change during the new fiscal year (2023-2024), after the decline in the price of a Kuwaiti oil barrel in the new budget.
Sources said that the budget of the Kuwait Petroleum Corporation and its subsidiaries for the next fiscal year, which is scheduled to begin on April 1 (2023) and end on March 31 (2024), set oil prices at $70 per barrel, other than the estimated price in the current year. The current fiscal year is at $80, according to the Kuwaiti newspaper Al-Anbaa.
According to the sources, the decrease in the price of a Kuwaiti oil barrel in the new budget reduces revenues and expenditures, with a fiscal deficit amounting to more than 5 billion dinars ($16.36 billion), according to what was seen by the specialized energy platform.
Balancing the oil sector
The state’s general budget figures were reflected in the budget of the Kuwaiti oil sector, whose revenues declined to reach 25.8 billion dinars ($94.23 billion) during the next fiscal year (2023-2024), compared to estimated revenues for the current fiscal year at 29.2 billion dinars ($95.5 billion).
The volume of decline in KPC expenditures amounted to about 4.2 billion dinars, with total expenditures of 24.1 billion dinars during the budget for the next fiscal year, compared to approved expenditures for the current fiscal year at 27.8 billion dinars, according to what was seen by the specialized energy platform.
According to the figures of the Corporation that manages Kuwaiti oil, which is scheduled to be implemented starting from next April, the direct variable costs of expenditures amounted to 22.1 billion dinars, a decline of more than 4 billion dinars, compared to about 26 billion dinars during the current fiscal year.
With regard to operating expenses, it witnessed an increase of about 433.1 million dinars, to reach about 4.7 billion dinars during the next fiscal year (2023-2024), compared to operating expenses amounting to 4.28 billion dinars during the current fiscal year.
(1 Kuwaiti Dinar = 3.27 USD)
Revenues of the Kuwait Petroleum Corporation
KPC’s estimated oil revenues during the next fiscal year amount to about 11 billion dinars, a significant decline from the current fiscal year, in which crude oil revenues were estimated at 14.4 billion dinars, a decrease of 3.7 billion dinars.
Kuwaiti oil derivatives witnessed a decline of about 209 million dinars, to reach 11.3 billion dinars during the next fiscal year, compared to about 11.5 billion dinars during the current fiscal year.
With regard to gas and liquefied gas revenues, they were set at about 2.1 billion dinars, a decline from the current fiscal year of 458.3 million dinars, according to information seen by the specialized energy platform.
On the other hand, the KPC budget expected an increase in the return of the investment portfolio registered under “other revenues” to 1.24 billion dinars during the next fiscal year, compared to about 553 million dinars, due to the rise in US interest rates and the improvement in the global investment climate.
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