Kuwait Oil Minister Homoud Al-Rqobah expects his country's oil production to reach 1.5 million b/d at the end of the year.
That was its quota by the Organization of Petroleum Exporting Countries before the Persian Gulf crisis erupted in August 1990.
Al-Rqobah told a Vienna press conference Kuwait plans to produce an average 1.2-1.3 million b/d in the third quarter of this year, OPEC News Agency reported.
He noted that Kuwait's oil production rose from 812,000 b/d last February to about 1 million b/d at present, a volume that will be the average for the second quarter.
"Once we reach 1.5 million b/d, the production rise will stop until the country is allocated a proportional increase by the organization," he said.
Al-Rqobah said before the gulf crisis occurred Kuwait planned to boost its productive capacity to 2.5 million b/d. But how long it now will take to reach that target is hard to say.
Al-Rqobah expressed hope that production will rise to more than 1.5 million b/d next year.
In the 1960s Kuwait was producing 3.5 million b/d.
The minister predicted the price for OPEC's basket of crudes likely will reach $20/bbl in the fourth quarter of this year. Al-Rqobah believes oil prices A,ill increase "for many reasons" as a result of the latest OPEC agreement to hold the line on production (OGJ, June 1, Newsletter).
He said, "Almost everyone expected OPEC to increase the ceiling for the third quarter, but the organization is maintaining the same level for a period when demand is projected to be higher. This will be positive for the market."
Kuwait is refining about 320,000 b/d of oil, with local consumption accounting for 100,000-140,000 b/d depending on the time of year.
Al-Rqobah said the latest estimate for the cost of putting out burning oil wells, which were set afire during the gulf crisis, stands at 1.1 billion, including some reconstruction work on oil facilities. The minister pointed out that this amount is much lower than earlier estimates, which were based on the firefighting operation taking 35 years to complete.
"It was, in fact, finished in 7 months which cut down a lot on the cost," the minister said.
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