Kuwait Petroleum Corporation Can’t Pay Government Dividend

Kuwait Petroleum Corporation, a state-owned enterprise, has announced a 14 Kuwaiti dinar or US $45.7 billion budget shortfall for its five year spending plan. Borrowing is expected to fill the hole. KPC Chairman and oil minister Saad Al Barrak said no dividends will be going to the state for at least 5 years. He called the cancellation of the state’s income “inevitable.”

He said: “Only keeping dividends will not be enough to cover the expected deficit of about 14 billion Kuwaiti dinars, so the corporation will also borrow and implement some initiatives.” Capex will be reduced by 22 billion dinars and more than 4 billion dinars will be saved through cancelling or delaying projects.