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Identifier
Created
Classification
Origin
03KUWAIT1010
2003-03-20 14:31:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

KUWAIT OIL UPDATE -- MARCH 20, 2003

Tags:   EPET  KU 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
						C O N F I D E N T I A L KUWAIT 001010 

SIPDIS

STATE FOR TASK FORCE 1 - EB ACTION OFFICER
STATE ALSO FOR EB/ESC AND NEA/ARP
TREASURY FOR OASIA
USDOC FOR 4520/MAC/AME
DOE FOR IE - L. COBURN AND C. WASHINGTON

E.O. 12958: DECL: X5, X6
TAGS: EPET KU
SUBJECT: KUWAIT OIL UPDATE -- MARCH 20, 2003

REF: KUWAIT 1002 AND PREVIOUS

Classified By: DCM Frank C. Urbancic for reasons 1.5. (B) and (D)

C O N F I D E N T I A L KUWAIT 001010

SIPDIS

STATE FOR TASK FORCE 1 - EB ACTION OFFICER
STATE ALSO FOR EB/ESC AND NEA/ARP
TREASURY FOR OASIA
USDOC FOR 4520/MAC/AME
DOE FOR IE - L. COBURN AND C. WASHINGTON

E.O. 12958: DECL: X5, X6
TAGS: EPET KU
SUBJECT: KUWAIT OIL UPDATE -- MARCH 20, 2003

REF: KUWAIT 1002 AND PREVIOUS

Classified By: DCM Frank C. Urbancic for reasons 1.5. (B) and (D)


1. (C) A full breakdown of KPC production was not available
today, but a senior KPC official reported total output was
2.45 million barrels for the period 0500 3/19/03 to 0500
3/20/03.

2.(C) Following several missile attacks aimed at Kuwait, a
senior KPC official contacted EconChief to ascertain the risk
such missile attacks posed to Kuwait's refineries. After
consulting with OMC-K officials and the Ambassador, EconChief
told the KPC official that while the refineries are
potentially within the outer range of some Iraqi missiles,
the refineries are within the coverage of Patriot batteries
that are performing admirably to this point. EconChief also
noted that Iraq appears to be targeting military targets, not
commercial or civilian targets. The KPC official appreciated
the assessment.

3.(C) KPC officials report that "three Japanese customers and
one shipping company...are not prepared to enter the Gulf in
the present circumstances." KPC expects that other firms may
follow suit, and that the move could affect loading
operations at other Northern Gulf ports such as Ras Tanura.
KPC officials intend to initiate "shuttle services" to move
crude and product to the Southern Gulf for transfer to
waiting tankers." One KOTC Tanker captain refused to operate
in the Northern Gulf, he has been replaced. KPC has the
capacity to move 100,000 to 200,000 bpd to Khor Fakkan, but
does not intend to "advertise" the fact that it is allowing
some customers to load there, for fear all will demand the
same service.


4. (U) Dow Jones and Reuters news wires reported on 3/19
comments by KPC officials that Kuwait is selling an
additional 300,000 to 350,000 barrels per day in an effort to
dampen high oil prices. Most of the oil is being sold on
term contracts to Asian buyers, but the official said spot
sales may also occur "later on, if there is a need." KPC
officials also said that KPC has no plans to stop any
operations, adding that operations would continue as normal
unless physical hostilities were directed against the
country's oil facilities. The Reuters report added that
Kuwait has plans to use its own fleet to carry crude and
product to Khor Fakkan, near Fujairah, where Kuwait has
storage facilities. (Note: Khor Fakkan is located outside the
Persian Gulf, on the Gulf of Oman. End Note.)
JONES