KUWAIT OIL UPDATE -- MARCH 22, 2003

C O N F I D E N T I A L KUWAIT 001036

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 22, 2003

REF: KUWAIT 1020 AND PREVIOUS

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


1. (C) A senior KPC official told EconChief that the Kuwait
Oil Company Firefighting team has been dispatched to Northern
Kuwait to assess the situation and prepare to assist in
fighting fires in Iraq's Rumaila field. Embassy understands
that KOC Chairman Ahmad Al-Arbeed acted on instructions from
Kuwait's acting Oil Minister Sheikh Ahmed Fahed Al-Ahmad
Al-Sabah in dispatching the team to the area at 0800 this
morning. Arbeed and the Oil Minister are also traveling to
the North today to assess the situation. The same KPC
official noted that crude from the leaking and burning wells
is encroaching on the Iraq-Kuwait border.


2. (C) Following is unedited data set received from Kuwait
Petroleum Corporation afternoon of 3/22/03. Explanatory
comments follow.

Begin Report

Kuwait Petroleum Corporation
Daily Crude Production
All figures in bbls

This report covers activities from 0500 3/21/03 to 0500
3/22/00

Total Kuwait
Production 2,483,487

KOC Proper:
South East: 1,372,858
West: 356,573
North: 420,584
Total: 2,150,015

Wafra Joint Operations:
R/B to KOC 134,337
R/B to KNPC 18,000
R/B to SAT 41
R/B total 152,378
Eocene 36,094

KGOC:
Khafji 125,000
Hout 20,000

KEC Receipt 2,274,058 (API 30.7, Salt PTB 28.0)
KEC Stock 4,588,613
KEC Ullage 9,605,118

(End Report)

3.(C) Explanatory Comments:

Wafra Joint Operations refer to onshore concessions in
Saudi-Kuwait divided zone operated by Saudi Arabian Texaco
(SAT). R/B refers to the two producing reservoirs -- Ratawi
and Burgan.

KOC is Kuwait Oil Company
KNPC is Kuwait National Petroleum Corporation

KGOC is the Kuwaiti successor to Arabian Oil Company (AOC),
which previously operated a concession in the offshore
portions of the Saudi-Kuwait divided zone -- AOC still
operates the fields under a service agreement.

KEC refers to Kuwait Export Crude, the country's export
blend. Salt PTB refers to pounds of salt per thousand
barrels of crude oil.
JONES