KUWAIT OIL UPDATE -- MARCH 24, 2003

C O N F I D E N T I A L KUWAIT 001064

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: 1.6 X1, X5, X6
TAGS: EPET KU
SUBJECT: KUWAIT OIL UPDATE -- MARCH 24, 2003

REF: KUWAIT 1049 AND PREVIOUS

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


1. (C) A detailed breakdown of Kuwait's oil production is not
yet available for today, but Embassy is told output from 0500
03/23/03 to 0500 03/24/03 reached 2.42 million barrels.


2. (C) Kuwaiti firefighters apparently put out one of the
fires burning in Iraq's Rumaila oilfield today, and they are
prepared to continue the effort. Embassy is working with
officials of the Kuwait Oil Company and the U.S. Army Corps
of Engineers (USACE) to ensure the KOC team is working in as
safe and secure an environment as possible. USACE (working
under the Office of Reconstruction and Humanitarian
Assistance) will also coordinate KOC efforts with those of
U.S. contractors to combat the blazes.


3. (C) A senior KOC official said that part of the
firefighting effort is the resumption of production from the
Ratqa field (which straddles the Kuwait Iraq border to become
the Rumaila field). By increasing production, pressure in
the reservoir will drop making the fires less dangerous.
Ratqa reportedly made 15,000 barrels today and will rise to
30,000 bpd by tomorrow.
JONES