KUWAIT OIL UPDATE -- MARCH 28, 2003

C O N F I D E N T I A L KUWAIT 001119 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 X5, X6 TAGS: EPET KU SUBJECT: KUWAIT OIL UPDATE -- MARCH 28, 2003 REF: KUWAIT 1112 AND PREVIOUS Classified By: DCM Frank C. Urbancic for reasons 1.5. (B) and (D) ¶1. (C) Embassy notes that that KOC reported production from its northern fields has risen 7.1% from 400,265 barrels on March 26 to 428,689 barrels on March 28. This increase is expected to continue as KOC officials open more shut-in well heads in the Ratqa and, eventually, the Abdali fields. However, it is unclear whether and to what extent production in other areas of Kuwait may be reduced as northern output rises. ¶2. (C) Following is unedited data set received from Kuwait Petroleum Corporation afternoon of 3/28/03. Explanatory comments follow at para 3. Begin Report Kuwait Petroleum Corporation Daily Crude Production All figures in bbls This report covers activities from 0500 3/27/03 to 0500 3/28/00 Total Kuwait Production 2,478,950 KOC Proper: South East: 1,385,021 West: 361,084 North: 428,689 Total: 2,174,794 Wafra Joint Operations: R/B to KOC 142,069 R/B to KNPC 0 R/B to SAT 0 R/B total 142,069 Eocene 27,087 KGOC: Khafji 116,000 Hout 19,000 KEC Receipt 2,294,043 (API 30.7, Salt PTB 16.0) KEC Stock 6,662,118 KEC Ullage 7,531,613 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