Identifier
Created
Classification
Origin
07KUWAIT1007
2007-06-27 13:53:00
CONFIDENTIAL//NOFORN
Embassy Kuwait
Cable title:
KUWAIT CABINET RENEWS CONTRACT FOR OIF FUEL AT
how-toVZCZCXRO7320 PP RUEHBC RUEHDE RUEHIHL RUEHKUK DE RUEHKU #1007 1781353 ZNY CCCCC ZZH P 271353Z JUN 07 FM AMEMBASSY KUWAIT TO RUEHC/SECSTATE WASHDC PRIORITY 9472 INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY RHWSMRC/USCINCCENT MACDILL AFB FL PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY
C O N F I D E N T I A L KUWAIT 001007
SIPDIS
NOFORN
SIPDIS
STATE FOR NEA/ARP
E.O. 12958: DECL: 06/26/2022
TAGS: EPET PREL ECON MOPS KU IZ
SUBJECT: KUWAIT CABINET RENEWS CONTRACT FOR OIF FUEL AT
DISCOUNTED PRICE
REF: 06 KUWAIT 970
Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d).
C O N F I D E N T I A L KUWAIT 001007
SIPDIS
NOFORN
SIPDIS
STATE FOR NEA/ARP
E.O. 12958: DECL: 06/26/2022
TAGS: EPET PREL ECON MOPS KU IZ
SUBJECT: KUWAIT CABINET RENEWS CONTRACT FOR OIF FUEL AT
DISCOUNTED PRICE
REF: 06 KUWAIT 970
Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d).
1. (C/NF) Foreign Minister Shaykh Dr. Mohammed Al-Sabah
informed the Ambassador on June 26 that the Kuwaiti Cabinet
had agreed on June 24 to renew for one year an existing
agreement with the USG to provide concessionally-priced fuel
for Operation Iraqi Freedom (OIF).
2. (C/NF) This agreement, whose terms we re-state for the
record, provides for one million gallons per day of fuel for
OIF at a discounted price of 39 USD per barrel (93
cents/gallon). This equates to the 36 USD crude oil
reference price used in GOK budget projections plus a 3 USD
refinery fee. (Note: the current market price of Kuwaiti
Export Crude is about 63 USD per barrel.) Presumably, the
one-year renewal means through March 31, 2008, the end of
Kuwait's fiscal year. The previous agreement was set to
expire on March 31, 2007, but Kuwait Petroleum Corporation
has continued to provide fuel at the discounted price pending
renewal of the agreement.
********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s
Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
LeBaron
SIPDIS
NOFORN
SIPDIS
STATE FOR NEA/ARP
E.O. 12958: DECL: 06/26/2022
TAGS: EPET PREL ECON MOPS KU IZ
SUBJECT: KUWAIT CABINET RENEWS CONTRACT FOR OIF FUEL AT
DISCOUNTED PRICE
REF: 06 KUWAIT 970
Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d).
1. (C/NF) Foreign Minister Shaykh Dr. Mohammed Al-Sabah
informed the Ambassador on June 26 that the Kuwaiti Cabinet
had agreed on June 24 to renew for one year an existing
agreement with the USG to provide concessionally-priced fuel
for Operation Iraqi Freedom (OIF).
2. (C/NF) This agreement, whose terms we re-state for the
record, provides for one million gallons per day of fuel for
OIF at a discounted price of 39 USD per barrel (93
cents/gallon). This equates to the 36 USD crude oil
reference price used in GOK budget projections plus a 3 USD
refinery fee. (Note: the current market price of Kuwaiti
Export Crude is about 63 USD per barrel.) Presumably, the
one-year renewal means through March 31, 2008, the end of
Kuwait's fiscal year. The previous agreement was set to
expire on March 31, 2007, but Kuwait Petroleum Corporation
has continued to provide fuel at the discounted price pending
renewal of the agreement.
********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s
Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
LeBaron