Kuwait oil production halved due to workers strike

Kuwait has cut oil production in half after the industry’s workers went on strike Sunday to protest wage cuts, according to a statement by Kuwait Oil Company (KOC).

KOC said production was dropped to 1.1 million barrels per day in a statement on the company’s official Twitter page, while gas production had slimmed to 620 million cubic feet. OPEC estimates that normal oil production in the Gulf state is nearly 3 million barrels per day.

Nearly 13,000 oil workers are on strike, which has caused more than KWD 20 million in losses, Al Arabiya reported.

“Conditions at Kuwait’s three refineries are stable,” Kuwait National Petroleum Co. CEO Mohammad Al-Mutairi was quoted as saying by KUNA.

The state-owned refinery, however, has slashed its output to 520,000 barrels per day instead of the usual 930,000 barrels per day as part of its contingency plan.

Sheikh Talal Al-Khalid, spokesman for the Kuwait oil sector, shrugged off the impact of the strike saying that production was “on the rise” and the country had enough petroleum product reserves to meet demand for at least the next 25 days.

The strike stems from government plans to cut benefits and wages for public sector employees as the oil-dependent state faces a $40 billion budget deficit.

Write to Matthew Watson at matthew.w@argaamplus.com