US embassy cable - 03KUWAIT918

C O N F I D E N T I A L KUWAIT 000918 
 
SIPDIS 
 
STATE 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 SITREP 3/13/03 
 
REF: KUWAIT 898 
 
Classified By: DCM Frank C. Urbancic for reasons 1.5 (B) and (D) 
 
1. (C) A Senior KPC official informed Embassy late afternoon 
of March 12 that Kuwaiti production reached 2.4 mmbd.  The 
source noted that Embassy should watch the newspapers on 3/13 
for further details. 
 
2. (U) Local press reports on March 13 quoted Nader 
Al-Sultan, CEO of Kuwait Petroleum Corporation, as saying 
that Kuwait had raised production to its maximum capacity of 
2.4 mmbd.  He denied earlier reports that oil wells had been 
shut in and said all wells and refineries would continue to 
operate in spite of hostilities.  Sultan told the Kuwait News 
Agency (KUNA) that the maximum output would be maintained for 
a brief period, but gave no specific time span.  He added 
that KPC has prepared several scenarios for war contingencies 
with the aim to maintain production, exports and strategic 
stock while protecting workers and facilities. 
 
3. (C) The press reports note the inconsistency between 
Sultan's remarks and March 4 remarks by KOC CEO Ahmed 
Al-Arbeed, who told reporters earlier that Northern oilfields 
would be closed in the event of hostilities, slashing the 
countries output by up to 700,000 bpd (Reftel).  A KPC source 
told the Embassy that Arbeed had spoken out of turn, and had 
been reprimanded for the statement. 
 
4. (SBU) NOTE: Post intends to distibute sitreps such as this 
via SIPRNet e-mail to interested readers.  To be added to the 
mailing list, send a request via SIPRNet e-mail to 
SchwartzTPKuwait@state.sgov.gov. 
JONES