Press Release (ePRNews.com) - SINGAPORE - Aug 08, 2016 - The Kuwaiti government in its latest investment reforms is considering privatising its oil fields services sector according to a top ministry of finance official.
Kuwait is the fifth largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), an intergovernmental organization of oil exporting developing nations. The country’s review of the privatisation proposal comes as its regional neighbour, Saudi Arabia, is preparing to float 5% of its state-run oil company shares to the public in the bid to diversify the country’s economy and reduce dependence on oil.
Speaking to reporters recently at a news conference, the Finance Ministry Undersecretary, Khalifa Hamida stated that Kuwait will go ahead with the privatization and will offer a portion of its shares to the public as part of the government’s privatization program.
“This plan will also enable Gulf and foreign investors to bid for part of the offered shares in the Kuwaiti market,” said Hamida.
“This move may be line the Saudi offering of a percentage of Armaco shares. Oil prices have dropped and indicators show the slump may last five more years. These forecasts are by most financial bodies including the World Bank and the International Monetary Fund, who expect oil prices will not exceed US$50 a barrel, so we have adopted our reforms based on these figures,” he added.
Fears of the oil industry’s privatization and possible pay cuts in April simulated a three-day strike causing a reduction in oil production in the country of nearly 3million barrels per day and indicating that unchecked labour unrest can create oil output difficulties even in highly controlled Middle East states.
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