Kuwaiti MPs file bill to cut output

KUWAIT CITY (AFP) - Opposition MPs filed a bill on Sunday that could effectively slash Kuwait's oil output if it is found that the Gulf state's proven reserves are actually much lower than official estimates. The proposed legislation, signed by four MPs, stipulates that annual oil output from Kuwait, OPEC's fourth largest producer, should not exceed one per cent of proven reserves. It also requires the state to disclose to parliament the emirate's actual proven reserves, which Kuwait says officially stand at about 100b barrels, 10 percent of global reserves. However, some reports say the emirate has inflated its oil wealth and that proven reserves could be as low as around 24 billion barrels. In the past few years, Kuwait has been producing just under one billion barrels per year, one percent of the official reserve figure. If the bill is approved, it could force the emirate to cut its output from 2.55 million barrels per day currently to a quarter of that, at a time when the world is demanding higher oil production.

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