Page 9 - DMEA Week 47 2022

DMEA COMPANIES DMEA

The SAB report notes that KPC’s financial assets lost value in 2018-2022 (Image: KPC)
In a report prepared by the National Assembly the state by KPC issued on January 1, 1981 and
on the financial situation of KPC and its subsid- regulating the accounting transaction between
iaries, SAB explained that the value of financial KPC and the State of Kuwait.
assets at fair value during the fiscal years under KPC’s investments vary between highly liq-
study (2018-2022) had decreased. uid investments, financial portfolios, subsidi-
It explained that the total loans of KPC and aries and associate companies, and depend on
its subsidiaries in the fiscal year ending in March a set of approved controls and procedures and
2022 amounted to KWD5mn ($16.2mn), which what is stipulated in the regulations and deci-
is an increase of 63% on what it was in the fiscal sions issued in this regard and the direct powers
year that ended in March 2018; over that period granted to the Financial Investment Committee.
the value of bank balances decreased by 14.7%. The fund’s invested balances for the foun-
The interests of the recovered financing, with dation on March 31 amounted to KWD15mn
which KPC is compensated in return for invest- ($48.7mn), representing 29.6% of the total assets
ing its funds in the activity of exploration and on the same date.
production of crude oil and natural gas within SAB touched on the decrease in the value
the State of Kuwait since the fiscal year 1981- of financial assets at fair value during the
1982 until the fiscal year ending on March 31, financial years under study to reach a value of
2022, amounted to KWD4.6mn ($14.9mn). KWD4.3mn ($14mn) on March 31, 2022, due
This is a procedure outside the special decree to the withdrawal of sums from the minister’s
regarding the financial bases related to the mar- portfolio to meet the needs of KPC and its sub-
keting of Kuwaiti crude oil and gas belonging to sidiaries. ™

REFINING & FUELS
QatarEnergy and Sinopec clinch LNG

agreement with longest supply term

MIDDLE EAST QATARENERGY has struck a 27-year deal to in supplies over longer terms, due to concerns
deliver LNG to China’s Sinopec, marking the about jeopardising their climate commitments.
longest such agreement so far, as buyers scram- “Today is an important milestone for the first
ble to lock in long-term supplies amid a volatile sales and purchase agreement (SPA) for North
and tight market. Field East project; it is 4mn tonnes [per year, or
The LNG market is experiencing an unprec- tpy] for 27 years to Sinopec of China,” QatarEn-
edented supply crunch, as Europe scrambles to ergy CEO Saad al-Kaabi told Reuters in Doha,
replace lost Russian volumes that used to cover shortly before the deal signing. “It signifies long-
40% of its gas needs, following Moscow’s inva- term deals are here and important for both seller
sion of Ukraine. This has diverted cargoes away and buyer.”
from Asia, which previously offered premium North Field is the world’s biggest gas deposit,
LNG prices. shared between Qatar and Iran. It is set to
However, many of the long-term supply deals undergo two expansion stages, North Field East
that have been reached since the war began are (NFE) and North Field South (NFS), that will
notably with Asian buyers, particularly in China. raise Qatar’s LNG production capacity from
This is largely because European governments the current 78mn tpy to 126mn tpy by the late
and buyers have been more reluctant to lock 2020s.

Week 47 24•November•2022 www. NEWSBASE .com P9