(MENAFN - Kuwait News Agency (KUNA)) The parliament Budgets and Final Statements Committee discussed the 2014-15 budget of Kuwait Petroleum Corporation (KPC) and its subsidiaries on Tuesday.
KPC's total revenues for the 2014-15 fiscal year are expected to reach around KD 25 billion with expenses worth KD 24 billion. This leaves net production of around KD one billion, revealed a statement by the head of the committee Adnan Abdulsamad. (KD equals USD 3.54).
The consolidated net profit proposed for the budget has increased by KD 59.4 million to KD 1.0405 billion, added the lawmaker. KPC has also allocated appropriations for the replacement of fixed assets for an amount of KD 345 million.
As for the production capacity of Kuwaiti crude oil, he added this was 3.258 million barrels per day (bpd), with production at an average of 2.7 million bpd.
KPC had recently adopted a decision to liquidate Oil Development Company, and that due to this, no budget will be planned for ODC. The company's activities and employees will be shifted to KPC and its subsidiaries, all except for consultancy activities, he said.
Another of KPC's subsidiaries, Kuwait Oil Tankers Company (KOTC) is set to receive seven new tankers (three for crude and four for petroleum derivatives). With the new shipments, its fleet will be upgraded to a total of 30 tankers.
The new liquefied gas fueling location at Umm Al-Aish, north of the country, will be operational in the first quarter of the financial year, while a new hospital in Al-Ahmadi will also be open to KPC employees during the financial year, thus providing 350 jobs.
The lawmakers discussed the reasons behind the increase in the total operationl expenditure, worth KD 195.5 million, whereby their discussions revealed that 88.7 percent of this increase was in respect to employee wage and bonus increases and pay rises.
As for the development plan and capital projects, KPC has brought 60 projects on board, mainly the environmental fuel (KD 4.68 billion) and new refinery (KD four billion) projects.
On the observations made by the lawmakers regarding this, Abdulsamad said KPC had made several changes to its original plans, thus leading to an increase in the cost of these projects and their deadlines.
The two highlighted projects are expected to provide 1,000 new job openings when they are completed. KPC currently employs 16,207 Kuwaitis and 3,175 non-Kuwaitis.
It also has 2,156 vacant positions (1,460 for Kuwaitis and 696 for non-Kuwaitis). These positions are mainly for high-skilled labour in engineering and the medical profession, he added.
Until the end of the current 2013-14 fiscal year, KPC has managed to hire 1,414 employees out of its plans to target a total 1,726 jobs. KPC attributed the remaining job openings to the lack of the required skills amongst applicants, he said.
As for the average of locals working in KPC, he said this rose from 82.2 percent to 83.6 percent, he said, adding that it only spent 20 percent of the KD 30 million allocated for internal training courses of its employees.
KPC was asked to provide a detailed report of its negligence to fulfill the desired quota due to its importance to the development of the skills of its workforce.
As for its social responsibility duties to provide 15 scholarships to locals, KPC was asked to seek plans aimed at increasing these numbers.