Kuwait, Iraq mull gas deal in lieu of war compensation
Kuwait ready to host forthcoming GCC summit
KUWAIT: Minister of Oil Essam Al-Marzouq unveiled that talks are going on between the Kuwaiti and Iraqi governments over a proposal to barter the remaining war compensations for Kuwait with gas supplies from Iraq. “Part of the talks is related to a proposal to import Iraqi gas,” the minister told reporters on the sidelines of a ceremony held by the German embassy in Kuwait to mark their national day.
Marzouq, also Minister of Electricity and Water, said that the two sides are negotiating the price of Iraqi gas. He projected that the Kuwaiti imports of Iraqi natural gas would start with 50 million cubic feet and then the imports would increase to reach 200 million cubic feet. He added that an agreement in this regard would be signed soon.
Common understanding
Kuwait hoped Tuesday it would reach a common understanding with Baghdad over options to pay $4.6 billion, the last payment of compensations of damage caused by Iraq’s 1990 invasion and occupation of Kuwait. The Geneva-based UN Compensation Commission (UNCC) approved request by Kuwait and Iraq to extend compensation payment negotiations for two months, to allow both countries reach an agreement over payment options, Deputy Foreign Minister Khaled Al-Jarallah told reporters while attending the reception.
Jarallah said the approval was a “positive” sign, “and we are confident we will reach a common understanding with the Iraqis regarding the possible payment options.” The options are the sale of natural gas at an “agreed price” between the two countries, negotiating the decrease of Iraqi oil and derivative imports, lessening the dues according to the Paris Club sustainable solutions or transforming the amount to a bilateral debt. However, said Jarallah, the natural gas sale option was “the most preferable.”
GCC summit - Al-Jarallah
Meanwhile, Jarallah indicated that Kuwait is ready to host the upcoming Gulf Cooperation Council (GCC) summit next December, hoping that the high-level meeting would be held on time. “There are no contacts with the leaders of the GCC about convening the summit, but naturally we are ready for it and hope it will convene on time,” Jarallah told reporters.
Asked about Kuwait’s mediation to solve the Gulf dispute, Jarallah said “the mediation by Kuwait is ongoing and will continue until we see an end to this dispute.” Jarallah, meanwhile, described Saudi King Salman Bin Abdulaziz’s upcoming visit to Russia as “historic and important.” This is the first visit by a Saudi King to Russia, he said, and it would benefit security of the region. — KUNA