Kuwait City (Platts)--4Jul2008

OPEC member Kuwait earned Dinars 6.5 billion in oil revenues April-June
this year, over 100% more than projected for the period by the government's
budget, the independent al-Shall Economic Consultancy said in its latest
report issued Friday.

Sustained high oil prices have pushed the price of Kuwait Export Crude to
sell for an average of $111.90/barrel over the April-June period, the first
quarter of the country's fiscal year. That is some $61.90/b or 123.8% above
the hypothetical budget projections that had the crude selling for $50/b.

The April-June average was also 79.60% higher that what KEC sold for
during the same period last year.

Assuming that production levels of around 2.6 million b/d and oil prices
remain steady, Kuwait would be expected to come away with an estimated Dinars
26 billion ($98 billion) by the end of the fiscal year, al-Shall said, noting
that it anticipated sustained high prices throughout the remainder of the
year. That would be Dinars 14.35 billion more than what state planners
projected for total oil earnings for the year.

The oil income calculation for the year does not appear to include income
for refined products, which sell for considerably more than crude. Kuwait
refines a little more than one-third of its crude production into products,
therefore the total oil income total could be further upwardly adjusted.

KEC sold for an average of $75/b in fiscal 2007-2008, and Kuwait closed
out its 2007-2008 fiscal year with a record oil income of Dinars 18 billion,
and has posted nine consecutive budget surpluses.