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Kuwait reveals plans to almost double oil production in a decade

Building works over the sea as the sun sets on the horizon in the distance

The boss of Kuwait’s state-owned oil company has indicated that the country hopes to almost double its hydrocarbons production by 2035 with the help of international oil companies.

Kuwait Petroleum Corp. CEO Sheikh Nawaf al-Sabah was speaking at the CERAWeek by S&P Global conference when he made the announcement. The Middle Eastern country currently produces about 2.4 million barrels per day (bpd) of crude oil, but if it realises its plans, this will increase to over 4 million bpd by 2035.

The announcement follows news that substantial oil and gas reserves have been discovered in the offshore Al-Nokhatha field east of Failaka Island in Kuwaiti waters. The Kuwait Petroleum Corporation (KPC), the owner of the Q8 lubricant brand, and Saudi Aramco, which owns the Valvoline brand, also made progress in their joint venture to develop the offshore Durra gas field, which has also been claimed by Iran. Once operational, it should produce 84,000 bpd in condensate and a billion cubic feet of natural gas each day.

Unlike other GCC countries, Kuwait appears to be betting big on oil, which means it will likely stay vulnerable to volatility in oil prices. Nevertheless, the government has planned to transform the country into a trade and logistics hub by 2035, with three new economic zones being established alongside a futuristic megacity called Silk City. The latter is expected to create more than 200,000 jobs and increase the non-oil portion of the country’s GDP from 13% to 16% at a cost of $130 billion.

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