• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 31 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 9 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 13 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 9 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 18 hours Middle East on brink: Oil tankers attacked off Oman
  • 12 hours Never Knew Gasoline Prices were this important!
  • 9 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 30 mins Plants are Dying
  • 6 hours We Are Better Than This
  • 11 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 1 day Britain makes it almost 12 days with NO COAL
  • 1 day Emmissions up, renewables nowhere
  • 10 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
Alt Text

Oil Industry Banks On Shaky Plastic Bet

Oil companies are hedging the…

Alt Text

U.S. Total Oil Output Poised To Set New 2019 Record

US oil production keeps accelerating…

Oxford Business Group

Oxford Business Group

Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of the Middle East, Africa, Asia…

More Info

Trending Discussions

This OPEC Member Aims To Boost Oil Output By 40%

A new expansion drive will see Kuwait invest $120bn in hydrocarbons projects through to 2030, with the aim of boosting both upstream and downstream production capacity ahead of an anticipated rise in energy demand.

Speaking at an industry conference in mid-October, Nizar Al Adsani, CEO and deputy chairman of the board at the state-owned Kuwait Petroleum Corporation (KPC), announced plans to increase oil production capacity in the north of the country, with the aim of producing 4m barrels per day (bpd) by 2020. At present, the country produces around 2.8m bpd.

Al Adsani told attending delegates that two such projects in the north of the country would be rolled out in the first quarter of 2018.

The first consists of two oil-gathering centres, scheduled for launch in March next year, together with an enhanced recovery technology initiative, while the second project comprises new facilities at the Fars reservoir in the Ratqa oil field, where operations are scheduled to begin in May 2019.

The Fars reservoir holds the majority of the Ratqa field’s reserves and is key to Kuwait’s production plans. Once on-line, the $7bn project is expected to add 60,000 bpd to capacity. 

Al Adsani also said that KPC is increasing the number of drilling rigs in operation from 130 to 180 by FY 2019/20.

Gas production to rise to 1bn cu feet per day

In addition to oil, KPC plans to increase gas output to 1bn standard cu feet per day (scfd), with higher gas production expected to come from the development of untapped deposits in the northern region. Operations are slated to launch in 2023.

As of late October Kuwait Oil Company, a subsidiary of KPC, was producing 210m scfd, with volumes forecast to surpass 500m by January.  

Related: UK Gas Prices Rise Most In 8 Years On Explosion, Outages

Investing in refining capacity

In tandem with the upstream developments, Kuwait is investing downstream, aiming to boost refining capacity from current levels of 900,000 bpd to 1.4m by late 2019 or early 2020.

Planned projects include the rehabilitation and upgrade of two existing refineries – Mina Al Ahmadi and Mina Abdullah – as part of the Clean Fuel Project run by Kuwait National Petroleum Company, the downstream arm of KPC.

The upgrades are expected to boost the facilities’ combined capacity by 64,000 bpd to 800,000 bpd.

In a separate downstream development, a new greenfield project – the Al Zour refinery – will utilise clean technology to process sour reserves while meeting higher emissions standards.

The refinery is expected to produce 225,000 bpd of low-sulphur fuel oil to power local plants, alongside jet fuel, kerosene and naphtha feedstock. Investment in the project is estimated at KD6.7bn ($22bn), and operations are scheduled to begin next year.

Lower production forecast in 2018

By expanding infrastructure both upstream and downstream, Kuwait is positioning itself to capitalise on rising global energy demand, which the International Energy Agency forecasts will increase by 30 percent by 2040.

However, domestic output is likely to witness a moderate decline in the shorter term. Forecasts for this year and 2018 put production at 2.7m bpd, down from 2.9m bpd in 2016, according to media reports.

Related: Brent Pipeline Closure Confuses Oil Markets

Both figures fall well below the current maximum production capacity of 3.2m bpd, and are in line with the lower production quotas agreed by the member states of the Organisation of the Petroleum Exporting Countries (OPEC) in November 2016 as part of a bid to shore up prices. OPEC members and other producers agreed late last month to leave the output cuts in place through to the end of 2018, following an earlier nine-month extension agreed in May.

Lower levels of production have proven effective, helping to push up crude prices to above $58 per barrel by the beginning of November.

Credit ratings agency Fitch said in October that an expected 8.3 percent drop in oil output would slow broader economic growth, although it maintained its “AA” assessment of the market with a stable outlook.

However, demand-side factors could offer brighter prospects in the medium term. The QNB Group said it expects demand to rebound in 2019, with Kuwait’s oil output reaching levels witnessed before the cuts were implemented, helping to boost overall economic growth.

By Oxford Business Group

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • david on December 16 2017 said:
    We will need it as demand by 2020 will skyrocket.
  • Citizen Oil on December 18 2017 said:
    Its always a great idea to increase your production by 40% in a market that grows demand by 1.5% a year. Very intelligent. I'm sure OPEC is ecstatic about this prospect. This folks is why this commodity is doomed for the foreseeable future.
  • Don Clifford on December 18 2017 said:
    Declining production by other producers justifies this expansion.

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News