Kuwait Oil Minister Saad Al Barrak has announced a new strategy to boost the nation’s oil and gas production and push ahead with the development of the Durra gas field, reported Reuters.
The announcement forms part of the government-backed Kuwait Petroleum Corporation’s (KPC) 2040 strategy.
By 2035, KPC aims to increase total oil production capacity to 4 million barrels per day (mbpd).
Currently, Kuwait’s production capacity is 2.9mbpd and is expected to reach 3.2mbpd by 2025 or 2026.
According to KPC CEO Sheikh Nawaf Saud al-Sabah, KPC subsidiary Kuwait Oil Company (KOC) plans to raise oil production capacity to 3.65mbpd by 2035 under the new strategy, which will result in a rise in state revenue of nearly $11bn (Kd3.4bn) over the following five years.
About 90% of Kuwait’s oil production comes from KOC, which also intends to attain a daily gas production capacity of 1.5 trillion cubic feet by 2040.
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Kuwait is estimated to have 100 billion barrels of oil reserves.
Under the 2040 strategy, KPC would invest $410bn, which will come from KPC’s cash flow, debt, and joint ventures with other businesses.
Out of the $410bn, KPC and its subsidiaries intend to invest $110bn to accomplish the group’s energy transition targets.
For the Durra gas field, which Kuwait is developing in partnership with Saudi Arabia and which Iran claims a stake in, the oil minister said the country aims to prepare the integrated infrastructure.
With an estimated 20 trillion cubic feet in proven reserves, the Durra gas field is considered an important project for the government.
The Durra gas field is anticipated to be completely operational by 2029.
The Al Zour refinery complex in the south of Kuwait is also expected to come online within a few days. Once fully operational, the refinery is expected to have a capacity to process 615,000bpd.