Kuwait Find Huge Reserves of Oil and Gas
Kuwait, one of the Middle East’s largest oil producers, said that it made a huge” discovery of oil and associated gas in an offshore field east of Failaka Island. The initial estimated area of the newly discovered oil well is around 96 sq km.
At a meeting with Kuwait’s Amir H H Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah on Sunday, Kuwait Petroleum Corporation CEO Sheikh Nawaf Saud Al-Sabah, and the Kuwait Oil Company (KOC) CEO, informed him about the discovery, with estimated total hydrocarbon reserve of light oil and gas reaching approximately 3.2 billion barrels of oil equivalent.
Kuwait’s Crown Prince H H Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah, and Prime Minister H H Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah, were present at the meeting.
The reserves could be 2.1 billion barrels of light oil and 5.1 trillion standard cubic feet of gas, all of which amount to a total of 3.2 billion barrels of oil equivalent. Early estimates suggest that the field has huge potential to reveal additional quantities in various layers and reservoirs at the field, KOC said.
The marine exploration project was based on 2D seismic surveys of the area along with geophysical and geological studies. The first drilling phase includes six exploratory wells, and the results will inform further drilling efforts and the establishment of a development plan to commence production.
Kuwait plans to draw up plans to begin extracting resources from the field as soon as possible, the company said. Kuwait, a founding member of OPEC, is the cartel’s fifth-largest producer, behind Saudi Arabia, Iraq, Iran, and the UAE.
Additionally, the project contributes to developing new technical skills in drilling and offshore production, creating varied employment opportunities for national talents.
Based on initial test results, a developmental plan will be established to commence actual production from the field at the earliest opportunity, boosting KOC’s production capacity and laying another cornerstone for achieving its 2040 strategy, KOC indicated.
Kuwait, which began exporting crude oil in 1946, currently produces around 2.4 million barrels per day (BPD) of crude, as it is capping output together with its partners in the OPEC+ deal—OPEC and a dozen non-OPEC producers led by Russia.
Boosting Oil Output
According to media reports, Kuwait aims to boost its oil production capacity to 4 million bpd by 2035, up from just above 3 million bpd now, Sheikh Nawaf Al Sabah said earlier this year. Kuwait also looks to boost its capacity to process heavier grades domestically, leaving more volumes of the more expensive lighter crudes for exports.
Last year, Kuwait began curbing its sour crude exports as its new 615,000-barrels-per-day refinery Al-Zour started ramping up operations. Sheikh Nawaf Saud Nasir Al-Sabah, highlighted that the new reserves are equivalent to Kuwait’s total production over three years.
