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Kuwait Announces Massive Oil Discovery

July 15, 2024
in News
Kuwait Announces Massive Oil Discovery
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One of the Middle East’s leading oil producers, Kuwait, revealed a significant discovery of oil and gas in an offshore field near Failaka Island on Sunday. This “huge” find was announced by the Kuwait Petroleum Corporation (KPC) during a meeting with the Emir of Kuwait, Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah.

Preliminary assessments indicate that the Al-Noukhitha offshore field holds approximately 3.2 billion barrels of oil equivalent, which includes 2.1 billion barrels of light oil and 5.1 trillion standard cubic feet of gas.

These figures were provided by the Kuwait Oil Company (KOC), the government body responsible for exploration and production, in a statement to the Kuwaiti news agency KUNA.

KOC expressed optimism about the potential of the Al-Noukhitha field, suggesting that further exploration could uncover additional reserves in various layers and reservoirs. The company intends to expedite plans to start extracting resources from the field as soon as possible.

Kuwait, which has been exporting crude oil since 1946, currently produces around 2.4 million barrels per day (bpd) of crude oil. This production level is maintained in line with the OPEC+ agreement, which includes OPEC members and other major oil producers like Russia.

As a founding member of OPEC, Kuwait ranks as the fifth-largest producer in the cartel, following Saudi Arabia, Iraq, Iran, and the United Arab Emirates (UAE).

Earlier this year, Sheikh Nawaf Al Sabah, the chief executive of KPC, outlined Kuwait’s ambition to increase its oil production capacity to 4 million bpd by 2035, up from just over 3 million bpd currently. Additionally, Kuwait aims to enhance its capacity to process heavier grades of crude oil domestically, thereby freeing up more volumes of the higher-value lighter crudes for export.

Last year, Kuwait began to reduce its sour crude exports as the new Al-Zour refinery, which has a capacity of 615,000 barrels per day, commenced operations. This strategic move aligns with Kuwait’s broader goal of optimizing its crude oil processing and export capabilities.

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