Upstream Targets Set by Kuwait, Plans to Raise Oil and Gas Production

Upstream Targets Set by Kuwait, Plans to Raise Oil and Gas Production

Some short and long-term gas and oil production targets have been laid out by Kuwait in mid-July. Timeframes for these up-stream aims have been met with some skepticism as the authorities have failed to carry out the required field development activities according to ever-revising schedules.

However, delivery of the project has improved over the last three years as gas-shortage problems become more acute and self-imposed deadlines are being followed. It was surprising to see a mooted response to the potential collaboration with Riyadh to focus on the issue of gas shortage problem.

Oil minister of Kuwait, Eassm al-Marzooq told the press on July 19 that Kuwait Petroleum Corp. (KPC), an energy conglomerate owned by the state, was aiming to raise light oil and non-associated gas production to 200,000 bpd by the end of year and 510 mmcf per day respectively. It was an implicit reference to the expected successful completion of the three contracts presented last year for the Jurassic reserves development at northern fields.

The three build and operate contracts awarded in late 2015 called for setting up of facilities for production ability of 40,000 bpd and 100 mmcf (2.8 mcm) per day. More than US$1 billion worth awards were made in initial months of 2016 for Sabriya, Umm Niqa, and East Raudhatain fields to the U.S.’ Schlumberger. Local company called Safwan Petroleum Technologies Co. (SPECTO) was given the contract to tender West Raudhatain field.

Additional development of the Jurassic reserves is anticipated and the commissioning of present projects points to the first remarkable result of the planned development which dates back over a decade.

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