Page 10 - MEOG Week 38 2022

MEOG PRICES & PERFORMANCE MEOG

Kuwait pushes oil output,

plans gas expansion

KUWAIT STATE-OWNED Kuwait Petroleum Corp. planned GCs, each adding 100,000 bpd of crude
(KPC) has provided an update on the emirate’s processing capacity alongside 62.5mn cubic feet
oil production while the company’s upstream (1.77mn cubic metres) of gas and 240,000 bpd
subsidiary said it would raise gas output. of treated water.
KPC CEO Sheikh Nawaf Saud al-Sabah was Al-Sabah reiterated the plans to increase oil
quoted as saying that Kuwaiti crude was cur- output whenever the market requires but noted
rently flowing at more than 2.8mn barrels per that demand from KPC customers remains
day, in line with its OPEC+ quota of 2.818mn unchanged. He added that “ambiguity exists
bpd for September. This will fall to 2.811mn bpd in all markets, whether gas or oil ... there are
in October following the most recent meeting questions about the world economic future,
between the group of producers. especially with the interest rate hikes and the
The Ministry of Oil and KPC have been expected recession in global economies and the
working toward reaching 3.5mn bpd by 2025 extent of their impact on oil demand.”
and 4mn bpd by 2035, having previously set a Kuwait’s gas production is currently running
target of 4.75mn bpd by 2040. However, with the at 650mn cubic feet (18.4mn cubic metres) per
flagship Greater Burgan oilfield – the world’s sec- day though al-Sabah said plans are in place to
ond largest – already requiring gas injection and raise this to 1bn cubic feet (28.3 mcm) per day.
water flooding to produce at 1.6mn bpd, around Meanwhile, KOC’s acting CEO Khaled
95% of its potential – even the revised timelines Nayef Al Otaibi said that his company aimed to
may be overly optimistic. increase gas output to meet local demand.
KPC’s upstream arm Kuwait Oil Co. (KOC) “With the world recovering from the disrup-
is seen achieving the expansion through work on tions caused by COVID-19 pandemic, demand
gathering centres (GCs), the expansion of water for oil and gas returned to its pre-pandemic lev-
handling and water injection facilities as well as els in 2019. In this high price environment, the
upgrades to existing Jurassic production facil- company is determined to increase its natural
ities and the addition of new production units gas production in line with KPC’s strategy to
and wells. meet the domestic demand for energy”, he said
Last year, KOC started up the last of three during an industry event in Kuwait.™

P10 www. NEWSBASE .com Week 38 21•September•2022