Page 7 - MEOG Week 13 2022
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MEOG FINANCE & INVESTMENT MEOG
Japan to support Kuwait’s
oil capacity push
KUWAIT A Japanese export credit agency (ECA) is set to facilities as well as upgrades to existing Jurassic
sign a deal with Kuwait’s Ministry of Oil (MoO) production facilities and the addition of new
to support the Middle Eastern country’s expan- production units and wells.
sion of oil production capacity. At present, the country has little wiggle room
A source in the Japanese government was on production, but efforts are gaining momen-
quoted by S&P Global Platts as saying that a tum with neighbouring Saudi Arabia to step up
memorandum of understanding (MoU) would output from their shared Partitioned Neutral
be signed between the two countries for Nippon Zone (PNZ).
Export and Investment Insurance (NEXI) to Oil production from the area is reported
provide insurance for $1bn of finance as Kuwait to have run at an average of around 180,000-
works to increase its capacity from its current 190,000 bpd during 2021, though November and
level of just over 2.6mn barrels per day (bpd). December flows were in excess of 250,000 bpd.
The country is believed to have produced Hashem laid out vague plans for KOC to raise
almost at capacity during February while plans its share of PNZ capacity to around 350,000 bpd
were announced by the MoO and state-owned by 2025, implying a total output of 700,000 bpd.
Kuwait Petroleum Corp. (KPC) in October The Platts report said that NEXI would pro-
to increase maximum sustainable capacity to vide insurance for a $1bn financing package
3.5mn bpd by 2025 and 4mn bpd a decade later, expected to be signed off by a group of Japanese
five years earlier than previous guidance. and Western banks. Meanwhile, the MoU will
Hashem said the firm’s upstream subsidi- also cover work to explore business opportuni-
ary Kuwait Oil Co. (KOC) would achieve the ties for Japanese companies in Kuwait in terms
increase through work on gathering centres, the of energy production and decarbonisation, the
expansion of water handling and water injection source said.
Week 13 30•March•2022 www. NEWSBASE .com P7
