Page 8 - MEOG Week 03 2023

MEOG PRICES & PERFORMANCE MEOG

KOC raises oil production

from northern fields

KUWAIT STATE-OWNED Kuwait Oil Co. (KOC) is of the PNZ in figures for both production and
reported to have achieved a modest increase in capacity, while its Saudi counterpart Saudi Ara-
oil output from fields in the North Kuwait pro- mco has traditionally omitted the shared fields
duction zone. in MSC, while including their production in its
Speaking to the local Al-Qabas Arabic lan- output reporting.
guage daily, sources said that production from In June, Sheik Nawaf Saud al-Sabah, CEO of
the North Kuwait fields – most notably Raud- KOC’s parent Kuwait Petroleum Corp. (KPC),
hatain, Ratqa, Sabriya and Umm Niqa – has risen said: “We always like to maintain spare capacity
to around 600,000 barrels per day (bpd), but by about 10% to 15% above where we need to be just
roughly 50,000 bpd in the past year. in case of supply disruptions around the world.”
While this remains well below peak output, Based on December output of 2.67mn bpd,
the increase is indicative of concerted efforts by this would suggest an MSC figure of 2.94-3.1mn
Kuwait to raise output in line with ambitious bpd. However, Bloomberg quoted him as saying
targets. that Kuwait’s production is running at around
The newspaper said that KOC’s target for 3.5mn bpd. Presumably this comment was a
North Kuwait is to reach 700,000 bpd by 2024 reference to MSC, but no clarification has been
and 800,000 bpd by 2026 as part of a broader goal provided – KPC has previously set 2025 as the
to raise output throughout the country. date for capacity reaching this level.
With actual production having run at around There has been widespread confusion about
2.6mn bpd in 2021, KOC has seen its theoretical, moveable goals, with official comments pro-
maximum sustainable capacity (MSC) drop too vided to Bloomberg last year suggesting that
– to 2.7mn bpd the same year. While Middle East Kuwait was targeting an MSC of 4mn bpd by
Oil & Gas (MEOG) understands that this figure 2025, a highly ambitious fast track given the
has risen by 100,000-200,000 bpd, largely thanks dates set by KPC and the Ministry of Oil (MoO)
to concerted effort to build out the Partitioned the previous October – 3.5mn bpd by 2025 and
Neutral Zone (PNZ) it shares with Saudi Arabia. 4mn bpd by 2035, which was already five years
It is worth noting that KOC includes its share earlier than previous guidance.™

P8 www. NEWSBASE .com Week 03 18•January•2023