World Report

KPC plans a US$55 billion investment to upgrade the energy sector

ll industry outlooks unanimously confirm that the Kuwait oil sector is standing on the threshold of a bright new era of progress and prosperity,” states Sheikh Talal Khaled Al-Ahmad Al-Sabah, Manag-ing Director of Petroleum Services for state-owned Kuwait Petroleum Corporation (KPC). “Kuwait is set to play a significant role in fulfilling the world’s future energy needs, and with large projects already in motion and bigger ventures to start, KPC’s future never looked brighter.” This forecast comes while the country currently possesses roughly 10 percent of the world’s proven oil reserves, and the national oil company has been rated by Petroleum Intelligence Weekly as the fourth largest oil company in the world by reserves, which are currently estimated at 99,000 million barrels – enough to last more than 100 years. Kuwait boasts the second largest oilfield in the world at Greater Burgan, along with 12 other existing fields in the country and over 1,600 producing wells.

Sheikh Ahmad Al-Fahed Al-Sabah
Minister of Energy

“The private sector will be given a larger role in Kuwait’s oil sector”

Sheikh Talal Khaled Al-Ahmad Al-Sabah
Managing Director of Petroleum Services at KPC

Today Kuwait has fully recovered from the devastation caused to its oil industry during the 1990 Iraqi invasion, when several hundred oil wells and gathering stations were destr-oyed and all three domestic refineries were put out of operation. Current production levels are 2.4 million barrels per day (bpd) and the country has a refining capacity of 889,200 bpd. However, the country is not resting on its laurels and, in preparation for an expected 50 percent rise in global oil demand over the next two decades, has committed US$55 billion (£33 billion) to upgrading its energy sector through the Vision 2020 plan, which will significantly boost both production and refining capacity over the next 15 years. The country has several new mega projects in the pipeline, including the £3.8 billion Project Kuwait to develop the country’s northern oilfields and the construction of a fourth refinery – both open to foreign participation. “We need the help of international companies as extra production will require advanced technology,” comments Minister of Energy Sheikh Ahmad Al-Fahed Al-Sabah.