Kuwait Bullish On Contract Award, But Quietly Shelves Production Target

Kuwait says that it remains committed to producing 4mn b/d oil by 2020. But it has quietly shifted the goalposts. Previously the target was explicitly for crude production. Not anymore. Jamal Jaafar, CEO of the Kuwait Oil Company (KOC) indicated on 11 April that the target is now for liquids – and so includes condensate and NGLs.

Speaking on the sidelines of the 4th Kuwait Oil and Gas Summit in Kuwait, Mr Jaafar said he expects 300,000 b/d liquids production from the Jurassic gas project, and “we consider the Jurassic part of the new oil and in our targets for 2020.”

This reduced emphasis on crude production in official targets enables Kuwait to focus its attentions more on boosting gas output targeted at power generation and its growing petrochemicals sector. Kuwait Petroleum Corporation (KPC) CEO Nizar al-‘Adasani told the conference “Kuwait’s future focus will be to develop Jurassic gas and the petrochemical industry. We plan to dedicate more time to it for the benefit of Kuwait.” (CONTINUED - 1390 WORDS)