Kuwait: Shell Deal Boost For IOCs

IOCs looking to secure major contracts in Kuwait received a rare shot in the arm this week. State news agency KUNA reported on 26 April that the public prosecutor has closed its investigation into the enhanced technical service agreement (ETSA) signed with Shell in 2010 for the development of its Jurassic gas fields.

ETSAs were supposed to be a key plank of Kuwait’s efforts to increase crude oil production capacity to 4mn b/d, from less than 3mn b/d currently.

However, the investigation put this on freeze: no further ETSAs have since been awarded. Kuwait remains committed to reaching 4mn b/d by 2020, but has moved the goalposts by including condensate in the calculation (MEES, 15 April). (CONTINUED - 298 WORDS)