Kuwait Brings More IOCs Into Heavy Oil Development

Kuwait has ambitious plans to increase output capacity. Heavy oil fields are central to its efforts, with deals to bring in Total and Lukoil in the works.

Kuwait is relying on developing heavy oil reserves in the north to help hit its 4mn b/d liquids production capacity target by 2020. Crude and condensate capacity currently stands just above 3mn b/d. It looks set to fall short of the target, especially as last November’s parliamentary election has heightened political turbulence. However, heavy oil development appears on track to hit 120,000 b/d by 2019.

Kuwait’s commitment to boosting liquids capacity is showcased by the rig count figures provided by US services firm Baker Hughes. Prior to 2017, Kuwait had 40 active oil rigs in just one month, March 2015, but has exceeded this mark in each of the first four months of 2017 (see chart). As heavy oil development accelerates, this should climb markedly as the reservoirs require more drilling than conventional fields. (CONTINUED - 858 WORDS)

DATA INSIDE THIS ARTICLE

chart Kuwait Starts 2017 With Record High Rig Count
chart Kuwait Heavy Oil Output Plans (‘000 B/D)