In January 2024, Khaled Al-Sabah, CEO of Kuwait Petroleum Corporation (KPC), unveiled an ambitious $30 billion investment plan aimed at boosting the emirate’s oil production capacity by 40%. The target is to increase output from 2.8 million barrels per day (bpd) to 4 million bpd by 2040.
To turn ambition into reality, state-owned KPC, which has long relied on onshore reserves, is venturing into offshore exploration with a 6,000-square-kilometer area under review. Kuwait Oil Company (KOC), a KPC subsidiary, has already made significant strides with the discovery of two new fields: the 74-square-kilometer Al-Jlaiaa field, revealed in January, and the promising Al-Nokhatha field, which could contain up to 2.1 billion barrels of oil and 5.1 trillion cubic feet of natural gas. New gas discoveries are of particular interest to Kuwaitis, who currently rely on imports to meet local consumption needs.
The oil discoveries could pave the way for new business opportunities as well. While Kuwait remains cautious about foreign involvement in its hydrocarbons industry, KOC last year signed a contract with US-based SLB for the drilling of 141 new wells.
Kuwait’s hydrocarbons strategy does not stop at increasing production; it also includes enhancing existing infrastructure. In 2024, the emirate inaugurated the $30 billion Al Zour refinery, Kuwait’s largest and the seventh largest in the world. At full capacity, Al Zour is set to elevate the country’s refining capacity to 1.42 million bpd, up from a current 800,000.
In tandem with this expansion, Kuwait is looking to streamline its tentacular network of hydrocarbon institutions. Currently, KPC oversees eight subsidiaries, including KOC. Back in 2020, the government mandated PwC’s international consulting firm, Strategy&, to advise on possible consolidation. Today, it may be ready to merge some of these entities in a bid to boost efficiency. Local media are already reporting on potential mergers between Kuwait National Petroleum Company and Kuwait Integrated Petroleum Industries Company as well as KOC and Kuwait Gulf Oil Company.
