ShareBy Faten Omar
KUWAIT: Minister of Oil and Chairman of Kuwait Petroleum Corporation Dr Saad Al-Barrak emphasized Kuwait’s commitment to the integrated infrastructure development of the Al-Durra field as a vital economic cornerstone in the 17th government work program. He also stressed on the importance of developing the oil industry, despite the existential challenges posed by climate change. "Our sector is the backbone of the national economy since the discovery and production of oil and the first shipment exported in 1946.
The oil sector has contributed to the building of the modern state," he added. Speaking at the 2040 Strategic Directions and 2050 Energy Transition Conference, Barrak announced Kuwait’s roadmap to achieve net-zero emissions by 2050. He stressed the need for Kuwait to diversify its income sources and ensure the sustainability of its national economy by fostering the growth and development of the oil industry. “Kuwait Petroleum Corporation remains committed to investing in the Kuwaiti oil sector to support its growth and ensure Kuwait’s continued global role towards its customers around the world.
On the other hand, our world is witnessing a significant shift to the use of renewable and clean energy sources. This shift requires a long-term strategic vision, as we recognize the importance of oil as a strategic fuel source, but also work actively towards the energy transition and investments in our national workforce and new technologies,” Barrak noted. The minister pointed out that 90 percent of Kuwait’s revenue is generated from the oil industry, making it crucial to overcome obstacles and execute KPC projects outlined in the government’s work program within set timelines to ensure a continuous financial flow for the state.
KPC CEO Sheikh Nawaf Al-Sabah emphasized that the implementation of the corporation’s capital projects would result in additional annual revenue flows of approximately $11 billion during the five-year plan, contributing to maintaining KPC’s market share. Regarding the Al-Durra field, he stated that Kuwait is working with Saudi Arabia on preliminary studies to eventually reach a decision on implementing an integrated project. “Renewable sources are not enough to meet the world’s needs, and there must be a pivotal role for low-cost oil with less carbon emissions. Currently, a barrel of Kuwaiti oil has the lowest carbon dioxide emissions in the world.
We must continue to ensure that the Kuwaiti oil barrel is the most in-demand in the world. Currently, Kuwait’s annual production is one billion barrels per year. If we can raise the recovery rate by 1 percent, we will have compensated for a year’s production,” Sheikh Nawaf said. Regarding the northern fields, he mentioned ongoing discussions with Iraq to determine production methods and the possibility of importing gas from Iraq. KPC also announced its strategic directions until 2040, aligning with global market forecasts, including energy transition, carbon emissions reduction and the anticipated increase in energy demand.
KPC MD Planning & Finance Bader Al-Attar said Kuwait plans to invest around $110 billion to achieve energy transition targets, in addition to the $300 billion allocated for the oil sector in the 2040 strategy. “With a total of $410 billion, 60-70 percent of it is related to oil exploration,” he explained. Key initiatives include utilizing renewable energy, improving energy efficiency, reducing gas flaring, carbon capture and investing in new energy businesses.
CEO of Kuwait Oil Company Ahmad Jaber Al-Eidan highlighted initiatives such as enhanced oil recovery using carbon dioxide gas in the Manaqish field and efforts to reach a production capacity of four million barrels per day. He also mentioned a joint project with the Kuwait National Petroleum Company and Kuwait Integrated Petroleum Industries Company aimed at capturing over 100 million metric tons of carbon dioxide for use over 25 years and exploring ways to store around 400 million metric tons for production processes.
CEO of Kuwait Integrated Petroleum Industries Company Waleed Al-Bader announced the operation of the first and second Al-Zour refineries, with a total capacity of 410,000 barrels per day, and the upcoming completion of the third refinery, with a total capacity of 615,000 bpd, which will contribute to achieving one of the main strategic directions of KPC’s 2040 strategy, which aims to raise the refining capacity of Kuwait to reach 1.6 million bpd.
