Kuwait Oil and Gas Exploration and Production Market Volumes and Forecast by Terrain, Assets and Major Companies, 2021-2025

Kuwait’s total gross crude oil and condensate production capacity in 2020 was valued at 2,604,195 barrels per day (bd) and is projected to grow at a CAGR of more than 6% during the period 2021-2025. Kuwait’s oil and gas production derives entirely from its onshore fields. The country’s main hydrocarbon resource is oil, and GlobalData estimates that there are over 20 billion barrels of oil and condensate and over 30 trillion cubic feet (tcf) of gas reserves remaining in producing developments. Kuwait’s 2020 oil and condensate production was around 2.6 million barrels per day (mmbd), down from 2.8 mmbd in 2019. 2020 natural gas production was approximately 1.86 billion cubic feet per day (bcfd), up from 1.81 bcfd in 2019. 2021 oil and condensate production are forecasted to fall to 2.6 mmbd and 1.9 bcfd of natural gas.

Overview of Kuwait crude oil and condensate production

For more insights on this report, download a free report sample

What are the market dynamics of Kuwait’s exploration & production sector?

The outlook for Kuwait’s hydrocarbon production is stable. The country hit a production peak of oil in April 2020, just when OPEC decided to implement production cuts, after which production dropped representing a cut of almost 26%. The national Kuwait Oil Company (KOC) was found working on several projects to increase its capacity. For oil fields, a total of 346 new wells have been drilled in, 322 in the Cretaceous developments, 19 in the Jurassic developments, and 5 in the field of heavy oil. Additionally, 1088 workovers were completed to maintain current production.

Finally, several projects related to upgrades in facilities like water treatment, new pump systems, new desalter trains for gathering centers are ongoing to support the additional supply. For non-associated gas fields in the last year, KOC drilled 22 new development wells. GlobalData forecasted an increase in production from 2021 to 2025 of oil and condensate, while natural gas could come from 1.9 bcfd in 2021 up to 2.3 bcfd. The increase in domestic gas production aligns with the country’s ambition for more gas power in its generation mix. Kuwait Oil Company’s exploration campaign also drilled a total number of 15 wells, 10 of them targeting oil and the other 5 natural gas. KOC announced four discoveries in the 2019-2020 fiscal year, two in the Cretaceous layer in Lower Burgan in Bahrah Field, the other two in the Jurassic layer located in Lower Marrat in Kahlolah Field, and Gotnia Anhydrite in Sabriyah Field. Furthermore, KOC recently signed an offshore drilling contract in 2019 to explore Kuwait’s waters. As part of that contract, it states that KOC will drill six Cretaceous and Jurassic exploratory wells. These wells are going to be drilled using two rigs in the first phase of its exploration campaign.

There have been no major movements in the M&A activity in Kuwait. In 2019 United Energy decided to acquire Kuwait Energy for up to $651 million. The deal transformed United Energy into a medium-size international oil company. The deal also gives them exposure to the Middle East and North Africa markets in addition to their operations in Iraq, Egypt, Yemen, and Oman that the company currently has. Some of the recent contracts issued by Kuwait Petroleum Corp include; Combined Group Contracting has secured a 60- month contract worth KWD41.9 million ($138.4 million) from Kuwait Oil Company (KOC), a subsidiary of Kuwait Petroleum Corporation (KPC), for the provision to perform field survey and site investigation, construction of flowline (Jurassic crude, source water well, and disposal lines) with associated works and other piping works comprising planning, procurement, the supply of material, supervision, fabrication, welding, inspection, testing, installation, along with all associated civil and mechanical works for the flowlines, gas, and crude export lines and for Jurassic Production Facility – 4 & 5Jurassic Production Facilities (JPF) located at North of Kuwait; Sinopec International Petroleum Engineering, a wholly-owned subsidiary of Sinopec Oil services, has secured a five-year contract worth $360 million from Kuwait Petroleum Corp (KPC) for the provision of 10 workover rigs for drilling operations in Kuwait. The contract has an option for a one-year extension.

What are the key categories of Kuwait’s crude oil and natural gas production?

By asset, Kuwait’s gross crude oil and condensate production is categorized into Greater Burgan, North Kuwait, West Kuwait, North Kuwait Jurassic, and North Kuwait Heavy Oil. Greater Burgan is the leading asset followed by North Kuwait, West Kuwait, North Kuwait Jurassic, and North Kuwait Heavy Oil. Kuwait’s marketed natural gas production is categorized into (by asset) Greater Burgan, North Kuwait Jurassic, and others.

Crude oil and natural gas production in Kuwait, by category

For more segment insights, download a free report sample

Which are the major companies in Kuwait’s exploration & production sector?

In 2020, the key company of Kuwait’s crude oil and condensate and natural gas production was Kuwait Petroleum Corp.

Market report scope

Scope

This report provides an overview of Kuwait’s exploration & production sector. The report includes:

• Kuwait’s oil and gas production outlook by assets terrain, and major companies.
• Key details of active and upcoming oil and gas assets in the country.
• Recently licensed blocks details, licensed blocks count by company, and latest discoveries.
• Latest mergers and acquisitions, and awarded contracts related to the E&P sector in the country.

Reasons to Buy

• Gain a strong understanding of Kuwait’s E&P sector.
• Facilitate decision-making based on strong historical and outlook of oil and gas production data, licensed blocks details, and discoveries.
• Assess your competitor’s production outlook and licensed blocks count in the country.
• Analyze the latest M&A landscape and awarded contracts related to the country’s E&P sector.