|

Kuwait targets 4million barrels by 2020

State-run Kuwait Oil Company (KOC) is planning to develop new oilfields as part of the government’s plan to produce 4 million barrels of oil per day (bpd) by 2020. Several oilfields have been earmarked for development including the Burgan field; the world’s second largest oilfield. Kuwait currently produces around 3 million barrels per day.

kuwait-barils
The Chief Executive of KOC, Hashem Hashem said five international major oil companies namely Britain’s BP, France’s Total , Royal Dutch Shell, ExxonMobil and Chevron have been contacted “to show interest” in enhancing the technical service agreement for the northern Ratqa heavy oilfield. Hashem said they want to conclude the contract before mid-next year.

Service contracts are confined within the limits of Kuwait’s constitution which bans foreign firms from oil production in the Gulf OPEC crude exporter. Hashem said the bid will be a direct tender award but the companies will be forced to compete among themselves for the deal. He also gave assurances that the procedures are in accordance with the constitution.

Kuwait will need to produce an additional 650,000 barrels to its production before 2020 if it is to achieve its goal.

However, the developments of the oil fields will be done in stages. Heavy oil will be exploited first before focusing on northern and south-eastern Kuwait. It is the first time KOC will develop such a big heavy oil reservoir and the plan is to produce 60,000 bpd from Ratqa, close to the Iraqi border, by 2018-2019 in the first phase, and then ramp it up to 120,000 bpd by 2025, Hashem said.

One of the major challenges will be political opposition. The parliament will be interested in assuring that the deal was concluded as dictated by the law.

Short URL: https://me-confidential.com/?p=8608

Posted by on Oct 3 2014. Filed under Gulf News, Headlines. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Recently Commented

  • Badia Ouadi: What about the 20/20 vision for tourism which HRH has endorsed Himself? There are hundreds of western...
  • Achraf: Wise words from a wise king. And dont forget to work hand in hand. Stability Will be à important factor
  • Mehmet: Erdogan and the Turkish government become more pathetic and miserable and unrealistic day by day.
  • Telh: Israel should take a leaf out of their book.
  • Gemma: Well on this task Jordan gets a big fat F! We need to find a more competent custodian before Al Aqsa is lost...