Kuwait Oil Company (KOC) has announced the addition of 90,000 barrels of heavy crude to its production, with more to come. Last week, the company revealed the discovery of heavy oil in the northern part of Kuwait, specifically in the Al-Ratqa field. It anticipates that production will exceed 100,000 barrels per day in the second half of next year. It is a heavy type of crude, with an API gravity of 17, but Kuwait has the necessary infrastructure to handle and process this type of oil.

The Al-Zour Refinery is equipped to break down heavy oil into lighter products, and the Shuaiba Refinery, built in 1967, was the first of its kind among OPEC countries to convert heavy oil into lighter products. This adds value and profit over crude oil. Kuwait has traditionally produced a single type of crude, called Kuwait Export Crude (KEC). Our six refineries are specifically designed to process KEC, but they are also capable of handling other types of crude without any limitations.

Kamel Al-Harami

With this discovery, Kuwait’s production is expected to reach three million barrels per day in the second half of next year. We must notify OPEC about this new production level so that it can be officially recorded and registered. Following this, Kuwait will seek an increase in its production quota, similar to the recent adjustments made by other OPEC members such as Iraq and Abu Dhabi, to obtain organizational consensus.

Kuwait’s oil strategy is unique, as it started with a 40 percent ownership stake based on a belief in the value-added benefits. By investing in refining and benefiting from the various products it generates, Kuwait has created the financial advantages needed for its oil industry. With top-notch management focused on maximizing every cent of refinery operations, the Shuaiba Refinery was established as a testament to this vision.

There is no doubt that Kuwait has a deep commitment to the refining industry, consistently seeking investments both locally and internationally. It has become the bread and butter of Kuwait’s oil sector, and this strategy is now well understood. The recent discovery of heavy oil is an addition to the reserves already found on our island, which contribute more crude to our oil reserves. Fortunately, our refineries are well-equipped to handle this new resource.

Kuwait’s vision for refining is not new. It dates back to our great-grandfathers, who invested their private funds into these ventures, at a time when international oil majors doubted Kuwait’s ability to succeed in refining due to its lack of experience. Today, Kuwait operates six refineries globally, which is a remarkable achievement.

Well done, Kuwait, on your new heavy oil discovery!