KUWAIT CITY, Jan 23: The Ministry of Oil on Thursday highlighted the pivotal role played by the Kuwait Oil Company (KOC) in advancing the oil sector through its ambitious strategies, which align with the latest global developments. The Ministry emphasized that KOC remains a crucial pillar for the development and prosperity of the Kuwaiti economy.

This statement was made by Sheikha Tamader Khaled Al-Ahmad Al-Sabah, the Director of Public Relations and Petroleum Media at the Ministry of Oil, during a discussion session titled "History of Kuwait Oil Company and its Pivotal Role." The session also featured Qutaiba Okasha, Head of the Strategic Planning Team at KOC.

Sheikha Tamader Al-Sabah noted that KOC celebrated its 90th anniversary on December 23, underscoring the company’s integral role in the modern Kuwaiti journey. She explained that KOC has been a key player in pivotal historical milestones, from the discovery of the first oil well in the Burgan field in 1938 to the export of Kuwait’s first oil shipment in 1946, as well as numerous achievements since then.

She further highlighted KOC’s commitment to digital transformation, enhancing operational efficiency, and prioritizing environmental sustainability. These efforts reflect KOC’s dedication to contributing to the "New Kuwait 2035" vision and strengthening Kuwait’s position as a global energy and technology hub.

Sheikha Tamader Al-Sabah expressed that KOC’s successes would not have been possible without the dedication of its employees, who are the foundation of the company. She reiterated the Ministry of Oil's commitment to supporting initiatives that enhance Kuwait's standing in the energy sector and contribute to the country's sustainable development.

In his presentation, Qutaiba Okasha provided an overview of KOC’s recent accomplishments, its 2040 strategy, digital transformation efforts, and five-year plan. He explained that KOC operates in two major production areas: South and East Kuwait, and North and West Kuwait. The company has recently improved its organizational structure to address challenges and increase production efficiency.

Okasha also highlighted KOC’s large-scale operations, including exploration, production, export, and offshore operations. He outlined the company’s infrastructure, such as gathering centers, gas booster stations, and water injection facilities that support production. KOC exports a range of oil products, including Kuwait Export Oil, Kuwait Light High-Quality Oil, and others, to various markets.

The company has achieved significant milestones in recent years, such as the first offshore oil discovery and drilling the first offshore well, "Nukhada-1." Additionally, KOC operated the heavy oil station in 2019 and successfully exported its first shipment of 500,000 barrels in 2020. Okasha also noted that KOC has made impressive progress in gas production, with a record production of 683 million cubic feet per day in November 2024, and a significant reduction in gas flaring, from 17 percent in 2006 to less than 0.5 percent today.

KOC has set ambitious long-term goals, including raising its production capacity to 4 million barrels per day by 2035, with KOC contributing 3.65 million barrels per day to this target. In the gas sector, the company plans to increase free gas production to 2 billion cubic feet per day by 2040, with KOC contributing 1.5 billion cubic feet per day to this target.

Okasha also discussed KOC’s energy transition strategy, which aims for carbon neutrality (Scope 1+2) by 2050. He emphasized that KOC will continue to operate responsibly as a hydrocarbon producer, minimizing carbon emissions, and exploring new energy solutions.

The Ministry’s five-year strategic plan includes increasing KOC’s production capacity to 3 million barrels per day and non-associated gas production to 900 million cubic feet per day by 2026/2027. Despite rising production costs, KOC’s efficiency remains one of the highest in the world. Okasha stressed that the company is actively working to control production costs by improving its organizational structure, investing in preventive maintenance, and utilizing advanced technologies like artificial lift pumps and digital applications to enhance productivity and reduce costs.