KUWAIT CITY, Jul 19: The CEO of Kuwait Petroleum Corporation (KPC), Sheikh Nawaf Al-Saud, announced that the engineering studies for the Al Durra gas field will be updated by the end of this summer, with actual work on the field set to commence before the end of 2024.

In a statement to Reuters, Sheikh Nawaf stated, "We are still on the schedule drawn for it (the field). We will finish updating the engineering studies and then start the drilling procedures and construction of the facilities."

He also outlined Kuwait's plans to achieve a production capacity of 3.2 million barrels of oil per day by the end of 2024, with an increase to 4 million barrels by 2035. To support these operations, KPC plans to invest 7 billion dinars ($22.92 billion) over the next five years.

Sheikh Nawaf emphasized KPC's strategy for financing its projects, which includes a mix of self-financing, borrowing, and partnerships with other entities.

In related news, Sheikh Nawaf confirmed that KPC is conducting exploration operations in two offshore fields following the discovery of 3.2 billion barrels of oil equivalent in the Al-Nukhdha field. He mentioned in an interview with CNBC Arabia that although offshore production typically takes seven years, production from Al-Nukhdha might start sooner. This discovery is crucial for Kuwait's strategy to produce 4 million barrels of oil by 2035.

Sheikh Nawaf expressed pride in the Al-Nukhdha discovery, highlighting that KPC has been searching for oil and gas in the adjacent submerged area for over six decades. The seismic survey identified 6 out of 16 areas for drilling offshore in Kuwait.

The first exploratory well, “Nokhda 1,” revealed a significant oil and gas reservoir estimated at 3.2 billion barrels of oil equivalent, comprising two-thirds light oil and one-third gas. The discovered hydrocarbons are noted for their excellent international specifications, being low in H2S and carbon dioxide.

Regarding the timeline for oil production from “Nokhda 1,” Sheikh Nawaf explained that if the reservoir were on dry land, production could start quickly due to existing infrastructure. However, as the first offshore well in Kuwait, it requires building a platform and developing necessary pipelines, which typically takes 6-7 years. Nevertheless, the relatively shallow depth of the well might shorten this period.

Sheikh Nawaf highlighted the significance of the offshore sector, which is almost equal to one-third of Kuwait's land area, suggesting potential extensions of geological formations. Drilling has begun in the "Nukhadha" field and another in "Julaia."

On production costs, Sheikh Nawaf noted that producing a barrel of Kuwaiti oil on land is among the lowest globally, costing less than $10 per barrel. Offshore production will necessitate more equipment and infrastructure, leading to higher initial capital costs but comparable long-term operating costs.

Regarding KPC's international relations, Sheikh Nawaf emphasized the long-standing partnerships with clients abroad. He mentioned the historical significance of KPC's office in Japan, opened before Kuwait's independence, and the enduring relationships with partners. He highlighted a new contract in China to supply a major client with 10% of production for the next decade, indicating sustained demand for Kuwaiti oil despite global energy transformations. Sheikh Nawaf reiterated Kuwait's role as a reliable supplier with low carbon dioxide emissions and competitive costs, ensuring its position as a key player in the global oil market.