KUWAIT CITY, Jan 21: The CEO of Kuwait Petroleum Corporation (KPC) Sheikh Nawaf Al-Saud Al-Sabah says Kuwait is one of the most important oil producers in the world, and the new offshore oil discovery in the Julaia field will improve Kuwait’s position and value in the global energy sector. Sheikh Nawaf Saud Al-Sabah affirmed that there would be no substitute to oil as an energy resource in the near future and the situation would remain unchanged for decades to come. Sheikh Nawaf Saud was speaking to journalists during the three-day Regional Clean Sea Organization (RECSO) Oil Spills Conference, themed “sustainably clean seas.”

In statements issued to the media during the opening of the conference and exhibition for oil spills, which was held under the theme “Clean Sustainable Seas”, Al-Saud stressed that many refineries around the world, particularly in East Asia, prefer Kuwaiti oil, which affirms the global confidence in Kuwaiti oil and boosts demand for it for decades to come. He said, “Kuwait produces one billion barrels of oil annually. The new oil discoveries contribute to increasing the country’s strategic reserves. Kuwait has completed the engineering studies for the Durra gas field, and the development plan for the field is proceeding according to schedule, with full agreement and coordination with partners in Saudi Arabia. The new explorations are unrelated to the Durra field. The Jalaa offshore field is a new discovery and represents the second offshore find. This field is significant due to the presence of reservoirs that highlight its global importance. Kuwait will begin exploration operations in marine areas, marking a major milestone, as these operations come more than 85 years after the discovery of oil in land areas.” Regarding Kuwait’s target production capacity as of the end of 2024, Al-Saud said Kuwait’s production capacity has already surpassed three million barrels per day and the country is progressing according to its production plans. He affirmed that KPC is focused on increasing Kuwait’s production capacity, revealing that there is a strategic plan in place to reach four million barrels per day by 2035.

Al-Saud highlighted Kuwait’s great interest in environmental aspects. He explained that the country has developed a long-term, integrated plan for monitoring and follow- up. This plan aims to ensure the efficient implementation of an integrated management program for coastal areas, with the goal of protecting the marine environment and supporting the rehabilitation of its ecosystem. Meanwhile, the CEO of Kuwait Oil Company (KOC) Ahmad Al-Eidan expressed his great appreciation for the recent announcement of the second marine discovery in the Julaia field. He explained that oil discoveries are not always guaranteed successes, as is the case worldwide. KOC developed the exploration program for the marine area, which spans about 6,000 kilometers, excluding Al-Jun, and the goal was to identify 16 to 17 potential oil sites in the area. The company’s success was refl ected in the discovery of the first two wells out of the 17 targeted wells, which is considered a huge achievement, especially since the success rate of exploration typically hovers around 20 percent. However, KOC exceeded expectations and succeeded in discovering oil in the first two marine wells. This achievement has fueled further ambition to continue exploring until the company reaches 100 percent success. It is important to differentiate between production capacity and actual production. Production capacity refers to what Kuwait can produce daily, while actual production is determined by OPEC plus based on Kuwait’s share.

The strategy of KPC is to produce 3.65 million barrels per day by 2035 and to maintain that level for KOC, with an additional 350,000 barrels allocated to Kuwait Gulf Oil Company. Exploration efforts are aimed at maximizing reserves and sustaining production. Therefore, any new discovery will naturally increase production capacity. Al-Eidan revealed that Halliburton, which receives KD 180 million for drilling six wells, will be compensated through these oil discoveries, and the returns from them will be great. Furthermore, the CEO of KPC Sheikh Nawaf Al- Saud Al-Sabah delivered a speech at the RECSO conference on behalf of the Minister of Oil Tariq Al- Roumi in which he stated that Kuwait has developed a comprehensive long-term plan to ensure the efficient implementation of its integrated coastal zone management program.

By Najeh Bilal
Al-Seyassah/Arab Times Staff and Agencies