Kuwait has announced that it is planning to raise crude oil production capacity to 4 million barrels per day (mbpd) from its current level of 3 mbpd, an increase of 33%. Kuwait wants to maintain its position as one of the largest exporters of crude oil and is currently pumping billion of dollars in to development projects in order to expand the export capacity of the country.

KOC reveals long-term strategy

“The state Kuwaiti Oil Company (KOC) has already raised capacity to two million bpd after Iraqi forces were ejected out of the emirate in 1991 and to three million bpd at present,” reported Zawya, quoting Fawaz Hammadi, the public relations team leader at KOC. The company wants to maintain a level of 4 mbpd in the years to come.

“KOC has completed projects to expand the capacity of its export terminals to 3.2 million bpd and that their quay handling capacity has risen to 1700 tankers a year. As for our oil producing wells, we now have 2157 wells, one of the highest numbers of producing wells in oil countries,” Hammadi elaborated.

The KOC official also added that the target is to increase gas production to one billion cubic feet per day (bcf) by 2020 and to further expand this output to three bcf per day by 2030.

Kuwait fairly rich in hydrocarbons

Kuwait, as a key member of the Organization of Petroleum Exporting Countries (OPEC), currently supplies nearly three mbpd of crude oil while the exports of the country stand at two mbpd. The production of Kuwait has grown from 2.5 mbpd in 2007 to 3 mbpd in October 2013.

Figure 1: Monthly production of crude oil in Kuwait between 2007 and 2013

Source: Bloomberg
Source: Bloomberg

Kuwait accounts for 101 billion barrels of proven crude oil reserves and three trillion cubic meters of natural gas.