26
OPEC bulletin 2–3/14
N e w s l i n e
Kuwait’s oil sector forecast to
expand by four per cent in 2014
Kuwait’s efforts to develop its heavy oil capacity form a
vital part of the country’splan to increase itsoverall crude
oil output capability in the next several years, according
to a report by the Kuwait Finance House (KFH).
Quoted by the Kuwait news agency,
Kuna
, it said that
the country’s overall plan entailed boosting total oil pro-
duction capacity to 4.0 million barrels/day by 2020 from
current output of around 3.0m b/d.
But with the heavy oil operations, some 60,000 b/d
of extra capacitywill be addedby 2017 through the Ratqa
engineering, procurementandconstruction tender, which
represents the first phase of such developments.
The scheme will entail the construction of the pro-
duction facility, as well as pipelines, steam-generation
facilities and an oil export facility.
The report noted that the second phase was slated
to up production by an additional 120,000 b/d by 2020
and 270,000 b/d by 2030.
Around 260 wells are planned to be drilled in fiscal
2013–14 as part of plans to drill around 1,500 wells in
the first phase of the project, said the report.
It pointed out that Kuwait’s oil sector, which would
remain a vital driver of the country’s economic growth,
was expected to expand by four per cent in 2014.
It noted that as theworld’seighth-largest oil producer
and accounting for over three per cent of global produc-
tion, oil income comprised over 90 per cent of the coun-
try’sbudget revenue anddomesticmerchandise exports.
Proven oil reserves
The report stated that the country was also home to the
seventh-largest proven oil reserves in the world at 101.5
billion barrels, while a further 5bn b was located in the
Neutral Zone field shared with fellow OPEC Member,
Saudi Arabia.
It said that as a Founder Member of OPEC, Kuwait
was the world’s 10
th
largest oil producer in 2012 and
despite having the second-smallest land area among
OPEC Member Countries, it exported the third-largest
volume of oil.
The report quoted comments by the United States
Energy Information Administration (EIA) as
predicting that Kuwait would remain as one
of the world’s top oil producers as the country
pushed towards a production capacity target
of 4m b/d by 2020.
Itdisclosed thatinDecember 2013, Kuwait’s
oil production dropped slightly to 2.90mb/d—
the third straightmonthof being below3mb/d.
However, output still remained higher than in
the previous year when the production average
stood at 2.79m b/d.
“The slight drop in Kuwait’s oil production
is in line with the slowdown in OPEC’s recent
oil output,” it explained.
According to OPEC’s
Monthly Oil Market
Report
for January, the Organization’s total
oil production in December stood at 29.44m
b/d, the lowest monthly figure for some con-
siderable time and well below the 30m b/d
targeted by the Organization under its policy
agreement.
Shutterstock
Kuwait City by night.
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