Kuwait will be able to unlock some 500,000 b/d of potential output capacity in the next two years, the head of its state oil company said. This announcement was made seeking to allay concerns over the firm’s own admission that the ability to pump crude has declined in the past three years. Earlier this month, a report said that Kuwait Oil Co.’s maximum sustainable production capacity had fallen to 2.579 million b/d as of March 31, down 572,000 b/d from 2018. To achieve the 500,000 b/d, a drilling program of 500 wells annually, construction of two gathering facilities and water injection facilities, and other infrastructure projects are currently underway. In September, Kuwait announced plans to invest $6.1 billion on exploration over the next five years, but analysts have cast doubts on this figure due to the oil sector being hampered by political instability. Kuwait hopes to have capacity up to 4 million b/d by 2035 – 2040.
- Kuwait says drilling, facilities work underway to reverse declining oil production capacity