The Kuwait Petroleum Corporation (KPC) announced plans to invest approximately 10 billion dinars ($33 billion) over the next five years to enhance its oil production capacity. This ambitious investment reflects KPC’s confidence in sustained global demand for oil over the coming decades, as reported by Bloomberg.
In an interview, KPC’s Chief Executive Officer, H. E. Sheikh Nawaf Al-Saud Al-Sabah stated that they are looking to make huge investments, not just to maintain production capacity, but ultimately to grow as their strategy calls for.
The spending by Kuwait Petroleum Corporation (KPC) is part of a larger, 20 billion dinar investment program that commenced in April. This comprehensive initiative spans various sectors, from upstream operations to petrochemicals. The company’s exploration and production department aims to reach a capacity of 3.2 million barrels per day by next year, with plans to increase this to 4 million barrels per day by 2035.
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According to KPC’s CEO, Kuwait ranks among the world’s top 10 oil producers, currently producing just under 2.5 million barrels per day, placing it ahead of other OPEC members like Nigeria and Libya. As oil fields in many countries experience decline, there is expected to be an increasing demand for nations capable of providing stable and reliable output.
The CEO added that there is a need to replace at least three million barrels per day of production capacity annually from existing fields around the world, which means producing a new Kuwait every year.
Furthermore, the CEO continued that he is looking for where the cheapest money is going to come from. If it comes from a pipeline liquefaction deal, which is open to local and foreign investors – like what ADNOC and Aramco have done recently, then he will go for it. Any such deal is likely to be done through leaseback.
Considering the future, the CEO explained that ending fossil fuel production without an abundant and reliable alternative is like ‘inviting humanity to jump out of a plane and then try to invent a parachute on the way down.’
On a concluding note, the CEO emphasized that in order to achieve efficiency; KPC will merge some units over a period of two years. The exploration and drilling divisions will be merged, along with two companies in the refining and export business. A new fuel trading unit, based in Dubai, will be operational in the first half of 2025.
Source: Al Qabas
