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The Kuwait Oil Company leases rigs from international and local companies, with contracts lasting five to six years and options for renewal.
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The value of cumulative contracts for drilling operations in Kuwait has significantly increased, rising from KD 2.1 billion to KD 2.85 billion, reflecting an annual growth of over 35%.
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Kuwait Oil Company has intensified its exploration and production efforts, resulting in the drilling of 461 development and exploratory oil and gas wells and the repair of 1,892 wells.
For the first time in years, Kuwait has seen a record increase in operating drilling rigs, now totaling thirty six with the Kuwait Oil Company (KOC). This includes a variety of developmental, exploratory, and production drilling rigs.
Informed sources confirmed to Al-Anba newspaper that the Kuwait Oil Company relies on leasing many rigs from both international and local companies. These leasing contracts typically last between five and six years, with the possibility of renewal after the initial term. They also noted that the total value of the company’s drilling contracts reached approximately KD 2.85 billion by March 31, 2024.
In recent years, the value of cumulative contracts for drilling operations has significantly increased, rising from KD 2.1 billion to KD 2.85 billion, reflecting an annual growth of over 35%. This growth has expanded the scope of deep and marine drilling, enhancing the company’s exploration capabilities.
Meanwhile, Kuwait Oil Company has intensified its exploration and production efforts, resulting in the drilling of 461 development and exploratory oil and gas wells and the repair of 1,892 wells.
These activities are part of the company’s development programs, which have led to new oil and gas discoveries, including those in the Adal and Shaham fields. The company also began drilling the second offshore exploratory well, ‘Julaia 2,’ which is still ongoing.
Regarding deep well drilling in Jurassic reservoirs, the company drilled forty wells to meet its targets for oil and non-associated gas production and conducted fourteen repair operations for wells producing non-associated gas.
Kuwait Oil Company aims to continuously improve drilling operations through an intensive program designed to enhance the development of newly discovered oil reservoirs and increase the productivity of mature fields. This program is part of the company’s strategy to ensure long-term production sustainability and maximize the utilization of oil resources.
The company emphasized its commitment to using the latest technologies and equipment in exploration, drilling, and production, which helps to enhance product quality and improve production efficiency.
The expansion of KOC’s drilling rigs aligns with the state’s vision to boost production, as the oil and gas sector is the backbone of the Kuwaiti economy, accounting for over 90% of state revenues. The goal is to increase production and diversify oil revenue sources by developing new reservoirs and enhancing the productivity of existing fields.
Kuwait hits 2.415 million barrels in July, ranks fifth in OPEC oil production
The Organization of the Petroleum Exporting Countries (OPEC) reported that Kuwait’s oil production reached about 2.415 million barrels per day by the end of July, down from 2.423 million barrels per day in June 2024, according to the organization’s monthly report based on secondary sources.
Kuwait ranked fifth among OPEC members in production volume, with Saudi Arabia leading at 9.015 million barrels per day, followed by Iraq with 4.251 million barrels, Iran with 3.271 million barrels, and the United Arab Emirates with 2.952 million barrels per day.
In addition to Kuwait, production in Libya and Congo decreased last month by about 19,000 barrels per day and 6,000 barrels per day, respectively.
Conversely, production in eight countries, led by Saudi Arabia, increased by 97,000 barrels per day, while Gabon’s production remained stable at 211,000 barrels per day.
Overall, according to secondary sources, OPEC’s production rose by approximately 185,000 barrels per day to 26.746 million barrels per day in July 2024, up from 26.562 million barrels per day in June.
OPEC slashes 2024 global oil demand growth forecast to 2.1 million barrels per day
OPEC’s July report revealed that the organization has maintained its global economic growth forecast at 2.9% for this year and next, unchanged from previous estimates.
Regarding global oil demand growth, OPEC slightly reduced its forecast for this year by 135,000 barrels per day, bringing it to 2.1 million barrels per day.
The report also notes that expectations for oil demand growth remain above pre-COVID-19 rates, with a projected increase of 1.4 million barrels per day.
OPEC also slightly reduced its forecast for oil demand growth next year by 65,000 barrels per day, bringing it to 1.8 million barrels per day.
The organization maintained its expectations for growth in supplies from outside OPEC at 1.2 million barrels per day this year and 1.1 million barrels per day next year, supported by production from the United States, Canada, and Brazil.
