According to MEED magazine estimates the value of the existing oil projects in Kuwait has dropped to only 10% from the January 1, 2019, which at that time the total value of the projects was in the pre-execution or under implementation phase.
A local Arabic daily quoting MEED Projects estimated the value of projects then at $61 billion, but that number has shrunk to just 6.3 billion on August 2, 2022.
The magazine considered that the activity of oil projects in Kuwait remains very low compared to its historical levels despite the global rise in oil prices in 2022, pointing out that informed sources in Kuwait said that the Kuwait Oil Company is moving forward with design work for two central assembly projects in the east of the country, expecting the completion of engineering contract tenders and procurement and construction in mid-2023, after bids were likely to be submitted in the second half of 2022.
The magazine explained that the first project includes a separation collection center facility (SGC-I) with a water injection facility, and the second project includes a separation collection center facility (SGC-III) with a water injection facility and noted that the past few years have seen only a few announcements of new projects in the country’s oil and gas sector, attributing the reason as the impact of Covid-19, the global transformation in energy and the problems caused by the internal political situation.
The magazine added that the decision-making processes, including reforms to revive the Kuwaiti economy, stopped with the opposition in the National Assembly obstructing government decisions amid political divisions in the country that increased during the past year.
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