Kuwait plans to raise oil production capacity by 1.45 million b/d by 2035

Kuwait plans to ramp up its oil production capacity to 4 million b/d by 2035, from the current capacity of 2.55 million b/d.

PHOTO: Oil pump jack and oil barrels with Kuwait flag. Getty Images

Kuwait’s state-owned Kuwait Petroleum Corporation (KPC) has updated its 2040 roadmap to boost its fossil fuel production capacity and meet global oil demand.

“Because oil will continue to dominate the energy mix, and the energy transition to renewable and alternative energy sources will be gradual, Kuwait Petroleum Corporation has updated its strategic directions in exploration, production, refining, and petrochemicals domestically and internationally,” said KPC’s chief executive Shaikh Nawaf S. Al-Sabah at a recent press conference.

KPC plans to increase its oil production capacity to 4 million b/d by 2035 and maintain it till 2040, according to the latest announcement.

The OPEC member’s crude oil production capacity stood at 2.55 million b/d in August, according to the International Energy Agency’s (IEA) September oil market report.

“Kuwaiti oil stands out as having lower production costs and the lowest carbon intensity compared to other global oils. We are committed to the sustainable management of our hydrocarbon resources, and we believe that the last barrel of oil on Earth will be produced from our region,” Nawaf added.

KPC has also shared its ambition to continue exporting oil to the European market as well as to “expand in promising high-growth markets” by 2040.

Meanwhile, KPC subsidiary Kuwait Oil Company's chief executive Ahmed Jaber Al-Eidan expects the nation’s oil production capacity to surge to 3.2 million b/d by 2025-26, according to a Reuters report.

Kuwait's decision follows recent announcements from its OPEC+ counterparts Saudi Arabia and Russia to extend their voluntary production cuts. Last week, Saudi Arabia announced to prolong its 1 million b/d production cut until the end of the year. Russia pledged to extend its 300,000 b/d production cut.

The reduction of 1.3 million b/d of oil from the global market has triggered concerns about supply tightening, driving oil prices higher in recent days. Amid these concerns, other OPEC producers such as Iran, Venezuela and Kuwait have come forward to ramp up their production capacities to meet the shortfall in the market.

By Konica Bhatt

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