Oil and Gas market in Kuwait

Kuwait's has the world's sixth largest stated reserves of crude oil in the world, at 101.5b barrels. In 2022, Kuwait was the fourth-largest producer in OPEC, and the tenth-largest producer globally, at 2.7m bpd. Kuwait's hydrocarbons provide 50% of its GDP, with oil accounting for approximately 90% of export earnings and fiscal revenues.

The state-owned Kuwait Petroleum Corporation (KPC) is responsible for both the domestic oil and gas industry and the country's overseas hydrocarbons operations through its eight subsidiaries.

Kuwait is planning to increase its oil production capacity to 4.0m bpd by 2035 and gas capacity to 42.5m cmpd by 2040. KPC is targeting net zero by 2050, offering opportunities in the energy transition.

Key opportunities for Canadian oil and gas companies in Kuwait:

• Gas and chemical enhanced oil recovery
• Enhancing reservoir pressure and providing solutions to the increasing produced water.
• Technologies to reduce cost of development and production of heavy oil
• Technologies and solutions to develop gas reservoirs
• Partnerships in the oil & gas and petrochemical industries

Notable challenges for Canadian oil and gas companies in Kuwait:

• Get prequalified with the relevant KPC subsidiary
• Compete on price with other prequalified companies
• Requires long term commitment to the Kuwaiti market and patience

Business landscape:

• All activities related to oil exploration, drilling, production, and export are fully controlled by the Government
• The Kuwaiti Constitution does not allow foreign exploration companies to share natural resources
• Kuwait has well established oilfield infrastructure
• Kuwait is a safe and stable country: S&P Global Ratings affirms Kuwait at A+; outlook stable
• Kuwait barrel of oil has one of the lowest carbon intensity and production cost in the world which sets it to be the surviving barrel through the energy transition

Upcoming projects and events

• Offshore development and production
• Development of gas resources which are very deep with HPHT
• Development and production of heavy oil reservoirs
• Carbon capture, utilization, and storage (CCUS)

Summary

Kuwait plans to invest US$48 billion in exploration and drilling over the next five years to expand its oil production from existing and mature oil fields. Additionally, it intends to continue the development of its unconventional resources including heavy oil fields, unassociated gas reserves, and offshore exploration.

Kuwait's Energy Transition Strategy 2050 includes decarbonization focused on efficiency and electrification; installation of renewable energy (mainly from PV and CSP); carbon capture, utilization, and storage (CCUS); reforestation; and the improvement of energy efficiency.

Canadian companies with proven and competitive technologies to increase resource recovery or contribute to the energy transition are well positioned to offer their products and services to Kuwait.

For more information about the oil and gas market in Kuwait, please contact kuwait-td@international.gc.ca