Kuwait, a prominent Middle Eastern oil producer, announced on Sunday a “substantial” discovery of oil and gas in an offshore field situated east of Failaka Island.
3.2 Billion Barrels of Oil Equivalent
Preliminary assessments indicate that the reserves at the Al-Noukhitha offshore field could hold approximately 3.2 billion barrels of oil equivalent of light oil and gas.
This revelation was shared by the Kuwait Petroleum Corporation during a meeting with the Emir of Kuwait, Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah.
Breakdown of Reserves
The reserves consist of an estimated 2.1 billion barrels of light oil and 5.1 trillion standard cubic feet of natural gas, amounting to a total of 3.2 billion barrels of oil equivalent, according to a statement by the Kuwait Oil Company (KOC) to the Kuwaiti news agency KUNA.
Initial estimations suggest the Al-Noukhitha field has “significant potential” to uncover additional resources in various layers and reservoirs within the field, as indicated by KOC.
Expeditious Extraction Plans
Kuwait intends to formulate plans to commence extracting resources from the field promptly, the company stated.
Kuwait, which initiated crude oil exports in 1946, currently produces around 2.4 million barrels per day (bpd) of crude. This output is in line with the production caps agreed upon with its partners in the OPEC+ deal, which includes OPEC members and non-OPEC producers led by Russia.
Kuwait’s Role in OPEC and Production Goals
As a founding member of OPEC, Kuwait ranks as the cartel’s fifth-largest producer, following Saudi Arabia, Iraq, Iran, and the United Arab Emirates (UAE).
Kuwait aims to elevate its oil production capacity to 4 million bpd by 2035, a significant increase from its current capacity of just over 3 million bpd, as stated by Kuwait Petroleum Corporation’s chief executive, Sheikh Nawaf Al Sabah, earlier this year.
Refining Capacity and Export Strategy
Kuwait is also focused on enhancing its domestic capacity to process heavier grades of crude oil, allowing for increased exports of more valuable lighter crudes.
Last year, Kuwait began reducing its sour crude exports as its new 615,000-barrels-per-day Al-Zour refinery commenced ramping up operations.