Global Energy Review
Kuwait 1
Oil production from Kuwait stood at 3.3 mn bpd in 1972. It is the government's aim to restore output to that level over the longer term. Output at the start of the last decade was artificially low owing to Kuwait's occupation by Iraq. Some fields were damaged during the Iraqi occupation and exploration did not resume until about 1994. Production recovered to nearly 1.2 mn bpd in 1992 and exceeded 2.0 mn bpd in 1993 and 1994. Almost 2 bn bbl were produced during this period of little or no new exploration, and an estimated further 1 bn bbl were lost as a result of oil wells blown up by retreating Iraqi soldiers in 1991, yet oil reserves were reported throughout at 96.5 bn bbl, which number is still quoted for 2003 (see below).
More than half the emirate's reserves are found in the Burgan field. Some 94.0 bn bbl are recorded as belonging to Kuwait and a further 2.5 bn bbl to Kuwait's half-share of the Neutral Zone. Two fields, Ratga and Abdali, which were formerly shared with Iraq were allocated to Kuwait in 1993 when the boundary between the two countries was redrawn.
In 1999, the government proposed to open five fields in the north of the country to foreign participation with the aim of doubling their output to 0.9 mn bpd. Four years later, the project is mired in controversy and no contracts have yet been awarded, following fierce criticism in the emirate's national assembly. In the meantime, a fire in the largest of the northern fields, Raudhatain, has cut capacity there.
About the time the government's plans for the northern fields were announced, Kuwait Petroleum Corporation (KPC) announced plans for production capacity to reach 2.5 mn bpd in 2000, 3.0 mn bpd in about 2005, and 3.5 mn bpd by 2010. At the beginning of 2004, capacity remains slightly below the level planned for 2000. There are also plans for a small increase in Neutral Zone production. Kuwait's NGL production is about 20,000 bpd and unlikely to rise by very much.
Production Outlook
Output capacity is unlikely to rise as much as planned. Continuing controversy over the northern fields could delay the expansion of other fields, including Minagish and Umm Gudair, which were also designated for foreign participation. Work on the main Burgan field could also be affected since the government appears to have thought of enlisting some foreign assistance there as well. Neutral Zone output is expected to remain between 0.6 mn bpd and 0.7 mn bpd between now and 2010.
Crude-oil production is forecast as follows:
| 2003 | 2.2 mn bpd |
| 2010 | 2.8 mn bpd |
Kuwait, Reserves & Production, 2003
| Reserves: | 96.5 bn bbl |
| Reserves remaining: | 120.6 years |
| Production capacity: | 2.40 mn bpd |
| OPEC Quota (Nov '03): | 1.97 mn bpd |
| Production: | 2.20 mn bpd |
| Consumption: | 0.20 mn bpd |
| Net trade: | 2.00 mn bpd |
| Peak output | 3.3 mn bpd |
| Peak year | 1972 |
Production 1991-2003
OET Archive
External links
- KPC [ http://www.kpc.com.kw/ ]
Notes:
1 Figures are for Kuwait plus half the Neutral Zone unless otherwise indicated.
