Carefully sequenced investments for maximum returns

Kuwait

Sheikh Nawaf S. Al Sabah, CEO of Kuwait Petroleum Corporation (KPC), talks to The Energy Year about the company’s strategy to sustain production capacity above 3 million bopd and the new developments that are giving the most momentum to Kuwait’s upstream and downstream sectors. KPC is Kuwait’s national oil company.

This interview is featured in The Energy Year Kuwait 2025

What is KPC’s strategy to sustain production capacity above 3 million bopd and support new growth while keeping capital use efficient?
Our strategy is to invest up to USD 50 billion over five years to boost and sustain oil production capacity above 3 million bopd. This investment is carefully sequenced to maximise returns and manage risk, focusing on long-lead upstream projects.
As part of our long-term vision to position KPC as a global leader in the hydrocarbons sector, we are proactively evaluating a diverse set of financing strategies that not only reinforce our capital strength but also enable the delivery of high-impact strategic projects.

Offshore E&P activity is accelerating, with major discoveries and new exploration wells approved. What opportunities and challenges do these developments present for KPC?
Kuwait’s offshore frontier is increasingly vital for our long-term production and gas supply balance. The Al Nokhatha find, announced in 2024, is one of Kuwait’s largest discoveries, estimated at 3.2 billion boe.
This was followed by the Al Julaia discovery in January 2025 with around 950 million boe, and the Jazah field further confirmed the geological potential of our offshore blocks with estimated reserves of 350 million boe – 28.3 bcm (1 tcf) of gas and 120 million barrels of condensate.
These discoveries expand our domestic resource base and provide feedstock flexibility for downstream and petrochemicals integration. They also support Kuwait’s decarbonisation agenda by increasing domestic gas availability, reducing reliance on imported fuels and freeing crude for higher-value exports.
The main challenge is executing large-scale offshore projects efficiently, which we address by leveraging digital subsurface modelling, remote operations and AI-based drilling analytics to accelerate development while containing costs and minimising environmental impact.

KOC is increasing its rig count and has started commercial production at the Mutraba field. What do these developments mean for Kuwait’s energy ecosystem?
The Mutraba field marks the next phase of KOC’s resource expansion programme, and its start-up demonstrates the significant efforts made to develop remote and technically challenging fields. Commercial production from Mutraba officially began in June 2025, following the tie-in of wells to production facilities. It is expected to reach production of 80,000–120,000 barrels of light oil.
As we increase our rig count, Mutraba sustains domestic output cost-effectively and provides flexibility for both export and local refinery requirements. It is also proven ground for new drilling and reservoir management technologies. Projects such as Mutraba, Al Nokhatha, Al Julaia and Jazah reinforce Kuwait’s robust, technologically advanced upstream sector, in full alignment with national energy security and diversification goals.

PIC recently acquired a stake in Wanhua Chemical’s Yantai complex. How does this advance Kuwait’s downstream strategy, and what role will PIC play in KPC’s long-term objectives in high-growth markets?
PIC’s partnership with Wanhua Chemical Group is a milestone in Kuwait’s downstream globalisation journey. The USD 638-million investment and new MoU deepen our presence in China’s dynamic petrochemicals market. This partnership secures direct exposure to advanced materials, technology transfer and high-value products that complement our refining network. It also ensures offtake channels for Kuwaiti hydrocarbons in a structurally growing region.
PIC’s international expansion supports KPC’s strategy of integrating refining and petrochemicals to capture value across the full energy chain. Our downstream vision is to transition from commodity fuels to performance chemicals and low-carbon products, leveraging partnerships that enhance competitiveness and market reach.

What key strategies is KPC pursuing to build a more sustainable energy industry, and how do initiatives such as hydrogen, emissions reduction, and cleaner fuels support its long-term vision?
Our decarbonisation strategy is comprehensive and data-driven, anchored in Kuwait’s Energy Transition Roadmap. We have committed to net-zero Scope 1 and Scope 2 emissions by 2050, with intermediate milestones and transparent reporting.
We have achieved world-class results in flaring reduction, cutting routine flaring from 17% in 2005 to under 1% today, preventing millions of tonnes of carbon dioxide emissions annually. Al Zour Refinery and the refineries modernised through the Clean Fuel Project now produce Euro 5 low-sulphur fuels.
We are advancing CCUS pilots and evaluating large-scale deployment, integrating these projects with new hydrogen production, both blue and green. Kuwait aims to produce up to 1 million tonnes per year of green hydrogen by 2050. Kuwaiti crude is distinguished by its low carbon intensity, providing a competitive advantage as markets prioritise low-carbon barrels.
All these elements form a coherent path. We remain a reliable oil supplier while methodically lowering emissions and preparing for future energy systems.

What is KPC’s outlook on digital transformation, and what are the most significant technologies KPC is introducing into its operations?
Digital transformation is now an operational necessity. We are embedding AI, advanced analytics and automation into every stage of our value chain. The launch of the AI Innovation Center in August 2025, in partnership with Microsoft, Halliburton and Ghaia.ai, marks a pivotal milestone.
Supported by KDIPA [Kuwait Direct Investment Promotion Authority], the centre harnesses agentic AI – digital systems capable of learning and acting in real time – to transform drilling operations, optimise field performance and enhance decision making speed.
The G Agent drilling project applies predictive algorithms to optimise well planning and drilling speed, shortening cycles and improving precision. Early trials have shown measurable reductions in drilling time and cost per well. AI and digitalisation make our operations safer, faster and smarter, strengthening Kuwait’s position as a reliable energy supplier in a data-driven world. Technology must always be guided by human judgment.

KPC subsidiaries are merging. What is the strategy behind this restructuring, and how will it improve capital allocation and governance?
The objective is a leaner, integrated KPC group with clearer accountability, faster decisions, unified procurement and shared-service synergies across refining, petrochemicals and marketing. Through these mergers, we aim to enhance efficiency and unlock cost synergies from integration, together with revenue enhancement through value chain optimisation.
The benefits include capital-allocation clarity, end-to-end value-chain alignment and improved execution on large, complex projects – all while protecting people, preserving institutional knowledge and maintaining service continuity.

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