Production priorities: Kuwait’s KPC on energy security

Kuwait

Shaikh Nawaf S. Al Sabah, deputy chairman and CEO of Kuwait Petroleum Corporation (KPC), talks to The Energy Year about the company’s key role in satisfying domestic and international energy demand and the role of renewables in its ongoing commitment to fostering economic development in Kuwait. KPC is Kuwait’s national oil company.

How is Kuwait positioned to supply hydrocarbons to the world?
Kuwait is strategically positioned to solidify its status as a reliable hydrocarbons supplier amidst the projected 50% increase in global energy demand between 2023 and 2050.
Kuwait’s substantial reserves and strategic investments in production capacity position the nation well to meet rising demand while maintaining spare capacity to address potential demand shocks. This commitment ensures stability in global energy markets and reinforces Kuwait’s reputation as a dependable supplier.

KPC aims to invest USD 10 billion a year over the next five years to lift production capacity to about 3.2 million bpd. What would you identify as the main assets and most pressing priorities to meet that target?
KPC’s primary assets include its vast reserves, robust infrastructure, skilled workforce and strategic partnerships. To achieve our production goal, our main priorities include investing in exploration and development projects, optimising existing assets and deploying innovative technologies to enhance recovery rates and operational efficiency. These strategic initiatives are essential for meeting production targets and ensuring sustainable growth.

What specific plans does KPC have to boost its proven reserves and stimulate production via innovative recovery techniques?
KPC has devised comprehensive plans to address the challenge of adding proven oil and gas reserves while overcoming the obstacles posed by ageing and depleting oilfields.
Our strategy involves aggressive exploration efforts domestically and internationally, coupled with the adoption of advanced recovery techniques. Additionally, we are investing in infrastructure upgrades, reservoir management strategies and technological innovations to maximise recovery rates and extend field life. These initiatives are crucial for sustaining production levels and securing Kuwait’s long-term energy future.

Can you give us an overview of KPC’s objectives in the gas sector and the long-term potential of the Durra gasfield?
In line with Kuwait’s gas sector development objectives, KPC is committed to playing a significant role in optimising production from the Durra offshore gasfield, a key component of the government’s work programme.
Leveraging advanced technologies and strategic partnerships, we aim to meet growing domestic and export demands for natural gas. The Durra gasfield holds substantial reserves and represents a cornerstone of Kuwait’s gas sector development strategy, positioning us to capitalise on emerging opportunities in the global energy market.

KPC plans to invest USD 110 billion towards energy transition goals. What initiatives is the company promoting to help the country reach carbon neutrality by 2060?
KPC is dedicated to integrating ESG principles into our business strategy as a key element of our transition towards a net-zero carbon future. To achieve this goal, we are promoting initiatives to reduce carbon emissions, increase energy efficiency and invest in renewable energy sources.
Additionally, we are engaging in CCS projects and fostering partnerships to accelerate the transition to a sustainable energy mix. These initiatives underscore our commitment to environmental stewardship and responsible business practices.

How does KPC propose to meet Kuwait’s energy demand while increasing the utilisation of renewables in its energy mix?
KPC’s roadmap involves diversifying our energy mix to include renewables while ensuring economic viability and sustainability. We plan to invest in solar and wind projects alongside traditional hydrocarbons assets to meet Kuwait’s current and future energy demand.
By prioritising innovation, efficiency and sustainability, we aim to contribute to Kuwait’s energy security and environmental objectives. Our roadmap reflects our commitment to balancing economic growth with environmental responsibility.

KPC aims to reach a refining capacity of 1.6 million bpd by 2025. What are the company’s next moves to maximise the value of its assets and reach that goal?
Following the commissioning of the Al Zour Refinery, KPC’s focus is on optimising the operational efficiency and reliability of our downstream assets. This includes streamlining processes, enhancing maintenance practices and investing in technology upgrades to maximise throughput and product quality.
Additionally, we are exploring opportunities for downstream expansion and diversification to capture value across the value chain. These efforts are essential for maximising the value of our assets and ensuring their long-term sustainability.

How does KPC plan to expand its petrochemicals business outside Kuwait?
KPC is committed to further expanding our petrochemicals reach both within and outside Kuwait through strategic investments and partnerships. This includes enhancing production capacities, investing in new petrochemicals projects and targeting specific export markets to capitalise on growing demand for petrochemical products globally.
Our expansion plans in the petrochemicals segment reflect our ambition to achieve a leading position internationally by 2040 and contribute to Kuwait’s economic diversification and growth.

What development programmes are in KPC’s agenda to establish partnerships between the private and public sectors?
KPC is actively engaged in programmes aimed at enhancing our role in developing the local economy and fostering private participation in oil activities. This includes initiatives to support SMEs, promote local content development and facilitate partnerships between the public and private sectors. By nurturing a conducive business environment and fostering collaboration, we aim to drive economic growth and diversification in Kuwait.

What are the main challenges to obtaining private-sector participation in KPC’s activities and attracting investment?
Key challenges in guaranteeing consistent private-sector involvement in KPC’s activities include regulatory constraints, bureaucratic hurdles and market uncertainties. To address these challenges, KPC is implementing reforms to streamline processes, enhance transparency and provide incentives for private-sector participation.
We are also actively engaging with stakeholders to identify and mitigate barriers to investment and foster a conducive investment climate. By fostering a supportive environment for private-sector involvement, we aim to attract more investments and drive economic growth.

What are the key components of KPC’s strategy going forward?
KPC’s business and growth strategy in 2024 and beyond is anchored on innovation, sustainability and resilience. We aim to capitalise on emerging opportunities in energy transition, digitalisation and value-added products.
By leveraging our strengths in technology, expertise and strategic partnerships, we seek to drive growth, maximise value for stakeholders and contribute to Kuwait’s economic development and energy security objectives. Our strategy reflects our commitment to delivering long-term value while embracing evolving market dynamics.

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