Kuwait's Energy Industry

Kuwait: modernising the downstream

Kuwait is a founding member of OPEC and a major oil supplier to the global economy. The country holds some of the world’s largest proven oil reserves – long estimated at about 101.5 billion barrels – and remains one of the Gulf’s most significant producers. Kuwait’s resource base is dominated by high-quality, predominantly light crude, and despite ageing oilfields, it continues to benefit from a strong reserves-to-production ratio. The sector is managed by the state-owned Kuwait Petroleum Corporation (KPC), whose subsidiaries – the K-companies – operate across the value chain. Kuwait Oil Company (KOC) leads upstream operations, while Kuwait National Petroleum Company (KNPC) oversees refining and fuels marketing.

Although Kuwait is a major crude exporter, it has historically relied on LNG imports to meet domestic power demand because gas production has lagged consumption. Expanding gas supply remains a strategic priority alongside crude capacity growth. Kuwait is working to lift crude oil production capacity to 4 million bpd by 2035, supported by increased drilling, brownfield optimisation and a renewed push into offshore exploration. The country is also prioritising the development of resources in the Partitioned Zone shared with Saudi Arabia, including the Dorra offshore gasfield, which is seen as critical to reducing dependence on imported gas.

In the downstream, Kuwait has completed a major upgrade of its refining system. The start-up and ramp-up of the 615,000-bpd Al Zour refinery has lifted domestic refining capacity to around 1.4 million bpd, with Mina Al Ahmadi and Mina Abdullah accounting for the remainder. Through the Clean Fuels Project, Kuwait has improved product quality and shifted output towards higher-value fuels and feedstocks, including very low sulphur fuel oil (VLSFO) and petrochemical-linked streams.

Beyond the energy sector, Kuwait Vision 2035 aims to position the country as a regional financial and trade hub by strengthening infrastructure, improving the business environment and increasing the role of the private sector. While diversification is a stated objective, hydrocarbons will continue to underpin investment and fiscal stability in the medium term. The Energy Year Kuwait 2024 highlights the investment decisions and development priorities shaping the country’s energy industry and provides assessments of the strengths, weaknesses and opportunities across its segments through first-hand interviews with Kuwait’s leading executives and policymakers.