Kuwait ‘heavy oil’ – new challenge to the industry – KPC targets 4m barrels by end of 2030
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| In order to expand and increase Kuwait’s crude oil production to more than 3 million barrels per day, the Kuwaiti upstream sector must dig, explore and expand in the field of non-traditional oil – heavy oil. |
It is available in huge quantities in the northern and southern parts of Kuwait. The northern oil fields are being developed including the Rataqa oil field with estimated reserve of more than 20 million barrels and with the ability to produce more than 50,000 barrels by the end of 2020. It has the potential of producing more than 250,000 barrels with the assistance of international oil companies that have wide experience in this type of heavy oil in various parts of the world.
We in Kuwait do not have much experience in dealing with such type of oil. Our traditional oil is easily available and can be produced with minimum technology unlike other crude oils outside the Middle East. However, due to the need for expanding our production, our oil industry must rely on this type in order to be able to reach the KPC target of 4 million barrels hopefully by the end of 2030.
This definitely is not an easy operation, as it requires steam injection and steam-assisted drainage. Such a methodology is available nowadays and has been tried in our oil fields. It is widely used with the oil prices going above $80, which in turn encouraged oil companies to work on non-conventional oils like shale oil, sand oil in Canada and tar oil of Venezuela. All this happened at the same time while the oil prices were increasing and the financial institutions were opening their doors for new investors.
The current cost of producing Kuwaiti crude oil is less than $10 per barrel but the new cost will be $23 or more per barrel, which is still competitive compared to the producers outside the Middle East by far.
Exploring and searching for heavy oils in Kuwait is an opportunity for our industry to be developed further, learn new methods and be competitive. However, what is more important is to reach the targeted figure required for Kuwaiti crude oil by international oil markets.
This is the challenge and they represent the main objectives. The cost may increase but it will not match other heavy oil producers outside our region.
Email: [email protected]
By Kamel Al-Harami
Independent Oil Analyst
This news has been read 5779 times!
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