KUWAIT CITY, Sept 12: The Kuwait Oil Company has always been at the forefront to address any unforeseen obstacles that might affect oil production, the sole source of income of the country, reports Al-Rai daily.
In this regard, the CEO of KOC Emad Sultan explained that the difference between the rates of production with the 2040 strategy which has been announced and updated is due to Kuwait’s commitment to its quota set by the Organization of Petroleum Exporting Countries (OPEC+), which is set to increase shale oil production, improve fuel consumption, and increased renewable energies. Sultan revealed that the company’s operating budget for the current fiscal year (2019/2020) is about 2.5 billion dinars, while the average capital expenditure is about two billion, pointing out that the number of wells to be drilled during the year was 410 between productivity and exploration and water injection.
He explained that the production of some reservoirs move from the initial to the secondary stage, the secondary stage production is equivalent to 45 percent of the KOC production compared to 20 percent five years ago, which is one of the main challenges, adding that the water associated with oil production is one of the main difficulties.
He added, “Kuwait’s total surplus water is equivalent to filling 95 Olympic swimming pools per day, according to environmental commitments,” he said. Sultan explained the company’s plans to support and increase production through four axes, including the preservation and development of existing reservoirs, the evaluation and development of nonconventional layers, and the assessment and development of gas in the areas between the fields (TILT) and the establishment of new units for the production of Jurassic gas. He pointed out that the company’s efforts are still continuing to enhance the production capacity through several capital projects aimed at developing new oil reservoirs.