Oil and Gas market in Kuwait

Kuwait's has the world's sixth largest stated reserves of crude oil in the world, at 101.5b barrels. In 2022, Kuwait was the fourth-largest producer in OPEC, and the tenth-largest producer globally, at 2.7m bpd. Kuwait's hydrocarbons provide 50% of its GDP, with oil accounting for approximately 90% of export earnings and fiscal revenues.

The state-owned Kuwait Petroleum Corporation (KPC) is responsible for both the domestic oil and gas industry and the country's overseas hydrocarbons operations through its eight subsidiaries.

Kuwait is planning to increase its oil production capacity to 4.0m bpd by 2035 and gas capacity to 42.5m cmpd by 2040. KPC is targeting net zero by 2050, offering opportunities in the energy transition.

Key opportunities for Canadian oil and gas companies in Kuwait:

Gas and chemical enhanced oil recovery
Enhancing reservoir pressure and providing solutions to the increasing produced water.
Technologies to reduce cost of development and production of heavy oil
Technologies and solutions to develop gas reservoirs
Partnerships in the oil & gas and petrochemical industries

Notable challenges for Canadian oil and gas companies in Kuwait:

Get prequalified with the relevant KPC subsidiary
Compete on price with other prequalified companies
Requires long term commitment to the Kuwaiti market and patience

Business landscape:

All activities related to oil exploration, drilling, production, and export are fully controlled by the Government
The Kuwaiti Constitution does not allow foreign exploration companies to share natural resources
Kuwait has well established oilfield infrastructure
Kuwait is a safe and stable country: S&P Global Ratings affirms Kuwait at A+; outlook stable
Kuwait barrel of oil has one of the lowest carbon intensity and production cost in the world which sets it to be the surviving barrel through the energy transition

Upcoming projects and events

Offshore development and production
Development of gas resources which are very deep with HPHT
Development and production of heavy oil reservoirs
Carbon capture, utilization, and storage (CCUS)

Industry highlights

50%

Oil and gas contribution to Kuwait's GDP

4th

Largest producer of oil in OPEC and 10th globally

90%

Contribution to fiscal revenue

US$92b

Total value of crude oil exports in 2022

23,000

Jobs in Kuwait's government oil and gas sector (private sector data not available)

Kuwait's ranking in the 2022 Fraser Institute's Investment Attractiveness Index

US$7.2b

Capex for advanced oil and gas projects in 2020

2.7m

Barrels of crude oil production per day

Summary

Kuwait plans to invest US$48 billion in exploration and drilling over the next five years to expand its oil production from existing and mature oil fields. Additionally, it intends to continue the development of its unconventional resources including heavy oil fields, unassociated gas reserves, and offshore exploration.

Kuwait's Energy Transition Strategy 2050 includes decarbonization focused on efficiency and electrification; installation of renewable energy (mainly from PV and CSP); carbon capture, utilization, and storage (CCUS); reforestation; and the improvement of energy efficiency.

Canadian companies with proven and competitive technologies to increase resource recovery or contribute to the energy transition are well positioned to offer their products and services to Kuwait.

For more information about the oil and gas market in Kuwait, please contact kuwait-td@international.gc.ca

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