KPC works in a 100,000 bbl/d center in Burgan
KUWAIT CITY ( ) — Kuwait is on the verge of exhausting its production capacity, limiting its ability to bring in more crude to meet the world’s increased demand as OPEC faces pressure from its major consumers from lower prices, Al-Qabas reports daily.
Platts Analytics: provides clarity on commodity adjustments and requires flows, infrastructure, policies, etc. Unfavorable industrial climate, as well as government skills, restricting their ability to continue expansion and according to Platts’ survey of OPEC production through S
Plans by state-owned Kuwait Petroleum Co. to expand production capacity to 4. 75 million b/d through 20four0 were very ambitious when they were unveiled in 2018. Now, the country has revised its target to 3. 5 million b/d through 2025 and four million b/d through 20four0, but analysts say even that can be a daunting task. Kuwait’s main source of supply is the huge Greater Burgan box, the largest of the moment in the world, which already produces up to 95% of its capacity. , with about 1. 6 million b/d of sustained production through an aggregate of fuel injection and flood water.
KPC development is running at a 100,000 bbl/d collection center in Burgan and is advancing in the neutral zone the country stores with Saudi Arabia, which remains a technical challenge after the facility closed for several years, according to sources. Beyond that, any other major additions wouldn’t occur until the end of the decade and would require foreign investment and expertise, which remains a challenge for the country known for its aversion to foreign investment.
Kuwait’s turbulent politics are another obstacle. Lately, the country does not have a functioning parliament and the new prime minister, Sheikh Ahmad Nawaf al-Sabah, has been tasked with forming a new government while the country awaits elections. The current Oil Minister, Mohammed al-Fares, who will constitute It is possible that Kuwait, at the next OPEC assembly on August 3, will participate in an imaginable reorganization of the closet. This leaves Kuwait and its oil policy in limbo. law to incentivize big oil companies to participate, analysts say.
“International corporations are reluctant to come to Kuwait if we don’t participate in some kind of percentage or purchase agreement like they did with Abu Dhabi, Qatar and Oman,” said independent Kuwaiti oil analyst Kamil al-Harami. “But it’s very, very difficult, if not impossible, for us to practice or settle. “Kuwait is reliability as a supplier that can come from its exports of petroleum products through its investments in the downstream sector, such as the 615,000 bbl/d Al-Zour refinery, Al-Harami added. The refinery is still in the verification phase, and full capacity is expected to be reached in early 2023.
In the medium term, Kuwait is expected to experience increased heavy oil production from the current phase of Expansion of the Lower Fars, which is expected to be launched until 2023, adding up to 200,000 b/d by the end of the decade. Fields in the unbiased zone Production in Kuwait is also expected to increase, projects have not yet been approved. Either way, much of the production is expected to more than offset the declines in the Greater Burgan Reservoir. The country is also expected to expand and sell condensate volumes from its unassociated Jurassic fuel projects in northern regions, such as Sabriya. The condensate is expected to be sold as crude oil under the Kuwait Super Light grade.
An imaginable lifeline for Kuwait could be buyers’ lending facilities, which would allow its service companies to participate in upgrades and ensure a secure market share for long-term production. In March, Japan’s Nippon Export and Investment Insurance signed an initial energy cooperation agreement. with KPC. The memo also stipulates that a consortium of Japanese and Western banks will supply $1 billion in the form of a loan line to KPC to help the company develop upstream capacity.
However, the resignation of the Kuwaiti government in April and the dissolution of parliament for the time being this year in July delayed the plans. A Japanese banking source said the line of credit is a “work in progress. “Japan sought to diversify its imports of Russian crude oil after Moscow’s invasion of Ukraine in March, and Kuwait as its third-largest supplier in 2021. . when it expired in 2003. ” Many Japanese involved in those negotiations felt bitterness,” said a source familiar with the discussions beyond.
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