BMI View: Kuwait maintains its ambitious crude and condensate production capacity targets of 3.165mn b/
d by 2017 and 4.0mn b/d by 2020. There has been progress in the award of some key contracts for both
upstream and downstream projects over 2016, though challenges remain in attracting foreign investment
due to weak fiscal terms.
Latest Updates And Key Forecasts
- The Kuwaiti oil sector registered a third year of contraction in 2015. In real terms the sector shrunk 1.7%.
- Kuwait Oil Company has launched a tender for a water injection scheme on the supergiant Burgan oil
field. 18 companies have reportedly prequalified to bid.
- From September 1 2016, Kuwait increased prices by as much as 80% on high octane fuels. The move
will reduce government subsidy patterns, but also drive a switch to less efficient lower octane fuel.
- Kuwaiti officials have reaffirmed production capacity targets of 3.165mn b/d by 2017 and 4mn b/d by
2020, though nuanced this to include output of both crude and condensate.
- In H116, Kuwait National Petroleum Company awarded a USD2.9bn contract to a Korean consortium
to construct an LNG import terminal in Al-Zour.