In January 2024, Khaled Al-Sabah, CEO of Kuwait Petroleum Corporation (KPC), announced an ambitious $30 billion investment initiative aimed at increasing Kuwait’s oil production capacity by 40%. The goal is to raise output from 2.8 million barrels per day (bpd) to 4 million bpd by 2040.
To achieve this, state-owned KPC, traditionally reliant on onshore reserves, is expanding into offshore exploration, reviewing a 6,000-square-kilometer area. Its subsidiary, Kuwait Oil Company (KOC), has already made significant progress, discovering two new fields: the 74-square-kilometer Al-Jlaiaa field, unveiled in January, and the promising Al-Nokhatha field, which could hold up to 2.1 billion barrels of oil and 5.1 trillion cubic feet of natural gas. The latter is particularly significant for Kuwait, which currently depends on imports to meet domestic gas consumption needs.
These discoveries could also generate new business opportunities. While Kuwait remains cautious about foreign involvement in its hydrocarbon sector, KOC has taken a strategic step by signing a contract with US-based SLB for the drilling of 141 new wells.
Kuwait’s hydrocarbon strategy extends beyond increasing production; it also focuses on upgrading existing infrastructure. In 2024, the country inaugurated the $30 billion Al Zour refinery—the largest in Kuwait and the seventh largest worldwide. Once fully operational, Al Zour is expected to boost Kuwait’s refining capacity from 800,000 bpd to 1.42 million bpd.
Simultaneously, Kuwait is working to streamline its complex network of hydrocarbon institutions. Currently, KPC oversees eight subsidiaries, including KOC. In 2020, the government engaged PwC’s consulting arm, Strategy&, to explore potential consolidations. Today, Kuwait appears ready to move forward, with local reports indicating possible mergers between Kuwait National Petroleum Company and Kuwait Integrated Petroleum Industries Company, as well as between KOC and Kuwait Gulf Oil Company, to enhance operational efficiency.
With substantial investments and strategic restructuring, Kuwait is positioning itself to strengthen its oil industry while preparing for future energy demands.
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