Kuwait Cuts Long Term Targets For Giant Burgan Field

5 Feb 2021 Issue: 64 / 5 By: Jamie Ingram

Kuwait's Burgan is the world's second largest oilfield in terms of production, but capacity at the mature field has dropped from its previous heights. In recognition of this, state firm KOC has cut its long-term plateau target for the field from 1.7mn b/d to 1.5mn b/d as it shifts to prioritizing margins over volume.

The giant Burgan field is the heart of Kuwait’s oil sector. With production averaging 1.49mn b/d in 2019-20, it is also one of the largest fields in the world, behind only Saudi Arabia’s 3.8mn b/d Ghawar, and ssentially tied with Iraq’s Rumaila.

But Burgan is also a mature field, having first been discovered in 1938, and production capacity has fallen in recent years (see chart). In 2014, capacity was around 1.7mn b/d and KOC’s goal was to maintain capacity at that level. BP was brought to the field in 2014 under a technical service agreement (TSA) to help maintain Burgan's capacity at 1.7mn b/d (MEES, 14 November 2014. The UK major's contract was subsequently upgraded to an enhanced technical service agreement (ETSA) in 2016 (MEES, 15 July 2016). (CONTINUED - 763 WORDS)