Kuwait is steadily moving towards its target of hitting 3.2mn b/d crude oil output capacity by the end of 2025 with KPC CEO Sheikh Nawaf Al Sabah on 22 January saying that overall capacity now exceeds 3mn b/d. Capacity comes from the domestic fields operated by KPC subsidiary KOC and from Kuwait’s 50% share of the Partitioned Neutral Zone (PNZ) which is managed jointly with Saudi Arabia.
Kuwait has struggled to boost capacity in recent years and has seen nearby UAE surge ahead as the GCC’s second largest producer, with the latter translating capacity gains into a higher Opec+ quota and therefore production (see chart). As for Kuwait, despite recent gains, capacity is still below 2018 levels when KOC capacity alone stood at 3.15mn b/d – the PNZ was shut-in at the time. Despite PNZ output now being back at pre-shut-in levels after restarting in 2020, overall Kuwaiti capacity remains lower. Kuwait’s share of PNZ capacity currently amounts to around 200,000 b/d, implying KOC capacity of approximately 2.8mn b/d, up from 2.7mn b/d in 2023 (MEES, 7 July 2023). (CONTINUED - 831 WORDS)
