Kuwait aims to raise its oil production capacity to 3.15 million barrels per day, from the current 2.7 million bpd, within the next four years.
Opec’s fourth-largest producer also plans to increase its natural gas output by about 79 per cent to 930 million cubic feet per day in the same period, the government said on Monday.
The country has set a refining capacity target of 1.45 million bpd, up from 755,000 bpd currently.
In November, state-owned Kuwait Integrated Petroleum Industries said the first phase of Al Zour refinery had begun commercial operations.
The move will be followed by the second and third phases of the refinery's operations, moving towards full maximum refining capacity, Kipic chief executive Waleed Al Bader said at the time.
The refinery is designed to process heavy crudes and will have a capacity of 615,000 bpd.
Kuwait, which holds about 8 per cent of the world’s oil reserves, produced 2.7 million bpd in 2022, up from 2.42 million bpd a year earlier, according to Opec data.
The country, which is committed to cuts decided by the Opec+ alliance, will produce three million bpd in 2025, the Kuwait Times reported last month, quoting Ahmad Al-Aidan, chief executive of the Kuwait Oil Company.
Mr Aidan said the company intended to spend about $2.42 billion on oil-related projects over the next five years.
Kuwait’s announcement comes amid chronic underinvestment in new oil and gas projects, which has threatened new crude supply.
Upstream oil and gas capital expenditure rose by 39 per cent to $499 billion last year, the highest since 2014, according to the International Energy Forum.
However, annual upstream spending needs to increase to $640 billion by 2030 to ensure adequate supplies, the IEF has said.
Kuwait will invest more than $300 billion in the energy sector by 2040, the country’s oil minister Saad Al Barrak said at the Opec Seminar earlier this month.
Mr Al Barrak also said that the country hoped to have a higher production quota within Opec by the time it expanded its output capacity.
Earlier this month, UAE Energy and Infrastructure Minister Suhail Al Mazrouei said he was more concerned about the supply of crude than demand at a time when oilfields are ageing and there is lack of spending on new projects.
The world consumes more than 100 million bpd of crude. About eight million bpd of production needs to be replaced every year but the current level of investment is not sufficient, Mr Al Mazrouei said at an event.
Saudi Arabia, the world’s largest oil exporter, has said it would extend its production cut of a million bpd, which was initially announced for July, for another month.
Russia will also cut its oil supplies by 500,000 bpd in August on top of the output reductions that have already been announced.
On June 4, the Opec+ group of 23 oil-producing countries agreed to extend its current production cuts until the end of 2024.
The group has total production curbs of 3.66 million bpd, or about 3.7 per cent of global demand, in place, including a two million bpd reduction agreed on last year and voluntary cuts of 1.66 million bpd announced in April.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
UAE currency: the story behind the money in your pockets
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
Stree
Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5
UAE currency: the story behind the money in your pockets
AUSTRALIA SQUAD
Tim Paine (captain), Sean Abbott, Pat Cummins, Cameron Green, Marcus Harris, Josh Hazlewood, Travis Head, Moises Henriques, Marnus Labuschagne, Nathan Lyon, Michael Neser, James Pattinson, Will Pucovski, Steve Smith, Mitchell Starc, Mitchell Swepson, Matthew Wade, David Warner
UAE currency: the story behind the money in your pockets
'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
