Kuwait in offshore oil talks

23 June 2015

Source says oil company officials aim to start drilling in 2017

  • Kuwait is in talks with UK-based BP, Anglo-Dutch Shell and US-based Schlumberger
  • It is thought there will be two offshore drilling projects tendered
  • One will be located in the bay of Kuwait and the other will be located near the Divided Zone

Kuwait is in talks with international oil companies as it prepares to launch its first projects to drill for oil in Kuwaiti waters, according to an industry source.

Upstream operator Kuwait Oil Company (KOC) is holding meetings with UK-based BP, UK/Dutch Shell Group and US-based Schlumberger, according to the source.

BP and Schlumberger have not responded to requests for information about their involvement in Kuwait’s offshore plans.

Shell Group declined to reveal any information about its dealings with KOC on this issue saying that it is “is keen to continue working with Kuwait Petroleum Corporation and its subsidiaries”, but “details of such opportunities remain confidential”.

On 10 May, MEED reported that KOC’s Prospect Study Evaluation department was working on a study to look at various locations for offshore drilling and evaluate feasibility.

It is thought there will be two offshore drilling projects tendered, with one rig allocated for each project.

One is expected to be located in the Bay of Kuwait and another will be located outside the Bay of Kuwait near the Divided Zone, which it shares with Saudi Arabia.

The offshore projects are being fast-tracked to compensate for lost production from the Divided Zone, which has seen oil production rapidly decline over recent months and is expected to fall to zero over recent weeks.

KOC is also looking to ramp up production in northern Kuwait to compensate for the lost production in the Divided Zone.

Before the collapse in production in the Divided Zone Kuwait was already struggling to raise oil production from 2.8 million barrels a day (b/d) to hit its 2020 production target of 4 million b/d.

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