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.

GCC Projects Market Report 2015

Buy the report now at: MEED’s new online store.

The outlook for the projects market in the GCC is uncertain. Oil prices have fallen by half since June 2014, putting increased pressure on government finances. This has led to a review of spending priorities across all the GCC markets.

As a consequence there is huge uncertainty for any businesses operating in the regional projects market.

MEED’s GCC Projects Market Report 2015 provides clarity on the outlook for projects and helps you to understand the drivers of projects spending activity in each of the GCC markets.

The report provides a comprehensive snapshot of the GCC projects market, helping you position your company for the upcoming opportunities and mitigating risk and challenges in the coming months. 

GCC Projects Market Report 2015 provides:

  1. Future Project Forecast: Identify key opportunities across all sectors by gaining an understanding of future project spend
  2. Top Contractor and Client Activity Review: Increase your market share by gaining insight into the industry leaders by sector and their current and planned project activity
  3. Market and sector-based executive summaries: Plan your business development strategy by gaining an immediate insight on the market
  4. Government Policy and Strategic Priority: Mitigate risk and identify challenges by understanding the major drivers behind the plans

The report focuses on quantifying the size of the market and the individual sectors that comprise it, as well as supplying a forecast for the future direction of the market. It also looks at the recent changes in government in Saudi Arabia and considers how the increased security concerns will shape government spending priorities.

Stay up-to- date with regional trends and access exclusive data, research and analysis in presentation-ready tables, graphs, charts and maps.

GCC Projects Market Report 2015 report is available now and can be purchased from MEED’s new online store.

Stay informed with the latest in the Middle East
Download the MEED app today, available on Apple and Android devices

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications