Product Description
2011 saw Kuwait mark 50 years of independence, 20 years of liberation
since the 1991 Iraq invasion, and five years of Emir Sheikh Sabah Al Ahmad
Al Sabah’s rule. A year which has seen political instability grip and
shake the region, has by contrast seen Kuwait enjoy a period of relative
stability. This is not to say there has not been turbulence, but
Kuwait’s regionally unique democracy continues to mature and encourage optimism.
Upstream, Kuwait’s decision in 2010 to enlist the services of Shell to
explore deep gas in the Jurassic fields, evinces a seriousness to take on
the challenge of gas demand. What had been a institutional reticence
towards working with international oil companies has been replaced with a
cautious openness to this collaboration. In February 2011 KPC signed a
memorandum of understanding with BP, committing to a deeper strategic cooperation
in exploration and refining activities.
In a year which has seen Kuwait’s demand for gas grow, the country still
has a natural gas production deficit of 28 million cubic metres of gas per
day compared with domestic consumption. A target put forward by Kuwait Oil
Company would see the nation reach 113 mcm per day by 2030, of which
non-associated gas would compromise 68 percent.
Downstream the industry is prepared for the long-awaited fourth refinery,
which is to be located in Al Zour, and with a capacity of 800,000
Barrels of oil per day.
Finally, much of the optimism in Kuwait is down to public investment,
which is driving economic growth. With more than $100 billion of
government infrastructure spending planned, the forecasts for Kuwait
growth are healthy. The markets are calling for more privatisation to
allow capital to be active, and there are signs that the government is
moving in this direction.
since the 1991 Iraq invasion, and five years of Emir Sheikh Sabah Al Ahmad
Al Sabah’s rule. A year which has seen political instability grip and
shake the region, has by contrast seen Kuwait enjoy a period of relative
stability. This is not to say there has not been turbulence, but
Kuwait’s regionally unique democracy continues to mature and encourage optimism.
Upstream, Kuwait’s decision in 2010 to enlist the services of Shell to
explore deep gas in the Jurassic fields, evinces a seriousness to take on
the challenge of gas demand. What had been a institutional reticence
towards working with international oil companies has been replaced with a
cautious openness to this collaboration. In February 2011 KPC signed a
memorandum of understanding with BP, committing to a deeper strategic cooperation
in exploration and refining activities.
In a year which has seen Kuwait’s demand for gas grow, the country still
has a natural gas production deficit of 28 million cubic metres of gas per
day compared with domestic consumption. A target put forward by Kuwait Oil
Company would see the nation reach 113 mcm per day by 2030, of which
non-associated gas would compromise 68 percent.
Downstream the industry is prepared for the long-awaited fourth refinery,
which is to be located in Al Zour, and with a capacity of 800,000
Barrels of oil per day.
Finally, much of the optimism in Kuwait is down to public investment,
which is driving economic growth. With more than $100 billion of
government infrastructure spending planned, the forecasts for Kuwait
growth are healthy. The markets are calling for more privatisation to
allow capital to be active, and there are signs that the government is
moving in this direction.