Kuwait has discovered four new oilfields in the north and west of the country, a top oil official was quoted as saying by state news agency KUNA on Sunday.
In a statement to Kuwait News Agency (KUNA), Hashem Hashem, the chief executive of Kuwait Oil Co, said exploration activities have moved ahead despite the declining oil prices.
“The (new) fields will be developed and production will start briefly,” he said, adding that the new discoveries had been announced after two years of exploration activities had proved positive.
Two reservoirs for unconventional oil in the north of the country were also discovered, Hashem said.
Kuwait’s Oil Minister Dr. Ali Al-Omair last year issued a statement to stress that despite declining oil prices, Kuwait will go ahead with implementing its projects and investment plans. The oil-rich country is estimated to spend about $ 100 billion in capital expenditure in the oil sector over the next five years.
The grades found in the fields were both light and heavy oil, with preliminary results showing “huge commercial volumes,” KUNA quoted Hashem as saying.
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Oil reserves in Kuwait make up 8% of the oil reserves in the world. Kuwait is OPEC’s third largest oil producer and claims to hold approximately 104 billion barrels. This includes half of the 5 billion barrels in the Saudi-Kuwaiti neutral zone which Kuwait shares with Saudi Arabia. Most of Kuwait’s oil reserves are located in the 70 billion barrels Burgan field, the second largest conventional oil field in the world, which has been producing oil since 1938. Since most of Kuwait’s major oil fields are over 60 years old, maintaining production rates is becoming a problem.
Kuwait: Country Analysis Brief Overview (via U.S. EIA)
- Kuwait was one of the world’s top producers and net exporters of petroleum and other liquids in 2013.
- Kuwait holds the world’s sixth-largest oil reserves and is one of the top 10 global producers and exporters of total petroleum liquids.
- Kuwait Petroleum Corporation, Kuwait’s national oil company, and its subsidiaries control the entire petroleum and other liquids sector from upstream to downstream and exports.
- Kuwait’s domestic consumption has been increasing, but a majority of its oil production is exported to Asia.
- Kuwait has implemented enhanced oil recovery measures to boost stagnant production rates. New discoveries have been made, but Kuwait’s regulated oil sector has hindered further exploration and production.
OPEC Top Oil Producing Countries
According to OPEC’s latest data crude oil production averaged 30.79 mb/d in March 2015, with Saudi Arabia (10.010 mb/d), UAE (2.817 mb/d), Iraq (3.625 mb/d), Iran (2.773 mb/d) and Kuwait (2.759 mb/d) being the top oil producers.