For years, the Burgan oil field has been the primary source of Kuwait’s hydrocarbon production. However, with ambitious goals of increasing overall hydrocarbon production and maintaining it for the long term, Kuwait is now turning its attention to offshore exploration. This strategic shift aims to tap into offshore reserves, supplementing the country’s existing onshore resources and bolstering crude oil output. While offshore operations present numerous challenges, Kuwait Oil Company (KOC) is actively working to overcome them and forge partnerships with international experts in the field.

Recognizing the need for offshore exploration and production, KOC established the Offshore Drilling Committee. This committee is responsible for planning and implementing Kuwait’s offshore operations, incorporating the latest offshore technologies and expertise. Led by Sulaiman Al-Raish, the coordinator of the committee, the team is currently assessing global companies capable of providing support and assistance in this endeavor.

After conducting comprehensive seismic field studies and engaging in field visits and meetings, KOC is preparing to commence drilling at six promising sites off the coast of Kuwait. The exact locations have not been disclosed yet, and Kuwait is eager to collaborate with specialized offshore companies. Due to the complexity of offshore explorations, Kuwait prefers to partner with major international field development companies, as its domestic firms lack experience in this domain.

Kuwait has expressed interest in collaborating with industry leaders such as Schlumberger, Baker Hughes, and Halliburton for their expertise in offshore field development. These prominent Texas-based companies may attract additional international field services firms through subcontracting. Kuwait’s fast-tracking of the bidding process, driven by the urgency to make up for past delays, has been facilitated by a new law passed in 2016.

The decline in oil prices during 2014-2015 had postponed exploration and rigging efforts. However, the delays have yielded one positive outcome: the cost of rigging has significantly decreased. As a result, Kuwait expects to spend less than the initially estimated USD 1-1.5 billion for offshore operations. Additionally, Kuwait is motivated to accelerate its offshore ambitions due to past disputes with Iran over the extraction of oil and gas from disputed areas near the maritime border. By initiating its own offshore operations, Kuwait aims to minimize potential diplomatic conflicts.

With the growing demand for gas in Kuwait, the country is eager to tap into potential gas fields to support gas-based power generation plants and meet export targets. Recognizing this need, KOC has prioritized offshore activities in its 2030 Strategy. While Kuwait is actively working towards economic diversification, diversifying its oil industry itself is also a key objective. By developing robust onshore and offshore fields, Kuwait aims to facilitate a smoother transition period and reduce its dependence on oil in the coming years.

Kuwait’s pursuit of offshore exploration marks a significant shift in its hydrocarbon production strategy. Through partnerships with international field development companies, Kuwait aims to tap into offshore reserves and boost its crude oil output. By embracing offshore operations and diversifying its oil industry, Kuwait is taking proactive steps towards economic diversification and reducing dependence on oil. As the country forges ahead with its offshore ambitions, it sets the stage for enhanced hydrocarbon production, increased energy security, and a more resilient Kuwaiti economy.